Document:

Exhibit 4.3

EXECUTION COPY

SERIES A

REPLACEMENT CAPITAL COVENANT

by

THE ALLSTATE CORPORATION

in favor of
and for the benefit of each

COVERED DEBTHOLDER

Dated May 10,
2007

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  SECTION
  1.

  	
   

  	
  Definitions

  	
   

  	
  2

  	
   

  
	
  SECTION
  2.

  	
   

  	
  Limitations on Repayment,
  Redemption and Purchase of Debentures

  	
   

  	
  2

  	
   

  
	
  SECTION
  3.

  	
   

  	
  Covered Debt.

  	
   

  	
  3

  	
   

  
	
  SECTION
  4.

  	
   

  	
  Termination, Amendment and
  Waiver.

  	
   

  	
  5

  	
   

  
	
  SECTION
  5.

  	
   

  	
  Miscellaneous.

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE I

  	
   

  	
  Definitions

  	
   

  	
  SI-1

  	
   

  

 

 i

This Replacement Capital
Covenant, dated as of May 10, 2007 (this “Replacement Capital Covenant”), by The Allstate Corporation, a
Delaware corporation (together with its successors and assigns, the “Corporation”), in favor of and for the
benefit of each Covered Debtholder (as defined below),

R E C I T A L S

WHEREAS, on the date
hereof, the Corporation is issuing $500,000,000 aggregate principal amount of
its 6.50% Fixed—to—Floating Rate Junior Subordinated Debentures due 2067
(including any such junior subordinated debentures issued after the date hereof
that may be consolidated and form a single series with such Junior Subordinated
Debentures issued on the date hereof, the “Debentures”);

WHEREAS, this
Replacement Capital Covenant is the “Replacement Capital Covenant” referred to
in the Prospectus Supplement, dated May 3, 2007, relating to the Debentures
(together with the Prospectus, dated May 18, 2006 attached thereto, the “Prospectus”);

WHEREAS, the
Corporation is entering into and disclosing the content of this Replacement
Capital Covenant in the manner provided below with the intent that the
covenants provided for in this Replacement Capital Covenant be enforceable by
each Covered Debtholder and that the Corporation be estopped from disregarding
the covenants in this Replacement Capital Covenant, in each case to the fullest
extent permitted by applicable law; and

WHEREAS, the
Corporation acknowledges that reliance by each Covered Debtholder upon the
covenants in this Replacement Capital Covenant is reasonable and foreseeable by
the Corporation and that, were the Corporation to disregard its covenants in
this Replacement Capital Covenant, each Covered Debtholder would have sustained
an injury as a result of its reliance on such covenants,

NOW, THEREFORE, the
Corporation hereby covenants and agrees as follows in favor of and for the
benefit of each Covered Debtholder:

SECTION 1.           Definitions. 
Capitalized terms used in this Replacement Capital Covenant (including
the Recitals) have the respective meanings set forth in Schedule I hereto.

SECTION 2.           Limitations on Repayment, Redemption and Purchase of Debentures.  The Corporation hereby promises and covenants
to and for the benefit of each Covered Debtholder that the Corporation shall
not repay, redeem or purchase (for the avoidance of doubt, any reference in
this Replacement Capital Covenant to any repayment of the Corporation’s
securities will be deemed to include a reference to defeasance of the
Corporation’s obligations under the securities), and will cause its
Subsidiaries not to, repay, redeem or purchase, as applicable, all or any part
of the Debentures before May 15, 2067 except to the extent that the principal
amount repaid or the applicable redemption or purchase price does not exceed
the sum of the following amounts raised through the issuance of Replacement
Capital Securities:

(a)           the Applicable Percentage of (i) the aggregate
amount of net cash proceeds received by the Corporation and its Subsidiaries
from the sale of Common Stock and Qualifying Warrants (each as defined below)
to Persons other than the

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Corporation
and its Subsidiaries and (ii) the Market Value of any Common Stock that the
Corporation and its Subsidiaries have issued to persons other than the
Corporation and its Subsidiaries in connection with the conversion of any
convertible or exchangeable securities, other than securities for which the
Corporation or any of its Subsidiaries has received equity credit from any
NRSRO (as defined below), in each case since the most recent Measurement Date
(without double counting proceeds received in any prior Measurement Period);
plus

(b)           the Applicable Percentage of the aggregate amount
of net cash proceeds received by the Corporation and its Subsidiaries since the
most recent Measurement Date (without double counting proceeds received in any
prior Measurement Period) from the sale of Mandatorily Convertible Preferred
Stock, Debt Exchangeable for Common Equity, Debt Exchangeable for Preferred
Equity and Qualifying Capital Securities to Persons other than the Corporation
and its Subsidiaries.

SECTION 3.           Covered Debt.

(a)           The Corporation represents and warrants that the
Initial Covered Debt is Eligible Debt.

(b)           On or during the 30-day period immediately
preceding any Redesignation Date with respect to the Covered Debt then in
effect, the Corporation shall identify the series of Eligible Debt that will
become the Covered Debt on and after such Redesignation Date in accordance with
the following procedures:

(i)            the Corporation shall identify each
series of its then outstanding long-term indebtedness for money borrowed that
is Eligible Debt;

(ii)           if only one series of the Corporation’s
then outstanding long-term indebtedness for money borrowed is Eligible Debt,
such series shall become the Covered Debt commencing on the related
Redesignation Date;

(iii)          if the Corporation has more than one
outstanding series of long-term indebtedness for money borrowed that is
Eligible Debt, then the Corporation shall identify the series that has the
latest stated final maturity date as of the date the Corporation is applying
the procedures in this Section 3(b) and such series shall become the Covered
Debt on the related Redesignation Date;

(iv)          the series of outstanding long-term
indebtedness for money borrowed that is determined to be Covered Debt pursuant
to this Section 3(b) shall be the Covered Debt for purposes of this Replacement
Capital Covenant for the period commencing on the related Redesignation Date
and continuing to but not including the Redesignation Date as of which a new
series of outstanding long-term indebtedness is next determined to be the
Covered Debt pursuant to the procedures set forth in this Section 3(b); and

(v)           in connection with such
identification of a new series of Covered Debt, the Corporation shall, as
provided for in Section 3(c), give a notice and file

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with the Commission a current report on Form
8-K under the Exchange Act including or incorporating by reference this
Replacement Capital Covenant as an exhibit within the time frame provided for
in such section.

(c)           In order to give effect to the intent of the
Corporation described in the third recital hereto, the Corporation covenants
that (i) simultaneously with the execution of this Replacement Capital Covenant
or as soon as practicable after the date hereof, it shall (A) give notice to
the Holders of the Initial Covered Debt, in the manner provided in the
indenture relating to the Initial Covered Debt, of this Replacement Capital
Covenant and the rights granted to such Holders hereunder and (B) file a copy
of this Replacement Capital Covenant with the Commission as an exhibit to a
current report on Form 8-K under the Exchange Act; (ii) so long as the
Corporation is a reporting company under the Exchange Act, the Corporation will
include in each annual report filed with the Commission on Form 10-K under the
Exchange Act a description of the covenant set forth in Section 2 and identify
the series of long-term indebtedness for borrowed money that is Covered Debt as
of the date such annual report on Form 10-K is filed with the Commission; (iii)
if a series of the Corporation’s long-term indebtedness for money borrowed (A)
becomes Covered Debt or (B) ceases to be Covered Debt pursuant to the
procedures set forth in Section 3(b), the Corporation shall give notice of such
occurrence within 30 days to the holders of such long-term indebtedness for
money borrowed in the manner provided for in the indenture, fiscal agency
agreement or other instrument under which such long-term indebtedness for money
borrowed was issued and report such change in a current report on Form 8-K
under the Exchange Act including or incorporating by reference this Replacement
Capital Covenant, and in the Corporation’s next quarterly report on Form 10-Q
or annual report on Form 10-K, as applicable; (iv) if, and only if, the
Corporation ceases to be a reporting company under the Exchange Act, the
Corporation shall (x) post on its website the information otherwise required to
be included in Exchange Act filings pursuant to clauses (ii) and (iii) of this
Section 3(c) and (y) cause a notice of the execution of the execution of this
Replacement Capital Covenant to be posted on the Bloomberg screen for the
Covered Debt or any successor Bloomberg screen and each similar third-party
vendor’s screen the Corporation reasonably believes is appropriate (each an “Investor Screen”) and cause a hyperlink to a definitive copy
of this Replacement Capital Covenant to be included on the Investor Screen for
each series of Covered Debt, in each case to the extent permitted by Bloomberg
or such similar third-party vendor, as the case may be; and (v) promptly upon
request by any Holder of Covered Debt, the Corporation shall provide such
Holder with a conformed copy of this Replacement Capital Covenant.

(d)           The Corporation agrees that, if at any time the
Covered Debt is held by a trust (for example, where the Covered Debt is part of
an issuance of trust preferred securities), a holder of the securities issued
by such trust may enforce (including by instituting legal proceedings) this
Replacement Capital Covenant directly against the Corporation as though such
holder owned Covered Debt directly, and such holder shall be deemed to be a
holder of “Covered Debt”
for purposes of this Replacement Capital Covenant for so long as the
indebtedness held by such trust remains Covered Debt hereunder.

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SECTION 4.           Termination, Amendment and Waiver.

(a)           The obligations of the Corporation pursuant to this
Replacement Capital Covenant shall remain in full force and effect until the earliest
(the “Termination Date”) to occur
of (i) May 15, 2067 or, if earlier, the date on which the Debentures are
otherwise repaid, redeemed or purchased in full (in compliance with the terms
of this Replacement Capital Covenant), (ii) the date, if any, on which the
Holders of a majority in principal amount of the then-effective series of
Covered Debt consent or agree in writing to the termination of this Replacement
Capital Covenant and the obligations of the Corporation hereunder, (iii) the
date on which the Corporation ceases to have any series of outstanding Eligible
Senior Debt or Eligible Subordinated Debt (in each case, without giving effect
to the rating requirement in clause (b) of the definition of each such term)
and (iv) the date on which an event of default under the Indenture resulting in
an acceleration of the Debentures occurs. From and after the Termination Date,
the obligations of the Corporation pursuant to this Replacement Capital
Covenant shall be of no further force and effect.

(b)           This Replacement Capital Covenant may be amended or
supplemented from time to time by a written instrument signed by the
Corporation with the consent of the Holders of at least a majority in principal
amount of the then-effective series of Covered Debt, provided that this
Replacement Capital Covenant may be amended or supplemented from time to time
by a written instrument signed only by the Corporation (and without the consent
of any Holder of the then-effective series of Covered Debt) if (i) the effect
of such amendment or supplement is solely to impose additional restrictions on
the types of securities qualifying as Replacement Capital Securities, and an
officer of the Corporation has delivered to the Holders of the then-effective
series of Covered Debt in the manner provided for in the indenture, fiscal
agency agreement or other instrument with respect to such Covered Debt a
written certificate to that effect, (ii) such amendment or supplement is not
materially adverse to the Covered Debtholders and an officer of the Corporation
has delivered to the Holders of the then-effective series of Covered Debt in
the manner provided for in the indenture, fiscal agency agreement or other
instrument with respect to such Covered Debt a written certificate stating
that, in his or her determination, such amendment or supplement is not
materially adverse to such Covered Debtholders, or (iii) such amendment or
supplement eliminates Common Stock, Debt Exchangeable for Common Equity,
Qualifying Warrants and/or Mandatorily Convertible Preferred Stock as
Replacement Capital Securities if, in the case of this clause (iii), after the
date of this Replacement Capital Covenant, an accounting standard or
interpretive guidance of an existing accounting standard issued by an
organization or regulator that has responsibility for establishing or
interpreting accounting standards in the United States becomes effective such
that the Company reasonably believes that there is more than an insubstantial
risk that failure to eliminate Common Stock, Debt Exchangeable for Common
Equity, Qualifying Warrants and/or Mandatorily Convertible Preferred Stock as
Replacement Capital Securities would result in a reduction in the Corporation’s
earnings per share as calculated in accordance with generally accepted
accounting principles in the United States or International Financial Reporting
Standards (IFRS) if then applicable to the issuer or IFRS if subsequently
adopted by the issuer.

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(c)           For purposes of Sections 4(a) and 4(b), the Holders
whose consent or agreement is required to terminate, amend or supplement the
obligations of the Corporation under this Replacement Capital Covenant shall be
the Holders of the then-effective Covered Debt as of a record date established
by the Corporation that is not more than thirty (30) days prior to the date on
which the Corporation proposes that such termination, amendment or supplement
becomes effective.

SECTION 5.           Miscellaneous.

(a)           THIS REPLACEMENT CAPITAL COVENANT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

(b)           This Replacement Capital Covenant shall be binding
upon the Corporation and its successors and assigns and shall inure to the
benefit of the Covered Debtholders as they exist from time to time (it being
understood and agreed by the Corporation that any Person who is a Covered
Debtholder at the time such Person acquires, holds or sells Covered Debt shall
retain its status as a Covered Debtholder for so long as the series of
long-term indebtedness for borrowed money owned by such Person is Covered Debt,
subject to Section 5, and, if such Person initiates a claim or proceeding to
enforce its rights under this Replacement Capital Covenant after the
Corporation has violated its covenants in Section 2 and before the series of long-term
indebtedness for money borrowed held by such Person is no longer Covered Debt,
such Person’s rights under this Replacement Capital Covenant shall not
terminate prior to a Termination Date solely by reason of such series of
long-term indebtedness for money borrowed no longer being Covered Debt).

(c)           All demands, notices, requests and other
communications to the Corporation under this Replacement Capital Covenant shall
be deemed to have been duly given and made if in writing and (i) if served by
personal delivery upon the Corporation, on the day so delivered (or, if such
day is not a Business Day, the next succeeding Business Day), (ii) if delivered
by registered post or certified mail, return receipt requested, or sent to the
Corporation by a national or international courier service, on the date of
receipt by the Corporation (or, if such date of receipt is not a Business Day,
the next succeeding Business Day), or (iii) if sent by telecopier, on the day
telecopied, or if not a Business Day, the next succeeding Business Day,
provided that the telecopy is promptly confirmed by telephone confirmation
thereof, and in each case to the Corporation at the address set forth below, or
at such other address as the Corporation may thereafter notify to Covered Debtholders
or post on its website as the address for notices under this Replacement
Capital Covenant:

The Allstate Corporation

3075 Sanders Road, Suite G5A

Northbrook, Illinois 60062

Attention: Deputy General Counsel

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IN WITNESS WHEREOF, the
Corporation has caused this Replacement Capital Covenant to be executed by its
duly authorized officer, as of the day and year first above written.

	
  

  	
  The Allstate Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven C. Verney

  	
   

  
	
   

  	
   

  	
  Name: Steven C. Verney

  	
   

  
	
   

  	
   

  	
  Title:  
  Treasurer

  	
   

  

 

 

 

 

REPLACEMENT CAPITAL COVENANT

(SERIES A 6.50% FIXED-TO-FLOATING RATE JUNIOR SUBORDINATED DEBENTURES DUE 2067)

SCHEDULE I

DEFINITIONS

“Alternative Payment
Mechanism” means, with respect to any securities or combination of
securities (together in this definition, “Such
Securities”), provisions in the related transaction documents
requiring the Corporation to issue (or use commercially reasonable efforts to
issue) one or more types of APM Qualifying Securities, either in public
offerings or private placements, raising eligible proceeds at least equal to
the deferred Distributions on such securities and apply the proceeds to pay
unpaid Distributions on such securities, commencing on the earlier of (x) the
first Distribution Date after commencement of a deferral period on which the
Corporation pays current Distributions on such securities and (y) the fifth
anniversary of the commencement of such deferral period, and that:

(a)           define “eligible proceeds” to mean, for purposes of
such Alternative Payment Mechanism, the net proceeds (after underwriters’ or
placement agents’ fees, commissions or discounts and other expenses relating to
the issuance or sale of the relevant securities, where applicable, and
including the fair market value of property received by the Corporation or any
of its Subsidiaries as consideration for such securities) that the Corporation
has received during the 180 days prior to the related Distribution Date from
the issuance of APM Qualifying Securities, up to the Preferred Cap (as defined
in paragraph (f) below) in the case of APM Qualifying Securities that are
Qualifying Non-Cumulative Perpetual Preferred Stock or Mandatorily Convertible
Preferred Stock;

(b)           permit the Corporation to pay current Distributions
on any Distribution Date out of any source of funds but (x) require the
Corporation to pay deferred Distributions only out of eligible proceeds and (y)
prohibit the Corporation from paying deferred Distributions out of any source
of funds other than eligible proceeds;

(c)           if deferral of Distributions continues for more
than one year (or such shorter period as provided for in the terms of such
securities), require the Corporation not to repay, redeem or purchase any APM
Qualifying Securities of the Corporation or any securities of the Corporation
that on a bankruptcy or liquidation of the Corporation rank pari passu or junior to such APM Qualifying Securities until
at least one year after all deferred Distributions have been paid;

(d)           may include a provision that, notwithstanding the
Common Cap (as defined in paragraph (f) below) and the Preferred Cap, for
purposes of paying deferred Distributions, limits the ability of the
Corporation to sell shares of Common Stock, Qualifying Warrants, or Mandatorily
Convertible Preferred Stock above an aggregate cap specified in the transaction
documents (a “Share Cap”), subject
to the Corporation’s agreement to use commercially reasonable efforts to
increase the Share Cap amount and (i) only to the extent that it can do so and
simultaneously satisfy its future fixed or contingent obligations under other
securities and derivative instruments that provide for settlement or payment in
shares of Common Stock or (ii) if the Corporation cannot increase the Share Cap
amount as contemplated in the preceding clause, by requesting its Board of
Directors, subject to its fiduciary duties, to adopt, subject to its fiduciary
duties,

 SI-1
 

a resolution
for shareholder vote at the next occurring annual shareholders’ meeting to
increase the number of shares of the Corporation’s authorized Common Stock for
purposes of satisfying the Corporation’s obligations to pay deferred
Distributions, provided that such Share Cap shall not represent a lower
proportion of the Corporation’s outstanding shares of Common Stock as of the
date of issuance of such APM Qualifying Securities than the Share Cap Amount
applicable to the Debentures represents as a proportion of the Corporation’s
outstanding shares of Common Stock as of the date of the Prospectus Supplement;

(e)           permit the Corporation, at its option, to provide
that if the Corporation is involved in a merger, consolidation, amalgamation or
conveyance, transfer or lease of assets substantially as an entirety to any
other person (a “Business Combination”)
where immediately after the consummation of the business combination more than
50% of the voting stock of the surviving entity of the business combination, or
the person to whom all or substantially all of the Corporation’s assets are
conveyed, transferred or leased, is owned by the shareholders of the other
party to the business combination, then clauses (a), (b) and (c) above will not
apply to any deferral period that is terminated on the next interest payment
date following the date of consummation of the business combination; and

(f)            limit the obligation of the Corporation to issue
(or use commercially reasonable efforts to issue) APM Qualifying Securities up
to:

(i)            in the case of APM Qualifying
Securities that are Common Stock or Qualifying Warrants, an aggregate amount of
all Common Stock issued or issuable upon the exercise of such Qualifying
Warrants pursuant to the Alternative Payment Mechanism with respect to deferred
Distributions during the first five years of any deferral period equal to 2% of
the total number of issued and outstanding shares of the Common Stock of the
Company as of the date of the Corporation’s most recently publicly available consolidated
financial statements as of the date of such issuance (the “Common Cap”), provided (and it being
understood) that the Common Cap shall cease to apply to such deferral period by
a date (as specified in the related transaction documents) which shall be not
later than the fifth anniversary of the commencement of such deferral period;
and

(ii)           in the case of APM Qualifying
Securities that are Qualifying Non-Cumulative Perpetual Preferred Stock or
Mandatorily Convertible Preferred Stock, an amount from the issuance of such
Qualifying Non-Cumulative Perpetual Preferred Stock and then still-outstanding
Mandatorily Convertible Preferred Stock pursuant to the related Alternative
Payment Mechanism (including, in the case of Qualifying Non-Cumulative Perpetual
Preferred Stock, at any point in time from all prior issuances thereof pursuant
to such Alternative Payment Mechanism) equal to 25% of the initial principal or
stated amount of the securities that are the subject of the related Alternative
Payment Mechanism (the “Preferred Cap”);

 SI-2
 

(iii)          provided (and it being understood)
that:

(A)          the Corporation shall not be obligated to issue (or
use commercially reasonable efforts to issue) APM Qualifying Securities for so
long as a Market Disruption Event has occurred and is continuing;

(B)           if, due to a Market Disruption Event or otherwise,
the Corporation is able to raise and apply some, but not all, of the eligible
proceeds necessary to pay all deferred Distributions on any Distribution Date,
the Corporation will apply any available eligible proceeds to pay accrued and
unpaid Distributions on the applicable Distribution Date in chronological order
subject to the Common Cap, Preferred Cap and Share Cap (if any), as applicable;
and

(C)           if the Corporation has outstanding more than one
class or series of securities under which it is obligated to sell a type of APM
Qualifying Securities and apply some part of the proceeds to the payment of
deferred Distributions, then on any date and for any period the amount of net
proceeds received by the Corporation from those sales and available for payment
of deferred Distributions on such securities shall be applied to such
securities on a pro rata basis in proportion to the total amounts that are due
on such securities.

“APM Qualifying
Securities” means one or more of the following:

(a)           Common Stock;

(b)           Qualifying Warrants;

(c)           Qualifying Non-Cumulative Perpetual Preferred
Stock; and

(d)           Mandatorily Convertible Preferred Stock.

“Applicable
Percentage” means (i) in the case of any Common Stock or Qualifying
Warrants, (a) 133.33% with respect to any repayment, redemption or purchase
prior to May 15, 2017, (b) 200% with respect to any repayment, redemption or
purchase on or after May 15, 2017 and prior to May 15, 2057 and (c) 400% with respect
to any repayment, redemption or purchase on or after May 15, 2057; (ii) in the
case of any Mandatorily Convertible Preferred Stock, Debt Exchangeable for
Common Equity, Debt Exchangeable for Preferred Equity or any Qualifying Capital
Securities described in clause (a) of the definition of such term, (a) 100%
with respect to any repayment, redemption or purchase prior to May 15, 2057 and
(b) 300% with respect to any repayment, redemption or purchase on or after May
15, 2057; (iii) in the case of any Qualifying Capital Securities described in
clause (b) of the definition of such term, (a) 100% with respect to any
repayment, redemption or purchase on or after May 15, 2017 and prior to May 15,
2057 and (b) 200% with respect to any repayment, redemption or purchase on or
after May 15, 2057; and (iv) in the case of any Qualifying Capital Securities
described in clause (c) of the definition of such term, 100%.

“Bankruptcy Claim
Limitation Provision”  means,
with respect to any Qualifying Capital Securities that have an Alternative
Payment Mechanism or a Mandatory Trigger

 SI-3
 

Provision, provisions
that, upon any liquidation, dissolution, winding-up or reorganization or in
connection with any insolvency, receivership or proceeding under any bankruptcy
law with respect to the issuer, limit the claim of the holders of such
securities to Distributions that accumulate during (A) any deferral period, in
the case of securities that have an Alternative Payment Mechanism or (B) any
period in which the issuer fails to satisfy one or more financial tests set
forth in the terms of such securities or related transaction agreements, in the
case of securities that have a Mandatory Trigger Provision, to:

(i)            in the case of Qualifying Capital
Securities that have an Alternative Payment Mechanism or Mandatory Trigger
Provision with respect to which the APM Qualifying Securities do not include
Qualifying Non-Cumulative Perpetual Preferred Stock or Mandatorily Convertible
Preferred Stock, 25% of the stated or principal amount of such Qualifying
Capital Securities then outstanding; and

(ii)           in the case of any other Qualifying
Capital Securities, an amount not in excess of the sum of (x) two years of
accumulated and unpaid Distributions and (y) an amount equal to the excess, if
any, of the Preferred Cap over the aggregate amount of net proceeds from the
sale of Qualifying Non-Cumulative Perpetual Preferred Stock and Mandatorily
Convertible Preferred Stock that is still outstanding that the issuer has
applied to pay such Distributions pursuant to the Alternative Payment Mechanism
or the Mandatory Trigger Provision; provided that the holders of such
Qualifying Capital Securities are deemed to agree that, to the extent the
remaining claim exceeds the amount set forth in clause (x), the amount they
receive in respect of such excess shall not exceed the amount they would have
received had the claim for such excess ranked pari
passu with the interests of the holders, if any, of Qualifying
Non-Cumulative Perpetual Preferred Stock.

“Business Day”
means each day other than (a) a Saturday or Sunday or (b) a day on which
banking institutions in The City of New York are authorized or required by law
or executive order to remain closed, and, on or after May 15, 2037, a day that
is not a London Banking Day. A “London
Banking Day” is any day on which dealings in deposits in U.S.
dollars are transacted in the London interbank market.

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

“Common Stock”
means common stock of the Corporation (including treasury shares of common
stock), common stock issued pursuant to any dividend reinvestment plan or
employee benefit plans of the Corporation, a security of the Corporation’s
ranking upon the liquidation, dissolution or winding-up of the Corporation
junior to the Qualifying Non-Cumulative Perpetual Preferred Stock and pari passu with the common stock of the
Corporation, that tracks the performance of, or relates to the results of, a
business, unit or division of the Corporation, and any securities issued in
exchange therefor in connection with a merger, consolidation, binding share
exchange, business combination, recapitalization or other similar event.

“Corporation”
has the meaning specified in the introduction to this instrument.

 SI-4
 

“Covered Debt”
means (a) at the date of this Replacement Capital Covenant and continuing to
but not including the first Redesignation Date, the Initial Covered Debt and
(b) thereafter, commencing with each Redesignation Date and continuing to but
not including the next succeeding Redesignation Date, the Eligible Debt
identified pursuant to Section 3(b) as the Covered Debt for such period.

“Covered Debtholder”
means each Person (whether a Holder or a beneficial owner holding through a
participant in a clearing agency) that buys, holds or sells long-term
indebtedness for money borrowed of the Corporation during the period that such
long-term indebtedness for money borrowed is Covered Debt.

“Debentures”
has the meaning specified in the first recital hereto.

“Debt Exchangeable for
Common Equity” means a security or combination of securities
(together in this definition, “such securities”) that:

(a)           gives the holder a beneficial interest in (i) debt
securities of the Corporation that are not redeemable prior to settlement of
the stock purchase contract referred to in subclause (ii) hereof and (ii) a
fractional interest in a stock purchase contract for a share of common stock of
the Corporation that will be settled in three years or less, with the number of
shares of common stock purchasable pursuant to such stock purchase contract to
be within a range established at the time of issuance of such debt securities;

(b)           provides that the investors directly or indirectly
grant to the Corporation a security interest in such debt securities and their
proceeds (including any substitute collateral permitted under the transaction
documents) to secure the investors’ direct or indirect obligation to purchase
common stock of the Corporation pursuant to such stock purchase contracts;

(c)           includes a remarketing feature pursuant to which
the debt securities of the Corporation are remarketed to new investors
commencing not later than the settlement date of the purchase contract; and

(d)           provides for the proceeds raised in the remarketing
to be used to purchase common stock of the Corporation under the stock purchase
contracts and, if there has not been a successful remarketing by the settlement
date of the purchase contract, provides that the stock purchase contracts will
be settled by the Corporation acquiring its debt securities or other collateral
directly or indirectly pledged by investors in the Debt Exchangeable for Common
Equity.

“Debt Exchangeable
for Preferred Equity” means a security or combination of securities
(together in this definition, “such securities”) that:

(a)           gives the holder a beneficial interest in (i)
subordinated debt securities of the Corporation that include a provision
requiring the Corporation to issue (or use commercially reasonable efforts to
issue) one or more types of APM Qualifying Securities raising proceeds at least
equal to the deferred Distributions on such

 SI-5
 

subordinated
debt securities commencing not later than the second anniversary of the
commencement of such deferral period and that are the most junior subordinated
debt of the Corporation (or rank pari passu with
the most junior subordinated debt of the Corporation) (in this definition, “subordinated
debt” of the Corporation) and (ii) a fractional interest in a stock purchase
contract for a share of non-cumulative perpetual preferred stock of the
Corporation that ranks pari passu with
or junior to all other preferred stock of the Corporation (in this definition, “preferred
stock” of the Corporation);

(b)           provides that the investors directly or indirectly
grant to the Corporation a security interest in such subordinated debt
securities and their proceeds (including any substitute collateral permitted
under the transaction documents) to secure the investors’ direct or indirect
obligation to purchase preferred stock of the Corporation pursuant to such
stock purchase contracts;

(c)           includes a remarketing feature pursuant to which
the subordinated debt of the Corporation is remarketed to new investors
commencing not later than the first Distribution Date that is at least five
years after the date of issuance of securities or earlier in the event of an
early settlement event based on: (i) the dissolution of the issuer of such debt
exchangeable for preferred equity or (ii) one or more financial tests set forth
in the terms of the instrument governing such debt exchangeable for preferred
equity;

(d)           provides for the proceeds raised in the remarketing
to be used to purchase Qualifying Non-Cumulative Perpetual Preferred Stock
under the stock purchase contracts and, if there has not been a successful
remarketing by the first Distribution Date that is six years after the date of
issuance of such securities, provides that the stock purchase contracts will be
settled by the Corporation acquiring its subordinated debt securities or other
collateral directly or indirectly pledged by investors in the Debt Exchangeable
for Preferred Equity;

(e)           includes a replacement capital covenant
substantially similar to this Replacement Capital Covenant or an Other
Qualifying Capital Replacement Covenant that will apply to such securities and
to the Qualifying Non-Cumulative Perpetual Preferred Stock, and will not
include Debt Exchangeable for Common Equity or Debt Exchangeable for Preferred
Equity as a Replacement Capital Security; and

(f)            if applicable, after the issuance of such
preferred stock of the Corporation, provides the holders of such securities
with a beneficial interest in such preferred stock of the Corporation.

“Distribution Date”
means, as to any securities or combination of securities, the dates on which
periodic Distributions on such securities are scheduled to be made.

“Distribution Period”
means, as to any securities or combination of securities, each period from and
including the later of the issue date and a Distribution Date for such
securities to but excluding the next succeeding Distribution Date for such
securities.

 SI-6
 

“Distributions”
means, as to a security or combination of securities, dividends, interest
payments or other income distributions to the holders thereof that are not Subsidiaries
of the Corporation.

“Eligible Debt”
means, at any time, indebtedness, other than the Debentures and securities that
rank pari passu with the
Debentures, that is Eligible Subordinated Debt or, if no Eligible Subordinated
Debt is then outstanding, Eligible Senior Debt.

“Eligible Senior
Debt” means, at any time in respect of any issuer, each series of
outstanding unsecured long-term indebtedness for money borrowed of such issuer
that (a) upon a bankruptcy, liquidation, dissolution or winding-up of the
issuer, ranks most senior among the issuer’s then outstanding classes of
indebtedness for money borrowed, (b) is then assigned a rating by at least one
NRSRO (provided that this clause (b) shall apply on a Redesignation Date only
if on such date the issuer has outstanding senior long-term indebtedness for
money borrowed that satisfies the requirements of clauses (a), (c) and (d) that
is then assigned a rating by at least one NRSRO), (c) has an outstanding
principal amount of not less than $100,000,000, and (d) was issued through or
with the assistance of a commercial or investment banking firm or firms acting
as underwriters, initial purchasers or placement or distribution agents. For
purposes of this definition as applied to securities with a CUSIP number, each
issuance of long-term indebtedness for money borrowed that has (or, if such
indebtedness is held by a trust or other intermediate entity established
directly or indirectly by the issuer, the securities of such intermediate
entity that have) a separate CUSIP number shall be deemed to be a series of the
issuer’s long-term indebtedness for money borrowed that is separate from each
other series of such indebtedness.

“Eligible
Subordinated Debt” means, at any time in respect of any issuer, each
series of the issuer’s then outstanding unsecured long-term indebtedness for
money borrowed that (a) upon a bankruptcy, liquidation, dissolution or
winding-up of the issuer, ranks subordinate to the issuer’s then outstanding
series of indebtedness for money borrowed that ranks most senior, (b) is then
assigned a rating by at least one NRSRO (provided that this clause (b) shall
apply on a Redesignation Date only if on such date the issuer has outstanding
subordinated long-term indebtedness for money borrowed that satisfies the
requirements in clauses (a), (c) and (d) that is then assigned a rating by at
least one NRSRO), (c) has an outstanding principal amount of not less than
$100,000,000, and (d) was issued through or with the assistance of a commercial
or investment banking firm or firms acting as underwriters, initial purchasers
or placement or distribution agents. For purposes of this definition as applied
to securities with a CUSIP number, each issuance of long-term indebtedness for
money borrowed that has (or, if such indebtedness is held by a trust or other
intermediate entity established directly or indirectly by the issuer, the
securities of such intermediate entity that have) a separate CUSIP number shall
be deemed to be a series of the issuer’s long-term indebtedness for money
borrowed that is separate from each other series of such indebtedness.

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

“Fifth  Supplemental Indenture” means the Fifth
Supplemental Indenture, dated as of May 10, 2007, between the Corporation and
U.S. Bank National Association, as trustee.

 SI-7
 

“Holder”
means, as to the Covered Debt then in effect, each holder of such Covered Debt
as reflected on the securities register maintained by or on behalf of the
Corporation with respect to such Covered Debt and each beneficial owner holding
such Covered Debt through a participant in a clearing agency.

“Indenture”
means the subordinated indenture, dated as of November 25, 1996, between the
Corporation and U.S. Bank National Association (as successor in interests to
State Street Bank and Trust Company), as trustee, as amended by a Third
Supplemental Indenture dated as of July 23, 1999 and as amended by a Fourth
Supplemental Indenture dated as of June 12, 2000, and as further supplemented
by the Fifth Supplemental Indenture.

“Initial Covered
Debt” means the Corporation’s 6.9% Senior Debentures due 2038
(CUSIP: 020002AJ0).

“Investor Screen”
has the meaning specified in Section 3(c).

“Intent-Based
Replacement Disclosure” means, as to any security or combination of
securities (together in this definition, “securities”), that the issuer has
publicly stated its intention, either in the prospectus or other offering
document under which such securities were initially offered for sale or in filings
with the Commission made by the issuer under the Exchange Act prior to or
contemporaneously with the issuance of such securities, that the issuer, to the
extent the securities provide the issuer with equity credit, will repay, redeem
or purchase such securities only with the proceeds of replacement capital
securities that have terms and provisions at the time of repayment, redemption
or purchase that are as or more equity-like than the securities then being
repaid, redeemed or purchased, raised within 180 days prior to the applicable
repayment, redemption or purchase date.

“Mandatorily
Convertible Preferred Stock” means preferred stock with (a) no
prepayment obligation on the part of the issuer thereof, whether at the
election of the holders or otherwise, and (b) a requirement that such preferred
stock convert into common stock of the issuer within three years from the date
of its issuance at a conversion ratio within a range established at the time of
issuance of such preferred stock.

“Mandatory Trigger
Provision” means, as to any security or combination of securities
(together in this definition, “securities”), provisions in the terms thereof or
of the related transaction agreements that (a) require or, at its option in the
case of non-cumulative perpetual preferred stock, permit the issuer of such
securities to make payment of Distributions on such securities only pursuant to
the issue and sale of APM Qualifying Securities, within no more than two years
of a failure to satisfy one or more financial tests set forth in the terms of
such securities or related transaction agreements, in an amount such that the
net proceeds of such sale are at least equal to the amount of unpaid
Distributions on such securities (including without limitation all deferred and
accumulated amounts) and in either case require the application of the net
proceeds of such sale to pay such unpaid Distributions, provided that: (1) if
the APM Qualifying Securities issued and sold are Qualifying Non-Cumulative
Perpetual Preferred Stock or Mandatorily Convertible Preferred Stock, the
amount of the net proceeds of Qualifying Non-Cumulative Perpetual Preferred
Stock and Mandatorily Convertible Preferred Stock applied, together with the
net proceeds of all prior issuances of Qualifying Non-Cumulative Preferred

 SI-8
 

Stock and any
still-outstanding Mandatorily Convertible Preferred Stock applied during the
current and all prior deferral periods, to pay such Distributions pursuant to
such provision may not exceed 25% of the initial liquidation or principal
amount of such securities and (2) if the APM Qualifying Securities issued and
sold are Common Stock or Qualifying Warrants and if the Mandatory Trigger
provision does not require such issuance and sale within one year of such
failure, the number of shares of Common Stock issued or issuable upon the
exercise of such Qualifying Warrants plus the number of shares of Common Stock
previously issued or issuable upon the exercise of previously issued Qualifying
Warrants may not exceed 2% of the total number of issued and outstanding shares
of the Corporation’s Common Stock as of the date of the Corporation’s most
recent publicly available consolidated financial statements as of the date of
such issuance, (b) prohibit the issuer from purchasing any APM Qualifying
Securities or any of the Corporation’s securities that on the Corporation’s
bankruptcy or liquidation rank pari passu or
junior to such APM Qualifying Securities prior to the date that is six months
after the issuer applies the net proceeds of the sales described in clause (a)
to pay such unpaid Distributions, and (c) include a Bankruptcy Claim Limitation
Provision. No remedy other than Permitted Remedies may arise by the terms of
such securities or related transaction agreements in favor of the holders of
such securities as a result of the issuer’s failure to pay Distributions
because of the Mandatory Trigger Provision or as a result of the issuer’s
exercise of its right under an Optional Deferral Provision until Distributions
have been deferred for one or more Distribution Periods that total together at
least ten years.

“Market Disruption
Events” means one or more events or circumstances substantially
similar to those listed as “Market Disruption Events” in the Fifth Supplemental
Indenture.

“Market Value”
means, on any date, the closing sale price per share of Common Stock (or if no
closing sale price is reported, the average of the bid and ask prices or, if
more than one in either case, the average of the average bid and the average
ask prices) on that date as reported in composite transactions by the New York
Stock Exchange or, if the Common Stock is not then listed on the New York Stock
Exchange, as reported by the principal U.S. securities exchange on which the
Common Stock is traded or quoted; if the Common Stock is not either listed or
quoted on any U.S. securities exchange on the relevant date, the Market Value
will be the average of the mid-point of the bid and ask prices for the Common
Stock on the relevant date submitted by at least three nationally recognized
independent investment banking firms selected by the Corporation for this
purpose.

“Measurement Date”
means (a) with respect to any repayment, redemption or purchase of Debentures
on or prior to the Scheduled Maturity, the date that is 180 days and (b) with
respect to any repayment, redemption or purchase of Debentures after the
Scheduled Maturity, the date that is 90 days, in each case prior to delivery of
notice of such redemption or prior to the date of such repayment or purchase.

“Measurement Period”
means the period from a Measurement Date to the related notice date or
repayment or purchase date. Measurement Periods cannot run concurrently.

 SI-9
 

“No Payment
Provision” means a provision or provisions in the transaction
documents for securities (referred to in this definition as “such securities”)
that include the following:

(a)           an Alternative Payment Mechanism; and

(b)           an Optional Deferral Provision modified and
supplemented from the general definition of that term to:

(i)            provide that the issuer of such
securities may, in its sole discretion, defer in whole or in part payment of
Distributions on such securities for one or more consecutive Distribution
Periods of up to five years or, if a Market Disruption Event has occurred and
is continuing, ten years, without any remedy other than Permitted Remedies and
the obligations (and limitations on obligations) described in the definition of
“Alternative Payment Mechanism” applying; and

(ii)           include a Bankruptcy Claim Limitation
Provision.

“Non-Cumulative”
means, with respect to any securities, that the issuer may elect not to make
any number of periodic Distributions without any remedy arising under the terms
of the securities or related agreements in favor of the holders, other than one
or more Permitted Remedies.

“NRSRO”
means a nationally recognized statistical rating organization within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act.

“Optional Deferral
Provision” means, as to any securities, provisions in the terms
thereof or of the related transaction agreements to the effect of either (a) or
(b) below:

(a)           (i) the issuer of such securities may, in its sole
discretion, defer in whole or in part payment of Distributions on such
securities for one or more consecutive Distribution Periods of up to five years
or, if a Market Disruption Event is continuing, ten years, without any remedy
other than Permitted Remedies and (ii) an Alternative Payment Mechanism
(provided that such Alternative Payment Mechanism need not apply during the
first five years of any deferral period and need not include a Common Cap or
Preferred Cap); or

(b)           the issuer of such securities may, in its sole
discretion, defer in whole or in part payment of Distributions on such
securities for one or more consecutive Distribution Periods up to ten years,
without any remedy other than Permitted Remedies.

“Other Qualifying
Capital Replacement Covenant” means a replacement capital covenant,
as identified by the Corporation’s Board of Directors acting in good faith and
in its reasonable discretion and reasonably construing the definitions and
other terms of this Replacement Capital Covenant, (i) entered into by a company
that at the time it enters into such replacement capital covenant is a
reporting company under the Exchange Act and (ii) that restricts the related
issuer from redeeming or purchasing identified securities except from the
applicable percentage of the proceeds of specified replacement capital
securities that have terms and provisions at the time of redemption or purchase
that are as or more equity-like than the securities then being redeemed or
purchased, raised within 180 days prior to the applicable redemption or
purchase date.

 SI-10
 

“Permitted Remedies”
means, with respect to any securities, one or more of the following remedies:

(a)           rights in favor of the holders of such securities
permitting such holders to elect one or more directors of the issuer (including
any such rights required by the listing requirements of any stock or securities
exchange on which such securities may be listed or traded), and

(b)           complete or partial prohibitions preventing the
issuer from paying Distributions on or purchasing Common Stock or other
securities that rank pari passu with
or junior as to Distributions to such securities for so long as Distributions
on such securities, including unpaid Distributions, remain unpaid.

“Person”
means any individual, corporation, partnership, joint venture, trust, limited
liability company or corporation, unincorporated organization or government or
any agency or political subdivision thereof.

“Prospectus”
has the meaning specified in the second recital hereto.

“Qualifying Capital
Securities” means securities (other than Common Stock, Qualifying
Warrants, Mandatorily Convertible Preferred Stock and Debt Exchangeable for
Common Equity) that, in the determination of the Corporation’s Board of
Directors reasonably construing the definitions and other terms of this
Replacement Capital Covenant, meet one of the following criteria:

(a)           in connection with any repayment, redemption or
purchase of Debentures prior to May 15, 2017:

(i)            securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon the liquidation, dissolution
or winding-up of the Corporation, (B) have no maturity or a maturity of at
least 60 years and (C) either (x) are subject to a replacement capital covenant
substantially similar to this Replacement Capital Covenant or an Other
Qualifying Capital Replacement Covenant and have either a No Payment Provision
or are Non-Cumulative or (y) have a Mandatory Trigger Provision and are subject
to Intent-Based Replacement Disclosure and have either an Optional Deferral
Provision or a No Payment Provision;

(ii)           preferred stock issued by the
Corporation or its Subsidiaries that (A) is Non-Cumulative, (B) has no
prepayment obligation on the part of the issuer thereof, whether at the
election of the holders or otherwise, (C) has no maturity or a maturity of at
least 60 years and (D) either (x) is subject to a replacement capital covenant
substantially similar to this Replacement Capital Covenant or an Other
Qualifying Capital Replacement Covenant or (y) has a Mandatory Trigger
Provision and is subject to Intent-Based Replacement Disclosure;

(iii)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
or junior to the Debentures, (B) have no maturity or a maturity of

 SI-11
 

at least 40 years, (C) are subject to a
replacement capital covenant substantially similar to this Replacement Capital
Covenant or an Other Qualifying Capital Replacement Covenant, (D) have an
Optional Deferral Provision and (E) have a Mandatory Trigger Provision; or

(b)           in connection with any repayment, redemption or
purchase of Debentures at any time on or after May 15, 2017 but prior to May
15, 2037:

(i)            all securities described under
clause (a) of this definition;

(ii)           securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) have no maturity or a maturity of at least
60 years, (C) are subject to a replacement capital covenant substantially
similar to this Replacement Capital Covenant or an Other Qualifying Capital
Replacement Covenant and (D) have an Optional Deferral Provision;

(iii)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) are Non-Cumulative or have a No Payment
Provision, (C) have no maturity or a maturity of at least 60 years and (D) are
subject to Intent-Based Replacement Disclosure;

(iv)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) are Non-Cumulative or have a No Payment
Provision, (C) have no maturity or a maturity of at least 40 years and (D) are
subject to a replacement capital covenant substantially similar to this
Replacement Capital Covenant or an Other Qualifying Capital Replacement
Covenant;

(v)           securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) have an Optional Deferral Provision, (C)
have a Mandatory Trigger Provision and (D) have no maturity or a maturity of at
least 60 years;

(vi)          cumulative preferred stock issued by
the Corporation or its Subsidiaries that (A) has no prepayment obligation on
the part of the issuer thereof, whether at the election of the holders or
otherwise, and (B) (x) has no maturity or a maturity of at least 60 years and
(y) is subject to a replacement capital covenant substantially similar to this
Replacement Capital Covenant or an Other Qualifying Capital Replacement
Covenant;

(vii)         other securities issued by the
Corporation or its Subsidiaries that (A) rank upon a liquidation, dissolution
or winding-up of the Corporation either (x) pari
passu with or junior to the Debentures or (y) pari passu with the claims of the
Corporation’s trade creditors and junior to all of the Corporation’s long-term
indebtedness for money borrowed (other than the Corporation’s long-term

 SI-12
 

indebtedness for money borrowed from time to
time outstanding that by its terms ranks pari
passu with such securities on a liquidation, dissolution or
winding-up of the Corporation), (B) have an Optional Deferral Provision or a No
Payment Provision and (C) have a Mandatory Trigger Provision and (D) either (x)
have no maturity or a maturity of at least 40 years and Intent-Based
Replacement Disclosure or (y) have no maturity or a maturity of at least 30
years and are subject to a replacement capital covenant substantially similar
to this Replacement Capital Covenant or an Other Qualifying Capital Replacement
Covenant; or

(c)           in connection with any repayment, redemption or
purchase of Debentures at any time on or after May 15, 2037:

(i)            securities described under clause
(b) of this definition;

(ii)           preferred stock issued by the
Corporation that (A) (x) has no maturity or a maturity of at least 60 years and
(y) is subject to Intent-Based Replacement Disclosure and (B) is
Non-Cumulative;

(iii)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) either (x) have no maturity or a maturity of
at least 40 years and are subject to Intent-Based Replacement Disclosure or (y)
have no maturity or a maturity at least 30 years and are subject to a
replacement capital covenant substantially similar to this Replacement Capital
Covenant or an Other Qualifying Capital Replacement Covenant and (C) are
Non-Cumulative;

(iv)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) have an Optional Deferral Provision, (C)
have a Mandatory Trigger Provision, (D) have no maturity or a maturity at least
30 years and (E) are subject to Intent-Based Replacement Disclosure; or

(v)           cumulative preferred stock issued by
the Corporation or its Subsidiaries that either (A) has no maturity or a
maturity of at least 60 years and is subject to Intent-Based Replacement
Disclosure or (B) has a maturity of at least 40 years and is subject to a
replacement capital covenant substantially similar to this Replacement Capital
Covenant or an Other Qualifying Capital Replacement Covenant.

“Qualifying
Non-Cumulative Perpetual Preferred Stock” means non-cumulative
preferred stock of the Corporation that ranks pari
passu with or junior to all other preferred stock of the
Corporation, is perpetual and (a) is subject to a replacement capital covenant
substantially similar to this Replacement Capital Covenant or an Other
Qualifying Capital Replacement Covenant, provided that the applicable
percentage as defined in such covenant is defined as 133.33%, and that the
qualifying capital securities permitted under such covenant are limited to
those as described under clause (a) of the definition of Qualifying Capital
Securities in this Replacement Capital Covenant or (b) is subject to both (i)
mandatory suspension of dividends in

 SI-13
 

the event the Corporation
breaches certain financial metrics specified within the offering documents, and
(ii) Intent-Based Replacement Disclosure. Additionally, in both (a) and (b) the
transaction documents shall provide for no remedies as a consequence of
non-payment of Distributions other than Permitted Remedies.

“Qualifying Warrants”
means any net share settled warrants to purchase the Corporation’s Common Stock
that (1) have an exercise price greater than the current stock market price,
determined as specified in the instrument governing such warrants, of the
Corporation’s Common Stock, and (2) the Corporation is not entitled to redeem
for cash and the holders of which are not entitled to require the Corporation
to purchase for cash in any circumstances.

“Redesignation Date”
means, as to the Covered Debt in effect at any time, the earliest of (a) the
date that is two years prior to the final maturity date of such Covered Debt,
(b) if the Corporation elects to redeem or repay, or the Corporation or a
Subsidiary of the Corporation elects to purchase, such Covered Debt either in
whole or in part with the consequence that after giving effect to such
redemption, repayment or purchase the outstanding principal amount of such
Covered Debt is less than $100,000,000, the applicable redemption, repayment or
purchase date and (c) if such Covered Debt is not Eligible Subordinated Debt,
the date on which the Corporation issues long-term indebtedness for money
borrowed that is Eligible Subordinated Debt.

“Replacement Capital
Covenant” has the meaning specified in the introduction to this
instrument.

“Replacement Capital
Securities” means,

(a)           Common Stock and Qualifying Warrants;

(b)           Mandatorily Convertible Preferred Stock;

(c)           Debt Exchangeable for Preferred Equity;

(d)           Debt Exchangeable for Common Equity; and

(e)           Qualifying Capital Securities.

“Scheduled Maturity”
means May 15, 2057.

“Subsidiary”
means, at any time, any Person the shares of stock or other ownership interests
of which having ordinary voting power to elect a majority of the board of directors
or other managers of such Person are at the time owned, or the management or
policies of which are otherwise at the time controlled, directly or indirectly
through one or more intermediaries (including other Subsidiaries) or both, by
another Person.

“Termination Date” has the meaning specified
in Section 4(a).

 SI-14Exhibit 4.4

EXECUTION COPY

SERIES B

REPLACEMENT CAPITAL COVENANT

by

THE ALLSTATE CORPORATION

in favor of
and for the benefit of each

COVERED DEBTHOLDER

Dated May 10,
2007

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  SECTION
  1.

  	
   

  	
  Definitions

  	
   

  	
  2

  	
   

  
	
  SECTION
  2.

  	
   

  	
  Limitations on Repayment,
  Redemption and Purchase of Debentures

  	
   

  	
  2

  	
   

  
	
  SECTION
  3.

  	
   

  	
  Covered Debt.

  	
   

  	
  3

  	
   

  
	
  SECTION
  4.

  	
   

  	
  Termination, Amendment and
  Waiver.

  	
   

  	
  5

  	
   

  
	
  SECTION
  5.

  	
   

  	
  Miscellaneous.

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE I

  	
   

  	
  Definitions

  	
   

  	
  SI-1

  	
   

  

 

 i

This Replacement Capital
Covenant, dated as of May 10, 2007 (this “Replacement Capital Covenant”), by The Allstate Corporation, a
Delaware corporation (together with its successors and assigns, the “Corporation”), in favor of and for the
benefit of each Covered Debtholder (as defined below),

R E C I T A L S

WHEREAS, on the date
hereof, the Corporation is issuing $500,000,000 aggregate principal amount of
its 6.125% Fixed—to—Floating Rate Junior Subordinated Debentures due 2067
(including any such junior subordinated debentures issued after the date hereof
that may be consolidated and form a single series with such Junior Subordinated
Debentures issued on the date hereof, the “Debentures”);

WHEREAS, this
Replacement Capital Covenant is the “Replacement Capital Covenant” referred to
in the Prospectus Supplement, dated May 3, 2007, relating to the Debentures
(together with the Prospectus, dated May 18, 2006 attached thereto, the “Prospectus”);

WHEREAS, the
Corporation is entering into and disclosing the content of this Replacement
Capital Covenant in the manner provided below with the intent that the
covenants provided for in this Replacement Capital Covenant be enforceable by
each Covered Debtholder and that the Corporation be estopped from disregarding
the covenants in this Replacement Capital Covenant, in each case to the fullest
extent permitted by applicable law; and

WHEREAS, the
Corporation acknowledges that reliance by each Covered Debtholder upon the
covenants in this Replacement Capital Covenant is reasonable and foreseeable by
the Corporation and that, were the Corporation to disregard its covenants in
this Replacement Capital Covenant, each Covered Debtholder would have sustained
an injury as a result of its reliance on such covenants,

NOW, THEREFORE, the
Corporation hereby covenants and agrees as follows in favor of and for the
benefit of each Covered Debtholder:

SECTION 1.           Definitions. 
Capitalized terms used in this Replacement Capital Covenant (including
the Recitals) have the respective meanings set forth in Schedule I hereto.

SECTION 2.           Limitations on Repayment, Redemption and Purchase of Debentures.  The Corporation hereby promises and covenants
to and for the benefit of each Covered Debtholder that the Corporation shall
not repay, redeem or purchase (for the avoidance of doubt, any reference in
this Replacement Capital Covenant to any repayment of the Corporation’s
securities will be deemed to include a reference to defeasance of the
Corporation’s obligations under the securities), and will cause its
Subsidiaries not to, repay, redeem or purchase, as applicable, all or any part
of the Debentures before May 15, 2047 except to the extent that the principal
amount repaid or the applicable redemption or purchase price does not exceed
the sum of the following amounts raised through the issuance of Replacement
Capital Securities:

(a)           the Applicable Percentage of (i) the aggregate
amount of net cash proceeds received by the Corporation and its Subsidiaries
from the sale of Common Stock and Qualifying Warrants (each as defined below)
to Persons other than the

 2
 

Corporation
and its Subsidiaries and (ii) the Market Value of any Common Stock that the
Corporation and its Subsidiaries have issued to persons other than the
Corporation and its Subsidiaries in connection with the conversion of any
convertible or exchangeable securities, other than securities for which the
Corporation or any of its Subsidiaries has received equity credit from any
NRSRO (as defined below), in each case since the most recent Measurement Date
(without double counting proceeds received in any prior Measurement Period);
plus

(b)           the Applicable Percentage of the aggregate amount
of net cash proceeds received by the Corporation and its Subsidiaries since the
most recent Measurement Date (without double counting proceeds received in any
prior Measurement Period) from the sale of Mandatorily Convertible Preferred
Stock, Debt Exchangeable for Common Equity, Debt Exchangeable for Preferred
Equity and Qualifying Capital Securities to Persons other than the Corporation
and its Subsidiaries.

SECTION 3.           Covered Debt.

(a)           The Corporation represents and warrants that the
Initial Covered Debt is Eligible Debt.

(b)           On or during the 30-day period immediately
preceding any Redesignation Date with respect to the Covered Debt then in
effect, the Corporation shall identify the series of Eligible Debt that will
become the Covered Debt on and after such Redesignation Date in accordance with
the following procedures:

(i)            the Corporation shall identify each
series of its then outstanding long-term indebtedness for money borrowed that
is Eligible Debt;

(ii)           if only one series of the Corporation’s
then outstanding long-term indebtedness for money borrowed is Eligible Debt,
such series shall become the Covered Debt commencing on the related
Redesignation Date;

(iii)          if the Corporation has more than one
outstanding series of long-term indebtedness for money borrowed that is
Eligible Debt, then the Corporation shall identify the series that has the
latest stated final maturity date as of the date the Corporation is applying
the procedures in this Section 3(b) and such series shall become the Covered
Debt on the related Redesignation Date;

(iv)          the series of outstanding long-term
indebtedness for money borrowed that is determined to be Covered Debt pursuant
to this Section 3(b) shall be the Covered Debt for purposes of this Replacement
Capital Covenant for the period commencing on the related Redesignation Date
and continuing to but not including the Redesignation Date as of which a new
series of outstanding long-term indebtedness is next determined to be the
Covered Debt pursuant to the procedures set forth in this Section 3(b); and

(v)           in connection with such
identification of a new series of Covered Debt, the Corporation shall, as
provided for in Section 3(c), give a notice and file

 3
 

with the Commission a current report on Form
8-K under the Exchange Act including or incorporating by reference this
Replacement Capital Covenant as an exhibit within the time frame provided for
in such section.

(c)           In order to give effect to the intent of the
Corporation described in the third recital hereto, the Corporation covenants
that (i) simultaneously with the execution of this Replacement Capital Covenant
or as soon as practicable after the date hereof, it shall (A) give notice to
the Holders of the Initial Covered Debt, in the manner provided in the
indenture relating to the Initial Covered Debt, of this Replacement Capital
Covenant and the rights granted to such Holders hereunder and (B) file a copy
of this Replacement Capital Covenant with the Commission as an exhibit to a
current report on Form 8-K under the Exchange Act; (ii) so long as the
Corporation is a reporting company under the Exchange Act, the Corporation will
include in each annual report filed with the Commission on Form 10-K under the
Exchange Act a description of the covenant set forth in Section 2 and identify
the series of long-term indebtedness for borrowed money that is Covered Debt as
of the date such annual report on Form 10-K is filed with the Commission; (iii)
if a series of the Corporation’s long-term indebtedness for money borrowed (A)
becomes Covered Debt or (B) ceases to be Covered Debt pursuant to the
procedures set forth in Section 3(b), the Corporation shall give notice of such
occurrence within 30 days to the holders of such long-term indebtedness for
money borrowed in the manner provided for in the indenture, fiscal agency
agreement or other instrument under which such long-term indebtedness for money
borrowed was issued and report such change in a current report on Form 8-K
under the Exchange Act including or incorporating by reference this Replacement
Capital Covenant, and in the Corporation’s next quarterly report on Form 10-Q
or annual report on Form 10-K, as applicable; (iv) if, and only if, the
Corporation ceases to be a reporting company under the Exchange Act, the
Corporation shall (x) post on its website the information otherwise required to
be included in Exchange Act filings pursuant to clauses (ii) and (iii) of this
Section 3(c) and (y) cause a notice of the execution of the execution of this
Replacement Capital Covenant to be posted on the Bloomberg screen for the
Covered Debt or any successor Bloomberg screen and each similar third-party
vendor’s screen the Corporation reasonably believes is appropriate (each an “Investor Screen”) and cause a hyperlink to a definitive copy
of this Replacement Capital Covenant to be included on the Investor Screen for
each series of Covered Debt, in each case to the extent permitted by Bloomberg
or such similar third-party vendor, as the case may be; and (v) promptly upon
request by any Holder of Covered Debt, the Corporation shall provide such
Holder with a conformed copy of this Replacement Capital Covenant.

(d)           The Corporation agrees that, if at any time the
Covered Debt is held by a trust (for example, where the Covered Debt is part of
an issuance of trust preferred securities), a holder of the securities issued
by such trust may enforce (including by instituting legal proceedings) this
Replacement Capital Covenant directly against the Corporation as though such
holder owned Covered Debt directly, and such holder shall be deemed to be a
holder of “Covered Debt”
for purposes of this Replacement Capital Covenant for so long as the
indebtedness held by such trust remains Covered Debt hereunder.

 4
 

SECTION 4.           Termination, Amendment and Waiver.

(a)           The obligations of the Corporation pursuant to this
Replacement Capital Covenant shall remain in full force and effect until the earliest
(the “Termination Date”) to occur
of (i) May 15, 2047 or, if earlier, the date on which the Debentures are
otherwise repaid, redeemed or purchased in full (in compliance with the terms
of this Replacement Capital Covenant), (ii) the date, if any, on which the
Holders of a majority in principal amount of the then-effective series of
Covered Debt consent or agree in writing to the termination of this Replacement
Capital Covenant and the obligations of the Corporation hereunder, (iii) the
date on which the Corporation ceases to have any series of outstanding Eligible
Senior Debt or Eligible Subordinated Debt (in each case, without giving effect
to the rating requirement in clause (b) of the definition of each such term)
and (iv) the date on which an event of default under the Indenture resulting in
an acceleration of the Debentures occurs. From and after the Termination Date,
the obligations of the Corporation pursuant to this Replacement Capital
Covenant shall be of no further force and effect.

(b)           This Replacement Capital Covenant may be amended or
supplemented from time to time by a written instrument signed by the
Corporation with the consent of the Holders of at least a majority in principal
amount of the then-effective series of Covered Debt, provided that this
Replacement Capital Covenant may be amended or supplemented from time to time
by a written instrument signed only by the Corporation (and without the consent
of any Holder of the then-effective series of Covered Debt) if (i) the effect
of such amendment or supplement is solely to impose additional restrictions on
the types of securities qualifying as Replacement Capital Securities, and an
officer of the Corporation has delivered to the Holders of the then-effective
series of Covered Debt in the manner provided for in the indenture, fiscal
agency agreement or other instrument with respect to such Covered Debt a
written certificate to that effect, (ii) such amendment or supplement is not
materially adverse to the Covered Debtholders and an officer of the Corporation
has delivered to the Holders of the then-effective series of Covered Debt in
the manner provided for in the indenture, fiscal agency agreement or other
instrument with respect to such Covered Debt a written certificate stating
that, in his or her determination, such amendment or supplement is not
materially adverse to such Covered Debtholders, or (iii) such amendment or
supplement eliminates Common Stock, Debt Exchangeable for Common Equity,
Qualifying Warrants and/or Mandatorily Convertible Preferred Stock as
Replacement Capital Securities if, in the case of this clause (iii), after the
date of this Replacement Capital Covenant, an accounting standard or
interpretive guidance of an existing accounting standard issued by an
organization or regulator that has responsibility for establishing or
interpreting accounting standards in the United States becomes effective such
that the Company reasonably believes that there is more than an insubstantial
risk that failure to eliminate Common Stock, Debt Exchangeable for Common
Equity, Qualifying Warrants and/or Mandatorily Convertible Preferred Stock as
Replacement Capital Securities would result in a reduction in the Corporation’s
earnings per share as calculated in accordance with generally accepted
accounting principles in the United States or International Financial Reporting
Standards (IFRS) if then applicable to the issuer or IFRS if subsequently
adopted by the issuer.

 5
 

(c)           For purposes of Sections 4(a) and 4(b), the Holders
whose consent or agreement is required to terminate, amend or supplement the
obligations of the Corporation under this Replacement Capital Covenant shall be
the Holders of the then-effective Covered Debt as of a record date established
by the Corporation that is not more than thirty (30) days prior to the date on
which the Corporation proposes that such termination, amendment or supplement
becomes effective.

SECTION 5.           Miscellaneous.

(a)           THIS REPLACEMENT CAPITAL COVENANT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

(b)           This Replacement Capital Covenant shall be binding
upon the Corporation and its successors and assigns and shall inure to the
benefit of the Covered Debtholders as they exist from time to time (it being
understood and agreed by the Corporation that any Person who is a Covered
Debtholder at the time such Person acquires, holds or sells Covered Debt shall
retain its status as a Covered Debtholder for so long as the series of
long-term indebtedness for borrowed money owned by such Person is Covered Debt,
subject to Section 5, and, if such Person initiates a claim or proceeding to
enforce its rights under this Replacement Capital Covenant after the
Corporation has violated its covenants in Section 2 and before the series of
long-term indebtedness for money borrowed held by such Person is no longer
Covered Debt, such Person’s rights under this Replacement Capital Covenant
shall not terminate prior to a Termination Date solely by reason of such series
of long-term indebtedness for money borrowed no longer being Covered Debt).

(c)           All demands, notices, requests and other
communications to the Corporation under this Replacement Capital Covenant shall
be deemed to have been duly given and made if in writing and (i) if served by
personal delivery upon the Corporation, on the day so delivered (or, if such
day is not a Business Day, the next succeeding Business Day), (ii) if delivered
by registered post or certified mail, return receipt requested, or sent to the
Corporation by a national or international courier service, on the date of
receipt by the Corporation (or, if such date of receipt is not a Business Day,
the next succeeding Business Day), or (iii) if sent by telecopier, on the day
telecopied, or if not a Business Day, the next succeeding Business Day,
provided that the telecopy is promptly confirmed by telephone confirmation
thereof, and in each case to the Corporation at the address set forth below, or
at such other address as the Corporation may thereafter notify to Covered Debtholders
or post on its website as the address for notices under this Replacement
Capital Covenant:

The Allstate Corporation

3075 Sanders Road, Suite G5A

Northbrook, Illinois 60062

Attention: Deputy General Counsel

 6

IN WITNESS WHEREOF, the
Corporation has caused this Replacement Capital Covenant to be executed by its
duly authorized officer, as of the day and year first above written.

	
  

  	
  The Allstate Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven C. Verney

  	
   

  
	
   

  	
   

  	
  Name: Steven C. Verney

  	
   

  
	
   

  	
   

  	
  Title:  
  Treasurer

  	
   

  

 

 

 

 

REPLACEMENT CAPITAL COVENANT

(SERIES B 6.125% FIXED-TO-FLOATING RATE JUNIOR SUBORDINATED DEBENTURES DUE
2067)

SCHEDULE I

DEFINITIONS

“Alternative Payment
Mechanism” means, with respect to any securities or combination of
securities (together in this definition, “Such
Securities”), provisions in the related transaction documents
requiring the Corporation to issue (or use commercially reasonable efforts to
issue) one or more types of APM Qualifying Securities, either in public
offerings or private placements, raising eligible proceeds at least equal to
the deferred Distributions on such securities and apply the proceeds to pay
unpaid Distributions on such securities, commencing on the earlier of (x) the
first Distribution Date after commencement of a deferral period on which the
Corporation pays current Distributions on such securities and (y) the fifth
anniversary of the commencement of such deferral period, and that:

(a)           define “eligible proceeds” to mean, for purposes of
such Alternative Payment Mechanism, the net proceeds (after underwriters’ or
placement agents’ fees, commissions or discounts and other expenses relating to
the issuance or sale of the relevant securities, where applicable, and
including the fair market value of property received by the Corporation or any
of its Subsidiaries as consideration for such securities) that the Corporation
has received during the 180 days prior to the related Distribution Date from
the issuance of APM Qualifying Securities, up to the Preferred Cap (as defined
in paragraph (f) below) in the case of APM Qualifying Securities that are
Qualifying Non-Cumulative Perpetual Preferred Stock or Mandatorily Convertible
Preferred Stock;

(b)           permit the Corporation to pay current Distributions
on any Distribution Date out of any source of funds but (x) require the
Corporation to pay deferred Distributions only out of eligible proceeds and (y)
prohibit the Corporation from paying deferred Distributions out of any source
of funds other than eligible proceeds;

(c)           if deferral of Distributions continues for more
than one year (or such shorter period as provided for in the terms of such
securities), require the Corporation not to repay, redeem or purchase any APM
Qualifying Securities of the Corporation or any securities of the Corporation
that on a bankruptcy or liquidation of the Corporation rank pari passu or junior to such APM Qualifying Securities until
at least one year after all deferred Distributions have been paid;

(d)           may include a provision that, notwithstanding the
Common Cap (as defined in paragraph (f) below) and the Preferred Cap, for
purposes of paying deferred Distributions, limits the ability of the
Corporation to sell shares of Common Stock, Qualifying Warrants, or Mandatorily
Convertible Preferred Stock above an aggregate cap specified in the transaction
documents (a “Share Cap”), subject
to the Corporation’s agreement to use commercially reasonable efforts to
increase the Share Cap amount and (i) only to the extent that it can do so and
simultaneously satisfy its future fixed or contingent obligations under other
securities and derivative instruments that provide for settlement or payment in
shares of Common Stock or (ii) if the Corporation cannot increase the Share Cap
amount as contemplated in the preceding clause, by requesting its Board of
Directors, subject to its fiduciary duties, to adopt, subject to its fiduciary
duties,

 SI-1
 

a resolution
for shareholder vote at the next occurring annual shareholders’ meeting to
increase the number of shares of the Corporation’s authorized Common Stock for
purposes of satisfying the Corporation’s obligations to pay deferred
Distributions, provided that such Share Cap shall not represent a lower
proportion of the Corporation’s outstanding shares of Common Stock as of the
date of issuance of such APM Qualifying Securities than the Share Cap Amount
applicable to the Debentures represents as a proportion of the Corporation’s
outstanding shares of Common Stock as of the date of the Prospectus Supplement;

(e)           permit the Corporation, at its option, to provide
that if the Corporation is involved in a merger, consolidation, amalgamation or
conveyance, transfer or lease of assets substantially as an entirety to any
other person (a “Business Combination”)
where immediately after the consummation of the business combination more than
50% of the voting stock of the surviving entity of the business combination, or
the person to whom all or substantially all of the Corporation’s assets are
conveyed, transferred or leased, is owned by the shareholders of the other
party to the business combination, then clauses (a), (b) and (c) above will not
apply to any deferral period that is terminated on the next interest payment
date following the date of consummation of the business combination; and

(f)            limit the obligation of the Corporation to issue
(or use commercially reasonable efforts to issue) APM Qualifying Securities up
to:

(i)            in the case of APM Qualifying
Securities that are Common Stock or Qualifying Warrants, an aggregate amount of
all Common Stock issued or issuable upon the exercise of such Qualifying
Warrants pursuant to the Alternative Payment Mechanism with respect to deferred
Distributions during the first five years of any deferral period equal to 2% of
the total number of issued and outstanding shares of the Common Stock of the
Company as of the date of the Corporation’s most recently publicly available consolidated
financial statements as of the date of such issuance (the “Common Cap”), provided (and it being
understood) that the Common Cap shall cease to apply to such deferral period by
a date (as specified in the related transaction documents) which shall be not
later than the fifth anniversary of the commencement of such deferral period;
and

(ii)           in the case of APM Qualifying
Securities that are Qualifying Non-Cumulative Perpetual Preferred Stock or
Mandatorily Convertible Preferred Stock, an amount from the issuance of such
Qualifying Non-Cumulative Perpetual Preferred Stock and then still-outstanding
Mandatorily Convertible Preferred Stock pursuant to the related Alternative
Payment Mechanism (including, in the case of Qualifying Non-Cumulative Perpetual
Preferred Stock, at any point in time from all prior issuances thereof pursuant
to such Alternative Payment Mechanism) equal to 25% of the initial principal or
stated amount of the securities that are the subject of the related Alternative
Payment Mechanism (the “Preferred Cap”);

 SI-2
 

(iii)          provided (and it being understood)
that:

(A)          the Corporation shall not be obligated to issue (or
use commercially reasonable efforts to issue) APM Qualifying Securities for so
long as a Market Disruption Event has occurred and is continuing;

(B)           if, due to a Market Disruption Event or otherwise,
the Corporation is able to raise and apply some, but not all, of the eligible
proceeds necessary to pay all deferred Distributions on any Distribution Date,
the Corporation will apply any available eligible proceeds to pay accrued and
unpaid Distributions on the applicable Distribution Date in chronological order
subject to the Common Cap, Preferred Cap and Share Cap (if any), as applicable;
and

(C)           if the Corporation has outstanding more than one
class or series of securities under which it is obligated to sell a type of APM
Qualifying Securities and apply some part of the proceeds to the payment of
deferred Distributions, then on any date and for any period the amount of net
proceeds received by the Corporation from those sales and available for payment
of deferred Distributions on such securities shall be applied to such
securities on a pro rata basis in proportion to the total amounts that are due
on such securities.

“APM Qualifying
Securities” means one or more of the following:

(a)           Common Stock;

(b)           Qualifying Warrants;

(c)           Qualifying Non-Cumulative Perpetual Preferred
Stock; and

(d)           Mandatorily Convertible Preferred Stock.

“Applicable
Percentage” means (i) in the case of any Common Stock or Qualifying
Warrants, (a) 133.33% with respect to any repayment, redemption or purchase
prior to May 15, 2017, (b) 200% with respect to any repayment, redemption or
purchase on or after May 15, 2017 and prior to May 15, 2037 and (c) 400% with respect
to any repayment, redemption or purchase on or after May 15, 2037; (ii) in the
case of any Mandatorily Convertible Preferred Stock, Debt Exchangeable for
Common Equity, Debt Exchangeable for Preferred Equity or any Qualifying Capital
Securities described in clause (a) of the definition of such term, (a) 100%
with respect to any repayment, redemption or purchase prior to May 15, 2037 and
(b) 300% with respect to any repayment, redemption or purchase on or after May
15, 2037; (iii) in the case of any Qualifying Capital Securities described in
clause (b) of the definition of such term, (a) 100% with respect to any
repayment, redemption or purchase on or after May 15, 2017 and prior to May 15,
2037 and (b) 200% with respect to any repayment, redemption or purchase on or
after May 15, 2037; and (iv) in the case of any Qualifying Capital Securities
described in clause (c) of the definition of such term, 100%.

“Bankruptcy Claim
Limitation Provision”  means,
with respect to any Qualifying Capital Securities that have an Alternative
Payment Mechanism or a Mandatory Trigger

 SI-3
 

Provision, provisions
that, upon any liquidation, dissolution, winding-up or reorganization or in
connection with any insolvency, receivership or proceeding under any bankruptcy
law with respect to the issuer, limit the claim of the holders of such
securities to Distributions that accumulate during (A) any deferral period, in
the case of securities that have an Alternative Payment Mechanism or (B) any
period in which the issuer fails to satisfy one or more financial tests set
forth in the terms of such securities or related transaction agreements, in the
case of securities that have a Mandatory Trigger Provision, to:

(i)            in the case of Qualifying Capital
Securities that have an Alternative Payment Mechanism or Mandatory Trigger
Provision with respect to which the APM Qualifying Securities do not include
Qualifying Non-Cumulative Perpetual Preferred Stock or Mandatorily Convertible
Preferred Stock, 25% of the stated or principal amount of such Qualifying
Capital Securities then outstanding; and

(ii)           in the case of any other Qualifying
Capital Securities, an amount not in excess of the sum of (x) two years of
accumulated and unpaid Distributions and (y) an amount equal to the excess, if
any, of the Preferred Cap over the aggregate amount of net proceeds from the
sale of Qualifying Non-Cumulative Perpetual Preferred Stock and Mandatorily
Convertible Preferred Stock that is still outstanding that the issuer has
applied to pay such Distributions pursuant to the Alternative Payment Mechanism
or the Mandatory Trigger Provision; provided that the holders of such
Qualifying Capital Securities are deemed to agree that, to the extent the
remaining claim exceeds the amount set forth in clause (x), the amount they
receive in respect of such excess shall not exceed the amount they would have
received had the claim for such excess ranked pari
passu with the interests of the holders, if any, of Qualifying
Non-Cumulative Perpetual Preferred Stock.

“Business Day”
means each day other than (a) a Saturday or Sunday or (b) a day on which
banking institutions in The City of New York are authorized or required by law
or executive order to remain closed, and, on or after May 15, 2017, a day that
is not a London Banking Day. A “London
Banking Day” is any day on which dealings in deposits in U.S.
dollars are transacted in the London interbank market.

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

“Common Stock”
means common stock of the Corporation (including treasury shares of common
stock), common stock issued pursuant to any dividend reinvestment plan or
employee benefit plans of the Corporation, a security of the Corporation’s
ranking upon the liquidation, dissolution or winding-up of the Corporation
junior to the Qualifying Non-Cumulative Perpetual Preferred Stock and pari passu with the common stock of the
Corporation, that tracks the performance of, or relates to the results of, a
business, unit or division of the Corporation, and any securities issued in
exchange therefor in connection with a merger, consolidation, binding share
exchange, business combination, recapitalization or other similar event.

“Corporation”
has the meaning specified in the introduction to this instrument.

 SI-4
 

“Covered Debt”
means (a) at the date of this Replacement Capital Covenant and continuing to
but not including the first Redesignation Date, the Initial Covered Debt and
(b) thereafter, commencing with each Redesignation Date and continuing to but
not including the next succeeding Redesignation Date, the Eligible Debt
identified pursuant to Section 3(b) as the Covered Debt for such period.

“Covered Debtholder”
means each Person (whether a Holder or a beneficial owner holding through a
participant in a clearing agency) that buys, holds or sells long-term
indebtedness for money borrowed of the Corporation during the period that such
long-term indebtedness for money borrowed is Covered Debt.

“Debentures”
has the meaning specified in the first recital hereto.

“Debt Exchangeable for
Common Equity” means a security or combination of securities
(together in this definition, “such securities”) that:

(a)           gives the holder a beneficial interest in (i) debt
securities of the Corporation that are not redeemable prior to settlement of
the stock purchase contract referred to in subclause (ii) hereof and (ii) a
fractional interest in a stock purchase contract for a share of common stock of
the Corporation that will be settled in three years or less, with the number of
shares of common stock purchasable pursuant to such stock purchase contract to
be within a range established at the time of issuance of such debt securities;

(b)           provides that the investors directly or indirectly
grant to the Corporation a security interest in such debt securities and their
proceeds (including any substitute collateral permitted under the transaction
documents) to secure the investors’ direct or indirect obligation to purchase
common stock of the Corporation pursuant to such stock purchase contracts;

(c)           includes a remarketing feature pursuant to which
the debt securities of the Corporation are remarketed to new investors
commencing not later than the settlement date of the purchase contract; and

(d)           provides for the proceeds raised in the remarketing
to be used to purchase common stock of the Corporation under the stock purchase
contracts and, if there has not been a successful remarketing by the settlement
date of the purchase contract, provides that the stock purchase contracts will
be settled by the Corporation acquiring its debt securities or other collateral
directly or indirectly pledged by investors in the Debt Exchangeable for Common
Equity.

“Debt Exchangeable
for Preferred Equity” means a security or combination of securities
(together in this definition, “such securities”) that:

(a)           gives the holder a beneficial interest in (i)
subordinated debt securities of the Corporation that include a provision
requiring the Corporation to issue (or use commercially reasonable efforts to
issue) one or more types of APM Qualifying Securities raising proceeds at least
equal to the deferred Distributions on such

 SI-5
 

subordinated
debt securities commencing not later than the second anniversary of the
commencement of such deferral period and that are the most junior subordinated
debt of the Corporation (or rank pari passu with
the most junior subordinated debt of the Corporation) (in this definition, “subordinated
debt” of the Corporation) and (ii) a fractional interest in a stock purchase
contract for a share of non-cumulative perpetual preferred stock of the
Corporation that ranks pari passu with
or junior to all other preferred stock of the Corporation (in this definition, “preferred
stock” of the Corporation);

(b)           provides that the investors directly or indirectly
grant to the Corporation a security interest in such subordinated debt
securities and their proceeds (including any substitute collateral permitted
under the transaction documents) to secure the investors’ direct or indirect
obligation to purchase preferred stock of the Corporation pursuant to such
stock purchase contracts;

(c)           includes a remarketing feature pursuant to which
the subordinated debt of the Corporation is remarketed to new investors
commencing not later than the first Distribution Date that is at least five
years after the date of issuance of securities or earlier in the event of an
early settlement event based on: (i) the dissolution of the issuer of such debt
exchangeable for preferred equity or (ii) one or more financial tests set forth
in the terms of the instrument governing such debt exchangeable for preferred
equity;

(d)           provides for the proceeds raised in the remarketing
to be used to purchase Qualifying Non-Cumulative Perpetual Preferred Stock
under the stock purchase contracts and, if there has not been a successful
remarketing by the first Distribution Date that is six years after the date of
issuance of such securities, provides that the stock purchase contracts will be
settled by the Corporation acquiring its subordinated debt securities or other
collateral directly or indirectly pledged by investors in the Debt Exchangeable
for Preferred Equity;

(e)           includes a replacement capital covenant
substantially similar to this Replacement Capital Covenant or an Other
Qualifying Capital Replacement Covenant that will apply to such securities and
to the Qualifying Non-Cumulative Perpetual Preferred Stock, and will not
include Debt Exchangeable for Common Equity or Debt Exchangeable for Preferred
Equity as a Replacement Capital Security; and

(f)            if applicable, after the issuance of such
preferred stock of the Corporation, provides the holders of such securities
with a beneficial interest in such preferred stock of the Corporation.

“Distribution Date”
means, as to any securities or combination of securities, the dates on which
periodic Distributions on such securities are scheduled to be made.

“Distribution Period”
means, as to any securities or combination of securities, each period from and
including the later of the issue date and a Distribution Date for such
securities to but excluding the next succeeding Distribution Date for such
securities.

 SI-6
 

“Distributions”
means, as to a security or combination of securities, dividends, interest
payments or other income distributions to the holders thereof that are not Subsidiaries
of the Corporation.

“Eligible Debt”
means, at any time, indebtedness, other than the Debentures and securities that
rank pari passu with the
Debentures, that is Eligible Subordinated Debt or, if no Eligible Subordinated
Debt is then outstanding, Eligible Senior Debt.

“Eligible Senior
Debt” means, at any time in respect of any issuer, each series of
outstanding unsecured long-term indebtedness for money borrowed of such issuer
that (a) upon a bankruptcy, liquidation, dissolution or winding-up of the
issuer, ranks most senior among the issuer’s then outstanding classes of
indebtedness for money borrowed, (b) is then assigned a rating by at least one
NRSRO (provided that this clause (b) shall apply on a Redesignation Date only
if on such date the issuer has outstanding senior long-term indebtedness for
money borrowed that satisfies the requirements of clauses (a), (c) and (d) that
is then assigned a rating by at least one NRSRO), (c) has an outstanding
principal amount of not less than $100,000,000, and (d) was issued through or
with the assistance of a commercial or investment banking firm or firms acting
as underwriters, initial purchasers or placement or distribution agents. For
purposes of this definition as applied to securities with a CUSIP number, each
issuance of long-term indebtedness for money borrowed that has (or, if such
indebtedness is held by a trust or other intermediate entity established
directly or indirectly by the issuer, the securities of such intermediate
entity that have) a separate CUSIP number shall be deemed to be a series of the
issuer’s long-term indebtedness for money borrowed that is separate from each
other series of such indebtedness.

“Eligible
Subordinated Debt” means, at any time in respect of any issuer, each
series of the issuer’s then outstanding unsecured long-term indebtedness for
money borrowed that (a) upon a bankruptcy, liquidation, dissolution or
winding-up of the issuer, ranks subordinate to the issuer’s then outstanding
series of indebtedness for money borrowed that ranks most senior, (b) is then
assigned a rating by at least one NRSRO (provided that this clause (b) shall
apply on a Redesignation Date only if on such date the issuer has outstanding
subordinated long-term indebtedness for money borrowed that satisfies the
requirements in clauses (a), (c) and (d) that is then assigned a rating by at
least one NRSRO), (c) has an outstanding principal amount of not less than
$100,000,000, and (d) was issued through or with the assistance of a commercial
or investment banking firm or firms acting as underwriters, initial purchasers
or placement or distribution agents. For purposes of this definition as applied
to securities with a CUSIP number, each issuance of long-term indebtedness for
money borrowed that has (or, if such indebtedness is held by a trust or other
intermediate entity established directly or indirectly by the issuer, the
securities of such intermediate entity that have) a separate CUSIP number shall
be deemed to be a series of the issuer’s long-term indebtedness for money
borrowed that is separate from each other series of such indebtedness.

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

“Holder”
means, as to the Covered Debt then in effect, each holder of such Covered Debt
as reflected on the securities register maintained by or on behalf of the
Corporation with

 SI-7
 

respect to such Covered
Debt and each beneficial owner holding such Covered Debt through a participant
in a clearing agency.

“Indenture”
means the subordinated indenture, dated as of November 25, 1996, between the
Corporation and U.S. Bank National Association (as successor in interests to
State Street Bank and Trust Company), as trustee, as amended by a Third
Supplemental Indenture dated as of July 23, 1999 and as amended by a Fourth
Supplemental Indenture dated as of June 12, 2000, and as further supplemented
by the Sixth Supplemental Indenture.

“Initial Covered
Debt” means the Corporation’s 6.9% Senior Debentures due 2038
(CUSIP: 020002AJ0).

“Investor Screen”
has the meaning specified in Section 3(c).

“Intent-Based
Replacement Disclosure” means, as to any security or combination of
securities (together in this definition, “securities”), that the issuer has
publicly stated its intention, either in the prospectus or other offering
document under which such securities were initially offered for sale or in
filings with the Commission made by the issuer under the Exchange Act prior to
or contemporaneously with the issuance of such securities, that the issuer, to
the extent the securities provide the issuer with equity credit, will repay,
redeem or purchase such securities only with the proceeds of replacement
capital securities that have terms and provisions at the time of repayment,
redemption or purchase that are as or more equity-like than the securities then
being repaid, redeemed or purchased, raised within 180 days prior to the
applicable repayment, redemption or purchase date.

“Mandatorily
Convertible Preferred Stock” means preferred stock with (a) no
prepayment obligation on the part of the issuer thereof, whether at the
election of the holders or otherwise, and (b) a requirement that such preferred
stock convert into common stock of the issuer within three years from the date
of its issuance at a conversion ratio within a range established at the time of
issuance of such preferred stock.

“Mandatory Trigger
Provision” means, as to any security or combination of securities
(together in this definition, “securities”), provisions in the terms thereof or
of the related transaction agreements that (a) require or, at its option in the
case of non-cumulative perpetual preferred stock, permit the issuer of such
securities to make payment of Distributions on such securities only pursuant to
the issue and sale of APM Qualifying Securities, within no more than two years
of a failure to satisfy one or more financial tests set forth in the terms of
such securities or related transaction agreements, in an amount such that the
net proceeds of such sale are at least equal to the amount of unpaid
Distributions on such securities (including without limitation all deferred and
accumulated amounts) and in either case require the application of the net
proceeds of such sale to pay such unpaid Distributions, provided that: (1) if
the APM Qualifying Securities issued and sold are Qualifying Non-Cumulative
Perpetual Preferred Stock or Mandatorily Convertible Preferred Stock, the
amount of the net proceeds of Qualifying Non-Cumulative Perpetual Preferred
Stock and Mandatorily Convertible Preferred Stock applied, together with the
net proceeds of all prior issuances of Qualifying Non-Cumulative Preferred
Stock and any still-outstanding Mandatorily Convertible Preferred Stock applied
during the current and all prior deferral periods, to pay such Distributions
pursuant to such provision may

 SI-8
 

not exceed 25% of the
initial liquidation or principal amount of such securities and (2) if the APM
Qualifying Securities issued and sold are Common Stock or Qualifying Warrants
and if the Mandatory Trigger provision does not require such issuance and sale
within one year of such failure, the number of shares of Common Stock issued or
issuable upon the exercise of such Qualifying Warrants plus the number of
shares of Common Stock previously issued or issuable upon the exercise of
previously issued Qualifying Warrants may not exceed 2% of the total number of
issued and outstanding shares of the Corporation’s Common Stock as of the date
of the Corporation’s most recent publicly available consolidated financial
statements as of the date of such issuance, (b) prohibit the issuer from
purchasing any APM Qualifying Securities or any of the Corporation’s securities
that on the Corporation’s bankruptcy or liquidation rank pari passu or junior to such APM
Qualifying Securities prior to the date that is six months after the issuer
applies the net proceeds of the sales described in clause (a) to pay such
unpaid Distributions, and (c) include a Bankruptcy Claim Limitation Provision.
No remedy other than Permitted Remedies may arise by the terms of such
securities or related transaction agreements in favor of the holders of such
securities as a result of the issuer’s failure to pay Distributions because of
the Mandatory Trigger Provision or as a result of the issuer’s exercise of its
right under an Optional Deferral Provision until Distributions have been
deferred for one or more Distribution Periods that total together at least ten
years.

“Market Disruption
Events” means one or more events or circumstances substantially
similar to those listed as “Market Disruption Events” in the Sixth Supplemental
Indenture.

“Market Value”
means, on any date, the closing sale price per share of Common Stock (or if no
closing sale price is reported, the average of the bid and ask prices or, if
more than one in either case, the average of the average bid and the average
ask prices) on that date as reported in composite transactions by the New York
Stock Exchange or, if the Common Stock is not then listed on the New York Stock
Exchange, as reported by the principal U.S. securities exchange on which the
Common Stock is traded or quoted; if the Common Stock is not either listed or
quoted on any U.S. securities exchange on the relevant date, the Market Value
will be the average of the mid-point of the bid and ask prices for the Common
Stock on the relevant date submitted by at least three nationally recognized
independent investment banking firms selected by the Corporation for this
purpose.

“Measurement Date”
means (a) with respect to any repayment, redemption or purchase of Debentures
on or prior to the Scheduled Maturity, the date that is 180 days and (b) with
respect to any repayment, redemption or purchase of Debentures after the
Scheduled Maturity, the date that is 90 days, in each case prior to delivery of
notice of such redemption or prior to the date of such repayment or purchase.

“Measurement Period”
means the period from a Measurement Date to the related notice date or
repayment or purchase date. Measurement Periods cannot run concurrently.

“No Payment Provision”
means a provision or provisions in the transaction documents for securities
(referred to in this definition as “such securities”) that include the
following:

(a)           an Alternative Payment Mechanism; and

 SI-9
 

(b)           an Optional Deferral Provision modified and
supplemented from the general definition of that term to:

(i)            provide that the issuer of such
securities may, in its sole discretion, defer in whole or in part payment of
Distributions on such securities for one or more consecutive Distribution
Periods of up to five years or, if a Market Disruption Event has occurred and
is continuing, ten years, without any remedy other than Permitted Remedies and
the obligations (and limitations on obligations) described in the definition of
“Alternative Payment Mechanism” applying; and

(ii)           include a Bankruptcy Claim Limitation
Provision.

“Non-Cumulative”
means, with respect to any securities, that the issuer may elect not to make
any number of periodic Distributions without any remedy arising under the terms
of the securities or related agreements in favor of the holders, other than one
or more Permitted Remedies.

“NRSRO”
means a nationally recognized statistical rating organization within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act.

“Optional Deferral
Provision” means, as to any securities, provisions in the terms
thereof or of the related transaction agreements to the effect of either (a) or
(b) below:

(a)           (i) the issuer of such securities may, in its sole
discretion, defer in whole or in part payment of Distributions on such
securities for one or more consecutive Distribution Periods of up to five years
or, if a Market Disruption Event is continuing, ten years, without any remedy
other than Permitted Remedies and (ii) an Alternative Payment Mechanism
(provided that such Alternative Payment Mechanism need not apply during the
first five years of any deferral period and need not include a Common Cap or
Preferred Cap); or

(b)           the issuer of such securities may, in its sole
discretion, defer in whole or in part payment of Distributions on such
securities for one or more consecutive Distribution Periods up to ten years,
without any remedy other than Permitted Remedies.

“Other Qualifying
Capital Replacement Covenant” means a replacement capital covenant,
as identified by the Corporation’s Board of Directors acting in good faith and
in its reasonable discretion and reasonably construing the definitions and
other terms of this Replacement Capital Covenant, (i) entered into by a company
that at the time it enters into such replacement capital covenant is a
reporting company under the Exchange Act and (ii) that restricts the related
issuer from redeeming or purchasing identified securities except from the
applicable percentage of the proceeds of specified replacement capital
securities that have terms and provisions at the time of redemption or purchase
that are as or more equity-like than the securities then being redeemed or
purchased, raised within 180 days prior to the applicable redemption or
purchase date.

 SI-10
 

“Permitted Remedies”
means, with respect to any securities, one or more of the following remedies:

(a)           rights in favor of the holders of such securities
permitting such holders to elect one or more directors of the issuer (including
any such rights required by the listing requirements of any stock or securities
exchange on which such securities may be listed or traded), and

(b)           complete or partial prohibitions preventing the
issuer from paying Distributions on or purchasing Common Stock or other
securities that rank pari passu with
or junior as to Distributions to such securities for so long as Distributions
on such securities, including unpaid Distributions, remain unpaid.

“Person”
means any individual, corporation, partnership, joint venture, trust, limited
liability company or corporation, unincorporated organization or government or
any agency or political subdivision thereof.

“Prospectus”
has the meaning specified in the second recital hereto.

“Qualifying Capital
Securities” means securities (other than Common Stock, Qualifying
Warrants, Mandatorily Convertible Preferred Stock and Debt Exchangeable for
Common Equity) that, in the determination of the Corporation’s Board of
Directors reasonably construing the definitions and other terms of this
Replacement Capital Covenant, meet one of the following criteria:

(a)           in connection with any repayment, redemption or
purchase of Debentures prior to May 15, 2017:

(i)            securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon the liquidation, dissolution
or winding-up of the Corporation, (B) have no maturity or a maturity of at
least 60 years and (C) either (x) are subject to a replacement capital covenant
substantially similar to this Replacement Capital Covenant or an Other
Qualifying Capital Replacement Covenant and have either a No Payment Provision
or are Non-Cumulative or (y) have a Mandatory Trigger Provision and are subject
to Intent-Based Replacement Disclosure and have either an Optional Deferral Provision
or a No Payment Provision;

(ii)           preferred stock issued by the
Corporation or its Subsidiaries that (A) is Non-Cumulative, (B) has no
prepayment obligation on the part of the issuer thereof, whether at the
election of the holders or otherwise, (C) has no maturity or a maturity of at
least 60 years and (D) either (x) is subject to a replacement capital covenant
substantially similar to this Replacement Capital Covenant or an Other
Qualifying Capital Replacement Covenant or (y) has a Mandatory Trigger
Provision and is subject to Intent-Based Replacement Disclosure;

(iii)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
or junior to the Debentures, (B) have no maturity or a maturity of

 SI-11
 

at least 40 years, (C) are subject to a
replacement capital covenant substantially similar to this Replacement Capital
Covenant or an Other Qualifying Capital Replacement Covenant, (D) have an
Optional Deferral Provision and (E) have a Mandatory Trigger Provision; or

(b)           in connection with any repayment, redemption or
purchase of Debentures at any time on or after May 15, 2017 but prior to May
15, 2037:

(i)            all securities described under
clause (a) of this definition;

(ii)           securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) have no maturity or a maturity of at least
60 years, (C) are subject to a replacement capital covenant substantially
similar to this Replacement Capital Covenant or an Other Qualifying Capital
Replacement Covenant and (D) have an Optional Deferral Provision;

(iii)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) are Non-Cumulative or have a No Payment
Provision, (C) have no maturity or a maturity of at least 60 years and (D) are
subject to Intent-Based Replacement Disclosure;

(iv)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) are Non-Cumulative or have a No Payment
Provision, (C) have no maturity or a maturity of at least 40 years and (D) are
subject to a replacement capital covenant substantially similar to this
Replacement Capital Covenant or an Other Qualifying Capital Replacement
Covenant;

(v)           securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) have an Optional Deferral Provision, (C)
have a Mandatory Trigger Provision and (D) have no maturity or a maturity of at
least 60 years;

(vi)          cumulative preferred stock issued by
the Corporation or its Subsidiaries that (A) has no prepayment obligation on
the part of the issuer thereof, whether at the election of the holders or
otherwise, and (B) (x) has no maturity or a maturity of at least 60 years and
(y) is subject to a replacement capital covenant substantially similar to this
Replacement Capital Covenant or an Other Qualifying Capital Replacement
Covenant;

(vii)         other securities issued by the
Corporation or its Subsidiaries that (A) rank upon a liquidation, dissolution
or winding-up of the Corporation either (x) pari
passu with or junior to the Debentures or (y) pari passu with the claims of the
Corporation’s trade creditors and junior to all of the Corporation’s long-term
indebtedness for money borrowed (other than the Corporation’s long-term

 SI-12
 

indebtedness for money borrowed from time to
time outstanding that by its terms ranks pari
passu with such securities on a liquidation, dissolution or
winding-up of the Corporation), (B) have an Optional Deferral Provision or a No
Payment Provision and (C) have a Mandatory Trigger Provision and (D) either (x)
have no maturity or a maturity of at least 40 years and Intent-Based
Replacement Disclosure or (y) have no maturity or a maturity of at least 30
years and are subject to a replacement capital covenant substantially similar
to this Replacement Capital Covenant or an Other Qualifying Capital Replacement
Covenant; or

(c)           in connection with any repayment, redemption or
purchase of Debentures at any time on or after May 15, 2037:

(i)            securities described under clause
(b) of this definition;

(ii)           preferred stock issued by the
Corporation that (A) (x) has no maturity or a maturity of at least 60 years and
(y) is subject to Intent-Based Replacement Disclosure and (B) is
Non-Cumulative;

(iii)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) either (x) have no maturity or a maturity of
at least 40 years and are subject to Intent-Based Replacement Disclosure or (y)
have no maturity or a maturity at least 30 years and are subject to a
replacement capital covenant substantially similar to this Replacement Capital
Covenant or an Other Qualifying Capital Replacement Covenant and (C) are
Non-Cumulative;

(iv)          securities issued by the Corporation
or its Subsidiaries that (A) rank pari passu
with or junior to the Debentures upon a liquidation, dissolution or
winding-up of the Corporation, (B) have an Optional Deferral Provision, (C)
have a Mandatory Trigger Provision, (D) have no maturity or a maturity at least
30 years and (E) are subject to Intent-Based Replacement Disclosure; or

(v)           cumulative preferred stock issued by
the Corporation or its Subsidiaries that either (A) has no maturity or a
maturity of at least 60 years and is subject to Intent-Based Replacement
Disclosure or (B) has a maturity of at least 40 years and is subject to a
replacement capital covenant substantially similar to this Replacement Capital
Covenant or an Other Qualifying Capital Replacement Covenant.

“Qualifying
Non-Cumulative Perpetual Preferred Stock” means non-cumulative
preferred stock of the Corporation that ranks pari
passu with or junior to all other preferred stock of the
Corporation, is perpetual and (a) is subject to a replacement capital covenant
substantially similar to this Replacement Capital Covenant or an Other
Qualifying Capital Replacement Covenant, provided that the applicable
percentage as defined in such covenant is defined as 133.33%, and that the
qualifying capital securities permitted under such covenant are limited to
those as described under clause (a) of the definition of Qualifying Capital
Securities in this Replacement Capital Covenant or (b) is subject to both (i)
mandatory suspension of dividends in

 SI-13
 

the event the Corporation
breaches certain financial metrics specified within the offering documents, and
(ii) Intent-Based Replacement Disclosure. Additionally, in both (a) and (b) the
transaction documents shall provide for no remedies as a consequence of
non-payment of Distributions other than Permitted Remedies.

“Qualifying Warrants”
means any net share settled warrants to purchase the Corporation’s Common Stock
that (1) have an exercise price greater than the current stock market price,
determined as specified in the instrument governing such warrants, of the
Corporation’s Common Stock, and (2) the Corporation is not entitled to redeem
for cash and the holders of which are not entitled to require the Corporation
to purchase for cash in any circumstances.

“Redesignation Date”
means, as to the Covered Debt in effect at any time, the earliest of (a) the
date that is two years prior to the final maturity date of such Covered Debt,
(b) if the Corporation elects to redeem or repay, or the Corporation or a
Subsidiary of the Corporation elects to purchase, such Covered Debt either in
whole or in part with the consequence that after giving effect to such
redemption, repayment or purchase the outstanding principal amount of such
Covered Debt is less than $100,000,000, the applicable redemption, repayment or
purchase date and (c) if such Covered Debt is not Eligible Subordinated Debt,
the date on which the Corporation issues long-term indebtedness for money borrowed
that is Eligible Subordinated Debt.

“Replacement Capital
Covenant” has the meaning specified in the introduction to this
instrument.

“Replacement Capital
Securities” means,

(a)           Common Stock and Qualifying Warrants;

(b)           Mandatorily Convertible Preferred Stock;

(c)           Debt Exchangeable for Preferred Equity;

(d)           Debt Exchangeable for Common Equity; and

(e)           Qualifying Capital Securities.

“Scheduled Maturity”
means May 15, 2037.

“Sixth  Supplemental Indenture” means the Sixth
Supplemental Indenture, dated as of May 10, 2007, between the Corporation and
U.S. Bank National Association, as trustee.

“Subsidiary”
means, at any time, any Person the shares of stock or other ownership interests
of which having ordinary voting power to elect a majority of the board of directors
or other managers of such Person are at the time owned, or the management or
policies of which are otherwise at the time controlled, directly or indirectly
through one or more intermediaries (including other Subsidiaries) or both, by
another Person.

“Termination Date” has the meaning specified
in Section 4(a).

 SI-14

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