Document:

Exhibit 4.3

 

DECLARATION OF TRUST OF

 

Mission Community Capital Trust I

 

THIS
DECLARATION OF TRUST is made as of October 10, 2003, (this “Declaration”), by
and among Mission Community Bancorp, a California, corporation, as sponsor (the
“Sponsor”), and Wells Fargo Delaware Trust Company with its principal place of
business in the State of Delaware, as Delaware trustee (the “Trustee”). The
Sponsor and the Trustee hereby agree as follows:

 

1.                                       The
trust created hereby shall be known as Mission Community Capital Trust I (the
“Trust”), in which name the Trustee or the Sponsor, to the extent provided
herein, may conduct the business of the Trust, make and execute contracts, and
sue and be sued.

 

2.                                       The
Sponsor hereby assigns, transfers, conveys and sets over to the Trust the sum
of $10. The Trustee hereby acknowledges receipt of such amount in trust from
the Sponsor, which amount shall constitute the initial trust estate. The
Trustee hereby declares that it will hold the trust estate in trust for the
Sponsor. It is the intention of the parties hereto that the Trust created
hereby constitute a statutory trust under chapter 38 of Title 12 of the
Delaware Code, 12 Del. C. § 3801, et seq. (the “Statutory Trust Act”), and that
this Declaration constitute the governing instrument of the Trust. The Trustee
is hereby authorized and directed to execute and file a certificate of trust
with the Secretary of State of the State of Delaware in the form attached to
this Declaration.

 

3.                                       The
Sponsor and the Trustee will enter into an amended and restated Declaration of
Trust satisfactory to each such party to provide for the contemplated operation
of the Trust created hereby and the issuance by the Trust of the Capital
Securities and Common Securities referred to therein. Prior to the execution
and delivery of such amended and restated Declaration of Trust (i) the Trustee
shall not have any duty or obligation hereunder or with respect to the trust
estate, except as otherwise required by applicable law, and (ii) the Sponsor
shall take or cause to be taken any action as may be necessary to obtain prior
to such execution and delivery any licenses, consents or approvals required by
applicable law or otherwise. Notwithstanding the foregoing, the Trustee may
take all actions which the Sponsor deems necessary, convenient or incidental to
effect the transactions contemplated herein. The Trustee shall not have any
duty or obligation under or in connection with this Declaration or any document
contemplated hereby, except as expressly provided by the terms of this
Declaration, and no implied duties or obligations shall be read into this
Declaration against the Trustee. The right of the Trustee to perform any
discretionary act enumerated herein shall not be construed as a duty.

 

4.                                       The
Sponsor hereby agrees to (i) reimburse the Trustee for all reasonable expenses
(including reasonable fees and expenses of counsel and other experts), (ii)
indemnify, defend and hold harmless the Trustee and the officers, directors,
employees and agents of the Trustee (collectively, including the Trustee in its
individual capacity, the “Indemnified Persons”) from and against any and all
losses, damages, liabilities, claims, actions, suits, costs, expenses,
disbursements (including the reasonable fees and expenses of counsel), taxes
and penalties of 

 

 

any kind and
nature whatsoever (collectively, “Expenses”), to the extent that such Expenses
arise out of or are imposed upon or asserted at any time against such
Indemnified Persons with respect to the performance of this Declaration, the
creation, operation, administration or termination of the Trust, or the
transactions contemplated hereby; provided, however,  that
the Sponsor shall not be required to indemnify an Indemnified Person for
Expenses to the extent such Expenses result from the willful misconduct, bad
faith or gross negligence of such Indemnified Person, and (iii) advance to each
such Indemnified Person Expenses incurred by such Indemnified Person, in
defending any claim, demand, action, suit or proceeding prior to the final
disposition of such claim, demand, action, suit or proceeding upon receipt by
the Sponsor of an undertaking, by or on behalf of such Indemnified Person, to
repay such amount if it shall be determined that such Indemnified Person is not
entitled to be indemnified therefor under this Section 4. The obligations of
the Sponsor under this Section 4 shall survive the resignation or removal of
the Trustee, shall survive the termination, amendment, supplement, and/or
restatement of this Declaration, and shall survive the transfer by the Sponsor
of any or all of its interest in the Trust pursuant to Section 5 below or
otherwise.

 

5.                                       The
Sponsor, as sponsor of the Trust, is hereby authorized, in its discretion, (i)
to prepare, execute and file on behalf of the Trust, such applications,
reports, surety bonds, irrevocable consents, appointments of attorney for
service of process and other papers and documents that shall be necessary or
desirable to register or establish the exemption from registration of the
Capital Securities of the Trust under the securities or “Blue Sky” laws of such
jurisdictions as the Sponsor, on behalf of the Trust, may deem necessary or
desirable; (ii) to negotiate, execute, deliver and perform on behalf of the
Trust one or more placement agent agreements, dealer/manager agreements, escrow
agreements, subscription agreements and other similar or related agreements
providing for or relating to the sale and issuance of the Capital Securities of
the Trust and/or any other interests in the Trust; (iii) to prepare, execute
and deliver on behalf of the Trust any and all documents, certificates, papers,
instruments and other writings as it deems desirable in connection with any of
the foregoing; and (iv) to prepare, execute and deliver letters or documents
to, or instruments for filing with, a depository relating to the Capital
Securities of the Trust as it deems necessary or desirable.

 

In the event
that any filing referred to in this Section 5 is required by the rules and
regulations of Securities and Exchange Commission (the “Commission”) or state
securities or Blue Sky laws to be executed on behalf of the Trust by a trustee,
the Trustee, in its capacity as a trustee of the Trust, so required to execute
such filings is hereby authorized and, to the extent so required, directed to
join in any such filing and to execute on behalf of the Trust any and all of
the foregoing, it being understood that the Trustee, in its capacity as a
trustee of the Trust, shall not be required to join in any such filing or
execute on behalf of the Trust any such document unless required to do so by
the rules and regulations of the Commission or applicable state securities or
Blue Sky laws.

 

6.                                       The
Trustee is authorized to take such action or refrain from taking such action
under this Declaration as it may be directed in writing by the Sponsor from
time to time; provided, however,  that the Trustee shall
not be required to take or refrain from taking any such action if the Trustee
shall have determined, or shall have been advised by counsel, that such
performance is likely to involve the Trustee in personal liability or is
contrary to the terms of this Declaration or of any document contemplated
hereby to which the Trust or the Trustee is a party 

 

2

 

or is
otherwise contrary to law. If at any time the Trustee determines that it
requires or desires guidance regarding the application of any provision of this
Declaration or any other document, or regarding compliance with any direction
it received hereunder, then the Trustee may deliver a notice to the Sponsor
requesting written instructions as to the course of action desired by the
Sponsor, and such instructions shall constitute full and complete authorization
and protection for actions taken and other performance by the Trustee in
reliance thereon. Until the Trustee has received such instructions after
delivering such notice, it may refrain from taking any action with respect to
the matters described in such notice.

 

7.                                       This
Declaration may be executed in two or more counterparts.

 

8.                                       The
number of trustees of the Trust initially shall be one (1), and thereafter the
number of trustees of the Trust shall be such number as shall be fixed from
time to time by a written instrument signed by the Sponsor which may increase
or decrease the number of trustees of the Trust; provided, however,to the extent required by the Statutory Trust Act, there shall at all times
be one trustee of the Trust that shall either be a natural person who is a
resident of the State of Delaware or, if not a natural person, an entity which
has its principal place of business in the State of Delaware and otherwise
meets the requirements of applicable Delaware law. Subject to the foregoing,
the Sponsor is entitled to appoint or remove without cause any trustee of the
Trust at any time. Any trustee of the Trust may resign upon thirty (30) days
prior notice to the Sponsor.

 

9.                                       This
Declaration shall be governed by, and construed in accordance with, the laws of
the State of Delaware (without regard to conflict of laws principles).

 

[SIGNATURE PAGE FOLLOWS]

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this Declaration of
Trust to be duly executed as of the day and year first above written.

 

	
   

  	
  Mission Community Bancorp

  
	
   

  	
  as Sponsor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO DELAWARE TRUST COMPANY,

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

4Exhibit 4.4

 

 

AMENDED AND RESTATED DECLARATION

 

OF TRUST

 

Mission Community Capital Trust I

 

Dated as of October 14, 2003

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
  INTERPRETATION
  AND DEFINITIONS

  
	
   

  	
   

  
	
  SECTION 1.1.

  	
  Definitions

  
	
   

  	
   

  
	
  ARTICLE II

  
	
  ORGANIZATION

  
	
   

  	
   

  
	
  SECTION 2.1.

  	
  Name

  
	
   

  	
   

  
	
  SECTION 2.2.

  	
  Office

  
	
   

  	
   

  
	
  SECTION 2.3.

  	
  Purpose

  
	
   

  	
   

  
	
  SECTION 2.4.

  	
  Authority

  
	
   

  	
   

  
	
  SECTION 2.5.

  	
  Title to Property of the Trust

  
	
   

  	
   

  
	
  SECTION 2.6.

  	
  Powers and Duties of the Trustees and the
  Administrators

  
	
   

  	
   

  
	
  SECTION 2.7.

  	
  Prohibition of Actions by the Trust and
  the Trustees

  
	
   

  	
   

  
	
  SECTION 2.8.

  	
  Powers and Duties of the Institutional
  Trustee

  
	
   

  	
   

  
	
  SECTION 2.9.

  	
  Certain Duties and Responsibilities of the
  Trustees and the Administrators

  
	
   

  	
   

  
	
  SECTION 2.10.

  	
  Certain Rights of Institutional Trustee

  
	
   

  	
   

  
	
  SECTION 2.11.

  	
  Delaware Trustee

  
	
   

  	
   

  
	
  SECTION 2.12.

  	
  Execution of Documents

  
	
   

  	
   

  
	
  SECTION 2.13.

  	
  Not Responsible for Recitals or Issuance
  of Securities

  
	
   

  	
   

  
	
  SECTION 2.14.

  	
  Duration of Trust

  
	
   

  	
   

  
	
  SECTION 2.15.

  	
  Mergers

  
	
   

  	
   

  
	
  ARTICLE III

  
	
  SPONSOR

  
	
   

  	
   

  
	
  SECTION 3.1.

  	
  Sponsor’s Purchase of Common Securities

  
	
   

  	
   

  
	
  SECTION 3.2.

  	
  Responsibilities of the Sponsor

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
  TRUSTEES AND
  ADMINISTRATORS

  
	
   

  	
   

  
	
  SECTION 4.1.

  	
  Number of Trustees

  
	
   

  	
   

  
	
  SECTION 4.2.

  	
  Delaware Trustee

  
	
   

  	
   

  
	
  SECTION 4.3.

  	
  Institutional Trustee; Eligibility

  
	
   

  	
   

  
	
  SECTION 4.4.

  	
  Certain Qualifications of the Delaware
  Trustee Generally

  
	
   

  	
   

  
	
  SECTION 4.5.

  	
  Administrators

  
	
   

  	
   

  
	
  SECTION 4.6.

  	
  Initial Delaware Trustee

  

 

i

 

	
  SECTION 4.7.

  	
  Appointment, Removal and Resignation of the
  Trustees and the Administrators

  
	
   

  	
   

  
	
  SECTION 4.8.

  	
  Vacancies Among Trustees

  
	
   

  	
   

  
	
  SECTION 4.9.

  	
  Effect of Vacancies

  
	
   

  	
   

  
	
  SECTION 4.10.

  	
  Meetings of the Trustees and the
  Administrators

  
	
   

  	
   

  
	
  SECTION 4.11.

  	
  Delegation of Power

  
	
   

  	
   

  
	
  SECTION 4.12.

  	
  Merger, Conversion, Consolidation or
  Succession to Business

  
	
   

  	
   

  
	
  ARTICLE V

  
	
  DISTRIBUTIONS

  
	
   

  	
   

  
	
  SECTION 5.1.

  	
  Distributions

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
  ISSUANCE OF
  SECURITIES

  
	
   

  	
   

  
	
  SECTION 6.1.

  	
  General Provisions Regarding Securities

  
	
   

  	
   

  
	
  SECTION 6.2.

  	
  Paying Agent, Transfer Agent, Calculation
  Agent and Registrar

  
	
   

  	
   

  
	
  SECTION 6.3.

  	
  Form and Dating

  
	
   

  	
   

  
	
  SECTION 6.4.

  	
  Mutilated, Destroyed, Lost or Stolen
  Certificates

  
	
   

  	
   

  
	
  SECTION 6.5.

  	
  Temporary Securities

  
	
   

  	
   

  
	
  SECTION 6.6.

  	
  Cancellation

  
	
   

  	
   

  
	
  SECTION 6.7.

  	
  Rights of Holders; Waivers of Past Defaults

  
	
   

  	
   

  
	
  ARTICLE
  VII

  
	
  DISSOLUTION
  AND TERMINATION OF TRUST

  
	
   

  	
   

  
	
  SECTION 7.1.

  	
  Dissolution and Termination of Trust

  
	
   

  	
   

  
	
  ARTICLE VIII

  
	
  TRANSFER OF
  INTERESTS

  
	
   

  	
   

  
	
  SECTION 8.1.

  	
  General

  
	
   

  	
   

  
	
  SECTION 8.2.

  	
  Transfer Procedures and Restrictions

  
	
   

  	
   

  
	
  SECTION 8.3.

  	
  Deemed Security Holders

  
	
   

  	
   

  
	
  ARTICLE
  IX

  
	
  LIMITATION
  OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

  
	
   

  	
   

  
	
  SECTION 9.1.

  	
  Liability

  
	
   

  	
   

  
	
  SECTION 9.2.

  	
  Exculpation

  
	
   

  	
   

  
	
  SECTION 9.3.

  	
  Fiduciary Duty

  
	
   

  	
   

  
	
  SECTION 9.4.

  	
  Indemnification

  

 

ii

 

	
  SECTION 9.5.

  	
  Outside Businesses

  
	
   

  	
   

  
	
  SECTION 9.6.

  	
  Compensation; Fee

  
	
   

  	
   

  
	
  ARTICLE X

  
	
  ACCOUNTING

  
	
   

  	
   

  
	
  SECTION 10.1.

  	
  Fiscal Year

  
	
   

  	
   

  
	
  SECTION 10.2.

  	
  Certain Accounting Matters

  
	
   

  	
   

  
	
  SECTION 10.3.

  	
  Banking

  
	
   

  	
   

  
	
  SECTION 10.4.

  	
  Withholding

  
	
   

  	
   

  
	
  ARTICLE XI

  
	
  AMENDMENTS AND
  MEETINGS

  
	
   

  	
   

  
	
  SECTION 11.1.

  	
  Amendments

  
	
   

  	
   

  
	
  SECTION 11.2.

  	
  Meetings of the Holders of the
  Securities; Action by Written Consent

  
	
   

  	
   

  
	
  ARTICLE
  XII

  
	
  REPRESENTATIONS
  OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

  
	
   

  	
   

  
	
  SECTION 12.1.

  	
  Representations and Warranties of
  Institutional Trustee

  
	
   

  	
   

  
	
  SECTION 12.2.

  	
  Representations and Warranties of
  Delaware Trustee

  
	
   

  	
   

  
	
  ARTICLE XIII

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  SECTION 13.1.

  	
  Notices

  
	
   

  	
   

  
	
  SECTION 13.2.

  	
  Governing Law

  
	
   

  	
   

  
	
  SECTION 13.3.

  	
  Submission to Jurisdiction

  
	
   

  	
   

  
	
  SECTION 13.4.

  	
  Intention of the Parties

  
	
   

  	
   

  
	
  SECTION 13.5.

  	
  Headings

  
	
   

  	
   

  
	
  SECTION 13.6.

  	
  Successors and Assigns

  
	
   

  	
   

  
	
  SECTION 13.7.

  	
  Partial Enforceability

  
	
   

  	
   

  
	
  SECTION 13.8.

  	
  Counterparts

  

 

iii

 

	
  ANNEXES AND EXHIBITS

  
	
   

  	
   

  
	
  ANNEX I

  	
  Terms
  of TP Securities and Common Securities

  
	
   

  	
   

  
	
  EXHIBIT
  A-1

  	
  Form
  of Capital Security Certificate

  
	
  EXHIBIT
  A-2

  	
  Form
  of Common Security Certificate

  
	
  EXHIBIT
  B

  	
  Form
  of Transferee Certificate to be Executed by Transferees Other than QIBs

  
	
  EXHIBIT
  C

  	
  Form
  of Transferor Certificate to be Executed for QIBs

  

 

iv

 

AMENDED AND RESTATED DECLARATION OF TRUST

 

OF

 

Mission Community Capital Trust I

 

October 14, 2003

 

AMENDED AND
RESTATED DECLARATION OF TRUST (this “Declaration”), dated and effective as of October 14,
2003, by the Trustees (as defined herein), the Administrators (as defined
herein), the Sponsor (as defined herein) and the holders from time to time of
undivided beneficial interests in the assets of the Trust (as defined herein)
to be issued pursuant to this Declaration.

 

WHEREAS,
certain of the Trustees, the Administrators and the Sponsor established Mission
Community Capital Trust I (the “Trust”), a statutory trust under the Statutory
Trust Act (as defined herein), pursuant to a Declaration of Trust, dated as of October 10,
2003, (the “Original Declaration”), and a Certificate of Trust filed with the
Secretary of State of the State of Delaware on October 10, 2003, for the
sole purpose of issuing and selling certain securities representing undivided
beneficial interests in the assets of the Trust and investing the proceeds
thereof in certain debentures of the Debenture Issuer (as defined herein) in
connection with the Bear, Stearns Securities Corp. transaction;

 

WHEREAS, as of
the date hereof, no interests in the assets of the Trust have been issued; and

 

WHEREAS, all
of the Trustees, the Administrators and the Sponsor, by this Declaration, amend
and restate each and every term and provision of the Original Declaration.

 

NOW,
THEREFORE, it being the intention of the parties hereto to continue the Trust
as a statutory trust under the Statutory Trust Act and that this Declaration
constitutes the governing instrument of such statutory trust, and that all
assets contributed to the Trust will be held in trust for the benefit of the
holders, from time to time, of the securities representing undivided beneficial
interests in the assets of the Trust issued hereunder, subject to the
provisions of this Declaration, and, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties, intending to be legally bound
hereby, amend and restate in its entirety the Original Declaration and agree as
follows:

 

ARTICLE I

INTERPRETATION AND DEFINITIONS

 

SECTION 1.1.  Definitions.  Unless the context otherwise requires:

 

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

 

 

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

 

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

 

(d)                                 all
references in this Declaration to Articles and Sections and Annexes and
Exhibits are to Articles and Sections of and Annexes and Exhibits to this
Declaration unless otherwise specified;

 

(e)                                  a
term defined in the Trust Indenture Act (as defined herein) has the same
meaning when used in this Declaration unless otherwise defined in this
Declaration or unless the context otherwise requires; and

 

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

 

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

 

“Administrative
Action” has the meaning set forth in paragraph 4(a) of Annex I.

 

“Administrators”
means each of Anita M. Robinson and William C. Demmin, solely in such Person’s
capacity as Administrator of the Trust continued hereunder and not in such
Person’s individual capacity, or such Administrator’s successor in interest in
such capacity, or any successor appointed as herein provided.

 

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

 

“Authorized
Officer” of a Person means any Person that is authorized to bind such Person.

 

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

 

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

 

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

 

2

 

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

 

“Calculation
Agent” has the meaning set forth in Section 1.01 of the Indenture.

 

“Capital
Securities” has the meaning set forth in Section 6.1(a).

 

“Capital
Security Certificate” means a definitive Certificate registered in the name of
the Holder representing a Capital Security substantially in the form of Exhibit
A 1.

 

“Capital
Treatment Event” has the meaning set forth in paragraph 4(a) of Annex I.

 

“Certificate”
means any certificate evidencing Securities.

 

“Certificate
of Trust” means the certificate of trust filed with the Secretary of State of
the State of Delaware with respect to the Trust, as amended and restated from
time to time.

 

“Closing Date”
has the meaning set forth in the Purchase Agreement.

 

“Code” means
the Internal Revenue Code of 1986, as amended from time to time, or any
successor legislation.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Securities” has the meaning set forth in Section 6.1(a).

 

“Common
Security Certificate” means a definitive Certificate registered in the name of
the Holder representing a Common Security substantially in the form of Exhibit
A-2.

 

“Company
Indemnified Person” means (a) any Administrator; (b) any Affiliate of any
Administrator; (c) any officers, directors, shareholders, members, partners,
employees, representatives or agents of any Administrator; or (d) any officer,
employee or agent of the Trust or its Affiliates.

 

“Corporate
Trust Office” means the office of the Institutional Trustee at which the
corporate trust business of the Institutional Trustee shall, at any particular
time, be principally administered, which office shall at all times be located
in the United States and at the date of execution of this Declaration is
located at 919 Market Street Suite 700 Wilmington, DE 19801, Attention:
Corporate Trust Division.

 

“Coupon Rate”
has the meaning set forth in paragraph 2(a) of Annex I.

 

“Covered
Person” means: (a) any Administrator, officer, director, shareholder, partner,
member, representative, employee or agent of (i) the Trust or (ii) the Trust’s
Affiliates; and (b) any Holder of Securities.

 

“Debenture
Issuer” means Mission Community Bancorp, a bank holding company incorporated in
California, in its capacity as issuer of the Debentures under the Indenture.

 

3

 

“Debenture
Trustee” means Wells Fargo Bank, National Association, a national banking
association with its principal place of business in the State of Delaware, not
in its individual capacity but solely as trustee under the Indenture until a
successor is appointed thereunder, and thereafter means such successor trustee.

 

“Debentures”
means the Junior Subordinated Debt Securities due October 7, 2033 to be
issued by the Debenture Issuer under the Indenture.

 

“Deferred
Interest” means any interest on the Debentures that would have been overdue and
unpaid for more than one Distribution Payment Date but for the imposition of an
Extension Period, and the interest that shall accrue (to the extent that the
payment of such interest is legally enforceable) on such interest at the Coupon
Rate in effect for each such Extension Period, compounded quarterly from the
date on which such Deferred Interest would otherwise have been due and payable
until paid or made available for payment.

 

“Definitive
Capital Securities” means any Capital Securities in definitive form issued by
the Trust.

 

“Delaware
Trustee” has the meaning set forth in Section 4.2.

 

“Direct
Action” has the meaning set forth in Section 2.8(e).

 

“Distribution”
means a distribution payable to Holders of Securities in accordance with
Section 5.1.

 

“Distribution
Payment Date” has the meaning set forth in paragraph 2(e) of Annex I.

 

“Event of
Default” means the occurrence of an Indenture Event of Default.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, or any
successor legislation.

 

“Extension
Period” has the meaning set forth in paragraph 2(e) of Annex I.

 

“Federal
Reserve” has the meaning set forth in paragraph 3 of Annex I.

 

“Fiduciary
Indemnified Person” shall mean each of the Institutional Trustee (including in
its individual capacity), the Delaware Trustee (including in its individual
capacity), any Affiliate of the Institutional Trustee or the Delaware Trustee,
and any officers, directors, shareholders, members, partners, employees,
representatives, custodians, nominees or agents of the Institutional Trustee or
the Delaware Trustee.

 

“Fiscal Year”
has the meaning set forth in Section 10.1.

 

“Guarantee”
means the Guarantee Agreement, dated as of October 14, 2003, of the
Sponsor in respect of the Capital Securities.

 

4

 

“Holder” means
a Person in whose name a Certificate representing a Security is registered on
the register maintained by or on behalf of the Registrar, such Person being a
beneficial owner within the meaning of the Statutory Trust Act.

 

“Indemnified
Person” means a Company Indemnified Person or a Fiduciary Indemnified Person.

 

“Indenture” means
the Indenture, dated as of October 14, 2003, among the Debenture Issuer
and the Debenture Trustee, and any indenture supplemental thereto pursuant to
which the Debentures are to be issued.

 

“Indenture
Event of Default” means an “Event of Default” as defined in the Indenture.

 

“Initial
Purchaser” means the initial purchaser of the Capital Securities.

 

“Institutional
Trustee” means the Trustee meeting the eligibility requirements set forth in
Section 4.3.

 

“Investment
Company” means an investment company as defined in the Investment Company Act.

 

“Investment
Company Act” means the Investment Company Act of 1940, as amended from time to
time, or any successor legislation.

 

“Investment
Company Event” has the meaning set forth in paragraph 4(a) of Annex I.

 

“Legal Action”
has the meaning set forth in Section 2.8(e).

 

“LIBOR” means
the London Interbank Offered Rate for U.S. Dollar deposits in Europe as
determined by the Calculation Agent according to paragraph 2(b) of Annex I.

 

“LIBOR Banking
Day” has the meaning set forth in paragraph 2(b)(1) of Annex I.

 

“LIBOR
Business Day” has the meaning set forth in paragraph 2(b)(1) of Annex I.

 

“LIBOR
Determination Date” has the meaning set forth in paragraph 2(b)(1) of Annex I.

 

“Liquidation”
has the meaning set forth in paragraph 3 of Annex I.

 

“Liquidation
Distribution” has the meaning set forth in paragraph 3 of Annex I.

 

“Majority in
liquidation amount of the Securities” means Holders of outstanding Securities
voting together as a single class or, as the context may require, Holders of
outstanding Capital Securities or Holders of outstanding Common Securities
voting separately as a class, who are the record owners of more than 50% of the
aggregate liquidation amount (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) of all outstanding
Securities of the relevant class.

 

5

 

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

 

“Officers’
Certificate” means, with respect to any Person, a certificate signed by two
Authorized Officers of such Person. Any Officers’ Certificate delivered with
respect to compliance with a condition or covenant provided for in this
Declaration shall include:

 

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

 

(d)                                 a
brief statement of the nature and scope of the examination or investigation
undertaken by each officer in rendering the Officers’ Certificate;

 

(e)                                  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

 

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

 

“Paying Agent”
has the meaning set forth in Section 6.2.

 

“Payment
Amount” has the meaning set forth in Section 5.1.

 

“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.

 

“Purchase
Agreement” means the Purchase Agreement relating to the offering and sale of
Capital Securities.

 

“PORTAL” has
the meaning set forth in Section 2.6(a)(í).

 

“Property
Account” has the meaning set forth in Section 2.8(c).

 

“Pro Rata” has
the meaning set forth in paragraph 8 of Annex I.

 

“QIB” means a
“qualified institutional buyer” as defined under Rule 144A.

 

“Quorum” means
a majority of the Administrators or, if there are only two Administrators, both
of them.

 

“Redemption/Distribution
Notice” has the meaning set forth in paragraph 4(e) of Annex I.

 

“Redemption
Price” has the meaning set forth in paragraph 4(a) of Annex I.

 

“Registrar”
has the meaning set forth in Section 6.2.

 

6

 

“Relevant
Trustee” has the meaning set forth in Section 4.7(a).

 

“Responsible
Officer” means, with respect to the Institutional Trustee, any officer within
the Corporate Trust Office of the Institutional Trustee with direct
responsibility for the administration of this Declaration, including any
vice-president, any assistant vice-president, any secretary, any assistant
secretary, the treasurer, any assistant treasurer, any trust officer or other
officer of the Corporate Trust Office of the Institutional Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of that officer’s
knowledge of and familiarity with the particular subject.

 

“Restricted
Securities Legend” has the meaning set forth in Section 8.2(c). “Rule
144A” means Rule 144A under the Securities Act.

 

“Rule 3a-5”
means Rule 3a-5 under the Investment Company Act. “Rule 3a-7” means Rule 3a-7
under the Investment Company Act. “Securities” means the Common Securities and
the Capital Securities.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, or any
successor legislation.

 

“Sponsor”
means Mission Community Bancorp, a bank holding company that is a U.S. Person
incorporated in California, or any successor entity in a merger, consolidation
or amalgamation that is a U.S. Person, in its capacity as sponsor of the Trust.

 

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

 

“Successor
Delaware Trustee” has the meaning set forth in Section 4.7(e).

 

“Successor
Entity” has the meaning set forth in Section 2.15(b).

 

“Successor
Institutional Trustee” has the meaning set forth in Section 4.7(b).

 

“Successor
Securities” has the meaning set forth in Section 2.15(b).

 

“Super
Majority” has the meaning set forth in paragraph 5(b) of Annex I.

 

“Tax Event”
has the meaning set forth in paragraph 4(a) of Annex I.

 

“10% in
liquidation amount of the Securities” means Holders of outstanding Securities
voting together as a single class or, as the context may require, Holders of
outstanding Capital Securities or Holders of outstanding Common Securities
voting separately as a class, who are the record owners of 10% or more of the
aggregate liquidation amount (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) of all outstanding
Securities of the relevant class.

 

7

 

“Transfer
Agent” has the meaning set forth in Section 6.2.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended from
time-to-time, or any successor legislation.

 

“Trustee” or
“Trustees” means each Person who has signed this Declaration as a trustee, so
long as such Person shall continue in office in accordance with the terms
hereof, and all other Persons who may from time to time be duly appointed,
qualified and serving as Trustees in accordance with the provisions hereof, and
references herein to a Trustee or the Trustees shall refer to such Person or
Persons solely in their capacity as trustees hereunder.

 

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

 

“U.S. Person”
means a United States Person as defined in Section 7701(a)(30) of the
Code.

 

ARTICLE
II

ORGANIZATION

 

SECTION 2.1.  Name.  The Trust is named “Mission Community
Capital Trust I,” as such name may be modified from time to time by the
Administrators following written notice to the Institutional Trustee and the
Holders of the Securities. The Trust’s activities may be conducted under the
name of the Trust or any other name deemed advisable by the Administrators.

 

SECTION 2.2.  Office.  The address of the principal office of the
Trust, which shall be in a state of the United States or the District of
Columbia, is 581 Higuera Street, San Luis Obispo, CA 93401. On ten Business
Days’ written notice to the Institutional Trustee and the Holders of the
Securities, the Administrators may designate another principal office, which
shall be in a state of the United States or the District of Columbia.

 

SECTION 2.3.  Purpose.  The exclusive purposes and functions of the
Trust are (a) to issue and sell the Securities representing undivided
beneficial interests in the assets of the Trust, (b) to invest the gross
proceeds from such sale in the Debentures and (c) except as otherwise limited
herein, to engage in only those other activities incidental thereto that are
deemed necessary or advisable by the Institutional Trustee, including, without
limitation, those activities specified in this Declaration. The Trust shall not
borrow money, issue debt or reinvest proceeds derived from investments, pledge
any of its assets, or otherwise undertake (or permit to be undertaken) any
activity that would cause the Trust not to be classified for United States
federal income tax purposes as a grantor trust.

 

SECTION 2.4.  Authority.  Except as specifically provided in this
Declaration, the Institutional Trustee shall have exclusive and complete
authority to carry out the purposes of the Trust. An action taken by a Trustee
on behalf of the Trust and in accordance with such Trustee’s powers shall
constitute the act of and serve to bind the Trust. In dealing with the Trustees
acting

 

8

 

on behalf of the Trust, no Person shall be required to
inquire into the authority of the Trustees to bind the Trust. Persons dealing
with the Trust are entitled to rely conclusively on the power and authority of
the Trustees as set forth in this Declaration. The Administrators shall have
only those ministerial duties set forth herein with respect to accomplishing
the purposes of the Trust and are not intended to be trustees or fiduciaries
with respect to the Trust or the Holders. The Institutional Trustee shall have
the right, but shall not be obligated except as provided in Section 2.6,
to perform those duties assigned to the Administrators.

 

SECTION 2.5.  Title
to Property of the Trust.  Except as
provided in Section 2.6(g) and Section 2.8 with respect to the
Debentures and the Property Account or as otherwise provided in this
Declaration, legal title to all assets of the Trust shall be vested in the
Trust. The Holders shall not have legal title to any part of the assets of the
Trust, but shall have an undivided beneficial interest in the assets of the
Trust.

 

SECTION 2.6.  Powers
and Duties of the Trustees and the Administrators.

 

(a)                                  The
Trustees and the Administrators shall conduct the affairs of the Trust in
accordance with the terms of this Declaration. Subject to the limitations set
forth in paragraph (b) of this Section, and in accordance with the following
provisions (i) and (ii), the Administrators and, at the direction of the
Administrators, the Trustees, shall have the authority to enter into all
transactions and agreements determined by the Administrators to be appropriate
in exercising the authority, express or implied, otherwise granted to the
Trustees or the Administrators, as the case may be, under this Declaration, and
to perform all acts in furtherance thereof, including without limitation, the
following:

 

(i)                                     Each
Administrator shall have the power, duty and authority, and is hereby
authorized, to act on behalf of the Trust with respect to the following
matters:

 

(A)                              the
issuance and sale of the Securities;

 

(B)                                to
cause the Trust to enter into, and to execute, deliver and perform on behalf of
the Trust, such agreements as may be necessary or desirable in connection with
the purposes and function of the Trust, including agreements with the Paying
Agent, a Debenture subscription agreement between the Trust and the Sponsor and
a Common Securities subscription agreement between the Trust and the Sponsor;

 

(C)                                ensuring
compliance with the Securities Act and applicable state securities or blue sky
laws;

 

(D)                               if
and at such time determined solely by the Sponsor at the request of the
Holders, assisting in the designation of the Capital Securities for trading in
the Private Offering, Resales and Trading through the Automatic Linkages
(“PORTAL”) system if available;

 

(E)                                 the
sending of notices (other than notices of default) and other information
regarding the Securities and the Debentures to the

 

9

 

Holders in accordance
with this Declaration, including notice of any notice received from the
Debenture Issuer of its election to defer payments of interest on the
Debentures by extending the interest payment period under the Indenture;

 

(F)                                 the
appointment of a Paying Agent, Transfer Agent and Registrar in accordance with
this Declaration;

 

(G)                                execution
and delivery of the Securities in accordance with this Declaration;

 

(H)                               execution
and delivery of closing certificates pursuant to the Purchase Agreement and the
application for a taxpayer identification number;

 

(I)                                    unless
otherwise determined by the Holders of a Majority in liquidation amount of the
Securities or as otherwise required by the Statutory Trust Act, to execute on
behalf of the Trust (either acting alone or together with any or all of the
Administrators) any documents that the Administrators have the power to execute
pursuant to this Declaration;

 

(J)                                   the
taking of any action incidental to the foregoing as the Sponsor or an
Administrator may from time to time determine is necessary or advisable to give
effect to the terms of this Declaration for the benefit of the Holders (without
consideration of the effect of any such action on any particular Holder);

 

(K)                               to
establish a record date with respect to all actions to be taken hereunder that
require a record date be established, including Distributions, voting rights,
redemptions and exchanges, and to issue relevant notices to the Holders of
Capital Securities and Holders of Common Securities as to such actions and
applicable record dates;

 

(L)                                 to
duly prepare and file on behalf of the Trust all applicable tax returns and tax
information reports that are required to be filed with respect to the Trust;

 

(M)                            to
negotiate the terms of, and the execution and delivery of, the Purchase
Agreement providing for the sale of the Capital Securities;

 

(N)                               to
employ or otherwise engage employees, agents (who may be designated as officers
with titles), managers, contractors, advisors, attorneys and consultants and
pay reasonable compensation for such services;

 

(O)                               to
incur expenses that are necessary or incidental to carry out any of the
purposes of the Trust;

 

10

 

(P)                                 to
give the certificate required by § 314(a)(4) of the Trust Indenture Act to the
Institutional Trustee, which certificate may be executed by an Administrator;
and

 

(Q)                               to
take all action that may be necessary or appropriate for the preservation and
the continuation of the Trust’s valid existence, rights, franchises and
privileges as a statutory trust under the laws of each jurisdiction (other than
the State of Delaware) in which such existence is necessary to protect the
limited liability of the Holders of the Capital Securities or to enable the
Trust to effect the purposes for which the Trust was created.

 

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

 

(A)                              the
establishment of the Property Account;

 

(B)                                the
receipt of the Debentures;

 

(C)                                the
collection of interest, principal and any other payments made in respect of the
Debentures in the Property Account;

 

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

 

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

 

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

 

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

 

(H)                               to
the extent provided in this Declaration, the winding up of the affairs of and
liquidation of the Trust and the preparation, execution and filing of the
certificate of cancellation with the Secretary of State of the State of
Delaware;

 

(I)                                    after
any Event of Default (of which the Institutional Trustee has knowledge (as
provided in Section 2.10(m) hereof)) (provided, that such Event of
Default is not by or with respect to the Institutional Trustee), the taking of
any action incidental to the foregoing as the Institutional Trustee may from
time to time determine is necessary or advisable to give effect to the terms of
this Declaration and protect and

 

11

 

conserve the Trust
Property for the benefit of the Holders (without consideration of the effect of
any such action on any particular Holder);

 

(J)                                   to
take all action that may be necessary or appropriate for the preservation and
the continuation of the Trust’s valid existence, rights, franchises and
privileges as a statutory trust under the laws of the State of Delaware to
protect the limited liability of the Holders of the Capital Securities or to
enable the Trust to effect the purposes for which the Trust was created; and

 

(K)                               to
undertake any actions set forth in § 317(a) of the Trust Indenture Act.

 

(iii)                               The
Institutional Trustee shall have the power and authority, and is hereby
authorized, to act on behalf of the Trust with respect to any of the duties,
liabilities, powers or the authority of the Administrators set forth in
Section 2.6(a)(i)(E) and (F) herein but shall not have a duty to do any
such act unless specifically requested to do so in writing by the Sponsor, and
shall then be fully protected in acting pursuant to such written request; and
in the event of a conflict between the action of the Administrators and the
action of the Institutional Trustee, the action of the Institutional Trustee
shall prevail.

 

(b)                                 So
long as this Declaration remains in effect, the Trust (or the Trustees or
Administrators acting on behalf of the Trust) shall not undertake any business,
activities or transaction except as expressly provided herein or contemplated
hereby. In particular, neither the Trustees nor the Administrators may cause
the Trust to (i) acquire any investments or engage in any activities not
authorized by this Declaration, (ii) sell, assign, transfer, exchange,
mortgage, pledge, set-off or otherwise dispose of any of the Trust Property or
interests therein, including to Holders, except as expressly provided herein,
(iii) take any action that would cause (or in the case of the Institutional
Trustee, to the actual knowledge of a Responsible Officer would cause) the
Trust to fail or cease to qualify as a “grantor trust” for United States
federal income tax purposes, (iv) incur any indebtedness for borrowed money or
issue any other debt or (v) take or consent to any action that would result in
the placement of a lien on any of the Trust Property. The Institutional Trustee
shall, at the sole cost and expense of the Trust, defend all claims and demands
of all Persons at any time claiming any lien on any of the Trust Property
adverse to the interest of the Trust or the Holders in their capacity as
Holders.

 

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

 

(i)                                     the
taking of any action necessary to obtain an exemption from the Securities Act;

 

(ii)                                  the
determination of the States in which to take appropriate action to qualify or
register for sale all or part of the Capital Securities and the

 

12

 

determination of any and
all such acts, other than actions which must be taken by or on behalf of the
Trust, and the advisement of and direction to the Trustees of actions they must
take on behalf of the Trust, and the preparation for execution and filing of
any documents to be executed and filed by the Trust or on behalf of the Trust,
as the Sponsor deems necessary or advisable in order to comply with the
applicable laws of any such States in connection with the sale of the Capital
Securities; and

 

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

 

(d)                                 Notwithstanding
anything herein to the contrary, the Administrators, the Institutional Trustee
and the Holders of a Majority in liquidation amount of the Common Securities
are authorized and directed to conduct the affairs of the Trust and to operate
the Trust so that (i) the Trust will not be deemed to be an “investment
company” required to be registered under the Investment Company Act (in the
case of the Institutional Trustee, to the actual knowledge of a Responsible
Officer), and (ii) the Trust will not fail to be classified as a grantor trust
for United States federal income tax purposes (in the case of the Institutional
Trustee, to the actual knowledge of a Responsible Officer) and (iii) the Trust
will not take any action inconsistent with the treatment of the Debentures as
indebtedness of the Debenture Issuer for United States federal income tax
purposes (in the case of the Institutional Trustee, to the actual knowledge of
a Responsible Officer). In this connection, the Institutional Trustee, the
Administrators and the Holders of a Majority in liquidation amount of the
Common Securities are authorized to take any action, not inconsistent with
applicable laws or this Declaration, as amended from time to time, that each of
the Institutional Trustee, the Administrators and such Holders determine in
their discretion to be necessary or desirable for such purposes, even if such action
adversely affects the interests of the Holders of the Capital Securities.

 

(e)                                  All
expenses incurred by the Administrators or the Trustees pursuant to this
Section 2.6 shall be reimbursed by the Sponsor, and the Trustees shall
have no obligations with respect to such expenses.

 

(f)                                    The
assets of the Trust shall consist of the Trust Property.

 

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

 

(h)                                 If
the Institutional Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Declaration and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Institutional Trustee or to such Holder, then and in every such case the
Sponsor, the Institutional Trustee and the Holders shall, subject to any
determination in such proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Institutional Trustee and the Holders shall continue as though no such
proceeding had been instituted.

 

13

 

SECTION 2.7.  Prohibition
of Actions by the Trust and the Trustees.

 

The Trust
shall not, and the Institutional Trustee and the Administrators shall not, and
the Administrators shall cause the Trust not to, engage in any activity other
than as required or authorized by this Declaration. In particular, the Trust
shall not, and the Institutional Trustee and the Administrators shall not cause
the Trust to:

 

(a)                                  invest
any proceeds received by the Trust from holding the Debentures, but shall
distribute all such proceeds to Holders of the Securities pursuant to the terms
of this Declaration and of the Securities;

 

(b)                                 acquire
any assets other than as expressly provided herein;

 

(c)                                  possess
Trust Property for other than a Trust purpose;

 

(d)                                 make
any loans or incur any indebtedness other than loans represented by the
Debentures;

 

(e)                                  possess
any power or otherwise act in such a way as to vary the Trust Property or the
terms of the Securities;

 

(f)                                    issue
any securities or other evidences of beneficial ownership of, or beneficial
interest in, the Trust other than the Securities; or

 

(g)                                 other
than as provided in this Declaration (including Annex I), (i) direct the time,
method and place of exercising any trust or power conferred upon the Debenture
Trustee with respect to the Debentures, (ii) waive any past default that is
waivable under the Indenture, (iii) exercise any right to rescind or annul any
declaration that the principal of all the Debentures shall be due and payable,
or (iv) consent to any amendment, modification or termination of the Indenture
or the Debentures where such consent shall be required unless the Trust shall
have received a written opinion of counsel experienced in such matters to the
effect that such amendment, modification or termination will not cause the
Trust to cease to be classified as a grantor trust for United States federal
income tax purposes.

 

SECTION 2.8.  Powers
and Duties of the Institutional Trustee.

 

(a)                                  The
legal title to the Debentures shall be owned by and held of record in the name
of the Institutional Trustee in trust for the benefit of the Trust. The right,
title and interest of the Institutional Trustee to the Debentures shall vest
automatically in each Person who may hereafter be appointed as Institutional
Trustee in accordance with Section 4.7. Such vesting and cessation of
title shall be effective whether or not conveyancing documents with regard to
the Debentures have been executed and delivered.

 

(b)                                 The
Institutional Trustee shall not transfer its right, title and interest in the
Debentures to the Administrators or to the Delaware Trustee.

 

(c)                                  The
Institutional Trustee shall:

 

14

 

(i)                                     establish
and maintain a segregated non-interest bearing trust account (the “Property
Account”) in the United States (as defined in Treasury Regulations §
301.7701-7), in the name of and under the exclusive control of the
Institutional Trustee, and maintained in the Institutional Trustee’s trust
department, on behalf of the Holders of the Securities and, upon the receipt of
payments of funds made in respect of the Debentures held by the Institutional
Trustee, deposit such funds into the Property Account and make payments to the
Holders of the Capital Securities and Holders of the Common Securities from the
Property Account in accordance with Section 5.1. Funds in the Property
Account shall be held uninvested until disbursed in accordance with this
Declaration;

 

(ii)                                  engage
in such ministerial activities as shall be necessary or appropriate to effect
the redemption of the Capital Securities and the Common Securities to the
extent the Debentures are redeemed or mature; and

 

(iii)                               upon
written notice of distribution issued by the Administrators in accordance with
the terms of the Securities, engage in such ministerial activities as shall be
necessary or appropriate to effect the distribution of the Debentures to
Holders of Securities upon the occurrence of certain circumstances pursuant to
the terms of the Securities.

 

(d)                                 The
Institutional Trustee shall take all actions and perform such duties as may be
specifically required of the Institutional Trustee pursuant to the terms of the
Securities.

 

(e)                                  The
Institutional Trustee may bring or defend, pay, collect, compromise, arbitrate,
resort to legal action with respect to, or otherwise adjust claims or demands
of or against, the Trust (a “Legal Action”) which arise out of or in connection
with an Event of Default of which a Responsible Officer of the Institutional
Trustee has actual knowledge or the Institutional Trustee’s duties and
obligations under this Declaration or the Trust Indenture Act; provided,
however, that if an Event of Default has occurred and is continuing and
such event is attributable to the failure of the Debenture Issuer to pay
interest or principal on the Debentures on the date such interest or principal
is otherwise payable (or in the case of redemption, on the redemption date),
then a Holder of the Capital Securities may directly institute a proceeding for
enforcement of payment to such Holder of the principal of or interest on the
Debentures having a principal amount equal to the aggregate liquidation amount
of the Capital Securities of such Holder (a “Direct Action”) on or after the
respective due date specified in the Debentures. In connection with such Direct
Action, the rights of the Holders of the Common Securities will be subrogated
to the rights of such Holder of the Capital Securities to the extent of any
payment made by the Debenture Issuer to such Holder of the Capital Securities
in such Direct Action; provided, however, that a Holder of the
Common Securities may exercise such right of subrogation only if no Event of
Default with respect to the Capital Securities has occurred and is continuing.

 

15

 

(f)                                    The
Institutional Trustee shall continue to serve as a Trustee until either:

 

(i)                                     the
Trust has been completely liquidated and the proceeds of the liquidation
distributed to the Holders of the Securities pursuant to the terms of the
Securities and this Declaration (including Annex I); or

 

(ii)                                  a
Successor Institutional Trustee has been appointed and has accepted that
appointment in accordance with Section 4.7.

 

(g)                                 The
Institutional Trustee shall have the legal power to exercise all of the rights,
powers and privileges of a holder of the Debentures under the Indenture and, if
an Event of Default occurs and is continuing, the Institutional Trustee may,
for the benefit of Holders of the Securities, enforce its rights as holder of
the Debentures subject to the rights of the Holders pursuant to this
Declaration (including Annex I) and the terms of the Securities.

 

(h)                                 The
Institutional Trustee must exercise the powers set forth in this
Section 2.8 in a manner that is consistent with the purposes and functions
of the Trust set out in Section 2.3, and the Institutional Trustee shall
not take any action that is inconsistent with the purposes and functions of the
Trust set out in Section 2.3.

 

SECTION 2.9.  Certain
Duties and Responsibilities of the Trustees and the Administrators.

 

(a)                                  The
Institutional Trustee, before the occurrence of any Event of Default (of which
the Institutional Trustee has knowledge (as provided in Section 2.10(m)
hereof)) 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 Declaration and no implied covenants shall be read into this Declaration
against the Institutional Trustee. In case an Event of Default (of which the
Institutional Trustee has knowledge (as provided in Section 2.10(m)
hereof)), has occurred (that has not been cured or waived pursuant to
Section 6.7), the Institutional Trustee shall exercise such of the rights
and powers vested in it by this Declaration, 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.

 

(b)                                 The
duties and responsibilities of the Trustees and the Administrators shall be as
provided by this Declaration and, in the case of the Institutional Trustee, by
the Trust Indenture Act. Notwithstanding the foregoing, no provision of this
Declaration shall require any Trustee or Administrator to expend or risk its
own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if
it shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity satisfactory to it against such risk or liability is not
reasonably assured to it. Whether or not therein expressly so provided, every
provision of this Declaration relating to the conduct or affecting the
liability of or affording protection to the Trustees or the Administrators
shall be subject to the provisions of this Article. Nothing in this Declaration
shall be construed to release a Trustee from liability for its own negligent
action, its own negligent failure to act, or its own willful misconduct.
Nothing in this Declaration shall be construed to release an Administrator from
liability for its own gross negligent action, its own gross negligent failure
to act, or its own

 

16

 

willful misconduct. To
the extent that, at law or in equity, a Trustee or an Administrator has duties
and liabilities relating to the Trust or to the Holders, such Trustee or
Administrator shall not be liable to the Trust or to any Holder for such
Trustee’s or Administrator’s good faith reliance on the provisions of this
Declaration. The provisions of this Declaration, to the extent that they
restrict the duties and liabilities of the Administrators or the Trustees
otherwise existing at law or in equity, are agreed by the Sponsor and the
Holders to replace such other duties and liabilities of the Administrators or
the Trustees.

 

(c)                                  All
payments made by the Institutional Trustee or a Paying Agent in respect of the
Securities shall be made only from the revenue and proceeds from the Trust
Property and only to the extent that there shall be sufficient revenue or
proceeds from the Trust Property to enable the Institutional Trustee or a
Paying Agent to make payments in accordance with the terms hereof. Each Holder,
by its acceptance of a Security, agrees that it will look solely to the revenue
and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that the Trustees and the
Administrators are not personally liable to it for any amount distributable in
respect of any Security or for any other liability in respect of any Security.
This Section 2.9(c) does not limit the liability of the Trustees expressly
set forth elsewhere in this Declaration or, in the case of the Institutional
Trustee, in the Trust Indenture Act.

 

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

 

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

 

(ii)                                  the
Institutional 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 not less than a Majority in liquidation amount of the Capital
Securities or the Common Securities, as applicable, relating to the time,
method and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under this Declaration;

 

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

 

(iv)                              the
Institutional Trustee shall not be liable for any interest on any money
received by it except as it may otherwise agree in writing with the

 

17

 

Sponsor; and money held
by the Institutional Trustee need not be segregated from other funds held by it
except in relation to the Property Account maintained by the Institutional
Trustee pursuant to Section 2.8(c)(í) and except to the extent otherwise
required by law; and

 

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

 

SECTION 2.10. 
Certain Rights of Institutional Trustee.  Subject to the provisions of
Section 2.9.

 

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

 

(b)                                 if
(i) in performing its duties under this Declaration, the Institutional Trustee
is required to decide between alternative courses of action, (ii) in construing
any of the provisions of this Declaration, the Institutional Trustee finds the
same ambiguous or inconsistent with any other provisions contained herein, or
(iii) the Institutional Trustee is unsure of the application of any provision
of this Declaration, then, except as to any matter as to which the Holders of
Capital Securities are entitled to vote under the terms of this Declaration,
the Institutional Trustee may deliver a notice to the Sponsor requesting the
Sponsor’s opinion as to the course of action to be taken and the Institutional
Trustee shall take such action, or refrain from taking such action, as the
Institutional Trustee in its sole discretion shall deem advisable and in the
best interests of the Holders, in which event the Institutional Trustee shall
have no liability except for its own negligence or willful misconduct;

 

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

 

(d)                                 whenever
in the administration of this Declaration, the Institutional Trustee shall deem
it desirable that a matter be proved or established before undertaking, suffering
or omitting any action hereunder, the Institutional 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 Sponsor or the
Administrators;

 

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

 

18

 

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

 

(g)                                 the
Institutional Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Declaration at the request or direction
of any of the Holders pursuant to this Declaration, unless such Holders shall
have offered to the Institutional Trustee security or indemnity reasonably
satisfactory to it against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction; provided,
that nothing contained in this Section 2.10(g) shall be taken to relieve
the Institutional Trustee, upon the occurrence of an Event of Default (of which
the Institutional Trustee has knowledge (as provided in Section 2.10(m)
hereof)) that has not been cured or waived, of its obligation to exercise the
rights and powers vested in it by this Declaration;

 

(h)                                 the
Institutional 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,
note or other evidence of indebtedness or other paper or document, unless
requested in writing to do so by one or more Holders, but the Institutional
Trustee may make such further inquiry or investigation into such facts or
matters as it may see fit;

 

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

 

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

 

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

 

(l)                                     when
the Institutional Trustee incurs expenses or renders services in connection
with a Bankruptcy Event, such expenses (including the fees and expenses of its

 

19

 

counsel) and the compensation for such services are
intended to constitute expenses of administration under any bankruptcy law or
law relating to creditors rights generally;

 

(m)                               the
Institutional Trustee shall not be charged with knowledge of an Event of
Default unless a Responsible Officer of the Institutional Trustee has actual
knowledge of such event or the Institutional Trustee receives written notice of
such event from any Holder, except with respect to an Event of Default pursuant
to Sections 5.01 (a) or 5.01 (b) of the Indenture (other than an Event of
Default resulting from the default in the payment of Additional Interest or
premium, if any, if the Institutional Trustee does not have actual knowledge or
written notice that such payment is due and payable), of which the
Institutional Trustee shall be deemed to have knowledge;

 

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

 

(o)                                 no
provision of this Declaration shall be deemed to impose any duty or obligation
on the Institutional 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 Institutional 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 Institutional Trustee shall be
construed to be a duty.

 

SECTION 2.11. 
Delaware Trustee. 
Notwithstanding any other provision of this Declaration other than
Section 4.2, the Delaware Trustee shall not be entitled to exercise any
powers, nor shall the Delaware Trustee have any of the duties and responsibilities
of any of the Trustees or the Administrators described in this Declaration
(except as may be required under the Statutory Trust Act). Except as set forth
in Section 4.2, the Delaware Trustee shall be a Trustee for the sole and
limited purpose of fulfilling the requirements of § 3807 of the Statutory Trust
Act.

 

SECTION 2.12. 
Execution of Documents. 
Unless otherwise determined in writing by the Institutional Trustee, and
except as otherwise required by the Statutory Trust Act, the Institutional Trustee,
or any one or more of the Administrators, as the case may be, is authorized to
execute and deliver on behalf of the Trust any documents, agreements,
instruments or certificates that the Trustees or the Administrators, as the
case may be, have the power and authority to execute pursuant to
Section 2.6.

 

SECTION 2.13. 
Not Responsible for Recitals or Issuance of Securities.  The recitals contained in this Declaration
and the Securities shall be taken as the statements of the Sponsor, and the
Trustees do not assume any responsibility for their correctness. The Trustees
make no representations as to the value or condition of the property of the
Trust or any part thereof. The

 

20

 

Trustees make no representations as to the validity or
sufficiency of this Declaration, the Debentures or the Securities.

 

SECTION 2.14. 
Duration of Trust.  The
Trust, unless dissolved pursuant to the provisions of Article VII hereof,
shall have existence for thirty-five (35) years from the Closing Date.

 

SECTION 2.15. 
Mergers.  (a)  The Trust may not consolidate, amalgamate,
merge with or into, or be replaced by, or convey, transfer or lease its
properties and assets substantially as an entirety to any corporation or other
Person, except as described in this Section 2.15 and except with respect
to the distribution of Debentures to Holders of Securities pursuant to
Section 7.1(a)(iv) of the Declaration or Section 4 of Annex I.

 

(b)                                 The
Trust may, with the consent of the Administrators (which consent will not be
unreasonably withheld) and without the consent of the Institutional Trustee,
the Delaware Trustee or the Holders of the Capital Securities, consolidate,
amalgamate, merge with or into, or be replaced by, or convey, transfer or lease
its properties and assets as an entirety or substantially as an entirety to a
trust organized as such under the laws of any state; provided, that:

 

(i)                                     if
the Trust is not the survivor, such successor entity (the “Successor Entity”)
either:

 

(A)                              expressly
assumes all of the obligations of the Trust under the Securities; or

 

(B)                                substitutes
for the Securities other securities having substantially the same terms as the
Securities (the “Successor Securities”) so that the Successor Securities rank
the same as the Securities rank with respect to Distributions and payments upon
Liquidation, redemption and otherwise;

 

(ii)                                  the
Sponsor expressly appoints, as the holder of the Common Securities, a trustee
of the Successor Entity that possesses the same powers and duties as the
Institutional Trustee;

 

(iii)                               the
Capital Securities or any Successor Securities (excluding any securities
substituted for the Common Securities) are listed or quoted, or any Successor
Securities will be listed or quoted upon notification of issuance, on any
national securities exchange or with another organization on which the Capital
Securities are then listed or quoted, if any;

 

(iv)                              such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not cause the Capital Securities (including any Successor Securities) to
be downgraded by any nationally recognized statistical rating organization, if
the Capital Securities are then rated;

 

(v)                                 such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and

 

21

 

privileges of the Holders
of the Securities (including any Successor Securities) in any material respect
(other than with respect to any dilution of such Holders’ interests in the
Successor Entity as a result of such merger, consolidation, amalgamation or
replacement);

 

(vi)                              such
Successor Entity has a purpose substantially identical to that of the Trust;

 

(vii)                           prior
to such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease, the Trust has received a written opinion of a nationally recognized
independent counsel to the Trust experienced in such matters to the effect
that:

 

(A)                              such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and privileges of the Holders
of the Securities (including any Successor Securities) in any material respect
(other than with respect to any dilution of the Holders’ interests in the
Successor Entity);

 

(B)                                following
such merger, consolidation, amalgamation, replacement, conveyance, transfer or
lease, neither the Trust nor the Successor Entity will be required to register
as an Investment Company; and

 

(C)                                following
such merger, consolidation, amalgamation, replacement, conveyance, transfer or
lease, the Trust (or the Successor Entity) will continue to be classified as a
grantor trust for United States federal income tax purposes;

 

(viii)                        the
Sponsor guarantees the obligations of such Successor Entity under the Successor
Securities to the same extent provided by the Guarantee, the Debentures and
this Declaration; and

 

(ix)                                prior
to such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease, the Institutional Trustee shall have received an Officers’
Certificate of the Administrators and an opinion of counsel, each to the effect
that all conditions precedent of this paragraph (b) to such transaction have
been satisfied.

 

(c)                                  Notwithstanding
Section 2.15(b), the Trust shall not, except with the consent of Holders
of 100% in liquidation amount of the Securities, consolidate, amalgamate, merge
with or into, or be replaced by, or convey, transfer or lease its properties
and assets as an entirety or substantially as an entirety to, any other Person
or permit any other Person to consolidate, amalgamate, merge with or into, or
replace it if such consolidation, amalgamation, merger, replacement,
conveyance, transfer or lease would cause the Trust or Successor Entity to be
classified as other than a grantor trust for United States federal income tax
purposes.

 

22

 

ARTICLE
III

SPONSOR

 

SECTION 3.1.  Sponsor’s
Purchase of Common Securities.  On
the Closing Date, the Sponsor will purchase all of the Common Securities issued
by the Trust, in an amount at least equal to 3% of the capital of the Trust, at
the same time as the Capital Securities are sold.

 

SECTION 3.2.  Responsibilities
of the Sponsor.  In connection with
the issue and sale of the Capital Securities, the Sponsor shall have the
exclusive right and responsibility and sole decision to engage in, or direct
the Administrators to engage in, the following activities:

 

(a)                                  to
determine the States in which to take appropriate action to qualify or register
for sale of all or part of the Capital Securities and to do any and all such
acts, other than actions which must be taken by the Trust, and advise the Trust
of actions it must take, and prepare for execution and filing any documents to
be executed and filed by the Trust, as the Sponsor deems necessary or advisable
in order to comply with the applicable laws of any such States;

 

(b)                                 to
prepare for filing and request the Administrators to cause the filing by the
Trust, as may be appropriate, of an application to the PORTAL system, for
listing or quotation upon notice of issuance of any Capital Securities, as
requested by the Holders of not less than a Majority in liquidation amount of
the Capital Securities; and

 

(c)                                  to
negotiate the terms of and/or execute and deliver on behalf of the Trust, the
Purchase Agreement and other related agreements providing for the sale of the
Capital Securities.

 

ARTICLE IV

TRUSTEES AND ADMINISTRATORS

 

SECTION 4.1.  Number
of Trustees.  The number of Trustees
initially shall be two, and:

 

(a)                                  at
any time before the issuance of any Securities, the Sponsor may, by written
instrument, increase or decrease the number of Trustees; and

 

(b)                                 after
the issuance of any Securities, the number of Trustees may be increased or
decreased by vote of the Holder of a Majority in liquidation amount of the
Common Securities voting as a class at a meeting of the Holder of the Common
Securities; provided, however, that there shall be a Delaware
Trustee if required by Section 4.2; and there shall always be one Trustee
who shall be the Institutional Trustee, and such Trustee may also serve as
Delaware Trustee if it meets the applicable requirements, in which case
Section 2.11 shall have no application to such entity in its capacity as
Institutional Trustee.

 

SECTION 4.2.  Delaware
Trustee.  If required by the
Statutory Trust Act, one Trustee (the “Delaware Trustee”) shall be:

 

(a)                                  a
natural person who is a resident of the State of Delaware; or

 

23

 

(b)                                 if
not a natural person, an entity which is organized under the laws of the United
States or any state thereof or the District of Columbia, has its principal
place of business in the State of Delaware, and otherwise meets the
requirements of applicable law, including §3807 of the Statutory Trust Act.

 

SECTION 4.3.  Institutional
Trustee; Eligibility.

 

(a)                                  There
shall at all times be one Trustee which shall act as Institutional Trustee
which shall:

 

(i)                                     not
be an Affiliate of the Sponsor;

 

(ii)                                  not
offer or provide credit or credit enhancement to the Trust; and

 

(iii)                               be
a banking corporation or national association organized and doing business
under the laws of the United States of America or any state thereof or of the
District of Columbia and authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least fifty million U.S.
dollars ($50,000,000), and subject to supervision or examination by federal,
state or District of Columbia authority. If such corporation or national
association 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 4.3(a)(iii), the combined
capital and surplus of such corporation or national association shall be deemed
to be its combined capital and surplus as set forth in its most recent report
of condition so published.

 

(b)                                 If
at any time the Institutional Trustee shall cease to be eligible to so act
under Section 4.3(a), the Institutional Trustee shall immediately resign
in the manner and with the effect set forth in Section 4.7.

 

(c)                                  If
the Institutional Trustee has or shall acquire any “conflicting interest” within
the meaning of § 310(b) of the Trust Indenture Act, the Institutional Trustee
shall either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to this Declaration.

 

(d)                                 The
initial Institutional Trustee shall be Wells Fargo Bank, National Association.

 

SECTION 4.4.  Certain
Qualifications of the Delaware Trustee Generally.  The Delaware Trustee shall be a U.S. Person and either a natural
person who is at least 21 years of age or a legal entity that shall act through
one or more Authorized Officers.

 

SECTION 4.5.  Administrators.  Each Administrator shall be a U.S. Person.

 

There shall at
all times be at least one Administrator. Except where a requirement for action
by a specific number of Administrators is expressly set forth in this
Declaration and except with respect to any action the taking of which is the
subject of a meeting of the Administrators, any action required or permitted to
be taken by the Administrators may be taken

 

24

 

by, and any
power of the Administrators may be exercised by, or with the consent of, any
one such Administrator acting alone.

 

SECTION 4.6.  Initial
Delaware Trustee.  The initial
Delaware Trustee shall be Wells Fargo Delaware Trust Company.

 

SECTION 4.7.  Appointment,
Removal and Resignation of the Trustees and the Administrators.

 

(a)                                  No
resignation or removal of any Trustee (the “Relevant Trustee”) and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of this Section 4.7.

 

(b)                                 Subject
to Section 4.7(a), a Relevant Trustee may resign at any time by giving
written notice thereof to the Holders of the Securities and by appointing a
successor Relevant Trustee. Upon the resignation of the Institutional Trustee,
the Institutional Trustee shall appoint a successor by requesting from at least
three Persons meeting the eligibility requirements their expenses and charges
to serve as the successor Institutional Trustee on a form provided by the
Administrators, and selecting the Person who agrees to the lowest expense and
charges (the “Successor Institutional Trustee”). If the instrument of
acceptance by the successor Relevant Trustee required by this Section 4.7
shall not have been delivered to the Relevant Trustee within 60 days after the
giving of such notice of resignation or delivery of the instrument of removal,
the Relevant Trustee may petition, at the expense of the Trust, any federal,
state or District of Columbia court of competent jurisdiction for the
appointment of a successor Relevant Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper, appoint a Relevant
Trustee. The Institutional Trustee shall have no liability for the selection of
such successor pursuant to this Section 4.7.

 

(c)                                  Unless
an Event of Default shall have occurred and be continuing, any Trustee may be
removed at any time by an act of the Holders of a Majority in liquidation
amount of the Common Securities. If any Trustee shall be so removed, the
Holders of the Common Securities, by act of the Holders of a Majority in
liquidation amount of the Common Securities delivered to the Relevant Trustee,
shall promptly appoint a successor Relevant Trustee, and such successor Trustee
shall comply with the applicable requirements of this Section 4.7. If an
Event of Default shall have occurred and be continuing, the Institutional
Trustee or the Delaware Trustee, or both of them, may be removed by the act of
the Holders of a Majority in liquidation amount of the Capital Securities,
delivered to the Relevant Trustee (in its individual capacity and on behalf of
the Trust). If any Trustee shall be so removed, the Holders of Capital
Securities, by act of the Holders of a Majority in liquidation amount of the
Capital Securities then outstanding delivered to the Relevant Trustee, shall
promptly appoint a successor Relevant Trustee or Trustees, and such successor
Trustee shall comply with the applicable requirements of this Section 4.7.
If no successor Relevant Trustee shall have been so appointed by the Holders of
a Majority in liquidation amount of the Capital Securities and accepted
appointment in the manner required by this Section 4.7 within 30 days
after delivery of an instrument of removal, the Relevant Trustee or any Holder
who has been a Holder of the Securities for at least six months may, on behalf
of himself and all others similarly situated, petition any federal, state or
District

 

25

 

of Columbia court of competent jurisdiction for the
appointment of a successor Relevant Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper, appoint a successor
Relevant Trustee or Trustees.

 

(d)                                 The
Institutional Trustee shall give notice of each resignation and each removal of
a Trustee and each appointment of a successor Trustee to all Holders and to the
Sponsor. Each notice shall include the name of the successor Relevant Trustee
and the address of its Corporate Trust Office if it is the Institutional
Trustee.

 

(e)                                  Notwithstanding
the foregoing or any other provision of this Declaration, in the event a
Delaware Trustee who is a natural person dies or is adjudged by a court to have
become incompetent or incapacitated, the vacancy created by such death,
incompetence or incapacity may be filled by the Institutional Trustee (provided
the Institutional Trustee satisfies the requirements of a Delaware Trustee as
set forth in Section 4.2) following the procedures in this
Section 4.7 (with the successor being a Person who satisfies the
eligibility requirement for a Delaware Trustee set forth in this Declaration)
(the “Successor Delaware Trustee”).

 

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

 

(g)                                 No
Institutional Trustee or Delaware Trustee shall be liable for the acts or
omissions to act of any Successor Institutional Trustee or Successor Delaware
Trustee, as the case may be.

 

(h)                                 The
Holders of the Capital Securities will have no right to vote to appoint, remove
or replace the Administrators, which voting rights are vested exclusively in
the Holders of the Common Securities.

 

(i)                                     Any
successor Delaware Trustee shall file an amendment to the Certificate of Trust
with the Secretary of State of the State of Delaware identifying the name and
principal place of business of such Delaware Trustee in the State of Delaware.

 

26

 

SECTION 4.8.  Vacancies
Among Trustees.  If a Trustee ceases
to hold office for any reason and the number of Trustees is not reduced
pursuant to Section 4.1, or if the number of Trustees is increased
pursuant to Section 4.1, a vacancy shall occur. A resolution certifying
the existence of such vacancy by the Trustees or, if there are more than two, a
majority of the Trustees shall be conclusive evidence of the existence of such
vacancy. The vacancy shall be filled with a Trustee appointed in accordance
with Section 4.7.

 

SECTION 4.9.  Effect
of Vacancies.  The death,
resignation, retirement, removal, bankruptcy, dissolution, liquidation,
incompetence or incapacity to perform the duties of a Trustee shall not operate
to dissolve, terminate or annul the Trust or terminate this Declaration.
Whenever a vacancy in the number of Trustees shall occur, until such vacancy is
filled by the appointment of a Trustee in accordance with Section 4.7, the
Institutional Trustee shall have all the powers granted to the Trustees and
shall discharge all the duties imposed upon the Trustees by this Declaration.

 

SECTION 4.10. 
Meetings of the Trustees and the Administrators.  Meetings of the Trustees or the
Administrators shall be held from time to time upon the call of any Trustee or
Administrator, as applicable. Regular meetings of the Trustees and the
Administrators, respectively, may be in person in the United States or by
telephone, at a place (if applicable) and time fixed by resolution of the
Trustees or the Administrators, as applicable. Notice of any in-person meetings
of the Trustees or the Administrators shall be hand delivered or otherwise
delivered in writing (including by facsimile, with a hard copy by overnight
courier) not less than 48 hours before such meeting. Notice of any telephonic
meetings of the Trustees or the Administrators or any committee thereof shall
be hand delivered or otherwise delivered in writing (including by facsimile,
with a hard copy by overnight courier) not less than 24 hours before a meeting.
Notices shall contain a brief statement of the time, place and anticipated
purposes of the meeting. The presence (whether in person or by telephone) of a
Trustee or an Administrator, as the case may be, at a meeting shall constitute
a waiver of notice of such meeting except where a Trustee or an Administrator,
as the case may be, attends a meeting for the express purpose of objecting to
the transaction of any activity on the ground that the meeting has not been
lawfully called or convened. Unless provided otherwise in this Declaration, any
action of the Trustees or the Administrators, as the case may be, may be taken
at a meeting by vote of a majority of the Trustees or the Administrators
present (whether in person or by telephone) and eligible to vote with respect
to such matter; provided, that, in the case of the Administrators, a
Quorum is present, or without a meeting by the unanimous written consent of the
Trustees or the Administrators, as the case may be. Meetings of the Trustees
and the Administrators together shall be held from time to time upon the call
of any Trustee or Administrator.

 

SECTION 4.11. 
Delegation of Power. 
(a)  Any Trustee or any
Administrator, as the case may be, may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of 21 that is
a U.S. Person his or her power for the purpose of executing any documents,
instruments or other writings contemplated in Section 2.6.

 

(b)                                 The
Trustees shall have power to delegate from time to time to such of their number
or to any officer of the Trust that is a U.S. Person, the doing of such things
and the execution of such instruments or other writings either in the name of
the Trust or the names of

 

27

 

the Trustees or otherwise as the Trustees may deem
expedient, to the extent such delegation is not prohibited by applicable law or
contrary to the provisions of the Trust, as set forth herein.

 

SECTION 4.12. 
Merger, Conversion, Consolidation or Succession to Business.  Any Person into which the Institutional
Trustee or the Delaware Trustee, as the case maybe, may be merged or converted
or with which either may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Institutional Trustee or the
Delaware Trustee, as the case may be, shall be a party, or any Person
succeeding to all or substantially all the corporate trust business of the
Institutional Trustee or the Delaware Trustee, as the case may be, shall be the
successor of the Institutional Trustee or the Delaware Trustee, as the case may
be, hereunder, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, provided such Person shall be
otherwise qualified and eligible under this Article and, provided,
further, that such Person shall file an amendment to the Certificate of Trust
with the Secretary of State of the State of Delaware as contemplated in
Section 4.7(i).

 

ARTICLE
V

DISTRIBUTIONS

 

SECTION 5.1.  Distributions.  Holders shall receive Distributions in
accordance with the applicable terms of the relevant Holder’s Securities.
Distributions shall be made on the Capital Securities and the Common Securities
in accordance with the preferences set forth in their respective terms. If and
to the extent that the Debenture Issuer makes a payment of interest (including
any Additional Interest or Deferred Interest) and/or principal on the
Debentures held by the Institutional Trustee (the amount of any such payment
being a “Payment Amount”), the Institutional Trustee shall and is directed, to
the extent funds are available in the Property Account for that purpose, to
make a distribution (a “Distribution”) of the Payment Amount to Holders. For
the avoidance of doubt, funds in the Property Account shall not be distributed
to Holders to the extent of any taxes payable by the Trust, in the case of
withholding taxes, as determined by the Institutional Trustee or any Paying
Agent and, in the case of taxes other than withholding tax taxes, as determined
by the Administrators in a written notice to the Institutional Trustee.

 

ARTICLE
VI

ISSUANCE OF SECURITIES

 

SECTION 6.1.  General
Provisions Regarding Securities.

 

(a)                                  The
Administrators shall on behalf of the Trust issue one series of capital
securities, evidenced by a certificate substantially in the form of Exhibit
A-1, representing undivided beneficial interests in the assets of the Trust and
having such terms as are set forth in Annex I (the “Capital Securities”), and
one series of common securities, evidenced by a certificate substantially in
the form of Exhibit A-2, representing undivided beneficial interests in the
assets of the Trust and having such terms as are set forth in Annex I (the “Common
Securities”). The Trust shall issue no securities or other interests in the
assets of the Trust other than the Capital Securities and the Common
Securities. The Capital Securities rank pari
passu and payment thereon shall be made Pro Rata with the Common
Securities except that, where an Event of Default has occurred and is
continuing, the rights of Holders of the Common Securities

 

28

 

to payment in respect of Distributions and payments
upon liquidation, redemption and otherwise are subordinated to the rights to
payment of the Holders of the Capital Securities.

 

(b)                                 The
Certificates shall be signed on behalf of the Trust by one or more
Administrators. Such signature shall be the facsimile or manual signature of
any Administrator. In case any Administrator of the Trust who shall have signed
any of the Securities shall cease to be such Administrator before the
Certificates so signed shall be delivered by the Trust, such Certificates
nevertheless may be delivered as though the person who signed such Certificates
had not ceased to be such Administrator. Any Certificate may be signed on
behalf of the Trust by such person who, at the actual date of execution of such
Security, shall be an Administrator of the Trust, although at the date of the
execution and delivery of the Declaration any such person was not such an
Administrator. A Capital Security shall not be valid until authenticated by the
manual signature of an Authorized Officer of the Institutional Trustee. Such
signature shall be conclusive evidence that the Capital Security has been
authenticated under this Declaration. Upon written order of the Trust signed by
one Administrator, the Institutional Trustee shall authenticate the Capital
Securities for original issue. The Institutional Trustee may appoint an
authenticating agent that is a U.S. Person acceptable to the Trust to
authenticate the Capital Securities. A Common Security need not be so
authenticated and shall be valid upon execution by one or more Administrators.

 

(c)                                  The
consideration received by the Trust for the issuance of the Securities shall
constitute a contribution to the capital of the Trust and shall not constitute
a loan to the Trust.

 

(d)                                 Upon
issuance of the Securities as provided in this Declaration, the Securities so
issued shall be deemed to be validly issued, fully paid and non-assessable, and
each Holder thereof shall be entitled to the benefits provided by this
Declaration.

 

(e)                                  Every
Person, by virtue of having become a Holder in accordance with the terms of
this Declaration, shall be deemed to have expressly assented and agreed to the
terms of, and shall be bound by, this Declaration and the Guarantee.

 

SECTION 6.2.  Paying
Agent, Transfer Agent, Calculation Agent and Registrar.

 

(a)                                  The
Trust shall maintain in Wilmington, Delaware, an office or agency where the
Securities may be presented for payment (the “Paying Agent”), and an office or
agency where Securities may be presented for registration of transfer or
exchange (the “Transfer Agent”). The Trust shall keep or cause to be kept at
such office or agency a register for the purpose of registering Securities and
transfers and exchanges of Securities, such register to be held by a registrar
(the “Registrar”). The Administrators may appoint the Paying Agent, the
Registrar and the Transfer Agent, and may appoint one or more additional Paying
Agents, one or more co-Registrars, or one or more co-Transfer Agents in such
other locations as it shall determine. The term “Paying Agent” includes any
additional Paying Agent, the term “Registrar” includes any additional Registrar
or co-Registrar and the term “Transfer Agent” includes any additional Transfer
Agent or co-Transfer Agent. The Administrators may change any Paying Agent,
Transfer Agent or Registrar at any time without prior notice to any Holder. The
Administrators shall notify the Institutional Trustee of the name and address
of any Paying

 

29

 

Agent, Transfer Agent and Registrar not a party to
this Declaration. The Administrators hereby initially appoint the Institutional
Trustee to act as Paying Agent, Transfer Agent and Registrar for the Capital
Securities and the Common Securities at its Corporate Trust Office. The
Institutional Trustee or any of its Affiliates in the United States may act as
Paying Agent, Transfer Agent or Registrar.

 

(b)                                 The
Trust shall also appoint a Calculation Agent, which shall determine the Coupon
Rate in accordance with the terms of the Securities. The Trust initially
appoints the Institutional Trustee as Calculation Agent.

 

SECTION 6.3.  Form
and Dating.

 

(a)                                  The
Capital Securities and the Institutional Trustee’s certificate of
authentication thereon shall be substantially in the form of Exhibit A-1, and
the Common Securities shall be substantially in the form of Exhibit A-2, each
of which is hereby incorporated in and expressly made a part of this
Declaration. Certificates may be typed, printed, lithographed or engraved or
may be produced in any other manner as is reasonably acceptable to the
Administrators, as conclusively evidenced by their execution thereof. The
Securities may have letters, numbers, notations or other marks of
identification or designation and such legends or endorsements required by law,
stock exchange rule, agreements to which the Trust is subject, if any, or usage
(provided, that any such notation, legend or endorsement is in a form
acceptable to the Sponsor). The Trust at the direction of the Sponsor shall
furnish any such legend not contained in Exhibit A-1 to the Institutional
Trustee in writing. Each Capital Security shall be dated the date of its
authentication. The terms and provisions of the Securities set forth in Annex I
and the forms of Securities set forth in Exhibits A-1 and A-2 are part of the
terms of this Declaration and to the extent applicable, the Institutional
Trustee, the Delaware Trustee, the Administrators and the Sponsor, by their
execution and delivery of this Declaration, expressly agree to such terms and
provisions and to be bound thereby. Capital Securities will be issued only in
blocks having a stated liquidation amount of not less than $100,000.

 

(b)                                 The
Capital Securities are being offered and sold by the Trust pursuant to the
Purchase Agreement in definitive form, registered in the name of the Holder
thereof, without coupons and with the Restricted Securities Legend.

 

SECTION 6.4.  Mutilated,
Destroyed, Lost or Stolen Certificates. 
If:

 

(a)                                  any
mutilated Certificates should be surrendered to the Registrar, or if the
Registrar shall receive evidence to its satisfaction of the destruction, loss
or theft of any Certificate; and

 

(b)                                 there
shall be delivered to the Registrar, the Administrators and the Institutional
Trustee such security or indemnity as may be required by them to keep each of
them harmless; then, in the absence of notice that such Certificate shall have
been acquired by a bona fide purchaser, an Administrator on behalf of the Trust
shall execute (and in the case of a Capital Security Certificate, the
Institutional Trustee shall authenticate) and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like denomination. In connection with the issuance of any new
Certificate under this Section 6.4, the

 

30

 

Registrar or the Administrators may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith. Any duplicate Certificate issued
pursuant to this Section shall constitute conclusive evidence of an
ownership interest in the relevant Securities, as if originally issued, whether
or not the lost, stolen or destroyed Certificate shall be found at any time.

 

SECTION 6.5.  Temporary
Securities.  Until definitive
Securities are ready for delivery, the Administrators may prepare and, in the
case of the Capital Securities, the Institutional Trustee shall authenticate,
temporary Securities. Temporary Securities shall be substantially in form of
definitive Securities but may have variations that the Administrators consider
appropriate for temporary Securities. Without unreasonable delay, the
Administrators shall prepare and, in the case of the Capital Securities, the
Institutional Trustee shall authenticate definitive Securities in exchange for
temporary Securities.

 

SECTION 6.6.  Cancellation.  The Administrators at any time may deliver
Securities to the Institutional Trustee for cancellation. The Registrar shall
forward to the Institutional Trustee any Securities surrendered to it for
registration of transfer, redemption or payment. The Institutional Trustee
shall promptly cancel all Securities surrendered for registration of transfer,
payment, replacement or cancellation and shall dispose of such canceled
Securities as the Administrators direct. The Administrators may not issue new
Securities to replace Securities that have been paid or that have been
delivered to the Institutional Trustee for cancellation.

 

SECTION 6.7.  Rights
of Holders; Waivers of Past Defaults.

 

(a)                                  The
legal title to the Trust Property is vested exclusively in the Institutional
Trustee (in its capacity as such) in accordance with Section 2.5, and the
Holders shall not have any right or title therein other than the undivided
beneficial interest in the assets of the Trust conferred by their Securities
and they shall have no right to call for any partition or division of property,
profits or rights of the Trust except as described below. The Securities shall
be personal property giving only the rights specifically set forth therein and
in this Declaration. The Securities shall have no, and the issuance of the
Securities shall not be subject to, preemptive or other similar rights and when
issued and delivered to Holders against payment of the purchase price therefor,
the Securities will be fully paid and nonassessable by the Trust.

 

(b)                                 For
so long as any Capital Securities remain outstanding, if, upon an Indenture
Event of Default, the Debenture Trustee fails or the holders of not less than
25% in principal amount of the outstanding Debentures fail to declare the
principal of all of the Debentures to be immediately due and payable, the
Holders of not less than a Majority in liquidation amount of the Capital
Securities then outstanding shall have the right to make such declaration by a
notice in writing to the Institutional Trustee, the Sponsor and the Debenture
Trustee.

 

(c)                                  At
any time after a declaration of acceleration with respect to the Debentures has
been made and before a judgment or decree for payment of the money due has been
obtained by the Debenture Trustee as provided in the Indenture, if the
Institutional Trustee, subject to the provisions hereof, fails to annul any
such declaration and waive such default, the Holders of not less than a
Majority in liquidation amount of the Capital Securities, by written

 

31

 

notice to the Institutional Trustee, the Sponsor and
the Debenture Trustee, may rescind and annul such declaration and its
consequences if:

 

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

 

(A)                              all
overdue installments of interest on all of the Debentures;

 

(B)                                any
accrued Deferred Interest on all of the Debentures;

 

(C)                                all
payments on any Debentures that have become due otherwise than by such
declaration of acceleration and interest and Deferred Interest thereon at the
rate borne by the Debentures; and

 

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

 

(ii)                                  all
Events of Default with respect to the Debentures, other than the non-payment of
the principal of the Debentures that has become due solely by such
acceleration, have been cured or waived as provided in Section 5.07 of the
Indenture.

 

(d)                                 The
Holders of not less than a Majority in liquidation amount of the Capital
Securities may, on behalf of the Holders of all the Capital Securities, waive
any past default or Event of Default, except a default or Event of Default in
the payment of principal or interest (unless such default or Event of Default
has been cured and a sum sufficient to pay all matured installments of interest
and principal due otherwise than by acceleration has been deposited with the
Debenture Trustee) or a default or Event of Default in respect of a covenant or
provision that under the Indenture cannot be modified or amended without the
consent of the holder of each outstanding Debenture. No such rescission shall
affect any subsequent default or impair any right consequent thereon.

 

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

 

32

 

written notice that has been canceled pursuant to the
proviso to the preceding sentence, in which event a new record date shall be
established pursuant to the provisions of this Section 6.7.

 

(f)                                    Except
as otherwise provided in this Section 6.7, the Holders of not less than a
Majority in liquidation amount of the Capital Securities may, on behalf of the
Holders of all the Capital Securities, waive any past default or Event of
Default and its consequences. Upon such waiver, any such default or Event of
Default shall cease to exist, and any default or Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Declaration, but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.

 

ARTICLE VII

DISSOLUTION AND TERMINATION OF TRUST

 

SECTION 7.1.  Dissolution
and Termination of Trust.  (a)  The Trust shall dissolve on the first to
occur of

 

(i)                                     unless
earlier dissolved, on October 14, 2038, the expiration of the term of the
Trust;

 

(ii)                                  a
Bankruptcy Event with respect to the Sponsor, the Trust or the Debenture
Issuer;

 

(iii)                               (other
than in connection with a merger, consolidation or similar transaction not
prohibited by the Indenture, this Declaration or the Guarantee, as the case may
be) the filing of a certificate of dissolution or its equivalent with respect
to the Sponsor or upon the revocation of the charter of the Sponsor and the
expiration of 90 days after the date of revocation without a reinstatement
thereof;

 

(iv)                              the
distribution of the Debentures to the Holders of the Securities, upon exercise
of the right of the Holders of all of the outstanding Common Securities to
dissolve the Trust as provided in Annex I hereto;

 

(v)                                 the
entry of a decree of judicial dissolution of any Holder of the Common
Securities, the Sponsor, the Trust or the Debenture Issuer;

 

(vi)                              when
all of the Securities shall have been called for redemption and the amounts
necessary for redemption thereof shall have been paid to the Holders in
accordance with the terms of the Securities; or

 

(vii)                           before
the issuance of any Securities, with the consent of all of the Trustees and the
Sponsor.

 

(b)                                 As
soon as is practicable after the occurrence of an event referred to in Section 7.1(a),
and after satisfaction of liabilities to creditors of the Trust as required by
applicable law, including Section 3808 of the Statutory Trust Act, and
subject to the terms set forth in Annex I, the Institutional Trustee shall terminate
the Trust by filing a certificate of cancellation with the Secretary of State
of the State of Delaware.

 

33

 

(c)                                  The
provisions of Section 2.9 and Article IX shall survive the
termination of the Trust.

 

ARTICLE VIII

TRANSFER OF INTERESTS

 

SECTION 8.1.  General.  (a) 
Where Capital Securities are presented to the Registrar with a request
to register a transfer or to exchange them for an equal number of Capital
Securities represented by different Certificates, the Registrar shall register
the transfer or make the exchange if its requirements for such transactions are
met. To permit registrations of transfers and exchanges, the Trust shall issue
and the Institutional Trustee shall authenticate Capital Securities at the
Registrar’s request.

 

(b)                                 Upon
issuance of the Common Securities, the Sponsor shall acquire and retain
beneficial and record ownership of the Common Securities and, for so long as
the Securities remain outstanding, the Sponsor shall maintain 100% ownership of
the Common Securities; provided, however, that any permitted successor of the
Sponsor under the Indenture that is a U.S. Person may succeed to the Sponsor’s
ownership of the Common Securities.

 

(c)                                  Capital
Securities may only be transferred, in whole or in part, in accordance with the
terms and conditions set forth in this Declaration and in the terms of the
Capital Securities. To the fullest extent permitted by applicable law, any
transfer or purported transfer of any Security not made in accordance with this
Declaration shall be null and void and will be deemed to be of no legal effect
whatsoever and any such transferee shall be deemed not to be the holder of such
Capital Securities for any purpose, including but not limited to the receipt of
Distributions on such Capital Securities, and such transferee shall be deemed
to have no interest whatsoever in such Capital Securities.

 

(d)                                 The
Registrar shall provide for the registration of Securities and of transfers of
Securities, which will be effected without charge but only upon payment (with
such indemnity as the Registrar may require) in respect of any tax or other
governmental charges that may be imposed in relation to it. Upon surrender for
registration of transfer of any Securities, the Registrar shall cause one or
more new Securities to be issued in the name of the designated transferee or
transferees. Any Security issued upon any registration of transfer or exchange
pursuant to the terms of this Declaration shall evidence the same Security and
shall be entitled to the same benefits under this Declaration as the Security
surrendered upon such registration of transfer or exchange. Every Security
surrendered for registration of transfer shall be accompanied by a written
instrument of transfer in form similar to Exhibits B and C attached hereto
satisfactory to the Registrar duly executed by the Holder or such Holder’s
attorney duly authorized in writing. Each Security surrendered for registration
of transfer shall be canceled by the Institutional Trustee pursuant to
Section 6.6. A transferee of a Security shall be entitled to the rights
and subject to the obligations of a Holder hereunder upon the receipt by such
transferee of a Security. By acceptance of a Security, each transferee shall be
deemed to have agreed to be bound by this Declaration.

 

(e)                                  Neither
the Trust nor the Registrar shall be required (i) to issue, register the
transfer of, or exchange any Securities during a period beginning at the
opening of business

 

34

 

15 days before the day of any selection of Securities
for redemption and ending at the close of business on the earliest date on
which the relevant notice of redemption is deemed to have been given to all
Holders of the Securities to be redeemed, or (ii) to register the transfer or
exchange of any Security so selected for redemption in whole or in part, except
the unredeemed portion of any Security being redeemed in part.

 

SECTION 8.2.  Transfer
Procedures and Restrictions.

 

(a)                                  The
Capital Securities shall bear the Restricted Securities Legend (as defined
below), which shall not be removed unless there is delivered to the Trust such
satisfactory evidence, which may include an opinion of counsel reasonably
acceptable to the Institutional Trustee, as may be reasonably required by the
Trust, that neither the legend nor the restrictions on transfer set forth
therein are required to ensure that transfers thereof comply with the
provisions of the Securities Act or that such Securities are not “restricted”
within the meaning of Rule 144 under the Securities Act. Upon provision of such
satisfactory evidence, the Institutional Trustee, at the written direction of
the Trust, shall authenticate and deliver Capital Securities that do not bear
the Restricted Securities Legend.

 

(b)                                 When
Capital Securities are presented to the Registrar (x) to register the transfer
of such Capital Securities, or (y) to exchange such Capital Securities for an
equal number of Capital Securities represented by different Certificates, the
Registrar shall register the transfer or make the exchange as requested if its
reasonable requirements for such transaction are met; provided, however,
that the Capital Securities surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by a written instrument of
transfer in form reasonably satisfactory to the Trust and the Registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing and
(i) if such Capital Securities are being transferred to a QIB, accompanied by a
certificate of the transferor substantially in the form set forth as Exhibit C
hereto or (ii) if such Capital Securities are being transferred otherwise than
to a QIB, accompanied by a certificate of the transferee substantially in the
form set forth as Exhibit B hereto.

 

(c)                                  Except
as permitted by Section 8.2(a), each Capital Security shall bear a legend
(the “Restricted Securities Legend”) in substantially the following form:

 

THIS SECURITY
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE DEBENTURE
ISSUER OR THE TRUST, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT

 

35

 

OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF AN “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE DEBENTURE
ISSUER’S AND THE TRUST’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (C) OR (D) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN
ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH
MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

 

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

 

THE HOLDER OF
THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS
THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN
OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE “CODE”), (EACH A “PLAN”), OR AN ENTITY WHOSE
UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN
THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE
OR HOLD THIS SECURITY OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER
IS ELIGIBLE FOR THE EXEMPTION RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,95-60,91-38,90-1 OR 84-14 OR
ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS
NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT
TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY
INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING
THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING
OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE
BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT
RESULT IN A PROHIBITED TRANSACTION UNDER SECTION

 

36

 

406 OF ERISA
OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR
ADMINISTRATIVE EXEMPTION.

 

IN CONNECTION
WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE AMENDED
AND RESTATED DECLARATION OF TRUST TO CONFIRM THAT THE TRANSFER COMPLIES WITH
THE FOREGOING RESTRICTIONS.

 

THIS SECURITY
WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION
AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY
ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION AMOUNT OF
LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER
OF THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

 

(d)                                 Capital
Securities may only be transferred in minimum blocks of $100,000 aggregate
liquidation amount (100 Capital Securities) and multiples of $1,000 in excess
thereof. Any attempted transfer of Capital Securities in a block having an
aggregate liquidation amount of less than $100,000 shall be deemed to be void
and of no legal effect whatsoever. Any such purported transferee shall be
deemed not to be a Holder of such Capital Securities for any purpose,
including, but not limited to, the receipt of Distributions on such Capital
Securities, and such purported transferee shall be deemed to have no interest
whatsoever in such Capital Securities.

 

(e)                                  Each
party hereto understands and hereby agrees that the Initial Purchaser is
intended solely to be an interim holder of the Capital Securities and is
purchasing such securities to facilitate consummation of the transactions
contemplated herein and in the documents ancillary hereto. Notwithstanding any
provision in this Declaration to the contrary, the Initial Purchaser shall have
the right upon notice (a “Transfer Notice”) to the Institutional Trustee and
the Sponsor to transfer title in and to the Capital Securities, provided the
Initial Purchaser shall take reasonable steps to ensure that such transfer is
exempt from registration under the Securities Act of 1933, as amended, and
rules promulgated thereunder. Any Transfer Notice delivered to the
Institutional Trustee and Sponsor pursuant to the preceding sentence shall
indicate the aggregate liquidation amount of Capital Securities being
transferred, the name and address of the transferee thereof (the “Transferee”)
and the date of such transfer. Notwithstanding any provision in this
Declaration to the contrary, the transfer by the Initial Purchaser of title in
and to the Capital Securities pursuant to a Transfer Notice shall not be
subject to any requirement relating to Opinions of Counsel, Certificates of
Transfer or any other Opinion or Certificate applicable to transfers hereunder
and relating to Capital Securities. To facilitate transfers by the Initial
Purchaser pursuant to this Section 8.2(e), an Administrator shall cause to
be delivered to the Institutional Trustee on the Closing Date a number of
Capital Securities Certificates executed in blank equal to the number of Capital
Securities Certificates

 

37

 

delivered to Initial Purchaser upon the Closing Date
(the “Blank Certificates”) to be held by the Institutional Trustee pending
receipt by the Institutional Trustee of one or more Transfer Notices from the
Initial Purchaser. Upon receipt of any such Transfer Notice from the Initial
Purchaser, the Institutional Trustee is hereby and thereby authorized to, and
shall thereupon, complete a Blank Certificate with the information provided in
such Transfer Notice and hereby and thereby is authorized to, and shall
thereupon, authenticate the Capital Security Certificate so completed and cause
the same to be delivered to the Transferee.

 

SECTION 8.3.  Deemed
Security Holders.  The Trust, the
Administrators, the Trustees, the Paying Agent, the Transfer Agent or the
Registrar may treat the Person in whose name any Certificate shall be
registered on the books and records of the Trust as the sole holder of such
Certificate and of the Securities represented by such Certificate for purposes
of receiving Distributions and for all other purposes whatsoever and,
accordingly, shall not be bound to recognize any equitable or other claim to or
interest in such Certificate or in the Securities represented by such
Certificate on the part of any Person, whether or not the Trust, the
Administrators, the Trustees, the Paying Agent, the Transfer Agent or the
Registrar shall have actual or other notice thereof.

 

ARTICLE IX

LIMITATION OF LIABILITY OF HOLDERS

OF SECURITIES, TRUSTEES OR OTHERS

 

SECTION 9.1.  Liability.  (a) 
Except as expressly set forth in this Declaration, the Guarantee and the
terms of the Securities, the Sponsor shall not be:

 

(i)                                     personally
liable for the return of any portion of the capital contributions (or any
return thereon) of the Holders of the Securities which shall be made solely
from assets of the Trust; and

 

(ii)                                  required
to pay to the Trust or to any Holder of the Securities any deficit upon
dissolution of the Trust or otherwise.

 

(b)                                 The
Holder of the Common Securities shall be liable for all of the debts and
obligations of the Trust (other than with respect to the Securities) to the
extent not satisfied out of the Trust’s assets.

 

(c)                                  Pursuant
to § 3803(a) of the Statutory Trust Act, the Holders of the Securities shall be
entitled to the same limitation of personal liability extended to stockholders
of private corporations for profit organized under the General Corporation Law
of the State of Delaware, except as otherwise specifically set forth herein.

 

SECTION 9.2.  Exculpation.  (a) 
No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Trust 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 on behalf of the Trust and in a manner such
Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Declaration or by law, except that
an Indemnified Person (other than an Administrator) shall be liable for any
such loss, damage or claim incurred by reason of such Indemnified Person’s

 

38

 

negligence or willful misconduct with respect to such
acts or omissions and except that an Administrator shall be liable for any such
loss, damage or claim incurred by reason of such Administrator’s gross
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 Trust and upon such information, opinions, reports or statements
presented to the Trust by any Person as to matters the Indemnified Person
reasonably believes are within such other Person’s professional or expert
competence and, if selected by such Indemnified Person, has been selected by
such Indemnified Person with reasonable care by or on behalf of the Trust,
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 of
Securities might properly be paid.

 

SECTION 9.3.  Fiduciary
Duty.  (a)  To the extent that, at law or in equity, an Indemnified Person
has duties (including fiduciary duties) and liabilities relating thereto to the
Trust or to any other Covered Person, an Indemnified Person acting under this
Declaration shall not be liable to the Trust or to any other Covered Person for
its good faith reliance on the provisions of this Declaration. The provisions
of this Declaration, to the extent that they restrict the duties and
liabilities of an Indemnified Person otherwise existing at law or in equity
(other than the duties imposed on the Institutional Trustee under the Trust
Indenture Act), are agreed by the parties hereto to replace such other duties
and liabilities of the Indemnified Person.

 

(b)                                 Whenever
in this Declaration an Indemnified Person is permitted or required to make a
decision:

 

(i)                                     in
its “discretion” or under a grant of similar authority, the Indemnified Person
shall be entitled to consider such interests and factors as it desires,
including its own interests, and shall have no duty or obligation to give any
consideration to any interest of or factors affecting the Trust or any other
Person; or

 

(ii)                                  in
its “good faith” or under another express standard, the Indemnified Person
shall act under such express standard and shall not be subject to any other or
different standard imposed by this Declaration or by applicable law.

 

SECTION 9.4.  Indemnification.  (a) (i) The Sponsor shall indemnify, to the
fullest extent permitted by law, any Indemnified Person who was or is a party
or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Trust) by reason
of the fact that such Person is or was an Indemnified Person against expenses
(including attorneys’ fees and expenses), judgments, fines and amounts paid in
settlement actually and reasonably incurred by such Person in connection with
such action, suit or proceeding if such Person acted in good faith and in a manner
such Person reasonably believed to be in or not opposed to the best interests
of the Trust, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe such conduct was unlawful. The termination of any
action, suit or proceeding by judgment, order, settlement, conviction, or upon
a plea of nolo contendere or its equivalent, shall

 

39

 

not, of itself, create a presumption that the
Indemnified Person did not act in good faith and in a manner which such Person
reasonably believed to be in or not opposed to the best interests of the Trust,
and, with respect to any criminal action or proceeding, had reasonable cause to
believe that such conduct was unlawful.

 

(ii)                                  The
Sponsor shall indemnify, to the fullest extent permitted by law, any
Indemnified Person who was or is a party or is threatened to be made a party to
any threatened, pending or completed action or suit by or in the right of the
Trust to procure a judgment in its favor by reason of the fact that such Person
is or was an Indemnified Person against expenses (including attorneys’ fees and
expenses) actually and reasonably incurred by such Person in connection with
the defense or settlement of such action or suit if such Person acted in good
faith and in a manner such Person reasonably believed to be in or not opposed
to the best interests of the Trust and except that no such indemnification
shall be made in respect of any claim, issue or matter as to which such
Indemnified Person shall have been adjudged to be liable to the Trust unless
and only to the extent that the Court of Chancery of Delaware or the court in
which such action or suit was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of
the case, such Person is fairly and reasonably entitled to indemnity for such
expenses which such Court of Chancery or such other court shall deem proper.

 

(iii)                               To
the extent that an Indemnified Person shall be successful on the merits or
otherwise (including dismissal of an action without prejudice or the settlement
of an action without admission of liability) in defense of any action, suit or
proceeding referred to in paragraphs (i) and (ii) of this Section 9.4(a),
or in defense of any claim, issue or matter therein, such Person shall be
indemnified, to the fullest extent permitted by law, against expenses
(including attorneys’ fees and expenses) actually and reasonably incurred by
such Person in connection therewith.

 

(iv)                              Any
indemnification of an Administrator under paragraphs (i) and (ii) of this
Section 9.4(a) (unless ordered by a court) shall be made by the Sponsor
only as authorized in the specific case upon a determination that
indemnification of the Indemnified Person is proper in the circumstances
because such Person has met the applicable standard of conduct set forth in
paragraphs (i) and (ii). Such determination shall be made (A) by the
Administrators by a majority vote of a Quorum consisting of such Administrators
who were not parties to such action, suit or proceeding, (B) if such a Quorum
is not obtainable, or, even if obtainable, if a Quorum of disinterested
Administrators so directs, by independent legal counsel in a written opinion,
or (C) by the Common Security Holder of the Trust.

 

(v)                                 To
the fullest extent permitted by law, expenses (including attorneys’ fees and
expenses) incurred by an Indemnified Person in defending a civil, criminal,
administrative or investigative action, suit or proceeding referred to in
paragraphs (i) and (ii) of this Section 9.4(a) shall be paid by the
Sponsor in advance of the final disposition of such action, suit or proceeding
upon receipt of

 

40

 

an undertaking by or on behalf
of such Indemnified Person to repay such amount if it shall ultimately be
determined that such Person is not entitled to be indemnified by the Sponsor as
authorized in this Section 9.4(a). Notwithstanding the foregoing, no
advance shall be made by the Sponsor if a determination is reasonably and
promptly made (1) in the case of a Company Indemnified Person (A) by the
Administrators by a majority vote of a Quorum of disinterested Administrators,
(B) if such a Quorum is not obtainable, or, even if obtainable, if a Quorum of
disinterested Administrators so directs, by independent legal counsel in a
written opinion or (C) by the Common Security Holder of the Trust, that, based
upon the facts known to the Administrators, counsel or the Common Security Holder
at the time such determination is made, such Indemnified Person acted in bad
faith or in a manner that such Person either believed to be opposed to or did
not believe to be in the best interests of the Trust, or, with respect to any
criminal proceeding, that such Indemnified Person believed or had reasonable
cause to believe such conduct was unlawful, or (2) in the case of a Fiduciary
Indemnified Person, by independent legal counsel in a written opinion that,
based upon the facts known to the counsel at the time such determination is
made, such Indemnified Person acted in bad faith or in a manner that such
Indemnified Person either believed to be opposed to or did not believe to be in
the best interests of the Trust, or, with respect to any criminal proceeding,
that such Indemnified Person believed or had reasonable cause to believe such
conduct was unlawful. In no event shall any advance be made (i) to a Company
Indemnified Person in instances where the Administrators, independent legal
counsel or the Common Security Holder reasonably determine that such Person
deliberately breached such Person’s duty to the Trust or its Common or Capital
Security Holders or (ii) to a Fiduciary Indemnified Person in instances where
independent legal counsel promptly and reasonably determines in a written
opinion that such Person deliberately breached such Person’s duty to the Trust
or its Common or Capital Security Holders.

 

(b)                                 The
Sponsor shall indemnify, to the fullest extent permitted by applicable law,
each Indemnified Person from and against any and all loss, damage, liability,
tax (other than taxes based on the income of such Indemnified Person), penalty,
expense or claim of any kind or nature whatsoever incurred by such Indemnified
Person arising out of or in connection with or by reason of the creation,
administration or termination of the Trust, or any act or omission of such
Indemnified Person in good faith on behalf of the Trust and in a manner such
Indemnified Person reasonably believed to be within the scope of authority
conferred on such Indemnified Person by this Declaration, except that no
Indemnified Person shall be entitled to be indemnified in respect of any loss,
damage, liability, tax, penalty, expense or claim incurred by such Indemnified
Person by reason of negligence or willful misconduct with respect to such acts
or omissions.

 

(c)                                  The
indemnification and advancement of expenses provided by, or granted pursuant
to, the other paragraphs of this Section 9.4 shall not be deemed exclusive
of any other rights to which those seeking indemnification and advancement of
expenses may be entitled under any agreement, vote of stockholders or
disinterested directors of the Sponsor or Capital Security Holders of the Trust
or otherwise, both as to action in such Person’s official capacity

 

41

 

and as to action in another capacity while holding
such office. All rights to indemnification under this Section 9.4 shall be
deemed to be provided by a contract between the Sponsor and each Indemnified
Person who serves in such capacity at any time while this Section 9.4 is
in effect. Any repeal or modification of this Section 9.4 shall not affect
any rights or obligations then existing.

 

(d)                                 The
Sponsor or the Trust may purchase and maintain insurance on behalf of any
Person who is or was an Indemnified Person against any liability asserted
against such Person and incurred by such Person in any such capacity, or
arising out of such Person’s status as such, whether or not the Sponsor would
have the power to indemnify such Person against such liability under the
provisions of this Section 9.4.

 

(e)                                  For
purposes of this Section 9.4, references to “the Trust” shall include, in
addition to the resulting or surviving entity, any constituent entity
(including any constituent of a constituent) absorbed in a consolidation or
merger, so that any Person who is or was a director, trustee, officer or
employee of such constituent entity, or is or was serving at the request of
such constituent entity as a director, trustee, officer, employee or agent of
another entity, shall stand in the same position under the provisions of this
Section 9.4 with respect to the resulting or surviving entity as such
Person would have with respect to such constituent entity if its separate
existence had continued.

 

(f)                                    The
indemnification and advancement of expenses provided by, or granted pursuant
to, this Section 9.4 shall, unless otherwise provided when authorized or
ratified, continue as to a Person who has ceased to be an Indemnified Person
and shall inure to the benefit of the heirs, executors and administrators of
such a Person.

 

(g)                                 The
provisions of this Section 9.4 shall survive the termination of this
Declaration or the earlier resignation or removal of the Institutional Trustee.
The obligations of the Sponsor under this Section 9.4 to compensate and
indemnify the Trustees and to pay or reimburse the Trustees 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 Trustees as
such, except funds held in trust for the benefit of the holders of particular
Capital Securities, provided, that the Sponsor is the holder of the
Common Securities.

 

SECTION 9.5.  Outside
Businesses.  Any Covered Person, the
Sponsor, the Delaware Trustee and the Institutional Trustee (subject to
Section 4.3(c)) may engage in or possess an interest in other business ventures
of any nature or description, independently or with others, similar or
dissimilar to the business of the Trust, and the Trust and the Holders of
Securities shall have no rights by virtue of this Declaration in and to such
independent ventures or the income or profits derived therefrom, and the
pursuit of any such venture, even if competitive with the business of the
Trust, shall not be deemed wrongful or improper. None of any Covered Person,
the Sponsor, the Delaware Trustee or the Institutional Trustee shall be
obligated to present any particular investment or other opportunity to the
Trust even if such opportunity is of a character that, if presented to the
Trust, could be taken by the Trust, and any Covered Person, the Sponsor, the
Delaware Trustee and the Institutional Trustee shall have the right to take for
its own account (individually or as a partner or fiduciary) or to recommend to
others any such particular

 

42

 

investment or other opportunity. Any Covered Person,
the Delaware Trustee and the Institutional Trustee may engage or be interested
in any financial or other transaction with the Sponsor or any Affiliate of the
Sponsor, or may act as depositary for, trustee or agent for, or act on any committee
or body of holders of, securities or other obligations of the Sponsor or its
Affiliates.

 

SECTION 9.6.  Compensation;
Fee.  (a)  The Sponsor agrees:

 

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

 

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

 

(b)                                 The
provisions of this Section 9.6 shall survive the dissolution of the Trust
and the termination of this Declaration and the removal or resignation of any
Trustee.

 

ARTICLE
X

ACCOUNTING

 

SECTION 10.1. 
Fiscal Year.  The fiscal
year (the “Fiscal Year”) of the Trust shall be the calendar year, or such other
year as is required by the Code.

 

SECTION 10.2. 
Certain Accounting Matters.

 

(a)                                  At
all times during the existence of the Trust, the Administrators shall keep, or
cause to be kept at the principal office of the Trust in the United States, as
defined for purposes of Treasury Regulations § 301.7701-7, full books of
account, records and supporting documents, which shall reflect in reasonable
detail each transaction of the Trust. The books of account shall be maintained
on the accrual method of accounting, in accordance with generally accepted
accounting principles, consistently applied.

 

(b)                                 The
Administrators shall either (i) cause each Form 10-K and Form 10-Q prepared by
the Sponsor and filed with the Commission in accordance with the Exchange Act
to be delivered to each Holder of Securities, within 90 days after the filing
of each Form 10-K and within 30 days after the filing of each Form 10-Q or (ii)
cause to be prepared at the principal office of the Trust in the United States,
as defined for purposes of Treasury Regulations § 301.7701-7, and delivered
to each of the Holders of Securities, within 90 days after the end of each
Fiscal Year of the Trust, annual financial statements of the Trust, including a
balance sheet of the Trust as of the end of such Fiscal Year, and the related
statements of income or loss.

 

(c)                                  The
Administrators shall cause to be duly prepared and delivered to each of the
Holders of Securities Form 1099 or such other annual United States federal
income tax

 

43

 

information statement required by the Code, containing
such information with regard to the Securities held by each Holder as is
required by the Code and the Treasury Regulations. Notwithstanding any right
under the Code to deliver any such statement at a later date, the Administrators
shall endeavor to deliver all such statements within 30 days after the end of
each Fiscal Year of the Trust.

 

(d)                                 The
Administrators shall cause to be duly prepared in the United States, as defined
for purposes of Treasury Regulations § 301.7701-7, and filed an annual United
States federal income tax return on a Form 1041 or such other form required by
United States federal income tax law, and any other annual income tax returns
required to be filed by the Administrators on behalf of the Trust with any
state or local taxing authority.

 

(e)                                  So
long as the only Holder of the Capital Securities is Bear, Stearns Securities
Corp., the Administrators will cause the Sponsor’s reports on Form FR Y-6 and
FR Y-9 to be delivered to the Holder promptly following their filing with the
Federal Reserve.

 

SECTION 10.3. 
Banking.  The Trust shall
maintain one or more bank accounts in the United States, as defined for
purposes of Treasury Regulations § 301.7701-7, in the name and for the sole
benefit of the Trust; provided, however, that all payments of
funds in respect of the Debentures held by the Institutional Trustee shall be
made directly to the Property Account and no other funds of the Trust shall be
deposited in the Property Account. The sole signatories for such accounts
(including the Property Account) shall be designated by the Institutional
Trustee.

 

SECTION 10.4. 
Withholding.  The
Institutional Trustee or any Paying Agent and the Administrators shall comply
with all withholding requirements under United States federal, state and local
law. The Institutional Trustee or any Paying Agent shall request, and each
Holder shall provide to the Institutional Trustee or any Paying Agent, such
forms or certificates as are necessary to establish an exemption from withholding
with respect to the Holder, and any representations and forms as shall
reasonably be requested by the Institutional Trustee or any Paying Agent to
assist it in determining the extent of, and in fulfilling, its withholding
obligations. The Administrators shall file required forms with applicable
jurisdictions and, unless an exemption from withholding is properly established
by a Holder, shall remit amounts withheld with respect to the Holder to
applicable jurisdictions. To the extent that the Institutional Trustee or any
Paying Agent is required to withhold and pay over any amounts to any authority
with respect to distributions or allocations to any Holder, the amount withheld
shall be deemed to be a Distribution to the Holder in the amount of the withholding.
In the event of any claimed overwithholding, Holders shall be limited to an
action against the applicable jurisdiction. If the amount required to be
withheld was not withheld from actual Distributions made, the Institutional
Trustee or any Paying Agent may reduce subsequent Distributions by the amount
of such withholding.

 

ARTICLE XI

AMENDMENTS AND MEETINGS

 

SECTION 11.1. 
Amendments.  (a)  Except as otherwise provided in this
Declaration or by any applicable terms of the Securities, this Declaration may
only be amended by a written instrument approved and executed by:

 

44

 

(i)                                     the
Institutional Trustee,

 

(ii)                                  if
the amendment affects the rights, powers, duties, obligations or immunities of
the Delaware Trustee, the Delaware Trustee,

 

(iii)                               if
the amendment affects the rights, powers, duties, obligations or immunities of
the Administrators, the Administrators, and

 

(iv)                              the
Holders of a Majority in liquidation amount of the Common Securities.

 

(b)                                 Notwithstanding
any other provision of this Article XI, no amendment shall be made, and
any such purported amendment shall be void and ineffective:

 

(i)                                     unless
the Institutional Trustee shall have first received

 

(A)                              an
Officers’ Certificate from each of the Trust and the Sponsor that such
amendment is permitted by, and conforms to, the terms of this Declaration
(including the terms of the Securities); and

 

(B)                                an
opinion of counsel (who may be counsel to the Sponsor or the Trust) that such
amendment is permitted by, and conforms to, the terms of this Declaration
(including the terms of the Securities) and that all conditions precedent to
the execution and delivery of such amendment have been satisfied; or

 

(ii)                                  if
the result of such amendment would be to

 

(A)                              cause
the Trust to cease to be classified for purposes of United States federal
income taxation as a grantor trust;

 

(B)                                reduce
or otherwise adversely affect the powers of the Institutional Trustee in
contravention of the Trust Indenture Act;

 

(C)                                cause
the Trust to be deemed to be an Investment Company required to be registered
under the Investment Company Act; or

 

(D)                               cause
the Debenture Issuer to be unable to treat an amount equal to the Liquidation
Amount of the Debentures as “Tier 1 Capital” for purposes of the capital
adequacy guidelines of the Federal Reserve.

 

(c)                                  Except
as provided in Section 11.1(d), (e) or (g), no amendment shall be made,
and any such purported amendment shall be void and ineffective, unless the
Holders of a Majority in liquidation amount of the Capital Securities shall
have consented to such amendment.

 

(d)                                 In
addition to and notwithstanding any other provision in this Declaration,
without the consent of each affected Holder, this Declaration may not be
amended to (i) change

 

45

 

the amount or timing of any Distribution on the
Securities or otherwise adversely affect the amount of any Distribution
required to be made in respect of the Securities as of a specified date or (ii)
restrict the right of a Holder to institute suit for the enforcement of any
such payment on or after such date.

 

(e)                                  Sections 9.1 (b) and 9.1 (c) and this Section 11.1 shall not
be amended without the consent of all of the Holders of the Securities.

 

(f)                                    The
rights of the Holders of the Capital Securities and Common Securities, as
applicable, under Article IV to increase or decrease the number of, and
appoint and remove, Trustees shall not be amended without the consent of the
Holders of a Majority in liquidation amount of the Capital Securities or Common
Securities, as applicable.

 

(g)                                 This
Declaration may be amended by the Institutional Trustee and the Holder of a
Majority in liquidation amount of the Common Securities without the consent of
the Holders of the Capital Securities to:

 

(i)                                     cure
any ambiguity;

 

(ii)                                  correct
or supplement any provision in this Declaration that may be defective or
inconsistent with any other provision of this Declaration;

 

(iii)                               add
to the covenants, restrictions or obligations of the Sponsor; or

 

(iv)                              modify,
eliminate or add to any provision of this Declaration to such extent as may be
necessary or desirable, including, without limitation, to ensure that the Trust
will be classified for United States federal income tax purposes at all times
as a grantor trust and will not be required to register as an Investment
Company under the Investment Company Act (including without limitation to
conform to any change in Rule 3a-5, Rule 3a-7 or any other applicable rule
under the Investment Company Act or written change in interpretation or
application thereof by any legislative body, court, government agency or
regulatory authority) which amendment does not have a material adverse effect
on the right, preferences or privileges of the Holders of Securities;

 

provided,
however, that no such modification, elimination or addition referred to
in clauses (i), (ii), (iii) or (iv) shall adversely affect the powers,
preferences or rights of Holders of Capital Securities.

 

SECTION 11.2. 
Meetings of the Holders of the Securities; Action by Written Consent.

 

(a)                                  Meetings
of the Holders of any class of Securities may be called at any time by the
Administrators (or as provided in the terms of the Securities) to consider and
act on any matter on which Holders of such class of Securities are entitled to
act under the terms of this Declaration, the terms of the Securities or the
rules of any stock exchange on which the Capital Securities are listed or
admitted for trading, if any. The Administrators shall call a meeting of the
Holders of such class if directed to do so by the Holders of not less than 10%
in liquidation amount of such class of Securities. Such direction shall be
given by delivering to the

 

46

 

Administrators one or more calls in a writing stating
that the signing Holders of the Securities wish to call a meeting and
indicating the general or specific purpose for which the meeting is to be
called. Any Holders of the Securities calling a meeting shall specify in
writing the Certificates held by the Holders of the Securities exercising the
right to call a meeting and only those Securities represented by such
Certificates shall be counted for purposes of determining whether the required
percentage set forth in the second sentence of this paragraph has been met.

 

(b)                                 Except
to the extent otherwise provided in the terms of the Securities, the following
provisions shall apply to meetings of Holders of the Securities:

 

(i)                                     notice
of any such meeting shall be given to all the Holders of the Securities having
a right to vote thereat at least 7 days and not more than 60 days before the
date of such meeting. Whenever a vote, consent or approval of the Holders of
the Securities is permitted or required under this Declaration or the rules of
any stock exchange on which the Capital Securities are listed or admitted for
trading, if any, such vote, consent or approval may be given at a meeting of
the Holders of the Securities. Any action that may be taken at a meeting of the
Holders of the Securities may be taken without a meeting if a consent in
writing setting forth the action so taken is signed by the Holders of the
Securities owning not less than the minimum amount of Securities that would be
necessary to authorize or take such action at a meeting at which all Holders of
the Securities having a right to vote thereon were present and voting. Prompt
notice of the taking of action without a meeting shall be given to the Holders
of the Securities entitled to vote who have not consented in writing. The
Administrators may specify that any written ballot submitted to the Holders of
the Securities for the purpose of taking any action without a meeting shall be
returned to the Trust within the time specified by the Administrators;

 

(ii)                                  each
Holder of a Security may authorize any Person to act for it by proxy on all
matters in which a Holder of Securities is entitled to participate, including
waiving notice of any meeting, or voting or participating at a meeting. No
proxy shall be valid after the expiration of 11 months from the date thereof
unless otherwise provided in the proxy. Every proxy shall be revocable at the
pleasure of the Holder of the Securities executing it. Except as otherwise
provided herein, all matters relating to the giving, voting or validity of
proxies shall be governed by the General Corporation Law of the State of
Delaware relating to proxies, and judicial interpretations thereunder, as if
the Trust were a Delaware corporation and the Holders of the Securities were
stockholders of a Delaware corporation; each meeting of the Holders of the
Securities shall be conducted by the Administrators or by such other Person
that the Administrators may designate; and

 

(iii)                               unless
the Statutory Trust Act, this Declaration, the terms of the Securities, the
Trust Indenture Act or the listing rules of any stock exchange on which the
Capital Securities are then listed for trading, if any, otherwise provides, the
Administrators, in their sole discretion, shall establish all other provisions
relating to meetings of Holders of Securities, including notice of the time,
place or

 

47

 

purpose of any meeting at
which any matter is to be voted on by any Holders of the Securities, waiver of
any such notice, action by consent without a meeting, the establishment of a
record date, quorum requirements, voting in person or by proxy or any other
matter with respect to the exercise of any such right to vote; provided,
however, that each meeting shall be conducted in the United States (as
that term is defined in Treasury Regulations § 301.7701-7).

 

ARTICLE XII

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE

AND DELAWARE TRUSTEE

 

SECTION 12.1.  Representations and Warranties of Institutional Trustee.  The Trustee that acts as initial
Institutional Trustee represents and warrants to the Trust and to the Sponsor
at the date of this Declaration, and each Successor Institutional Trustee
represents and warrants to the Trust and the Sponsor at the time of the Successor
Institutional Trustee’s acceptance of its appointment as Institutional Trustee,
that:

 

(a)                                  the
Institutional Trustee is a banking corporation or national association with
trust powers, duly organized, validly existing and in good standing under the
laws of the State of Delaware or the United States of America, respectively,
with trust power and authority to execute and deliver, and to carry out and
perform its obligations under the terms of, this Declaration;

 

(b)                                 the
Institutional Trustee has a combined capital and surplus of at least fifty
million U.S. dollars ($50,000,000);

 

(c)                                  the
Institutional Trustee is not an affiliate of the Sponsor, nor does the
Institutional Trustee offer or provide credit or credit enhancement to the
Trust;

 

(d)                                 the
execution, delivery and performance by the Institutional Trustee of this
Declaration has been duly authorized by all necessary action on the part of the
Institutional Trustee. This Declaration has been duly executed and delivered by
the Institutional Trustee, and under Delaware law (excluding any securities
laws) constitutes a legal, valid and binding obligation of the Institutional
Trustee, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, reorganization, moratorium, insolvency and other similar
laws affecting creditors’ rights generally and to general principles of equity
and the discretion of the court (regardless of whether considered in a
proceeding in equity or at law);

 

(e)                                  the
execution, delivery and performance of this Declaration by the Institutional
Trustee does not conflict with or constitute a breach of the charter or by-laws
of the Institutional Trustee; and

 

(f)                                    no
consent, approval or authorization of, or registration with or notice to, any
state or federal banking authority governing the trust powers of the
Institutional Trustee is required for the execution, delivery or performance by
the Institutional Trustee of this Declaration.

 

48

 

SECTION 12.2. 
Representations and Warranties of Delaware Trustee.  The Trustee that acts as initial Delaware
Trustee represents and warrants to the Trust and to the Sponsor at the date of
this Declaration, and each Successor Delaware Trustee represents and warrants
to the Trust and the Sponsor at the time of the Successor Delaware Trustee’s
acceptance of its appointment as Delaware Trustee that:

 

(a)                                  if
it is not a natural person, the Delaware Trustee is duly organized, validly
existing and in good standing under the laws of the State of Delaware;

 

(b)                                 if
it is not a natural person, the execution, delivery and performance by the
Delaware Trustee of this Declaration has been duly authorized by all necessary
corporate action on the part of the Delaware Trustee. This Declaration has been
duly executed and delivered by the Delaware Trustee, and under Delaware law
(excluding any securities laws) constitutes a legal, valid and binding
obligation of the Delaware Trustee, enforceable against it in accordance with
its terms, subject to applicable bankruptcy, reorganization, moratorium,
insolvency and other similar laws affecting creditors’ rights generally and to
general principles of equity and the discretion of the court (regardless of
whether considered in a proceeding in equity or at law);

 

(c)                                  if
it is not a natural person, the execution, delivery and performance of this
Declaration by the Delaware Trustee does not conflict with or constitute a
breach of the charter or by-laws of the Delaware Trustee;

 

(d)                                 it
has trust power and authority to execute and deliver, and to carry out and
perform its obligations under the terms of, this Declaration;

 

(e)                                  no
consent, approval or authorization of, or registration with or notice to, any
state or federal banking authority governing the trust powers of the Delaware
Trustee is required for the execution, delivery or performance by the Delaware
Trustee of this Declaration; and

 

(f)                                    the
Delaware Trustee is a natural person who is a resident of the State of Delaware
or, if not a natural person, it is an entity which has its principal place of
business in the State of Delaware and, in either case, a Person that satisfies
for the Trust the requirements of Section 3807 of the Statutory Trust Act.

 

ARTICLE
XIII

MISCELLANEOUS

 

SECTION 13.1. 
Notices.  All notices provided
for in this Declaration shall be in writing, duly signed by the party giving
such notice, and shall be delivered, telecopied (which telecopy shall be
followed by notice delivered or mailed by first class mail) or mailed by first
class mail, as follows:

 

(a)                                  if
given to the Trust, in care of the Administrators at the Trust’s mailing
address set forth below (or such other address as the Trust may give notice of
to the Holders of the Securities):

 

Mission
Community Capital Trust I

 

49

 

c/o Mission Community Bancorp

581 Higuera Street

San Luis Obispo, CA 93401

Attention: William C. Demmin

Telecopy: (805) 597-6151

Telephone: (805) 782-5012

 

(b)                                 if
given to the Delaware Trustee, at the mailing address set forth below (or such
other address as the Delaware Trustee may give notice of to the Holders of the
Securities):

 

Wells Fargo Delaware Trust Company

919 Market Street Suite 700

Wilmington, DE 19801

Attention: Corporate Trust Division

Telecopy: 302-575-2006

Telephone: 302-575-2005

 

(c)                                  if
given to the Institutional Trustee, at the Institutional Trustee’s mailing
address set forth below (or such other address as the Institutional Trustee may
give notice of to the Holders of the Securities):

 

Wells Fargo Bank, National Association

919 Market Street Suite 700

Wilmington, DE 19801

Attention: Corporate Trust Division

Telecopy: 302-575-2006

Telephone: 302-575-2005

 

(d)                                 if
given to the Holder of the Common Securities, at the mailing address of the
Sponsor set forth below (or such other address as the Holder of the Common
Securities may give notice of to the Trust):

 

Mission Community Bancorp

581 Higuera Street

San Luis Obispo, CA 93401

Attention: William C. Demmin

Telecopy: (805) 597-6151

Telephone: (805) 782-5012

 

(e)                                  if
given to any other Holder, at the address set forth on the books and records of
the Trust.

 

All such
notices shall be deemed to have been given when received in person, telecopied
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.

 

50

 

SECTION 13.2. 
Governing Law.  This
Declaration and the rights and obligations of the parties hereunder shall be
governed by and interpreted in accordance with the law of the State of Delaware
and all rights, obligations and remedies shall be governed by such laws without
regard to the principles of conflict of laws of the State of Delaware or any
other jurisdiction that would call for the application of the law of any
jurisdiction other than the State of Delaware.

 

SECTION 13.3. 
Submission to Jurisdiction.

 

(a)                                  Each
of the parties hereto agrees that any suit, action or proceeding arising out of
or based upon this Declaration, or the transactions contemplated hereby, may be
instituted in any of the courts of the State of New York the United States
District Courts and in each case located in the Borough of Manhattan, City and
State of New York, and further agrees to submit to the jurisdiction of
Delaware, and to any actions that are instituted in state or Federal court in
Wilmington, Delaware and any competent court in the place of its corporate
domicile in respect of actions brought against it as a defendant. In addition,
each such party irrevocably waives, to the fullest extent permitted by law, any
objection which it may now or hereafter have to the laying of the venue of such
suit, action or proceeding brought in any such court and irrevocably waives any
claim that any such suit, action or proceeding brought in any such court has
been brought in an inconvenient forum and irrevocably waives any right to which
it may be entitled on account of its place of corporate domicile. Each such
party hereby irrevocably waives any and all right to trial by jury in any legal
proceeding arising out of or relating to this Declaration or the transactions
contemplated hereby. Each such party agrees that final judgment in any
proceedings brought in such a court shall be conclusive and binding upon it and
may be enforced in any court to the jurisdiction of which it is subject by a
suit upon such judgment.

 

(b)                                 Each
of the Sponsor, the Trustees, the Administrators and the Holder of the Common
Securities irrevocably consents to the service of process on it in any such
suit, action or proceeding by the mailing thereof by registered or certified
mail, postage prepaid, to it at its address given in or pursuant to
Section 13.1 hereof.

 

(c)                                  To
the extent permitted by law, nothing herein contained shall preclude any party
from effecting service of process in any lawful manner or from bringing any
suit, action or proceeding in respect of this Declaration in any other state,
country or place.

 

SECTION 13.4. 
Intention of the Parties. 
It is the intention of the parties hereto that the Trust be classified
for United States federal income tax purposes as a grantor trust. The
provisions of this Declaration shall be interpreted to further this intention
of the parties.

 

SECTION 13.5. 
Headings.  Headings
contained in this Declaration are inserted for convenience of reference only
and do not affect the interpretation of this Declaration or any provision
hereof.

 

SECTION 13.6. 
Successors and Assigns. 
Whenever in this Declaration any of the parties hereto is named or
referred to, the successors and assigns of such party shall be deemed to be
included, and all covenants and agreements in this Declaration by the Sponsor
and the Trustees shall bind and inure to the benefit of their respective
successors and assigns, whether or not so expressed.

 

51

 

SECTION 13.7. 
Partial  Enforceability. 
If any provision of this Declaration, or the application of such
provision to any Person or circumstance, shall be held invalid, the remainder
of this Declaration, or the application of such provision to persons or
circumstances other than those to which it is held invalid, shall not be
affected thereby.

 

SECTION 13.8. 
Counterparts.  This
Declaration may contain more than one counterpart of the signature page and
this Declaration may be executed by the affixing of the signature of each of
the Trustees and Administrators to any of such counterpart signature pages. All
of such counterpart signature pages shall be read as though one, and they shall
have the same force and effect as though all of the signers had signed a single
signature page.

 

52

 

IN WITNESS
WHEREOF, the undersigned have caused this Declaration to be duly executed as of
the day and year first above written.

 

	
   

  	
  WELLS FARGO DELAWARE TRUST COMPANY,

  
	
   

  	
   

  	
  as Delaware Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
   

  	
  as Institutional Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Mission Community Bancorp

  
	
   

  	
   

  	
  as Sponsor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Administrator

  
									

 

53

 

ANNEX I

 

TERMS OF

TP SECURITIES AND

COMMON SECURITIES

 

Pursuant to
Section 6.1 of the Amended and Restated Declaration of Trust, dated as of October 14,
2003 (as amended from time to time, the “Declaration”), the designation,
rights, privileges, restrictions, preferences and other terms and provisions of
the Capital Securities and the Common Securities are set out below (each
capitalized term used but not defined herein has the meaning set forth in the
Declaration):

 

1.                                       Designation
and Number.

 

(a)                                  Capital
Securities. 3,000 Capital Securities of Mission Community Capital Trust I (the
“Trust”), with an aggregate stated liquidation amount with respect to the
assets of the Trust of Three Million Dollars ($3,000,000) and a stated
liquidation amount with respect to the assets of the Trust of $1,000 per
Capital Security, are hereby designated for the purposes of identification only
as the “TP Securities” (the “Capital Securities”). The Capital Security
Certificates evidencing the Capital Securities shall be substantially in the
form of Exhibit A-1 to the Declaration, with such changes and additions thereto
or deletions therefrom as may be required by ordinary usage, custom or practice
or to conform to the rules of any stock exchange on which the Capital
Securities are listed, if any.

 

(b)                                 Common
Securities.93 Common Securities of the Trust (the “Common Securities”) will be
evidenced by Common Security Certificates substantially in the form of Exhibit
A-2 to the Declaration, with such changes and additions thereto or deletions
therefrom as may be required by ordinary usage, custom or practice. In the
absence of an Event of Default, the Common Securities will have an aggregate
stated liquidation amount with respect to the assets of the Trust of Ninety
Three Thousand Dollars ($93,000) and a stated liquidation amount with respect
to the assets of the Trust of $1,000 per Common Security.

 

2.                                       Distributions.
 (a) Distributions payable on each
Security will be payable at a variable per annum rate of interest, reset
quarterly, equal to LIBOR, as determined on the LIBOR Determination Date, plus 2.95%
(the “Coupon Rate”) of the stated liquidation amount of $1,000 per Security,
such rate being the rate of interest payable on the Debentures to be held by
the Institutional Trustee. Except as set forth below in respect of an Extension
Period, Distributions in arrears for more than one quarterly period will bear
interest thereon compounded quarterly at the applicable Coupon Rate for each
such quarterly period (to the extent permitted by applicable law). The term
“Distributions” as used herein includes cash distributions, any such compounded
distributions and any Additional Interest payable on the Debentures unless
otherwise stated. A Distribution is payable only to the extent that payments
are made in respect of the Debentures held by the Institutional Trustee and to
the extent the Institutional Trustee has funds legally available in the
Property Account therefor. The amount of Distributions payable for any period
will be computed for any full quarterly Distribution period on the basis of a
360-day year and the actual number of days elapsed in the relevant Distribution
period; provided, however, that upon the occurrence of a Special Event
redemption pursuant to paragraph 4(a) below the amounts

 

A-I-1

 

payable pursuant to this Declaration shall be
calculated as set forth in the definition of Special Redemption Price.

 

(b)                                 LIBOR
shall be determined by the Calculation Agent in accordance with the following
provisions:

 

(1)                                  On
the second LIBOR Business Day (provided, that on such day commercial
banks are open for business (including dealings in foreign currency deposits)
in London (a “LIBOR Banking Day”), and otherwise the next preceding LIBOR
Business Day that is also a LIBOR Banking Day) prior to January 15, April 15,
July 15 and October 15 (except, with respect to the first interest
payment period, on October 10, 2003), (each such day, a “LIBOR
Determination Date”), LIBOR shall equal the rate, as obtained by the
Calculation Agent for three-month U.S. Dollar deposits in Europe, which appears
on Telerate Page 3750 (as defined in the International Swaps and Derivatives
Association, Inc. 1991 Interest Rate and Currency Exchange Definitions) or such
other page as may replace such Telerate Page 3750, as of 11:00 a.m. (London
time) on such LIBOR Determination Date, as reported by Bloomberg Financial
Markets Commodities News.  “LIBOR
Business Day” means any day that is not a Saturday, Sunday or other day on
which commercial banking institutions in New York, New York or Wilmington,
Delaware are authorized or obligated by law or executive order to be closed. If
such rate is superseded on Telerate Page 3750 by a corrected rate before 12:00
noon (London time) on the same LIBOR Determination Date, the corrected rate as
so substituted will be the applicable LIBOR for that LIBOR Determination Date.

 

(2)                                  If,
on any LIBOR Determination Date, such rate does not appear on Telerate Page
3750 as reported by Bloomberg Financial Markets Commodities News or such other
page as may replace such Telerate Page 3750, the Calculation Agent shall
determine the arithmetic mean of the offered quotations of the Reference Banks
(as defined below) to leading banks in the London interbank market for
three-month U.S. Dollar deposits in Europe (in an amount determined by the
Calculation Agent) by reference to requests for quotations as of approximately
11:00 a.m. (London time) on the LIBOR Determination Date made by the
Calculation Agent to the Reference Banks. If, on any LIBOR Determination Date,
at least two of the Reference Banks provide such quotations, LIBOR shall equal
the arithmetic mean of such quotations. If, on any LIBOR Determination Date,
only one or none of the Reference Banks provide such a quotation, LIBOR shall
be deemed to be the arithmetic mean of the offered quotations that at least two
leading banks in the City of New York (as selected by the Calculation Agent)
are quoting on the relevant LIBOR Determination Date for three-month U.S.
Dollar deposits in Europe at approximately 11:00 a.m. (London time) (in an
amount determined by the Calculation Agent). As used herein, “Reference Banks”
means four major banks in the London interbank market selected by the
Calculation Agent.

 

A-I-2

 

(3)                                  If
the Calculation Agent is required but is unable to determine a rate in
accordance with at least one of the procedures provided above, LIBOR shall be
LIBOR in effect on the previous LIBOR Determination Date (whether or not LIBOR
for such period was in fact determined on such LIBOR Determination Date).

 

(c)                                  All
percentages resulting from any calculations on the Securities will be rounded,
if necessary, to the nearest one hundred-thousandth of a percentage point, with
five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or
..09876545) being rounded to 9.87655% (or .0987655)), and all dollar amounts
used in or resulting from such calculation will be rounded to the nearest cent
(with one-half cent being rounded upward).

 

(d)                                 On
each LIBOR Determination Date, the Calculation Agent shall notify, in writing,
the Sponsor and the Paying Agent of the applicable Coupon Rate in effect for
the related Distribution payment period. The Calculation Agent shall, upon the
request of the Holder of any Securities, provide the Coupon Rate then in
effect. All calculations made by the Calculation Agent in the absence of
manifest error shall be conclusive for all purposes and binding on the Sponsor
and the Holders of the Securities. The Paying Agent shall be entitled to rely
on information received from the Calculation Agent or the Sponsor as to the
Coupon Rate. The Sponsor shall, from time to time, provide any necessary
information to the Paying Agent relating to any original issue discount and
interest on the Securities that is included in any payment and reportable for
taxable income calculation purposes.

 

(e)                                  Distributions
on the Securities will be cumulative, will accrue from the date of original
issuance, and will be payable, subject to extension of Distribution payment
periods as described herein, quarterly in arrears on January 7, April 7,
July 7 and October 7 of each year, commencing January 7, 2004
(each, a “Distribution Payment Date”). Subject to prior Submission of Notice
(as defined in the Indenture), the Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures by extending the
interest payment period for up to 20 consecutive quarterly periods (each, an
“Extension Period”) at any time and from time to time on the Debentures,
subject to the conditions described below, during which Extension Period no
interest shall be due and payable (except any Additional Interest that may be
due and payable). During any Extension Period, interest will continue to accrue
on the Debentures, and interest on such accrued interest (such accrued interest
and interest thereon referred to herein as “Deferred Interest”) will accrue at
an annual rate equal to the Coupon Rate in effect for each such Extension
Period, compounded quarterly from the date such Deferred Interest would have
been payable were it not for the Extension Period, to the extent permitted by
law. No Extension Period may end on a date other than a Distribution Payment
Date. At the end of any such Extension Period, the Debenture Issuer shall pay
all Deferred Interest then accrued and unpaid on the Debentures; provided,
however, that no Extension Period may extend beyond the Maturity Date
and provided, further, that, during any such Extension Period,
the Debenture Issuer may 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 Debenture Issuer’s capital stock or (ii) make any payment due on
or repay, repurchase or redeem any debt securities of the Debenture Issuer that
rank pari passu in all respects
with or junior in interest to the Debentures (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Debenture
Issuer (A) in connection with any employment contract, benefit plan or other
similar arrangement with

 

A-I-3

 

or for the benefit of one or more employees, officers,
directors or consultants, (B) in connection with a dividend reinvestment or
stockholder stock purchase plan or (C) in connection with the issuance of
capital stock of the Debenture Issuer (or securities convertible into or
exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a
result of any exchange or conversion of any class or series of the Debenture
Issuer’s capital stock (or any capital stock of a subsidiary of the Debenture
Issuer) for any class or series of the Debenture Issuer’s capital stock or of
any class or series of the Debenture Issuer’s indebtedness for any class or
series of the Debenture Issuer’s capital stock, (c) the purchase of fractional
interests in shares of the Debenture Issuer’s capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being converted
or exchanged, (d) any declaration of a dividend in connection with any
stockholder’s rights plan, or the issuance of rights, stock or other property
under any stockholder’s rights plan, or the redemption or repurchase of rights
pursuant thereto, or (e) any dividend in the form of stock, warrants, options
or other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu
with or junior to such stock). Prior to the termination of any Extension
Period, the Debenture Issuer may further extend such period, provided,
that such period together with all such previous and further consecutive
extensions thereof shall not exceed 20 consecutive quarterly periods, or extend
beyond the Maturity Date. Upon the termination of any Extension Period and upon
the payment of all Deferred Interest, the Debenture Issuer may commence a new
Extension Period, subject to the foregoing requirements. No interest or
Deferred Interest shall be due and payable during an Extension Period, except
at the end thereof, but Deferred Interest shall accrue upon each installment of
interest that would otherwise have been due and payable during such Extension Period
until such installment is paid. If Distributions are deferred, the
Distributions due shall be paid on the date that the related Extension Period
terminates, or, if such date is not a Distribution Payment Date, on the
immediately following Distribution Payment Date, to Holders of the Securities
as they appear on the books and records of the Trust on the record date
immediately preceding such date. Distributions on the Securities must be paid
on the dates payable (after giving effect to any Extension Period) to the
extent that the Trust has funds legally available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds available
for Distribution to the Holders of the Securities will be limited to payments
received from the Debenture Issuer. The payment of Distributions out of moneys
held by the Trust is guaranteed by the Guarantor pursuant to the Guarantee.

 

(f)                                    Distributions
on the Securities will be payable to the Holders thereof as they appear on the
books and records of the Registrar on the relevant record dates. The relevant
record dates shall be selected by the Administrators, which dates shall be 15
days before the relevant payment dates. Distributions payable on any Securities
that are not punctually paid on any Distribution Payment Date, as a result of
the Debenture Issuer having failed to make a payment under the Debentures, as
the case may be, when due (taking into account any Extension Period), will
cease to be payable to the Person in whose name such Securities are registered
on the relevant record date, and such defaulted Distribution will instead be
payable to the Person in whose name such Securities are registered on the
special record date or other specified date determined in accordance with the
Indenture. If any date on which Distributions are payable on the Securities is
not a Business Day, then payment of the Distribution payable on such date will
be made on the next succeeding day that is a Business Day except that, if such
Business Day is in

 

A-I-4

 

the next succeeding calendar year, such payment shall
be made on the immediately preceding Business Day, in each case with the same
force and effect as if made on such payment date.

 

(g)                                 In
the event that there is any money or other property held by or for the Trust
that is not accounted for hereunder, such property shall be distributed pro
rata (as defined herein) among the Holders of the Securities.

 

3.                                       Liquidation
Distribution Upon Dissolution.  In
the event of the voluntary or involuntary liquidation, dissolution, winding-up
or termination of the Trust (each, a “Liquidation”) other than in connection
with a redemption of the Debentures, the Holders of the Securities will be
entitled to receive out of the assets of the Trust available for distribution
to Holders of the Securities, after satisfaction of liabilities to creditors of
the Trust (to the extent not satisfied by the Debenture Issuer), distributions
equal to the aggregate of the stated liquidation amount of $1,000 per Security
plus accrued and unpaid Distributions thereon to the date of payment (such
amount being the “Liquidation Distribution”), unless in connection with such
Liquidation, the Debentures in an aggregate stated principal amount equal to the
aggregate stated liquidation amount of such Securities, with an interest rate
equal to the Coupon Rate of, and bearing accrued and unpaid interest in an
amount equal to the accrued and unpaid Distributions on, and having the same
record date as, such Securities, after paying or making reasonable provision to
pay all claims and obligations of the Trust in accordance with
Section 3808(e) of the Statutory Trust Act, shall be distributed on a Pro
Rata basis to the Holders of the Securities in exchange for such Securities.

 

The Sponsor,
as the Holder of all of the Common Securities, has the right at any time to
dissolve the Trust (including without limitation upon the occurrence of a Tax
Event, an Investment Company Event or a Capital Treatment Event), subject to
the receipt by the Debenture Issuer of prior approval from the Board of
Governors of the Federal Reserve System (the “Federal Reserve”), if then
required under applicable capital guidelines or policies of the Federal Reserve
and, after satisfaction of liabilities to creditors of the Trust, cause the
Debentures to be distributed to the Holders of the Securities on a Pro Rata
basis in accordance with the aggregate stated liquidation amount thereof.

 

The Trust
shall dissolve on the first to occur of (i) October 14, 2038, the
expiration of the term of the Trust, (ii) a Bankruptcy Event with respect to
the Sponsor, the Trust or the Debenture Issuer, (iii) (other than in connection
with a merger, consolidation or similar transaction not prohibited by the Indenture,
this Declaration or the Guarantee, as the case may be) the filing of a
certificate of dissolution of the Sponsor or upon the revocation of the charter
of the Sponsor and the expiration of 90 days after the date of revocation
without a reinstatement thereof, (iv) the distribution to the Holders of the
Securities of the Debentures, upon exercise of the right of the Holder of all
of the outstanding Common Securities to dissolve the Trust as described above,
(v) the entry of a decree of a judicial dissolution of the Sponsor or the
Trust, or (vi) when all of the Securities shall have been called for redemption
and the amounts necessary for redemption thereof shall have been paid to the
Holders in accordance with the terms of the Securities. As soon as practicable
after the dissolution of the Trust and upon completion of the winding up of the
Trust, the Trust shall terminate upon the filing of a certificate of
cancellation with the Secretary of State of the State of Delaware.

 

A-I-5

 

If a
Liquidation of the Trust occurs as described in clause (i), (ii), (iii) or (v)
in the immediately preceding paragraph, the Trust shall be liquidated by the
Institutional Trustee of the Trust as expeditiously as such Trustee determines
to be possible by distributing, after satisfaction of liabilities to creditors
of the Trust as provided by applicable law, to the Holders of the Securities,
the Debentures on a Pro Rata basis to the extent not satisfied by the Debenture
Issuer, unless such distribution is determined by the Institutional Trustee not
to be practical, in which event such Holders will be entitled to receive out of
the assets of the Trust available for distribution to the Holders, after
satisfaction of liabilities to creditors of the Trust to the extent not
satisfied by the Debenture Issuer, an amount equal to the Liquidation
Distribution. An early Liquidation of the Trust pursuant to clause (iv) of the
immediately preceding paragraph shall occur if the Institutional Trustee
determines that such Liquidation is possible by distributing, after
satisfaction of liabilities to creditors of Trust, to the Holders of the
Securities on a Pro Rata basis, the Debentures, and such distribution occurs.

 

If, upon any
such Liquidation, the Liquidation Distribution can be paid only in part because
the Trust has insufficient assets available to pay in full the aggregate
Liquidation Distribution, then the amounts payable directly by the Trust on
such Capital Securities shall be paid to the Holders of the Securities on a Pro
Rata basis, except that if an Event of Default has occurred and is continuing,
the Capital Securities shall have a preference over the Common Securities with
regard to such distributions.

 

Upon any such
Liquidation of the Trust involving a distribution of the Debentures, if at the
time of such Liquidation, the Capital Securities were rated by at least one
nationally-recognized statistical rating organization, the Debenture Issuer
will use its reasonable best efforts to obtain from at least one such or other
rating organization a rating for the Debentures.

 

After the date
for any distribution of the Debentures upon dissolution of the Trust, (i) the
Securities of the Trust will be deemed to be no longer outstanding, (ii) any certificates
representing the Capital Securities will be deemed to represent undivided
beneficial interests in such of the Debentures as have an aggregate principal
amount equal to the aggregate stated liquidation amount of, with an interest
rate identical to the distribution rate of, and bearing accrued and unpaid
interest equal to accrued and unpaid distributions on, the Securities until
such certificates are presented to the Debenture Issuer or its agent for
transfer or reissuance (and until such certificates are so surrendered, no
payments of interest or principal shall be made to Holders of Securities in
respect of any payments due and payable under the Debentures) and (iii) all
rights of Holders of Securities under the Capital Securities or the Common Securities,
as applicable, shall cease, except the right of such Holders to receive
Debentures upon surrender of certificates representing such Securities.

 

4.                                       Redemption
and Distribution.

 

(a)                                  The
Debentures will mature on October 7, 2033. The Debentures may be redeemed
by the Debenture Issuer, in whole or in part, on any January 7, April 7,
July 7 or October 7 on or after October 7, 2008 at the
Redemption Price, upon not less than 30 nor more than 60 days’ notice to
Holders of such Debentures. In addition, upon the occurrence and continuation
of a Tax Event, an Investment Company Event or a Capital Treatment Event, the
Debentures may be redeemed by the Debenture Issuer in whole or in part, at any
time within 90

 

A-I-6

 

days following the occurrence of such Tax Event,
Investment Company Event or Capital Treatment Event, as the case may be (the
“Special Redemption Date”), at the Special Redemption Price, upon not less than
30 nor more than 60 days’ notice to Holders of the Debentures so long as such
Tax Event, Investment Company Event or Capital Treatment Event, as the case may
be, is continuing. In each case, the right of the Debenture Issuer to redeem
the Debentures is subject to the Debenture Issuer having received prior
approval from the Federal Reserve, if then required under applicable capital
guidelines or policies of the Federal Reserve.

 

“Tax Event”
means the receipt by the Debenture Issuer and the Trust of an opinion of
counsel experienced in such matters to the effect that, as a result of any
amendment to or change (including any announced prospective change) in the laws
or any regulations thereunder of the United States or any political subdivision
or taxing authority thereof or therein, or as a result of any official
administrative pronouncement (including any private letter ruling, technical
advice memorandum, regulatory procedure, notice or announcement) (an
“Administrative Action”) or judicial decision interpreting or applying such
laws or regulations, regardless of whether such Administrative Action or
judicial decision is issued to or in connection with a proceeding involving the
Debenture Issuer or the Trust and whether or not subject to review or appeal,
which amendment, clarification, change, Administrative Action or decision is
enacted, promulgated or announced, in each case on or after the date of
original issuance of the Debentures, there is more than an insubstantial risk
that: (i) the Trust is, or will be within 90 days of the date of such opinion,
subject to United States federal income tax with respect to income received or
accrued on the Debentures; (ii) interest payable by the Debenture Issuer on the
Debentures is not, or within 90 days of the date of such opinion, will not be,
deductible by the Debenture Issuer, 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 (including withholding taxes), duties, assessments or other governmental
charges.

 

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

 

“Capital
Treatment Event” means the receipt by the Debenture Issuer 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 in, the laws, rules or regulations of the United
States or any political subdivision thereof or therein, or as the result of any
official or administrative pronouncement or action or decision interpreting or
applying such laws, rules or regulations, which amendment or change is
effective or which pronouncement, action or decision is announced on or after
the date of original issuance of the Debentures, there is more than an
insubstantial risk that the Debenture Issuer will not, within 90 days of the
date of such opinion, be entitled to treat an amount equal to the aggregate
Liquidation Amount of the Capital Securities as “Tier 1 Capital” (or the then
equivalent thereof) for purposes of the capital adequacy guidelines of the
Federal Reserve (or

 

A-I-7

 

any successor
regulatory authority with jurisdiction over bank holding companies), as then in
effect and applicable to the Debenture Issuer; provided, however, that the
distribution of the Debentures in connection with the Liquidation of the Trust
by the Debenture Issuer shall not in and of itself constitute a Capital
Treatment Event unless such Liquidation shall have occurred in connection with
a Tax Event or an Investment Company Event.

 

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

 

“Redemption
Price” means 100% of the principal amount of the Debentures being redeemed plus
accrued and unpaid interest on such Debentures to the Redemption Date or, in
the case of a redemption due to the occurrence of a Special Event, to the
Special Redemption Date if such Special Redemption Date is on or after October 7,
2008.

 

“Special
Redemption Price” means (1) if the Special Redemption Date is before October 7,
2008, One Hundred Five Percent (105%) of the principal amount to be redeemed
plus any accrued and unpaid interest thereon to the date of such redemption and
(2) if the Special Redemption Date is on or after October 7, 2008, the
Redemption Price for such Special Redemption Date.

 

“Redemption
Date” means the date fixed for the redemption of Capital Securities, which
shall be any January 7,April 7, July 7or October 7 on or
after October 7, 2008.

 

(b)                                 Upon
the repayment in full at maturity or redemption in whole or in part of the
Debentures (other than following the distribution of the Debentures to the
Holders of the Securities), the proceeds from such repayment or payment shall
concurrently be applied to redeem Pro Rata at the applicable Redemption Price,
Securities having an aggregate liquidation amount equal to the aggregate
principal amount of the Debentures so repaid or redeemed; provided, however,
that holders of such Securities shall be given not less than 30 nor more than
60 days’ notice of such redemption (other than at the scheduled maturity of the
Debentures).

 

(c)                                  If
fewer than all the outstanding Securities are to be so redeemed, the Common
Securities and the Capital Securities will be redeemed Pro Rata and the Capital
Securities to be redeemed will be as described in Section 4(e)(ii) below.

 

(d)                                 The
Trust may not redeem fewer than all the outstanding Capital Securities unless
all accrued and unpaid Distributions have been paid on all Capital Securities
for all quarterly Distribution periods terminating on or before the date of
redemption.

 

(e)                                  Redemption
or Distribution Procedures.

 

(i)                                     Notice
of any redemption of, or notice of distribution of the Debentures in exchange
for, the Securities (a “Redemption/Distribution Notice”) will be given by the
Trust by mail to each Holder of Securities to be redeemed or exchanged not
fewer than 30 nor more than 60 days before the date fixed for redemption or
exchange thereof which, in the case of a redemption, will be the date fixed for
redemption of the Debentures. For purposes of the calculation of the date of
redemption or exchange and the dates on which notices are given pursuant

 

A-I-8

 

to this
Section 4(e)(i), a Redemption/Distribution Notice shall be deemed to be
given on the day such notice is first mailed by first-class mail, postage
prepaid, to Holders of such Securities. Each Redemption/Distribution Notice
shall be addressed to the Holders of such Securities at the address of each
such Holder appearing on the books and records of the Registrar. No defect in the
Redemption/Distribution Notice or in the mailing thereof with respect to any
Holder shall affect the validity of the redemption or exchange proceedings with
respect to any other Holder.

 

(ii)                                  In
the event that fewer than all the outstanding Securities are to be redeemed,
the Securities to be redeemed shall be redeemed Pro Rata from each Holder of
Capital Securities.

 

(iii)                               If
the Securities are to be redeemed and the Trust gives a Redemption/Distribution
Notice, which notice may only be issued if the Debentures are redeemed as set
out in this Section 4 (which notice will be irrevocable), then, provided,
that the Institutional Trustee has a sufficient amount of cash in connection
with the related redemption or maturity of the Debentures, the Institutional Trustee
will pay the relevant Redemption Price to the Holders of such Securities by
check mailed to the address of each such Holder appearing on the books and
records of the Trust on the redemption date. If a Redemption/Distribution
Notice shall have been given and funds deposited as required, then immediately
prior to the close of business on the date of such deposit, Distributions will
cease to accrue on the Securities so called for redemption and all rights of
Holders of such Securities so called for redemption will cease, except the
right of the Holders of such Securities to receive the applicable Redemption
Price specified in Section 4(a), but without interest on such Redemption
Price. If any date fixed for redemption of Securities is not a Business Day, then
payment of any such Redemption Price payable on such date will be made on the
next succeeding day that is a Business Day except that, if such Business Day
falls in the next calendar year, such payment will be made on the immediately
preceding Business Day, in each case with the same force and effect as if made
on such date fixed for redemption. If payment of the Redemption Price in
respect of any Securities is improperly withheld or refused and not paid either
by the Trust or by the Debenture Issuer as guarantor pursuant to the Guarantee,
Distributions on such Securities will continue to accrue at the then applicable
rate from the original redemption date to the actual date of payment, in which
case the actual payment date will be considered the date fixed for redemption
for purposes of calculating the Redemption Price. In the event of any
redemption of the Capital Securities issued by the Trust in part, the Trust
shall not be required to (i) issue, register the transfer of or exchange any
Security during a period beginning at the opening of business 15 days before
any selection for redemption of the Capital Securities and ending at the close
of business on the earliest date on which the relevant notice of redemption is
deemed to have been given to all Holders of the Capital Securities to be so
redeemed or (ii) register the transfer of or exchange any Capital Securities so
selected for redemption, in

 

A-I-9

 

whole or in part, except
for the unredeemed portion of any Capital Securities being redeemed in part.

 

(iv)                              Redemption/Distribution
Notices shall be sent by the Administrators on behalf of the Trust (A) in
respect of the Capital Securities, to the Holders thereof, and (B) in respect
of the Common Securities, to the Holder thereof.

 

(v)                                 Subject
to the foregoing and applicable law (including, without limitation, United
States federal securities laws), and provided, that the acquiror is not
the Holder of the Common Securities or the obligor under the Indenture, the
Sponsor or any of its subsidiaries may at any time and from time to time
purchase outstanding Capital Securities by tender, in the open market or by
private agreement.

 

5.                                       Voting
Rights - Capital Securities. 
(a)  Except as provided under
Sections 5(b) and 7 and as otherwise required by law and the Declaration, the
Holders of the Capital Securities will have no voting rights. The
Administrators are required to call a meeting of the Holders of the Capital
Securities if directed to do so by Holders of not less than 10% in liquidation
amount of the Capital Securities.

 

(b)                                 Subject
to the requirements of obtaining a tax opinion by the Institutional Trustee in
certain circumstances set forth in the last sentence of this paragraph, the
Holders of a Majority in liquidation amount of the Capital Securities, voting
separately as a class, have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Institutional
Trustee, or exercising any trust or power conferred upon the Institutional
Trustee under the Declaration, including the right to direct the Institutional
Trustee, as holder of the Debentures, to (i) exercise the remedies available
under the Indenture as the holder of the Debentures, (ii) waive any past default
that is waivable under the Indenture, (iii) exercise
any right to rescind or annul a declaration that the principal of all the
Debentures shall be due and payable or (iv) consent on behalf of all the
Holders of the Capital Securities to any amendment, modification or termination
of the Indenture or the Debentures where such consent shall be required; provided,
however, that, where a consent or action under the Indenture would
require the consent or act of the holders of greater than a simple majority in
principal amount of Debentures (a “Super Majority”) affected thereby, the
Institutional Trustee may only give such consent or take such action at the
written direction of the Holders of not less than the proportion in liquidation
amount of the Capital Securities outstanding which the relevant Super Majority
represents of the aggregate principal amount of the Debentures outstanding. If
the Institutional Trustee fails to enforce its rights under the Debentures
after the Holders of a Majority in liquidation amount of such Capital
Securities have so directed the Institutional Trustee, to the fullest extent
permitted by law, a Holder of the Capital Securities may institute a legal
proceeding directly against the Debenture Issuer to enforce the Institutional Trustee’s
rights under the Debentures without first instituting any legal proceeding
against the Institutional 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 Debenture
Issuer to pay interest or principal on the Debentures on the date the interest
or principal is payable (or in the case of redemption, the redemption date),
then a Holder of record of the Capital Securities

 

A-I-10

 

may directly institute a proceeding for enforcement of
payment, on or after the respective due dates specified in the Debentures, to
such Holder directly of the principal of or interest on the Debentures having
an aggregate principal amount equal to the aggregate liquidation amount of the
Capital Securities of such Holder. The Institutional Trustee shall notify all
Holders of the Capital Securities of any default actually known to the
Institutional Trustee with respect to the Debentures unless (x) such default
has been cured prior to the giving of such notice or (y) the Institutional
Trustee determines in good faith that the withholding of such notice is in the
interest of the Holders of such Capital Securities, except where the default
relates to the payment of principal of or interest on any of the Debentures.
Such notice shall state that such Indenture Event of Default also constitutes
an Event of Default hereunder. Except with respect to directing the time,
method and place of conducting a proceeding for a remedy, the Institutional
Trustee shall not take any of the actions described in clause (i), (ii) or
(iii) above unless the Institutional Trustee has obtained an opinion of tax
counsel to the effect that, as a result of such action, the Trust will not be
classified as other than a grantor trust for United States federal income tax
purposes.

 

In the event
the consent of the Institutional Trustee, as the holder of the Debentures is
required under the Indenture with respect to any amendment, modification or
termination of the Indenture, the Institutional Trustee shall request the
written direction of the Holders of the Securities with respect to such
amendment, modification or termination and shall vote with respect to such
amendment, modification or termination as directed by a Majority in liquidation
amount of the Securities voting together as a single class; provided, however,
that where a consent under the Indenture would require the consent of a Super
Majority, the Institutional Trustee may only give such consent at the written
direction of the Holders of not less than the proportion in liquidation amount
of such Securities outstanding which the relevant Super Majority represents of
the aggregate principal amount of the Debentures outstanding. The Institutional
Trustee shall not take any such action in accordance with the written
directions of the Holders of the Securities unless the Institutional Trustee
has obtained an opinion of tax counsel to the effect that, as a result of such
action, the Trust will not be classified as other than a grantor trust for
United States federal income tax purposes.

 

A waiver of an
Indenture Event of Default will constitute a waiver of the corresponding Event
of Default hereunder. Any required approval or direction of Holders of the
Capital Securities may be given at a separate meeting of Holders of the Capital
Securities convened for such purpose, at a meeting of all of the Holders of the
Securities in the Trust or pursuant to written consent. The Institutional
Trustee will cause a notice of any meeting at which Holders of the Capital
Securities are entitled to vote, or of any matter upon which action by written
consent of such Holders is to be taken, to be mailed to each Holder of record
of the Capital Securities. Each such notice will include a statement setting
forth the following information (i) the date of such meeting or the date by
which such action is to be taken, (ii) a description of any resolution proposed
for adoption at such meeting on which such Holders are entitled to vote or of
such matter upon which written consent is sought and (iii) instructions for the
delivery of proxies or consents. No vote or consent of the Holders of the
Capital Securities will be required for the Trust to redeem and cancel Capital
Securities or to distribute the Debentures in accordance with the Declaration
and the terms of the Securities.

 

A-I-11

 

Notwithstanding
that Holders of the Capital Securities are entitled to vote or consent under
any of the circumstances described above, any of the Capital Securities that
are owned by the Sponsor or any Affiliate of the Sponsor shall not entitle the
Holder thereof to vote or consent and shall, for purposes of such vote or
consent, be treated as if such Capital Securities were not outstanding.

 

In no event
will Holders of the Capital Securities have the right to vote to appoint,
remove or replace the Administrators, which voting rights are vested exclusively
in the Sponsor as the Holder of all of the Common Securities of the Trust.
Under certain circumstances as more fully described in the Declaration, Holders
of Capital Securities have the right to vote to appoint, remove or replace the
Institutional Trustee and the Delaware Trustee.

 

6.                                       Voting
Rights - Common Securities. 
(a)  Except as provided under
Sections 6(b), 6(c) and 7 and as otherwise required by law and the Declaration,
the Common Securities will have no voting rights.

 

(b)                                 The
Holders of the Common Securities are entitled, in accordance with
Article IV of the Declaration, to vote to appoint, remove or replace any
Administrators.

 

(c)                                  Subject
to Section 6.7 of the Declaration and only after each Event of Default (if
any) with respect to the Capital Securities has been cured, waived or otherwise
eliminated and subject to the requirements of the second to last sentence of
this paragraph, the Holders of a Majority in liquidation amount of the Common
Securities, voting separately as a class, may direct the time, method, and
place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under the Declaration, including (i) directing the time,
method, place of conducting any proceeding for any remedy available to the
Debenture Trustee, or exercising any trust or power conferred on the Debenture
Trustee with respect to the Debentures, (ii) waiving any past default and its
consequences that are waivable under the Indenture, or (iii) exercising any
right to rescind or annul a declaration that the principal of all the
Debentures shall be due and payable, provided, however, that, where a consent
or action under the Indenture would require a Super Majority, the Institutional
Trustee may only give such consent or take such action at the written direction
of the Holders of not less than the proportion in liquidation amount of the
Common Securities which the relevant Super Majority represents of the aggregate
principal amount of the Debentures outstanding. Notwithstanding this
Section 6(c), the Institutional Trustee shall not revoke any action
previously authorized or approved by a vote or consent of the Holders of the
Capital Securities. Other than with respect to directing the time, method and
place of conducting any proceeding for any remedy available to the
Institutional Trustee or the Debenture Trustee as set forth above, the
Institutional Trustee shall not take any action described in clause (i), (ii)
or (iii) above, unless the Institutional Trustee has obtained an opinion of tax
counsel to the effect that for the purposes of United States federal income tax
the Trust will not be classified as other than a grantor trust on account of
such action. If the Institutional Trustee fails to enforce its rights under the
Declaration, to the fullest extent permitted by law any Holder of the Common
Securities may institute a legal proceeding directly against any Person to
enforce the Institutional Trustee’s rights under the Declaration, without first
instituting a legal proceeding against the Institutional Trustee or any other
Person.

 

A-I-12

 

Any approval
or direction of Holders of the Common Securities may be given at a separate
meeting of Holders of the Common Securities convened for such purpose, at a
meeting of all of the Holders of the Securities in the Trust or pursuant to
written consent. The Administrators will cause a notice of any meeting at which
Holders of the Common Securities are entitled to vote, or of any matter upon
which action by written consent of such Holders is to be taken, to be mailed to
each Holder of the Common Securities. Each such notice will include a statement
setting forth (i) the date of such meeting or the date by which such action is
to be taken, (ii) a description of any resolution proposed for adoption at such
meeting on which such Holders are entitled to vote or of such matter upon which
written consent is sought and (iii) instructions for the delivery of proxies or
consents.

 

No vote or
consent of the Holders of the Common Securities will be required for the Trust
to redeem and cancel Common Securities or to distribute the Debentures in
accordance with the Declaration and the terms of the Securities.

 

7.                                       Amendments
to Declaration and Indenture. 
(a)  In addition to any
requirements under Section 11.1 of the Declaration, if any proposed
amendment to the Declaration provides for, or the Trustees otherwise propose to
effect, (i) any action that would adversely affect the powers, preferences or
special rights of the Securities, whether by way of amendment to the
Declaration or otherwise, or (ii) the Liquidation of the Trust, other than as
described in Section 7.1 of the Declaration, then the Holders of
outstanding Securities, voting together as a single class, will be entitled to
vote on such amendment or proposal and such amendment or proposal shall not be
effective except with the approval of the Holders of not less than a Majority
in liquidation amount of the Securities affected thereby; provided, however, if
any amendment or proposal referred to in clause (i) above would adversely
affect only the Capital Securities or only the Common Securities, then only the
affected class will be entitled to vote on such amendment or proposal and such
amendment or proposal shall not be effective except with the approval of a
Majority in liquidation amount of such class of Securities.

 

(b)                                 In
the event the consent of the Institutional Trustee as the holder of the
Debentures is required under the Indenture with respect to any amendment,
modification or termination of the Indenture or the Debentures, the
Institutional Trustee shall request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination and
shall vote with respect to such amendment, modification, or termination as
directed by a Majority in liquidation amount of the Securities voting together
as a single class; provided, however, that where a consent under the Indenture
would require a Super Majority, the Institutional Trustee may only give such
consent at the written direction of the Holders of not less than the proportion
in liquidation amount of the Securities which the relevant Super Majority represents
of the aggregate principal amount of the Debentures outstanding.

 

(c)                                  Notwithstanding
the foregoing, no amendment or modification may be made to the Declaration if
such amendment or modification would (i) cause the Trust to be classified for
purposes of United States federal income taxation as other than a grantor
trust, (ii) reduce or otherwise adversely affect the powers of the
Institutional Trustee or (iii) cause the Trust to be deemed an “investment
company” which is required to be registered under the Investment Company Act.

 

A-I-13

 

(d)                                 Notwithstanding
any provision of the Declaration, the right of any Holder of the Capital
Securities to receive payment of distributions and other payments upon redemption
or otherwise, on or after their respective due dates, or to institute a suit
for the enforcement of any such payment on or after such respective dates,
shall not be impaired or affected without the consent of such Holder. For the
protection and enforcement of the foregoing provision, each and every Holder of
the Capital Securities shall be entitled to such relief as can be given either
at law or equity.

 

8.                                       Pro
Rata.  A reference in these terms of
the Securities to any payment, distribution or treatment as being “Pro Rata”
shall mean pro rata to each Holder of the Securities according to the aggregate
liquidation amount of the Securities held by the relevant Holder in relation to
the aggregate liquidation amount of all Securities outstanding unless, in
relation to a payment, an Event of Default has occurred and is continuing, in
which case any funds available to make such payment shall be paid first to each
Holder of the Capital Securities Pro Rata according to the aggregate
liquidation amount of the Capital Securities held by the relevant Holder
relative to the aggregate liquidation amount of all Capital Securities
outstanding, and only after satisfaction of all amounts owed to the Holders of
the Capital Securities, to each Holder of the Common Securities Pro Rata
according to the aggregate liquidation amount of the Common Securities held by
the relevant Holder relative to the aggregate liquidation amount of all Common
Securities outstanding.

 

9.                                       Ranking.  The Capital Securities rank pari passu with,
and payment thereon shall be made Pro Rata with, the Common Securities except
that, where an Event of Default has occurred and is continuing, the rights of
Holders of the Common Securities to receive payment of Distributions and
payments upon liquidation, redemption and otherwise are subordinated to the
rights of the Holders of the Capital Securities with the result that no payment
of any Distribution on, or Redemption Price of, any Common Security, and no
other payment on account of redemption, liquidation or other acquisition of
Common Securities, shall be made unless payment in full in cash of all
accumulated and unpaid Distributions on all outstanding Capital Securities for
all distribution periods terminating on or prior thereto, or in the case of
payment of the Redemption Price the full amount of such Redemption Price on all
outstanding Capital Securities then called for redemption, shall have been made
or provided for, and all funds immediately available to the Institutional
Trustee shall first be applied to the payment in full in cash of all
Distributions on, or the Redemption Price of, the Capital Securities then due
and payable.

 

10.                                 Acceptance
of Guarantee and Indenture.  Each
Holder of the Capital Securities and the Common Securities, by the acceptance
of such Securities, agrees to the provisions of the Guarantee, including the
subordination provisions therein and to the provisions of the Indenture.

 

11.                                 No
Preemptive Rights.  The Holders of
the Securities shall have no, and the issuance of the Securities is not subject
to, preemptive or similar rights to subscribe for any additional securities.

 

12.                                 Miscellaneous.  These terms constitute a part of the
Declaration. The Sponsor will provide a copy of the Declaration, the Guarantee,
and the Indenture to a Holder without charge on written request to the Sponsor
at its principal place of business.

 

A-I-14

 

EXHIBIT A-1

 

FORM OF CAPITAL SECURITY CERTIFICATE

 

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

 

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

 

THE HOLDER OF
THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS
THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN
OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF

 

A-I-1

 

1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE “CODE”), (EACH A “PLAN”), OR AN ENTITY WHOSE
UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN
THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE
OR HOLD THIS SECURITY OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER
IS ELIGIBLE FOR THE EXEMPTION RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,95-60,91-38,90-1 OR 84-14 OR
ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS
NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT
TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY
INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING
THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING
OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE
BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT
RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION.

 

IN CONNECTION
WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE AMENDED
AND RESTATED DECLARATION OF TRUST TO CONFIRM THAT THE TRANSFER COMPLIES WITH
THE FOREGOING RESTRICTIONS.

 

THIS SECURITY
WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION
AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY
ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION AMOUNT OF
LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF
THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

 

A-I-2

 

	
  Certificate
  Number

  	
   

  	
  [P-001]

  	
   

  	
  Number of
  Capital Securities 3,000

  

 

Certificate Evidencing Capital Securities

 

of

 

Mission Community Capital Trust I

 

TP Securities

 

(liquidation amount $1,000 per Capital
Security)

 

Mission
Community Capital Trust I, a statutory trust created under the laws of the
State of Delaware (the “Trust”), hereby certifies that Bear, Stearns Securities
Corp. (the “Holder”) is the registered owner of 3,000 capital securities of the
Trust representing undivided beneficial interests in the assets of the Trust,
designated the TP Securities (liquidation amount $1,000 per Capital Security)
(the “Capital Securities”). Subject to the Declaration (as defined below), the
Capital Securities are transferable on the books and records of the Trust, in
person or by a duly authorized attorney, upon surrender of this Certificate
duly endorsed and in proper form for transfer. The Capital Securities
represented hereby are issued pursuant to, and the designation, rights,
privileges, restrictions, preferences and other terms and provisions of the
Capital Securities shall in all respects be subject to, the provisions of the
Amended and Restated Declaration of Trust of the Trust, dated as of October 14,
2003, among Anita M. Robinson and William C. Demmin, as Administrators, Wells
Fargo Delaware Trust Company, as Delaware Trustee, Wells Fargo Bank, National
Association, as Institutional Trustee, Mission Community Bancorp, as Sponsor,
and the holders from time to time of undivided beneficial interests in the
assets of the Trust, including the designation of the terms of the Capital
Securities as set forth in Annex I to the Declaration, as the same may be
amended from time to time (the “Declaration”). Capitalized terms used herein
but not defined shall have the meaning given them in the Declaration. The
Holder is entitled to the benefits of the Guarantee to the extent provided
therein. The Sponsor will provide a copy of the Declaration, the Guarantee, and
the Indenture to the Holder without charge upon written request to the Sponsor
at its principal place of business.

 

By acceptance
of this Security, the Holder is bound by the Declaration and is entitled to the
benefits thereunder.

 

By acceptance
of this Security, the Holder agrees to treat, for United States federal income
tax purposes, the Debentures as indebtedness and the Capital Securities as
evidence of beneficial ownership in the Debentures.

 

This Capital
Security is governed by, and shall be construed in accordance with, the laws of
the State of Delaware, without regard to principles of conflict of laws.

 

A-I-3

 

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

 

	
   

  	
  Mission Community Capital Trust I

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
						

 

CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  not in its individual capacity but solely as the Institutional
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
	
   

  	
   

  
	
   

  	
  Dated

  	
   

  	
   

  
							

 

A-I-4

 

[FORM OF REVERSE OF SECURITY]

 

Distributions
payable on each Capital Security will be payable at a variable per annum rate
of interest, reset quarterly, equal to LIBOR (as defined in the Declaration)
plus 2.95% (the “Coupon Rate”) of the stated liquidation amount of $1,000 per
Capital Security, such rate being the rate of interest payable on the
Debentures to be held by the Institutional Trustee. Except as set forth below
in respect of an Extension Period, Distributions in arrears for more than one
quarterly period will bear interest thereon compounded quarterly at the
applicable Coupon Rate for each such quarterly period (to the extent permitted
by applicable law). The term “Distributions” as used herein includes cash
distributions, any such compounded distributions and any Additional Interest
payable on the Debentures unless otherwise stated. A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any period will be computed for any full quarterly Distribution
period on the basis of a 360-day year and the actual number of days elapsed in
the relevant Distribution period.

 

Except as
otherwise described below, Distributions on the Capital Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on January 7], April 7, July 7 and October 7
of each year, commencing on January 7, 2004 (each, a “Distribution Payment
Date”). Upon submission of Notice, the Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures by extending the
interest payment period for up to 20 consecutive quarterly periods (each, an
“Extension Period”) at any time and from time to time on the Debentures,
subject to the conditions described below, during which Extension Period no
interest shall be due and payable (except any Additional Interest that may be
due and payable). During any Extension Period, interest will continue to accrue
on the Debentures, and interest on such accrued interest (such accrued interest
and interest thereon referred to herein as “Deferred Interest”) will accrue at
an annual rate equal to the Coupon Rate in effect for each such Extension
Period, compounded quarterly from the date such Deferred Interest would have
been payable were it not for the Extension Period, to the extent permitted by
law. No Extension Period may end on a date other than a Distribution Payment
Date. At the end of any such Extension Period, the Debenture Issuer shall pay
all Deferred Interest then accrued and unpaid on the Debentures; provided,
however, that no Extension Period may extend beyond the Maturity Date.
Prior to the termination of any Extension Period, the Debenture Issuer may
further extend such period, provided, that such period together with all
such previous and further consecutive extensions thereof shall not exceed 20
consecutive quarterly periods, or extend beyond the Maturity Date. Upon the
termination of any Extension Period and upon the payment of all Deferred Interest,
the Debenture Issuer may commence a new Extension Period, subject to the
foregoing requirements. No interest or Deferred Interest shall be due and
payable during an Extension Period, except at the end thereof, but Deferred
Interest shall accrue upon each installment of interest that would otherwise
have been due and payable during such Extension Period until such installment
is paid. If Distributions are deferred, the Distributions due shall be paid on
the date that the related Extension Period terminates to Holders of the
Securities as they appear on the books and records of the Trust on the record
date immediately preceding such date. Distributions on the Securities must be
paid on the dates payable (after giving effect to any Extension Period) to the
extent that the Trust has funds legally available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds available
for Distribution to

 

A-I-5

 

the Holders of
the Securities will be limited to payments received from the Debenture Issuer.
The payment of Distributions out of moneys held by the Trust is guaranteed by
the Guarantor pursuant to the Guarantee.

 

The Capital
Securities shall be redeemable as provided in the Declaration.

 

A-I-6

 

ASSIGNMENT

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

(Insert
address and zip code of assignee),

 

and irrevocably
appoints                                                                                                                          as
agent to transfer this Capital Security Certificate on the books of the Trust.
The agent may substitute another to act for it, him or her.

 

	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
  (Sign exactly as your name appears on the other side of this Capital
  Security Certificate)

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:(1)

  	
   

  	
   

  
							

 

(1) Signature
must be guaranteed by an “eligible guarantor institution” that is a bank,
stockbroker, savings and loan association or credit union meeting the
requirements of the Security registrar, which requirements include membership
or participation in the Securities Transfer Agents Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the
Security registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

 

A-I-7

 

EXHIBIT A-2

 

FORM OF COMMON SECURITY CERTIFICATE

 

THIS COMMON
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS AND
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
TO AN EXEMPTION FROM REGISTRATION.

 

EXCEPT AS SET
FORTH IN SECTION 8.1 (b) OF THE DECLARATION (AS DEFINED BELOW), THIS SECURITY
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED.

 

A-2-1

 

	
  Certificate
  Number

  	
   

  	
  [C-001]

  	
   

  	
  Number of
  Common Securities 93

  

 

Certificate Evidencing Common Securities

of

Mission Community Capital Trust I

 

Mission
Community Capital Trust I, a statutory trust created under the laws of the
State of Delaware (the “Trust”), hereby certifies that Mission Community
Bancorp (the “Holder”) is the registered owner of 93 common securities of the
Trust representing undivided beneficial interests in the assets of the Trust
(liquidation amount $1,000 per Common Security)(the “Common Securities”). The
Common Securities represented hereby are issued pursuant to, and the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities shall in all respects be subject to, the
provisions of the Amended and Restated Declaration of Trust of the Trust, dated
as of October 14, 2003, among Anita M. Robinson and William C. Demmin, as
Administrators, Wells Fargo Delaware Trust Company, as Delaware Trustee, Wells
Fargo Bank, National Association, as Institutional Trustee, the Holder, as
Sponsor, and the holders from time to time of undivided beneficial interests in
the assets of the Trust, including the designation of the terms of the Common
Securities as set forth in Annex I to the Declaration, as the same may be
amended from time to time (the “Declaration”). Capitalized terms used herein
but not defined shall have the meaning given them in the Declaration. The
Sponsor will provide a copy of the Declaration and the Indenture to the Holder
without charge upon written request to the Sponsor at its principal place of
business.

 

As set forth
in the Declaration, when an Event of Default has occurred and is continuing,
the rights of Holders of Common Securities to payment in respect of
Distributions and payments upon Liquidation, redemption or otherwise are
subordinated to the rights of payment of Holders of the Capital Securities.

 

By acceptance
of this Certificate, the Holder is bound by the Declaration and is entitled to
the benefits thereunder.

 

By acceptance
of this Certificate, the Holder agrees to treat, for United States federal
income tax purposes, the Debentures as indebtedness and the Common Securities
as evidence of undivided beneficial ownership in the Debentures.

 

This Common
Security is governed by, and shall be construed in accordance with, the laws of
the State of Delaware, without regard to principles of conflict of laws.

 

A-2-2

 

IN WITNESS
WHEREOF, the Trust has executed this certificate October 14, 2003.

 

	
   

  	
  Mission Community Capital Trust I

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:  Administrator

  
					

 

A-2-3

 

[FORM OF REVERSE OF SECURITY]

 

Distributions
payable on each Common Security will be identical in amount to the
Distributions payable on each Capital Security, which is at a variable per
annum rate of interest, reset quarterly, equal to LIBOR (as defined in the Declaration)
plus 2.95% (the “Coupon Rate”) of the stated liquidation amount of $1,000 per
Capital Security, such rate being the rate of interest payable on the
Debentures to be held by the Institutional Trustee. Except as set forth below
in respect of an Extension Period, Distributions in arrears for more than one
quarterly period will bear interest thereon compounded quarterly at the
applicable Coupon Rate for each such quarterly period (to the extent permitted
by applicable law). The term “Distributions” as used herein includes cash
distributions, any such compounded distributions and any Additional Interest
payable on the Debentures unless otherwise stated. A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any period will be computed for any full quarterly Distribution
period on the basis of a 360-day year and the actual number of days elapsed in
the relevant Distribution period.

 

Except as
otherwise described below, Distributions on the Common Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on January 7, April 7, July 7 and October 7
of each year, commencing on January 7, 2004 (each, a “Distribution Payment
Date”). Upon submission of Notice, the Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures by extending the
interest payment period for up to 20 consecutive quarterly periods (each, an
“Extension Period”) at any time and from time to time on the Debentures,
subject to the conditions described below, during which Extension Period no
interest shall be due and payable (except any Additional Interest that may be
due and payable). During any Extension Period, interest will continue to accrue
on the Debentures, and interest on such accrued interest (such accrued interest
and interest thereon referred to herein as “Deferred Interest”) will accrue at
an annual rate equal to the Coupon Rate in effect for each such Extension
Period, compounded quarterly from the date such Deferred Interest would have
been payable were it not for the Extension Period, to the extent permitted by
law. No Extension Period may end on a date other than a Distribution Payment
Date. At the end of any such Extension Period, the Debenture Issuer shall pay
all Deferred Interest then accrued and unpaid on the Debentures; provided,
however, that no Extension Period may extend beyond the Maturity Date. Prior to
the termination of any Extension Period, the Debenture Issuer may further
extend such period, provided, that such period together with all such previous
and further consecutive extensions thereof shall not exceed 20 consecutive
quarterly periods, or extend beyond the Maturity Date. Upon the termination of
any Extension Period and upon the payment of all Deferred Interest, the
Debenture Issuer may commence a new Extension Period, subject to the foregoing
requirements. No interest or Deferred Interest shall be due and payable during
an Extension Period, except at the end thereof, but Deferred Interest shall
accrue upon each installment of interest that would otherwise have been due and
payable during such Extension Period until such installment is paid. If
Distributions are deferred, the Distributions due shall be paid on the date
that the related Extension Period terminates to Holders of the Securities as they
appear on the books and records of the Trust on the record date immediately
preceding such date.

 

A-2-4

 

Distributions
on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds legally available for
the payment of such distributions in the Property Account of the Trust. The
Trust’s funds legally available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture Issuer. The
payment of Distributions out of moneys held by the Trust is guaranteed by the
Guarantor pursuant to the Guarantee.

 

The Common
Securities shall be redeemable as provided in the Declaration.

 

A-2-5

 

ASSIGNMENT

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

(Insert address
and zip code of assignee),

 

and
irrevocably appoints
               
as agent to transfer this Common Security Certificate on the books of the
Trust. The agent may substitute another to act for him or her.

 

	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
  (Sign exactly as your name appears on the other side of this Common
  Security Certificate)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:(1)

  	
   

  	
   

  
								

 

(1) Signature
must be guaranteed by an “eligible guarantor institution” that is a bank,
stockbroker, savings and loan association or credit union, meeting the
requirements of the Security registrar, which requirements include membership
or participation in the Securities Transfer Agents Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the
Security registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

 

A-2-6

 

EXHIBIT B

 

FORM OF TRANSFEREE CERTIFICATE

TO BE EXECUTED BY TRANSFEREES OTHER THAN QIBS

 

Mission Community Bancorp

Mission Community Capital Trust I

581 Higuera Street

San Luis Obispo, CA 93401

 

Re:                               Purchase
of $1,000 stated liquidation amount of TP Securities

(the “Capital Securities”) of Mission
Community Capital Trust I

 

Ladies and
Gentlemen:

 

In connection
with our purchase of the Capital Securities we confirm that:

 

1.                                       We
understand that the TP Securities (the “Capital Securities”) of Mission
Community Capital Trust I (the “Trust”) (including the guarantee (the
“Guarantee”) of Mission Community Bancorp (the “Company”) executed in
connection therewith) and the Junior Subordinated Debt Securities due October 7,
2033 of the Company (the “Subordinated Debt Securities”) (the Capital
Securities, the Guarantee and the Subordinated Debt Securities together being
referred to herein as the “Offered Securities”), have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered or sold except as permitted in the following sentence. We agree on our
own behalf and on behalf of any investor account for which we are purchasing
the Offered Securities that, if we decide to offer, sell or otherwise transfer
any such Offered Securities, such offer, sale or transfer will be made only (a)
to the Company or the Trust, (b) pursuant to Rule 144A under the Securities
Act, to a person we reasonably believe is a qualified institutional buyer under
Rule 144A (a “QIB”) that purchases for its own account or for the account of a
QIB and to whom notice is given that the transfer is being made in reliance on
Rule 144A, (c) pursuant to an exemption from registration, to an “accredited
investor” within the meaning of subparagraph (a) (1), (2), (3) or (7) of Rule
501 under the Securities Act that is acquiring Offered Securities for its own
account or for the account of such an accredited investor for investment
purposes and not with a view to, or for offer or sale in connection with, any
distribution thereof in violation of the Securities Act, or (d) pursuant to another
available exemption from the registration requirements of the Securities Act,
and in each of the foregoing cases in accordance with any applicable state
securities laws and any requirements of law that govern the disposition of our
property. The foregoing restrictions on resale will not apply subsequent to the
date on which, in the written opinion of counsel, the Capital Securities are
not “restricted securities” within the meaning of Rule 144 under the Securities
Act. If any resale or other transfer of the Offered Securities is proposed to
be made pursuant to clause (c) or (d) above, the transferor shall deliver a
letter from the transferee substantially in the form of this letter to the
Institutional Trustee as Transfer Agent, which shall provide as applicable,
among other things, that the transferee is an “accredited investor” within the
meaning of subparagraph (a)(1), (2), (3) or (7) of Rule 501 under the
Securities Act that is acquiring such Securities for investment purposes and
not for distribution in violation of the Securities Act. We acknowledge on our
behalf and on behalf of any investor account for which

 

B-1

 

we are
purchasing Securities that the Trust and the Company reserve the right prior to
any offer, sale or other transfer pursuant to clause (c) or (d) to require the
delivery of any opinion of counsel, certifications and/or other information
satisfactory to the Trust and the Company. We understand that the certificates
for any Offered Security that we receive will bear a legend substantially to
the effect of the foregoing.

 

2.                                       We
are an “accredited investor” within the meaning of subparagraph (a) (1), (2),
(3) or (7) of Rule 501 under the Securities Act purchasing for our own account
or for the account of such an “accredited investor,” and we are acquiring the
Offered Securities for investment purposes and not with view to, or for offer
or sale in connection with, any distribution in violation of the Securities
Act, and we have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of our investment
in the Offered Securities, and we and any account for which we are acting are
each able to bear the economic risks of our or its investment.

 

3.                                       We
are acquiring the Offered Securities purchased by us for our own account (or
for one or more accounts as to each of which we exercise sole investment
discretion and have authority to make, and do make, the statements contained in
this letter) and not with a view to any distribution of the Offered Securities,
subject, nevertheless, to the understanding that the disposition of our
property will at all times be and remain within our control.

 

4.                                       In
the event that we purchase any Capital Securities or any Subordinated Debt
Securities, we will acquire such Capital Securities having an aggregate stated
liquidation amount of not less than $100,000 or such Subordinated Debt
Securities having an aggregate principal amount not less than $100,000, for our
own account and for each separate account for which we are acting.

 

5.                                       We
acknowledge that we either (A) are not a fiduciary of a pension, profitsharing
or other employee benefit plan subject to the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) (a “Plan”), or an entity whose
assets include “plan assets” by reason of any Plan’s investment in the entity
and are not purchasing the Offered Securities on behalf of or with “plan
assets” by reason of any Plan’s investment in the entity and are not purchasing
the Offered Securities on behalf of or with “plan assets” of any Plan or (B)
are eligible for the exemptive relief available under one or more of the
following prohibited transaction class exemptions (“PTCEs”) issued by the U.S.
Department of Labor: PTCE 96-23, 95-60, 91-38, 90-1 or 84-14.

 

6.                                       We
acknowledge that the Trust and the Company and others will rely upon the truth
and accuracy of the foregoing acknowledgments, representations, warranties and
agreements and agree that if any of the acknowledgments, representations,
warranties and agreements deemed to have been made by our purchase of the
Offered Securities are no longer accurate, we shall promptly notify the Initial
Purchaser. If we are acquiring any Offered Securities as a fiduciary or agent
for one or more investor accounts, we represent that we have sole discretion
with respect to each such investor account and that we have full power to make
the foregoing acknowledgments, representations and agreement on behalf of each
such investor account.

 

B-2

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name of Purchaser)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
					

Upon transfer,
the Offered Securities would be registered in the name of the new beneficial
owner as follows.

 

	
  Name:

  	
   

  	
   

  
	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  
	
  Taxpayer ID
  Number:

  	
   

  	
   

  
					

 

B-3

 

EXHIBIT C

 

FORM OF TRANSFEROR CERTIFICATE

TO BE EXECUTED FOR QIBs

 

             ,
[     ]

 

Mission
Community Bancorp

Mission Community Capital Trust I

581 Higuera Street

San Luis Obispo, CA 93401

 

	
  Re:

  	
   

  	
  Purchase of $1,000 stated liquidation amount of TP Securities

  
	
   

  	
   

  	
  (the “Capital Securities”) of Mission Community Capital Trust I

  

 

Reference is
hereby made to the Amended and Restated Declaration of Trust of Mission Community
Capital Trust I, dated as of October 14, 2003 (the “Declaration”), among Anita
M. Robinson and William C. Demmin, as Administrators, Wells Fargo Delaware
Trust Company, as Delaware Trustee, Wells Fargo Bank, National Association, as
Institutional Trustee, Mission Community Bancorp, as Sponsor, and the holders
from time to time of undivided beneficial interests in the assets of Mission
Community Capital Trust I. Capitalized terms used but not defined herein shall
have the meanings given them in the Declaration.

 

This letter
relates to
$[                  ]
aggregate liquidation amount of Capital Securities which are held in the name
of [name of transferor] (the “Transferor”).

 

In accordance
with Section 8.2(b) of the Declaration, the Transferor does hereby certify
that such Capital Securities are being transferred in accordance with (i) the
transfer restrictions set forth in the Capital Securities and (ii) Rule 144A
under the Securities Act (“Rule 144A”), to a transferee that the Transferor
reasonably believes is purchasing the Capital Securities for its own account or
an account with respect to which the transferee exercises sole investment
discretion and the transferee and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A, in a transaction meeting
the requirements of Rule 144A and in accordance with applicable securities laws
of any state of the United States or any other jurisdiction.

 

You are
entitled to rely upon this letter and are irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name of Transferor)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
						

 

C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]