Document:

Exhibit 4.2

    EXHIBIT
      4.2

    

    

    

    

    
      

      

    

     

     

    

    PENNSYLVANIA
      COMMERCE BANCORP, INC.

     

    

    

    INDENTURE

     

    

     

    

     

    Dated
      as of September 29, 2006

     

    

    

    

    WILMINGTON
      TRUST COMPANY

    

    as
      Debenture Trustee

    

    

    JUNIOR
      SUBORDINATED DEFERRABLE INTEREST DEBENTURES

     

    

    

    

    
      

      

    

    

     

    

    

    

     

    

    
      
        
          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

    

      
        	
                ARTICLE
                  I. DEFINITIONS

              	
                1

              
	
                Section
                  1.01

              	
                Definitions

              	
                1

              
	
                Section
                  1.02

              	
                Business
                  Day Certificate.

              	
                8

              
	
                ARTICLE
                  II. SECURITIES

              	
                8

              
	
                Section
                  2.01

              	
                Forms
                  Generally

              	
                8

              
	
                Section
                  2.02

              	
                Execution
                  and Authentication.

              	
                9

              
	
                Section
                  2.03

              	
                Form
                  and Payment

              	
                9

              
	
                Section
                  2.04

              	
                Legends.

              	
                9

              
	
                Section
                  2.05

              	
                Interest

              	
                9

              
	
                Section
                  2.06

              	
                Transfer
                  and Exchange

              	
                10

              
	
                Section
                  2.07

              	
                Replacement
                  Securities

              	
                11

              
	
                Section
                  2.08

              	
                Temporary
                  Securities

              	
                11

              
	
                Section
                  2.09

              	
                Cancellation.

              	
                11

              
	
                Section
                  2.10

              	
                Defaulted
                  Interest.

              	
                12

              
	
                Section
                  2.11

              	
                CUSIP
                  Numbers

              	
                13

              
	
                ARTICLE
                  III. PARTICULAR COVENANTS OF THE CORPORATION

              	
                13

              
	
                Section
                  3.01

              	
                Payment
                  of Principal and Interest.

              	
                13

              
	
                Section
                  3.02

              	
                Offices
                  for Notices and Payments. etc.

              	
                13

              
	
                Section
                  3.03

              	
                Appointments
                  to Fill Vacancies in Debenture Trustee’s Office

              	
                14

              
	
                Section
                  3.04

              	
                Provision
                  as to Paying Agent.

              	
                14

              
	
                Section
                  3.05

              	
                Certificate
                  to Debenture Trustee

              	
                15

              
	
                Section
                  3.06

              	
                Compliance
                  with Consolidation Provisions

              	
                15

              
	
                Section
                  3.07

              	
                Limitation
                  on Dividends

              	
                15

              
	
                Section
                  3.08

              	
                Covenants
                  as to Commerce Harrisburg Capital Trust III.

              	
                16

              
	
                Section
                  3.09

              	
                Payment
                  of Expenses.

              	
                16

              
	
                Section
                  3.10

              	
                Payment
                  Upon Resignation or Removal

              	
                17

              
	
                ARTICLE
                  IV. SECURITYHOLDERS’ LISTS AND REPORTS BY THE CORPORATION AND THE
                  DEBENTURE TRUSTEE

              	
                17

              
	
                Section
                  4.01

              	
                Securityholders’
                  Lists

              	
                17

              
	
                Section
                  4.02

              	
                Preservation
                  and Disclosure of Lists

              	
                17

              
	
                Section
                  4.03

              	
                Reports
                  by the Corporation.

              	
                18

              
	
                Section
                  4.04

              	
                Reports
                  by the Debenture Trustee.

              	
                19

              
	
                ARTICLE
                  V. REMEDIES OF THE DEBENTURE TRUSTEE AND SECURITYHOLDERS ON EVENT
                  OF
                  DEFAULT

              	
                20

              
	
                Section
                  5.01

              	
                Events
                  of Default.

              	
                20

              
	
                Section
                  5.02

              	
                Payment
                  of Securities on Default; Suit Therefor.

              	
                21

              
	
                Section
                  5.03

              	
                Application
                  of Moneys Collected by Debenture Trustee.

              	
                23

              
	
                Section
                  5.04

              	
                Proceedings
                  by Securityholders.

              	
                23

              

      

       

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Section
                  5.05

              	
                Proceedings
                  by Debenture Trustee.

              	
                24

              
	
                Section
                  5.06

              	
                Remedies
                  Cumulative and Continuing.

              	
                25

              
	
                Section
                  5.07

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

              	
                25

              
	
                Section
                  5.08

              	
                Notice
                  of Defaults.

              	
                26

              
	
                Section
                  5.09

              	
                Undertaking
                  to Pay Costs.

              	
                26

              
	
                ARTICLE
                  VI. CONCERNING THE DEBENTURE TRUSTEE

              	
                27

              
	
                Section
                  6.01

              	
                Duties
                  and Responsibilities of Debenture Trustee.

              	
                27

              
	
                Section
                  6.02

              	
                Reliance
                  on Documents, Opinions’ etc.

              	
                28

              
	
                Section
                  6.03

              	
                No
                  Responsibility for Recitals, etc.

              	
                29

              
	
                Section
                  6.04

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

              	
                29

              
	
                Section
                  6.05

              	
                Moneys
                  to be Held in Trust.

              	
                29

              
	
                Section
                  6.06

              	
                Compensation
                  and Expenses of Debenture Trustee.

              	
                30

              
	
                Section
                  6.07

              	
                Officers’
                  Certificate as Evidence.

              	
                30

              
	
                Section
                  6.08

              	
                Conflicting
                  Interest of Debenture Trustee.

              	
                31

              
	
                Section
                  6.09

              	
                Eligibility
                  of Debenture Trustee.

              	
                31

              
	
                Section
                  6.10

              	
                Resignation
                  or Removal of Debenture Trustee.

              	
                31

              
	
                Section
                  6.11

              	
                Acceptance
                  by Successor Debenture Trustee.

              	
                32

              
	
                Section
                  6.12

              	
                Succession
                  by Merger, etc.

              	
                33

              
	
                Section
                  6.13

              	
                Intentionally
                  Omitted.

              	
                34

              
	
                Section
                  6.14

              	
                Co-trustees
                  and Separate Trustees.

              	
                34

              
	
                Section
                  6.15

              	
                Authenticating
                  Agents.

              	
                35

              
	
                ARTICLE
                  VII. CONCERNING THE SECURITYHOLDERS

              	
                36

              
	
                Section
                  7.01

              	
                Action
                  by Securityholders.

              	
                36

              
	
                Section
                  7.02

              	
                Proof
                  of Execution by Securityholders.

              	
                37

              
	
                Section
                  7.03

              	
                Who
                  Are Deemed Absolute Owners.

              	
                37

              
	
                Section
                  7.04

              	
                Securities
                  Owned by Corporation Deemed Not Outstanding.

              	
                37

              
	
                Section
                  7.05

              	
                Revocation
                  of Consents; Future Holders Bound.

              	
                38

              
	
                ARTICLE
                  VIII. SECURITYHOLDERS’ MEETINGS

              	
                38

              
	
                Section
                  8.01

              	
                Purposes
                  of Meetings.

              	
                38

              
	
                Section
                  8.02

              	
                Call
                  of Meetings by Debenture Trustee.

              	
                38

              
	
                Section
                  8.03

              	
                Call
                  of Meetings by Corporation or Securityholders.

              	
                39

              
	
                Section
                  8.04

              	
                Qualifications
                  for Voting.

              	
                39

              
	
                Section
                  8.05

              	
                Regulations.

              	
                39

              
	
                Section
                  8.06

              	
                Voting.

              	
                40

              
	
                ARTICLE
                  IX. AMENDMENTS

              	
                40

              
	
                Section
                  9.01

              	
                Without
                  Consent of Securityholders.

              	
                40

              
	
                Section
                  9.02

              	
                With
                  Consent of Securityholders.

              	
                41

              
	
                Section
                  9.03

              	
                Intentionally
                  Omitted.

              	
                42

              
	
                Section
                  9.04

              	
                Notation
                  on Securities.

              	
                42

              

      

       

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Section
                  9.05

              	
                Evidence
                  of Compliance of Supplemental Indenture to be Furnished to Debenture
                  Trustee.

              	
                43

              
	
                ARTICLE
                  X. CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

              	
                43

              
	
                Section
                  10.01

              	
                Corporation
                  May Consolidate, etc., on Certain Terms.

              	
                43

              
	
                Section
                  10.02

              	
                Successor
                  Corporation to be Substituted for Corporation.

              	
                43

              
	
                Section
                  10.03

              	
                Opinion
                  of Counsel to be Given Debenture Trustee.

              	
                44

              
	
                ARTICLE
                  XI. SATISFACTION AND DISCHARGE OF INDENTURE

              	
                44

              
	
                Section
                  11.01

              	
                Discharge
                  of Indenture.

              	
                44

              
	
                Section
                  11.02

              	
                Deposited
                  Moneys and U.S. Government Obligations to be Held in Trust by Debenture
                  Trustee.

              	
                45

              
	
                Section
                  11.03

              	
                Paying
                  Agent to Repay Moneys Held.

              	
                45

              
	
                Section
                  11.04

              	
                Return
                  of Unclaimed Moneys.

              	
                45

              
	
                Section
                  11.05

              	
                Section
                  11.05 Defeasance Upon Deposit of Moneys or U.S. Government
                  Obligations.

              	
                46

              
	
                ARTICLE
                  XII. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND
                  DIRECTORS

              	
                47

              
	
                Section
                  12.01

              	
                Indenture
                  and Securities Solely Corporate Obligations.

              	
                47

              
	
                ARTICLE
                  XIII. MISCELLANEOUS PROVISIONS

              	
                47

              
	
                Section
                  13.01

              	
                Successors.

              	
                47

              
	
                Section
                  13.02

              	
                Official
                  Acts by Successor Corporation.

              	
                47

              
	
                Section
                  13.03

              	
                Surrender
                  of Corporation Powers.

              	
                47

              
	
                Section
                  13.04

              	
                Addresses
                  for Notices. etc.

              	
                48

              
	
                Section
                  13.05

              	
                Governing
                  Law; Submission to Jurisdiction; Appointment of Agent for Service
                  of
                  Process

              	
                48

              
	
                Section
                  13.06

              	
                Evidence
                  of Compliance with Conditions Precedent.

              	
                48

              
	
                Section
                  13.07

              	
                Business
                  Days.

              	
                49

              
	
                Section
                  13.08

              	
                Intentionally
                  Omitted.

              	
                49

              
	
                Section
                  13.09

              	
                Table
                  of Contents, Headings etc.

              	
                49

              
	
                Section
                  13.10

              	
                Execution
                  in Counterparts.

              	
                49

              
	
                Section
                  13.11

              	
                Separability.

              	
                49

              
	
                Section
                  13.12

              	
                Assignment.

              	
                50

              
	
                Section
                  13.13

              	
                Acknowledgment
                  of Rights.

              	
                50

              
	
                ARTICLE
                  XIV. PREPAYMENT OF SECURITIES -- MANDATORY AND OPTIONAL SINKING
                  FUND

              	
                50

              
	
                Section
                  14.01

              	
                Special
                  Event Prepayment.

              	
                50

              
	
                Section
                  14.02

              	
                Optional
                  Prepayment by Corporation.

              	
                50

              
	
                Section
                  14.03

              	
                No
                  Sinking Fund.

              	
                51

              
	
                Section
                  14.04

              	
                Notice
                  of Prepayment; Selection of Securities.

              	
                51

              
	
                Section
                  14.05

              	
                Payment
                  of Securities Called for Prepayment.

              	
                52

              
	
                ARTICLE
                  XV. SUBORDINATION OF SECURITIES

              	
                53

              

      

       

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Section
                  15.01

              	
                Agreement
                  to Subordinate.

              	
                53

              
	
                Section
                  15.02

              	
                Default
                  on Senior Indebtedness.

              	
                53

              
	
                Section
                  15.03

              	
                Liquidation;
                  Dissolution; Bankruptcy.

              	
                54

              
	
                Section
                  15.04

              	
                Subrogation.

              	
                55

              
	
                Section
                  15.05

              	
                Debenture
                  Trustee to Effectuate Subordination.

              	
                56

              
	
                Section
                  15.06

              	
                Notice
                  by the Corporation.

              	
                56

              
	
                Section
                  15.07

              	
                Rights
                  of the Debenture Trustee; Holders of Senior Indebtedness.

              	
                57

              
	
                Section
                  15.08

              	
                Subordination
                  May Not Be Impaired.

              	
                57

              
	
                ARTICLE
                  XVI. EXTENSION OF INTEREST PAYMENT PERIOD

              	
                58

              
	
                Section
                  16.01

              	
                Extension
                  of Interest Payment Period.

              	
                58

              
	
                Section
                  16.02

              	
                Notice
                  of Extension.

              	
                59

              

      

      

    

     

    
 

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    INDENTURE

     

    THIS
      INDENTURE, dated as of September 29, 2006, between Pennsylvania Commerce
      Bancorp, Inc., a Pennsylvania (hereinafter sometimes called the “Corporation”),
      and Wilmington Trust Company, a Delaware banking corporation, as debenture
      trustee (hereinafter sometimes called the “Debenture Trustee”),

     

    W
      I T N E
      S S E T H :

     

    In
      consideration of the premises, and the purchase of the Securities by the holders
      thereof, the Corporation covenants and agrees with the Debenture Trustee for
      the
      equal and proportionate benefit of the respective holders from time to time
      of
      the Securities, as follows:

     

    ARTICLE
      I.

    DEFINITIONS

     

    Section
      1.01  Definitions

     

    The
      terms
      defined in this Section 1.01 (except as herein otherwise expressly provided
      or
      unless the context otherwise requires) for all purposes of this Indenture shall
      have the respective meanings specified in this Section 1.01. All other terms
      used in this Indenture which are defined in the Trust Indenture Act of 1939,
      as
      amended (the “Trust Indenture Act”), or which are by reference therein defined
      in the Securities Act, shall (except as herein otherwise expressly provided
      or
      unless the context otherwise requires) have the meanings assigned to such terms
      in said Trust Indenture Act and in said Securities Act as in force at the date
      of this Indenture as originally executed. The following terms have the meanings
      given to them in the Declaration: (i) Delaware Trustee; (ii) Property Trustee;
      (iii) Administrative Trustees; (iv) Capital Securities; (v) Direct Action;
      (vi)
      Distributions; and (vii) Common Securities. All accounting terms used herein
      and
      not expressly defined shall have the meanings assigned to such terms in
      accordance with generally accepted accounting principles, and the term
“generally accepted accounting principles” means such accounting principles as
      are generally accepted at the time of any computation. The words “herein”,
“hereof”‘ and “hereunder” and other words of similar import refer to this
      Indenture as a whole and not to any particular Article, Section or other
      subdivision. Headings are used for convenience of reference only and do not
      affect interpretation. The singular includes the plural and vice
      versa.

     

    “Additional
      Sums”
shall
      have the meaning set forth in Section 2.05(c).

     

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

     

    “Authenticating
      Agent”
shall
      mean any agent or agents of the Debenture Trustee which at the time shall be
      appointed and acting pursuant to Section 6.14.

     

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

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Board
      of Directors”
shall
      mean either the Board of Directors of the Corporation or any duly authorized
      committee of that board.

     

    “Board
      Resolution”
shall
      mean 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 and
      to be
      in full force and effect on the date of such certification, and delivered to
      the
      Debenture Trustee.

     

    “Business
      Day”
shall
      mean, with respect to any series of Securities, any day other than a Saturday
      or
      a Sunday or a day on which banking institutions in New York, New York,
      Wilmington, Delaware or Philadelphia, Pennsylvania are authorized or required
      by
      law or executive order to close.

     

    “Capital
      Securities Guarantee”
shall
      mean any guarantee that the Corporation may enter into that operates directly
      or
      indirectly for the benefit of holders of Capital Securities.

     

    “Commerce
      Harrisburg Capital Trust III”
or
      the
“Trust”
shall
      mean Commerce Harrisburg Capital Trust III, a Delaware statutory trust created
      for the purpose of issuing its undivided beneficial interests in connection
      with
      the issuance of Securities under this Indenture.

     

    “Commission”
shall
      mean 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
      Indenture such Commission is not existing and performing the duties now assigned
      to it under the Trust Indenture Act, then the body performing such duties at
      such time.

     

    “Common
      Stock”
shall
      mean the Common Stock, par value $1.00 per share, of the Corporation or any
      other class of stock resulting from changes or reclassifications of such Common
      Stock consisting solely of changes in par value, or from par value to no par
      value, or from no par value to par value.

     

    “Compounded
      Interest”
shall
      have the meaning set forth in Section 16.01.

     

    “Corporation”
shall
      mean Pennsylvania Commerce Bancorp, Inc., a Pennsylvania corporation, and,
      subject to the provisions of Article X, shall include its successors and
      assigns.

     

    “Corporation
      Request”
or
      “Corporation
      Order”
shall
      mean a written request or order signed in the name of the Corporation by the
      Chairman, the Chief Executive Officer, President, a Vice Chairman, a Vice
      President, the Comptroller, the Secretary or an Assistant Secretary of the
      Corporation, and delivered to the Debenture Trustee.

     

    “Custodian”
shall
      mean any receiver, trustee, assignee, liquidator, or similar official under
      any
      Bankruptcy Law.

     

    “Debenture
      Trustee”
shall
      mean the Person identified as “Debenture Trustee” in the first paragraph hereof,
      and, subject to the provisions of Article VI hereof, shall also include its
      successors and assigns as Debenture Trustee hereunder. The term “Debenture
      Trustee” as used with respect to a particular series of the Securities shall
      mean the trustee with respect to that series.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    “Declaration”
means
      the Declaration of Trust of the Trust, dated as of September 29, 2006, as
      amended from time to time.

     

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

     

    “Defaulted
      Interest”
shall
      have the same meaning set forth in Section 2.10.

     

    “Deferred
      Interest”
shall
      have the meaning set forth in Section 16.01.

     

    “Definitive
      Securities”
shall
      mean those securities issued in fully registered certificated form.

     

    “Dissolution
      Event”
means
      the liquidation of the Trust pursuant to the Declaration, and the distribution
      of the Securities held by the Property Trustee to the holders of the Trust
      Securities issued by the Trust
      pro
      rata in
      accordance with the Declaration.

     

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

     

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

     

    “Extended
      Interest Payment Period”
shall
      have the meaning set forth in Section 16.01.

     

    “Federal
      Reserve”
shall
      mean the Board of Governors of the Federal Reserve System.

     

    “Indebtedness”
shall
      mean (i) every obligation of the Corporation for money borrowed; (ii) every
      obligation of the Corporation 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 the Corporation with respect to letters of credit, banker’s
      acceptances or similar facilities issued for the account of the Corporation;
      (iv) every obligation of the Corporation 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 the Corporation; (vi) all indebtedness of the
      Corporation whether incurred on or prior to the date of the 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, the Corporation has
      guaranteed or is responsible or liable for, directly or indirectly, as obligor
      or otherwise.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Indebtedness
      Ranking on a Parity with the Securities”
shall
      mean (i) Indebtedness, whether outstanding on the date of execution of this
      Indenture or hereafter created, assumed or incurred, to the extent such
      Indebtedness by its terms ranks equally with and not prior to the Securities
      in
      the right of payment upon the happening of the dissolution or winding-up or
      liquidation or reorganization of the Corporation, and (ii) all other debt
      securities, and guarantees in respect of those debt securities, issued to any
      trust other than the Trust, or a trustee of such trust, partnership or other
      entity affiliated with the Corporation that is a financing vehicle of the
      Corporation (a “financing entity”) in connection with the issuance by such
      financing entity of equity securities or other securities guaranteed by the
      Corporation pursuant to an instrument that ranks pari
      passu with
      or
      junior in right of payment to the Capital Securities Guarantee. The securing
      of
      any Indebtedness, otherwise constituting Indebtedness Ranking on a Parity with
      the Securities, shall not be deemed to prevent such Indebtedness from
      constituting Indebtedness Ranking on a Parity with the Securities.

     

    “Indebtedness
      Ranking Junior to the Securities”
shall
      mean any Indebtedness, whether outstanding on the date of execution of this
      Indenture or hereafter created, assumed or incurred, to the extent such
      Indebtedness by its terms ranks junior to and not equally with or prior to
      the
      Securities (and any other Indebtedness Ranking on a Parity with the Securities)
      in right of payment upon the happening of the dissolution or winding-up or
      liquidation or reorganization of the Corporation. The securing of any
      Indebtedness, otherwise constituting Indebtedness Ranking Junior to the
      Securities, shall not be deemed to prevent such Indebtedness from constituting
      Indebtedness Ranking Junior to the Securities.

     

    “Indenture”
shall
      mean this instrument as originally executed or, if amended as herein provided,
      as so amended.

     

    “Initial
      Optional Prepayment Date”
means
      September 29, 2011.

     

    “Interest
      Payment Date”
shall
      have the meaning set forth in Section 2.05(a).

     

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

     

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

     

    “Like
      Amount”
means
      (i) with respect to a redemption of the Trust Securities, Trust Securities
      having a liquidation amount equal to the principal amount of Securities to
      be
      paid in accordance with their terms and (ii) with respect to a distribution
      of
      Securities upon the liquidation of the Trust, Securities having a principal
      amount equal to the liquidation amount of the Trust Securities of the holder
      to
      whom Securities are distributed.

     

    “Maturity
      Date”
shall
      mean September 29, 2036.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    “Mortgage”
shall
      mean and include any mortgage, pledge, lien, security interest, conditional
      sale
      or other title retention agreement or other similar encumbrance.

     

    “Officers”
shall
      mean any of the Chairman, the Chief Executive Officer, the President, a Vice
      President, the Chief Financial Officer, Secretary or an Assistant Secretary
      of
      the Corporation.

     

    “Officers’
      Certificate”
      shall
      mean a certificate signed by two Officers and delivered to the Debenture
      Trustee.

     

    “Opinion
      of Counsel”
shall
      mean a written opinion of counsel, who may be an employee of the Corporation,
      and who shall be reasonably acceptable to the Debenture Trustee.

     

    “Other
      Debentures”
means
      all junior subordinated debentures issued by the Corporation from time to time
      and sold to trusts to be established by the Corporation (if any), in each case
      similar to the Trust.

     

    “Other
      Guarantees”
means
      all guarantees to be issued by the Corporation with respect to capital
      securities (if any) and issued to other trusts to be established by the
      Corporation (if any), in each case similar to the Trust.

     

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

     

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

     

    (b)  Securities,
      or portions thereof, for the payment or prepayment of which moneys in the
      necessary amount shall have been deposited in trust with the Debenture Trustee
      or with any paying agent (other than the Corporation) or shall have been set
      aside and segregated in trust by the Corporation (if the Corporation shall
      act
      as its own paying agent); provided that, if such Securities, or portions
      thereof, are to be prepaid prior to maturity thereof, notice of such prepayment
      shall have been given as set forth in Article XIV or provision satisfactory
      to
      the Debenture Trustee shall have been made for giving such notice; and

     

    (c)  Securities
      in lieu of or in substitution for which other Securities shall have been
      authenticated and delivered pursuant to the terms of Section 2.08 unless proof
      satisfactory to the Corporation and the Debenture Trustee is presented that
      any
      such Securities are held by bona fide holders in due course.

     

    “Person”
shall
      mean any individual, corporation, estate, partnership, joint venture,
      association, joint-stock company, limited liability company, trust,
      unincorporated organization or government or any agency or political subdivision
      thereof.

     

    “Predecessor
      Security”
      of any
      particular Security means every previous Security evidencing all or a portion
      of
      the same debt and as that evidenced by such particular Security; and, for the
      purposes of this definition, any Security authenticated and delivered under
      Section 2.08 in lieu of a lost, destroyed or stolen Security shall be deemed
      to
      evidence the same debt as the lost, destroyed or stolen Security.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

    “Prepayment
      Price”
shall
      mean (A) if pursuant to Section 14.01 of this Indenture an amount equal to
      105%
      of the principal amount of Securities to be prepaid plus accrued and unpaid
      interest thereon, including Compounded Interest and Additional Sums, if any,
      to
      the date of such prepayment and (B) if pursuant to Section 14.02 of this
      Indenture at 100% of the principal amount of Securities to be prepaid plus
      accrued and unpaid interest thereon, including Compounded Interest and
      Additional Sums, if any, to the date of such prepayment.

     

    “Principal
      Office of the Debenture Trustee”,
      or
      other similar term, shall mean the office of the Debenture Trustee, at which
      at
      any particular time its corporate trust business shall be
      administered.

     

    “Property
      Trustee”
shall
      have the same meaning as set forth in the Declaration.

     

    “Purchase
      Agreement”
shall
      mean the Purchase Agreement dated as of September 29, 2006 among the
      Corporation, the Trust and Commerce Bank, N.A.

     

    “Regulatory
      Capital Event”
means
      that the Corporation shall have received an opinion of independent bank
      regulatory counsel experienced in such matters to the effect that, as a result
      of (a) any amendment to, or change (including any announced prospective change)
      in, the laws (or any regulations thereunder) of the United States or any rules,
      guidelines or policies of an applicable regulatory agency or (b) any official
      administrative pronouncement or judicial decision interpreting or applying
      such
      laws or regulations, which amendment or change is effective or such
      pronouncement or decision is announced on or after the date of original issuance
      of the Securities, the Capital Securities do not constitute, or within 90 days
      of the date thereof, will not constitute, Tier 1 Capital (or its then equivalent
      if the Corporation were subject to such Capital Requirement); provided,
      however,
      that
      the distribution of the Securities in connection with the liquidation of the
      Trust by the Corporation, as sponsor, shall not in and of itself constitute
      a
      Regulatory Capital Event unless such liquidation shall have occurred in
      connection with a Tax Event.

     

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

     

    “Restricted
      Securities”
shall
      mean Securities that bear or are required to bear the legends set forth in
      Exhibit A hereto.

     

    “Rule
      144”
shall
      mean Rules 144 and 144A under the Securities Act, as such Rules may be amended
      from time to time, or under any similar rule or regulation hereafter adopted
      by
      the Commission.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

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

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    “Securityholder”,
      “Holder
      of Securities”,
      or
      other similar terms, shall mean any Person in whose name at the time a
      particular Security is registered on the register kept by the Corporation or
      the
      Debenture Trustee for that purpose in accordance with the terms
      hereof.

     

    “Security
      Register”
shall
      mean (i) prior to a Dissolution Event, the list of holders provided to the
      Debenture Trustee pursuant to Section 4.01, and (ii) following a Dissolution
      Event, any security register maintained by a security registrar for the
      Securities appointed by the Corporation following the execution of a
      supplemental indenture providing for transfer procedures as provided for in
      Section 2.06.

     

    “Senior
      Indebtedness”
shall
      mean all Indebtedness for Money Borrowed, whether outstanding on the date of
      execution of this Indenture or hereafter created, assumed or incurred, except
      Indebtedness Ranking on a Parity with the Securities or Indebtedness Ranking
      Junior to the Securities, and any deferrals, renewals or extensions of such
      Senior Indebtedness.

     

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

     

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

     

    “Tax
      Event”
shall
      mean the receipt by the Corporation and the Trust of an opinion of counsel
      experienced in such matters to the effect that, as a result of any amendment
      to,
      or change (including any announced prospective change) in, the laws or any
      regulations thereunder of the United States or any political subdivision or
      taxing authority thereof or therein, or as a result of any official
      administrative pronouncement or judicial decision interpreting or applying
      such
      laws or regulations, which amendment or change is effective or such
      pronouncement or decision is announced on or after September 29, 2006, there
      is
      more than an insubstantial risk that (i) the Trust is, or will be within 90
      days
      of the date of such opinion, subject to United States federal income tax with
      respect to income received or accrued on the Securities, (ii) interest payable
      by the Corporation on the Securities is not, or within 90 days of the date
      of
such opinion will not be, deductible by the Corporation, in whole or in part,
      for United States federal income tax purposes or (iii) the Trust is, or will
      be
      within 90 days of the date of such opinion, subject to more than a de
      minimis amount
      of
      other taxes, duties or other governmental charges.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    “Trust
      Indenture Act”
shall
      mean the Trust Indenture Act of 1939 as in force at the date of execution of
      this Indenture, provided,
      however,
      that,
      in the event the Trust Indenture Act is amended after such date, “Trust
      Indenture Act” shall mean, to the extent required by any such amendment, the
      Trust Indenture Act as so amended.

     

    “Trust
      Securities”
shall
      mean the Capital Securities and the Common Securities,
      collectively.

     

    “U.S.
      Government Obligations”
shall
      mean securities that are (i) direct obligations of the United States of America
      for the payment of which its full faith and credit is pledged or (ii)
      obligations of a Person controlled or supervised by and acting as an agency
      or
      instrumentality of the United States of America the payment of which is
      unconditionally guaranteed as a full faith and credit obligation by the United
      States of America, which, in either case under clauses (i) or (ii) are not
      callable or prepayable at the option of the issuer thereof, and shall also
      include a depository receipt issued by a bank or trust company as custodian
      with
      respect to any such U.S. Government Obligation or a specific payment of interest
      on or principal of any such U.S. Government Obligation held by such custodian
      for the account of the holder of a depository receipt, provided that (except
      as
      required by law) such custodian is not authorized to make any deduction from
      the
      amount payable to the holder of such depository receipt from any amount received
      by the custodian in respect of the U.S. Government Obligation or the specific
      payment of interest on or principal of the U.S. Government Obligation evidenced
      by such depository receipt.

     

    Section
      1.02  Business
      Day Certificate.

     

    On
      the
      date of execution and delivery of this Indenture (with respect to the remainder
      of calendar year 2006) and thereafter, within 15 days prior to the end of each
      calendar year while this Indenture remains in effect (with respect to the
      succeeding calendar years), the Corporation shall deliver to the Debenture
      Trustee an Officers’ Certificate specifying the days on which banking
      institutions or trust companies in Wilmington, Delaware are authorized or
      obligated by law or executive order to be closed.

     

    ARTICLE
      II.

    SECURITIES

     

    Section
      2.01  Forms
      Generally

     

    The
      Securities and the Debenture Trustee’s certificate of authentication shall be
      substantially in the form of Exhibit A, the terms of which are incorporated
      in
      and made apart of this Indenture. The Securities may have notations, legends
      or
      endorsements required by law, stock exchange rule, agreements to which the
      Corporation is subject or usage. Each Security shall be dated the date of its
      authentication. The Securities shall be issued in denominations of $100,000
      and
      integral multiples thereof.

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    Section
      2.02  Execution
      and Authentication.

     

    One
      Officer shall sign the Securities for the Corporation by manual or facsimile
      signature. If an Officer whose signature is on a Security no longer holds that
      office at the time the Security is authenticated, the Security shall
      nevertheless be valid.

     

    A
      Security shall not be valid until authenticated by the manual signature of
      the
      Debenture Trustee. The signature of the Debenture Trustee shall be conclusive
      evidence that the Security has been authenticated under this Indenture. The
      form
      of Debenture Trustee’s certificate of authentication to be borne by the
      Securities shall be substantially as set forth in Exhibit A hereto.

     

    The
      Debenture Trustee shall, upon a Corporation Order, authenticate for original
      issue up to, and the aggregate principal amount of Securities outstanding at
      any
      time may not exceed, $15,800,000 aggregate principal amount of the Securities,
      except as provided in Sections 2.07, 2.08, 2.09 and 14.05.

     

    Section
      2.03  Form
      and Payment

     

    The
      Securities shall be issued in fully registered certificated form without
      interest coupons. Principal of and interest on the Securities issued in
      certificated form will be payable, the transfer of such Securities will be
      registrable and such Securities will be exchangeable for Securities bearing
      identical terms and provisions at the office or agency of the Corporation
      maintained for such purpose under Section 3.02; provided,
      however,
      that
      payment of interest with respect to Securities may be made at the option of
      the
      Corporation (i) by check mailed to the holder at such address as shall appear
      in
      the Security Register or (ii) by transfer to an account maintained by the Person
      entitled thereto, provided that proper transfer instructions have been received
      in writing by the relevant record date. Notwithstanding the foregoing, so long
      as the holder of any Securities is the Property Trustee, the payment of the
      principal of and interest (including Compounded Interest and Additional Sums,
      if
      any), if any, on such Securities held by the Property Trustee will be made
      at
      such place and to such account as may be designated by the Property
      Trustee.

     

    Section
      2.04  Legends.

     

    Except
      as
      permitted herein or as otherwise determined by the Company in accordance with
      applicable law, each Security shall bear the applicable legends relating to
      restrictions on transfer pursuant to the securities laws in substantially the
      form set forth on Exhibit A hereto. 

     

    Section
      2.05  Interest

     

    (a)  Each
      Security will bear interest at the rate of 7.75% per annum (the “Coupon Rate”)
      from the most recent date to which interest has been paid or duly provided
      for
      or, if no interest has been paid or duly provided for, from September 29, 2006,
      until the principal thereof becomes due and payable, and at the Coupon Rate
      on
      any overdue principal and (to the extent that payment of such interest is
      enforceable under applicable law) on any overdue installment of interest,
      compounded quarterly, payable (subject to the provisions of Article XVI)
      quarterly in arrears on the last day of March, June, September and December
      of
      each year (each, an “Interest Payment Date”) commencing on December 31, 2006, to
      the Person in whose name such Security or any predecessor Security is
      registered, at the close of business on the regular record date for such
      interest installment, which shall be the fifteenth day of the month immediately
      preceding the month in which the relevant Interest Payment Date
      falls.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    (b)  Interest
      will be computed on the basis of a 360-day year consisting of twelve 30-day
      months and, for any period less than a full calendar month, the number of days
      elapsed in such month. In the event that any Interest Payment Date falls on
      a
      day that is not a Business Day, then payment of interest payable on such date
      will be made on the next succeeding day which is a Business Day (and without
      any
      interest or other payment in respect of any such delay), except that if such
      next succeeding Business Day falls in the next succeeding calendar year, then
      such payment shall be made on the immediately preceding Business Day, in each
      case with the same force and effect as if made on such date.

     

    (c)  During
      such time as the Property Trustee is the holder of any Securities, the
      Corporation shall pay any additional amounts on the Securities as may be
      necessary in order that the amount of Distributions then due and payable by
      the
      Trust on the outstanding Trust Securities shall not be reduced as a result
      of
      any additional taxes, duties and other governmental charges to which the Trust
      has become subject as a result of a Tax Event (“Additional Sums”).

     

    Section
      2.06  Transfer
      and Exchange

     

    To
      permit
      registrations of transfers, the Corporation shall execute and the Debenture
      Trustee shall authenticate Definitive Securities at the request of the security
      registrar for the Securities. All Definitive Securities issued upon any
      registration of transfer or exchange of Definitive Securities shall be the
      valid
      obligations of the Corporation, evidencing the same debt, and entitled to the
      same benefits under this Indenture, as the Definitive Securities surrendered
      upon such registration of transfer or exchange.

     

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

     

    The
      Corporation shall not be required to (i) issue, register the transfer of or
      exchange Securities during a period beginning at the opening of business 15
      days
      before the day of mailing of a notice of prepayment or any notice of selection
      of Securities for prepayment under Article XIV hereof and ending at the close
      of
      business on the day of such mailing; or (ii) register the transfer of or
      exchange any Security so selected for prepayment in whole or in part, except
      the
      unredeemed portion of any Security being prepaid in part.

     

    Prior
      to
      due presentment for the registration of a transfer of any Security, the
      Debenture Trustee, the Corporation and any agent of the Debenture Trustee or
      the
      Corporation may deem and treat the Person in whose name any Security is
      registered as the absolute owner of such Security for the purpose of receiving
      payment of principal of and premium, if any, and interest on such Securities,
      and none of the Debenture Trustee, the Corporation and any agents of the
      Debenture Trustee or the Corporation shall be affected by notice to the
      contrary.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

    Section
      2.07  Replacement
      Securities

     

    If
      any
      mutilated Security is surrendered to the Debenture Trustee, or the Corporation
      and the Debenture Trustee receive evidence to their satisfaction of the
      destruction, loss or theft of any Security, the Corporation shall issue and
      the
      Debenture Trustee shall authenticate a replacement Security if the Debenture
      Trustee’s requirements for replacements of Securities are met. An indemnity bond
      must be supplied by the holder that is sufficient in the judgment of the
      Debenture Trustee and the Corporation to protect the Corporation, the Debenture
      Trustee, any agent thereof or any authenticating agent from any loss that any
      of
      them may suffer if a Security is replaced. The Corporation or the Debenture
      Trustee may charge for its expenses in replacing a Security.

     

    Every
      replacement Security is an obligation of the Corporation and shall be entitled
      to all of the benefits of this Indenture equally and proportionately with all
      other Securities duly issued hereunder.

     

    Section
      2.08  Temporary
      Securities

     

    Pending
      the preparation of Definitive Securities, the Corporation may execute, and
      upon
      Corporation Order the Debenture Trustee shall authenticate and make available
      for delivery, temporary Securities that are printed, lithographed, typewritten,
      mimeographed or otherwise reproduced, in any authorized denomination,
      substantially of the tenor of the Definitive Securities 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
      conclusively evidenced by their execution of such Securities.

     

    If
      temporary Securities are issued, the Corporation shall cause Definitive
      Securities to be prepared without unreasonable delay. The Definitive Securities
      shall be printed, lithographed or engraved, or provided by any combination
      thereof, or in any other manner permitted by the rules and regulations of any
      applicable securities exchange, all as determined by the officers executing
      such
      Definitive Securities. 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 maintained by
      the
      Corporation for such purpose pursuant to Section 3.02 hereof, without charge
      to
      the Holder. Upon surrender for cancellation of any one or more temporary
      Securities, the Corporation shall execute, and the Debenture Trustee shall
      authenticate and make available for delivery, in exchange therefor the same
      aggregate principal amount of Definitive Securities of authorized denominations.
      Until so exchanged, the temporary Securities shall in all respects be entitled
      to the same benefits under this Indenture as Definitive Securities.

     

    Section
      2.09  Cancellation.

     

    The
      Corporation at any time may deliver Securities to the Debenture Trustee for
      cancellation. The Debenture Trustee and no one else shall cancel all Securities
      surrendered for registration of transfer, exchange, payment, replacement or
      cancellation and shall retain or destroy cancelled Securities in accordance
      with
      its normal practices (subject to the record retention requirement of the
      Exchange Act) unless the Corporation directs them to be returned to it. The
      Corporation may not issue new Securities to replace Securities that have been
      prepaid or paid or that have been delivered to the Debenture Trustee for
      cancellation.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    Section
      2.10  Defaulted
      Interest.

     

    Any
      interest on any Security that is payable, but is not punctually paid or duly
      provided for, on any Interest Payment Date (herein called “Defaulted Interest”)
      shall forthwith cease to be payable to the holder on the relevant regular record
      date by virtue of having been such holder; and such Defaulted Interest shall
      be
      paid by the Corporation, at its election, as provided in clause (a) or clause
      (b) below:

     

    (a)  The
      Corporation may make payment of any Defaulted Interest on Securities to the
      Persons in whose names such Securities (or their respective Predecessor
      Securities) are registered at the close of business on a special record date
      for
      the payment of such Defaulted Interest, which shall be fixed in the following
      manner: the Corporation shall notify the Debenture Trustee in writing of the
      amount of Defaulted Interest proposed to be paid on each such Security and
      the
      date of the proposed payment (which date shall be sufficiently in advance of
      such notice to permit the Debenture Trustee time to take the actions
      contemplated by this Section 2.10), and at the same time the Corporation shall
      deposit with the Debenture 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 Debenture 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 Debenture Trustee shall fix a special record date for
      the payment of such Defaulted Interest which shall not be more than 15 nor
      less
      than 10 days prior to the date of the proposed payment and not less than 10
      days
      after the receipt by the Debenture Trustee of the notice of the proposed
      payment. The Debenture 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
      Securityholder at his or her address as it appears in the Security Register,
      not
      less than 10 days prior to such special record date. Notice of the proposed
      payment of such Defaulted Interest and the special record date therefor having
      been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons
      in whose names such Securities (or their respective Predecessor Securities)
      are
      registered on such special record date and shall be no longer payable pursuant
      to the following clause (b).

     

    (b)  The
      Corporation may make payment of any Defaulted Interest on any Securities in
      any
      other lawful manner not inconsistent with the requirements of any securities
      exchange on which such Securities may be listed, and upon such notice as may
      be
      required by such exchange, if, after notice given by the Corporation to the
      Debenture Trustee of the proposed payment pursuant to this clause, such manner
      of payment shall be deemed practicable by the Debenture Trustee.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    Section
      2.11  CUSIP
      Numbers

     

    The
      Corporation in issuing the Securities may use “CUSIP” numbers (if then generally
      in use), and, if so, the Debenture Trustee shall use “CUSIP” numbers in notices
      of prepayment as a convenience to Securityholders; provided
      that
      any
      such notice 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 a prepayment and that reliance may be placed only on the other identification
      numbers printed on the Securities, and any such prepayment shall not be affected
      by any defect in or omission of such numbers. The Corporation will promptly
      notify the Debenture Trustee of any change in the CUSIP numbers.

     

    ARTICLE
      III.

    PARTICULAR
      COVENANTS OF THE CORPORATION

     

    Section
      3.01  Payment
      of Principal and Interest.

     

    The
      Corporation covenants and agrees for the benefit of the holders of the
      Securities that it will duly and punctually pay or cause to be paid the
      principal of and interest on the Securities at the place, at the respective
      times and in the manner provided herein. Except as provided in Section 2.03,
      each installment of interest on the Securities may be paid by mailing checks
      for
      such interest payable to the order of the holder of Security entitled thereto
      as
      they appear in the Security Register. The Corporation further covenants to
      pay
      any and all amounts, including, without limitation, Additional Sums, as may
      be
      required pursuant to Section 2.05(c), and Compounded Interest, as may be
      required pursuant to Section 16.01.

     

    Section
      3.02  Offices
      for Notices and Payments. etc.

     

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

     

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

     

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

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

     

    The
      Corporation, whenever necessary to avoid or fill a vacancy in the office of
      Debenture Trustee, will appoint, in the manner provided in Section 6.10, a
      Debenture Trustee, so that there shall at all times be a Debenture Trustee
      hereunder.

     

    Section
      3.04  Provision
      as to Paying Agent.

     

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

     

    (1)  that
      it
      will hold all sums held by it as such agent for the payment of the principal
      of
      or interest on the Securities (whether such sums have been paid to it by the
      Corporation or by any other obligor on the Securities) in trust for the benefit
      of the holders of the Securities; and

     

    (2)  that
      it
      will give the Debenture Trustee notice of any failure by the Corporation (or
      by
      any other obligor on the Securities) to make any payment of the principal of
      or
      interest (including Additional Sums and Compounded Interest, if any) on the
      Securities when the same shall be due and payable.

     

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

     

    (c)  Anything
      in this Section 3.04 to the contrary notwithstanding, the Corporation may,
      at
      any time, for the purpose of obtaining a satisfaction and discharge with respect
      to the Securities hereunder, or for any other reason, pay or cause to be paid
      to
      the Debenture Trustee all sums held in trust for such Securities by the
      Debenture Trustee or any paying agent hereunder, as required by this Section
      3.04, such sums to be held by the Debenture Trustee upon the trusts herein
      contained.

     

    (d)  Anything
      in this Section 3.04 to the contrary notwithstanding, the agreement to hold
      sums
      in trust as provided in this Section 3.04 is subject to Sections 11.03 and
      11.04.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Section
      3.05  Certificate
      to Debenture Trustee

     

    The
      Corporation will deliver to the Debenture Trustee on or before 120 days after
      the end of each fiscal year in each year, commencing with the first fiscal
      year
      ending after the date hereof, so long as Securities are outstanding hereunder,
      an Officers’ Certificate, one of the signers of which shall be the principal
      executive, principal financial or principal accounting officer of the
      Corporation, stating that in the course of the performance by the signers of
      their duties as officers of the Corporation they would normally have knowledge
      of any default by the Corporation in the performance of any covenants contained
      herein, stating whether or not they have knowledge of any such default and,
      if
      so, specifying each such default of which the signers have knowledge and the
      nature thereof. For purposes of this Section 3.05, default shall be determined
      without regard to any period of grace or requirement of notice provided for
      herein.

     

    Section
      3.06  Compliance
      with Consolidation Provisions

     

    The
      Corporation will not, while any of the Securities remain outstanding,
      consolidate with, or merge into, or merge into itself, or sell or convey all
      or
      substantially all of its property to any other Person unless the provisions
      of
      Article X hereof are complied with.

     

    Section
      3.07  Limitation
      on Dividends

     

    The
      Corporation will not (i) declare or pay any dividends or distributions on,
      or
      prepay, purchase, acquire, or make a liquidation payment with respect to, any
      of
      the Corporation’s capital stock, (ii) make any payment of principal or interest
      on or repay, repurchase or redeem any debt securities of the Corporation
      (including Other Debentures) that rank
      pari
      passu with
      or
      junior in right of payment to the Securities or (iii) make any guarantee
      payments with respect to any guarantee by the Corporation of the debt securities
      of any Subsidiary of the Corporation (including Other Guarantees) if such
      guarantee ranks pari
      passu with
      or
      junior in right of payment to the Securities (other than (a) dividends or
      distributions in shares of, or options, warrants or rights to subscribe for
      or
      purchase shares of, Common Stock, (b) any declaration of a dividend in
      connection with the implementation of a stockholder’s rights plan, or the
      issuance of stock under any such plan in the future, or the prepayment or
      repurchase of any such rights pursuant thereto, (c) payments under the Capital
      Securities Guarantee, (d) the purchase of fractional shares resulting from
      a
      reclassification of the Corporation’s capital stock, (e) 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 and (f) purchases of Common Stock related to the
      issuance of Common Stock or rights under any of the Corporation’s benefit plans
      for its directors, officers or employees or any of the Corporation’s dividend
      reinvestment plans), if at such time (1) there shall have occurred any event
      of
      which the Corporation has actual knowledge that (a) is an Event of Default
      and
      (b) in respect of which the Corporation shall not have taken reasonable steps
      to
      cure, (2) if such Securities are held by the Property Trustee, the Corporation
      shall be in default with respect to its payment obligations under the Capital
      Securities Guarantee or (3) the Corporation shall have given notice of its
      election of the exercise of its right to extend the interest payment period
      pursuant to Section 16.01 and any such extension shall be
      continuing.

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Section
      3.08  Covenants
      as to Commerce Harrisburg Capital Trust III.

     

    In
      the
      event Securities are issued to the Trust or a trustee of such trust in
      connection with the issuance of Trust Securities by the Trust, for so long
      as
      such Trust Securities remain outstanding, the Corporation (i) will maintain
      100%
      direct or indirect ownership of the Common Securities of the Trust; provided,
      however,
      that
      any successor of the Corporation, permitted pursuant to Article X, may succeed
      to the Corporation’s ownership of such Common Securities, (ii) will use
      commercially reasonable efforts to cause the Trust (a) to remain a statutory
      trust, except in connection with a distribution of Securities to the holders
      of
      Trust Securities in liquidation of the Trust, the redemption of all of the
      Trust
      Securities of the Trust, or certain mergers, consolidations or amalgamations,
      each as permitted by the Declaration, and (b) to otherwise continue to be
      classified as a grantor trust and not an association taxable as a corporation
      for United States federal income tax purposes and (iii) will not cause, as
      sponsor of the Trust, or permit, as holder of the Common Securities, the
      dissolution, winding-up or termination of the Trust, except in connection with
      a
      distribution of the Securities as provided in the Declaration and in connection
      with certain mergers, consolidations or amalgamations.

    

    Section
      3.09  Payment
      of Expenses.

     

    In
      connection with the offering, sale and issuance of the Securities to the Trust
      and in connection with the sale of the Trust Securities by the Trust, the
      Corporation, in its capacity as borrower with respect to the Securities,
      shall:

     

    (a)  pay
      all
      costs and expenses relating to the offering, sale and issuance of the
      Securities, including costs and expenses payable pursuant to the Purchase
      Agreement and compensation of the Debenture Trustee in accordance with the
      provisions of Section 6.06;

     

    (b)  pay
      all
      costs and expenses of the Trust (including, but not limited to, costs and
      expenses relating to the organization of the Trust, the offering, sale and
      issuance of the Trust Securities (including commissions to the initial purchaser
      in connection therewith), the fees and expenses of the Property Trustee and
      the
      Delaware Trustee, the costs and expenses relating to the operation of the Trust,
      including without limitation, costs and expenses of accountants, attorneys,
      statistical or bookkeeping services, expenses for printing and engraving and
      computing or accounting equipment, paying agent(s), registrar(s), transfer
      agent(s), duplicating, travel and telephone and other telecommunications
      expenses and costs and expenses incurred in connection with the acquisition,
      financing, and disposition of assets of the Trust;

     

    (c)  be
      primarily and fully liable for any indemnification obligations arising with
      respect to the Declaration;

     

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

     

    (e)  pay
      all
      other fees, expenses, debts and obligations (other than in respect of the Trust
      Securities) related to the Trust.

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Section
      3.10  Payment
      Upon Resignation or Removal

     

    Upon
      termination of this Indenture or the removal or resignation of the Debenture
      Trustee, unless otherwise stated, the Corporation shall pay to the Debenture
      Trustee all amounts accrued and owing to the date of such termination, removal
      or resignation. Upon termination of the Declaration or the removal or
      resignation of the Delaware Trustee or the Property Trustee, as the case may
      be,
      pursuant to Section 5.7 of the Declaration, the Corporation shall pay to the
      Delaware Trustee or the Property Trustee, as the case may be, all amounts
      accrued and owing to the date of such termination, removal or
      resignation.

     

    ARTICLE
      IV.

    SECURITYHOLDERS’
      LISTS AND REPORTS BY THE

    CORPORATION
      AND THE DEBENTURE TRUSTEE

     

    Section
      4.01  Securityholders’
      Lists

     

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

     

    (a)  on
      a
      semi-annual basis on each regular record date for the Securities, a list, in
      such form as the Debenture Trustee may reasonably require, of the names and
      addresses of the Securityholders as of such record date; and

     

    (b)  at
      such
      other times as the Debenture 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, except that, no such lists need be furnished so long as the
      Debenture Trustee is in possession thereof by reason of its acting as security
      registrar for the Securities.

     

    Section
      4.02  Preservation
      and Disclosure of Lists

     

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

     

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

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

     

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

     

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

     

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

     

    (c)  Each
      and
      every holder of Securities, by receiving and holding the same, agrees with
      the
      Corporation and the Debenture Trustee that neither the Corporation nor the
      Debenture Trustee nor any paying agent shall be held accountable by reason
      of
      the disclosure of any such information as to the names and addresses of the
      holders of Securities in accordance with the provisions of subsection (b) of
      this Section 4.02, regardless of the source from which such information was
      derived, and that the Debenture Trustee shall not be held accountable by reason
      of mailing any material pursuant to a request made under said subsection
      (b).

     

    Section
      4.03  Reports
      by the Corporation.

     

    (a)  The
      Corporation covenants and agrees to file with the Debenture Trustee, within
      15
      days after the date on which the Corporation is required to file the same with
      the Commission, copies of the annual reports and of the information, documents
      and other reports (or copies of such portions of any of the foregoing as said
      Commission may from time to time by rules and regulations prescribe) which
      the
      Corporation may be required to file with the Commission pursuant to Section
      13
      or Section 15(d) of the Exchange Act; or, if the Corporation is not required
      to
      file information, documents or reports pursuant to either of such sections,
      then
      to provide to the Debenture Trustee, such of the supplementary and periodic
      information, documents and reports which would have been required pursuant
      to
      Section 13 of the Exchange Act in respect of a security listed and registered
      on
      a national securities exchange as may be prescribed from time to time in such
      rules and regulations.

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

     

    (b)  The
      Corporation covenants and agrees to file with the Debenture Trustee and the
      Commission, in accordance with the rules and regulations prescribed from time
      to
      time by said Commission, such additional information, documents and reports
      with
      respect to compliance by the Corporation with the conditions and covenants
      provided for in this Indenture as may be required from time to time by such
      rules and regulations.

     

    (c)  The
      Corporation covenants and agrees to transmit by mail to all holders of
      Securities, as the names and addresses of such holders appear upon the Security
      Register, within 30 days after the filing thereof with the Debenture Trustee,
      such summaries of any information, documents and reports required to be filed
      by
      the Corporation pursuant to subsections (a) and (b) of this Section 4.03 as
      may
      be required by rules and regulations prescribed from time to time by the
      Commission.

     

    (d)  Delivery
      of such reports, information and documents to the Debenture Trustee is for
      informational purposes only and the Debenture Trustee’s receipt of such shall
      not constitute constructive notice of any information contained therein or
      determinable from information contained therein, including the Corporation’s
      compliance with any of its covenants hereunder (as to which the Debenture
      Trustee is entitled to rely exclusively on Officers’ Certificates).

     

    Section
      4.04  Reports
      by the Debenture Trustee.

     

    (a)  The
      Debenture Trustee shall transmit to Securityholders such reports concerning
      the
      Debenture 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. If required by Section 313(a) of the Trust Indenture Act,
      the
      Debenture Trustee shall, within sixty days after December 31 of each year
      following the date of this Indenture, commencing December 31, 2006, deliver
      to Securityholders a brief report, which complies with the provisions of such
      Section 313(a).

     

    (b)  A
      copy of
      each such report shall, at the time of such transmission to Securityholders,
      be
      filed by the Debenture Trustee with each stock exchange, if any, upon which
      the
      Securities are listed, with the Commission and with the Corporation. The
      Corporation will promptly notify the Debenture Trustee when the Securities
      are
      listed on any stock exchange.

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

     

    ARTICLE
      V.

    REMEDIES
      OF THE DEBENTURE TRUSTEE AND SECURITYHOLDERS

    ON
      EVENT OF DEFAULT

     

    Section
      5.01  Events
      of Default.

     

    One
      or
      more of the following events of default shall constitute an Event of Default
      hereunder (whatever the reason for such Event of Default and whether it shall
      be
      voluntary or involuntary or be effected by operation of law or pursuant to
      any
      judgment, decree or order of any court or any order, rule or regulation of
      any
      administrative or governmental body):

     

    (a)  default
      in the payment of any interest (including Compounded Interest and Additional
      Sums, if any) on the Securities or any Other Debentures when due, and
      continuance of such default for a period of 30 days; provided,
      however,
      that a
      valid extension of an interest payment period by the Corporation in accordance
      with the terms hereof shall not constitute a default in the payment of interest
      for this purpose; or

     

    (b)  default
      in the payment of any principal of the Securities or any Other Debentures when
      due whether at maturity, upon prepayment, by declaration of acceleration of
      maturity or otherwise; or

     

    (c)  default
      in the performance, or breach, of any covenant or warranty of the Corporation
      in
      this Indenture (other than a covenant or warranty a default in whose performance
      or whose breach is elsewhere in this Section specifically dealt with ), and
      continuance of such default or breach for a period of 90 days after there has
      been given, by registered or certified mail, to the Corporation by the Debenture
      Trustee or to the Corporation and the Debenture Trustee by the holders of at
      least 25% in aggregate principal amount of the outstanding Securities a written
      notice specifying such default or breach and requiring it to be remedied and
      stating that such notice is a “Notice of Default” hereunder; or

     

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

     

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

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

     

    If
      an
      Event of Default with respect to Securities at the time outstanding occurs
      and
      is continuing, then in every such case the Debenture Trustee or the holders
      of
      not less than 25% in aggregate principal amount of the Securities then
      outstanding may declare the principal amount of all Securities to be due and
      payable immediately, by a notice in writing to the Corporation (and to the
      Debenture Trustee if given by the holders of the outstanding Securities), and
      upon any such declaration the same shall become immediately due and
      payable.

     

    The
      foregoing provisions, however, are subject to the condition that if, at any
      time
      after the principal of the Securities shall have been so declared due and
      payable, and before any judgment or decree for the payment of the moneys due
      shall have been obtained or entered as hereinafter provided, (i) the Corporation
      shall pay or shall deposit with the Debenture Trustee a sum sufficient to pay
      (A) all matured installments of interest (including Compounded Interest and
      Additional Sums, if any) upon all the Securities and the principal of any and
      all Securities which shall have become due otherwise than by acceleration (with
      interest upon such principal and, to the extent that payment of such interest
      is
      enforceable under applicable law, on overdue installments of interest, at the
      same rate as the rate of interest specified in the Securities to the date of
      such payment or deposit) and (B) such amount as shall be sufficient to cover
      compensation due to the Debenture Trustee and each predecessor Debenture
      Trustee, their respective agents, attorneys and counsel, pursuant to Section
      6.06, and (ii) any and all Events of Default under the Indenture, other than
      the
      non-payment of the principal of the Securities which shall have become due
      solely by such declaration of acceleration, shall have been cured, waived or
      otherwise remedied as provided herein, then, in every such case, the holders
      of
      a majority in aggregate principal amount of the Securities then outstanding,
      by
      written notice to the Corporation and to the Debenture Trustee, may rescind
      and
      annul such declaration and its consequences, but no such waiver or rescission
      and annulment shall extend to or shall affect any subsequent default or shall
      impair any right consequent thereon.

     

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

     

    Section
      5.02  Payment
      of Securities on Default; Suit Therefor.

     

    The
      Corporation covenants that (a) in case default shall be made in the payment
      of
      any installment of interest (including Compounded Interest and Additional Sums,
      if any) upon any of the Securities as and when the same shall become due and
      payable, and such default shall have continued for a period of 30 days, or
      (b)
      in case default shall be made in the payment of the principal on any of the
      Securities as and when the same shall have become due and payable, whether
      at
      maturity of the Securities or upon prepayment or by declaration or otherwise,
      then, upon demand of the Debenture Trustee, the Corporation will pay to the
      Debenture Trustee, for the benefit of the holders of the Securities, the whole
      amount that then shall have become due and payable on all such Securities for
      principal or interest (including Compounded Interest and Additional Sums, if
      any) or both, as the case may be, with interest upon the overdue principal
      (to
      the extent that payment of such interest is enforceable under applicable law
      and, if the Securities are held by the Trust or a trustee of such trust, without
      duplication of any other amounts paid by the Trust or a trustee in respect
      thereof) upon the overdue installments of interest (including Compounded
      Interest and Additional Sums, if any) at the rate borne by the Securities;
      and,
      in addition thereto, such further amount as shall be sufficient to cover the
      costs and expenses of collection, including a reasonable compensation to the
      Debenture Trustee, its agents, attorneys and counsel, and any other amount
      due
      to the Debenture Trustee pursuant to Section 6.06.

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

     

    In
      case
      the Corporation shall fail forthwith to pay such amounts upon such demand,
      the
      Debenture Trustee, in its own name and as trustee of an express trust, shall
      be
      entitled and empowered to institute any actions or proceedings at law or in
      equity for the collection of the sums so due and unpaid, and may prosecute
      any
      such action or proceeding to judgment or final decree, and may enforce any
      such
      judgment or final decree against the Corporation or any other obligor on the
      Securities and collect in the manner provided by law out of the property of
      the
      Corporation or any other obligor on the Securities, wherever situated, the
      moneys adjudged or decreed to be payable.

     

    In
      case
      there shall be pending proceedings for the bankruptcy or for the reorganization
      of the Corporation or any other obligor on the Securities under Title 11, United
      States Code, or any other applicable law, or in case a receiver or trustee
      shall
      have been appointed for the property of the Corporation or such other obligor,
      or in the case of any other similar judicial proceedings relative to the
      Corporation or other obligor upon the Securities, or to the creditors or
      property of the Corporation or such other obligor, the Debenture Trustee,
      irrespective of whether the principal of the Securities shall then be due and
      payable as therein expressed or by declaration or otherwise and irrespective
      of
      whether the Debenture Trustee shall have made any demand pursuant to the
      provisions of this Section 5.02, shall be entitled and empowered, by
      intervention in such proceedings or otherwise, to file and prove a claim or
      claims for the whole amount of principal and interest owing and unpaid in
      respect of the Securities and, in case of any judicial proceedings, to file
      such
      proofs of claim and other papers or documents as may be necessary or advisable
      in order to have the claims of the Debenture Trustee (including any claim for
      amounts due to the Debenture Trustee pursuant to 6.06) and of the
      Securityholders allowed in such judicial proceedings relative to the Corporation
      or any other obligor on the Securities, or to the creditors or properly of
      the
      Corporation or such other obligor, unless prohibited by applicable law and
      regulations, to vote on behalf of the holders of the Securities in any election
      of a trustee or a standby trustee in arrangement, reorganization, liquidation
      or
      other bankruptcy or insolvency proceedings or person performing similar
      functions in comparable proceedings, and to collect and receive any moneys
      or
      other property payable or deliverable on any such claims, and to distribute
      the
      same after the deduction of its charges and expenses; and any receiver, assignee
      or trustee in bankruptcy or reorganization is hereby authorized by each of
      the
      Securityholders to make such payments to the Debenture Trustee, and, in the
      event that the Debenture Trustee shall consent to the making of such payments
      directly to the Securityholders, to pay to the Debenture Trustee such amounts
      as
      shall be sufficient to cover reasonable compensation to the Debenture Trustee,
      each predecessor Debenture Trustee and their respective agents, attorneys and
      counsel, and all other amounts due to the Debenture Trustee pursuant to Section
      6.06.

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

     

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

     

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

     

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

     

    Section
      5.03  Application
      of Moneys Collected by Debenture Trustee.

     

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

     

    First:
      To
      the payment of costs and expenses of collection applicable to the Securities
      and
      all other amounts due to the Debenture Trustee under Section 6.06;

     

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

     

    Third:
      In
      case the principal of the outstanding Securities in respect of which moneys
      have
      been collected shall not have become due and be unpaid, to the payment of the
      amounts then due and unpaid upon Securities for principal of and interest
      (including Compounded Interest and Additional Sums, if any) on the Securities,
      in respect of which or for the benefit of which money has been collected,
      ratably, without preference of priority of any kind, according to the amounts
      due on such Securities for principal and interest, respectively;
      and

     

    Fourth:
      To the Corporation.

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    Section
      5.04  Proceedings
      by Securityholders. 

     

    No
      holder
      of any Security shall have any right by virtue of or by availing of any
      provision of this Indenture to institute any suit, action or proceeding in
      equity or at law upon or under or with respect to this Indenture or for the
      appointment of a receiver or trustee, or for any other remedy hereunder, unless
      such holder previously shall have given to the Debenture Trustee written notice
      of an Event of Default and of the continuance thereof with respect to the
      Securities specifying such Event of Default, as herein before provided, and
      unless also the holders of not less than 25% in aggregate principal amount
      of
      the Securities then outstanding shall have made written request upon the
      Debenture Trustee to institute such action, suit or proceeding in its own name
      as Debenture Trustee hereunder and shall have offered to the Debenture Trustee
      such reasonable indemnity as it may require against the costs, expenses and
      liabilities to be incurred therein or thereby, and the Debenture Trustee for
      60
      days after its receipt of such notice, request and offer of indemnity shall
      have
      failed to institute any such action, suit or proceeding, it being understood
      and
      intended, and being expressly covenanted by the taker and holder of every
      Security with every other taker and holder and the Debenture Trustee, that
      no
      one or more holders of Securities shall have any right in any manner whatever
      by
      virtue of or by availing of any provision of this Indenture to affect, disturb
      or prejudice the rights of any other holder of Securities, or to obtain or
      seek
      to obtain priority over or preference to any other such holder, or to enforce
      any right under this Indenture, except in the manner herein provided and for
      the
      equal, ratable and common benefit of all holders of Securities.

     

    Notwithstanding
      any other provisions in this Indenture, however, the right of any holder of
      any
      Security to receive payment of the principal of and interest on (including
      Compounded Interest and Additional Sums, if any) on such Security, on or after
      the same shall have become due and payable, or to institute suit for the
      enforcement of any such payment, shall not be impaired or affected without
      the
      consent of such holder and by accepting a Security hereunder it is expressly
      understood, intended and covenanted by the taker and holder of every Security
      with every other such taker and holder and the Debenture Trustee, that no one
      or
      more holders of Securities shall have any right in any manner whatsoever by
      virtue or by availing of any provision of this Indenture to affect, disturb
      or
      prejudice the rights of the holders of any other Securities, or to obtain or
      seek to obtain priority over or preference to any other such holder, or to
      enforce any right under this Indenture, except in the manner herein provided
      and
      for the equal, ratable and common benefit of all holders of Securities. For
      the
      protection and enforcement of the provisions of this Section, each and every
      Securityholder and the Debenture Trustee shall be entitled to such relief as
      can
      be given either at law or in equity.

     

    The
      Corporation and the Debenture Trustee acknowledge that pursuant to the
      Declaration, the holders of Capital Securities are entitled, in the
      circumstances and subject to the limitations set forth therein, to commence
      a
      Direct Action with respect to any Event of Default under this Indenture and
      the
      Securities.

     

    Section
      5.05  Proceedings
      by Debenture Trustee.

     

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

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

     

    Section
      5.06  Remedies
      Cumulative and Continuing.

     

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

     

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

     

    The
      holders of a majority in aggregate principal amount of the Securities at the
      time outstanding shall have the right to direct the time, method, and place
      of
      conducting any proceeding for any remedy available to the Debenture Trustee,
      or
      exercising any trust or power conferred on the Debenture Trustee; provided,
      however,
      that
      (subject to the provisions of Section 6.01 ) the Debenture Trustee shall have
      the right to decline to follow any such direction if the Debenture Trustee
      shall
      determine that the action so directed would be unjustly prejudicial to the
      holders not taking part in such direction or if the Debenture Trustee being
      advised by counsel determines that the action or proceeding so directed may
      not
      lawfully be taken or if the Debenture Trustee in good faith by its board of
      directors or trustees, executive committee, or a trust committee of directors
      or
      trustees and/or Responsible Officers shall determine that the action or
      proceedings so directed would involve the Debenture Trustee in personal
      liability. Prior to any declaration accelerating the maturity of the Securities,
      the holders of a majority in aggregate principal amount of the Securities at
      the
      time outstanding may on behalf of the holders of all of the Securities waive
      any
      past default or Event of Default and its consequences except a default (a)
      in
      the payment of principal of or interest on (including Compounded Interest and
      Additional Sums, if any) on any of the Securities (unless such default has
      been
      cured and a sum sufficient to pay all matured installments of interest
      (including Compounded Interest and Additional Sums, if any) and principal due
      otherwise than by acceleration has been deposited with the Debenture Trustee)
      or
      (b) in respect of covenants or provisions hereof which cannot be modified or
      amended without the consent of the holder of each Security affected;
provided,
      however,
      that if
      the Securities are held by the Property Trustee, such waiver or modification
      to
      such waiver shall not be effective until the holders of a majority in aggregate
      liquidation amount of Trust Securities shall have consented to such waiver
      or
      modification to such waiver; provided further,
      that if
      the consent of the holder of each outstanding Security is required, such waiver
      shall not be effective until each holder of the Trust Securities shall have
      consented to such waiver. Upon any such waiver, the default covered thereby
      shall be deemed to be cured for all purposes of this Indenture and the
      Corporation, the Debenture Trustee and the holders of the Securities shall
      be
      restored to their former positions and rights hereunder, respectively; but
      no
      such waiver shall extend to any subsequent or other default or impair any right
      consequent thereon. Whenever any default or Event of Default hereunder shall
      have been waived as permitted by this Section 5.07, said default or Event of
      Default shall for all purposes of the Securities and this Indenture be deemed
      to
      have been cured and to be not continuing.

     

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    Section
      5.08  Notice
      of Defaults. 

     

    (a)  The
      Debenture Trustee shall, within 90 days after the occurrence of a Default with
      respect to the Securities actually known to a Responsible Officer of the
      Debenture Trustee, mail to all Securityholders, as the names and addresses
      of
      such holders appear upon the Security Register, notice of all Defaults known
      to
      the Debenture Trustee, unless such Default shall have been cured before the
      giving of such notice (the term “Default” for the purpose of this Section 5.08
      being hereby defined to be any of the events specified in clauses (a), (b),
      (c),
      (d) and (e) of Section 5.01, not including periods of grace, if any, provided
      for therein, and irrespective of the giving of written notice specified in
      clause (c) of Section 5.01 ); and provided
      that,
      except in the case of default in the payment of the principal of or interest
      (including Compounded Interest or Additional Sums, if any) on any of the
      Securities, the Debenture 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 Debenture Trustee
      in
      good faith determines that the withholding of such notice is in the interests
      of
      the Securityholders; and provided
      further,
      that in the case of any default of the character specified in Section 5.01
      (c),
      no such notice to Securityholders shall be given until at least 60 days after
      the occurrence thereof, but shall be given within 90 days after such
      occurrence.

     

    (b)  Within
      five Business Days after the occurrence of any Event of Default actually known
      to a Responsible Officer of the Debenture Trustee, the Debenture Trustee shall
      transmit notice of such Event of Default to all Securityholders as their names
      and addresses appear on the Security Register, unless such Event of Default
      shall have been cured or waived.

     

    Section
      5.09  Undertaking
      to Pay 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 Debenture Trustee for any action
      taken or omitted by it as Debenture Trustee, the filing by any party litigant
      in
      such suit of an undertaking to pay the costs of such suit, and that such court
      may in its discretion assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in such suit, having due regard
      to
      the merits and good faith of the claims or defenses made by such party litigant;
      but the provisions of this Section 5.09 shall not apply to any suit instituted
      by the Debenture Trustee, to any suit instituted by any Securityholder, or
      group
      of Securityholders, holding in the aggregate more than 10% in aggregate
      principal amount of the Securities outstanding, or to any suit instituted by
      any
      Securityholder for the enforcement of the payment of the principal of or
      interest (including Compounded Interest and Additional Sums, if any) if any,
      on
      any Security against the Corporation on or after the same shall have become
      due
      and payable.

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    

    ARTICLE
      VI.

    CONCERNING
      THE DEBENTURE TRUSTEE

     

    Section
      6.01  Duties
      and Responsibilities of Debenture Trustee.

     

    With
      respect to the holders of the Securities issued hereunder, the Debenture
      Trustee, prior to the occurrence of an Event of Default and after the curing
      or
      waiving of all Events of Default which may have occurred, undertakes to perform
      such duties and only such duties as are specifically set forth in this
      Indenture. In case an Event of Default has occurred (which has not been cured
      or
      waived), the Debenture 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.

     

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

     

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

     

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

     

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

     

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

     

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

     

    None
      of
      the provisions contained in this Indenture shall require the Debenture Trustee
      to expend or risk its own funds or otherwise incur personal financial liability
      in the performance of any of its duties or in the exercise of any of its rights
      or powers, if there is reasonable ground for believing that the repayment of
      such funds or liability is not reasonably assured to it under the terms of
      this
      Indenture or adequate indemnity against such risk is not reasonably assured
      to
      it.

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    Section
      6.02  Reliance
      on Documents, Opinions’ etc.

     

    Except
      as
      otherwise provided in Section 6.01:

     

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

     

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

     

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

     

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

     

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

     

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

     

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

     

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

     

    (h)  the
      Debenture Trustee shall not be charged with knowledge of any Default or Event
      of
      Default with respect to the Securities unless (1 ) such default is a default
      under Sections 5.01(a) (other than a default with respect to the payment of
      Compounded Interest or Additional Sums) and 5.01 (b) of the Indenture, (2)
      a
      Responsible Officer shall have actual knowledge of such Default or Event of
      Default or (3) written notice of such Default or Event of Default shall have
      been given to the Debenture Trustee by the Corporation or any other obligor
      on
      the Securities or by any holder of the Securities; and

     

    (i)  the
      Debenture Trustee shall not be liable for any action taken, suffered or omitted
      by it in good faith, without negligence or willful misconduct and believed
      by it
      to be authorized or within the discretion or rights or powers conferred upon
      it
      by this Indenture.

     

    Section
      6.03  No
      Responsibility for Recitals, etc.

     

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

     

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

     

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

     

    Section
      6.05  Moneys
      to be Held in Trust.

     

    Subject
      to the provisions of Section 11.04, all moneys received by the Debenture Trustee
      or any paying agent shall, until used or applied as herein provided, be held
      in
      trust for the purpose for which they were received, but need not be segregated
      from other funds except to the extent required by law. The Debenture Trustee
      and
      any paying agent shall be under no liability for interest on any money received
      by it hereunder except as otherwise agreed in writing with the Corporation.
      So
      long as no Event of Default shall have occurred and be continuing, all interest
      allowed on any such moneys shall be paid from time to time upon the written
      order of the Corporation, signed by the Chairman of the Board of Directors,
      the
      President or a Vice President or the Treasurer or an Assistant Treasurer of
      the
      Corporation.

     

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    Section
      6.06  Compensation
      and Expenses of Debenture Trustee.

     

    The
      Corporation, as issuer of Securities under this Indenture, covenants and agrees
      to pay to the Debenture Trustee from time to time, and the Debenture Trustee
      shall be entitled to, such compensation as shall be agreed to in writing between
      the Corporation and the Debenture Trustee (which shall not be limited by any
      provision of law in regard to the compensation of a trustee of an express
      trust), and the Corporation will pay or reimburse the Debenture Trustee upon
      its
      request for all reasonable expenses, disbursements and advances incurred or
      made
      by the Debenture Trustee in accordance with any of the provisions of this
      Indenture (including the reasonable compensation and the expenses and
      disbursements of its counsel and of all persons not regularly in its employ)
      except any such expense, disbursement or advance as may arise from its
      negligence or bad faith. The Corporation also covenants to indemnify each of
      the
      Debenture Trustee or any predecessor Debenture Trustee (and its officers,
      agents, directors and employees) for, and to hold it harmless against, any
      and
      all loss, damage, claim, liability or expense including taxes (other than taxes
      based on the income of the Debenture Trustee) incurred without negligence or
      bad
      faith on the part of the Debenture Trustee and arising out of or in connection
      with the acceptance or administration of this trust, including the costs and
      expenses of defending itself against any claim of liability in the premises.
      The
      obligations of the Corporation under this Section 6.06 to compensate and
      indemnify the Debenture Trustee and to pay or reimburse the Debenture Trustee
      for expenses, disbursements and advances shall constitute additional
      indebtedness hereunder. Such additional indebtedness shall be secured by a
      lien
      prior to that of the Securities upon all property and funds held or collected
      by
      the Debenture Trustee as such, except funds held in trust for the benefit of
      the
      holders of particular Securities.

     

    When
      the
      Debenture Trustee incurs expenses or renders services in connection with an
      Event of Default specified in Section 5.01(d) or Section 5.01(e), the expenses
      (including the reasonable charges and expenses of its counsel) and the
      compensation for the services are intended to constitute expenses of
      administration under any applicable federal or state bankruptcy, insolvency
      or
      other similar law.

     

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

     

    Section
      6.07  Officers’
      Certificate as Evidence.

     

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

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

     

    Section
      6.08  Conflicting
      Interest of Debenture Trustee.

     

    If
      the
      Debenture Trustee has or shall acquire any “conflicting interest” within the
      meaning of Section 310(b) of the Trust Indenture Act, the Debenture Trustee
      and
      the Corporation shall in all respects comply with the provisions of Section
      310(b) of the Trust Indenture Act.

     

    Section
      6.09  Eligibility
      of Debenture Trustee.

     

    The
      Debenture Trustee hereunder shall at all times be a corporation organized and
      doing business under the laws of the United States of America or any state
      or
      territory thereof or of the District of Columbia, or a corporation or other
      Person permitted to act as trustee by the Commission authorized under such
      laws
      to exercise corporate trust powers, having a combined capital and surplus of
      at
      least 50 million U.S. dollars ($50,000,000) and subject to supervision or
      examination by federal, state, territorial, or District of Columbia 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 6.09 the combined capital
      and
      surplus of such corporation shall be deemed to be its combined capital and
      surplus as set forth in its most recent report of condition so
      published.

     

    The
      Corporation may not, nor may any Person directly or indirectly controlling,
      controlled by, or under common control with the Corporation, serve as Debenture
      Trustee.

     

    In
      case
      at any time the Debenture Trustee shall cease to be eligible in accordance
      with
      the provisions of this Section 6.09, the Debenture Trustee shall resign
      immediately in the manner and with the effect specified in Section
      6.10.

     

    Section
      6.10  Resignation
      or Removal of Debenture Trustee.

     

    (a)  The
      Debenture Trustee, or any trustee or trustees hereafter appointed, may at any
      time resign by giving written notice of such resignation to the Corporation
      and
      by mailing notice thereof to the holders of the Securities at their addresses
      as
      they shall appear on the Security register. Upon receiving such notice of
      resignation, the Corporation shall promptly appoint a successor trustee or
      trustees by written instrument, in duplicate, one copy of which instrument
      shall
      be delivered to the resigning Debenture Trustee and one copy to the successor
      trustee. If no successor trustee shall have been so appointed and have accepted
      appointment within 60 days after the mailing of such notice of resignation
      to
      the affected Securityholders, the resigning Debenture Trustee may petition
      any
      court of competent jurisdiction for the appointment of a successor trustee,
      or
      any Securityholder who has been a bona fide holder of a Security for at least
      six months may, subject to the provisions of Section 5.09, on behalf of himself
      and all others similarly situated, petition any such court for the appointment
      of a successor trustee. Such court may thereupon, after such notice, if any,
      as
      it may deem proper and prescribe, appoint a successor trustee.

     

     

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

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

     

    (1)  the
      Debenture Trustee shall fail to comply with the provisions of Section 6.08
      after
      written request therefor by the Corporation or by any Securityholder who has
      been a bona fide holder of a Security or Securities for at least six months,
      or

     

    (2)  the
      Debenture Trustee shall cease to be eligible in accordance with the provisions
      of Section 6.09 and shall fail to resign after written request therefor by
      the
      Corporation or by any such Securityholder, or

     

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

     

    then,
      in
      any such case, the Corporation may remove the Debenture Trustee and appoint
      a
      successor trustee by written instrument, in duplicate, one copy of which
      instrument shall be delivered to the Debenture Trustee so removed and one copy
      to the successor trustee, or, subject to the provisions of Section 5.09, any
      Securityholder who has been a bona fide holder of a Security for at least six
      months may, on behalf of himself and all others similarly situated, petition
      any
      court of competent jurisdiction for the removal of the Debenture Trustee and
      the
      appointment of a successor trustee. Such court may thereupon, after such notice,
      if any, as it may deem proper and prescribe, remove the Debenture Trustee and
      appoint a successor trustee.

     

    (c)  The
      holders of a majority in aggregate principal amount of the Securities at the
      time outstanding may at any time remove the Debenture Trustee and nominate
      a
      successor trustee, which shall be deemed appointed as successor trustee unless
      within 10 days after such nomination the Corporation objects thereto, or if
      no
      successor trustee shall have been so appointed and shall have accepted
      appointment within 30 days after such removal, in which case the Debenture
      Trustee so removed or any Securityholder, upon the terms and conditions and
      otherwise as in subsection (a) of this Section 6.10 provided, may petition
      any
      court of competent jurisdiction for an appointment of a successor
      trustee.

     

    (d)  Any
      resignation or removal of the Debenture Trustee and appointment of a successor
      trustee pursuant to any of the provisions of this Section 6.10 shall become
      effective upon acceptance of appointment by the successor trustee as provided
      in
      Section 6.11.

     

    Section
      6.11  Acceptance
      by Successor Debenture Trustee.

     

    Any
      successor trustee appointed as provided in Section 6.10 shall execute,
      acknowledge and deliver to the Corporation and to its predecessor trustee an
      instrument accepting such appointment hereunder, and thereupon the resignation
      or removal of the retiring trustee shall become effective and such successor
      trustee, without any further act, deed or conveyance, shall become vested with
      all the rights, powers, duties and obligations of its predecessor hereunder,
      with like effect as if originally named as trustee herein; but, nevertheless,
      on
      the written request of the Corporation or of the successor trustee, the trustee
      ceasing to act shall, upon payment of any amounts then due it pursuant to the
      provisions of Section 6.06, execute and deliver an instrument transferring
      to
      such successor trustee all the rights and powers of the trustee so ceasing
      to
      act and shall duly assign, transfer and deliver to such successor trustee all
      property and money held by such retiring trustee thereunder. Upon request of
      any
      such successor trustee, the Corporation shall execute any and all instruments
      in
      writing for more fully and certainly vesting in and confirming to such successor
      trustee all such rights and powers. Any trustee ceasing to act shall,
      nevertheless, retain a lien upon all property or funds held or collected by
      such
      trustee to secure any amounts then due it pursuant to the provisions of Section
      6.06.

     

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

     

    No
      successor trustee shall accept appointment as provided in this Section 6.11
      unless at the time of such acceptance such successor trustee shall be qualified
      under the provisions of Section 6.08 and eligible under the provisions of
      Section 6.09.

     

    Upon
      acceptance of appointment by a successor trustee as provided in this Section
      6.1
      1, the Corporation shall mail notice of the succession of such trustee hereunder
      to the holders of Securities at their addresses as they shall appear on the
      Security register. If the Corporation fails to mail such notice within 10 days
      after the acceptance of appointment by the successor trustee, the successor
      trustee shall cause such notice to be mailed at the expense of the
      Corporation.

     

    Section
      6.12  Succession
      by Merger, etc.

     

    Any
      corporation into which the Debenture 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 Debenture Trustee shall be a party,
      or
      any corporation succeeding to all or substantially all of the corporate trust
      business of the Debenture Trustee, shall be the successor of the Debenture
      Trustee hereunder without the execution or filing of any paper or any further
      act on the part of any of the parties hereto.

     

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

     

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

     

    Section
      6.13  Intentionally
      Omitted.

     

    Section
      6.14  Co-trustees
      and Separate Trustees.

     

    At
      any
      time or times, for the purpose of meeting the legal requirements of any
      applicable jurisdiction, the Corporation and the Debenture Trustee shall have
      power to appoint, and, upon the written request of the Debenture Trustee or
      of
      the holders of at least 25% in principal amount of the Securities then
      outstanding, the Corporation shall for such purpose join with the Debenture
      Trustee in the execution and delivery of all instruments and agreements
      necessary or proper to appoint, one or more Persons approved by the Debenture
      Trustee, or to act as separate trustee, jointly with the Debenture Trustee,
      or
      to act as separate trustee, in either case with such powers as may be provided
      in the instrument of appointment, and to vest in such Person or Persons, in
      the
      capacity aforesaid, any property, title, right or power deemed necessary or
      desirable, subject to the other provisions of this Section. If the Corporation
      does not join in such appointment within 15 days after the receipt by it of
      a
      request so to do, or if an Event of Default shall have occurred and be
      continuing, the Debenture Trustee alone shall have power to make such
      appointment.

     

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

     

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

     

    (a)  the
      Securities shall be authenticated and delivered, and all rights, powers, duties
      and obligations hereunder in respect of the custody of securities, cash and
      other personal property held by, or required to be deposited or pledged with,
      the Debenture Trustee hereunder, shall be exercised solely, by the Debenture
      Trustee;

     

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

     

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

     

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

     

    (d)  no
      co-trustee or separate trustee hereunder shall be personally liable by reason
      of
      any act or omission of the Debenture Trustee, or any other such trustee
      hereunder; and

     

    (e)  any
      notice from the holders of Securities delivered to the Debenture Trustee shall
      be deemed to have been delivered to each such co-trustee and separate
      trustee.

     

    Section
      6.15  Authenticating
      Agents.

     

    There
      may
      be one or more Authenticating Agents appointed by the Debenture Trustee upon
      the
      request of the Corporation with power to act on its behalf and subject to its
      direction in the authentication and delivery of Securities issued upon exchange
      or transfer thereof as fully to all intents and purposes as though any such
      Authenticating Agent had been expressly authorized to authenticate and deliver
      Securities; provided,
      that
      the Debenture Trustee shall have no liability to the Corporation for any acts
      or
      omissions of the Authenticating Agent with respect to the authentication and
      delivery of Securities. Any such Authenticating Agent shall at all times be
      a
      corporation organized and doing business under the laws of the United States
      or
      of any state or territory thereof or of the District of Columbia authorized
      under such laws to act as Authenticating Agent, having a combined capital and
      surplus of at least $5,000,000 and being subject to supervision or examination
      by federal, state, territorial or District of Columbia authority. If such
      corporation publishes reports of condition at least annually pursuant to law
      or
      the requirements of such authority, then for the purposes of this Section 6.15
      the combined capital and surplus of such corporation shall be deemed to be
      its
      combined capital and surplus as set forth in its most recent report of condition
      so published. If at any time an Authenticating Agent shall cease to be eligible
      in accordance with the provisions of this Section, it shall resign immediately
      in the manner and with the effect herein specified in this Section.

     

    Any
      corporation into which any Authenticating Agent may be merged or converted
      or
      with which it may be consolidated, or any corporation resulting from any merger,
      consolidation or conversion to which any Authenticating Agent shall be a party,
      or any corporation succeeding to the corporate trust business of any
      Authenticating Agent, shall be the successor of such Authenticating Agent
      hereunder, if such successor corporation is otherwise eligible under this
      Section 6.15 without the execution or filing of any paper or any further act
      on
      the part of the parties hereto or such Authenticating Agent.

     

    Any
      Authenticating Agent may at any time resign by giving written notice of
      resignation to the Debenture Trustee and to the Corporation. The Debenture
      Trustee may at any time terminate the agency of any Authenticating Agent by
      giving written notice of termination 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 any Authenticating Agent shall cease to
      be
      eligible under this Section 6.15, the Debenture Trustee may, and upon the
      request of the Corporation shall, promptly appoint a successor Authenticating
      Agent eligible under this Section 6.15, shall give written notice of such
      appointment to the Corporation and the Corporation shall mail notice of such
      appointment to all Securityholders as the names and addresses of such holders
      appear on the Security Register. Any successor Authenticating Agent upon
      acceptance of its appointment hereunder shall become vested with all rights,
      powers, duties and responsibilities of its predecessor hereunder, with like
      effect as if originally named as Authenticating Agent herein.

     

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

     

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

     

    ARTICLE
      VII.

    CONCERNING
      THE SECURITYHOLDERS

     

    Section
      7.01  Action
      by Securityholders.

     

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

     

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

     

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    Section
      7.02  Proof
      of Execution by Securityholders.

     

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

     

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

     

    Section
      7.03  Who
      Are Deemed Absolute Owners.

     

    Prior
      to
      due presentment for registration of transfer of any Security, the Corporation,
      the Debenture Trustee, any Authenticating Agent, any paying agent, any transfer
      agent and any security registrar for the Securities may deem the person in
      whose
      name such Security shall be registered upon the Security Register to be, and
      may
      treat him as, the absolute owner of such Security (whether or not such Security
      shall be overdue) for the purpose of receiving payment of or on account of
      the
      principal of and (subject to Section 2.05) interest on such Security and for
      all
      other purposes; and neither the Corporation nor the Debenture Trustee nor any
      Authenticating Agent nor any paying agent nor any transfer agent nor any
      security registrar for the Securities shall be affected by any notice to the
      contrary. All such payments so made to any holder for the time being or upon
      his
      order shall be valid, and, to the extent of the sum or sums so paid, effectual
      to satisfy and discharge the liability for moneys payable upon any such
      Security.

     

    Section
      7.04  Securities
      Owned by Corporation Deemed Not Outstanding.

     

    In
      determining whether the holders of the requisite aggregate principal amount
      of
      Securities have concurred in any direction, consent or waiver under this
      Indenture, Securities which are owned by the Corporation or any other obligor
      on
      the Securities or by any Person directly or indirectly controlling or controlled
      by or under direct or indirect common control with the Corporation or any other
      obligor on the Securities shall be disregarded and deemed not to be outstanding
      for the purpose of any such determination; provided
      that for
      the purposes of determining whether the Debenture Trustee shall be protected
      in
      relying on any such direction, consent or waiver, only Securities which a
      Responsible Officer of the Debenture Trustee actually knows are so owned shall
      be so disregarded. Securities so owned which have been pledged in good faith
      may
      be regarded as outstanding for the purposes of this Section 7.04 if the pledgee
      shall establish to the satisfaction of the Debenture Trustee the pledgee’s right
      to vote such Securities and that the pledgee is not the Corporation or any
      such
      other obligor or Person directly or indirectly controlling or controlled by
      or
      under direct or indirect common control with the Corporation or any such other
      obligor. In the case of a dispute as to such right, any decision by the
      Debenture Trustee taken upon the advice of counsel shall be full protection
      to
      the Debenture Trustee.

     

     

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    Section
      7.05  Revocation
      of Consents; Future Holders Bound.

     

    At
      any
      time prior to (but not after) the evidencing to the Debenture Trustee, as
      provided in Section 7.01, of the taking of any action by the holders of the
      percentage in aggregate principal amount of the Securities specified in this
      Indenture in connection with such action, any holder of a Security (or any
      Security issued in whole or in part in exchange or substitution therefor),
      subject to Section 7.01, the serial number of which is shown by the evidence
      to
      be included in the group of Securities the holders of which have consented
      to
      such action may, by filing written notice with the Debenture Trustee at its
      principal office and upon proof of holding as provided in Section 7.02, revoke
      such action so far as concerns such Security (or so far as concerns the
      principal amount represented by any exchanged or substituted Security). Except
      as aforesaid any such action taken by the holder of any Security shall be
      conclusive and binding upon such holder and upon all future holders and owners
      of such Security, and of any Security issued in exchange or substitution
      therefor, irrespective of whether or not any notation in regard thereto is
      made
      upon such Security or any Security issued in exchange or substitution
      therefor.

     

    ARTICLE
      VIII.

    SECURITYHOLDERS’
      MEETINGS

     

    Section
      8.01  Purposes
      of Meetings.

     

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

     

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

     

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

     

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

     

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

     

    Section
      8.02  Call
      of Meetings by Debenture Trustee.

     

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

     

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

     

    Section
      8.03  Call
      of Meetings by Corporation or Securityholders.

     

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

     

    Section
      8.04  Qualifications
      for Voting.

     

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

     

    Section
      8.05  Regulations.

     

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

     

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

     

    Subject
      to the provisions of Section 8.04, at any meeting each holder of Securities
      or
      proxy therefor shall be entitled to one vote for each $100,000 principal amount
      of Securities held or represented by him; provided,
      however,
      that no
      vote shall be cast or counted at any meeting in respect of any Security
      challenged as not outstanding and ruled by the chairman of the meeting to be
      not
      outstanding. The chairman of the meeting shall have no right to vote other
      than
      by virtue of Securities held by him or instruments in writing as aforesaid
      duly
      designating him as the person to vote on behalf of other Securityholders. Any
      meeting of Securityholders duly called pursuant to the provisions of Section
      8.02 or 8.03 may be adjourned from time to time by a majority of those present,
      and the meeting may be held as so adjourned without further notice.

     

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

     

    Section
      8.06  Voting.

     

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

     

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

     

    ARTICLE
      IX.

    AMENDMENTS

     

    Section
      9.01  Without
      Consent of Securityholders.

     

    The
      Corporation, when authorized by a Board Resolution, and the Debenture Trustee
      may from time to time and at any time amend the Indenture, without the consent
      of the Securityholders, for one or more of the following purposes:

     

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

     

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

     

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

     

    (c)  to
      provide for the issuance under this Indenture of Securities in coupon form
      (including Securities registrable as to principal only) and to provide for
      exchangeability of such Securities with the Securities issued hereunder in
      fully
      registered form and to make all appropriate changes for such
      purpose;

     

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

     

    (e)  to
      evidence and provide for the acceptance of appointment hereunder by a successor
      trustee with respect to the Securities;

     

    (f)  to
      make
      provision for transfer procedures, certification, book-entry provisions and
      all
      other matters required pursuant to Section 2.07 or otherwise necessary,
      desirable or appropriate in connection with the issuance of Securities to
      holders of Capital Securities in the event of a distribution of Securities
      by
      the Trust following a Dissolution Event; provided that any such action shall
      not
      materially adversely affect the interests of the holders of the
      Securities;

     

    (g)  to
      qualify or maintain qualification of this Indenture under the Trust Indenture
      Act; or

     

    (h)  to
      make
      any change that does not adversely affect the rights of any Securityholder
      in
      any material respect.

     

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

     

    Any
      amendment to the Indenture authorized by the provisions of this Section 9.01
      may
      be executed by the Corporation and the Debenture Trustee without the consent
      of
      the holders of any of the Securities at the time outstanding, notwithstanding
      any of the provisions of Section 9.02.

     

     

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    Section
      9.02  With
      Consent of Securityholders.

     

    With
      the
      consent (evidenced as provided in Section 7.01) of the holders of a majority
      in
      aggregate principal amount of the Securities at the time outstanding, the
      Corporation, when authorized by a Board Resolution, and the Debenture Trustee
      may from time to time and at any time amend the Indenture 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 the Securities; provided,
      however,
      that no
      such amendment shall, without the consent of the holders of each Security then
      outstanding and affected thereby (i) change the Maturity Date of any Security,
      or reduce the rate or extend the time of payment of interest thereon (except
      as
      contemplated by Article XVI), or reduce the principal amount thereof, or reduce
      any amount payable on prepayment thereof, or make the principal thereof or
      any
      interest thereon payable in any coin or currency other than that provided in
      the
      Securities, or impair or affect the right of any Securityholder to institute
      suit for payment thereof, or (ii) reduce the aforesaid percentage of Securities,
      the holders of which are required to consent to any such amendment to the
      Indenture, provided,
      however,
      that if
      the Securities are held by the Trust, such amendment shall not be effective
      until the holders of a majority in liquidation amount of Trust Securities shall
      have consented to such amendment; provided,
      further, that if the consent of the holder of each outstanding Security is
      required, such amendment shall not be effective until each holder of the Trust
      Securities shall have consented to such amendment.

     

    Upon
      the
      request of the Corporation accompanied by a copy of a resolution of the Board
      of
      Directors certified by its Secretary or Assistant Secretary authorizing the
      execution of any supplemental indenture affecting such amendment, and upon
      the
      filing with the Debenture Trustee of evidence of the consent of Securityholders
      as aforesaid, the Debenture Trustee shall join with the Corporation in the
      execution of such supplemental indenture unless such supplemental indenture
      affects the Debenture Trustee’s own rights, duties or immunities under this
      Indenture or otherwise, in which case the Debenture Trustee may in its
      discretion, but shall not be obligated to, enter into such supplemental
      indenture.

     

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

     

    It
      shall
      not be necessary for the consent of the Securityholders under this Section
      9.02
      to approve the particular form of any proposed supplemental indenture, but
      it
      shall be sufficient if such consent shall approve the substance
      thereof.

     

    Section
      9.03  Intentionally
      Omitted.

     

    Section
      9.04  Notation
      on Securities.

     

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

     

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

     

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

     

    The
      Debenture Trustee, subject to the provisions of Sections 6.01 and 6.02, may
      receive an Officers’ Certificate and an Opinion of Counsel as conclusive
      evidence that any supplemental indenture executed pursuant hereto complies
      with
      the requirements of this Article IX.

     

    ARTICLE
      X.

    CONSOLIDATION,
      MERGER, SALE, CONVEYANCE AND LEASE

     

    Section
      10.01  Corporation
      May Consolidate, etc., on Certain Terms.

     

    Nothing
      contained in this Indenture or in any of the Securities shall prevent any
      consolidation or merger of the Corporation with or into any other Person
      (whether or not affiliated with the Corporation, as the case may be), or
      successive consolidations or mergers in which the Corporation or its successor
      or successors, as the case may be, shall be a party or parties, or shall prevent
      any sale, conveyance, transfer or lease of the property of the Corporation,
      or
      its successor or successors as the case may be, as an entirety, or substantially
      as an entirety, to any other Person (whether or not affiliated with the
      Corporation, or its successor or successors, as the case may be) authorized
      to
      acquire and operate the same; provided,
      that
      (a) the Corporation is the surviving Person, or the Person formed by or
      surviving any such consolidation or merger (if other than the Corporation)
      or to
      which such sale, conveyance, transfer or lease of property is made is a Person
      organized and existing under the laws of the United States or any State thereof
      or the District of Columbia, and (b) upon any such consolidation, merger, sale,
      conveyance, transfer or lease, the due and punctual payment of the principal
      of
      and interest on the Securities according to their tenor and the due and punctual
      performance and observance of all the covenants and conditions of this Indenture
      to be kept or performed by the Corporation shall be expressly assumed, by
      supplemental indenture satisfactory in form to the Debenture Trustee executed
      and delivered to the Debenture Trustee by the Person formed by such
      consolidation, or into which the Corporation shall have been merged, or by
      the
      Person which shall have acquired such property, as the case may be, and (c)
      after giving effect to such consolidation, merger, sale, conveyance, transfer
      or
      lease, no Default or Event of Default shall have occurred and be
      continuing.

     

    Section
      10.02  Successor
      Corporation to be Substituted for Corporation.

     

    In
      case
      of any such consolidation, merger, conveyance or transfer and upon the
      assumption by the successor corporation, by supplemental indenture, executed
      and
      delivered to the Debenture Trustee and satisfactory in form to the Debenture
      Trustee, of the obligation of due and punctual payment of the principal of
      (and
      premium, if any, on) and interest on all of the Securities and the due and
      punctual performance and observance of all of the covenants and conditions
      of
      this Indenture to be performed or observed by the Corporation, such successor
      Person shall succeed to and be substituted for the Corporation, with the same
      effect as if it had been named herein as the party of the first part, and the
      Corporation thereupon shall be relieved of any further liability or obligation
      hereunder or upon the Securities. Such successor Person thereupon may cause
      to
      be signed, and may issue either in its own name or in the name of Pennsylvania
      Commerce Bancorp, Inc., any or all of the Securities issuable hereunder which
      theretofore shall not have been signed by the Corporation and delivered to
      the
      Debenture Trustee or the Authenticating Agent; 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 Debenture Trustee
      or the Authenticating Agent shall authenticate and deliver any Securities which
      previously shall have been signed and delivered by the officers of the
      Corporation to the Debenture Trustee or the Authenticating Agent for
      authentication, and any Securities which such successor Person thereafter shall
      cause to be signed and delivered to the Debenture Trustee or the Authenticating
      Agent for that purpose. 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
      as though all of such Indentures had been issued at the date of the execution
      hereof.

     

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

     

    Section
      10.03  Opinion
      of Counsel to be Given Debenture Trustee.

     

    The
      Debenture Trustee, subject to the provisions of Sections 6.01 and 6.02, may
      receive an Opinion of Counsel as conclusive evidence that any consolidation,
      merger, sale, conveyance, transfer or lease, and any assumption, permitted
      or
      required by the terms of this Article X complies with the provisions of this
      Article X.

     

    ARTICLE
      XI.

    SATISFACTION
      AND DISCHARGE OF INDENTURE

     

    Section
      11.01  Discharge
      of Indenture.

     

    When
      (a)
      the Corporation shall deliver to the Debenture Trustee for cancellation all
      Securities theretofore authenticated (other than any Securities which shall
      have
      been destroyed, lost or stolen and which shall have been replaced as provided
      in
      Section 2.08) and not theretofore cancelled, or (b) all the Securities not
      theretofore cancelled or delivered to the Debenture Trustee for cancellation
      shall have become due and payable, or are by their terms to become due and
      payable within one year or are to be called for prepayment within one year
      under
      arrangements satisfactory to the Debenture Trustee for the giving of notice
      of
      prepayment, and the Corporation shall deposit with the Debenture Trustee, in
      trust, funds sufficient to pay on the Maturity Date or upon prepayment all
      of
      the Securities (other than any Securities which shall have been destroyed,
      lost
      or stolen and which shall have been replaced as provided in Section 2.08) not
      theretofore cancelled or delivered to the Debenture Trustee for cancellation,
      including principal and interest (including Compounded Interest and Additional
      Sums, if any) due or to become due to the Maturity Date or prepayment date,
      as
      the case may be, but excluding, however, the amount of any moneys for the
      payment of principal of or interest (including Compounded Interest and
      Additional Sums, if any) on the Securities (1) theretofore repaid to the
      Corporation in accordance with the provisions of Section 11.04, or (2) paid
      to
      any State or to the District of Columbia pursuant to its unclaimed property
      or
      similar laws, and if in either case the Corporation shall also pay or cause
      to
      be paid all other sums payable hereunder by the Corporation, then this Indenture
      shall cease to be of further effect except for the provisions of Sections 2.02,
      2.06, 2.07, 3.01, 3.02, 3.04, 6.06, 6.10 and 11.04 hereof, which shall survive
      until such Securities shall mature and be paid. Thereafter, Sections 6.06,
      6.10
      and 11.04 shall survive, and the Debenture Trustee, on demand of the Corporation
      accompanied by any Officers’ Certificate and an Opinion of Counsel and at the
      cost and expense of the Corporation, shall execute proper instruments
      acknowledging satisfaction of and discharging this Indenture; the [Missing
      Graphic Reference]Corporation,
      however, hereby agrees to reimburse the Debenture Trustee for any costs or
      expenses thereafter reasonably and properly incurred by the Debenture Trustee
      in
      connection with this Indenture or the Securities.

     

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

     

    Section
      11.02  Deposited
      Moneys and U.S. Government Obligations to be Held in Trust by Debenture
      Trustee.

     

    Subject
      to the provisions of Section 11.04, all moneys and U.S. Government Obligations
      deposited with the Debenture Trustee pursuant to Sections 11.01 or 11.05 shall
      be held in trust and applied by it to the payment, either directly or through
      any paying agent (including the Corporation if acting as its own paying agent),
      to the holders of the particular Securities for the payment of which such moneys
      or U.S. Government Obligations have been deposited with the Debenture Trustee,
      of all sums due and to become due thereon for principal, premium, if any, and
      interest.

     

    The
      Corporation shall pay and indemnify the Debenture Trustee against any tax,
      fee
      or other charge imposed on or assessed against the U.S. Government Obligations
      deposited pursuant to Section 11.05 or the principal and interest received
      in
      respect thereof other than any such tax, fee or other charge which by law is
      for
      the account of the holders of outstanding Securities.

     

    Section
      11.03  Paying
      Agent to Repay Moneys Held.

     

    Upon
      the
      satisfaction and discharge of this Indenture all moneys then held by any paying
      agent of the Securities (other than the Debenture Trustee) shall, upon written
      demand of the Corporation, be repaid to it or paid to the Debenture Trustee,
      and
      thereupon such paying agent shall be released from all further liability with
      respect to such moneys.

     

    Section
      11.04  Return
      of Unclaimed Moneys.

     

    Any
      moneys deposited with or paid to the Debenture Trustee or any paying agent
      for
      payment of the principal of or interest on Securities and not applied but
      remaining unclaimed by the holders of Securities for two years after the date
      upon which the principal of or interest (including Compounded Interest and
      Additional Sums, if any) on such Securities, as the case may be, shall have
      become due and payable, shall be repaid to the Corporation by the Debenture
      Trustee or such paying agent on written demand; and the holder of any of the
      Securities shall thereafter look only to the Corporation for any payment which
      such holder may be entitled to collect and all liability of the Debenture
      Trustee or such paying agent with respect to such moneys shall thereupon
      cease.

     

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    Section
      11.05  Section
      11.05 Defeasance
      Upon Deposit of Moneys or U.S. Government Obligations.

     

    The
      Corporation shall be deemed to have been Discharged (as defined below) from
      its
      obligations with respect to the Securities on the 91st day after the applicable
      conditions set forth below have been satisfied:

     

    (1)  the
      Corporation shall have deposited or caused to be deposited irrevocably with
      the
      Debenture Trustee or the Defeasance Agent (as defined below) as trust funds
      in
      trust, specifically pledged as security for, and dedicated solely to, the
      benefit of the holders of the Securities (i) money in an amount, or (ii) U.S.
      Government Obligations which through the payment of interest and principal
      in
      respect thereof in accordance with their terms will provide, not later than
      one
      day before the due date of any payment, money in an amount, or (iii) a
      combination of (i) and (ii), sufficient, in the opinion (with respect to (ii)
      and (iii)) of a nationally recognized firm of independent public accountants
      expressed in a written certification thereof delivered to the Debenture Trustee
      and the Defeasance Agent, if any, to pay and discharge each installment of
      principal of and interest and premium, if any, on the outstanding Securities
      on
      the dates such installments of principal, interest or premium are
      due;

     

    (2)  no
      Default or Event of Default with respect to the Securities shall have occurred
      and be continuing on the date of such deposit; and

     

    (3)  the
      Corporation shall have delivered to the Debenture Trustee and the Defeasance
      Agent, if any, an Opinion of Counsel to the effect that holders of the
      Securities will not recognize income, gain or loss for United States federal
      income tax purposes as a result of the exercise of the option under this Section
      11.05 and will be subject to United States federal income tax on the same amount
      and in the same manner and at the same times as would have been the case if
      such
      option had not been exercised.

     

    “Discharged”
      means that the Corporation shall be deemed to have paid and discharged the
      entire indebtedness represented by, and obligations under, the Securities and
      to
      have satisfied all the obligations under this Indenture relating to the
      Securities (and the Debenture Trustee, at the expense of the Corporation, shall
      execute proper instruments acknowledging the same), except (A) the rights of
      holders of Securities to receive, from the trust fund described in clause (1)
      above, payment of the principal of and the interest and premium, if any, on
      the
      Securities when such payments are due; (B) the Corporation’s obligations with
      respect to the Securities under Sections 2.06, 2.07, 5.02 and 11.04; and (C)
      the
      rights, powers, trusts, duties and immunities of the Debenture Trustee
      hereunder.

     

    “Defeasance
      Agent” means another financial institution which is eligible to act as Debenture
      Trustee hereunder and which assumes all of the obligations of the Debenture
      Trustee necessary to enable the Debenture Trustee to act hereunder. In the
      event
      such a Defeasance Agent is appointed pursuant to this Section, the following
      conditions shall apply:

     

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

     

    (1)  The
      Debenture Trustee shall have approval rights over the document appointing such
      Defeasance Agent and the document setting forth such Defeasance Agent’s rights
      and responsibilities;

     

    (2)  The
      Defeasance Agent shall provide verification to the Debenture Trustee
      acknowledging receipt of sufficient money and/or U. S. Government Obligations
      to
      meet the applicable conditions set forth in this Section 11.05.

     

    ARTICLE
      XII.

    IMMUNITY
      OF INCORPORATORS, STOCKHOLDERS,

    OFFICERS
      AND DIRECTORS

     

    Section
      12.01  Indenture
      and Securities Solely Corporate Obligations.

     

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

     

    ARTICLE
      XIII.

    MISCELLANEOUS
      PROVISIONS

     

    Section
      13.01  Successors.

     

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

     

    Section
      13.02  Official
      Acts by Successor Corporation.

     

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

     

    Section
      13.03  Surrender
      of Corporation Powers.

     

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

     

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

     

    Section
      13.04  Addresses
      for Notices. etc.

     

    Any
      notice or demand which by any provision of this Indenture is required or
      permitted to be given or served by the Debenture Trustee or by the holders
      of
      Securities on the Corporation may be given or served by being deposited postage
      prepaid by first class mail, registered or certified mail, overnight courier
      service or conformed telecopy addressed (until another address is filed by
      the
      Corporation with the Debenture Trustee for the purpose) to the Corporation
      at
      Commerce Bank/Harrisburg, N.A., 100 Senate Avenue, Camp Hill, PA 17011,
      Attention: Mark Zody. Any notice, direction, request or demand by any
      Securityholder to or upon the Debenture Trustee shall be deemed to have been
      sufficiently given or made, for all purposes, if given or made in writing at
      the
      office of the Debenture Trustee, 1100 North Market Street, Rodney Square North,
      Wilmington, Delaware 19890, Attention: Corporate Trust Administration (unless
      another address is provided by the Debenture Trustee to the Corporation for
      such
      purpose). Any notice or communication to a Securityholder shall be mailed by
      first class mail to his or her address shown on the register kept by the
      security registrar for the Securities.

     

    Section
      13.05  Governing
      Law; Submission to Jurisdiction; Appointment of Agent for Service of
      Process

     

    This
      Indenture shall be governed by and construed in accordance with the laws of
      the
      State of Delaware, without regard to principles of conflict of laws. The parties
      hereto hereby declare that it is their intention that this Indenture shall
      be
      regarded as made under the laws of the State of Delaware and that the laws
      of
      said State shall be applied in interpreting its provisions in all cases where
      legal interpretation shall be required. Each of the parties hereto agrees (a)
      that this Indenture involves at least $100,000.00, and (b) that this Indenture
      has been entered into by the parties hereto in express reliance upon 6
Del.
      C.§
2708.
      Each of the parties hereto hereby irrevocably and unconditionally agrees (a)
      to
      be subject to the jurisdiction of the courts of the State of Delaware and of
      the
      federal courts sitting in the State of Delaware, and (b) (1) to the extent
      such
      party is not otherwise subject to service of process in the State of Delaware,
      to appoint and maintain an agent in the State of Delaware as such party's agent
      for acceptance of legal process, and (2) that, to the fullest extent permitted
      by applicable law, service of process may also be made on such party by prepaid
      certified mail with a proof of mailing receipt validated by the United States
      Postal Service constituting evidence of valid service, and that service made
      pursuant to (b) (1) or (2) above shall, to the fullest extent permitted by
      applicable law, have the same legal force and effect as if served upon such
      party personally within the State of Delaware. 

     

    Section
      13.06  Evidence
      of Compliance with Conditions Precedent.

     

    Upon
      any
      application or demand by the Corporation to the Debenture Trustee to take any
      action under any of the provisions of this Indenture, the Corporation shall
      furnish to the Debenture Trustee an Officers’ Certificate stating that in the
      opinion of the signers all conditions precedent, if any, provided for in this
      Indenture relating to the proposed action have been complied with and an Opinion
      of Counsel stating that, in the opinion of such counsel, all such conditions
      precedent have been complied with.

     

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

     

    Each
      certificate or opinion provided for in this Indenture and delivered to the
      Debenture Trustee with respect to compliance with a condition or covenant
      provided for in this Indenture (except certificates delivered pursuant to
      Section 3.05) shall include (1) a statement that the Person making such
      certificate or opinion has read such covenant or condition; (2) a brief
      statement as to the nature and scope of the examination or investigation upon
      which the statements or opinions contained in such certificate or opinion are
      based; (3) a statement that, in the opinion of such Person, he has made such
      examination or investigation as is necessary to enable him 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 or not, in the opinion of
      such
      person, such condition or covenant has been complied with.

     

    Section
      13.07  Business
      Days.

     

    In
      any
      case where the date of payment of principal of or interest on the Securities
      will not be a Business Day, the payment of such principal of or interest on
      the
      Securities need not be made on such date but may be made on the next succeeding
      Business Day, with the same force and effect as if made on the date of payment
      and no interest shall accrue for the period from and after such date, except
      that if such next succeeding Business Day falls in the next succeeding calendar
      year, then such payment shall be made on the immediately preceding Business
      Day,
      in each case with the same force and effect as if made on such
      date.

     

    Section
      13.08  Intentionally
      Omitted.

     

     

     

    Section
      13.09  Table
      of Contents, Headings etc.

     

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

     

    Section
      13.10  Execution
      in Counterparts.

     

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

     

    Section
      13.11  Separability.

     

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

     

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

     

    Section
      13.12  Assignment.

     

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

     

    Section
      13.13  Acknowledgment
      of Rights.

     

    The
      Corporation acknowledges that, with respect to any Securities held by Commerce
      Harrisburg Capital Trust III or
      a
      trustee of such trust, if the Property Trustee of such Trust fails to enforce
      its rights under this Indenture as the holder of the Securities held as the
      assets of Commerce Harrisburg Capital Trust III, any holder of Capital
      Securities may institute legal proceedings directly against the Corporation
      to
      enforce such Property Trustee ‘s rights under this Indenture without first
      instituting any legal proceedings against such Property Trustee or any other
      person or entity. Notwithstanding the foregoing, if an Event of Default has
      occurred and is continuing and such event is attributable to the failure of
      the
      Corporation to pay principal of or interest on the Securities when due, the
      Corporation acknowledges that a holder of Capital Securities may directly
      institute a proceeding for enforcement of payment to such holder of the
      principal of or interest on the Securities having a principal amount equal
      to
      the aggregate liquidation amount of the Capital Securities of such holder on
      or
      after the respective due date specified in the Securities.

     

    ARTICLE
      XIV.

    PREPAYMENT
      OF SECURITIES -- MANDATORY AND

    OPTIONAL
      SINKING FUND

     

    Section
      14.01  Special
      Event Prepayment. 

     

    If,
      prior
      to the Initial Optional Prepayment Date, a Special Event has occurred and is
      continuing, then notwithstanding Section 14.02(a) but subject to Section
      14.02(c), the Corporation shall have the right, at any time within 90 days
      following the occurrence of such Special Event, upon (i) not less than 45 days
      written notice to the Debenture Trustee and (ii) not less than 30 days nor
      more
      than 60 days written notice to the Securityholders, to prepay the Securities,
      in
      whole (but not in part), at the Prepayment Price. The Prepayment Price shall
      be
      paid prior to 12:00 noon, New York, New York time, on the date of such
      prepayment or such earlier time as the Corporation determines, provided
      that the
      Corporation shall deposit with the Debenture Trustee an amount sufficient to
      pay
      the Prepayment Price by 10:00 a.m., New York time, on the date such Prepayment
      Price is to be paid.

     

    Section
      14.02  Optional
      Prepayment by Corporation.

     

    (a)  Subject
      to the provisions of this Article XIV, the Corporation shall have the right
      to
      prepay the Securities, in whole or in part, at any time on or after the Initial
      Optional Prepayment Date, upon not less than 30 days and not more than 60 days’
notice, at the Prepayment Price.

     

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

     

    If
      the
      Securities are only partially prepaid pursuant to this Section 14.02, the
      Securities to be prepaid shall be selected on a pro rata basis not more than
      60
      days prior to the date fixed for prepayment from the outstanding Securities
      not
      previously called for prepayment, provided,
      however,
      that
      with respect to Securityholders that would be required to hold Securities with
      an aggregate principal amount of less than $100,000 but more than an aggregate
      principal amount of zero as a result of such pro rata prepayment, the
      Corporation shall prepay Securities of each such Securityholder so that after
      such prepayment such Securityholder shall hold Securities either with an
      aggregate principal amount of at least $100,000 or such Securityholder no longer
      holds any Securities, and shall use such method (including, without limitation,
      by lot) as the Corporation shall deem fair and appropriate, provided,
      further,
      that
      any such proration may be made on the basis of the aggregate principal amount
      of
      Securities held by each Securityholder and may be made by making such
      adjustments as the Corporation deems fair and appropriate in order that only
      Securities in denominations of $100,000 or integral multiples thereof shall
      be
      prepaid. The Prepayment Price shall be paid prior to 12:00 noon, New York time,
      on the date of such prepayment or at such earlier time as the Corporation
      determines, provided
      that the
      Corporation shall deposit with the Debenture Trustee an amount sufficient to
      pay
      the Prepayment Price by 10:00 a.m., New York time, on the date such Prepayment
      Price is to be paid.

     

    (b)  Notwithstanding
      the first sentence of Section 14.02(a), upon the entry of an order for
      dissolution of the Trust by a court of competent jurisdiction, the Securities
      thereafter will be subject to optional prepayment, in whole or in part, on
      or
      after September 29, 2011 at the optional prepayment price set forth in Section
      14.02 and otherwise in accordance with this Article XIV.

     

    (c)  Any
      prepayment of Securities pursuant to Section 14.01 or Section 14.02 shall be
      subject to the Corporation obtaining the prior approval of the Federal Reserve,
      if such approval is then required under applicable capital guidelines or
      policies of the Federal Reserve, and any other required regulatory
      approvals.

     

    Section
      14.03  No
      Sinking Fund.

     

    The
      Securities are not entitled to the benefit of any sinking fund.

     

    Section
      14.04  Notice
      of Prepayment; Selection of Securities.

     

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

     

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

     

    Each
      such
      notice of prepayment shall specify the CUSIP number of the Securities to be
      prepaid, the date fixed for prepayment, the prepayment price at which the
      Securities are to be prepaid (or the method by which such prepayment price
      is to
      be calculated), the place or places of payment that payment will be made upon
      presentation and surrender of the Securities, that interest accrued to the
      date
      fixed for prepayment will be paid as specified in said notice, and that on
      and
      after said date interest thereon or on the portions thereof to be prepaid will
      cease to accrue. If less than all the Securities are to be prepaid, the notice
      of prepayment shall specify the numbers of the Securities to be prepaid. In
      case
      any Security is to be prepaid in part only, the notice of prepayment shall
      state
      the portion of the principal amount thereof to be prepaid and shall state that
      on and after the date fixed for prepayment, upon surrender of such Security,
      a
      new Security or Securities in principal amount equal to the portion thereof
      that
      has not been prepaid will be issued.

     

    By
      10:00
      A.M. New York time on the prepayment date specified in the notice of prepayment
      given as provided in this Section, the Corporation will deposit with the
      Debenture Trustee or with one or more paying agents an amount of money
      sufficient to prepay on the prepayment date all the Securities so called for
      prepayment at the appropriate Prepayment Price, together with accrued interest
      to the date fixed for prepayment.

     

    The
      Corporation will give the Debenture Trustee notice not less than 45 days prior
      to the prepayment date as to the aggregate principal amount of Securities to
      be
      prepaid and the Debenture Trustee shall select, in such manner as in its sole
      discretion it shall deem appropriate and fair, the Securities or portions
      thereof (in integral multiples of $100, except as otherwise set forth in the
      applicable form of Security) to be prepaid.

     

    Section
      14.05  Payment
      of Securities Called for Prepayment.

     

    If
      notice
      of prepayment has been given as provided in Section 14.04, the Securities or
      portions 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 Prepayment Price, together with interest accrued to the date
      fixed
      for prepayment (subject to the rights of holders of Securities at the close
      of
      business on a regular record date in respect of an Interest Payment Date
      occurring on or prior to the prepayment date), and on and after said date
      (unless the Corporation shall default in the payment of such Securities at
      the
      Prepayment Price, together with interest accrued to said date) interest
      (including Compounded Interest and Additional Sums, if any) on the Securities
      or
      portions of Securities so called for prepayment shall cease to accrue. On
      presentation and surrender of such Securities at a place of payment specified
      in
      said notice, the said Securities or the specified portions thereof shall be
      paid
      and prepaid by the Corporation at the Prepayment Price, together with interest
      (including Compounded Interest and Additional Sums, if any) accrued thereon
      to
      the date fixed for prepayment (subject to the rights of holders of Securities
      on
      the close of business on a regular record date in respect of an Interest Payment
      Date occurring on or prior to the prepayment date).

     

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

     

    Upon
      presentation of any Security prepaid in part only, the Corporation shall execute
      and the Debenture Trustee shall authenticate and make available for delivery
      to
      the holder thereof, at the expense of the Corporation, a new Security or
      Securities of authorized denominations, in principal amount equal to the portion
      of the Security so presented that has not been prepaid.

     

    ARTICLE
      XV.

    SUBORDINATION
      OF SECURITIES

     

    Section
      15.01  Agreement
      to Subordinate.

     

    The
      Corporation covenants and agrees, and each holder of Securities issued hereunder
      likewise covenants and agrees, that the Securities shall be issued subject
      to
      the provisions of this Article XV; and each holder of a Security, whether upon
      original issue or upon transfer or assignment thereof, accepts and agrees to
      be
      bound by such provisions.

     

    The
      payment by the Corporation of the principal of and interest (including
      Compounded Interest and Additional Sums, if any) on all Securities issued
      hereunder shall, to the extent and in the manner hereinafter set forth, be
      subordinated and junior in right of payment to all Senior Indebtedness, whether
      outstanding at the date of this Indenture or thereafter incurred.

     

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

     

    Section
      15.02  Default
      on Senior Indebtedness.

     

    In
      the
      event and during the continuation of any default by the Corporation in the
      payment of principal, interest or any other payment due on any Senior
      Indebtedness, or in the event that the maturity of any Senior Indebtedness
      has
      been accelerated because of a default, then, in either case, no payment shall
      be
      made by the Corporation with respect to the principal (including prepayment
      payments) of or interest on the Securities (including Compounded Interest and
      Additional Sums (if any) or any other amounts which may be due on the Securities
      pursuant to the terms hereof or otherwise).

     

    In
      the
      event of the acceleration of the maturity of the Securities, then no payment
      shall be made by the Corporation with respect to the principal (including
      prepayment payments) of interest on the Securities (including Compounded
      Interest and Additional Sums (if any) or any other amounts which may be due
      on
      the Securities pursuant to the terms hereof or otherwise) until the holders
      of
      all Senior Indebtedness outstanding at the time of such acceleration shall
      receive payment in full of such Senior Indebtedness (including any amounts
      due
      upon acceleration).

     

    In
      the
      event that, notwithstanding the foregoing, any payment shall be received by
      the
      Debenture Trustee when such payment is prohibited by the preceding paragraphs
      of
      this Section 15.02, such payment shall be held in trust for the benefit of,
      and
      shall be paid over or delivered to, the holders of Senior Indebtedness or their
      respective representatives, or to the trustee or trustees under any indenture
      pursuant to which any of such Senior Indebtedness may have been issued, as
      their
      respective interests may appear, but only to the extent that the holders of
      the
      Senior Indebtedness (or their representative or representatives or a trustee)
      notify the Debenture Trustee in writing within 90 days of such payment of the
      amounts then due and owing on such Senior Indebtedness, and only the amounts
      specified in such notice to the Debenture Trustee shall be paid to the holders
      of such Senior Indebtedness.

     

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

     

    Section
      15.03  Liquidation;
      Dissolution; Bankruptcy.

     

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

     

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

     

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

     

    For
      purposes of this Article XV, the words “cash, property or securities” shall not
      be deemed to include shares of stock of the Corporation as reorganized or
      readjusted, or securities of the Corporation or any other corporation provided
      for by a plan of reorganization or readjustment, the payment of which is
      subordinated at least to the extent provided in this Article XV with respect
      to
      the Securities to the payment of Senior Indebtedness that may at the time be
      outstanding, provided
      that (i)
      such Senior Indebtedness is assumed by the new corporation, if any, resulting
      from any such reorganization or readjustment, and (ii) the rights of the holders
      of such Senior Indebtedness are not, without the consent of such holders,
      altered by such reorganization or readjustment. The consolidation of the
      Corporation with, or the merger of the Corporation into, another Person or
      the
      liquidation or dissolution of the Corporation following the sale, conveyance,
      transfer or lease of its property as an entirety, or substantially as an
      entirety, to another Person upon the terms and conditions provided for in
      Article X of this Indenture shall not be deemed a dissolution, winding-up,
      liquidation or reorganization for the purposes of this Section 15.03 if such
      other Person shall, as a part of such consolidation, merger, sale, conveyance,
      transfer or lease, comply with the conditions stated in Article X of this
      Indenture. Nothing in Section 15.02 or in this Section 15.03 shall apply to
      claims of, or payments to, the Debenture Trustee under or pursuant to Section
      6.06 of this Indenture.

     

    Section
      15.04  Subrogation.

     

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

     

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

     

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

     

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

     

    Section
      15.05  Debenture
      Trustee to Effectuate Subordination.

     

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

     

    Section
      15.06  Notice
      by the Corporation.

     

    The
      Corporation shall give prompt written notice to a Responsible Officer of the
      Debenture Trustee of any fact known to the Corporation that would prohibit
      the
      making of any payment of monies to or by the Debenture Trustee in respect of
      the
      Securities pursuant to the provisions of this Article XV. Notwithstanding the
      provisions of this Article XV or any other provision of this Indenture, the
      Debenture Trustee shall not be charged with knowledge of the existence of any
      facts that would prohibit the making of any payment of monies to or by the
      Debenture Trustee in respect of the Securities pursuant to the provisions of
      this Article XV, unless and until a Responsible Officer of the Debenture Trustee
      shall have received written notice thereof from the Corporation or a holder
      or
      holders of Senior Indebtedness or from any trustee therefor; and before the
      receipt of any such written notice, the Debenture Trustee, subject to the
      provisions of Article VI of this Indenture, shall be entitled in all respects
      to
      assume that no such facts exist; provided,
      however,
      that if
      the Debenture Trustee shall not have received the notice provided for in this
      Section 15.06 at least three Business Days prior to the date upon which by
      the
      terms hereof any money may become payable for any purpose (including, without
      limitation, the payment of the principal of or interest (including Compounded
      Interest and Additional Sums, if any) on any Security), then, anything herein
      contained to the contrary notwithstanding, the Debenture Trustee shall have
      full
      power and authority to receive such money and to apply the same to the purposes
      for which they were received, and shall not be affected by any notice to the
      contrary that may be received by it within three Business Days prior to such
      date.

     

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

     

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

     

    Upon
      any
      payment or distribution of assets of the Corporation referred to in this Article
      XV, the Debenture Trustee and the Securityholders shall be entitled to rely
      upon
      any order or decree entered by any court of competent jurisdiction in which
      such
      insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution,
      winding-up or similar case or proceeding is pending, or a certificate of the
      trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for
      the benefit of creditors, agent or other person making such payment or
      distribution, delivered to the Debenture Trustee or to the Securityholders,
      for
      the purpose of ascertaining the persons entitled to participate in such payment
      or distribution, the holders of Senior Indebtedness and other indebtedness
      of
      the Corporation, the amount therefor payable thereon, the amount or amounts
      paid
      or distributed thereon and all other facts pertinent thereto or to this Article
      XV.

     

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

     

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

     

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

     

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

     

    Section
      15.08  Subordination
      May Not Be Impaired.

     

    No
      right
      of any present or future holder of any Senior Indebtedness of the Corporation
      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, as the case may be, or by any act or failure to act, in good faith,
      by any such holder, or by any noncompliance by the Corporation, as the case
      may
      be, with the terms, provisions and covenants of this Indenture, regardless
      of
      any knowledge thereof that any such holder may have or otherwise be charged
      with.

     

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

     

    Without
      in any way limiting the generality of the foregoing paragraph, the holders
      of
      Senior Indebtedness of the Corporation may, at any time and from time to time,
      without the consent of or notice to the Debenture Trustee or the
      Securityholders, without incurring responsibility to the Securityholders and
      without impairing or releasing the subordination provided in this Article XV
      or
      the obligations hereunder of the holders of the Securities to the holders of
      such 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, such Senior Indebtedness, or otherwise amend or supplement in any manner
      such Senior Indebtedness or any instrument evidencing the same or any agreement
      under which such Senior Indebtedness is outstanding; (ii) sell, exchange,
      release or otherwise deal with any property pledged, mortgaged or otherwise
      securing such Senior Indebtedness; (iii) release any Person liable in any manner
      for the collection of such Senior Indebtedness; and (iv) exercise or refrain
      from exercising any rights against the Corporation, as the case may be, and
      any
      other Person.

     

    ARTICLE
      XVI.

    EXTENSION
      OF INTEREST PAYMENT PERIOD

     

    Section
      16.01  Extension
      of Interest Payment Period.

     

    So
      long
      as no Event of Default has occurred and is continuing, the Corporation shall
      have the right, at any time and from time to time during the term of the
      Securities, to defer payments of interest by extending the interest payment
      period of such Securities for a period not exceeding 20 consecutive quarterly
      periods, including the first such quarterly period during such extension period
      (the “Extended Interest Payment Period”), during which Extended Interest Payment
      Period no interest shall be due and payable; provided that
      no
      Extended Interest Payment Period shall end on a date other than an Interest
      Payment Date or extend beyond the Maturity Date. To the extent permitted by
      applicable law, interest, the payment of which has been deferred because of
      the
      extension of the interest payment period pursuant to this Section 16.01, will
      bear interest thereon at the Coupon Rate compounded quarterly for each quarterly
      period of the Extended Interest Payment Period (“Compounded Interest”). At the
      end of the Extended Interest Payment Period, the Corporation shall pay all
      interest accrued and unpaid on the Securities, including any Additional Sums
      and
      Compounded Interest (together, “Deferred Interest”) that shall be payable to the
      holders of the Securities in whose names the Securities are registered in the
      Security Register on the first record date preceding the end of the Extended
      Interest Payment Period. Before the termination of any Extended Interest Payment
      Period, the Corporation may further defer payments of interest by further
      extending such period, provided
      that
      such period, together with all such previous and further extensions within
      such
      Extended Interest Payment Period, shall not exceed 20 consecutive quarterly
      periods, including the first such quarterly period during such Extended Interest
      Payment Period, end on a date other than an Interest Payment Date or extend
      beyond the Maturity Date of the Securities. Upon the termination of any Extended
      Interest Payment Period and the payment of all Deferred Interest then due,
      the
      Corporation may commence a new Extended Interest Payment Period, subject to
      the
      foregoing requirements. No interest shall be due and payable during an Extended
      Interest Payment Period, except at the end thereof, but the Corporation may
      prepay at any time all or any portion of the interest accrued during an Extended
      Interest Payment Period.

     

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

     

     

    Section
      16.02  Notice
      of Extension.

     

    (a)  If
      the
      Property Trustee is the only registered holder of the Securities at the time
      the
      Corporation selects an Extended Interest Payment Period, the Corporation shall
      give written notice to the Administrative Trustees, the Property Trustee and
      the
      Debenture Trustee of its selection of such Extended Interest Payment Period
      five
      Business Days before the earlier of (i) the next succeeding date on which
      Distributions on the Trust Securities issued by the Trust are payable, or (ii)
      the date the Trust is required to give notice of the record date, or the date
      such Distributions are payable, to any national securities exchange or to
      holders of the Capital Securities issued by the Trust, but in any event at
      least
      five Business Days before such record date.

     

    (b)  If
      the
      Property Trustee is not the only holder of the Securities at the time the
      Corporation selects an Extended Interest Payment Period, the Corporation shall
      give the holders of the Securities and the Debenture Trustee written notice
      of
      its selection of such Extended Interest Payment Period at least 10 Business
      Days
      before the earlier of (i) the next succeeding Interest Payment Date, or (ii)
      the
      date the Corporation is required to give notice of the record or payment date
      of
      such interest payment to any national securities exchange.

     

    (c)  The
      quarterly period in which any notice is given pursuant to paragraphs (a) or
      (b)
      of this Section 16.02 shall be counted as one of the 20 quarterly periods
      permitted in the maximum Extended Interest Payment Period permitted under
      Section 16.01.

     

    Wilmington
      Trust Company hereby accepts the trusts in this Indenture declared and provided,
      upon the terms and conditions hereinabove set forth.

     

    

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

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

     

    

    Pennsylvania
      Commerce Bancorp, Inc.

    

    By: ____________________________

    Name:

     

    Title:

     

    

     

    Wilmington
      Trust Company, 

     

    as
      Debenture Trustee

     

    

    By: ____________________________

    Name:

     

    Title:

     

    

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    
EXHIBIT
      A

     

    (FORM
      OF
      FACE OF SECURITY)

    

    

    THIS
      SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “SECURITIES
      ACT”)
      OR ANY
STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS
      SECURITY NOR ANY INTEREST OR PARTICIPATION IN THIS SECURITY MAY BE REOFFERED,
      SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
      THE
      ABSENCE OF REGISTRATION OR UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
      TO, REGISTRATION.

    

    BY
      ACCEPTING THIS SECURITY THE HOLDER AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
      THIS SECURITY, PRIOR TO THE DATE (THE “RESALE
      RESTRICTION TERMINATION DATE”)
      WHICH
      IS TWO YEARS AFTER THE ORIGINAL ISSUANCE DATE ONLY (A) TO PENNSYLVANIA COMMERCE
      BANCORP, INC. (“THE COMPANY”), (B) PURSUANT TO A REGISTRATION STATEMENT WHICH
      HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) IF AND SO LONG AS
      THIS
      SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
      ACT
      (“RULE
      144A”),
      TO A
      PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
      INSTITUTIONAL BUYER”
      (AS
      DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
      OF A
      QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
      BEING
      MADE IN RELIANCE ON RULE 144A, (D) TO AN INSTITUTIONAL “ACCREDITED
      INVESTOR”
      WITHIN
      THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE
      SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR
      THE
      ACCOUNT OF AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND
      NOT
      WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
      VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANY OTHER AVAILABLE
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT, SUBJECT
      TO THE RIGHT OF THE COMPANY PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (I)
      PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
      CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY, AND (II)
      PURSUANT TO CLAUSE (D), TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM
      APPEARING ON THE REVERSE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
      TRANSFEREE TO THE COMPANY. THE HOLDER OF THIS SECURITY FURTHER AGREES THAT
      IT
      WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE
      SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

    

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

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    Principal
      Amount:                      

    No.               

    Pennsylvania
      Commerce Bancorp, Inc.

    

    7.75%
      JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE 

    DUE
      SEPTEMBER 29, 2036

     

    

    Pennsylvania
      Commerce Bancorp, Inc., a Pennsylvania corporation (the “Corporation”, which
      term includes any successor Person under the Indenture hereinafter referred
      to),
      for value received, hereby promises to pay to Wilmington Trust Company as
      Property Trustee for Commerce Harrisburg Capital Trust III or registered
      assigns, the principal sum of $15,800,000 (Fifteen Million Eight Hundred
      Thousand Dollars) on September 29, 2036 (the “Maturity Date”), unless previously
      prepaid, and to pay interest on the outstanding principal amount hereof from
      September 29, 2006, or from the most recent interest payment date (each such
      date, an “Interest Payment Date”) to which interest has been paid or duly
      provided for, quarterly (subject to deferral as set forth herein) in arrears
      on
      the last day of March, June, September and December of each year, commencing
      December 31, 2006, at the rate of 7.75% per annum until the principal hereof
      shall have become due and payable, and on any overdue principal and (without
      duplication and to the extent that payment of such interest is enforceable
      under
      applicable law) on any overdue installment of interest at the same rate per
      annum compounded quarterly. The amount of interest payable on any Interest
      Payment Date shall be computed on the basis of a 360-day year of twelve 30-day
      months and, for any period less than a full calendar month, the number of days
      elapsed in such month. In the event that any date on which the principal of
      or
      interest on this Security is payable is not a Business Day, then the payment
      payable on such date will be made on the next succeeding day that is a Business
      Day (and without any interest or other payment in respect of any such delay),
      except that if such next succeeding Business Day falls in the next calendar
      year, then such payment shall be made on the immediately preceding Business
      Day,
      in each case with the same force and effect as if made on such date. Pursuant
      to
      the Indenture, in certain circumstances the Corporation will be required to
      pay
      Additional Sums and Compounded Interest (each as defined in the Indenture)
      with
      respect to this Security. 

     

    The
      interest installment so payable, and punctually paid or duly provided for,
      on
      any Interest Payment Date will, as provided in the Indenture, be paid to the
      Person in whose name this Security (or one or more Predecessor Securities,
      as
      defined in said Indenture) is registered at the close of business on the regular
      record date for such interest installment, which shall be at the close of
      business on the last day of the month preceding the month in which the relevant
      interest payment date falls. Any such interest installment not punctually paid
      or duly provided for shall forthwith cease to be payable to the holders on
      such
      regular record date and may be paid to the Person in whose name this Security
      (or one or more Predecessor Securities) is registered at the close of business
      on a special record date to be fixed by the Debenture Trustee for the payment
      of
      such defaulted interest, notice whereof shall be given to the holders of
      Securities not less than 10 days prior to such special record date, or may
      be
      paid at any time in any other lawful manner not inconsistent with the
      requirements of any securities exchange on which the Securities may be listed,
      and upon such notice as may be required by such exchange, all as more fully
      provided in the Indenture.

     

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

     

    The
      principal of and interest (including Compounded Interest and Additional Sums,
      if
      any) on this Security shall be payable at the office or agency of the Debenture
      Trustee maintained for that purpose in any coin or currency of the United States
      of America that at the time of payment is legal tender for payment of public
      and
      private debts; provided,
      however,
      that,
      payment of interest may be made at the option of the Corporation by (i) check
      mailed to the holder at such address as shall appear in the Security Register
      or
      (ii) by transfer to an account maintained by the Person entitled thereto,
      provided that proper written transfer instructions have been received by the
      relevant record date. Notwithstanding the foregoing, so long as the Holder
      of
      this Security is the Property Trustee, the payment of the principal of and
      interest (including Compounded Interest and Additional Sums, if any) on this
      Security will be made at such place and to such account as may be designated
      by
      the Property Trustee.

     

    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 Debenture Trustee on his or her behalf to take such
      action as may be necessary or appropriate to acknowledge or effectuate the
      subordination so provided and (c) appoints the Debenture Trustee his or her
      attorney-in-fact for any and all such purposes. Each holder hereof, by his
      or
      her acceptance hereof, hereby waives all notice of the acceptance of the
      subordination provisions contained herein and in the Indenture by each holder
      of
      Senior Indebtedness, whether now outstanding or hereafter incurred, and waives
      reliance by each such holder upon said provisions.

     

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

     

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

     

    IN
      WITNESS WHEREOF, the Corporation has caused this instrument to be duly executed
      and sealed this 29th
      day of
      September, 2006.

     

    

    PENNSYLVANIA
      COMMERCE BANCORP, INC.

    

    
      	 	
              By:___________________________

            

    

    Name:

    Title:

    Attest:

    By:
       _______________________

    Name:

    Title:

     

     

    
 

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

    

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

    

    

    

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity but solely as Debenture Trustee

    

    

    By ____________________

      Authorized
      Signatory

    

     

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    
 

    (FORM
      OF REVERSE OF SECURITY)

    

    This
      Security is one of the Securities of the Corporation (herein sometimes referred
      to as the “Securities”), specified in the Indenture, all issued or to be issued
      under and pursuant to an Indenture, dated as of September 29, 2006 (the
“Indenture”), duly executed and delivered between the Corporation and Wilmington
      Trust Company, as Debenture Trustee (the “Debenture Trustee”), to which
      Indenture reference is hereby made for a description of the rights, limitations
      of rights, obligations, duties and immunities thereunder of the Debenture
      Trustee, the Corporation and the holders of the Securities.

     

    Upon
      the
      occurrence and continuation of a Special Event prior to September 29, 2011
      (the
“Initial Optional Prepayment Date”), the Corporation shall have the right, at
      any time within 90 days following the occurrence of such Special Event, to
      prepay this Security in whole (but not in part) at the Prepayment Price (as
      defined in the Indenture).

     

    In
      addition, the Corporation shall have the right to prepay this Security, in
      whole
      or in part, at any time on or after the Initial Optional Prepayment Date (an
      “Optional Prepayment”), upon not less than 30 days and not more than 60 days’
notice, at the Prepayment Price.

     

    The
      Prepayment Price shall be paid prior to 12:00 noon, New York time, on the date
      of such prepayment or at such earlier time as the Corporation determines,
provided,
      that
      the Corporation shall deposit with the Debenture Trustee an amount sufficient
      to
      pay the Prepayment Price by 10:00 a.m. New York time on the date such Prepayment
      Price is to be paid. Any prepayment pursuant to this paragraph will be made upon
      not less than 30 days nor more than 60 days notice. If the Securities are only
      partially prepaid by the Corporation pursuant to an Optional Prepayment, the
      particular Securities to be prepaid shall be selected on a pro rata basis not
      more than 60 days prior to the date fixed for prepayment from the outstanding
      Securities not previously called for prepayment, provided,
      however,
      that
      with respect to Securityholders that would be required to hold Securities with
      an aggregate principal amount of less than $100,000 but more than an aggregate
      principal amount of zero as a result of such pro rata prepayment, the
      Corporation shall prepay Securities of each such Securityholder so that after
      such prepayment such Securityholder shall hold Securities either with an
      aggregate principal amount of at least $100,000 or such Securityholder no longer
      holds any Securities and shall use such method (including, without limitation,
      by lot) as the Corporation shall deem fair and appropriate, provided,
      further,
      that
      any such proration may be made on the basis of the aggregate principal amount
      of
      Securities held by each Securityholder thereof and may be made by making such
      adjustments as the Corporation deems fair and appropriate in order that only
      Securities in denominations of $100,000 or integral multiples thereof shall
      be
      prepaid.

     

    In
      the
      event of prepayment of this Security in part only, a new Security or Securities
      for the portion hereof that has not been prepaid will be issued in the name
      of
      the holder hereof upon the cancellation hereof.

     

    Notwithstanding
      the foregoing, any prepayment of Securities by the Corporation shall be subject
      to the prior approval of the Board of Governors of the Federal Reserve System
      (the “Federal Reserve”), if such approval is then required under applicable
      capital guidelines or policies of the Federal Reserve, and the receipt of any
      other required regulatory approvals.

     

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

     

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

     

    The
      Indenture contains provisions permitting the Corporation and the Debenture
      Trustee, with the consent of the holders of a majority in aggregate principal
      amount of the Securities at the time outstanding, as defined in the Indenture,
      to execute supplemental indentures for the purpose of adding any provisions
      to
      or changing in any manner or eliminating any of the provisions of the Indenture
      or of modifying in any manner the rights of the holders of the Securities;
      provided,
      however,
      that no
      such supplemental indenture shall, without the consent of each holder of
      Securities then outstanding and affected thereby,
      (i) change the Maturity Date of any Security, or reduce the rate or extend
      the
      time of payment of interest thereon (subject to Article XVI of the Indenture),
      or reduce the principal amount thereof, or reduce any amount payable on
      prepayment thereof, or make the principal thereof or any interest or premium
      thereon payable in any coin or currency other than that provided in the
      Securities, or impair or affect the right of any holder of Securities to
      institute suit for payment thereof, or (ii) reduce the aforesaid percentage
      of
      Securities, the holders of which are required to consent to any such
      supplemental indenture. The Indenture also contains provisions permitting the
      holders of a majority in aggregate principal amount of the Securities at the
      time outstanding affected thereby, on behalf of all of the holders of the
      Securities, to waive any past default in the performance of any of the covenants
      contained in the Indenture, or established pursuant to the Indenture, and its
      consequences, except a default in the payment of the principal of or premium,
      if
      any, or interest on any of the Securities or a default in respect of any
      covenant or provision under which the Indenture cannot be modified or amended
      without the consent of each holder of Securities then outstanding. Any such
      consent or waiver by the holder of this Security (unless revoked as provided
      in
      the Indenture) shall be conclusive and binding upon such Holder and upon all
      future holders and owners of this Security and of any Security issued in
      exchange herefor or in place hereof (whether by registration of transfer or
      otherwise), irrespective of whether or not any notation of such consent or
      waiver is made upon this Security. 

     

    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 interest (including
      Compounded Interest and Additional Sums, if any) on this Security at the time
      and place and at the rate and in the money herein prescribed.

     

    So
      long
      as no Event of Default shall have occurred and be continuing, the Corporation
      shall have the right, at any time and from time to time during the term of
      the
      Securities, to defer payments of interest by extending the interest payment
      period of such Securities for a period not exceeding 20 consecutive quarterly
      periods, including the first such quarterly period during such extension period,
      and not extending beyond the Maturity Date of the Securities (an “Extended
      Interest Payment Period”) or ending on a date other than an Interest Payment
      Date, at the end of which period the Corporation shall pay all interest then
      accrued and unpaid (together with interest thereon at the rate specified for
      the
      Securities to the extent that payment of such interest is enforceable under
      applicable law). Before the termination of any such Extended Interest Payment
      Period, the Corporation may further defer payments of interest by further
      extending such Extended Interest Payment Period, provided
      that
      such Extended Interest Payment Period, together with all such previous and
      further extensions within such Extended Interest Payment Period, (i) shall
      not
      exceed 20 consecutive quarterly periods, including the first quarterly period
      during such Extended Interest Payment Period, (ii) shall not end on any date
      other than an Interest Payment Date, and (iii) shall not extend beyond the
      Maturity Date of the Securities. Upon the termination of any such Extended
      Interest Payment Period and the payment of all accrued and unpaid interest
      and
      any additional amounts then due, the Corporation may commence a new Extended
      Interest Payment Period, subject to the foregoing requirements.

     

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

     

    The
      Corporation has agreed that it will not (i) declare or pay any dividends or
      distributions on, or prepay, purchase, acquire, or make a liquidation payment
      with respect to, any of the Corporation’s capital stock, (ii) make any payment
      of principal, interest or premium, if any, on or repay or repurchase or redeem
      any debt securities of the Corporation that rank pari
      passu
      with or
      junior in right of payment to the Securities or (iii) make any guarantee
      payments with respect to any guarantee by the Corporation of the debt securities
      of any Subsidiary of the Corporation (including Other Guarantees) if such
      guarantee ranks pari
      passu
      with or
      junior in right of payment to the Securities (other than (a) dividends or
      distributions in shares of, or options, warrants or rights to subscribe for
      or
      purchase shares of, Common Stock of the Corporation, (b) any declaration of
      a
      dividend in connection with the implementation of a stockholder’s rights plan,
      or the issuance of stock under any such plan in the future, or the prepayment
      or
      repurchase of any such rights pursuant thereto, (c) payments under the Capital
      Securities Guarantee, (d) the purchase of fractional shares resulting from
      a
      reclassification of the Corporation’s capital stock, (e) the purchase of
      fractional interests in shares of the Company’s capital stock pursuant to the
      conversion or exchange provisions of such capital stock or the security being
      converted or exchanged, and (f) purchases of Common Stock related to the
      issuance of Common Stock or rights under any of the Corporation’s benefit plans
      for its directors, officers or employees or any of the Corporation’s dividend
      reinvestment plans), if at such time (1) there shall have occurred any event
      of
      which the Corporation has actual knowledge that (a) is, or with the giving
      of
      notice or the lapse of time, or both, would constitute, an Event of Default
      and
      (b) in respect of which the Corporation shall not have taken reasonable steps
      to
      cure, (2) if such Securities are held by the Property Trustee, the Corporation
      shall be in default with respect to its payment obligations under the Capital
      Securities Guarantee or (3) the Corporation shall have given notice of its
      election of the exercise of its right to extend the interest payment period
      and
      any such extension shall be continuing.

     

    Subject
      to (i) the receipt of any required regulatory approval, and (ii) the receipt
      by
      the Corporation of an opinion of counsel to the effect that such distribution
      will not be a taxable event to holders of Capital Securities, the Corporation
      will have the right at any time to liquidate the Trust and cause the Securities
      to be distributed to the holders of the Trust Securities in liquidation of
      the
      Trust.

     

    The
      Securities are issuable only in registered form without coupons in minimum
      denominations of $100,000 and any integral multiple thereof. As provided in
      the
      Indenture and subject to the transfer restrictions limitations as may be
      contained herein and therein from time to time, this Security is transferable
      by
      the holder hereof on the Security Register of the Corporation, upon surrender
      of
      this Security for registration of transfer at the office or agency of the
      Corporation in New York, New York accompanied by a written instrument or
      instruments of transfer in form satisfactory to the Corporation or the Debenture
      Trustee duly executed by the holder hereof or his attorney duly authorized
      in
      writing, and thereupon one or more new Securities of authorized denominations
      and for the same aggregate principal amount and series will be issued to the
      designated transferee or transferees. No service charge will be made for any
      such registration of transfer, but the Corporation may require payment of a
      sum
      sufficient to cover any tax or other governmental charge payable in relation
      thereto.

     

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

     

     

    Prior
      to
      due presentment for registration of transfer of this Security, the Corporation,
      the Debenture Trustee, any authenticating agent, any paying agent, any transfer
      agent and the registrar may deem and treat the holder hereof as the absolute
      owner hereof (whether or not this Security shall be overdue and notwithstanding
      any notice of ownership or writing hereon made by anyone other than the security
      registrar for the Securities) for the purpose of receiving payment of or on
      account of the principal hereof and premium, if any, and (subject to the
      Indenture) interest due hereon and for all other purposes, and neither the
      Corporation nor the Debenture Trustee nor any authenticating agent nor any
      paying agent nor any transfer agent nor any registrar shall be affected by
      any
      notice to the contrary.

     

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

     

    All
      terms
      used in this Security that are defined in the Indenture shall have the meanings
      assigned to them in the Indenture.

     

    THE
      INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
      WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO CONFLICT OF LAW
      PROVISIONS THEREOF.

     

     

    A-8Unassociated Document

    EXHIBIT
      4.3

    

    
      

      

    

     

    

    CAPITAL
      SECURITIES GUARANTEE AGREEMENT

    

    

    PENNSYLVANIA
      COMMERCE BANCORP, INC.

    

    

    DATED
      AS OF SEPTEMBER 29, 2006

    

    

    

    
      

      

    

    

    

    

    

    

    

    

    
      
        
          

          

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    TABLE
      OF CONTENTS

    

    

      
        	
                ARTICLE
                  I DEFINITIONS AND INTERPRETATION

              	
                1

              
	
                Section
                  1.1

              	
                Definitions
                  and Interpretation.

              	
                1

              
	
                ARTICLE
                  II Events of Default

              	
                4

              
	
                Section
                  2.1

              	
                Events
                  of Default; Waiver

              	
                4

              
	
                Section
                  2.2

              	
                Event
                  of Default; Notice

              	
                5

              
	
                ARTICLE
                  III POWERS, DUTIES AND RIGHTS OF CAPITAL SECURITIES GUARANTEE
                  TRUSTEE

              	
                5

              
	
                Section
                  3.1

              	
                Powers
                  and Duties of the Capital Securities Guarantee Trustee.

              	
                5

              
	
                Section
                  3.2

              	
                Certain
                  Rights of Capital Securities Guarantee Trustee

              	
                7

              
	
                Section
                  3.3

              	
                Not
                  Responsible for Recitals or Issuance of Capital Securities
                  Guarantee.

              	
                8

              
	
                ARTICLE
                  IV CAPITAL SECURITIES GUARANTEE TRUSTEE

              	
                9

              
	
                Section
                  4.1

              	
                Capital
                  Securities Guarantee Trustee; Eligibility

              	
                9

              
	
                Section
                  4.2

              	
                Appointment,
                  Removal and Resignation of Capital Securities Guarantee
                  Trustee.

              	 
	
                Section
                  4.3

              	
                Compensation
                  and Reimbursement

              	
                10

              
	
                ARTICLE
                  V GUARANTEE

              	
                11

              
	
                Section
                  5.1

              	
                Guarantee

              	
                11

              
	
                Section
                  5.2

              	
                Waiver
                  of Notice and Demand

              	
                11

              
	
                Section
                  5.3

              	
                Obligations
                  Not Affected.

              	
                11

              
	
                Section
                  5.4

              	
                Rights
                  of Holders

              	
                12

              
	
                Section
                  5.5

              	
                Guarantee
                  of Payment

              	
                12

              
	
                Section
                  5.6

              	
                Subrogation

              	
                12

              
	
                Section
                  5.7

              	
                Independent
                  Obligations

              	
                13

              
	
                ARTICLE
                  VI LIMITATION OF TRANSACTIONS; SUBORDINATION

              	
                13

              
	
                Section
                  6.1

              	
                Limitation
                  of Transactions

              	
                13

              
	
                Section
                  6.2

              	
                Ranking

              	
                13

              
	
                ARTICLE
                  VII TERMINATION

              	
                14

              
	
                Section
                  7.1

              	
                Termination

              	
                14

              
	
                ARTICLE
                  VIII INDEMNIFICATION

              	 	
                14

              
	
                Section
                  8.1

              	
                Exculpation

              	
                14

              
	
                Section
                  8.2

              	
                Indemnification

              	
                14

              
	
                ARTICLE
                  IX MISCELLANEOUS

              	
                15

              
	
                Section
                  9.1

              	
                Successors
                  and Assigns

              	
                15

              
	
                Section
                  9.2

              	
                Amendments

              	
                15

              
	
                Section
                  9.3

              	
                Notices

              	
                15

              

      

       

       

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

       

       

      
        	
                Section
                  9.4

              	
                Benefit

              	
                16

              
	
                Section
                  9.5

              	
                Governing
                  Law; Submission to Jurisdiction; Appointment of Agent for Service
                  of
                  Process

              	
                16

              

      

    

     

     

     

     

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    CAPITAL
      SECURITIES GUARANTEE AGREEMENT

    

    This
      GUARANTEE AGREEMENT (the “Capital Securities Guarantee”), dated as of September
      29, 2006, is executed and delivered by Pennsylvania Commerce Bancorp, Inc.,
      a
      Pennsylvania corporation (the “Guarantor”), and Wilmington Trust Company, a
      Delaware banking corporation, as trustee (the “Capital Securities Guarantee
      Trustee”), for the benefit of the Holders (as defined herein) from time to time
      of the Capital Securities (as defined herein) of Commerce Harrisburg Capital
      Trust III, a Delaware statutory trust (the “Issuer”).

    

    WHEREAS,
      pursuant to the Declaration of Trust (the “Declaration”), dated as of September
      29, 2006, among the trustees of the Issuer, the Guarantor, as Sponsor, and
      the
      Holders from time to time of undivided beneficial interests in the assets of
      the
      Issuer, the Issuer is issuing on the date hereof 150 Capital Securities, having
      an aggregate liquidation amount of $15,000,000 such capital securities being
      designated the 7.75% Capital Securities; and

    

    WHEREAS,
      as incentive for the Holders to purchase the Capital Securities, the Guarantor
      desires irrevocably and unconditionally to agree, to the extent set forth in
      this Capital Securities Guarantee, to pay to the Holders the Guarantee Payments
      (as defined below) and to make certain other payments on the terms and
      conditions set forth herein.

    

    NOW,
      THEREFORE, in consideration of the purchase by each Holder, which purchase
      the
      Guarantor hereby acknowledges shall benefit the Guarantor, the Guarantor
      executes and delivers this Trust Capital Securities Guarantee for the benefit
      of
      the Holders.

    

    ARTICLE
      I 

    DEFINITIONS
      AND INTERPRETATION

     

    Section
      1.1  Definitions
      and Interpretation.

     

    

    In
      this
      Capital Securities Guarantee, unless the context otherwise
      requires:

    

    (a)  Capitalized
      terms used in this Capital Securities Guarantee but not defined in the preamble
      above have the respective meanings assigned to them in this Section
      1.1;

     

    (b)  Terms
      defined in the Declaration as of the date of execution of this Capital
      Securities Guarantee have the same meaning when used in this Capital Securities
      Guarantee unless otherwise defined in this Capital Securities
      Guarantee;

     

    (c)  A
      term
      defined anywhere in this Capital Securities Guarantee has the same meaning
      throughout;

     

    (d)  All
      references to “the Capital Securities Guarantee” or “this Capital Securities
      Guarantee” are to this Capital Securities Guarantee as modified, supplemented or
      amended from time to time;

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     

    (e)  All
      references in this Capital Securities Guarantee to Articles and Sections are
      to
      Articles and Sections of this Capital Securities Guarantee, unless otherwise
      specified;

     

    (f)  A
      term
      defined in the Trust Indenture Act has the same meaning when used in this
      Capital Securities Guarantee, unless otherwise defined in this Capital
      Securities Guarantee or unless the context otherwise requires; and

     

    (g)  A
      reference to the singular includes the plural and vice versa.

     

    “Affiliate”
      has the same meaning as given to that term in Rule 405 under the Securities
      Act
      of 1933, as amended, or any successor rule thereunder,

    

    “Business
      Day” means any day other than a Saturday or a Sunday, or a day on which banking
      institutions in New York, New York, Wilmington, Delaware or Philadelphia,
      Pennsylvania, are authorized or required by law to transact
      business.

    

    “Common
      Securities” means the securities representing common undivided beneficial
      interests in the assets of the Issuer.

    

    “Corporate
      Trust Office” means the office of the Capital Securities Guarantee Trustee at
      which the corporate trust business of the Capital Securities Guarantee Trustee
      shall, at any particular time, be principally administered, which office at
      the
      date of execution of this Capital Securities Guarantee is located at 1100 North
      Market Street, Rodney Square North, Wilmington, Delaware 19890-0001, Attn:
      Corporate Trust Administration.

    

    “Covered
      Person” means any Holder of Capital Securities.

    

    “Debentures”
      means the series of subordinated debt securities of the Guarantor designated
      the
      7.75% Junior Subordinated Debentures due September 29, 2036 held by the Property
      Trustee (as defined in the Declaration) of the Issuer.

    

    “Event
      of
      Default” means a default by the Guarantor on any of its payment or other
      obligations under this Capital Securities Guarantee, provided, however, that
      except with respect to a default in payment of any Guarantee Payment, the
      Guarantor shall have received notice of default and shall not have cured such
      default within 30 days after receipt of such notice.

    

    “Guarantee
      Payments” means the following payments or distributions, without duplication,
      with respect to the Capital Securities, to the extent not paid or made by the
      Issuer: (i) any accumulated and unpaid Distributions (as defined in the
      Declaration) that are required to be paid on such Capital Securities to the
      extent the Issuer has funds on hand legally available therefor at such time,
      (ii) the Redemption Price (as defined in the Declaration), including all
      accumulated and unpaid Distributions to the date of redemption to the extent
      the
      Issuer has funds on hand legally available therefor at such time, with respect
      to any Capital Securities called for redemption by the Issuer and (iii) upon
      a
      voluntary or involuntary dissolution winding-up or liquidation of the Issuer
      (other than in connection with the distribution of the Debentures to the Holders
      or the redemption of all Capital Securities), the lesser of (a) the aggregate
      of
      the liquidation amount and all accumulated and unpaid Distributions on the
      Capital Securities to the date of payment (the “Liquidation Distribution”) to
      the extent the Issuer has funds on hand legally available therefor, and (b)
      the
      amount of assets of the Issuer remaining available for distribution to Holders
      in liquidation of the Issuer. 

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
 

    “Holder”
      shall mean any holder, as registered on the books and records of the Issuer,
      of
      any Capital Securities; provided, however, that, in determining whether the
      holders of the requisite percentage of Capital Securities have given any
      request, notice, consent or waiver hereunder, “Holder” shall not include the
      Guarantor or any Person known to a Responsible Officer of the Capital Securities
      Guarantee Trustee to be an Affiliate of the Guarantor.

    

    “Indemnified
      Person” means the Capital Securities Guarantee Trustee, any Affiliate of the
      Capital Securities Guarantee Trustee, or any officers, directors, stockholders,
      members, partners, employees, representatives, nominees, custodians or agents
      of
      the Capital Securities Guarantee Trustee.

    

    “Indenture”
      means the Indenture dated as of September 29, 2006, among the Guarantor (the
      “Debenture Issuer”) and Wilmington Trust Company, as trustee (the “Indenture
      Trustee”), pursuant to which the Debentures are to be issued to the Property
      Trustee of the Issuer.

    

    “Indenture
      Event of Default” shall mean any event specified in Section 5.01 of the
      Indenture.

    

    “Majority
      in liquidation amount of the Capital Securities” means, except as provided by
      the Declaration or by the Trust Indenture Act, a vote by Holder(s) of more
      than
      50% of the aggregate liquidation amount of all Capital Securities.

    

    “Officers’
      Certificate” means, with respect to the Guarantor, a certificate signed by any
      of the Chairman, a Vice Chairman, the Chief Executive Officer, the President,
      a
      Vice President, the Comptroller, the Treasurer or an Assistant Treasurer of
      the
      Guarantor. Any Officers’ Certificate delivered with respect to compliance with a
      condition or covenant provided for in this Capital Securities Guarantee (other
      than pursuant to Section 314(d)(4) of the Trust Indenture Act) shall
      include:

    

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

     

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

     

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

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Other
      Debentures” means all junior subordinated debentures issued by the Guarantor
      from time to time and sold to trusts to be established by the Guarantor (if
      any), in each case similar to the Issuer.

    

    “Other
      Guarantees” means all guarantees to be issued by the Guarantor with respect to
      trust capital securities (if any) similar to the Capital Securities issued
      by
      other trusts to be established by the Guarantor (if any), in each case similar
      to the Issuer.

    

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

    

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

    

    “Successor
      Capital Securities Guarantee Trustee” means a successor Capital Securities
      Guarantee Trustee possessing the qualifications to act as Capital Securities
      Guarantee Trustee under Section 4.1.

    

    “Capital
      Securities Guarantee Trustee” means Wilmington Trust Company, a Delaware banking
      corporation, until a Successor Trust Capital Securities Guarantee Trustee (as
      defined therein) has been appointed and has accepted such appointment pursuant
      to the terms of this Trust Capital Securities Guarantee and thereafter means
      each Successor Trust Capital Securities Guarantee Trustee.

    

    “Trust
      Indenture Act” means the Trust Indenture Act of 1939, as amended.

    

    “Trust
      Securities” means the Common Securities and the Capital Securities,
      collectively.

    

    ARTICLE
      II

    Events
      of Default 

     

    Section
      2.1  Events
      of Default; Waiver

     

    The
      Holders of a Majority in liquidation amount of Capital Securities may, by vote,
      on behalf of all Holders, waive any past Event of Default and its consequences.
      Upon such waiver, any such Event of Default shall cease to exist, and any Event
      of Default arising therefrom shall be deemed to have been cured, for every
      purpose of this Capital Securities Guarantee, but no such waiver shall extend
      to
      any subsequent or other default or Event of Default or impair any right
      consequent thereon.

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
 

    Section
      2.2  Event
      of Default; Notice

     

    (a) The
      Capital Securities Guarantee Trustee shall, within 90 days after the occurrence
      of a default with respect to this Capital Securities Guarantee, mail by first
      class postage prepaid, to all Holders, notices of all defaults actually known
      to
      a Responsible Officer, unless such defaults have been cured before the giving
      of
      such notice, provided, that, except in the case of default in the payment of
      any
      Guarantee Payment, the Capital Securities Guarantee 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 a Responsible
      Officer of the Capital Securities Guarantee Trustee in good faith determines
      that the withholding of such notice is in the interests of the
      Holders.

    

    ARTICLE
      III

    POWERS,
      DUTIES AND RIGHTS OF CAPITAL

    SECURITIES
      GUARANTEE TRUSTEE

     

    Section
      3.1  Powers
      and Duties of the Capital Securities Guarantee
      Trustee.

     

    (a)  This
      Capital Securities Guarantee shall be held by the Capital Securities Guarantee
      Trustee for the benefit of the Holders, and the Capital Securities Guarantee
      Trustee shall not transfer this Capital Securities Guarantee to any Person
      except a Holder exercising his or her rights pursuant to Section 5.4(b) or
      to a
      Successor Capital Securities Guarantee Trustee on acceptance by such Successor
      Capital Securities Guarantee Trustee of its appointment to act as Successor
      Capital Securities Guarantee Trustee. The right, title and interest of the
      Capital Securities Guarantee Trustee shall automatically vest in any Successor
      Capital Securities Guarantee Trustee, and such vesting and succession of title
      shall be effective whether or not conveyancing documents have been executed
      and
      delivered pursuant to the appointment of such Successor Capital Securities
      Guarantee Trustee.

     

    (b)  If
      an
      Event of Default actually known to a Responsible Officer has occurred and is
      continuing, the Capital Securities Guarantee Trustee shall enforce this Capital
      Securities Guarantee for the benefit of the Holders.

     

    (c)  The
      Capital Securities Guarantee Trustee, before the occurrence of any Event of
      Default and after the curing of all Events of Default that may have occurred,
      shall undertake to perform only such duties as are specifically set forth in
      this Capital Securities Guarantee, and no implied covenants shall be read into
      this Capital Securities Guarantee against the Capital Securities Guarantee
      Trustee. In case an Event of Default has occurred (that has not been cured
      or
      waived pursuant to Section 2.1) and is actually known to a Responsible Officer,
      the Capital Securities Guarantee Trustee shall exercise such of the rights
      and
      powers vested in it by this Capital Securities Guarantee, and use the same
      degree of care and skill in its exercise thereof, as a prudent person would
      exercise or use under the circumstances in the conduct of his or her own
      affairs.

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

     

    (d)  No
      provision of this Capital Securities Guarantee shall be construed to relieve
      the
      Capital Securities Guarantee Trustee from liability for its own negligent
      action, its own negligent failure to act, or its own willful misconduct, except
      that:

     

    (i)  prior
      to
      the occurrence of any Event of Default and after the curing or waiving of all
      such Events of Default that may have occurred:

     

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

     

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

     

    (ii)  the
      Capital Securities Guarantee 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 Capital Securities Guarantee Trustee was negligent in ascertaining
      the
      pertinent facts upon which such judgment was made;

     

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

     

    (iv)  no
      provision of this Capital Securities Guarantee shall require the Capital
      Securities Guarantee Trustee to expend or risk its own funds or otherwise incur
      personal financial liability in the performance of any of its duties or in
      the
      exercise of any of its rights or powers, if the Capital Securities Guarantee
      Trustee shall have reasonable grounds for believing that the repayment of such
      funds or liability is not reasonably assured to it under the terms of this
      Capital Securities Guarantee or indemnity, reasonably satisfactory to the
      Capital Securities Guarantee Trustee, against such risk or liability is not
      reasonably assured to it.

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    Section
      3.2  Certain
      Rights of Capital Securities Guarantee Trustee

     

    (a)  Subject
      to the provisions of Section 3.1:

     

    (i)  The
      Capital Securities Guarantee Trustee may conclusively rely, and shall be fully
      protected in acting or refraining from acting, upon any resolution, certificate,
      statement, instrument, opinion, report, notice, request, direction, consent,
      order, bond, debenture, note, other evidence of indebtedness or other paper
      or
      document believed by it to be genuine and to have been signed, sent or presented
      by the proper party or parties.

     

    (ii)  Any
      direction or act of the Guarantor contemplated by this Capital Securities
      Guarantee may be sufficiently evidenced by an Officers’
Certificate.

     

    (iii)  Whenever,
      in the administration of this Capital Securities Guarantee, the Capital
      Securities Guarantee Trustee shall deem it desirable that a matter be proved
      or
      established before taking, suffering or omitting any action hereunder, the
      Capital Securities Guarantee Trustee (unless other evidence is herein
      specifically prescribed) may, in the absence of bad faith on its part, request
      and conclusively rely upon an Officers’ Certificate which, upon receipt of such
      request, shall be promptly delivered by the Guarantor.

     

    (iv)  The
      Capital Securities Guarantee Trustee shall have no duty to see to any recording,
      filing or registration of any instrument (or any rerecording, refiling or
      reregistration thereof).

     

    (v)  The
      Capital Securities Guarantee Trustee may consult with counsel of its selection,
      and the advice or opinion of such counsel with respect to legal matters shall
      be
      full and complete authorization and protection in respect of any action taken,
      suffered or omitted by it hereunder in good faith and in accordance with such
      advice or opinion. Such counsel may be counsel to the Guarantor or any of its
      Affiliates and may include any of its employees. The Capital Securities
      Guarantee Trustee shall have the right at any time to seek instructions
      concerning the administration of this Capital Securities Guarantee from any
      court of competent jurisdiction.

     

    (vi)  The
      Capital Securities Guarantee Trustee shall be under no obligation to exercise
      any of the rights or powers vested in it by this Capital Securities Guarantee
      at
      the request or direction of any Holder, unless such Holder shall have provided
      to the Capital Securities Guarantee Trustee such security and indemnity,
      reasonably satisfactory to the Capital Securities Guarantee Trustee, against
      the
      costs, expenses (including attorneys’ fees and expenses and the expenses of the
      Capital Securities Guarantee Trustee’s agents, nominees or custodians) and
      liabilities that might be incurred by it in complying with such request or
      direction, including such reasonable advances as may be requested by the Capital
      Securities Guarantee Trustee; provided that, nothing contained in this Section
      3.2(a)(vi) shall be taken to relieve the Capital Securities Guarantee Trustee,
      upon the occurrence of an Event of Default, of its obligation to exercise the
      rights and powers vested in it by this Capital Securities
      Guarantee.

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (vii)  The
      Capital Securities Guarantee 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, debenture, note, other evidence of indebtedness or other paper
      or
      document, but the Capital Securities Guarantee Trustee, in its discretion,
      may
      make such further inquiry or investigation into such facts or matters as it
      may
      see fit.

     

    (viii)  The
      Capital Securities Guarantee Trustee may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or by or through
      agents, nominees, custodians or attorneys, and the Capital Securities Guarantee
      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.

     

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

     

    (x)  Whenever
      in the administration of this Capital Securities Guarantee the Capital
      Securities Guarantee Trustee shall deem it desirable to receive instructions
      with respect to enforcing any remedy or right or taking any other action
      hereunder, the Capital Securities Guarantee Trustee (i) may request instructions
      from the Holders of a Majority in liquidation amount of the Capital Securities,
      (ii) may refrain from enforcing such remedy or right or taking such other action
      until such instructions are received and (iii) shall be protected in
      conclusively relying on or acting in accordance with such
      instructions.

     

    (xi)  The
      Capital Securities Guarantee Trustee shall not be liable for any action taken,
      suffered, or omitted to be taken by it in good faith, without negligence, and
      reasonably believed by it to be authorized or within the discretion or rights
      or
      powers conferred upon it by this Capital Securities Guarantee.

     

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

     

    Section
      3.3  Not
      Responsible for Recitals or Issuance of Capital Securities
      Guarantee.

     

    The
      recitals contained in this Capital Securities Guarantee shall be taken as the
      statements of the Guarantor, and the Capital Securities Guarantee Trustee does
      not assume any responsibility for their correctness. The Capital Securities
      Guarantee Trustee makes no representation as to the validity or sufficiency
      of
      this Capital Securities Guarantee.

     

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
 

    ARTICLE
      IV

    CAPITAL
      SECURITIES GUARANTEE TRUSTEE

     

    Section
      4.1  Capital
      Securities Guarantee Trustee; Eligibility

     

    (a)  There
      shall at all times be a Capital Securities Guarantee Trustee which
      shall:

     

    (i)  not
      be an
      Affiliate of the Guarantor; and

     

    (ii)  be
      a
      corporation organized and doing business under the laws of the United States
      of
      America or any State or Territory thereof or of the District of Columbia, or
      a
      corporation or Person permitted by the Securities and Exchange Commission to
      act
      as an institutional trustee under the Trust Indenture Act, authorized under
      such
      laws to exercise corporate trust powers, having a combined capital and surplus
      of at least Fifty Million U.S. dollars ($50,000,000), and subject to supervision
      or examination by Federal, State, Territorial or District of Columbia authority.
      If such corporation publishes reports of condition at least annually, pursuant
      to law or to the requirements of the supervising or examining authority referred
      to above, then, for the purposes of this Section 4.1(a)(ii), the combined
      capital and surplus of such corporation shall be deemed to be its combined
      capital and surplus as set forth in its most recent report of condition so
      published.

     

    (b)  If
      at any
      time the Capital Securities Guarantee Trustee shall cease to be eligible to
      so
      act under Section 4.1(a), the Capital Securities Guarantee Trustee shall
      immediately resign in the manner and with the effect set out in Section
      4.2(c).

     

    (c)  If
      the
      Capital Securities Guarantee Trustee has or shall acquire any “conflicting
      interest” within the meaning of Section 310(b) of the Trust Indenture Act, the
      Capital Securities Guarantee Trustee and Guarantor shall in all respects comply
      with the provisions of Section 310 (b) of the Trust Indenture Act, subject
      to
      the penultimate paragraph thereof.

     

    Section
      4.2  Appointment,
      Removal and Resignation of Capital Securities Guarantee
      Trustee.

     

    (a)  Subject
      to Section 4.2(b), the Capital Securities Guarantee Trustee may be appointed
      or
      removed without cause at any time by the Guarantor except during an Event of
      Default.

     

    (b)  The
      Capital Securities Guarantee Trustee shall not be removed in accordance with
      Section 4.2(a) until a Successor Capital Securities Guarantee Trustee has been
      appointed and has accepted such appointment by written instrument executed
      by
      such Successor Capital Securities Guarantee Trustee and delivered to the
      Guarantor.

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

     

    (c)  The
      Capital Securities Guarantee Trustee shall hold office until a Successor Capital
      Securities Guarantee Trustee shall have been appointed or until its removal
      or
      resignation. The Capital Securities Guarantee Trustee may resign from office
      (without need for prior or subsequent accounting) by an instrument in writing
      executed by the Capital Securities Guarantee Trustee and delivered to the
      Guarantor, which resignation shall not take effect until a Successor Capital
      Securities Guarantee Trustee has been appointed and has accepted such
      appointment by instrument in writing executed by such Successor Capital
      Securities Guarantee Trustee and delivered to the Guarantor and the resigning
      Capital Securities Guarantee Trustee.

     

    (d)  If
      no
      Successor Capital Securities Guarantee Trustee shall have been appointed and
      accepted appointment as provided in this Section 4.2 within 60 days after
      delivery of an instrument of removal or resignation, the Capital Securities
      Guarantee Trustee resigning or being removed may petition any court of competent
      jurisdiction for appointment of a Successor Capital Securities Guarantee
      Trustee. Such court may thereupon, after prescribing such notice, if any, as
      it
      may deem proper, appoint a Successor Capital Securities Guarantee
      Trustee.

     

    (e)  No
      Capital Securities Guarantee Trustee shall be liable for the acts or omissions
      to act of any Successor Capital Securities Guarantee Trustee.

     

    (f)  Upon
      termination of this Capital Securities Guarantee or removal or resignation
      of
      the Capital Securities Guarantee Trustee pursuant to this Section 4.2, the
      Guarantor shall pay to the Capital Securities Guarantee Trustee all amounts
      due
      to the Capital Securities Guarantee Trustee accrued to the date of such
      termination, removal or resignation.

     

    Section
      4.3  Compensation
      and Reimbursement

     

    (a)  The
      Guarantor agrees:

     

    (i)  to
      pay
      the Capital Securities Guarantee Trustee from time to time such reasonable
      compensation as the Guarantor and the Capital Guarantee Trustee shall from
      time
      to time agree in writing for all services rendered by it hereunder (which
      compensation will not be limited by any provision of law in regard to the
      compensation of a trustee of an express trust); and

     

    (ii)  except
      as
      otherwise expressly provided herein, to reimburse the Capital Securities
      Guarantee Trustee upon its request for all reasonable expenses, disbursements
      and advances incurred or made by the Capital Securities Guarantee Trustee in
      accordance with any provision of this Guarantee (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, bad faith or willful misconduct.

     

    (b)  The
      provisions of this Section shall survive the termination of this Capital
      Securities Guarantee.

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

     

    ARTICLE
      V

    GUARANTEE

     

    Section
      5.1  Guarantee

     

    The
      Guarantor irrevocably and unconditionally agrees to pay in full to the Holders
      the Guarantee Payments (without duplication of amounts theretofore paid by
      the
      Issuer), as and when due, regardless of any defense, right of set-off or
      counterclaim that the Issuer may have or assert. The Guarantor’s obligation to
      make a Guarantee Payment may be satisfied by direct payment of the required
      amounts by the Guarantor to the Holders or by causing the Issuer to pay such
      amounts to the Holders.

    

    Section
      5.2  Waiver
      of Notice and Demand

     

    The
      Guarantor hereby waives notice of acceptance of this Capital Securities
      Guarantee and of any liability to which it applies or may apply, presentment,
      demand for payment, any right to require a proceeding first against the Issuer
      or any other Person before proceeding against the Guarantor, protest, notice
      of
      nonpayment, notice of dishonor, notice of redemption and all other notices
      and
      demands.

    

    Section
      5.3  Obligations
      Not Affected.

     

    The
      obligations, covenants, agreements and duties of the Guarantor under this
      Capital Securities Guarantee shall in no way be affected or impaired by reason
      of the happening from time to time of any of the following:

    

    (a)  the
      release or waiver, by operation of law or otherwise, of the performance or
      observance by the Issuer of any express or implied agreement, covenant, term
      or
      condition relating to the Capital Securities to be performed or observed by
      the
      Issuer;

     

    (b)  the
      extension of time for the payment by the Issuer of all or any portion of the
      Distributions, Redemption Price, Liquidation Distribution (as defined in the
      Declaration) or any other sums payable under the terms of the Trust Capital
      Securities or the extension of time for the performance of any other obligation
      under, arising out of, or in connection with, the Trust Capital Securities
      (other than an extension of time for payment of Distributions, Redemption Price,
      Liquidation Distribution or other sum payable that results from the extension
      of
      any interest payment period on the Debentures permitted by the
      Indenture);

     

    (c)  any
      failure, omission, delay or lack of diligence on the part of the Holders to
      enforce, assert or exercise any right, privilege, power or remedy conferred
      on
      the Holders pursuant to the terms of the Capital Securities, or any action
      on
      the part of the Issuer granting indulgence or extension of any
      kind;

     

    (d)  the
      voluntary or involuntary liquidation, dissolution, sale of any collateral,
      receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
      reorganization, arrangement, composition or readjustment of debt of, or other
      similar proceedings affecting, the Issuer or any of the assets of the
      Issuer;

     

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (e)  any
      invalidity of, or defect or deficiency in, the Capital Securities;

     

    (f)  the
      settlement or compromise of any obligation guaranteed hereby or hereby
      incurred;

     

    (g)  any
      other
      circumstance whatsoever that might otherwise constitute a legal or equitable
      discharge or defense or defense of a guarantor, it being the intent of this
      Section 5.3 that the obligations of the Guarantor with respect to the Guarantee
      Payments shall be absolute and unconditional under any all
      circumstances.

     

    There
      shall be no obligation of the Holders to give notice to, or obtain consent
      of,
      the Guarantor with respect to the happening of any of the
      foregoing.

    

    Section
      5.4  Rights
      of Holders

     

    (a)  The
      Holders of a Majority in liquidation amount of the Capital Securities have
      the
      right to direct the time, method and place of conducting any proceeding for
      any
      remedy available to the Capital Securities Guarantee Trustee in respect of
      this
      Capital Securities Guarantee or exercising any trust or power conferred upon
      the
      Capital Securities Guarantee Trustee under this Capital Securities
      Guarantee.

     

    (b)  If
      the
      Capital Securities Guarantee Trustee fails to enforce such Capital Securities
      Guarantee, any Holder may institute a legal proceeding directly against the
      Guarantor to enforce the Capital Securities Guarantee Trustee’s rights under
      this Capital Securities Guarantee, without first instituting a legal proceeding
      against the Issuer, the Capital Securities Guarantee Trustee or any other person
      or entity. The Guarantor waives any right or remedy to require that any action
      be brought first against the Issuer or any other person or entity before
      proceeding directly against the Guarantor.

     

    Section
      5.5  Guarantee
      of Payment

     

    This
      Capital Securities Guarantee creates a guarantee of payment and not of
      collection.

    

    Section
      5.6  Subrogation

     

    The
      Guarantor shall be subrogated to all (if any) rights of the Holders against
      the
      Issuer in respect of any amounts paid to such Holders by the Guarantor under
      this Capital Securities Guarantee; provided, however, that the Guarantor shall
      not (except to the extent required by mandatory provisions of law) be entitled
      to enforce or exercise any right that it may acquire by way of subrogation
      or
      any indemnity, reimbursement or other agreement, in all cases as a result of
      payment under this Capital Securities Guarantee, if, at the time of any such
      payment, any amounts are due and unpaid under this Capital Securities Guarantee.
      If any amount shall be paid to the Guarantor in violation of the preceding
      sentence, the Guarantor agrees to hold such amount in trust for the Holders
      and
      to pay over such amount to the Holders.

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    Section
      5.7  Independent
      Obligations

     

    The
      Guarantor acknowledges that its obligations hereunder are independent of the
      obligations of the Issuer with respect to the Capital Securities, and that
      the
      Guarantor shall be liable as principal and as debtor hereunder to make Guarantee
      Payments pursuant to the terms of this Capital Securities Guarantee
      notwithstanding the occurrence of any event referred to in subsections (a)
      through (g), inclusive, of Section 5.3 hereof.

    

    ARTICLE
      VI

    LIMITATION
      OF TRANSACTIONS; SUBORDINATION

     

    Section
      6.1  Limitation
      of Transactions

     

    So
      long
      as any Capital Securities remain outstanding, the Guarantor 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 Guarantor’s capital
      stock (which includes common and preferred stock), (ii) make any payment of
      principal of or interest on or repay, repurchase or redeem any debt securities
      of the Guarantor (including any Other Debentures) that rank pari
      passu with
      or
      junior in right of payment to the Debentures or (iii) make any guarantee
      payments with respect to any guarantee by the Guarantor of the debt securities
      of any subsidiary of the Guarantor (including Other Guarantees) if such
      guarantee ranks pari
      passu with
      or
      junior in right of payment to the Debentures (other than (a) dividends or
      distributions in shares of, or options, warrants, rights to subscribe for or
      purchase shares of, common stock of the Guarantor, (b) any declaration of a
      dividend in connection with the implementation of a stockholders’ rights plan,
      or the issuance of stock under any such plan in the future, or the redemption
      or
      repurchase of any such rights pursuant thereto, (c) payments under the Capital
      Securities Guarantee, (d) the purchase of fractional shares resulting from
      a
      reclassification of the Guarantor’s capital stock, (e) the purchase of
      fractional interests in shares of the Guarantor’s capital stock pursuant to the
      conversion or exchange provisions of such capital stock or the security being
      converted or exchanged and (f) purchases of common stock related to the issuance
      of common stock or rights under any of the Guarantor’s benefit plans for its
      directors, officers or employees or any of the Guarantor’s dividend reinvestment
      plans) if at
      such
      time (i) there shall have occurred any event of which the Guarantor has actual
      knowledge that (a) is, or with the giving of notice or the lapse of time, or
      both, would be an Indenture Event of Default and (b) in respect of which the
      Guarantor shall not have taken reasonable steps to cure, (ii) if such Debentures
      are held by the Property Trustee, the Guarantor shall be in default with respect
      to its payment of any obligations under this Capital Securities Guarantee or
      (iii) the Guarantor shall have given notice of its election of the exercise
      of
      its right to extend the interest payment period pursuant to Section 16.01 of
      the
      Indenture and any such extension shall be continuing.

    

    Section
      6.2  Ranking

     

    This
      Capital Securities Guarantee will constitute an unsecured obligation of the
      Guarantor and will rank (i) subordinate and junior in right of payment to Senior
      and Subordinated Indebtedness (as defined in the Indenture), to the same extent
      and in the same manner that the Debentures are subordinated to Senior and
      Subordinated Indebtedness pursuant to the Indenture, (ii) pari
      passu with
      the
      Debentures, the Other Debentures and any Other Guarantee, and (iii) senior
      to
      the Guarantor’s capital stock.

     

     

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
 

    ARTICLE
      VII

    TERMINATION

     

    Section
      7.1  Termination

     

    This
      Capital Securities Guarantee shall terminate (i) upon full payment of the
      Redemption Price (as defined in the Declaration) of all Capital Securities
      or
      (ii) upon liquidation of the Issuer, the full payment of the amounts payable
      in
      accordance with the Declaration or (iii) the distribution of the Debentures
      to
      the Holders and the holders of Common Securities. Notwithstanding the foregoing,
      this Trust Capital Securities Guarantee will continue to be effective or will
      be
      reinstated, as the case may be, if at any time any Holder must restore payment
      of any sums paid under the Trust Capital Securities or under this Trust Capital
      Securities Guarantee.

    

    ARTICLE
      VIII

    INDEMNIFICATION

     

    Section
      8.1  Exculpation

     

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

     

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

     

    Section
      8.2  Indemnification

     

    The
      Guarantor agrees to indemnify each Indemnified Person for, and to hold each
      Indemnified Person harmless against, any and all loss, liability, damage, claim
      or expense incurred without negligence or bad faith on its part, arising out
      of
      or in connection with the acceptance or administration of the trust or trusts
      hereunder, including the costs and expenses (including reasonable legal fees
      and
      expenses) of defending itself against, or investigating, any claim or liability
      in connection with the exercise or performance of any of its powers or duties
      hereunder. The obligation to indemnify as set forth in this Section 8.2 shall
      survive the termination of this Capital Securities Guarantee.

     

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
 

    ARTICLE
      IX

    MISCELLANEOUS

     

    Section
      9.1  Successors
      and Assigns

     

    All
      guarantees and agreements contained in this Capital Securities Guarantee shall
      bind the successors, assigns, receivers, trustees and representatives of the
      Guarantor and shall inure to the benefit of the Holders then
      outstanding.

    

    Section
      9.2  Amendments

     

    Except
      with respect to any changes that do not materially adversely affect the rights
      of Holders (in which case no consent of Holders will be required), this Capital
      Securities Guarantee may only be amended with the prior approval of the Holders
      of a Majority in liquidation amount of the Capital Securities (including the
      stated amount that would be paid on redemption, liquidation or otherwise, plus
      accrued and unpaid Distributions to the date upon which the voting percentages
      are determined). The provisions of the Declaration with respect to consents
      to
      amendments thereof (whether at a meeting or otherwise) shall apply to the giving
      of such approval.

    

    Section
      9.3  Notices

     

    All
      notices provided for in this Capital Securities Guarantee shall be in writing,
      duly signed by the party giving such notice, and shall be delivered, faxed
      or
      mailed by first class mail, as follows:

    

    (a)  If
      given
      to the Issuer, in care of the Administrative Trustee, at the Issuer’s mailing
      address set forth below (or such other address as the Issuer may give notice
      of
      to the Holders and the Capital Securities Guarantee Trustee):

     

    Commerce
      Harrisburg Capital Trust III c/o Commerce Bank/Harrisburg, N.A., 3801 Paxton
      Street, Harrisburg, PA 17111, Attention:
      Mark Zody, Administrative Trustee.

    

    (b)  If
      given
      to the Capital Securities Guarantee Trustee, at the Capital Securities Guarantee
      Trustee’s mailing address set forth below (or such other address as the Capital
      Securities Guarantee Trustee may give notice of to the Holders and the
      Issuer):

     

    Wilmington
      Trust Company, 1100 North Market Street, Rodney Square North, Wilmington,
      Delaware 19890-0001, Attention: Corporate Trust Administration.

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
 

    (c)  If
      given
      to the Guarantor, at the Guarantor’s mailing address set forth below (or such
      other address as the Guarantor may give notice of to the Holders and the Trust
      Capital Securities Guarantee Trustee):

     

    Pennsylvania
      Commerce Bancorp, Inc., c/o Commerce Bank/Harrisburg, N.A., 3801 Paxton Street,
      Harrisburg, PA 17111,  Attention:
      Mark Zody, Executive Vice President.

    

    (d)  If
      given
      to any Holder, at the address set forth on the books and records of the
      Issuer.

     

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

    

    Section
      9.4  Benefit

     

    This
      Capital Securities Guarantee is solely for the benefit of the Holders and,
      subject to Section 3.1(a), is not separately transferable from the Capital
      Securities.

    

    Section
      9.5  Governing
      Law; Submission to Jurisdiction; Appointment of Agent for Service of
      Process

     

    This
      Capital Securities Guarantee shall be governed by and construed in accordance
      with the laws of the State of Delaware, without regard to principles of conflict
      of laws. The parties hereto hereby declare that it is their intention that
      this
      Capital Securities Guarantee shall be regarded as made under the laws of the
      State of Delaware and that the laws of said State shall be applied in
      interpreting its provisions in all cases where legal interpretation shall be
      required. Each of the parties hereto agrees (a) that this Capital Securities
      Guarantee involves at least $100,000.00, and (b) that this Capital Securities
      Guarantee has been entered into by the parties hereto in express reliance upon
      6
Del.
      C.§
2708.
      Each of the parties hereto hereby irrevocably and unconditionally agrees (a)
      to
      be subject to the jurisdiction of the courts of the State of Delaware and of
      the
      federal courts sitting in the State of Delaware, and (b) (1) to the extent
      such
      party is not otherwise subject to service of process in the State of Delaware,
      to appoint and maintain an agent in the State of Delaware as such party's agent
      for acceptance of legal process, and (2) that, to the fullest extent permitted
      by applicable law, service of process may also be made on such party by prepaid
      certified mail with a proof of mailing receipt validated by the United States
      Postal Service constituting evidence of valid service, and that service made
      pursuant to (b) (1) or (2) above shall, to the fullest extent permitted by
      applicable law, have the same legal force and effect as if served upon such
      party personally within the State of Delaware. 

    

    

    

    
      
        
          

          

        

         

      

      
        16

        
          

        

      

      
         

        
        

      

    

    THIS
      CAPITAL SECURITIES GUARANTEE is executed as of the day and year first above
      written.

    

    PENNSYLVANIA
      COMMERCE BANCORP, INC., as Guarantor

    

    

    By:
      ____________________________

    Name:
       Gary
      L.
      Nalbandian

    Title: President

    

    Wilmington
      Trust Company, as Capital Securities Guarantee Trustee 

    

    

    By:
      _____________________________

    Name:

    Title:

     

     

     

    17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]