Document:

exv4w6

 

Exhibit 4.6

AMENDED AND RESTATED DECLARATION

OF TRUST

COUNTY STATUTORY TRUST III

Dated as of June 23, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	ARTICLE I

INTERPRETATION AND DEFINITIONS	 	 	 	 
	SECTION 1.1.

	 	Definitions
	 	 	1	 
	 

	 	ARTICLE II	 	 	 	 
	 

	 	ORGANIZATION	 	 	 	 
	SECTION 2.1.

	 	Name
	 	 	8	 
	SECTION 2.2.

	 	Office
	 	 	8	 
	SECTION 2.3.

	 	Purpose
	 	 	9	 
	SECTION 2.4.

	 	Authority
	 	 	9	 
	SECTION 2.5.

	 	Title to Property of the Trust
	 	 	9	 
	SECTION 2.6.

	 	Powers and Duties of the Trustees and the Administrators
	 	 	9	 
	SECTION 2.7.

	 	Prohibition of Actions by the Trust and the Trustees
	 	 	14	 
	SECTION 2.8.

	 	Powers and Duties of the Institutional Trustee
	 	 	15	 
	SECTION 2.9.

	 	Certain Duties and Responsibilities of the Trustees and the
Administrators
	 	 	16	 
	SECTION 2.10.

	 	Certain Rights of Institutional Trustee
	 	 	18	 
	SECTION 2.11.

	 	Execution of Documents
	 	 	20	 
	SECTION 2.12.

	 	Not Responsible for Recitals or Issuance of Securities
	 	 	21	 
	SECTION 2.13.

	 	Duration of Trust
	 	 	21	 
	SECTION 2.14.

	 	Mergers
	 	 	21	 
	 

	 	ARTICLE III	 	 	 	 
	 

	 	SPONSOR	 	 	 	 
	SECTION 3.1.

	 	Sponsor’s Purchase of Common Securities
	 	 	23	 
	SECTION 3.2.

	 	Responsibilities of the Sponsor
	 	 	23	 
	 

	 	ARTICLE IV	 	 	 	 
	 

	 	TRUSTEES AND ADMINISTRATORS	 	 	 	 
	SECTION 4.1.

	 	Number of Trustees
	 	 	23	 
	SECTION 4.2.

	 	Institutional Trustee; Eligibility
	 	 	24	 
	SECTION 4.3.

	 	Administrators
	 	 	24	 
	SECTION 4.4.

	 	Appointment, Removal and Resignation of the Trustees and the
Administrators
	 	 	24	 
	SECTION 4.5.

	 	Vacancies Among Trustees
	 	 	26	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 4.6.

	 	Effect of Vacancies
	 	 	26	 
	SECTION 4.7.

	 	 Meetings of the Trustees and the Administrators
	 	 	26	 
	SECTION 4.8.

	 	Delegation of Power
	 	 	27	 
	SECTION 4.9.

	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	27	 
	 

	 	ARTICLE V	 	 	 	 
	 

	 	DISTRIBUTIONS	 	 	 	 
	SECTION 5.1.

	 	Distributions
	 	 	27	 
	 

	 	ARTICLE VI	 	 	 	 
	 

	 	ISSUANCE OF SECURITIES	 	 	 	 
	SECTION 6.1.

	 	General Provisions Regarding Securities
	 	 	28	 
	SECTION 6.2.

	 	Paying Agent, Transfer Agent, Calculation Agent and
Registrar
	 	 	29	 
	SECTION 6.3.

	 	Form and Dating
	 	 	29	 
	SECTION 6.4.

	 	Mutilated, Destroyed, Lost or Stolen Certificates
	 	 	30	 
	SECTION 6.5.

	 	Temporary Securities
	 	 	30	 
	SECTION 6.6.

	 	Cancellation
	 	 	30	 
	SECTION 6.7.

	 	Rights of Holders; Waivers of Past Defaults
	 	 	31	 
	 

	 	ARTICLE VII	 	 	 	 
	 

	 	DISSOLUTION AND TERMINATION OF TRUST	 	 	 	 
	SECTION 7.1.

	 	Dissolution and Termination of Trust
	 	 	33	 
	 

	 	ARTICLE VIII	 	 	 	 
	 

	 	TRANSFER OF INTERESTS	 	 	 	 
	SECTION 8.1.

	 	General	 	 	34	 
	SECTION 8.2.

	 	Transfer Procedures and Restrictions
	 	 	35	 
	SECTION 8.3.

	 	Deemed Security Holders
	 	 	38	 
	 

	 	ARTICLE IX	 	 	 	 
	LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS	 	 	 	 
	SECTION 9.1.

	 	Liability
	 	 	38	 
	SECTION 9.2.

	 	Exculpation
	 	 	38	 
	SECTION 9.3.

	 	Fiduciary Duty
	 	 	39	 
	SECTION 9.4.

	 	Indemnification
	 	 	40	 
	SECTION 9.5.

	 	Outside Businesses
	 	 	43	 
	SECTION 9.6.

	 	Compensation; Fee
	 	 	43	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE X	 	 	 	 
	 

	 	ACCOUNTING	 	 	 	 
	SECTION 10.1.

	 	Fiscal Year
	 	 	43	 
	SECTION 10.2.

	 	Certain Accounting Matters
	 	 	44	 
	SECTION 10.3.

	 	Banking
	 	 	44	 
	SECTION 10.4.

	 	Withholding
	 	 	44	 
	 

	 	ARTICLE XI	 	 	 	 
	 

	 	AMENDMENTS AND MEETINGS	 	 	 	 
	SECTION 11.1.

	 	Amendments
	 	 	45	 
	SECTION 11.2.

	 	Meetings of the Holders of the Securities;
Action by Written
Consent
	 	 	47	 
	 

	 	ARTICLE XII	 	 	 	 
	 

	 	REPRESENTATIONS OF INSTITUTIONAL TRUSTEE	 	 	 	 
	SECTION 12.1.

	 	Representations and Warranties of Institutional
Trustee
	 	 	48	 
	 

	 	ARTICLE XIII	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	SECTION 13.1.

	 	Notices
	 	 	49	 
	SECTION 13.2.

	 	Governing Law
	 	 	51	 
	SECTION 13.3.

	 	Submission to Jurisdiction
	 	 	51	 
	SECTION 13.4.

	 	Intention of the Parties
	 	 	51	 
	SECTION 13.5.

	 	Headings
	 	 	51	 
	SECTION 13.6.

	 	Successors and Assigns
	 	 	51	 
	SECTION 13.7.

	 	Partial Enforceability
	 	 	52	 
	SECTION 13.8.

	 	Counterparts
	 	 	52	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	ANNEXES AND EXHIBITS	 	 
	 
	ANNEX I

	 	Terms of TP Securities and Common Securities	 	 
	 
	EXHIBIT A-1

	 	Form of Capital Security Certificate	 	 
	EXHIBIT A-2

	 	Form of Common Security Certificate	 	 

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AMENDED AND RESTATED DECLARATION OF TRUST

OF

COUNTY
STATUTORY TRUST III

June 23,
2006

     AMENDED AND RESTATED DECLARATION OF TRUST (this “Declaration”), dated and effective as of
June 23, 2006, by the Trustee (as defined herein), the Administrators (as defined herein), the
Sponsor (as defined herein) and the holders from time to time of undivided beneficial interests in
the assets of the Trust (as defined herein) to be issued pursuant to this Declaration.

     WHEREAS,
the Trustee, the Administrators and the Sponsor established County
Statutory Trust III
(the “Trust”), a statutory trust under the Statutory Trust Act (as defined herein), pursuant to a
Declaration of Trust, dated as of June 21, 2006 (the “Original Declaration”), and a Certificate of
Trust filed with the Secretary of State of the State of Connecticut on June 21, 2006, 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 the Debentures (as defined herein) of
the Debenture Issuer (as defined herein) in connection with the issuance of the Capital Securities
(as defined herein);

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

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

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

ARTICLE I

INTERPRETATION AND DEFINITIONS

     SECTION 1.1. Definitions. Unless the context otherwise requires:

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

 

 

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

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

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

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

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

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

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

     “Administrators” means each of David Curtis and Janey Cabral, solely in such Person’s
capacity as Administrator of the Trust continued hereunder and not in such Person’s individual
capacity, or such Administrator’s successor in interest in such capacity, or any successor
appointed as herein provided.

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

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

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

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

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

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     “Business Day” means any day other than Saturday, Sunday or any other day on which banking
institutions in Boston, Massachusetts or New York City or the city of the Corporate Trust Office
are permitted or required by any applicable law or executive order to close.

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

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

     “Capital Securities Purchase Agreements” means the Capital Securities Purchase Agreement
dated as of June 21, 2006 among the Trust, the Sponsor and Bear, Stearns & Co. Inc. and the
Capital Securities Purchase Agreement dated as of June 21, 2006 among the Trust, the Sponsor and
First Tennessee Bank National Association.

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

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

     “Certificate” means any certificate evidencing Securities.

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

     “Closing Date” means the date of execution and delivery of this Declaration.

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

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

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

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

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

     “Corporate Trust Office” means the office of the Institutional Trustee at which the corporate
trust business of the Institutional Trustee shall, at any particular time, be principally
administered, which office shall at all times be located in the United States and at the date of
execution of this Declaration is located at 225 Asylum Street, 23rd Floor, Hartford,
Connecticut 06103, Attn: Corporate Trust Services — County Statutory Trust III.

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

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

     “Debenture Issuer” means Capital Corp of the West, a bank holding company incorporated in
California, in its capacity as issuer of the Debentures under the Indenture.

     “Debenture Trustee” means U.S. Bank National Association, not in its individual capacity but
solely as trustee under the Indenture until a successor is appointed thereunder, and thereafter
means such successor trustee.

     “Debentures” means the Junior Subordinated Debt Securities due September 15, 2036 to be
issued by the Debenture Issuer under the Indenture.

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

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

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

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

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

     “Distribution Payment Period” means the period from and including a Distribution Payment Date,
or in the case of the first Distribution Payment Period, the original date of issuance of the
Securities, to, but excluding, the next succeeding Distribution Payment Date or, in the case of the
last Distribution Payment Period, the Redemption Date, Special Redemption Date or Maturity Date
(each as defined in the Indenture), as the case may be, for the related Debentures.

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

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

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

     “Fiduciary Indemnified Person” shall mean the Institutional Trustee (including in its
individual capacity), any Affiliate of the Institutional Trustee, and any officers, directors,

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shareholders, members, partners, employees, representatives, custodians, nominees or agents of the
Institutional Trustee.

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

     “Guarantee” means the Guarantee Agreement, dated as of the Closing Date, of the Sponsor (the
“Guarantor”) in respect of the Capital Securities.

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

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

     “Indenture” means the Indenture, dated as of the Closing Date, between the Debenture Issuer
and the Debenture Trustee, and any indenture supplemental thereto pursuant to which the Debentures
are to be issued.

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

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

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

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

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

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

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

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

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

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

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

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

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

-5-

 

     “Majority in liquidation amount of the Securities” means Holders of outstanding Securities
voting together as a single class or, as the context may require, Holders of outstanding
Capital Securities or Holders of outstanding Common Securities voting separately as a class,
who are the record owners of more than 50% of the aggregate liquidation amount (including
the stated amount that would be paid on redemption, liquidation or otherwise, plus accrued
and unpaid Distributions to the date upon which the voting percentages are determined) of
all outstanding Securities of the relevant class.

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

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

          (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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     “Restricted Securities Legend” has the meaning set forth in Section 8.2(c).

     “Rule 144A” means Rule 144A under the Securities Act.

     “Rule 3a-5” means Rule 3a-5 under the Investment Company Act.

     “Rule 3a-7” means Rule 3a-7 under the Investment Company Act.

     “Securities” means the Common Securities and the Capital Securities, as applicable.

     “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 paragraph 4(a) of Annex I.

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

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

     “Statutory Trust Act” means Chapter 615 of Title 34 of the Connecticut General Statutes, 34
C.G.S. § 500 et seq., as it may be amended from time to time, or any successor
legislation.

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

     “Successor Institutional Trustee” has the meaning set forth in Section 4.4(b).

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

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

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

     “10% in liquidation amount of the Securities” means Holders of outstanding Securities voting
together as a single class or, as the context may require, Holders of outstanding Capital
Securities or Holders of outstanding Common Securities voting separately as a class, who are the
record owners of 10% or more of the aggregate liquidation amount (including the stated amount that
would he paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the voting percentages are determined) of all outstanding Securities of the
relevant class.

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

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

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

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

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

ARTICLE II

ORGANIZATION

     SECTION
2.1. Name. The Trust is continued hereby and shall be known as “County
Statutory Trust III,” as such name may be modified from time to time by the Administrators
following written notice to the Institutional Trustee and the Holders of the Securities. The
Trust’s activities may be conducted under the name of the Trust or any other name deemed advisable
by the Administrators.

     SECTION 2.2. Office. The address of the principal office of the Trust, which shall be
in a state of the United States or the District of Columbia, is 225
Asylum Street,
23rd Floor,
Hartford, Connecticut 06103, Attention: Corporate Trust Services — County Statutory Trust III. On
ten Business Days’ written notice to the Institutional Trustee and the Holders of the Securities,
the Administrators may designate another principal office, which shall be in a state of the United
States or the District of Columbia.

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

     SECTION
2.4. Authority. Except as specifically provided in this Declaration, the
Institutional Trustee shall have exclusive and complete authority to carry out the purposes of the
Trust. An action taken by a Trustee on behalf of the Trust and in accordance with such Trustee’s
powers shall constitute the act of and serve to bind the Trust. In dealing with the Trustees
acting on behalf of the Trust, no Person shall be required to inquire into the authority of the
Trustees to bind the Trust. Persons dealing with the Trust are entitled to rely conclusively on
the power and authority of the Trustees as set forth in this Declaration. The Administrators shall
have only those ministerial duties set forth herein with respect to accomplishing the purposes of
the Trust and are not intended to be trustees or fiduciaries with respect to the Trust or the
Holders. The Institutional Trustee shall have the right, but shall not be obligated except as
provided in Section 2.6, to perform those duties assigned to the Administrators.

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

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

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

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

     (A) the issuance and sale of the Securities;

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     (B) to acquire the Debentures with the proceeds of the sale of
the Securities; provided, however, that the Administrators shall cause legal
title to the Debentures to be held of record in the name of the Institutional
Trustee for the benefit of the Holders;

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

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

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

     (F) the sending of notices (other than notices of default) and
other information regarding the Securities and the Debentures to the
Holders in accordance with this Declaration, including notice of any
notice received from the Debenture Issuer of its election to defer payments
of interest on the Debentures by extending the interest payment period
under the Indenture;

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

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

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

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

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

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

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

     (N) to negotiate the terms of, and the execution and delivery of, the Placement
Agreement and the Capital Securities Purchase Agreements related thereto, providing for
the sale of the Capital Securities;

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

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

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

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

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

     (A) the establishment of the Property Account;

     (B) the receipt of the Debentures;

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

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

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

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

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

     (H) to the extent provided in this Declaration, the winding up of
the affairs of and liquidation of the Trust;

     (I) after any Event of Default (of which the Institutional Trustee has
knowledge (as provided in Section 2.10(m) hereof)) (provided, that
such Event of Default is not by or with respect to the Institutional
Trustee), the taking of any action incidental to the foregoing as the
Institutional Trustee may from time to time determine is necessary or
advisable to give effect to the terms of this Declaration and protect and
conserve the Trust Property for the benefit of the Holders (without
consideration of the effect of any such action on any particular Holder);

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

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

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

          (b) So long as this Declaration remains in effect, the Trust (or the Trustees or
Administrators acting on behalf of the Trust) shall not undertake any business, activities or
transaction except as expressly provided herein or contemplated hereby. In particular, neither the
Trustees nor the Administrators may cause the Trust to (i) acquire any investments or engage in
any activities not authorized by this Declaration, (ii) sell, assign, transfer, exchange,
mortgage, pledge, set-off or otherwise dispose of any of the Trust Property or interests therein,
including to Holders, except as expressly provided herein, (iii) take any action that would cause
(or in the

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case of the Institutional Trustee, to the actual knowledge of a Responsible Officer would cause)
the Trust to fail or cease to qualify as a “grantor trust” for United States federal income tax
purposes, (iv) incur any indebtedness for borrowed money or issue any other debt or (v) take or
consent to any action that would result in the placement of a lien on any of the Trust Property.
The Institutional Trustee shall, at the sole cost and expense of the Trust, defend all claims and
demands of all Persons at any time claiming any lien on any of the Trust Property adverse to the
interest of the Trust or the Holders in their capacity as Holders.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          (g) other than as provided in this Declaration (including Annex I), (i) direct the time,
method and place of exercising any trust or power conferred upon the Debenture Trustee with respect
to the Debentures, (ii) waive any past default that is waivable under the Indenture, (iii) exercise
any right to rescind or annul any declaration that the principal of all the Debentures shall be due
and payable, or (iv) consent to any amendment, modification or termination of the Indenture or the
Debentures where such consent shall be required unless the Trust shall have received a written
opinion of counsel experienced in such matters to the effect

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that such amendment, modification or termination will not cause the Trust to cease to be
classified as a grantor trust for United States federal income tax purposes.

     SECTION
2.8. Powers and Duties of the Institutional Trustee.

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

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

          (c) The Institutional Trustee shall:

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

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

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

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

          (e) The Institutional Trustee may bring or defend, pay, collect, compromise,
arbitrate, resort to legal action with respect to, or otherwise adjust claims or demands of or
against, the Trust (a “Legal Action”) which arise out of or in connection with an Event of
Default of which a Responsible Officer of the Institutional Trustee has actual knowledge or the
Institutional Trustee’s duties and obligations under this Declaration or the Trust Indenture
Act; provided, however, that if an Event of Default has occurred and is continuing and such
event is attributable to the failure of the Debenture Issuer to pay interest or premium, if any, on or

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principal of the Debentures on the date such interest, premium, if any, or principal is otherwise
payable (or in the case of redemption, on the redemption date), then a Holder of the Capital
Securities may directly institute a proceeding for enforcement of payment to such Holder of the
principal of or premium, if any, or interest on the Debentures having a principal amount equal to
the aggregate liquidation amount of the Capital Securities of such Holder (a “Direct Action”) on or
after the respective due date specified in the Debentures. In connection with such Direct Action,
the rights of the Holders of the Common Securities will be subrogated to the rights of such Holder
of the Capital Securities to the extent of any payment made by the Debenture Issuer to such Holder
of the Capital Securities in such Direct Action; provided, however, that a Holder of the
Common Securities may exercise such right of subrogation only if no Event of Default with respect
to the Capital Securities has occurred and is continuing.

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

     (i) the Trust has been completely liquidated and the proceeds of the
liquidation distributed to the Holders of the Securities pursuant to the terms of
the Securities and this Declaration (including Annex I) and the certificate of
cancellation referenced in Section 7.1(b) has been filed; or

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

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

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

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

          (a) The Institutional Trustee, before the occurrence of any Event of Default (of which the
Institutional Trustee has knowledge (as provided in Section 2.l0(m) hereof)) and after the curing
of all Events of Default that may have occurred, shall undertake to perform only such duties as
are specifically set forth in this Declaration and no implied covenants shall be read into this
Declaration against the Institutional Trustee. In case an Event of Default (of which the
Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)), has occurred (that
has not been cured or waived pursuant to Section 6.7), the Institutional Trustee shall exercise
such of the rights and powers vested in it by this Declaration, and use the same degree of care
and skill in their exercise, as a prudent person would exercise or use under the circumstances in
the conduct of his or her own affairs.

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          (b) The duties and responsibilities of the Trustees and the Administrators shall be as
provided by this Declaration and, in the case of the Institutional Trustee, by the Trust Indenture
Act. Notwithstanding the foregoing, no provision of this Declaration shall require any Trustee or
Administrator to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if
it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risk or liability is not reasonably assured to it. Whether or not
therein expressly so provided, every provision of this Declaration relating to the conduct or
affecting the liability of or affording protection to the Trustees or the Administrators shall be
subject to the provisions of this Article. Nothing in this Declaration shall be construed to
release a Trustee from liability for its own negligent action, its own negligent failure to act, or
its own willful misconduct or bad faith. Nothing in this Declaration shall be construed to release
an Administrator from liability for its own gross negligent action, its own gross negligent failure
to act, or its own willful misconduct or bad faith. To the extent that, at law or in equity, a
Trustee or an Administrator has duties and liabilities relating to the Trust or to the Holders,
such Trustee or Administrator shall not be liable to the Trust or to any Holder for such Trustee’s
or Administrator’s good faith reliance on the provisions of this Declaration. The provisions of
this Declaration, to the extent that they restrict the duties and liabilities of the Administrators
or the Trustees otherwise existing at law or in equity, are agreed by the Sponsor and the Holders
to replace such other duties and liabilities of the Administrators or the Trustees.

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

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

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

     (ii) the Institutional Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the direction of
the Holders of not less than a Majority in liquidation amount of the Capital
Securities or the Common Securities, as applicable, relating to the time,

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method and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under this Declaration;

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

     (iv) the Institutional Trustee shall not be liable for any interest on any
money received by it except as it may otherwise agree in writing with the Sponsor;
and money held by the Institutional Trustee need not be segregated from other funds
held by it except in relation to the Property Account maintained by the
Institutional Trustee pursuant to Section 2.8(c)(i) and except to the extent
otherwise required by law; and

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

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

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

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

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

          (d) whenever in the administration of this Declaration, the Institutional Trustee shall deem
it desirable that a matter be proved or established before undertaking, suffering or omitting any
action hereunder, the Institutional Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and conclusively rely upon an
Officers’ Certificate which, upon receipt of such request, shall be promptly delivered by the
Sponsor or the Administrators;

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

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

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

          (h) the Institutional Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond, debenture, note or other evidence of indebtedness or
other paper or document, unless requested in writing to do so by one or more Holders, but the
Institutional Trustee may make such further inquiry or investigation into such facts or matters as
it may see fit;

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

          (j) whenever in the administration of this Declaration the Institutional Trustee shall deem
it desirable to receive instructions with respect to enforcing any remedy or right or taking any
other action hereunder, the Institutional Trustee (i) may request instructions from the Holders of
the Common Securities and the Capital Securities, which instructions may be given

 -19-

 

only by the Holders of the same proportion in liquidation amount of the Common Securities and
the Capital Securities as would be entitled to direct the Institutional Trustee under the terms of
the Common Securities and the Capital Securities in respect of such remedy, right or action, (ii)
may refrain from enforcing such remedy or right or taking such other action until such
instructions are received, and (iii) shall be fully protected in acting in accordance with such
instructions;

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

          (l) when the Institutional Trustee incurs expenses or renders services in
connection with a Bankruptcy Event, such expenses (including the fees and expenses of its
counsel) and the compensation for such services are intended to constitute expenses of
administration under any bankruptcy law or law relating to creditors rights generally;

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

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

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

     SECTION 2.11. Execution of Documents. Unless otherwise determined in writing by
the Institutional Trustee, and except as otherwise required by the Statutory Trust Act, the
Institutional Trustee, or any one or more of the Administrators, as the case may be, is authorized
to execute and deliver on behalf of the Trust any documents, agreements, instruments or
certificates that the Trustees or the Administrators, as the case may be, have the power and
authority to execute pursuant to Section 2.6.

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     SECTION 2.12. 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 2.13. Duration of Trust. The Trust, unless dissolved pursuant to the
provisions of Article VII hereof, shall have existence for thirty-five (35) years from the Closing Date.

     SECTION 2.14. Mergers.

          (a) The Trust may not consolidate, amalgamate, merge with or into, or be
replaced by, or convey, transfer or lease its properties and assets substantially as an entirety to
any corporation or other Person, except as described in this Section 2.15 and except with respect
to the distribution of Debentures to Holders of Securities pursuant to Section 7.1(a)(iv) of the
Declaration or Section 3 of Annex I.

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

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

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

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

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

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

     (iv) such merger, consolidation, amalgamation, replacement,
conveyance, transfer or lease does not cause the rating, if any, on the Capital

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Securities (including any Successor Securities) to be downgraded or withdrawn
by any nationally recognized statistical rating organization, if the Capital
Securities are then rated;

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

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

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

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

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

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

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

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

          (c) Notwithstanding Section 2.15(b), the Trust shall not, except with the
consent of Holders of 100% in liquidation amount of the Securities, consolidate, amalgamate,
merge with or into, or be replaced by, or convey, transfer or lease its properties and assets as an

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entirety or substantially as an entirety to, any other Person or permit any other Person to
consolidate, amalgamate, merge with or into, or replace it if such consolidation, amalgamation,
merger, replacement, conveyance, transfer or lease would cause the Trust or Successor Entity to
be classified as other than a grantor trust for United States federal income tax purposes.

ARTICLE III

SPONSOR

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

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

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

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

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

ARTICLE IV

TRUSTEES AND ADMINISTRATORS

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

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

          (b) after the issuance of any Securities, the number of Trustees may be
increased or decreased by vote of the Holder of a Majority in liquidation amount of the Common
Securities voting as a class at a meeting of the Holder of the Common Securities; provided,
however, that there shall always be one Trustee who shall be the Institutional Trustee.

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     SECTION 4.2. Institutional Trustee; Eligibility.

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

(i) not be an Affiliate of the Sponsor;

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

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

          (b) If at any time the Institutional Trustee shall cease to be eligible to so act
under Section 4.2(a), the Institutional Trustee shall immediately resign in the manner and with
the effect set forth in Section 4.5.

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

          (d) The initial Institutional Trustee shall be U.S. Bank National Association.

     SECTION 4.3. Administrators. Each Administrator shall be a U.S. Person.

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

     SECTION 4.4. Appointment, Removal and Resignation of the Trustees and the
Administrators.

          (a) No resignation or removal of any Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable requirements of this
Section 4.4.

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          (b) Subject to Section 4.4(a), a Trustee may resign at any time by giving
written notice thereof to the Holders of the Securities and by appointing a successor Trustee.
Upon the resignation of the Institutional Trustee, the Institutional Trustee shall appoint a
successor by requesting from at least three Persons meeting the eligibility requirements their
expenses and charges to serve as the successor Institutional Trustee on a form provided by the
Administrators, and selecting the Person who agrees to the lowest reasonable expense and
charges (the “Successor Institutional Trustee”). If the instrument of acceptance by the successor
Trustee required by this Section 4.4 shall not have been delivered to the Trustee within 60 days
after the giving of such notice of resignation or delivery of the instrument of removal, the
Trustee may petition, at the expense of the Trust, any federal, state or District of Columbia court
of competent jurisdiction for the appointment of a successor Trustee. Such court may thereupon,
after prescribing such notice, if any, as it may deem proper, appoint a Trustee. The Institutional
Trustee shall have no liability for the selection of such successor pursuant to this Section 4.4.

          (c) Unless an Event of Default shall have occurred and be continuing, any
Trustee may be removed at any time by an act of the Holders of a Majority in liquidation amount
of the Common Securities. If any Trustee shall be so removed, the Holders of the Common
Securities, by act of the Holders of a Majority in liquidation amount of the Common Securities
delivered to the Trustee, shall promptly appoint a successor Trustee, and such successor Trustee
shall comply with the applicable requirements of this Section 4.4. If an Event of Default shall
have occurred and be continuing, the Institutional Trustee may be removed by the act of the
Holders of a Majority in liquidation amount of the Capital Securities, delivered to the Trustee (in
its individual capacity and on behalf of the Trust). If any Trustee shall be so removed, the
Holders of Capital Securities, by act of the Holders of a Majority in liquidation amount of the
Capital Securities then outstanding delivered to the Trustee, shall promptly appoint a successor-
Trustee or Trustees, and such successor Trustee shall comply with the applicable requirements of
this Section 4.4. If no successor Trustee shall have been so appointed by the Holders of a
Majority in liquidation amount of the Capital Securities and accepted appointment in the manner
required by this Section 4.4 within 30 days after delivery of an instrument of removal, the
Trustee or any Holder who has been a Holder of the Securities for at least six months may, on
behalf of himself and all others similarly situated, petition any federal, state or District of
Columbia court of competent jurisdiction for the appointment of a successor Trustee. Such court
may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a successor
Trustee or Trustees.

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

          (e) In case of the appointment hereunder of a successor Trustee, the retiring
Trustee and each successor Trustee with respect to the Securities shall execute and deliver an
amendment hereto wherein each successor Trustee shall accept such appointment and which (a)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with
respect to the Securities and the Trust and (b) shall add to or change any of the provisions of
this
Declaration as shall be necessary to provide for or facilitate the administration of the Trust by

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more than one Trustee, it being understood that nothing herein or in such amendment shall
constitute such Trustees co-trustees and upon the execution and delivery of such amendment the
resignation or removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on
request of the Trust or any successor Trustee, such retiring Trustee shall duly assign, transfer
and
deliver to such successor Trustee all Trust Property, all proceeds thereof and money held by such
retiring Trustee hereunder with respect to the Securities and the Trust subject to the payment of
all unpaid fees, expenses and indemnities of such retiring Trustee.

          (f) No Institutional Trustee shall be liable for the acts or omissions to act of
any Successor Institutional Trustee.

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

     SECTION 4.5. Vacancies Among Trustees. If a Trustee ceases to hold office for any
reason and the number of Trustees is not reduced pursuant to Section 4.1, or if the number of
Trustees is increased pursuant to Section 4.1, a vacancy shall occur. A resolution certifying the
existence of such vacancy by the Trustees or, if there are more than two, a majority of the
Trustees shall be conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a Trustee appointed in accordance with Section 4.4.

     SECTION
4.6. Effect of Vacancies. The death, resignation, retirement, removal,
bankruptcy, dissolution, liquidation, incompetence or incapacity to perform the duties of a
Trustee shall not operate to dissolve, terminate or annul the Trust or terminate this Declaration.
Whenever a vacancy in the number of Trustees shall occur, until such vacancy is filled by the
appointment of a Trustee in accordance with Section 4.4, the Institutional Trustee shall have all
the powers granted to the Trustees and shall discharge all the duties imposed upon the Trustees
by this Declaration.

     SECTION 4.7. Meetings of the Trustees and the Administrators. Meetings of the
Trustees or the Administrators shall be held from time to time upon the call of any Trustee or
Administrator, as applicable. Regular meetings of the Trustees and the Administrators,
respectively, may be in person in the United States or by telephone, at a place (if applicable) and
time fixed by resolution of the Trustees or the Administrators, as applicable. Notice of any
in person
meetings of the Trustees or the Administrators shall be hand delivered or otherwise
delivered in writing (including by facsimile, with a hard copy by overnight courier) not less than
48 hours before such meeting. Notice of any telephonic meetings of the Trustees or the
Administrators or any committee thereof shall be hand delivered or otherwise delivered in
writing (including by facsimile, with a hard copy by overnight courier) not less than 24 hours
before a meeting. Notices shall contain a brief statement of the time, place and anticipated
purposes of the meeting. The presence (whether in person or by telephone) of a Trustee or an
Administrator, as the case may be, at a meeting shall constitute a waiver of notice of such
meeting except where a Trustee or an Administrator, as the case may be, attends a meeting for
the express purpose of objecting to the transaction of any activity on the ground that the meeting

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has not been lawfully called or convened. Unless provided otherwise in this Declaration, any
action of the Trustees or the Administrators, as the case may be, may be taken at a meeting by
vote of a majority of the Trustees or the Administrators present (whether in person or by
telephone) and eligible to vote with respect to such matter; provided, that, in the case of the
Administrators, a Quorum is present, or without a meeting by the unanimous written consent of
the Trustees or the Administrators, as the case may be. Meetings of the Trustees and the
Administrators together shall be held from time to time upon the call of any Trustee or
Administrator.

     SECTION 4.8. Delegation of Power.

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

          (b) The Trustees shall have power to delegate from time to time to such of
their number or to any officer of the Trust that is a U.S. Person, the doing of such things and the
execution of such instruments or other writings either in the name of the Trust or the names of
the Trustees or otherwise as the Trustees may deem expedient, to the extent such delegation is
not prohibited by applicable law or contrary to the provisions of the Trust, as set forth herein.

     SECTION 4.9. Merger, Conversion, Consolidation or Succession to Business.

          Any Person into which the Institutional Trustee 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 Institutional Trustee shall be a party, or any Person succeeding to all
or substantially all the corporate trust business of the Institutional Trustee shall be the
successor
of the Institutional Trustee hereunder, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, provided such Person shall be otherwise qualified and
eligible under this Article.

ARTICLE V

DISTRIBUTIONS

     SECTION 5.1. Distributions.

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

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other than withholding tax taxes, as determined by the Administrators in a written notice to the
Institutional Trustee.

          (b) As a condition to the payment of any principal of or interest on the
Securities without the imposition of withholding tax, the Administrators shall require the
previous delivery of properly completed and signed applicable U.S. federal income tax
certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor form)
in the case of a person that is a “United States person” within the meaning of Section 7701(a)(30)
of the Code or an Internal Revenue Service Form W-8 (or applicable successor form) in the case
of a person that is not a “United States person” within the meaning of Section 7701(a)(30) of the
Code, and any other certification acceptable to it to enable the Institutional Trustee or any
Paying
Agent to determine their respective duties and liabilities with respect to any taxes or other
charges that they may be required to pay, deduct or withhold in respect of such Securities.

ARTICLE VI

ISSUANCE OF SECURITIES

     SECTION 6.1. General Provisions Regarding Securities.

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

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

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Securities. A Common Security need not be so authenticated and shall be valid upon execution
by one or more Administrators.

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

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

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

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

          (a) The Trust shall maintain in New York, New York, an office or agency
where the Securities may be presented for payment (the “Paying Agent”), and an office or
agency where Securities may be presented for registration of transfer or exchange (the “Transfer
Agent”). The Trustee hereby appoints the Institutional Trustee as Paying Agent and Transfer
Agent at U.S. Bank National Association, 100 Wall Street, 19th Floor, New York, New York
10005, Attn: Corporate Trust Services — County Statutory Trust III. The Trust shall also keep or
cause to be kept a register for the purpose of registering Securities and transfers and exchanges
of Securities, such register to be held by a registrar (the “Registrar”). The Administrators may
appoint the Paying Agent, the Registrar and the Transfer Agent, and may appoint one or more
additional Paying Agents, one or more co-Registrars, or one or more co-Transfer Agents in such
other locations as it shall determine. The term “Paying Agent” includes any additional Paying
Agent, the term “Registrar” includes any additional Registrar or co-Registrar and the term
“Transfer Agent” includes any additional Transfer Agent or co-Transfer Agent. The
Administrators may change any Paying Agent, Transfer Agent or Registrar at any time without
prior notice to any Holder. The Administrators shall notify the Institutional Trustee of the name
and address of any Paying Agent, Transfer Agent and Registrar not a party to this Declaration.
The Administrators hereby initially appoint the Institutional Trustee to act as Registrar for the
Capital Securities and the Common Securities at its Corporate Trust Office. The Institutional
Trustee or any of its Affiliates in the United States may act as Paying Agent, Transfer Agent or
Registrar.

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

     SECTION 6.3. Form and Dating.

          (a) The Capital Securities and the Institutional Trustee’s certificate of
authentication thereon shall be substantially in the form of Exhibit A-l, and the Common
Securities shall be substantially in the form of Exhibit A-2, each of which is hereby incorporated
in and expressly made a part of this Declaration. Certificates may be typed, printed, lithographed

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

          (b) The Capital Securities sold by the Trust to the initial purchasers pursuant
to the Placement Agreement and the Capital Securities Purchase Agreements shall be issued in
definitive form, registered in the name of the Holder thereof, without coupons and with the
Restricted Securities Legend.

     SECTION 6.4. Mutilated, Destroyed, Lost or Stolen Certificates. If: (a) any mutilated
Certificates should be surrendered to the Registrar, or if the Registrar shall receive evidence to
its
satisfaction of the destruction, loss or theft of any Certificate; and (b) there shall be delivered
to
the Registrar, the Administrators and the Institutional Trustee such security or indemnity as may
be required by them to hold each of them harmless; then, in the absence of notice that such
Certificate shall have been acquired by a bona fide purchaser, an Administrator on behalf of the
Trust shall execute (and in the case of a Capital Security Certificate, the Institutional Trustee
shall authenticate) and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or
stolen Certificate, a new Certificate of like denomination. In connection with the issuance of any
new Certificate under this Section 6.4, the Registrar or the Administrators may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection therewith. Any duplicate Certificate issued pursuant to this Section shall constitute
conclusive evidence of an ownership interest in the relevant Securities, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any time.

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

     SECTION 6.6. Cancellation. The Administrators at any time may deliver Securities to
the Registrar for cancellation. The Registrar shall forward to the Institutional Trustee any
Securities surrendered to it for registration of transfer, redemption or payment. The Institutional
Trustee shall promptly cancel all Securities surrendered for registration of transfer, payment,
replacement or cancellation and shall dispose of such canceled Securities in accordance with its

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standard procedures or otherwise as the Administrators direct. The Administrators may not issue
new Securities to replace Securities that have been paid or that have been delivered to the
Institutional Trustee for cancellation.

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

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

          (b) For so long as any Capital Securities remain outstanding, if, upon an
Indenture Event of Default under Section 5.01(c), (e) or (f) of the Indenture, the Debenture
Trustee fails or the holders of not less than 25% in principal amount of the outstanding
Debentures fail to declare the principal of all of the Debentures to be immediately due and
payable, the Holders of not less than a Majority in liquidation amount of the Capital Securities
then outstanding shall have the right to make such declaration by a notice in writing to the
Institutional Trustee, the Sponsor and the Debenture Trustee.

          (c) Upon an Indenture Event of Default under Sections 5.01(c), (e) or (f) at
any time after a declaration of acceleration of maturity of the Debentures has been made and
before a judgment or decree for payment of the money due has been obtained by the Debenture
Trustee as provided in the Indenture, if the Institutional Trustee, subject to the provisions
hereof,
fails to annul any such declaration and waive such default, the Holders of not less than a
Majority in liquidation amount of the Capital Securities, by written notice to the Institutional
Trustee, the Sponsor and the Debenture Trustee, may rescind and annul such declaration and its
consequences if:

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

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

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

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

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

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

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

          (e) Upon receipt by the Institutional Trustee of written notice declaring such
an acceleration, or rescission and annulment thereof, by Holders of any part of the Capital
Securities, a record date shall be established for determining Holders of outstanding Capital
Securities entitled to join in such notice, which record date shall be at the close of business on
the day the Institutional Trustee receives such notice. The Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to join in such notice, whether
or not such Holders remain Holders after such record date; provided, that, unless such
declaration of acceleration, or rescission and annulment, as the case may be, shall have become
effective by virtue of the requisite percentage having joined in such notice prior to the day that
is
90 days after such record date, such notice of declaration of acceleration, or rescission and
annulment, as the case may be, shall automatically and without further action by any Holder be
canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of
a Holder, from giving, after expiration of such 90-day period, a new written notice of declaration
of acceleration, or rescission and annulment thereof, as the case may be, that is identical to a
written notice that has been canceled pursuant to the proviso to the preceding sentence, in which
event a new record date shall be established pursuant to the provisions of this Section 6.7.

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

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ARTICLE VII

DISSOLUTION AND TERMINATION OF TRUST

     SECTION 7.1. Dissolution and Termination of Trust.

          (a) The Trust shall dissolve on the first to occur of

     (i) unless earlier dissolved, on September 15, 2041, the expiration of
the term of the Trust;

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

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

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

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

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

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

          (b) As soon as is practicable after the occurrence of an event referred to in
Section 7.1(a), and after satisfaction of liabilities to creditors of the Trust as required by
applicable law, and subject to the terms set forth in Annex I, the Institutional Trustee, when
notified in writing of the completion of the winding up of the Trust in accordance with the
Statutory Trust Act, shall terminate the Trust by filing, at the expense of the Sponsor, a
certificate of cancellation with the Secretary of State of the State of Connecticut in accordance
with Section 34-503 of the Statutory Trust Act.

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

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ARTICLE VIII

TRANSFER OF INTERESTS

     SECTION 8.1. General.

          (a) Subject to Section 6.4 and Section 8.1(c), when Capital Securities are
presented to the Registrar with a request to register a transfer or to exchange them for an equal
number of Capital Securities represented by different Certificates, the Registrar shall register
the
transfer or make the exchange if the requirements provided for herein for such transactions are
met. To permit registrations of transfers and exchanges, the Trust shall issue and the
Institutional
Trustee shall authenticate Capital Securities at the Registrar’s request.

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

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

          (d) The Registrar shall provide for the registration of Securities and of
transfers of Securities, which will be effected without charge but only upon payment (with such
indemnity as the Registrar may require) in respect of any tax or other governmental charges that
may be imposed in relation to it. Upon surrender for registration of transfer of any Securities,
the
Registrar shall cause one or more new Securities to be issued in the name of the designated
transferee or transferees. Any Security issued upon any registration of transfer or exchange
pursuant to the terms of this Declaration shall evidence the same Security and shall be entitled to
the same benefits under this Declaration as the Security surrendered upon such registration of
transfer or exchange. Every Security surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the Registrar duly
executed by the Holder or such Holder’s attorney duly authorized in writing. Each Security
surrendered for registration of transfer shall be canceled by the Institutional Trustee pursuant to
Section 6. A transferee of a Security shall be entitled to the rights and subject to the
obligations
of a Holder hereunder upon the receipt by such transferee of a Security. By acceptance of a
Security, each transferee shall be deemed to have agreed to be bound by this Declaration.

          (e) Neither the Trust nor the Registrar shall be required (i) to issue, register
the transfer of, or exchange any Securities during a period beginning at the opening of business
15 days before the day of any selection of Securities for redemption and ending at the close of
business on the earliest date on which the relevant notice of redemption is deemed to have been

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given to all Holders of the Securities to be redeemed, or (ii) to register the transfer or exchange
of any Security so selected for redemption in whole or in part, except the unredeemed portion of
any Security being redeemed in part.

     SECTION 8.2. Transfer Procedures and Restrictions.

          (a) The Capital Securities shall bear the Restricted Securities Legend (as
defined below), which shall not be removed unless there is delivered to the Trust such
satisfactory evidence, which may include an opinion of counsel reasonably acceptable to the
Administrators and the Institutional Trustee, as may be reasonably required by the Trust or the
Institutional Trustee, that neither the legend nor the restrictions on transfer set forth therein
are
required to ensure that transfers thereof comply with the provisions of the Securities Act or that
such Securities are not “restricted” within the meaning of Rule 144 under the Securities Act.
Upon provision of such satisfactory evidence, the Institutional Trustee, at the written direction
of
the Administrators, shall authenticate and deliver Capital Securities that do not bear the
Restricted Securities Legend (other than the legend contemplated by Section 8.2(c)).

          (b) When Capital Securities are presented to the Registrar (x) to register the
transfer of such Capital Securities, or (y) to exchange such Capital Securities for an equal
number of Capital Securities represented by different Certificates, the Registrar shall register
the
transfer or make the exchange as requested if its reasonable requirements for such transaction are
met; provided, however, that the Capital Securities surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Administrators, the Institutional Trustee and the Registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing.

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

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

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

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

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

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

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

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

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

          (f) Neither the Institutional Trustee nor the Registrar shall be responsible for
ascertaining whether any transfer hereunder complies with the registration provisions of or any
exemptions from the Securities Act, applicable state securities laws or the applicable laws of any
other jurisdiction, ERISA, the Code or the Investment Company Act.

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     SECTION 8.3. Deemed Security Holders.

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

ARTICLE IX

LIMITATION OF LIABILITY OF HOLDERS

OF SECURITIES, TRUSTEES OR OTHERS

     SECTION 9.1. Liability.

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

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

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

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

          (c) Except to the extent provided in Section 9. l(b), and pursuant to § 34-
523(a) of the Statutory Trust Act, the Holders of the Securities shall be entitled to the same
limitation of personal liability extended to stockholders of private corporations for profit
organized under the Connecticut Business Corporation Act, Chapter 601 of the Connecticut
General Statutes, Section 33-600 et se~, except as otherwise specifically set forth herein.

     SECTION 9.2. Exculpation.

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

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shall be liable for any such loss, damage or claim incurred by reason of such Administrator’s
gross negligence or willful misconduct or bad faith with respect to such acts or omissions.

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

          (c) It is expressly understood and agreed by the parties hereto that insofar as
any document, agreement or certificate is executed on behalf of the Trust by any Trustee (i) such
document, agreement or certificate is executed and delivered by such Trustee, not in its
individual capacity, but solely as Trustee under this Declaration in the exercise of the powers and
authority conferred and vested in it, (ii) each of the representations, undertakings and agreements
made on the part of the Trust is made and intended not as representations, warranties, covenants,
undertakings and agreements by any Trustee in its individual capacity, but is made and intended
for the purpose of binding only the Trust and (iii) under no circumstances shall any Trustee in its
individual capacity be personally liable for the payment of any indebtedness or expenses of the
Trust or be liable for the breach or failure of any obligation, representation, warranty or
covenant
made or undertaken by the Trust under this Declaration or any other document, agreement or
certificate.

     SECTION 9.3. Fiduciary Duty.

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

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

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

     (ii) in its “good faith” or under another express standard, the
Indemnified Person shall act under such express standard and shall not be subject

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to any other or different standard imposed by this Declaration or by applicable
law.

     SECTION 9.4. Indemnification.

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

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

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

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

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

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

          (c) The indemnification and advancement of expenses provided by, or granted
pursuant to, the other paragraphs of this Section 9.4 shall not be deemed exclusive of any other
rights to which those seeking indemnification and advancement of expenses may be entitled
under any agreement, vote of stockholders or disinterested directors of the Sponsor or Capital
Security Holders of the Trust or otherwise, both as to action in such Person’s official capacity
and as to action in another capacity while holding such office. All rights to indemnification under
this Section 9.4 shall be deemed to be provided by a contract between the Sponsor and each
Indemnified Person who serves in such capacity at any time while this Section 9.4 is in effect.
Any repeal or modification of this Section 9.4 shall not affect any rights or obligations then
existing.

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

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

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

          (g) The provisions of this Section 9.4 shall survive the termination of this
Declaration or the earlier resignation or removal of the Institutional Trustee. The obligations of
the Sponsor under this Section 9.4 to compensate and indemnify the Trustees and to pay or
reimburse the Trustees for expenses, disbursements and advances shall constitute additional

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indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that of
the Securities upon all property and funds held or collected by the Trustees as such, except funds
held in trust for the benefit of the holders of particular Capital Securities, provided, that the
Sponsor is the holder of the Common Securities.

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

     SECTION 9.6. Compensation; Fee.

          (a) Subject to the provisions set forth in the Fee Agreement between the
Institutional Trustee, Cohen Bros. & Company and the Company of even date herewith, the
Sponsor agrees:

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

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

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

ARTICLE X

ACCOUNTING

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

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     SECTION 10.2. Certain Accounting Matters.

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

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

          (c) The Administrators shall cause to be duly prepared and delivered to each
of the Holders of Securities Form 1099 or such other annual United States federal income tax  ̄
information statement required by the Code, containing such information with regard to the
Securities held by each Holder as is required by the Code and the Treasury Regulations.
Notwithstanding any right under the Code to deliver any such statement at a later date, the
Administrators shall endeavor to deliver all such statements within 30 days after the end of each
Fiscal Year of the Trust.

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

          (e) The Administrators will cause the Sponsor’s regulatory reports to be
delivered to the Holder promptly following their filing with the Federal Reserve.

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

     SECTION 10.4. Withholding. The Institutional Trustee or any Paying Agent and the
Administrators shall comply with all withholding requirements under United States federal, state
and local law. As a condition to the payment of any principal of or interest on any Debt Security
without the imposition of withholding tax, the Institutional Trustee or any Paying Agent shall
require the previous delivery of properly completed and signed applicable U.S. federal income

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tax certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor
form) in the case of a person that is a “United States person” within the meaning of Section
7701(a)(30) of the Code or an Internal Revenue Service Form W-8 (or applicable successor
form) in the case of a person that is not a “United States person” within the meaning of Section
7701(a)(30) of the Code) and any other certification acceptable to it to enable the Institutional
Trustee or any Paying Agent and the Trustee to determine their respective duties and liabilities
with respect to any taxes or other charges that they may be required to pay, deduct or withhold in
respect of such Debt Security or the holder of such Debt Security under any present or future law
or regulation of the United States or any political subdivision thereof or taxing authority therein
or to comply with any reporting or other requirements under any such law or regulation. The
Administrators shall file required forms with applicable jurisdictions and, unless an exemption
from withholding is properly established by a Holder, shall remit amounts withheld with respect
to the Holder to applicable jurisdictions. To the extent that the Institutional Trustee or any
Paying
Agent is required to withhold and pay over any amounts to any authority with respect to
distributions or allocations to any Holder, the amount withheld shall be deemed to be a
Distribution to the Holder in the amount of the withholding. In the event of any claimed
overwithholding, Holders shall be limited to an action against the applicable jurisdiction. If the
amount required to be withheld was not withheld from actual Distributions made, .the
Institutional Trustee or any Paying Agent may reduce subsequent Distributions by the amount of
such withholding.

ARTICLE XI

AMENDMENTS AND MEETINGS

     SECTION 11.1. Amendments.

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

     (i) the Institutional Trustee,

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

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

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

     (i) unless the Institutional Trustee shall have first received

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

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

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

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

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

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

     (D) cause the Debenture Issuer to be unable to treat an amount
equal to the Liquidation Amount of the Capital Securities as “Tier 1
Capital” for purposes of the capital adequacy guidelines of (x) the Federal
Reserve (or, if the Debenture Issuer is not a bank holding company, such
guidelines or policies applied to the Debenture Issuer as if the Debenture
Issuer were subject to such guidelines of policies) or of (y)any other
regulatory authority having jurisdiction over the Debenture Issuer.

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

          (d) In addition to and notwithstanding any other provision in this Declaration,
without the consent of each affected Holder, this Declaration may not be amended to (i) change
the amount or timing of any Distribution on the Securities or any redemption or liquidation
provisions applicable to the Securities or otherwise adversely affect the amount of any
Distribution required to be made in respect of the Securities as of a specified date or (ii)
restrict the right of a Holder to institute suit for the enforcement of any such payment on or after such
date.

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

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

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          (g) Subject to Section ll.l(a), this Declaration may be amended by the
Institutional Trustee and the Holder of a Majority in liquidation amount of the Common
Securities without the consent of the Holders of the Capital Securities to:

     (i) cure any ambiguity;

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

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

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

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

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

          (a) Meetings of the Holders of any class of Securities may be called at any
time by the Administrators (or as provided in the terms of the Securities) to consider and act on
any matter on which Holders of such class of Securities are entitled to act under the terms of this
Declaration, the terms of the Securities or the rules of any stock exchange on which the Capital
Securities are listed or admitted for trading, if any. The Administrators shall call a meeting of
the
Holders of such class if directed to do so by the Holders of not less than 10% in liquidation
amount of such class of Securities. Such direction shall be given by delivering to the
Administrators one or more notices in a writing stating that the signing Holders of the Securities
wish to call a meeting and indicating the general or specific purpose for which the meeting is to
be called. Any Holders of the Securities calling a meeting shall specify in writing the
Certificates
held by the Holders of the Securities exercising the right to call a meeting and only those
Securities represented by such Certificates shall be counted for purposes of determining whether
the required percentage set forth in the second sentence of this paragraph has been met.

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

     (i) notice of any such meeting shall be given to all the Holders of the
Securities having a right to vote thereat at least 7 days and not more than 60 days
before the date of such meeting. Whenever a vote, consent or approval of the

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

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

     (iii) unless the Statutory Trust Act, this Declaration, the terms of the
Securities, the Trust Indenture Act or the listing rules of any stock exchange on
which the Capital Securities are then listed for trading, if any, otherwise provides,
the Administrators, in their sole discretion, shall establish all other provisions
relating to meetings of Holders of Securities, including notice of the time, place or
purpose of any meeting at which any matter is to be voted on by any Holders of
the Securities, waiver of any such notice, action by consent without a meeting, the
establishment of a record date, quorum requirements, voting in person or by proxy
or any other matter with respect to the exercise of any such right to vote;
provided, however, that each meeting shall be conducted in the United States (as
that term is defined in Treasury Regulations § 301.7701-7).

ARTICLE XII

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE

     SECTION 12.1. Representations and Warranties of Institutional Trustee. The Trustee
that acts as initial Institutional Trustee represents and warrants to the Trust and to the Sponsor
at
the date of this Declaration, and each Successor Institutional Trustee represents and warrants to

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the Trust and the Sponsor at the time of the Successor Institutional Trustee’s acceptance of its
appointment as Institutional Trustee, that:

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

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

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

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

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

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

ARTICLE XIII

MISCELLANEOUS

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

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

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County Statutory Trust III

c/o Capital Corp of the West

550 West Main Street

Merced, California 95340

Attention: Janey Cabral

Telecopy: (209) 725-2277

Telephone: (209) 725-2205

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

U.S. Bank National Association

225 Asylum Street, 23rd Floor

Hartford, CT 06103

Attention: Corporate Trust Services

County Statutory Trust III

With a copy to:

U.S. Bank National Association

One Federal Street, 3rd Floor

Boston, MA 02110

Telecopy: (617) 603-6683

Telephone: (617) 603-6549

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

Capital Corp of the West

550 West Main Street

Merced, California 95340

Attention: Janey Cabral

Telecopy: (209) 725-2277

Telephone: (209) 725-2205

          (d) 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.

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

     SECTION 13.3. Submission to Jurisdiction.

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

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

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

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

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

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

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

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

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

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Institutional Trustee

 	 
	 	By:  	/s/ Paul D. Allen
 	 
	 	 	Name:  	Paul D. Allen 	 
	 	 	Title:  	Vice President 	 
	 
	 	CAPITAL CORP OF THE WEST,

as Sponsor

 	 
	 	By:  	/s/ Thomas Hawken
 	 
	 	 	Name:  	Thomas Hawken 	 
	 	 	Title:  	President/CEO 	 
	 
	 	 	 
	 	By:  	                                    /s/ David Curtis
 	 
	 	 	Name:  	David Curtis 	 
	 	 	Administrator 	 
	 
	 	 	 
	 	By:  	                                    /s/ Janey Cabral
 	 
	 	 	Name:  	Janey Cabral 	 
	 	 	Administrator 	 

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ANNEX I

TERMS OF

CAPITAL SECURITIES AND

COMMON SECURITIES

     Pursuant to Section 6.1 of the Amended and Restated Declaration of Trust, dated as of
June 23, 2006 (as amended from time to time, the “Declaration”), the designation, rights,
privileges, restrictions, preferences and other terms and provisions of the Capital Securities and
the Common Securities are set out below (each capitalized term used but not defined herein has
the meaning set forth in the Declaration):

     1. Designation and Number.

     (a) Capital Securities. 15,000 Capital Securities of County Statutory Trust III (the
“Trust”), with an aggregate stated liquidation amount with respect to the assets of the Trust of
Fifteen Million Dollars ($15,000,000) and a stated liquidation amount with respect to the assets
of the Trust of $1,000 per Capital Security, are hereby designated for the purposes of
identification only as the “TP Securities” (the “Capital Securities”). The Capital Security
Certificates evidencing the Capital Securities shall be substantially in the form of Exhibit A-1 to
the Declaration, with such changes and additions thereto or deletions therefrom as may be
required by ordinary usage, custom or practice or to conform to the rules of any stock exchange
on which the Capital Securities are listed, if any.

     (b) Common Securities. 464 Common Securities of the Trust (the “Common
Securities”) will be evidenced by Common Security Certificates substantially in the form of
Exhibit A-2 to the Declaration, with such changes and additions thereto or deletions therefrom as
may be required by ordinary usage, custom or practice. In the absence of an Event of Default, the
Common Securities will have an aggregate stated liquidation amount with respect to the assets of
the Trust of Four Hundred Sixty Four Thousand Dollars ($464,000) and a stated liquidation
amount with respect to the assets of the Trust of $1,000 per Common Security.

     2. Distributions.

     (a) Distributions payable on each Security will be payable at a variable per annum
rate of interest, reset quarterly, equal to LIBOR, as determined on the LIBOR Determination
Date for such Distribution Payment Period, plus 1.59% (the “Coupon Rate”) of the stated
liquidation amount of $1,000 per Security (provided, however, that the Coupon Rate for any
Distribution Payment Period may not exceed the highest rate permitted by New York law, as the
same may be modified by United States law of general applicability), such Coupon Rate being
the rate of interest payable on the Debentures to be held by the Institutional Trustee. Except as
set forth below in respect of an Extension Period, Distributions in arrears for more than one
quarterly period will bear interest thereon compounded quarterly at the applicable Coupon Rate
for each such quarterly period (to the extent permitted by applicable law). The term
“Distributions” as used herein includes cash distributions, any such compounded distributions
and any Additional Interest payable on the Debentures unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures held by the

A-I-1

 

Institutional Trustee and to the extent the Institutional Trustee has funds legally available in
the Property Account therefor. The amount of Distributions payable for any Distribution Payment
Period will be computed for any full quarterly Distribution Payment Period on the basis of a 360-
day year and the actual number of days elapsed in the relevant Distribution period; provided,
however, that upon the occurrence of a Special Event redemption pursuant to paragraph 4(a)
below the amounts payable pursuant to this Declaration shall be calculated as set forth in the
definition of Special Redemption Price.

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

     (1) On the second LIBOR Business Day (provided, that on such day
commercial banks are open for business (including dealings in foreign currency
deposits) in London (a “LIBOR Banking Day”), and otherwise the next preceding
LIBOR Business Day that is also a LIBOR Banking Day) prior to March 15, June
15, September 15 and December 15 (or, with respect to the first Distribution
Payment Period, on June 21, 2006), (each such day, a “LIBOR Determination
Date”) for such Distribution Payment Period), the Calculation Agent shall obtain
the rate for three-month U.S. Dollar deposits in Europe, which appears on
Telerate Page 3750 (as defined in the International Swaps and Derivatives
Association, Inc. 2000 Interest Rate and Currency Exchange Definitions) or such
other page as may replace such Telerate Page 3750 on the Moneyline Telerate,
Inc. service (or such other service or services as may be nominated by the British
Banker’s Association as the information vendor for the purpose of displaying
London interbank offered rates for U.S. dollar deposits), as of 11:00 a.m. (London
time) on such LIBOR Determination Date, and the rate so obtained shall be
LIBOR for such Distribution Payment Period. “LIBOR Business Day” means any
day that is not a Saturday, Sunday or other day on which commercial banking
institutions in The City of New York or Boston, Massachusetts are authorized or
obligated by law or executive order to be closed. If such rate is superseded on
Telerate Page 3750 by a corrected rate before 12:00 noon (London time) on the
same LIBOR Determination Date, the corrected rate as so substituted will be the
applicable LIBOR for that Distribution Payment Period.

     (2) If, on any LIBOR Determination Date, such rate does not appear
on Telerate Page 3750 or such other page as may replace such Telerate Page 3750
on the Moneyline Telerate, Inc. service (or such other service or services as may
be nominated by the British Banker’s Association as the information vendor for
the purpose of displaying London interbank offered rates for U.S. dollar deposits),
the Calculation Agent shall determine the arithmetic mean of the offered
quotations of the Reference Banks (as defined below) to leading banks in the
London Interbank market for three-month U.S. Dollar deposits in Europe (in an
amount determined by the Calculation Agent) by reference to requests for
quotations as of approximately 11:00 a.m. (London time) on the LIBOR
Determination Date made by the Calculation Agent to the Reference Banks. If, on
any LIBOR Determination Date, at least two of the Reference Banks provide such
quotations, LIBOR shall equal the arithmetic mean of such quotations. If, on any

A-I-2

 

LIBOR Determination Date, only one or none of the Reference Banks provide
such a quotation, LIBOR shall be deemed to be the arithmetic mean of the offered
quotations that at least two leading banks in the City of New York (as selected by
the Calculation Agent) are quoting on the relevant LIBOR Determination Date for
three-month U.S. Dollar deposits in Europe at approximately 11:00 a.m. (London
time) (in an amount determined by the Calculation Agent). As used herein,
“Reference Banks” means four major banks in the London Interbank market
selected by the Calculation Agent.

     (3) If the Calculation Agent is required but is unable to determine a
rate in accordance with at least one of the procedures provided above, LIBOR for
the applicable Distribution Payment Period shall be LIBOR in effect for the
immediately preceding Distribution Payment Period.

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

     (d) As soon as practicable following each LIBOR Determination Date, but in no
event later than the 30th day following such LIBOR Determination, the Calculation Agent shall
notify, in writing, the Sponsor and the Paying Agent of the applicable Coupon Rate in effect for
the related Distribution Payment Period. The Calculation Agent shall, upon the request of the
Holder of any Securities, provide the Coupon Rate then in effect. All calculations made by the
Calculation Agent in the absence of manifest error shall be conclusive for all purposes and
binding on the Sponsor and the Holders of the Securities. Any error in a calculation of the
Coupon Rate by the Calculation Agent may be corrected at any time by the delivery of notice of
such corrected Coupon Rate as provided above. The Paying Agent shall be entitled to rely on
information received from the Calculation Agent or the Sponsor as to the Coupon Rate. The
Sponsor shall, from time to time, provide any necessary information to the Paying Agent relating
to any original issue discount and interest on the Securities that is included in any payment and
reportable for taxable income calculation purposes. Failure to notify the Company or the Paying
Agent of the applicable Coupon Rate shall not affect the obligation of the Company to make
payment on the Debentures at such Coupon Rate.

     (e) Distributions on the Securities will be cumulative, will accrue from the date of
original issuance, and will be payable, subject to extension of Distribution payment periods as
described herein, quarterly in arrears on March 15, June 15, September 15 and December 15 of
each year, commencing September 15, 2006 (each, a “Distribution Payment Date”). Subject to
prior submission of Notice (as defined in the Indenture), and so long as no Event of Default
pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred and is
continuing, the Debenture Issuer has the right under the Indenture to defer payments of interest
on the Debentures by extending the interest distribution period for up to 20 consecutive quarterly
periods (each, an “Extension Period”) at any time and from time to time on the Debentures,
subject to the conditions described below, during which Extension Period no interest shall be due
and payable (except any Additional Interest that may be due and payable). During any Extension

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Period, interest will continue to accrue on the Debentures, and interest on such accrued interest
(such accrued interest and interest thereon referred to herein as “Deferred Interest”) will accrue
at
an annual rate equal to the Coupon Rate in effect for each such Extension Period, compounded
quarterly from the date such Deferred Interest would have been payable were it not for the
Extension Period, to the extent permitted by law. No Extension Period may end on a date other
than a Distribution Payment Date. At the end of any such Extension Period, the Debenture
Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures; provided,
however, that no Extension Period may extend beyond the Maturity Date, Redemption Date (to
the extent redeemed) or Special Redemption Date; and provided, further, that, during any such
Extension Period, the Debenture Issuer may not (i) declare or pay any dividends or distributions
on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the
Debenture Issuer’s capital stock or (ii) make any payment of principal or premium or interest on
or repay, repurchase or redeem any debt securities of the Debenture Issuer that rank pari passu in
all respects with or junior in interest to the Debentures or (iii) make any payment under any
guarantees of the Debenture Issuer that rank in all respects pari passu with or junior in interest
to
the Guarantee (other than (a) repurchases, redemptions or other acquisitions of shares of capital
stock of the Debenture Issuer (A) in connection with any employment contract, benefit plan or
other similar arrangement with or for the benefit of one or more employees, officers, directors or
consultants, (B) in connection with a dividend reinvestment or stockholder stock purchase plan
or (C) in connection with the issuance of capital stock of the Debenture Issuer (or securities
convertible into or exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a result of any exchange,
reclassification, combination or conversion of any class or series of the Debenture Issuer’s
capital
stock (or any capital stock of a subsidiary of the Debenture Issuer) for any class or series of the
Debenture Issuer’s capital stock or of any class or series of the Debenture Issuer’s indebtedness
for any class or series of the Debenture Issuer’s capital stock, (c) the purchase of fractional
interests in shares of the Debenture Issuer’s capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged, (d) any declaration
of a dividend in connection with any stockholder’s rights plan, or the issuance of rights, stock or
other property under any stockholder’s rights plan, or the redemption or repurchase of rights
pursuant thereto, or (e) any dividend in the form of stock, warrants, options or other rights where
the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is
the same stock as that on which the dividend is being paid or ranks pari passu with or junior to
such stock). Prior to the termination of any Extension Period, the Debenture Issuer may further
extend such period; provided, that such period together with all such previous and further
consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend
beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption
Date. Upon the termination of any Extension Period and upon the payment of all Deferred
Interest, the Debenture Issuer may commence a new Extension Period, subject to the foregoing
requirements. No interest or Deferred Interest shall be due and payable during an Extension
Period, except at the end thereof, but Deferred Interest shall accrue upon each installment of
interest that would otherwise have been due and payable during such Extension Period until such
installment is paid. If Distributions are deferred, the Distributions due shall be paid on the date
that the related Extension Period terminates to Holders of the Securities as they appear on the
books and records of the Trust on the record date immediately preceding such date. Distributions
on the Securities must be paid on the dates payable (after giving effect to any Extension Period)

A-I-4

 

to the extent that the Trust has funds legally available for the payment of such distributions in
the
Property Account of the Trust. The Trust’s funds available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture Issuer. The payment of
Distributions out of moneys held by the Trust is guaranteed by the Guarantor pursuant to the
Guarantee.

     (f) Distributions on the Securities will be payable to the Holders thereof as they
appear on the books and records of the Registrar on the relevant record dates. The relevant
record dates shall be 15 days before the relevant Distribution Payment Date. Distributions
payable on any Securities that are not punctually paid on any Distribution Payment Date, as a
result of the Debenture Issuer having failed to make a payment under the Debentures, as the case
may be, when due (taking into account any Extension Period), will cease to be payable to the
Person in whose name such Securities are registered on the relevant record date, and such
defaulted Distribution will instead be payable to the Person in whose name such Securities are
registered on the special record date or other specified date determined in accordance with the
Indenture. Notwithstanding anything to the contrary contained herein, if any Distribution
Payment Date, other than on the Maturity Date, any Redemption Date or the Special Redemption
Date, falls on a day that is not a Business Day, then any Distributions payable will be paid on,
and such Distribution Payment Date will be moved to, the next succeeding Business Day, and
additional Distributions will accrue for each day that such payment is delayed as a result thereof.
If the Maturity Date, Redemption Date or Special Redemption Date falls on a day that is not a
Business Day, then the principal, premium, if any, and/or Distributions payable on such date will
be paid on the next preceding Business Day (except that, if such Business Day falls in the next
calendar year, such payment will be made on the immediately preceding Business Day).

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

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

     The Sponsor, as the Holder of all of the Common Securities, has the right at any time to,
upon receipt of an opinion of nationally recognized tax counsel that Holders will not recognize
any gain or loss for United States federal income tax purposes as a result of the distribution

A-I-5

 

Debentures, dissolve the Trust (including without limitation upon the occurrence of a Tax Event,
an Investment Company Event or a Capital Treatment Event), subject to the receipt by the
Debenture Issuer of prior approval from any regulatory authority having jurisdiction over the
Sponsor that is primarily responsible for regulating the activities of the Sponsor if such approval
is then required under applicable capital guidelines or policies of such regulatory authority, and,
after satisfaction of liabilities to creditors of the Trust, cause the Debentures to be distributed
to
the Holders of the Securities on a Pro Rata basis in accordance with the aggregate stated
liquidation amount thereof.

     The Trust shall dissolve on the first to occur of (i) September 15, 2041, the expiration of
the term of the Trust, (ii) a Bankruptcy Event with respect to the Sponsor, the Trust or the
Debenture Issuer, (iii) (other than in connection with a merger, consolidation or similar
transaction not prohibited by the Indenture, this Declaration or the Guarantee, as the case may
be) the filing of a certificate of dissolution or its equivalent with respect to the Sponsor or
upon
the revocation of the charter of the Sponsor and the expiration of 90 days after the date of
revocation without a reinstatement thereof, (iv) the distribution to the Holders of the Securities
of
the Debentures, upon exercise of the right of the Holder of all of the outstanding Common
Securities to dissolve the Trust as described above, (v) the entry of a decree of a judicial
dissolution of the Sponsor or the Trust, or (vi) when all of the Securities shall have been called
for redemption and the amounts necessary for redemption thereof shall have been paid to the
Holders in accordance with the terms of the Securities. As soon as practicable after the
dissolution of the Trust and upon completion of the winding up of the Trust, the Trust shall
terminate upon the filing of a certificate of cancellation with the Secretary of State of the State
of
Connecticut.

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

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

A-I-6

 

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

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

     4. Redemption and Distribution.

     (a) The Debentures will mature on September 15, 2036. The Debentures may be
redeemed by the Debenture Issuer, in whole or in part, on any March 15, June 15, September 15
or December 15 on or after September 15, 2011 at the Redemption Price, upon not less than 30
nor more than 60 days’ notice to Holders of such Debentures. In addition, upon the occurrence
and continuation of a Tax Event, an Investment Company Event or a Capital Treatment Event,
the Debentures may be redeemed by the Debenture Issuer in whole or in part, at any time within
90 days following the occurrence of such Tax Event, Investment Company Event or Capital
Treatment Event, as the case may be (the “Special Redemption Date”), at the Special
Redemption Price, upon not less than 30 nor more than 60 days’ notice to Holders of the
Debentures so long as such Tax Event, Investment Company Event or Capital Treatment Event,
as the case may be, is continuing. In each case, the right of the Debenture Issuer to redeem the
Debentures is subject to the Debenture Issuer having received prior approval from any regulatory
authority having jurisdiction over the Debenture Issuer, if such approval is then required under
applicable capital guidelines or policies of such regulatory authority.

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

A-I-7

 

of the date of such opinion, subject to United States federal income tax with respect to income
received or accrued on the Debentures; (ii) if the Debenture Issuer is organized and existing
under the laws of the United States or any state thereof or the District of Columbia, interest
payable by the Debenture Issuer on the Debentures is not, or within 90 days of the date of such
opinion, will not be, deductible by the Debenture Issuer, in whole or in part, for United States
federal income tax purposes; or (iii) the Trust is, or will be within 90 days of the date of such
opinion, subject to more than a de minimis amount of other taxes (including withholding taxes),
duties, assessments or other governmental charges.

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

     “Capital Treatment Event” means, if the Debenture Issuer is organized and existing under
the laws of the United States or any state thereof or the District of Columbia, the receipt by the
Debenture Issuer and the Trust of an Opinion of Counsel experienced in such matters to the
effect that, as a result of (a) any amendment to, or change in, the laws, rules or regulations of
the
United States or any political subdivision thereof or therein, or any rules, guidelines or policies
of any applicable regulatory authority for the Debenture Issuer or (b) any official or
administrative pronouncement or action or decision interpreting or applying such laws, rules or
regulations, which amendment or change is effective or which pronouncement, action or decision
is announced on or after the date of original issuance of the Debentures, there is more than an
insubstantial risk that, within 90 days of the receipt of such opinion, the aggregate Liquidation
Amount of the Capital Securities will not be eligible to be treated by the Debenture Issuer as
“Tier 1 Capital” (or the then equivalent thereof) for purposes of the capital adequacy guidelines
of the Federal Reserve (or any successor regulatory authority with jurisdiction over bank or
financial holding companies), as then in effect and applicable to the Debenture Issuer (or if the
Debenture Issuer is not a bank holding company, such guidelines applied to the Debenture Issuer
as if the Debenture Issuer were subject to such guidelines); provided, however, that the inability
of the Debenture Issuer to treat all or any portion of the aggregate Liquidation Amount of the
Capital Securities as Tier 1 Capital shall not constitute the basis for a Capital Treatment Event,
if
such inability results from the Debenture Issuer having cumulative preferred stock, minority
interests in consolidated subsidiaries, or any other class of security or interest which the
Federal
Reserve or OTS, as applicable, may now or hereafter accord Tier 1 Capital treatment in excess of
the amount which may now or hereafter qualify for treatment as Tier 1 Capital under applicable
capital adequacy guidelines; provided further, however, that the distribution of the Debt
Securities in connection with the liquidation of the Trust by the Debenture Issuer shall not in and
of itself constitute a Capital Treatment Event unless such liquidation shall have occurred in
connection with a Tax Event or an Investment Company Event.

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

A-I-8

 

     “Special Redemption Price” means, with respect to the redemption of any Debentures
following a Special Event, an amount in cash equal to 103.525% of the principal amount of
Debentures to be redeemed prior to September 15, 2007 and thereafter equal to the percentage of
the principal amount of the Debentures that is specified below for the Special Redemption Date
plus, in each case, unpaid interest accrued thereon to the Special Redemption Date:

	 	 	 	 	 
	Special Redemption During the 12-Month Period Beginning September 15	 	Percentage of Principal Amount
	2007
	 	 	103.140	%
	2008
	 	 	102.355	%
	2009
	 	 	101.570	%
	2010
	 	 	100.785	%
	2011 and thereafter
	 	 	100.000	%

     “Redemption Date” means the date fixed for the redemption of Capital Securities, which
shall be any March 15, June 15, September 15 or December 15 on or after September 15, 2011.

     “Redemption Price” means 100% of the principal amount of the Debentures being
redeemed plus accrued and unpaid interest on such Debentures to the Redemption Date.

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

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

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

     (e) Redemption or Distribution Procedures.

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

A-I-9

 

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

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

     (iii) If the Securities are to be redeemed and the Trust gives a
Redemption/Distribution Notice, which notice may only be issued if the
Debentures are redeemed as set out in this Section 4 (which notice will be
irrevocable), then, provided, that the Institutional Trustee has a sufficient amount
of cash in connection with the related redemption or maturity of the Debentures,
the Institutional Trustee will, with respect to Book-Entry Capital Securities, on
the Redemption Date or Special Redemption Date, as applicable, irrevocably
deposit with the Depositary for such Book-Entry Capital Securities, to the extent
available therefor, funds sufficient to pay the relevant Redemption Price or
Special Redemption Price, as applicable, and will give such Depositary
irrevocable instructions and authority to pay the Redemption Price or Special
Redemption Price, as applicable, to the Owners of the Capital Securities. With
respect to Capital Securities that are not Book-Entry Capital Securities, the
Institutional Trustee will pay, to the extent available therefore, the relevant
Redemption Price or Special Redemption Price, as applicable, to the Holders of
such Securities by check mailed to the address of each such Holder appearing on
the books and records of the Trust on the redemption date. If a
Redemption/Distribution Notice shall have been given and funds deposited as
required, then immediately prior to the close of business on the date of such
deposit, Distributions will cease to accrue on the Securities so called for
redemption and all rights of Holders of such Securities so called for redemption
will cease, except the right of the Holders of such Securities to receive the
applicable Redemption Price or Special Redemption Price, as applicable,
specified in Section 4(a). If any date fixed for redemption of Securities is not a
Business Day, then payment of any such Redemption Price or Special
Redemption Price, as applicable, payable on such date will be made on the next
succeeding day that is a Business Day except that, if such Business Day falls in
the next calendar year, such payment will be made on the immediately preceding
Business Day, in each case with the same force and effect as if made on such date
fixed for redemption. If payment of the Redemption Price or Special Redemption
Price, as applicable, in respect of any Securities is improperly withheld or refused
and not paid either by the Trust or by the Debenture Issuer as guarantor pursuant
to the Guarantee, Distributions on such Securities will continue to accrue at the
then applicable rate from the original redemption date to the actual date of

A-I-10

 

payment, in which case the actual payment date will be considered the date fixed
for redemption for purposes of calculating the Redemption Price or Special
Redemption Price, as applicable. In the event of any redemption of the Capital
Securities issued by the Trust in part, the Trust shall not be required to (i) issue,
register the transfer of or exchange any Security during a period beginning at the
opening of business 15 days before any selection for redemption of the Capital
Securities and ending at the close of business on the earliest date on which the
relevant notice of redemption is deemed to have been given to all Holders of the
Capital Securities to be so redeemed, or (ii) register the transfer of or exchange
any Capital Securities so selected for redemption, in whole or in part, except for
the unredeemed portion of any Capital Securities being redeemed in part.

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

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

	 	5.	Voting Rights — Capital Securities.

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

     (b) Subject to the requirements of obtaining a tax opinion by the Institutional Trustee
in certain circumstances set forth in the last sentence of this paragraph, the Holders of a
Majority
in liquidation amount of the Capital Securities, voting separately as a class, have the right to
direct the time, method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee
under the Declaration, including the right to direct the Institutional Trustee, as holder of the
Debentures, to (i) exercise the remedies available under the Indenture as the holder of the
Debentures, (ii) waive any past default that is waivable under the Indenture, (iii) exercise any
right to rescind or annul a declaration that the principal of all the Debentures shall be due and
payable or (iv) consent on behalf of all the Holders of the Capital Securities to any amendment,
modification or termination of the Indenture or the Debentures where such consent shall be
required; provided, however, that, where a consent or action under the Indenture would require
the consent or act of the holders of greater than a simple majority in principal amount of
Debentures (a “Super Majority”) affected thereby, the Institutional Trustee may only give such
consent or take such action at the written direction of the Holders of not less than the proportion
in liquidation amount of the Capital Securities outstanding which the relevant Super Majority

A-I-11

 

 

represents of the aggregate principal amount of the Debentures outstanding. If the Institutional
Trustee fails to enforce its rights under the Debentures after the Holders of a Majority or Super
Majority, as the case may be, in liquidation amount of such Capital Securities have so directed
the Institutional Trustee, to the fullest extent permitted by law, a Holder of the Capital
Securities
may institute a legal proceeding directly against the Debenture Issuer to enforce the Institutional
Trustee’s rights under the Debentures without first instituting any legal proceeding against the
Institutional Trustee or any other person or entity. Notwithstanding the foregoing, if an Event of
Default has occurred and is continuing and such event is attributable to the failure of the
Debenture Issuer to pay interest or premium, if any, on or principal of the Debentures on the date
such interest, premium, if any, on or principal is payable (or in the case of redemption, the
redemption date), then a Holder of record of the Capital Securities may directly institute a
proceeding for enforcement of payment, on or after the respective due dates specified in the
Debentures, to such Holder directly of the principal of or premium, if any, or interest on the
Debentures having an aggregate principal amount equal to the aggregate liquidation amount of
the Capital Securities of such Holder. The Institutional Trustee shall notify all Holders of the
Capital Securities of any default actually known to the Institutional Trustee with respect to the
Debentures unless (x) such default has been cured prior to the giving of such notice or (y) the
Institutional Trustee determines in good faith that the withholding of such notice is in the
interest
of the Holders of such Capital Securities, except where the default relates to the payment of
principal of or interest on any of the Debentures. Such notice shall state that such Indenture
Event of Default also constitutes an Event of Default hereunder. Except with respect to directing
the time, method and place of conducting a proceeding for a remedy, the Institutional Trustee
shall not take any of the actions described in clause (i), (ii) or (iii) above unless the
Institutional
Trustee has obtained an opinion of tax counsel to the effect that, as a result of such action, the
Trust will not be classified as other than a grantor trust for United States federal income tax
purposes.

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

     A waiver of an Indenture Event of Default will constitute a waiver of the corresponding
Event of Default hereunder. Any required approval or direction of Holders of the Capital
Securities may be given at a separate meeting of Holders of the Capital Securities convened for
such purpose, at a meeting of all of the Holders of the Securities in the Trust or pursuant to
written consent. The Institutional Trustee will cause a notice of any meeting at which Holders of

A-I-12

 

 

the Capital Securities are entitled to vote, or of any matter upon which action by written consent
of such Holders is to be taken, to be mailed to each Holder of record of the Capital Securities.
Each such notice will include a statement setting forth the following information (i) the date of
such meeting or the date by which such action is to be taken, (ii) a description of any resolution
proposed for adoption at such meeting on which such Holders are entitled to vote or of such
matter upon which written consent is sought and (iii) instructions for the delivery of proxies or
consents. No vote or consent of the Holders of the Capital Securities will be required for the
Trust to redeem and cancel Capital Securities or to distribute the Debentures in accordance with
the Declaration and the terms of the Securities.

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

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

	 	6.	Voting Rights — Common Securities.

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

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

     (c) Subject to Section 6.7 of the Declaration and only after each Event of Default (if
any) with respect to the Capital Securities has been cured, waived or otherwise eliminated and
subject to the requirements of the second to last sentence of this paragraph, the Holders of a
Majority in liquidation amount of the Common Securities, voting separately as a class, may
direct the time, method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee
under the Declaration, including (i) directing the time, method, place of conducting any
proceeding for any remedy available to the Debenture Trustee, or exercising any trust or power
conferred on the Debenture Trustee with respect to the Debentures, (ii) waiving any past default
and its consequences that are waivable under the Indenture, or (iii) exercising any right to
rescind
or annul a declaration that the principal of all the Debentures shall be due and payable, provided,
however, that, where a consent or action under the Indenture would require a Super Majority, the
Institutional Trustee may only give such consent or take such action at the written direction of
the Holders of not less than the proportion in liquidation amount of the Common Securities
which the relevant Super Majority represents of the aggregate principal amount of the
Debentures outstanding. Notwithstanding this Section 6(c), the Institutional Trustee shall not
revoke any action previously authorized or approved by a vote or consent of the Holders of the

A-I-13

 

 

Capital Securities. Other than with respect to directing the time, method and place of conducting
any proceeding for any remedy available to the Institutional Trustee or the Debenture Trustee as
set forth above, the Institutional Trustee shall not take any action described in clause (i), (ii)
or (iii) above, unless the Institutional Trustee has obtained an opinion of tax counsel to the effect
that for the purposes of United States federal income tax the Trust will not be classified as other
than a grantor trust on account of such action. If the Institutional Trustee fails to enforce its
rights
under the Declaration, to the fullest extent permitted by law any Holder of the Common
Securities may institute a legal proceeding directly against any Person to enforce the
Institutional
Trustee’s rights under the Declaration, without first instituting a legal proceeding against the
Institutional Trustee or any other Person.

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

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

	 	7.	Amendments to Declaration and Indenture.

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

     (b) In the event the consent of the Institutional Trustee as the holder of the
Debentures is required under the Indenture with respect to any amendment, modification or
termination of the Indenture or the Debentures, the Institutional Trustee shall request the written
direction of the Holders of the Securities with respect to such amendment, modification or
termination and shall vote with respect to such amendment, modification, or termination as

A-I-14

 

 

directed by a Majority in liquidation amount of the Securities voting together as a single class;
provided, however, that where a consent under the Indenture would require a Super Majority, the
Institutional Trustee may only give such consent at the written direction of the Holders of not
less than the proportion in liquidation amount of the Securities which the relevant Super Majority
represents of the aggregate principal amount of the Debentures outstanding.

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

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

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

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

A-I-15

 

 

cash of all Distributions on, or the Redemption Price or the Special Redemption Price of, the
Capital Securities then due and payable.

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

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

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

A-I-16

 

 

EXHIBIT A-1

FORM OF CAPITAL SECURITY CERTIFICATE

[FORM OF FACE OF SECURITY]

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES
LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE
HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY
ONLY (A) TO THE DEBENTURE ISSUER OR THE TRUST, (B) PURSUANT TO RULE
144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO A “NON U.S.
PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO REGULATIONS
UNDER THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF
RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR
ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN “ACCREDITED
INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF
THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE DEBENTURE ISSUER’S AND THE TRUST’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE
AMENDED AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH MAY BE
OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH
THE FOREGOING RESTRICTIONS.

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

A-l-1

 

 

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

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

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

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	Certificate Number [P-001 ]
	 	Number of Capital Securities: 15,000

Certificate Evidencing Capital Securities

of

County Statutory Trust III

TP Securities

(liquidation amount $1,000 per Capital Security)

     County Statutory Trust III, a statutory trust created under the laws of the State of Connecticut
(the “Trust”), hereby certifies that                                         (the “Holder”), is the registered owner of 15,000 capital
securities of the Trust representing undivided beneficial interests in the assets of the Trust,
designated the TP Securities (liquidation amount $1,000 per Capital Security) (the “Capital
Securities”). Subject to the Declaration (as defined below), the Capital Securities are
transferable on the books and records of the Trust, in person or by a duly authorized attorney,
upon surrender of this Certificate duly endorsed and in proper form for transfer. The Capital
Securities represented hereby are issued pursuant to, and the designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Capital Securities shall in all
respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the
Trust, dated as of June 23, 2006, among David Curtis and Janey Cabral, as Administrators, U.S. Bank
National Association, as Institutional Trustee, Capital Corp of the West, as Sponsor, and the
holders from time to time of undivided beneficial interests in the assets of the Trust, including
the designation of the terms of the Capital Securities as set forth in Annex I to the Declaration,
as the same may be amended from time to time (the “Declaration”). Capitalized terms used herein but
not defined shall have the meaning given them in the Declaration. The Holder is entitled to the
benefits of the Guarantee to the extent provided therein. The Sponsor will provide a
copy of the Declaration, the Guarantee, and the Indenture to the Holder without charge upon written
request to the Sponsor at its principal place of business.

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

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

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

A-1-3

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	County Statutory Trust III	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	Title: Administrator	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 	 	 
	 	 	 	 	 	 	 

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Institutional Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 	 	 

A-l-4

 

 

[FORM OF REVERSE OF SECURITY]

     Distributions payable on each Capital Security will be payable at a variable per annum rate of
interest, reset quarterly, equal to LIBOR (as defined in the Declaration) plus 1.59% (the“Coupon
Rate”) of the stated liquidation amount of $1,000 per Capital Security (provided, however, that the
Coupon Rate for any Distribution Payment Period may not exceed the highest rate permitted by New
York law, as the same may be modified by United States law of general
applicability), such Coupon Rate being the rate of interest payable on the Debentures to be held by
the Institutional Trustee. Distributions in arrears for more than one quarterly period will bear
interest thereon compounded quarterly at the then applicable Coupon Rate for each such quarterly
period (to the extent permitted by applicable law). The term “Distributions” as used herein
includes cash distributions, any such compounded distributions and any Additional Interest payable
on the Debentures unless otherwise stated. A Distribution is payable only to the extent that
payments are made in respect of the Debentures held by the Institutional Trustee and to the extent
the Institutional Trustee has funds legally available in the Property Account therefor. The amount
of Distributions payable for any period will be computed for any full quarterly Distribution period
on the basis of a 360-day year and the actual number of days elapsed in the relevant Distribution
Payment Period.

     Except as otherwise described below, Distributions on the Capital Securities will
be cumulative, will accrue from the date of original issuance and will be payable quarterly in
arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September
15, 2006 (each, a “Distribution Payment Date”). Subject to prior submission of Notice (as defined
in the Indenture), and so long as no Event of Default pursuant to paragraphs (c), (e), (f) or (g)
of Section 5.01 of the Indenture has occurred and is continuing, the Debenture Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending the interest
distribution period for up to 20 consecutive quarterly periods (each, an “Extension Period”) at any
time and from time to time on the Debentures, subject to the conditions described below, during
which Extension Period no interest shall be due and payable (except any Additional Interest that
may be due and payable). During any Extension Period, interest will continue to accrue on the
Debentures, and interest on such accrued interest (such accrued interest and interest thereon
referred to herein as “Deferred Interest”) will accrue at an annual rate equal to the Coupon Rate
in effect for each such Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent permitted by law. No
Extension Period may end on a date other than a Distribution Payment Date. At the end of any such
Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on
the Debentures; provided, however, that no Extension Period may extend beyond the Maturity Date,
Redemption Date (to the extent redeemed) or Special Redemption Date. Prior to the termination of
any Extension Period, the Debenture Issuer may further extend such period; provided, that such
period together with all such previous and further consecutive extensions thereof shall not exceed
20 consecutive quarterly periods, or extend beyond the Maturity Date, Redemption Date (to the
extent redeemed) or Special Redemption Date. Upon the termination of any Extension Period and upon
the payment of all Deferred Interest, the Debenture Issuer may commence a new Extension Period,
subject to the foregoing requirements. No interest or Deferred Interest (except any Additional
Amounts that may be due and payable) shall be due and payable during an Extension Period, except at
the end thereof, but Deferred Interest shall accrue upon each installment of

A-l-5

 

 

interest that would otherwise have been due and payable during such Extension Period until
such installment is paid. If Distributions are deferred, the Distributions due shall be paid on the
date that the related Extension Period terminates to Holders of the Securities as they appear on
the books and records of the Trust on the record date immediately preceding such date.
Distributions on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds legally available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds available for Distribution to
the Holders of the Securities will be limited to payments received from the Debenture Issuer. The
payment of Distributions out of moneys held by the Trust is guaranteed by the Guarantor pursuant to
the Guarantee.

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

A-l-6

 

 

ASSIGNMENT

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

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

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

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	(Insert address and zip code of assignee),

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

	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 

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

	 	 	 	 	 	 	 
	 	 	Signature Guarantee:1	 	 
	 

	 	 	 	 

	 	 

 

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

A-l-7

 

 

EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

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

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

A-2-1

 

 

			
	Certificate Number [C-001]
	 	Number of Common Securities: 464

Certificate Evidencing Common Securities

of

County Statutory Trust III

     County Statutory Trust III, a statutory trust created under the laws of the State of Connecticut
(the “Trust”), hereby certifies that Capital Corp of the West (the “Holder”) is the registered
owner of 464 common securities of the Trust representing undivided beneficial interests in the
assets of the Trust (liquidation amount $1,000 per Common Security) (the “Common Securities”). The
Common Securities represented hereby are issued pursuant to, and the designation, rights,
privileges, restrictions, preferences and other terms and provisions of the Common Securities shall
in all respects be subject to, the provisions of the Amended and Restated Declaration of Trust of
the Trust, dated as of June 23, 2006, among David Curtis and Janey Cabral, as Administrators, U.S.
Bank National Association, as Institutional Trustee, the Holder, as Sponsor, and the holders from
time to time of undivided beneficial interests in the assets of the Trust, including the
designation of the terms of the Common Securities as set forth in Annex I to the Declaration, as the
same may be amended from time to time (the “Declaration”). Capitalized terms used herein but not
defined shall have the meaning given them in the Declaration. The Sponsor will provide a copy of
the Declaration and the Indenture to the Holder without charge upon written request to the Sponsor
at its principal place of business.

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

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

the benefits thereunder.

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

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

A-2-2

 

 

     IN WITNESS WHEREOF, the Trust has executed this certificate as of this                
                         day of ____, 2006.

	 	 	 	 	 	 	 	 	 
	 	 	County Statutory Trust III	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Administrator	 	 

A-2-3

 

 

[FORM OF REVERSE OF SECURITY]

     Distributions payable on each Common Security will be identical in amount to the Distributions
payable on each Capital Security, which is at a variable per annum rate of interest, reset
quarterly, equal to LIBOR (as defined in the Declaration) plus 1.59% (the “Coupon Rate”) of the
stated liquidation amount of $1,000 per Capital Security (provided, however, that the Coupon Rate
for any Distribution Payment Period may not exceed the highest rate permitted by New York law, as
the same may be modified by United States law of general applicability), such Coupon Rate being the
rate of interest payable on the Debentures to be held by the Institutional Trustee. Distributions
in arrears for more than one quarterly period will bear interest thereon compounded quarterly at
the then applicable Coupon Rate for each such quarterly period (to the extent permitted by
applicable law). The term “Distributions” as used herein includes cash distributions, any such
compounded distributions and any Additional Interest payable on the Debentures unless otherwise
stated. A Distribution is payable only to the extent that payments are made in respect of the
Debentures held by the Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions payable for any
period shall be computed for any full quarterly Distribution period on the basis of a 360-day year
and the actual number of days elapsed in the relevant Distribution Payment Period.

     Except as otherwise described below, Distributions on the Common Securities will be cumulative,
will accrue from the date of original issuance and will be payable quarterly in arrears on March 15,
June 15, September 15 and December 15 of each year, commencing on September 15, 2006 (each, a
“Distribution Payment Date”). Subject to prior submission of Notice (as defined in the Indenture),
and so long as no Event of Default pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of
the Indenture has occurred and is continuing, the Debenture Issuer has the right to defer payments
of interest on the Debentures by extending the interest distribution period for up to 20
consecutive quarterly periods (each, an “Extension Period”) at any time and from time to time on
the Debentures, subject to the conditions described below, during which Extension Period no
interest shall be due and payable (except any Additional Interest that may be due and payable).
During any Extension Period, interest will continue to accrue on the Debentures, and interest on
such accrued interest (such accrued interest and interest thereon referred to herein as “Deferred
Interest”) will accrue at an annual rate equal to the Coupon Rate in effect for each such Extension
Period, compounded quarterly from the date such Deferred Interest would have been payable were it
not for the Extension Period, to the extent permitted by law. No Extension Period may end on a date
other than a Distribution Payment Date. At the end of any such Extension Period, the Debenture
Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures; provided,
however, that no Extension Period may extend beyond the Maturity Date, Redemption Date (to the
extent redeemed) or Special Redemption Date. Prior to the termination of any Extension Period, the
Debenture Issuer may further extend such period, provided, that such period together with all such
previous and further consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods, or extend beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special
Redemption Date. Upon the termination of any Extension Period and upon the payment of all Deferred
Interest, the Debenture Issuer may commence a new Extension Period, subject to the foregoing
requirements. No interest or Deferred Interest (except any Additional Interest that may be due and
payable) shall be due and payable during an Extension Period, except at the end thereof, but
Deferred Interest shall accrue

A-2-4

 

 

upon each installment of interest that would otherwise have been due and payable during such
Extension Period until such installment is paid. If Distributions are deferred, the Distributions
due shall be paid on the date that the related Extension Period terminates to Holders of the
Securities as they appear on the books and records of the Trust on the record date immediately
preceding such date.

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

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

A-2-5

 

 

ASSIGNMENT

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

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

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

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	(Insert address and zip code of assignee),

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

	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 

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

	 	 	 	 	 	 	 
	 	 	Signature Guarantee:1	 	 
	 

	 	 	 	 

	 	 

 

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

A-2-6exv4w7

 

Exhibit 4.7

 

 

CAPITAL CORP OF THE WEST,

as Issuer

INDENTURE

Dated as of October 31, 2007

WILMINGTON TRUST COMPANY,

as Trustee

FLOATING RATE JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES

DUE 2037

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I. DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	     Section 1.1.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II. DEBENTURES	 	 	8	 
	 
	 	 	 	 	 	 
	     Section 2.1.
	 	Authentication and Dating	 	 	8	 
	     Section 2.2.
	 	Form of Trustee’s Certificate of Authentication	 	 	9	 
	     Section 2.3.
	 	Form and Denomination of Debentures	 	 	9	 
	     Section 2.4.
	 	Execution of Debentures	 	 	9	 
	     Section 2.5.
	 	Exchange and Registration of Transfer of Debentures	 	 	10	 
	     Section 2.6.
	 	Mutilated, Destroyed, Lost or Stolen Debentures	 	 	12	 
	     Section 2.7.
	 	Temporary Debentures	 	 	12	 
	     Section 2.8.
	 	Payment of Interest and Additional Interest	 	 	13	 
	     Section 2.9.
	 	Cancellation of Debentures Paid, etc.	 	 	14	 
	     Section 2.10.
	 	Computation of Interest	 	 	14	 
	     Section 2.11.
	 	Extension of Interest Payment Period	 	 	15	 
	     Section 2.12.
	 	CUSIP Numbers	 	 	17	 
	     Section 2.13.
	 	Global Debentures	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE III. PARTICULAR COVENANTS OF THE COMPANY	 	 	19	 
	 
	 	 	 	 	 	 
	     Section 3.1.
	 	Payment of Principal, Premium and Interest; Agreed Treatment of the Debentures	 	 	19	 
	     Section 3.2.
	 	Offices for Notices and Payments, etc.	 	 	19	 
	     Section 3.3.
	 	Appointments to Fill Vacancies in Trustee’s Office	 	 	20	 
	     Section 3.4.
	 	Provision as to Paying Agent	 	 	20	 
	     Section 3.5.
	 	Certificate to Trustee	 	 	21	 
	     Section 3.6.
	 	Additional Sums	 	 	21	 
	     Section 3.7.
	 	Compliance with Consolidation Provisions	 	 	21	 
	     Section 3.8.
	 	Limitation on Dividends	 	 	21	 
	     Section 3.9.
	 	Covenants as to the Trust	 	 	22	 
	     Section 3.10.
	 	Additional Junior Indebtedness	 	 	22	 
	     Section 3.11.
	 	Subsidiary; Insured Depository Institution	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE IV. SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE	 	 	22	 
	 
	 	 	 	 	 	 
	     Section 4.1.
	 	Securityholders’ Lists	 	 	22	 
	     Section 4.2.
	 	Preservation and Disclosure of Lists	 	 	23	 
	     Section 4.3.
	 	Reports by the Company	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE V. REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT	 	 	24	 
	 
	 	 	 	 	 	 
	     Section 5.1.
	 	Events of Default	 	 	24	 
	     Section 5.2.
	 	Payment of Debentures on Default; Suit Therefor	 	 	26	 
	     Section 5.3.
	 	Application of Moneys Collected by Trustee	 	 	27	 
	     Section 5.4.
	 	Proceedings by Securityholders	 	 	27	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	     Section 5.5.
	 	Proceedings by Trustee	 	 	28	 
	     Section 5.6.
	 	Remedies Cumulative and Continuing; Delay or Omission Not a Waiver	 	 	28	 
	     Section 5.7.
	 	Direction of Proceedings and Waiver of Defaults by Majority of Securityholders	 	 	28	 
	     Section 5.8.
	 	Notice of Defaults	 	 	29	 
	     Section 5.9.
	 	Undertaking to Pay Costs	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE VI. CONCERNING THE TRUSTEE	 	 	29	 
	 
	 	 	 	 	 	 
	     Section 6.1.
	 	Duties and Responsibilities of Trustee	 	 	29	 
	     Section 6.2.
	 	Reliance on Documents, Opinions, etc.	 	 	30	 
	     Section 6.3.
	 	No Responsibility for Recitals, etc.	 	 	31	 
	     Section 6.4.
	 	Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own Debentures	 	 	31	 
	     Section 6.5.
	 	Moneys to be Held in Trust	 	 	31	 
	     Section 6.6.
	 	Compensation and Expenses of Trustee	 	 	32	 
	     Section 6.7.
	 	Officers’ Certificate as Evidence	 	 	32	 
	     Section 6.8.
	 	Eligibility of Trustee	 	 	32	 
	     Section 6.9.
	 	Resignation or Removal of Trustee	 	 	33	 
	     Section 6.10.
	 	Acceptance by Successor Trustee	 	 	34	 
	     Section 6.11.
	 	Succession by Merger, etc.	 	 	35	 
	     Section 6.12.
	 	Authenticating Agents	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE VII. CONCERNING THE SECURITYHOLDERS	 	 	36	 
	 
	 	 	 	 	 	 
	     Section 7.1.
	 	Action by Securityholders	 	 	36	 
	     Section 7.2.
	 	Proof of Execution by Securityholders	 	 	36	 
	     Section 7.3.
	 	Who Are Deemed Absolute Owners	 	 	36	 
	     Section 7.4.
	 	Debentures Owned by Company Deemed Not Outstanding	 	 	37	 
	     Section 7.5.
	 	Revocation of Consents; Future Holders Bound	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE VIII. SECURITYHOLDERS’ MEETINGS	 	 	37	 
	 
	 	 	 	 	 	 
	     Section 8.1.
	 	Purposes of Meetings	 	 	37	 
	     Section 8.2.
	 	Call of Meetings by Trustee	 	 	38	 
	     Section 8.3.
	 	Call of Meetings by Company or Securityholders	 	 	38	 
	     Section 8.4.
	 	Qualifications for Voting	 	 	38	 
	     Section 8.5.
	 	Regulations	 	 	38	 
	     Section 8.6.
	 	Voting	 	 	39	 
	     Section 8.7.
	 	Quorum; Actions	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE IX. SUPPLEMENTAL INDENTURES	 	 	40	 
	 
	 	 	 	 	 	 
	     Section 9.1.
	 	Supplemental Indentures without Consent of Securityholders	 	 	40	 
	     Section 9.2.
	 	Supplemental Indentures with Consent of Securityholders	 	 	41	 
	     Section 9.3.
	 	Effect of Supplemental Indentures	 	 	42	 
	     Section 9.4.
	 	Notation on Debentures	 	 	42	 
	     Section 9.5.
	 	Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee	 	 	42	 
	 
	 	 	 	 	 	 
	ARTICLE X. REDEMPTION OF SECURITIES	 	 	42	 
	 
	 	 	 	 	 	 
	     Section 10.1.
	 	Optional Redemption	 	 	42	 
	     Section 10.2.
	 	Special Event Redemption	 	 	42	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	     Section 10.3.
	 	Notice of Redemption; Selection of Debentures	 	 	42	 
	     Section 10.4.
	 	Payment of Debentures Called for Redemption	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE XI. CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE	 	 	43	 
	 
	 	 	 	 	 	 
	     Section 11.1.
	 	Company May Consolidate, etc., on Certain Terms	 	 	43	 
	     Section 11.2.
	 	Successor Entity to be Substituted	 	 	44	 
	     Section 11.3.
	 	Opinion of Counsel to be Given to Trustee	 	 	44	 
	 
	 	 	 	 	 	 
	ARTICLE XII. SATISFACTION AND DISCHARGE OF INDENTURE	 	 	44	 
	 
	 	 	 	 	 	 
	     Section 12.1.
	 	Discharge of Indenture	 	 	44	 
	     Section 12.2.
	 	Deposited Moneys to be Held in Trust by Trustee	 	 	45	 
	     Section 12.3.
	 	Paying Agent to Repay Moneys Held	 	 	45	 
	     Section 12.4.
	 	Return of Unclaimed Moneys	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE XIII. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	 	 	45	 
	 
	 	 	 	 	 	 
	     Section 13.1.
	 	Indenture and Debentures Solely Corporate Obligations	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE XIV. MISCELLANEOUS PROVISIONS	 	 	46	 
	 
	 	 	 	 	 	 
	     Section 14.1.
	 	Successors	 	 	46	 
	     Section 14.2.
	 	Official Acts by Successor Entity	 	 	46	 
	     Section 14.3.
	 	Surrender of Company Powers	 	 	46	 
	     Section 14.4.
	 	Addresses for Notices, etc.	 	 	46	 
	     Section 14.5.
	 	Governing Law	 	 	46	 
	     Section 14.6.
	 	Evidence of Compliance with Conditions Precedent	 	 	46	 
	     Section 14.7.
	 	Table of Contents, Headings, etc.	 	 	47	 
	     Section 14.8.
	 	Execution in Counterparts	 	 	47	 
	     Section 14.9.
	 	Separability	 	 	47	 
	     Section 14.10.
	 	Assignment	 	 	47	 
	     Section 14.11.
	 	Acknowledgment of Rights	 	 	47	 
	 
	 	 	 	 	 	 
	ARTICLE XV. SUBORDINATION OF DEBENTURES	 	 	47	 
	 
	 	 	 	 	 	 
	     Section 15.1.
	 	Agreement to Subordinate	 	 	47	 
	     Section 15.2.
	 	Default on Senior Indebtedness	 	 	48	 
	     Section 15.3.
	 	Liquidation, Dissolution, Bankruptcy	 	 	48	 
	     Section 15.4.
	 	Subrogation	 	 	49	 
	     Section 15.5.
	 	Trustee to Effectuate Subordination	 	 	50	 
	     Section 15.6.
	 	Notice by the Company	 	 	50	 
	     Section 15.7.
	 	Rights of the Trustee; Holders of Senior Indebtedness	 	 	51	 
	     Section 15.8.
	 	Subordination May Not Be Impaired	 	 	51	 

	 	 	 
	Exhibit A

	 	Form of Floating Rate Junior Subordinated Deferrable Interest Debenture
	Exhibit B

	 	Form of Certificate to Trustee
	Exhibit C

	 	Form of Quarterly Report

iii

 

     THIS INDENTURE, dated as of October 31, 2007, between Capital Corp of the West, a California
corporation (the “Company”), and Wilmington Trust Company, a Delaware banking corporation,
as debenture trustee (the “Trustee”).

WITNESSETH:

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of
its Floating Rate Junior Subordinated Deferrable Interest Debentures due 2037 (the
“Debentures”) under this Indenture to provide, among other things, for the execution and
authentication, delivery and administration thereof, and the Company has duly authorized the
execution of this Indenture; and

     WHEREAS, all acts and things necessary to make this Indenture a valid agreement according to
its terms, have been done and performed;

     NOW, THEREFORE, This Indenture Witnesseth:

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

ARTICLE I.

DEFINITIONS

     Section 1.1. Definitions. The terms defined in this Section 1.1 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings specified in this Section
1.1. All accounting terms used herein and not expressly defined shall have the meanings assigned
to such terms in accordance with generally accepted accounting principles and the term “generally
accepted accounting principles” means such accounting principles as are generally accepted in the
United States at the time of any computation. The words “herein,” “hereof” and “hereunder” and
other words of similar import refer to this Indenture as a whole and not to any particular Article,
Section or other subdivision.

     “Acceleration Event of Default” means an Event of Default under Section 5.1(a), (d),
(e) or (f), whatever the reason for such Acceleration Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body.

     “Additional Interest” has the meaning set forth in Section 2.11.

     “Additional Junior Indebtedness” means, without duplication and other than the
Debentures, any indebtedness, liabilities or obligations of the Company, or any Subsidiary of the
Company, under debt securities (or guarantees in respect of debt securities) initially issued after
the date of this Indenture to any trust, or a trustee of a trust, partnership or other entity
affiliated with the Company that is, directly or indirectly, a finance subsidiary (as such term is
defined in Rule 3a-5 under the Investment Company Act of 1940) or other financing vehicle of the
Company or any Subsidiary of the Company in connection with the issuance by that entity of
preferred securities or other securities that are eligible to qualify for Tier 1 capital treatment
(or its then equivalent) for purposes of the capital adequacy guidelines of the Federal Reserve, as
then in effect and applicable to the Company (or, if the Company is not a bank holding company,
such guidelines applied to the Company as if the Company were subject to such guidelines);
provided, however, that the inability of the Company to treat all or any portion of
the Additional Junior
Indebtedness as Tier 1 capital shall not disqualify it as Additional Junior Indebtedness if
such inability results from the Company having cumulative preferred stock, minority interests in
consolidated

1

 

subsidiaries, or any other class of security or interest which the Federal Reserve now
or may hereafter accord Tier 1 capital treatment (including the Debentures) in excess of the amount
which may qualify for treatment as Tier 1 capital under applicable capital adequacy guidelines.

     “Additional Sums” has the meaning set forth in Section 3.6.

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

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

     “Authenticating Agent” means any agent or agents of the Trustee which at the time
shall be appointed and acting pursuant to Section 6.12.

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

     “Board of Directors” means the board of directors or the executive committee or any
other duly authorized designated officers of the Company.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in
full force and effect on the date of such certification and delivered to the Trustee.

     “Book-Entry Capital Securities” means a Capital Security, the ownership and transfer
of which shall be made through book entries by a Depositary.

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

     “Capital Securities” means undivided beneficial interests in the assets of the Trust
which rank pari passu with Common Securities issued by the Trust; provided,
however, that upon the occurrence and continuance of an Event of Default (as defined in the
Declaration), the rights of holders of such Common Securities to payment in respect of
distributions and payments upon liquidation, redemption and otherwise are subordinated to the
rights of holders of such Capital Securities.

     “Capital Securities Guarantee” means the guarantee agreement that the Company enters
into with Wilmington Trust Company, as guarantee trustee, or other Persons that operates directly
or indirectly for the benefit of holders of Capital Securities of the Trust.

     “Capital Treatment Event” means the receipt by the Company and the Trust of an opinion
of counsel experienced in such matters to the effect that, as a result of the occurrence of any
amendment to, or change (including any announced prospective change) in, the laws, rules or
regulations of the United States or any political subdivision thereof or therein, or as the result
of any official or administrative pronouncement or action or decision interpreting or applying such
laws, rules or regulations, which amendment or change is effective or which pronouncement, action
or decision is announced on or after the date of original issuance of the Debentures, there is more
than an insubstantial risk that the Company
will not, within 90 days of the date of such opinion, be entitled to treat an amount equal to
the aggregate liquidation amount of the Capital Securities as “Tier 1 Capital” (or its then
equivalent) for purposes of the

2

 

capital adequacy guidelines of the Federal Reserve, as then in
effect and applicable to the Company (or if the Company is not a bank holding company or otherwise
is not subject to the Federal Reserve’s risk-based capital adequacy guidelines, such guidelines
applied to the Company as if the Company were subject to such guidelines); provided,
however, that the inability of the Company to treat all or any portion of the liquidation
amount of the Capital Securities as Tier l Capital shall not constitute the basis for a Capital
Treatment Event, if such inability results from the Company having cumulative preferred stock,
minority interests in consolidated subsidiaries, or any other class of security or interest which
the Federal Reserve or OTS, as applicable, may now or hereafter accord Tier 1 Capital treatment in
excess of the amount which may now or hereafter qualify for treatment as Tier 1 Capital under
applicable capital adequacy guidelines; provided further, however, that the
distribution of Debentures in connection with the liquidation of the Trust shall not in and of
itself constitute a Capital Treatment Event unless such liquidation shall have occurred in
connection with a Tax Event or an Investment Company Event.

     “Certificate” means a certificate signed by any one of the principal executive
officer, the principal financial officer or the principal accounting officer of the Company.

     “Common Securities” means undivided beneficial interests in the assets of the Trust
which rank pari passu with Capital Securities issued by the Trust; provided,
however, that upon the occurrence and continuance of an Event of Default (as defined in the
Declaration), the rights of holders of such Common Securities to payment in respect of
distributions and payments upon liquidation, redemption and otherwise are subordinated to the
rights of holders of such Capital Securities.

     “Company” means Capital Corp of the West, a California corporation, and, subject to
the provisions of Article XI, shall include its successors and assigns.

     “Coupon Rate” has the meaning set forth in Section 2.8.

     “Debenture” or “Debentures” has the meaning stated in the first recital of
this Indenture.

     “Debenture Register” has the meaning specified in Section 2.5.

     “Declaration” means the Amended and Restated Declaration of Trust of the Trust, as
amended or supplemented from time to time.

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

     “Defaulted Interest” has the meaning set forth in Section 2.8.

     “Depositary” means an organization registered as a clearing agency under the Exchange
Act that is designated as Depositary by the Company or any successor thereto. The initial
Depositary will be DTC.

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

     “Determination Date” has the meaning set forth in Section 2.10.

     “Distribution Period” means (i) with respect to interest paid on the first Interest
Payment Date, the period beginning on (and including) the date of original issuance and ending on
(but excluding) the Interest Payment Date in December 2007 and (ii) thereafter, with respect to
interest paid on each

3

 

successive Interest Payment Date, the period beginning on (and including) the
preceding Interest Payment Date and ending on (but excluding) such current Interest Payment Date.

     “DTC” means the Depository Trust Company, a New York corporation.

     “Event of Default” means any event specified in Section 5.1, continued for the period
of time, if any, and after the giving of the notice, if any, therein designated.

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

     “Extension Period” has the meaning set forth in Section 2.11.

     “Federal Reserve” means the Board of Governors of the Federal Reserve System, or its
designated district bank, as applicable, and any successor federal agency that is primarily
responsible for regulating the activities of bank holding companies.

     “Global Debenture” means a security that evidences all or part of the Debentures, the
ownership and transfers of which shall be made through book entries by a Depositary.

     “Indenture” means this instrument as originally executed or, if amended or
supplemented as herein provided, as so amended or supplemented, or both.

     “Institutional Trustee” has the meaning set forth in the Declaration.

     “Interest Payment Date” means March 15, June 15, September 15 and December 15 of each
year during the term of this Indenture, or if such day is not a Business Day, then the next
succeeding Business Day (it being understood that interest accrues for any such non-Business Day),
commencing in December 2007.

     “Interest Rate” means for the Distribution Period beginning on (and including) the
date of original issuance and ending on (but excluding) the Interest Payment Date in December 2007
the rate per annum of [RATE]%, and for each Distribution Period beginning on or after the Interest
Payment Date in December 2007, the Coupon Rate for such Distribution Period.

     “Investment Company Event” means the receipt by the Company and the Trust of an
opinion of counsel experienced in such matters to the effect that, as a result of the occurrence of
a change in law or regulation or written change (including any announced prospective change) in
interpretation or application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than an insubstantial risk that the Trust is or,
within 90 days of the date of such opinion will be considered an “investment company” that is
required to be registered under the Investment Company Act of 1940, as amended which change or
prospective change becomes effective or would become effective, as the case may be, on or after the
date of the issuance of the Debentures.

     “Liquidation Amount” means the stated amount of $1,000.00 per Trust Security.

     “Maturity Date” means December 15, 2037.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the
Chief Executive Officer, the Vice Chairman, the President, any Managing Director or any Vice
President, and
by the Treasurer, an Assistant Treasurer, the Comptroller, an Assistant Comptroller, the
Secretary or an Assistant Secretary of the Company, and delivered to the Trustee. Each such
certificate shall include the statements provided for in Section 14.6 if and to the extent required
by the provisions of such Section.

4

 

     “Opinion of Counsel” means an opinion in writing signed by legal counsel, who may be
an employee of or counsel to the Company, or may be other counsel reasonably satisfactory to the
Trustee. Each such opinion shall include the statements provided for in Section 14.6 if and to the
extent required by the provisions of such Section.

     “OTS” means the Office of Thrift Supervision and any successor federal agency that is
primarily responsible for regulating the activities of savings and loan holding companies.

     The term “outstanding,” when used with reference to Debentures, means, subject to the
provisions of Section 7.4, as of any particular time, all Debentures authenticated and delivered by
the Trustee or the Authenticating Agent under this Indenture, except:

     (a) Debentures theretofore canceled by the Trustee or the Authenticating Agent or delivered to
the Trustee for cancellation;

     (b) Debentures, or portions thereof, for the payment or redemption of which moneys in the
necessary amount shall have been deposited in trust with the Trustee or with any paying agent
(other than the Company) or shall have been set aside and segregated in trust by the Company (if
the Company shall act as its own paying agent); provided, however, that, if such
Debentures, or portions thereof, are to be redeemed prior to maturity thereof, notice of such
redemption shall have been given as provided in Section 10.3 or provision satisfactory to the
Trustee shall have been made for giving such notice; and

     (c) Debentures paid pursuant to Section 2.6 or in lieu of or in substitution for which other
Debentures shall have been authenticated and delivered pursuant to the terms of Section 2.6 unless
proof satisfactory to the Company and the Trustee is presented that any such Debentures are held by
bona fide holders in due course.

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

     “Predecessor Security” of any particular Debenture means every previous Debenture
evidencing all or a portion of the same debt as that evidenced by such particular Debenture; and,
for purposes of this definition, any Debenture authenticated and delivered under Section 2.6 in
lieu of a lost, destroyed or stolen Debenture shall be deemed to evidence the same debt as the
lost, destroyed or stolen Debenture.

     “Principal Office of the Trustee,” or other similar term, means the office of the
Trustee, at which at any particular time its corporate trust business shall be principally
administered, which at the time of the execution of this Indenture shall be Rodney Square North,
1100 North Market Street, Wilmington, Delaware 19890-1600, Attention: Corporate Trust
Administration.

     “Redemption Date” has the meaning set forth in Section 10.1.

     “Redemption Price” means 100% of the principal amount of the Debentures being
redeemed, plus accrued and unpaid interest (including any Additional Interest) on such Debentures
to the Redemption Date.

     “Responsible Officer” means, with respect to the Trustee, any officer within the
Principal Office of the Trustee, including any vice-president, any assistant vice-president, any
secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or
other officer of the Principal Trust Office of the Trustee customarily performing functions similar
to those performed by any of the above designated officers and also means, with respect to a
particular corporate trust matter, any other officer to

5

 

whom such matter is referred because of
that officer’s knowledge of and familiarity with the particular subject.

     “Reuters Page LIBOR01” has the meaning set forth in Section 2.10.

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

     “Securityholder,” “holder of Debentures,” or other similar terms, means any Person in
whose name at the time a particular Debenture is registered on the register kept by the Company or
the Trustee for that purpose in accordance with the terms hereof.

     “Senior Indebtedness” means, with respect to the Company, (i) the principal, premium,
if any, and interest in respect of (A) indebtedness of the Company for all borrowed and purchased
money and (B) indebtedness evidenced by securities, debentures, notes, bonds or other similar
instruments issued by the Company; (ii) all capital lease obligations of the Company; (iii) all
obligations of the Company issued or assumed as the deferred purchase price of property, all
conditional sale obligations of the Company and all obligations of the Company under any title
retention agreement; (iv) all obligations of the Company for the reimbursement of any letter of
credit, any banker’s acceptance, any security purchase facility, any repurchase agreement or
similar arrangement, any interest rate swap, any other hedging arrangement, any obligation under
options or any similar credit or other transaction; (v) all obligations of the Company associated
with derivative products such as interest and foreign exchange rate contracts, commodity contracts,
and similar arrangements; (vi) all obligations of the type referred to in clauses (i) through (v)
above of other Persons for the payment of which the Company is responsible or liable as obligor,
guarantor or otherwise including, without limitation, similar obligations arising from off-balance
sheet guarantees and direct credit substitutes; and (vii) all obligations of the type referred to
in clauses (i) through (vi) above of other Persons secured by any lien on any property or asset of
the Company (whether or not such obligation is assumed by the Company), whether incurred on or
prior to the date of this Indenture or thereafter incurred. Notwithstanding the foregoing, “Senior
Indebtedness” shall not include (1) any Additional Junior Indebtedness, (2) Debentures issued
pursuant to this Indenture and guarantees in respect of such Debentures, (3) trade accounts payable
of the Company arising in the ordinary course of business (such trade accounts payable being pari
passu in right of payment to the Debentures), or (4) obligations with respect to which (a) in the
instrument creating or evidencing the same or pursuant to which the same is outstanding, it is
provided that such obligations are pari passu, junior or otherwise not superior in right of payment
to the Debentures and (b) the Company, prior to the issuance thereof, has notified (and, if then
required under the applicable guidelines of the regulating entity, has received approval from) the
Federal Reserve (if the Company is a bank holding company) or the OTS (if the Company is a savings
and loan holding company). Senior Indebtedness shall continue to be Senior Indebtedness and be
entitled to the subordination provisions irrespective of any amendment, modification or waiver of
any term of such Senior Indebtedness.

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

     “Special Redemption Date” has the meaning set forth in Section 10.2.

     “Special Redemption Price” means the price set forth in the following table for any
Special Redemption Date that occurs on the date indicated below (or if such day is not a Business
Day, then the next succeeding Business Day), expressed as the percentage of the principal amount of
the Debentures being redeemed:

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	Month in which Special	 	 
	Redemption Date Occurs	 	Special Redemption Price
	December 2007
	 	104.625%
	March 2008
	 	104.300%
	June 2008
	 	104.000%
	September 2008
	 	103.650%
	December 2008
	 	103.350%
	March 2009
	 	103.000%
	June 2009
	 	102.700%
	September 2009
	 	102.350%
	December 2009
	 	102.050%
	March 2010
	 	101.700%
	June 2010
	 	101.400%
	September 2010
	 	101.050%
	December 2010
	 	100.750%
	March 2011
	 	100.450%
	June 2011
	 	100.200%
	September 2011 and thereafter
	 	100.000%

plus, in each case, accrued and unpaid interest (including any Additional Interest) on such
Debentures to the Special Redemption Date.

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

7

 

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

     “3-Month LIBOR” has the meaning set forth in Section 2.10.

     “Trust” shall mean County Statutory Trust IV, a Delaware statutory trust, or any other
similar trust created for the purpose of issuing Capital Securities in connection with the issuance
of Debentures under this Indenture, of which the Company is the sponsor.

     “Trust Securities” means Common Securities and Capital Securities of the Trust.

     “Trustee” means Wilmington Trust Company, and, subject to the provisions of Article VI
hereof, shall also include its successors and assigns as Trustee hereunder.

ARTICLE II.

DEBENTURES

     Section 2.1. Authentication and Dating. Upon the execution and delivery of this Indenture, or from
time to time thereafter, Debentures in an aggregate principal amount not in excess of
$25,774,000.00 may be executed and delivered by the Company to the Trustee for authentication, and
the Trustee, upon receipt of a written authentication order from the Company, shall thereupon
authenticate and make available for delivery said Debentures to or upon the written order of the
Company, signed by its Chairman of the Board of Directors, Chief Executive Officer, Vice Chairman,
the President, one of its Managing Directors or one of its Vice Presidents without any further
action by the Company hereunder. Notwithstanding anything to the contrary contained herein, the
Trustee shall be fully protected in relying upon the aforementioned authentication order and
written order in authenticating and delivering said Debentures. In authenticating such Debentures,
and accepting the additional responsibilities under this Indenture in relation to such Debentures,
the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully protected in
relying upon:

     (a) a copy of any Board Resolution or Board Resolutions relating thereto and, if applicable,
an appropriate record of any action taken pursuant to such resolution, in each case certified by
the Secretary or an Assistant Secretary of the Company, as the case may be; and

     (b) an Opinion of Counsel prepared in accordance with Section 14.6 which shall also state:

8

 

     (1) that such Debentures, when authenticated and delivered by the Trustee and
issued by the Company in each case in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute valid and legally binding
obligations of the Company, subject to or limited by applicable bankruptcy,
insolvency, reorganization, conservatorship, receivership, moratorium and other
statutory or decisional laws relating to or affecting creditors’ rights or the
reorganization of financial institutions (including, without limitation, preference
and fraudulent conveyance or transfer laws), heretofore or hereafter enacted or in
effect, affecting the rights of creditors generally; and

     (2) that all laws and requirements in respect of the execution and delivery by
the Company of the Debentures have been complied with and that authentication and
delivery of the Debentures by the Trustee will not violate the terms of this
Indenture.

     The Trustee shall have the right to decline to authenticate and deliver any Debentures under
this Section if the Trustee, being advised in writing by counsel, determines that such action may
not lawfully be taken or if a Responsible Officer of the Trustee in good faith shall determine that
such action would expose the Trustee to personal liability to existing holders.

     The definitive Debentures shall be typed, printed, lithographed or engraved on steel engraved
borders or may be produced in any other manner, all as determined by the officers executing such
Debentures, as evidenced by their execution of such Debentures.

     Section 2.2. Form of Trustee’s Certificate of Authentication. The Trustee’s certificate of
authentication on all Debentures shall be in substantially the following form:

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

	 	 	 	 	 
	WILMINGTON TRUST COMPANY, as Trustee

 	 	 
	By  	 	 	 
	 	Authorized Signer 	 	 

     Section 2.3. Form and Denomination of Debentures. The Debentures shall be substantially in the
form of Exhibit A attached hereto. The Debentures shall be in registered, certificated form
without coupons and in minimum denominations of $100,000.00 and any multiple of $1,000.00 in excess
thereof. Any attempted transfer of the Debentures in a block having an aggregate principal amount
of less than $100,000.00 shall be deemed to be void and of no legal effect whatsoever. Any such
purported transferee shall be deemed not to be a holder of such Debentures for any purpose,
including, but not limited to the receipt of payments on such Debentures, and such purported
transferee shall be deemed to have no interest whatsoever in such Debentures. The Debentures shall
be numbered, lettered, or otherwise distinguished in such manner or in accordance with such plans
as the officers executing the same may determine with the approval of the Trustee as evidenced
by the execution and authentication thereof.

     Section 2.4. Execution of Debentures. The Debentures shall be signed in the name and on behalf of
the Company by the manual or facsimile signature of its Chairman of the Board of Directors, Chief
Executive Officer, Vice Chairman, President, one of its Managing Directors or one of its Executive
Vice Presidents, Senior Vice Presidents or Vice Presidents. Only such Debentures as shall bear
thereon a certificate of authentication substantially in the form herein before recited, executed
by the Trustee or the Authenticating Agent by the manual signature of an authorized signer, shall
be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such
certificate by the Trustee or the Authenticating Agent upon any Debenture executed by the Company
shall be conclusive evidence that the

9

 

Debenture so authenticated has been duly authenticated and
delivered hereunder and that the holder is entitled to the benefits of this Indenture.

     In case any officer of the Company who shall have signed any of the Debentures shall cease to
be such officer before the Debentures so signed shall have been authenticated and delivered by the
Trustee or the Authenticating Agent, or disposed of by the Company, such Debentures nevertheless
may be authenticated and delivered or disposed of as though the Person who signed such Debentures
had not ceased to be such officer of the Company; and any Debenture may be signed on behalf of the
Company by such Persons as, at the actual date of the execution of such Debenture, shall be the
proper officers of the Company, although at the date of the execution of this Indenture any such
person was not such an officer.

     Every Debenture shall be dated the date of its authentication.

     Section 2.5. Exchange and Registration of Transfer of Debentures. The Company shall cause to be
kept, at the office or agency maintained for the purpose of registration of transfer and for
exchange as provided in Section 3.2, a register (the “Debenture Register”) for the
Debentures issued hereunder in which, subject to such reasonable regulations as it may prescribe,
the Company shall provide for the registration and transfer of all Debentures as in this Article II
provided. The Debenture Register shall be in written form or in any other form capable of being
converted into written form within a reasonable time.

     Debentures to be exchanged may be surrendered at the Principal Office of the Trustee or at any
office or agency to be maintained by the Company for such purpose as provided in Section 3.2, and
the Company shall execute, the Company or the Trustee shall register and the Trustee or the
Authenticating Agent shall authenticate and make available for delivery in exchange therefor the
Debenture or Debentures which the Securityholder making the exchange shall be entitled to receive.
Upon due presentment for registration of transfer of any Debenture at the Principal Office of the
Trustee or at any office or agency of the Company maintained for such purpose as provided in
Section 3.2, the Company shall execute, the Company or the Trustee shall register and the Trustee
or the Authenticating Agent shall authenticate and make available for delivery in the name of the
transferee or transferees a new Debenture for a like aggregate principal amount. Registration or
registration of transfer of any Debenture by the Trustee or by any agent of the Company appointed
pursuant to Section 3.2, and delivery of such Debenture, shall be deemed to complete the
registration or registration of transfer of such Debenture.

     All Debentures presented for registration of transfer or for exchange or payment shall (if so
required by the Company or the Trustee or the Authenticating Agent) be duly endorsed by, or be
accompanied by a written instrument or instruments of transfer in form satisfactory to the Company
and
the Trustee or the Authenticating Agent duly executed by the holder or his attorney duly
authorized in writing.

     No service charge shall be made for any exchange or registration of transfer of Debentures,
but the Company or the Trustee may require payment of a sum sufficient to cover any tax, fee or
other governmental charge that may be imposed in connection therewith.

     The Company or the Trustee shall not be required to exchange or register a transfer of any
Debenture for a period of 15 days next preceding the date of selection of Debentures for
redemption.

     Notwithstanding anything herein to the contrary, Debentures may not be transferred except in
compliance with the restricted securities legend set forth below, unless otherwise determined by
the Company, upon the advice of counsel expert in securities law, in accordance with applicable
law:

10

 

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

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON
WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN
ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THIS 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 (F) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE
INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY.

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

11

 

EMPLOYEE BENEFIT PLAN
OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY
OR ADMINISTRATIVE EXEMPTION.

     THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000.00 AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY
ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN
$100,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.

     THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

     Section 2.6. Mutilated, Destroyed, Lost or Stolen Debentures. In case any Debenture shall become
mutilated or be destroyed, lost or stolen, the Company shall execute, and upon its written request
the Trustee shall authenticate and deliver, a new Debenture bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Debenture, or in lieu of and in
substitution for the Debenture so destroyed, lost or stolen. In every case the applicant for a
substituted Debenture shall furnish to the Company and the Trustee such security or indemnity as
may be required by them to save each of them harmless, and, in every case of destruction, loss or
theft, the applicant shall also furnish to the Company and the Trustee evidence to their
satisfaction of the destruction, loss or theft of such Debenture and of the ownership thereof.

     The Trustee may authenticate any such substituted Debenture and deliver the same upon the
written request or authorization of any officer of the Company. Upon the issuance of any
substituted Debenture, the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other expenses connected
therewith. In case any Debenture which has matured or is about to mature or has been called for
redemption in full shall become mutilated or be destroyed, lost or stolen, the Company may, instead
of issuing a substitute Debenture, pay or authorize the payment of the same (without surrender
thereof except in the case of a mutilated Debenture) if the applicant for such payment shall
furnish to the Company and the Trustee such security or indemnity as may be required by them to
save each of them harmless and, in case of destruction, loss or theft, evidence satisfactory to the
Company and to the Trustee of the destruction, loss or theft of such Debenture and of the ownership
thereof.

     Every substituted Debenture issued pursuant to the provisions of this Section 2.6 by virtue of
the fact that any such Debenture is destroyed, lost or stolen shall constitute an additional
contractual
obligation of the Company, whether or not the destroyed, lost or stolen Debenture shall be
found at any time, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Debentures duly issued hereunder. All Debentures shall be
held and owned upon the express condition that, to the extent permitted by applicable law, the
foregoing provisions are exclusive with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Debentures and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to
the replacement or payment of negotiable instruments or other securities without their surrender.

     Section 2.7. Temporary Debentures. Pending the preparation of definitive Debentures, the Company
may execute and the Trustee shall authenticate and make available for delivery temporary Debentures
that are typed, printed or lithographed. Temporary Debentures shall be issuable in any authorized
denomination, and substantially in the form of the definitive Debentures in lieu of which they are
issued but with such omissions, insertions and variations as may be appropriate for temporary

12

 

Debentures, all as may be determined by the Company. Every such temporary Debenture shall be
executed by the Company and be authenticated by the Trustee upon the same conditions and in
substantially the same manner, and with the same effect, as the definitive Debentures. Without
unreasonable delay the Company will execute and deliver to the Trustee or the Authenticating Agent
definitive Debentures and thereupon any or all temporary Debentures may be surrendered in exchange
therefor, at the principal corporate trust office of the Trustee or at any office or agency
maintained by the Company for such purpose as provided in Section 3.2, and the Trustee or the
Authenticating Agent shall authenticate and make available for delivery in exchange for such
temporary Debentures a like aggregate principal amount of such definitive Debentures. Such
exchange shall be made by the Company at its own expense and without any charge therefor except
that in case of any such exchange involving a registration of transfer the Company may require
payment of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed
in relation thereto. Until so exchanged, the temporary Debentures shall in all respects be
entitled to the same benefits under this Indenture as definitive Debentures authenticated and
delivered hereunder.

     Section 2.8. Payment of Interest and Additional Interest. Interest at the Interest Rate and any
Additional Interest on any Debenture that is payable, and is punctually paid or duly provided for,
on any Interest Payment Date for Debentures shall be paid to the Person in whose name said
Debenture (or one or more Predecessor Securities) is registered at the close of business on the
regular record date for such interest installment except that interest and any Additional Interest
payable on the Maturity Date shall be paid to the Person to whom principal is paid.

     Each Debenture shall bear interest for the period beginning on (and including) the date of
original issuance and ending on (but excluding) the Interest Payment Date in December 2007 at a
rate per annum of [RATE]%, and shall bear interest for each successive Distribution Period
beginning on or after the Interest Payment Date in December 2007 at a rate per annum equal to the
3-Month LIBOR, determined as described in Section 2.10, plus 3.25% (the “Coupon Rate”),
applied to the principal amount thereof, until the principal thereof becomes due and payable, and
on any overdue principal and to the extent that payment of such interest is enforceable under
applicable law (without duplication) on any overdue installment of interest (including Additional
Interest) at the Interest Rate in effect for each applicable period compounded quarterly. Interest
shall be payable (subject to any relevant Extension Period) quarterly in arrears on each Interest
Payment Date with the first installment of interest to be paid on the Interest Payment Date in
December 2007.

     Any interest on any Debenture, including Additional Interest, that is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”)
shall forthwith cease to be payable to the registered holder on the relevant regular record
date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company
to the Persons in whose names such Debentures (or their respective Predecessor Securities) are
registered at the close of business on a special record date for the payment of such Defaulted
Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in
writing at least 25 days prior to the date of the proposed payment of the amount of Defaulted
Interest proposed to be paid on each such Debenture and the date of the proposed payment, and at
the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money
when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to
the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company of such special
record date and, in the name and at the expense of the Company, shall cause notice of the proposed
payment of such

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Defaulted Interest and the special record date therefor to be mailed, first class
postage prepaid, to each Securityholder at its address as it appears in the Debenture Register, not
less than 10 days prior to such special record date. Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as aforesaid, such
Defaulted Interest shall be paid to the Persons in whose names such Debentures (or their respective
Predecessor Securities) are registered on such special record date and shall be no longer payable.

     The Company may make payment of any Defaulted Interest on any Debentures in any other lawful
manner after notice given by the Company to the Trustee of the proposed payment method;
provided, however, the Trustee in its sole discretion deems such payment method to
be practical.

     Any interest (including Additional Interest) scheduled to become payable on an Interest
Payment Date occurring during an Extension Period shall not be Defaulted Interest and shall be
payable on such other date as may be specified in the terms of such Debentures.

     The term “regular record date” as used in this Section shall mean the close of business on the
15th Business Day preceding the applicable Interest Payment Date.

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

     Section 2.9. Cancellation of Debentures Paid, etc. All Debentures surrendered for the purpose of
payment, redemption, exchange or registration of transfer, shall, if surrendered to the Company or
any paying agent, be surrendered to the Trustee and promptly canceled by it, or, if surrendered to
the Trustee or any Authenticating Agent, shall be promptly canceled by it, and no Debentures shall
be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture.
All Debentures canceled by any Authenticating Agent shall be delivered to the Trustee. The
Trustee shall destroy all canceled Debentures unless the Company otherwise directs the Trustee in
writing. If the Company shall acquire any of the Debentures, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such Debentures unless
and until the same are surrendered to the Trustee for cancellation.

     Section 2.10. Computation of Interest.
The amount of interest payable for each Distribution Period will be calculated by applying the
Interest Rate to the principal amount outstanding at the commencement of the Distribution Period on
the basis of the actual number of days in the Distribution Period concerned divided by 360. All
percentages resulting from any calculations on the Debentures will be rounded, if necessary, to the
nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage
point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655), and
all dollar amounts used in or resulting from such calculation will be rounded to the nearest cent
(with one-half cent being rounded upward)).

     (a) “3-Month LIBOR” means the London interbank offered interest rate for three-month,
U.S. dollar deposits determined by the Trustee in the following order of priority:

     (1) the rate (expressed as a percentage per annum) for U.S. dollar deposits having a
three-month maturity that appears on Reuters Page LIBOR01 as of 11:00 a.m. (London time) on
the related Determination Date (as defined below). “Reuters Page LIBOR01” means the display
designated as “LIBOR01” on Reuters or such other page as may replace Reuters Page LIBOR01 on
that service or such other service or services as may be nominated by the British Bankers’
Association as the information vendor for the purpose of displaying London interbank offered
rates for U.S. dollar deposits;

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     (2) if such rate cannot be identified on the related Determination Date, the Trustee
will request the principal London offices of four leading banks in the London interbank
market to provide such banks’ offered quotations (expressed as percentages per annum) to
prime banks in the London interbank market for U.S. dollar deposits having a three-month
maturity as of 11:00 a.m. (London time) on such Determination Date. If at least two
quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations;

     (3) if fewer than two such quotations are provided as requested in clause (2) above,
the Trustee will request four major New York City banks to provide such banks’ offered
quotations (expressed as percentages per annum) to leading European banks for loans in U.S.
dollars as of 11:00 a.m. (London time) on such Determination Date. If at least two such
quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; and

     (4) if fewer than two such quotations are provided as requested in clause (3) above,
3-Month LIBOR will be a 3-Month LIBOR determined with respect to the Distribution Period
immediately preceding such current Distribution Period.

     If the rate for U.S. dollar deposits having a three-month maturity that initially appears on
Reuters Page LIBOR01 as of 11:00 a.m. (London time) on the related Determination Date is superseded
on the Reuters Page LIBOR01 by a corrected rate by 12:00 noon (London time) on such Determination
Date, then the corrected rate as so substituted on the applicable page will be the applicable
3-Month LIBOR for such Determination Date.

     (b) The Interest Rate for any Distribution Period will at no time be higher than the maximum
rate then permitted by New York law as the same may be modified by United States law.

     (c) “Determination Date” means the date that is two London Banking Days (i.e., a
business day in which dealings in deposits in U.S. dollars are transacted in the London interbank
market) preceding the particular Distribution Period for which a Coupon Rate is being determined.

     (d) The Trustee shall notify the Company, the Institutional Trustee and any securities
exchange or interdealer quotation system on which the Capital Securities are listed, of the Coupon
Rate
and the Determination Date for each Distribution Period, in each case as soon as practicable
after the determination thereof but in no event later than the thirtieth (30th) day of the relevant
Distribution Period. Failure to notify the Company, the Institutional Trustee or any securities
exchange or interdealer quotation system, or any defect in said notice, shall not affect the
obligation of the Company to make payment on the Debentures at the applicable Coupon Rate. Any
error in the calculation of the Coupon Rate by the Trustee may be corrected at any time by notice
delivered as above provided. Upon the request of a holder of a Debenture, the Trustee shall
provide the Coupon Rate then in effect and, if determined, the Coupon Rate for the next
Distribution Period.

     (e) Subject to the corrective rights set forth above, all certificates, communications,
opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained
for the purposes of the provisions relating to the payment and calculation of interest on the
Debentures and distributions on the Capital Securities by the Trustee or the Institutional Trustee
will (in the absence of willful default, bad faith and manifest error) be final, conclusive and
binding on the Trust, the Company and all of the holders of the Debentures and the Capital
Securities, and no liability shall (in the absence of willful default, bad faith or manifest error)
attach to the Trustee or the Institutional Trustee in connection with the exercise or non-exercise
by either of them or their respective powers, duties and discretion.

     Section 2.11. Extension of Interest Payment Period. So long as no Acceleration Event of Default has
occurred and is continuing, the Company shall have the right, from time to time, and without

15

 

causing an Event of Default, to defer payments of interest on the Debentures by extending the
interest payment period on the Debentures at any time and from time to time during the term of the
Debentures, for up to 20 consecutive quarterly periods (each such extended interest payment period,
an “Extension Period”), during which Extension Period no interest (including Additional
Interest) shall be due and payable (except any Additional Sums that may be due and payable). No
Extension Period may end on a date other than an Interest Payment Date. During an Extension
Period, interest will continue to accrue on the Debentures, and interest on such accrued interest
will accrue at an annual rate equal to the Interest Rate in effect for such Extension Period,
compounded quarterly from the date such interest would have been payable were it not for the
Extension Period, to the extent permitted by law (such interest referred to herein as
“Additional Interest”). At the end of any such Extension Period the Company shall pay all
interest then accrued and unpaid on the Debentures (together with Additional Interest thereon);
provided, however, that no Extension Period may extend beyond the Maturity Date;
provided further, however, that during any such Extension Period, the
Company shall not and shall not permit any Affiliate to (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any
of the Company’s or such Affiliate’s capital stock (other than payments of dividends or
distributions to the Company or payments of dividends from direct or indirect subsidiaries of the
Company to their parent corporations, which also shall be direct or indirect subsidiaries of the
Company) or make any guarantee payments with respect to the foregoing or (ii) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities
of the Company or any Affiliate that rank pari passu in all respects with or junior in interest to
the Debentures (other than, with respect to clauses (i) or (ii) above, (a) repurchases, redemptions
or other acquisitions of shares of capital stock of the Company in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of one or more
employees, officers, directors or consultants, in connection with a dividend reinvestment or
stockholder stock purchase plan or in connection with the issuance of capital stock of the Company
(or securities convertible into or exercisable for such capital stock) as consideration in an
acquisition transaction entered into prior to the applicable Extension Period, (b) as a result of
any exchange or conversion of any class or series of the Company’s capital stock (or any capital
stock of a subsidiary of the Company) for any class or series of the Company’s capital stock or of
any class or series of the Company’s indebtedness for any class or series of the Company’s capital
stock, (c) the purchase of
fractional interests in shares of the Company’s capital stock pursuant to the conversion or
exchange provisions of such capital stock or the security being converted or exchanged, (d) any
declaration of a dividend in connection with any stockholders’ rights plan, or the issuance of
rights, stock or other property under any stockholders’ rights plan, or the redemption or
repurchase of rights pursuant thereto, (e) any dividend in the form of stock, warrants, options or
other rights where the dividend stock or the stock issuable upon exercise of such warrants, options
or other rights is the same stock as that on which the dividend is being paid or ranks pari passu
with or junior to such stock and any cash payments in lieu of fractional shares issued in
connection therewith, (f) payments of principal or interest on debt securities or payments of cash
dividends or distributions on any capital stock issued by an Affiliate that is not, in whole or in
part, a subsidiary of the Company (or any redemptions, repurchases or liquidation payments on such
stock or securities), or (g) payments under the Capital Securities Guarantee). Prior to the
termination of any Extension Period, the Company may further extend such period, provided that such
period together with all such previous and further consecutive extensions thereof shall not exceed
20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any
Extension Period and upon the payment of all accrued and unpaid interest and Additional Interest,
the Company may commence a new Extension Period, subject to the foregoing requirements. No
interest or Additional Interest shall be due and payable during an Extension Period, except at the
end thereof, but each installment of interest that would otherwise have been due and payable during
such Extension Period shall bear Additional Interest to the extent permitted by applicable law.
The Company must give the Trustee notice of its election to begin or extend an Extension Period by
the close of business at least 15 Business Days prior to the Interest Payment Date with respect to
which interest on the Debentures would

16

 

have been payable except for the election to begin or extend
such Extension Period. The Trustee shall give notice of the Company’s election to begin a new
Extension Period to the Securityholders.

     Section 2.12.
 CUSIP Numbers. The Company in issuing the Debentures may use “CUSIP” numbers (if then
generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of redemption as a
convenience to Securityholders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Debentures or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Debentures, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing
of any change in the CUSIP numbers.

     Section 2.13. Global Debentures.

     (a) Upon the election of the holder of outstanding Debentures, which election need not be in
writing, the Debentures owned by such holder shall be issued in the form of one or more Global
Debentures registered in the name of the Depositary or its nominee. Each Global Debenture issued
under this Indenture shall be registered in the name of the Depositary designated by the Company
for such Global Debenture or a nominee thereof, delivered to such Depositary or a nominee thereof
or custodian therefor and shall contain such legends as may be required by the Depositary and each
such Global Debenture shall constitute a single Debenture for all purposes of this Indenture.

     (b) Notwithstanding any other provision in this Indenture, no Global Debenture may be
exchanged in whole or in part for Debentures registered, and no transfer of a Global Debenture in
whole or in part may be registered, in the name of any Person other than the Depositary for such
Global Debenture or a nominee thereof unless (i) such Depositary advises the Trustee and the
Company in writing that such Depositary is no longer willing or able to properly discharge its
responsibilities as Depositary with respect to such Global Debenture, and no qualified successor is
appointed by the Company within ninety (90) days of receipt by the Company of such notice, (ii)
such Depositary ceases to
be a clearing agency registered under the Exchange Act and no successor is appointed by the
Company within ninety (90) days after obtaining knowledge of such event, (iii) the Company executes
and delivers to the Trustee a Company order stating that the Company elects to terminate the
book-entry system through the Depositary or (iv) an Event of Default shall have occurred and be
continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) above,
the Trustee shall notify the Depositary and instruct the Depositary to notify all owners of
beneficial interests in such Global Debenture of the occurrence of such event and of the
availability of Debentures to such owners of beneficial interests requesting the same. Upon the
issuance of such Debentures and the registration in the Debenture Register of such Debentures in
the names of the holders of the beneficial interests therein, the Trustee shall recognize such
holders of beneficial interests as holders.

     (c) If any Global Debenture is to be exchanged for other Debentures or canceled in part, or if
another Debenture is to be exchanged in whole or in part for a beneficial interest in any Global
Debenture, then either (i) such Global Debenture shall be so surrendered for exchange or
cancellation as provided in this Article II or (ii) the principal amount thereof shall be reduced
or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to
the principal amount of such other Debentures to be so exchanged for a beneficial interest therein,
as the case may be, by means of an appropriate adjustment made on the records of the Debenture
registrar, whereupon the Trustee, in accordance with the Applicable Depositary Procedures, shall
instruct the Depositary or its authorized representative to make a corresponding adjustment to its
records. Upon any such surrender or adjustment of a Global Debenture by the Depositary,
accompanied by registration instructions, the Company shall execute and the Trustee shall
authenticate and deliver any Debentures issuable in exchange for such

17

 

Global Debenture (or any
portion thereof) in accordance with the instructions of the Depositary. The Trustee shall not be
liable for any delay in delivery of such instructions and may conclusively rely on, and shall be
fully protected in relying on, such instructions.

     (d) Every Debenture authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Debenture or any portion thereof shall be authenticated and
delivered in the form of, and shall be, a Global Debenture, unless such Debenture is registered in
the name of a Person other than the Depositary for such Global Debenture or a nominee thereof.

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

     (f) The Depositary or its nominee, as the registered owner of a Global Debenture, shall be the
holder of such Global Debenture for all purposes under this Indenture and the Debentures, and
owners of beneficial interests in a Global Debenture shall hold such interests pursuant to the
Applicable Depositary Procedures. Accordingly, any such owner’s beneficial interest in a Global
Debenture shall be shown only on, and the transfer of such interest shall be effected only through,
records maintained by the Depositary or its nominee or its Depositary Participants. The Debentures
registrar and the Trustee shall be entitled to deal with the Depositary for all purposes under this
Indenture relating to a Global Debenture (including the payment of principal and interest thereon
and the giving of instructions or directions by owners of beneficial interests therein and the
giving of notices) as the sole holder of the Debenture and
shall have no obligations to the owners of beneficial interests therein. Neither the Trustee
nor the Debentures registrar shall have any liability in respect of any transfers effected by the
Depositary.

     (g) The rights of owners of beneficial interests in a Global Debenture shall be exercised only
through the Depositary and shall be limited to those established by law and agreements between such
owners and the Depositary and/or its Depositary Participants.

     (h) No holder of any beneficial interest in any Global Debenture held on its behalf by a
Depositary shall have any rights under this Indenture with respect to such Global Debenture, and
such Depositary may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the owner of such Global Debenture for all purposes whatsoever. None of the Company,
the Trustee nor any agent of the Company or the Trustee will have any responsibility or liability
for any aspect of the records relating to or payments made on account of beneficial ownership
interests of a Global Debenture or maintaining, supervising or reviewing any records relating to
such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent
the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by a Depositary or impair, as between
a Depositary and such holders of beneficial interests, the operation of customary practices
governing the exercise of the rights of the Depositary (or its nominee) as holder of any Debenture.

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ARTICLE III.

PARTICULAR COVENANTS OF THE COMPANY

     Section 3.1. Payment of Principal, Premium and Interest; Agreed Treatment of the
Debentures.

     (a) The Company covenants and agrees that it will duly and punctually pay or cause to be paid
the principal of and premium, if any, and interest and any Additional Interest and other payments
on the Debentures at the place, at the respective times and in the manner provided in this
Indenture and the Debentures. Each installment of interest on the Debentures may be paid (i) by
mailing checks for such interest payable to the order of the holders of Debentures entitled thereto
as they appear on the registry books of the Company if a request for a wire transfer has not been
received by the Company or (ii) by wire transfer to any account with a banking institution located
in the United States designated in writing by such Person to the paying agent no later than the
related record date. Notwithstanding the foregoing, so long as the holder of this Debenture is the
Institutional Trustee, the payment of the principal of and interest on this Debenture will be made
in immediately available funds at such place and to such account as may be designated by the
Institutional Trustee.

     (b) The Company will treat the Debentures as indebtedness, and the amounts payable in respect
of the principal amount of such Debentures as interest, for all United States federal income tax
purposes. All payments in respect of such Debentures will be made free and clear of United States
withholding tax to any beneficial owner thereof that has provided an Internal Revenue Service Form
W8 BEN (or any substitute or successor form) establishing its non-United States status for United
States federal income tax purposes.

     (c) As of the date of this Indenture, the Company has no present intention to exercise its
right under Section 2.11 to defer payments of interest on the Debentures by commencing an Extension
Period.

     (d) As of the date of this Indenture, the Company believes that the likelihood that it would
exercise its right under Section 2.11 to defer payments of interest on the Debentures by commencing
an Extension Period at any time during which the Debentures are outstanding is remote because of
the restrictions that would be imposed on the Company’s ability to declare or pay dividends or
distributions on, or to redeem, purchase or make a liquidation payment with respect to, any of its
outstanding equity and on the Company’s ability to make any payments of principal of or interest
on, or repurchase or redeem, any of its debt securities that rank pari passu in all respects with
(or junior in interest to) the Debentures.

     Section 3.2. Offices for Notices and Payments, etc.
So long as any of the Debentures remain outstanding, the Company will maintain in Wilmington,
Delaware, an office or agency where the Debentures may be presented for payment, an office or
agency where the Debentures may be presented for registration of transfer and for exchange as in
this Indenture provided and an office or agency where notices and demands to or upon the Company in
respect of the Debentures or of this Indenture may be served. The Company will give to the Trustee
written notice of the location of any such office or agency and of any change of location thereof.
Until otherwise designated from time to time by the Company in a notice to the Trustee, or
specified as contemplated by Section 2.5, such office or agency for all of the above purposes shall
be the office or agency of the Trustee. In case the Company shall fail to maintain any such office
or agency in Wilmington, Delaware, or shall fail to give such notice of the location or of any
change in the location thereof, presentations and demands may be made and notices may be served at
the Principal Office of the Trustee.

     In addition to any such office or agency, the Company may from time to time designate one or
more offices or agencies outside Wilmington, Delaware, where the Debentures may be presented for

19

 

registration of transfer and for exchange in the manner provided in this Indenture, and the Company
may from time to time rescind such designation, as the Company may deem desirable or expedient;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain any such office or agency in Wilmington,
Delaware, for the purposes above mentioned. The Company will give to the Trustee prompt written
notice of any such designation or rescission thereof.

     Section 3.3. Appointments to Fill Vacancies in Trustee’s Office.
The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will
appoint, in the manner provided in Section 6.9, a Trustee, so that there shall at all times be a
Trustee hereunder.

     Section 3.4. Provision as to Paying Agent.

     (a) If the Company shall appoint a paying agent other than the Trustee, it will cause such
paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provision of this Section 3.4,

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

(2) that it will give the Trustee prompt written notice of any failure by the
Company (or by any other obligor on the Debentures) to make any payment of the
principal of and premium, if any, or interest, if any, on the Debentures when the
same shall be due and payable; and

(3) that it will, at any time during the continuance of any Event of Default, upon
the written request of the Trustee, forthwith pay to the Trustee all sums so held in
trust by such paying agent.

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

     Whenever the Company shall have one or more paying agents for the Debentures, it will, on or
prior to each due date of the principal of and premium, if any, or interest, if any, on the
Debentures, deposit with a paying agent a sum sufficient to pay the principal, premium, interest or
other payments so becoming due, such sum to be held in trust for the benefit of the Persons
entitled thereto and (unless such paying agent is the Trustee) the Company shall promptly notify
the Trustee in writing of its action or failure to act.

     (c) Anything in this Section 3.4 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge with respect to the Debentures, or
for any other reason, pay, or direct any paying agent to pay to the Trustee all sums held in trust by
the Company or any such paying agent, such sums to be held by the Trustee upon the trusts herein
contained.

     (d) Anything in this Section 3.4 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 3.4 is subject to Sections 12.3 and 12.4.

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     Section 3.5. Certificate to Trustee.
The Company will deliver to the Trustee on or before 120 days after the end of each fiscal
year, so long as Debentures are outstanding hereunder, a Certificate stating that in the course of
the performance by the signers of their duties as officers of the Company they would normally have
knowledge of any default during such fiscal year by the Company in the performance of any covenants
contained herein, stating whether or not they have knowledge of any such default and, if so,
specifying each such default of which the signers have knowledge and the nature and status thereof.
A form of this Certificate is attached hereto as Exhibit B.

     Section 3.6. Additional Sums.
If and for so long as the Trust is the holder of all Debentures and the Trust is required to
pay any additional taxes (including withholding taxes), duties, assessments or other governmental
charges as a result of a Tax Event, the Company will pay such additional amounts (“Additional
Sums”) on the Debentures as shall be required so that the net amounts received and retained by
the Trust after paying taxes (including withholding taxes), duties, assessments or other
governmental charges will be equal to the amounts the Trust would have received if no such taxes,
duties, assessments or other governmental charges had been imposed. Whenever in this Indenture or
the Debentures there is a reference in any context to the payment of principal of or interest on
the Debentures, such mention shall be deemed to include mention of payments of the Additional Sums
provided for in this paragraph to the extent that, in such context, Additional Sums are, were or
would be payable in respect thereof pursuant to the provisions of this paragraph and express
mention of the payment of Additional Sums (if applicable) in any provisions hereof shall not be
construed as excluding Additional Sums in those provisions hereof where such express mention is not
made; provided, however, that the deferral of the payment of interest during an
Extension Period pursuant to Section 2.11 shall not defer the payment of any Additional Sums that
may be due and payable.

     Section 3.7. Compliance with Consolidation Provisions.
The Company will not, while any of the Debentures remain outstanding, consolidate with, or
merge into, or merge into itself, or sell or convey all or substantially all of its property to any
other Person unless the provisions of Article XI hereof are complied with.

     Section 3.8. Limitation on Dividends.
If Debentures are initially issued to the Trust or a trustee of such Trust in connection with
the issuance of Trust Securities by the Trust (regardless of whether Debentures continue to be held
by such Trust) and (i) there shall have occurred and be continuing an Event of Default, (ii) the
Company shall be in default with respect to its payment of any obligations under the Capital
Securities Guarantee, or (iii) the Company shall have given notice of its election to defer
payments of interest on the Debentures by extending the interest payment period as provided herein
and such period, or any extension thereof, shall be continuing, then the Company shall not, and
shall not allow any Affiliate of the Company to, (x) declare or pay any dividends or distributions
on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the
Company’s capital stock or its Affiliates’ capital stock (other than payments of dividends or
distributions to the Company or payments of dividends from direct or indirect
subsidiaries of the Company to their parent corporations, which also shall be direct or
indirect subsidiaries of the Company) or make any guarantee payments with respect to the foregoing
or (y) make any payment of principal of or interest or premium, if any, on or repay, repurchase or
redeem any debt securities of the Company or any Affiliate that rank pari passu in all respects
with or junior in interest to the Debentures (other than, with respect to clauses (x) and (y)
above, (1) repurchases, redemptions or other acquisitions of shares of capital stock of the
Company in connection with any employment contract, benefit plan or other similar arrangement with
or for the benefit of one or more employees, officers, directors or consultants, in connection with
a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of
capital stock of the Company (or securities convertible into or exercisable for such capital stock)
as consideration in an acquisition transaction entered into prior to the applicable Extension
Period, if any, (2) as a result of any exchange or conversion of any class or series of the
Company’s capital stock (or any capital stock of a

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subsidiary of the Company) for any class or
series of the Company’s capital stock or of any class or series of the Company’s indebtedness for
any class or series of the Company’s capital stock, (3) the purchase of fractional interests in
shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such
capital stock or the security being converted or exchanged, (4) any declaration of a dividend in
connection with any stockholders’ rights plan, or the issuance of rights, stock or other property
under any stockholders’ rights plan, or the redemption or repurchase of rights pursuant thereto,
(5) any dividend in the form of stock, warrants, options or other rights where the dividend stock
or the stock issuable upon exercise of such warrants, options or other rights is the same stock as
that on which the dividend is being paid or ranks pari passu with or junior to such stock and any
cash payments in lieu of fractional shares issued in connection therewith, (6) payments of
principal or interest on debt securities or payments of cash dividends or distributions on any
capital stock issued by an Affiliate that is not, in whole or in part, a subsidiary of the Company
(or any redemptions, repurchases or liquidation payments on such stock or securities), or (7)
payments under the Capital Securities Guarantee).

     Section 3.9. Covenants as to the Trust.
For so long as the Trust Securities remain outstanding, the Company shall maintain 100%
ownership of the Common Securities; provided, however, that any permitted successor
of the Company under this Indenture may succeed to the Company’s ownership of such Common
Securities. The Company, as owner of the Common Securities, shall, except in connection with a
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 the Declaration, cause the Trust (a) to remain a statutory trust, (b) to otherwise
continue to be classified as a grantor trust for United States federal income tax purposes, and (c)
to cause each holder of Trust Securities to be treated as owning an undivided beneficial interest
in the Debentures.

     Section 3.10. Additional Junior Indebtedness.
The Company shall not, and it shall not cause or permit any Subsidiary of the Company to,
incur, issue or be obligated on any Additional Junior Indebtedness, either directly or indirectly,
by way of guarantee, suretyship or otherwise, other than Additional Junior Indebtedness (i) that,
by its terms, is expressly stated to be either junior and subordinate or pari passu in all respects
to the Debentures, and (ii) of which the Company has notified (and, if then required under the
applicable guidelines of the regulating entity, has received approval from) the Federal Reserve, if
the Company is a bank holding company, or the OTS, if the Company is a savings and loan holding
company.

     Section 3.11. Subsidiary; Insured Depository Institution.
So long as any of the Debentures remain outstanding, at least one operating Subsidiary of the
Company shall be an insured depository institution, as such term is defined in Section 3(c)(2) of
the Federal Deposit Insurance Act, as amended.

ARTICLE IV.

SECURITYHOLDERS’ LISTS AND REPORTS

BY THE COMPANY AND THE TRUSTEE

     Section 4.1. Securityholders’ Lists.
The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee:

     (a) on each regular record date for the Debentures, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Securityholders of the Debentures as of such
record date; and

     (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;

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except that no such lists need be furnished under this Section 4.1 so long as the Trustee is in
possession thereof by reason of its acting as Debenture registrar.

     Section 4.2. Preservation and Disclosure of Lists.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Debentures (1) contained in the most
recent list furnished to it as provided in Section 4.1 or (2) received by it in the capacity of
Debentures registrar (if so acting) hereunder. The Trustee may destroy any list furnished to it as
provided in Section 4.1 upon receipt of a new list so furnished.

     (b) In case three or more holders of Debentures (hereinafter referred to as “applicants”)
apply in writing to the Trustee and furnish to the Trustee reasonable proof that each such
applicant has owned a Debenture for a period of at least 6 months preceding the date of such
application, and such application states that the applicants desire to communicate with other
holders of Debentures with respect to their rights under this Indenture or under such Debentures
and is accompanied by a copy of the form of proxy or other communication which such applicants
propose to transmit, then the Trustee shall within 5 Business Days after the receipt of such
application, at its election, either:

(1) afford such applicants access to the information preserved at the time by the
Trustee in accordance with the provisions of subsection (a) of this Section 4.2, or

(2) inform such applicants as to the approximate number of holders of Debentures
whose names and addresses appear in the information preserved at the time by the
Trustee in accordance with the provisions of subsection (a) of this Section 4.2, and
as to the approximate cost of mailing to such Securityholders the form of proxy or
other communication, if any, specified in such application.

     If the Trustee shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Securityholder whose name
and address appear in the information preserved at the time by the Trustee in accordance with the
provisions of subsection (a) of this Section 4.2 a copy of the form of proxy or other communication
which is specified in such request with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses of mailing, unless
within five days after such tender, the Trustee shall mail to such applicants and file with the
Securities and Exchange Commission, if permitted or required by applicable law, together with a
copy of the material to be mailed, a written statement to the effect that, in the opinion of the
Trustee, such mailing would be contrary to the best interests of the holders of all Debentures, as
the case may be, or would be in violation of applicable law. Such written statement shall specify
the basis of such opinion. If said Commission, as permitted or required by applicable law, after
opportunity for a hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the entry of an order
sustaining one or more of such objections, said Commission shall find, after notice and opportunity
for hearing, that all the objections so sustained have been met and shall enter an order so
declaring, the Trustee shall mail copies of such material to all such Securityholders with
reasonable promptness after the entry of such order and the renewal of such tender; otherwise the
Trustee shall be relieved of any obligation or duty to such applicants respecting their
application.

     (c) Each and every holder of Debentures, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any paying agent shall be held
accountable by reason of the disclosure of any such information as to the names and addresses of
the holders of Debentures in accordance with the provisions of subsection (b) of this Section 4.2,
regardless

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of the source from which such information was derived, and that the Trustee shall not be
held accountable by reason of mailing any material pursuant to a request made under said subsection
(b).

     Section 4.3. Reports by the Company.

     (a) The Company shall furnish to the holders of the Capital Securities and to prospective
purchasers of the Capital Securities, upon their request, the information required to be furnished
pursuant to Rule 144A(d)(4) under the Securities Act.

     (b) The Company shall furnish to (i) Wilmington Trust Company, with a copy to FTN Financial
Capital Markets and Keefe, Bruyette & Woods, Inc., and (ii) any beneficial owner of the Capital
Securities reasonably identified to the Company, a completed quarterly report in the form attached
hereto as Exhibit C, which report shall be so furnished by the Company not later than 50
days after the end of each of the first three fiscal quarters of each fiscal year of the Company
and not later than 100 days after the end of each fiscal year of the Company along with a copy of
the Company’s most recently filed (1) FR Y-9C filed with the Federal Reserve if the Company is a
bank holding company, (2) FR Y-9SP filed with the Federal Reserve if the Company is a small bank
holding company or (3) H-(b)11 filed with the OTS if the Company is a savings and loan holding
company.

ARTICLE V.

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

UPON AN EVENT OF DEFAULT

     Section 5.1. Events of Default.
“Event of Default,” wherever used herein, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

     (a) the Company defaults in the payment of any interest upon any Debenture, including any
Additional Interest in respect thereof, following the nonpayment of any such interest for twenty or
more consecutive Distribution Periods; or

     (b) the Company defaults in the payment of all or any part of the principal of (or premium, if
any, on) any Debentures as and when the same shall become due and payable either at maturity, upon
redemption, by declaration of acceleration or otherwise; or

     (c) the Company defaults in the performance of, or breaches, any of its covenants or
agreements in this Indenture or in the terms of the Debentures established as contemplated in this
Indenture (other than a covenant or agreement a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with), and continuance of such default or breach for a
period of 60 days after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the holders of at least 25% in aggregate principal
amount of the outstanding Debentures, a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

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

     (e) the Company shall commence a voluntary case under any applicable bankruptcy, insolvency,
reorganization or other similar law now or hereafter in effect, shall consent to the entry of an

24

 

order for relief in an involuntary case under any such law, or shall consent to the appointment of
or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or
other similar official) of the Company or of any substantial part of its property, or shall make
any general assignment for the benefit of creditors, or shall fail generally to pay its debts as
they become due; or

     (f) the Trust shall have voluntarily or involuntarily liquidated, dissolved, wound-up its
business or otherwise terminated its existence except in connection with (i) the distribution of
the Debentures to holders of such Trust Securities in liquidation of their interests in the Trust,
(ii) the redemption of all of the outstanding Trust Securities or (iii) certain mergers,
consolidations or amalgamations, each as permitted by the Declaration.

     If an Acceleration Event of Default occurs and is continuing with respect to the Debentures,
then, and in each and every such case, unless the principal of the Debentures shall have already
become due and payable, either the Trustee or the holders of not less than 25% in aggregate
principal amount of the Debentures then outstanding hereunder, by notice in writing to the Company
(and to the Trustee if given by Securityholders), may declare the entire principal of the
Debentures and the interest accrued thereon, if any, to be due and payable immediately, and upon
any such declaration the same shall become immediately due and payable. If an Event of Default
under Section 5.1(b) or (c) occurs and is continuing with respect to the Debentures, then, and in
each and every such case, unless the principal of the Debentures shall have already become due and
payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of
the Debentures then outstanding hereunder, by notice in writing to the Company (and to the Trustee
if given by Securityholders), may proceed to remedy the default or breach thereunder by such
appropriate judicial proceedings as the Trustee or such holders shall deem most effectual to remedy
the defaulted covenant or enforce the provisions of this Indenture so breached, either by suit in
equity or by action at law, for damages or otherwise.

     The foregoing provisions, however, are subject to the condition that if, at any time after the
principal of the Debentures shall have been so declared due and payable, and before any judgment or
decree for the payment of the moneys due shall have been obtained or entered as hereinafter
provided, (i) the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments
of interest upon all the Debentures and the principal of and premium, if any, on the
Debentures which shall have become due otherwise than by acceleration (with interest upon such
principal and premium, if any, and Additional Interest) and such amount as shall be sufficient to
cover reasonable compensation to the Trustee and each predecessor Trustee, their respective agents,
attorneys and counsel, and all other amounts due to the Trustee pursuant to Section 6.6, if any,
and (ii) all Events of Default under this Indenture, other than the non-payment of the principal of
or premium, if any, on Debentures which shall have become due by acceleration, shall have been
cured, waived or otherwise remedied as provided herein — then and in every such case the holders
of a majority in aggregate principal amount of the Debentures then outstanding, by written notice
to the Company and to the Trustee, may waive all defaults and rescind and annul such declaration
and its consequences, but no such waiver or rescission and annulment shall extend to or shall
affect any subsequent default or shall impair any right consequent thereon.

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

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     Section 5.2. Payment of Debentures on Default; Suit Therefor.
The Company covenants that upon the occurrence of an Event of Default pursuant to Section
5.1(a) or (b) then, upon demand of the Trustee, the Company will pay to the Trustee, for the
benefit of the holders of the Debentures the whole amount that then shall have become due and
payable on all Debentures for principal and premium, if any, or interest, or both, as the case may
be, with Additional Interest accrued on the Debentures (to the extent that payment of such interest
is enforceable under applicable law and, if the Debentures are held by the Trust or a trustee of
such Trust, without duplication of any other amounts paid by the Trust or a trustee in respect
thereof); and, in addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including a reasonable compensation to the Trustee, its agents,
attorneys and counsel, and any other amounts due to the Trustee under Section 6.6. In case the
Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and
as trustee of an express trust, shall be entitled and empowered to institute any actions or
proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute
any such action or proceeding to judgment or final decree, and may enforce any such judgment or
final decree against the Company or any other obligor on such Debentures and collect in the manner
provided by law out of the property of the Company or any other obligor on such Debentures wherever
situated the moneys adjudged or decreed to be payable.

     In case there shall be pending proceedings for the bankruptcy or for the reorganization of the
Company or any other obligor on the Debentures under Bankruptcy Law, or in case a receiver or
trustee shall have been appointed for the property of the Company or such other obligor, or in the
case of any other similar judicial proceedings relative to the Company or other obligor upon the
Debentures, or to the creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Debentures shall then be due and payable as therein
expressed or by declaration of acceleration or otherwise and irrespective of whether the Trustee
shall have made any demand pursuant to the provisions of this Section 5.2, shall be entitled and
empowered, by intervention in such proceedings or otherwise,

	 	(i)	 	to file and prove a claim or claims for the whole amount of principal and
interest owing and unpaid in respect of the Debentures,
	 
	 	(ii)	 	in case of any judicial proceedings, to file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for reasonable compensation to the Trustee and each
predecessor Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all other amounts due to the Trustee under Section 6.6), and of the
Securityholders allowed in such judicial proceedings relative to the Company or any
other obligor on the Debentures, or to the creditors or property of the Company or such
other obligor, unless prohibited by applicable law and regulations, to vote on behalf
of the holders of the Debentures in any election of a trustee or a standby trustee in
arrangement, reorganization, liquidation or other bankruptcy or insolvency proceedings
or Person performing similar functions in comparable proceedings,
	 
	 	(iii)	 	to collect and receive any moneys or other property payable or deliverable on
any such claims, and
	 
	 	(iv)	 	to distribute the same after the deduction of its charges and expenses.

Any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of
the Securityholders to make such payments to the Trustee, and, in the event that the Trustee shall
consent to the making of such payments directly to the Securityholders, to pay to the Trustee such
amounts as shall

26

 

be sufficient to cover reasonable compensation to the Trustee, each predecessor
Trustee and their respective agents, attorneys and counsel, and all other amounts due to the
Trustee under Section 6.6.

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

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

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

     Section 5.3. Application of Moneys Collected by Trustee.
Any moneys collected by the Trustee pursuant to this Article V shall be applied in the
following order, at the date or dates fixed by the Trustee for the distribution of such moneys,
upon presentation of the several Debentures in respect of which moneys have been collected, and
stamping thereon the payment, if only partially paid, and upon surrender thereof if fully paid:

     First: To the payment of costs and expenses incurred by, and reasonable fees of, the Trustee,
its agents, attorneys and counsel, and of all other amounts due to the Trustee under Section 6.6;

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

     Third: To the payment of the amounts then due and unpaid upon Debentures for principal (and
premium, if any), and interest on the Debentures, in respect of which or for the benefit of which
money has been collected, ratably, without preference or priority of any kind, according to the
amounts due on such Debentures (including Additional Interest); and

     Fourth: The balance, if any, to the Company.

     Section 5.4. Proceedings by Securityholders.
No holder of any Debenture shall have any right to institute any suit, action or proceeding
for any remedy hereunder, unless such holder previously shall have given to the Trustee written
notice of an Event of Default with respect to the Debentures and unless the holders of not less
than 25% in aggregate principal amount of the Debentures then outstanding shall have given the
Trustee a written request to institute such action, suit or proceeding and shall have offered to
the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities
to be incurred thereby, and the Trustee for 60 days after its receipt of such notice, request and
offer of indemnity shall have failed to institute any such action, suit or proceeding.

     Notwithstanding any other provisions in this Indenture, however, the right of any holder of
any Debenture to receive payment of the principal of, premium, if any, and interest, on such
Debenture when due, or to institute suit for the enforcement of any such payment, shall not be
impaired or affected without the consent of such holder and by accepting a Debenture hereunder it
is expressly understood, intended and covenanted by the taker and holder of every Debenture with
every other such taker and holder and the

27

 

Trustee, that no one or more holders of Debentures shall
have any right in any manner whatsoever by virtue or by availing itself of any provision of this
Indenture to affect, disturb or prejudice the rights of the holders of any other Debentures, or to
obtain or seek to obtain priority over or preference to any other such holder, or to enforce any
right under this Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all holders of Debentures. For the protection and enforcement of the provisions
of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.

     Section 5.5. Proceedings by Trustee.
In case of an Event of Default hereunder the Trustee may in its discretion proceed to protect
and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as
the Trustee shall deem most effectual to protect and enforce any of such rights, either by suit in
equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific
enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of
any power granted in this Indenture, or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.

     Section 5.6. Remedies Cumulative and Continuing; Delay or Omission Not a Waiver.
Except as otherwise provided in Section 2.6, all powers and remedies given by this Article V
to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any other powers and remedies available to the Trustee or the
holders of the Debentures, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture or otherwise established
with respect to the Debentures, and no delay or omission of the Trustee or of any holder of any of
the Debentures to exercise any right, remedy or power accruing upon any Event of Default occurring
and continuing as aforesaid shall impair any such right, remedy or power, or shall be construed to
be a waiver of any such default or an acquiescence therein; and, subject to the provisions of
Section 5.4, every power and remedy given by this Article V or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as shall
be deemed expedient, by the Trustee (in accordance with its duties under Section 6.1) or by
the Securityholders.

     Section 5.7. Direction of Proceedings and Waiver of Defaults by Majority of
Securityholders.
The holders of a majority in aggregate principal amount of the Debentures affected (voting as
one class) at the time outstanding shall have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee with respect to such Debentures; provided, however, that
(subject to the provisions of Section 6.1) the Trustee shall have the right to decline to follow
any such direction if the Trustee shall determine that the action so directed would be unjustly
prejudicial to the holders not taking part in such direction or if the Trustee being advised by
counsel determines that the action or proceeding so directed may not lawfully be taken or if a
Responsible Officer of the Trustee shall determine that the action or proceedings so directed would
involve the Trustee in personal liability.

     The holders of a majority in aggregate principal amount of the Debentures at the time
outstanding may on behalf of the holders of all of the Debentures waive (or modify any previously
granted waiver of) any past default or Event of Default, and its consequences, except a default (a)
in the payment of principal of, premium, if any, or interest on any of the Debentures, (b) in
respect of covenants or provisions hereof which cannot be modified or amended without the consent
of the holder of each Debenture affected, or (c) in respect of the covenants contained in Section
3.9; provided, however, that if the Debentures are held by the Trust or a trustee
of such trust, such waiver or modification to such waiver shall not be effective until the holders
of a majority in Liquidation Amount of Trust Securities of the Trust shall have consented to such
waiver or modification to such waiver, provided, further, that if the consent of
the holder of each outstanding Debenture is required, such waiver shall not be effective until each
holder of the Trust

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Securities of the Trust shall have consented to such waiver. Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture
and the Company, the Trustee and the holders of the Debentures shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent thereon. Whenever any default or
Event of Default hereunder shall have been waived as permitted by this Section, said default or
Event of Default shall for all purposes of the Debentures and this Indenture be deemed to have been
cured and to be not continuing.

     Section 5.8. Notice of Defaults.
The Trustee shall, within 90 days after the actual knowledge by a Responsible Officer of the
Trustee of the occurrence of a default with respect to the Debentures, mail to all Securityholders,
as the names and addresses of such holders appear upon the Debenture Register, notice of all
defaults with respect to the Debentures known to the Trustee, unless such defaults shall have been
cured before the giving of such notice (the term “defaults” for the purpose of this Section 5.8
being hereby defined to be the events specified in clauses (a), (b), (c), (d), (e) and (f) of
Section 5.1, not including periods of grace, if any, provided for therein); provided,
however, that, except in the case of default in the payment of the principal of, premium,
if any, or interest on any of the Debentures, the Trustee shall be protected in withholding such
notice if and so long as a Responsible Officer of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Securityholders.

     Section 5.9. Undertaking to Pay Costs.
All parties to this Indenture agree, and each holder of any Debenture by his acceptance
thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee
for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; provided, however, that the provisions of this Section 5.9 shall
not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or
group of Securityholders, holding in the aggregate more than 10% in principal amount of the
Debentures outstanding, or to any suit instituted by any Securityholder for the enforcement of the
payment of the principal of (or premium, if any) or interest on any Debenture against the Company
on or after the same shall have become due and payable.

ARTICLE VI.

CONCERNING THE TRUSTEE

     Section 6.1. Duties and Responsibilities of Trustee.
With respect to the holders of Debentures issued hereunder, the Trustee, prior to the
occurrence of an Event of Default with respect to the Debentures and after the curing or waiving of
all Events of Default which may have occurred, with respect to the Debentures, undertakes to
perform such duties and only such duties as are specifically set forth in this Indenture, and no
implied covenants shall be read into this Indenture against the Trustee. In case an Event of
Default with respect to the Debentures has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the
same degree of care and skill in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

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

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

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

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

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

     (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith, in accordance with the direction of the Securityholders pursuant to Section 5.7,
relating to the time, method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture.

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

     Section 6.2. Reliance on Documents, Opinions, etc.
Except as otherwise provided in Section 6.1:

     (a) the 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, consent, order, bond, note, debenture or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;

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

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

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

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

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

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

     (h) with the exceptions of defaults under Sections 5.1(a) or (b), the Trustee shall not be
charged with knowledge of any Default or Event of Default with respect to the Debentures unless a
written notice of such Default or Event of Default shall have been given to the Trustee by the
Company or any other obligor on the Debentures or by any holder of the Debentures.

     Section 6.3. No Responsibility for Recitals, etc.
The recitals contained herein and in the Debentures (except in the certificate of
authentication of the Trustee or the Authenticating Agent) shall be taken as the statements of the
Company, and the Trustee and the Authenticating Agent assume no responsibility for the correctness
of the same. The Trustee and the Authenticating Agent make no representations as to the validity
or sufficiency of this Indenture or of the Debentures. The Trustee and the Authenticating Agent
shall not be accountable for the use or application by the Company of any Debentures or the
proceeds of any Debentures authenticated and delivered by the Trustee or the Authenticating Agent
in conformity with the provisions of this Indenture.

     Section 6.4. Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar
May Own Debentures.
The Trustee or any Authenticating Agent or any paying agent or any transfer agent or any
Debenture registrar, in its individual or any other capacity, may become the owner or pledgee of
Debentures with the same rights it would have if it were not Trustee, Authenticating Agent, paying
agent, transfer agent or Debenture registrar.

     Section 6.5. Moneys to be Held in Trust.
Subject to the provisions of Section 12.4, all moneys received by the Trustee or any paying
agent shall, until used or applied as herein provided, be held in trust for the purpose for which
they were received, but need not be segregated from other funds except to the extent required by
law. The Trustee and any paying agent shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Company. So long as no
Event of Default shall have occurred and be continuing, all interest allowed on any such moneys
shall be paid from time to time upon the written order of the Company, signed by the Chairman of
the Board of Directors, the Chief Executive Officer, the President, a Managing Director, a Vice
President, the Treasurer or an Assistant Treasurer of the Company.

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     Section 6.6. Compensation and Expenses of Trustee.
The Company covenants and agrees to pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation and the expenses and
disbursements of its counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence or willful misconduct. For
purposes of clarification, this Section 6.6 does not contemplate the payment by the Company of
acceptance or annual administration fees owing to the Trustee pursuant to the services to be
provided by the Trustee under this Indenture or the fees and expenses of the Trustee’s counsel in
connection with the closing of the transactions contemplated by this Indenture. The Company also
covenants to indemnify each of the Trustee or any predecessor Trustee (and its officers, agents,
directors and employees) for, and to hold it harmless against, any and all loss, damage, claim,
liability or expense including taxes (other than taxes based on the income of the Trustee) incurred
without negligence or willful misconduct on the part of the Trustee and arising out of or in
connection with the acceptance or administration of this trust, including the costs and expenses of
defending itself against any claim of liability. The obligations of the Company under this Section
6.6 to compensate and indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such
additional indebtedness shall be secured by a lien prior to that of the Debentures upon all
property and funds held or collected by the Trustee as such, except funds held in trust for the
benefit of the holders of particular Debentures.

     Without prejudice to any other rights available to the Trustee under applicable law, when the
Trustee incurs expenses or renders services in connection with an Event of Default specified in
Section 5.1(d), (e) or (f), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services are intended to constitute expenses of
administration under any applicable federal or state bankruptcy, insolvency or other similar law.

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

     Notwithstanding anything in this Indenture or any Debenture to the contrary, the Trustee shall
have no obligation whatsoever to advance funds to pay any principal of or interest on or other
amounts with respect to the Debentures or otherwise advance funds to or on behalf of the Company.

     Section 6.7. Officers’ Certificate as Evidence.
Except as otherwise provided in Sections 6.1 and 6.2, whenever in the administration of the
provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or omitting any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or
willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established
by an Officers’ Certificate delivered to the Trustee, and such certificate, in the absence of
negligence or willful misconduct on the part of the Trustee, shall be full warrant to the Trustee
for any action taken or omitted by it under the provisions of this Indenture upon the faith
thereof.

     Section 6.8. Eligibility of Trustee.
The Trustee hereunder shall at all times be a corporation organized and doing business under
the laws of the United States of America or any state or territory thereof or of the District of
Columbia or a corporation or other Person authorized under such laws to exercise corporate trust
powers, having (or whose obligations under this Indenture are guaranteed by an affiliate having) a
combined capital and surplus of at least 50 million U.S. dollars ($50,000,000.00) and subject to
supervision or examination by federal, state, territorial, or District of Columbia authority. If
such corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the purposes of this
Section 6.8 the combined

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capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent records of condition so published.

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

     In case at any time the Trustee shall cease to be eligible in accordance with the provisions
of this Section 6.8, the Trustee shall resign immediately in the manner and with the effect
specified in Section 6.9.

     If the Trustee has or shall acquire any “conflicting interest” within the meaning of § 310(b)
of the Trust Indenture Act of 1939, the Trustee shall either eliminate such interest or resign, to
the extent and in the manner described by this Indenture.

     Section 6.9. Resignation or Removal of Trustee

     (a) The Trustee, or any trustee or trustees hereafter appointed, may at any time resign by
giving written notice of such resignation to the Company and by mailing notice thereof, at the
Company’s expense, to the holders of the Debentures at their addresses as they shall appear on the
Debenture Register. Upon receiving such notice of resignation, the Company shall promptly appoint
a successor trustee or trustees by written instrument, in duplicate, executed by order of its Board
of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy
to the successor Trustee. If no successor Trustee shall have been so appointed and have accepted
appointment within 30 days after the mailing of such notice of resignation to the affected
Securityholders, the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee, or any Securityholder who has been a bona fide holder of a
Debenture or Debentures for at least six months may, subject to the provisions of Section 5.9, on
behalf of himself and all others similarly situated, petition any such court for the appointment of
a successor Trustee. Such court may thereupon, after such notice, if any, as it may deem proper
and prescribe, appoint a successor Trustee.

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

(1) the Trustee shall fail to comply with the provisions of Section 6.8 after
written request therefor by the Company or by any Securityholder who has been a bona
fide holder of a Debenture or Debentures for at least 6 months, or

(2) the Trustee shall cease to be eligible in accordance with the provisions of
Section 6.8 and shall fail to resign after written request therefor by the Company
or by any such Securityholder, or

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

then, in any such case, the Company may remove the Trustee and appoint a successor
Trustee by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the Trustee so removed
and one copy to the successor Trustee, or, subject to the provisions of Section 5.9,
any Securityholder who has been a bona fide holder of a Debenture or Debentures for
at least 6 months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

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Such court may thereupon, after such notice, if
any, as it may deem proper and prescribe, remove the Trustee and appoint successor
Trustee.

     (c) Upon prior written notice to the Company and the Trustee, the holders of a majority in
aggregate principal amount of the Debentures at the time outstanding may at any time remove the
Trustee and nominate a successor Trustee, which shall be deemed appointed as successor Trustee
unless within 10 Business Days after such nomination the Company objects thereto, in which case, or
in the case of a failure by such holders to nominate a successor Trustee, the Trustee so removed or
any Securityholder, upon the terms and conditions and otherwise as in subsection (a) of this
Section 6.9 provided, may petition any court of competent jurisdiction for an appointment of a
successor.

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

     Section 6.10. Acceptance by Successor Trustee.
Any successor Trustee appointed as provided in Section 6.9 shall execute, acknowledge and
deliver to the Company and to its predecessor Trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the retiring Trustee shall become effective
and such successor Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, duties and obligations with respect to the Debentures of its predecessor
hereunder, with like effect as if originally named as Trustee herein; but, nevertheless, on the
written request of the Company or of the successor Trustee, the Trustee ceasing to act shall, upon
payment of any amounts then due it pursuant to the provisions of Section 6.6, execute and deliver
an instrument transferring to such successor Trustee all the rights and powers of the Trustee so
ceasing to act and shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee thereunder. Upon request of any such successor Trustee,
the Company shall execute any and all instruments in writing for more fully and certainly vesting
in and confirming to such successor Trustee all such rights and powers. Any Trustee ceasing to act
shall, nevertheless, retain a lien upon all property or funds held or collected by such Trustee to
secure any amounts then due it pursuant to the provisions of Section 6.6.

     If a successor Trustee is appointed, the Company, the retiring Trustee and the successor
Trustee shall execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Debentures as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor Trustee, and shall add to or
change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the Trust hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and that each such Trustee shall be Trustee of a trust or trusts hereunder separate and
apart from any trust or trusts hereunder administered by any other such Trustee.

     No successor Trustee shall accept appointment as provided in this Section unless at the time
of such acceptance such successor Trustee shall be eligible under the provisions of Section 6.8.

     In no event shall a retiring Trustee be liable for the acts or omissions of any successor
Trustee hereunder.

     Upon acceptance of appointment by a successor Trustee as provided in this Section 6.10, the
Company shall mail notice of the succession of such Trustee hereunder to the holders of Debentures
at their addresses as they shall appear on the Debenture Register. If the Company fails to mail
such notice within 10 Business Days after the acceptance of appointment by the successor Trustee,
the successor Trustee shall cause such notice to be mailed at the expense of the Company.

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     Section 6.11. Succession by Merger, etc. Any corporation into which the Trustee may
be merged or converted or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder without the execution or filing of any paper or any further act
on the part of any of the parties hereto; provided such corporation shall be otherwise eligible and
qualified under this Article.

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

     Section 6.12. Authenticating Agents. There may be one or more Authenticating Agents appointed by the Trustee upon the request of
the Company with power to act on its behalf and subject to its direction in the authentication and
delivery of Debentures issued upon exchange or registration of transfer thereof as fully to all
intents and purposes as though any such Authenticating Agent had been expressly authorized to
authenticate and deliver Debentures; provided, however, that the Trustee shall have
no liability to the Company for any acts or omissions of the Authenticating Agent with respect to
the authentication and delivery of Debentures. Any such Authenticating Agent shall at all times be
a corporation organized and doing business under the laws of the United States or of any state or
territory thereof or of the District of Columbia authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of at least $50,000,000.00 and being
subject to supervision or examination by federal, state, territorial or District of Columbia
authority. If such corporation publishes reports of condition at least annually pursuant to law or
the requirements of such authority, then for the purposes of this Section 6.12 the combined capital
and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time an Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect herein specified in this Section.

     Any corporation into which any Authenticating Agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, consolidation or conversion
to which any Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of any Authenticating Agent, shall be the
successor of such Authenticating Agent hereunder, if such successor corporation is otherwise
eligible under this Section 6.12 without the execution or filing of any paper or any further act on
the part of the parties hereto or such Authenticating Agent.

     Any Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of any Authenticating
Agent with respect to the Debentures by giving written notice of termination to such Authenticating
Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time any Authenticating Agent shall cease to be eligible under this Section 6.12,
the Trustee
may, and upon the request of the Company shall, promptly appoint a successor Authenticating
Agent eligible under this Section 6.12, shall give written notice of such appointment to the
Company and shall mail notice of such appointment to all holders of Debentures as the names and addresses of such holders

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appear on the Debenture Register. Any successor Authenticating Agent
upon acceptance of its appointment hereunder shall become vested with all rights, powers, duties
and responsibilities with respect to the Debentures of its predecessor hereunder, with like effect
as if originally named as Authenticating Agent herein.

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

ARTICLE VII.

CONCERNING THE SECURITYHOLDERS

     Section 7.1. Action by Securityholders. Whenever in this Indenture it is provided
that the holders of a specified percentage in aggregate principal amount of the Debentures may take
any action (including the making of any demand or request, the giving of any notice, consent or
waiver or the taking of any other action) the fact that at the time of taking any such action the
holders of such specified percentage have joined therein may be evidenced (a) by any instrument or
any number of instruments of similar tenor executed by such Securityholders in person or by agent
or proxy appointed in writing, or (b) by the record of such holders of Debentures voting in favor
thereof at any meeting of such Securityholders duly called and held in accordance with the
provisions of Article VIII, or (c) by a combination of such instrument or instruments and any such
record of such a meeting of such Securityholders or (d) by any other method the Trustee deems
satisfactory.

     If the Company shall solicit from the Securityholders any request, demand, authorization,
direction, notice, consent, waiver or other action or revocation of the same, the Company may, at
its option, as evidenced by an Officers’ Certificate, fix in advance a record date for such
Debentures for the determination of Securityholders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other action or revocation of the same, but
the Company shall have no obligation to do so. If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other action or revocation of the same
may be given before or after the record date, but only the Securityholders of record at the close
of business on the record date shall be deemed to be Securityholders for the purposes of
determining whether Securityholders of the requisite proportion of outstanding Debentures have
authorized or agreed or consented to such request, demand, authorization, direction, notice,
consent, waiver or other action or revocation of the same, and for that purpose the outstanding
Debentures shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date shall be deemed
effective unless it shall become effective pursuant to the provisions of this Indenture not later
than 6 months after the record date.

     Section 7.2. Proof of Execution by Securityholders. Subject to the provisions of Section 6.1, 6.2 and 8.5, proof of the execution of any
instrument by a Securityholder or his agent or proxy shall be sufficient if made in accordance with
such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as
shall be satisfactory to the Trustee. The ownership of Debentures shall be proved by the Debenture
Register or by a certificate of the Debenture registrar. The Trustee may require such additional
proof of any matter referred to in this Section as it shall deem necessary.

     The record of any Securityholders’ meeting shall be proved in the manner provided in Section
8.6.

     Section 7.3. Who Are Deemed Absolute Owners. Prior to due presentment for registration of transfer of any Debenture, the Company, the
Trustee, any Authenticating Agent, any paying agent, any transfer agent and any Debenture registrar
may deem the Person in whose name such Debenture shall be

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registered upon the Debenture Register to be, and may treat him as, the absolute owner of such Debenture (whether or not such Debenture shall
be overdue) for the purpose of receiving payment of or on account of the principal of, premium, if
any, and interest on such Debenture and for all other purposes; and neither the Company nor the
Trustee nor any Authenticating Agent nor any paying agent nor any transfer agent nor any Debenture
registrar shall be affected by any notice to the contrary. All such payments so made to any holder
for the time being or upon his order shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for moneys payable upon any such Debenture.

     Section 7.4. Debentures Owned by Company Deemed Not Outstanding.
In determining whether the holders of the requisite aggregate principal amount of Debentures
have concurred in any direction, consent or waiver under this Indenture, Debentures which are owned
by the Company or any other obligor on the Debentures or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the Company or any
other obligor on the Debentures shall be disregarded and deemed not to be outstanding for the
purpose of any such determination; provided, however, that for the purposes of
determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver, only Debentures which a Responsible Officer of the Trustee actually knows are so owned
shall be so disregarded. Debentures so owned which have been pledged in good faith may be regarded
as outstanding for the purposes of this Section 7.4 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right to vote such Debentures and that the pledgee is not
the Company or any such other obligor or Person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company or any such other obligor. In the case
of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall
be full protection to the Trustee.

     Section 7.5. Revocation of Consents; Future Holders Bound.
At any time prior to (but not after) the evidencing to the Trustee, as provided in Section
7.1, of the taking of any action by the holders of the percentage in aggregate principal amount of
the Debentures specified in this Indenture in connection with such action, any holder (in cases
where no record date has been set pursuant to Section 7.1) or any holder as of an applicable record
date (in cases where a record date has been set pursuant to Section 7.1) of a Debenture (or any
Debenture issued in whole or in part in exchange or substitution therefor) the serial number of
which is shown by the evidence to be included in the Debentures the holders of which have consented
to such action may, by filing written notice with the Trustee at the Principal Office of the
Trustee and upon proof of holding as provided in Section 7.2, revoke such action so far as concerns
such Debenture (or so far as concerns the principal amount represented by any exchanged or
substituted Debenture). Except as aforesaid any such action taken by the holder of any Debenture
shall be conclusive and binding upon such holder and upon all future holders and owners of such
Debenture, and of any Debenture issued in exchange or substitution therefor or on registration of
transfer thereof, irrespective of whether or not any notation in regard thereto is made upon such
Debenture or any Debenture issued in exchange or substitution therefor.

ARTICLE VIII.

SECURITYHOLDERS’ MEETINGS

     Section 8.1. Purposes of Meetings.

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

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

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

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     (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to
the provisions of Section 9.2; or

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

     Section 8.2. Call of Meetings by Trustee.
The Trustee may at any time call a meeting of Securityholders to take any action specified in
Section 8.1, to be held at such time and at such place as the Trustee shall determine. Notice of
every meeting of the Securityholders, setting forth the time and the place of such meeting and in
general terms the action proposed to be taken at such meeting, shall be mailed to holders of
Debentures affected at their addresses as they shall appear on the Debentures Register and, if the
Company is not a holder of Debentures, to the Company. Such notice shall be mailed not less than
20 nor more than 180 days prior to the date fixed for the meeting.

     Section 8.3. Call of Meetings by Company or Securityholders.
In case at any time the Company pursuant to a Board Resolution, or the holders of at least 10%
in aggregate principal amount of the Debentures, as the case may be, then outstanding, shall have
requested the Trustee to call a meeting of Securityholders, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within 20 days after receipt of such request, then the Company or
such Securityholders may determine the time and the place for such meeting and may call such
meeting to take any action authorized in Section 8.1, by mailing notice thereof as provided in
Section 8.2.

     Section 8.4. Qualifications for Voting.
To be entitled to vote at any meeting of Securityholders a Person shall (a) be a holder of one
or more Debentures with respect to which the meeting is being held or (b) a Person appointed by an
instrument in writing as proxy by a holder of one or more such Debentures. The only Persons who
shall be entitled to be present or to speak at any meeting of Securityholders shall be the Persons
entitled to vote at such meeting and their counsel and any representatives of the Trustee and its
counsel and any representatives of the Company and its counsel.

     Section 8.5.
Regulations.

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

     The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Securityholders as provided in
Section 8.3, in which case the Company or the Securityholders calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by majority vote of the meeting.

     Subject to the provisions of Section 7.4, at any meeting each holder of Debentures with
respect to which such meeting is being held or proxy therefor shall be entitled to one vote for
each $1,000.00 principal amount of Debentures held or represented by him; provided,
however, that no vote shall be cast or counted at any meeting in respect of any Debenture
challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The
chairman of the meeting shall have no right to vote other than by virtue of Debentures held by him
or instruments in writing as aforesaid duly designating him as the Person to vote on behalf of
other Securityholders. Any meeting of Securityholders duly called pursuant to the provisions of
Section 8.2 or 8.3 may be adjourned from time to time by a majority of those

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present, whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice.

     Section 8.6. Voting.
The vote upon any resolution submitted to any meeting of holders of Debentures with respect to
which such meeting is being held shall be by written ballots on which shall be subscribed the
signatures of such holders or of their representatives by proxy and the serial number or numbers of
the Debentures held or represented by them. The permanent chairman of the meeting shall appoint
two inspectors of votes who shall count all votes cast at the meeting for or against any resolution
and who shall make and file with the secretary of the meeting their verified written reports in
triplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of Securityholders shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any vote by ballot taken
thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of
the notice of the meeting and showing that said notice was mailed as provided in Section 8.2. The
record shall show the serial numbers of the Debentures voting in favor of or against any
resolution. The record shall be signed and verified by the affidavits of the permanent chairman
and secretary of the meeting and one of the duplicates shall be delivered to the Company and the
other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the
ballots voted at the meeting.

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

     Section 8.7.
Quorum; Actions.
The Persons entitled to vote a majority in principal amount of the Debentures then outstanding
shall constitute a quorum for a meeting of Securityholders; provided, however, that
if any action is to be taken at such meeting with respect to a consent, waiver, request, demand,
notice, authorization, direction or other action which may be given by the holders of not less than
a specified percentage in principal amount of the Debentures then outstanding, the Persons holding
or representing such specified percentage in principal amount of the Debentures then outstanding
will constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for
any such meeting, the meeting shall, if convened at the request of Securityholders, be dissolved.
In any other case the meeting may be adjourned for a period of not less than 10 days as determined
by the permanent chairman of the meeting prior to the adjournment of such meeting. In the absence
of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as determined by the permanent
chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the
reconvening of any adjourned meeting shall be given as provided in Section 8.2, except that such
notice need be given only once not less than 5 days prior to the date on which the meeting is
scheduled to be reconvened. Notice of the reconvening of an adjourned meeting shall state
expressly the percentage, as provided above, of the principal amount of the Debentures then
outstanding which shall constitute a quorum.

     Except as limited by the provisos in the first paragraph of Section 9.2, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as
aforesaid may be adopted by the affirmative vote of the holders of a majority in principal amount
of the Debentures then outstanding; provided, however, that, except as limited by
the provisos in the first paragraph of Section 9.2, any resolution with respect to any consent,
waiver, request, demand, notice, authorization, direction or other action which this Indenture
expressly provides may be given by the holders of not less than a specified percentage in principal
amount of the Debentures then outstanding may be adopted at a meeting or an adjourned meeting duly
reconvened and at which a quorum is present as aforesaid only by the affirmative vote of the
holders of a not less than such specified percentage in principal amount of the Debentures then
outstanding.

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     Any resolution passed or decision taken at any meeting of holders of Debentures duly held in
accordance with this Section shall be binding on all the Securityholders, whether or not present or
represented at the meeting.

ARTICLE IX.

SUPPLEMENTAL INDENTURES

     Section 9.1. Supplemental Indentures without Consent of Securityholders.

     The Company, when authorized by a Board Resolution, and the Trustee may from time to time and
at any time enter into an indenture or indentures supplemental hereto, without the consent of the
Securityholders, for one or more of the following purposes:

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

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

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

     (d) to add to, delete from, or revise the terms of Debentures, including, without limitation,
any terms relating to the issuance, exchange, registration or transfer of Debentures, including to
provide for transfer procedures and restrictions substantially similar to those applicable to the
Capital Securities as required by Section 2.5 (for purposes of assuring that no registration of
Debentures is required under the Securities Act); provided, however, that any such
action shall not adversely affect the interests of the holders of the Debentures then outstanding
(it being understood, for purposes of this proviso, that transfer restrictions on Debentures
substantially similar to those that were applicable to Capital Securities shall not be deemed to
materially adversely affect the holders of the Debentures);

     (e) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Debentures and to add to or change any of the provisions of this Indenture as
shall be necessary to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee;

     (f) to make any change (other than as elsewhere provided in this paragraph) that does not
adversely affect the rights of any Securityholder in any material respect; or

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     (g) to provide for the issuance of and establish the form and terms and conditions of the
Debentures, to establish the form of any certifications required to be furnished pursuant to the
terms of this Indenture or the Debentures, or to add to the rights of the holders of Debentures.

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

     Any supplemental indenture authorized by the provisions of this Section 9.1 may be executed by
the Company and the Trustee without the consent of the holders of any of the Debentures at the time
outstanding, notwithstanding any of the provisions of Section 9.2.

     Section 9.2. Supplemental Indentures with Consent of Securityholders.
With the consent (evidenced as provided in Section 7.1) of the holders of not less than a
majority in aggregate principal amount of the Debentures at the time outstanding affected by such
supplemental indenture (voting as a class), the Company, when authorized by a Board Resolution, and
the Trustee may from time to time and at any time enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the holders of the Debentures; provided,
however, that no such supplemental indenture shall without the consent of the holders of
each Debenture then outstanding and affected thereby (i) change the fixed maturity of any
Debenture, or reduce the principal amount thereof or any premium thereon, or reduce the rate or
extend the time of payment of interest thereon, or reduce any amount payable on redemption thereof
or make the principal thereof or any interest or premium thereon payable in any coin or currency
other than that provided in the Debentures, or impair or affect the right of any Securityholder to
institute suit for payment thereof or impair the right of repayment, if any, at the option of the
holder, or (ii) reduce the aforesaid percentage of Debentures the holders of which are required to
consent to any such supplemental indenture; provided further, however, that
if the Debentures are held by a trust or a trustee of such trust, such supplemental indenture shall
not be effective until the holders of a majority in Liquidation Amount of Trust Securities shall
have consented to such supplemental indenture; provided further, however,
that if the consent of the Securityholder of each outstanding Debenture is required, such
supplemental indenture
shall not be effective until each holder of the Trust Securities shall have consented to such
supplemental indenture.

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

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

     It shall not be necessary for the consent of the Securityholders under this Section 9.2 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof.

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     Section 9.3. Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture pursuant to the provisions of this Article
IX, this Indenture shall be and be deemed to be modified and amended in accordance therewith and
the respective rights, limitations of rights, obligations, duties and immunities under this
Indenture of the Trustee, the Company and the holders of Debentures shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications and amendments and
all the terms and conditions of any such supplemental indenture shall be and be deemed to be part
of the terms and conditions of this Indenture for any and all purposes.

     Section 9.4. Notation on Debentures.
Debentures authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article IX may bear a notation as to any matter provided for in
such supplemental indenture. If the Company or the Trustee shall so determine, new Debentures so
modified as to conform, in the opinion of the Board of Directors of the Company, to any
modification of this Indenture contained in any such supplemental indenture may be prepared and
executed by the Company, authenticated by the Trustee or the Authenticating Agent and delivered in
exchange for the Debentures then outstanding.

     Section 9.5. Evidence of Compliance of Supplemental Indenture to be Furnished to
Trustee.
The Trustee, subject to the provisions of Sections 6.1 and 6.2, shall, in addition to the
documents required by Section 14.6, receive an Officers’ Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant hereto complies with the
requirements of this Article IX. The Trustee shall receive an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this Article IX is authorized or
permitted by, and conforms to, the terms of this Article IX and that it is proper for the Trustee
under the provisions of this Article IX to join in the execution thereof.

ARTICLE X.

REDEMPTION OF SECURITIES

     Section 10.1. Optional Redemption.
The Company shall have the right (subject to the receipt by the Company of prior approval (i)
if the Company is a bank holding company, from the Federal Reserve, if then required under
applicable capital guidelines or policies of the Federal Reserve or (ii) if the Company is a
savings and loan holding company, from the OTS, if then required under applicable capital
guidelines or policies of the OTS) to redeem the Debentures, in whole or in part, but in all cases
in a principal amount with integral multiples of $1,000.00, on any Interest Payment Date on or
after the Interest Payment Date in December 2012 (the “Redemption Date”), at the Redemption
Price.

     Section 10.2. Special Event Redemption.
If a Special Event shall occur and be continuing, the Company shall have the right (subject to
the receipt by the Company of prior approval (i) if the Company is a bank holding company, from the
Federal Reserve, if then required under applicable capital guidelines or policies of the Federal
Reserve or (ii) if the Company is a savings and loan holding company, from the OTS, if then
required under applicable capital guidelines or policies of the OTS) to redeem the Debentures in
whole, but not in part, at any Interest Payment Date, within 120 days following the occurrence of
such Special Event (the “Special Redemption Date”) at the Special Redemption Price.

     Section 10.3. Notice of Redemption; Selection of Debentures.
In case the Company shall desire to exercise the right to redeem all, or, as the case may be,
any part of the Debentures, it shall cause to be mailed a notice of such redemption at least 30 and
not more than 60 days prior to the Redemption Date or the Special Redemption Date to the holders of
Debentures so to be redeemed as a whole or in part at their last addresses as the same appear on
the Debenture Register. Such mailing shall be by first class mail. The notice if mailed in the
manner herein provided shall be conclusively presumed to have been duly given, whether or not the
holder receives such notice. In any case, failure to give such notice by

42

 

mail or any defect in the notice to the holder of any Debenture designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Debenture.

     Each such notice of redemption shall specify the CUSIP number, if any, of the Debentures to be
redeemed, the Redemption Date or the Special Redemption Date, as applicable, the Redemption Price
or the Special Redemption Price, as applicable, at which Debentures are to be redeemed, the place
or places of payment, that payment will be made upon presentation and surrender of such Debentures,
that interest accrued to the date fixed for redemption will be paid as specified in said notice,
and that on and after said date interest thereon or on the portions thereof to be redeemed will
cease to accrue. If less than all the Debentures are to be redeemed the notice of redemption shall
specify the numbers of the Debentures to be redeemed. In case the Debentures are to be redeemed in
part only, the notice of redemption shall state the portion of the principal amount thereof to be
redeemed and shall state that on and after the date fixed for redemption, upon surrender of such
Debenture, a new Debenture or Debentures in principal amount equal to the unredeemed portion
thereof will be issued.

     Prior to 10:00 a.m. New York City time on the Redemption Date or Special Redemption Date, as
applicable, the Company will deposit with the Trustee or with one or more paying agents an amount
of money sufficient to redeem on the Redemption Date or the Special Redemption Date, as applicable,
all the Debentures so called for redemption at the appropriate Redemption Price or Special
Redemption Price.

     If all, or less than all, the Debentures are to be redeemed, the Company will give the Trustee
notice not less than 45 nor more than 60 days, respectively, prior to the Redemption Date or
Special Redemption Date, as applicable, as to the aggregate principal amount of Debentures to be
redeemed and the Trustee shall select, in such manner as in its sole discretion it shall deem
appropriate and fair, the Debentures or portions thereof (in integral multiples of $1,000.00) to be
redeemed.

     Section 10.4. Payment of Debentures Called for Redemption.
If notice of redemption has been given as provided in Section 10.3, the Debentures or portions
of Debentures with respect to which such notice has been given shall become due and payable on the
Redemption Date or Special Redemption Date, as applicable, and at the place or places stated in
such notice at the applicable Redemption Price or Special Redemption Price and on and after said
date (unless the Company shall default in the payment of such Debentures at the Redemption Price or
Special Redemption Price, as applicable) interest on the Debentures or portions of Debentures so
called for redemption shall cease to accrue. On presentation and surrender of such Debentures at a
place of payment specified in said notice, such Debentures or the specified portions thereof shall
be paid and redeemed by the Company at the applicable Redemption Price or Special Redemption Price.

     Upon presentation of any Debenture redeemed in part only, the Company shall execute and the
Trustee shall authenticate and make available for delivery to the holder thereof, at the expense of
the Company, a new Debenture or Debentures of authorized denominations, in principal amount equal
to the unredeemed portion of the Debenture so presented.

ARTICLE XI.

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

     Section 11.1. Company May Consolidate, etc., on Certain Terms.

Nothing contained in this Indenture or in the Debentures shall prevent any consolidation or
merger of the Company with or into any other Person (whether or not affiliated with the Company) or
successive consolidations or mergers in which the Company or its successor or successors shall be a
party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the
property of the Company or its successor or successors as an entirety, or substantially as an
entirety, to any other Person (whether or not affiliated with the

43

 

Company, or its successor or successors) authorized to acquire and operate the same; provided, however, that the
Company hereby covenants and agrees that, upon any such consolidation, merger (where the Company is
not the surviving corporation), sale, conveyance, transfer or other disposition, the due and
punctual payment of the principal of (and premium, if any) and interest on all of the Debentures in
accordance with their terms, according to their tenor, and the due and punctual performance and
observance of all the covenants and conditions of this Indenture to be kept or performed by the
Company, shall be expressly assumed by supplemental indenture satisfactory in form to the Trustee
executed and delivered to the Trustee by the entity formed by such consolidation, or into which the
Company shall have been merged, or by the entity which shall have acquired such property.

     Section 11.2. Successor Entity to be Substituted.
In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and
upon the assumption by the successor entity, by supplemental indenture, executed and delivered to
the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the
principal of and premium, if any, and interest on all of the Debentures and the due and punctual
performance and observance of all of the covenants and conditions of this Indenture to be performed
or observed by the Company, such successor entity shall succeed to and be substituted for the
Company, with the same effect as if it had been named herein as the Company, and thereupon the
predecessor entity shall be relieved of any further liability or obligation hereunder or upon the Debentures. Such successor entity
thereupon may cause to be signed, and may issue in its own name, any or all of the Debentures
issuable hereunder which theretofore shall not have been signed by the Company and delivered to the
Trustee or the Authenticating Agent; and, upon the order of such successor entity instead of the
Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the
Trustee or the Authenticating Agent shall authenticate and deliver any Debentures which previously
shall have been signed and delivered by the officers of the Company, to the Trustee or the
Authenticating Agent for authentication, and any Debentures which such successor entity thereafter
shall cause to be signed and delivered to the Trustee or the Authenticating Agent for that purpose.
All the Debentures so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Debentures theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Debentures had been issued at the date of the execution hereof.

     Section 11.3. Opinion of Counsel to be Given to Trustee.
The Trustee, subject to the provisions of Sections 6.1 and 6.2, shall receive, in addition to
the Opinion of Counsel required by Section 9.5, an Opinion of Counsel as conclusive evidence that
any consolidation, merger, sale, conveyance, transfer or other disposition, and any assumption,
permitted or required by the terms of this Article XI complies with the provisions of this Article
XI.

ARTICLE XII.

SATISFACTION AND DISCHARGE OF INDENTURE

     Section 12.1. Discharge of Indenture. When

	 	(a)	 	the Company shall deliver to the Trustee for cancellation all Debentures
theretofore authenticated (other than any Debentures which shall have been destroyed,
lost or stolen and which shall have been replaced or paid as provided in Section 2.6)
and not theretofore canceled, or
	 
	 	(b)	 	all the Debentures not theretofore canceled or delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become due and
payable within 1 year or are to be called for redemption within 1 year under
arrangements satisfactory to the Trustee for the giving of notice of redemption, and
the Company shall deposit with the Trustee, in trust, funds, which shall be immediately
due and payable, sufficient to pay at maturity or upon redemption all of the Debentures
(other than any 

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	 	 	 	Debentures which shall have been destroyed, lost or stolen and which
shall have been replaced or paid as provided in Section 2.6) not theretofore canceled
or delivered to the Trustee for cancellation, including principal and premium, if any,
and interest due or to become due to such date of maturity or redemption date, as the
case may be, but excluding, however, the amount of any moneys for the payment of
principal of, and premium, if any, or interest on the Debentures (1) theretofore repaid
to the Company in accordance with the provisions of Section 12.4, or (2) paid to any
state or to the District of Columbia pursuant to its unclaimed property or similar
laws,

and if in the case of either clause (a) or clause (b) the Company shall also pay or cause to be
paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of
further effect except for the provisions of Sections 2.5, 2.6, 2.8, 3.1, 3.2, 3.4, 6.6, 6.8, 6.9
and 12.4 hereof shall survive until such Debentures shall mature and be paid. Thereafter, Sections
6.6 and 12.4 shall survive, and the Trustee, on demand of the Company accompanied by an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of
this Indenture have been complied with, and at the cost and expense of the Company, shall execute
proper instruments acknowledging satisfaction of and discharging this Indenture. The Company
agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly
incurred by the Trustee in connection with this Indenture or the Debentures.

     Section 12.2. Deposited Moneys to be Held in Trust by Trustee.
Subject to the provisions of Section 12.4, all moneys deposited with the Trustee pursuant to
Section 12.1 shall be held in trust in a non-interest bearing account and applied by it to the
payment, either directly or through any paying agent (including the Company if acting as its own
paying agent), to the holders of the particular Debentures for the payment of which such moneys
have been deposited with the Trustee, of all sums due and to become due thereon for principal, and
premium, if any, and interest.

     Section 12.3. Paying Agent to Repay Moneys Held.
Upon the satisfaction and discharge of this Indenture all moneys then held by any paying agent
of the Debentures (other than the Trustee) shall, upon demand of the Company, be repaid to it or
paid to the Trustee, and thereupon such paying agent shall be released from all further liability
with respect to such moneys.

     Section 12.4. Return of Unclaimed Moneys.
Any moneys deposited with or paid to the Trustee or any paying agent for payment of the
principal of, and premium, if any, or interest on Debentures and not applied but remaining
unclaimed by the holders of Debentures for 2 years after the date upon which the principal of, and
premium, if any, or interest on such Debentures, as the case may be, shall have become due and
payable, shall, subject to applicable escheatment laws, be repaid to the Company by the Trustee or
such paying agent on written demand; and the holder of any of the Debentures shall thereafter look
only to the Company for any payment which such holder may be entitled to collect, and all liability
of the Trustee or such paying agent with respect to such moneys shall thereupon cease.

ARTICLE XIII.

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

     Section 13.1. Indenture and Debentures Solely Corporate Obligations.
No recourse for the payment of the principal of or premium, if any, or interest on any
Debenture, or for any claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental
indenture, or in any such Debenture, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, employee, officer or director, as
such, past, present or future, of the Company or of any successor Person of the Company, either
directly or through the Company or any successor Person of the

45

 

Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, it being expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this Indenture and the
issue of the Debentures.

ARTICLE XIV.

MISCELLANEOUS PROVISIONS

     Section 14.1. Successors.
All the covenants, stipulations, promises and agreements of the Company in this Indenture
shall bind its successors and assigns whether so expressed or not.

     Section 14.2. Official Acts by Successor Entity.
Any act or proceeding by any provision of this Indenture authorized or required to be done or
performed by any board, committee or officer of the Company shall and may be done and performed
with like force and effect by the like board, committee, officer or other authorized Person of any
entity that shall at the time be the lawful successor of the Company.

     Section 14.3. Surrender of Company Powers.
The Company by instrument in writing executed by authority of at least 2/3 (two-thirds) of its
Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the
Company and thereupon such power so surrendered shall terminate both as to the Company, and as to
any permitted successor.

     Section 14.4. Addresses for Notices, etc.
Any notice, consent, direction, request, authorization, waiver or demand which by any
provision of this Indenture is required or permitted to be given, made, furnished or served by the
Trustee or by the Securityholders on or to the Company may be given or served in writing by being
deposited postage prepaid by registered or certified mail in a post office letter box addressed
(until another address is filed by the Company, with the Trustee for the purpose) to the Company,
550 West Main Street, Merced, California 95340, Attention: David A. Heaberlin. Any notice,
consent, direction, request, authorization, waiver or demand by any Securityholder or the Company
to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes,
if given or made in writing at the office of the Trustee, addressed to the Trustee, Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-1600, Attention: Corporate Trust
Administration. Any notice, consent, direction, request, authorization, waiver or demand on or to
any Securityholder shall be deemed to have been sufficiently given or made, for all purposes, if
given or made in writing at the address set forth in the Debenture Register.

     Section 14.5. Governing Law.
This Indenture and each Debenture shall be deemed to be a contract made under the law of the
State of New York, and for all purposes shall be governed by and construed in accordance with the
law of said State, without regard to conflict of laws principles thereof.

     Section 14.6. Evidence of Compliance with Conditions Precedent.
Upon any application or demand by the Company to the Trustee to take any action under any of
the provisions of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
stating that in the opinion of the signers all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating
that, in the opinion of such counsel, all such conditions precedent have been complied with.

     Each certificate or opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant provided for in this Indenture shall include (1)
a statement that the person making such certificate or opinion has read such covenant or condition;
(2) a brief statement as to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based; (3) a statement that, in
the opinion of such

46

 

person, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not in the opinion of such person, such
condition or covenant has been complied with.

     Section 14.7. Table of Contents, Headings, etc.
The table of contents and the titles and headings of the articles and sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

     Section 14.8. Execution in Counterparts.
This Indenture may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one and the same instrument.

     Section 14.9. Separability.
In case any one or more of the provisions contained in this Indenture or in the Debentures
shall for any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture
or of such Debentures, but this Indenture and such Debentures shall be construed as if such invalid
or illegal or unenforceable provision had never been contained herein or therein.

     Section 14.10. Assignment.
The Company will have the right at all times to assign any of its rights or obligations under
this Indenture to a direct or indirect wholly owned Subsidiary of the Company, provided that, in
the event of any such assignment, the Company will remain liable for all such obligations. Subject
to the foregoing, this Indenture is binding upon and inures to the benefit of the parties hereto
and their respective successors and assigns. This Indenture may not otherwise be assigned by the
parties hereto.

     Section 14.11. Acknowledgment of Rights.
The Company agrees that, with respect to any Debentures held by the Trust or the Institutional
Trustee of the Trust, if the Institutional Trustee of the Trust fails to enforce its rights under
this Indenture as the holder of Debentures held as the assets of such Trust after the holders of a
majority in Liquidation Amount of the Capital Securities of such Trust have so directed such
Institutional Trustee, a holder of record of such Capital Securities may, to the fullest extent
permitted by law, institute legal proceedings directly against the Company to enforce such
Institutional Trustee’s rights under this Indenture without first instituting any legal proceedings
against such trustee or any other Person. Notwithstanding the foregoing, if an Event of Default
has occurred and is continuing and such event is attributable to the failure of the Company to pay
interest (or premium, if any) or principal on the Debentures on the date such interest (or premium,
if any) or principal is otherwise payable (or in the case of redemption, on the redemption date),
the Company agrees that a holder of record of Capital Securities of the Trust may directly
institute a proceeding against the Company for enforcement of payment to such holder directly of
the principal of (or premium, if any) or interest on the Debentures having an aggregate principal
amount equal to the aggregate Liquidation Amount of the Capital Securities of such holder on or after
the respective due date specified in the Debentures.

ARTICLE XV.

SUBORDINATION OF DEBENTURES

     Section 15.1. Agreement to Subordinate.
The Company covenants and agrees, and each holder of Debentures by such Securityholder’s
acceptance thereof likewise covenants and agrees, that all Debentures shall be issued subject to
the provisions of this Article XV; and each holder of a Debenture, whether upon original issue or
upon transfer or assignment thereof, accepts and agrees to be bound by such provisions.

47

 

     The payment by the Company of the principal of, and premium, if any, and interest on all
Debentures shall, to the extent and in the manner hereinafter set forth, be subordinated and junior
in right of payment to the prior payment in full of all Senior Indebtedness of the Company, whether
outstanding at the date of this Indenture or thereafter incurred; provided,
however, that the Debentures shall rank pari passu in all material respects with any
current indebtedness, liabilities or obligations of the Company, or any Subsidiary of the Company,
under debt securities (or guarantees in respect of debt securities) issued to any trust, or a
trustee of a trust, partnership or other entity affiliated with the Company that is, directly or
indirectly, a finance subsidiary (as such term is defined in Rule 3a-5 under the Investment Company
Act of 1940) or other financing vehicle of the Company or any Subsidiary of the Company in
connection with the issuance by that entity of preferred securities or other securities that are
eligible to qualify for Tier 1 capital treatment (or its then equivalent) for purposes of the
capital adequacy guidelines of the Federal Reserve, as then in effect and applicable to the
Company.

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

     Section 15.2. Default on Senior Indebtedness.
In the event and during the continuation of any default by the Company in the payment of
principal, premium, interest or any other payment due on any Senior Indebtedness of the Company
following any grace period, or in the event that the maturity of any Senior Indebtedness of the
Company has been accelerated because of a default and such acceleration has not been rescinded or
canceled and such Senior Indebtedness has not been paid in full, then, in either case, no payment
shall be made by the Company with respect to the principal (including redemption) of, or premium,
if any, or interest on the Debentures.

     In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee
when such payment is prohibited by the preceding paragraph of this Section 15.2, such payment
shall, subject to Section 15.7, be held in trust for the benefit of, and shall be paid over or
delivered to, the holders of Senior Indebtedness or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have
been issued, as their respective interests may appear, but only to the extent that the holders of
the Senior Indebtedness (or their representative or representatives or a trustee) notify the
Trustee in writing within 90 days of such payment of the amounts then due and owing on the Senior
Indebtedness and only the amounts specified in such notice to the Trustee shall be paid to the
holders of Senior Indebtedness.

     Section 15.3. Liquidation, Dissolution, Bankruptcy.
Upon any payment by the Company or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any dissolution or winding-up
or liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy,
insolvency, receivership or other proceedings, all amounts due upon all Senior Indebtedness of the
Company shall first be paid in full, or payment thereof provided for in money in accordance with
its terms, before any payment is made by the Company, on account of the principal (and premium, if
any) or interest on the Debentures. Upon any such dissolution or winding-up or liquidation or
reorganization, any payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to which the Securityholders or the Trustee
would be entitled to receive from the Company, except for the provisions of this Article XV, shall
be paid by the Company, or by any receiver, trustee in bankruptcy, liquidating trustee, agent or
other Person making such payment or distribution, or by the Securityholders or by the Trustee under
this Indenture if received by them or it, directly to the holders of Senior Indebtedness (pro rata
to such holders on the basis of the respective amounts of Senior Indebtedness held by such holders,
as calculated by the Company) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent necessary to pay such
Senior Indebtedness in full, in

48

 

money or money’s worth, after giving effect to any concurrent payment or distribution to or for the holders of such Senior Indebtedness, before any payment or
distribution is made to the Securityholders or to the Trustee.

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

     For purposes of this Article XV, the words “cash, property or securities” shall not be deemed
to include shares of stock of the Company as reorganized or readjusted, or securities of the
Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article XV with respect to
the Debentures to the payment of all Senior Indebtedness, that may at the time be outstanding,
provided that (i) such Senior Indebtedness is assumed by the new corporation, if any, resulting
from any such reorganization or readjustment, and (ii) the rights of the holders of such Senior
Indebtedness are not, without the consent of such holders, altered by such reorganization or
readjustment. The consolidation of the Company with, or the merger of the Company into, another
corporation or the liquidation or dissolution of the Company following the conveyance or transfer
of its property as an entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided for in Article XI of this Indenture shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this Section if such
other corporation shall, as a part of such consolidation, merger, conveyance or transfer, comply
with the conditions stated in Article XI of this Indenture. Nothing in Section 15.2 or in this
Section shall apply to claims of, or payments to, the Trustee under or pursuant to Section 6.6 of
this Indenture.

     Section 15.4. Subrogation.
Subject to the payment in full of all Senior Indebtedness, the Securityholders shall be
subrogated to the rights of the holders of such Senior Indebtedness to receive payments or
distributions of cash, property or securities of the Company, applicable to such Senior
Indebtedness until the principal of (and premium, if any) and interest on the Debentures shall be
paid in full. For the purposes of such subrogation, no payments or distributions to the holders of
such Senior Indebtedness of any cash, property or securities to which the Securityholders or the
Trustee would be entitled except for the provisions of this Article XV, and no payment over
pursuant to the provisions of this Article XV to or for the benefit of the holders of such Senior
Indebtedness by Securityholders or the Trustee, shall, as between the Company, its creditors other
than holders of Senior Indebtedness of the Company, and the holders of the Debentures be deemed to
be a payment or distribution by the Company to or on account of such Senior Indebtedness. It is
understood that the provisions of this Article XV are and are intended solely for the purposes of
defining the relative rights of the holders of the Securities, on the one hand, and the holders of
such Senior Indebtedness, on the other hand.

     Nothing contained in this Article XV or elsewhere in this Indenture or in the Debentures is
intended to or shall impair, as between the Company, its creditors other than the holders of Senior
Indebtedness, and the holders of the Debentures, the obligation of the Company, which is absolute
and unconditional, to pay to the holders of the Debentures the principal of (and premium, if any)
and interest on the Debentures as and when the same shall become due and payable in accordance with
their terms, or

49

 

is intended to or shall affect the relative rights of the holders of the Debentures
and creditors of the Company, other than the holders of Senior Indebtedness, nor shall anything
herein or therein prevent the Trustee or the holder of any Debenture from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if
any, under this Article XV of the holders of such Senior Indebtedness in respect of cash, property
or securities of the Company, received upon the exercise of any such remedy.

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

     Section 15.5. Trustee to Effectuate Subordination.
Each Securityholder by such Securityholder’s acceptance thereof authorizes and directs the
Trustee on such Securityholder’s behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article XV and appoints the Trustee such
Securityholder’s attorney-in-fact for any and all such purposes.

     Section 15.6. Notice by the Company.
The Company shall give prompt written notice to a Responsible Officer of the Trustee at the
Principal Office of the Trustee of any fact known to the Company that would prohibit the making of
any payment of monies to or by the Trustee in respect of the Debentures pursuant to the provisions
of this Article XV. Notwithstanding the provisions of this Article XV or any other provision of
this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts that
would prohibit the making of any payment of monies to or by the Trustee in respect of the
Debentures pursuant to the provisions of this Article XV, unless and until a Responsible Officer of
the Trustee at the Principal Office of the Trustee shall have received written notice thereof from the Company or a holder or
holders of Senior Indebtedness or from any trustee therefor; and before the receipt of any such
written notice, the Trustee, subject to the provisions of Article VI of this Indenture, shall be
entitled in all respects to assume that no such facts exist; provided, however,
that if the Trustee shall not have received the notice provided for in this Section at least 2
Business Days prior to the date upon which by the terms hereof any money may become payable for any
purpose (including, without limitation, the payment of the principal of (or premium, if any) or
interest on any Debenture), then, anything herein contained to the contrary notwithstanding, the
Trustee shall have full power and authority to receive such money and to apply the same to the
purposes for which they were received, and shall not be affected by any notice to the contrary that
may be received by it within 2 Business Days prior to such date.

     The Trustee, subject to the provisions of Article VI of this Indenture, shall be entitled to
conclusively rely on the delivery to it of a written notice by a Person representing himself to be
a holder of Senior Indebtedness (or a trustee or representative on behalf of such holder), to
establish that such notice has been given by a holder of such Senior Indebtedness or a trustee or
representative on behalf of any such holder or holders. In the event that the Trustee determines
in good faith that further evidence is required with respect to the right of any Person as a holder
of such Senior Indebtedness to participate in any payment or distribution pursuant to this Article
XV, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of such Senior Indebtedness held by such Person, the extent to which such
Person is entitled to participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article XV, and, if such evidence is

50

 

not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such
Person to receive such payment.

     Section 15.7. Rights of the Trustee; Holders of Senior Indebtedness.
The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article XV in respect of any Senior Indebtedness at any time held by it, to the same extent as any
other holder of Senior Indebtedness, and nothing in this Indenture shall deprive the Trustee of any
of its rights as such holder.

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

     Nothing in this Article XV shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.6.

     Section 15.8. Subordination May Not Be Impaired.
No right of any present or future holder of any Senior Indebtedness to enforce subordination
as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company, or by any act or failure to act, in good faith, by any such holder,
or by any noncompliance by the Company, with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof that any such holder may have or otherwise be charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness may, at any time and from time to time, without the consent of or notice to the
Trustee or the Securityholders, without incurring responsibility to the Securityholders and without
impairing or releasing the subordination provided in this Article XV or the obligations hereunder
of the holders of the Debentures to the holders of such Senior Indebtedness, do any one or more of
the following: (i) change the manner, place or terms of payment or extend the time of payment of,
or renew or alter, such Senior Indebtedness, or otherwise amend or supplement in any manner such
Senior Indebtedness or any instrument evidencing the same or any agreement under which such Senior
Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any property
pledged, mortgaged or otherwise securing such Senior Indebtedness; (iii) release any Person liable
in any manner for the collection of such Senior Indebtedness; and (iv) exercise or refrain from
exercising any rights against the Company, and any other Person.

Signatures appear on the following page

51

 

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

	 	 	 	 	 
	 	CAPITAL CORP OF THE WEST

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WILMINGTON TRUST COMPANY, as Trustee

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

52

 

EXHIBIT A

FORM OF FLOATING RATE JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE

[FORM OF FACE OF SECURITY]

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

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON
WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN
ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THIS 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 (F) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE
INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY.

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

A-1

 

SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING.
ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN
WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY
OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION.

     THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000.00 AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY
ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN
$100,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.

     THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

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

Floating Rate Junior Subordinated Deferrable Interest Debenture

of

Capital Corp of the West

October 31, 2007

     Capital Corp of the West, a California corporation (the “Company” which term includes any
successor Person under the Indenture hereinafter referred to), for value received promises to pay
to Wilmington Trust Company, not in its individual capacity but solely as Institutional Trustee for
County Statutory Trust IV (the “Holder”) or registered assigns, the principal sum of twenty-five
million seven hundred seventy-four thousand dollars ($25,774,000.00) on December 15, 2037, and to
pay interest on said principal sum from October 31, 2007, or from the most recent Interest Payment
Date (as defined below) to which interest has been paid or duly provided for, quarterly (subject to
deferral as set forth herein) in arrears on March 15, June 15, September 15 and December 15 of each
year or if such day is not a Business Day, then the next succeeding Business Day (each such date,
an “Interest Payment Date”) (it being understood that interest accrues for any such non-Business
Day), commencing on the Interest Payment Date in December 2007, at an annual rate equal to [RATE]%
beginning on (and including) the date of original issuance and ending on (but excluding) the
Interest Payment Date in December 2007 and at an annual rate for each successive period beginning
on (and including) the Interest Payment Date in December 2007, and each succeeding Interest Payment
Date, and ending on (but excluding) the next succeeding Interest Payment Date (each a “Distribution
Period”), equal to 3-Month LIBOR, determined as described below, plus 3.25% (the “Coupon Rate”),
applied to the principal amount hereof, until the principal hereof is paid or duly provided for or
made available for payment, and on any overdue principal and (without duplication and to the extent
that payment of such interest is enforceable under applicable

A-2

 

law) on any overdue installment of interest (including Additional Interest) at the Interest
Rate in effect for each applicable period, compounded quarterly, from the dates such amounts are
due until they are paid or made available for payment. The amount of interest payable for any
period will be computed on the basis of the actual number of days in the Distribution Period
concerned divided by 360. The interest installment so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Debenture (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest installment, which shall be fifteen
Business Days prior to the day on which the relevant Interest Payment Date occurs. Any such
interest installment not so punctually paid or duly provided for shall forthwith cease to be
payable to the Holder on such regular record date and may be paid to the Person in whose name this
Debenture (or one or more Predecessor Securities) is registered at the close of business on a
special record date.

     “3-Month LIBOR” as used herein, means the London interbank offered interest rate for
three-month U.S. dollar deposits determined by the Trustee in the following order of priority: (i)
the rate (expressed as a percentage per annum) for U.S. dollar deposits having a three-month
maturity that appears on Reuters Page LIBOR01 as of 11:00 a.m. (London time) on the related
Determination Date (“Reuters Page LIBOR01” means the display designated as “LIBOR01” on Reuters or
such other page as may replace Reuters Page LIBOR01 on that service or such other service or
services as may be nominated by the British Bankers’ Association as the information vendor for the
purpose of displaying London interbank offered rates for U.S. dollar deposits); (ii) if such rate
cannot be identified on the related Determination Date, the Trustee will request the principal
London offices of four leading banks in the London interbank market to provide such banks’ offered
quotations (expressed as percentages per annum) to prime banks in the London interbank market for
U.S. dollar deposits having a three-month maturity as of 11:00 a.m. (London time) on such
Determination Date. If at least two quotations are provided, 3-Month LIBOR will be the arithmetic
mean of such quotations; (iii) if fewer than two such quotations are provided as requested in
clause (ii) above, the Trustee will request four major New York City banks to provide such banks’
offered quotations (expressed as percentages per annum) to leading European banks for loans in U.S.
dollars as of 11:00 a.m. (London time) on such Determination Date. If at least two such quotations
are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; and (iv) if fewer than
two such quotations are provided as requested in clause (iii) above, 3-Month LIBOR will be a
3-Month LIBOR determined with respect to the Distribution Period immediately preceding such current
Distribution Period. If the rate for U.S. dollar deposits having a three-month maturity that
initially appears on Reuters Page LIBOR01 as of 11:00 a.m. (London time) on the related
Determination Date is superseded on the Reuters Page LIBOR01 by a corrected rate by 12:00 noon
(London time) on such Determination Date, then the corrected rate as so substituted on the
applicable page will be the applicable 3-Month LIBOR for such Determination Date. As used herein,
“Determination Date” means the date that is two London Banking Days (i.e., a business day in which
dealings in deposits in U.S. dollars are transacted in the London interbank market) preceding the
commencement of the relevant Distribution Period.

     The Interest Rate for any Distribution Period will at no time be higher than the maximum rate
then permitted by New York law as the same may be modified by United States law.

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

A-3

 

     The principal of and interest on this Debenture shall be payable at the office or agency of
the Trustee (or other paying agent appointed by the Company) maintained for that purpose in any
coin or currency of the United States of America that at the time of payment is legal tender for
payment of public and private debts; provided, however, that payment of interest
may be made by check mailed to the registered holder at such address as shall appear in the
Debenture Register if a request for a wire transfer by such holder has not been received by the
Company or by wire transfer to an account appropriately designated by the holder hereof.
Notwithstanding the foregoing, so long as the holder of this Debenture is the Institutional
Trustee, the payment of the principal of and interest on this Debenture will be made in immediately
available funds at such place and to such account as may be designated by the Trustee.

     So long as no Acceleration Event of Default has occurred and is continuing, the Company shall
have the right, from time to time, and without causing an Event of Default, to defer payments of
interest on the Debentures by extending the interest payment period on the Debentures at any time
and from time to time during the term of the Debentures, for up to 20 consecutive quarterly periods
(each such extended interest payment period, an “Extension Period”), during which Extension Period
no interest (including Additional Interest) shall be due and payable (except any Additional Sums
that may be due and payable). No Extension Period may end on a date other than an Interest Payment
Date. During an Extension Period, interest will continue to accrue on the Debentures, and interest
on such accrued interest will accrue at an annual rate equal to the Interest Rate in effect for
such Extension Period, compounded quarterly from the date such interest would have been payable
were it not for the Extension Period, to the extent permitted by law (such interest referred to
herein as “Additional Interest”). At the end of any such Extension Period the Company shall pay
all interest then accrued and unpaid on the Debentures (together with Additional Interest thereon);
provided, however, that no Extension Period may extend beyond the Maturity Date;
provided further, however, that during any such Extension Period, the
Company shall not and shall not permit any Affiliate to engage in any of the activities or
transactions described on the reverse side hereof and in the Indenture. Prior to the termination
of any Extension Period, the Company may further extend such period, provided that such period
together with all such previous and further consecutive extensions thereof shall not exceed 20
consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any
Extension Period and upon the payment of all accrued and unpaid interest and Additional Interest,
the Company may commence a new Extension Period, subject to the foregoing requirements. No
interest or Additional Interest shall be due and payable during an Extension Period, except at the
end thereof, but each installment of interest that would otherwise have been due and payable during
such Extension Period shall bear Additional Interest. The Company must give the Trustee notice of
its election to begin or extend an Extension Period by the close of business at least 15 Business
Days prior to the Interest Payment Date with respect to which interest on the Debentures would have
been payable except for the election to begin or extend such Extension Period.

     The indebtedness evidenced by this Debenture is, to the extent provided in the Indenture,
subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness,
and this Debenture is issued subject to the provisions of the Indenture with respect thereto. Each
holder of this Debenture, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to take such action as may
be necessary or appropriate to acknowledge or effectuate the subordination so provided and (c)
appoints the Trustee his or her attorney-in-fact for any and all such purposes. Each holder
hereof, by his or her acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of Senior
Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such
holder upon said provisions.

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

A-4

 

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

A-5

 

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

	 	 	 	 	 
	 	CAPITAL CORP OF THE WEST

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 

A-6

 

	 	 	 	 	 

[FORM OF REVERSE OF DEBENTURE]

     This Debenture is one of the floating rate junior subordinated deferrable interest debentures
of the Company, all issued or to be issued under and pursuant to the Indenture dated as of October
31, 2007 (the “Indenture”), duly executed and delivered between the Company and the Trustee, to
which Indenture reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the
Debentures. The Debentures are limited in aggregate principal amount as specified in the
Indenture.

     Upon the occurrence and continuation of a Special Event prior to the Interest Payment Date in
December 2012, the Company shall have the right to redeem the Debentures in whole, but not in part,
at any Interest Payment Date, within 120 days following the occurrence of such Special Event, at
the Special Redemption Price.

     In addition, the Company shall have the right to redeem the Debentures, in whole or in part,
but in all cases in a principal amount with integral multiples of $1,000.00, on any Interest
Payment Date on or after the Interest Payment Date in December 2012, at the Redemption Price.

     Prior to 10:00 a.m. New York City time on the Redemption Date or Special Redemption Date, as
applicable, the Company will deposit with the Trustee or with one or more paying agents an amount
of money sufficient to redeem on the Redemption Date or the Special Redemption Date, as applicable,
all the Debentures so called for redemption at the appropriate Redemption Price or Special
Redemption Price.

     If all, or less than all, the Debentures are to be redeemed, the Company will give the Trustee
notice not less than 45 nor more than 60 days, respectively, prior to the Redemption Date or
Special Redemption Date, as applicable, as to the aggregate principal amount of Debentures to be
redeemed and the Trustee shall select, in such manner as in its sole discretion it shall deem
appropriate and fair, the Debentures or portions thereof (in integral multiples of $1,000.00) to be
redeemed.

     Notwithstanding the foregoing, any redemption of Debentures by the Company shall be subject to
the receipt of any and all required regulatory approvals.

     In case an Acceleration Event of Default shall have occurred and be continuing, upon demand of
the Trustee, the principal of all of the Debentures shall become due and payable in the manner,
with the effect and subject to the conditions provided in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the holders of not less than a majority in aggregate principal amount of the Debentures at the time
outstanding, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner the rights of the holders of the Debentures;
provided, however, that no such supplemental indenture shall without the consent of
the holders of each Debenture then outstanding and affected thereby (i) change the fixed maturity
of any Debenture, or reduce the principal amount thereof or any premium thereon, or reduce the rate
or extend the time of payment of interest thereon, or reduce any amount payable on redemption
thereof or make the principal thereof or any interest or premium thereon payable in any coin or
currency other than that provided in the Debentures, or impair or affect the right of any
Securityholder to institute suit for payment thereof or impair the right of repayment, if any, at
the option of the holder, or (ii) reduce the aforesaid percentage of Debentures the holders of
which are required to consent to any such supplemental indenture.

A-7

 

     The Indenture also contains provisions permitting the holders of a majority in aggregate
principal amount of the Debentures at the time outstanding on behalf of the holders of all of the
Debentures to waive (or modify any previously granted waiver of) any past default or Event of
Default, and its consequences, except a default (a) in the payment of principal of, premium, if
any, or interest on any of the Debentures, (b) in respect of covenants or provisions hereof or of
the Indenture which cannot be modified or amended without the consent of the holder of each
Debenture affected, or (c) in respect of the covenants contained in Section 3.9 of the Indenture;
provided, however, that if the Debentures are held by the Trust or a trustee of
such trust, such waiver or modification to such waiver shall not be effective until the holders of
a majority in Liquidation Amount of Trust Securities of the Trust shall have consented to such
waiver or modification to such waiver, provided, further, that if the consent of
the holder of each outstanding Debenture is required, such waiver shall not be effective until each
holder of the Trust Securities of the Trust shall have consented to such waiver. Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes of the Indenture
and the Company, the Trustee and the holders of the Debentures shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent thereon. Whenever any default or
Event of Default hereunder shall have been waived as permitted by the Indenture, said default or
Event of Default shall for all purposes of the Debentures and the Indenture be deemed to have been
cured and to be not continuing.

     No reference herein to the Indenture and no provision of this Debenture or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and premium, if any, and interest, including Additional Interest, on this
Debenture at the time and place and at the rate and in the money herein prescribed.

     The Company has agreed that if Debentures are initially issued to the Trust or a trustee of
such Trust in connection with the issuance of Trust Securities by the Trust (regardless of whether
Debentures continue to be held by such Trust) and (i) there shall have occurred and be continuing
an Event of Default, (ii) the Company shall be in default with respect to its payment of any
obligations under the Capital Securities Guarantee, or (iii) the Company shall have given notice of
its election to defer payments of interest on the Debentures by extending the interest payment
period as provided herein and such Extension Period, or any extension thereof, shall be continuing,
then the Company shall not, and shall not allow any Affiliate of the Company to, (x) declare or pay
any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with
respect to, any of the Company’s capital stock or its Affiliates’ capital stock (other than
payments of dividends or distributions to the Company or payments of dividends from direct or
indirect subsidiaries of the Company to their parent corporations, which also shall be direct or
indirect subsidiaries of the Company) or make any guarantee payments with respect to the foregoing
or (y) make any payment of principal of or interest or premium, if any, on or repay, repurchase or
redeem any debt securities of the Company or any Affiliate that rank pari passu in all respects
with or junior in interest to the Debentures (other than, with respect to clauses (x) and (y)
above, (1) repurchases, redemptions or other acquisitions of shares of capital stock of the
Company in connection with any employment contract, benefit plan or other similar arrangement with
or for the benefit of one or more employees, officers, directors or consultants, in connection with
a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of
capital stock of the Company (or securities convertible into or exercisable for such capital stock)
as consideration in an acquisition transaction entered into prior to the applicable Extension
Period, if any, (2) as a result of any exchange or conversion of any class or series of the
Company’s capital stock (or any capital stock of a subsidiary of the Company) for any class or
series of the Company’s capital stock or of any class or series of the Company’s indebtedness for
any class or series of the Company’s capital stock, (3) the purchase of fractional interests in
shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such
capital stock or the security being converted or exchanged, (4) any declaration of a dividend in
connection with any stockholders’ rights plan, or the issuance of rights, stock or other

A-8

 

property under any stockholders’ rights plan, or the redemption or repurchase of rights
pursuant thereto, (5) any dividend in the form of stock, warrants, options or other rights where
the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is
the same stock as that on which the dividend is being paid or ranks pari passu with or junior to
such stock and any cash payments in lieu of fractional shares issued in connection therewith, (6)
payments of principal or interest on debt securities or payments of cash dividends or distributions
on any capital stock issued by an Affiliate that is not, in whole or in part, a subsidiary of the
Company (or any redemptions, repurchases or liquidation payments on such stock or securities), or
(7) payments under the Capital Securities Guarantee).

     The Debentures are issuable only in registered, certificated form without coupons and in
minimum denominations of $100,000.00 and any multiple of $1,000.00 in excess thereof. As provided
in the Indenture and subject to the transfer restrictions and limitations as may be contained
herein and therein from time to time, this Debenture is transferable by the holder hereof on the
Debenture Register of the Company. Upon due presentment for registration of transfer of any
Debenture at the Principal Office of the Trustee or at any office or agency of the Company
maintained for such purpose as provided in Section 3.2 of the Indenture, the Company shall execute,
the Company or the Trustee shall register and the Trustee or the Authenticating Agent shall
authenticate and make available for delivery in the name of the transferee or transferees a new
Debenture for a like aggregate principal amount. All Debentures presented for registration of
transfer or for exchange or payment shall (if so required by the Company or the Trustee or the
Authenticating Agent) be duly endorsed by, or be accompanied by a written instrument or instruments
of transfer in form satisfactory to, the Company and the Trustee or the Authenticating Agent duly
executed by the holder or his attorney duly authorized in writing. No service charge shall be made
for any exchange or registration of transfer of Debentures, but the Company or the Trustee may
require payment of a sum sufficient to cover any tax, fee or other governmental charge that may be
imposed in connection therewith.

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

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

     Capitalized terms used and not defined in this Debenture shall have the meanings assigned in
the Indenture dated as of the date of original issuance of this Debenture between the Trustee and
the Company.

A-9

 

     THE INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.

A-10

 

EXHIBIT B

FORM OF CERTIFICATE TO TRUSTEE

     Pursuant to Section 3.5 of the Indenture between Capital Corp of the West, as the Company (the
“Company”), and Wilmington Trust Company, as Trustee, dated as of October 31, 2007 (the
“Indenture”), the undersigned hereby certifies as follows:

	 	1.	 	In my capacity as an officer of the Company, I would normally have knowledge of
any default by the Company during the last fiscal year in the performance of any
covenants of the Company contained in the Indenture.
	 
	 	2.	 	[To my knowledge, the Company is not in default in the performance of any
covenants contained in the Indenture.
	 
	 		 	or, alternatively:
	 
	 	 	 	I am aware of the default(s) in the performance of covenants in the Indentures, as
specified below.]

     Capitalized terms used herein, and not otherwise defined herein, have the respective meanings
ascribed thereto in the Indenture.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate.

Date:

	 	 	 	 	 
	 	  	 	 
	 	 	Name:  	 
	 	 	Title:  	 
	 

B-1

 

EXHIBIT C

FORM OF QUARTERLY REPORT

Wilmington Trust Company

1100 N. Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration — PreTSL

BANK HOLDING COMPANY

As of [March 31, June 30, September 30 or December 31], 20     

	 	 	 	 	 
	 
	 	 	 	 
	Tier 1 to Risk Weighted Assets
	 	 	                    	%
	 
	 	 	 	 
	Ratio of Double Leverage
	 	 	                    	%
	 
	 	 	 	 
	Non-Performing Assets to Loans and OREO
	 	 	                    	%
	 
	 	 	 	 
	Ratio of Reserves to Non-Performing Loans
	 	 	                    	%
	 
	 	 	 	 
	Ratio of Net Charge-Offs to Loans
	 	 	                    	%
	 
	 	 	 	 
	Return on Average Assets (annualized)**
	 	 	                    	%
	 
	 	 	 	 
	Net Interest Margin (annualized)**
	 	 	                    	%
	 
	 	 	 	 
	Efficiency Ratio
	 	 	                    	%
	 
	 	 	 	 
	Ratio of Loans to Assets
	 	 	                    	%
	 
	 	 	 	 
	Ratio of Loans to Deposits
	 	 	                    	%
	 
	 	 	 	 
	Total Assets
	 	$	                    	 
	 
	 	 	 	 
	Year to Date Income
	 	$	                    	 

 

			
	* 	 	A table describing the quarterly report calculation procedures is provided on page C-2
	 
	**	 	To annualize Return on Average Assets and Net Interest Margin do the following:
	 
	1st 	 	Quarter-multiply income statement item by 4, then divide by balance sheet item(s)
	 
	2nd 	 	Quarter-multiply income statement item by 2, then divide by balance sheet item(s)
	 
	3rd 	 	Quarter-divide income statement item by 3, then multiply by 4, then divide by
balance sheet item(s)
	 
	4th 	 	Quarter-should already be an annual number

NO ADJUSTMENT SHOULD BE MADE TO BALANCE SHEET ITEMS

	 	 	 	 	 
	cc:
	 	FTN Financial Capital Markets	 	Keefe, Bruyette & Woods, Inc.
	 
	 	845 Crossover Lane, Suite 150	 	787 7th Avenue, 4th Floor
	 
	 	Memphis, Tennessee  38117	 	New York, New York  10019
	 
	 	Attention:  Structured Finance Group	 	Attention:  Mitchell Kleinman, General Counsel

C-1

 

Financial Definitions

	 	 	 
	Report Item	 	Description of Calculation
	 
	 	 
	“Tier 1 Capital” to Risk
Weighted Assets

	 	Tier 1 Risk Ratio: Core Capital (Tier 1)/Risk-Adjusted

Assets
	 
	 	 
	Ratio of Double Leverage

	 	Total equity investments in subsidiaries
divided by the total equity capital. This
field is calculated at the parent company
level. “Subsidiaries” include bank, bank
holding company, and nonbank subsidiaries.
	 
	 	 
	Non-Performing Assets to
Loans and OREO

	 	Total Nonperforming Assets (NPLs+Foreclosed

Real Estate+Other Nonaccrual & Repossessed

Assets)/ Total Loans + Foreclosed Real

Estate
	 
	 	 
	Ratio of Reserves to
Non-Performing Loans

	 	Total Loan Loss and Allocated Transfer Risk
Reserves/ Total Nonperforming Loans
(Nonaccrual + Restructured)
	 
	 	 
	Ratio of Net Charge-Offs to
Loans

	 	Net charge offs for the period as a
percentage of average loans.
	 
	 	 
	Return on Assets

	 	Net Income as a percentage of Assets.
	 
	 	 
	Net Interest Margin

	 	(Net Interest Income Fully Taxable

Equivalent, if available / Average Earning

Assets)
	 
	 	 
	Efficiency Ratio

	 	(Noninterest Expense)/ (Net Interest Income

Fully Taxable Equivalent, if available, plus

Noninterest Income)
	 
	 	 
	Ratio of Loans to Assets

	 	Total Loans & Leases (Net of Unearned Income
& Gross of Reserve)/ Total Assets
	 
	 	 
	Ratio of Loans to Deposits

	 	Total Loans & Leases (Net of Unearned Income
& Gross of Reserve)/ Total Deposits
(Includes Domestic and Foreign Deposits)
	 
	 	 
	Total Assets

	 	The sum of total assets. Includes cash and
balances due from depository institutions;
securities; federal funds sold and
securities purchased under agreements to
resell; loans and lease financing
receivables; trading assets; premises and
fixed assets; other real estate owned;
investments in unconsolidated subsidiaries
and associated companies; customer’s
liability on acceptances outstanding;
intangible assets; and other assets.
	 
	 	 
	Net Income

	 	The sum of income (loss) before
extraordinary items and other adjustments
and extraordinary items; and other
adjustments, net of income taxes.

C-2

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