Document:

exv4w7

 

Exhibit 4.7

 

FORM OF

DECLARATION OF TRUST

OF

VINEYARD STATUTORY TRUST X

Dated as of __________, 200_

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 ARTICLE I	 	 	 	 
	DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II	 	 	 	 
	ORGANIZATION	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.1

	 	Name
	 	 	3	 
	SECTION 2.2

	 	Office
	 	 	4	 
	SECTION 2.3

	 	Purpose
	 	 	4	 
	SECTION 2.4

	 	Authority
	 	 	4	 
	SECTION 2.5

	 	Title to Property of the Trust
	 	 	4	 
	SECTION 2.6

	 	Powers of the Administrative Trustees
	 	 	4	 
	SECTION 2.7

	 	Filing of Certificate of Trust
	 	 	5	 
	SECTION 2.8

	 	Duration of Trust
	 	 	5	 
	SECTION 2.9

	 	Responsibilities of the Sponsor
	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE III	 	 	 	 
	TRUSTEES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.1

	 	Trustees
	 	 	6	 
	SECTION 3.2

	 	Delaware Trustee
	 	 	6	 
	SECTION 3.3

	 	Execution of Documents
	 	 	7	 
	SECTION 3.4

	 	Not Responsible for Recitals or Sufficiency of Declaration
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE IV	 	 	 	 
	LIMITATION OF LIABILITY OF HOLDERS OF	 	 	 	 
	SECURITIES, TRUSTEES OR OTHERS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.1

	 	Exculpation
	 	 	7	 
	SECTION 4.2

	 	Fiduciary Duty
	 	 	7	 
	SECTION 4.3

	 	Indemnification
	 	 	8	 
	SECTION 4.4

	 	Outside Businesses
	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE V	 	 	 	 
	AMENDMENTS, TERMINATION, MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.1

	 	Amendments
	 	 	11	 
	SECTION 5.2

	 	Termination of Trust
	 	 	12	 
	SECTION 5.3

	 	Governing Law
	 	 	12	 
	SECTION 5.4

	 	Headings
	 	 	12	 
	SECTION 5.5

	 	Successors and Assigns
	 	 	12	 
	SECTION 5.6

	 	Partial Enforceability
	 	 	12	 
	SECTION 5.7

	 	Counterparts
	 	 	13	 

i

 

DECLARATION OF TRUST

OF

VINEYARD STATUTORY TRUST X

_______, 200_

     DECLARATION OF TRUST (“Declaration”) dated and effective as of ___, 200___by the Trustees
(as defined herein) and the Sponsor (as defined herein);

     WHEREAS, the Trustees and the Sponsor desire to establish a trust (the “Trust”) pursuant to
the Statutory Trust Act (as defined herein) for the sole purpose of (i) issuing and selling certain
securities representing undivided beneficial interests in the assets of the Trust, (ii) holding
certain Debentures of the Debenture Issuer (each as defined herein) and (iii) engaging in only
those other activities that are necessary or incidental thereto; and

     NOW, THEREFORE, it being the intention of the parties hereto that the Trust constitute a
statutory trust under the Statutory Trust Act and that this Declaration constitute the governing
instrument of such statutory trust, the Sponsor hereby, assigns, transfers and conveys to the
Trustee the sum of $10, the Trustees declare that all assets contributed to the Trust will be held
in trust for the benefit of the Sponsor, initially, and upon issuance of Securities, the holders,
from time to time, of the securities representing undivided beneficial interests in the assets of
the Trust issued hereunder, subject to the provisions of this Declaration.

ARTICLE
I

DEFINITIONS

SECTION 1.1 Definitions.

     Unless the context otherwise requires:

	 	(a)	 	Capitalized terms used in this
Declaration but not defined in the preamble above have the
respective meanings assigned to them in this Section 1.1;
	 
	 	(b)	 	a term defined anywhere in this
Declaration has the same meaning throughout;
	 
	 	(c)	 	all references to “the Declaration” or
“this Declaration” are to this Declaration of Trust as modified,
supplemented or amended from time to time;
	 
	 	(d)	 	all references in this Declaration to
Articles and Sections are to Articles and Sections of this
Declaration unless otherwise specified;
	 
	 	(e)	 	a reference to the singular includes the
plural and vice versa;

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	 	(f)	 	a reference to any Person shall include
its successors and assigns;
	 
	 	(g)	 	a reference to any agreement or
instrument shall mean such agreement or instrument as supplemented,
modified, amended and restated and in effect from time to time; and
	 
	 	(h)	 	a reference to any statute, law, rule or
regulation, shall include any amendments thereto and any successor,
statute, law, rule or regulation.

               “Administrative Trustees” means any Trustee other than the Delaware Trustee and the
Property Trustee.

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

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

               “Capital Security” means a security representing an undivided beneficial interest in
the assets of the Trust with such terms as may be set out in any amendment to this Declaration.

               “Commission” means the United States Securities and Exchange Commission as from time
to time constituted, or if any time after the execution of this Declaration such Commission is not
existing and performing the duties now assigned to it under applicable Federal Securities laws,
then the body performing such duties at such time.

               “Common Security” means a security representing an undivided beneficial interest in
the assets of the Trust with such terms as may be set out in any amendment to this Declaration.

               “Company” means Vineyard National Bancorp, a California corporation.

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

               “Covered Person” means any officer, director, shareholder, partner, member,
representative, employee or agent of the Trust or the Trust’s Affiliates.

               “Debenture Issuer” means the Company in its capacity as the issuer of the Debentures
under the Indenture.

               “Debentures” means Debentures to be issued by the Debenture Issuer and acquired by the
Trust.

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               “Debenture Trustee” means the original trustee under the Indenture until a successor
is appointed thereunder, and thereafter means any such successor trustee.

               “Delaware Trustee” has the meaning set forth in Section 3.1.

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

               “Fiduciary Indemnified Person” has the meaning set forth in Section 4.3(b).

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

               “Indenture” means the indenture to be entered into between the Debenture Issuer and
the Debenture Trustee pursuant to which the Debentures are to be issued.

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

               “Property Trustee” has the meaning set forth in Section 3.1.

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

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

               “Sponsor” means the Company in its capacity as sponsor of the Trust.

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

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

ARTICLE
II

ORGANIZATION

SECTION 2.1 Name.

               The Trust created by this Declaration is named “Vineyard Statutory Trust X.” The Trust’s
activities may be conducted under the name of the Trust or any other name deemed advisable by the
Administrative Trustees.

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SECTION 2.2 Office.

               The address of the principal office of the Trust is Vineyard Statutory Trust X , c/o Vineyard
National Bancorp, 9590 Foothill Boulevard, Rancho Cucamonga, California 91730. On ten Business Days
written notice to the holders of the Securities and the Delaware Trustee, the Administrative
Trustees may designate another principal office.

SECTION 2.3 Purpose.

               The exclusive purposes and functions of the Trust are (a) to issue and sell Securities, (b) to
purchase and hold certain Debentures of the Debenture Issuer and (c) to engage in only those other
activities necessary, advisable or incidental thereto. The Trust shall not borrow money, issue
debt or reinvest proceeds derived from investments, pledge any of its assets, or otherwise
undertake (or permit to be undertaken) any activity that would cause the Trust not to be classified
for federal income tax purposes as an ordinary Trust.

SECTION 2.4 Authority.

               Subject to the limitations provided in this Declaration, the Administrative Trustees shall
have exclusive and complete authority to carry out the purposes of the Trust. An action taken by
the Administrative Trustee in accordance with their powers shall constitute the act of and serve to
bind the Trust. In dealing with the Administrative Trustees acting on behalf of the Trust, no
person shall be required to inquire into the authority of the Administrative Trustees to bind the
Trust. Persons dealing with the Trust are entitled to rely conclusively on the power and authority
of the Administrative Trustees as set forth in this Declaration.

SECTION 2.5 Title to Property of the Trust.

               Legal title to all assets of the Trust shall be vested in the Trust.

SECTION 2.6 Powers of the Administrative Trustees.

               The Administrative Trustees shall have the exclusive power and authority to cause the Trust to
engage in the following activities:

               (a) to issue and sell the Capital Securities and the Common Securities in accordance with this
Declaration; provided, however, that the Trust may issue no more than one series of Capital
Securities and no more than one series of Common Securities, and, provided, further, that
there shall be no interests in the Trust other than the Securities;

               (b) in connection with the issue and sale of the Capital Securities, to:

	 	(i)	 	file with the Commission (the
“Commission”) and execute, on behalf of the Trust: (a) a
Registration Statement on Form S-3, or other appropriate form (the
“1933 Act Registration Statement”), including pre-effective or
post-effective amendments to the 1933 Act Registration Statement,
relating to the registration under the Securities Act of 1933, as
amended (the “1933 Act”),

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	 	 	 	of the Capital Securities of the Trust, and (b) any preliminary
prospectus or prospectus or supplement thereto relating to the
Capital Securities required to be filed pursuant to the 1933 Act;
	 
	 	(ii)	 	execute, deliver and perform on behalf of
the Trust a placement agreement with the Sponsor and the placement
agent of the Capital Securities of the Trust;
	 
	 	(iii)	 	execute and enter into a subscription
agreement, providing for the sale of the Common Securities;

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

               (d) to incur expenses that are necessary or incidental to carry out any of the purposes of
this Declaration, which expenses shall be paid for the Sponsor in all respects; and

               (e) to execute all documents or instruments, perform all duties and powers, and do all things
for and on behalf of the Trust in all matters necessary or incidental to the foregoing.

SECTION 2.7 Filing of Certificate of Trust.

               On or after the date of execution of this Declaration, the Trustees shall cause the filing of
the Certificate of Trust for the Trust in the form attached hereto as Exhibit A with the Secretary
of State of the State of Delaware.

SECTION 2.8 Duration of Trust.

               The Trust, absent termination pursuant to the provisions of Section 5.2, shall have existence
for thirty (30) years from the date hereof.

SECTION 2.9 Responsibilities of the Sponsor.

               In connection with the issue and sale of the Capital Securities, the Sponsor shall have the
exclusive right and responsibility to engage in the following activities:

               (a) to prepare the 1933 Act Registration Statement, and any preliminary prospectus or
prospectus or supplement thereto with respect to the Capital Securities, including in each case,
any amendments or supplements thereto; and

               (b) to negotiate the terms of subscription agreement and the placement agreement with the
placement agent providing for the sale of the Common Securities and Capital Securities,
respectively.

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ARTICLE
III

TRUSTEES

SECTION 3.1 Trustees.

               The number of Trustees initially shall be three (3), and thereafter the number of Trustees
shall be such number as shall be fixed from time to time by a written instrument signed by the
Sponsor. The Sponsor is entitled to appoint or remove without cause any Trustee at any time;
provided, however that the number of Trustees shall in no event be less than two (2);
provided further that (1) one Trustee, in the case of a natural person, shall be a person
who is a resident of the State of Delaware or which, if not a natural person, is an entity which
has its principal place of business in the Statement of Delaware (the “Delaware Trustee”) and (2)
there shall be at least one Administrative Trustee who is an officer of the Sponsor.

               Except as expressly set forth in this Declaration, if there are more than two Administrative
Trustees, any power of such Administrative Trustees may be exercised by, or with the consent of, a
majority of such Administrative Trustees; provided that if there are two Administrative
Trustees, any power of such Administrative Trustees shall be exercised by both Administrative
Trustees; provided further that if there is only one Administrative Trustee, all powers of
the Administrative Trustees shall be exercised by such one Administrative Trustee.

          The initial Administrative Trustee(s) shall be:

 

 

          The initial Delaware Trustee shall be:

                         Wilmington Trust Company

               Prior to the issuance of the Capital Securities and Common Securities, the Sponsor shall
appoint another trustee (the “Property Trustee”) meeting the requirements of the Trust Indenture
Act of 1939, as amended, by the execution of an amendment to this Declaration executed by the
Administrative Trustees, the Sponsor, the Property Trustee and the Delaware Trustee.

SECTION 3.2 Delaware Trustee.

               Notwithstanding any other provision of this Declaration, the Delaware Trustee shall not be
entitled to exercise any of the powers, nor shall the Delaware Trustee have any of the duties and
responsibilities, of the Administrative Trustees described in this Declaration. The Delaware
Trustee shall be a Trustee for the sole and limited purpose of fulfilling the requirements of §
3807 of the Statutory Trust Act. Notwithstanding anything herein to the contrary, the Delaware
Trustee shall not be liable for the acts or omissions to act of the Trust or of the Administrative
Trustees except such acts as the Delaware Trustee is expressly obligated or authorized to undertake
under this Declaration or the Statutory Trust Act and except for the gross negligence or willful
misconduct of the Delaware Trustee.

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SECTION 3.3 Execution of Documents.

               (a) Unless otherwise determined by the Administrative Trustees, and except as otherwise
required by the Statutory Trust Act, any Administrative Trustee is authorized to execute on behalf
of the Trust any documents which the Administrative Trustees have the power and authority to cause
the Trust to execute pursuant to Section 2.6; and

               (b) an Administrative Trustee may, by power of attorney consistent with applicable law,
delegate to any other natural person over the age of 21 his or her power for the purposes of
signing any documents which the Administrative Trustees have power and authority to cause the Trust
to execute pursuant to Section 2.6.

SECTION 3.4 Not Responsible for Recitals or Sufficiency of Declaration.

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

ARTICLE
IV

LIMITATION OF LIABILITY OF

HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

SECTION 4.1 Exculpation.

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

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

SECTION 4.2 Fiduciary Duty.

               (a) To the extent that, at law or in equity, an Indemnified Person has duties (including
fiduciary duties) and liabilities relating thereto to the Trust or to any other Covered

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Person, an Indemnified Person acting under this Declaration shall not be liable to the Trust
or to any other Covered Person for its good faith reliance on the provisions of this Declaration.
The provisions of this Declaration, to the extent that they restrict the duties and liabilities of
an Indemnified Person otherwise existing at law or in equity, are agreed by the parties hereto to
replace such other duties and liabilities of such Indemnified Person;

               (b) unless otherwise expressly provided herein:

	 	(i)	 	whenever a conflict of interest exists or
arises between Covered Persons; or
	 
	 	(ii)	 	whenever this Declaration or any other
agreement contemplated herein provides that an Indemnified Person
shall act in a manner that is, or provides terms that are, fair and
reasonable to the Trust or any holder of Securities, the Indemnified
Person shall resolve such conflict of interest, take such action or
provide such terms, considering in each case the relative interest
of each party (including its own interest) to such conflict,
agreement, transaction or situation and the benefits and burdens
relating to such interests, any customary or accepted industry
practices, and any applicable generally accepted accounting
practices or principles. In the absence of bad faith by the
Indemnified Person, the resolution, action or term so made, taken or
provided by the Indemnified Person shall not constitute a breach of
this Declaration or any other agreement contemplated herein or of
any duty or obligation of the Indemnified Person at law or in equity
or otherwise; and

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

	 	(i)	 	in its “discretion” or under a grant of
similar authority, the Indemnified Person shall be entitled to
consider such interests and factors as it desires, including its own
interest, and shall have no duty or obligation to give any
consideration to any interest of or factors affecting the Trust or
any other Person; or
	 
	 	(ii)	 	in its “good faith” or under another
express standard, the Indemnified Person shall act under such
express standard and shall not be subject to any other or different
standard imposed by this Declaration or by applicable law.

SECTION 4.3 Indemnification.

               (a) (i) The Sponsor shall indemnify, to the full extent permitted by law, any Company
Indemnified Person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Trust) by reason of the fact that he
is or was a Company Indemnified Person against expenses (including attorneys

8

 

fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him
in connection with such action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the Trust, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that
the Company Indemnified Person did not act in good faith and in a manner which he reasonably
believed to be in or not opposed to the best interests of the Trust, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.

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

               (iii) To the extent that a Company Indemnified Person shall be successful on the merits or
otherwise (including dismissal of an action without prejudice or the settlement of an action
without admission of liability) in defense of any action, suit or proceeding referred to in
paragraphs (i) and (ii) of this Section 4.3(a), or in defense of any claim, issue or matter
therein, he shall be indemnified, to the full extent permitted by law, against expenses (including
attorneys’ fees) actually and reasonably incurred by him in connection therewith.

               (iv) Any indemnification under paragraphs (i) and (ii) of this Section 4.3(a) (unless ordered
by a court) shall be made by the Sponsor only as authorized in the specific case upon a
determination that indemnification of the Company Indemnified Person is proper in the circumstances
because he has met the applicable standard of conduct set forth in paragraphs (i) and (ii). Such
determination shall be made (1) by the Administrative Trustees by a majority vote of quorum
consisting of such Administrative Trustees who were not parties to such action, suit or proceeding,
(2) if such a quorum is not obtainable, or, even if obtainable, if a quorum of disinterested
Administrative Trustees so directs, by independent legal counsel in a written opinion, or (3) by
the Common Security Holder of the Trust.

               (v) Expenses (including attorneys fees) incurred by a Company Indemnified Person in defending
a civil, criminal, administrative or investigative action, suit or proceeding referred to in
paragraphs (i) and (ii) of this Section 4.3(a) shall be paid by the Sponsor in advance of the final
disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of
such Company Indemnified Person to repay such amount if it

9

 

shall ultimately be determined that he is not entitled to be indemnified by the Sponsor as
authorized in this Section 4.3(a). Notwithstanding the foregoing, no advance shall be made by the
Sponsor if a determination is reasonably and promptly made (i) by the Administrative Trustees by a
majority vote of a quorum of disinterested Administrative Trustees, (ii) if such a quorum is not
obtainable, or, even if obtainable, if a quorum of disinterested Administrative Trustees so
directs, by independent legal counsel in a written opinion or (iii) the Common Security Holder of
the Trust, that, based upon the facts known to the Administrative Trustees, counsel or the Common
Security Holder at the time such determination is made, such Company Indemnified Person acted in
bad faith or in a manner that such person did not believe to be in or not opposed to the best
interests of the Trust, or, with respect to any criminal proceeding, that such Company Indemnified
Person believed or had reasonable cause to believe his conduct was unlawful. In no event shall any
advance be made in instances where the Administrative Trustees, independent legal counsel or the
Common Security Holder reasonably determine that such person deliberately breached his duty to the
Trust or the Common Security or Capital Security Holders.

               (vi) The indemnification and advancement of expenses provided by, or granted pursuant to, the
other paragraphs of this Section 4.3(a) shall not be deemed exclusive of any other rights to which
those seeking indemnification and advancement of expenses may be entitled under any agreement, vote
of stockholders or disinterested directors of the Sponsor or Capital Security Holders of the Trust
or otherwise, both as to action in his official capacity and as to action in another capacity while
holding such office. All rights to indemnification under this Section 4.3(a) shall be deemed to be
provided by a contract between the Sponsor and each Company Indemnified Person who serves in such
capacity at any time while this Section 4.3(a) is in effect. Any repeal or modification of this
Section 4.3(a) shall not affect any rights or obligations then existing.

               (vii) The Sponsor or the Trust may purchase and maintain liability insurance on behalf of any
person who is or was a Company Indemnified Person against any liability asserted against him and
incurred by him in any such capacity, or arising out of his status as such, whether or not the
Sponsor would have the power to indemnify him against such liability under the provisions of this
Section 4.3(a).

               (viii) For purposes of this Section 4.3(a), references to “the Trust” shall include, in
addition to the resulting or surviving entity, any constituent entity (including any constituent of
a constituent) absorbed in a consolidation or merger, so that any person who is or was a director,
trustee, officer or employee of such constituent entity, or is or was serving at the request of
such constituent entity as a director, trustee, officer, employee or agent of another entity, shall
stand in the same position under the provisions of this Section 4.3(a) with respect to the
resulting or surviving entity as he would have with respect to such constituent entity if its
separate existence had continued.

               (ix) The indemnification and advancement of expenses provided by, or granted pursuant to,
this Section 4.3(a) shall, unless otherwise provided when authorized or ratified, continue as to a
person who has ceased to be a Company Indemnified Person and shall inure to the benefit of the
heirs, executors and administrators of such a person.

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               (b) The Sponsor agrees to indemnify (i) the Delaware Trustee, (ii) any Affiliate of the
Delaware Trustee, and (iii) any officers, directors, shareholders, members, partners, employees,
representatives, nominees, custodians or agents of the Delaware Trustee (each of the Persons in (i)
through (iii) being referred to as a “Fiduciary Indemnified Person”) for, and to hold each
Fiduciary Indemnified Person harmless against, any loss, liability or expense incurred without
gross negligence or bad faith or its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and expenses (including
reasonable legal fees and expenses) of defending itself against, or investigating, any claim or
liability in connection with the exercise or performance of any of its powers or duties hereunder.
The obligation to indemnify as set forth in this Section 4.3(b) shall survive the termination of
this Declaration and the resignation or removal of the Delaware Trustee.

SECTION 4.4 Outside Businesses.

               Any Covered Person, the Sponsor and the Delaware Trustee may engage in or possess an interest
in other business ventures of any nature or description, independently or with others, similar or
dissimilar to the business of the Trust, and the Trust and the holders of Securities shall have no
rights by virtue of this Declaration in and to such independent ventures or the income or profits
derived therefrom and the pursuit of any such venture, even if competitive with the business of the
Trust, shall not be deemed wrongful or improper. No Covered Person, the Sponsor or the Delaware
Trustee shall be obligated to present any particular investment or other opportunity to the Trust
even if such opportunity is of a character that, if presented to the Trust, could be taken by the
Trust, and any Covered Person, the Sponsor and the Delaware Trustee shall have the right to take
for its own account (individually or as a partner or fiduciary) or to recommend to others any such
particular investment or other opportunity. Any Covered Person and the Delaware Trustee may engage
or be interested in any financial or other transaction with the Sponsor or any Affiliate of the
Sponsor, or may act as depository for, trustee or agent for or may act on any committee or body of
holders of, securities or other obligations of the Sponsor or its Affiliates.

ARTICLE
V

AMENDMENTS, TERMINATION, MISCELLANEOUS

SECTION 5.1 Amendments.

               At any time before the issue of any Securities, this Declaration may be amended by, and only
by, a written instrument executed by all of the Administrative Trustees and the Sponsor, provided,
however, that if such amendment affects the rights, privileges, immunities, duties or obligations
of the Delaware Trustee, the Declaration may be amended only upon the Delaware Trustee’s prior
written consent.

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SECTION 5.2 Termination of Trust.

               (a) The Trust shall dissolve and be wound up in accordance with applicable law:

	 	(i)	 	upon the occurrence of an Event of
Default described in section 5.1(d) and (e) of the Indenture with
respect to the Sponsor;
	 
	 	(ii)	 	upon the filing of a certificate of
dissolution or its equivalent with respect to the Sponsor or the
revocation of the Sponsor’s charter or of the Trust’s certificate of
trust;
	 
	 	(iii)	 	upon the entry of a decree of judicial
dissolution of the Sponsor or the Trust; and
	 
	 	(iv)	 	before issuance of any Securities, with
the consent of all of the Administrative Trustees and the Sponsor.

               (b) Upon completion of the winding up of the Trust and as soon as is practicable after the
occurrence of an event referred to in Section 5.2(a), the Administrative Trustees shall file a
certificate of cancellation with the Secretary of State of the State of Delaware.

SECTION 5.3 Governing Law.

               THIS DECLARATION AND THE RIGHTS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED
BY SUCH LAWS WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICT OF LAWS.

SECTION 5.4 Headings.

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

SECTION 5.5 Successors and Assigns.

               Whenever in this Declaration any of the parties hereto is named or referred to, the successors
and assigns of such party shall be deemed to be included, and all covenants and agreements in this
Declaration by the Sponsor and the Trustees shall bind and inure to the benefit of their respective
successors and assigns, whether so expressed.

SECTION 5.6 Partial Enforceability.

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

12

 

SECTION 5.7 Counterparts.

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

13

 

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

	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY,
	 

	 	 	 	as Delaware Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 
	 
	 	 	 	 
	 	 	ADMINISTRATIVE TRUSTEE
	 
	 	 	 	 
	 	 	 
	 	 	Name: Gordon Fong
	 
	 	 	 	 
	 	 	ADMINISTRATIVE TRUSTEE
	 
	 	 	 	 
	 	 	 
	 	 	Name: Norman A. Morales
	 
	 	 	 	 
	 	 	VINEYARD NATIONAL BANCORP,
	 

	 	 	 	as Sponsor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Gordon Fong
	 

	 	 	 	Title: Executive Vice President and Chief Financial Officerexv4w8

 

Exhibit 4.8

FORM OF

AMENDED AND RESTATED

DECLARATION OF TRUST

OF

VINEYARD STATUTORY TRUST X

Dated as of ____________ __, 200_

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I.	 	INTERPRETATION AND DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 1.01
	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II.	 	TRUST INDENTURE ACT	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 2.01
	 	Trust Indenture Act; Application
	 	 	7	 
	 

	 	Section 2.02
	 	Lists of Holders of Securities
	 	 	7	 
	 

	 	Section 2.03
	 	Reports by the Property Trustee
	 	 	8	 
	 

	 	Section 2.04
	 	Periodic Reports to Property Trustee
	 	 	8	 
	 

	 	Section 2.05
	 	Evidence of Compliance with Conditions Precedent
	 	 	8	 
	 

	 	Section 2.06
	 	Events of Default; Waiver
	 	 	8	 
	 

	 	Section 2.07
	 	Event of Default; Notice
	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III.	 	ORGANIZATION	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.01
	 	Name
	 	 	11	 
	 

	 	Section 3.02
	 	Office
	 	 	11	 
	 

	 	Section 3.03
	 	Purpose
	 	 	11	 
	 

	 	Section 3.04
	 	Authority
	 	 	11	 
	 

	 	Section 3.05
	 	Title to Property of the Trust
	 	 	12	 
	 

	 	Section 3.06
	 	Powers and Duties of the Administrative Trustees
	 	 	12	 
	 

	 	Section 3.07
	 	Prohibition of Actions by the Trust and the Trustees
	 	 	14	 
	 

	 	Section 3.08
	 	Powers and Duties of the Property Trustee
	 	 	15	 
	 

	 	Section 3.09
	 	Certain Duties and Responsibilities of the Property Trustee
	 	 	18	 
	 

	 	Section 3.10
	 	Certain Rights of Property Trustee
	 	 	19	 
	 

	 	Section 3.11
	 	Delaware Trustee
	 	 	21	 
	 

	 	Section 3.12
	 	Execution of Documents
	 	 	22	 
	 

	 	Section 3.13
	 	Not Responsible for Recitals or Issuance of Securities
	 	 	22	 
	 

	 	Section 3.14
	 	Duration of Trust
	 	 	22	 
	 

	 	Section 3.15
	 	Mergers
	 	 	22	 
	 

	 	Section 3.16
	 	Property Trustee May File Proofs of Claim
	 	 	24	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV.	 	SPONSOR	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 4.01
	 	Sponsor’s Purchase of Common Securities
	 	 	25	 
	 

	 	Section 4.02
	 	Responsibilities of the Sponsor
	 	 	25	 
	 

	 	Section 4.03
	 	Right to Proceed
	 	 	25	 
	 

	 	Section 4.04
	 	Right to Dissolve Trust
	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V.	 	TRUSTEES	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.01
	 	Number of Trustees: Appointment of Co-Trustee
	 	 	26	 

 

 

TABLE OF CONTENTS (continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	Section 5.02
	 	Delaware Trustee
	 	 	26	 
	 

	 	Section 5.03
	 	Property Trustee; Eligibility
	 	 	27	 
	 

	 	Section 5.04
	 	Certain Qualifications of Administrative Trustees and Delaware Trustee Generally
	 	 	28	 
	 

	 	Section 5.05
	 	Administrative Trustees
	 	 	28	 
	 

	 	Section 5.06
	 	Delaware Trustee
	 	 	28	 
	 

	 	Section 5.07
	 	Appointment, Removal and Resignation of Trustees
	 	 	28	 
	 

	 	Section 5.08
	 	Vacancies among Trustees
	 	 	30	 
	 

	 	Section 5.09
	 	Effect of Vacancies
	 	 	30	 
	 

	 	Section 5.10
	 	Meetings
	 	 	30	 
	 

	 	Section 5.11
	 	Delegation of Power	 	 	31	 
	 

	 	Section 5.12
	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI.	 	DISTRIBUTIONS	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 6.01
	 	Distributions
	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII.	 	ISSUANCE OF SECURITIES	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.01
	 	General Provisions Regarding Securities
	 	 	32	 
	 

	 	Section 7.02
	 	Execution and Authentication
	 	 	32	 
	 

	 	Section 7.03
	 	Form and Dating
	 	 	33	 
	 

	 	Section 7.04
	 	Registrar and Paying Agent
	 	 	34	 
	 

	 	Section 7.05
	 	Paying Agent to Hold Money in Trust
	 	 	35	 
	 

	 	Section 7.06
	 	Replacement Securities
	 	 	35	 
	 

	 	Section 7.07
	 	Outstanding Preferred Securities
	 	 	35	 
	 

	 	Section 7.08
	 	Preferred Securities in Treasury
	 	 	36	 
	 

	 	Section 7.09
	 	Definitive Securities
	 	 	36	 
	 

	 	Section 7.10
	 	Cancellation
	 	 	37	 
	 

	 	Section 7.11
	 	CUSIP Numbers
	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII.	 	DISSOLUTION AND TERMINATION OF TRUST	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 8.01
	 	Dissolution and Termination of Trust
	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX.	 	TRANSFER OF INTERESTS	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 9.01
	 	Transfer of Securities
	 	 	38	 
	 

	 	Section 9.02
	 	Transfer Procedures and Restrictions
	 	 	39	 
	 

	 	Section 9.03
	 	Deemed Security Holders
	 	 	41	 
	 

	 	Section 9.04
	 	Book Entry Interests
	 	 	42	 
	 

	 	Section 9.05
	 	Notices to Clearing Agency
	 	 	42	 
	 

	 	Section 9.06
	 	Appointment of Successor Clearing Agency
	 	 	42	 

 

 

TABLE OF CONTENTS (continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE X.	 	LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS	 	 	43	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 10.01
	 	Liability
	 	 	43	 
	 

	 	Section 10.02
	 	Exculpation
	 	 	43	 
	 

	 	Section 10.03
	 	Fiduciary Duty
	 	 	43	 
	 

	 	Section 10.04
	 	Indemnification
	 	 	44	 
	 

	 	Section 10.05
	 	Outside Businesses
	 	 	47	 
	 

	 	Section 10.06
	 	Compensation; Fees
	 	 	47	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI.	 	ACCOUNTING	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 11.01
	 	Fiscal Year
	 	 	48	 
	 

	 	Section 11.02
	 	Certain Accounting Matters
	 	 	48	 
	 

	 	Section 11.03
	 	Banking
	 	 	48	 
	 

	 	Section 11.04
	 	Withholding
	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XII.	 	AMENDMENTS AND MEETINGS	 	 	49	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 12.01
	 	Amendments
	 	 	49	 
	 

	 	Section 12.02
	 	Meetings of the Holders; Action by Written Consent
	 	 	50	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XIII.	 	REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 13.01
	 	Representations and Warranties of Property Trustee
	 	 	52	 
	 

	 	Section 13.02
	 	Representations and Warranties of Delaware Trustee
	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XIV.	 	MISCELLANEOUS	 	 	53	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 14.01
	 	Notices
	 	 	53	 
	 

	 	Section 14.02
	 	Governing Law
	 	 	54	 
	 

	 	Section 14.03
	 	Intention of the Parties
	 	 	54	 
	 

	 	Section 14.04
	 	Headings
	 	 	55	 
	 

	 	Section 14.05
	 	Successors and Assigns
	 	 	55	 
	 

	 	Section 14.06
	 	Partial Enforceability
	 	 	55	 
	 

	 	Section 14.07
	 	Counterparts
	 	 	55	 

 

 

	 	 	 	 	 
	 	 	 	 	Page
	ANNEX I

	 	TERMS OF SECURITIES
	 	I-1
	EXHIBIT A-1

	 	FORM OF PREFERRED SECURITY CERTIFICATE
	 	A-1
	EXHIBIT A-2

	 	FORM OF COMMON SECURITY CERTIFICATE
	 	A2-1
	EXHIBIT B

	 	AGENCY AGREEMENT
	 	B-1

 

 

	 	 	 
	Section of	 	 
	Trust Indenture Act	 	 
	of 1939, as amended	 	Section of Declaration
	310(a)

	 	5.03
	310(b)

	 	5.03(c), 5.03(d)
	311(a)

	 	2.02(b)
	311(b

	 	2.0(b)
	312(a)

	 	2.02(a)
	312(b)

	 	2.02(b)
	313

	 	2.03
	314(a)

	 	2.04; 3.06(j)
	314(c)

	 	2.05
	315(a)

	 	3.09
	315(b)

	 	2.07(a)
	315(c)

	 	3.09(a)
	315(d)

	 	3.09(b)
	316(a)

	 	2.06
	316(c)

	 	3.06(e)
	317(a)

	 	3.08(e); 3.08(h)
	317(b)

	 	3.08(i); 7.05

 

			
	*	 	This Cross-Reference Table does not constitute part of the Declaration and shall not affect
the interpretation of any of its terms or provisions.

 

 

AMENDED AND RESTATED DECLARATION OF TRUST

OF

VINEYARD STATUTORY TRUST X

_____________ ___, 200__

     AMENDED AND RESTATED DECLARATION OF TRUST, including Annex I and all exhibits attached hereto
(this “Declaration”), dated and effective as of                                     ___, 200___, by the Trustees (as defined
herein), the Sponsor (as defined herein) and by the holders, from time to time, of undivided
beneficial interests in the assets of the Trust to be issued pursuant to this Declaration;

     WHEREAS, the Trustees (other than the Property Trustee (as defined herein)) and the Sponsor
established Vineyard Statutory Trust X (the “Trust”), a trust formed under the Statutory Trust Act
(as defined herein) pursuant to a Declaration of Trust dated as of                                  ___, 200___(the
“Original Declaration”), and a Certificate of Trust filed with the Secretary of State of the State
of Delaware on                                          ___, 200___(the “Certificate of Trust”), for the sole purpose of issuing
and selling certain securities representing undivided beneficial interests in the assets of the
Trust and investing the proceeds thereof in certain Debentures of the Debenture Issuer (each as
hereinafter defined), and engaging in only those other activities that are necessary or incidental
thereto; and

     WHEREAS, prior to the date hereof, no interests in the Trust have been issued; and

     WHEREAS, all of the Trustees and the Sponsor, by this Declaration, amend and restate in its
entirety each and every term and provision of the Original Declaration;

     NOW, THEREFORE, it being the intention of the parties hereto to continue the Trust as a
statutory trust under the Statutory Trust Act and that this Declaration constitute the governing
instrument of such statutory trust, the Trustees declare that all assets contributed to the Trust
will be held in trust for the benefit of the Holders (as defined herein), from time to time, of the
securities representing undivided beneficial interests in the assets of the Trust issued hereunder,
subject to the provisions of this Declaration.

ARTICLE
I.

INTERPRETATION AND DEFINITIONS

Section 1.01 Definitions.

     Unless the context otherwise requires:

     (a) Capitalized terms used in this Declaration but not defined in the preamble above have the
respective meanings assigned to them in this Section 1.01;

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

 

 

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

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

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

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

     “Administrative Trustee” has the meaning set forth in Section 5.01(b).

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

     “Agency Agreement” means the Agency Agreement for the initial offering and sale of Preferred
Securities in the form of Exhibit B.

     “Agent” means any Paying Agent or Registrar.

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

     “Book Entry Interest” means a beneficial interest in a Global Certificate registered in the
name of a Clearing Agency or its nominee, ownership and transfers of which shall be maintained and
made through book entries by a Clearing Agency as described in Section 9.04.

     “Business Day” means any day other than a Saturday or a Sunday or a day on which banking
institutions in the cities of New York, New York, Wilmington, Delaware or Rancho Cucamonga,
California are authorized or required by law or executive order to close.

     “Clearing Agency” means an organization registered as a “Clearing Agency” pursuant to Section
17A of the Exchange Act that is acting as depositary for the Preferred Securities and in whose name
or in the name of a nominee of that organization shall be registered a Global Certificate and which
shall undertake to effect book entry transfers and pledges of the Preferred Securities.

     “Clearing Agency Participant” means a broker, dealer, bank, other financial institution or
other Person for whom from time to time the Clearing Agency effects book entry transfers and
pledges of securities deposited with the Clearing Agency.

     “Closing Time” means the “Closing Date” under the Agency Agreement.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor
legislation. A reference to a specific section of the Code refers not only to such

2

 

specific section but also to any corresponding provision of any federal tax statute enacted
after the date of this Declaration, as such specific section or corresponding provision is in
effect on the date of application of the provisions of this Declaration containing such reference.

     “Commission” means the United States Securities and Exchange Commission as from time to time
constituted, or if any time after the execution of this Declaration such Commission is not existing
and performing the duties now assigned to it under applicable Federal securities laws, then the
body performing such duties at such time.

     “Common Securities” has the meaning specified in Section 7.01(a).

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

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

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

     “Debentures” means the ___% Junior Subordinated Deferrable Interest Debentures due ___
___, 200___of the Debenture Issuer issued pursuant to the Indenture.

     “Debenture Issuer” means Vineyard National Bancorp, a California corporation, or any successor
entity resulting from any consolidation, amalgamation, merger or other business combination, in its
capacity as issuer of the Debentures under the Indenture.

     “Debenture Trustee” means Wilmington Trust Company, a Delaware banking corporation, as trustee
under the Indenture until a successor is appointed thereunder, and thereafter means such successor
trustee.

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

     “Definitive Preferred Securities” shall have the meaning set forth in Section 7.03(c).

     “Delaware Trustee” has the meaning set forth in Section 5.02.

     “Direct Action” shall have the meaning set forth in Section 3.08(e).

     “Distribution” means a distribution payable to Holders in accordance with Section 6.01.

     “DTC” means The Depository Trust Company, the initial Clearing Agency.

3

 

     “Event of Default” in respect of the Securities means an Event of Default (as defined in the
Indenture) that has occurred and is continuing in respect of the Debentures.

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

     “Fiduciary Indemnified Person” has the meaning set forth in Section 10.04(b).

     “Fiscal Year” has the meaning set forth in Section 11.01.

     “Global Preferred Security” has the meaning set forth in Section 7.03(a).

     “Holder” means a Person in whose name a Security is registered, such Person being a beneficial
owner within the meaning of the Statutory Trust Act; provided, however, that in determining whether
the Holders of the requisite liquidation amount of Preferred Securities have voted on any matter
provided for in this Declaration, then for the purpose of such determination only (and not for any
other purpose hereunder), if the Preferred Securities remain in the form of one or more Global
Certificates, the term “Holders” shall mean the holder of the Global Certificate acting at the
direction of the Preferred Security Beneficial Owners.

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

     “Indenture”
means the Indenture dated, as of
_______  __
, 200___, between the Debenture
Issuer and the Debenture Trustee, as amended or supplemented from time to time.

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

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

     “Investment Company Event” has the meaning set forth in Annex I.

     “Legal Action” has the meaning set forth in Section 3.06(g).

     “List of Holders” has the meaning set forth in Section 2.02(a).

     “Majority in liquidation amount” means, with respect to the Trust Securities, except as
provided in the terms of the Preferred Securities or by the Trust Indenture Act, Holder(s) of
outstanding Trust Securities voting together as a single class or, as the context may require,
Holders of outstanding Preferred Securities or Holders of outstanding Common Securities voting
separately as a class, who are the record owners of more than 50% of the aggregate liquidation
amount of all outstanding Securities of the relevant class.

     “Officers’ Certificate” means, with respect to any Person, a certificate signed by any two of
the following: the Chairman, a Vice Chairman, the Chief Executive Officer, the President, the
Chief Financial Officer, a Vice President, the Comptroller, the Secretary or an Assistant

4

 

Secretary of such Person. Any Officers’ Certificate delivered by the Trust shall be signed by
at least one Administrative Trustee. Any Officers’ Certificate delivered with respect to
compliance with a condition or covenant provided for in this Declaration shall include:

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

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

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

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

     “Opinion of Counsel” means a written opinion of counsel, who (except as specifically provided
to the contrary herein by reference to “independent counsel”) may be an employee of the Sponsor,
and who shall be acceptable to the Property Trustee.

     “Paying Agent” has the meaning specified in Section 7.04.

     “Payment Amount” has the meaning specified in Section 6.01.

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

     “Preferred Security Beneficial Owner” means, with respect to a Book Entry Interest, a Person
who is the beneficial owner of such Book Entry Interest, as reflected on the books of the Clearing
Agency, or on the books of a Person maintaining an account with such Clearing Agency (directly as a
Clearing Agency Participant or as an indirect participant, in each case in accordance with the
rules of such Clearing Agency).

     “Preferred Securities” means the ___% Cumulative Trust Preferred Securities.

     “Preferred Securities Guarantee”
 means the guarantee agreement dated as of ______  ___,
200___of the Sponsor in respect of the Preferred Securities.

     “Property Trustee” has the meaning set forth in Section 5.03(a).

     “Property Trustee Account” has the meaning set forth in Section 3.08(c)(i).

     “Prospectus” has the meaning set forth in Section 3.06(b)(i).

5

 

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

     “Registrar” has the meaning set forth in Section 7.04.

     “Registration Statement” has the meaning set forth in Section 3.06(b)(i).

     “Regulatory Capital Event” has the meaning set forth in Annex I.

     “Related Party” means, with respect to the Sponsor, any direct or indirect wholly owned
subsidiary of the Sponsor or any other Person that owns, directly or indirectly, 100% of the
outstanding voting securities of the Sponsor.

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

     “Rule 3a-5” means Rule 3a-5 under the Investment Company Act, or any successor rule or
regulation.

     “Securities” or “Trust Securities” means the Common Securities and the Preferred Securities.

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

     “Special Event” has the meaning set forth in Section 4(c) of Annex I hereto.

     “Sponsor” means Vineyard National Bancorp, a California corporation, or any successor entity
resulting from any merger, consolidation, amalgamation or other business combination, in its
capacity as sponsor of the Trust.

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

     “Successor Delaware Trustee” has the meaning set forth in Section 5.07(b)(ii).

     “Successor Entity” has the meaning set forth in Section 3.15(b)(i).

     “Successor Property Trustee” has the meaning set forth in Section 3.08(f)(ii).

     “Super Majority” has the meaning set forth in Section 2.06(a)(ii).

     “Tax Event” has the meaning set forth in Annex I.

     “10% in liquidation amount” means, with respect to the Trust Securities, except as provided in
the terms of the Preferred Securities or by the Trust Indenture Act, Holder(s) of outstanding Trust
Securities voting together as a single class or, as the context may require,

6

 

Holders of outstanding Preferred Securities or Holders of outstanding Common Securities voting
separately as a class, who are the record owners of 10% or more of the aggregate liquidation amount
of all outstanding Securities of the relevant class.

     “Treasury Regulations” means the income tax regulations, including temporary and proposed
regulations, promulgated under the Code by the United States Treasury, as such regulations may be
amended from time to time (including corresponding provisions of succeeding regulations).

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

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

ARTICLE
II.

TRUST INDENTURE ACT

Section 2.01 Trust Indenture Act; Application.

     (a) This Declaration is subject to the provisions of the Trust Indenture Act that are required
to be part of this Declaration in order for this Declaration to be qualified under the Trust
Indenture Act and shall, to the extent applicable, be governed by such provisions.

     (b) The Property Trustee shall be the only Trustee which is a “trustee” for the purposes of
the Trust Indenture Act.

     (c) If and to the extent that any provision of this Declaration conflicts with the duties
imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control.

     (d) The application of the Trust Indenture Act to this Declaration shall not affect the
Trust’s classification as a grantor trust for United States federal income tax purposes or the
nature of the Securities as equity securities representing undivided beneficial interests in the
assets of the Trust.

Section 2.02 Lists of Holders of Securities.

     (a) Each of the Sponsor and the Administrative Trustees on behalf of the Trust shall provide
the Property Trustee, unless the Property Trustee is Registrar for the Securities, (i) within 10
Business Days after each record date for payment of Distributions, a list, in such form as the
Property Trustee may reasonably require, of the names and addresses of the Holders (“List of
Holders”) as of such record date, provided that neither the Sponsor nor the Administrative Trustees
on behalf of the Trust shall be obligated to provide such List of Holders at any time that the List
of Holders does not differ from the most recent List of Holders given to the Property

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Trustee by the Sponsor and the Administrative Trustees on behalf of the Trust, and (ii) at any
other time, within 30 days of receipt by the Trust of a written request for a List of Holders as of
a date no more than 14 days before such List of Holders is given to the Property Trustee. The
Property Trustee shall preserve, in as current a form as is reasonably practicable, all information
contained in Lists of Holders given to it or which it receives in the capacity as Paying Agent (if
acting in such capacity), provided that the Property Trustee may destroy any List of Holders
previously given to it on receipt of a new List of Holders.

     (b) The Property Trustee shall comply with its obligations under Sections 311(a), 311(b) and
312(b) of the Trust Indenture Act.

Section 2.03 Reports by the Property Trustee.

     On or before July 15 of each year, commencing July 15, 200___, the Property Trustee shall
provide to the Holders of the Preferred Securities such reports dated as of such July 15 as are
required by Section 313 of the Trust Indenture Act, if any, in the form and in the manner provided
by Section 313 of the Trust Indenture Act. The Property Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act.

Section 2.04 Periodic Reports to Property Trustee.

     Each of the Sponsor and the Administrative Trustees on behalf of the Trust shall provide to
the Property Trustee such documents, reports and information as are required by Section 314 of the
Trust Indenture Act (if any) and the compliance certificate required by Section 314 of the Trust
Indenture Act in the form, in the manner and at the times required by Section 314(a)(4) of the
Trust Indenture Act, such compliance certificate to be delivered annually on or before 120 days
after the end of each fiscal year of the Sponsor. Delivery of such documents, reports and
information to the Property Trustee is for informational purposes only and the Property Trustee’s
receipt of such shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Sponsor’s compliance with any of its
covenants hereunder (as to which the Property Trustee is entitled to rely exclusively on Officers’
Certificates).

Section 2.05 Evidence of Compliance with Conditions Precedent.

     Each of the Sponsor and the Administrative Trustees on behalf of the Trust shall provide to
the Property Trustee such evidence of compliance with any conditions precedent provided for in this
Declaration that relate to any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given by an officer pursuant to Section 314(c)(1) of
the Trust Indenture Act may be given in the form of an Officers’ Certificate.

Section 2.06 Events of Default; Waiver.

     (a) The Holders of a Majority in liquidation amount of Preferred Securities may, by vote, on
behalf of the Holders of all of the Preferred Securities, waive any past Event of Default in
respect of the Preferred Securities and its consequences, provided that, if the underlying Event of
Default under the Indenture:

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          (i) is not waivable under the Indenture, the Event of Default under the Declaration shall also
not be waivable; or

          (ii) requires the consent or vote of greater than a majority in aggregate principal amount of
the holders of the Debentures (a “Super Majority”) to be waived under the Indenture, the Event of
Default under the Declaration may only be waived by the vote of the Holders of at least the
proportion in aggregate liquidation amount of the Preferred Securities that the relevant Super
Majority represents of the aggregate principal amount of the Debentures outstanding.

     The foregoing provisions of this Section 2.06(a) shall be in lieu of Section 316(a)(1)(B) of
the Trust Indenture Act and such Section 316(a)(1)(B) of the Trust Indenture Act is hereby
expressly excluded from this Declaration and the Securities, as permitted by the Trust Indenture
Act. Upon such waiver, any such default shall cease to exist, and any Event of Default with
respect to the Preferred Securities arising therefrom shall be deemed to have been cured, for every
purpose of this Declaration, but no such waiver shall extend to any subsequent or other default or
an Event of Default with respect to the Preferred Securities or impair any right consequent
thereon. Any waiver by the Holders of the Preferred Securities of an Event of Default with respect
to the Preferred Securities shall also be deemed to constitute a waiver by the Holders of the
Common Securities of any such Event of Default with respect to the Common Securities for all
purposes of this Declaration without any further act, vote or consent of the Holders of the Common
Securities.

     (b) The Holders of a Majority in liquidation amount of the Common Securities may, by vote, on
behalf of the Holders of all of the Common Securities, waive any past Event of Default with respect
to the Common Securities and its consequences, provided that, if the underlying Event of Default
under the Indenture:

          (i) is not waivable under the Indenture, except where the Holders of the Common Securities are
deemed to have waived such Event of Default under the Declaration as provided below in this Section
2.06(b), the Event of Default under the Declaration shall also not be waivable; or

          (ii) requires the consent or vote of a Super Majority to be waived under the Indenture, except
where the Holders of the Common Securities are deemed to have waived such Event of Default under
the Declaration as provided below in this Section 2.06(b), the Event of Default under the
Declaration may only be waived by the vote of the Holders of at least the proportion in aggregate
liquidation amount of the Common Securities that the relevant Super Majority represents of the
aggregate principal amount of the Debentures outstanding; provided further, each Holder of Common
Securities will be deemed to have waived any such Event of Default and all Events of Default with
respect to the Common Securities and their consequences until Events of Default with respect to the
Preferred Securities have been cured, waived or otherwise eliminated, and until such Events of
Default have been so cured, waived or otherwise eliminated, the Property Trustee will be deemed to
be acting solely on behalf of the Holders of the Preferred Securities and only the Holders of the
Preferred Securities will have the right to direct the Property Trustee in accordance with the
terms of the Securities. The foregoing provisions of this Section 2.06(b) shall be in lieu of
Sections 316(a)(1)(A) and 316(a)(1)(B) of

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the Trust Indenture Act and such Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture
Act are hereby expressly excluded from this Declaration and the Securities, as permitted by the
Trust Indenture Act. Subject to the foregoing provisions of this Section 2.06(b), upon such
waiver, any such default shall cease to exist and any Event of Default with respect to the Common
Securities arising therefrom shall be deemed to have been cured for every purpose of this
Declaration, but no such waiver shall extend to any subsequent or other default or Event of Default
with respect to the Common Securities or impair any right consequent thereon.

     (c) A waiver of an Event of Default under the Indenture by the Property Trustee, at the
direction of the Holders of the Preferred Securities, constitutes a waiver of the corresponding
Event of Default under this Declaration. The foregoing provisions of this Section 2.06(c) shall be
in lieu of Section 316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of the
Trust Indenture Act is hereby expressly excluded from this Declaration and the Securities, as
permitted by the Trust Indenture Act.

Section 2.07 Event of Default; Notice.

     (a) The Property Trustee shall, within 90 days after the occurrence of a Default (as such term
is defined in the Indenture) actually known to a Responsible Officer, transmit by mail, first class
postage prepaid, to the Holders of the Preferred Securities, the Administrative Trustees and the
Sponsor, notices of all Defaults with respect to the Securities actually known to a Responsible
Officer, unless such Defaults have been cured before the giving of such notice; provided that,
except for a default in the payment of principal of or interest (including Compounded Interest and
Additional Sums (as such terms are defined in the Indenture) if any, on any of the Debentures, the
Property Trustee shall be protected in withholding such notice if and so long as a Responsible
Officer in good faith determines that the withholding of such notice is in the interests of the
Holders. The Sponsor and the Administrative Trustees shall file annually with the Property Trustee
a certification as to whether or not they are in compliance with all the conditions and covenants
applicable to them under this Declaration.

     (b) The Property Trustee shall not be deemed to have knowledge of any default except:

          (i) a default under Sections 5.01(a) (other than the payment of Compounded Interest and
Additional Sums, each as defined in the Indenture) and 5.01(b) of the Indenture provided that the
Property Trustee is the Paying Agent under the Indenture; or

          (ii) any default as to which the Property Trustee shall have received written notice at the
corporate trust office of the Property Trustee and such notice references the Preferred Securities
and this Declaration or of which a Responsible Officer charged with the administration of the
Declaration shall have actual knowledge.

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ARTICLE
III.

ORGANIZATION

Section 3.01 Name.

     The Trust is named “Vineyard Statutory Trust X” as such name may be modified from time to time
by the Administrative Trustees following written notice to the Delaware Trustee, the Property
Trustee and the Holders. The Trust’s activities may be conducted under the name of the Trust or any
other name deemed advisable by the Administrative Trustees.

Section 3.02 Office.

     The address of the principal office of the Trust is c/o Vineyard National Bancorp, 9590
Foothill Boulevard, Rancho Cucamonga, California 91730. On ten Business Days written notice to
the Delaware Trustee, the Property Trustee and the Holders of Securities, the Administrative
Trustees may designate another principal office.

Section 3.03 Purpose.

     The exclusive purposes and functions of the Trust are (a) to issue and sell the Securities,
(b) use the proceeds from the sale of the Securities to acquire the Debentures, and (c) except as
otherwise limited herein, to engage in only those other activities that are necessary or incidental
thereto. The Trust shall not borrow money, issue debt or reinvest proceeds derived from
investments, mortgage or pledge any of its assets, or otherwise undertake (or permit to be
undertaken) any activity that would cause the Trust not to be classified for United States federal
income tax purposes as a grantor trust.

     The Trust will be classified as a grantor trust for United States federal income tax purposes,
pursuant to which the owners of the Preferred Securities and the Common Securities will be the
owners of the Trust for United States federal income tax purposes, and such owners will include
directly in their gross income the income, gain, deduction or loss of the Trust as if the Trust did
not exist. By the acceptance of this Trust, none of the Trustees, the Sponsor or the Holders of
the Securities will take any position which is contrary to the classification of the Trust as a
grantor trust for United States federal income tax purposes.

Section 3.04 Authority.

     Subject to the limitations provided in this Declaration and to the specific duties of the
Property Trustee, the Administrative Trustees shall have exclusive and complete authority to carry
out the purposes of the Trust. An action taken by the Administrative Trustees in accordance with
their powers shall constitute the act of and serve to bind the Trust and an action taken by the
Property Trustee on behalf of the Trust in accordance with its powers shall constitute the act of
and serve to bind the Trust. In dealing with the Trustees acting on behalf of the Trust, no Person
shall be required to inquire into the authority of the Trustees to bind the Trust. Persons dealing
with the Trust are entitled to rely conclusively on the power and authority of the Trustees as set
forth in this Declaration.

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Section 3.05 Title to Property of the Trust.

     Except as may be otherwise provided in this Declaration, legal title to all assets of the
Trust shall be vested in the Property Trustee for the benefit of the Trust and the Holders. The
Holders shall not have legal title to any part of the assets of the Trust, but shall have an
undivided beneficial interest in the assets of the Trust.

Section 3.06 Powers and Duties of the Administrative Trustees.

     The Administrative Trustees shall have the exclusive power, duty and authority to cause the
Trust to engage in any of the following activities as applicable:

     (a) to execute, enter into and deliver the Common Securities Subscription Agreement and to
execute, deliver, issue and sell the Securities in accordance with this Declaration and pursuant to
the Agency Agreement; provided, however, that except as contemplated in Section 7.01(a), (i) the
Trust may issue no more than one series of Preferred Securities and no more than one series of
Common Securities, (ii) there shall be no interests in the Trust other than the Securities, and
(iii) the issuance of Securities shall be limited to a simultaneous issuance of both the Preferred
Securities and Common Securities at the Closing Time;

     (b) in connection with the issuance and sale of the Preferred Securities, to:

          (i) prepare and execute a Prospectus, along with any applicable prospectus supplements thereto
(the “Prospectus”) in preliminary and final form prepared by the Sponsor, in relation to the
offering and sale of the Preferred Securities and to execute and file with the Commission a
registration statement on Form S-3 (the “Registration Statement”), including any amendments
thereto, for the offering and sale of the Preferred Securities;

          (ii) execute and file any documents prepared by the Sponsor, or take any acts as determined by
the Sponsor to be necessary, in order to qualify or register all or part of the Preferred
Securities in any State in which the Sponsor has determined to qualify or register such Preferred
Securities for sale;

          (iii) execute and file an application, prepared by the Sponsor, to permit the Preferred
Securities to trade or be quoted or listed in or on the Nasdaq National Market or any other
securities exchange or quotation system.

          (iv) execute and deliver letters, documents or instruments with DTC and other Clearing
Agencies relating to the Preferred Securities;

          (v) execute and file with the Commission a registration statement on Form 8-A, including any
amendments thereto, prepared by the Sponsor, relating to the registration of the Preferred
Securities under Section 12(b) or (g) of the Exchange Act; and

          (vi) execute and enter into the Agency Agreement providing for the sale of the Preferred
Securities;

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     (c) to execute, enter into and deliver a Debenture Subscription Agreement, if necessary, and
to acquire the Debentures with the proceeds of the sale of the Preferred Securities and the Common
Securities; provided, however, that the Administrative Trustees shall cause legal title to the
Debentures to be held of record in the name of the Property Trustee for the benefit of the Holders;

     (d) to give the Sponsor and the Property Trustee prompt written notice of the occurrence of a
Special Event;

     (e) to establish a record date with respect to all actions to be taken hereunder that require
a record date be established, including and with respect to, for the purposes of Section 316(c) of
the Trust Indenture Act, Distributions, voting rights, redemptions and exchanges, and to issue
relevant notices to the Holders of Preferred Securities and Holders of Common Securities as to such
actions and applicable record dates;

     (f) to take all actions and perform such duties as may be required of the Administrative
Trustees pursuant to the terms of this Declaration and the Securities;

     (g) to the fullest extent permitted by law, to bring or defend, pay, collect, compromise,
arbitrate, resort to legal action, or otherwise adjust claims or demands of or against the Trust
(“Legal Action”), unless pursuant to Section 3.08(e), the Property Trustee has the exclusive power
to bring such Legal Action;

     (h) to employ or otherwise engage employees and agents (who may be designated as officers with
titles) and managers, contractors, advisors and consultants to conduct the services that the
Administrative Trustees have authority to conduct directly and pay reasonable compensation for such
services;

     (i) to cause the Trust to comply with the Trust’s obligations under the Trust Indenture Act;

     (j) to give the certificate required by Section 314(a)(4) of the Trust Indenture Act to the
Property Trustee, which certificate may be executed by any Administrative Trustee;

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

     (l) to act as, or appoint another Person to act as, Registrar for the Securities or to appoint
a Paying Agent for the Securities as provided in Section 7.04 except for such time as such power to
appoint a Paying Agent is vested in the Property Trustee;

     (m) to give prompt written notice to the Property Trustee and to Holders of any notice
received from the Debenture Issuer of its election to defer payments of interest on the Debentures
by extending the interest payment period under the Indenture;

     (n) to take all action that may be necessary or appropriate for the preservation and the
continuation of the Trust’s valid existence, rights, franchises and privileges as a statutory trust
under the laws of the State of Delaware and of each other jurisdiction in which such existence is

13

 

necessary to protect the limited liability of the Holders or to enable the Trust to effect the
purposes for which the Trust was created;

     (o) to take any action, not inconsistent with this Declaration or with applicable law, that
the Administrative Trustees determine in their discretion to be necessary or desirable in carrying
out the activities of the Trust as set out in this Section 3.06, including, but not limited to:

          (i) causing the Trust not to be deemed to be an Investment Company required to be registered
under the Investment Company Act;

          (ii) causing the Trust to be classified for United States federal income tax purposes as a
grantor trust or causing each Holder to be treated as owning an undivided beneficial interest in
the Debentures;

          (iii) causing the interest payable on the Debentures to be deductible for federal income tax
purposes; and

          (iv) provided that such action does not adversely affect the interest of the Holders;

     (p) to take all action necessary to cause all applicable tax returns and tax information
reports that are required to be filed with respect to the Trust to be duly prepared and filed by
the Administrative Trustees, on behalf of the Trust; and

     (q) to execute all documents or instruments, perform all duties and powers, and do all things
for and on behalf of the Trust in all matters necessary or incidental to the foregoing.

     The Administrative Trustees must exercise the powers set forth in this Section 3.06 in a
manner that is consistent with the purposes and functions of the Trust set out in Section 3.03, and
the Administrative Trustees shall not take any action that is inconsistent with the purposes and
functions of the Trust set forth in Section 3.03.

     Subject to this Section 3.06, the Administrative Trustees shall have none of the powers or the
authority of the Property Trustee set forth in Section 3.08.

     The Administrative Trustees may take all actions on behalf of the Trust that are not
specifically required by this Declaration to be taken by any other Trustee.

     Any expenses incurred by the Administrative Trustees pursuant to this Section 3.06 shall be
reimbursed by the Debenture Issuer.

Section 3.07 Prohibition of Actions by the Trust and the Trustees.

     (a) The Trust shall not, and the Trustees (including the Property Trustee and the Delaware
Trustee) shall not, engage in any activity other than as required or authorized by this
Declaration. The Trust shall not:

14

 

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

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

          (iii) possess Trust property for other than a Trust purpose;

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

          (v) possess any power or otherwise act in such a way as to vary the Trust assets or the terms
of the Securities in any way whatsoever, except as otherwise expressly provided herein;

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

          (vii) other than as provided in this Declaration or Annex I, (A) direct the time, method and
place of conducting any proceeding with respect to any remedy available to the Debenture Trustee,
or exercising any trust or power conferred upon the Debenture Trustee with respect to the
Debentures, (B) waive any past default that is waivable under the Indenture or (C) exercise any
right to rescind or annul any declaration that the principal of all the Debentures shall be due and
payable; or

          (viii) consent to any amendment, modification or termination of the Indenture or the
Debentures where such consent shall be required unless the Trust shall have received (A) an opinion
of tax counsel (who shall not be an employee of the Sponsor or the Trust) experienced in such
matters to the effect that such amendment, modification or termination will not cause more than an
insubstantial risk that for United States federal income tax purposes the Trust will not be
classified as a grantor trust, and (B) an Opinion of Counsel from a firm experienced in such
matters, to the effect that the amendment, modification or termination will not cause more than an
insubstantial risk that the Trust will be deemed to be an investment company required to be
registered under the Investment Company Act of 1940, as amended.

Section 3.08 Powers and Duties of the Property Trustee.

     (a) The legal title to the Debentures shall be owned by and held of record in the name of the
Property Trustee in trust for the benefit of the Holders. The right, title and interest of the
Property Trustee to the Debentures shall vest automatically in each Person who may hereafter be
appointed as Property Trustee in accordance with Section 5.07. Such vesting and cessation of title
shall be effective whether or not conveyancing documents with regard to the Debentures have been
executed and delivered.

     (b) The Property Trustee shall not transfer its right, title and interest in the Debentures to
the Administrative Trustees or to the Delaware Trustee (if the Property Trustee does not also act
as Delaware Trustee).

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     (c) The Property Trustee shall:

          (i) establish and maintain a segregated non-interest bearing trust account (the “Property
Trustee Account”) in the name of and under the exclusive control of the Property Trustee on behalf
of the Holders and, upon the receipt of payments of funds made in respect of the Debentures held by
the Property Trustee, deposit such funds into the Property Trustee Account and make payments or
cause the Paying Agent to make payments to the Holders from the Property Trustee Account in
accordance with Section 6.01. Funds in the Property Trustee Account shall be held uninvested until
disbursed in accordance with this Declaration. The Property Trustee Account shall be an account
that is maintained with a banking institution the rating on whose long-term unsecured indebtedness
is rated in one of four highest rating categories by a “nationally recognized statistical rating
organization”, as that term is defined for purposes of Rule 436(g)(2) under the Securities Act;

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

          (iii) upon written notice of distribution issued by the Administrative Trustees in accordance
with the terms of the Securities, engage in such ministerial activities as shall be necessary or
appropriate to effect the distribution of the Debentures to Holders upon the occurrence of certain
events set forth in Sections 2.07 and 8.01 hereof.

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

     (e) Subject to Section 3.09(a), the Property Trustee shall take any Legal Action which arises
out of or in connection with an Event of Default of which a Responsible Officer has actual
knowledge or the Property Trustee’s duties and obligations under this Declaration or the Trust
Indenture Act and if the Property Trustee shall have failed to take such Legal Action following a
written request and offer of indemnity or security, satisfactory to the Property Trustee, from the
Holders, the Holders of the Preferred Securities may, to the fullest extent permitted by law, take
such Legal Action, to the same extent as if such Holders of Preferred Securities held an aggregate
principal amount of Debentures equal to the aggregate liquidation amount of such Preferred
Securities, without first proceeding against the Property Trustee or the Trust; provided, however,
that if an Event of Default has occurred and is continuing and such event is attributable to the
failure of the Debenture Issuer to pay the principal of or interest (including Compounded Interest
and Additional Sums (each as defined in Indenture), if any) on the Debentures on the date such
principal or interest (including Compounded Interest and Additional Sums, if any) is otherwise
payable (or in the case of redemption, on the redemption date), then a Holder of Preferred
Securities may directly institute a proceeding for enforcement of payment to such Holder of the
principal of or interest (including Compounded Interest and Additional Sums, if any), if any, on
the Debentures having a principal amount equal to the aggregate liquidation amount of the Preferred
Securities of such Holder (a “Direct Action”) on or after the respective due date specified in the
Debentures. In connection with such Direct Action, the Holders of the Common Securities will be
subrogated to the rights of such Holder of Preferred Securities to the

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extent of any payment made by the Debenture Issuer to such Holder of Preferred Securities in
such Direct Action. If the Property Trustee fails to declare the principal of all of the Debentures
due and payable upon an Event of Default (as defined in the Indenture), so long as the Property
Trustee is holding the Debentures on behalf of the Trust, the Holders of at least 25% in
liquidation amount of the Preferred Securities then outstanding will have the right to declare the
Debentures immediately due and payable. Except as provided in this Section 3.08(e), the Holders of
Preferred Securities will not be able to exercise directly any other remedy available to the
holders of the Debentures.

     (f) The Property Trustee shall not resign as a Trustee unless either:

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

          (ii) a successor Property Trustee has been appointed and has accepted that appointment in
accordance with Section 5.07 (a “Successor Property Trustee”).

     (g) The Property Trustee shall have the legal power to exercise all of the rights, powers and
privileges of a holder of Debentures under the Indenture and, if an Event of Default actually known
to a Responsible Officer occurs and is continuing, the Property Trustee shall, for the benefit of
Holders, enforce its rights, including without limitation, its rights under the Indenture as holder
of the Debentures, subject to the rights of the Holders pursuant to the terms of such Securities.

     (h) The Property Trustee shall be authorized to undertake any actions set forth in Section
317(a) of the Trust Indenture Act.

     (i) For such time as the Property Trustee is the Paying Agent, the Property Trustee may
authorize one or more Persons to act as additional Paying Agents and to pay Distributions,
redemption payments or liquidation payments on behalf of the Trust with respect to all Securities
and any such Paying Agent shall comply with Section 317(b) of the Trust Indenture Act. Any such
additional Paying Agent may be removed by the Property Trustee at any time the Property Trustee
remains as Paying Agent and a successor Paying Agent or additional Paying Agents may be (but are
not required to be) appointed at any time by the Property Trustee while the Property Trustee is so
acting as Paying Agent.

     (j) Subject to this Section 3.08, the Property Trustee shall have none of the duties,
liabilities, powers or the authority of the Administrative Trustees set forth in Section 3.06.

     Notwithstanding anything expressed or implied to the contrary in this Declaration or any Annex
or Exhibit hereto, (i) the Property Trustee must exercise the powers set forth in this Section 3.08
in a manner that is consistent with the purposes and functions of the Trust set out in Section 3.03
and (ii) the Property Trustee shall not take any action that is inconsistent with the purposes and
functions of the Trust set out in Section 3.03.

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Section 3.09 Certain Duties and Responsibilities of the Property Trustee.

     (a) The Property Trustee, before the occurrence of any Event of Default and after the curing
of all Events of Default that may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Declaration and in the Securities and no implied covenants shall be
read into this Declaration against the Property Trustee. In case an Event of Default has occurred
(that has not been cured or waived pursuant to Section 2.06) of which a Responsible Officer has
actual knowledge, the Property Trustee shall exercise such of the rights and powers vested in it by
this Declaration, and use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own affairs.

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

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

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

               (B) in the absence of bad faith on the part of the Property Trustee, the Property Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Property Trustee and conforming to the
requirements of this Declaration; provided, however, that in the case of any such certificates or
opinions that by any provision hereof are specifically required to be furnished to the Property
Trustee, the Property Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Declaration (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein);

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

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

          (iv) no provision of this Declaration shall require the Property Trustee to expend or risk its
own funds or otherwise incur personal financial liability in the performance of any of its duties
or in the exercise of any of its rights or powers, if it shall have reasonable

18

 

grounds for believing that the repayment of such funds or liability is not reasonably assured
to it under the terms of this Declaration or indemnity reasonably satisfactory to the Property
Trustee against such risk or liability is not reasonably assured to it;

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

          (vi) the Property Trustee shall have no duty or liability for or with respect to the value,
genuineness, existence or sufficiency of the Debentures or the payment of any taxes or assessments
levied thereon or in connection therewith;

          (vii) the Property Trustee shall not be liable for any interest on any money received by it
except as it may otherwise agree in writing with the Sponsor. Money held by the Property Trustee
need not be segregated from other funds held by it except in relation to the Property Trustee
Account maintained by the Property Trustee pursuant to Section 3.08(c)(i) and except to the extent
otherwise required by law;

          (viii) the Property Trustee shall not be responsible for monitoring the compliance by the
Administrative Trustees or the Sponsor with their respective duties under this Declaration, nor
shall the Property Trustee be liable for any act, omission, default or misconduct of the
Administrative Trustees or the Sponsor; and

          (ix) the Property Trustee shall not be deemed to have notice of any Event of Default unless a
Responsible Officer of the Property Trustee has actual knowledge thereof or unless written notice
of any event which is in fact such a default is received by the Property Trustee at the Corporate
Trust Office of the Property Trustee.

Section 3.10 Certain Rights of Property Trustee.

     (a) Subject to the provisions of Section 3.09:

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

          (ii) any direction or act of the Sponsor or the Administrative Trustees contemplated by this
Declaration may be sufficiently evidenced by an Officers’ Certificate;

          (iii) whenever in the administration of this Declaration, the Property Trustee shall deem it
desirable that a matter be proved or established before taking, suffering or omitting any action
hereunder, the Property Trustee (unless other evidence is herein specifically prescribed) may, in
the absence of bad faith on its part, request and conclusively rely upon an

19

 

Officers’ Certificate which, upon receipt of such request, shall be promptly delivered by the
Sponsor or the Administrative Trustees;

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

          (v) the Property Trustee may consult with counsel or other experts of its selection and the
advice or opinion of such counsel and experts with respect to legal matters or advice within the
scope of such experts’ area of expertise shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance
with such advice or opinion. Such counsel may be counsel to the Sponsor or any of its Affiliates,
and may include any of its employees. The Property Trustee shall have the right at any time to
seek instructions concerning the administration of this Declaration from any court of competent
jurisdiction;

          (vi) the Property Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Declaration at the request or direction of any Holder, unless such Holder
shall have provided to the Property Trustee security or indemnity, reasonably satisfactory to the
Property Trustee, against the costs, expenses (including reasonable attorneys’ fees and expenses
and the expenses of the Property Trustee’s agents, nominees or custodians) and liabilities that
might be incurred by it in complying with such request or direction, including such reasonable
advances as may be requested by the Property Trustee; provided that, nothing contained in this
Section 3.10(a)(vi) shall be taken to relieve the Property Trustee, upon the occurrence of an Event
of Default, of its obligation to exercise the rights and powers vested in it by this Declaration;

          (vii) the Property Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document, but the Property Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Property Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Trust, personally or by agent or attorney at the sole cost of the
Sponsor and shall incur no liability or additional liability of any kind by reason of such inquiry
or investigation;

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

          (ix) any authorized or required action taken by the Property Trustee or its agents hereunder
shall bind the Trust and the Holders, and the signature of the Property Trustee or its agents alone
shall be sufficient and effective to perform any such action and no third party shall be required
to inquire as to the authority of the Property Trustee to so act or as to its

20

 

compliance with any of the terms and provisions of this Declaration, both of which shall be
conclusively evidenced by the Property Trustee’s or its agent’s taking such action;

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

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

          (xii) the Property Trustee shall not be liable for any action taken, suffered, or omitted to
be taken by it in good faith, without negligence, and reasonably believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Declaration;

          (xiii) the rights, privileges, protections, immunities and benefits given to the Property
Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Property Trustee in each of its capacities hereunder, and to each agent,
custodian and other Person employed to act hereunder; and

          (xiv) If no Event of Default has occurred and is continuing and the Property Trustee is
required to decide between alternative causes of action, construe ambiguous provisions in this
Declaration or is unsure of the application of any provision of this Declaration, and the matter is
not one on which the Holders are, under this Declaration, entitled to vote, then the Property
Trustee may take the action as is directed by, and, if not so directed, may take action as it deems
advisable and in the best interests of, the Holders and will have no liability except for its own
bad faith, negligence or willful misconduct.

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

Section 3.11 Delaware Trustee.

     Notwithstanding any other provision of this Declaration other than Section 5.02, the Delaware
Trustee shall not be entitled to exercise any powers, nor shall the Delaware Trustee have any of
the duties and responsibilities of the Administrative Trustees or the Property Trustee described in
this Declaration, or any other duties or responsibilities except as expressly stated in this
Section 3.11. Except as set forth in Section 5.02, the Delaware Trustee shall be a Trustee for the
sole and limited purpose of fulfilling the requirements of Section 3807 of the Statutory Trust

21

 

Act; provided that, the Delaware Trustee shall have the power and authority and is hereby
authorized to execute and file with the Secretary of State of the State of Delaware any certificate
required to be filed under the Statutory Trust Act, except as provided in Section 8.01(b). In the
event the Delaware Trustee shall at any time be required to take any action or perform any duty
hereunder, the Delaware Trustee shall be entitled to the benefits of Section 3.09(b)(ii)-(viii) and
Section 3.10. No implied covenants or obligations shall be read into this Declaration against the
Delaware Trustee.

Section 3.12 Execution of Documents.

     Except as otherwise required by the Statutory Trust Act or this Declaration, each
Administrative Trustee, individually, is authorized to execute on behalf of the Trust any documents
that the Administrative Trustees have the power and authority to execute pursuant to Section 3.06;
provided that the Registration Statement, including any amendments thereto, shall be signed by all
of the Administrative Trustees.

Section 3.13 Not Responsible for Recitals or Issuance of Securities.

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

Section 3.14 Duration of Trust.

     The Trust, unless dissolved pursuant to the provisions of Article VIII hereof, shall continue
without dissolution until _______  __, 20___.

Section 3.15 Mergers.

     (a) The Trust may not merge with or into, consolidate, amalgamate or be replaced by, or
convey, transfer or lease its properties and assets substantially as an entirety to any Person,
except as described in Section 3.15(b) and (c) of this Declaration or Sections 3 and 4 of Annex I.

     (b) The Trust may, at the request of the Sponsor, with the consent of the Administrative
Trustees or, if there are more than two, a majority of the Administrative Trustees and without the
consent of the Holders, the Delaware Trustee or the Property Trustee, merge with or into,
consolidate, amalgamate or be replaced by, or convey, transfer or lease its properties and assets
as an entirety or substantially as an entirety to, a trust organized as such under the laws of any
State; provided that:

          (i) such successor entity (the “Successor Entity”) either:

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

22

 

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

          (ii) the Sponsor expressly appoints a trustee of the Successor Entity that possesses the same
powers and duties as the Property Trustee as the holder of the Debentures;

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

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

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

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

          (vii) prior to such merger, consolidation, amalgamation, replacement, conveyance, transfer or
lease, the Sponsor has received an opinion of an independent counsel to the Trust (who shall not be
an employee of the Sponsor or the Trust) experienced in such matters to the effect that:

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

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

               (C) the Trust will continue to be, or the Successor Entity will be, classified as a grantor
trust for United States federal income tax purposes;

          (viii) the Sponsor or any permitted successor or assignee owns all of the common securities of
such Successor Entity and guarantees the obligations of such Successor Entity under the Successor
Securities at least to the extent provided by the Preferred Securities Guarantee; and

23

 

          (ix) there shall have been furnished to the Property Trustee an Officer’s Certificate and an
Opinion of Counsel, each to the effect that all conditions precedent in this Declaration to such
transaction have been satisfied.

     (c) Notwithstanding Section 3.15(b), the Trust shall not, except with the consent of Holders
of 100% in liquidation amount of the Securities, consolidate, amalgamate, merge with or into, or be
replaced by, or convey, transfer or lease its properties and assets as an entirety or substantially
as an entirety to, any other Person or permit any other Person to consolidate, amalgamate, merge
with or into, or replace it if such consolidation, amalgamation, merger, replacement, conveyance,
transfer or lease would cause the Trust or the Successor Entity not to be classified as a grantor
trust for United States federal income tax purposes.

Section 3.16 Property Trustee May File Proofs of Claim

     In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other similar judicial proceeding relative
to the Trust or any other obligor upon the Securities or the property of the Trust or of such other
obligor or their creditors, the Property Trustee (irrespective of whether any Distributions on the
Securities shall then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Property Trustee shall have made any demand on the Trust for the
payment of any past due Distributions) shall be entitled and empowered, to the fullest extent
permitted by law, by intervention in such proceeding or otherwise:

     (a) to file and prove a claim for the whole amount of any Distributions owing and unpaid in
respect of the Securities (or, if the Securities are original issue discount Securities, such
portion of the liquidation amount as may be specified in the terms of such Securities) and to file
such other papers or documents as may be necessary or advisable in order to have the claims of the
Property Trustee (including any claim for the reasonable compensation, expenses, disbursements and
advances of the Property Trustee, its agents and counsel) and of the Holders allowed in such
judicial proceeding; and

     (b) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Property Trustee and, in the event the Property Trustee shall
consent to the making of such payments directly to the Holders, to pay to the Property Trustee any
amount due it for the reasonable compensation, expenses, disbursements and advances of the Property
Trustee, its agents and counsel, and any other amounts due the Property Trustee.

     Nothing herein contained shall be deemed to authorize the Property Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement
adjustment or compensation affecting the Securities or the rights of any Holder thereof or to
authorize the Property Trustee to vote in respect of the claim of any Holder in any such
proceeding.

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ARTICLE
IV.

SPONSOR

Section 4.01 Sponsor’s Purchase of Common Securities.

     At the Closing Time, the Sponsor will purchase all of the Common Securities then issued by the
Trust, in an amount equal to at least 3% of the total capital of the Trust, at the same time as the
Preferred Securities are issued and sold.

Section 4.02 Responsibilities of the Sponsor.

     In connection with the issue and sale of the Preferred Securities, the Sponsor shall have the
exclusive right and responsibility to engage in the following activities:

     (a) to prepare the Prospectus in preliminary and final form, and to prepare and file the
Registration Statement and any other necessary documents with the Commission, including any
amendments thereto and to pay any registration fees in connection therewith;

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

     (c) if deemed necessary or advisable by the Sponsor, to prepare for filing by the Trust an
application to permit the Preferred Securities to trade or be quoted or listed in or on the
National Market System or any other securities exchange or quotation system;

     (d) to prepare for filing by the Trust with the Commission a registration statement on Form
8-A, including any amendments thereto, relating to the registration of the Preferred Securities
under Section 12(b) or (g) of the Exchange Act; and

     (e) to negotiate the terms of the Underwriting Agreement providing for the sale of the
Preferred Securities.

Section 4.03 Right to Proceed.

     The Sponsor acknowledges the rights of the Holders of Preferred Securities under Section
3.08(e) of the Declaration and Section 5(b) of Annex I, in the event that a failure of the Trust to
pay Distributions on the Preferred Securities is attributable to the failure of the Debenture
Issuer to pay interest or principal on the Debentures, to institute a proceeding directly against
the Debenture Issuer for enforcement of its payment obligations on the Debentures and the Sponsor
irrevocably waives any right or remedy to require that any such Holder take any action against the
Trust or any other Person before proceeding against the Sponsor.

25

 

Section 4.04 Right to Dissolve Trust

     The Sponsor will have the right to any time to dissolve the Trust and after satisfaction of
liabilities to creditors of the Trust as required by applicable law, to cause the Debentures to be
distributed to the Holders in liquidation of the Trust. Such right is subject to the Sponsor’s
having received (i) an Opinion of Counsel to the effect that such distribution will not cause the
Holder of Preferred Securities to recognize gain or loss for United States federal income tax
purposes and (ii) all required regulatory approvals.

ARTICLE
V.

TRUSTEES

Section 5.01 Number of Trustees: Appointment of Co-Trustee.

     The number of Trustees initially shall be five (5), and:

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

     (b) after the issuance of any Securities, the number of Trustees may be increased or decreased
by vote of the Holders of a Majority in liquidation amount of the Common Securities voting as a
class at a meeting of the Holders of the Common Securities; provided, however, that, the number of
Trustees shall in no event be less than two (2); provided further that (1) one Trustee shall
satisfy the requirements of the Delaware Trustee pursuant to Section 5.02; (2) there shall be at
least one Trustee who is an officer of the Sponsor (an “Administrative Trustee”); and (3) one
Trustee shall be the Property Trustee for so long as this Declaration is required to qualify as an
indenture under the Trust Indenture Act, and such Trustee may also serve as Delaware Trustee if it
meets the applicable requirements. Notwithstanding the above, unless an Event of Default shall
have occurred and be continuing, at any time or times, for the purpose of meeting the legal
requirements of the Trust Indenture Act or of any jurisdiction in which any part of the Trust’s
property may at the time be located, the Holders of a Majority in liquidation amount of the Common
Securities acting as a class at a meeting of the Holders of the Common Securities, and the
Administrative Trustees shall have power to appoint one or more Persons either to act as a
co-trustee, jointly with the Property Trustee, of all or any part of the Trust’s property, or to
act as separate trustee of any such property, in either case with such powers as may be provided in
the instrument of appointment, and to vest in such Person or Persons in such capacity any property,
title, right or power deemed necessary or desirable, subject to the provisions of this Declaration.
In case an Event of Default has occurred and is continuing, the Property Trustee alone shall have
power to make any such appointment of a co-trustee.

Section 5.02 Delaware Trustee.

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

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

     (b) if not a natural person, an entity which has its principal place of business in the State
of Delaware, and otherwise meets the requirements of Section 3807(a) of the Statutory

26

 

Trust Act and any other applicable law, provided that, if the Property Trustee has its
principal place of business in the State of Delaware and otherwise meets the requirements of
applicable law, then the Property Trustee shall also be the Delaware Trustee, the Person
theretofore serving as Delaware Trustee (if other than the Property Trustee) automatically shall
cease to be a Trustee, the Property Trustee promptly shall provide to the Person theretofore
serving as Delaware Trustee written notice of the same (in relying on which the Person theretofore
serving as Delaware Trustee shall be fully justified and protected), the number of Trustees
automatically shall be reduced by one (1), the Property Trustee promptly shall cause the
certificate of trust of the Trust to be amended as necessary, and Section 3.11 shall have no
application.

Section 5.03 Property Trustee; Eligibility.

     (a) There shall at all times be one Trustee (the “Property Trustee”) which shall act as
Property Trustee which shall:

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

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

     (b) If at any time the Property Trustee shall cease to be eligible to so act under Section
5.03(a), the Property Trustee shall immediately resign in the manner and with the effect set forth
in Section 5.07(c).

     (c) If the Property Trustee has or shall acquire any “conflicting interest” within the meaning
of Section 310(b) of the Trust Indenture Act, the Property Trustee and the Holder of the Common
Securities (as if it were the obligor referred to in Section 310(b) of the Trust Indenture Act)
shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

     (d) The Preferred Securities Guarantee and the Indenture shall be deemed to be specifically
described in this Declaration for purposes of clause

          (i) of the first proviso contained in Section 310(b) of the Trust Indenture Act.

     (e) The initial Property Trustee shall be:

Wilmington Trust Company

Rodney Square North

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1100 North Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration

Section 5.04 Certain Qualifications of Administrative Trustees and Delaware Trustee Generally.

     Each Administrative Trustee and the Delaware Trustee (unless the Property Trustee also
acts as Delaware Trustee) shall be either a natural person who is at least 21 years of age or a
legal entity that shall act through one or more Authorized Officers.

Section 5.05 Administrative Trustees.

     The initial Administrative Trustees shall be:

                                                            

                                                            

     (a) Except as expressly set forth in this Declaration and except if a meeting of the
Administrative Trustees is called with respect to any matter over which the Administrative Trustees
have power to act, any power of the Administrative Trustees may be exercised by, or with the
consent of, any one such Administrative Trustee.

     (b) An Administrative Trustee shall have the authority set forth in Section 3.12 to execute on
behalf of the Trust any documents which the Administrative Trustees have the power and authority to
cause the Trust to execute pursuant to Section 3.06; provided that the Registration Statement,
including any amendment thereto, shall be signed by all of the Administrative Trustees.

     (c) An Administrative Trustee may, by power of attorney consistent with applicable law,
delegate to any other natural person over the age of 21 his or her power for the purposes of
signing any documents which the Administrative Trustees have power and authority to cause the Trust
to execute pursuant to Section 3.06.

Section 5.06 Delaware Trustee.

	 	 	 	 	 
	 	 	The initial Delaware Trustee shall be:
	 
	 	 	 	 
	 

	 	 	 	Wilmington Trust Company
	 

	 	 	 	Rodney Square North
	 

	 	 	 	1100 North Market Street
	 

	 	 	 	Wilmington, Delaware 19890
	 

	 	 	 	Attention: Corporate Trust Administration

Section 5.07 Appointment, Removal and Resignation of Trustees.

     (a) Subject to Section 5.07(b) of this Declaration and to Section 6(b) of Annex I hereto,
Trustees may be appointed or removed without cause at any time:

28

 

               (i) until the issuance of any Securities, by written instrument executed by the Sponsor;

               (ii) unless an Event of Default shall have occurred and be continuing after the issuance of
any Securities, by vote of the Holders of a Majority in liquidation amount of the Common Securities
voting as a class at a meeting of the Holders of the Common Securities; and

               (iii) if an Event of Default shall have occurred and be continuing after the issuance of the
Securities, with respect to the Property Trustee or the Delaware Trustee, by vote of Holders of a
Majority in liquidation amount of the Preferred Securities voting as a class at a meeting of
Holders of the Preferred Securities.

	 	(b)	 	(i) The Trustee that acts as Property Trustee shall not be removed in
accordance with Section 5.07(a) until a Successor Property Trustee has been appointed
and has accepted such appointment by written instrument executed by such Successor
Property Trustee and delivered to the Administrative Trustees and the Sponsor; and

               (ii) the Trustee that acts as Delaware Trustee shall not be removed in accordance with this
Section 5.07(a) until a successor Trustee possessing the qualifications to act as Delaware Trustee
under Sections 5.02 and 5.04 (a “Successor Delaware Trustee”) has been appointed and has accepted
such appointment by written instrument executed by such Successor Delaware Trustee and delivered to
the Administrative Trustees and the Sponsor.

     (c) A Trustee appointed to office shall hold office until its or his successor shall have been
appointed or until his death or its dissolution, or until his or its removal or resignation. Any
Trustee may resign from office (without need for prior or subsequent accounting) by an instrument
in writing signed by the Trustee and delivered to the Sponsor and the Trust, which resignation
shall take effect upon such delivery or upon such later date as is specified therein; provided,
however, that:

               (i) No such resignation of the Trustee that acts as the Property Trustee shall be effective:

                    (A) until a Successor Property Trustee has been appointed and has accepted such appointment by
instrument executed by such Successor Property Trustee and delivered to the Trust, the Sponsor and
the resigning Property Trustee; or

                    (B) until the assets of the Trust have been completely liquidated and the proceeds thereof
distributed to the Holders; and

               (ii) no such resignation of the Trustee that acts as the Delaware Trustee shall be effective
until a Successor Delaware Trustee has been appointed and has accepted such appointment by
instrument executed by such Successor Delaware Trustee and delivered to the Trust, the Sponsor and
the resigning Delaware Trustee.

     (d) The Holders of the Common Securities or, if an Event of Default shall have occurred and be
continuing after the issuance of the Securities, the Holders of the Preferred

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Securities shall use their best efforts to promptly appoint a Successor Delaware Trustee or
Successor Property Trustee, as the case may be, if the Property Trustee or the Delaware Trustee
delivers an instrument of resignation in accordance with this Section 5.07.

     (e) If no Successor Property Trustee or Successor Delaware Trustee shall have been appointed
and accepted appointment as provided in this Section 5.07 within 60 days after delivery of an
instrument of resignation or removal, the Property Trustee or Delaware Trustee resigning or being
removed, as applicable, may, at the expense of the Sponsor, petition any court of competent
jurisdiction for appointment of a Successor Property Trustee or Successor Delaware Trustee, as
applicable. Such court may thereupon, after prescribing such notice, if any, as it may deem
proper, and appoint a Successor Property Trustee or Successor Delaware Trustee, as the case may be.

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

     (g) At the time of resignation or removal of the Property Trustee or the Delaware Trustee, the
Debenture Issuer shall pay to such Trustee any amounts that may be owed to such Trustee pursuant to
Section 10.04.

     (h) Any successor to an Administrative Trustee shall be an officer, director, employee or
Affiliate of the Sponsor.

Section 5.08 Vacancies among Trustees.

     If a Trustee ceases to hold office for any reason and the number of Trustees is not reduced
pursuant to Section 5.01 or Section 5.02, or if the number of Trustees is increased pursuant to
Section 5.01, a vacancy shall occur. A resolution certifying the existence of such vacancy by the
Administrative Trustees or, if there are more than two, a majority of the Administrative Trustees
shall be conclusive evidence of the existence of such vacancy. The vacancy shall be filled with a
Trustee appointed in accordance with Section 5.07.

Section 5.09 Effect of Vacancies.

     The death, resignation, retirement, removal, bankruptcy, dissolution, liquidation,
incompetence or incapacity to perform the duties of a Trustee shall not operate to dissolve,
terminate or annul the Trust. Whenever a vacancy in the number of Administrative Trustees shall
occur, until such vacancy is filled by the appointment of an Administrative Trustee in accordance
with Section 5.07, the Administrative Trustees in office, regardless of their number, shall have
all the powers granted to the Administrative Trustees and shall discharge all the duties imposed
upon the Administrative Trustees by this Declaration.

Section 5.10 Meetings.

     If there is more than one Administrative Trustee, meetings of the Administrative Trustees
shall be held from time to time upon the call of any Administrative Trustee. Regular meetings of
the Administrative Trustees may be held at a time and place fixed by resolution of the
Administrative Trustees, provided, however, that meetings of the Administrative Trustees shall

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not be held in any jurisdiction which would subject the Trust to taxation under the laws of
such jurisdiction. Notice of any in-person meetings of the Administrative Trustees shall be hand
delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight
courier) not less than 24 hours before such meeting. Notice of any telephonic meetings of the
Administrative Trustees or any committee thereof shall be hand delivered or otherwise delivered in
writing (including by facsimile, with a hard copy by overnight courier) not less than 24 hours
before a meeting. Notices shall contain a brief statement of the time, place and anticipated
purposes of the meeting. The presence (whether in person or by telephone) of an Administrative
Trustee at a meeting shall constitute a waiver of notice of such meeting except where an
Administrative Trustee attends a meeting for the express purpose of objecting to the transaction of
any activity on the ground that the meeting has not been lawfully called or convened. Unless
provided otherwise in this Declaration, any action of the Administrative Trustees may be taken at a
meeting by vote of a majority of the Administrative Trustees present (whether in person or by
telephone) and eligible to vote with respect to such matter, provided that a Quorum is present, or
without a meeting and without notice by the unanimous written consent of the Administrative
Trustees. In the event there is only one Administrative Trustee, any and all action of such
Administrative Trustee shall be evidenced by a written consent of such Administrative Trustee.

Section 5.11 Delegation of Power.

     (a) Any Administrative Trustee may, by power of attorney consistent with applicable law,
delegate to any other natural person over the age of 21 his or her power for the purpose of
executing any documents contemplated in Section 3.06, including any registration statement or
amendment thereto filed with the Commission, or making any other governmental filing; and

     (b) the Administrative Trustees shall have power to delegate from time to time to such of
their number or to officers of the Trust the doing of such things and the execution of such
instruments either in the name of the Trust or the names of the Administrative Trustees or
otherwise as the Administrative Trustees may deem expedient, to the extent such delegation is not
prohibited by applicable law or contrary to the provisions of the Trust, as set forth herein.

Section 5.12 Merger, Conversion, Consolidation or Succession to Business.

     Any Person into which the Property Trustee or the Delaware Trustee that is not a natural
person, as the case may be, may be merged or converted or with which it may be consolidated, or any
Person resulting from any merger, conversion or consolidation to which the Property Trustee or the
Delaware Trustee, as the case may be, shall be a party, or any Person succeeding to all or
substantially all the corporate trust business of the Property Trustee or the Delaware Trustee, as
the case may be, shall be the successor of the Property Trustee or the Delaware Trustee, as the
case may be, hereunder, provided such Person shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the part of any of the
parties hereto.

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ARTICLE
VI.

DISTRIBUTIONS

Section 6.01 Distributions.

     Holders shall receive Distributions in accordance with the applicable terms of the relevant
Holder’s Securities. Distributions shall be made on the Preferred Securities and the Common
Securities in accordance with the preferences set forth in their respective terms. If and to the
extent that the Debenture Issuer makes a payment of interest (including Compounded Interest and
Additional Sums, each as defined in the Indenture) or principal on the Debentures held by the
Property Trustee or any other payments with respect to the Debentures held by the Property Trustee
(the amount of any such payment being a “Payment Amount”), the Property Trustee shall and is
directed, to the extent funds are available for that purpose, to make a distribution (a
“Distribution”) of the Payment Amount to Holders.

ARTICLE
VII.

ISSUANCE OF SECURITIES

Section 7.01 General Provisions Regarding Securities.

     (a) The Administrative Trustees shall on behalf of the Trust issue one class of capital
securities representing undivided beneficial interests in the assets of the Trust having such terms
as are set forth in Annex I (the “Preferred Securities”) and one class of common securities
representing undivided beneficial interests in the assets of the Trust having such terms as are set
forth in Annex I (the “Common Securities”). The Trust shall issue no securities or other interests
in the assets of the Trust other than the Trust Securities.

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

     (c) Upon issuance of the Securities as provided in this Declaration, the Securities so issued
shall be deemed to be validly issued, fully paid and non-assessable undivided beneficial interests
in the assets of the Trust.

     (d) Every Person, by virtue of having become a Holder or a Preferred Security Beneficial Owner
in accordance with the terms of this Declaration, shall be deemed to have expressly assented and
agreed to the terms of, and shall be bound by, this Declaration and the terms of the Securities,
the Preferred Securities Guarantee, the Indenture and the Debentures.

Section 7.02 Execution and Authentication.

     (a) The Securities shall be signed on behalf of the Trust by an Administrative Trustee by
manual or facsimile signature. In case any Administrative Trustee of the Trust who shall have
signed any of the Securities shall cease to be such Administrative Trustee before the Securities so
signed shall be delivered by the Trust, such Securities nevertheless may be delivered as though the
person who signed such Securities had not ceased to be such Administrative Trustee; and any
Securities may be signed on behalf of the Trust by such persons who, at the actual date of
execution of such Security, shall be the Administrative Trustees of the

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Trust, although at the date of the execution and delivery of the Declaration any such person
was not such an Administrative Trustee.

     (b) One Administrative Trustee shall sign the Preferred Securities for the Trust by manual or
facsimile signature. Unless otherwise determined by the Administrative Trustees, such signature
shall, in the case of Common Securities, be a manual signature.

     A Preferred Security shall not be valid until authenticated by the manual signature of an
authorized signatory of the Property Trustee. The signature shall be conclusive evidence that the
Preferred Security has been authenticated under this Declaration.

     Upon a written order of the Trust signed by one Administrative Trustee, the Property Trustee
shall authenticate the Preferred Securities for original issue. The aggregate number of Preferred
Securities outstanding at any time shall not exceed the number set forth in the terms in Annex I
hereto except as provided in Section 7.06.

     The Property Trustee may appoint an authenticating agent acceptable to the Trust to
authenticate Preferred Securities. An authenticating agent may authenticate Preferred Securities
whenever the Property Trustee may do so. Each reference in this Declaration to authentication by
the Property Trustee includes authentication by such agent. An authenticating agent has the same
rights as the Property Trustee to deal with the Sponsor or an Affiliate.

Section 7.03 Form and Dating.

     The Preferred Securities and the Property Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A-1 and the Common Securities shall be substantially in the
form of Exhibit A-2, each of which is hereby incorporated in and expressly made a part of this
Declaration. Certificates representing the Securities may be printed, lithographed or engraved or
may be produced in any other manner as is reasonably acceptable to the Administrative Trustees, as
evidenced by their execution thereof. The Securities may have letters, CUSIP or other numbers,
notations or other marks of identification or designation and such legends or endorsements required
by law, stock exchange rule, agreements to which the Trust is subject, if any, or usage (provided
that any such notation, legend or endorsement is in a form acceptable to the Trust). The Trust at
the direction of the Sponsor shall furnish any such legend to the Property Trustee in writing.
Each Preferred Security shall be dated the date of its authentication. The terms and provisions of
the Securities set forth in Annex I and the forms of Securities set forth in Exhibits A-1 and A-2
are part of the terms of this Declaration and to the extent applicable, the Property Trustee and
the Sponsor, by their execution and delivery of this Declaration, expressly agree to such terms and
provisions and to be bound thereby.

     (a) Global Securities. The Preferred Securities shall be issued in the form of one or more
permanent global Securities in definitive, fully registered form without distribution coupons as
set forth in Exhibit A-1 hereto (a “Global Preferred Security”), which shall be deposited on behalf
of the purchasers of the Preferred Securities represented thereby with the Property Trustee, as
custodian for the Clearing Agency, and registered in the name of the Clearing Agency or a nominee
of the Clearing Agency, duly executed by the Trust and authenticated by the Property Trustee as
hereinafter provided. The number of Preferred

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Securities represented by a Global Preferred Security may from time to time be increased or
decreased by adjustments made on the records of the Property Trustee and the Clearing Agency or its
nominee as hereinafter provided.

     (b) Book-Entry Provisions. This Section 7.03(b) shall apply only to the Global Preferred
Securities and such other Preferred Securities in global form as may be authorized by the Trust to
be deposited with or on behalf of the Clearing Agency.

     The Trust shall execute and the Property Trustee shall, in accordance with this Section 7.03,
authenticate and make available for delivery initially one or more Global Preferred Securities that
(i) shall be registered in the name of Cede & Co. or other nominee of such Clearing Agency and (ii)
shall be delivered by the Property Trustee to such Clearing Agency or pursuant to such Clearing
Agency’s written instructions or held by the Property Trustee as custodian for the Clearing Agency.

     Members of, or participants in, the Clearing Agency (“Participants”) shall have no rights
under this Declaration with respect to any Global Preferred Security held on their behalf by the
Clearing Agency or by the Property Trustee as the custodian of the Clearing Agency or under such
Global Preferred Security, and the Clearing Agency may be treated by the Trust, the Property
Trustee and any agent of the Trust or the Property Trustee as the absolute owner of such Global
Preferred Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein
shall prevent the Trust, the Property Trustee or any agent of the Trust or the Property Trustee
from giving effect to any written certification, proxy or other authorization furnished by the
Clearing Agency or impair, as between the Clearing Agency and its Participants, the operation of
customary practices of such Clearing Agency governing the exercise of the rights of a holder of a
beneficial interest in any Global Preferred Security.

     (c) Definitive Preferred Securities. Except as provided in Section 7.09 or 9.02(d), owners of
beneficial interests in a Global Preferred Security will not be entitled to receive physical
delivery of certificated Preferred Securities (“Definitive Preferred Securities”).

     (d) Authorized Denominations. The Preferred Securities are issuable only in denominations of
$                     and any integral multiple thereof.

Section 7.04 Registrar and Paying Agent.

     The Trust shall maintain in Wilmington, Delaware, (i) an office or agency where Preferred
Securities may be presented for registration of transfer (“Registrar”) and (ii) an office or agency
where Preferred Securities may be presented for payment (“Paying Agent”). The Registrar shall keep
a register of the Preferred Securities and of their transfer. The Administrative Trustees on behalf
of the Trust may appoint the Registrar and the Paying Agent and may appoint one or more
co-registrars and one or more additional paying agents in such other locations as it shall
determine. The term “Registrar” includes any additional registrar and “Paying Agent” includes any
additional paying agent. The Administrative Trustees on behalf of the Trust may change any Paying
Agent, Registrar or co-registrar without prior notice to any Holder. The Paying Agent or Registrar
shall be permitted to resign as Paying Agent or Registrar, as the case may be, upon 30 days’
written notice to the Administrative Trustees. The

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Administrative Trustees on behalf of the Trust shall notify the Property Trustee of the name
and address of any Agent not a party to this Declaration. If the Administrative Trustees on behalf
of the Trust fails to appoint or maintain another entity as Registrar or Paying Agent, the Property
Trustee shall act as such. The Trust or any of its Affiliates may act as Paying Agent or
Registrar. The Property Trustee shall act as Paying Agent and Registrar for the Common Securities.

     The Trust initially appoints the Property Trustee as Registrar and Paying Agent for the
Preferred Securities.

Section 7.05 Paying Agent to Hold Money in Trust.

     The Trust shall require each Paying Agent other than the Property Trustee to agree in writing
that the Paying Agent will hold in trust for the benefit of Holders or the Property Trustee all
money held by the Paying Agent for the payment of liquidation amounts or Distributions, and will
notify the Property Trustee if there are insufficient funds for such purpose. While any such
insufficiency continues, the Property Trustee may require a Paying Agent to pay all money held by
it to the Property Trustee. The Trust at any time may require a Paying Agent to pay all money held
by it to the Property Trustee and to account for any money disbursed by it. Upon payment over to
the Property Trustee, the Paying Agent (if other than the Trust or an Affiliate of the Trust) shall
have no further liability for the monies previously held by it. If the Trust or the Sponsor or an
Affiliate of the Trust or the Sponsor acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as Paying Agent.

Section 7.06 Replacement Securities.

     If a Holder claims that a Security owned by it has been lost, destroyed or wrongfully taken or
if such Security is mutilated and is surrendered to the Trust or in the case of the Preferred
Securities to the Property Trustee, the Trust shall issue and the Property Trustee shall, upon
written order of the Trust, authenticate a replacement Security if the Property Trustee’s and the
Trust’s requirements, as the case may be, are met. An indemnity bond must be provided by the
Holder which, in the judgment of the Property Trustee, is sufficient to protect the Trustees, the
Sponsor, the Trust or any authenticating agent from any loss which any of them may suffer if a
Security is replaced. The Trust may charge such Holder for its expenses in replacing a Security.

Section 7.07 Outstanding Preferred Securities.

     The Preferred Securities outstanding at any time are all the Preferred Securities
authenticated by the Property Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section as not outstanding.

     If a Preferred Security is replaced, paid or purchased pursuant to Section 7.06 hereof, it
ceases to be outstanding unless the Property Trustee receives proof satisfactory to it that the
replaced, paid or purchased Preferred Security is held by a protected purchaser.

     If Preferred Securities are considered paid in full in accordance with the terms of this
Declaration, they cease to be outstanding and Distributions on them shall cease to accumulate.

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     Except as provided in Section 7.08, a Preferred Security does not cease to be outstanding
because one of the Trust, the Sponsor or an Affiliate of the Sponsor holds the Security.

Section 7.08 Preferred Securities in Treasury.

     In determining whether the Holders of the required amount of Securities have concurred in any
direction, waiver or consent, Preferred Securities owned by the Trust, the Sponsor or an Affiliate
of the Sponsor, as the case may be, shall be disregarded and deemed not to be outstanding, except
that for the purposes of determining whether the Property Trustee shall be fully protected in
relying on any such direction, waiver or consent, only Securities which a Responsible Officer of
the Property Trustee actually knows are so owned shall be so disregarded.

Section 7.09 Definitive Securities.

     (a) A Global Preferred Security deposited with the Clearing Agency or with the Property
Trustee as custodian for the Clearing Agency pursuant to Section 7.03 shall be transferred to the
beneficial owners thereof in the form of Definitive Preferred Securities only if such transfer
complies with Section 9.02 and (i) the Clearing Agency notifies the Sponsor that it is unwilling or
unable to continue as Clearing Agency for such Global Preferred Security or if at any time such
Clearing Agency ceases to be a “clearing agency” registered under the Exchange Act and a clearing
agency is not appointed by the Sponsor within 90 days of such notice, (ii) a Default or an Event of
Default has occurred and is continuing or (iii) the Trust at its sole discretion elects to cause
the issuance of Definitive Preferred Securities.

     (b) Any Global Preferred Security that is transferable to the beneficial owners thereof in the
form of Definitive Preferred Securities pursuant to this Section 7.09 shall be surrendered by the
Clearing Agency to the Property Trustee located in Wilmington, Delaware, to be so transferred, in
whole or from time to time in part, without charge, and the Property Trustee shall authenticate and
make available for delivery, upon such transfer of each portion of such Global Preferred Security,
an equal aggregate liquidation amount of Preferred Securities of authorized denominations in the
form of certificated Preferred Securities. Any portion of a Global Preferred Security so
transferred pursuant to this Section 7.09(b) shall be registered in such names as the Clearing
Agency shall direct.

     (c) Subject to the provisions of Section 7.09(b), the Holder of a Global Preferred Security
may grant proxies and otherwise authorize any Person, including Participants and Persons that may
hold interests through Participants, to take any action which such Holder is entitled to take under
this Declaration or the Securities.

     (d) In the event of the occurrence of any of the events specified in Section 7.09(a), the
Trust will promptly make available to the Property Trustee a reasonable supply of certificated
Preferred Securities in fully registered form without distribution coupons.

     (e) Payments on the Preferred Securities that are not held by the Depositary will be made by
check mailed to the address of the holder certified thereto at the address which appears on the
register.

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Section 7.10 Cancellation.

     The Registrar at any time may deliver Preferred Securities to the Property Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Property Trustee any Preferred
Securities surrendered to them for registration of transfer, redemption, or payment. The Property
Trustee shall promptly cancel all Preferred Securities, surrendered for registration of transfer,
redemption, payment, replacement or cancellation and shall dispose of canceled Preferred Securities
in accordance with its customary procedures unless the Trust otherwise directs. The Trust may not
issue new Preferred Securities to replace Preferred Securities that it has paid or that have been
delivered to the Property Trustee for cancellation.

Section 7.11 CUSIP Numbers.

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

ARTICLE
VIII.

DISSOLUTION AND TERMINATION OF TRUST

Section 8.01 Dissolution and Termination of Trust.

     (a) The Trust shall automatically dissolve and be wound up in accordance with applicable law:

          (i) upon the occurrence of an Event of Default with respect to the Sponsor as described in
Section 5.01(d) or (e) of the Indenture;

          (ii) upon the filing of a certificate of dissolution or liquidation or its equivalent with
respect to the Sponsor; or the revocation of the Sponsor’s charter and the expiration of 90 days
after the date of revocation without a reinstatement thereof;

          (iii) based upon an election by the Sponsor to dissolve the Trust, following the distribution
of the Debentures from the Trust to the Holders in exchange for all of the Securities, provided,
that the Property Trustee has received written notice from the Sponsor directing the Property
Trustee to dissolve the Trust (which election is optional, and except as otherwise expressly
provided below, within the discretion of the Sponsor), and provided, further, that such direction
and such distribution is conditioned on (a) the receipt by the Sponsor of any and all required
regulatory approvals, and (b) the Sponsor’s receipt and delivery to the Administrative Trustees of
an opinion of independent tax counsel experienced in such matters (who shall not be an employee of
the Sponsor or the Trust) to the effect that the Holders of the Preferred Securities will not
recognize any gain or loss for United States federal income tax purposes as a result of the
dissolution of the Trust and the distribution of Debentures;

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          (iv) upon the entry of a decree of judicial dissolution of the Sponsor or the Trust by a court
of competent jurisdiction;

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

          (vi) upon redemption or repayment of the Debentures or at such time as no Debentures are
outstanding; or;

          (vii) the expiration of the term of the Trust provided in Section 3.14.

     (b) As soon as is practicable after the occurrence of an event referred to in Section 8.1(a),
but within 30 days of such event, notice of such dissolution shall be given to the Holders and upon
completion of the winding up of Trust, the Administrative Trustees shall file a certificate of
cancellation with the Secretary of State of the State of Delaware and the Trust shall terminate.

     (c) The provisions of Section 3.09 and Article X shall survive the termination of the Trust.

ARTICLE
IX.

TRANSFER OF INTERESTS

Section 9.01 Transfer of Securities.

     (a) Securities may only be transferred, in whole or in part, in accordance with the terms and
conditions set forth in this Declaration and in the terms of the Securities. To the fullest extent
permitted by applicable law, any transfer or purported transfer of any Security not made in
accordance with this Declaration shall be null and void.

     (b) The Administrative Trustees shall provide for the registration of Preferred Securities and
of the transfer of Preferred Securities, which will be effected without charge but only upon
payment (with such indemnity as the Administrative Trustees may require) in respect of any tax or
other governmental charges that may be imposed in relation to it. Upon surrender for registration
of transfer of any Preferred Securities, the Administrative Trustees shall cause one or more new
Preferred Securities to be issued in the name of the designated transferee or transferees. Every
Preferred Security surrendered for registration of transfer shall be accompanied by a written
instrument of transfer in form satisfactory to the Administrative Trustees and the Registrar or
co-registrar, duly executed by the Holder or such Holder’s attorney duly authorized in writing.
Each Preferred Security surrendered for registration of transfer shall be canceled by the Property
Trustee. A transferee of a Preferred Security shall be entitled to the rights and subject to the
obligations of a Holder hereunder upon the receipt by such transferee of a Preferred Security. By
acceptance of a Preferred Security, each transferee shall be bound by this Declaration.

     (c) The Holder of the Common Securities may not transfer the Common Securities except (a) in
connection with transactions permitted under Section 10.01 of the Indenture, or (b)

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to the Sponsor or an Affiliate thereof in compliance with applicable law (including the
Securities Act and applicable state securities and blue sky laws); provided that, any such transfer
is subject to the condition precedent that the transferor obtain the written opinion of qualified
independent counsel experienced in such matters that such transfer would not cause more than an
insubstantial risk that:

          (i) the Trust would not be classified for United States federal income tax purposes as a
grantor trust and each Holder of Securities would not be treated as owning an undivided beneficial
interest in the Debentures; and

          (ii) the Trustee would be an Investment Company or the transferee would become an Investment
Company.

     To the fullest extent permitted by law, any attempted transfer of the Common Securities other
than as set forth in the immediately preceding sentence shall be void. For so long as the Trust
Securities remain outstanding, the Sponsor will covenant (i) to directly or indirectly maintain
100% direct or indirect ownership of the Common Securities of the Trust; provided, however, that
any permitted successor of the Sponsor under the Indenture may succeed to the Sponsor’s ownership
of such Common Securities, (ii) to use its reasonable efforts to cause the Trust (a) to remain a
statutory trust, except in connection with the distribution of Debentures to the Holders of Trust
Securities in liquidation of the Trust, the redemption of all of the Trust Securities, or certain
mergers, consolidations or amalgamations, each as permitted by this Declaration, and (b) to
otherwise continue to be classified as a grantor trust for United States federal income tax
purposes and (iii) to use its reasonable efforts to cause each holder of Trust Securities to be
treated as owning an undivided beneficial interest in the Debentures.

Section 9.02 Transfer Procedures and Restrictions.

     (a) Transfer and Exchange of Definitive Preferred Securities. When Definitive Preferred
Securities are presented to the Registrar or co-registrar (x) to register the transfer of such
Definitive Preferred Securities; or (y) to exchange such Definitive Preferred Securities which
became mutilated, destroyed, defaced, stolen or lost, for an equal number of Definitive Preferred
Securities, the Registrar or co-registrar shall register the transfer or make the exchange as
requested if its reasonable requirements for such transaction are met; provided, however, that the
Definitive Preferred Securities surrendered for registration of transfer or exchange shall be duly
endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the
Administrative Trustees and the Registrar or co-registrar, duly executed by the Holder thereof or
his attorney duly authorized in writing;

     (b) Transfer and Exchange of Global Preferred Securities. The transfer and exchange of Global
Preferred Securities or beneficial interests therein shall be effected through the Clearing Agency,
in accordance with this Declaration (including applicable restrictions on transfer set forth
herein, if any) and the procedures of the Clearing Agency therefor.

     (c) Restrictions on Transfer and Exchange of Global Preferred Securities. Notwithstanding any
other provisions of this Declaration (other than the provisions set forth in this Section 9.02 and
subsection (a) of Section 7.09), a Global Preferred Security may not be

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transferred as a whole except by the Clearing Agency to a nominee of the Clearing Agency or
another nominee of the Clearing Agency or by the Clearing Agency or any such nominee to a successor
Clearing Agency or a nominee of such successor Clearing Agency.

     (d) Authentication of Definitive Preferred Securities. If at any time:

          (i) the Clearing Agency notifies the Sponsor that it is unwilling or unable to continue as
Clearing Agency for such Global Preferred Security or if at any time such Clearing Agency ceases to
be a “clearing agency” registered under the Exchange Act and a clearing agency is not appointed by
the Sponsor within 90 days of such notice;

          (ii) there occurs a Default or an Event of Default which is continuing, or

          (iii) the Trust (by the Administrative Trustees), in its sole discretion, notifies the
Property Trustee in writing that it elects to cause the issuance of Definitive Preferred Securities
under this Declaration, then an Administrative Trustee on behalf of the Trust will execute, and the
Property Trustee, upon receipt of a written order of the Trust signed by one Administrative Trustee
requesting the authentication and delivery of Definitive Preferred Securities to the Persons
designated by the Trust, will authenticate and make available for delivery Definitive Preferred
Securities, equal in number to the number of Preferred Securities represented by the Global
Preferred Securities, in exchange for such Global Preferred Securities.

     (e) Cancellation or Adjustment of Global Preferred Security. At such time as all beneficial
interests in a Global Preferred Security have either been exchanged for Definitive Preferred
Securities to the extent permitted by this Declaration or redeemed, repurchased or canceled in
accordance with the terms of this Declaration, such Global Preferred Security shall be canceled by
the Property Trustee. At any time prior to such cancellation, if any beneficial interest in a
Global Preferred Security is exchanged for Definitive Preferred Securities, Preferred Securities
represented by such Global Preferred Security shall be reduced and an adjustment shall be made on
the books and records of the Clearing Agency and the Registrar, to reflect such reduction.

     (f) Obligations with Respect to Transfers of Preferred Securities.

          (i) To permit registrations of transfers, an Administrative Trustee on behalf of the Trust
shall execute and the Property Trustee shall authenticate Definitive Preferred Securities and
Global Preferred Securities at the Registrar’s or co-registrar’s request in accordance with the
terms of this Declaration.

          (ii) Registrations of transfers will be effected without charge, but only upon payment (with
such indemnity as the Trust or the Sponsor may require) in respect of any tax or other governmental
charge that may be imposed in relation to it.

          (iii) The Registrar or co-registrar shall not be required to register the transfer of (a)
Preferred Securities during a period beginning at the opening of business 15 days before the day of
mailing of a notice of redemption or any notice of selection of Preferred Securities for redemption
and ending at the close of business on the day of such mailing; or (b) any Preferred

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Security so selected for redemption in whole or in part, except the unredeemed portion of any
Preferred Security being redeemed in part.

          (iv) Prior to the due presentation for registration of transfer of any Preferred Security, the
Trust, the Property Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat
the Person in whose name a Preferred Security is registered as the absolute owner of such Preferred
Security for the purpose of receiving Distributions on such Preferred Security (subject to Section
2(c) of Annex I) and for all other purposes whatsoever, and none of the Trust, the Property
Trustee, the Paying Agent, the Registrar or any co-registrar shall be affected by notice to the
contrary.

          (v) All Preferred Securities issued upon any registration of transfer pursuant to the terms of
this Declaration shall evidence the same security and shall be entitled to the same benefits under
this Declaration as the Preferred Securities surrendered upon such registration of transfer.

     (g) No Obligation of the Property Trustee.

          (i) The Property Trustee shall have no responsibility or obligation to any beneficial owner of
a Global Preferred Security, a Clearing Agency Participant in the Clearing Agency or other Person
with respect to the accuracy of the records of the Clearing Agency or its nominee or of any
Clearing Agency Participant thereof, with respect to any ownership interest in the Preferred
Securities or with respect to the delivery to any Clearing Agency Participant, beneficial owner or
other Person (other than the Clearing Agency) of any notice (including any notice of redemption) or
the payment of any amount, under or with respect to such Preferred Securities. All notices and
communications to be given to the Holders and all payments to be made to Holders under the
Preferred Securities shall be given or made only to or upon the order of the registered Holders
(which shall be the Clearing Agency or its nominee in the case of a Global Preferred Security).
The rights of beneficial owners in any Global Preferred Security shall be exercised only through
the Clearing Agency subject to the applicable rules and procedures of the Clearing Agency. The
Property Trustee may conclusively rely and shall be fully protected in relying upon information
furnished by the Clearing Agency or any agent thereof with respect to its Clearing Agency
Participants and any beneficial owners.

          (ii) The Property Trustee and the Registrar shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed under this
Declaration or under applicable law with respect to any transfer of any interest in any Preferred
Security (including any transfers between or among Clearing Agency Participants or beneficial
owners in any Global Preferred Security) other than to require delivery of such certificates and
other documentation or evidence as are expressly required by, and to do so if and when expressly
required by, the terms of this Declaration, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.

Section 9.03 Deemed Security Holders.

     The Trustees may treat the Person in whose name any Security shall be registered on the books
and records of the Trust as the sole owner of such Security for purposes of receiving

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Distributions and for all other purposes whatsoever (subject to the definition of “Holder”
contained herein) and, accordingly, shall not be bound to recognize any equitable or other claim to
or interest in such Security on the part of any Person, whether or not the Trust shall have actual
or other notice thereof.

Section 9.04 Book Entry Interests.

     Global Preferred Securities shall initially be registered on the books and records of the
Trust in the name of Cede & Co., the nominee of the Clearing Agency, and no Preferred Security
Beneficial Owner will receive a definitive Preferred Security Certificate representing such
Preferred Security Beneficial Owner’s interests in such Global Preferred Securities, except as
provided in Section 7.09 and Section 9.02. Unless and until definitive, fully registered Preferred
Securities certificates have been issued to the Preferred Security Beneficial Owners pursuant to
Section 7.09 or Section 9.02:

     (a) the provisions of this Section 9.04 shall be in full force and effect;

     (b) the Trust and the Trustees shall be entitled to deal with the Clearing Agency for all
purposes of this Declaration (including the payment of Distributions on the Global Preferred
Securities and receiving approvals, votes or consents hereunder) as the Holder of the Preferred
Securities and the sole holder of the Global Certificates and shall have no obligation to the
Preferred Security Beneficial Owners;

     (c) to the extent that the provisions of this Section 9.04 conflict with any other provisions
of this Declaration, the provisions of this Section 9.04 shall control; and

     (d) the rights of the Preferred Security Beneficial Owners shall be exercised only through the
Clearing Agency and shall be limited to those established by law and agreements between such
Preferred Security Beneficial Owners and the Clearing Agency and/or the Clearing Agency
Participants and the Clearing Agency shall receive and transmit payments of Distributions on the
Global Certificates to such Clearing Agency Participants. DTC will make book entry transfers among
the Clearing Agency Participants.

Section 9.05 Notices to Clearing Agency.

     Whenever a notice or other communication to the Preferred Security Holders is required under
this Declaration, unless and until definitive, fully registered Preferred Securities certificates
have been issued to the Preferred Security Beneficial Owners pursuant to Section 7.09 or Section
9.02, the Trustees shall give all such notices and communications specified herein to be given to
the Holders of Global Preferred Securities to the Clearing Agency, and shall have no notice
obligations to the Preferred Security Beneficial Owners.

Section 9.06 Appointment of Successor Clearing Agency.

     If any Clearing Agency ceases to continue its services as securities depositary with respect
to the Preferred Securities, the Administrative Trustees may, in their sole discretion, appoint a
successor Clearing Agency with respect to such Preferred Securities.

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ARTICLE
X.

LIMITATION OF LIABILITY OF

HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

Section 10.01 Liability.

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

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

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

     (b) The Debenture Issuer shall be liable for all of the debts and obligations of the Trust
(other than in respect of the payment of principal and interest on the Securities) to the extent
not satisfied out of the Trust’s assets.

     (c) Pursuant to Section 3803(a) of the Statutory Trust Act, the Holders shall be entitled to
the same limitation of personal liability extended to stockholders of private corporations for
profit organized under the General Corporation Law of the State of Delaware.

Section 10.02 Exculpation.

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

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

Section 10.03 Fiduciary Duty.

     (a) To the extent that, at law or in equity, an Indemnified Person has duties (including
fiduciary duties) and liabilities relating thereto to the Trust or to any other Covered Person, an
Indemnified Person acting under this Declaration shall not be liable to the Trust or to any other
Covered Person for its good faith reliance on the provisions of this Declaration. The provisions

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of this Declaration, to the extent that they restrict the duties and liabilities of an
Indemnified Person otherwise existing at law or in equity (other than the duties imposed on the
Property Trustee under the Trust Indenture Act), are agreed by the parties hereto to replace such
other duties and liabilities of such Indemnified Person.

     (b) Unless otherwise expressly provided herein:

          (i) whenever a conflict of interest exists or arises between any Covered Persons and
Indemnified Persons; or

          (ii) whenever this Declaration or any other agreement contemplated herein or therein provides
that an Indemnified Person shall act in a manner that is, or provides terms that are, fair and
reasonable to the Trust or any Holder of Securities, the Indemnified Person shall resolve such
conflict of interest, take such action or provide such terms, considering in each case the relative
interest of each party (including its own interest) to such conflict, agreement, transaction or
situation and the benefits and burdens relating to such interests, any customary or accepted
industry practices, and any applicable generally accepted accounting practices or principles. In
the absence of bad faith by the Indemnified Person, the resolution, action or term so made, taken
or provided by the Indemnified Person shall not constitute a breach of this Declaration or any
other agreement contemplated herein or of any duty or obligation of the Indemnified Person at law
or in equity or otherwise.

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

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

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

Section 10.04 Indemnification.

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

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which he reasonably believed to be in or not opposed to the best interests of the Trust, and,
with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct
was unlawful.

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

          (iii) To the extent that a Company Indemnified Person shall be successful on the merits or
otherwise (including dismissal of an action without prejudice or the settlement of an action
without admission of liability) in defense of any action, suit or proceeding referred to in
paragraphs (i) and (ii) of this Section 10.04(a), or in defense of any claim, issue or matter
therein, he shall be indemnified, to the full extent permitted by law, against expenses (including
attorneys’ fees) actually and reasonably incurred by him in connection therewith.

          (iv) Any indemnification under paragraphs (i) and (ii) of this Section 10.04(a) (unless
ordered by a court) shall be made by the Debenture Issuer only as authorized in the specific case
upon a determination that indemnification of the Company Indemnified Person is proper in the
circumstances because he has met the applicable standard of conduct set forth in paragraphs (i) and
(ii). Such determination shall be made (1) by the Administrative Trustees by a majority vote of a
Quorum consisting of such Administrative Trustees who were not parties to such action, suit or
proceeding, (2) if such a Quorum is not obtainable, or, even if obtainable, if a Quorum of
disinterested Administrative Trustees so directs, by independent legal counsel in a written
opinion, or (3) by the Common Security Holder of the Trust.

          (v) Expenses (including attorneys’ fees and expenses) incurred by a Company Indemnified Person
in defending a civil, criminal, administrative or investigative action, suit or proceeding referred
to in paragraphs (i) and (ii) of this Section 10.04(a) shall be paid by the Debenture Issuer in
advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking
by or on behalf of such Company Indemnified Person to repay such amount if it shall ultimately be
determined that he is not entitled to be indemnified by the Debenture Issuer as authorized in this
Section 10.04(a). Notwithstanding the foregoing, no advance shall be made by the Debenture Issuer
if a determination is reasonably and promptly made (i) by the Administrative Trustees by a majority
vote of a Quorum of disinterested Administrative Trustees, (ii) if such a Quorum is not obtainable,
or, even if obtainable, if a Quorum of disinterested Administrative Trustees so directs, by
independent legal counsel in a

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written opinion or (iii) the Common Security Holder of the Trust, that, based upon the facts
known to the Administrative Trustees, counsel or the Common Security Holder at the time such
determination is made, such Company Indemnified Person acted in bad faith or in a manner that such
person did not believe to be in or not opposed to the best interests of the Trust, or, with respect
to any criminal proceeding, that such Company Indemnified Person believed or had reasonable cause
to believe his conduct was unlawful. In no event shall any advance be made in instances where the
Administrative Trustees, independent legal counsel or Common Security Holder reasonably determine
that such person deliberately breached his duty to the Trust or its Common or Preferred Security
Holders.

          (vi) The indemnification and advancement of expenses provided by, or granted pursuant to, the
other paragraphs of this Section 10.04(a) shall not be deemed exclusive of any other rights to
which those seeking indemnification and advancement of expenses may be entitled under any
agreement, vote of stockholders or disinterested directors of the Debenture Issuer or Preferred
Security Holders of the Trust or otherwise, both as to action in his official capacity and as to
action in another capacity while holding such office. All rights to indemnification under this
Section 10.04(a) shall be deemed to be provided by a contract between the Debenture Issuer and each
Company Indemnified Person who serves in such capacity at any time while this Section 10.04(a) is
in effect. Any repeal or modification of this Section 10.04(a) shall not affect any rights or
obligations then existing.

          (vii) The Debenture Issuer or the Trust may purchase and maintain insurance on behalf of any
person who is or was a Company Indemnified Person against any liability asserted against him and
incurred by him in any such capacity, or arising out of his status as such, whether or not the
Debenture Issuer would have the power to indemnify him against such liability under the provisions
of this Section 10.04(a).

          (viii) For purposes of this Section 10.04(a), references to “the Trust” shall include, in
addition to the resulting or surviving entity, any constituent entity (including any constituent of
a constituent) absorbed in a consolidation or merger, so that any person who is or was a director,
trustee, officer or employee of such constituent entity, or is or was serving at the request of
such constituent entity as a director, trustee, officer, employee or agent of another entity, shall
stand in the same position under the provisions of this Section 10.04(a) with respect to the
resulting or surviving entity as he would have with respect to such constituent entity if its
separate existence had continued.

          (ix) The indemnification and advancement of expenses provided by, or granted pursuant to, this
Section 10.04(a) shall, unless otherwise provided when authorized or ratified, continue as to a
person who has ceased to be a Company Indemnified Person and shall inure to the benefit of the
heirs, executors and administrators of such a person.

     (b) To the fullest extent permitted by law, the Debenture Issuer agrees to indemnify the (i)
Property Trustee, (ii) the Delaware Trustee, (iii) any Affiliate of the Property Trustee or the
Delaware Trustee, and (iv) any officers, directors, shareholders, members, partners, employees,
representatives, custodians, nominees or agents of the Property Trustee or the Delaware Trustee
(each of the Persons in (i) through (iv) being referred to as a “Fiduciary Indemnified Person”)
for, and to hold each Fiduciary Indemnified Person harmless against, any

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and all loss, liability, damage, claim, action, suit, cost, penalty or expense of any kind or
nature whatsoever including taxes (other than taxes based on the income of such Fiduciary
Indemnified Person) incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder, including the
costs and expenses (including reasonable legal fees and expenses) of defending itself against or
investigating any claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder. The obligation to indemnify as set forth in this Section 10.04(b) shall
survive the resignation or removal of the Property Trustee or the Delaware Trustee, the dissolution
of the Trust and the satisfaction and discharge of this Declaration.

Section 10.05 Outside Businesses.

     Any Covered Person, the Sponsor, the Delaware Trustee and the Property Trustee (subject to
Section 5.03(c)) may engage in or possess an interest in other business ventures of any nature or
description, independently or with others, similar or dissimilar to the business of the Trust, and
the Trust and the Holders shall have no rights by virtue of this Declaration in and to such
independent ventures or the income or profits derived therefrom, and the pursuit of any such
venture, even if competitive with the business of the Trust, shall not be deemed wrongful or
improper. No Covered Person, the Sponsor, the Delaware Trustee, or the Property Trustee shall be
obligated to present any particular investment or other opportunity to the Trust even if such
opportunity is of a character that, if presented to the Trust, could be taken by the Trust, and any
Covered Person, the Sponsor, the Delaware Trustee and the Property Trustee shall have the right to
take for its own account (individually or as a partner or fiduciary) or to recommend to others any
such particular investment or other opportunity. Any Covered Person, the Delaware Trustee and the
Property Trustee may engage or be interested in any financial or other transaction with the Sponsor
or any Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or act on any
committee or body of holders of, securities or other obligations of the Sponsor or its Affiliates.

Section 10.06 Compensation; Fees.

     The Debenture Issuer agrees:

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

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

     The provisions of this Section 10.06 shall survive the dissolution of the Trust and the
termination of this Declaration and the removal or resignation of any Trustee.

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     No Trustee may claim any lien or charge on any property of the Trust as a result of any amount
due pursuant to this Section 10.06.

ARTICLE
XI.

ACCOUNTING

Section 11.01 Fiscal Year.

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

Section 11.02 Certain Accounting Matters.

     (a) At all times during the existence of the Trust, the Administrative Trustees shall keep, or
cause to be kept, full books of account, records and supporting documents, which shall reflect in
reasonable detail, each transaction of the Trust. The books of account shall be maintained on the
accrual method of accounting, in accordance with generally accepted accounting principles,
consistently applied. The books of account and the records of the Trust shall be examined by and
reported upon as of the end of each Fiscal Year of the Trust by a firm of independent certified
public accountants selected by the Administrative Trustees.

     (b) The Administrative Trustees shall cause to be duly prepared and delivered to each of the
Holders, any required annual United States federal income tax information statement containing such
information with regard to the Securities held by each Holder as is required. Notwithstanding any
right under any law to deliver any such statement at a later date, the Administrative Trustees
shall endeavor to deliver all such information statements within 30 days after the end of each
Fiscal Year of the Trust.

     (c) The Administrative Trustees shall cause to be duly prepared and filed with the appropriate
taxing authority, all United States federal income tax returns, and any other annual income tax
returns required to be filed by the Administrative Trustees on behalf of the Trust with any state
or local taxing authority.

Section 11.03 Banking.

     The Trust may maintain one or more bank accounts in the name and for the sole benefit of the
Trust; provided, however, that all payments of funds in respect of the Debentures held by the
Property Trustee shall be made directly to the Property Trustee Account and no other funds of the
Trust shall be deposited in the Property Trustee Account. The sole signatories for such accounts
shall be designated by the Administrative Trustees; provided, however, that the Property Trustee
shall designate the signatories for the Property Trustee Account.

Section 11.04 Withholding.

     The Trust and the Administrative Trustees shall comply with all withholding requirements under
United States federal, state and local law. The Trust shall request, and the Holders shall provide
to the Trust, such forms or certificates as are necessary to establish an exemption from
withholding with respect to each Holder, and any representations and forms as

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shall reasonably be requested by the Trust to assist it in determining the extent of, and in
fulfilling, its withholding obligations. The Administrative Trustees shall file required forms with
applicable jurisdictions and, unless an exemption from withholding is properly established by a
Holder, shall remit amounts withheld with respect to the Holder to applicable jurisdictions. To the
extent that the Trust is required to withhold and pay over any amounts to any authority with
respect to Distributions or allocations to any Holder, the amount withheld shall be deemed to be a
Distribution in the amount of the withholding to the Holder. In the event of any claimed over
withholding, Holders shall be limited to an action against the applicable jurisdiction. If the
amount required to be withheld was not withheld from actual Distributions made, the Trust may
reduce subsequent Distributions by the amount of such withholding.

ARTICLE XII.

AMENDMENTS AND MEETINGS

Section 12.01 Amendments.

     (a) Except as otherwise provided in this Declaration (including Section 7 of Annex I hereto)
or by any applicable terms of the Securities, this Declaration may only be amended by a written
instrument approved and executed by:

          (i) the Administrative Trustees (or if there are more than two Administrative Trustees a
majority of the Administrative Trustees);

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

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

     (b) No amendment shall be made, and any such purported amendment shall be void and
ineffective:

          (i) unless the Property Trustee shall have first received:

               (A) an Officers’ Certificate from each of the Trust and the Sponsor that such amendment is
permitted by, and conforms to, the terms of this Declaration (including the terms of the
Securities) and that the interests of any Holder of Securities will not be materially affected by
such amendment; and

               (B) an Opinion of Counsel (who may be counsel to the Sponsor or the Trust) that such amendment
is permitted by, and conforms to, the terms of this Declaration (including the terms of the
Securities) and that all conditions precedent, if any, in this Declaration to the execution and
delivery of such amendment have been satisfied, provided, however, that the Property Trustee shall
not be required to sign any such amendment which affects the rights, powers, duties, obligations or
immunities of the Property Trustee; and

          (ii) to the extent the result of such amendment would be to:

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

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

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

               (D) cause a Tax Event.

     (c) At such time after the Trust has issued any Securities that remain outstanding, any
amendment that would adversely affect the rights, privileges or preferences of any Holder may be
effected only with such additional requirements as may be set forth in the terms of such
Securities;

     (d) Section 9.01(c) and this Section 12.01 shall not be amended without the consent of all of
the Holders;

     (e) Article Four shall not be amended without the consent of the Holders of a Majority in
liquidation amount of the Common Securities;

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

     (g) Notwithstanding Section 12.01(c), this Declaration may be amended by the Sponsor, the
Property Trustee and the Administrative Trustees without the consent of the Holders to:

          (i) cure any ambiguity, correct or supplement any provision in this Declaration that may be
inconsistent with any other provision of this Declaration or to make any other provisions with
respect to matters or questions arising under this Declaration which shall not be inconsistent with
the other provisions of the Declaration; and

          (ii) to modify, eliminate or add to any provisions of the Declaration to such extent as shall
be necessary to ensure that the Trust will be classified for United States federal income tax
purposes as a grantor trust at all times that any Securities are outstanding or to ensure that the
Trust will not be required to register as an Investment Company under the Investment Company Act;
provided, however, that in each case such action shall not adversely affect the interests of the
Holders, and any such amendments of this Declaration shall become effective when notice thereof is
given to the Holders.

Section 12.02 Meetings of the Holders; Action by Written Consent.

     (a) Meetings of the Holders of any class of Securities may be called at any time by the
Administrative Trustees (or as provided in the terms of the Securities) to consider and act on any
matter on which Holders of such class of Securities are entitled to act under the terms of this

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Declaration, the terms of the Securities or the rules of any stock exchange on which the
Preferred Securities are listed or admitted for trading. The Administrative Trustees shall call a
meeting of the Holders of such class if directed to do so by the Holders of at least 10% in
liquidation amount of such class of Securities. Such direction shall be given by delivering to the
Administrative Trustees one or more notices in writing stating that the signing Holders wish to
call a meeting and indicating the general or specific purpose for which the meeting is to be
called. Any Holders calling a meeting shall specify in writing the Securities held by the Holders
exercising the right to call a meeting and only those Securities specified shall be counted for
purposes of determining whether the required percentage set forth in the second sentence of this
paragraph has been met.

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

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

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

          (iii) each meeting of the Holders shall be conducted by the Administrative Trustees or by such
other Person that the Administrative Trustees may designate; and

          (iv) unless the Statutory Trust Act, this Declaration, the terms of the Securities, the Trust
Indenture Act or the listing rules of any stock exchange on which the Preferred Securities are then
listed or trading, otherwise provides, the Administrative Trustees, in their sole discretion, shall
establish all other provisions relating to meetings of Holders, including notice of the time, place
or purpose of any meeting at which any matter is to be voted on by any Holders, waiver of any such
notice, action by consent without a meeting and without prior notice, the establishment of a record
date, quorum requirements, voting in person or by proxy or any other

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matter with respect to the exercise of any such right to vote, provided, however, the meetings
of Holders shall not be held in any jurisdiction which would subject the Trust to taxation under
the laws of such jurisdiction.

ARTICLE
XIII.

REPRESENTATIONS OF PROPERTY TRUSTEE

AND DELAWARE TRUSTEE

Section 13.01 Representations and Warranties of Property Trustee.

     The Trustee that acts as initial Property Trustee represents and warrants to the Trust, to the
Holders of Securities and to the Sponsor at the date of this Declaration, and each Successor
Property Trustee represents and warrants to the Trust, to the Holders of Securities, and to the
Sponsor at the time of the Successor Property Trustee’s acceptance of its appointment as Property
Trustee that:

     (a) The Property Trustee is a Delaware banking corporation, a national banking association or
a bank or trust company duly organized, validly existing and in good standing under the laws of any
State of the United States or the District of Columbia, in any case with trust powers and authority
to execute and deliver, and to carry out and perform its obligations under the terms of, this
Declaration;

     (b) the Property Trustee satisfies the requirements set forth in Section 5.03(a);

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

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

     (e) No consent, approval or authorization of, or registration with or notice to, any state or
federal banking authority is required for the execution, delivery or performance by the Property
Trustee of this Declaration.

Section 13.02 Representations and Warranties of Delaware Trustee.

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

52

 

     (a) The Delaware Trustee satisfies the requirements set forth in Section 5.02 and, if it is
not a natural person, is duly organized, validly existing and in good standing under the laws of
the State of Delaware or the United States, with trust power and authority to execute and deliver,
and to carry out and perform its obligations under the terms of, this Declaration;

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

     (c) No consent, approval or authorization of, or registration with or notice to, any federal
banking authority is required for the execution, delivery or performance by the Delaware Trustee of
this Declaration; and

     (d) The Delaware Trustee is a natural person who is a resident of the State of Delaware or, if
not a natural person, an entity which has its principal place of business in the State of Delaware.

ARTICLE
XIV.

MISCELLANEOUS

Section 14.01 Notices.

     All notices provided for in this Declaration shall be in writing, duly signed by the party
giving such notice, and shall be delivered, telecopied or mailed by first class mail, overnight
courier service or confirmed telecopy, as follows:

     (a) if given to the Trust, in care of the Administrative Trustees at the mailing address set
forth below (or such other address as the Trust may give notice of to the Property Trustee, the
Delaware Trustee and the Holders):

	 	 	 
	 

	 	Vineyard Statutory Trust X
	 

	 	c/o Vineyard National Bancorp
	 

	 	9590 Foothill Boulevard
	 

	 	Rancho Cucamonga, California 91730,
	 

	 	Attention:                                         , Administrative Trustee
	 

	 	Telecopy:                                         

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

	 	 	 
	 

	 	Wilmington Trust Company

Rodney Square North

53

 

	 	 	 
	 

	 	1100 North Market Street
	 

	 	Wilmington, Delaware 19890
	 

	 	Attention: Corporate Trust Administration
	 

	 	Telecopy: (302) 636-4140

     (c) if given to the Property Trustee, at the Property Trustee’s mailing address set forth
below (or such other address as the Property Trustee may give notice of to the Administrative
Trustees, the Delaware Trustee and the Holders):

	 	 	 
	 

	 	Wilmington Trust Company
	 

	 	Rodney Square North
	 

	 	1100 North Market Street
	 

	 	Wilmington, Delaware 19890
	 

	 	Attention: Corporate Trust Administration
	 

	 	Telecopy: (302) 636-4140

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

	 	 	 
	 

	 	Vineyard National Bancorp
	 

	 	9590 Foothill Boulevard
	 

	 	Rancho Cucamonga, California
	 

	 	Attention: Chief Financial Officer
	 

	 	Telecopy:                                         

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

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

Section 14.02 Governing Law.

     This Declaration and the rights of the parties hereunder shall be governed by and interpreted
in accordance with the laws of the State of Delaware and all rights and remedies shall be governed
by such laws without regard to principles of conflict of laws.

Section 14.03 Intention of the Parties.

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

54

 

Section 14.04 Headings.

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

Section 14.05 Successors and Assigns

     Whenever in this Declaration any of the parties hereto is named or referred to, the successors
and assigns of such party shall be deemed to be included, and all covenants and agreements in this
Declaration by the Sponsor and the Trustees shall bind and inure to the benefit of their respective
successors and assigns, whether so expressed.

Section 14.06 Partial Enforceability.

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

Section 14.07 Counterparts.

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

55

 

     IN WITNESS WHEREOF, the undersigned has caused these presents to be executed as of the day and
year first above written.

	 	 	 	 
	 

	 	VINEYARD STATUTORY TRUST X
	 
	 	 	
	 

	 	 
	 
	 	 	
	 

	 	 
	 

	 	 
	 

	 	as Administrative Trustee	 
	 
	 	 	
	 
	 	 	
	 

	 	 	
	 

	 	 
	 

	 	as Administrative Trustee	 
	 

	 	 
	 
	 	 	
	 

	 	WILMINGTON TRUST COMPANY

as Delaware Trustee
	 
	 	 	
	 

	 	By:	
	 

	 		 
	 

	 	Name:
	 

	 	Title:
	 
	 	 	
	 

	 	WILMINGTON TRUST COMPANY

as Property Trustee
	 
	 	 	
	 

	 	By:	
	 

	 		 
	 

	 	Name:
	 

	 	Title:
	 
	 	 	
	 

	 	VINEYARD NATIONAL BANCORP as Sponsor
 and Debenture
Issuer
	 
	 	 	
	 

	 	By:	
	 

	 		 
	 

	 	     Name:
	 

	 	     Title:

56

 

ANNEX I

     Pursuant to Section 7.01 of
the Amended and Restated Declaration of Trust, dated as of
_________ ______, 200___ (as amended from time to time, the “Declaration”), the designation, rights,
privileges, restrictions, preferences and other terms and provisions of the Securities are set out
below (each capitalized term used but not defined herein has the meaning set forth in the
Declaration or, if not defined in such Declaration, as defined in the Prospectus referred to below
in Section 2(c) of this Annex I):

     1. Designation and Number.

          (a) Preferred Securities.                                          ___% Cumulative Trust Preferred Securities of the
Trust with an aggregate liquidation amount with respect to the assets of the Trust of
                                        
dollars ($                    ) and each with a liquidation amount with respect to the
assets of the Trust of per security are hereby designated for the purposes of identification only
as Preferred Securities. The certificates evidencing the Preferred Securities shall be
substantially in the form of Exhibit A-1 to the Declaration, with such changes and additions
thereto or deletions therefrom as may be required by ordinary usage, custom or practice or to
conform to the rules of any exchange or quotation system on or in which the Preferred Securities
are listed, traded or quoted.

          (b)
 Common Securities.                   
                     
  Common Securities of the Trust with an aggregate
liquidation amount with respect to the assets of the Trust of                                                              dollars
($                    ), and a liquidation amount with respect to the assets of the Trust of per security
(if the underwriters exercise their Option are hereby designated for the purposes of identification
only as Common Securities. The certificates evidencing the Common Securities shall be
substantially in the form of Exhibit A-2 to the Declaration, with such changes and additions
thereto or deletions therefrom as may be required by ordinary usage, custom or practice.

     2. Distributions.

          (a) Distributions payable on each Security will be fixed at a rate per annum of ___% (the
“Coupon Rate”) of the liquidation amount of per Security (the “Liquidation Amount”), such rate
being the rate of interest payable on the Debentures to be held by the Property Trustee.
Distributions in arrears for more than one monthly period will bear additional distributions
thereon compounded quarterly at the Coupon Rate (to the extent permitted by applicable law). A
Distribution is payable only to the extent that payments are made in respect of the Debentures held
by the Property Trustee and to the extent the Property Trustee has funds on hand legally available
therefor.

          (b) Distributions on the Securities will be cumulative, will accumulate from the most recent
date to which Distributions have been paid or duly provided for or, if no Distributions have been
paid or duly provided for, from                      ___, 200___, and will be payable monthly in arrears on the
twelfth day of each month, commencing on            
          ___, 200___ (each,
a “Distribution Date”), except as
otherwise described below. Distributions will be

1

 

computed on the basis of a 360- day year consisting of twelve 30-day months and for any period
less than a full calendar month, on the basis of the actual number of days elapsed in such month
based on 30-day months. As long as no Event of Default has occurred and is continuing under the
Indenture, the Debenture Issuer has the right under the Indenture to defer payments of interest on
the Debentures by extending the interest payment period at any time and from time to time for a
period not exceeding 60 consecutive months, including the first such month during such period (each
an “Extension Period”), during which Extension Period no interest shall be due and payable on the
Debentures, provided that no Extension Period shall end on a date other than an Interest Payment
Date for the Debentures or extend beyond the Maturity Date of the Debentures. As a consequence of
such deferral, Distributions will also be deferred. Despite such deferral, Distributions will
continue to accrue with interest thereon (to the extent permitted by applicable law) at the Coupon
Rate compounded monthly during any such Extension Period. Prior to the termination of any such
Extension Period, the Debenture Issuer may further defer payments of interest by further extending
such Extension Period; provided that such further deferment shall only be permitted to the extent
that such Extension Period, together with all extensions occurring both before and after such
deferment, does not exceed 60 consecutive months, including the first month during such Extension
Period, or extend beyond the Maturity Date of the Debentures. Payments of deferred Distributions
will be payable to Holders of record as they appear on the books and records of the Trust on the
record date for Distributions due at the end of such Extension Period. Upon the termination of any
Extension Period and the payment of all amounts then due, the Debenture Issuer may commence a new
Extension Period, subject to the above requirements.

          (c) Distributions on the Securities will be payable to the Holders thereof as they appear on
the books and records of the Trust which will be the close of business on the 15th day of the month
proceeding the date on which the relevant Distribution Date occurs. Payments in respect of
Preferred Securities will be made by check mailed or by wire to the Holder entitled thereto. The
relevant record dates for the Common Securities shall be the same as the record dates for the
Preferred Securities. Distributions payable on any Securities that are not punctually paid on any
Distribution Date, as a result of the Debenture Issuer having failed to make a payment under the
Debentures, will cease to be payable to the Holder on the relevant record date, and such defaulted
Distribution will instead be payable to the Person in whose name such Securities are registered on
the special record date or other specified date determined in accordance with the Indenture. If
any date on which Distributions are payable on the Securities is not a Business Day, then payment
of the Distribution payable on such date will be made on the next succeeding Business Day (and
without any interest or other payment in respect of any such delay), except that, if such next
succeeding Business Day is in the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day with the same force and effect as if made on such date.

          (d) In the event that there is any money or other property held by or for the Trust that is
not accounted for hereunder, such property shall be distributed Pro Rata (as defined herein) among
the Holders.

2

 

     3. Liquidation Distribution Upon Dissolution.

     In the event of any voluntary or involuntary dissolution or termination of the Trust or the
Sponsor otherwise gives notice of its election to dissolve the Trust pursuant to Section
8.01(a)(iii) of the Declaration, the Trust shall be liquidated by the Administrative Trustees as
expeditiously as the Administrative Trustees determine to be possible by distributing, after
satisfaction of liabilities to creditors of the Trust as provided by applicable law, to the Holders
a Like Amount (as defined below) of the Debentures, unless such distribution is determined by the
Property Trustee not to be practicable, in which event such Holders will be entitled to receive Pro
Rata out of the assets of the Trust legally available for distribution to Holders, after
satisfaction of liabilities to creditors of the Trust as provided by applicable law, an amount
equal to the aggregate of the liquidation amount of per Security plus accumulated and unpaid
Distributions thereon to the date of payment (such amount being the “Liquidation Distribution”).

     “Like Amount” means (i) with respect to a redemption of the Securities, Securities having a
Liquidation Amount equal to that portion of principal amount of Debentures to be contemporaneously
redeemed in accordance with their terms allocated to the Common Securities and the Preferred
Securities based upon the relative Liquidation Amounts of such classes and the proceeds of which
will be used to pay the redemption price of such Securities and (ii) with respect to a distribution
of Debentures upon the dissolution or liquidation of the Trust, Debentures having a principal
amount equal to the Liquidation Amount of the Securities of the Holder to whom such Debentures are
distributed.

     If, upon any such liquidation, the Liquidation Distribution can be paid only in part because
the Trust has insufficient assets on hand legally available to pay in full the aggregate
Liquidation Distribution, then the amounts payable directly by the Trust on the Securities shall be
paid on a Pro Rata basis.

     4. Redemption and Distribution.

          (a) Upon the repayment of the Debentures in whole or in part, at maturity or upon early
redemption (either at the option of the Debenture Issuer or pursuant to a Special Event, as
described below), the proceeds from such repayment shall be simultaneously applied by the Property
Trustee (subject to the Property Trustee having received written notice not less than 35 days nor
more than 60 days prior to such repayment) to redeem a Like Amount of the Securities at the
Redemption Price or the Special Event Redemption Price (each as defined herein), as applicable.

          (b) In the case of an optional redemption, if fewer than all the outstanding Securities are to
be so redeemed, the Securities to be redeemed will be determined as described in Section 4(f)(ii)
below.

     The Debenture Issuer shall have the right (subject to the conditions in the Indenture) to
elect to redeem the Debentures in whole or in part, from time to time, on or after                                         
___, 20___, upon not less than 35 days and not more than 60 days written notice, at the Redemption
Price and, simultaneous with such redemption, to cause a Like Amount of the Securities to be
redeemed by the Trust at the Redemption Price on a Pro Rata basis or such other

3

 

method as the Property Trustee shall deem appropriate, subject to the receipt of prior
approval of any applicable regulatory agency if it is then required under applicable regulatory
requirements. The “Redemption Price” as of any given date identified in the table below, means the
price which is expressed as a percentage of the principal amount of the Securities:

	 	 	 
	Year Beginning	 	Percentage
	On or after                     , 20___

	 	___%
	 	 	 
	On or after                     , 20___

	 	___%
	 	 	 
	On or after                     , 20___

	 	___%
	 	 	 
	On or after                     , 20___

	 	___%
	 	 	 
	On or after                     , 20___

	 	___%
	 	 	 
	On or after                     , 20___

	 	___%

     plus accrued and unpaid interest on such Securities to the redemption date.

          (c) If at any time an Investment Company Event, a Tax Event or a Regulatory Capital Event
(each as defined below, and each a “Special Event”) occurs and shall be continuing, the Debentures
Issuer shall have the right (subject to the conditions set forth in the Indenture) upon not less
than 35 nor more than 60 days written notice, to redeem the Debentures in whole, but not in part,
for cash within 180 days following the occurrence of such Special Event (the “180-Day Period”) at a
redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid
interest thereon to the date of such redemption (the “Special Event Redemption Price”), provided
that if at the time there is available to the Debenture Issuer the opportunity to eliminate, within
the 180-Day Period, a Tax Event by taking some ministerial action (a “Ministerial Action”), such as
filing a form or making an election, or pursuing some other similar reasonable measure which has no
adverse effect on the Debenture Issuer, the Trust or the holders of the Securities, the Debenture
Issuer shall pursue such Ministerial Action in lieu of redemption, and, provided further, that the
Debenture Issuer shall have no right to redeem the Debentures while it is pursuing any Ministerial
Action pursuant to its obligations under the Indenture, and, provided further, that, if it is
determined that the taking of a Ministerial Action would not eliminate the Tax Event within the
180-Day Period, the Debenture Issuer’s right to redeem the Debentures shall be restored and it
shall have no further obligations to pursue the Ministerial Action. Simultaneous with any such
redemption, the Debenture Issuer shall cause a Like Amount of the Securities to be redeemed by the
Trust at the Redemption Price on a Pro Rata basis or such other method as the Property Trustee
shall deem appropriate, in each case subject to the receipt of prior approval of any applicable
regulatory agency if it is then required under applicable regulatory requirements.

     “Investment Company Event” means the receipt by the Sponsor of an Opinion of Counsel, rendered
by a law firm experienced in such matters, to the effect that, as a result of change in law or
regulation or a change in interpretation or application of law or regulation by

4

 

any legislative body, court, governmental agency or regulatory authority, the Trust is or will
be considered an “investment company” that is required to be registered under the Investment
Company Act of 1940, as amended, which change becomes effective on or after the date of original
issuance of the Preferred Securities of Vineyard Statutory Trust X.

     A “Regulatory Capital Event” shall occur at any time that the Sponsor shall have received an
opinion of independent bank regulatory counsel (who shall not be an employee of the Sponsor or the
Trust) experienced in such matters to the effect that, as a result of (a) any amendment to, or
change (including any announced prospective change) in, the laws (or any regulations thereunder) of
the United States or any rules, guidelines or policies of applicable regulatory agencies or (b) any
official administrative pronouncement or judicial decision interpreting or applying such laws or
regulations, which amendment or change is effective or such pronouncement or decision is announced
on or after the date of Declaration, the Preferred Securities do not constitute, or within 90 days
of the date thereof, will not constitute, Tier 1 Capital (or its then equivalent) applied as if the
Sponsor (or its successor) were a bank holding company for purposes of the capital adequacy
guidelines of the Board of Governors of the Federal Reserve (“Federal Reserve”), or any successor
regulatory authority with jurisdiction over bank holding companies, or any capital adequacy
guidelines as then in effect and applicable to the Sponsor; provided, however, that the
distribution of the Debentures in connection with a termination of the Trust by the Sponsor shall
not in and of itself constitute a Regulatory Capital Event; provided further, that for the
avoidance of doubt, the adoption by the Federal Reserve as a final rule of any of the proposals set
forth in its notice of proposed rule making dated May 6, 2004, shall not constitute a Regulatory
Capital Event.

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

          (d) On and from the date fixed by the Administrative Trustees for any distribution of
Debentures and liquidation of the Trust: (i) the Securities will no longer be deemed to be
outstanding and (ii) certificates representing Securities will be deemed to represent beneficial
interests in a Like Amount of Debentures until such certificates are presented to the Debenture
Issuer or its agent for transfer or reissue.

5

 

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

          (f) The procedure with respect to redemptions or distributions of Securities shall be as
follows:

               (i) Notice of any redemption of, or notice of distribution of Debentures in exchange for, the
Securities (a “Redemption/Distribution Notice”) will be given by the Trust by mail to each Holder
to be redeemed or exchanged not fewer than 35 nor more than 60 days before the date fixed for
redemption or exchange thereof which, in the case of a redemption, will be the date fixed for
redemption of the Debentures. For purposes of the calculation of the date of redemption or
exchange and the dates on which notices are given pursuant to this Section 4(f)(i), a
Redemption/Distribution Notice shall be deemed to be given on the day such notice is first mailed
by first-class mail, postage prepaid, to Holders. Each Redemption/Distribution Notice shall be
addressed to the Holders at the address of each such Holder appearing in the books and records of
the Trust. No defect in the Redemption/Distribution Notice or in the mailing of either thereof
with respect to any Holder shall affect the validity of the redemption or exchange proceedings with
respect to any other Holder.

               (ii) In the event that fewer than all the outstanding Securities are to be redeemed, the
particular Securities to be redeemed shall be selected on a Pro Rata basis (based upon Liquidation
Amounts), or such other method as the Property Trustee shall deem appropriate, not more than 60
days prior to the date fixed for redemption from the outstanding Preferred Securities not
previously called for redemption, provided, however, that with respect to Holders that would be
required to hold less than 100 but more than zero Securities as a result of such pro rata
redemption, the Trust shall redeem Securities of each such Holder so that after such redemption
such Holder shall hold either 100 Securities or such Holder no longer holds any Securities and
shall use such method (including, without limitation, by lot) as the Property Trustee shall deem
fair and appropriate, provided, further, that any such proration may be made on the basis of the
aggregate Liquidation Amount of Securities held by each Holder thereof and may be made by making
such adjustments as the Property Trustee deems fair and appropriate in order that only Securities
in denominations of or integral multiples thereof shall be redeemed.

               (iii) If Securities are to be redeemed and the Trust gives a Redemption/Distribution Notice
(which notice will be irrevocable), then provided that the Debenture Issuer has paid the Property
Trustee a sufficient amount of cash in connection with the related redemption or maturity of the
Debentures, the Property Trustee will pay the Redemption Price to the Holders by check mailed to
the address of the relevant Holder appearing on the books and records of the Trust on the
redemption date, provided, that any such payment shall become due only upon surrender by the Holder
of the related certificated Preferred Securities. If a Redemption/Distribution Notice shall have
been given and funds deposited as required, if applicable, then immediately prior to the close of
business on the date of such deposit, or on the redemption date, as applicable, Distributions will
cease to accumulate on the Securities so called for redemption and all rights of Holders so called
for redemption will cease, except the right of the Holders of such Securities to receive the
Redemption Price or Special

6

 

Event Redemption Price, as applicable, but without interest on such Redemption Price or
Special Event Redemption Price, as applicable, and such Securities shall cease to be outstanding.

               (iv) Payment of accumulated and unpaid Distributions on the redemption date of the Securities
will be subject to the rights of Holders on the close of business on a regular record date in
respect of a Distribution Date occurring on or prior to such redemption date. Neither the
Administrative Trustees nor the Trust shall be required to register or cause to be registered the
transfer of (i) any Securities beginning on the opening of business 15 days before the day of
mailing of a notice of redemption and ending at the close of business on the day of such mailing or
(ii) any Securities selected for redemption except the unredeemed portion of any Security being
redeemed. If any date fixed for redemption of Securities is not a Business Day, then payment of the
Redemption Price payable on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay) except that, if such
next succeeding Business Day falls in the next calendar year, such payment shall be made on the
immediately preceding Business Day, with the same force and effect as if made on such date fixed
for redemption. If payment of the Redemption Price in respect of any Securities is improperly
withheld or refused and not paid by the Sponsor as guarantor pursuant to the Preferred Securities
Guarantee, Distributions on such Securities will continue to accumulate from the original
redemption date to the actual date of payment, in which case the actual payment date will be
considered the date fixed for redemption for purposes of calculating the Redemption Price.

               (v) Redemption/Distribution Notices shall be sent by the Property Trustee on behalf of the
Trust to (A) in respect of the Preferred Securities, to the Holder thereof, and (B) in respect of
the Common Securities, to the Holder thereof.

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

     5. Voting Rights — Preferred Securities.

          (a) Except as provided under Sections 5(b), 6(b) and 7 and as otherwise required by law and
the Declaration, the Holders of the Preferred Securities will have no voting rights.

          (b) So long as any Debentures are held by the Property Trustee, subject to the requirement of
the Property Trustee obtaining a tax opinion in certain circumstances set forth in the last
sentence of this paragraph, the Holders of a majority in Liquidation Amount of the Preferred
Securities have the right to (i) direct the time, method and place of conducting any proceeding for
any remedy available to the Debenture Trustee, or direct the exercise of any trust or power
conferred on such Debenture Trustee with respect to the Debentures, (ii) waive any past default
that is waivable under Section 5.07 of the Indenture, (iii) exercise any right to rescind or annul
a declaration of acceleration of the maturity of the principal of the Debentures or (iv) consent to
any amendment, modification or termination of the Indenture or the Debentures,

7

 

where such consent shall be required, however, where a consent under the Indenture would
require the consent of each holder of Debentures affected thereby, no such consent shall be given
by the Property Trustee without the prior approval of each Holder of the Preferred Securities. The
Trustees shall not revoke any action previously authorized or approved by a vote of the Holders of
the Preferred Securities except by subsequent vote of such Holders. Subject to Section 2.07 of the
Declaration, the Property Trustee shall notify each Holder of Preferred Securities of any notice of
default with respect to the Debentures. In addition to obtaining the foregoing approvals of such
Holders of the Preferred Securities, prior to taking any of the foregoing actions, except with
respect to directing the time, method and place of conducting a proceeding for a remedy, the
Trustees shall obtain an opinion of counsel experienced in such matters to the effect that the
Trust will not be classified as an association taxable as a corporation for United States federal
income tax purposes on account of such action.

     If an Event of Default under the Declaration has occurred and is continuing and such event is
attributable to the failure of the Debenture Issuer to pay principal of or interest on the
Debentures on the due date (or in the case of redemption, on the redemption date), then a Holder of
Preferred Securities may directly institute a proceeding for enforcement of payment to such Holder
of the principal of or interest on a Like Amount of Debentures (a “Direct Action”) on or after the
respective due date specified in the Debentures, and the amount of the payment will be based on the
Holder’s pro rata share of the amount due and owing on all Preferred Securities. In connection
with such Direct Action, the Common Securities Holder will be subrogated to the rights of such
Holder of Preferred Securities to the extent of any payment made by the Debenture Issuer to such
Holder of Preferred Securities in such Direct Action. Except as provided in the second preceding
sentence, the Holders of Preferred Securities will not be able to exercise directly any other
remedy available to the holders of the Debentures.

     Any approval or direction of Holders of Preferred Securities may be given at a separate
meeting of Holders of Preferred Securities convened for such purpose, at a meeting of all of the
Holders of Securities in the Trust or pursuant to written consent and without prior notice. The
Administrative Trustees will cause a notice of any meeting at which Holders of Preferred Securities
are entitled to vote, to be mailed to each Holder of record of Preferred Securities. Each such
notice will include a statement setting forth (i) the date of such meeting, (ii) a description of
any resolution proposed for adoption at such meeting on which such Holders are entitled to vote and
(iii) instructions for the delivery of proxies.

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

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

8

 

     6. Voting Rights — Common Securities.

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

          (b) Unless an Event of Default shall have occurred and be continuing, any Trustee may be
removed at any time by the holder of the Common Securities. If an Event of Default has occurred and
is continuing, the Property Trustee and the Delaware Trustee may be removed at such time by the
holders of a Majority in liquidation amount of the outstanding Preferred Securities. In no event
will the holders of the Preferred Securities have the right to vote to appoint, remove or replace,
or increase or decrease the number of, the Administrative Trustees, which voting rights are vested
exclusively in the Holder of the Common Securities. No resignation or removal of a Trustee and no
appointment of a successor trustee shall be effective until the acceptance of appointment by the
successor trustee in accordance with the provisions of the Declaration.

          (c) So long as any Debentures are held by the Property Trustee, subject to Section 2.06 of the
Declaration and only after any Event of Default with respect to the Preferred Securities has been
cured, waived or otherwise eliminated, the Trustees shall not (i) direct the time, method and place
of conducting any proceeding for any remedy available to the Debenture Trustee, or executing any
trust or power conferred on such Debenture Trustee with respect to the Debentures, (ii) waive any
past default that is waivable under Section 5.07 of the Indenture, (iii) exercise any right to
rescind or annul a declaration of acceleration of the maturity of the principal of the Debentures
or (iv) consent to any amendment, modification or termination of the Indenture or the Debentures,
where such consent shall be required, without, in each case, obtaining the prior approval of the
Holders of a Majority in liquidation amount of all outstanding Common Securities; provided,
however, that where a consent under the Indenture would require the consent of each holder of
Debentures affected thereby, no such consent shall be given by the Property Trustee without the
prior approval of each Holder of the Common Securities. The Trustees shall not revoke any action
previously authorized or approved by a vote of the Holders of the Common Securities except by
subsequent vote of such Holders. Subject to Section 2.07 of the Declaration, the Property Trustee
shall notify each Holder of Common Securities of any notice of default with respect to the
Debentures. In addition to obtaining the foregoing approvals of such Holders of the Common
Securities, prior to taking any of the foregoing actions, the Trustees shall obtain an opinion of
counsel experienced in such matters to the effect that the Trust will not be classified as an
association taxable as a corporation for United States federal income tax purposes on account of
such action.

     If an Event of Default under the Declaration has occurred and is continuing and such event is
attributable to the failure of the Debenture Issuer to pay principal of or interest on the
Debentures on the due date (or in the case of redemption, on the redemption date), then a Holder of
Common Securities may institute a Direct Action for enforcement of payment to such Holder of the
principal of or interest on a Like Amount of Debentures on or after the respective due date
specified in the Debentures. In connection with Direct Action, the rights of the Common Securities
Holder will be subordinated to the rights of such Holder of Preferred Securities to the extent of
any payment made by the Debenture Issuer to such Holder of Common Securities in

9

 

such Direct Action. Except as provided in the second preceding sentence, the Holders of
Common Securities will not be able to exercise directly any other remedy available to the holders
of the Debentures.

     Any approval or direction of Holders of Common Securities may be given at a separate meeting
of Holders of Common Securities convened for such purpose, at a meeting of all of the Holders of
Securities in the Trust or pursuant to written consent without prior notice. The Administrative
Trustees will cause a notice of any meeting at which Holders of Common Securities are entitled to
vote to be mailed to each Holder of record of Common Securities. Each such notice will include a
statement setting forth (i) the date of such meeting, (ii) a description of any resolution proposed
for adoption at such meeting on which such Holders are entitled to vote and (iii) instructions for
the delivery of proxies.

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

     7. Amendments to Declaration and Indenture. In addition to the requirements set out
in Section 12.01 of the Declaration, the Declaration may be amended from time to time by the
Sponsor, the Property Trustee and the Administrative Trustees, without the consent of the Holders
(i) to cure any ambiguity, correct or supplement any provisions in the Declaration that may be
inconsistent with any other provisions, or to make any other provisions with respect to matters or
questions arising under the Declaration which shall not be inconsistent with the other provisions
of the Declaration or (ii) to modify, eliminate or add to any provisions of the Declaration to such
extent as shall be necessary to ensure that the Trust will be classified for United States federal
income tax purposes as a grantor trust at all times that any Securities are outstanding or to
ensure that the Trust will not be required to register as an “Investment Company” under the
Investment Company Act provided, however, that in each case such action shall not adversely affect
the interests of any Holder. Any amendments of the Declaration pursuant to the immediately
preceding sentence shall become effective when notice thereof is given to the Holders. Under the
circumstances referred to in Section 12.01(c) of the Declaration, the Declaration also may be
amended by the Trustees and the Sponsor with (i) the consent of Holders representing a Majority in
liquidation amount of all outstanding Securities, and (ii) receipt by the Trustees of an Opinion of
Counsel to the effect that such amendment or the exercise of any power granted to the Trustees in
accordance with such amendment will not affect the Trust’s status as a grantor trust for United
States federal income tax purposes or the Trust’s exemption from status as an Investment Company
under the Investment Company Act, provided that, without the consent of each Holder of Trust
Securities, the Declaration may not be amended to (i) change the amount or timing of any
Distribution on the Trust Securities or otherwise adversely affect the amount of any Distribution
required to be made in respect of the Trust Securities as of a specified date or (ii) restrict the
right of a Holder of Trust Securities to institute suit for the enforcement of any such payment on
or after such date.

     8. Pro Rata. A reference in these terms of the Securities to any payment,
distribution or treatment as being “Pro Rata” shall mean pro rata to each Holder according to the
aggregate liquidation amount of the Securities held by the relevant Holder in relation to the
aggregate liquidation amount of all Securities outstanding unless, in relation to a payment, an
Event of

10

 

Default under the Declaration has occurred and is continuing, in which case any funds
available to make such payment shall be paid first to each Holder of the Preferred Securities pro
rata according to the aggregate liquidation amount of Preferred Securities held by the relevant
Holder relative to the aggregate liquidation amount of all Preferred Securities outstanding, and
only after satisfaction of all amounts owed to the Holders of the Preferred Securities, to each
Holder of Common Securities pro rata according to the aggregate liquidation amount of Common
Securities held by the relevant Holder relative to the aggregate liquidation amount of all Common
Securities outstanding. In any such proration, the Property Trustee on behalf of the Trust may
make such adjustments as may be appropriate in order that only securities in authorized
denominations shall be redeemed.

     9. Ranking. The Preferred Securities rank pari passu with the Common Securities and
payment thereon shall be made Pro Rata with the Common Securities, except that, if an Event of
Default under the Declaration occurs and is continuing, no payments in respect of Distributions on,
or payments upon liquidation, redemption or otherwise with respect to, the Common Securities shall
be made until the Holders of the Preferred Securities shall be paid in full the Distributions,
Redemption Price, Liquidation Distribution and other payments to which they are entitled at such
time.

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

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

     12. Miscellaneous. These terms constitute a part of the Declaration.

     The Sponsor will provide a copy of the Declaration, the Preferred Securities Guarantee, and
the Indenture (including any supplemental indenture) to a Holder without charge upon written
request to the Sponsor at its principal place of business.

11

 

EXHIBIT A-1

FORM OF ____% CUMULATIVE TRUST PREFERRED SECURITY CERTIFICATE

	 	 	 	 	 
	Certificate No. 1

	 	 
	 	Number of
	 

	 	 	 	Preferred Securities:                     

Certificate Evidencing ____% Cumulative Trust Preferred Securities

of

Vineyard Statutory Trust X

     ___%
Cumulative Trust Preferred Securities (liquidation amount $
                    
  per Preferred
Security)

     Vineyard Statutory Trust X, a statutory trust created under the laws of the State of Delaware
(the “Trust”), hereby certifies that                                          (the “Holder”) is the registered owner
of                      Preferred Securities (as defined below) ($                     in aggregate liquidation
amount of Preferred Securities) of the Trust representing undivided beneficial interests in the
assets of the Trust designated the ___% Cumulative Trust Preferred Securities (liquidation amount
$                  per Preferred Security) (the “Preferred Securities”). Subject to the Declaration (as
defined below), the Preferred Securities are transferable on the books and records of the Trust, in
person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer. The designation, rights, privileges, restrictions, preferences and other
terms and provisions of the Preferred Securities represented hereby are issued and shall in all
respects be subject to the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of                      ___, 200___, as the same may be amended from time to time (the “Declaration”),
including the designation of the terms of the Preferred Securities as set forth in Annex I to the
Declaration. Capitalized terms used but not defined herein shall have the meaning given them in the
Declaration. The Sponsor will provide a copy of the Declaration, the Preferred Securities Guarantee
and the Indenture (including any supplemental indenture) to a Holder without charge upon written
request to the Sponsor at its principal place of business.

     Upon receipt of this certificate, the Holder is bound by the Declaration and is entitled to
the benefits thereunder and to the benefits of the Preferred Securities Guarantee to the extent
provided therein.

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

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

 

 

     IN WITNESS WHEREOF,
the Trust has duly executed this certificate this ___  day of
                    
200___.

	 	 	 
	 

	 	VINEYARD STATUTORY TRUST X
	 
	 	 
	 

	 	By: _______________________________
	 

	 	 
	 

	 	       _________________________________

        Administrative Trustee

PROPERTY TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 
	 

	 	WILMINGTON TRUST COMPANY,
	 

	 	        as Property Trustee
	Dated:
	 	 
	 

	 	By: _______________________________

Authorized Signatory

 

 

     Distributions payable on each Preferred Security will be fixed at a rate per annum of ___%
(the “Coupon Rate”) of the liquidation amount of per Preferred Security, such rate being the rate
of interest payable on the Debentures to be held by the Property Trustee. Distributions in arrears
for more than one month will bear interest thereon compounded monthly at the Coupon Rate (to the
extent permitted by applicable law). A Distribution is payable only to the extent that payments
are made in respect of the Debentures held by the Property Trustee and to the extent the Property
Trustee has funds on hand legally available therefor.

     Distributions on the Preferred Securities will be cumulative, will accumulate from the most
recent date to which Distributions have been paid or duly provided for, if no Distributions have
been paid or duly provided for, from                      ___, 200___  and will be payable monthly in arrears,
on the twelfth day of each month, commencing on                      ___, 200___, except as otherwise
described below. Distributions will be computed on the basis of a 360-day year consisting of
twelve 30-day months and, for any period less than a full calendar month, on the basis of the
number of days elapsed in such month based on 30-day months. As long as no Event of Default has
occurred and is continuing under the Indenture, the Debenture Issuer has the right under the
Indenture to defer payments of interest by extending the interest payment period at any time and
from time to time on the Debentures for a period not exceeding 60 consecutive calendar months,
including the first such month during such extension period (each an “Extension Period”), provided
that no Extension Period shall end on a date other than an Interest Payment Date for the Debentures
or extend beyond the Maturity Date of the Debentures. As a consequence of such deferral,
Distributions also will be deferred. Despite such deferral, quarterly Distributions will continue
to accumulate with interest thereon (to the extent permitted by applicable law) at the Coupon Rate
compounded monthly during any such Extension Period. Prior to the termination of any such
Extension Period, the Debenture Issuer may further defer payments of interest by further extending
such Extension Period; provided that such further deferment shall only be permitted to the extent
that such Extension Period, together with all extensions occurring both before and after such
deferment, does not exceed 60 consecutive months, including the first month during such Extension
Period, end on a date other than an Interest Payment Date for the Debentures or extend beyond the
Maturity Date of the Debentures. Payments of accumulated Distributions will be payable to Holders
as they appear on the books and records of the Trust on the first record date after the end of the
Extension Period. Upon the termination of any Extension Period and the payment of all amounts then
due, the Debenture Issuer may commence a new Extension Period, subject to the above requirements.

     Subject to the receipt of any required regulatory approval and to certain other conditions set
forth in the Declaration and the Indenture, the Property Trustee may, at the direction of the
Sponsor, at any time dissolve the Trust and cause the Debentures to be distributed to the holders
of the Securities in liquidation of the Trust or, simultaneous with any redemption of the
Debentures, cause a Like Amount of the Securities to be redeemed by the Trust.

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

 

 

ASSIGNMENT

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

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

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

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	(Insert address and zip code of assignee)
	 
	 	 
	 

	 	and irrevocably appoints
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

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

Date: _______________________

	 	 	 
	 

	 	Signature:
	 
	 	 
	 

	 	 
	 

	 	(Sign exactly as your name appears on the other
	 

	 	side of this Preferred Security
	 

	 	Certificate)

Signature Guarantee*: ______________________________

 

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

 

 

EXHIBIT A-2

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

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

 

 

     THIS COMMON SECURITY IS NOT TRANSFERABLE EXCEPT AS SET FORTH IN SECTION 9.01(c) OF THE AMENDED
AND RESTATED DECLARATION OF TRUST OF VINEYARD STATUTORY TRUST X, DATED AS OF                      ___, 200___, AS
THE SAME MAY BE AMENDED FROM TIME TO TIME.

     Certificate No. 1

Certificate Evidencing Common Securities

of

Vineyard Statutory Trust X

     ___% Common Securities (liquidation amount $                      per Common Security)

     Vineyard Statutory Trust X, a statutory trust formed under the laws of the State of Delaware
(the “Trust”), hereby certifies that Vineyard National Bancorp (the “Holder”) is the registered
owner of                      common securities of the Trust representing undivided beneficial interests in the
assets of the Trust designated the ___% Common Securities (liquidation amount per Common Security)
(the “Common Securities”). Subject to the limitations in Section 9.01(c) of the Declaration (as
defined below), the Common Securities are transferable on the books and records of the Trust, in
person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer. The designation, rights, privileges, restrictions, preferences and other
terms and provisions of the Common Securities represented hereby are issued and shall in all
respects be subject to the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of                      ___, 200___, as the same may be amended from time to time (the
“Declaration”), including the designation of the terms of the Common Securities as set forth in
Annex I to the Declaration. Capitalized terms used but not defined herein shall have the meaning
given them in the Declaration. The Sponsor will provide a copy of the Declaration, the Preferred
Securities Guarantee (as may be appropriate) and the Indenture (including any supplemental
indenture) to a Holder without charge upon written request to the Sponsor at its principal place of
business.

 

 

     Upon receipt of this certificate, the Holder is bound by the Declaration and is entitled to
the benefits thereunder and to the benefits of the Common Securities Guarantee to the extent
provided therein.

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

     This Certificate shall be governed by and construed in accordance with the laws of the State
of Delaware, without regard to principles of conflicts of laws.

     IN WITNESS WHEREOF, the Trust has executed this certificate this ___  day of                     
200___.

	 	 	 	 	 	 	 
	 

	 	 	 	VINEYARD STATUTORY TRUST X	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Administrative Trustee
	 	 

     Distributions payable on each Common Security will be fixed at a rate per annum of ___% (the
“Coupon Rate”) of the liquidation amount of per Common Security, such rate being the rate of
interest payable on the Debentures to be held by the Property Trustee. Distributions in arrears
for more than one month will bear interest thereon compounded monthly at the Coupon Rate (to the
extent permitted by applicable law). A Distribution is payable only to the extent that payments
are made in respect of the Debentures held by the Property Trustee and to the extent the Property
Trustee has funds available therefor.

     Distributions on the Common Securities will be cumulative, will accrue from the most recent
date to which Distributions have been paid or duly provided for or, if no Distributions have been
paid or duly provided for,
from                      
___, 200___  and will be payable monthly in arrears, on the
twelfth day of each month, commencing on                      ___, 200___, except as otherwise described below.
Distributions will be computed on the basis of a 360-day year consisting of twelve 30-day months
and, for any period less than a full month, the number of days elapsed in such month based on
30-day months. As long as no Event of Default has occurred and is continuing under the Indenture,
the Debenture Issuer has the right under the Indenture to defer payments of interest by extending
the interest payment period at any time and from time to time on the Debentures for a period not
exceeding 60 consecutive calendar months, including the first such month during such extension
period (each an “Extension Period”), provided that no Extension Period shall end on a date other
than an Interest Payment Date for the Debentures or extend beyond the Maturity Date of the
Debentures. As a consequence of such

 

 

deferral, Distributions also will be deferred. Despite such deferral, Distributions will
continue to accumulate with interest thereon (to the extent permitted by applicable law) at the
Coupon Rate compounded monthly during any such Extension Period. Prior to the termination of any
such Extension Period, the Debenture Issuer may further defer payments of interest by further
extending such Extension Period; provided that such further deferment shall only be permitted to
the extent that such Extension Period, together with all extensions occurring both before and after
such deferment, does not exceed 60 consecutive months, including the first month during such
Extension Period, or end on a date other than an Interest Payment Date for the Debentures or extend
beyond the Maturity Date of the Debentures. Payments of accrued Distributions will be payable to
Holders as they appear on the books and records of the Trust on the first record date after the end
of the Extension Period. Upon the termination of any Extension Period and the payment of all
amounts then due, the Debenture Issuer may commence a new Extension Period, subject to the above
requirements.

     Subject to the receipt of any required regulatory approval and to certain other conditions set
forth in the Declaration and the Indenture, the Property Trustee may, at the direction of the
Sponsor, at any time dissolve the Trust and cause the Debentures to be distributed to the holders
to the Securities in liquidation of the Trust or, simultaneous with any redemption of the
Debentures, cause a Like Amount of the Securities to be redeemed by the Trust.

     Under certain circumstances, the right of the holders of the Common Securities shall be
subordinate to the rights of the holders of the Preferred Securities (as defined in the
Declaration), as provided in the Declaration.

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

 

 

ASSIGNMENT

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

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

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

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	                          (Insert address and zip code of assignee)	 	 
	 
	 	 	 	 
	 

	 	and irrevocably appoints	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 

                                                       
                   
                   
              as agent to transfer this Common Security Certificate on the books of the Trust. The agent may substitute another to act for

him or her.

     Date:                                         

     Signature:                                                                                 

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

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