Document:

exv4w2

 

Exhibit 4.2

 

ENTERPRISE PRODUCTS OPERATING L.P.,

as Issuer

ENTERPRISE PRODUCTS PARTNERS L.P.,

as Parent Guarantor

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

AMENDED AND RESTATED EIGHTH SUPPLEMENTAL INDENTURE

Dated as of August 25, 2006

to

Indenture dated as of October 4, 2004

 

8.375% FIXED/FLOATING RATE JUNIOR SUBORDINATED NOTES DUE 2066

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.1 Definition of Terms
	 	 	- 2 -	 
	Section 1.2 Rules of Construction
	 	 	- 8 -	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	GENERAL TERMS AND CONDITIONS OF THE LoTSSM
	 	 	 	 
	 
	 	 	 	 
	Section 2.1 Designation and Principal Amount
	 	 	- 8 -	 
	Section 2.2 Maturity
	 	 	- 9 -	 
	Section 2.3 Form
	 	 	- 9 -	 
	Section 2.4 Registrar and Paying Agent
	 	 	- 9 -	 
	Section 2.5 Transfer and Exchange
	 	 	- 9 -	 
	Section 2.6 Interest Rates; Payment of Principal and Interest
	 	 	- 9 -	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION OF THE LoTSSM
	 	 	 	 
	 
	 	 	 	 
	Section 3.1 Optional Redemption
	 	 	- 11 -	 
	Section 3.2 Certain Redemption Procedures
	 	 	- 11 -	 
	Section 3.3 No Sinking Fund
	 	 	- 11 -	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	DEFERRAL OF INTEREST
	 	 	 	 
	 
	 	 	 	 
	Section 4.1 Optional Deferral of Interest
	 	 	- 12 -	 
	Section 4.2 Notice of Deferrals
	 	 	- 12 -	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	CERTAIN COVENANTS
	 	 	 	 
	 
	 	 	 	 
	Section 5.1 Covenants in Indenture
	 	 	- 13 -	 
	Section 5.2 Restricted Payments
	 	 	- 13 -	 

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	 	 	Page	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	SUBORDINATION
	 	 	 	 
	 
	 	 	 	 
	Section 6.1 Agreement to Subordinate
	 	 	- 14 -	 
	Section 6.2 Amendment and Restatement of Section 12.02 of the Base Indenture
	 	 	- 14 -	 
	Section 6.3 Amendment and Restatement of Section 12.03 of the Base Indenture
	 	 	- 15 -	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	GUARANTEE OF THE LoTSSM
	 	 	 	 
	 
	 	 	 	 
	Section 7.1 Guarantee of the LoTSSM
	 	 	- 17 -	 
	Section 7.2 Subordination of Guarantee
	 	 	- 18 -	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	APPLICABILITY OF DEFEASANCE AND COVENANT DEFEASANCE
	 	 	 	 
	 
	 	 	 	 
	Section 8.1 Applicability of Defeasance and Covenant Defeasance
	 	 	- 18 -	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	EVENTS OF DEFAULT AND REMEDIES OF THE TRUSTEE AND HOLDERS OF LoTSSM
	 	 	 	 
	 
	 	 	 	 
	Section 9.1 Amendment and Restatement of Section 6.01 of the Base Indenture
	 	 	- 18 -	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Section 10.1 Ratification of Base Indenture
	 	 	- 19 -	 
	Section 10.2 No Recourse to General Partner
	 	 	- 20 -	 
	Section 10.3 Separateness
	 	 	- 20 -	 
	Section 10.4 Trustee Not Responsible for Recitals
	 	 	- 20 -	 
	Section 10.5 Governing Law
	 	 	- 20 -	 
	Section 10.6 Time is of the Essence
	 	 	- 20 -	 
	Section 10.7 Separability
	 	 	- 20 -	 
	Section 10.8 Treatment of LoTSSM
	 	 	- 21 -	 
	Section 10.9 Counterparts
	 	 	- 21 -	 
	Section 10.10 Withholding
	 	 	- 21 -	 

-ii-

 

          THIS AMENDED AND RESTATED EIGHTH SUPPLEMENTAL INDENTURE, dated as of August 25, 2006 (this
“Eighth Supplemental Indenture”), is among (i) Enterprise Products Operating L.P., a
Delaware limited partnership (the “Company”), (ii) Enterprise Products Partners L.P., a
Delaware limited partnership (the “Parent Guarantor”), and (iii) Wells Fargo Bank, National
Association, a national banking association, as trustee (the “Trustee”).

W I T N E S S E T H :

          WHEREAS, the Company and the Parent Guarantor have executed and delivered to the Trustee an
Indenture, dated as of October 4, 2004 (the “Base Indenture”), providing for the issuance
by the Company from time to time of its debentures, notes, bonds, or other evidences of
indebtedness, issued and to be issued in one or more series unlimited as to principal amount (the
“Debt Securities”), and the guarantee by each Guarantor of the Debt Securities;

          WHEREAS, on or before the date hereof the Company has issued other series of Debt Securities
pursuant to previous supplements to the Base Indenture;

          WHEREAS, on July 18, 2006, the Company, the Parent Guarantor and the Trustee entered into an
Eighth Supplemental Indenture (the “Original Eighth Supplemental Indenture”) pursuant to
which a series of Debt Securities designated the “8.375% Fixed/Floating Rate Junior Subordinated
Notes due 2066” (the “LoTSSM”) were created and pursuant to which $300,000,000
in aggregate principal amount of the LoTSSM were issued;

          WHEREAS, the Company desires to cause the issuance of additional LoTSSM;

          WHEREAS, Section 9.01(c) of the Base Indenture allows the Company, the Parent Guarantor and
the Trustee, without the consent of the holders of any Debt Securities, when authorized by
resolutions of the Board of Directors of the General Partner, to enter into an indenture
supplemental to the Base Indenture to cure any ambiguity or omission or to correct or supplement
any provision contained therein, in any supplemental indenture or in any Debt Securities that may
be defective or inconsistent with any other provision contained therein, in any supplemental
indenture or in such Debt Securities;

          WHEREAS, the Company, the Parent Guarantor and the underwriters for the LoTSSM
intended that the Company be permitted to issue additional LoTSSM under the Original
Eighth Supplemental Indenture;

          WHEREAS, Exhibit A of the Original Eighth Supplemental Indenture, the Original
LoTSSM, the Preliminary Prospectus Supplement dated July 11, 2006 and the Prospectus
Supplement dated July 13, 2006 all contemplate that the Company may issue additional
LoTSSM under the Original Eighth Supplemental Indenture, but Section 2.1 of the Original
Eighth Supplemental Indenture does not provide for the issuance of additional LoTSSM;

 

 

          WHEREAS, the Board of Directors of the General Partner and the Board of Directors of the
general partner of the Parent Guarantor have determined that Section 2.1 of the Original Eighth
Supplemental Indenture contains an ambiguity and an omission and represents a defective and
inconsistent provision that requires correction in accordance with Section 9.01(c) of the Base
Indenture;

          WHEREAS, pursuant to Section 9.01 of the Base Indenture, the Company and the Parent Guarantor
have requested that the Trustee join in the execution of this Amended and Restated Eighth
Supplemental Indenture and the Trustee has agreed to join therein; and

          WHEREAS, all things necessary have been done to make this Amended and Restated Eighth
Supplemental Indenture, when executed and delivered by the Company, the Parent Guarantor and the
Trustee, the valid and binding agreement of the Company and the Parent Guarantor, respectively,
enforceable against them in accordance with its terms;

          NOW, THEREFORE, the Company, the Parent Guarantor and the Trustee hereby agree that the
Original Eighth Supplemental Indenture shall be amended and restated as follows:

ARTICLE I

DEFINITIONS

          Section 1.1 Definition of Terms. Unless the context otherwise requires:

          (a) a term defined in the Indenture has the same meaning when used in this Eighth Supplemental
Indenture; provided, however, that, where a term is defined both in this Eighth
Supplemental Indenture and in the Indenture, the meaning given to such term in this Eighth
Supplemental Indenture shall control for purposes of this Eighth Supplemental Indenture and, in
respect of the LoTSSM, but not any other series of Debt Securities, the Indenture;

          (b) a term defined anywhere in this Eighth Supplemental Indenture has the same meaning
throughout this Eighth Supplemental Indenture and, in respect of the LoTSSM, but not any
other series of Debt Securities, the Indenture;

          (c) any term used herein which is defined in the TIA, either directly or by reference therein,
has the meanings assigned to it therein; and

          (d) the following terms have the following respective meanings:

          “3-month LIBOR Rate” means, for each Quarterly Interest Period during the Floating
Rate Period, the interest rate per annum shown on Telerate Page 3750 at or about 11:00 a.m., London
time, on the second London Banking Day (the “LIBOR Determination Date”) preceding the first
day of such Quarterly Interest Period (the “Reset Date”) for deposits in U.S. dollars with
a maturity of three months and commencing on the Reset Date. If such rate does not appear on that
page or such other page as shall replace that page for the purpose of displaying offered rates of
leading banks for London interbank deposits in U.S. dollars, the 3-month LIBOR

- 2 -

 

Rate shall be determined on the basis of the rates, at approximately 11:00 a.m., London time,
on the LIBOR Determination Date, at which U.S. dollar deposits with a maturity of three months in
an amount determined by the Calculation Agent as representative of a single transaction in the
relevant market and at the relevant time are offered by four major banks in the London interbank
market (“Reference Banks”) selected by the Calculation Agent to prime banks in the London
interbank market for the Quarterly Interest Period commencing on the Reset Date. The Calculation
Agent will request the principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two quotations are provided as requested, the 3-month LIBOR
Rate will be the arithmetic mean of the quotations. If fewer than two quotations are provided as
requested, the 3-month LIBOR Rate shall be the interest rate per annum equal to the average of the
rates per annum quoted by three major banks in New York City or Charlotte, North Carolina selected
by the Calculation Agent, at or about 11:00 a.m., New York City time, on the LIBOR Determination
Date, for loans in U.S. dollars to leading European banks in amounts that are representative of a
single transaction in the relevant market and at the relevant time with a maturity corresponding to
the Quarterly Interest Period commencing on the Reset Date. If fewer than three New York City or
Charlotte, North Carolina banks selected by the Calculation Agent are quoting rates, the 3-month
LIBOR Rate for the applicable Quarterly Interest Period will be the same as for the immediately
preceding Quarterly Interest Period. If the Quarterly Interest Period does not correspond to a
period for which rates are available, the 3-month LIBOR Rate will be determined through the use of
straight-line interpolation by reference to two rates, the first rate to be determined by reference
to the period of time for which rates are available next shorter than the length of such Quarterly
Interest Period and the second to be determined by reference to the period of time for which rates
are available next longer than the length of such Quarterly Interest Period.

          “Bankruptcy Event” means, with respect to any Person, that (a) such Person, pursuant
to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case; (ii) consents to
the entry of an order for relief against it in an involuntary case; (iii) consents to the
appointment of a Custodian of it or for all or substantially all of its property; or (iv) makes a
general assignment for the benefit of its creditors; or (b) a court of competent jurisdiction
enters an order or decree under any Bankruptcy Law that (i) is for relief against such Person as
debtor in an involuntary case; (ii) appoints a Custodian of such Person or a Custodian for all or
substantially all of the property of such Person; or (iii) orders the liquidation of such Person,
and, in the case of clauses (b)(i) through (b)(iii), the order or decree remains unstayed and in
effect for 60 days.

          “Base Indenture” has the meaning set forth in the recitals of this Eighth Supplemental
Indenture.

          “Book-Entry LoTSSM” has the meaning set forth in Section 2.3.

          “Business Day” means a day other than (a) a Saturday or Sunday, (b) a day on which
banks in Houston, Texas or New York, New York are authorized or required by law to close, or (c) a
day on which the corporate trust office of the Trustee is closed for business.

          “Calculation Agent” means Wells Fargo Bank, National Association (and its successors).

- 3 -

 

          “Company” means the Person named as the “Company” in the preamble of this Eighth
Supplemental Indenture until a successor Person shall have become such pursuant to the applicable
provisions of the Indenture, and thereafter “Company” shall mean such successor Person.

          “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the Remaining Life of the
LoTSSM that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the Remaining Life of the LoTSSM; provided, however, that if no maturity
is within three months (before or after) of the end of the Remaining Life, yields for the two
published maturities most closely corresponding to such United States Treasury security will be
determined and the Treasury Yield will be interpolated or extrapolated from those yields on a
straight-line basis rounding to the nearest month.

          “Comparable Treasury Price” means, with respect to any Redemption Date, (a) the bid
price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) at or
about 4:00 p.m. on the third Business Day preceding the Redemption Date, as set forth on “Telerate
Page 500” (or such other page as may replace Telerate Page 500), or (b) if such page (or any
successor page) is not displayed or does not contain such bid prices at such time, the average of
the Reference Treasury Dealer Quotations obtained by the Trustee for the Redemption Date.

          “Current Interest” means, on or prior to an Interest Payment Date, interest accrued on
the principal amount of the LoTSSM at the Fixed Rate or the Floating Rate, as the case
may be, since the immediately preceding Interest Payment Date. For the avoidance of doubt, Current
Interest shall not include Deferred Interest.

          “Deferred Interest” means (a) interest the payment of which has been deferred pursuant
to Section 4.1 plus (b) all interest accrued thereon since the due date thereof in accordance with
Section 2.6(a) and 2.6(d).

          “Depositary,” means DTC or, if DTC shall have ceased performing such function, any
other Person selected by the Company, so long as such successor or such Person, as the case may be,
is registered as a clearing agency under the Exchange Act or other applicable statutes or
regulations.

          “DTC” means The Depository Trust Company, New York, New York, or any successor
thereto.

          “Eighth Supplemental Indenture” has the meaning set forth in the preamble hereto.

          “Fixed Rate” means 8.375% per annum.

          “Fixed Rate Period” means the period commencing on July 18, 2006 to, but not
including, August 1, 2016.

- 4 -

 

          “Floating Rate” means, with respect to a Quarterly Interest Period, the 3-month LIBOR
Rate for such Quarterly Interest Period plus 3.7075%.

          “Floating Rate Period” means the period commencing on August 1, 2016 through, but not
including, August 1, 2066.

          “Guarantee” has the meaning given in Section 7.1.

          “Indenture” means the Base Indenture, as amended and supplemented by this Eighth
Supplemental Indenture, including the form and terms of the LoTSSM as set forth herein,
as the same shall be amended from time to time.

          “Independent Investment Banker” means any of Wachovia Capital Markets, LLC (and its
successors) and Lehman Brothers Inc. (and its successors) or, if no such firm is willing and able
to select the applicable Comparable Treasury Issue or perform the other functions of the
Independent Investment Banker provided herein, an independent investment banking institution of
national standing appointed by the Trustee and reasonably acceptable to the Company.

          “Interest” means, collectively, Current Interest and Deferred Interest.

          “Interest Payment Date” means a Quarterly Interest Payment Date during the Floating
Rate Period and a Semi-Annual Interest Payment Date during the Fixed Rate Period.

          “Interest Period” means a Quarterly Interest Period or a Semi-Annual Interest Period,
as the case may be.

          “LIBOR Determination Date” has the meaning set forth in the definition of “3-month
LIBOR Rate.”

          “London Banking Day” means any day on which commercial banks are open for general
business (including dealings in foreign exchange and foreign currency deposits) in London, England.

          “LoTSSM” has the meaning set forth in the recitals of this Eighth
Supplemental Indenture.

          “Make-Whole Optional Redemption Price” means, with respect to a Redemption Date, an
amount equal to (a) all unpaid Interest to but not including such Redemption Date, plus (b) the
greater of (i) 100% of the principal amount of the LoTSSM being redeemed and (ii) as
determined by the Independent Investment Banker, the sum of the present values of remaining
scheduled payments of principal and interest on the LoTSSM (exclusive of interest
accrued to the Redemption Date) being redeemed during the Remaining Life, discounted to such
Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Yield plus .50%. The Make-Whole Optional Redemption Price, calculated as provided
herein, shall be calculated and certified to the Trustee and the Company by an Independent
Investment Banker.

          “Optional Deferral” has the meaning set forth in Section 4.1(a).

- 5 -

 

          “Optional Deferral Period” means the period of time commencing on an Interest Payment
Date with respect to which the Company has optionally deferred payment of Interest pursuant to
Section 4.1(a) and ending upon the earlier of (a) the Interest Payment Date on which all Deferred
Interest and Current Interest to such Interest Payment Date shall have been paid and (b) the first
Interest Payment Date on which the Company shall have deferred payment of some or all of the
Interest due on a number of consecutive Interest Payment Dates with respect to consecutive Interest
Periods which, taken together as a single period, would exceed ten (10) consecutive years.

          “Optional Redemption Price” means, with respect to a Redemption Date, 100% of the
principal amount of the LoTSSM being redeemed plus all unpaid Interest thereon to but
not including such Redemption Date.

          “Original LoTSSM” has the meaning set forth in Section 2.1.

          “Parent Guarantor” means the Person named as the “Parent Guarantor” in the preamble of
this Eighth Supplemental Indenture until a successor Person shall have become such pursuant to the
applicable provisions of the Indenture, and thereafter “Parent Guarantor” shall mean such successor
Person.

          “Primary Treasury Dealer” has the meaning set forth in the definition of “Reference
Treasury Dealer.”

          “Quarterly Interest Payment Date” means each February 1, May 1, August 1, and November
1 during the Floating Rate Period, commencing November 1, 2016; provided, however,
that if any such day is not Business Day, then the Quarterly Interest Payment Date shall be the
immediately succeeding Business Day (except if such next succeeding Business Day falls in the next
succeeding calendar year, then such payment shall be made on the immediately preceding Business
Day).

          “Quarterly Interest Period” means each period commencing on a Quarterly Interest
Payment Date and continuing to but not including the next succeeding Quarterly Interest Payment
Date (except that the first Quarterly Interest Period will commence on August 1, 2016).

          “Reference Banks” has the meaning set forth in the definition of “3-month LIBOR Rate.”

          “Redemption Price” means, (a) in the case of redemption of the LoTSSM
pursuant to Section 3.1(a), the Optional Redemption Price and (b) in the case of redemption of the
LoTSSM pursuant to Section 3.1(b), the Make-Whole Optional Redemption Price.

          “Reference Treasury Dealer” means (a) Wachovia Capital Markets, LLC (and its
successors) and (b) one other primary U.S. government securities dealer in New York, New York
selected by the Independent Investment Banker (each, a “Primary Treasury Dealer”);
provided, however, that if either of the foregoing is not a Primary Treasury Dealer
at the time the Make-Whole Optional Redemption Price is being calculated hereunder, the Company
will substitute therefor another Primary Treasury Dealer.

- 6 -

 

          “Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury
Dealer and any Redemption Date for the LoTSSM, an average, as determined by the Trustee,
of the bid and asked prices for the Comparable Treasury Issue for the LoTSSM (expressed
in each case as a percentage of its principal amount) quoted in writing to the Trustee by such
Reference Treasury Dealer at or about 5:00 p.m., New York, New York time, on the third Business Day
preceding such Redemption Date.

          “Remaining Life” means the period of time from the date on which the LoTSSM
are redeemed to August 1, 2016.

          “Reset Date” has the meaning set forth in the definition of “3-month LIBOR Rate.”

          “Semi-Annual Interest Period” means each period commencing on a Semi-Annual Interest
Payment Date and continuing to but not including the next succeeding Semi-Annual Interest Payment
Date (except that the first Semi-Annual Interest Period will begin on July 18, 2006.

          “Semi-Annual Interest Payment Date” means each February 1 and August 1 during the
Fixed Rate Period, commencing (a) in the case of the Original LoTSSM, February 1, 2007
and (b) in the case of any additional LoTSSM issued pursuant to clause (ii) of Section
2.1, the date set forth in the Company Order providing for the issuance of any such additional
LoTSSM; provided, however, that if any such day is not Business Day,
then the Semi-Annual Interest Payment Date shall be the immediately succeeding Business Day.

          “Senior Indebtedness” means, with respect to any Person, the principal of, any
interest and premium, if any, on and any other payments in respect of any of the following, whether
currently outstanding or hereafter created or incurred: (a) (i) indebtedness of such Person for
borrowed money; (ii) indebtedness of such Person evidenced by securities, bonds, notes, and
debentures, including any of the same that are subordinated, issued under credit agreements,
indentures or other similar instruments (other than this Eighth Supplemental Indenture) and other
similar instruments, other than, in the case of the Company, the LoTSSM; (iii)
obligations of such Person arising from or with respect to guarantees and direct credit
substitutes, other than, in the case of the Parent Guarantor, the Parent Guarantor’s obligations
under the Guarantee; (iv) obligations of such Person arising from or with respect to hedges and
derivative products (including, but not limited to, interest rate, commodity, and foreign exchange
contracts); (v) capital lease obligations of such Person; (vi) all of the obligations of such
Person arising from or with respect to any letter of credit, banker’s acceptance, security purchase
facility, cash management arrangements or similar credit transactions; (vii) operating leases of
such Person (but only to the extent the terms of such leases expressly provide that the same
constitute “Senior Indebtedness”); and (viii) guarantees by such Person of any indebtedness or
obligations of others of the types described in clauses (i) through (vii) other than, in the case
of the Parent Guarantor, the Guarantee and (b) any modifications, refundings, deferrals, renewals,
or extensions of any of the foregoing or any other evidence of indebtedness issued in exchange
therefor; provided, however, that Senior Indebtedness shall not include the
obligations of such Person in respect of: (w) trade accounts payable of such Person; (x) any
indebtedness incurred by such Person for the purchase of goods or materials or for services
obtained in the ordinary

- 7 -

 

course of business to the extent that the same is incurred from, and owed to, the vendor of
such goods or materials or the provider of such services; (y) any indebtedness or other obligation
of such Person which by the terms of the instrument creating or evidencing it is expressly made
equal in rank and payment with or subordinated to the LoTSSM or the Guarantee, as the
case may be; and (z) indebtedness owed by such Person to its Subsidiaries.

          “Telerate Page 3750” means the display designated on page 3750 on MoneyLine Telerate
(or on any successor or substitute page of such service, or any successor to or substitute for such
service, providing rate quotations comparable to those provided on such page on the date hereof).

          “Treasury Yield” means, with respect to any Redemption Date applicable to the
LoTSSM, the rate per annum equal to the semi-annual equivalent yield to maturity
(computed as of the third Business Day immediately preceding such Redemption Date) of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the applicable Comparable Treasury Price for the
Redemption Date.

          “Trustee” means the Person named as the “Trustee” in the preamble of this Eighth
Supplemental Indenture until a successor Person shall have become such pursuant to the applicable
provisions of the Indenture, and thereafter “Trustee” shall mean such successor Person.

          Section 1.2 Rules of Construction. In addition to the Rules of Construction under
Section 1.04 of the Indenture, the following provisions also shall be applied wherever appropriate
herein:

          (a) any references herein to a particular Section, Article, or Exhibit means a Section or
Article of, or an Exhibit to, this Eighth Supplemental Indenture unless otherwise expressly stated
herein; and

          (b) the Exhibits attached hereto are incorporated herein by reference and shall be considered
part of this Eighth Supplemental Indenture.

ARTICLE II

GENERAL TERMS AND CONDITIONS OF THE LoTSSM

          Section 2.1 Designation and Principal Amount. There is hereby authorized a series of
Debt Securities under the Indenture designated the “8.375% Fixed/Floating Rate Junior Subordinated
Notes due 2066. ” The Trustee shall authenticate and deliver (i) LoTSSM for original
issue on July 18, 2006 (the “Original LoTSSM”) in the aggregate principal amount
of $300,000,000 and (ii) additional LoTSSM for original issue from time to time after
such date in such principal amounts as may be specified from time to time in a Company Order for
the authentication and delivery thereof upon satisfaction of the other provisions of Sections 2.04
and 2.05 of the Indenture. Such Company Order shall specify the amount of LoTSSM to be
authenticated, and the name or names of the initial Holder or Holders thereof. Any additional

- 8 -

 

LoTSSM shall have the same Stated Maturity and other terms as the Original
LoTSSM and shall be consolidated with and be part of the Original LoTSSM.
The LoTSSM shall be issued in denominations of $1,000 in principal amount and integral
multiples thereof.

          Section 2.2 Maturity. The principal amount of the LoTSSM shall be payable on the
maturity date of the LoTSSM, which is August 1, 2066.

          Section 2.3 Form. The LoTSSM and the Trustee’s certificate of authentication thereon
shall be substantially in the form of Exhibit A.

          The LoTSSM shall be issued only as Registered Securities. The LoTSSM
shall be originally issued in the form of one or more Global Securities (the “Book-Entry
LoTSSM”). Each of the Book-Entry LoTSSM shall represent such of the
Outstanding LoTSSM as shall be specified therein and shall provide that it shall
represent the aggregate amount of Outstanding LoTSSM from time to time endorsed thereon
and that the aggregate amount of Outstanding LoTSSM represented thereby may from time to
time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any
endorsement of Book-Entry LoTSSM to reflect the amount, or any increase or decrease in
the amount, of Outstanding LoTSSM represented thereby shall be made by the Trustee in
accordance with written instructions or such other written form of instructions as is customary for
the Depositary, from the Depositary or its nominee on behalf of any Person having a beneficial
interest in such Book-Entry LoTSSM. The Company initially appoints DTC to act as
Depositary with respect to the Book-Entry LoTSSM.

          Section 2.4 Registrar and Paying Agent. The Company initially appoints the Trustee as Registrar
and paying agent with respect to the LoTSSM. The office or agency in the City and State
of New York where the LoTSSM may be presented for registration of transfer or exchange
and the Place of Payment for the LoTSSM shall initially be Wells Fargo Corporate Trust,
c/o DTC 1st Floor, TADS Department, 55 Water Street, New York, New York 10041.

          Section 2.5 Transfer and Exchange.
The transfer and exchange of Book-Entry LoTSSM or beneficial interests therein
shall be effected through the Depositary, in accordance with Section 2.15 of the Indenture and the
rules and procedures of the Depositary therefor.

          Section 2.6 Interest Rates; Payment of Principal and Interest.

          (a) Rates.

    (i) Interest during the Fixed Rate Period. During the Fixed Rate Period, (A)
the outstanding principal amount of the LoTSSM and (B) to the extent permitted by
applicable law, any Deferred Interest or overdue interest thereon will bear interest at a
per annum rate equal to the Fixed Rate until the commencement of the Floating Rate Period
or, if earlier, until the principal thereof and all Interest thereon is paid, compounded
semi-annually and payable (subject to the provisions of Article IV) semi-annually, in
arrears on each Semi-Annual Interest Payment Date.

    (ii) Interest during the Floating Rate Period. During the Floating Rate
Period, (A) the outstanding principal amount of the LoTSSM and (B) to the extent
permitted by applicable law, any Deferred Interest or overdue interest thereon will bear
interest during

- 9 -

 

each Quarterly Interest Period at a per annum rate equal to the applicable
Floating Rate for such period, until the principal thereof and all Interest thereon is paid,
compounded quarterly and payable (subject to the provisions of Article IV) quarterly in
arrears on each Quarterly Interest Payment Date. The Calculation Agent will calculate the
Floating Rate with respect to each Floating Rate Period and the amount of Interest payable
on each Quarterly Interest Payment Date as promptly as practicable according to the
appropriate method described herein. Promptly upon such determination, the Calculation
Agent will notify the Company and the Trustee of the Floating Rate for the Floating Rate
Period and the amount of Interest payable to each Holder on each Quarterly Interest Payment
Date. The Floating Rate determined by the Calculation Agent, absent manifest error, will be
binding and conclusive upon the beneficial owners and Holders of the LoTSSM, the
Company and the Trustee.

          (b) Payment of Interest to Record Holders of the Book-Entry LoTSSM. Payments
of principal of, premium, if any, and Interest due on the LoTSSM representing Book-Entry
LoTSSM on any Interest Payment Date, upon redemption or at maturity will be made
available to the Trustee by 11:00 a.m., New York City time, on the applicable maturity date,
Redemption Date, or Interest Payment Date, unless such date falls on a day which is not a Business
Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City
time, on the next succeeding Business Day; provided, however, that, during the
Floating Rate Period, if such next succeeding Business Day falls in the next succeeding calendar
year, then such payments will be made available to the Trustee by 11:00 a.m., New York City time,
on the immediately preceding Business Day. As soon as possible thereafter, the Trustee will make
such payments to the Depositary. Other than in connection with the maturity or early redemption of
the LoTSSM or in connection with payment of Defaulted
Interest, Interest on the LoTSSM may be paid only on an Interest Payment Date. The
regular record date for Interest payable on the LoTSSM on any Interest Payment Date
during the Fixed Rate Period shall be the January 15 or July 15, as the case may be, immediately
preceding such Interest Payment Date and during the Floating Rate Period shall be the January 15,
April 15, July 15 or October 15, as the case may be, immediately preceding such Interest Payment
Date.

          (c) The amount of Interest payable on any Interest Payment Date during the Fixed Rate Period
will be computed on the basis of a 360-day year consisting of twelve 30-day months. The amount of
Interest payable on any Interest Payment Date during the Floating Rate Period will be computed on
the basis of a 360-day year and the actual number of days elapsed. During the Floating Rate
Period, the amount of Interest payable to any Holder of the LoTSSM on any Interest
Payment Date will be computed by multiplying (i) the applicable Floating Rate in effect for the
Quarterly Interest Period or portion thereof in respect of which the Interest payment is made by
(ii) a fraction, (A) the numerator of which will be the actual number of days in such Quarterly
Interest Period (or portion thereof) (determined by including the first day thereof and excluding
the last day thereof) and (B) the denominator of which will be 360, and (iii) multiplying the
product obtained thereby by the sum of (A) Outstanding principal amount of the LoTSSM
held by such Holder and (B) the amount of any Deferred Interest then existing in respect of such
LoTSSM held by such Holder on the first day of the related Interest Period.

          (d) To the extent permitted by applicable law, Interest not paid when due hereunder,
including, without limitation, all Deferred Interest and overdue Interest, shall in

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accordance with
Section 2.6(a), until paid, compound (i) semi-annually at the Fixed Rate on each Semi-Annual
Interest Payment Date during the Fixed Rate Period and (ii) quarterly at the applicable Floating
Rate on each Quarterly Interest Payment Date during the Floating Rate Period.

          (e) If the Company shall make a partial payment of Interest on any Interest Payment Date, such
payment shall, with respect to the LoTSSM, be applied, first, to Deferred Interest until
all such Deferred Interest has been paid and, second, to any Current Interest.

          (f) To the extent that the provisions of this Section 2.6 are inconsistent with the provisions
of Article II of the Indenture, the provisions of this Section 2.6 shall control.

ARTICLE III

REDEMPTION OF THE LoTSSM

          Section 3.1 Optional Redemption. Subject to the provisions of Article III of the Indenture, the
Company shall have the option to redeem the LoTSSM for cash:

          (a) in whole or in part, at any time and from time to time prior to August 1, 2016, at the
Make-Whole Optional Redemption Price; and

          (b) in whole or in part, at any time and from time to time on or after August 1, 2016, at the
Optional Redemption Price.

          Section 3.2 Certain Redemption Procedures. LoTSSM called for optional redemption shall
become due on the Redemption Date. Notices of optional redemption will be mailed at least 30 days
but not more than 60 days before the Redemption Date to each Holder of the LoTSSM to be
redeemed at its registered address. The notice of optional redemption for the LoTSSM
will state, among other things, the amount of LoTSSM to be redeemed, the Redemption
Date, the method of calculating such Redemption Price, and the place(s) that payment will be made
upon presentation and surrender of LoTSSM to be redeemed. Unless the Company defaults
in payment of the Redemption Price, interest will cease to accrue on the Redemption Date with
respect to any LoTSSM that have been called for optional redemption. If less than all
the LoTSSM are redeemed at any time, the Trustee will select the LoTSSM to be
redeemed on a pro rata basis or by any other method the Trustee deems fair and appropriate.

          The LoTSSM may be redeemed in part only in principal amounts that are integral
multiples of $1,000.

          Section 3.3 No Sinking Fund. The LoTSSM will not be entitled to the benefit of any
sinking fund.

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ARTICLE IV

DEFERRAL OF INTEREST

          Section 4.1 Optional Deferral of Interest.

          (a) The Company shall have the right, at any time and from time to time during the term of the
LoTSSM, to elect to defer payment of all or any portion of any Current Interest and/or
Deferred Interest otherwise due on the LoTSSM on any Interest Payment Date
(“Optional Deferral”); provided, however, that the Company may not (i)
elect to defer payment of Interest if an Event of Default has occurred and is continuing as of the
date of the Company’s notice of its election to the Trustee, (ii) elect to defer payment of any
Interest otherwise due on any Interest Payment Date if the Company has deferred payment of some or
all of the Interest due on a number of consecutive Interest Payment Dates with respect to a number
of consecutive Interest Periods which, taken together as a single period, would exceed ten (10)
consecutive years, or (iii) elect to defer payment of any Interest due on the maturity date of the
LoTSSM, or, with respect to any LoTSSM being redeemed, on the Redemption Date
for such LoTSSM. No Interest on the LoTSSM shall be due and payable on any
Interest Payment Date during an Optional Deferral Period; however, Interest shall accrue on the
LoTSSM during such period in accordance with Sections 2.6(a) and 2.6(d).

          (b) Following the termination of an Optional Deferral Period pursuant to clause (a) of the
definition of Optional Deferral Period, the Company may again elect pursuant to Section 4.1(a) to
make an Optional Deferral of Interest.

          (c) On the Interest Payment Date on which the Company desires to terminate an Optional
Deferral Period, the Company shall pay all Deferred Interest and Current Interest due on such
Interest Payment Date. Such Interest shall be payable to the Holders of the LoTSSM in
whose names the LoTSSM are registered in the Debt Security Register for the
LoTSSM on the record date with respect to such Interest Payment Date.

          Section 4.2 Notice of Deferrals.

          (a) The Company shall give written notice to the Trustee of any election of an Optional
Deferral pursuant to Section 4.1 not fewer than ten (10) nor more than sixty (60) Business
Days prior to the applicable Interest Payment Date for which Interest on the LoTSSM will
be deferred, other than an Optional Deferral in the circumstances described in Section 4.2(b). The
Trustee shall forward such written notice promptly to each Holder of the LoTSSM.

          (b) In the case of an election of an Optional Deferral pursuant to Section 4.1 when the
Company or the Parent Guarantor would be prohibited pursuant to Section 12.03 of the Indenture from
paying Interest on the LoTSSM, the Company shall give written notice to the Trustee of
such election of an Optional Deferral not later than the time monies in respect of the Interest
payment on the applicable Interest Payment Date must be made available to the Trustee pursuant to
Section 2.6(b) hereof. The Trustee shall forward such written notice promptly to each Holder of
the LoTSSM.

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ARTICLE V

CERTAIN COVENANTS

          Section 5.1 Covenants in Indenture. Holders of the LoTSSM shall not have the benefit
of and shall not be entitled to enforce the covenants contained in Sections 4.12 and 4.13 of the
Indenture.

          Section 5.2 Restricted Payments.

          (a) Unless each of the following conditions has been satisfied:

 (1) all unpaid Deferred Interest on the LoTSSM has been paid in full
as of the most recent Interest Payment Date;

 (2) no Event of Default has occurred and is continuing; and

 (3) the Parent Guarantor is not in default of its obligations under the
Guarantee;

then, subject to Section 5.2(b), (i) the Company and the Parent Guarantor will not declare or make
any distributions with respect to, or redeem, purchase, or make a liquidation payment with respect
to, any of their respective equity securities and (ii) the Company and the Parent Guarantor will
not, and will cause their respective Subsidiaries not to (A) make any payment of interest,
principal, or premium, if any, on or repay, repurchase, or redeem any of the Company’s debt
securities (including securities similar to LoTSSM) that contractually rank equally with
or junior to the LoTSSM or (B) make any guarantee payments with respect to the
securities described in clause (ii)(A) of this subsection (a).

          (b) Notwithstanding the provisions of Section 5.2(a), the Company, the Parent Guarantor and
any of their respective Subsidiaries may take any of the following actions at any time, including
during an Optional Deferral Period: (i) make any distribution, redemption, liquidation, interest,
principal, or guarantee payment in the form of their respective equity securities; (ii) make any
regularly scheduled distribution payments declared prior to the occurrence of the relevant event
described in paragraphs (1) through (3) of Section 5.2(a) or the commencement of such Optional
Deferral Period; (iii) make any repurchases, redemptions, or other acquisitions of their respective
equity securities in connection with any employee benefit plans or any other contractual obligation
entered into prior to the occurrence of the relevant event described in paragraphs (1) through (3)
of Section 5.2(a) or the commencement of such Optional Deferral Period; (iv) make payments under
(1) the LoTSSM and securities similar to the LoTSSM that are pari passu with
the LoTSSM and (2) the Guarantee and similar guarantees associated with any instruments
that are pari passu with the LoTSSM, in each case, so long as any such payments are made
on a pro rata basis with the LoTSSM and the Guarantee, respectively; (v) make payments
or distributions in connection with a reclassification of their respective equity securities,
provided, however, that such reclassification does not result in the issuance of
securities senior to the LoTSSM; and (vi) purchase fractional interests of their
respective equity securities in connection with any split, reclassification, or similar
transaction.

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          (c) For the avoidance of doubt, nothing contained herein shall prevent the Company or the
Parent Guarantor from issuing any other securities, whether senior to, pari passu with or
subordinated to the LoTSSM, including securities having covenants and provisions the
same as or similar to those applicable to the LoTSSM.

ARTICLE VI

SUBORDINATION

          Section 6.1 Agreement to Subordinate. The LoTSSM shall be subordinated to all Senior
Indebtedness (as defined in this Eighth Supplemental Indenture) of the Company on the terms and
subject to the conditions set forth in Article XII of the Indenture, and each Holder of
LoTSSM issued hereunder by such Holder’s acceptance thereof acknowledges and agrees that
all LoTSSM shall be issued subject to the provisions of this Article VI and such Article
XII and that each Holder of LoTSSM, whether
upon original issuance or upon transfer or assignment thereof, accepts and agrees to be bound
by such provisions. The LoTSSM shall be “Subordinated Debt Securities” as such term is
used in the Indenture, and, for purposes of the LoTSSM only, and not for purposes of any
other Debt Securities, all references in the Indenture to Senior Indebtedness of the Company shall
mean Senior Indebtedness of the Company as defined in this Eighth Supplemental Indenture.

          Section 6.2 Amendment and Restatement of Section 12.02 of the Base Indenture. For purposes of the
LoTSSM only, and not for purposes of any other Debt Securities, Section 12.02 of the
Base Indenture is hereby amended and restated in its entirety to read as follows:

               Section 12.02 Liquidation, Dissolution, Bankruptcy. Upon any payment
or distribution of the assets of the Company to creditors upon a total or partial
liquidation or a total or partial dissolution of the Company or in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to the
Company or its property:

               (a) holders of Senior Indebtedness of the Company shall be entitled to receive
payment in full in cash of such Senior Indebtedness (including interest (if any),
accruing on or after the commencement of a proceeding in bankruptcy, whether or not
allowed as a claim against the Company in such bankruptcy proceeding) before Holders
of Subordinated Debt Securities of the Company shall be entitled to receive any
payment of principal of, or premium, if any, or Interest on, the Subordinated Debt
Securities; and

               (b) until the Senior Indebtedness of the Company is paid in full, any such
distribution to which Holders of Subordinated Debt Securities would be entitled but
for this Article XII shall be made to holders of Senior Indebtedness of the Company
as their interests may appear, except that such Holders may receive securities
representing partnership interests of the Company and any debt securities of the
Company that are subordinated to Senior

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Indebtedness of the Company to at least the
same extent as the Subordinated Debt Securities of the Company.

Upon any payment or distribution of the assets of any Guarantor to creditors upon a
total or partial liquidation or a total or partial dissolution of such Guarantor or
in a bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to such Guarantor or its property:

               (a) holders of Senior Indebtedness of such Guarantor shall be entitled to
receive payment in full in cash of such Senior Indebtedness (including interest (if
any), accruing on or after the commencement of a proceeding in bankruptcy, whether
or not allowed as a claim against such Guarantor in such bankruptcy proceeding)
before Holders of Subordinated Debt Securities shall be entitled to receive, under
such Guarantor’s guarantee of such Subordinated Debt
Securities, any payment of principal of, or premium, if any, or interest on,
the Subordinated Debt Securities; and

               (b) until the Senior Indebtedness of such Guarantor is paid in full, any such
distribution to which Holders of Subordinated Debt Securities would be entitled
under such Guarantor’s guarantee but for this Article XII shall be made to holders
of Senior Indebtedness of such Guarantor as their interests may appear, except that
such Holders may receive securities representing partnership interests of such
Guarantor and any debt securities of such Guarantor that are subordinated to Senior
Indebtedness of such Guarantor to at least the same extent as the guarantee of the
Subordinated Debt Securities of such Guarantor.

          Section 6.3 Amendment and Restatement of Section 12.03 of the Base Indenture. For purposes of the
LoTSSM only, and not for purposes of any other Debt Securities, Section 12.03 of the
Base Indenture is hereby amended and restated in its entirety to read as follows:

               Section 12.03 Default on Senior Indebtedness. The Company may not pay
the principal of, or premium, if any, or interest on, the Subordinated Debt
Securities or make any deposit pursuant to Article XI and may not repurchase, redeem
or otherwise retire (except, in the case of Subordinated Debt Securities that
provide for a mandatory sinking fund pursuant to Section 3.05, by the delivery of
Subordinated Debt Securities by the Company to the Trustee pursuant to the first
paragraph of Section 3.06) any Subordinated Debt Securities (collectively, “pay the
Subordinated Debt Securities”) if (a) any principal, premium or interest in respect
of Senior Indebtedness of the Company is not paid when due, including any applicable
grace period (including at maturity) or (b) any other default on Senior Indebtedness
of the Company occurs and the maturity of such Senior Indebtedness is accelerated in
accordance with its terms unless, in either case, the default has been cured or
waived and any such acceleration has been rescinded or such Senior Indebtedness has
been paid in full in cash; provided, however, that the Company may pay the
Subordinated Debt Securities

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without regard to the foregoing if the Company and the
Trustee receive written notice approving such payment from the Representative of
each issue of Designated Senior Indebtedness of the Company. During the continuance
of any default (other than a default described in clause (a) or (b) of the preceding
sentence) with respect to any Designated Senior Indebtedness of the Company pursuant
to which the maturity thereof may be accelerated immediately without further notice
(except such notice as may be required to effect such acceleration) or the
expiration of any applicable grace periods, the Company may not pay the Subordinated
Debt Securities for a period (a “Payment Blockage Period”) commencing upon the
receipt by the Company and the Trustee of written notice of such default from the
Representative of any Designated Senior Indebtedness of the Company specifying an
election to effect a Payment Blockage Period (a
“Blockage Notice”) and ending 179 days thereafter (or earlier if such Payment
Blockage Period is terminated by written notice to the Trustee and the Company from
the Person or Persons who gave such Blockage Notice, by repayment in full in cash of
such Designated Senior Indebtedness or because the default giving rise to such
Blockage Notice is no longer continuing). Notwithstanding the provisions described
in the immediately preceding sentence (but subject to the provisions contained in
the first sentence of this Section 12.03), unless the holders of such Designated
Senior Indebtedness or the Representative of such holders shall have accelerated the
maturity of such Designated Senior Indebtedness, the Company may resume payments on
the Subordinated Debt Securities after such Payment Blockage Period. Not more than
one Blockage Notice may be given in any consecutive 360-day period, irrespective of
the number of defaults with respect to any number of issues of Designated Senior
Indebtedness during such period, unless otherwise specified pursuant to Section 2.03
for the Subordinated Debt Securities of a series; provided, however, that in no
event may the total number of days during which any Payment Blockage Period or
Periods is in effect exceed 179 days in the aggregate during any 360 consecutive day
period. For purposes of this Section 12.03, no default or event of default which
existed or was continuing on the date of the commencement of any Payment Blockage
Period with respect to the Designated Senior Indebtedness of the Company initiating
such Payment Blockage Period shall be, or be made, the basis of the commencement of
a subsequent Payment Blockage Period by the Representative of such Designated Senior
Indebtedness, whether or not within a period of 360 consecutive days, unless such
default or event of default shall have been cured or waived for a period of not less
than 90 consecutive days.

               No Guarantor may make a payment or distribution in respect of its guarantee of
any Subordinated Debt Securities (“make a guarantee payment on Subordinated Debt
Securities”) if (a) any principal, premium or interest in respect of Senior
Indebtedness of such Guarantor is not paid when due, including any applicable grace
period (including at maturity) or (b) any other default on Senior Indebtedness of
such Guarantor occurs and the maturity of such Senior Indebtedness is accelerated in
accordance with its terms unless, in either case, the default has been cured or
waived and any such acceleration has been rescinded or such Senior Indebtedness has
been paid in full in cash; provided, however, that

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such Guarantor may make a
guarantee payment on the Subordinated Debt Securities without regard to the
foregoing if such Guarantor and the Trustee receive written notice approving such
payment from the Representative of each issue of Designated Senior Indebtedness of
such Guarantor. During the continuance of any default (other than a default
described in clause (a) or (b) of the preceding sentence) with respect to any
Designated Senior Indebtedness of such Guarantor pursuant to which the maturity
thereof may be accelerated immediately without further notice (except such notice as
may be required to effect such acceleration) or the expiration of any applicable
grace periods, such Guarantor may not make a guarantee payment on Subordinated Debt
Securities for a period (a “Payment Blockage Period”) commencing upon the receipt by
such Guarantor and the Trustee of written notice of such default from the
Representative of any Designated Senior Indebtedness specifying an election to
effect a Payment Blockage Period (a “Blockage Notice”) and ending 179 days
thereafter (or earlier if such Payment Blockage Period is terminated by written
notice to the Trustee and such Guarantor from the Person or Persons who gave such
Blockage Notice, by repayment in full in cash of such Designated Senior Indebtedness
or because the default giving rise to such Blockage Notice is no longer continuing).
Notwithstanding the provisions described in the immediately preceding sentence (but
subject to the provisions contained in the first sentence of this paragraph of this
Section 12.03), unless the holders of such Designated Senior Indebtedness or the
Representative of such holders shall have accelerated the maturity of such
Designated Senior Indebtedness, such Guarantor may resume payments under its
guarantee of any Subordinated Debt Securities after such Payment Blockage Period.
Not more than one Blockage Notice may be given in any consecutive 360-day period,
irrespective of the number of defaults with respect to any number of issues of
Designated Senior Indebtedness during such period, unless otherwise specified
pursuant to Section 2.03 for the Subordinated Debt Securities of a series; provided,
however, that in no event may the total number of days during which any Payment
Blockage Period or Periods is in effect exceed 179 days in the aggregate during any
360 consecutive day period. For purposes of this Section 12.03, no default or event
of default which existed or was continuing on the date of the commencement of any
Payment Blockage Period with respect to the Designated Senior Indebtedness of such
Guarantor initiating such Payment Blockage Period shall be, or be made, the basis of
the commencement of a subsequent Payment Blockage Period by the Representative of
such Designated Senior Indebtedness, whether or not within a period of 360
consecutive days, unless such default or event of default shall have been cured or
waived for a period of not less than 90 consecutive days.

ARTICLE VII

GUARANTEE OF THE LoTSSM

          Section 7.1 Guarantee of the LoTSSM. In accordance with Article XIV of the Indenture,
the LoTSSM, subject to Section 7.2, shall be fully, unconditionally and absolutely
guaranteed by the Parent Guarantor (the “Guarantee”) and are hereby designated as entitled
to

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the benefits of the Guarantee of the Parent Guarantor. Initially, there shall be no Subsidiary
Guarantors.

          Section 7.2 Subordination of Guarantee. The obligations of the Parent Guarantor under the
Guarantee shall be subordinated to all Senior Indebtedness (as defined in this Eighth Supplemental
Indenture) of the Parent Guarantor on the terms and subject to the conditions set forth in Article
XII of the Indenture, and each Holder of the LoTSSM issued hereunder by such Holder’s
acceptance thereof, acknowledges and agrees that the Guarantee shall be issued subject to the
provisions of this Section 7.2 and such Article XII and that each Holder of LoTSSM,
whether upon original
issuance or upon transfer or assignment thereof, accepts and agrees to be bound by such
provisions. The Guarantee of the Parent Guarantor is a Guarantee of Subordinated Debt Securities,
and, for purposes of the LoTSSM only, and not for purposes of any other Debt Securities,
all references in the Indenture to Senior Indebtedness of the Parent Guarantor shall mean Senior
Indebtedness, as defined in this Eighth Supplemental Indenture, of the Parent Guarantor.

ARTICLE VIII

APPLICABILITY OF DEFEASANCE AND COVENANT DEFEASANCE

          Section 8.1 Applicability of Defeasance and Covenant Defeasance. The LoTSSM will be
subject to satisfaction, defeasance and discharge pursuant to Article XI of the Indenture in
accordance with the provisions of such Article.

ARTICLE IX

EVENTS OF DEFAULT AND REMEDIES OF THE TRUSTEE AND HOLDERS OF LoTSSM

          Section 9.1 Amendment and Restatement of Section 6.01 of the Base Indenture. For purposes of the
LoTSSM only, and not for purposes of any other Debt Securities, Section 6.01 of the Base
Indenture is hereby amended and restated in its entirety to read as follows:

               Section 6.01 Events of Default. If any one or more of the following
shall have occurred and be continuing with respect to the LoTSSM (each of
the following an “Event of Default”):

               (a) failure to pay principal on the LoTSSM when due;

               (b) failure to pay Interest on the LoTSSM when due and such default
continues for thirty (30) days (it being understood that the deferral of Interest as
permitted by Article IV is not a default in payment of Interest on the
LoTSSM);

               (c) failure to pay Interest on the LoTSSM in full on the first
Interest Payment Date that is more than a period of ten (10) consecutive years

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after
the beginning of an Optional Deferral Period that has continued throughout such ten
(10) consecutive year period and is continuing;

               (d) the occurrence of a Bankruptcy Event with respect to the Company or the
Parent Guarantor; or

               (e) the Guarantee ceases to be in full force and effect or is declared null and
void in a judicial proceeding;

then, and in each and every case that an Event of Default described in clause (a),
(b), (c), and (e) with respect to the LoTSSM at the time Outstanding
occurs and is continuing, unless the principal of, premium, if any, and Interest on
all the LoTSSM shall have already become due and payable, either the
Trustee or the Holders of not less than 25% in aggregate principal amount of the
LoTSSM then Outstanding hereunder, by notice in writing to the Company
(and to the Trustee if given by Holders), may, and the Trustee at the request of
such Holders shall, declare the principal of, premium, if any, and Interest on all
the LoTSSM to be due and payable immediately, and upon any such
declaration the same shall become and shall be immediately due and payable, anything
in the LoTSSM, the Indenture or in this Eighth Supplemental Indenture
contained to the contrary notwithstanding. If an Event of Default described in
clause (d) occurs, then and in each and every such case, unless the principal of,
premium, if any, and Interest on all the LoTSSM shall have become due and
payable, the principal of, premium, if any, and Interest on all the
LoTSSM then Outstanding hereunder shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of the
Trustee or any Holders, anything in the LoTSSM, the Indenture or in this
Eighth Supplemental Indenture contained to the contrary notwithstanding.

     The Holders of a majority in aggregate principal amount of the
LoTSSM then Outstanding by written notice to the Trustee may rescind an
acceleration and annul its consequences if the rescission would not conflict with
any judgment or decree of a court of competent jurisdiction already rendered and if
all existing Events of Default with respect to the LoTSSM have been cured
or waived except nonpayment of principal, premium, if any, or Interest that has
become due solely because of acceleration. Upon any such rescission, the parties
hereto shall be restored respectively to their several positions and rights
hereunder, and all rights, remedies, and powers of the parties hereto shall continue
as though no such proceeding had been taken.

ARTICLE X

MISCELLANEOUS

            Section 10.1 Ratification of Base Indenture. The Base Indenture, as amended and supplemented by
this Eighth Supplemental Indenture, is in all respects ratified and confirmed, and this Eighth
Supplemental Indenture shall be deemed part of the Base Indenture in

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the manner and to the extent
herein and therein provided; provided, however, that the provisions of this Eighth
Supplemental Indenture apply solely with respect to the LoTSSM. The Indenture shall,
solely in respect of the LoTSSM, be deemed a “junior subordinated indenture.”

          Section 10.2 No Recourse to General Partner. No recourse under or upon any obligation, covenant,
or agreement contained in this Eighth Supplemental Indenture or the Indenture or for any claim
based thereon or otherwise in respect thereof, shall be had (a) against the General Partner or the
general partner of the Parent Guarantor or any other partner of, or any Person which owns an
interest directly or indirectly in, the Company, the Parent Guarantor or such general partners or
(b) against any past, present, or future director, manager, officer, employee, agent, member or
partner, as such, of the Company, the Parent Guarantor or such general partners, under any rule of
law, statute, or constitutional provision or otherwise, all such liability being expressly waived
and released by the execution hereof by the Trustee and as part of the consideration for the
issuance of the LoTSSM.

          Section 10.3 Separateness. Each holder of LoTSSM by its acceptance thereof acknowledges
(a) the separateness as of the date hereof of the Company and the Parent Guarantor from each other
and from other Persons, (b) that each of the Company and the Parent Guarantor have assets and
liabilities that are separate from those of each other and from those of other Persons, (c) that
the LoTSSM and other obligations owing under the LoTSSM have not been
guaranteed by any Person, other than the Parent Guarantor and only to the extent explicitly set
forth herein, and (d) that, except as other Persons may expressly assume or guarantee any of the
LoTSSM or obligations thereunder, the Holders of the LoTSSM shall look solely
to the Company and its property and assets for the payment of any amounts payable pursuant to the
LoTSSM and for satisfaction of any obligations owing to the Holders of the
LoTSSM.

          Section 10.4 Trustee Not Responsible for Recitals. The recitals herein contained are made by the
Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness
thereof. The Trustee makes no representation as to the validity or sufficiency of this Eighth
Supplemental Indenture.

          Section 10.5 Governing Law. This Eighth Supplemental Indenture and the LoTSSM shall be
deemed to be a contract made under the internal laws of the State of New York, and for all purposes
shall be construed in accordance with the laws of said State.

          Section 10.6 Time is of the Essence. Time is of the essence in performance of the obligations
under this Eighth Supplemental Indenture.

          Section 10.7 Separability. In case any one or more of the provisions contained in this Eighth
Supplemental Indenture or in the LoTSSM 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 Eighth Supplemental Indenture or of the LoTSSM,
but this Eighth Supplemental Indenture
and the LoTSSM shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

- 20 -

 

          Section 10.8 Treatment of LoTSSM. By its acceptance of the LoTSSM, each
Holder and beneficial owner of the LoTSSM agrees to treat the LoTSSM as
indebtedness for all United States federal, state and local tax purposes.

          Section 10.9 Counterparts. This Eighth Supplemental 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 10.10 Withholding. Notwithstanding any other provision of the Indenture or this Eighth
Supplemental Indenture to the contrary, each Holder and beneficial owner of the LoTSSM
hereby authorizes the Company, if required by the Internal Revenue Code of 1986, as amended, or by
any other applicable legal requirement, to withhold any required amount from the amounts payable by
the Company hereunder to any Holder and/or beneficial owner of the LoTSSM for payment to
the appropriate taxing authority. Any amount so withheld from such Person will be treated as a
payment by the Company to such Person, except as otherwise provided below. Each such Person agrees
to file timely any agreement that is required by any taxing authority in order to avoid any
withholding obligation that would otherwise be imposed on the Company. If the amount required to
be withheld with respect to such Person exceeds the amount payable to such Person, such excess will
be treated as a demand loan to such Person, payable within ten (10) days after such time that the
Company makes payment to the appropriate taxing authority and demand is made on such Person to pay
same.

[Signature Page Follows.]

- 21 -

 

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

	 	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P., as Issuer
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Enterprise Products OLPGP, Inc.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ W. Randall Fowler
 

W. Randall Fowler
	 	 
	 

	 	 	 	Senior Vice President and Treasurer	 	 

	 	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS PARTNERS L.P., as Parent
Guarantor
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Enterprise Products GP, LLC	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ W. Randall Fowler
 

W. Randall Fowler
	 	 
	 

	 	 	 	Senior Vice President and Treasurer	 	 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Nancye Patterson
 

Nancye Patterson
	 	 
	 

	 	Title:
	 	Vice President	 	 

Amended and Restated Eighth Supplemental Indenture Signature Page

 

 

EXHIBIT A

FORM OF LoTSSM

(FORM OF FACE OF LoTSSM)

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”) (55 WATER STREET, NEW YORK, NEW YORK 10041) TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]*

[TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO HEREIN.]*

Principal Amount

							
	No.
	 	 	 	 
	 	$                    , [which amount may be
	  
	 	 
	 	 
	 	increased or decreased by the Schedule

of Increases and Decreases in Global Security attached hereto.]*

ENTERPRISE PRODUCTS OPERATING L.P.

8.375% FIXED/FLOATING RATE JUNIOR SUBORDINATED NOTES DUE 2066

CUSIP                    

     ENTERPRISE PRODUCTS OPERATING L.P., a Delaware limited partnership (the “Company,”
which term includes any successor under the Indenture hereinafter referred to), for value received,
hereby promises to pay to [Cede & Co.]* or its registered assigns, the principal sum of
                     U.S. dollars ($                    ), [or such greater or lesser principal sum as is shown on
the attached Schedule of Increases and Decreases in Global Security]* on August 1, 2066
in such coin and currency of the United States of America as at the time of

 

			
	*	 	To be included in a Book-Entry Note.

 

 

payment shall be legal
tender for the payment of public and private debts, and to pay interest as provided below.

          From July 18, 2006 through but not including August 1, 2016 (or, if earlier, until the
principal thereof is paid) (the “Fixed Rate Period”), the outstanding principal amount
hereof and (to the extent that payment of such interest is enforceable under applicable law) any
Deferred Interest or overdue installment of Interest hereon will bear interest at the per annum
rate of 8.375% payable (subject to the provisions of the Indenture more fully described on the
reverse hereof that permit the Company to elect to defer payments of Interest) semi-annually in
arrears on February 1 and August 1, of each year [commencing on February 1, 2007], compounded
semi-annually through the end of the Fixed Rate Period. From August 1, 2016 through but not
including the maturity date hereof (or, if earlier, until the principal thereof is paid) (the
“Floating Rate Period”), the outstanding principal amount hereof and (to the extent that
payment of such interest is enforceable under applicable law) any Deferred Interest or overdue
installment of Interest hereon will bear interest during each Quarterly Interest Period at the
applicable Floating Rate for such Quarterly Interest Period calculated pursuant to the Indenture,
payable (subject to the provisions of the Indenture more fully described on the reverse hereof that
permit the Company to elect to defer payments of Interest) quarterly in arrears on each February 1,
May 1, August 1, and November 1, commencing November 1, 2016, compounded quarterly at such
prevailing Floating Rate through the end of the Floating Rate Period. Payments of Interest shall
be made to the person in whose name the LoTSSM are registered at the close of business
on the record date for such Interest Payment Date, which during the Fixed Rate Period shall be the
January 15 or July 15, as the case may be, immediately preceding each Interest Payment Date and
during the Floating Rate Period shall be the January 15, April 15, July 15, or October 15, as the
case may be, immediately preceding each Interest Payment Date (each, a “Regular Record
Date”).

          Reference is made to the further provisions of the LoTSSM set forth on the reverse
hereof. Such further provisions shall for all purposes have the same effect as though fully set
forth at this place.

          The statements in the legends set forth in the LoTSSM are an integral part of the
terms of the LoTSSM and by acceptance hereof the Holder of the LoTSSM agrees
to be subject to, and bound by, the terms and provisions set forth in each such legend.

          The LoTSSM are a series of Debt Securities designated as the 8.375% Fixed/Floating
Rate Junior Subordinated Notes due 2066 of the Company and are issued under and governed by the
Indenture dated as of October 4, 2004 (the “Base Indenture”), duly executed and delivered
by the Company, as issuer, and Enterprise Products Partners L.P., as parent guarantor (the
“Parent Guarantor”), to Wells Fargo Bank, National Association, as trustee (the
“Trustee”), as supplemented by the Amended and Restated Eighth Supplemental Indenture dated
as of August                     , 2006, duly executed by the Company, the Parent Guarantor and the Trustee (the
“Eighth Supplemental Indenture”, and together with the Base Indenture, the
“Indenture”). The terms of the Indenture are incorporated herein by reference. Any term
defined in the Indenture has the same meaning when used herein.

 

 

     If and to the extent any provision of the Indenture limits, qualifies, or conflicts with any
other provision of the Indenture that is required to be included in the Indenture or is deemed
applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as
amended (the “TIA”), such required provision shall control.

     The Company hereby irrevocably undertakes to the Holder hereof to exchange the
LoTSSM in accordance with the terms of the Indenture without charge.

     The LoTSSM shall not be valid or become obligatory for any purpose until the
Trustee’s Certificate of Authentication hereon shall have been manually signed by the Trustee under
the Indenture.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by its sole
General Partner.

Dated:                     , 200_

	 	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Enterprise Products OLPGP, Inc.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

     This is one of the Debt Securities of the series designated herein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as
	 	 
	 	 	Trustee
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

 

 

[REVERSE OF SECURITY]

ENTERPRISE PRODUCTS OPERATING L.P.

8.375% FIXED/FLOATING RATE JUNIOR SUBORDINATED NOTES DUE 2066

     The LoTSSM are one of a duly authorized issue of Debt Securities of the Company
issued under and pursuant to the Indenture, 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, the Parent Guarantor and the Holders of the Debt Securities. The Debt
Securities may be issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise
vary as provided in the Indenture. The LoTSSM are of a series designated as the 8.375%
Fixed/Floating Rate Junior Subordinated Notes due 2066 of the Company (the
“LoTSSM”).

1. Interest.

     During the Fixed Rate Period, the outstanding principal amount hereof and (to the extent that
payment of such interest is enforceable under applicable law) any Deferred Interest or overdue
installment of Interest hereon will bear interest at the per annum rate of 8.375% payable (subject
to the provisions of the Indenture relating to Interest deferrals more fully described below)
semi-annually in arrears on February 1 and August 1 of each year [commencing on February 1, 2007],
compounded semi-annually through the end of the Fixed Rate Period. During the Floating Rate
Period, the outstanding principal amount hereof and (to the extent that payment of such interest is
enforceable under applicable law) any Deferred Interest or overdue installment of Interest hereon
will bear interest during each Quarterly Interest Period at the applicable Floating Rate for such
Quarterly Interest Period calculated pursuant to the Indenture, payable (subject to the provisions
of the Indenture relating to Interest deferrals more fully described below) quarterly in arrears on
each February 1, May 1, August 1 and November 1, commencing November 1, 2016, compounded quarterly
at such prevailing Floating Rate through the end of the Floating Rate Period.

     During the Fixed Rate Period, the amount of Interest payable on any Interest Payment Date will
be computed on the basis of a 360-day year of twelve 30-day months. During the Floating Rate
Period, the amount of any Interest payable on any Interest Payment Date will be computed on the
basis of a 360-day year and the actual number of days elapsed. In the event that any date on which
Interest is payable on this LoTSSM is not a Business Day, then a payment of the Interest
payable on such date will be made on the next succeeding day which is a Business Day (and without
any interest or other payment in respect of any such delay), with the same force and effect as if
made on the date the payment was originally payable.

 

 

2. Optional Deferral of Interest.

     Subject to the terms of the Indenture, the Company shall have the right, at any time and from
time to time during the term of the LoTSSM, to elect to defer payment of all or any
portion of any Current Interest and/or Deferred Interest otherwise due on the LoTSSM on
any Interest Payment Date. No Interest on the LoTSSM shall be due and payable on any
Interest Payment Date during an Optional Deferral Period; however, Interest shall accrue on the
LoTSSM during such period in accordance with the Eighth Supplemental Indenture.

3. Method of Payment.

     The Company shall pay interest on the LoTSSM (except Defaulted Interest) to the
persons who are the registered Holders at the close of business on the Regular Record Date
immediately preceding the Interest Payment Date. The Company shall pay principal, premium, if any,
and interest in such coin or currency of the United States of America as at the time of payment
shall be legal tender for payment of public and private debts. Payments in respect of a Global
Security (including principal, premium, if any, and interest) will be made by wire transfer of
immediately available funds to the accounts specified by the Depositary. Payments in respect of
LoTSSM in definitive form (including principal, premium, if any, and interest) will be
made at the office or agency of the Company maintained for such purpose within The City of New
York, which initially will be Wells Fargo Corporate Trust, c/o DTC, 1st Floor, TADS Department, 55
Water Street, New York, New York 10041, or, at the option of the Company, payment of interest may
be made by check mailed to the Holders on the relevant record date at their addresses set forth in
the Debt Security Register of Holders or at the option of the Holder, payment of interest on
LoTSSM in definitive form will be made by wire transfer of immediately available funds
to any account maintained in the United States, provided such Holder has requested such method of
payment and provided timely wire transfer instructions to the paying agent. The Holder must
surrender these LoTSSM to a paying agent to collect payment of principal.

4. Paying Agent and Registrar.

     Initially, Wells Fargo Bank, National Association will act as paying agent and Registrar. The
Company may change any paying agent or Registrar at any time upon notice to the Trustee and the
Holders. The Company may act as paying agent.

5. Indenture.

     The LoTSSM are one of a duly authorized issue of Debt Securities of the Company
issued and to be issued in one or more series under the Indenture.

     The terms of the LoTSSM include those stated in the Indenture, those made part of
the Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those
terms stated in the Eighth Supplemental Indenture. The LoTSSM are subject to all such
terms, and Holders of Securities are referred to the Indenture, the Eighth Supplemental Indenture
and the TIA for a statement of them. The LoTSSM are junior subordinated obligations of
the Company and are not secured by any of the assets of the Company.

 

 

6. Denominations; Transfer; Exchange.

     The LoTSSM are to be issued in registered form, without coupons, in denominations
of $1,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer
of, or exchange, LoTSSM in accordance with the Indenture. The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay
any taxes and fees required by law or permitted by the Indenture.

7. Person Deemed Owners.

     The registered Holder of LoTSSM may be treated as the owner of it for all purposes.

8. Amendment; Supplement; Waiver.

     Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing
Event of Default or compliance with any provision may be waived, with the consent of the Holders of
a majority in principal amount of the Outstanding LoTSSM. Without consent of any Holder
of LoTSSM, the parties thereto may amend or supplement the Indenture to, among other
things, cure any ambiguity or omission, to correct any defect or inconsistency, or to make any
other change that does not adversely affect the rights of any Holder of LoTSSM. Any
such consent or waiver by the Holder of these LoTSSM (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners
of these LoTSSM and any LoTSSM which may be issued in exchange or
substitution herefor, irrespective of whether or not any notation thereof is made upon these
LoTSSM or such other LoTSSM.

9. Defaults and Remedies.

     Certain events of bankruptcy or insolvency are Events of Default that will result in the
principal amount of the LoTSSM, together with premium, if any, and Interest thereon,
becoming due and payable immediately upon the occurrence of such Events of Default. If any other
Event of Default with respect to the LoTSSM occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in aggregate principal amount of the
LoTSSM then Outstanding may declare the principal amount of all the LoTSSM,
together with premium, if any, and Interest thereon, to be due and payable immediately in the
manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence,
however, if at any time after such a declaration of acceleration has been made, the Holders of a
majority in principal amount of the Outstanding LoTSSM, by written notice to the
Trustee, may rescind such declaration and annul its consequences if the rescission would not
conflict with any judgment or decree of a court already rendered and if all Events of Default with
respect to the LoTSSM, other than the nonpayment of the principal, premium, if any, or
Interest which has become due solely by such declaration acceleration, shall have been cured or
shall have been waived. No such rescission shall affect any subsequent default or shall impair any
right consequent thereon. Holders of LoTSSM may not enforce the Indenture or the
LoTSSM except as provided in the Indenture. The Trustee may require indemnity or
security satisfactory to it before it enforces the Indenture or the

 

 

LoTSSM. Subject to
certain limitations, Holders of a majority in aggregate principal amount of the LoTSSM
then Outstanding may direct the Trustee in its exercise of any trust or power.

10. Trustee Dealings with Company.

     The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company or its Affiliates or any subsidiary of
the Company’s Affiliates, and may otherwise deal with the Company or its Affiliates as if it were
not the Trustee.

11. Authentication.

     These LoTSSM shall not be valid until the Trustee signs the certificate of
authentication on the other side of these LoTSSM.

12. Abbreviations and Defined Terms.

     Customary abbreviations may be used in the name of a Holder of LoTSSM or an
assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint
tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A
(Uniform Gifts to Minors Act).

13. CUSIP Numbers.

     Pursuant to a recommendation promulgated by the Committee on Uniform Note Identification
Procedures, the Company has caused CUSIP numbers to be printed on the LoTSSM as a
convenience to the Holders of the LoTSSM. No representation is made as to the accuracy
of such number as printed on the LoTSSM and reliance may be placed only on the other
identification numbers printed hereon.

14. Absolute Obligation.

     No reference herein to the Indenture and no provision of the LoTSSM or the
Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of, premium, if any, and interest on these LoTSSM in the manner, at
the respective times, at the rate and in the coin or currency herein prescribed.

15. No Recourse.

     The General Partner and the general partner of the Parent Guarantor and their respective
directors, officers, employees, and members, as such, shall have no liability for any obligations
of any Guarantor or the Company under the LoTSSM, the Indenture, or any Guarantee or for
any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder by accepting the LoTSSM waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the LoTSSM.

 

 

16. Ranking.

     The LoTSSM rank junior and subordinate in rank and priority of payment to all of
the Company’s Senior Indebtedness as more fully provided in Article XII of the Indenture and
Article VI of the Eighth Supplemental Indenture.

17. Governing Law.

     The LoTSSM shall be construed in accordance with and governed by the laws of the
State of New York.

18. Guarantee.

     Subject to Article XII of the Indenture and Articles VI and VII of the Eighth Supplemental
Indenture, the LoTSSM are fully and unconditionally guaranteed on an unsecured basis by
the Parent Guarantor. The Parent Guarantor’s obligations under the Guarantee rank junior and
subordinate in rank and priority of payment to all of the Parent Guarantor’s Senior Indebtedness.

19. Reliance.

     The Holder, by accepting these LoTSSM, acknowledges and affirms that (i) it has
purchased the LoTSSM in reliance upon the separateness of Parent Guarantor and the
general partner of Parent Guarantor from each other and from any other Persons, including EPCO,
Inc., and (ii) Parent Guarantor and the general partner of Parent Guarantor have assets and
liabilities that are separate from those of other Persons, including EPCO, Inc.

 

 

NOTATION OF GUARANTEE

     Subject to Article XII of the Indenture and Articles VI and VII of the Eighth Supplemental
Indenture, the Parent Guarantor (which term includes any successor Person under the Indenture), has
fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and
subject to the provisions in the Indenture, the due and punctual payment of the principal of, and
premium, if any, and interest on the LoTSSM and all other amounts due and payable
(subject to the right of the Company to defer Interest payments on the terms and conditions set
forth in Section 4.1 of the Eighth Supplemental Indenture) under the Indenture by the Company. The
Parent Guarantor’s obligations under such guarantee rank junior and subordinate in rank and
priority of payment to all of the Parent Guarantor’s Senior Indebtedness and constitute a guarantee
of Subordinated Debt Securities for all purposes under the Indenture.

     The obligations of the Parent Guarantor to the Holders of Securities and to the Trustee
pursuant to its Guarantee and the Indenture are expressly set forth in Article XIV of the
Indenture, and are subject to the provisions of Article XII of the Indenture and Section 7.2 of the
Eighth Supplemental Indenture, and reference is hereby made to such documents for the precise terms
of the Guarantee.

	 	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Enterprise Products GP, LLC,	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 	 	 	 	 	 	 
	TEN COM

	 	-
	 	as tenants in common
	 	UNIF GIFT MIN ACT -	 	 	 	 
	 

	 	 	 	 	 	 	 	 

(Cust.)
	 	 
	TEN ENT

	 	-
	 	as tenants by entireties
	 	Custodian for:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

(Minor)
	 	 
	JT TEN

	 	-
	 	as joint tenants with
right of survivorship and not
as tenants in common
	 	under Uniform Gifts
to Minors Act of	 	 	 	 
	 

	 	 	 	 	 	 	 	 

(State)
	 	 

Additional abbreviations may also be used though not in the above list.

 

ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
    
IDENTIFYING NUMBER OF ASSIGNEE

 

	 
	 

	Please print or type name and address including postal zip code of assignee

 

	 	 	 
	 
	   
	the within Security and all rights thereunder, hereby irrevocably constituting and appointing
	 	 

	 	 	 
	 
	   
	to transfer said Security on the books of the Company, with full power of substitution in the
premises.
	 	 

	 	 	 	 	 	 	 	 	 
	Dated

	 	 	 	 	 	 

	 	 
	 

	 	 

	 	 	 	Registered Holder	 	 

 

 

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITIES*

The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	Amount of	 	 	Principal Amount	 	 	 	 
	 	 	Decrease in	 	 	Increase in	 	 	of this Global	 	 	Signature of	 
	 	 	Principal	 	 	Principal Amount	 	 	Security following	 	 	authorized officer	 
	 	 	Amount of this	 	 	of this	 	 	such decrease	 	 	of Trustee or	 
	Date of Exchange	 	Global Security	 	 	Global Security	 	 	(or increase)	 	 	Depositary	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 To be included in a Book-Entry Note.exv10w1

 

EXHIBIT 10.1

Treasury Services

Terms and Conditions

Bank of America — Higher Standards

 

 

AUTHORIZATION AND AGREEMENT FOR TREASURY SERVICES

I am an authorized representative of the organization specified below (the Client). The Client has
received Bank of Americas Treasury Services Terms and Conditions Booklet (the Booklet’) in the form
and with the content posted on the website of Bank of America and agrees to adhere to the Booklet
and any applicable User Documentation from Bank of America (“Bank’). The Services covered by the
Booklet and the banks providing Services are listed on the accompanying List of Banks and Services,
which we may change from time to time. Capitalized terms used in this Authorization and Agreement
form, not otherwise defined, have the meanings given to them in the Booklet.

After I sign below on behalf of the Client, the Client may from time to time request the Bank to
provide any of the Services described in the Booklet. The Client may begin to use any such Service
once Bank has approved such use and has received all required and properly executed forms and the
Client has successfully completed any testing or training requirements. The Booklet supersedes
other agreements between the Client and the Bank, as described under the General Matters heading in
the Booklet, with regard to the provision of Services.

I warrant that the Client has taken all action required by its organizational or constituent
documents to authorize me to execute and deliver on behalf of the Client this Authorization and
Agreement form and any other documents the Bank may require with respect to a Service. I am
authorized to enter into all transactions contemplated by the provision of Services to the Client.
These may include, but are not limited to, giving the Bank instructions with regard to Electronic
Funds Transfer Services and designating employees or agents to act in the name arid on behalf of
the Client.

 
Guidelines for completion:

	 	 	 
	If Client is a:
	 	Who must sign:
	corporation 
	 	any authorized officer
	limited liability company 
	 	all members, or any authorized officer*
	partnership (general or limited) 
	 	any general partner*
	limited liability partnership 
	 	the managing partner*
	sole proprietorship 
	 	the sole proprietor
	governmental entity 
	 	the Treasurer*

 

			
	*	 	Includes any individual authorized under Client’s charter or organizational or constituent
documents. The legal name of any member, managing member, manager or general partner who is
signing and who is not an individual must appear in the signature block. Note that in most
cases the Client must also complete the Certification form which follows.

      

	 	 	 
	 

	 	 
	(ORGANIZATION’S/CLIENT’S LEGAL NAME)

	 	Dated
	 
	 	 
	 

	 	 
	[Signature of Authorized Representative]

	 	[Signature of Authorized Representative,
if two are required by Client]
	 
	 	 
	 

	 	 
	[Print Name of Authorized Representative]

	 	[Print Name of Authorized Representative]
	 
	 	 
	 

	 	 
	[Print Title of Authorized
Representative (include the legal name
of any member, managing member, manager
or general partner who is signing and
who is not an individual)]

	 	[Print Title of Authorized
Representative (include the legal name
of any member, managing member, manager
or general partner who is signing and
who is not an individual)]
	 
	 	 
	The following addresses may be used for
giving notices in connection with this
Booklet except as you or we provide the
other different addresses to be used in
conjunction with your accounts or
particular Services.

	 	Address(es) for Bank Notices:
	 	Bank of America, N.A.

Documentation Management (CA4.706-04-07)

P.O. Box 27128

Concord, CA 94527-9904

Fax No.: (925) 675-7131

and, if filled in, the following:
	 
	 	 
	Address for Client Notices:
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Telephone: (___)	 	 	 	 	Telephone: (___)	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Fax: (___)

	 	 	 	 	 	 	 	Fax: (___)	 	 	 	 
	 	 	 	 	 	 	 	 	 

i

 

AUTHORIZATION AND AGREEMENT CERTIFICATION

I certify that each signature appearing on the previous page for Client is the true signature of a
person authorized to execute the form on behalf of Client, and I further certify that I have full
authority to execute this certification. The Bank is entitled to rely upon this certification until
written notice of its revocation is delivered to the Bank.

 

Guidelines for completion: This Certification should not be signed by the individual who signed the
Authorization and Agreement.

	 	 	 
	If Client is a:
	 	Who must sign:
	corporation 
	 	any authorized officer
	limited liability company 
	 	any member or authorized officer
	limited liability partnership 
	 	any partner
	partnership (general or limited) 
	 	any general partner
	sole proprietorship 
	 	no signature required
	governmental entity 
	 	the entity's counsel, or any other individual as permitted by
	 
	 	the entity's organizational documents

The legal name of any member, managing member, manager or general partner who is signing and who is
not an individual must appear in the signature block.

			
	Note:	 	If Client is not a U.S. based entity, it is not required to complete this certification, but
must provide authorizing certificates or mandates.

	 	 	 
	 

	 	 
	Dated

	 	(ORGANIZATION’S/CLIENT’S LEGAL NAME)
	 
	 	 
	 

	 	 
	 

	 	[Signature of Certifying Representative]
	 
	 	 
	 

	 	 
	 

	 	[Print Name of Certifying Representative]
	 
	 	 
	 

	 	 
	 

	 	[Print Title of Certifying Representative (include the legal name of
any member, managing member, manager or general partner who is
signing and who is not an individual)]

ii

 

TREASURY SERVICES DELEGATION OF AUTHORITY FORM

This form is optional and is to be used when you wish to delegate authority to sign various
authorization forms to someone other than the person who signed the Authorization and Agreement
form in the front of this Booklet.

By signing below, you authorize the incumbent of the specified position listed in Section A or each
person listed in section B below, acting alone, to execute documents that we may request, and any
amendments or renewals thereof, pertaining to the use of Services, including but not limited to
designating one or more persons (which may include himself or herself) authorized to initiate,
amend, cancel, confirm or verify the authenticity of instructions to us for Services, whether given
orally, electronically or by facsimile instructions, and to revoke any authorization granted to any
such person, as he or she deems appropriate. The signer of this form has the same authority
described above for each Service with us, unless otherwise specified. We are entitled to rely upon
this delegation until written notice of its revocation is received by us.

 
Guidelines for Completion: Fill out either section A or section B, or both, depending on your needs.

	•	 	To delegate authority to any person holding a specific title, fill out section A.

	•	 	To delegate authority to specific individuals by name, fill out section B.

For each name or title, indicate “All” in the “Service” column if the person or title has authority
to sign documents for all Services which you receive from us. Otherwise, indicate specific Services
for which the person or title has authority. For each name or title, indicate the entity or
entities for which the person or title has authority to sign documents.
 

	A.	 	TO DELEGATE AUTHORITY TO ANY PERSON HOLDING SPECIFIC POSITIONS

	 	 	 	 	 	 	 	 	 
	Title	 	Service	 	Entity
	 
	 	 	 	 	 	 	 	 

	B.	 	TO DELEGATE AUTHORITY TO SPECIFIC INDIVIDUALS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name	 	Service	 	Entity	 	Specimen Signature
	 
	 	 	 	 	 	 	 	 	 	 	 	 

CLIENT AUTHORIZATION

Client Authorization instructions: The same person who signed the Authorization and Agreement for
Treasury Services form must sign this Treasury Services Delegation of Authority form.

	 	 	 
	 

	 	 
	Dated

	 	(ORGANIZATION’S/CLIENT’S LEGAL NAME)
	 
	 	 
	 

	 	 
	 

	 	[Signature of Authorized Representative]
	 
	 	 
	 

	 	 
	 

	 	[Print Name of Authorized Representative]
	 
	 	 
	 

	 	 
	 

	 	[Print Title (include the legal name of any member, managing member,
manager or general partner who is signing and who is not an
individual)]

iii

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	INTRODUCTION
	 	 	 	 	 	 	1	 
	TREASURY SERVICES
	 	 	 	 	 	 	1	 
	ACCOUNT RECONCILEMENT
	 	 	 	 	 	 	1	 
	AUTOMATED CLEARING HOUSE (ACH)
	 	 	 	 	 	 	2	 
	AUTOMATED CLEARING HOUSE (ACH) BLOCKS AND FILTERS
	 	 	 	 	 	 	4	 
	AUTOMATED CLEARING HOUSE (ACH) CUSTOMER-INITIATED PAYMENTS
	 	 	 	 	 	 	5	 
	CASHPAY®
	 	 	 	 	 	 	5	 
	CHECK ISSUANCE
	 	 	 	 	 	 	6	 
	CHECK TRUNCATION
	 	 	 	 	 	 	7	 
	CLIENT-PRINTED DRAFTS
	 	 	 	 	 	 	7	 
	COIN AND CURRENCY ORDERS
	 	 	 	 	 	 	9	 
	COLLECTION LETTERS
	 	 	 	 	 	 	9	 
	COMMERCIAL AND CORPORATE CARD
	 	 	 	 	 	 	10	 
	COMMERCIAL DEPOSITS
	 	 	 	 	 	 	14	 
	COMMERCIAL PREPAID CARD
	 	 	 	 	 	 	15	 
	CONTROLLED BALANCE ACCOUNTS
	 	 	 	 	 	 	16	 
	CONTROLLED DISBURSEMENT
	 	 	 	 	 	 	17	 
	DISBURSEMENT IMAGE
	 	 	 	 	 	 	19	 
	ELECTRONIC BILL PAYMENT CONSOLIDATION
	 	 	 	 	 	 	19	 
	ELECTRONIC DATA INTERCHANGE (EDI)
	 	 	 	 	 	 	19	 
	ELECTRONIC FOREIGN EXCHANGE
	 	 	 	 	 	 	20	 
	INFORMATION REPORTING
	 	 	 	 	 	 	22	 
	LOCKBOX
	 	 	 	 	 	 	23	 
	ONLINE STOP PAYMENT
	 	 	 	 	 	 	24	 
	POSITIVE PAY
	 	 	 	 	 	 	25	 
	RECLEAR
	 	 	 	 	 	 	26	 
	RE-PRESENTMENT CHECK (RCK)
	 	 	 	 	 	 	27	 
	TAX PAYMENTS
	 	 	 	 	 	 	27	 
	WIRE TRANSFER AND INTERNATIONAL ELECTRONIC FUNDS TRANSFERS
	 	 	 	 	 	 	30	 
	ELECTRONIC TRADE SERVICES
	 	 	 	 	 	 	33	 
	ADVISED STANDBY LE1TERS OF CREDIT
	 	 	 	 	 	 	34	 
	COLLECTIONS
	 	 	 	 	 	 	35	 
	EXPORT LE1TERS OF CREDIT
	 	 	 	 	 	 	35	 
	INFORMATION REPORTING
	 	 	 	 	 	 	37	 
	OPEN ACCOUNT
	 	 	 	 	 	 	37	 
	STANDBY AND IMPORT LE1TERS OF CREDIT
	 	 	 	 	 	 	38	 
	SUPPLEMENTAL LIMITATION OF LIABILITIES AND INDEMNIFICATION FOR ALL ELECTRONIC TRADE SERVICES
	 	 	 	 	 	 	40	 
	GENERAL PROVISIONS
	 	 	 	 	 	 	41	 
	CHANGES TO A SERVICE
	 	 	 	 	 	 	41	 
	COMMUNICATIONS
	 	 	 	 	 	 	41	 
	CONFIDENTIALITY
	 	 	 	 	 	 	41	 
	CURRENCY EXCHANGE RATES
	 	 	 	 	 	 	43	 
	FACSIMILE SIGNATURES
	 	 	 	 	 	 	43	 
	GENERAL MATTERS
	 	 	 	 	 	 	44	 
	GOVERNING LAW
	 	 	 	 	 	 	45	 
	LIMITATION OF LIABILITIES
	 	 	 	 	 	 	45	 
	OVERDRAFTS
	 	 	 	 	 	 	46	 
	PAYMENT FOR SERVICES
	 	 	 	 	 	 	46	 
	PROTECTION FROM THIRD PARTIES
	 	 	 	 	 	 	47	 
	REPRESENTATIONS AND WARRANTIES
	 	 	 	 	 	 	47	 
	RESOLUTION OF DISPUTES
	 	 	 	 	 	 	48	 
	SOFTWARE LICENSE
	 	 	 	 	 	 	48	 
	TERMINATION
	 	 	 	 	 	 	52	 
	GLOSSARY OF TERMS
	 	 	 	 	 	 	53	 

©2004 by Bank of America Corporation

All rights reserved. None of the enclosed material may be reproduced or published without permission.

iv

 

INTRODUCTION

	 	 	Thank you for choosing the Bank of America Corporation group of
financial institutions for your worldwide treasury management business
needs. We appreciate the opportunity to serve you. If you have any questions
about our extensive array of treasury services (including the locations
where each service is available) or about this Booklet, please contact your
treasury services representative.
	 
	 	 	Capitalized terms used in this Booklet are defined in the Glossary. The
terms “we”, “us” and “our” refer to each of the Bank of America Corporation
subsidiary banks which provide you a particular Service under the terms of
this Booklet. The terms “you” and “your” refer to each Client identified on
the Authorization and Agreement for Treasury Services.
	 
	 	 	This Booklet contains the terms and conditions under which we provide you
worldwide treasury services. It is used in conjunction with the Account
Agreement which covers account terms and conditions. Please read this
Booklet carefully and keep it for your records.
	 
	 	 	By signing and returning the Authorization and Agreement form in the front
of this Booklet, you agree to the General Provisions section of this Booklet
(which contains terms and conditions applicable to all Services), except
that you agree to the Software License Section of the General Provisions
only to the extent we provide you Software in connection with one or more
Services. You also agree to those portions of the Treasury Services and
Electronic Trade Services sections of this Booklet which contain the
specific terms and conditions that relate to the Services we provide to you.
If you would like an additional Service, it will be covered by the terms and
conditions of this Booklet once we have approved your use of the Service.
You may begin using the Service when we have received all required and
properly executed forms and you have successfully completed any testing or
training requirements.
	 
	 	 	Whenever you use any of the Services covered by this Booklet, you agree to
be bound by these terms and conditions, as amended from time to time, and to
follow the procedures in the applicable Materials.

TREASURY SERVICES

	 	 	We offer a wide variety of treasury services. Each Service has many
features and options. Your treasury services representative will be happy to
describe these to you and to recommend those that will best meet your needs.
	 
	 	 	A List of Banks and Services is enclosed with this Booklet. This list
includes the names of each Bank of America Corporation subsidiary bank
offering Services under this Booklet and the names under which we currently
offer those Services. Please contact your treasury services representative
at any time if you wish to receive an updated list.

ACCOUNT RECONCILEMENT

	 	 	Our Account Reconcilement Services will help you reconcile and manage
the credit and debit activity in your accounts. Detailed information
regarding such Services is available in the applicable User Documentation.
	 
	 	 	Your use of an Account Reconcilement Service does not affect any of your
obligations, which are described in the applicable Account Agreement, to
discover and report with respect to your accounts (including joint accounts
where permitted): (i) unauthorized signatures, alterations or endorsements
on checks and (ii) unauthorized Requests and other discrepancies. Your use
of this Service

1

 

	 	 	or our receipt of information associated with this Service does not increase
our duty with respect to accounts or the payment of checks.

AUTOMATED CLEARING HOUSE (ACH)

	 	 	This section applies only to ACH Services within the United States of
America and does not apply to cross-border ACH transactions and other
International Electronic Funds Transfers which are covered by the “Wire
Transfers and International Electronic Funds Transfers” section in this
Booklet.
	 
	 	 	Our ACH Services allow you to transfer funds to or from your accounts by
initiating Entries which may be sent through the ACH system or processed
directly to accounts with us.
	 
	 	 	We may send Entries to any ACH processor selected by us or directly to
another bank. Each ACH Service is described in the applicable User
Documentation. You authorize us to issue Depository Transfer Checks (DTCs),
as instructed by you or as reasonably determined by us to be appropriate.
The capitalized ACH terms appearing in italics below are defined in the
NACHA Rules.

     COMPLIANCE WITH NACHA RULES AND LAWS

	 	 	You agree to comply with the NACHA Rules for all Entries, whether or not an
Entry is sent through the ACH network. You act as Originator and we act as
Originating Depository Financial Institution (ODFI) with respect to Entries.
You will deliver Entries to us as provided in the User Documentation and the
NACHA Rules. The NACHA Rules govern if they conflict with this Booklet,
except that the file specification requirements in the User Documentation
govern if they conflict with the NACHA Rules.
	 
	 	 	Where a preauthorized debit Entry from a consumer’s account varies in amount
from the previous debit Entry, you will comply with the notice requirements
set forth in the NACHA Rules, the Electronic Funds Transfer Act and
Regulation E of the Board of Governors of the Federal Reserve System, as
applicable.

     AUTHORIZED PERSONS

	 	 	Before using an ACH Service, you give us a written list, in a form
acceptable to us, of the persons authorized by you to verify the
authenticity of Entries and Reversal/Deletion Requests in accordance with
the Security Procedure and to perform certain other duties in connection
with such Service.

     SECURITY PROCEDURE

	 	 	You agree to use the Security Procedure, if any, when you deliver Entries or
Reversal/Deletion Requests to us. The purpose of the Security Procedure is
to verify the authenticity of Entries and Reversal/Deletion Requests
delivered to us in your name and not to detect any errors in the
transmission or content of Entries. Each time you use a Service, you
represent and warrant that, in view of your requirements, the Security
Procedure is a satisfactory method of verifying the authenticity of Entries
and Reversal/Deletion Requests. You agree we may act on any Entries or
Reversal/Deletion Requests after we have verified its authenticity through
use of the Security Procedure.

     WARRANTIES

	 	 	Each time you use an ACH Service, (i) you warrant that you have obtained
appropriate authorization from each Receiver and that Entries conform to
such authorization and comply with the NACHA Rules, and (ii) you make the
same

2

 

	 	 	warranties to us as we make under Section 2.2 (or any successor section) of
the NACHA Rules.

     PAYMENT WITH RESPECT TO ENTRIES

	 	 	We generally debit your account on the settlement date for credit Entries
(including debit Reversals), unless you are prefunding your Entries.
Prefunding means that you are required to pay for all credit Entries before
the settlement date as we may specify. We may, at our discretion, without
prior notice to you, require prefunding before we process your credit
Entries. We are not obligated to process any credit Entries, even if we have
done so in the past, without having first been paid by you, but, if we do,
the amount is immediately due and payable without notice or demand.
	 
	 	 	You will pay us for the amount of any returned debit Entries (including
rejected debit Entries), any adjustment Entries or any returned DTCs, which
we have previously credited to your account. Such amounts shall be
immediately due and payable. You agree that we do not need to send a
separate notice of debit Entries or DTCs which have been returned unpaid.
You may request reports containing information regarding returned debit
Entries and DTCs.

     ACTING ON ENTRIES

	 	 	We send Entries to the ACH processor for settlement on the Effective Entry
Date shown on the Entries, if we receive the Entries by the applicable
processing deadlines specified in the User Documentation for the ACH Service
being used. We may treat Entries that we receive for processing after a
deadline as if received on the next Business Day. Entries will be deemed
received by us when we receive the complete file at the location specified
in the User Documentation.

     REJECTION OF ENTRIES

	 	 	We may reject any Entry that does not comply with the requirements of this
Booklet or the applicable User Documentation, including any ACH processing
limits described in the User Documentation, or that we are unable to verify
through use of the Security Procedure. We may also reject any Entry that may
be returned for any reason under the NACHA Rules or if you have breached
your payment obligations for any ACH Service we provide to you.
	 
	 	 	Notice of rejection will be given to you by telephone, by electronic means,
by facsimile or by mail within the time period specified in the User
Documentation and will be effective when given. We are not liable for the
rejection of any Entry and are not obligated to pay you interest for the
period before you receive the notice of rejection. If an Entry is rejected
for any reason, it is your responsibility to correct the Entry you intend to
resubmit.

     REVERSAL OR DELETION

	 	 	We have no obligation to cancel or amend any Entry after we have received
it. If you send us a Reversal/Deletion Request and we are able to verify the
authenticity of the Reversal/Deletion Request using the Security Procedure,
we wilt make a reasonable effort to act on your Reversal/Deletion Request.
We will not be liable to you if such Reversal/Deletion Request is not
effected. You agree to indemnify us in connection with any such
Reversal/Deletion Request as provided in UCC 4A. Your obligations under this
provision will survive the termination of any ACH Service.

3

 

     PROVISIONAL PAYMENTS

	 	 	You agree to be bound by the provision of the NACHA Rules providing that
payment of a credit Entry by the Receiving Depository Financial Institution
(RDFI) to the Receiver is provisional until the RDFI receives final
settlement for the Entry. If final settlement is not received, the RDFI is
entitled to a refund from the Receiver of the amount credited. This means
that the Receiver will not have been paid.
	 
	 	 	Our payment of any debit Entry, returned credit Entry or credit Reversal is
provisional until we receive final settlement for the Entry or Reversal. If
final settlement is not received, we are entitled to a refund and we may
charge your account for the amount previously credited. We may delay the
availability of any amount credited for a debit Entry or credit Reversal if
we believe that there may not be sufficient funds in your account to cover
any chargeback or return of the Entry or Reversal.

     INCONSISTENCY OF NAME AND NUMBER

	 	 	An RDFI can make payment to a Receiver based solely on the account number,
even if the name in the Entry differs from the name on the account. We will
send an Entry to an RDFI based solely on the bank identifying number you
provide, even if you provide us with a different RDFI name.

     NOTICE OF ACCOUNT STATEMENT DISCREPANCIES

	 	 	Information concerning Entries wilt be reflected in your account statements
and, in some cases, in the form of written or electronic advices or reports
that are produced by one of our Information Reporting Services. You must
send us written notice, with a statement of relevant facts, within 14 days
after you receive the first notice or statement indicating a discrepancy
between our records and yours. If you fail to give the required notice, we
will not be liable for any loss of interest or for compensation for any
other loss or cost relating to an unauthorized or erroneous debit to your
account or any other discrepancy reflected in the notice or account
statement. You must notify us promptly by telephone or other electronic
means approved by us for such purpose, and confirm such notice in writing,
of information concerning an unauthorized or erroneous debit to your account
if you learn about or discover it from any source other than a statement,
advice or report from us.

AUTOMATED CLEARING HOUSE (ACH) BLOCKS AND FILTERS

	 	 	This section applies only to ACH Blocks and Filters Services for
Entries received in the United States of America.
	 
	 	 	With the ACH Blocks and Filters Services, you provide us with the
authorization criteria for Entries you desire to receive for debit or credit
to your account. We will automatically return any Entry which does not meet
your authorization criteria.
	 
	 	 	We may also return an Entry that would be returned for any reason under the
NACHA Rules. The ACH Blocks and Filters Services do not apply to
transactions between you and us, and we may pay Entries which you have
authorized us to originate against your account (e.g., loan or credit card
payments), whether or not you have included these in your authorization
criteria. We may also pay any Entries, reversals or adjustments which we are
required to accept under the NACHA Rules, operating circulars or any other
applicable rule, guideline or regulation.

4

 

	 	 	You provide authorization criteria in a manner and form acceptable to us. In
your authorization criteria you may specify a maximum amount for authorized
Entries, in which case you must specify the amount in dollars and cents.
	 
	 	 	You agree to comply with the NACHA Rules for all Entries. Under the NACHA
Rules, credit Entries are provisional and may be revoked prior to final
settlement. If the credit Entry is revoked before final settlement and final
settlement is not received, we may charge your account for any amount
previously credited to your account. The person who originated the credit
Entry is considered not to have paid you. If this happens, we do not send a
separate notice.
	 
	 	 	If an ACH Blocks and Filters Service is terminated for any reason, we will
no longer be obligated to monitor Entries against your authorization
criteria and will receive and accept or return Entries to your account in
accordance with our normal procedures. You still have the right to return
Entries in accordance with the NACHA Rules.

AUTOMATED CLEARING HOUSE (ACH) CUSTOMER-INITIATED PAYMENTS

	 	 	Our ACH Customer-Initiated Payments service allows your consumer or
business customers to pay you for goods or services by using your website.
Your customers can authorize payments to you through commands on your
website or by touch-tone or voice commands on the telephone. Detailed
information regarding this Service is available in the applicable User
Documentation.
	 
	 	 	Payments will be made by creation of an ACH Entry to credit your account
with us and will be subject to the provisions of our Automated Clearing
House Services. You act as the Originator, your customer acts as the
Receiver and we act as the ODFI with respect to the Entries. You warrant
that you have obtained appropriate authorization from each Receiver and that
Entries conform to such authorization and comply with the NACHA Rules. You
also make to us the same warranties as we make with respect to Entries under
the NACHA Rules.

CASHPAY®

	 	 	Our CashPay® Service allows you to pay your employees and other payees
by directly depositing payments to their CashPay accounts. Your payees can
immediately access their money through ATMs and point of sale (POS)
terminals.
	 	 	
CASHPAY FUNDING OPTIONS

	 	 	You may fund the CashPay accounts in one of two ways: by initiating Entries
through the Automated Clearing House (ACH) system or, upon our approval, by
instructing us to transfer funds from a deposit account you maintain with
us. (ACH Services are governed by the ACH section of this Booklet.)
	 
	 	 	If you choose to pay by the transfer of funds from your account with us, we
will debit your account following receipt of your payment instructions in a
mutually agreed-upon format and method. You must have sufficient Collected
and Available Funds in your account to cover the transfer amount. In the
event that sufficient funds are not available at the time of settlement, you
agree that we may take steps to protect ourselves, including refusing to
fund CashPay accounts and terminating the CashPay Service (which will not
affect funds previously transferred to CashPay accounts), without incurring
any liability to you or your payees.

5

 

     CERTIFICATION OF ENROLLMENT INFORMATION

	 	 	You must provide us information for each payee who wishes to open a CashPay
account. Each time you provide us with such information or initiate a
transfer of funds to a CashPay account, you certify that the following
statements are true and accurate as of such date:

	 	•	 	The payee is entitled to receive payments
issued by you, and is otherwise qualified to participate in the CashPay
program.
	 
	 	•	 	All information provided by you about the payee
is correct, including but not limited to the payee’s date of birth,
address, and social security number or other identifying information
contained in another form of identification issued by a governmental
entity.
	 
	 	•	 	If the payee is to receive wage payments
through a CashPay account, the payee is legally employable in the
United States of America.
	 
	 	•	 	You have provided the payee the explanatory
CashPay Service information that we have provided to you for that
purpose, and the payee has authorized the transfer of wages to the
CashPay account.
	 
	 	•	 	The payee has not cancelled the authorization
to transfer the wages to the CashPay account.

	 	 	You agree to notify us promptly of any changes to the payee enrollment
information you have provided to us for this Service.

     ADDITIONAL LIMITATION OF LIABILITY

	 	 	As a general rule, ATMs cannot dispense cash in increments other than $5,
$10 or $20. This means that your payees may not be able to withdraw at an
ATM all funds paid by you to the payees’ CashPay accounts. We will wire the
difference to any payee who requests such payment; however, we will not be
responsible if your payees or others assert a claim against us due to this
inability to withdraw all funds at an ATM.

     PROMOTIONAL MATERIALS

	 	 	We will provide you with a CashPay agreement and other explanatory
documentation for you to give your payees. You must obtain our prior written
consent if you elect to promote the CashPay service using materials (in any
format) other than the documentation we provide to you for that purpose.

CHECK ISSUANCE

	 	 	With our Check Issuance Services, you may request us to create checks
on your behalf that are drawn on either (i) accounts maintained by you with
us or another bank or (ii) accounts designated and owned by us.

     AUTHORIZED PERSONS

	 	 	Before using a Check Issuance Service, you give us a written list, in a form
acceptable to us, of the persons authorized by you to perform certain duties
in connection with such Service.

     SECURITY PROCEDURE

	 	 	You agree to use the Security Procedure when you deliver Check Issuance
Requests or electronically transmit Stop Payment Requests to us. The purpose
of the Security Procedure is to verify the authenticity of Check Issuance
Requests and Stop Payment Requests delivered to us in your name and not to

6

 

	 	 	detect any errors in the transmission or content of these messages. Each
time you use a Check Issuance Service, you represent and warrant that, in view of
your requirements, the Security Procedure is a satisfactory method of
verifying the authenticity of Check Issuance Requests and such Stop Payment
Requests. You agree we may act on any Check Issuance Request and any
electronically transmitted Stop Payment Request the authenticity of which we
have verified through use of the Security Procedure.

     STOP PAYMENT REQUESTS

	 	 	Generally, you may send us a Stop Payment Request with respect to a check
drawn on an account designated and owned by us only if the check is lost,
stolen or destroyed. In such case, you must complete and provide us with a
declaration of loss and indemnity agreement reasonably acceptable to us. If
you wish to stop payment on a check drawn on an account you maintain with
us, you must make your request as provided in the applicable Account
Agreement.

     YOUR RESPONSIBILITIES

	 	 	You must create and transmit to us a Check Issuance Request for each check
you want us to issue on your behalf. You must make certain that each Check
Issuance Request conforms in form and substance to the requirements,
including cutoff times on a Business Day, described in the applicable User
Documentation.
	 
	 	 	You must retransmit any Check Issuance Request or other message initially
transmitted to us through a Service if you have not received an
acknowledgment message from us within the time period specified in the
applicable User Documentation.
	 
	 	 	In the case of checks drawn on accounts designated and owned by us, you must
ensure that Collected and Available Funds, sufficient to cover the total of
all checks issued, are on deposit in your accounts. We will debit your
account to cover such checks when we receive your Check Issuance Request. In
the case of checks drawn on accounts designated and owned by you, you will
be governed by the applicable Account Agreement.

CHECK TRUNCATION

	 	 	With our Check Truncation Service, we store copies of your canceled
checks on microfilm or other media and destroy the checks. You do not
receive your canceled checks. We will provide a copy of any check that you
request for up to seven years from the date the check was paid against your
account. To request a copy, you must provide us with sufficient information
for us to identify the item, including the Magnetic Ink Character
Recognition (MICR) serial number, account number, exact amount (dollars and
cents) of the check, statement reference number, if any, and posting date.
We may also ask you for additional identifying information.
	 
	 	 	Special services such as microfilm or review of dates, dollar amounts,
serial numbers or signatures may not be available in connection with the
Service.
	 
	 	 	Notwithstanding the Limitation of Liabilities section of this Booklet, if we
are unable to provide a copy of a check as requested by you under a Service,
our liability will be limited to your actual damages but will not, in any
event, exceed the amount of the check.

CLIENT-PRINTED DRAFTS

	 	 	With our Client-Printed Drafts Services, you use your computer (using
Software we provide or by accessing our treasury management website) to
print drafts

7

 

	 	 	(which may include drafts denominated in a currency other than
the currency in which the relevant account is denominated) drawn on either (i) accounts
maintained by you with us or another bank or (ii) accounts designated and
owned by us.

     AUTHORIZED PERSONS

	 	 	Before using a Client-Printed Drafts Service, you give us a written list, in
a form acceptable to us, of the persons authorized by you to perform certain
duties in connection with such Service.

     SECURITY PROCEDURE

	 	 	You agree to use the Security Procedure when you deliver Payment Advices or
electronically transmit Stop Payment Requests to us. The purpose of the
Security Procedure is to verify the authenticity of Payment Advices and Stop
Payment Requests delivered to us in your name and not to detect any errors
in the transmission or content of these messages. Each time you use a
Client-Printed Drafts Service, you represent and warrant that, in view of
your requirements, the Security Procedure is a satisfactory method of
verifying the authenticity of Payment Advices and such Stop Payment
Requests. You agree we may act on any Payment Advice or electronically
transmitted Stop Payment Request the authenticity of which we have verified
through use of the Security Procedure.

     STOP PAYMENT REQUESTS

	 	 	Generally, you may send us a Stop Payment Request with respect to a draft
drawn on an account designated and owned by us only if the draft is lost,
stolen or destroyed. In such case, you must complete and provide us with a
declaration of loss and indemnity agreement reasonably acceptable to us. If
you wish to stop payment on a draft drawn on an account you maintain with
us, you must make your request as provided in your Account Agreement.

     YOUR RESPONSIBILITIES

	 	 	You must verify the contents of each shipment of blank draft stock and sign
and return to us the receipt accompanying each shipment or notify us of any
discrepancy. You must notify us immediately if any draft stock is lost or
stolen. You will be liable for any damages arising out of the loss or theft
of any draft stock received by you.
	 
	 	 	You must create and transmit to us a Payment Advice for each draft you issue
using a Service. You must make certain that each draft, Payment Advice and
electronically transmitted Stop Payment Request conforms in form and
substance to the requirements, including cutoff times on a Business Day,
described in the applicable User Documentation.
	 
	 	 	You must retransmit any Payment Advice, electronically transmitted Stop
Payment Request or other message initially transmitted to us through a
Service if you have not received an acknowledgment message from us within
the time period specified in the applicable User Documentation.

     OUR RESPONSIBILITIES

	 	 	When we receive the Payment Advice, we will transfer funds from your account
with us to the bank account on which the draft is drawn.
	 
	 	 	We will provide you with blank draft stock and with the necessary Software
and/or access to our treasury management website.

8

 

     PAYMENT WITH RESPECT TO DRAFTS

	 	 	You agree you will not issue any drafts using a Service which would cause
your applicable account balance, according to your records, to be exceeded.
If your records and ours disagree regarding the account balance, our records
will control for purposes of these Services. You must ensure that Collected
and Available Funds, sufficient to cover the total of all drafts issued, are
on deposit in your account each Business Day before the time stated in the
applicable User Documentation.

COIN AND CURRENCY ORDERS

	 	 	Our Coin and Currency Order Services allow you to place orders for coin
and currency with our cash vaults and, where available, to exchange paper
currency for rolled coins and currency at certain banking centers or our
automated business centers.
	 
	 	 	Before using a Coin and Currency Order Service, you give us a written list
at our request, in a form acceptable to us, of the persons authorized by you
to place coin and currency orders and to perform certain other duties in
connection with a Service.
	 
	 	 	If you pick up your coin and currency order from one of our cash vaults, you
must contract separately with an armored carrier service that is acceptable
to us to provide for the transportation of cash orders. Armored carriers are
your agents.
	 
	 	 	You authorize us to act upon any request for coin or currency made in
accordance with this Booklet and the procedures described in the applicable
User Documentation.
	 
	 	 	In connection with any coin and currency you order from our cash vaults
using a Service, you authorize us to debit your account on the day the coin
and currency order is released to your authorized agent or to the depository
facility you and we have agreed upon. Each time you use a Coin and Currency
Order Service, you represent and warrant with each coin and currency order
that you have sufficient Collected and Available Funds in your account
which, when added to funds that are available under a line of credit, are
sufficient to cover your coin and currency order. We have no obligation to
release a coin and currency order unless there are sufficient Collected and
Available Funds in the designated account and available under a line of
credit to pay for such order at the time scheduled for release of the cash
to you or your agent.

COLLECTION LETTERS

	 	 	Our Collection Letter Services allow you to forward us drafts, checks
and travelers checks (as used in this section, “items”) drawn on Canadian
banks and denominated in U.S. dollars or drawn in specified foreign
currencies (as described in the applicable User Documentation) for
collection.
	 
	 	 	You must prepare and forward a transmittal letter, in a form acceptable to
us, along with those items you want us to process for collection in
accordance with the applicable User Documentation. You agree that you will
only request collection on items which are drawn on Canadian Banks in U.S.
dollars or foreign currency items drawn in currencies specified in the
applicable User Documentation.
	 
	 	 	We will send each item you forward to us for collection to the bank on which
such item was drawn or to an appropriate correspondent bank. We will credit
your account for each item on the Business Day on which we receive payment
for each such item at our then-prevailing buy rate for the applicable
currency. We will deduct all service fees and charges, plus any
correspondent bank fees and

9

 

	 	 	charges, from the amount of any payment credited to your account for such
items.
	 
	 	 	We will send you a written advice showing the applicable buying rate and
fees and charges for each item we process as a collection item through use
of a Collection Letter Service.

COMMERCIAL AND CORPORATE CARD

	 	 	Our Commercial and Corporate Card Services allow you to open Card
Accounts for your business purposes, as described below. With our Commercial
Card Services, which are designed principally for medium-sized companies,
you may obtain a single Card for managing purchases, travel and fleet
spending. With our Corporate Card Services, which are designed for large
companies, you may obtain separate purchasing, travel or fleet Cards or a
Card combining all three functions. Detailed information regarding such
services is available in the applicable User Documentation.

     OUR OBLIGATIONS

	 	 	We will open Card Accounts upon your request which Cardholders may use to
conduct Transactions for your business. We will assume that all Transactions
made on a Card Account are authorized by you until we receive and have had a
reasonable period of time to act upon written notice from you that the
Cardholder is no longer authorized to use the Card, Convenience Checks or
the Card Account. Pursuant to your instructions, each Card Account we open
shall have one or more of the following features:

	 	•	 	travel and entertainment
	 
	 	•	 	purchasing
	 
	 	•	 	fleet/automotive

	 	 	We may also provide Convenience Checks on your request with respect to your
Card Accounts. We can also establish a Card Account for which we assign only
a Card Account number, but we do not issue a Card or Convenience Checks. If
you so request, we will provide to the Cardholder, at the address you or the
Cardholder specifies, a monthly billing statement reflecting the use of the
relevant Card Account. We may deny authorization of any Transaction if we
suspect fraudulent activity or Unauthorized Use or for any other reason.
Notwithstanding anything to the contrary in the “Limitations of Liability”
section of this Booklet, we will not be liable for any failure to authorize
a Transaction.

     YOUR OBLIGATIONS

	 	 	You shall use each Card Account solely for your business purposes.
	 
	 	 	You shall pay for each Transaction, regardless of its purpose or whether you
signed a sales draft or received a receipt, in addition to our fees and
charges.
	 
	 	 	You represent and warrant to us that each cardholder is a current employee
or agent of your company. You will promptly furnish such financial and other
information as we request for the purpose of reviewing your ability to
perform your obligations to us. You represent and warrant to us that all
such information about your employees, agents, or your company is accurate,
sufficiently complete to give us accurate knowledge of your financial
condition and in compliance with all applicable rules, regulations and laws.
	 
	 	 	You and each Cardholder will check to ensure that the information embossed
on each new Card or printed on each Convenience Check is correct, and you
will contact us immediately if there is an error.

10

 

     CHARGE LIMITS

	 	 	We will give you one total charge limit for all your Card Accounts. We will
also assign an individual charge limit for each Card Account. We may
increase or decrease the total charge limit or any individual limit at our
discretion. You agree not to incur obligations which would cause the total
charge limit for all your Card Accounts to be exceeded. If you do exceed
this limit, or if any Cardholder’s individual charge limit is exceeded, we
may deem the entire balance owing to be immediately due and payable, and/or
we may refuse any Transactions on all Card Accounts or the individual Card
Account until a payment is made to reduce the balance below the total charge
limit or the individual charge limit.

     TRANSACTIONS IN OTHER CURRENCIES

	 	 	MasterCard® or Visa® will convert to U.S. Dollars any charge made in a
currency other than U.S. Dollars at a rate determined under MasterCard or
Visa regulations, as applicable. The conversion rate may be different than
the rate in effect on the date of the Transaction. We will post to the Card
Account the converted U.S. Dollar amounts.

     DISPUTES WITH MERCHANTS AND SUPPLIERS

	 	 	We will have no liability for goods or services purchased with, or for a
merchant’s or supplier’s failure to honor purchases made with, a Card
Account, Convenience Check or Card. You agree to make a good faith effort to
resolve any dispute with a merchant or a supplier arising from a
Transaction. In a dispute with a merchant or supplier, we will be subrogated
to your rights and each Cardholder’s rights against the merchant or supplier
and you will assign (and cause the Cardholder to assign) to us the right to
assert a billing error against the merchant or supplier. You will, and will
cause the Cardholder to, do whatever is necessary to enable us to exercise
those rights. We may reverse from any Card Account any Transactions relating
to the dispute.
	 
	 	 	A merchant or supplier may seek prior authorization from us before
completing a Transaction. If you advise us in writing that you desire to
restrict Transactions to merchants falling within certain categories we
designate in our User Documentation, we will take reasonable steps to
prevent authorization of Transactions from other types of merchants. We,
however, will not be liable to you if merchants or suppliers nonetheless
accept a Card, Convenience Check or Card Account for other types of
Transactions, or if authorization for a Transaction is not given.

     CONVENIENCE CHECKS

	 	 	If we provide Convenience Checks with regard to a Card Account, they may not
be used to make payment on the Card Account. We may pay a Convenience Check
and post its amount to the Card Account regardless of any restriction on
payment, including a Convenience Check that is post-dated, that states it is
void after a certain date or that states a maximum or minimum amount for
which it may be written. Once paid, Convenience Checks will not be returned
to you or the Cardholder.
	 
	 	 	If you wish to stop payment on a Convenience Check, you must call us at the
customer service number shown on your billing statement and provide such
information as we request or is required under the relevant User
Documentation. We will stop payment if we receive your request on or before
the Business Day before the Business Day on which we would otherwise pay the
Convenience Check. The date on which we would pay a Convenience Check may be
prior to the date it would post to your Card Account. A stop payment order
will remain in effect for up to six months.

11

 

     CARDLESS ACCOUNTS; ACCOUNTS NOT IN NAME OF INDIVIDUAL

	 	 	If you use our Corporate Card Services, we may, at your request, establish a
Card Account for which no Card is issued or establish a Card Account with a
designation which is not an actual individual, including, without
limitation, designation of a vehicle identification number, license number,
department name or “Authorized Representative” on the Card Account.
Notwithstanding any other term in this Booklet, you agree to be solely
responsible for the use of any such Card Account, including, without
limitation, any Unauthorized Use, and you agree not to make any claim or
request related to any Unauthorized Use of such a Card Account.

     PAYMENT OF CARD ACCOUNTS; SECURITY INTEREST

	 	 	We will provide to the Card Administrator, or other person you designate in
writing to us, a monthly billing statement which will identify each
Transaction posted during the billing cycle and the date of the Transaction.
Unless otherwise determined by us, the official billing statement will be in
paper, not electronic, form. The billing statement will also list any
applicable fees and charges for the Services. If you have requested a Card
Account for travel and entertainment Transactions, we will provide an
additional copy of the monthly billing statement covering such use of the
relevant Commercial Card to the appropriate Cardholder at the address which
you or the Cardholder provides to us.
	 
	 	 	You will pay to us the total amount shown as due on each billing statement
on or before the due date shown on the statement. If you do not make a
payment in full by the specified due date, in addition to our other rights,
we may assess a late fee and finance charge as set forth in our schedule of
fees and charges. You have no right to defer any payment due on any Card
Account.
	 
	 	 	Unless otherwise agreed by us, payments must be made using an ACH service.
As specified by you, we may initiate ACH debits to any deposit account at
any financial institution. All payments must include the complete Card
Account number in order to be processed and for you to be credited with
making payment. If you arrange for direct payment by Cardholders, such an
arrangement will not change your responsibilities under this Booklet,
including your obligation for payment.
	 
	 	 	You grant to us a security interest and contractual right of setoff in and
to all deposits now or subsequently maintained with us or any of our
affiliates or Subsidiaries. In connection with that grant, you authorize us
to enter into a master control agreement with our affiliates authorizing,
upon the occurrence and continuance of any default, the disposition of any
such deposits to satisfy all liabilities incurred in connection with these
Services, without your further consent. The grant of this security interest
shall survive termination of these Services.

     LOST OR STOLEN CARDS; UNAUTHORIZED USE

	 	 	In the event of a possible loss or theft of a Card, Convenience Check or
Card Account or possible Unauthorized Use, you will give us notice by
telephone or telefax to the numbers set forth in the User Documentation. You
agree to give us this notice as soon as practicable but in any event within
24 hours after discovery of the known or suspected loss or theft or
Unauthorized Use. If notice as provided in this paragraph is given within
the first 24 hours and you assist us in investigating facts and
circumstances relating to the loss, theft or possible Unauthorized Use,
including without limitation obtaining an affidavit or similar written,
signed statement from the Cardholder, then you will not be liable for
Transactions resulting from Unauthorized Use. If we have issued fewer than
ten Card Accounts to you, your liability for Transactions by a person who
does not

12

 

	 	 	have actual, implied or apparent authority to use the Card or Convenience
Check and whose use does not result in a direct or indirect benefit to you
will not exceed $50 on each Card.

     LICENSE TO USE YOUR MARKS

	 	 	Upon your request, we may place your trademark, tradename, service mark
and/or designs (“Company’s Marks”) on the Cards and collateral materials.
You will provide the graphics to us in sufficient time to allow for review
and approval by us and, if necessary, the respective card association. You
grant to us a non-exclusive license to use, during the term of the Services,
Company’s Marks on the Cards and on other materials related to the Card
Accounts. Your indemnity under the “Protection from Third Parties” section
of this Booklet covers any claim that the use of any Company Marks infringes
the intellectual property right of any third party.

     EXTENSION OF CORPORATE CARD SERVICES TO AFFILIATES

	 	 	Upon your request and submission of a Participant Account form, we may
approve one or more affiliates of which you are majority owner for
participation in the Corporate Card Services. Each participating affiliate
will have the same rights and obligations as you except that no separate
charge limit will be assigned. Your charge limit will apply to Transactions
on all Card Accounts, including those of your participating affiliates.
	 
	 	 	You may terminate an affiliate’s participation by giving us written notice
and a reasonable time to act on such notice. If an approved participant is,
or will no longer be, majority-owned by you, you agree to notify us
immediately, and we may immediately terminate the Card Accounts of such
participant.

     SUPPLEMENTAL GOVERNING LAW AND RESOLUTION OF DISPUTES PROVISIONS

	 	 	Notwithstanding anything to the contrary in the Governing Law provision in
the General Provisions section of this Booklet, the Commercial and Corporate
Card Services are governed by the laws respecting national banking
associations and, to the extent not covered by those laws, by the laws of
the State of Arizona, without reference to that state’s principles of
conflicts of law, regardless of where you reside or where a Cardholder uses
a Card Account.
	 
	 	 	Notwithstanding anything to the contrary in the Resolution of Disputes
provision in the General Provisions section of this Booklet, you agree to
submit to the personal jurisdiction of any state or federal court in Arizona
and to binding arbitration in Arizona with respect to disputes regarding the
Commercial and Corporate Card Services.

     ADDITIONAL TERMINATION PROVISIONS

	 	 	We may immediately terminate these Services if there occurs (i) a
termination event set forth in the “Termination” section of this Booklet
with respect to you, a participating affiliate or a guarantor of obligations
under any Card Account, (ii) a change in your ownership, if you are a
privately-held entity, in excess of 50% or (iii) any of the following with
respect to you, a participating affiliate or a guarantor of obligations
under any Card Account:

	 	•	 	the failure to pay or perform any obligation,
liability or indebtedness to us or any of our affiliates or
subsidiaries, whether under this Booklet or any other agreement, as and
when due (whether upon demand, at maturity or by acceleration);

13

 

	 	•	 	the failure to pay or perform any other
obligation, liability or indebtedness to any other party;
	 
	 	•	 	death (if an individual) or resignation or
withdrawal of any partner or material owner (of a privately-held
entity);
	 
	 	•	 	merger or consolidation with or into another
entity;
	 
	 	•	 	the determination by us that any representation
or warranty made to any of our affiliates or subsidiaries in any
agreement is or was, when it was made, untrue or materially misleading;
	 
	 	•	 	the failure to timely deliver such financial
statements, including tax returns, other statements of condition or
other information, as we shall request from time to time;
	 
	 	•	 	the entry of a judgment which we deem to be of
a material nature;
	 
	 	•	 	the seizure or forfeiture of, or the issuance
of any writ of possession, garnishment or attachment, or any turnover
order for any property;
	 
	 	•	 	the determination by us that we are insecure
for any reason;
	 
	 	•	 	the determination by us that any such person
fails to meet credit criteria initially used by us to approve the Card
Services; or
	 
	 	•	 	the failure to comply with any law or
regulation controlling its operation.

	 	 	Upon any termination of the Card Services, (i) the entire balance
outstanding on all Card Accounts shall, at our option, become immediately
due and payable and (ii) you will immediately destroy, and will instruct all
Cardholders to immediately destroy, all Cards and Convenience Checks. Your
responsibility to pay for all Transactions regarding each Card Account will
continue until a reasonable period of time after you notify us to close the
Card Account or until you pay for all Transactions entered into before we
close the Card Account to future use, whichever occurs later. After
termination, you and all Cardholders will make no new Transactions on any
Card Account. If, however, such Transactions are made, you will be liable
for each of them.

COMMERCIAL DEPOSITS

	 	 	With our Commercial Deposits Services, you may make deposits of coin
and currency, checks and other payment instruments at one of our designated
banking centers (which may include an automated business center), depository
facilities (which may include a night depository facility), processing
centers or cash vaults. If these deposits are delivered by you or your agent
before the cutoff time specified in the applicable User Documentation, we
will give you same-day provisional credit for such deposits, subject to
later verification by us and our availability schedule. Banking center
deposits that are immediately verified are covered under your Account
Agreement.

     YOUR RESPONSIBILITIES

	 	 	You agree to prepare all deposits accurately and in good faith and to follow
the procedures for preparation, packaging and delivery of deposits as
provided in the applicable User Documentation.
	 
	 	 	For deposits made to an automated business center, you will automatically be
provided a receipt. In all other cases, in order to receive a receipt of
deposit, you must provide a duplicate deposit slip in addition to the number
of original deposit slips required by us to process the deposit. We will
stamp this duplicate deposit

14

 

	 	 	slip and return it to you. In all cases,
deposits are subject to later verification by us.

	 	 	If you use an armored carrier to transport your deposits, you must contract
separately with an armored carrier service that is acceptable to us. For
deposits made to one of our cash vaults, we may require that you use an
armored carrier. Armored carriers are your agents.

     OUR RESPONSIBILITIES

	 	 	We receive your deposit and issue provisional credit to your account for the
amount you declare on the deposit slip. The declared amount is subject to
later verification by us.
	 
	 	 	If we find an error when we verify your deposit, we will debit or credit the
amount of the error to the deposit account listed on the deposit slip,
unless you and we have agreed otherwise in writing; provided, however, we
reserve the right to set a standard adjustment amount (which we may change
from time to time), in which case we will not make a correction to a deposit
when the error is less than our current adjustment amount.
	 
	 	 	We give you same-day provisional credit for deposits delivered before the
cutoff time on a Business Day. For deposits delivered after the cutoff time
or on a non-Business Day, we give you provisional credit on the next
Business Day.

COMMERCIAL PREPAID CARD

	 	 	Our Commercial Prepaid Card Services enable you to distribute
Commercial Prepaid Cards to your employees and others that permit them
access to a predetermined amount of funds. Commercial Prepaid Cards may be
used to withdraw cash at any ATM displaying any of the logos displayed on
the Commercial Prepaid Card and to make purchases at any merchant displaying
the Visa logo. Detailed information regarding such services is available in
the applicable User Documentation.

     OUR OBLIGATIONS

	 	 	We will issue Commercial Prepaid Cards to you on your request after you have
provided us such information regarding the Commercial Prepaid Card as we may
require at that time. Before we issue each Commercial Prepaid Card, we will
debit funds from a deposit account you maintain with us for the value amount
of the Commercial Prepaid Card issued.
	 
	 	 	We will mail the Commercial Prepaid Cards to the address or addresses you
provide us, together with a copy of the agreement between us and the
Cardholder, our privacy policy for consumers (if applicable) and
instructions for activating the Commercial Prepaid Card.
	 
	 	 	We will deduct the amount of each Transaction, which may include fees added
by the ATM owner or the applicable network, from the value amount with
respect to the Commercial Prepaid Card. We will also deduct applicable
Cardholder fees.
	 
	 	 	You may request us to add value to previously issued Commercial Prepaid
Cards by providing such information as we may require at that time. Upon
receipt of your request and the required information, we will debit your
deposit account with us for the amount to be added to the existing
Commercial Prepaid Cards.
	 
	 	 	If there are insufficient Collected and Available Funds in your account, we
have no obligation to issue or activate any Commercial Prepaid Card or to
add value to any existing Commercial Prepaid Card.

15

 

    COMMERCIAL PREPAID CARD CREATION

	 	 	All Commercial Prepaid Cards shall identify us as the issuer and shall
include such other names and trademarks as we require. If you elect to
customize the Commercial Prepaid Cards, you will be responsible for any
additional costs in the design or production of the Commercial Prepaid
Cards. You will provide graphics, promotional material and wording to us for
review and approval and you must comply with all the rules of Visa USA, Inc.
and other systems or organizations, as applicable. You will allow us to use
your artwork on the Commercial Prepaid Cards, provided that you shall have
first reviewed and approved such use. You will indemnify and hold us
harmless from any and all liabilities, claims, costs, expenses and damages
of any nature (including Legal Expenses) arising from any claim that the
artwork you supplied infringes the intellectual property rights of any third
party.

    COMMERCIAL PREPAID CARD ACTIVATION

	 	 	Each Cardholder will be instructed to call a toll-free (in the U.S.A.)
number and use an interactive voice response system to authenticate the
Cardholder by using a number unique to the Cardholder in order to activate
the Commercial Prepaid Card. During this call, the Cardholder will receive
their PIN, if applicable. The Cardholder can change the PIN at that time to
any four digit number. Once the call is successfully completed, the
Commercial Prepaid Card will be activated. You will be responsible for
informing each Cardholder of any other restrictions you may impose on the
use of the Commercial Prepaid Card, and we will not have any responsibility
for enforcing those restrictions.

    COMMERCIAL PREPAID CARD USAGE

	 	 	We may refuse to issue or add value to any Commercial Prepaid Card if we
believe the Commercial Prepaid Card will or may be used in violation, or may
cause us to be in violation, of any law or regulation, or any rule of any
payment system.
	 
	 	 	We will use reasonable efforts to prevent any overdraft with respect to a
Commercial Prepaid Card or any unauthorized use of a Commercial Prepaid
Card, but cannot ensure we will be able to do so. You will reimburse us for
the amount of any overdraft or for the amount of any loss resulting from
such unauthorized use.
	 
	 	 	The value amount on any Commercial Prepaid Card does not constitute a
deposit account, is not insured by the Federal Deposit Insurance Corporation
or any other government agency, and does not accrue interest for your
benefit or the benefit of the Cardholder.

CONTROLLED BALANCE ACCOUNTS

	 	 	Our Controlled Balance Accounts Services let you control the transfer
of funds between accounts with us. These Services may be restricted to
certain account types.
	 
	 	 	Transfers you make from a U.S.-domiciled money market account using these
Services are considered preauthorized transfers, are counted toward the
number of transactions you are legally permitted each month, and may not be
made to a checking account with an overdraft credit facility.
	 
	 	 	You may instruct us to make either date-related (where available) or
balance-related (where available) transfers as described below. Once you
instruct us to transfer funds between accounts, transfers begin on a
mutually agreeable date

16

 

	 	 	or, for accounts domiciled in the United States of America, either
immediately or on the date you specify.
	 
	 	 	With a date-related transfer, funds can be transferred in either direction
between certain types of accounts on the date and in the amount you specify.
Both interstate and intrastate funds transfers are permitted as long as you
meet the requirements for the account type(s), transfer date and account
location(s). If the transfer date you specify is a non-Business Day, we make
the transfer on the next Business Day.
	 
	 	 	With a balance-related transfer, you may have funds transferred to an
account when the balance falls below a certain amount, or from an account,
when the balance rises above a certain amount, or both. We transfer the
amount required to meet the account balance you specify.
	 
	 	 	You may elect to have funds transferred to or from accounts of another
company/organization using a Service. You agree that for each such account,
the company/organization will provide us with its written authorization, in
a form acceptable to us, for such transfers. However, you do not need to
provide us such written authorization if (i) the other company’s accounts
are domiciled in the United States of America and (ii) you represent and
warrant that such other company is a U.S. Subsidiary and that it has
authorized us to transfer funds between its accounts and your accounts.

CONTROLLED DISBURSEMENT

	 	 	Our Controlled Disbursement Services provide information to you each
Business Day so that you can fund the total amount of (i) controlled
disbursement checks presented that Business Day and (ii) where the option is
available, controlled disbursement ACH debits and any other electronic
debits to which we agree and which are posted that Business Day.

    ACCOUNTS

	 	 	We make the Controlled Disbursement Services available through multiple
Controlled Disbursement Points in different parts of the United States of
America. These Points are identified on the List of Banks and Services.
Subject to our approval in each case, you may use such Service through one
or more of those Points. For each Controlled Disbursement Point you use, you
maintain one or more Deposit Accounts with us.
	 
	 	 	For certain Controlled Disbursement Points, as more fully described in the
applicable User Documentation, you may (i) draw checks bearing those
respective Points’ routing numbers directly on a Deposit Account and (ii)
where the option is available, initiate or authorize third parties to
initiate ACH debits and, subject to special agreement, other electronic
debits to the Deposit Account. (For electronic debits to a Deposit Account,
you must use the appropriate funds transfer Service approved by us.)
	 
	 	 	For a certain other Controlled Disbursement Point, we authorize you to draw
checks on accounts we maintain at such Point, then we debit your Deposit
Account(s) in the amount(s) of the checks which are paid. With these
Services, you have no account or contractual relationship with such
Controlled Disbursement Point. You will not access our accounts maintained
at such Point in any other manner, including but not limited to automatic
debit arrangements cleared through an automated clearing house network or
through wire transfers.
	 
	 	 	On each Business Day, we will inform you by the time specified in the
applicable User Documentation of the total amount of debits presented for
payment that day at or through a Controlled Disbursement Point and any other
amounts required to be deposited in the corresponding Deposit Account(s) to
cover such debits. On

17

 

	 	 	each such Business Day, prior to the time stated in the applicable User
Documentation, you must ensure that sufficient Collected and Available Funds
are on deposit in the Deposit Account(s) to cover such amounts. If we
attempt to post a debit to a Deposit Account for the amount due and
determine there are insufficient funds in the Deposit Account, we may
dishonor or instruct the pertinent Controlled Disbursement Point to dishonor
some or all of the checks then pending payment and/or, as appropriate,
return or reject any electronic debit pending settlement. We may, however,
in our sole discretion, allow an overdraft so some or all of such checks or
electronic debits will be paid or settled. If we do so, we are not obligated
to allow any such overdraft in the future.
	 
	 	 	If, for any reason, we fail to provide you timely notice of the required
funding amount for a Deposit Account, and if you fund such Deposit Account
according to the procedures (including funding amount and time) described in
the applicable User Documentation, we will post to the Deposit Account, or
instruct the Controlled Disbursement Point to post to your account, all
checks presented for payment, and electronic debits received for settlement,
that day. If the required funding amount nonetheless exceeds the amount
funded by you and you have insufficient funds in the Deposit Account to
cover the required amount, we will overdraw the Deposit Account and advance
funds to cover the excess.
	 
	 	 	If we advance our own funds, repayment is immediately due and payable, and
you will repay us on or before the next Business Day along with interest on
such funds as specified in our schedule of charges for business account
services or as otherwise agreed. If you do not, we may dishonor, or instruct
the Controlled Disbursement Point to dishonor, some or all of the checks
then pending final payment and/or, as appropriate, return or reject any
electronic debit pending settlement even if the Deposit Account has
sufficient Collected and Available Funds to cover such debits.
	 
	 	 	We may require you to maintain a specified minimum amount in any Deposit
Account for which we permit you to use automated clearing house transfers to
fund that Account.
	 
	 	 	If you use facsimile signatures on checks drawn on an account at a
Controlled Disbursement Point, your use of such signatures is subject to the
Facsimile Signatures section of this Booklet.

    STOP PAYMENTS

	 	 	You may request stop payments on checks drawn under a Controlled
Disbursement Service by following the procedures specified in the applicable
User Documentation or applicable Account Agreement. Also, you may use an
Online Stop Payment Service, which is subject to the Online Stop Payment
section of this Booklet. If you use telephone, mail or facsimile
transmission to request a stop payment, you agree that your stop payment
request is subject to the terms described in the Account Agreement for
requesting stops by telephone or mail.
	 
	 	 	If some, but not all, of the information in your stop payment request
matches a check which has been presented for payment (for example, the
Magnetic Ink Character Recognition (MICR) serial numbers match and the
dollar amounts do not match), we may contact you to request a decision on
whether or not to pay the check. If any such suspect check is not to be
paid, you must promptly instruct us not to pay, or to direct a Controlled
Disbursement Point not to pay, the suspect check. If you do not, the suspect
check may be paid.

18

 

DISBURSEMENT IMAGE

	 	 	Our Disbursement Image Services will make available to you digital
images of checks and drafts paid against specified accounts. Such images may
be made available to you by online transmission or by CD-ROMs containing
images you may access using image CD-ROM Software.
	 
	 	 	Check and draft images will be made available to you at such times as you
request and we agree. If an image of a check or draft is missing or is
illegible, we will provide you a microfilm copy upon your request. Your
request must include the account number, the check serial number, the exact
amount (dollars and cents) of the payment and the date the payment was made.
We may assess a fee for copies provided to you. We will not be liable for
failure to provide copies by a given time or for failure to provide copies
we are not reasonably able to provide.
	 
	 	 	Notwithstanding the Limitation of Liabilities section of this Booklet, we
will not be liable for damages arising under any Disbursement Image Service
in excess of the amount of the check, draft or miscellaneous debit giving
rise to your damage claim. Any such claim must include the account number,
the check serial number, the exact amount (dollars and cents) of the
payment, the date the payment was made, the name of the payee, a detailed
explanation of how the claimed loss occurred and the name, address and phone
number of the payee to whom you cannot prove payment was made.
	 
	 	 	Notwithstanding the Termination section of this Booklet, in the case of a
Disbursement Image Service using CD-ROMs, termination of such Service upon
30 days notice may not be effective earlier than the first day of the
statement period immediately following the statement period during which
such notice is given.

ELECTRONIC BILL PAYMENT CONSOLIDATION

	 	 	Our Electronic Bill Payment Consolidation Service consolidates,
reformats and delivers remittance information and other data related to
payments received from Bill Payment Service Providers for credit to your
account. Detailed information regarding the Service is available in the
applicable User Documentation.
	 
	 	 	You agree that you will authorize Bill Payment Service Providers to deliver
payments, remittance information and other related data to us for us to
provide this Service to you.
	 
	 	 	You may also elect to have information of another company/organization
reported through this Service. If you do so, you agree that you and the
other company/organization will authorize the Bill Payment Service Providers
to deliver payments, remittance information and other related data to us for
us to provide this Service to you.
	 
	 	 	Remittance information and other data related to payments will be delivered
to you in a mutually acceptable form and manner.
	 
	 	 	If you are unable to post any payments to your customers’ accounts, you must
promptly return such payments to us. You shall pay us immediately for the
amount of any returned payments which we previously credited to your
account.

ELECTRONIC DATA INTERCHANGE (EDI)

	 	 	Our EDI Services allow you to disburse funds and/or deliver
payment-related information to your receivers, electronically or by paper,
by sending payment requests or payment-related information to us as
described in the applicable User Documentation. These Services also allow
you to access payments-related

19

 

	 	 	and remittance-related information in mutually acceptable formats received
from your receivers or customers and, where available, to match specified
receivables and payables against payments.
	 
	 	 	For the web-based remittance advice delivery service, you are responsible
for enrollment of your receivers on the service. During enrollment you will
review and verify the accuracy of all enrollment information provided by
your receivers on the specified website. Upon completion of enrollment, you
authorize us to deliver the confidential passwords and identifiers to your
enrolled receiver to access the specified website. Your receiver must keep
such passwords and identifiers confidential. We will be fully protected in
relying on the correct user identification codes and passwords.

    SENDING PAYMENTS AND RELATED INFORMATION

	 	 	When you wish to pay your receivers, you transmit a data file to us,
containing instructions for your payments, in the format and by the cutoff
times specified in the applicable User Documentation. When we receive a file
from you under an EDI Service, we perform certain edits on the data,
translate it into the appropriate format and/or medium and send the data to
the payment system specified by you, except that we may use any means of
transmission, funds transfer system, clearing house or intermediary bank we
reasonably select. On the specified dates, we issue your payments in the
required formats.
	 
	 	 	You control the content of any payment-related information you send to us
and are solely responsible for the accuracy of such information. You are
solely responsible for storage of all data relating to such information so
that it can be made available to individual receivers upon request.
	 
	 	 	For the web-based remittance advice delivery service, we act as an
intermediary to make data and information available to or from you or your
enrolled trading partners reasonably promptly after receipt of such
information. We make the information available to your enrolled receivers on
the specified website within one Business Day of receipt. The information
will be available on the specified website for the time periods specified in
the applicable User Documentation. We will not alter the content of any
information that we receive from you or the trading partner. We are not
responsible for the accuracy of any of the information that we receive.
	 
	 	 	Payment requests originated via the EDI Services will be subject to the
terms and conditions for the underlying payment Services (Check Issuance,
ACH and/or Wire Transfer and International Electronic Funds Transfer) as
described in their respective sections of this Booklet.

    RECEIVING REMITIANCE INFORMATION

	 	 	Remittance information can be delivered to you in a mutually acceptable form
and manner and will be covered under the Information Reporting section of
this Booklet.

ELECTRONIC FOREIGN EXCHANGE

	 	 	Our Electronic Foreign Exchange Service allows you to initiate FX
Requests over the internet or by telephone. By accessing our website, you
can request that we provide an FX Transaction quotation, and by accepting
our quotation you can electronically enter into FX Transactions, all in
accordance with the instructions provided in the applicable User
Documentation.

20

 

    AUTHORIZED PERSONS

	 	 	Before using an Electronic Foreign Exchange Service, you give us, by
completing the applicable Application, a written list of the persons
authorized by you, including the Security Administrators, to perform certain
duties in connection with the Electronic Foreign Exchange Service.

    SECURITY PROCEDURE

	 	 	You agree to use the Security Procedure, if any, when you send us FX
Requests. The purpose of the Security Procedure is to verify the
authenticity of FX Requests delivered to us in your name and not to detect
errors in the transmission or content of the FX Requests. Each time you use
an Electronic Foreign Exchange Service, you represent and warrant that, in
view of your requirements, the Security Procedure is a satisfactory method
of verifying the authenticity of FX Requests.
	 
	 	 	You agree that we may act on FX Requests, even if they are unauthorized, if
we act in good faith and comply with the applicable Security Procedure and
any written agreement with you restricting our action on FX Requests. In
such cases, we may enforce or retain your payment to us for such FX
Requests; provided, however, we may not enforce or retain payment if you
prove that the unauthorized FX Requests were not caused by a person (i)
entrusted at any time to act for you with respect to FX Requests or the
applicable Security Procedure, (ii) who obtained access to your premises,
computer equipment or transmitting facilities or (iii) who obtained, from a
source controlled by you, information (such as keys and passwords) which
facilitated breach of the applicable Security Procedure.

    EFFECTIVENESS OF FX TRANSACTIONS

	 	 	You deliver FX Requests to us through the Service and we send you a
quotation that you can accept electronically. You must follow all system
instructions, procedures and warnings delivered to you on the website
provided for the Service. Once we receive your acceptance of our quote, we
send you our deal acknowledgment in accordance with the applicable User
Documentation, and the FX Transaction will be binding and effective. The FX
Transaction is not completed until we send this acknowledgment. You are
responsible for contacting us outside the Service if you have not received
our electronic acknowledgment within the time specified in the applicable
User Documentation (or in the absence of such specification within a
reasonable time). We will book FX Transactions at our New York office.
Notwithstanding anything to the contrary in this Booklet, we reserve the
right to withdraw the Service or terminate your access to the Service at any
time without notice.

    ACCOUNT DEBITS

	 	 	You must have Collected and Available Funds in your account which, when
added to funds which may be made available under a line of credit, are
sufficient to cover your FX Requests. You may initiate an FX Request only if
the offsetting debit to your account, including the available line of
credit, will not cause you to exceed the account balance according to your
records. If your records and ours disagree regarding the account balance,
our records will control for purposes of our processing the FX Request.
	 
	 	 	Unless you have available funds under a line of credit with us, you are
obligated to pay us the amount of any FX Request once we receive your FX
Request. We will debit the account you specify for the amount of your
payment before we process your FX Request. If, for any Business Day, we
receive more than one FX Request and/or other items payable from your
account, we may debit your

21

 

	 	 	account for such FX Requests and items in any sequence we determine in our
sole discretion.
	 
	 	 	If you have available funds under a line of credit with us, we will debit
your specified account for the amount of your payment on the settlement date
of the FX Transaction. Prior to the settlement date, you can request a
change to the specified settlement account for the FX Transaction by using
the website for the Service. We will not be obligated to implement such a
change, and the change will not be effective until we have had a reasonable
opportunity to review and act upon your request.

    REJECTION OF FX REQUESTS

	 	 	We may reject any FX Request which does not comply with the requirements of
this Booklet or the applicable User Documentation, including any processing
limits described in such User Documentation, or which we have been unable to
verify through use of the Security Procedure. We also may reject any FX
Request which exceeds the Collected and Available Funds (including funds
made available under a line of credit) on deposit with us in the applicable
account. Notice of rejection is given to you by telephone, by electronic
means, by facsimile or, in event such notice cannot be given by any of those
means, by mail. Notices of rejection will be effective when given.

    CONFIRMATIONS AND SETILEMENTS

	 	 	You agree that FX Transactions effected through the Service are
automatically confirmed and do not require any further confirmation. Foreign
exchange transactions effected by a method other than the Service may also
be confirmed on the website for the Service in accordance with the User
Documentation. Your electronic confirmation of each such foreign exchange
transaction shall have the same effect as if you had received a written
confirmation from us and had reviewed, manually signed and returned the
signed confirmation to us.

    INTERRUPTION OF COMMUNICATIONS

	 	 	In the event of a service interruption involving the Service, you may effect
FX Transactions, confirm FX Transactions, and specify settlement
instructions by contacting one of our trading rooms or operations centers by
telephone as designated in the applicable User Documentation.

INFORMATION REPORTING

	 	 	Our Information Reporting Services make certain account, transaction
and related information available to help you control and manage your
accounts and in connection with any questions raised by you via such
Services. This may include information generated from other Services you
use. You may have information reported directly to you or, with certain of
our Information Reporting Services, reported at your direction to another
financial institution or other entity. Detailed information regarding an
Information Reporting Service is available in the applicable User
Documentation.

    ACCOUNTS OF OTHER COMPANIES/ORGANIZATIONS

	 	 	You may elect to have accounts of another company/organization reported to
you with any of our Information Reporting Services. You agree that, for each
such account, the company/organization will provide us with its written
authorization, in a form acceptable to us, for us to make that company’s
account information available to you. However, you do not need to provide us
such written authorization if the other company is a U.S. Subsidiary and its
accounts

22

 

	 	 	are domiciled in the United States of America. In that case, you represent
and warrant that such other company is a U.S. Subsidiary and that it has
authorized us to make its account information available to you.

    ACCOUNTS AT OTHER BANKS

	 	 	You may also elect to have your accounts, or accounts of another
company/organization, maintained at another financial institution reported
through certain of our Information Reporting Services. If you do so, you
agree that you and the other company/organization will authorize the other
financial institution to make the reporting information available to us and
to take all other actions necessary for us to provide Information Reporting
Services to you.

    THIRD-PARTY INFORMATION

	 	 	If you gain, through your use of one or more Services, access to any
information relating to any person other than us, you or any of your
Subsidiaries which have authorized your receipt of such information, you
agree that you will treat such third-party information as strictly
confidential and you shall not disclose it to any person outside your
company or to any persons within your company except those who have a need
to know. Further, you shall ensure that adequate measures have been taken to
prevent the unauthorized use of any such third-party information. You agree
that you will not use any such third-party information for your own purposes
other than in a communication to us relating to the Service.

LOCKBOX

	 	 	Our Lockbox Services involve the processing of checks and other payment
instruments, such as drafts, that are received at a Lockbox Address or by
special arrangement with us, excluding without limitation the processing of
cash, stock certificates and tangible valuables. With a Lockbox Service, you
instruct your customers to mail checks and other payment instruments you
want to have processed under a Service to the Lockbox Address. We are not
liable to you for losses you suffer if anything other than checks or other
payment instruments are sent to the Lockbox Address. We and/or our agents
will have unrestricted and exclusive access to the mail sent to the Lockbox
Address.
	 
	 	 	If we receive any mail containing your lockbox number at our lockbox
operations location (instead of the Lockbox Address), we may handle the mail
as if it had been received at the Lockbox Address.

    PROCESSING

	 	 	We will handle checks received at the Lockbox Address according to the
applicable Account Agreement, applicable User Documentation and our
availability schedule, as if the checks were delivered by you to us for
deposit to your designated account, except as modified by this Booklet.
	 
	 	 	We will open the envelopes picked up from the Lockbox Address and remove the
contents. Checks and other documents contained in the envelopes will be
inspected and handled in the manner specified in the set-up documents for
the applicable Lockbox Address. We capture and report information related to
the lockbox processing, where available, if you have specified this option
in the set-up documents. As appropriate, we will endorse all checks we
process on your behalf and deposit them in the account you designate for the
applicable Service.
	 
	 	 	If we process an unsigned check as instructed in the set-up documents, and
the check is paid, but the account owner does not authorize payment, you
agree to indemnify us, the drawee bank (which may include us) and any
intervening

23

 

	 	 	collecting bank for any liability or expense incurred by us or such other
bank due to the payment and collection of the check.
	 
	 	 	If this option is available and if you instruct us not to process a check
bearing a handwritten or typed notation “Payment in Full” or words of
similar import on the face of the check, you understand that we have adopted
procedures designed to detect checks bearing such notations; however, we
will not be liable to you for losses you suffer if we fail to detect checks
bearing such notations.
	 
	 	 	Unless we agree otherwise, each Business Day we will prepare and send
remittance materials (images via internet, electronic file and/or paper
packages) relating to the Lockbox Address to you at the address you specify
for that Lockbox Address. The material will include, but is not limited to,
any checks not processed in accordance with the set-up documents plus
information regarding the deposit for the day. For the wholesale Lockbox
Service, the package will also include invoices and other materials received
at the Lockbox Address.

    ACCEPTABLE PAYEES

	 	 	For the Lockbox Address, you will provide to us the names of Acceptable
Payees. We will process a check only if it is made payable to an Acceptable
Payee and if the check is otherwise processable. In some jurisdictions
outside the United States, an Acceptable Payee is limited to you and limited
variations of your name. In all other jurisdictions, including the United
States, you warrant that each Acceptable Payee is either you or your
affiliate. If an Acceptable Payee is your affiliate, then you also warrant
that such Acceptable Payee has authorized checks payable to it to be
credited to the account you designate for a Lockbox Service. We may require
written authorization from any such Acceptable Payee. We may treat as an
Acceptable Payee any variation of any Acceptable Payee’s name that we deem
to be reasonable.

ONLINE STOP PAYMENT

	 	 	Our Online Stop Payment Services allow you to electronically place or
cancel a Stop Payment Request. This is in addition to your ability to make
stop payment requests in person, by telephone or in writing as described in
your Account Agreement.
	 
	 	 	A Stop Payment Request will not be effective until we review our records for
the time period specified in the applicable User Documentation, determine
that the check has not been paid during that period and respond to you with
an online status of your request of “accepted” (rather than “rejected” or
“pending”).
	 
	 	 	A Stop Payment Request terminates at the end of the period designated in the
applicable User Documentation, unless the Stop Payment Request is renewed or
canceled earlier. A Stop Payment Request is canceled automatically when the
account on which the check is drawn is closed or transferred.

    REQUESTING STOP PAYMENTS

	 	 	You will include in each Stop Payment Request the Magnetic Ink Character
Recognition (MICR) serial number and exact amount (dollars and cents) of the
check for which payment is being stopped and the account number on which the
check is drawn. You understand arid agree that we can only stop a check that
shows exactly the same MICR serial number and amount as that included in the
related Stop Payment Request since our computer system identifies a check on
the basis of the MICR serial number and the exact amount of the check.

24

 

	 	 	You will review your account statements prior to transmitting any Stop
Payment Request. You will not transmit any Stop Payment Request relating to
a check that has been shown to be paid on such statements.
	 
	 	 	In some cases, we may pay a check even if a Stop Payment Request is in
effect. For example, if one of our branches (or banking centers) or
affiliates becomes a “holder in due course” of the check that you asked us
to stop, we may still pay the check.
	 
	 	 	The procedures for placing and acknowledging Stop Payment Requests are
described in the applicable User Documentation.
	 
	 	 	If you use any Online Stop Payment Services with respect to an account
connected to a Controlled Disbursement Service, you must follow the
procedures in this section rather than the Stop Payment procedures in the
Controlled Disbursement Services section.

POSITIVE PAY

	 	 	Our Positive Pay Services allow you to identify exception items, to
request photocopies and/or electronic images of exception items and to
instruct us whether to pay or return those items. In many locations, if you
send us an issue file, your information may be made available at the teller
line. This is called “Teller Positive Pay”, which helps identify fraudulent
checks that are presented for payment at many of our banking centers. With
Teller Positive Pay, the decision whether to pay such an item may be made by
us at the teller line.
	 
	 	 	On each Business Day, we provide you a report of checks presented to us for
payment on the prior Business Day and which we have identified as exceptions
based on information you have provided to us and as more fully described in
the applicable User Documentation. Exceptions are determined by comparing
checks presented to us (either by other depository institutions or, where
applicable, for cashing at one of our banking centers) with lists of checks
issued or canceled by you which you transmit electronically to us each
Business Day by the time specified in the applicable User Documentation.
Alternatively, where available, you may choose an option under which we
report all checks presented for payment, in which case we will treat all
such checks as exception items.
	 
	 	 	On the same day we report exception items to you, you must notify us, by the
deadline specified in the applicable User Documentation, which checks you
want us to pay or which to dishonor and return. If you fail to notify us by
the deadline, we will handle the exception items in accordance with the
prescribed default procedure (which you may choose where the choice is
available). Where required, you will indicate which checks you want us to
return, having been deemed by you to be fraudulent. Our deadlines, default
procedures and procedures for acknowledging pay and return requests are
described in the applicable User Documentation. In order to assist you in
making your decision whether we should pay or return exception items, you
may request a copy of any exception item.

    AUTHORIZED PERSONS

	 	 	Before using a Positive Pay Service, you give us a written list, in a form
acceptable to us, of the persons authorized by you to perform certain duties
in connection with such Service.

25

 

    ONLINE OPTION

	 	 	You may access the daily reports of exception items via one of our online
systems. Using that system, you must then notify us which exception items to
pay or which to return.
	 
	 	 	You may request photocopies of exception items, which we will fax to you, as
more fully described in the applicable User Documentation. Where available,
you may arrange to receive and display electronic images of exception items.

    MANUAL OPTION

	 	 	We provide you a report of exception items. You must then notify us which
items to pay or which to return.

    ACKNOWLEDGMENTS

	 	 	You authorize us to return checks or to pay checks in accordance with your
instructions and the default procedure in the applicable User Documentation.
We will have no liability for payment of a check which is unauthorized or
fraudulent if (i) the check is included in a report of exception items, (ii)
you have not selected a return default for exception items and (iii) you do
not give us timely instructions to return the check.
	 
	 	 	You acknowledge that our Positive Pay Services do not preclude our standard
check processing procedures, which may cause a check to be dishonored even
if your instructions or the default procedure do not otherwise require us to
return such check.
	 
	 	 	You acknowledge that, if you have our Teller Positive Pay Service, the
decision whether to pay or not pay an item may be made by us at a banking
center.
	 
	 	 	If you decline to use a Teller Positive Pay Service offered by us or fail to
meet your applicable issue file deadlines in the User Documentation, you
also acknowledge that, as between you and us, you will bear the full loss on
checks which are drawn on your accounts with us and paid by us in good faith
if the checks are counterfeits or bear unauthorized alterations to the
amounts or unauthorized maker signatures, even if such checks would
otherwise be exception items.
	 
	 	 	You acknowledge that our Positive Pay Services are intended to be used to
identify and return checks which you suspect in good faith are fraudulent.
They are not intended to be used as a substitute for stop payment orders on
checks which are not suspected in good faith to be fraudulent. If we suspect
or deem, in our sole discretion, that you are using those Services contrary
to those intentions, we may require you to provide evidence that checks we
return pursuant to your instructions or the return default, if applicable,
were in fact fraudulent. In addition, we may hold you liable for losses we
sustain on checks which we are requested to return under these Services and
which you do not reasonably establish as fraudulent checks.
	 
	 	 	We will use reasonable efforts under the circumstances to respond promptly
to proper requests for copies of exception items if image items are
unavailable, but you acknowledge that our failure to provide copies does not
extend the deadlines by which you must notify us of your pay/no-pay
decisions.

RECLEAR

	 	 	Our Reclear Service resubmits a check or other payment instrument to
the financial institution on which it was drawn if the check or payment
instrument has been returned to us unpaid with the notation “refer to
maker”, “nonsufficient

26

 

	 	 	funds” or “uncollected funds.” Generally, we will not notify you that such
an item has been returned to us unpaid before we reclear it. If a recleared
item is returned to us a second time, we will charge your account for the
total amount of the check or payment instrument. We generally total your
returned items each day, debit your account for the total amount and then
send the returned checks and payment instructions to you. The items we send
to you serve as your notice of the nonpayments.

RE-PRESENTMENT CHECK (RCK)

	 	 	Our RCK Services allow you to collect eligible RCK checks that have
been returned for insufficient or uncollected funds, using the ACH Services
within the United States of America, as described in the applicable User
Documentation. The creation of the RCK Entries on your behalf by us using
the ACH Services will be subject to the terms and conditions of the ACH
Service section of this Booklet, including but not limited to the Security
Procedures requirements described in that section. The capitalized ACH terms
appearing in italics below are defined in the NACHA Rules.

    YOUR RESPONSIBILITIES

	 	 	You authorize us to create RCK Entries on your behalf as provided in the
User Documentation and the NACHA Rules. You are deemed to be the Originator
under the NACHA Rules, and on each day you use a Service, you represent and
warrant that (i) you have obtained all necessary authorizations from the
Receiver prior to the initiation of any corresponding ACH Entry for a RCK
and (ii) you accept as Originator all liability corresponding to the
representations and warranties we as ODFI make under the NACHA Rules
regarding RCK.
	 
	 	 	You shall pay us for the amount of any returned debit Entries (including
rejected debit Entries) or any adjustment Entries accepted by us and which
we have previously credited to your account. Such amounts shall be
immediately due and payable by you to us. Returned debit Entries appear on
your reports to the extent agreed by you and us, and you agree that we do
not need to send a separate notice of debit Entries which are returned
unpaid.

    COMPLIANCE WITH NACHA RCK RULES AND LAWS

	 	 	You agree to comply with the NACHA Rules for all Entries whether or not an
Entry is sent through the ACH network. You act as an Originator and we act
as an ODFI with respect to Entries. The NACHA Rules govern if they conflict
with this Booklet, except that the file specification requirements in the
User Documentation govern if they conflict with the NACHA Rules.
	 
	 	 	Each time you use an RCK Service (i) you warrant that you have obtained the
appropriate authorization from each Receiver and the Entries conform to the
authorization and comply with the NACHA Rules and (ii) you make the same
warranties to us as we make under Section 2.2 or any successor section of
the NACHA Rules.

TAX PAYMENTS

	 	 	Our Tax Payment Services allow you to instruct us, using a touchtone
telephone or our Software on your computer, to pay any of your taxes which
are reported or filed using the tax forms as more fully described and
specified in the applicable User Documentation. Based on your Tax Payment
Instructions, we prepare and remit your tax deposits. Each of these Services
is described in the applicable User Documentation.

27

 

    SECURITY PROCEDURE

	 	 	You agree to use the Security Procedure, if any, when you deliver Tax
Payment Instructions and, as provided in the applicable User Documentation,
cancellation requests to us. The purpose of the Security Procedure is to
verify the authenticity of Tax Payment Instructions or cancellation requests
and not to detect errors in the transmission or content of these messages.
You represent and warrant each time you use a Tax Payment Service that, in
view of your requirements, the Security Procedure is a satisfactory method
of verifying the authenticity of these messages. You agree we may act on any
Tax Payment Instructions or, as provided in the applicable User
Documentation, cancellation requests, the authenticity of which we have
verified through the use of the Security Procedure.

    CUTOFF TIMES

	 	 	You must comply with the deadlines specified in the applicable User
Documentation for initiation of Tax Payment Instructions. If a Service
allows you to send instructions to us after the cutoff time, or on a
non-Business Day, we may treat these instructions as if we received them on
the next Business Day.

    COMMUNICATION EXPENSE AND RISK

	 	 	Transmission of Tax Payment Instructions to us will be at your expense,
except that we may provide a toll-free number telephone service. If that
service is disrupted for any reason, you have the responsibility and risk of
using alternative means of communicating Tax Payment Instructions to us
accurately and in time for us to perform any Tax Payment Service.

    REQUIRED INFORMATION

	 	 	You will furnish us with all required information and authorizations at the
times, in the manner and with the content specified in the applicable User
Documentation.

    TAX FORMS AND REMITTANCES

	 	 	After we have received complete Tax Payment Instructions from you, we
prepare the related tax forms (which may be on a magnetic tape or by
electronic transmission as authorized by the Internal Revenue Service or
other tax authority, as applicable) for submission to the appropriate tax
authority.
	 
	 	 	If permitted by the input method, you may specify a settlement date in
accordance with the User Documentation. If you use a touchtone phone as your
input method, you may request a specified settlement date by calling the
designated customer representative for the applicable Tax Payment Service.
	 
	 	 	For purposes of these Services, settlement date means the date you specify
that the taxing authority’s account is to be credited. If you do not specify
a settlement date, we will pay the amount you specify on or before the tax
due date. If you specify the settlement date, payment will be made on the
settlement date.

    ACCOUNT DEBITS

	 	 	If you do not specify a settlement date, we debit your account for any tax
payment on the Business Day of transmission. If you specify a settlement
date, we generally debit your account on the settlement date unless you are
prefunding your tax payments. Prefunding means that you pay for all tax
payments by such time before the settlement date as we may specify. At our
discretion, we may at any time without notice debit your account on the
Business Day that Tax Payment Instructions are transmitted to us (or on any
other later date). If we debit the funds on the transmission date (or any
other date before the payment date), we hold the funds as a deposit
liability to you, and not as trust

28

 

	 	 	funds, until the date when we remit the funds to the appropriate tax
authority. We will not pay you interest on the funds.
	 
	 	 	We reserve the right to debit your account and to make a tax payment on your
behalf earlier than the tax due date if the information in your Tax Payment
Instruction is unclear or inadequate to permit us to determine the later due
date under the applicable Tax Payment Service or if we otherwise reasonably
decide that any delay in the payment of the tax may expose you to liability
for a tax penalty. In such case we will not be liable to you for any lost
use of funds.

    REJECTION OF INSTRUCTIONS

	 	 	We may reject your instructions during or immediately after transmission to
us if they do not comply with the requirements of this Booklet or the
applicable User Documentation or which we have been unable to verify through
use of the Security Procedure. You will be informed of any such rejection
only as specified in the applicable User Documentation, and no other notice
of rejection will be provided.
	 
	 	 	In addition, we may decline to perform any Tax Payment Service or to report
any tax, file any tax form, or pay any related tax for you, even if we have
received instructions to do so, if the tax payment and our related service
fees and charges exceed the Collected and Available Funds on deposit in your
account or your ACH processing limit. If we reject a Tax Payment Instruction
for that reason, we will promptly notify you by telephone or facsimile
transmission in which case we will not be liable to you for the tax payment,
any interest on the amount of your tax liability, or for any tax penalty
imposed on you in connection with the tax liability. You agree these means
of communication are a reasonable means of notifying you.

    CANCELLATION

	 	 	Subject to the provisions in the User Documentation, you may cancel a Tax
Payment Instruction prior to disconnection of the telephone call in the case
of an instruction initiated by touchtone telephone or prior to transmission
to us of an instruction initiated through your computer.
	 
	 	 	Thereafter, a Tax Payment Instruction may be canceled only if:

	 	•	 	The tax payment has not been remitted, credited or otherwise made
available to a tax authority;
	 
	 	•	 	A request to cancel provides sufficient information for us to effect
the request; and
	 
	 	•	 	The request is received by us by telephone or, at the option of
either you or us, in writing (including facsimile transmissions) in
time (but in no event later than the deadline specified in the
applicable User Documentation) to afford us a reasonable opportunity to
effect the request.

    OVERPAYMENTS

	 	 	If we make an overpayment of your tax liability due to our error, we will
recredit your account for the amount of the overpayment, and you agree to
take such actions as we reasonably request to obtain a refund of the
overpayment and to arrange for payment of such refund to us. In any event,
you agree to repay us for any overpayment upon the earlier of (i) your
recovery of such overpayment or (ii) the application of the related tax
credit to another of your tax payment obligations.

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    RECORDS AND NOTICE OF ERRORS

	 	 	We will provide you with statements and confirmations containing information
about your tax payments in accordance with and subject to the applicable
User Documentation.
	 
	 	 	Nothing in this Booklet relieves you of any duty imposed by law or contract
regarding the maintaining of records or from employing adequate audit,
account and review practices customarily followed by similar businesses. You
will promptly review for accuracy all records, information and statements
delivered from time to time to you by us.
	 
	 	 	You must send us written notice, with a statement of relevant facts, within
14 days after you receive the first notice or statement indicating a
discrepancy between our records and yours. If you fail to give the required
notice, we will not be liable for any loss of interest or for any
compensation for any other loss or cost relating to an unauthorized or
erroneous debit to your account or because of any other discrepancy in the
notice or account statement. You must notify us promptly by telephone,
confirmed in writing, if you learn or discover from any source other than a
notice or statement from us of information concerning an unauthorized or
erroneous debit to your account.

    SUPPLEMENTAL LIMITATION OF LIABILITIES

	 	 	For each Tax Payment Service, this section supplements the Limitation of
Liabilities section of this Booklet.
	 
	 	 	If any Tax Payment Service is interrupted for any reason and you are unable
to complete transmission of your Tax Payment Instruction to us, you will not
be relieved of your obligation to make any tax payment otherwise
contemplated to be made by such Service. We will not incur any liability if
you fail to make any required tax payment by other means in the event of
such interruption.

WIRE TRANSFER AND INTERNATIONAL ELECTRONIC FUNDS TRANSFERS

	 	 	This section applies to our U.S. domestic and worldwide wire and
internal funds transfer services and to our International Electronic Funds
Transfer Services outside the United States of America. It does not apply to
ACH Services within the United States of America, which are covered in the
“Automated Clearing House (ACH)” section of this Booklet.
	 
	 	 	Wire Transfer and International Electronic Funds Transfer Services permit
you to transfer funds electronically and, as appropriate, to transmit
related messages as more fully described in the applicable User
Documentation. These transfers are typically from your accounts with us to
other accounts at our bank, at our affiliated banks or at other eligible
banks. These transfers may also include transfers to your accounts with us
from your accounts at other banks. These transfers may be made according to
a specific request from you or according to your standing instructions
(which may include daily sweeps from your accounts at our affiliated banks
to your account with us). They also may be low-value batch payments made
according to multiple requests within a single electronic data file for
transfers to or from your accounts.

    MULTIBANK

	 	 	The Multibank Service permits you to relay through us your instructions to
another bank to wire transfer funds from one of your accounts held at that
other bank. Where feasible, we will reformat your instructions for SWIFT and
relay it by SWIFT to the appropriate bank, subject to the Business Day
schedules for us,

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	 	 	SWIFT and the paying bank. Otherwise, we will use whatever means or medium
we deem appropriate, including use of third-party facilities, to relay your
instructions to another bank.
	 
	 	 	Before using the Multibank Service, you must provide us with the account
number and bank name for each account to be debited using this Service. You
also must provide the bank holding the debit account with express, written
authorization (with a copy to us where requested) to act on instructions we
send to it under this Service. You agree that we may rely on that
authorization until we have had a reasonable opportunity to act on notice
that it has been revoked.
	 
	 	 	Multibank instructions are not payment orders to us, and we have no
obligation to execute, transmit or accept any payment orders made to us
under the Multibank Service.
	 
	 	 	We reformat and transmit your payment order to another bank, and we have no
duty to do so if your request is defective, incomplete, erroneous or
inconsistent with the terms of this Booklet. We may act on your Multibank
instructions as we reasonably consider appropriate notwithstanding any
error, omission, defect or lack of clarity in its terms and even if the
instructions appear to duplicate other Multibank requests. You agree that
your indemnity of us, as set forth in the “Protection From Third Parties”
section of this Booklet, applies to any claims by another bank based on our
sending a Multibank instruction containing any error, omission, defect or
lack of clarity.
	 
	 	 	If you wish to cancel or amend a payment order set forth in a Multibank
instruction, you must contact the bank to which the payment order is
directed and act in accordance with its procedures.
	 
	 	 	Reports on Multibank instructions which we have processed will be included
in an Information Reporting Service which you have arranged to use.

    COMPLIANCE WITH RULES AND LAWS

	 	 	You agree to comply with all applicable payment system rules, including the
national payment system rules and any other applicable laws and regulations
of the receiving country of your transaction. You also agree to comply with
the authorization and notice requirements applicable to any Request to debit
another person’s account.

    AUTHORIZED PERSONS

	 	 	Before using a Wire Transfer or International Electronic Funds Transfer
Service, you give us a written list, in a form acceptable to us, of the
persons authorized by you to perform certain duties in connection with such
Service.

    SECURITY PROCEDURE

	 	 	You agree to use a Service in accordance with the relevant Security
Procedure, if any. The purpose of the Security Procedure is to verify the
authenticity of Requests delivered to us in your name and not to detect
errors in the transmission or content of Requests. You represent and warrant
each time you use a Wire Transfer or International Electronic Funds Transfer
Service that, in view of your requirements, the Security Procedure is a
satisfactory method of verifying the authenticity of Requests.
	 
	 	 	You agree that we may act on Requests, even if they are unauthorized, if we
act in good faith and comply with the applicable Security Procedure and any
written agreement with you restricting our action on Requests. In such
cases, we may enforce or retain your payment to us for such Requests;
provided, however, we may not enforce or retain payment if you prove that
the unauthorized Requests

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	 	 	were not caused by a person (i) entrusted at any time to act for you with
respect to Requests or the applicable Security Procedure, (ii) who obtained
access to your premises, computer equipment or transmitting facilities or
(iii) who obtained, from a source controlled by you, information (such as
keys and passwords) which facilitated breach of the applicable Security
Procedure.

    ACCOUNT DEBITS

	 	 	You must have Collected and Available Funds in your account which, when
added to funds which may be made available under a line of credit, are
sufficient to cover your Requests. You may initiate a Request only if the
offsetting debit to your account, including the available line of credit,
will not cause you to exceed the account balance according to your records.
If your records and ours disagree regarding the account balance, our records
will control for purposes of our processing the Request.
	 
	 	 	You are obligated to pay us the amount of any Request once we act on, other
than to reject, your Request. At our discretion, we may at any time without
notice require payment before we process your Request. Even if we have done
so in the past, we are not obligated to process any Request without having
first been paid by you, but, if we do, the amount is immediately due and
payable without notice or demand.
	 
	 	 	Prior to initiating any wire transfer Request to debit an account of a third
party, you must provide us with documents, in a form acceptable to us,
evidencing the third party’s authorization.
	 
	 	 	You will pay us for the amount of any returned or rejected debit
transactions, or any adjustments, which we previously credited to your
account.
	 
	 	 	If, for any Business Day, we receive more than one Request and/or other
items payable from your account, we may debit your account for such Requests
and items in any sequence we determine in our sole discretion.

    ACTING ON REQUESTS

	 	 	We will use any means of transmission, funds transfer system, clearing house
or intermediary bank we reasonably select to transfer funds.
	 
	 	 	After we receive a Request by the applicable processing deadline (as
specified in the applicable User Documentation), but no later than the value
date stated in your Request (if such date is not earlier than the day such
Request is received), we will act upon such Request by making applicable
accounting entries or by transmitting payment instructions to the applicable
bank or other party. If applicable, our acting on your Request will also be
subject to the business day schedule of any of our banking centers or
affiliates holding an account to be debited or credited under a Service. We
may treat Requests we receive after a deadline as if we received them on the
next Business Day. International Electronic Funds Transfers will be deemed
received by us when we receive the complete electronic data file at the
location specified in the applicable User Documentation.

    REJECTION OF REQUESTS

	 	 	We may reject any Request which does not comply with the requirements of
this Booklet or the applicable User Documentation, including any processing
limits described in such User Documentation, or which we have been unable to
verify through use of the Security Procedure. We also may reject any Request
which exceeds the Collected and Available Funds (including funds made
available under a line of credit) on deposit with us in the applicable
account. We may also reject any Request if it may be returned for any reason
under the applicable

32

 

	 	 	national payment system rules of the receiving country of your transaction.
Notice of rejection is given to you by telephone, by electronic means, by
facsimile or by mail. Notices of rejection will be effective when given.

    CANCELLATION OR AMENDMENT

	 	 	We have no obligation to cancel or amend Requests after we receive them or
to cancel or amend any particular funds transfer requested by a standing
instruction which is in effect. If you send us a Request instructing us to
cancel or amend a prior Request and we are able to verify the authenticity
of the cancellation or amendment Request using the Security Procedure, we
will make a reasonable effort to act on that Request, but we will not be
liable if it is not effected. You agree to indemnify us against and hold us
harmless from any and all liabilities, claims, costs, expenses and damages
of any nature, including Legal Expenses, we incur in connection with your
Request to amend or cancel. Your obligations under this provision will
survive termination of these Wire Transfer and International Electronic
Funds Transfer Services.

    PROVISIONAL PAYMENTS

	 	 	Payment by us for any transaction we credit to your account is provisional
until we receive final settlement for the transaction. If final settlement
is not received, we are entitled to a refund and we may charge your account
for the amount credited. We may delay the availability of any amount
credited for a transaction if we believe that there may not be sufficient
funds in your account to cover chargeback on return of the transaction.

    INCONSISTENCY OF NAME AND NUMBER

	 	 	A beneficiary’s bank (including us when we are the beneficiary’s bank) may
make payment to a beneficiary based solely on the account or other
identifying number. We or an intermediary bank may send a Request to an
intermediary bank or beneficiary’s bank based solely on the bank identifying
number. We, any intermediary bank and any beneficiary’s banks may do so even
if the Requests include names inconsistent with the account or other
identifying number as long as the inconsistency is not known by us or such
other bank. Neither we nor any other bank has a duty to determine whether a
Request contains an inconsistent name and number.

    NOTICE OF ACCOUNT STATEMENT DISCREPANCIES

	 	 	Information concerning payments made pursuant to your Requests will be
reflected in your account statements and, in some cases, in written or
electronic advices and reports produced through one of our Information
Reporting Services. You must send us notice, in writing or by electronic
means approved by us for such purpose, with a statement of relevant facts,
promptly after you receive the first notice or statement indicating a
discrepancy between our records and yours. If you fail to give the required
notice within 14 days, we will not be liable for any loss of interest or for
any compensation for any other loss or cost relating to an unauthorized or
erroneous debit to your account or because of any other discrepancy in the
notice or account statement. You must notify us promptly by telephone,
confirmed in writing, if you learn or discover from any source other than a
statement, advice or report from us of information concerning an
unauthorized or erroneous debit to your account.

ELECTRONIC TRADE SERVICES

	 	 	Our Electronic Trade Services allow you to (i) initiate collections;
(ii) instruct us to advise you of our receipt or confirmation, or the
payment, of Export Letters of

33

 

	 	 	Credit and Advised Standby Letters of Credit received by us and naming you
as beneficiary; (iii) request full or partial transfers of your Export
Letters of Credit or full transfers of your Advised Standby Letters of
Credit; (iv) prepare documents in connection with your Export Letters of
Credit; (v) access reports on letter of credit transactions, open account
transactions, collections and banker’s acceptances; (vi) initiate open
account transactions; (vii) instruct us to advise you of our receipt of
purchase orders received by us and naming you as the supplier; and (viii)
instruct us to issue standby and import letters of credit and guarantees.
Detailed information regarding each Service is found in the applicable User
Documentation.

ADVISED STANDBY LETTERS OF CREDIT

	 	 	Our Advised Standby Letters of Credit Service allows us to advise you
by electronic transmission of (I) our receipt of any standby letter of
credit naming you as beneficiary; (ii) the status of any documents or
payments with regard to any Standby Advised Letter of Credit; (iii) our
confirmation of any such letter of credit; and (iv) any payment made
pursuant to a drawing under any such letter of credit.
	 
	 	 	You may elect to have standby advised letters of credit of a Subsidiary or
other entity reported to you with our Electronic Trade Letters of Credit
Service. You agree that the Subsidiary or other entity will provide us with
a written authorization, in a form acceptable to us, for us to make that
Subsidiary on other entity’s information available to you.
	 
	 	 	Full Transfers. You may request the transfer, without substitution of
invoices, of all of your rights as beneficiary of Advised Standby Letters of
Credit by submitting to us, for each transfer, a request providing the
following information:

	 	•	 	Standby Letter of Credit number
	 
	 	•	 	name of issuing bank
	 
	 	•	 	our advice number
	 
	 	•	 	name and address of second beneficiary’s advising bank
	 
	 	•	 	name and address of second beneficiary
	 
	 	•	 	date of application

	 	 	If we approve the transfer, we will place the appropriate endorsement on the
Advised Standby Letter of Credit and send it to the second beneficiary or
send the second beneficiary a transferred letter of credit document prepared
by us. The second beneficiary will have sole rights as beneficiary, whether
existing now or in the future, including sole rights to agree to any
amendments, including increases on extensions or other changes.
	 
	 	 	General. The Advised Standby Letter of Credit and the transfer must be
subject to UCP on ISP98, and our rights hereunder are in addition to rights
we have under UCP or ISP98, as applicable.
	 
	 	 	You must provide us the original advised Standby Letter of Credit and any
existing amendments. You understand that we may, at our sole discretion,
refuse to approve any full or partial transfer to a second beneficiary. You
acknowledge that due to conditions of the original Advised Standby Letter of
Credit, certain proprietary information may be disclosed to the second
beneficiary and/or to the applicant under the original Advised Standby
Letter of Credit. We will have no liability to you in the event of such
disclosure and, in such event, you will indemnify and hold us harmless from
all claims of third parties. You acknowledge that your rights as beneficiary
in the original Advised Standby Letter of Credit are

34

 

	 	 	irrevocably transferred to the second beneficiary(ies) who shall have sole
rights. In that connection, your approval is not required for us to honor a
discrepant presentation made by the second beneficiary.
	 
	 	 	For our transfer fee, we may debit your account(s) with us, which you may
designate subject to our reasonable approval. You also agree to pay us on
demand any expenses which may be incurred by us in connection with this
transfer.

COLLECTIONS

	 	 	Our Electronic Trade Collections Service allows you to initiate a
collection (as that term is defined in the Uniform Rules for Collections) by
delivering an instruction to a collecting bank.
	 
	 	 	The instruction will be on a form prescribed by us, but we will not have any
responsibility or liability for the terms and conditions of any instruction;
you accept all such responsibility and liability. Each collection will be
governed by the Uniform Rules for Collections. You will promptly transmit to
us a copy of the completed collection form and, upon our request, will
provide to us copies of the underlying documentation.
	 
	 	 	You represent and warrant to us as of the date you transmit the instruction
form to us that the collection is not prohibited under the foreign asset
control or other regulations of the United States of America or the
applicable laws of any other jurisdictions.
	 
	 	 	Upon our receipt of any payment of a collection, the amounts received (less
related changes, disbursements and/or expenses) will be paid to you, except
that if we are required to return any such payment received upon the
insolvency, bankruptcy or reorganization of the presenting bank or
collecting bank or other third party or for any other reason, you will repay
to us the amount paid by you together with interest thereon from the date we
returned the payment and so notified you at the rate specified by us in our
schedule of charges. Unpaid items and related documents received by us may
be returned to you by regular mail at the address specified in the
Authorization and Agreement Certification form which accompanied this
Booklet on such other address as may be notified by you in writing.

EXPORT LETTERS OF CREDIT

	 	 	Our Export Electronic Trade Letters of Credit Service allows you to
prepare export documents using electronic data captured through our
electronic advise process and allows us to advise you by electronic
transmission of (i) our receipt of any Export Letter of Credit naming you as
beneficiary, including the wording of an Export Letter of Credit so you can
prepare export documents as per the Export Letter of Credit; (ii) the status
of any documents or payments with regard to any Export Letter of Credit;
(iii) our confirmation of any such letter of credit and (iv) any payment
made pursuant to a drawing under any such letter of credit.
	 
	 	 	You may elect to have export letters of credit of a Subsidiary or other
entity reported to you with our Export Electronic Trade Letters of Credit
Service. You agree that the Subsidiary or other entity will provide us with
a written authorization, in a form acceptable to us, for us to make that
Subsidiary or other entity’s information available to you.
	 
	 	 	You may prepare shipping documents based on your Export Letter of Credit
advised details. You may then edit and locally print those documents and
courier them to us for presentation.

35

 

REQUESTS FOR TRANSFERS

Partial Transfers. You may request the partial transfer, with or without
substitution of invoices, of Export Letters of Credit by submitting to us,
for each transfer, a request providing the following information:

	 	•	 	whether the transfer is with or without substitution of invoices
	 
	 	•	 	Export Letter of Credit number
	 
	 	•	 	name of issuing bank
	 
	 	•	 	our advice number
	 
	 	•	 	name and address of second beneficiary’s advising bank
	 
	 	•	 	amount to be transferred
	 
	 	•	 	description of merchandise subject to the transfer
	 
	 	•	 	name and address of second beneficiary
	 
	 	•	 	unit price
	 
	 	•	 	expiration date of transfer Export Letter of Credit
	 
	 	•	 	latest shipment date
	 
	 	•	 	number of days after shipment within which documents must be presented
	 
	 	•	 	insurance percentage (if applicable)
	 
	 	•	 	date of application

If we approve the transfer, we will advise the second beneficiary of the
terms and conditions of the transferred credit by full text
teletransmission, mail/airmail or courier (as we deem appropriate).

With respect to all partial transfers, whether with or without substitution
of invoices, you may refuse to allow us to notify the second
beneficiary(ies) of any future amendment(s) received under the original
Export Letter of Credit.

If you elect transfer with substitution of invoices, then, on our demand,
you will deliver to us within one (1) Business Day your draft, commercial
invoice and any other required documents in compliance with the terms of the
original Export Letter of Credit. The draft and documents are in
substitution of those presented by the second beneficiary. When (i) the
documents of the second beneficiary and the substitution documents from the
first beneficiary are determined to comply with the terms of the Export
Letter of Credit or, if determined to be discrepant, are taken up by the
issuing bank and (ii) we are in receipt of funds, we will pay you in
accordance with your instructions for the amount of the difference between
your draft and the draft of the second beneficiary, less any fees due and
payable to us in connection therewith. If you fail, at our demand, to
deliver to us your drafts, invoices and other required documents as stated
above, you acknowledge our right to present invoices and other documents
received from the second beneficiary in accordance with the instructions of
the original Export Letter of Credit. You also understand that we will not
pay you the difference between the amount of the draft of the second
beneficiary and the amount authorized to be paid to you under the original
Export Letter of Credit.

Full Transfers. You may request the transfer, without substitution of
invoices, of all of your rights as beneficiary of Export Letters of Credit
by submitting to us, for each transfer, a request providing the following
information:

	 	•	 	Export Letter of Credit number

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	 	•	 	name of issuing bank
	 
	 	•	 	our advice number
	 
	 	•	 	name and address of second beneficiary’s advising bank
	 
	 	•	 	name and address of second beneficiary
	 
	 	•	 	date of application

If we approve the transfer, we will place the appropriate endorsement on the
Export Letter of Credit and send it to the second beneficiary or send the
second beneficiary a transferred letter of credit document prepared by us.
The second beneficiary will have sole rights as beneficiary, whether
existing now or in the future, including sole rights to agree to any
amendments, including increases or extensions or other changes.

General. The Export Letter of Credit and the transfer must be subject to UCP
and our rights hereunder are in addition to rights we have under UCP.

You must provide us the original Export Letter of Credit and any existing
amendments. You understand that we may, at our sole discretion, refuse to
approve any full or partial transfer to a second beneficiary. You
acknowledge that due to conditions of the original Export Letter of Credit,
certain proprietary information may be disclosed to the second beneficiary
and/or to the buyer under the original Export Letter of Credit. We will have
no liability to you in the event of such disclosure and, in such event, you
will indemnify and hold us harmless from all claims of third parties. You
acknowledge that your rights as beneficiary in the original Export Letter of
Credit (up to the amount shown in your request with respect to partial
transfers) are irrevocably transferred to the second beneficiary(ies) who
shall have sole rights (but only up to the amount shown in your request in
the case of a partial transfer). In that connection, your approval is not
required for us to honor a discrepant presentation made by the second
beneficiary.

For our transfer fee, we may debit your account(s) with us, which you may
designate subject to our reasonable approval. You also agree to pay us on
demand any expenses which may be incurred by us in connection with this
transfer.

INFORMATION REPORTING

We will make available to you, subject to the terms of the Information
Reporting section of this Booklet, reports on import, export and standby
letter of credit transactions, banker’s acceptances, collections and open
account transactions, as more fully described in the applicable User
Documentation.

OPEN ACCOUNT

Our Electronic Trade Open Account Service permits you electronically to
(i) inform us of your purchase order details, instruct us on examining
import documents for compliance with your purchase orders and instruct us to
pay the presenting party and (ii) receive notification of open account
transactions initiated through electronic means.

Purchase Orders. You will electronically transmit to us, in accordance with
applicable User Documentation, files of purchase orders you have sent to
your vendors with instructions to present documents to us. The electronic
files will be in such format(s) and transmitted through such channel(s) as
you have selected and we have approved. If you are not requesting us to
issue an import letter of credit, each transaction will be flagged as an
“open account” payment type.

37

 

When we receive import documents, we will review them according to your
purchase order terms. If and as provided by the open account payment type
selected by you, we will match the import documents against the pertinent
purchase orders housed on our electronic database in accordance with the
parameters established by you and accepted by us. We will pay the presenting
vendors as provided under the open account payment type selected by you from
the following three types:

	 	•	 	importer matching — you match the import documents against your copy
of the pertinent purchase order and instruct us how much to pay to the
presenter and when to pay;
	 
	 	•	 	bank matching — we match the import documents against our electronic
file of the pertinent purchase order, following the parameters
established by you; we then electronically inform you, indicating
whether they are compliant or non-compliant, and await your payment
instructions; and
	 
	 	•	 	auto-pay — we match the documents as described above, and, if we
determine they are compliant, make payment to the presenter, but only
if you have sufficient Collected and Available Funds in the account you
have designated for such purposes; if we determine that the documents
are non-compliant, we make payment only upon your express instructions.

Notification of Open Account Transactions. With respect to open account
notification letters, we will notify you electronically of (i) our receipt
of such notices naming you as vendor and (ii) any payments made pursuant to
drawings under such open account transactions. We will notify your vendors
by Trade Direct, fax, courier or mail as instructed by you.

STANDBY AND IMPORT LETTERS OF CREDIT

Our Electronic Trade Letters of Credit Service allows you to request
us, by electronic or fax transmission, to issue an import or standby letter
of credit or a guarantee. Each letter of credit or guarantee which we agree
to issue will be for your account or the account of another entity you
designate. Each commercial letter of credit we issue will be subject to the
UCP and, when applicable, the eUCP, and each standby letter of credit we
issue will be subject to the ISP98. As a condition to our agreement to issue
a letter of credit or guarantee, we may require you at any time to make with
us a cash deposit, which may not accrue interest or earnings credit, and to
grant us a security interest in the underlying goods and documents of title
and/or any other property or accounts as we reasonably determine as security
for your obligations to us. A letter of credit may be issued by any of our
authorized offices within or outside the United States of America. A
guarantee may be issued by any of our authorized offices outside the United
States of America.

YOUR RESPONSIBILITIES

You represent and warrant to us as of the date of issuance of each import
letter of credit and each drawing that:

	 	•	 	You or the importer has obtained all import and export licenses,
registrations, filings and approvals required by any governmental
authority for the goods and documents described in the letter of
credit.
	 
	 	•	 	The transactions underlying the letter of credit are not prohibited
under the foreign asset control or other regulations of the United
States of America or the applicable laws of any other jurisdiction.

You will obtain, or cause to be obtained, insurance covering fire and other
usual risks on all goods described in each import letter of credit issued by
us.

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You will reimburse us upon demand all monies paid by us under or in respect
of each such letter of credit or guarantee, including payments on any draft,
acceptance, order, instrument on demand drawn or presented under the letter
of credit or guarantee. You will pay us on demand interest on all amounts
paid by us or any other drawee under each letter of credit or guarantee from
the date of such payment until we receive reimbursement at a rate per annum
specified in the applicable user Documentation. You will reimburse us in the
currency in which the letter of credit or guarantee is denominated (or, at
our option, the equivalent of the denominated currency amount in U.S.
Dollars or the currency of the country in which the letter of creditor
guarantee was issued at the rate of exchange quoted by us in the city in
which the letter of credit or guarantee was issued for the sale of the
denominated currency against U.S. Dollars or such other currency on the date
on which the denominated currency amount is paid by us). Regardless of the
expiration of the letter of credit or guarantee, you will remain liable for
all such amounts until we are released from liability to all persons
entitled to draw or demand payment under the letter of creditor guarantee.

You will pay us Legal Expenses incurred by us in connection with each letter
of credit or guarantee including without limitation our defense of any
proceeding initiated by you to enjoin payment or negotiation by us of a
letter of credit or guarantee even if you are awarded such relief, provided
only that we have acted in good faith in defending such action.

If you request the issuance of a letter of credit or guarantee listing one
of your Subsidiaries or another entity as the account party, each such
request will be considered a request by you for the issuance of a letter of
credit or guarantee, and you will assume all liabilities and obligations
with respect to such letter of credit or guarantee. You represent and
warrant to us that you will derive substantial economic benefit from each
underlying transaction relating to each request for the issuance of a letter
of credit or guarantee listing your Subsidiary or another person as the
account party. Your obligations under each letter of credit or guarantee
will not be released or discharged if:

	 	•	 	We attempt to collect any payment under such letter of credit or
guarantee directly from the Subsidiary or such other entity.
	 
	 	•	 	Any bankruptcy, reorganization, insolvency, receivership, moratorium
or other such action effecting creditors generally is filed by or
against the Subsidiary or such other entity.
	 
	 	•	 	We receive payment from the Subsidiary or such other entity, but it
is subsequently rescinded or must be returned by us.

OUR RESPONSIBILITIES

If we accept your request, we will issue the import or standby letter of
credit as described in your electronic or fax transmission and pursuant to
this Booklet and the UCP (with regard to import letters of credit) and ISP98
(with regard to standby letters of credit). If we accept your request, we
will issue the guarantee as described in your electronic or fax transmission
and pursuant to this Booklet.

We will pay each commercial letter of credit pursuant to its terms, this
Booklet and the UCP. We will pay each standby letter of credit pursuant to
its terms, this Booklet and the ISP98. We will pay each guarantee pursuant
to its terms and this Booklet.

CHANGE OF LAW OR REGULATION

If, subsequent to the issuance date of a letter of credit or guarantee, we
determine that the introduction of or any change in the interpretation of
any law,

39

 

rule, regulation or guideline or the request of a central bank or other
governmental authority will increase our costs relative to our providing the
Electronic Trade Letters of Credit Service, as set forth below, then, on
demand, you will pay us additional amounts sufficient (as determined by us)
to compensate us for such increased cost. Such increased costs could
include: (i) reserve, deposit, assessment or similar requirements or (ii)
increases in capital adequacy requirements.

DEPOSIT ON TERMINATION EVENT

If there occurs an event which permits us, under the Termination section of
this Booklet, to terminate this Service immediately, you will deposit with
us, on demand and as cash security for your obligations to us, an amount
equal to the aggregate undrawn amount of the letters of credit and
guarantees issued by us in the same currency as the letter of credit or
guarantee, or, at our option, its equivalent in U.S. Dollars or the currency
of the country in which the letter of credit or guarantee was issued. You
will not withdraw any amount so deposited except to the extent such amount
exceeds the undrawn and unreimbursed amount of the letter(s) of credit and
guarantees. If the amount deposited by you under this Booklet for a letter
of credit is in a currency different than the currency in which the letter
of credit or guarantee is payable and the amount so deposited becomes less
than the value of the undrawn amount of the letter of credit or guarantee
because of any variation in rates of exchange, you will deposit with us
additional amounts in such other currency so that the total amount deposited
by you under this Booklet is not less than the equivalent value of the
undrawn amount of the letter of credit or guarantee, determined by using the
rate of exchange quoted by us on the date of our latest demand.

SUPPLEMENTAL LIMITATION OF LIABILITIES AND INDEMNIFICATION FOR ALL ELECTRONIC TRADE
SERVICES

For each Electronic Trade Service, this section supplements the
Limitation of Liability section of this Booklet.

You have sole responsibility for determining the level of security you
require and assessing the suitability of the security procedures for these
Services. We have no duty to investigate the authenticity of any
application, instruction or other communication you provide us using an
Electronic Trade Service. Also, we will have no liability to you for acting
upon any application, amendment another communication purportedly
transmitted by you, even if such application, amendment on message:

	 	•	 	Contains inaccurate or erroneous information.
	 
	 	•	 	Constitutes unauthorized or fraudulent use of an Electronic Trade Service.
	 
	 	•	 	Includes instructions to pay money or otherwise debit or credit any account.
	 
	 	•	 	Relates to the disposition of any money, securities or documents.
	 
	 	•	 	Purports to bind you to any agreement or other arrangement with us
or with other persons or to commit you to any other type of transaction
or arrangement.

We are authorized, but not obliged, to rely upon and act in accordance with
any application, instruction, consent or other communication by fax or other
electronic transmission (including without limitation any transmission by
use of our Software or the internet) received by us purporting to be a
communication on your behalf without inquiry on our part as to the source of
the transmission or the identity of the person purporting to send such
communication. We are also authorized, but not obliged, to rely upon and act
in accordance with any application, instruction,

40

 

consent another communication by telephone, purporting to be a communication
on your behalf by an authorized person designated by you.

GENERAL PROVISIONS

CHANGES TO A SERVICE

You may request us at any time to change the processing instructions
for any Service. We are not obligated to implement any requested changes
until we have had a reasonable opportunity to act upon them. In making
changes, we are entitled to rely on requests purporting to be from you. For
certain changes, we may require that your requests be in writing, in a form
and manner acceptable to us, or be from an authorized person you designate.
In addition, certain requests for changes may be subject to our approval.

We may change, add or delete any of the terms and conditions applicable to
any or all Services upon 30 days prior notice to you in writing or by
electronic means. Your continued use of or failure to terminate any Service,
after the effective date of the change, will indicate your agreement to the
change.

COMMUNICATIONS

Any written notice or other written communication to be given under the
terms of this Booklet will be addressed to the applicable address specified
on the Authorization and Agreement form you return to us, except as you or
we specify otherwise in writing in conjunction with your accounts or
particular Services. Notices are effective upon receipt, except as otherwise
provided in this Booklet or any Materials.

You agree that we may electronically monitor and/or record any telephone
communications with you in those countries which permit that practice. If
our records about any such communication are different from yours, our
records will govern.

If you choose to use unencrypted electronic mail to initiate payment
requests or other instructions or otherwise communicate with us, your use of
such electronic mail with respect to a Service will be subject to the terms
and conditions of this Booklet and will comply with the applicable User
Documentation. In addition, you agree to bear the risk that such electronic
mail may be corrupted, modified, garbled or hacked or its confidentiality
may be breached by a third party and the risk that we will rely on such
mail, which appears to be from you but which is unauthorized, and that such
reliance will result in a loss.

CONFIDENTIALITY

OUR OBLIGATION

We acknowledge that information we obtain from you in connection with any
Service we provide to you under the terms of this Booklet may be
confidential. We will maintain the confidentiality of such information in
accordance with our normal procedures for safeguarding customer information
and the policy reflected in the Bank of America Corporation Code of Ethics.

YOUR OBLIGATION

You acknowledge our claim to proprietary rights in the Materials and that
the Materials constitute our “trade secrets” or trade secrets of our
licensors or vendors. You understand that all Materials are confidential and
you will:

	 	•	 	Safeguard the Materials at all times.

41

 

	 	•	 	Establish and maintain procedures to assure the confidentiality of
the Materials and any password or code subsequently changed by you.
	 
	 	•	 	Use the Materials only for the purposes for which we provide them.
	 
	 	•	 	Notify us promptly by telephone, confirmed in writing, if any
Materials are lost or their confidentiality is compromised.

You will not, nor will you allow anyone else to, do any of the following
without our prior consent:

	 	•	 	Disclose any Materials to any person or entity, except to your
employees and agents with a need to know the Materials.
	 
	 	•	 	Make any copies, in whole or in part, of any Materials in whatever
form or medium (electronic, printed or otherwise) in which they may
exist from time to time, except as provided in the Software License
section.
	 
	 	•	 	Translate, reverse engineer, disassemble or decompile any Software
or security devices.

These confidentiality obligations continue after a Service you are using is
terminated.

You have sole responsibility for the custody, control and use of all
Materials. You agree that no individual will be allowed to initiate a
request another instruction contemplated in this Booklet or to have access
to any Materials without proper supervision and strict security controls. If
a Service requires use of user identification codes or passwords, we will be
fully protected in relying on the correct user identification codes and
passwords, as described in the relevant User Documentation.

GENERAL

This section does not limit either party’s ability to disclose information
(i) that the other party has approved by prior writing for disclosure; (ii)
that is disclosed to its professional advisors or auditors; (iii) that
becomes public other than through a breach of these confidentiality
obligations, (iv) that was in its possession or available to it from a third
party prior to its receipt of it in connection with any Service, (v) which
is obtained by it from a third party who is not known by it to be bound by a
confidentiality agreement with respect to that information, (vi) as required
or requested by any securities exchange on regulatory body to which either
party is subject or submits or (vii) as otherwise required to be disclosed
by law or by legal or governmental process.

In addition, you agree (i) that we may disclose to our offices, affiliates,
officers, employees and agents with a need to know any information we obtain
about you and (ii) that those offices, affiliates, officers, employees and
agents may disclose such information as permitted under the immediately
preceding paragraph.

You acknowledge and agree that data processing related to Services covered
by this Booklet and your associated accounts may take place in countries
other than those where you and your accounts with us are located. You
further understand that information concerning your relationship with us may
be available on our electronic data system both for information management
purposes and in order to enable you to benefit from our electronic banking
services. You understand and agree that, as a result, your banking
relationship information may be available to some of our officers outside
the country or countries where you and your accounts are located. You
authorize us to transmit your banking relationship information across
national borders, notwithstanding the banking secrecy laws of any of the
countries involved, as necessary or appropriate to provide any Services.

42

 

It is possible that in providing the Services we will transmit Personal
Data. We will only transmit Personal Data to our locations, to locations of
our affiliates or to others in order to provide the Services. We may
contract with others to provide data transmission or storage services to us.
In that case, we will require that they treat Personal Data solely in
accordance with our instructions. You agree to comply with any directions we
may give you from time to time with respect to the Personal Data.

Neither party will use the other’s name or refer to the other party directly
or indirectly in any solicitation, marketing material, advertisement, news
release or other release to any publication without receiving the other
party’s specific prior written approval for each such use or release, except
that we may use your name as a reference in service proposals if we obtain
your prior oral approval for such use.

These obligations continue after any Service you are using is terminated.

CURRENCY EXCHANGE RATES

If a Request, an Entry, a check issued under the Check Issuance
Services or a draft created under the Client-Printed Drafts Services
involves a currency other than the currency in which the relevant account is
denominated, your funds will be exchanged for such other currency at a
current rate of exchange on or before the transferor debit date, as the case
may be, in accordance with our normal procedures (including applicable User
Documentation). Currency exchange rates fluctuate over time, and you
acknowledge and accept the risks of such fluctuations: (i) in the case of
Requests, between the time you initiate a Request and the time the transfer
is either completed or is unwound due to a cancellation, amendment,
rejection or return, (ii) in the case of checks, between the time you
request us to create a check and the time we debit your account to cover
such check and/or the time we re-credit your account if the check is stopped
in accordance with the applicable stop payment procedures and (iii) in the
case of drafts, between the time you print a draft, or request us to print a
draft, and the time we transfer funds from your account to cover such draft.

FACSIMILE SIGNATURES

In some countries, businesses use a variety of techniques to produce a
facsimile signature manually or by means of a device or machine (each
generally called a facsimile signature) as a convenient method for signing
checks, documents and other items. If you choose to use a facsimile
signature, you must provide us with a specimen of each facsimile signature.

You are responsible for any withdrawal from your deposit account that bears
or reasonably appears to us to bear your facsimile signature, regardless of
by whom or by what means the signature was placed on the check. If you
choose to use a facsimile signature, you are responsible even if you have
not presented us with a specimen facsimile signature, or if the size, color
or style of the check, or the size, color or style of the facsimile
signature is different from that of the check or facsimile signature you
use. We may pay the withdrawal and debit your account for it.

You agree to compensate us for all losses, claims, damages or expenses,
including Legal Expenses, that result from our payment of a withdrawal
bearing a facsimile that reasonably resembles your facsimile signature.

You are responsible for taking security measures and implementing procedures
to prevent the forgery, theft or fraudulent or unauthorized use of your
facsimile signature.

43

 

GENERAL MATTERS

AGREEMENT

Except with respect to a click-wrap online privacy policy to which you agree
when you use a Service through Bank of America Direct®, this Booklet
constitutes and represents the entire agreement between you and us regarding
the Services we provide you anywhere in the world and supersedes and
extinguishes all prior agreements, understandings, representations,
warranties and arrangements of any nature (including requests for proposals
and other sales material), whether oral or written, between you and us
relating to any such Service (including any International Treasury Services
Terms and Conditions booklet, but excluding the current Account Agreement).
This Booklet will be controlling in the event of any conflict between it and
any relevant User Documentation, any other document or written or oral
statement (including but not limited to any Account Agreement, except as
applicable law requires otherwise), but excluding the click-wrap online
privacy policy noted above. Current User Documentation is available upon
request.

This Booklet is binding upon each of your and our respective successors and
permitted assigns. You may with our prior written consent, assign any of
your rights or duties described in this Booklet. This Booklet is not for the
benefit of any other person, and no other person has any right under this
Booklet against you or us, and nothing contained in this Booklet creates any
agency, fiduciary, joint venture or partnership relationship between you and
us.

NOTICE OF FINAL AGREEMENT. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

GENERAL OBLIGATIONS

We are responsible only for performing the Services expressly provided for
in this Booklet. We may contract with an outside vendor in providing any of
these Services.

With respect to any Service, we will provide you with assistance by
telephone at the numbers and during the hours specified by us in writing
from time to time.

You are responsible for maintaining the security of your data and ensuring
that it is adequately backed-up. We are not responsible for your loss of
your data.

ORAL INSTRUCTIONS

Except as otherwise provided in this Booklet with respect to compliance with
any applicable Security Procedure, we may rely on oral instructions from any
person who identifies himself or herself by a name which is included on a
written list from you of persons authorized to give such instructions. You
will update this list from time to time as necessary to reflect any changes
in authorized persons. Except as otherwise expressly stated in this Booklet,
we are not required to act on any instruction from any person or to give
notices to any person.

SEVERABILITY; NO WAIVER

If any provision of this Booklet or the application of any such provision to
any person or set of circumstances is determined to be invalid, unlawful,
void or unenforceable to any extent, the remainder of this Booklet, and the
application of

44

 

such provision to persons or circumstances other than those as to which it
is determined to be invalid, unlawful, void or unenforceable, are not
impaired or otherwise affected and continue to be valid and enforceable to
the fullest extent permitted by law.

No delay on failure to exercise any right or remedy under this Booklet is
deemed to be a waiver of such right or remedy. No waiver of a single breach
or default under this Booklet is a waiver of any other breach or default.
Any waiver under this Booklet must be in writing.

GOVERNING LAW

Except as otherwise expressly provided in this Booklet for a particular
Service, with respect to each Service, this Booklet is governed by and
interpreted according to (i) U.S. federal law and (U) the law of (A) the
state in the United States of America in which the account (or the principal
account, in the case of multiple accounts) associated with such Service is
located or, if there is no such state or no account associated with such
Service, (B) the State of New York, without reference to the principles of
conflicts of law of the U.S. and of such state.

If you are headquartered, or are using a Service, outside the United States
of America, and if requested by us, you must appoint an agent for service of
process in England, Hong Kong, Singapore and/on the United States of
America, and you irrevocably agree that any writ, summons, order, judgment
or other document relating to or in conjunction with any proceeding, suit or
action may be served on you in such jurisdiction.

LIMITATION OF LIABILITIES

ALL SERVICES OTHER THAN ELECTRONIC FUNDS TRANSFER SERVICES

We are liable to you only for actual damages incurred as a direct result of
our failure to exercise reasonable care in providing a Service.

ELECTRONIC FUNDS TRANSFER SERVICES

For Requests and Entries which are subject to UCC 4A, we are liable only for
damages required to be paid under UCC 4A or the Fedwire Regulation, as
applicable, except as otherwise agreed in this Booklet.

For all Requests and Entries not subject to UCC4A and for all other
obligations under the Electronic Funds Transfer Services sections, our
liability is limited to actual damages, resulting directly from our willful
misconduct or our failure to exercise reasonable care, not exceeding the
following, as applicable: (i) in case of an excessive debit to your account,
the amount of the excess plus compensation equivalent to interest; (ii) in
case of payment to an account not specified by you, the amount of the
payment plus compensation equivalent to interest; (iii) in case of any delay
in crediting a debit Entry or DTC to your account, the amount of
compensation equivalent to interest for the period of delay; or (iv) in all
other cases, the actual damages incurred by you. You will use reasonable
efforts to assist us in recovering the amount of any overpayment for which
we are liable.

If we are obligated to pay interest compensation, we will pay such
compensation or credit your account, as we determine, upon your written
request. We calculate compensation for the relevant period as specified in
the Account Agreement or as advised by your customer services
representative.

45

 

If you transmit a Request to us by way of a funds-transfer system or other
third-party communications system not specifically required by us, the
system is deemed to be your agent for that purpose. We are not liable to you
for any discrepancy between the terms you transmit to such system and the
terms it then transmits to us.

ALL SERVICES

In no event will we be liable for any indirect, consequential or punitive
loss, damage, cost or expense of any nature or any economic loss or damage,
expense and loss of business, profits or revenue, goodwill and anticipated
savings, loss of or corruption to your data, loss of operation time or loss
of contracts, even if advised of the possibility of such loss, damage, cost
or expense.

We will not be responsible for the acts or omissions of you on your
officers, employees or agents (including but not limited to the amount,
accuracy, timeliness or authorization of any instructions on information
from you) or the acts or omissions of any other person or entity, including
but not limited to any clearing house association or processor, any U.S.
Federal Reserve Bank or any other country’s central bank, any other
financial institution or any Supplier, and no such person or entity will be
deemed our agent.

If you permit any Subsidiary or other person to access one of our Service
installations on your premises through use of a remote access software
package, we will not be responsible or liable for such Subsidiary or
person’s use or misuse of our Services or access to accounts owned by you
and for which you did not authorize that Subsidiary or person to have access
via your installation. We may and will treat all instructions and
information received by us through this arrangement as provided by and for
the benefit of you and subject to all our rights under this Booklet with
respect to the pertinent Services.

We will not be liable for and will be excused from any failure or delay in
performing our obligations for any Service if such failure or delay is
caused by circumstances beyond our control, including any natural disaster
(such as earthquakes or floods), emergency conditions (such as war, riot,
fire, theft or labor dispute), legal constraint or governmental action or
inaction, breakdown or failure of equipment, breakdown of any Supplier, or
your act, omission, negligence or fault.

We also will not be liable for any failure to act on our part if we
reasonably believed that our action would have violated any law, rule or
regulation.

OVERDRAFTS

With respect to a Service, we may, at our sole discretion, allow an
overdraft to occur in your account. Except as we agree or advise you
otherwise in writing, you must repay us immediately, without demand, the
amount of such overdraft plus any overdraft charges. In such cases, the fact
that we previously allowed an overdraft to occur does not obligate us to do
so in the future. Additional terms and conditions contained in your Account
Agreement may apply.

PAYMENT FOR SERVICES

You must maintain and designate account(s) with us which we will use
for debiting or crediting with respect to all payments and deposits and
related adjustments and charges. Except as otherwise provided, you must have
Collected and Available Funds on deposit in your account(s) sufficient to
cover such obligations. For purposes of satisfying your payment obligations,
we may consider any overdraft line of credit another arrangement you have
with us.

46

 

SERVICE CHARGES

You will pay us for each Service you use according to our schedule of
charges currently in effect for you, except as we agree otherwise (in
writing) from time to time. At your request, we will provide you a copy of
the current schedule of charges for the applicable Service. All charges are
subject to change upon 30 days prior written notice to you (unless otherwise
agreed in writing), except that any increase in changes to offset any
increase in fees charged to us by any Supplier for services used in
delivering any Service may become effective in less than 30 days.

You will pay us for Software support in excess of that contemplated in the
General Provisions sections of this Booklet. The charges for such extra
support will be as specified by us before such charges are incurred or as
otherwise agreed by you and us from time to time.

We will, on a monthly basis, debit your account with us for payment of
charges due, unless you arrange another payment procedure acceptable to us.

TAXES

All Service changes are exclusive of sales, value-added and use taxes, stamp
and other duties and other governmental charges imposed on any Service or
Materials and not based on our net income. Such taxes, duties and charges
are payable by you.

PROTECTION FROM THIRD PARTIES

You will indemnify us against and hold us harmless from and defend us
against any and all liabilities, claims, costs, expenses and damages of any
nature (including Legal Expenses) arising out of or relating to disputes or
legal actions by parties other than you and us concerning any Service. The
obligations contained in the preceding sentence will continue after a
Service you are using is terminated. This section does not apply to any cost
or damage attributable to our gross negligence or intentional misconduct.

REPRESENTATIONS AND WARRANTIES

On and as of each day we provide any Service to you, you represent and
warrant to us that:

	 	•	 	Your agreement to each provision contained in this Booklet is a duly
authorized, legal, valid, binding and enforceable obligation;
	 
	 	•	 	The debiting of any account as provided in this Booklet is not
inconsistent with any restriction on the use of that account;
	 
	 	•	 	All approvals and authorizations required to permit the execution
and delivery of the Agreement and Authorization form and any other
necessary documentation, and the performance and consummation by you of
the transactions contemplated under each Service, have been obtained,
including but not limited to due authorization from each applicable
third party to allow you to transfer funds and access information from
such party’s account;
	 
	 	•	 	Your performance of your obligations will not violate any law,
regulation, judgment, decree or order applicable to you; and
	 
	 	•	 	There is no lawsuit, tax claim or other dispute pending or
threatened against you which, if lost, would impair your financial
condition or ability to pay us under the terms of this Booklet.

47

 

RESOLUTION OF DISPUTES

We try to resolve our clients’ Service problems or disputes as quickly
as possible. In most cases, we can resolve a problem by telephone.

Any dispute or controversy concerning your use of Services described in this
Booklet will be decided by binding arbitration conducted in the United
States of America (except as you and we expressly agree otherwise) in
accordance with the United States Arbitration Act (Title 9, U.S. Code) under
the Commercial Arbitration Rules of the American Arbitration Association.
Under these procedures, the dispute is submitted to a neutral person for
determination in place of a trial before a judge or jury. Judgment upon the
award made by the arbitrator may be entered in any court having
jurisdiction.

Without regard to the foregoing, any dispute or controversy that arises from
an Electronic Funds Transfer Service will be decided by a judge without a
jury in a United States of America federal or state court (except as you and
we expressly agree otherwise in writing). This means that in these instances
you waive any right to a trial by jury in any action or proceeding and agree
that such action or proceeding will be tried before a judge without a jury.

Either you or we may exercise self-help remedies or obtain provisional or
ancillary remedies from a court. You or we may exercise or obtain these
remedies at any time, even while the arbitration or trial by a judge is
pending. By exercising or obtaining any such remedies, neither you nor we
waive the right to request that a dispute or controversy be decided by
arbitration or trial by a judge.

SOFTWARE LICENSE

This section applies to all Software we provide to you after you return
the Agreement and Authorization form unless we provide you a separate
license agreement for specific Software (including a “click-wrap” Software
license you may obtain from us by downloading from our website and
including, in the case of the Commercial and Corporate Card Services, the
licenses for Visa InfoSpan, MasterCard SmartData and any other third-party
Software we provide you in connection with such Services). Notwithstanding
anything to the contrary in the “General Provisions” section of this
Booklet, the software licenses granted to you under this Software License
section are governed by and interpreted according to the laws of the State
of California without reference to its principles of conflicts of law.

LICENSE

For each Software application we provide to you for one or more Services, we
grant you a non-exclusive, non-transferable license for the use of that
Software and its related Materials. Each license is granted solely for use
in object code form only in connection with one or more Services. You may
use the Software only in accordance with the applicable User Documentation.

The Software, its source code, the related Materials and all copyright,
patent, trademark, trade secret and other rights in them are and will remain
the exclusive property of us or our licensors. You will secure and protect
the Software (including all copies) in a manner consistent with the
maintenance of our rights and those of our licensors. In order to protect
those rights, you will reproduce and incorporate copyright notices and all
other proprietary legends prescribed by us in any permitted copies. You may
not remove, obscure or otherwise tamper with or alter any such notices or
legends affixed to or otherwise contained in the Software or related
Materials or copies. You will also take appropriate action to instruct and
obligate your representatives who are permitted access to the

48

 

Software (including copies) to comply with your obligations to protect the
Software.

We are obligated to provide you only with those updates, upgrades or new
releases of Software which we make generally available to our other
customers who license the same Software. Any corrections, updates, upgrades
or new releases that we provide to you must be installed by you promptly or
by such later time as we specify, and will be deemed part of the Software
upon delivery to you. We will provide support only for the most current
version of Software we have provided to you.

You will, at your expense, cause a computer to be installed and kept in good
condition and working order at your site for use of the Software. The
computer and its components must be equipment which is acceptable as
specified by us from time to time.

We may assist you with the installation of Software on your computer and
with the training of persons who will use the Software, but we will not bear
any responsibility for the proper installation and use of the Software.
Except as you and we may agree otherwise, you will be deemed to have
accepted the Software upon its installation and upon our having made such
training available to you.

You may not (i) sell, assign, transfer, license, sublicense or publish the
Software or copies of the Software or (ii) disclose, display or otherwise
make available the Software or copies thereof to third parties without our
express approval.

You may not copy, or allow anyone else to copy, the Software or related
Materials, except that you may make two copies for backup and archival
purposes. You may not electronically distribute, or allow anyone else to
electronically distribute, Software except from the network server on which
it is installed to workstations on that network.

You will provide us notice, in writing or by electronic means approved by us
for such purpose, each time you make a permitted copy of Software (except
for backup or archival copies) or electronically distribute it to a
workstation, indicating the location and date of the copy or distribution.
We may audit your site to confirm compliance with this Software License
section if you fail to make the reports called for or if we reasonably
believe you are using unauthorized copies of Software.

You may not alter, repair, modify or adapt any Software or related
Materials, including, but not limited to, translating, reverse engineering,
decompiling, disassembling or creating derivative works from it.

You agree to inform our client support unit of all errors, difficulties or
other problems with the Software of which you become aware. We will make
reasonable efforts to fix or provide workarounds for material reported
errors and to provide you with support and consultation concerning the
Software. The reasonable effort, support and consultation will be such as
we, in our sole discretion, determine. You will cooperate with us in the
expeditious resolution of such errors, difficulties or other problems by
providing us, on request, a listing of input, output and all other data
which we may reasonably request in order to reproduce operating conditions
similar to those present when such errors, difficulties or other problems
were discovered.

You may move the Software to another computer replacing the one on which the
Software was originally installed onto another site, but only after you give
us notice, in writing or by electronic means approved by us for such
purpose, specifying the new computer and site. We will have reasonable
access to Software while it is at your site to provide assistance or to
verify the status or location of Software.

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A license to Software and related Materials will terminate automatically if
you breach a material term of the license or if the Services for which you
are using the Software are terminated. In addition, in the event of a breach
of your confidentiality obligations with respect to the Software, we may
seek any remedy provided by law or equity.

LIMITED WARRANTY/DISCLAIMERS

You acknowledge that the Software has not been produced to meet your
specific requirements and has not been tested in every possible combination
and operating environment. You are responsible for satisfying yourself that
the Software is satisfactory for your purposes.

You further understand and agree that we make no representation concerning
the completeness, accuracy, operation or performance of the Software or its
compatibility with any hardware. You acknowledge that the operation of the
Software may not be uninterrupted or error-free.

We warrant that the Software will substantially conform to the documentation
provided with the Software for a period of 60 days after delivery to you
provided that: (i) the Software is used by you in strict compliance with the
terms of this Booklet and the related Materials, (ii) the Software is not
modified in any way by you and (iii) you promptly notify us and reproduce
for us any defects, errors or bugs in the Software. We will use reasonable
efforts to correct or work around any Software errors reported by you or, at
our discretion, but in any event if our efforts are unavailing, we will
accept return of the Software and refund any license fees paid by you.

You agree that the foregoing is your sole and exclusive remedy for breach of
warranty and our sole obligation in connection with the performance or
operation of the Software and related Materials.

Except as specifically stated above and in the Infringement Indemnity
subsection below and notwithstanding any other provision in this Booklet or
otherwise, we make no representation or warranty, express or implied,
written or oral, and, to the full extent permitted by law, disclaim all
other warranties including, but not limited to, the implied warranties of
merchantability or fitness for a particular purpose, regarding the Software,
the related Materials and all other property, services or rights covered by
this Booklet.

To the extent permitted by applicable law, and except as otherwise provided
in this section, we will not be liable for damages of any kind arising out
of the use of, or inability to use, the Software or accompanying
documentation.

You agree that the United Nations Convention on Contracts for the
International Sales of Goods will not apply to our provision to you or your
use of any Software.

Neither you nor we limit or exclude our liability to the other for death,
personal injury, willful misrepresentation, willful default or fraud.

INFRINGEMENT INDEMNITY

Notwithstanding your indemnity of us in the “Protection From Third Parties”
section of this Booklet, we will defend at our own expense or settle any
action brought against you to the extent it is based on a claim that your
use of the Software and/or Materials provided by us to you pursuant to this
Booklet infringes any Berne Convention country copyright or any United
States of America or United Kingdom patent, trade secret or trademark of any
third party, and we will pay all costs and damages finally awarded in any
such action.

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Our obligation is subject to (i) prompt notice from you of any such claim or
action, (ii) your not having made any admission of liability or agreed to
any settlement or compromise, (iii) your providing to us, in a prompt and
timely manner, the documents, information and assistance we reasonably
request, (iv) our having sole control of defending such claim or action, (v)
your having used the current version of the Software and Materials, as
provided to you by us, in compliance with the terms of this Booklet and the
related Materials and (vi) our obligations under this indemnity being our
only obligations to you with respect to any infringement claim in connection
with your use of the Software.

EXPORT CONTROLS

You understand and acknowledge that our obligations to provide the Software,
technical assistance, any media in which any of the foregoing is contained,
training and related technical data (collectively “Data”) will be subject in
all respects to all applicable laws and regulations as shall from time to
time govern the export on diversion of certain products and technology to
and from certain countries. You warrant and agree that you will comply in
all respects with the export and reexport restrictions applicable to the
Data shipped to you and will otherwise comply with all applicable laws and
regulations governing export and diversion of the Software and technical
data in effect from time to time.

SUPPLEMENTAL IMAGE CD-ROM SOFTWARE LICENSE PROVISIONS

This subsection supplements this Software License section with respect to
Software we provide you for the Disbursement Image Service under which we
provide you with CD-ROMs and shall control in the event of conflict between
it and the balance of the Software License section.

We warrant for a period of 45 days after the CD-ROM creation date appearing
on the CD-ROM that such CD-ROM itself will be free of defects in material
and workmanship. If we provide you a CD-ROM which contains a media defect or
is unreadable in its entirety, you must notify us within the 45-day period.

Our disclaimer of warranties in this Software License section applies to
CD-ROMs as well as to the Software and related Materials.

You may not electronically distribute the Image CD-ROM Software to any
workstation other than the one for which such Software is originally
installed on your site.

Notwithstanding anything to the contrary in the Termination section of this
Booklet, if a Disbursement Image Service under which we provide you with
CD-ROMs is terminated for a reason other than your breach of this Software
License section, you may continue to use the Software for such Service after
termination of such Service for six months, or for such longer period as we
approve, subject to the terms of this Software License section or such other
software license agreement as we, at our election, require you to sign for
this purpose. At the end of such six-month or longer period, the license for
your use of the Software for such Disbursement Image Service will then
terminate automatically.

SUPPLEMENTAL IMAGE (POSITIVE PAY) SOFTWARE LICENSE PROVISIONS

This subsection supplements this Software License section with respect to
Software we provide you for the Image Positive Pay Service and shall control
in the event of conflict between it and the balance of the Software License
section.

You may not electronically distribute the CCR (C Compression Routines)
Software for Windows 3.1 provided to you in connection with the Image
Positive

51

 

Pay Service to any workstation other than the one for which such Software is
originally installed on your site.

TERMINATION

Either you or we may terminate any or all Services upon 30 (60 in the
case of Corporate Card Services) calendar days prior written notice to the
other party. Notwithstanding the foregoing sentence, we may terminate any or
all Services effective immediately, and we will send you notice of the
termination, if any of the following occurs:

	 	•	 	You breach any of the terms and conditions in this Booklet or any
other agreement with us;
	 
	 	•	 	You terminate, liquidate or dissolve your business or dispose of a
substantial portion of your assets;
	 
	 	•	 	You fail generally to pay your debts as they become due;
	 
	 	•	 	You, voluntarily or involuntarily, become the subject of any
bankruptcy, insolvency, reorganization or other similar proceeding;
	 
	 	•	 	You initiate any composition with your creditors;
	 
	 	•	 	You experience a material adverse change in your financial condition
or your ability to perform your obligations under the terms and
conditions in this Booklet; or
	 
	 	•	 	Any guaranty of your obligations to us terminates, is revoked or its
validity is contested by the guarantor, or any of the events set forth
in the above five bullet points attributable to you occur to the
guarantor.

If a Service you are using is terminated for any reason, you will do the
following:

	 	•	 	Erase or delete any Software we have provided relating to the
terminated Service to the extent it is stored in your computers; and
	 
	 	•	 	At our option, either return to us or destroy all Materials relating
to the terminated Service and certify to us that you have done so.

These obligations will continue after a Service you are using has been
terminated.

Termination of a Service you use does not affect your payment obligations
for services we provide to you before the Service is terminated, and any
such termination is in addition to our other rights under applicable law and
under the terms of this Booklet. Also, termination of any Service you use
does not release you or us from any of our respective obligations which
arose or became effective before such termination. Upon termination, all
amounts owed by you and outstanding will become immediately due and payable.

52

 

GLOSSARY OF TERMS

The following are some important terms that appear in this Booklet.

Acceptable Payee. Your name and any other payee name you provide to us as an acceptable payee for
checks to be processed under the Lockbox Service.

Account Agreement. The current signature card, International Account Agreement or SAOTC and the
publication(s), as amended from time to time, we provide you containing terms and conditions
applicable to each deposit, savings or current account for which you use a Service.

Bill Payment Service Provider. Any entity, which may include us, you authorize to deliver payments,
remittance information and other related data from your customers to us for the Electronic Bill
Payment Consolidation Service.

Business Day. Each day on which the bank or bank office providing or facilitating a Service is open
for business related to that Service.

Card. Each plastic charge card which we issue for your Card Account under our Commercial or
Corporate Card Services.

Card Account. Each MasterCard or Visa account which we issue to you or to a Cardholder under our
Commercial or Corporate Card Services, including an account for which only an account number and no
Card is provided.

Cash Advance. Use of a Card Account to obtain cash from a participating financial institution,
merchant or ATM, to write a Convenience Check or to obtain items readily convertible into cash,
such as money orders, travelers checks, foreign currency, lottery tickets, casino chips and
race-track wagers.

Card Administrator. One or more individuals designated by you in writing, as our primary contact
for the Card Accounts, who is authorized to take actions necessary or appropriate to maintain the
Card Accounts, including without limitation designating persons to receive Card Accounts, receiving
communications from us related to the Card Accounts, requesting the closure of Card Accounts and
otherwise communicating with us with respect to the Card Accounts.

Cardholder. Your employee or any other person who you designate in writing and who we approve to
receive a Card Account or a Commercially Prepaid Card. If you or a Cardholder makes a Commercial
Prepaid Card, a Card Account number or Convenience Check available to another party, that person
will also be considered a Cardholder.

Check Issuance Request. Using the Check Issuance Service, a message transmitted from you to us
requesting us to issue a check on your behalf drawn on either accounts you maintain with us or
accounts designated and owned by us.

Collected and Available Funds. Funds in an account equal to the ledger balance minus float which,
in our reasonable determination, are not subject to a hold, dispute or legal process preventing
their withdrawal.

Commercial Prepaid Card. A pre-paid magnetic strip-based plastic card issue by us for a
Cardholder’s purchase of goods on services or for cash withdrawals.

Controlled Disbursement Point. Each bank office designated by us through which checks issued under
the Controlled Disbursement Service will be cleared or routed.

Convenience Check. A check which we may provide to you to draw on a Card Account.

Deposit Account. One or more demand deposit accounts maintained by you with us and used in
connection with our Controlled Disbursement Service.

Depository Transfer Checks (DTCs). Depository transfer checks and preauthorized checks to debit
Receivers’ accounts to accomplish the same purpose as debit Entries. (Receiver is defined in the
NACHA Rules.)

53

 

Effective Entry Date. The date specified, in accordance with the NACHA Rules, on the Entry by the
Originator on which the Originator intends the Entry to be settled. (Originator is defined in the
NACHA Rules.)

Electronic Funds Transfer Services. ACH Services, International Electronic Funds Transfer Services
and Wire Transfer Services.

Entries. Entries has the meaning provided in the NACHA Rules and also includes any data for Entries
and any prenotification.

eUCP. The rules for electronic presentation of documents under the UCP.

Fedwire. The funds transfer system owned and operated by the Federal Reserve Banks of the United
States of America, but excludes the system for making automated clearing house transfers.

Fedwire Regulations. Subpart B of Regulation J of the Board of Governors of the Federal Reserve
System of the United States of America, as amended from time to time.

FX Transaction. A transaction between you and us, permitted under the Electronic Foreign Exchange
Service, for the purchase of one currency in exchange for the sale of another currency (including
without limitation any foreign exchange spot, swap or outright forward transaction or option),
including any transaction that effects the pro-delivery, extension, rollover or splitting of such a
transaction.

FX Request. A request by means permitted under the Electronic Foreign Exchange Service to enter
into an FX Transaction.

International Account Agreement. A form of Account Agreement used in some countries.

International Electronic Funds Transfer Services. Electronic payment services for transfers to or
from your account outside the United States of America or to or from your account in the United
States of America to or from an account in a different country. These services include low-value
batch payments made according to multiple requests within a single electronic data file.
International Electronic Funds Transfer Services exclude ACH Services within the United States of
America and exclude Wire Transfer services.

ISP98. The “International Standby Practices 1998” developed by the Institute of International
Banking Law & Practice and endorsed and published by the International Chamber of Commerce or such
later revision as may be adopted and be in effect on the date the subject standby letter of credit
is issued.

Legal Expenses. Reasonable lawyer’s fees, allocated costs of staff counsel (unless prohibited by
applicable law), fees and expenses of litigation and any other fees and expenses incurred in
enforcing any provision of this Booklet.

Lockbox Address. The post office address we assign to you or we accept from you for the Lockbox
Service.

Materials. The Software, user identification codes, passwords, codes, keys, test keys, security
devices, embedded algorithms, digital signatures and certificates, other similar devices and
information, User Documentation and related documentation we provide to you.

NACHA Rules. The rules of the National Automated Clearing House Association (including any other
clearing house rules applicable to automated clearing house transactions), as amended from time to
time.

Payment Advice. Using the Client-Printed Drafts Services, an electronic message transmitted by you
to us advising us that you have created a draft.

Personal Data. Information we receive from you in connection with the Services consisting of an
individual’s bank accounts or other financial data or identifying a living individual.

PIN. A personal identification number which a Cardholder may receive when activating a Commercial
Prepaid Card.

RCK. A “Re-Presented Check Entry” as defined in the NACHA Rules.

54

 

Request. A request by means permitted under the relevant Wire Transferor International Electronic
Funds Transfer Service to transfer funds to or from a specified account or beneficiary (including
standing instructions) or to amend or cancel a prior request to transfer funds.

Reversal/Deletion Request. A request for a Reversal or a request to delete a previously delivered
Entry.

Reversals. Data for reversing Entries.

SAOTC. Each form of Standard Account Opening Terms and Conditions used in certain countries as an
Account Agreement.

Security Procedure. Unless we agree otherwise with you, the applicable security procedure described
in the Materials for your data delivery type or Service for verifying the authenticity of Entries,
Requests, Reversal/Deletion Requests, Payment Advices, Check Issuance Requests, Stop Payment
Requests, FX Requests or Tax Payment Instructions.

Service. With respect to a Bank of America Corporation subsidiary bank, a treasury management
service provided in a specific Bank location and covered by this Booklet.

Software. The programs and data files provided by us for use on a computer in connection with one
or more particular Services.

Stop Payment Request. A message you send us using the Online Stop Payment Services, the Check
Issuance Services or the Client-Printed Drafts Services to request that payment be stopped on a
check or draft which, in the case of the Online Stop Payment Services, must be drawn on an eligible
account you have with us.

Subsidiary. Any entity in which more than 50% of the ownership interest is owned, directly or
indirectly, by you. The term “Subsidiary” does not include affiliates or other entities in which
50% or less of the ownership interest is owned, directly or indirectly, by you.

Supplier. Any private or common carrier communication or transmission facility, any time-sharing
supplier or any mail or courier service.

SWIFT. The international electronic message-transfer service known as the Society for Worldwide
Interbank Financial Telecommunication.

Tax Payment Instruction. An instruction by means permitted under the relevant Tax Payment Service
to pay any taxes using any of the tax forms specified in the applicable User Documentation.

Transaction. The purchase or reservation of goods or services or a cash advance made or facilitated
by use of a Stored Value Card, a Commercial Card, Convenience Check or Card Account.

UCC 4A. Article 4A of the Uniform Commercial Code — Funds Transfers, as adopted by the state in
the United States of America whose law applies to a Service, as amended from time to time.

UCP. The Uniform Customs and Practices for Documentary Credits, 1993 Revision, ICC Publication No.
500 or such later revision as may be adopted by the International Chamber of Commerce and be in
effect on the date the subject letter of credit is issued.

Unauthorized Use. Use of a Card Account, Card or Convenience Card by a person (i) who is not your
Cardholder, employee or agent, (ii) who does not have actual, implied or apparent authority to use
the Card Account and (iii) whose use does not benefit you directly or indirectly.

Uniform Rules for Collections. The Uniform Rules for Collections, ICC Publication No. 522, or such
later revision as may be adopted by the International Chamber of Commerce and be applicable to a
collection.

User Documentation. Any written information we provide you, including information in electronic
format, as amended from time to time, which contains detailed instructions regarding the use of a
Service, as provided by a particular banking center or office. User Documentation may vary from one
jurisdiction to another. Current User Documentation is available upon your request.

55

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