Document:

EX-10.1

 

Exhibit 10.1

 

Collateral Agreement

among

WACHOVIA CORPORATION,

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Collateral Agent, Custodial Agent,

Securities Intermediary and Securities Registrar

and

WACHOVIA CAPITAL TRUST III,

acting through U.S. Bank National Association,

as Property Trustee

Dated as of February 1, 2006

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I

	 
	 	 	 	 
	Definitions

	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	Pledge

	 
	 	 	 	 
	Section 2.01 Pledge
	 	 	7	 
	Section 2.02 Control
	 	 	7	 
	Section 2.03 Termination
	 	 	7	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	Control

	 
	 	 	 	 
	Section 3.01 Establishment of Collateral Account
	 	 	7	 
	Section 3.02 Treatment as Financial Assets
	 	 	8	 
	Section 3.03 Sole Control by Collateral Agent
	 	 	8	 
	Section 3.04 Securities Intermediary’s Location
	 	 	8	 
	Section 3.05 No Other Claims
	 	 	9	 
	Section 3.06 Investment and Release
	 	 	9	 
	Section 3.07 No Other Agreements
	 	 	9	 
	Section 3.08 Powers Coupled with an Interest
	 	 	9	 
	Section 3.09 Waiver of Lien; Waiver of Set-off
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	Custody

	Section 4.01 Appointment
	 	 	10	 
	Section 4.02 Custody
	 	 	10	 
	Section 4.03 Termination of Custody Account
	 	 	10	 
	Section 4.04 Waiver of Lien; Waiver of Set-off
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	Distributions on Collateral and Custody Notes

	 
	 	 	 	 
	Section 5.01 Interest on Notes
	 	 	10	 
	Section 5.02 Payments Following Termination Event
	 	 	11	 
	Section 5.03 Payments Prior to or on Stock Purchase Date
	 	 	11	 
	Section 5.04 Payments to Property Trustee
	 	 	12	 
	Section 5.05 Assets Not Properly Released
	 	 	12	 

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	 	 	Page
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Initial
Deposit; Exchange of Normal WITS and Qualifying Treasury Securities
for Stripped WITS
and
Capital WITS; Reinvestment of Proceeds of Pledged Treasury Securities

	 
	 	 	 	 
	Section 6.01 Initial Deposit of Notes
	 	 	12	 
	Section 6.02 Exchange of Normal WITS and Qualifying Treasury Securities for Stripped WITS and Capital WITS
	 	 	13	 
	Section 6.03 Exchange of Stripped WITS and Capital WITS for Normal WITS and Qualifying Treasury Securities
	 	 	14	 
	Section 6.04 Termination Event
	 	 	15	 
	Section 6.05 Reinvestment of Proceeds of Pledged Treasury Securities
	 	 	15	 
	Section 6.06 Application of Proceeds in Settlement of Stock Purchase Contracts
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	Voting Rights –– Notes

	 
	 	 	 	 
	Section 7.01 Voting Rights
	 	 	17	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	Rights and Remedies

	 
	 	 	 	 
	Section 8.01 Rights and Remedies of the Collateral Agent
	 	 	17	 
	Section 8.02 Remarketing; Contingent Exchange Elections by Holder of Normal WITS
	 	 	18	 
	Section 8.03 Contingent Disposition Election by Holder of Capital WITS
	 	 	20	 
	 
	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 
	Representations and Warranties; Covenants

	 
	 	 	 	 
	Section 9.01 Representations and Warranties
	 	 	21	 
	Section 9.02 Covenants
	 	 	21	 
	 
	 	 	 	 
	ARTICLE X 

	 
	 	 	 	 
	The Collateral Agent, The Custodial Agent, The Securities Intermediary and The Securities Registrar
	 	 	 	 
	 
	 	 	 	 
	Section 10.01 Appointment, Powers and Immunities
	 	 	22	 
	Section 10.02 Instructions of the Company
	 	 	23	 
	Section 10.03 Reliance by Collateral Agent, Custodial Agent, Securities Intermediary and Securities Registrar
	 	 	23	 
	Section 10.04 Certain Rights
	 	 	24	 
	Section 10.05 Merger, Conversion, Consolidation or Succession to Business
	 	 	25	 
	Section 10.06 Rights in Other Capacities
	 	 	26	 
	Section 10.07 Non-reliance on Collateral Agent, the Securities Intermediary, the Custodial Agent and Securities Registrar
	 	 	26	 

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	 	 	Page
	Section 10.08 Compensation and Indemnity
	 	 	26	 
	Section 10.09 Failure to Act
	 	 	27	 
	Section 10.10 Resignation of Collateral Agent, the Securities Intermediary, the Custodial Agent and Securities Registrar
	 	 	28	 
	Section 10.11 Right to Appoint Agent or Advisor
	 	 	29	 
	Section 10.12 Survival
	 	 	29	 
	Section 10.13 Exculpation
	 	 	29	 
	Section 10.14 Statements and Confirmations
	 	 	30	 
	Section 10.15 Tax Allocations
	 	 	30	 
	 
	 	 	 	 
	ARTICLE XI 

	 
	 	 	 	 
	Amendment

	 
	 	 	 	 
	Section 11.01 Amendment
	 	 	30	 
	Section 11.02 Execution of Amendments
	 	 	30	 
	 
	 	 	 	 
	ARTICLE XII

	 
	 	 	 	 
	Miscellaneous

	 
	 	 	 	 
	Section 12.01 No Waiver
	 	 	31	 
	Section 12.02 Governing Law; Submission to Jurisdiction; Waiver of Trial by Jury
	 	 	31	 
	Section 12.03 Notices
	 	 	31	 
	Section 12.04 Successors and Assigns
	 	 	32	 
	Section 12.05 Severability
	 	 	32	 
	Section 12.06 Expenses, Etc
	 	 	32	 
	Section 12.07 Security Interest Absolute
	 	 	33	 
	Section 12.08 Notice of Termination Event
	 	 	33	 
	Section 12.09 Incorporation by Reference
	 	 	33	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A — Form of Normal WITS Certificate
	 	 	 	 
	Exhibit B — Form of Stripped WITS Certificate
	 	 	 	 
	Exhibit C — Form of Capital WITS Certificate
	 	 	 	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	Schedule I — Reference Dealers

	 	 	 	 
	Schedule II — Contact Persons for Confirmation
	 	 	 	 

Collateral Agreement

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          Collateral Agreement, dated as of February 1, 2006, among Wachovia
Corporation, a North Carolina corporation (the “Company”), JPMorgan Chase Bank, National
Association (“JPMorgan”), as collateral agent (in such capacity, the “Collateral Agent”), as
Custodial Agent (in such capacity, the “Custodial Agent”), as securities intermediary (as defined
in Section 8-102(a)(14) of the UCC) with respect to the Collateral Account (in such capacity, the
“Securities Intermediary”), and as Securities Registrar, as defined in the Trust Agreement, in
respect of the Trust Preferred Securities, and Wachovia Capital Trust III, a Delaware
statutory trust (the “Trust”), acting through U.S. Bank National Association, not in its
individual capacity but solely as Property Trustee on behalf of the Trust (in such capacity, the
“Property Trustee”).

Recitals

          The Company and the Trust (acting through the Property Trustee) are parties to the Stock
Purchase Contract Agreement, dated as of the date hereof (as modified and supplemented and in
effect from time to time, the “Stock Purchase Contract Agreement”), pursuant to which the Company
has agreed to issue 25,010 stock purchase contracts, having a liquidation amount of $100,000 per
contract (each, a “Stock Purchase Contract”) to the Trust.

          Each Stock Purchase Contract requires the Company to issue and sell, and the Property Trustee
(on behalf of the Trust) to purchase, on the Stock Purchase Date (as defined in the Stock Purchase
Contract Agreement), for an amount equal to $100,000 (the “Purchase Price”), one share of the
Company’s Non-Cumulative Perpetual Class A Preferred Stock, Series I, $100,000 liquidation
preference per share (the “Preferred Stock”).

          Pursuant to the Trust Agreement, the Stock Purchase Contract Agreement and the Stock Purchase
Contracts, the Property Trustee on behalf of the Trust is required to execute and deliver this
Agreement, to grant the pledge provided herein of the Collateral to secure the Obligations (as
defined herein) and to appoint the Custodial Agent to establish and maintain the Custody Account
(as defined herein).

          Now, Therefore, this Collateral Agreement Witnesseth: For and in consideration of the
agreements and obligations set forth herein and for other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the Company, the Collateral Agent, the
Custodial Agent, the Securities Intermediary, the Securities Registrar and the Trust mutually agree
as follows:

ARTICLE I

Definitions

     Section 1.01 Definitions.

          For all purposes of this Agreement, except as otherwise expressly provided or unless the
context otherwise requires:

     (a) The terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular, and nouns and pronouns of the masculine gender include
the feminine and neuter genders.

Collateral Agreement

 

 

     (b) The words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Article, Section or other subdivision and
references to any Article, Section or other subdivision are references to an Article, Section or
other subdivision of this Agreement.

     (c) The following terms that are defined in the UCC shall have the meanings set forth therein:
“certificated security,” “control,” “financial asset,” “financing statement,” “entitlement order,”
“securities account” and “security entitlement”.

     (d) Capitalized terms used herein and not defined herein have the meanings assigned to them in
the Trust Agreement.

     (e) The following terms have the meanings given to them in this Section 1.01(e):

          “Agreement” means this Collateral Agreement, as the same may be amended, modified or
supplemented from time to time.

          “Cash” means any coin or currency of the United States as at the time shall be legal tender
for payment of public and private debts.

          “Collateral” means the collective reference to:

          (1) the Collateral Account and all investment property and other financial
assets from time to time credited to the Collateral Account and all security
entitlements with respect thereto, including, without limitation, (A) the Notes,
other than any Notes that are Transferred to (x) the Custodial Agent in accordance
with Section 6.02 upon the Exchange of Normal WITS and Qualifying Treasury
Securities for Stripped WITS and Capital WITS pursuant to Sections 5.13(a)(i), (b)
and (c) of the Trust Agreement from time to time or (y) the Remarketing Agent or the
Custody Account in accordance with Section 8.02(b) upon a Successful Remarketing and
(B) any Qualifying Treasury Securities and security entitlements thereto delivered
from time to time upon the exchange of Normal WITS and Qualifying Treasury
Securities for Stripped WITS and Capital WITS pursuant to Sections 5.13(a)(i), (b)
and (c) of the Trust Agreement and in accordance with Section 6.02;

          (2) all Qualifying Treasury Securities and security entitlements thereto
purchased by the Collateral Agent with the Proceeds of Qualifying Treasury
Securities pursuant to Section 6.05;

          (3) the Wachovia Deposit made with a portion of the net proceeds of the
Remarketing pursuant to Section 8.02(b);

          (4) all Proceeds of any of the foregoing (whether such Proceeds arise before or
after the commencement of any proceeding under any applicable bankruptcy, insolvency
or other similar law, by or against the pledgor or with respect to the pledgor); and

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          (5) all powers and rights now owned or hereafter acquired under or with respect
to the Collateral.

          “Collateral Account” means the securities account of JPMorgan, as Collateral Agent, maintained
by the Securities Intermediary and designated “JPMorgan Chase Bank, National Association, as
Collateral Agent of Wachovia Corporation, as pledgee of Wachovia Capital Trust III, acting through
U.S. Bank National Association, as Property Trustee.”

          “Collateral Agent” means the Person named as the “Collateral Agent” in the first paragraph of
this Agreement until a successor Collateral Agent shall have become such pursuant to the applicable
provisions of this Agreement, and thereafter “Collateral Agent” shall mean such Person or any
subsequent successor who is appointed pursuant to this Agreement.

          “Company” means the Person named as the “Company” in the first paragraph of this Agreement
until a successor shall have become such pursuant to the applicable provisions of the Stock
Purchase Contract Agreement, and thereafter “Company” shall mean such successor.

          “Custodial Agent” means the Person named as the “Custodial Agent” in the first paragraph of
this Agreement until a successor Custodial Agent shall have become such pursuant to the applicable
provisions of this Agreement, and thereafter “Custodial Agent” shall mean such Person or any
subsequent successor who is appointed pursuant to this Agreement.

          “Custody Account” means the securities account of JPMorgan, as Custodial Agent, designated
“JPMorgan Chase Bank, National Association, as Custodial Agent for Wachovia Capital Trust III.”

          “Custody Notes” has the meaning specified in Section 4.01.

          “Exchange” means an exchange of Normal WITS and Qualifying Treasury Securities for Stripped
WITS and Capital WITS pursuant to Section 5.13(b) of the Trust Agreement and Section 6.02 or an
exchange of Stripped WITS and Capital WITS for Normal WITS and Qualifying Treasury Securities
pursuant to Section 5.13(d) of the Trust Agreement and Section 6.03.

          “Final Dealer” has the meaning specified in Section 6.05(a).

          “Market Disruption Event” means (i) a general moratorium on commercial banking activities in
New York declared by the relevant authorities or (ii) any material disruption of the U.S.
government securities market or U.S. federal wire system, written notification of which shall have
been given to the Collateral Agent by any of the Administrative Trustees.

          “Notes” means the Remarketable Junior Subordinated Notes due 2042 of the Company issued
pursuant to the Indenture.

          “Notice of Contingent Disposition Election” means a Notice of Contingent Disposition Election
substantially in the form set forth on the reverse side of the form of Capital WITS Certificate, a
copy of which is attached hereto as Exhibit C.

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          “Notice of Contingent Exchange Election” means a Notice of Contingent Exchange Election
substantially in the form set forth on the reverse side of the form of Normal WITS Certificate, a
copy of which is attached hereto as Exhibit A.

          “Obligations” means all obligations and liabilities of the Trust and the Property Trustee on
behalf of the Trust under each Stock Purchase Contract, the Stock Purchase Contract Agreement and
this Agreement or any other document made, delivered or given in connection herewith or therewith,
in each case whether on account of principal, interest (including, without limitation, interest
accruing before and after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to the Property Trustee or the Trust,
whether or not a claim for post-filing or post-petition interest is allowed in such proceeding),
fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Company or the Collateral Agent or the Securities Intermediary that
are required to be paid by the Trust pursuant to the terms of any of the foregoing agreements).

          “Permitted Investments” means any one of the following, in each case maturing on the Business
Day following the date of acquisition:

          (1) any evidence of indebtedness with an original maturity of 365 days or less
issued, or directly and fully guaranteed or insured, by the United States of America
or any agency or instrumentality thereof (provided that the full faith and credit of
the United States of America is pledged in support of the timely payment thereof or
such indebtedness constitutes a general obligation of it);

          (2) deposits, certificates of deposit or acceptances with an original maturity
of 365 days or less of any institution which is a member of the Federal Reserve
System having combined capital and surplus and undivided profits of not less than
$500 million at the time of deposit (and which may include the Collateral Agent);

          (3) investments with an original maturity of 365 days or less of any Person
that are fully and unconditionally guaranteed by a bank referred to in clause (2);

          (4) repurchase agreements and reverse repurchase agreements relating to
marketable direct obligations issued or unconditionally guaranteed by the United
States of America or issued by any agency thereof and backed as to timely payment by
the full faith and credit of the United States of America;

          (5) investments in commercial paper, other than commercial paper issued by the
Company or its Affiliates, of any corporation incorporated under the laws of the
United States of America or any State thereof, which commercial paper has a rating
at the time of purchase at least equal to “A-1” by Standard & Poor’s Ratings
Services (“S&P”) or at least equal to “P-1” by Moody’s Investors Service, Inc.
(“Moody’s”);

          (6) investments in money market funds (including, but not limited to, money
market funds managed by the Collateral Agent or an Affiliate of the Collateral
Agent) registered under the Investment Company Act of 1940, as amended, rated in the
highest applicable rating category by S&P or Moody’s; and

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          (7) a cash escrow trust account with JPMorgan.

     “Pledge” means the lien and security interest created by this Agreement.

     “Pledged Notes” means each Note deposited with the Collateral Agent pursuant to Section 6.01
or delivered to the Collateral Agent pursuant to Section 6.03, until such time as it is released
from the Pledge and delivered to the Custodial Agent pursuant to Section 6.02 or to the Remarketing
Agent or the Custody Account pursuant to Section 8.02(b).

     “Pledged Treasury Securities” means Qualifying Treasury Securities from time to time credited
to the Collateral Account pursuant to Section 6.02 and not then released from the Pledge pursuant
to Section 6.03, together with all Qualifying Treasury Securities purchased from time to time by
the Collateral Agent with the Proceeds of maturing Pledged Treasury Securities pursuant to Section
6.05.

     “Proceeds” has the meaning ascribed thereto in Section 9-102(a)(64) of the UCC and includes,
without limitation, all interest, dividends, Cash, instruments, securities, financial assets and
other property received, receivable or otherwise distributed upon the sale (including, without
limitation, the Remarketing), exchange, collection or disposition of any financial assets from time
to time held in the Collateral Account.

     “Property Trustee” means the Person named as the “Property Trustee” in the first paragraph of
this Agreement until a successor Property Trustee shall have become such pursuant to the applicable
provisions of the Trust Agreement, and thereafter “Property Trustee” shall mean such Person or any
subsequent successor who is appointed pursuant to the Trust Agreement.

     “Recombination Notice and Request” means a Recombination Notice and Request substantially in
the form set forth on the reverse side of the forms of Stripped WITS Certificate and Capital WITS
Certificate, copies of which are attached hereto as Exhibits B and C respectively.

     “Reference Dealer” means each of the U.S. government securities dealers listed on Schedule I
hereto (including any successor thereto) and any other U.S. government securities dealers
designated by the Collateral Agent (it being understood that the Collateral Agent may, but shall
not be obligated, to designate any one or more such other U.S. government securities dealers);
provided that if at any time fewer than three of the entities named on Schedule I are active U.S.
government securities dealers and approved counterparties of JPMorgan Asset Management, any of the
Administrative Trustees may designate an additional U.S. government securities dealer as a
Reference Dealer.

     “Remarketing” has the meaning specified in the Indenture.

     “Roll Date” means, with respect to any Additional Distribution Date, the latest date prior to
such Additional Distribution Date that is a maturity date of Qualifying Treasury Securities held in
the Collateral Account.

     “Securities Intermediary” means the Person named as the “Securities Intermediary” in the first
paragraph of this Agreement until a successor Securities Intermediary shall have become such
pursuant to the applicable provisions of this Agreement, and thereafter “Securities Intermediary”
shall mean such Person or any subsequent successor who is appointed pursuant to this Agreement.

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          “Securities Registrar” means the Person named as the “Securities Registrar” in the first
paragraph of this Agreement until a successor Securities Registrar shall have been appointed by the
Company pursuant to the applicable provisions of the Trust Agreement, and thereafter “Securities
Registrar” shall mean such Person or any subsequent successor who is appointed pursuant to the
Trust Agreement by the Company.

          “Stripping Notice and Request” means a Stripping Notice and Request substantially in the form
set forth on the reverse side of the form of Normal WITS Certificate, a copy of which is attached
hereto as Exhibit A.

          “Successful” has the meaning specified in the Indenture.

          “Termination Event” has the meaning specified in the Stock Purchase Contract Agreement.

          “Trade Date” means, with respect to each Roll Date, the Business Day immediately preceding
such Roll Date.

          “Trades” means the Treasury/Reserve Automated Debt Entry System maintained by the Federal
Reserve Bank of New York pursuant to the Trades Regulations.

          “Trades Regulations” means the regulations of the United States Department of the Treasury,
published at 31 C.F.R. Part 357, as amended from time to time. Unless otherwise defined herein, all
terms defined in the Trades Regulations are used herein as therein defined.

          “Transfer” means (i) in the case of certificated securities in registered form, delivery as
provided in Section 8-301(a) of the UCC, endorsed to the transferee or in blank by an effective
endorsement, (ii) in the case of Qualifying Treasury Securities, registration of the transferee as
the owner of such Qualifying Treasury Securities on Trades and (iii) in the case of security
entitlements, including, without limitation, security entitlements with respect to Qualifying
Treasury Securities, a securities intermediary indicating by book entry that such security
entitlement has been credited to the transferee’s securities account.

          “Trust Agreement” means the Amended and Restated Trust Agreement, dated as of the date hereof,
among the Company, as Depositor, the Property Trustee, the Delaware Trustee and the Administrative
Trustees (each as named therein), and the several Holders (as defined therein).

          “UCC” means the Uniform Commercial Code as in effect in the State of New York from time to
time.

          “Value” means, with respect to any item of Collateral on any date, as to (1) Cash, the face
amount thereof, (2) Notes, the aggregate principal amount thereof and (3) Qualifying Treasury
Securities, the aggregate principal amount thereof.

          “Wachovia Deposit” has the meaning specified in the Stock Purchase Contract Agreement.

Collateral Agreement

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ARTICLE II

Pledge

     Section 2.01 Pledge.

          The Trust (acting through the Property Trustee) hereby pledges and grants to the Collateral
Agent, as agent of and for the benefit of the Company, a continuing first priority security
interest in and to, and a lien upon and right of set-off against, all of such Person’s right, title
and interest in and to the Collateral to secure the prompt and complete payment and performance
when due (whether at stated maturity, by acceleration or otherwise) of the Obligations. The
Collateral Agent shall have all of the rights, remedies and recourses with respect to the
Collateral afforded a secured party by the UCC, in addition to, and not in limitation of, the other
rights, remedies and recourses afforded to the Collateral Agent by this Agreement.

     Section 2.02 Control.

          The Collateral Agent shall have control of the Collateral Account pursuant to the provisions
of Article III.

     Section 2.03 Termination.

          This Agreement and the Pledge created hereby shall terminate upon the satisfaction of the
Obligations. Upon receipt by the Collateral Agent from the Company of notice of such termination,
the Collateral Agent shall, except as otherwise provided herein, Transfer and instruct the
Securities Intermediary to Transfer the Collateral to or upon the order of the Property Trustee,
free and clear of the Pledge created hereby.

ARTICLE III

Control

     Section 3.01 Establishment of Collateral Account.

          The Securities Intermediary hereby confirms that:

     (a) the Securities Intermediary has established the Collateral Account;

     (b) the Collateral Account is a securities account;

     (c) subject to the terms of this Agreement, the Securities Intermediary shall identify in its
records the Collateral Agent as the entitlement holder entitled to exercise the rights that
comprise any financial asset credited to the Collateral Account;

     (d) all property delivered to the Securities Intermediary pursuant to this Agreement or the
Stock Purchase Contract Agreement, including any Permitted Investments purchased by the Securities

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-7-

 

Intermediary from the Proceeds of any Collateral, will be credited promptly to the Collateral
Account; and

     (e) all securities or other property underlying any financial assets credited to the
Collateral Account shall be (i) registered in the name of the Property Trustee and indorsed to the
Securities Intermediary or in blank, (ii) registered in the name of the Securities Intermediary or
the Collateral Agent or (iii) credited to another securities account maintained in the name of the
Securities Intermediary. In no case will any financial asset credited to the Collateral Account be
registered in the name of the Property Trustee or specially indorsed to the Property Trustee unless
such financial asset has been further indorsed to the Securities Intermediary or in blank.

     Section 3.02 Treatment as Financial Assets.

          Each item of property (whether investment property, financial asset, security, instrument or
Cash) credited to the Collateral Account shall be treated as a financial asset.

     Section 3.03 Sole Control by Collateral Agent.

          Except as provided in Section 8.01, at all times prior to the termination of the Pledge, the
Collateral Agent shall have sole control of the Collateral Account, and the Securities Intermediary
shall take instructions and directions with respect to the Collateral Account solely from the
Collateral Agent. If at any time the Securities Intermediary shall receive an entitlement order
issued by the Collateral Agent and relating to the Collateral Account, the Securities Intermediary
shall comply with such entitlement order without further consent by the Property Trustee or any
other Person. Except as otherwise permitted under this Agreement, until termination of the Pledge,
the Securities Intermediary will not comply with any entitlement orders issued by the Property
Trustee.

          The Trust hereby irrevocably constitutes and appoints the Collateral Agent and the Company,
with full power of substitution, as the Trust’s attorney-in-fact to take on behalf of, and in the
name, place and stead of the Trust and the Holders, any action necessary or desirable to perfect
and to keep perfected the security interest in the Collateral referred to in Section 2.01. The
grant of such power-of-attorney shall not be deemed to require of the Collateral Agent any specific
duties or obligations not otherwise expressly assumed by the Collateral Agent hereunder.
Notwithstanding the foregoing, in no event shall the Collateral Agent or Securities Intermediary be
responsible for the preparation or filing of any financing or continuation statements in the
appropriate jurisdictions or responsible for maintenance or perfection of any security interest
hereunder.

     Section 3.04 Securities Intermediary’s Location.

          The Collateral Account, and the rights and obligations of the Securities Intermediary, the
Collateral Agent and the Property Trustee with respect thereto, shall be governed by the laws of
the State of New York. Regardless of any provision in any other agreement, for purposes of the UCC,
New York shall be deemed to be the Securities Intermediary’s jurisdiction.

Collateral Agreement

-8-

 

     Section 3.05 No Other Claims.

          Except for the claims and interest of the Collateral Agent and of the Trust in the Collateral
Account, the Securities Intermediary (without having conducted any investigation) does not know of
any claim to, or interest in, the Collateral Account or in any financial asset credited thereto. If
any Person asserts any lien, encumbrance or adverse claim (including any writ, garnishment,
judgment, warrant of attachment, execution or similar process) against the Collateral Account or in
any financial asset carried therein, the Securities Intermediary will promptly notify the
Collateral Agent and the Property Trustee.

     Section 3.06 Investment and Release.

          All Proceeds of financial assets from time to time deposited in the Collateral Account shall
be invested and reinvested as provided in this Agreement. At no time prior to termination of the
Pledge with respect to any particular property shall such property be released from the Collateral
Account except in accordance with this Agreement or upon written instructions of the Collateral
Agent.

     Section 3.07 No Other Agreements.

          The Securities Intermediary has not entered into, and prior to the termination of the Pledge
will not enter into, any agreement with any other Person relating to the Collateral Account or any
financial assets credited thereto, including, without limitation, any agreement to comply with
entitlement orders of any Person other than the Collateral Agent.

     Section 3.08 Powers Coupled with an Interest.

          The rights and powers granted in this Article III to the Collateral Agent have been granted in
order to perfect its security interests in the Collateral Account, are powers coupled with an
interest and will be affected neither by the bankruptcy of the Property Trustee or the Trust nor by
the lapse of time. The obligations of the Securities Intermediary under this Article III shall
continue in effect until the termination of the Pledge with respect to any and all Collateral.

     Section 3.09 Waiver of Lien; Waiver of Set-off.

          The Securities Intermediary waives any security interest, lien or right to make deductions or
set-offs that it may now have or hereafter acquire in or with respect to the Collateral Account,
any financial asset credited thereto or any security entitlement in respect thereof. Neither the
financial assets credited to the Collateral Account nor the security entitlements in respect
thereof will be subject to deduction, set-off, banker’s lien or any other right in favor of any
person other than the Company.

Collateral Agreement

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ARTICLE IV

Custody

     Section 4.01 Appointment.

          The Trust hereby appoints the Custodial Agent as Custodial Agent of the Trust to hold all of
the Notes that are property of the Trust, other than the Pledged Notes (collectively, the “Custody
Notes”), for the benefit of the Trust and for the purposes set forth herein, and the Custodial
Agent hereby accepts such appointment under the terms and conditions set forth herein.

     Section 4.02 Custody.

          The Custodial Agent will hold the Custody Notes in the Custody Account. For the avoidance of
doubt, the Custodial Agent shall segregate on its books and records the assets of the Trust from
assets held by the Custodial Agent for other customers (including the Collateral) or for the
Custodial Agent itself. The Custodial Agent shall only have the obligations expressly set forth
herein and shall have no responsibility for monitoring compliance with the Trust Agreement, the
Stock Purchase Agreement or any other agreement in connection therewith. The Custodial Agent shall
accept the Transfer of Notes from the Collateral Agent from time to time pursuant to Section 6.02,
deliver Notes to the Collateral Agent from time to time pursuant to Section 6.03 and deliver Notes
to the Remarketing Agent on the Remarketing Settlement Date pursuant to Section 8.03.

     Section 4.03 Termination of Custody Account.

          Upon receipt by the Custodial Agent from the Company of notice of termination of this
Agreement pursuant to Section 2.03, the Custodial Agent shall deliver the Custody Notes to the
Property Trustee.

     Section 4.04 Waiver of Lien; Waiver of Set-off.

          The Custodial Agent waives any security interest, lien or right to make deductions or set-offs
that it may now have or hereafter acquire in or with respect to the Custodial Agent, any financial
asset credited thereto or any security entitlement in respect thereof. Neither the financial
assets credited to the Custody Account nor the security entitlements in respect thereof will be
subject to deduction, set-off, banker’s lien or any other right in favor of any Person other than
the Trust.

ARTICLE V

Distributions on Collateral and

Custody Notes

     Section 5.01 Interest on Notes.

     (a) The Collateral Agent shall transfer all interest received from time to time by the
Collateral Agent on account of the Pledged Notes to the Paying Agent.

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     (b) The Custodial Agent shall transfer all interest received from time to time by the
Custodial Agent on account of the Custody Notes to the Paying Agent.

     Section 5.02 Payments Following Termination Event.

          Following a Termination Event, written notice of which the Collateral Agent or the Custodial
Agent, as the case may be, shall have received from the Company, the Property Trustee or any of the
Administrative Trustees,

     (a) the Collateral Agent shall cause the Securities Intermediary to Transfer (i) the Pledged
Notes, (ii) the Pledged Treasury Securities and (iii) any Permitted Investments, including in each
case any and all payments of principal or interest it receives in respect thereof, to the Property
Trustee or its designee, free and clear of the Pledge created hereby; and

     (b) the Custodial Agent shall Transfer the Custody Notes and any and all payments of principal
or interest it receives in respect thereof to the Property Trustee or its designee.

     Section 5.03 Payments Prior to or on Stock Purchase Date.

     (a) Except as provided in Section 5.03(c) and Section 6.05, if the Collateral Agent or the
Custodial Agent, as the case may be, shall not have received from the Company, the Property Trustee
or any of the Administrative Trustees notice of any Termination Event, all payments of principal
received by the Collateral Agent or the Securities Intermediary in respect of (i) the Pledged Notes
and (ii) the Pledged Treasury Securities shall be held until the Stock Purchase Date and an amount
thereof equal to the Purchase Price under the Stock Purchase Contracts shall be transferred to the
Company on the Stock Purchase Date as provided in Section 2.1 of the Stock Purchase Contract
Agreement in satisfaction of the Trust’s obligation to pay such Purchase Price. Any balance
remaining in the Collateral Account shall be released from the Pledge and Transferred to the Paying
Agent, free and clear of the Pledge created thereby. The Company shall instruct the Collateral
Agent in writing as to the Permitted Investments in which any payments received under this Section
5.03(a) shall be invested; provided that if the Company fails to deliver such instructions by 10:30
a.m. (New York City time) on the day such payments are received by the Collateral Agent, the
Collateral Agent shall invest such payments in the Permitted Investments as described in clause (7)
of the definition of Permitted Investments. The Collateral Agent shall have no liability in
respect of losses incurred as a result of the failure of the Company to provide timely written
investment direction. The Collateral Agent may conclusively rely on any written direction and
shall bear no liability for any loss or other damage based on acting or omitting to act under this
Section 5.03 pursuant to any direction of the Company or any investment in Permitted Investments as
described in clause (7) of the definition of Permitted Investments as provided herein and neither
the Collateral Agent nor the Securities Intermediary shall in any way be liable for the selection
of Permitted Investments or by reason of any insufficiency in the Collateral Account resulting from
any loss on any Permitted Investment included therein.

     (b) All payments of principal received by the Custodial Agent in respect of the Custody Notes
shall be transferred to the Paying Agent.

     (c) All payments of principal received by the Collateral Agent or the Securities Intermediary
in respect of (1) the Pledged Notes and (2) the Pledged Treasury Securities or security
entitlements

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thereto, that, in each case, have been released from the Pledge pursuant hereto (other than
Pledged Notes that upon such release shall have become Custody Notes in accordance with Section
6.03) shall be transferred to or in accordance with the written instructions of the Paying Agent.

     Section 5.04 Payments to Property Trustee.

          The Securities Intermediary and the Custodial Agent shall use commercially reasonable efforts
to deliver payments to the Paying Agent under the Trust Agreement or the Property Trustee as
provided hereunder to the Payment Account established by such Paying Agent or the Property Trustee,
for credit to JPMorgan Chase Bank, National Association, New York, New York, ABA #: 021-000-021,
A/C: 507943635, for further credit to: Wachovia Capital Trust III – GP# 10224743.2, not later than
12:00 p.m. (New York City time) on the Business Day it receives such payment; provided that if such
payment is received on a day that is not a Business Day or after 11:00 a.m. (New York
City time) on a Business Day, then it shall use commercially reasonable efforts to deliver such
payment to such Paying Agent or the Property Trustee no later than 10:30 a.m. (New York City time)
on the next succeeding Business Day.

     Section 5.05 Assets Not Properly Released.

          If the Paying Agent or the Property Trustee shall receive any principal payments on account of
financial assets credited to the Collateral Account and not released therefrom in accordance with
this Agreement, the Paying Agent or the Property Trustee shall hold the same as trustee of an
express trust for the benefit of the Company and, upon receipt of an Officers’ Certificate of the
Company so directing, promptly deliver the same to the Securities Intermediary for credit to the
Collateral Account or to the Company for application to the Obligations, and the Paying Agent or
the Property Trustee shall acquire no right, title or interest in any such payments of principal
amounts so received. Neither the Paying Agent nor the Property Trustee shall have any liability
under this Section 5.05 unless and until it has been notified in writing that such payment was
delivered to it erroneously and nor shall it have any liability for any action taken, suffered or
omitted to be taken prior to its receipt of such notice.

ARTICLE VI

Initial Deposit; Exchange of Normal WITS and 

Qualifying Treasury Securities for Stripped WITS and Capital WITS; Reinvestment of
 Proceeds of
Pledged Treasury Securities

     Section 6.01 Initial Deposit of Notes.

     (a) Prior to or concurrently with the execution and delivery of this Agreement, the Property
Trustee shall Transfer to the Securities Intermediary, for credit to the Collateral Account, Notes
having an aggregate principal amount of $2,501,000,000.

     (b) The Collateral Agent shall, at any time or from time to time, at the written request of
the Company, cause any or all securities or other property underlying any financial assets credited
to the Collateral Account to be registered in the name of the Securities Intermediary, the
Collateral Agent or their respective nominees; provided that unless any Event of Default (as
defined in the Trust Agreement) shall have occurred and be continuing, and in respect of which the
Collateral Agent shall have received

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written notice from the Property Trustee or the Administrative Trustees, the Collateral Agent
agrees not to cause any Notes to be so re-registered.

     Section 6.02 Exchange of Normal WITS and Qualifying Treasury Securities for Stripped WITS and
Capital WITS.

     (a) On each occasion on which a Holder of Normal WITS exercises its rights pursuant to
Sections 5.13(a)(i), (b) and (c) of the Trust Agreement to exchange Normal WITS and Qualifying
Treasury Securities for Stripped WITS and Capital WITS by, during any Exchange Period:

          (i) depositing with the Collateral Agent the treasury security that is the Qualifying
Treasury Security on the date of deposit, in the principal amount of $1,000 for each Normal
WITS being Exchanged;

          (ii) Transferring the Normal WITS being Exchanged to the Securities Registrar; and

          (iii) delivering a duly executed and completed Stripping Notice and Request to the
Securities Registrar and Collateral Agent (x) stating that the Holder has deposited the
appropriate Qualifying Treasury Securities with the Collateral Agent for deposit in the
Collateral Account, (y) stating that the Holder is Transferring the related Normal WITS to
the Securities Registrar in connection with an Exchange of such Normal WITS and Qualifying
Treasury Securities for a Like Amount of Stripped WITS and Capital WITS, and (z) requesting
the delivery to the Holder of such Stripped WITS and Capital WITS,

the Collateral Agent shall, upon the deposit and Transfer pursuant to clauses (i) and (ii) and
receipt of the notice and request referred to in clause (iii), (w) be deemed to accept the
Qualifying Treasury Securities deposited pursuant to clause (i) as Collateral subject to the
Pledge, (x) release Pledged Notes of a Like Amount from the Pledge, (y) Transfer such Pledged Notes
to the Custodial Account free and clear of the Company’s security interest therein, and (z) confirm
to the Property Trustee in writing that such release and Transfer has occurred. The Custodial
Agent shall continue to hold such Notes as Custody Notes pursuant to Article IV.

     (b) The Securities Registrar, pursuant to the procedures provided for in Section 5.11 of the
Trust Agreement dealing with increasing and decreasing the number of Trust Preferred Securities
evidenced by Book-Entry Trust Preferred Securities Certificates, shall cancel the number of Normal
WITS Transferred pursuant to Section 6.02(a) and deliver a Like Amount of Stripped WITS and Capital
WITS to the Holder, all by making appropriate notations on the Book-Entry Trust Preferred
Securities Certificates of the appropriate Class.

     (c) The
Collateral Agent and the Custodial Agent shall comply with the
procedures provided for in Section 2.4(d) of the First Supplemental Indenture dealing with
decreasing the Pledged Notes held by the Collateral Agent and increasing correspondingly the
Custody Notes held by the Custodial Agent, unless such procedures
have been performed by the Securities Registrar under the Indenture
as in said Section 2.4(d) provided.

     (d) The substitution of Qualifying Treasury Securities, or security entitlements thereto, for
financial assets held in the Collateral Account pursuant to this Section 6.02, shall not constitute
a novation of the security interest created hereby.

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     Section 6.03 Exchange of Stripped WITS and Capital WITS for Normal WITS and Qualifying
Treasury Securities.

     (a) On each occasion on which a Holder of Stripped WITS and Capital WITS exercises its rights
pursuant to Sections 5.13(d) of the Trust Agreement to exchange Stripped WITS and Capital WITS for
Normal WITS and Qualifying Treasury Securities by, during any Exchange Period, Transferring the
Stripped WITS and the Capital WITS being Exchanged to the Securities Registrar and delivering a
duly executed and completed Recombination Notice and Request to the Securities Registrar and
Collateral Agent (x) stating that the Holder is Transferring the related Stripped WITS and Capital
WITS to the Securities Registrar in connection with the Exchange of such Stripped WITS and Capital
WITS for a Like Amount of each of Normal WITS and Pledged Treasury Securities, (y) requesting the
Collateral Agent to release from the Pledge and deliver to the Holder Pledged Treasury Securities
in a principal amount equal to the Liquidation Amount of each of the Stripped WITS and Capital WITS
being exchanged, and (z) requesting the Securities Registrar to deliver to the Holder Normal WITS
of a Like Amount.

     (b) Upon the Transfer pursuant to Section 6.03(a) and receipt of the notice and request
referred to in Section 6.03(a):

          (i) the Custodial Agent will Transfer a Like Amount of Notes from the Custody Account
to the Collateral Account in substitution for such Pledged Treasury Securities;

          (ii) the Collateral Agent will be deemed to accept the Notes Transferred by the
Custodial Agent pursuant to clause (i) as Collateral subject to the Pledge;

          (iii) the Collateral Agent will release Pledged Treasury Securities of a Like Amount
from the Pledge and deliver such Qualifying Treasury Securities to the Holder free and clear
of the Company’s security interest therein, and confirm in writing to the Property Trustee
that such release and Transfer has occurred;

          (iv) the Securities Registrar, pursuant to the procedures provided for in Section 5.11
of the Trust Agreement dealing with increasing and decreasing the number of Trust Preferred
Securities evidenced by Book-Entry Trust Preferred Securities Certificates, shall cancel the
number of Stripped WITS and Capital WITS delivered pursuant to Section 6.03(a) and deliver a
Like Amount of Normal WITS to the Holder, all by making appropriate notations on the
Book-Entry Trust Preferred Securities Certificates of the appropriate Class; and

          (v)
the Collateral Agent and the Custodial Agent shall comply with the procedures provided for in Section 2.4(e) of the First Supplemental Indenture dealing
with decreasing the Custody Notes held by the Custodial Agent and increasing
correspondingly the Pledged Notes held by the Collateral Agent,
unless such procedures have been performed by the Securities
Registrar under the Indenture as in said Section 2.4(e) provided.

     (c) The substitution of Notes for financial assets held in the Collateral Account pursuant to
this Section 6.03, shall not constitute a novation of the security interest created hereby.

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     Section 6.04 Termination Event.

     (a) Upon receipt by the Collateral Agent of written notice from the Company, the Property
Trustee or any of the Administrative Trustees of the Trust that a Termination Event has occurred,
the Collateral Agent shall release all Collateral from the Pledge and shall promptly instruct the
Securities Intermediary to Transfer:

          (i) any Pledged Notes;

          (ii) the Proceeds of the Wachovia Deposit; and

          (iii) any Pledged Treasury Securities,

to the Property Trustee, free and clear of the Pledge created hereby.

     (b) If such Termination Event shall result from the Company’s becoming a debtor under the
Bankruptcy Code, and if the Collateral Agent shall for any reason fail promptly to effectuate the
release and Transfer of all Pledged Notes, Pledged Treasury Securities, Permitted Investments, the
Wachovia Deposit and Proceeds of any of the foregoing, as the case may be, as provided by this
Section 6.04, the Property Trustee or any of the Administrative Trustees shall:

          (i) use its best efforts to obtain an opinion of a nationally recognized law firm to
the effect that, notwithstanding the Company being the debtor in such a bankruptcy case, the
Collateral Agent will not be prohibited from releasing or Transferring the Collateral as
provided in this Section 6.04 and shall deliver or cause to be delivered such opinion to the
Collateral Agent within ten days after the occurrence of such Termination Event, and if (A)
the Property Trustee or any of the Administrative Trustees shall be unable to obtain such
opinion within ten days after the occurrence of such Termination Event or (B) the Collateral
Agent shall continue, after delivery of such opinion, to refuse to effectuate the release
and Transfer of all Pledged Notes, Pledged Treasury Securities, Permitted Investments, the
Wachovia Deposit and Proceeds of any of the foregoing, as the case may be, as provided in
this Section 6.04, then the Property Trustee shall within fifteen days after the occurrence
of such Termination Event commence an action or proceeding in the court having jurisdiction
of the Company’s case under the Bankruptcy Code seeking an order requiring the Collateral
Agent to effectuate the release and Transfer of all Pledged Notes, Pledged Treasury
Securities, Permitted Investments, the Wachovia Deposit and Proceeds of any of the
foregoing, or as the case may be, as provided by this Section 6.04; or

          (ii) commence an action or proceeding like that described in Section 6.04(b)(i) hereof
within ten days after the occurrence of such Termination Event.

     Section 6.05 Reinvestment of Proceeds of Pledged Treasury Securities.

     (a) At or about 11:00 A.M. on each Trade Date, the Collateral Agent shall select at least
three Reference Dealers (including at least three Reference Dealers named on Schedule I hereto or
named by any of the Administrative Trustees as replacements therefor who are approved
counterparties of JPMorgan Asset Management) and request each of them to provide a commitment
(which may be oral if promptly confirmed by facsimile or e-mail), satisfactory in form to the
Collateral Agent, to the effect that

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if selected as the Final Dealer, such Reference Dealer shall sell to the Collateral Agent, for
delivery against payment on the immediately succeeding Roll Date, an aggregate principal amount of
the U.S. treasury security that is the Qualifying Treasury Security on such Roll Date equal to the
aggregate principal amount of Qualifying Treasury Securities held in the Collateral Account on such
Trade Date. If the Collateral Agent shall have received at least two firm offers, it shall select
the lowest offer and the Reference Dealer providing the lowest offer shall be the “Final Dealer”;
provided that if two or more Reference Dealers have provided identical lowest offers, the
Collateral Agent may select any of these Reference Dealers as the Final Dealer in its absolute
discretion. The Final Dealer shall be obligated to sell to the Collateral Agent, for Cash on the
Roll Date, the aggregate principal amount of the U.S. treasury security specified in such offer.
If the Collateral Agent determines that (i) a Market Disruption Event has occurred or (ii) fewer
than two Reference Dealers have provided firm offers in a timely manner meeting the foregoing
requirements, the steps contemplated above shall be taken on each succeeding Business Day on which
the Collateral Agent determines that no Market Disruption Event has occurred until at least two
Reference Dealers have provided such offers, except that the Collateral Agent shall request offers
from the Reference Dealers for same day settlement. The Collateral Agent shall use reasonable care
in administering the foregoing procedures and shall have no liability in connection therewith to
the Trust, the Property Trustee, the Company or any other Person in the absence of gross negligence
or willful misconduct. All determinations regarding whether a Market Disruption Event has occurred
shall be made by the Collateral Agent in its sole discretion.

     (b) On each Roll Date (or, if no Final Dealer shall have been selected on the Trade Date, on
the date that the Final Dealer is selected), the Collateral Agent shall instruct the Securities
Intermediary to apply the Proceeds of the U.S. treasury securities held in the Collateral Account
to the purchase price of the Qualifying Treasury Securities, which shall be deposited in the
Collateral Account, and to apply the excess of such Proceeds over the purchase price of the
Qualifying Treasury Securities to purchase Permitted Investments for deposit in the Collateral
Account.

     (c) On each Additional Distribution Date, if the Qualifying Treasury Securities shall have
been purchased and deposited in the Collateral Account, the Collateral Agent shall liquidate the
Permitted Investments in the Collateral Account and direct the Securities Intermediary to pay the
Proceeds to the Payment Account.

Section 6.06 Application of Proceeds in Settlement of Stock Purchase Contracts.

     (a) The Trust (acting through the Property Trustee) agrees to pay the purchase price under the
Stock Purchase Contracts on the Stock Purchase Date from the Proceeds of the Qualifying Treasury
Securities held in the Collateral Account and the Wachovia Deposit (or in the circumstances set
forth in the Stock Purchase Contract Agreement, by assignment thereof). Without receiving any
further instruction from the Property Trustee, the Collateral Agent shall, in settlement of such
Stock Purchase Contracts on the Stock Purchase Date, (i) instruct the Securities Intermediary to
remit Proceeds of the Qualifying Treasury Securities to the Company and (ii) instruct Wachovia
Bank, N.A. to pay the Proceeds of the Wachovia Deposit to the Company in an amount equal to the
excess of the Purchase Price over the amount of the Proceeds of the Qualifying Treasury Securities.

     (b) In the event of a Failed Remarketing, the Collateral Agent, for the benefit of the
Company, will, at the written instruction of the Company, deliver or dispose of the Pledged Notes
in accordance with the Company’s written instructions to satisfy in full, from any such disposition
or

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retention, the obligations of the Trust to pay the purchase price for the shares of Preferred
Stock to be issued under the Stock Purchase Contracts to the extent not paid from the Proceeds of
the Qualifying Treasury Securities held in the Collateral Account.

     (c) Thereafter, the Collateral Agent shall promptly remit the Proceeds of the Qualifying
Treasury Securities held in the Collateral Account in excess of the aggregate purchase price for
the shares of Preferred Stock to be issued under such Stock Purchase Contracts to the Property
Trustee.

ARTICLE VII

Voting Rights –– Notes

     Section 7.01 Voting Rights.

          The Property Trustee on behalf of the Trust may, subject to the Trust Agreement, exercise, or
refrain from exercising, any and all voting and other consensual rights pertaining to the Notes or
any part thereof for any purpose not inconsistent with the terms of this Agreement and in
accordance with the terms of the Stock Purchase Contract Agreement; provided that the Property
Trustee shall not exercise or shall not refrain from exercising such right with respect to any
Notes, if, in the reasonable judgment of the Property Trustee, such action would impair or
otherwise have a material adverse effect on the value of all or any of the Notes; and provided,
further, that the Property Trustee shall give the Company and the Collateral Agent or the Custodial
Agent, as the case may be, at least five Business Days’ prior written notice of the manner in which
it intends to exercise, or its reasons for refraining from exercising, any such right. Upon receipt
of any notices and other communications in respect of any Notes, including notice of any meeting at
which holders of the Notes are entitled to vote or solicitation of consents, waivers or proxies of
holders of the Notes, the Collateral Agent and the Custodial Agent shall use reasonable efforts to
send promptly to the Property Trustee such notice or communication, and as soon as reasonably
practicable after receipt of a written request therefor from the Property Trustee, execute and
deliver to the Property Trustee such proxies and other instruments in respect of such Notes (in
form and substance satisfactory to the Collateral Agent or the Custodial Agent, as the case may be)
as are prepared by the Company and delivered to the Property Trustee with respect to the Notes.

ARTICLE VIII

Rights and Remedies

     Section 8.01 Rights and Remedies of the Collateral Agent.

     (a) In addition to the rights and remedies specified in Section 6.06 or otherwise available at
law or in equity, after an event of default (as specified in Section 8.01(b)) hereunder, the
Collateral Agent shall have all of the rights and remedies with respect to the Collateral of a
secured party under the UCC (whether or not the UCC is in effect in the jurisdiction where the
rights and remedies are asserted) and the Trades Regulations and such additional rights and
remedies to which a secured party is entitled under the laws in effect in any jurisdiction where
any rights and remedies hereunder may be asserted. Without limiting the generality of the
foregoing, such remedies may include, to the extent permitted by applicable law, (1) retention of
the Pledged Notes or the Pledged Treasury Securities in full satisfaction of the Trust’s or the
Property Trustee’s obligations under the Stock Purchase Contracts and the Stock Purchase

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Contract Agreement or (2) sale of the Pledged Notes or the Pledged Treasury Securities in one
or more public or private sales.

     (b) Without limiting any rights or powers otherwise granted by this Agreement to the
Collateral Agent, in the event the Company is unable to make payments from amounts transferred or
transferable to the Company on account of the principal payments of any Pledged Treasury Securities
as provided in Article V, in satisfaction of the Obligations of the Trust under the Stock Purchase
Contracts, the inability to make such payments shall constitute an event of default hereunder and
the Collateral Agent shall have and may exercise, with reference to such Pledged Treasury
Securities any and all of the rights and remedies available to a secured party under the UCC and
the Trades Regulations after default by a debtor, and as otherwise granted herein or under any
other law.

     (c) Without limiting any rights or powers otherwise granted by this Agreement to the
Collateral Agent, the Collateral Agent is hereby irrevocably authorized to receive and collect all
payments of (i) the principal amount of, and any interest on, the Pledged Notes and (ii) the
principal amount of, and any interest on, the Pledged Treasury Securities, subject, in each case,
to the provisions of Article V, and as otherwise granted herein.

     (d) The Property Trustee agrees that, from time to time, upon the written request of the
Company or the Collateral Agent (acting upon the request of the Company), the Property Trustee
shall execute and deliver such further documents and do such other acts and things as the Company
or the Collateral Agent (acting upon the request of the Company) may reasonably request in order to
maintain the Pledge, and the perfection and priority thereof, and to confirm the rights of the
Collateral Agent hereunder, provided that, in no event shall the Property Trustee be responsible
for the preparation (other than execution upon the request of the Company) or filing of any
financing or continuation statements. In the absence of bad faith, the Property Trustee shall have
no liability to the Company or the Collateral Agent (acting upon the request of the Company) for
executing any documents or taking any such acts requested by the Company or the Collateral Agent
(acting upon the request of the Company) hereunder.

     Section 8.02 Remarketing; Contingent Exchange Elections by Holder of Normal WITS.

     (a) In the event a Holder of Normal WITS exercises its rights pursuant to Sections 5.14(a)(i),
(b) and (e) of the Trust Agreement to contingently exchange Normal WITS and Qualifying Treasury
Securities for Stripped WITS and Capital WITS in connection with any Remarketing by,

          (i) during the period that commences with the Collateral Agent’s and the Securities
Registrar’s opening of normal business hours on the tenth Business Day immediately preceding
a Remarketing Date and ending at 3:00 P.M., New York City time, on the second Business Day
immediately preceding such Remarketing Date, Transferring the Normal WITS that are the
subject of such Contingent Exchange Election to the Securities Registrar, accompanied by a
duly executed and completed Notice of Contingent Exchange Election; and

          (ii) not later than 3:00 P.M., New York City time, on the second Business Day
immediately preceding the Remarketing Date, depositing with the Collateral Agent the
treasury security that is the Qualifying Treasury Security on the date of deposit, in the
amount of $1,000 for each Normal WITS that is subject to the Contingent Exchange Election,

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the Collateral Agent shall, upon the Transfer and receipt of the duly executed and completed Notice
of Contingent Exchange Election pursuant to clause (i) and the deposit referred to in clause (ii),
notify the Remarketing Agent not later than 11:00 a.m., New York City time, on the Business Day
immediately preceding each Remarketing Date of the aggregate principal amount of Pledged Notes with
respect to which elections have been validly made pursuant to this Section 8.02(a).

     (b) Upon the receipt of notice from the Remarketing Agent that the Remarketing has been
Successful, on the Remarketing Settlement Date,

          (i) the Collateral Agent shall (A) instruct the Securities Intermediary to release from
the Pledge and deliver to the Remarketing Agent the Pledged Notes for which no election has
been validly made pursuant to Section 8.02(a), free and clear of the Company’s security
interest therein, against delivery by the Remarketing Agent of Qualifying Treasury
Securities purchased with the net proceeds of the sale of such Pledged Notes in the
Remarketing for deposit in the Collateral Account, and (B) instruct the Securities
Intermediary to release from the Pledge and Transfer to the Custody Account the Pledged
Notes for which an election has been validly made pursuant to Section 8.02(a), free and
clear of the Company’s security interest therein, against delivery by the Collateral Agent
to the Securities Intermediary for deposit into the Collateral Account of the Qualifying
Treasury Securities deposited in connection with such elections, and confirm to the Property
Trustee in writing that such instructions have been delivered;

          (ii) the Securities Intermediary will release the Pledged Notes from the Pledge,
Transfer such Pledged Notes, free and clear of the Pledge, (x) to the Remarketing Agent in
the case of Pledged Notes for which no election has been validly made pursuant to Section
8.02(a) and (y) to the Custody Account in the case of Pledged Notes for which an election
has been validly made pursuant to Section 8.02(a), deposit in the Collateral Account as
Pledged Treasury Securities the Qualifying Treasury Securities deposited with the Collateral
Agent pursuant to Section 8.02(a) or delivered by the Remarketing Agent and confirm to the
Property Trustee in writing that such release, Transfer and deposit have occurred;

          (iii) the Custodial Agent shall hold such Notes delivered to it pursuant to clause
(ii)(y) of this Section 8.02(b) in the Custody Account;

          (iv) the Securities Registrar, pursuant to the procedures provided for in Section 5.11
of the Trust Agreement dealing with increasing and decreasing the number of Trust Preferred
Securities evidenced by Book-Entry Trust Preferred Securities Certificates, shall cancel the
number of Normal WITS Transferred pursuant to Section 8.02(a) and deliver a Like Amount of
Capital WITS and Stripped WITS to the Holder, all by making appropriate notations on the
Book-Entry Trust Preferred Securities Certificates of the appropriate Class; and

          (v)
the Collateral Agent shall comply with the procedures
provided for in Section 2.4(c) of the First Supplemental Indenture dealing with decreasing
the Pledged Notes held by the Collateral Agent and increasing correspondingly the Global
Notes, unless such procedures have been performed by the Securities
Registrar under the Indenture as in said Section 2.4(c) provided.

     (c) Upon the receipt of notice from the Remarketing Agent that the Remarketing has not been
Successful:

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          (i) as soon as reasonably practicable after the Remarketing, the Collateral Agent will
deliver back to such Holder the Qualifying Treasury Securities delivered by such Holder to
the Collateral Agent pursuant to Section 8.02(a); and

          (ii) the Securities Registrar will disregard the delivery by such Holder of Normal WITS
pursuant to Section 8.02(a), with the consequence that such Holder shall be deemed to
continue to hold such Normal WITS.

     (d) The substitution of Qualifying Treasury Securities, or security entitlements thereto, for
financial assets held in the Collateral Account pursuant to this Section 8.02, shall not constitute
a novation of the security interest created hereby.

     Section 8.03 Contingent Disposition Election by Holder of Capital WITS.

     (a) In the event a Holder of Capital WITS exercises its rights pursuant to Sections
5.14(a)(ii), (b), (f) and (g) of the Trust Agreement to contingently dispose of Capital WITS in
connection with any Remarketing by, during the period that commences with the Custodial Agent’s and
Securities Registrar’s opening of normal business hours on the tenth Business Day immediately
preceding a Remarketing Date and ending at 3:00 P.M., New York City time, on the second Business
Day immediately preceding such Remarketing Date, Transferring the Capital WITS that are the subject
of such Contingent Disposition Election to the Securities Registrar and delivering a duly completed
Notice of Contingent Disposition Election to the Securities Registrar and Custodial Agent, the
Custodial Agent shall, upon such Transfer and receipt of such notice, notify the Remarketing Agent
not later than 11:00 a.m., New York City time, on the Business Day immediately preceding each
Remarketing Date of the aggregate principal amount of Custody Notes with respect to which elections
have been validly made pursuant to this Section 8.03(a).

     (b) If the Custodial Agent and the Securities Registrar are notified by the Remarketing Agent
that the related Remarketing is Successful:

          (i) the Securities Registrar, pursuant to the procedures provided for in Section 5.11
of the Trust Agreement dealing with increasing and decreasing the number of Trust Preferred
Securities evidenced by Book-Entry Trust Preferred Securities Certificates, shall cancel the
number of Capital WITS Transferred pursuant to Section 8.03(a);

          (ii) the Custodial Agent shall deliver Custody Notes in the aggregate principal amount
with respect to which elections have been validly made pursuant to Section 8.03(a) to the
Remarketing Agent on the Remarketing Settlement Date;

          (iii) on or promptly after the Remarketing Settlement Date, the Custodial Agent will
pay to the Property Trustee the net proceeds of the Custody Notes received from the
Remarketing Agent; and

          (iv)
the Custodial Agent shall comply with the procedures
provided for in Section 2.4(c) of the First Supplemental Indenture dealing with decreasing
the Custody Notes held by the Custodial Agent and increasing correspondingly the Global
Notes, unless such procedures have been performed by the Securities
Registrar under the Indenture as in said Section 2.4(c) provided.

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     (c) If the Custodial Agent is notified by the Property Trustee or the Remarketing Agent that
the related Remarketing is not Successful, the Securities Registrar will disregard the delivery by
such Holder of Capital WITS pursuant to Section 8.03(a), with the consequence that such Holder
shall continue to hold such Capital WITS.

     (d) None of the Collateral Agent, the Securities Intermediary, the Custodial Agent, the
Securities Registrar, the Property Trustee, the Company or the Remarketing Agent shall be obligated
in any case to provide funds to make payment upon tender of Notes for Remarketing.

ARTICLE IX

Representations and Warranties; Covenants

     Section 9.01 Representations and Warranties.

          The Property Trustee on behalf of the Trust hereby represents and warrants to the Collateral
Agent that:

     (a) the Property Trustee on behalf of the Trust has the power to grant a security interest in
and lien on the Collateral; and

     (b) the Property Trustee on behalf of the Trust is the sole beneficial owner of the Collateral
and, in the case of Collateral delivered in physical form, is the sole holder of such Collateral
and is the sole beneficial owner of, or has the right to Transfer, the Collateral it Transfers to
the Collateral Agent for credit to the Collateral Account, free and clear of any security interest,
lien, encumbrance, call, liability to pay money or other restriction other than the security
interest and lien granted under Article II hereof.

     Section 9.02 Covenants.

          The Property Trustee on behalf of the Trust hereby covenants to the Collateral Agent that for
so long as the Collateral remains subject to the Pledge:

     (a) it will not create or purport to create or allow to subsist any mortgage, charge, lien,
pledge or any other security interest whatsoever over the Collateral or any part of it other than
pursuant to this Agreement; and

     (b) it will not sell or otherwise dispose (or attempt to dispose) of the Collateral or any
part of it except in accordance with the terms of this Agreement.

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ARTICLE X

The Collateral Agent, The Custodial Agent, The Securities Intermediary

and The Securities Registrar

          It is hereby agreed as follows:

     Section 10.01 Appointment, Powers and Immunities.

          The Collateral Agent and the Securities Intermediary shall act as agents for the Company
hereunder with such powers as are specifically vested in the Collateral Agent or the Securities
Intermediary, as the case may be, by the terms of this Agreement and the Collateral Agent and the
Securities Intermediary owe no duties, fiduciary or otherwise, to any other Person except as
provided by applicable law. The Custodial Agent and the Securities Registrar shall act as agents
for the Property Trustee hereunder with such powers as are specifically vested in the Custodial
Agent or the Securities Registrar, as the case may be, by the terms of this Agreement and, in the
case of the Securities Registrar, the Trust Agreement and the Custodial Agent and the Securities
Registrar owe no duties, fiduciary or otherwise, to any other Person except as provided by
applicable law. The Collateral Agent, the Custodial Agent, the Securities Intermediary and the
Securities Registrar shall:

     (a) have no duties or responsibilities except those expressly set forth in this Agreement and
no implied covenants or obligations shall be inferred from this Agreement against the Collateral
Agent, the Custodial Agent, the Securities Intermediary and the Securities Registrar, nor shall the
Collateral Agent, the Custodial Agent, the Securities Intermediary and the Securities Registrar be
bound by the provisions of any agreement by any party hereto beyond the specific terms hereof;

     (b) not be responsible for any recitals contained in this Agreement, or in any certificate or
other document referred to or provided for in, or received by it under, this Agreement, the Trust
Preferred Securities or the Stock Purchase Contract Agreement, or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement (other than as against
the Collateral Agent, the Custodial Agent or the Securities Registrar, as the case may be), the
Trust Preferred Securities, any Collateral or the Stock Purchase Contract Agreement or any other
document referred to or provided for herein or therein or for any failure by the Company or any
other Person (except the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar, as the case may be) to perform any of its obligations thereunder or hereunder
or for the validity, perfection, enforceability, priority or, except as expressly required hereby,
maintenance of any security interest created hereunder;

     (c) not be required to initiate or conduct any litigation or collection efforts or proceedings
hereunder (except pursuant to directions furnished under Section 10.02, subject to Section 10.08);

     (d) not be responsible for the exercise of any of the rights and remedies (at the direction of
the Property Trustee or the Holders of the WITS, or otherwise) upon a default or event of default
under the indenture;

     (e) not be responsible for any action taken, suffered or omitted to be taken by it hereunder
or under any other document or instrument referred to or provided for herein or in connection
herewith or therewith, except for its own gross negligence or willful misconduct; and

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     (f) not be required to advise any party as to selling or retaining, or taking or refraining
from taking any action with respect to, any securities or other property deposited hereunder.

          Subject to the foregoing, during the term of this Agreement, the Collateral Agent, the
Securities Intermediary and the Custodial Agent shall take all reasonable action in connection with
the safekeeping and preservation of the Collateral and the Custody Notes hereunder as determined by
industry standards.

          No provision of this Agreement shall require the Collateral Agent, the Securities
Intermediary, the Custodial Agent or the Securities Registrar to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties hereunder. In no
event shall the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar be liable for any amount in excess of the Value of the Collateral and the
Custody Notes.

     Section 10.02 Instructions of the Company.

          The Company shall have the right, by one or more written instruments executed and delivered to
the Collateral Agent, to direct the time, method and place of conducting any proceeding for the
realization of any right or remedy available to the Collateral Agent, or of exercising any power
conferred on the Collateral Agent, or to direct the taking or refraining from taking of any action
authorized by this Agreement; provided that (i) such direction shall not conflict with the
provisions of any law or of this Agreement or involve the Collateral Agent in personal liability
and (ii) the Collateral Agent shall be indemnified to its satisfaction as provided herein. Nothing
contained in this Section 10.02 shall impair the right of the Collateral Agent in its discretion to
take any action or omit to take any action which it deems proper and which is not inconsistent with
such direction. None of the Collateral Agent, the Custodial Agent or the Securities Registrar has
any obligation or responsibility for determining the necessity of filing or to file or monitor the
filing of UCC financing statements or other UCC statements.

     Section 10.03 Reliance by Collateral Agent, Custodial Agent, Securities Intermediary and
Securities Registrar.

          Each of the Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Securities Registrar shall be entitled to rely conclusively upon any certification, order,
judgment, opinion, notice or other written or telephone communication (including, without
limitation, any thereof by e-mail or similar electronic means, telecopy, telex or facsimile)
believed by it to be genuine and to have been signed or sent by or on behalf of the proper Person
or Persons (without being required to determine the correctness of any fact stated therein). Each
of the Collateral Agent, the Securities Intermediary, the Custodial Agent and the Securities
Registrar may consult with legal counsel or other experts of its selection and the advice, opinions
and statements of such legal counsel and other experts and any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon. As to any matters not expressly provided for by
this Agreement, the Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Securities Registrar shall in all cases be fully protected in acting, suffering, or in refraining
from acting, hereunder in accordance with instructions given by the Company or the Property Trustee
in accordance with this Agreement. In the event any instructions are given (other than in writing
at the time of the execution of the Agreement), whether in writing, by telecopier or otherwise, the
Collateral Agent, the Securities Intermediary, the Custodial Agent and the Securities Registrar are
authorized to seek

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confirmation of such instructions by telephone call-back to the person or persons designated
on Schedule II hereto, and the Collateral Agent, the Securities Intermediary, the Custodial Agent
and the Securities Registrar may rely upon the confirmations of anyone purporting to be the person
or persons so designated. The persons and telephone numbers for call-backs may be changed only in
writing actually received and acknowledged by the Collateral Agent, the Securities Intermediary,
the Custodial Agent and the Securities Registrar.

          It is understood that the Collateral Agent, the Securities Intermediary, the Custodial Agent
and the Securities Registrar in any funds transfer may rely solely upon any account numbers or
similar identifying number provided by the Company or the Property Trustee to identify (i) the
beneficiary, (ii) the beneficiary’s bank, or (iii) an intermediary bank. The Collateral Agent, the
Securities Intermediary, the Custodial Agent and the Securities Registrar may apply any of the
deposited funds for any payment order it executes using any such identifying number, even where its
use may result in a Person other than the beneficiary being paid, or the transfer of funds to a
bank other than the beneficiary’s bank, or an intermediary bank, designated by the Company or the
Property Trustee; provided that payment is made to the account as specified by the Company or the
Property Trustee, as the case may be.

     Section 10.04 Certain Rights.

     (a) Whenever in the administration of the provisions of this Agreement the Collateral Agent,
the Securities Intermediary, the Custodial Agent or the Securities Registrar shall deem it
necessary or desirable that a matter be proved or established prior to taking or suffering or
omitting to take any action hereunder, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may, in the absence of bad faith on the part of the Collateral
Agent, the Securities Intermediary, the Custodial Agent or the Securities Registrar, be deemed to
be conclusively proved and established by a certificate signed by one of the Company’s officers,
and delivered to the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar and such certificate, in the absence of bad faith on the part of the
Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities Registrar,
shall be full warrant to the Collateral Agent, the Securities Intermediary, the Custodial Agent or
the Securities Registrar for any action taken, suffered or omitted by any of them under the
provisions of this Agreement in reliance thereon.

     (b) The Collateral Agent, the Securities Intermediary, the Custodial Agent and the Securities
Registrar shall not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
entitlement order, approval or other paper or document.

     (c) None of the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar shall be responsible or liable for any failure or delay in the performance of
its obligations under this Agreement arising out of or caused, directly or indirectly, by
circumstances beyond its reasonable control, including, without limitation, acts of God,
earthquakes, fires, floods, terrorism, wars, civil or military disturbances, sabotage, epidemics,
riots, interruptions, loss or malfunctions of utilities, computer (hardware or software) or
communication services, accidents, labor disputes, acts of civil or military authority and
governmental action.

     (d) The Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities
Registrar may request that the Company and the Property Trustee each deliver an Officers’
Certificate

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setting forth the names of individuals and/or titles of officers authorized at such time to
take specified actions pursuant to this Agreement, which Officers’ Certificate may be signed by any
person authorized to sign an Officers’ Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded.

     (e) The permissive right of the Collateral Agent, the Securities Intermediary, the Custodial
Agent and the Securities Registrar to take or refrain from taking any actions enumerated in this
Agreement shall not be construed as a duty;

     (f) None of the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar shall be liable for any error of judgment made in good faith, unless it shall
have been grossly negligent in ascertaining the pertinent facts.

     (g) The Collateral Agent, the Securities Intermediary, the Custodial Agent and the Securities
Registrar shall have no liability whatsoever for the action or inaction of any Clearing Agency or
any book-entry system thereof. In no event shall any Clearing Agency or any book-entry system
thereof be deemed an agent or subcustodian of the Collateral Agent, the Securities Intermediary,
the Custodial Agent or the Securities Registrar. Unless and until Definitive Trust Preferred
Securities Certificates have been issued to Owners pursuant to Section 5.15 of the Trust Agreement,
the Collateral Agent, the Securities Intermediary, the Custodial Agent and the Securities Registrar
shall be entitled to deal with the Clearing Agency for all purposes of this Agreement (including
the receipt or transfer of any funds hereunder) as the Holder of the Trust Preferred Securities,
shall have no obligation to the Owners and the rights of the Owners shall be exercised only through
the Clearing Agency and shall be limited to those established by law and agreement between such
Owners and the Trust or the Clearing Agency Participants. The provisions of Sections 5.6 and 5.11
of the Trust Agreement are hereby made applicable to the Collateral Agent, the Securities
Intermediary, the Custodial Agent and the Securities Registrar, mutatis mutandis, as if they were
the Securities Registrar as referred to therein.

     (h) The Securities Registrar shall also have all of the rights, privileges, protections,
immunities and benefits given to the Securities Registrar under the Trust Agreement, including its
right to be indemnified. In the event of any conflict between any of the provisions of the Trust
Agreement and this Agreement with respect to any of such rights, privileges, protections,
immunities and benefits, the provisions of this Agreement shall govern and control and supersede
such other provisions.

     Section 10.05 Merger, Conversion, Consolidation or Succession to Business.

          Any Person into which the Collateral Agent, the Securities Intermediary, the Custodial Agent
and the Securities Registrar may be merged or converted or with which it may be consolidated, or
any Person resulting from any merger, conversion or consolidation to which the Collateral Agent,
the Securities Intermediary, the Custodial Agent and the Securities Registrar shall be a party, or
any Person succeeding to all or substantially all of the corporate trust business of the Collateral
Agent, the Securities Intermediary, the Custodial Agent or the Securities Registrar shall be the
successor of the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar hereunder without the execution or filing of any paper with any party hereto
or any further act on the part of any of the parties hereto except where an instrument of transfer
or assignment is required by law to effect such succession, anything herein to the contrary
notwithstanding.

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     Section 10.06 Rights in Other Capacities.

          The Collateral Agent, the Securities Intermediary, the Custodial Agent and the Securities
#Registrar and their Affiliates may (without having to account therefor to the Company) accept
deposits from, lend money to, make their investments in and generally engage in any kind of
banking, trust or other business with the Trust, any other Person interested herein and any Holder
of Trust Preferred Securities (and any of their respective subsidiaries or Affiliates) as if it
were not acting as the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar, as the case may be, and the Collateral Agent, the Securities Intermediary,
the Custodial Agent, the Securities Registrar and their Affiliates may accept fees and other
consideration from the Trust, any other Person interested herein and any Holder of Trust Preferred
Securities without having to account for the same to the Company; provided that each of the
Securities Registrar, the Securities Intermediary, the Custodial Agent and the Collateral Agent
covenants and agrees with the Company that it shall not accept, receive or permit there to be
created in favor of itself and shall take no affirmative action to permit there to be created in
favor of any other Person, any security interest, lien or other encumbrance of any kind in or upon
the Collateral other than the lien created by the Pledge.

     Section 10.07 Non-reliance on Collateral Agent, the Securities Intermediary, the Custodial
Agent and Securities Registrar.

          None of the Securities Registrar, the Securities Intermediary, the Custodial Agent or the
Collateral Agent shall be required to keep itself informed as to the performance or observance by
the Trust or any Holder of Trust Preferred Securities of this Agreement, the Stock Purchase
Contract Agreement, the Trust Preferred Securities or any other document referred to or provided
for herein or therein or in connection herewith or therewith or to inspect the properties or books
of the Trust or any Holder of Trust Preferred Securities. None of the Collateral Agent, the
Securities Intermediary, the Custodial Agent or the Securities Registrar shall have any duty or
responsibility to provide the Company or the Property Trustee with any credit or other information
concerning the affairs, financial condition or business of the Trust or the Company or any Holder
of Trust Preferred Securities (or any of their respective Affiliates) that may come into the
possession of the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar or any of their respective Affiliates.

     Section 10.08 Compensation and Indemnity.

          The Company agrees to:

     (a) pay the Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Securities Registrar from time to time such compensation as shall be agreed in writing between the
Company and the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar, as the case may be, for all services rendered by them hereunder;

     (b) indemnify and hold harmless the Collateral Agent, the Securities Intermediary, the
Custodial Agent, the Securities Registrar and each of their respective directors, officers, agents
and employees (collectively, the “Indemnitees”), from and against any and all claims, liabilities,
losses, damages, fines, penalties and expenses (including reasonable fees and expenses of counsel)
and taxes (other than those based upon, determined by or measured by the income of the Collateral
Agent, the Custodial Agent and the Securities Registrar) (collectively, “Losses” and individually,
a “Loss”) that may

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be imposed on, incurred by, or asserted against, the Indemnitees or any of them for or in
respect of the Collateral Agent’s, the Securities Intermediary’s, the Custodial Agent’s and the
Securities Registrar’s (i) execution and delivery of this Agreement and (ii) following any
instructions or other directions upon which either the Collateral Agent, the Securities
Intermediary, the Custodial Agent or the Securities Registrar is entitled to rely pursuant to the
terms of this Agreement; and

     (c) in addition to and not in limitation of clause (b) immediately above, indemnify and hold
the Indemnitees and each of them harmless from and against any and all Losses that may be imposed
on, incurred by or asserted against, the Indemnitees or any of them in connection with or arising
out of the Collateral Agent’s, the Securities Intermediary’s, the Custodial Agent’s or the
Securities Registrar’s acceptance or performance of its powers and duties under this Agreement,
provided that the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar has not acted with gross negligence or engaged in willful misconduct with
respect to the specific Loss against which indemnification is sought.

          The provisions of this Section and Section 12.07 shall survive the resignation or removal of
the Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities Registrar
and the termination of this Agreement.

     Section 10.09 Failure to Act.

          In the event of (i) uncertainty on the part of the Collateral Agent, the Securities
Intermediary, the Custodial Agent or the Securities Registrar as to the application of any
provision in this Agreement or any other agreement relating to the transaction contemplated hereby
or (ii) any ambiguity in the provisions of this Agreement or any dispute between or conflicting
claims by or among the parties hereto or any other Person with respect to any funds or property
deposited hereunder, such Collateral Agent, Securities Intermediary, Custodial Agent or Securities
Registrar in the case of (i) or each of the Collateral Agent, the Securities Intermediary, the
Custodial Agent and the Securities Registrar in the case of (ii) shall be entitled, at its sole
option and after prompt notice to the Company and the Trust, to refrain from taking any action in
respect of such uncertainty or ambiguous provision or to refuse to comply with any and all claims,
demands or instructions with respect to such property or funds so long as such dispute or conflict
shall continue, and the Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Securities Registrar shall not be or become liable in any way to any of the parties hereto for its
so refraining or refusal to comply with such conflicting claims, demands or instructions. The
Collateral Agent, the Securities Intermediary, the Custodial Agent and the Securities Registrar
shall be entitled to refuse to act until either:

     (a) such ambiguous provisions or conflicting or adverse claims or demands, as the case may be,
shall have been finally determined by a court of competent jurisdiction or settled by agreement
between the conflicting parties as evidenced in a writing satisfactory to the Collateral Agent, the
Securities Intermediary, the Custodial Agent or the Securities Registrar; or

     (b) the Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities
Registrar shall have received security or an indemnity satisfactory to it sufficient to save it
harmless from and against any and all loss, liability or reasonable out-of-pocket expense which it
may incur by reason of its acting.

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          The Collateral Agent, the Securities Intermediary, the Custodial Agent and the Securities
Registrar may in addition elect to commence an interpleader action or seek other judicial relief or
orders as the Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities
Registrar may deem necessary. Notwithstanding anything contained herein to the contrary, none of
the Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities Registrar
shall be required to take any action that is in its opinion contrary to law or to the terms of this
Agreement, or which would in its opinion subject it or any of its officers, employees or directors
to liability.

     Section 10.10 Resignation of Collateral Agent, the Securities Intermediary, the Custodial
Agent and Securities Registrar.

                   Subject to the appointment and acceptance of a successor Collateral Agent, Securities
Intermediary, Custodial Agent and Securities Registrar as provided below:

          (i) the Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Securities Registrar may resign at any time by giving notice thereof to the Company and the
Property Trustee;

          (ii) the Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Securities Registrar may be removed at any time by the Company; and

          (iii) if the Collateral Agent, the Securities Intermediary, the Custodial Agent or the
Securities Registrar fails to perform any of its material obligations hereunder in any
material respect for a period of not less than 20 days after receiving written notice of
such failure by the Property Trustee and such failure shall be continuing, the Collateral
Agent, the Securities Intermediary, the Custodial Agent and the Securities Registrar may be
removed by the Property Trustee or the Administrative Trustees;

provided that any Person at any time acting as Collateral Agent, Securities Intermediary, Custodial
Agent or Securities Registrar may not resign or be removed in any one of those capacities without
the consent of each party to this Collateral Agreement unless it resigns or is removed in all such
capacities in which it is then acting. The Property Trustee shall promptly notify the Company of
any removal of the Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Securities Registrar pursuant to clause (iii) of this Section 10.10. Upon any such resignation or
removal, the Company shall have the right to appoint a successor Collateral Agent, Securities
Intermediary, Custodial Agent or Securities Registrar, as the case may be, which shall not be an
Affiliate of the Trust. If no successor Collateral Agent, Securities Intermediary, Custodial Agent
or Securities Registrar shall have been so appointed and shall have accepted such appointment
within 30 days after the retiring Collateral Agent’s, Securities Intermediary’s, Custodial Agent’s
or Securities Registrar’s giving of notice of resignation or the Company’s or the Property
Trustee’s giving notice of such removal, then the retiring or removed Collateral Agent, Securities
Intermediary, Custodial Agent or Securities Registrar may petition any court of competent
jurisdiction, at the expense of the Company, for the appointment of a successor Collateral Agent,
Securities Intermediary, Custodial Agent or Securities Registrar. The Collateral Agent, the
Securities Intermediary, the Custodial Agent and the Securities Registrar shall each be a bank or a
national banking association which has an office (or an agency office) in New York City with a
combined capital and surplus of at least $50,000,000. Upon the acceptance of any appointment as
Collateral Agent, Securities Intermediary, Custodial Agent or Securities Registrar hereunder by a
successor Collateral

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Agent, Securities Intermediary, Custodial Agent or Securities Registrar, as the case may be, such
successor Collateral Agent, Securities Intermediary, Custodial Agent or Securities Registrar, as
the case may be, shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Collateral Agent, Securities Intermediary, Custodial Agent or
Securities Registrar, as the case may be, and the retiring Collateral Agent, Securities
Intermediary, Custodial Agent or Securities Registrar, as the case may be, shall take all
appropriate action, subject to payment of any amounts then due and payable to it hereunder, to
transfer any money and property held by it hereunder (including the Collateral) to such successor.
The retiring Collateral Agent, Securities Intermediary, Custodial Agent or Securities Registrar
shall, upon such succession, be discharged from its duties and obligations as Collateral Agent,
Securities Intermediary, Custodial Agent or Securities Registrar hereunder. After any retiring
Collateral Agent’s, Securities Intermediary’s, Custodial Agent’s or Securities Registrar’s
resignation hereunder as Collateral Agent, Securities Intermediary, Custodial Agent or Securities
Registrar, the provisions of this Article X shall continue in effect for its benefit in respect of
any actions taken or omitted to be taken by it while it was acting as the Collateral Agent,
Securities Intermediary, Custodial Agent or Securities Registrar. Any resignation or removal of
the Collateral Agent, Custodial Agent or Securities Registrar hereunder, at a time when such Person
is acting as the Collateral Agent, Securities Intermediary, Custodial Agent or Securities
Registrar, shall be deemed for all purposes of this Agreement as the simultaneous resignation or
removal of the Collateral Agent, Securities Registrar or Custodial Agent, as the case may be.

     Section 10.11 Right to Appoint Agent or Advisor.

          The Collateral Agent shall have the right to appoint agents or advisors in connection with any
of its duties hereunder, and the Collateral Agent shall not be liable for any action taken,
suffered or omitted by, or in reliance upon the advice of, such agents or advisors selected in good
faith. The appointment of agents (which, for the purpose of this sentence, excludes legal counsel)
pursuant to Section 10.11 shall be subject to prior written consent of the Company, which consent
shall not be unreasonably withheld.

     Section 10.12 Survival.

          The provisions of this Article X and Section 12.06 shall survive termination of this Agreement
and the resignation or removal of the Collateral Agent, the Securities Intermediary, the Custodial
Agent or the Securities Registrar.

     Section 10.13 Exculpation.

          Anything contained in this Agreement to the contrary notwithstanding, in no event shall the
Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities Registrar or
their officers, directors, employees or agents be liable under this Agreement for indirect,
special, punitive, or consequential loss or damage of any kind whatsoever, including, but not
limited to, lost profits, whether or not the likelihood of such loss or damage was known to the
Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities Registrar, or
any of them and regardless of the form of action.

Collateral Agreement

-29-

 

     Section 10.14 Statements and Confirmations.

          The Securities Intermediary will, as soon as reasonably practicable after receipt of same,
send copies of all statements, confirmations and other correspondence concerning the Collateral
Account and any financial assets credited thereto simultaneously to each of the Property Trustee
and the Collateral Agent at their addresses for notices under this Agreement. The Custodial Agent
will, as soon as reasonably practicable after receipt of same, send copies of all statements,
confirmations and other correspondence concerning the Custody Account and any financial assets
credited thereto to the Property Trustee at its address for notices under this Agreement.

     Section 10.15 Tax Allocations.

          The Administrative Trustees shall report all items of income, gain, expense and loss
recognized in the Collateral Account and the Custody Account, to the extent such reporting is
required by law, to the Internal Revenue Service authorities in the manner required by law. None of
the Securities Intermediary, the Collateral Agent, the Custodial Agent, the Securities Registrar or
the Property Trustee shall have any tax reporting duties hereunder.

ARTICLE XI

Amendment

     Section 11.01 Amendment.

          The Company, when duly authorized by resolution of its Board of Directors, the Collateral
Agent, the Securities Intermediary, the Custodial Agent, the Securities Registrar and the Property
Trustee on behalf of the Trust, at any time and from time to time, may amend this Agreement by a
written instrument, in form satisfactory to the Company, the Collateral Agent, the Securities
Intermediary, the Custodial Agent, the Securities Registrar and the Property Trustee, as provided
under Section 6.1(c) of the Trust Agreement. Notwithstanding the foregoing, any amendment to the
forms of WITS certificates attached as exhibits hereto shall be effective upon written notice
thereof from the Company without the consent of the Collateral Agent, the Securities Intermediary,
the Custodial Agent or the Securities Registrar setting forth the revised form or forms and
confirming that such revised form or forms have been duly adopted in accordance with the Trust
Agreement; provided that no such amendment that adversely affects the rights, duties or immunities
of the Collateral Agent, the Securities Intermediary, the Custodial Agent or the Securities
Registrar shall be effective against such adversely affected party without its consent.

     Section 11.02 Execution of Amendments.

          In executing any amendment permitted by this Article XI, the Collateral Agent, the Securities
Intermediary, the Custodial Agent, the Securities Registrar and the Property Trustee shall be
entitled to receive and (subject to Section 8.3 of the Trust Agreement with respect to the Property
Trustee) shall be fully authorized and protected in relying upon, an Opinion of Counsel and an
Officers’ Certificate of the Company to the effect that all of the requirements of Section 6.1(c)
of the Trust Agreement in respect of such amendment have been met and/or satisfied. The Collateral
Agent, the Securities Intermediary, the Custodial Agent, the Securities Registrar and the Property
Trustee may, but shall not be

Collateral Agreement

-30-

 

obligated to, enter into any such amendment which affects their own respective rights, duties
or immunities under this Agreement or otherwise.

ARTICLE XII

Miscellaneous

     Section 12.01 No Waiver.

          No failure on the part of the Company, the Collateral Agent, the Securities Intermediary, the
Custodial Agent, the Securities Registrar or any of their respective agents to exercise, and no
course of dealing with respect to, and no delay in exercising, any right, power or remedy hereunder
shall operate a waiver thereof; nor shall any single or partial exercise by the Company, the
Securities Intermediary, the Collateral Agent, the Custodial Agent, the Securities Registrar or any
of their respective agents of any right, power or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. The remedies herein are
cumulative and are not exclusive of any remedies provided by law.

     Section 12.02 Governing Law; Submission to Jurisdiction; Waiver of Trial by Jury.

          This Agreement shall be governed by and construed in accordance with the laws of the State of
New York. The Company, the Collateral Agent, the Securities Intermediary, the Custodial Agent, the
Securities Registrar and the Trust hereby submit to the nonexclusive jurisdiction of the United
States District Court for the Southern District of New York and of any New York state court sitting
in New York County for the purposes of all legal proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby. The Company, the Collateral Agent, the
Securities Intermediary, the Custodial Agent, the Securities Registrar and the Trust irrevocably
waive, to the fullest extent permitted by applicable law, any objection that they may now or
hereafter have to the laying of the venue of any such proceeding brought in such a court and any
claim that any such proceeding brought in such a court has been brought in an inconvenient forum.
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES IRREVOCABLY AND
UNCONDITIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 12.03 Notices.

          All notices, requests, consents and other communications provided for herein (including,
without limitation, any modifications of, or waivers or consents under, this Agreement) shall be
given or made in writing (including, without limitation, by telecopy) delivered to the intended
recipient at the “Address for Notices” specified below its name on the signature pages hereof or,
as to any party, at such other address as shall be designated by such party in a notice to the
other parties. Except as otherwise provided in this Agreement, all such communications shall be
deemed to have been duly given when transmitted by telecopy or personally delivered or, in the case
of a mailed notice, upon receipt, in each case given or addressed as aforesaid.

Collateral Agreement

-31-

 

     Section 12.04 Successors and Assigns.

          This Agreement shall be binding upon and inure to the benefit of the respective successors of
the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary, the Securities
Registrar and the Trust.

          Nothing in this Agreement, express or implied, shall give any Person, other than the parties
hereto and their permitted successors, any benefit or any legal or equitable right, remedy or claim
under this Agreement.

     Section 12.05 Severability.

          If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest
extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in
such jurisdiction and shall be liberally construed in order to carry out the intentions of the
parties hereto as nearly as may be possible and (ii) the invalidity or unenforceability of any
provision hereof in any jurisdiction shall not affect the validity or enforceability of such
provision in any other jurisdiction.

     Section 12.06 Expenses, Etc.

          The Company agrees to reimburse the Collateral Agent, the Securities Intermediary, the
Custodial Agent and the Securities Registrar for:

     (a) all reasonable costs and expenses of the Collateral Agent, the Securities Intermediary,
the Custodial Agent and the Securities Registrar (including, without limitation, the reasonable
fees and expenses of counsel to the Collateral Agent, the Securities Intermediary, the Custodial
Agent and the Securities Registrar), in connection with (i) the negotiation, preparation, execution
and delivery or performance of this Agreement and (ii) any modification, supplement or waiver of
any of the terms of this Agreement;

     (b) all reasonable costs and expenses of the Collateral Agent, the Securities Intermediary,
the Custodial Agent and the Securities Registrar (including, without limitation, reasonable fees
and expenses of counsel) in connection with (i) any enforcement or proceedings resulting or
incurred in connection with causing the Trust or the Property Trustee to satisfy its obligations
under the Stock Purchase Contracts or the Stock Purchase Contract Agreement and (ii) the
enforcement of this Section 12.06;

     (c) all transfer, stamp, documentary or other similar taxes, assessments or charges levied by
any governmental or revenue authority in respect of this Agreement or any other document referred
to herein and all costs, expenses, taxes, assessments and, subject to Section 10.01(b) and the last
sentence of Section 10.02, other charges incurred in connection with any filing, registration,
recording or perfection of any security interest contemplated hereby;

     (d) all reasonable fees and expenses of any agent or advisor appointed by the Collateral Agent
and (except in the case of legal counsel) consented to by the Company under Section 10.11; and

Collateral Agreement

-32-

 

     (e) any other out-of-pocket costs and expenses reasonably incurred by the Collateral Agent,
the Securities Intermediary, the Custodial Agent and the Securities Registrar in connection with
the performance of their duties hereunder.

     Section 12.07 Security Interest Absolute.

          All rights of the Collateral Agent and security interests hereunder, and all obligations of
the Trust from time to time hereunder, shall be absolute and unconditional irrespective of:

     (a) any lack of validity or enforceability of any provision of the Stock Purchase Contracts or
any other agreement or instrument relating thereto;

     (b) any change in the time, manner or place of payment of, or any other term of, or any
increase in the amount of, all or any of the Obligations under the Stock Purchase Contracts, or any
other amendment or waiver of any term of, or any consent to any departure from any requirement of,
the Stock Purchase Contract Agreement or any Stock Purchase Contract or any other agreement or
instrument relating thereto; or

     (c) any other circumstance which might otherwise constitute a defense available to, or
discharge of, a borrower, a guarantor or a pledgor.

     Section 12.08 Notice of Termination Event.

          Upon the occurrence of a Termination Event, the Company shall deliver written notice to the
Property Trustee, the Collateral Agent, the Custodial Agent and the Securities Registrar. Upon the
written request of the Collateral Agent or the Securities Registrar, the Company shall inform such
party whether or not a Termination Event has occurred.

     Section 12.09 Incorporation by Reference.

          In connection with its execution and performance hereunder the Property Trustee is entitled to
all rights, privileges, protections, immunities, benefits and indemnities provided to it under the
Trust Agreement.

* * * *

          This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

Collateral Agreement

-33-

 

          In Witness Whereof, the parties hereto have caused this Agreement to be duly executed
as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Wachovia Corporation	 	Wachovia Capital Trust III	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	 	 	By:	 	U.S. Bank National
Association, not in its individual capacity but
solely as Property Trustee	 	 
	 
	 

	 	/s/ James F. Burr
	 	 	 	 
	 	 	 	 
	 

	 	 

  Name: James F. Burr
	 	 	 	By:
	 	/s/ Paul D. Allen	 	 
	 

	 	  
	 	 	 	 	 	 

	 	 
	 

	 	  Title: Senior Vice
President	 	 	 	 	 	  Name: Paul D. Allen	 	 
	 

	 	 	 	 	 	 	 	  Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address for Notices:	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Wachovia Corporation	 	U.S. Bank National Association	 	 
	301 South College Street	 	     as Property Trustee of	 	 
	Charlotte, North Carolina 28288	 	     Wachovia Capital Trust III	 	 
	Attention: General Counsel	 	U.S. Bank National Association	 	 
	Facsimile: 704-374-3425	 	300 Delaware Avenue, 9th Floor	 	 
	 	 	 	 	Wilmington, DE 19801	 	 
	 	 	 	 	Attention: Corporate Trust Services Division	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	JPMorgan Chase Bank, National

Association,	 	 	 	 	 	 	 	 
	 

	 	as Collateral Agent,	 	 	 	 	 	 	 	 
	 

	 	Securities Intermediary,	 	 	 	 	 	 	 	 
	 

	 	Custodial Agent and	 	 	 	 	 	 	 	 
	 

	 	Securities Registrar	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Joanne Adamis	 	 	 	 	 	 	 	 
	 

	 	 

  Name: J. Adamis
	 	 	 	 	 	 	 	 
	 

	 	  Title: Vice President	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address for Notices:	 	 	 	 	 	 	 	 
	 
	JPMorgan Chase Bank,	 	 	 	 	 	 	 	 
	     National Association	 	 	 	 	 	 	 	 
	4 New York Plaza, Floor 15	 	 	 	 	 	 	 	 
	New York, New York 10004	 	 	 	 	 	 	 	 
	Attention: Worldwide
Securities Services 	 	 	 	 	 	 	 	 
	Facsimile: (212) 623-6167	 	 	 	 	 	 	 	 

Collateral Agreement

 

 

Exhibit A

Form of Normal WITS Certificate

(FORM OF FACE OF NORMAL WITS CERTIFICATE)

           {For
inclusion in Global Certificates only — THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN
THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”) OR ITS NOMINEE. THIS CERTIFICATE IS EXCHANGEABLE FOR
CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT AND NO TRANSFER OF THIS CERTIFICATE
(OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.}

	 	 	 
	No.                     

	 	Number of Normal WITS:                                         
	 

	 	                     CUSIP No.                                         

WACHOVIA
CAPITAL TRUST III

Collateral Agreement

 

 

Exhibit A

NORMAL
WITS

          This Normal WITS Certificate certifies that {                     } is the
registered Holder of the number of Normal WITS set forth above
{for inclusion in
Global
Certificates only — or such other number of Normal WITS reflected in the Schedule of Increases and
Decreases in the Global Certificate attached hereto}. Each Normal WITS represents a beneficial
interest in Wachovia Capital Trust III (the “Trust”), having a Liquidation Amount of $1,000. The
Normal WITS are transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in proper form for
transfer as provided in Section 5.4 of the Trust Agreement (as defined below). The designations,
rights, privileges, restrictions, preferences and other terms and provisions of the Normal WITS are
set forth in, and this certificate and the Normal WITS represented hereby are issued and shall in
all respects be subject to the terms and provisions of the Amended and Restated Trust Agreement of
the Trust, dated as of February 1, 2006, as the same may be amended and restated from time to time
(the “Trust Agreement”), including the designation of the terms of the Normal WITS as set forth
therein. The Holder is entitled to the benefits of the Guarantee Agreement entered into by the
Depositor and U.S. Bank National Association, as Guarantee Trustee, dated as of February 1, 2006
(the “Guarantee Agreement”). All capitalized terms used herein that are defined in the Trust
Agreement have the meaning set forth therein.

Collateral Agreement

 

 

Exhibit A

          Section 5.13(b) of the Trust Agreement provides for the procedures pursuant to which Holders
of Normal WITS may exchange Normal WITS and Qualifying Treasury Securities for Stripped WITS and
Capital WITS and Section 5.14(d) of the Trust Agreement provides for the procedures pursuant to
which Holders of Normal WITS may elect to exchange Normal WITS and Qualifying Treasury Securities
for Stripped WITS and Capital WITS in the event a Remarketing is Successful. The forms of
Stripping Notice and Request and Notice of Contingent Exchange Election required to be delivered in
connection therewith are printed on the reverse hereof.

          A copy of each of the Trust Agreement and the Guarantee Agreement is available for inspection
at the offices of the Property Trustee.

          Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled
to the benefits thereof.

          IN WITNESS WHEREOF, the Trust acting through one of its Administrative Trustees has executed
this Normal WITS Certificate.

	 	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL TRUST III, acting through one of its Administrative Trustees	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 

Date:                                                              

Collateral Agreement

 

 

Exhibit A

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:

	 	                     Custodian                      (cust)(minor)
Under Uniform Gifts to Minors Act of                                          
	 
	 	 
	TENANT:

	 	as tenants by the entireties
	 
	 	 
	JT TEN:

	 	as joint tenants with right of survivorship and not as
tenants in common

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

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

(Please insert Social Security or Taxpayer I.D.

or other Identifying Number of Assignee)

(Please print or type name and address including Postal Zip Code of Assignee)

the within Normal WITS Certificates and all rights thereunder, hereby irrevocably constituting and
appointing attorney                     , to transfer said Normal WITS Certificates on the books of
Wachovia Corporation, with full power of substitution in the premises.

	 	 	 
	Dated:

	 	Signature
	 
	 	 
	 

	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Normal WITS Certificates in every particular,
without alteration or enlargement or any change whatsoever.
	 
	 	 
	Signature Guarantee:
	 	 

Collateral Agreement

 

 

Exhibit A

FORM OF STRIPPING NOTICE AND REQUEST

JPMorgan Chase Bank, National Association,

     as Collateral Agent and Securities Registrar

4 New York Plaza, Floor 15

New York, New York 10004

     Re: Normal WITS of Wachovia Capital Trust III

          The undersigned Holder hereby notifies you pursuant to Section 5.13(b) of the Amended and
Restated Trust Agreement, dated as of February 1, 2006, of Wachovia Capital Trust III (the “Trust
Agreement”), among Wachovia Corporation, as Depositor, U.S. Bank National Association, as Property
Trustee, U.S. Bank Trust National Association, as Delaware Trustee, the Administrative Trustees (as
named therein) and the several Holders of the Trust Securities, and Section 6.02 of the Collateral
Agreement, that the Holder:

     is depositing the appropriate Qualifying Treasury Securities with JPMorgan Chase Bank,
as Collateral Agent, for deposit in the Collateral Account,

     is transferring the related Normal WITS to the Securities Registrar in connection with
an Exchange of such Normal WITS and Qualifying Treasury Securities for a Like Amount of
Stripped WITS and Capital WITS, and

     hereby requests the delivery to the Holder of such Stripped WITS and Capital WITS.

All capitalized terms used herein that are defined in the Trust Agreement have the meaning set
forth therein. The undersigned Holder has paid all applicable fees and expenses relating to such
Exchange.

	 	 	 
	Date:
	 	 
	 
	 	 
	 

	 	Signature Guarantee:
	 
	 	 
	Please print name and
address of
Registered Holder:
	 	 
	 
	 	 
	Name

	 	Social Security or other Taxpayer Identification Number, if any
	 
	 	 
	Address
	 	 

Collateral Agreement

 

 

Exhibit A

FORM OF NOTICE OF CONTINGENT EXCHANGE ELECTION

JPMorgan Chase Bank, National Association,

     as Collateral Agent and Securities Registrar

4 New York Plaza, Floor 15

New York, New York 10004

     Re: Normal WITS of Wachovia Capital Trust III

          The undersigned Holder hereby notifies you pursuant to Section 5.14(d) of the Amended and
Restated Trust Agreement, dated as of February 1, 2006, of Wachovia Capital Trust III (the “Trust
Agreement”), among Wachovia Corporation, as Depositor, U.S. Bank National Association, as Property
Trustee, U.S. Bank Trust National Association, as Delaware Trustee, the Administrative Trustees (as
named therein) and the several Holders of the Trust Securities, and Section 8.02 of the Collateral
Agreement, that the Holder:

     is depositing the appropriate Qualifying Treasury Securities with JPMorgan Chase Bank,
as Collateral Agent, for deposit in the Collateral Account,

     is transferring the related Normal WITS to the Securities Registrar in connection with
a Contingent Exchange Election of such Normal WITS and Qualifying Treasury Securities for a
Like Amount of Stripped WITS and Capital WITS, and

     hereby requests the delivery to the Holder of such Stripped WITS and Capital WITS if
the upcoming Remarketing is Successful, it being understood that if such Remarketing is not
Successful, this Notice shall be disregarded and the Collateral Agent shall return such
Qualifying Treasury Securities to the Holder promptly after the Remarketing.

All capitalized terms used herein that are defined in the Trust Agreement have the meaning set
forth therein. The undersigned Holder has paid all applicable fees and expenses relating to such
Contingent Exchange Election.

	 	 	 
	Date:
	 	 
	 
	 	 
	 

	 	Signature Guarantee:
	 
	 	 
	Please print name and address of
Registered Holder:
	 	 
	 
	 	 
	Name

	 	Social Security or other Taxpayer

Identification Number, if any
	 
	 	 
	Address
	 	 

Collateral Agreement

 

 

Exhibit A

{TO BE ATTACHED TO GLOBAL CERTIFICATES}

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL CERTIFICATE

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

	 	 	 	 	 	 	 
	 
	 	 	 	Number of Normal	 	 
	Amount of increase in
	 	Amount of decrease in
	 	WITS evidenced by this	 	 
	Number of Normal
	 	Number of Normal
	 	Global Certificate
	 	Signature of
	WITS evidenced by
	 	WITS evidenced by this
	 	following such decrease
	 	authorized signatory
	this Global Certificate
	 	Global Certificate
	 	or increase
	 	of Securities  Registrar
	 
	 	 
	 	 
	 	 

Collateral Agreement

 

 

Exhibit B

Form of Stripped WITS Certificate

(FORM OF FACE OF STRIPPED WITS CERTIFICATE)

          {For
inclusion in Global Certificates only — THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN
THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”) OR ITS NOMINEE. THIS CERTIFICATE IS EXCHANGEABLE FOR
CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT AND NO TRANSFER OF THIS CERTIFICATE
(OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.}

	 	 	 
	No.                     

	 	Number of Stripped WITS:                                         
	 

	 	                    
CUSIP No.
                                            

WACHOVIA CAPITAL TRUST III

Collateral Agreement

 

 

Exhibit B

STRIPPED WITS

          This Stripped WITS Certificate certifies that {                     } is the
registered Holder of the number of Stripped WITS set forth above {for inclusion in Global
Certificates only — or such other number of Stripped WITS reflected in the Schedule of Increases
and Decreases in the Global Certificate attached hereto}. Each Stripped WITS represents a
beneficial interest in Wachovia Capital Trust III (the “Trust”), having a Liquidation Amount of
$1,000. The Stripped WITS are transferable on the books and records of the Trust, in person or by
a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for
transfer as provided in Section 5.4 of the Trust Agreement (as defined below). The designations,
rights, privileges, restrictions, preferences and other terms and provisions of the Stripped WITS
are set forth in, and this certificate and the Stripped WITS represented hereby are issued and
shall in all respects be subject to the terms and provisions of the Amended and Restated Trust
Agreement of the Trust, dated as of February 1, 2006, as the same may be amended and restated from
time to time (the “Trust Agreement”), including the designation of the terms of the Stripped WITS
as set forth therein. The Holder is entitled to the benefits of the Guarantee Agreement entered
into by the Depositor and U.S. Bank National Association, as Guarantee Trustee, dated as of
February 1, 2006 (the “Guarantee Agreement”). All capitalized terms used herein that are defined
in the Trust Agreement have the meaning set forth therein.

Collateral Agreement

 

 

Exhibit B

          Section 5.13(d) of the Trust Agreement provides for the procedures pursuant to which Holders
of Capital WITS and Stripped WITS may exchange them for Normal WITS and Qualifying Treasury
Securities. The form of Recombination Notice required to be delivered in connection therewith is
printed on the reverse hereof.

          A copy of each of the Trust Agreement and the Guarantee Agreement is available for inspection
at the offices of the Property Trustee.

          Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled
to the benefits thereof.

          IN WITNESS WHEREOF, the Trust acting through one of its Administrative Trustees has executed
this Stripped WITS Certificate.

	 	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL TRUST III, acting through one of its Administrative Trustees	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 

Date:                                          

Collateral Agreement

 

 

Exhibit B

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:

	 	                     Custodian                      (cust)(minor)
Under Uniform Gifts to Minors Act of
	 
	 	 
	TENANT:

	 	as tenants by the entireties
	 
	 	 
	JT TEN:

	 	as joint tenants with right of survivorship and not as
tenants in common

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

(Please insert Social Security or Taxpayer I.D.

or other Identifying Number of Assignee)

(Please print or type name and address including Postal Zip Code of Assignee)

the within Stripped WITS Certificates and all rights thereunder, hereby irrevocably constituting
and appointing attorney                                , to transfer said Stripped WITS Certificates on the
books of Wachovia Corporation, with full power of substitution in the premises.

	 	 	 
	Dated:

	 	Signature
	 
	 	 
	 

	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Stripped WITS Certificates in every particular,
without alteration or enlargement or any change whatsoever.
	 
	 	 
	Signature Guarantee:
	 	 

Collateral Agreement

 

 

Exhibit B

FORM OF RECOMBINATION NOTICE AND REQUEST

JPMorgan Chase Bank, National Association,

     as Collateral Agent and Securities Registrar

4 New York Plaza, Floor 15

New York, New York 10004

     Re: Stripped WITS and Capital WITS of Wachovia Capital Trust III

          The undersigned Holder hereby notifies you pursuant to Section 5.13(d) of the Amended and
Restated Trust Agreement, dated as of February 1, 2006, of Wachovia Capital Trust III (the “Trust
Agreement”), among Wachovia Corporation, as Depositor, U.S. Bank National Association, as Property
Trustee, U.S. Bank Trust National Association, as Delaware Trustee, the Administrative Trustees (as
named therein) and the several Holders of the Trust Securities, and Section 6.03 of the Collateral
Agreement, that the Holder:

     is transferring $                     Liquidation Amount of Stripped WITS and Capital WITS in
connection with an Exchange of such Stripped WITS and Capital WITS for a Like Amount of
Normal WITS and Qualifying Treasury Securities,

     hereby requests the Collateral Agent to release from the Pledge and deliver to the
Holder Pledged Treasury Securities in a principal amount equal to such Liquidation Amount,
and

     hereby requests the delivery to the Holder of such Normal WITS of a Like Amount.

All capitalized terms used herein that are defined in the Trust Agreement have the meaning set
forth therein. The undersigned Holder has paid all applicable fees and expenses relating to such
Exchange.

	 	 	 
	Date:
	 	 
	 

	 	Signature Guarantee:
	 
	 	 
	Please print name and address of
Registered Holder:
	 	 
	 
	 	 
	Name

	 	Social Security or other Taxpayer

Identification Number, if any
	 
	 	 
	Address
	 	 

Collateral Agreement

 

 

Exhibit B

{TO BE ATTACHED TO GLOBAL CERTIFICATES}

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL CERTIFICATE

The
following increases or decreases in this Global Certificate have been
made, but in no event shall the number of Stripped WITS exceed a
maximum aggregate number for all Stripped WITS of 2,500,000:

	 	 	 	 	 	 	 
	 
	 	 	 	Number of Stripped	 	 
	Amount of increase in
	 	Amount of decrease in
	 	WITS evidenced by this	 	 
	Number of Stripped
	 	Number of Stripped
	 	Global Certificate
	 	Signature of
	WITS evidenced by
	 	WITS evidenced by this
	 	following such decrease
	 	authorized signatory
	this Global Certificate
	 	Global Certificate
	 	or increase
	 	of Securities  Registrar
	 
	 	 
	 	 
	 	 

Collateral Agreement

 

 

Exhibit C

(FORM OF FACE OF CAPITAL WITS CERTIFICATE)

          {For
inclusion in Global Certificates only — THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN
THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”) OR ITS NOMINEE. THIS CERTIFICATE IS EXCHANGEABLE FOR
CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT AND NO TRANSFER OF THIS CERTIFICATE
(OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.}

	 	 	 
	No.                     

	 	Number of Capital WITS:                                         
	 

	 	                    
CUSIP
No.                                            

WACHOVIA CAPITAL TRUST III

Collateral Agreement

 

 

Exhibit C

CAPITAL WITS

          This Capital WITS Certificate certifies that {                     } is the
registered Holder of the number of Capital WITS set forth above {for inclusion in Global
Certificates only — or such other number of Capital WITS reflected in the Schedule of Increases and
Decreases in the Global Certificate attached hereto}. Each Capital WITS represents a beneficial
interest in Wachovia Capital Trust III (the “Trust”), having a Liquidation Amount of $1,000. The
Capital WITS are transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in proper form for
transfer as provided in Section 5.4 of the Trust Agreement (as defined below). The designations,
rights, privileges, restrictions, preferences and other terms and provisions of the Capital WITS
are set forth in, and this certificate and the Capital WITS represented hereby are issued and shall
in all respects be subject to the terms and provisions of the Amended and Restated Trust Agreement
of the Trust, dated as of February 1, 2006, as the same may be amended and restated from time to
time (the “Trust Agreement”), including the designation of the terms of the Capital WITS as set
forth therein. The Holder is entitled to the benefits of the Guarantee Agreement entered into by
the Depositor and U.S. Bank National Association, as Guarantee Trustee, dated as of February 1,
2006 (the “Guarantee Agreement”). All capitalized terms used herein that are defined in the Trust
Agreement have the meaning set forth therein.

Collateral Agreement

 

 

Exhibit C

          Section 5.13(d) of the Trust Agreement provides for the procedures pursuant to which Holders
of Capital WITS and Stripped WITS may exchange them for Normal WITS and Qualifying Treasury
Securities and Section 5.14(f) of the Trust Agreement provides for the procedures pursuant to which
Holders of Capital WITS may elect to dispose of Capital WITS in the event a Remarketing is
Successful. The forms of Recombination Notice and Request and Notice of Contingent Disposition
Election required to be delivered in connection therewith are printed on the reverse hereof.

          A copy of each of the Trust Agreement and the Guarantee Agreement is available for inspection
at the offices of the Property Trustee.

          Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled
to the benefits thereof.

          IN WITNESS WHEREOF, the Trust acting through one of its Administrative Trustees has executed
this Capital WITS Certificate.

	 	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL TRUST III, acting through one of its Administrative Trustees	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 

Date:                                          

Collateral Agreement

 

 

Exhibit C

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:

	 	                     Custodian                      (cust)(minor)
Under Uniform Gifts to Minors Act of                                         
	 
	 	 
	TENANT:

	 	as tenants by the entireties

	 
	 	 
	JT TEN:

	 	as joint tenants with right of
survivorship and not as tenants in common

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

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

(Please insert Social Security or Taxpayer I.D.

or other Identifying Number of Assignee)

(Please print or type name and address including Postal Zip Code of Assignee)

the within Capital WITS Certificates and all rights thereunder, hereby irrevocably constituting and
appointing attorney                     , to transfer said Capital WITS Certificates on the books of
Wachovia Corporation, with full power of substitution in the premises.

	 	 	 
	Dated:

	 	Signature
	 
	 	 
	 

	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Capital WITS Certificates in every particular,
without alteration or enlargement or any change whatsoever.
	 
	 	 
	Signature Guarantee:
	 	 

Collateral Agreement

 

 

Exhibit C

FORM OF RECOMBINATION NOTICE AND REQUEST

JPMorgan Chase Bank, National Association,

     as Collateral Agent and Securities Registrar

4 New York Plaza, Floor 15

New York, New York 10004

     Re: Stripped WITS and Capital WITS of Wachovia Capital Trust III

          The undersigned Holder hereby notifies you pursuant to Section 5.13(d) of the Amended and
Restated Trust Agreement, dated as of February 1, 2006, of Wachovia Capital Trust III (the “Trust
Agreement”), among Wachovia Corporation, as Depositor, U.S. Bank National Association, as Property
Trustee, U.S. Bank Trust National Association, as Delaware Trustee, the Administrative Trustees (as
named therein) and the several Holders of the Trust Securities, and Section 6.03(a) of the
Collateral Agreement that the Holder:

     (i) is transferring $                     Liquidation Amount of Stripped WITS and Capital WITS
in connection with an Exchange of such Stripped WITS and Capital WITS for a Like Amount of
Normal WITS and Qualifying Treasury Securities,

     (ii) hereby requests the Collateral Agent to release from the Pledge and deliver to the
Holder Pledged Treasury Securities in a principal amount equal to such Liquidation Amount,
and

     (iii) hereby requests the delivery to the Holder of such Normal WITS of a Like Amount.

All capitalized terms used herein that are defined in the Trust Agreement have the meaning set
forth therein. The undersigned Holder has paid all applicable fees and expenses relating to such
Exchange.

	 	 	 
	Date:
	 	 
	 
	 	 
	 

	 	Signature Guarantee:
	 
	 	 
	Please print name and address of
Registered Holder:
	 	 
	 
	 	 
	Name

	 	Social Security or other Taxpayer

Identification Number, if any
	 
	 	 
	Address
	 	 

Collateral Agreement

 

 

Exhibit C

FORM OF NOTICE OF CONTINGENT DISPOSITION ELECTION

JPMorgan Chase Bank, National Association,

     as Custodial Agent and Securities Registrar

4 New York Plaza, Floor 15

New York, New York 10004

     Re: Normal WITS of Wachovia Capital Trust III

          The undersigned Holder hereby notifies you pursuant to Section 5.14(f) of the Amended and
Restated Trust Agreement, dated as of February 1, 2006, of Wachovia Capital Trust III (the “Trust
Agreement”), among Wachovia Corporation, as Depositor, U.S. Bank National Association, as Property
Trustee, U.S. Bank Trust National Association, as Delaware Trustee, the Administrative Trustees (as
named therein) and the several Holders of the Trust Securities, and Section 8.03 of the Collateral
Agreement, that the Holder:

     is transferring                      Capital WITS to the Securities Registrar, and

     hereby requests the payment to the Holder, if the upcoming Remarketing is Successful,
of an amount in cash for each such Capital WITS equal to the proceeds of the sale of $1,000
principal amount of Notes, it being understood that if such Remarketing is not Successful,
this Notice shall be disregarded.

All capitalized terms used herein that are defined in the Trust Agreement have the meaning set
forth therein. The undersigned Holder has paid all applicable fees and expenses relating to such
Contingent Exchange Election.

	 	 	 
	Date:
	 	 
	 

	 	Signature Guarantee:
	 
	 	 
	Please print name and address of
Registered Holder:
	 	 
	 
	 	 
	Name

	 	Social Security or other Taxpayer

Identification Number, if any
	 
	 	 
	Address
	 	 

Collateral Agreement

 

 

Exhibit C

{TO BE ATTACHED TO GLOBAL CERTIFICATES}

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL CERTIFICATE

The
following increases or decreases in this Global Certificate have been
made, but in no event shall the number of Capital WITS exceed a
maximum aggregate number for all Capital WITS of 2,500,000:

	 	 	 	 	 	 	 
	 
	 	 	 	Number of Capital	 	 
	Amount of increase in
	 	Amount of decrease in
	 	WITS evidenced by this	 	 
	Number of Capital
	 	Number of Capital
	 	Global Certificate
	 	Signature of
	WITS evidenced by
	 	WITS evidenced by this
	 	following such decrease
	 	authorized signatory
	this Global Certificate
	 	Global Certificate
	 	or increase
	 	of Securities Registrar
	 
	 	 
	 	 
	 	 

Collateral Agreement

 

 

Schedule I

Reference Dealers

JPMorgan Chase Bank, National Association

Goldman, Sachs & Co.

Merrill Lynch

Citibank/Citigroup

Collateral Agreement

 

 

Schedule II

Contact Persons for Confirmation

	 	 	 	 	 
	 	Name
	 	Phone Number	 
	 	 
	 	 	 

Collateral Agreement<PAGE>

                                                                  EXHIBIT 10.31

                           FORM OF INDEMNITY AGREEMENT

         THIS AGREEMENT made as of January 20, 2006, by and between Pinnacle
Airlines Corp., a Delaware corporation with executive offices located at 1689
Nonconnah Blvd., Suite 111, Memphis, TN 38132 ("PNCL") and
______________________, a Director or Officer of PNCL ("Indemnitee").

         WHEREAS,

         A. PNCL is aware that competent and experienced persons are
increasingly reluctant to serve as directors or officers of corporations unless
they are protected by comprehensive liability insurance and indemnification due
to increased exposure to litigation costs and risks resulting from their service
to such corporations, particularly after adoption by Congress of the
Sarbanes-Oxley Act of 2002, and due to the fact that the exposure frequently
bears no reasonable relationship to the compensation of such directors and
officers;

         B. The statutes and judicial decisions regarding the duties of
directors and officers are often difficult to apply, ambiguous, or conflicting,
and therefore fail to provide such directors and officers with adequate,
reliable knowledge of legal risks to which they are exposed or information
regarding the proper course of action to take;

         C. Plaintiffs often seek damages in such large amounts and the costs of
litigation may be so substantial (whether or not the case is meritorious), that
the costs of defense and/or settlement of such litigation is often beyond the
personal resources of officers and directors;

         D. PNCL believes that it is unfair for its directors and officers and
the directors and officers of its subsidiaries to assume the risk of large
judgments and other expense that may be incurred in cases in which the director
or officer received no personal profit and in cases where the director or
officer was not culpable;

         E. PNCL recognizes that the issues in controversy in litigation against
a director or officer of a corporation such as PNCL or a subsidiary of PNCL are
often related to the knowledge, motives and intent of such director or officer,
that he or she is usually the only witness with knowledge of the essential facts
and exculpating circumstances regarding such matters and that the long period of
time which usually elapses before the trial or other disposition of which
litigation often extends beyond the time that the director or officer can
reasonably recall such matters; and may extend beyond the normal time for
retirement or in the event of his or her death, his or her spouse, heirs,
executors or administrators, may be faced with limited ability and undue
hardship in maintaining an adequate defense, which may discourage such a
director or officer from serving in that position;

         F. Based upon their experience as business managers, the Board of PNCL
(the "Board") has concluded that, to retain and attract talented and experienced
individuals to serve as officers and directors of PNCL and its subsidiaries and
to encourage such individuals to take the business risks necessary for the
success of PNCL and its subsidiaries, it is necessary and in the bests interests
of PNCL's stockholders for PNCL to contractually indemnify its officers and
directors

<PAGE>

and the officers and directors of its subsidiaries, and to assume for itself
maximum liability for expenses and damages in connection with claims against
such officers and directors in connection with their service to PNCL and its
subsidiaries, and has further concluded that the failure to provide such
contractual indemnification could result in great harm to PNCL and its
subsidiaries and PNCL's stockholders;

         G. Section 145 of the General Corporation Law of Delaware, under which
PNCL is organized ("Section 145"), empowers PNCL to indemnify by agreement its
officers, directors, employees and agents, and persons who serve, at the request
of PNCL, as directors, officers, employees or agents of other corporations or
enterprises, and expressly provides that the indemnification provided by Section
145 is not exclusive;

         H. The Board, after reasonable investigation prior to the date hereof,
has determined that the liability insurance coverage available to PNCL and its
subsidiaries as of the date hereof is inadequate alone. The Board believes,
therefore, that the interest of PNCL's stockholders would best be served by a
combination of such insurance as PNCL may obtain pursuant to PNCL's obligations
hereunder, and the indemnification by PNCL of the directors and officers of PNCL
and its subsidiaries pursuant to its Certificate of Incorporation and
contractually hereunder;

         I. PNCL desires and has requested Indemnitee to serve or continue to
serve as a director or officer of PNCL and/or the subsidiaries of PNCL free from
undue concern for claims for damages arising out of or related to such services
to PNCL and/or a subsidiary of PNCL; and

         J. Indemnitee is willing to serve, or to continue to serve, PNCL and/or
the subsidiaries of PNCL, provided that he or she is furnished the indemnity
provided for herein.

         NOW, THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:

         1. DEFINITIONS.

                  (a) Agent. For the purposes of this Agreement, "agent" of PNCL
means any person who is or was a director, officer, employee or other agent of
PNCL or a subsidiary of PNCL; or is or was serving at the request of, for the
convenience of or to represent the interest of PNCL or a subsidiary of PNCL as a
director, officer, employee or agent of another foreign or domestic corporation,
partnership, joint venture, trust or other enterprise.

                  (b) Expenses. For purposes of this Agreement, "expenses"
includes all direct and indirect costs of any type or nature whatsoever
(including, without limitation, all attorneys' fees and related disbursements,
and other out-of-pocket costs) actually and reasonably incurred by Indemnitee in
connection with either the investigation, defense or appeal of a proceeding or
establishing or enforcing a right to indemnification under this Agreement,
Section 145 or otherwise; provided, however, that expenses shall not include any
judgments, fines, ERISA excise taxes or penalties or amounts paid in settlement
of a proceeding, unless otherwise provided herein.

                  (c) Proceeding. For the purposes of this Agreement,
"proceeding" means any threatened, pending, or completed action, suit or other
proceeding, whether civil, criminal, administrative,

<PAGE>

investigative or any other type whatsoever, which may be subject to
indemnification covered by this Agreement.

                  (d) Subsidiary. For purposes of this Agreement, "subsidiary"
means any corporation of which more than 50% of the outstanding voting
securities is owned directly or indirectly by PNCL, by PNCL and one or more
other subsidiaries, or by one or more other subsidiaries.

         2. AGREEMENT TO SERVE.

Indemnitee agrees to serve and/or continue to serve as an agent of PNCL, at its
will (or under separate agreement, if such agreement exists), in the capacity
Indemnitee currently serves as an agent of PNCL, so long as he or she is duly
appointed or elected and qualified in accordance with the applicable provisions
of the Bylaws of PNCL or any subsidiary of PNCL or until such time as he or she
tenders his resignation in writing or he or she is removed from such position;
provided, however, that nothing contained in this Agreement is intended to
create any right to continued employment by Indemnitee.

         3. MAINTENANCE OF LIABILITY INSURANCE.

                  (a) PNCL hereby covenants and agrees that, so long as
Indemnitee shall continue to serve as an agent of PNCL and thereafter so long as
Indemnitee shall be subject to any possible proceeding by reason of the fact
that Indemnitee was an agent of PNCL, PNCL, subject to Section 3(b), shall use
reasonable efforts to obtain and maintain in full force and effect directors'
and officers' liability insurance ("D&O Insurance") in reasonable amounts from
established and reputable insurers, and to the extent that that PNCL maintains
any D&O Insurance, Indemnitee shall be covered by such policy or policies, in
accordance with the terms thereof, to the maximum extent of the coverage
available for any PNCL director or officer under such policy or policies.

                  (b) Notwithstanding the foregoing, PNCL shall have no
obligation to obtain or maintain D&O Insurance if PNCL determines in good faith
that such insurance is not reasonably available, the premium costs for such
insurance are disproportionate to the amount of coverage provided, the coverage
is so limited and/or reduced by exclusions so as to provide an insufficient
benefit, or Indemnitee is covered by similar insurance maintained by a
subsidiary of PNCL.

         4. MANDATORY INDEMNIFICATION.

                  (a) If Indemnitee is a person who was or is a party or is
threatened to be made a party to any proceeding by reason of the fact that he or
she is or was an agent of PNCL, or by reason of anything done or not done by him
or her in any such capacity, if he or she acted in good faith and in a manner he
or she reasonably believed to be in or not opposed to the best interests of
PNCL, then PNCL shall indemnify Indemnitee against any and all expenses and
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) actually
and reasonably incurred by him or her in connection with the investigation,
defense, settlement or appeal of such proceeding, as follows:

                           (i) Third Party Actions. In any proceeding other than
an action in the right of PNCL (but with respect to any criminal action or
proceeding, only if he or she also had no reasonable cause to believe his or her
conduct was unlawful); and

<PAGE>

                           (ii) Derivative Actions. In any proceeding by or in
the right of PNCL to procure a judgment in its favor; except that no
indemnification under this subsection shall be made in respect of any claim,
issue or matter as to which such person shall have been finally adjudged to be
liable to PNCL after the time for an appeal has expired by a court of competent
jurisdiction due to willful misconduct of a culpable nature in the performance
of his or her duty to PNCL unless and only to the extent that the Court of
Chancery or the court in which such proceeding was brought shall determine upon
application that, despite the adjudication of liability but in view of all the
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such amounts which the Court of Chancery or such other court shall
deem proper; and

                           (iii) Actions Where Indemnitee is Deceased. In any
proceeding, and prior to, during the pendency or after completion of such
proceeding Indemnitee is deceased, except as provided in Sections 3(b) and 12.

                  (b) Exception for Amounts Covered by Insurance.
Notwithstanding the foregoing, PNCL shall not be obligated to indemnify
Indemnitee for expenses or liabilities of any type whatsoever (including, but
not limited to, judgments, fees, ERISA excise taxes or penalties, and amounts
paid in settlement) which have been paid directly to Indemnitee or to others on
behalf of Indemnitee under D&O Insurance.

                  (c) Indemnification for Expenses of a Witness. Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee is, by
reason of his or her corporate status as an agent of PNCL, a witness in any
proceeding to which Indemnitee is not a party, he shall be indemnified against
all expenses actually and reasonably incurred by him or on his behalf in
connection therewith.

                  (d) Change of Law. Subject to the further provisions of this
Agreement, if Section 145 of the Delaware General Corporation Law, or any
successor statute, is hereafter amended (the "Amended Statute") in a manner that
expands the authority of PNCL to indemnify or advance expenses to Indemnitee,
this Agreement shall thereupon be deemed modified to provide for indemnification
of and advance of expenses to Indemnitee to the fullest extent not prohibited by
the Amended Statute.

         5. PARTIAL INDEMNIFICATION.

If Indemnitee is entitled under any provision of this Agreement to
indemnification by PNCL for some or a portion of any expenses or liabilities of
any type whatsoever (including, but not limited to, judgments, fines, ERISA
excise taxes or penalties, and amounts paid in settlement) incurred by him or
her in the investigation, defense, settlement or appeal of a proceeding, but is
not entitled to indemnification for all of the total amount thereof, then PNCL
shall nevertheless indemnify Indemnitee for such portion of the total amount to
which Indemnitee is entitled, but not as to the portion thereof to which
Indemnitee is not entitled.

         6. MANDATORY ADVANCEMENT OF EXPENSES.

Except as otherwise limited or prohibited by applicable law, PNCL shall advance
all reasonable expenses incurred by or on behalf of Indemnitee in connection
with any proceeding within 20

<PAGE>

days after the receipt by PNCL of a statement or statements from Indemnitee
requesting such advance or advances from time to time, whether prior to or after
final disposition of such proceeding. Such statement or statements shall contain
reasonable documentation evidencing the expenses incurred by Indemnitee and may
designate that payment be made to another person on Indemnitee's behalf. In
connection with any such payment, advance or reimbursement, Indemnitee
undertakes and agrees to repay any amounts paid, advanced or reimbursed by PNCL
in respect of expenses relating to, arising out of or resulting from any
proceeding in respect of which it shall have been determined, following the
final disposition of such proceeding and in accordance with Section 8, that the
Indemnitee is not entitled to indemnification hereunder; it being understood and
agreed that the foregoing shall satisfy any requirement that Indemnitee provide
PNCL with an undertaking to repay any advancement of expenses prior to the
payment, advancement or reimbursement thereof by PNCL.

         7. NOTICE AND OTHER INDEMNIFICATION PROCEDURES.

                  (a) Indemnitee shall, as a condition precedent to his right to
be indemnified under this Agreement, give PNCL notice in writing as soon as
practicable of any claim made against Indemnitee for which indemnification will
or could be sought under this agreement, provided however, that a delay in
giving such notice shall not deprive Indemnitee of any right to be indemnified
under this Agreement unless, and then only to the extent that, such delay is
materially prejudicial to the defense of such claim. The omission to notify PNCL
will not relieve PNCL from any liability for indemnification which it may have
to Indemnitee otherwise than under this Agreement. The Secretary of PNCL shall,
promptly upon receipt of such a request for indemnification, advise the Board in
writing that Indemnitee has requested indemnification.

                  (b) If, at the time of the receipt of a notice of the
commencement of a proceeding pursuant to Section 7(a) hereof, PNCL has D&O
Insurance in effect, PNCL shall give prompt notice of the commencement of such
proceeding to the insurers and/or their agent(s) in accordance with the various
procedures set forth in the respective policies. PNCL shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of
Indemnitee, all amounts payable as a result of such proceeding in accordance
with the terms of such policies.

                  (c) If PNCL shall be obligated to advance the expenses for any
proceeding against Indemnitee, then PNCL, as appropriate, shall be entitled to
assume the defense of such proceeding, with counsel approved by Indemnitee, upon
the delivery to Indemnity of written notice of its election so to do. After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by PNCL, PNCL will not be liable to Indemnitee under
this Agreement for any fees of counsel subsequently incurred by Indemnitee with
respect to the same proceeding, provided that (i) Indemnitee shall have the
right to employ his or her counsel in any such proceeding at Indemnitee's
expense; and (ii) if (A) the employment of counsel by Indemnitee has been
previously authorized by PNCL, (B) Indemnitee shall have reasonably concluded
that there may be a conflict of interest between PNCL and Indemnitee in the
conduct of any such defense or (C) PNCL shall not, in fact, have employed
counsel to
<PAGE>

assume the defense of such proceeding, then (after written notice to PNCL by
Indemnitee) the fees and expense of Indemnitee's counsel shall be at the expense
of PNCL.

         8. DETERMINATION OF RIGHT TO INDEMNIFICATION.

                  (a) To the extent that Indemnitee shall have been successful
on the merits or otherwise in defense of any proceeding or any portion thereof
or in defense of any issue or matter therein, including, without limitation,
dismissal with or without prejudice, Indemnitee shall be indemnified against all
expenses (including, but not limited to, judgments, fines, ERISA excise taxes or
penalties, and amounts paid in settlement) relating to, arising out of or
resulting from such proceeding or portion thereof or issue or matter therein in
accordance with Section 4 and no Standard of Conduct Determination (as defined
below in Section 8(b)) shall be required.

                  (b) To the extent that the provisions of Section 8(a) are
inapplicable to a proceeding that shall have been finally disposed of and there
has been no Change of Control pursuant to Section 8(f), any determination of
whether Indemnitee has satisfied any applicable standard of conduct under
Delaware law that is a legally required condition precedent to indemnification
of Indemnitee hereunder against expenses (including, but not limited to,
judgments, fines, ERISA excise taxes or penalties, and amounts paid in
settlement) relating to, arising out of or resulting from such proceeding (a
"Standard of Conduct Determination") shall be made, at the election of
Indemnitee, either (i) by a majority vote of directors of PNCL who are not and
were not a party to the proceeding in respect of which indemnification is sought
by Indemnitee ("Disinterested Directors"), even if less than a quorum of the
Board or, if such Disinterested Directors so direct, by a majority vote of a
committee of Disinterested Directors designated by a majority vote of all
Disinterested Directors, (ii) by Independent Counsel (as defined below in
Section 8(f)) in a written opinion addressed to the Board, a copy of which shall
be delivered to Indemnitee, or (iii) by a panel of three arbitrators, one of
whom is selected by Indemnitee, another of whom is selected by PNCL and the last
of whom is selected by the first two arbitrators so selected. Indemnitee will
cooperate with the person or persons making such Standard of Conduct
Determination, including providing to such person or persons, upon reasonable
advance request, any documentation or information which is not privileged or
otherwise protected from disclosure and which is reasonably available to
Indemnitee and reasonably necessary to such determination. PNCL shall indemnify
and hold harmless Indemnitee against and, if requested by Indemnitee, shall
reimburse Indemnitee for, or advance to Indemnitee, within 20 business days of
such request, any and all reasonable costs, expenses and other amounts
(including attorneys' and experts' fees and expenses) paid or payable by
Indemnitee in so cooperating with the person or persons making such Standard of
Conduct Determination.

                  (c) PNCL shall use its reasonable best efforts to cause any
Standard of Conduct Determination required under Section 8(b) to be made as
promptly as practicable. If (i) the person or persons empowered or selected
under Section 8 to make the Standard of Conduct Determination shall not have
made a determination within 30 days after the later of (A) receipt by PNCL of
written notice from Indemnitee advising PNCL of the final disposition of the
applicable proceeding and (B) receipt by PNCL of written notice from Indemnitee
notifying PNCL of Indemnitee's choice of forum pursuant to Section 8(b) (the
later of the events specified in clause (A) and clause (B) being the
"Notification Date") and (ii) Indemnitee shall have fulfilled its obligations
set forth in the second sentence of Section 8(b), then Indemnitee shall be
deemed to have satisfied the applicable standard of conduct; provided that such
30-day period may be extended for a reasonable time, not to exceed an additional
30 days, in good faith by the

<PAGE>

person or persons making such Standard of Conduct Determination if (s)he/they
require such additional time for the obtaining or evaluation of documentation
and/or information relating to such determination.

                  (d) If Indemnitee shall be entitled to indemnification
hereunder against any expenses under circumstances where (i) no determination of
whether Indemnitee has satisfied any applicable standard of conduct under
Delaware law is a legally required condition precedent to indemnification of
Indemnitee hereunder against such expenses, or (ii) Indemnitee has been
determined or deemed pursuant to Section 8(b) or (c) to have satisfied any
applicable standard of conduct under Delaware law which is a legally required
condition precedent to indemnification of Indemnitee hereunder against such
expenses, then PNCL shall pay such expenses to Indemnitee within 20 business
days after the later of (x) the Notification Date in respect of the proceeding
or portion thereof to which such expenses are related, out of which such
expenses arose or from which such expenses resulted and (y) the earliest date on
which the applicable criterion specified in clause (i) or (ii) above shall have
been satisfied.

                  (e) If a Standard of Conduct Determination is to be made by
Independent Counsel pursuant to Section 8(b), then the Independent Counsel shall
be selected by Indemnitee, and Indemnitee shall give written notice to PNCL
advising it of the identity of the Independent Counsel so selected. PNCL may,
within five business days after receiving written notice of selection from
Indemnitee, deliver to Indemnitee a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that
the Independent Counsel so selected does not satisfy the criteria set forth in
the definition of "Independent Counsel" in Section 8(f), and the objection shall
set forth with particularity the factual basis of such assertion. Absent a
proper and timely objection, the person or firm so selected shall act as
Independent Counsel. If such written objection is properly and timely made and
substantiated, (i) the Independent Counsel so selected may not serve as
Independent Counsel unless and until such objection is withdrawn or a court has
determined that such objection is without merit and (ii) Indemnitee may, at its
option, select an alternative Independent Counsel and give written notice to
PNCL advising PNCL of the identity of the alternative Independent Counsel so
selected, in which case the provisions of the two immediately preceding
sentences and clause (i) of this sentence shall apply to such subsequent
selection and notice. If applicable, the provisions of clause (ii) of the
immediately preceding sentence shall apply to successive alternative selections.
If no Independent Counsel that is permitted under the foregoing provisions of
this Section 8(e) to make the Standard of Conduct Determination shall have been
selected within 30 days after Indemnitee gives its initial notice pursuant to
the first sentence of this Section 8(e) or PNCL gives its initial notice
pursuant to the second sentence of this Section 8(e), as the case may be, either
PNCL or Indemnitee may petition the Court of Chancery of the State of Delaware
for resolution of any objection which shall have been made by PNCL or Indemnitee
to the other's selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the Court or by such other person as
the Court shall designate, and the person or firm with respect to whom all
objections are so resolved or the person or firm so appointed will act as
Independent Counsel. In all events, PNCL shall pay all of the reasonable fees
and expenses of, and all other reasonable fees and expenses paid or payable by,
the Independent Counsel in connection with the Independent Counsel's
determination pursuant to Section 8(b), including in connection with any
challenge thereto or defense thereof, and PNCL shall fully indemnify and hold
harmless such counsel against any and all reasonable expenses (including
attorney's fees),

<PAGE>

claims, liabilities and damages arising out of or relating to this Agreement or
its engagement pursuant hereto.

                  (f) PNCL agrees that if there is a Change in Control (as
defined in Attachment "A" hereto) of PNCL, then with respect to all matters
thereafter arising concerning the rights of Indemnitee to indemnity payments and
advances of any expenses under this Agreement or any other agreement or PNCL
by-law now or hereafter in effect relating to proceedings, PNCL shall seek legal
advice only from Independent Counsel (as defined in Attachment "A" hereto)
selected by Indemnitee and approved by PNCL (which approval shall not be
unreasonably withheld). Such counsel, among other things, shall render its
written opinion to PNCL and Indemnitee as to whether and to what extent
Indemnitee would be permitted to be indemnified under applicable law. In all
events, PNCL shall pay all of the reasonable fees and expenses of, and all other
reasonable fees and expenses paid or payable by, the Independent Counsel
referred to in this Section 8(f) in connection with the foregoing, including in
connection with any challenge to or defense of any action or decision of such
Independent Counsel, and PNCL shall fully indemnify and hold harmless such
counsel against any and all reasonable expenses (including attorney's fees),
claims, liabilities and damages arising out of or relating to this Agreement or
its engagement pursuant hereto.

         9. RELIANCE AS SAFE HARBOR; ACTIONS OF OTHERS.

                  (a) For purposes of any Standard of Conduct Determination, the
Indemnitee shall be deemed to have met the requisite standard of conduct if
Indemnitee's action is based on the records or books of account of PNCL,
including financial statements, or on information supplied to Indemnitee by the
officers of PNCL in the course of their duties, (provided, if Indemnitee is an
officer, then Indemnitee shall not be entitled to rely upon such data furnished
in the course of their duties by officers who report directly to Indemnitee) or
on the advice of legal counsel for PNCL or on information or records given or
reports made to PNCL by an independent certified public accountant or by an
appraiser or other expert selected with reasonable care by PNCL. The provisions
of this Section 9 shall not be deemed to be exclusive or to limit in any way the
other circumstances in which Indemnitee may be deemed to have met the applicable
standard of conduct set forth in this Agreement.

                  (b) The knowledge and/or actions, or failure to act, of any
director, officer, agent or employee of PNCL shall not be imputed to Indemnitee
for purposes of determining the right to indemnification under this Agreement.

         10. LIMITATION OF ACTIONS AND RELEASE OF CLAIMS.

No proceeding shall be brought and no cause of action shall be asserted by or on
behalf of PNCL or any subsidiary against Indemnitee, his or her spouse, heirs,
estate, executors or administrators after the expiration of one year from the
act or omission of Indemnitee upon which such proceeding is based; however, in a
case where Indemnitee fraudulently conceals the facts underlying such cause of
action, no proceeding shall be brought and no cause of action shall be asserted
after the expiration of one year from the earlier of (i) the date PNCL or any
subsidiary of PNCL discovers such facts, or (ii) the date PNCL or any subsidiary
of PNCL could have discovered such facts by the exercise of reasonable
diligence. Any claim or cause of action of PNCL or any subsidiary of PNCL,
including claims predicated upon the negligent act or

<PAGE>

omission of Indemnitee, shall be extinguished and deemed released unless
asserted by filing of a legal action within such period. This Section 9 shall
not apply to any cause of action which has accrued on the date hereof and of
which Indemnitee is aware on the date hereof, but as to which PNCL has no actual
knowledge apart from Indemnitee's knowledge.

         11. PRESUMPTION OF ENTITLEMENT.

In making any Standard of Conduct Determination or other determination relating
to this Agreement, the person or persons making such determination shall presume
that Indemnitee has satisfied the applicable standard of conduct or otherwise is
entitled to the treatment hereunder requested by Indemnitee, and PNCL shall have
the burden of proof to overcome such presumption and shall satisfy such burden
of proof (and the person or persons making such determination shall be entitled
to reach a conclusion contrary to such presumption) only if PNCL adduces clear
and convincing evidence to the contrary.

         12. EXCEPTIONS.

Notwithstanding any other provision herein to the contrary, PNCL shall not be
obligated, pursuant to the terms of this Agreement:

                  (a) Claims Initiated by Indemnitee. To indemnify or advance
expenses to Indemnitee with respect to proceedings or claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except with respect
to proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under
Section 145, but such indemnification or advancement of expenses may be provided
by PNCL in specific cases if the Board finds it to be appropriate; or

                  (b) Lack of Good Faith. To indemnify Indemnitee for any
expenses incurred by Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by Indemnitee
in such proceeding was not made in good faith or was frivolous; or

                  (c) Unauthorized Settlements. To indemnify Indemnitee under
this Agreement for any amounts paid in settlement of a proceeding unless PNCL
consents to such settlement; or

                  (d) Claims by PNCL for Willful Misconduct. To indemnify or
advance expenses to Indemnitee under this Agreement for any expenses incurred by
Indemnitee with respect to any proceeding or claim brought by PNCL against
Indemnitee for willful misconduct, unless a court of competent jurisdiction
determines that each of such claims by PNCL was not made in good faith or was
frivolous; or

                  (e) Section 16(b). To indemnify Indemnitee for expenses and
the payment of profits arising from the purchase and sale by Indemnitee of PNCL
securities in violation of Section 16(b) of the Securities Exchange Act of 1934,
as amended, or any similar successor statute; or

                  (f) Willful Misconduct. To indemnify Indemnitee on account of
Indemnitee's conduct which is finally adjudged to have been knowingly fraudulent
or deliberately dishonest, or to constitute willful misconduct; or

<PAGE>

                  (g) Unlawful Indemnification. To indemnify Indemnitee if a
final decision by a court having jurisdiction in the matter shall determine that
such indemnification is not lawful; or

                  (h) Forfeiture of Certain Bonuses and Profits. To indemnify
Indemnitee for the payment of amounts required to be reimbursed to PNCL pursuant
to Section 304 of the Sarbanes-Oxley Act of 2002, as amended, or any similar
successor statute.

         13. REMEDIES OF INDEMNITEE.

                  (a) In the event that (i) a determination is made pursuant to
Section 8 of this Agreement that Indemnitee is not entitled to indemnification
under this Agreement, (ii) advancement of expenses is not timely made pursuant
to Section 6 of this Agreement, (iii) no determination of entitlement to
indemnification shall have been made pursuant to Section 8(b) or (f) of this
Agreement within 30 days after receipt by PNCL of the request for
indemnification, (iv) payment of indemnification is not made pursuant to Section
6 or the last sentence of Section 8(b) of this Agreement within 20 days after
receipt by PNCL of a written request therefore, or (v) payment of
indemnification pursuant to Sections 4 or 5 of this Agreement is not made within
the time set forth in Section 8(d), Indemnitee shall be entitled to an
adjudication by a court of his entitlement to such indemnification or
advancement of expenses. Alternatively, Indemnitee, at his option, may seek an
award in arbitration to be conducted by a single arbitrator pursuant to the
Commercial Arbitration Rules of the American Arbitration Association. PNCL shall
not oppose Indemnitee's right to seek any such adjudication or award in
arbitration.

                  (b) In the event that a determination shall have been made
pursuant to Section 8 of this Agreement that Indemnitee is not entitled to
indemnification, any judicial proceeding or arbitration commenced pursuant to
this Section 13 shall be conducted in all respects as a de novo trial, or
arbitration, on the merits and Indemnitee shall not be prejudiced by reason of
that adverse determination. In any judicial proceeding or arbitration commenced
pursuant to this Section 13 PNCL shall have the burden of proving Indemnitee is
not entitled to indemnification or advancement of expenses, as the case may be.

                  (c) If a determination shall have been made pursuant to
Section 8 of this Agreement that Indemnitee is entitled to indemnification, PNCL
shall be bound by such determination in any judicial proceeding or arbitration
commenced pursuant to this Section 13, absent (i) a misstatement by Indemnitee
of a material fact, or an omission of a material fact necessary to make
Indemnitee's statement not materially misleading, in connection with the request
for indemnification, or (ii) a prohibition of such indemnification under
applicable law.

                  (d) PNCL shall be precluded from asserting in any judicial
proceeding or arbitration commenced pursuant to this Section 13 that the
procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such court or before any such arbitrator
that PNCL is bound by all the provisions of this Agreement. PNCL shall indemnify
Indemnitee against any and all expenses and, if requested by Indemnitee, shall
(within ten days after receipt by PNCL of a written request therefore) advance
such expenses to Indemnitee, which are incurred by Indemnitee in connection with
any action brought by Indemnitee for indemnification or advance of expenses from
PNCL under this Agreement or under any directors' and officers' liability
insurance policies maintained by PNCL, regardless of whether Indemnitee
ultimately is determined to be entitled to such indemnification, advancement of
expenses or insurance recovery, as the case may be.

<PAGE>

         14. NONEXCLUSIVITY.

The provisions for indemnification and advancement of expenses set forth in this
Agreement shall not be deemed exclusive of any other rights which Indemnitee may
have under any provision of law, PNCL's Certificate of Incorporation or Bylaws,
the vote of PNCL's stockholders or disinterested directors, other agreements, or
otherwise, both as to actions in his or her official capacity and to actions in
another capacity while occupying his or her position as an agent of PNCL.
Indemnitee's rights hereunder shall continue after Indemnitee has ceased acting
as an agent of PNCL, subject to Section 21.

         15. INTERPRETATION OF AGREEMENT.

It is understood that the parties hereto intend this Agreement to be interpreted
and enforced so as to provide indemnification to Indemnitee to the fullest
extent now or hereafter permitted by law.

         16. SEVERABILITY.

If any provision or provisions of this Agreement shall be held to be invalid,
illegal or unenforceable for any reason whatsoever, (i) the validity, legality
and enforceability of the remaining provisions of the Agreement (including,
without limitation, all portions of any paragraphs of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that are not
themselves invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraphs of
this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall
be construed so as to give effect to the intent manifested by the provision held
invalid, illegal or unenforceable and to give effect to Section 4 hereof.

         17. MODIFICATION AND WAIVER.

No supplement, modification or amendment of this Agreement shall be binding
unless executed in writing by both of the parties hereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provision hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

         18. NOTICE.

All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed duly given (i) if delivered by hand and
receipted for by the party addressee or (ii) if mailed by certified or
registered mail with postage prepaid, on the third business day after the
mailing date:

                  (a) If to Indemnitee, to the address at his signature.

                  (b) If to PNCL, to:

                  Pinnacle Airlines Corp.
                  Attn: General Counsel

<PAGE>

                  1689 Nonconnah Boulevard
                  Suite 111
                  Memphis, TN 38132

Addresses may be subsequently modified by written notice.

         19. GOVERNING LAW; CONSENT TO JURISDICTION.

This Agreement shall be governed exclusively by and construed according to the
laws of the State of Delaware, as applied to contracts between Delaware
residents entered into and to be performed entirely within Delaware. PNCL and
Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of
the State of Delaware for all purposes in connection with any action or
proceeding which arises out of or relates to this Agreement.

         20. SPECIFIC PERFORMANCE.

PNCL and Indemnitee recognize that if any provision of this Agreement is
violated by PNCL, Indemnitee may be without an adequate remedy at law.
Accordingly, in the event of any such violation, Indemnitee shall be entitled,
if Indemnitee so elects, to institute proceedings, either in law or at equity,
to obtain damages, to enforce specific performance, to enjoin such violation, or
to obtain any relief or any combination of the foregoing as Indemnitee may elect
it to pursue.

         21. EFFECTIVENESS OF AGREEMENT; DURATION.

This Agreement shall be effective as of the date set forth on the first page and
may apply to acts or omissions of Indemnitee which occurred prior to such date
if Indemnitee was an officer, director, employee, or other agent of PNCL, or was
serving at the request of PNCL as a director, officer, employee, or agent of
another corporation, partnership, joint venture, trust, or other enterprise at
the time such act or omission occurred. This Agreement shall terminate upon the
later of: (a) ten years after the Indemnitee has ceased to be an agent of PNCL;
and (b) the final termination of all then-pending or threatened proceedings to
which the Indemnitee may be subject. The indemnification provided under this
Agreement shall continue as to the Indemnitee even though he may have ceased to
be a director or officer of the Company. This Agreement shall be binding upon
the Company and its successors and assigns and shall inure to the benefit of the
Indemnitee and his spouse, assigns, heirs, devises, executors, administrators or
other legal representatives.

         22. CONTRIBUTION.

To the fullest extent permissible under applicable law, if the indemnification
provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, PNCL, in lieu of indemnifying Indemnitee, shall contribute to the
amount incurred by Indemnitee, whether for judgments, fines, penalties, excise
taxes, amounts paid or to be paid in settlement and/or for expenses, in
connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all
of the circumstances of such proceeding in order to reflect (i) the relative
benefits received by PNCL and Indemnitee as a result of the event(s) and/or
transaction(s) giving cause to such proceeding; and/or (ii) the

<PAGE>

relative fault of PNCL (and its directors, officers, employees and agents) and
Indemnitee in connection with such event(s) and/or transaction(s).

         23. SUBROGATION.

In the event of payment to Indemnitee under this Agreement, PNCL shall be
subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all papers required and shall do everything that
may be necessary to secure such rights, including the execution of such
documents necessary to enable PNCL effectively to bring suit to enforce such
rights.

<PAGE>

         EXECUTED as of the date first above written.

                                        PINNACLE AIRLINES CORP.

                                        By:
                                                 ------------------------------
                                        Name:
                                                 ------------------------------
                                        Title:
                                                 ------------------------------
                                        Date:
                                                 ------------------------------

                                        ---------------------------------------

                                        Name of Indemnitee:
                                                            -------------------

                                        Date:
                                              ---------------------------------

                                        Address:

                                        ---------------------------------------

                                        ---------------------------------------

<PAGE>

                                  ATTACHMENT A

                        DEFINITION OF "CHANGE IN CONTROL"

"Change in Control" means the occurrence after the date of this Agreement of any
of the following events: (i) any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person"), is or becomes
the beneficial owner (within the meaning of Rule 13d-3 promulgated under the
Exchange Act), directly or indirectly, of 50% or more of the total voting power
of the then outstanding Voting Stock; provided, however, that the following
events shall not constitute or result in a Change in Control: (A) any
acquisition of Voting Stock directly from PNCL, (B) any acquisition of Voting
Stock by PNCL, (C) any acquisition of Voting Stock by any employee benefit plan
(or related trust, or any trustee or other fiduciary thereof in such capacity)
sponsored or maintained by PNCL or any Subsidiary or (D) any acquisition of
Voting Stock by any Person pursuant to a Business Combination that complies with
clauses (A), (B) and (C) of Section (iii) below; or (ii) during any two-year
period, individuals who, as of the beginning of such period, constitute the
Board (the "Incumbent Directors") cease for any reason (other than death or
disability) to constitute at least a majority of the Board; provided, however,
that any individual becoming a director subsequent to the date hereof whose
election, or nomination for election by PNCL's stockholders, was approved by a
vote of at least a majority of the then Incumbent Directors (either by a
specific vote or by approval of the proxy statement of PNCL in which such person
is named as a nominee for director, without objection of PNCL, to such
nomination) shall be considered as though such individual were an Incumbent
Director, but excluding for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election
contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to the
election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board; or (iii)
consummation of a reorganization, merger or consolidation, or sale or other
disposition of all or substantially all of the assets, of PNCL (a "Business
Combination"), unless, in each case, immediately following such Business
Combination, (A) all or substantially all of the individuals and entities who
were the beneficial owners of Voting Stock of PNCL immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of
the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors of the entity resulting from such
Business Combination (including, without limitation, an entity which as a result
of such transaction owns PNCL or all or substantially all of PNCL's assets
either directly or through one or more subsidiaries) in substantially the same
proportions relative to each other as their ownership, immediately prior to such
Business Combination, of the Voting Stock of PNCL, (B) no Person (excluding any
entity resulting from such Business Combination or any employee benefit plan (or
related trust, or any trustee or other fiduciary thereof in such capacity)
sponsored or maintained by PNCL, any Subsidiary or such entity resulting from
such Business Combination) beneficially owns, directly or indirectly, voting
securities representing 15% or more of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors of the entity resulting from such Business Combination except to the
extent such ownership existed prior to the Business Combination and (C) at least
a majority of the members of the Board of the entity resulting from such
Business Combination were Incumbent Directors at the time of the execution of
the initial agreement or of the action of the Board providing for such Business
Combination; or (iv) approval by the stockholders of

<PAGE>

PNCL of a plan of complete liquidation or dissolution of PNCL, except pursuant
to a Business Combination that complies with clauses (A), (B) and (C) of Section
(iii) above. For purposes of this Section, the following terms shall have the
following meanings:

         (i) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

         (ii) "Subsidiary" means an entity in which PNCL directly or indirectly
beneficially owns 50% or more of the outstanding Voting Stock.

         (iii) "Voting Stock" means securities entitled to vote generally in the
election of directors.

         (iv) "Independent Counsel" means a law firm, or a member of a law firm,
that is experienced in matters of corporation law and neither presently is, nor
in the past five years has been, retained to represent (i) PNCL or Indemnitee in
any matter material to either such party (other than with respect to matters
concerning other indemnitees under similar [i.e., non-Pinnacle] indemnification
agreements) or (ii) any other party to the proceeding giving rise to
indemnification hereunder. Notwithstanding the foregoing, the term "Independent
Counsel" shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either PNCL or Indemnitee in an action to determine Indemnitee's
rights under this Agreement.

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