Document:

Exhibit 4.17

 

CERTIFICATE
OF TRUST

OF

 

PACIFIC
CREST CAPITAL TRUST II

 

This Certificate of Trust of Pacific Crest Capital
Trust II (the “Trust”), dated April 16, 2003, is being duly executed and
filed by the undersigned, as trustees, to form a statutory trust under the
Delaware Statutory Trust Act (12 Del. C.
§ 3801, et  seq.) the “Act”).

 

1.             Name. 
The name of the statutory trust formed by this Certificate of Trust
is:   Pacific Crest Capital Trust II.

 

2.             Delaware Trustee.  The name and business address of the trustee of the Trust with
its principal place of business in the State of Delaware are The Bank of New
York (Delaware) White Clay Center, Route 273, Newark, Delaware 19711,
Attention: Kris Gullo.

 

3.             Effective Date.  This Certificate of Trust shall be effective upon filing with the
Secretary of State of the State of Delaware.

 

IN WITNESS WHEREOF, the undersigned, being the
trustees of the Trust, have executed this Certificate of Trust in accordance
with Section 3811(a)(1) of the Act.

 

	
   

  	
  THE BANK OF NEW YORK,
  not in its individual

  capacity, but solely as property trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK
  (DELAWARE), not in its

  individual capacity, but solely as Delaware trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:Exhibit 4.18

 

THIS
COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS
AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
TO AN EXEMPTION FROM REGISTRATION.  THIS
CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND
SECTION 5.11 OF THE TRUST AGREEMENT

 

	
  Certificate Number

  	
  Number of Common
  Securities

  
	
   

  
	
   

  	
  C-001

  	
  190

  
	
   

  
	
   

  
			

Certificate Evidencing Common Securities

 

of

 

Pacific Crest Capital Trust II

 

Floating Rate Common Securities

 

(liquidation amount $1,000 per Common Security)

 

Pacific Crest Capital Trust II, a statutory trust
created under the laws of the State of Delaware (the “Trust”), hereby certifies
that Pacific Crest Capital, Inc., a Delaware corporation (the “Holder”)
is the registered owner of one hundred ninety (190) common securities of the
Trust representing undivided common beneficial interests in the assets of the
Trust and designated the Pacific Crest
Capital Trust II Floating Rate Common Securities (liquidation
amount $1,000 per Common Security) (the “Common Securities”). Except in accordance
with Section 5.11 of the Trust Agreement (as defined below), the
Common Securities are not transferable and, to the fullest extent permitted by
law, any attempted transfer hereof other than in accordance therewith shall be
void. The designations, rights, privileges, restrictions, preferences and other
terms and provisions of the Common Securities are set forth in, and this
certificate and the Common Securities 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 April 23, 2003 as the same
may be amended from time to time (the “Trust Agreement”), among Pacific Crest
Capital, Inc., as Depositor, The Bank of New York, as Property Trustee, The
Bank of New York (Delaware), as Delaware Trustee, the Administrative Trustees
named therein and the Holders, from time to time, of Trust Securities. The
Trust will furnish a copy of the Trust Agreement to the Holder without charge
upon written request to the Trust at its principal place of business or
registered office.

 

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

 

 

This Common Securities Certificate shall be governed
by and construed in accordance with the laws of the State of Delaware.

 

Terms used but not defined herein have the meanings
set forth in the Trust Agreement.

 

2

 

In Witness Whereof, one of the
Administrative Trustees of the Trust has executed on behalf of the Trust this
certificate this
               
day of April, 2003.

 

	
   

  	
   

  	
   

  
	
   

  	
  Pacific
  Crest Capital Trust II

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Robert J. Dennen

  	
   

  
	
   

  	
   

  	
  Title: 
  Administrative Trustee

  	
   

  
					

 

3EXHIBIT 4.19

 

Execution Copy

 

 

	
   

  

 

 

JUNIOR SUBORDINATED
INDENTURE

 

between

 

PACIFIC CREST
CAPITAL, INC.

 

and

 

 

THE BANK OF NEW YORK,

as Trustee

 

 

Dated as of April 23, 2003

 

 

	
   

  

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I

  
	
  Definitions and Other Provisions of General
  Application

  
	
   

  
	
  Section 1.1.

  	
  Definitions

  
	
  Section 1.2.

  	
  Compliance Certificate and Opinions

  
	
  Section 1.3.

  	
  Forms of Documents Delivered to Trustee

  
	
  Section 1.4.

  	
  Acts of Holders

  
	
  Section
  1.5.

  	
  Notices,
  Etc. to Trustee and Company

  
	
  Section 1.6.

  	
  Notice to Holders; Waiver

  
	
  Section 1.7.

  	
  Effect of Headings and Table of Contents

  
	
  Section 1.8.

  	
  Successors and Assigns

  
	
  Section 1.9.

  	
  Separability Clause

  
	
  Section 1.10.

  	
  Benefits of Indenture

  
	
  Section 1.11.

  	
  Governing Law

  
	
  Section 1.12.

  	
  Submission to Jurisdiction

  
	
  Section 1.13.

  	
  Non-Business Days

  
	
   

  	
   

  
	
  ARTICLE
  II

  
	
  Security
  Forms

  
	
   

  
	
  Section 2.1.

  	
  Form of Security

  
	
  Section 2.2.

  	
  Restricted Legend

  
	
  Section 2.3.

  	
  Form of Trustee’s Certificate of
  Authentication

  
	
  Section 2.4.

  	
  Temporary Securities

  
	
  Section 2.5.

  	
  Definitive Securities

  
	
   

  	
   

  
	
  ARTICLE
  III

  
	
  The
  Securities

  
	
   

  
	
  Section 3.1.

  	
  Payment of Principal and Interest

  
	
  Section 3.2.

  	
  Denominations

  
	
  Section
  3.3.

  	
  Execution,
  Authentication, Delivery and Dating

  
	
  Section 3.4.

  	
  Global Securities

  
	
  Section
  3.5.

  	
  Registration,
  Transfer and Exchange Generally

  
	
  Section
  3.6.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  
	
  Section
  3.7.

  	
  Persons
  Deemed Owners

  

 

 

i

 

	
  Section 3.8.

  	
  Cancellation

  
	
  Section 3.9.

  	
  Deferrals of Interest Payment Dates

  
	
  Section 3.10.

  	
  Right of Set-Off

  
	
  Section 3.11.

  	
  Agreed Tax Treatment

  
	
  Section 3.12.

  	
  CUSIP Numbers

  
	
   

  	
   

  
	
  ARTICLE
  IV

  
	
  Satisfaction and Discharge

  
	
   

  
	
  Section 4.1.

  	
  Satisfaction and Discharge of Indenture

  
	
  Section 4.2.

  	
  Application of Trust Money

  
	
   

  	
   

  
	
  ARTICLE
  V

  
	
  Remedies

  
	
   

  
	
  Section 5.1.

  	
  Events of Default

  
	
  Section 5.2.

  	
  Acceleration of Maturity; Rescission and
  Annulment

  
	
  Section 5.3.

  	
  Collection of Indebtedness and Suits for
  Enforcement by Trustee.

  
	
  Section 5.4.

  	
  Trustee May File Proofs of Claim

  
	
  Section 5.5.

  	
  Trustee May Enforce Claim Without
  Possession of Securities

  
	
  Section 5.6.

  	
  Application of Money Collected

  
	
  Section 5.7.

  	
  Limitation on Suits

  
	
  Section 5.8.

  	
  Unconditional Right of Holders to Receive
  Principal, Premium and Interest; Direct Action by Holders of Preferred
  Securities

  
	
  Section 5.9.

  	
  Restoration of Rights and Remedies

  
	
  Section 5.10.

  	
  Rights and Remedies Cumulative

  
	
  Section 5.11.

  	
  Delay or Omission Not Waiver

  
	
  Section 5.12.

  	
  Control by Holders

  
	
  Section 5.13.

  	
  Waiver of Past Defaults

  
	
  Section 5.14.

  	
  Undertaking for Costs

  
	
  Section
  5.15.

  	
  Waiver
  of Usury, Stay or Extension Laws

  
	
   

  	
   

  
	
  ARTICLE
  VI

  
	
  The
  Trustee

  
	
   

  
	
  Section 6.1.

  	
  Corporate Trustee Required

  
	
  Section 6.2.

  	
  Certain Duties and Responsibilities

  

 

ii

 

	
  Section 6.3.

  	
  Notice of Defaults

  
	
  Section 6.4.

  	
  Certain Rights of Trustee

  
	
  Section 6.5.

  	
  May Hold Securities

  
	
  Section 6.6.

  	
  Compensation; Reimbursement; Indemnity

  
	
  Section 6.7.

  	
  Resignation and Removal; Appointment of
  Successor

  
	
  Section 6.8.

  	
  Acceptance of Appointment by Successor

  
	
  Section
  6.9.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  
	
  Section 6.10.

  	
  Not Responsible for Recitals or Issuance of
  Securities

  
	
  Section 6.11.

  	
  Appointment of Authenticating Agent

  
	
   

  	
   

  
	
  ARTICLE
  VII

  
	
  Holder’s Lists and Reports by Trustee And
  Company

  
	
   

  
	
  Section 7.1.

  	
  Company to Furnish Trustee Names and Addresses
  of Holders

  
	
  Section 7.2.

  	
  Preservation of Information, Communications
  to Holders

  
	
  Section 7.3.

  	
  Reports by Company

  
	
   

  	
   

  
	
  ARTICLE
  VIII

  
	
  Consolidation,
  Merger, Conveyance, Transfer or Lease

  
	
   

  
	
  Section
  8.1.

  	
  Company
  May Consolidate, Etc., Only on Certain Terms

  
	
  Section 8.2.

  	
  Successor Company Substituted

  
	
   

  	
   

  
	
  ARTICLE
  IX

  
	
  Supplemental Indentures

  
	
   

  
	
  Section 9.1.

  	
  Supplemental Indentures without Consent of
  Holders

  
	
  Section 9.2.

  	
  Supplemental Indentures with Consent of
  Holders

  
	
  Section 9.3.

  	
  Execution of Supplemental Indentures

  
	
  Section 9.4.

  	
  Effect of Supplemental Indentures

  
	
  Section 9.5.

  	
  Reference in Securities to Supplemental
  Indentures

  
	
   

  	
   

  
	
  ARTICLE
  X

  
	
  Covenants

  
	
   

  
	
  Section
  10.1.

  	
  Payment
  of Principal, Premium and Interest

  
	
  Section 10.2.

  	
  Money for Security Payments to be Held in
  Trust

  
	
  Section 10.3.

  	
  Statement as to Compliance

  
	
  Section 10.4.

  	
  Calculation Agent

  

 

iii

 

	
  Section 10.5.

  	
  Additional Tax Sums

  
	
  Section 10.6.

  	
  Additional Covenants

  
	
  Section 10.7.

  	
  Waiver of Covenants

  
	
  Section 10.8.

  	
  Treatment of Securities

  
	
   

  	
   

  
	
  ARTICLE
  XI

  
	
  Redemption of Securities

  
	
   

  
	
  Section 11.1.

  	
  Optional Redemption

  
	
  Section 11.2.

  	
  Special Event Redemption

  
	
  Section 11.3.

  	
  Election to Redeem; Notice to Trustee

  
	
  Section 11.4.

  	
  Selection of Securities to be Redeemed

  
	
  Section 11.5.

  	
  Notice of Redemption

  
	
  Section 11.6.

  	
  Deposit of Redemption Price

  
	
  Section 11.7.

  	
  Payment of Securities Called for Redemption

  
	
   

  	
   

  
	
  ARTICLE
  XII

  
	
  Subordination of Securities

  
	
   

  
	
  Section 12.1.

  	
  Securities Subordinate to Senior Debt

  
	
  Section 12.2.

  	
  No Payment When Senior Debt in Default;
  Payment Over of Proceeds Upon Dissolution, Etc.

  
	
  Section 12.3.

  	
  Payment Permitted If No Default

  
	
  Section 12.4.

  	
  Subrogation to Rights of Holders of Senior
  Debt

  
	
  Section 12.5.

  	
  Provisions Solely to Define Relative Rights

  
	
  Section 12.6.

  	
  Trustee to Effectuate Subordination

  
	
  Section 12.7.

  	
  No Waiver of Subordination Provisions

  
	
  Section 12.8.

  	
  Notice to Trustee

  
	
  Section 12.9.

  	
  Reliance on Judicial Order or Certificate
  of Liquidating Agent

  
	
  Section 12.10.

  	
  Trustee Not Fiduciary for Holders of Senior
  Debt

  
	
  Section 12.11.

  	
  Rights of Trustee as Holder of Senior Debt;
  Preservation of Trustee’s Rights

  
	
  Section 12.12.

  	
  Article Applicable to Paying Agents

  

 

iv

 

 

	
  SCHEDULES

  	
   

  
	
   

  	
   

  
	
  Schedule A–

  	
  Determination of LIBOR

  
	
   

  	
   

  
	
  Exhibit A–

  	
  Form of Officer’s Certificate

  

 

i

 

Junior Subordinated Indenture, dated as of April 23,
2003, between PACIFIC CREST CAPITAL, INC.,
a Delaware corporation (the “Company”), and The Bank of New York, a New York banking corporation, as
Trustee (in such capacity, the “Trustee”).

 

RECITALS OF THE COMPANY

 

Whereas, the Company has duly authorized the execution
and delivery of this Indenture to provide for the issuance of its unsecured
junior subordinated deferrable interest notes (the “Securities”) issued to evidence loans made to the
Company of the proceeds from the issuance by Pacific Crest  Capital Trust II, a Delaware  statutory trust (the “Trust”), of undivided preferred beneficial
interests in the assets of the Trust (the “Preferred
Securities”) and undivided common beneficial
interests in the assets of the Trust (the “Common
Securities” and, collectively with the Preferred
Securities, the “Trust Securities”),
and to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered; and

 

Whereas, all things necessary to make this Indenture a
valid agreement of the Company, in accordance with its terms, have been done.

 

Now,
therefore, this Indenture Witnesseth:

 

For and in
consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all Holders of the Securities, as follows:

 

ARTICLE I

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

 

SECTION
1.1.  Definitions.

 

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

 

(a)  the terms defined in this Article
I have the meanings assigned to them in this Article I;

 

(b)  the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase
“without limitation”;

 

(c)  all accounting terms not
otherwise defined herein have the meanings assigned to them in accordance with
GAAP;

 

(d)  unless the context
otherwise requires, any reference to an “Article” or a “Section” refers to an
Article or a Section, as the case may be, of this Indenture;

 

(e)  the words “hereby”,
“herein”, “hereof” and “hereunder” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other
subdivision;

 

1

 

 

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

 

(g)  the masculine, feminine or
neuter genders used herein shall include the masculine, feminine and neuter
genders.

 

“Act”
when used with respect to any Holder, has the meaning specified in Section
1.4.

 

“Administrative
Trustee” means, with respect to the Trust, a Person identified as an
“Administrative Trustee” in the Trust Agreement, solely in its capacity as
Administrative Trustee of the Trust under the Trust Agreement and not in its
individual capacity, or its successor in interest in such capacity, or any
successor Administrative Trustee appointed as therein provided.

 

“Additional
Interest” means the interest, if any, that
shall accrue on any amounts payable  on
the Securities, the payment of which has not been made on the applicable
Interest Payment Date and which shall accrue at the rate per annum specified or
determined as specified in such Security.

 

“Additional
Tax Sums” has the meaning specified in Section
10.5.

 

“Additional
Taxes” means taxes, duties or other
governmental charges imposed on the Trust as a result of a Tax Event (which,
for the sake of clarity, does not include amounts required to be deducted or
withheld by the Trust from payments made by the Trust to or for the benefit of
the Holder of, or any Person that acquires a beneficial interest in, the
Securities).

 

“Affiliate” of any
specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
Person. For the purposes of this definition, “control,” when used with respect
to any specified Person, means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

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

 

“Authenticating
Agent” means any Person authorized by the
Trustee pursuant to Section 6.11 to act on behalf of the Trustee to
authenticate the Securities.

 

“Bankruptcy
Code” means Title 11 of the United States Code
or any successor statute thereto, in each case as amended from time to time.

 

“Board
of Directors” means the board of directors of
the Company or any duly authorized committee of that board.

 

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

 

2

 

 

“Business
Day” means any day other than (i) a Saturday
or Sunday, (ii) a day on which banking institutions in the City of New York are
authorized or required by law or executive order to remain closed or (iii) a
day on which the Corporate Trust Office of the Trustee is closed for business.

 

“Calculation
Agent” has the meaning specified in Section 10.4.

 

“Capital Disqualification Event” means the
receipt by the Company of an Opinion of Counsel experienced in such matters
that, as a result of an amendment to or a change in law or regulation
(including any announced prospective change) or a change in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than insubstantial risk that
within ninety (90) days of the date of such opinion, the aggregate principal
amount of the Securities will not be eligible to be treated by the Company as
“Tier 1 Capital” (or the then equivalent) for purposes of the capital adequacy
guidelines of the Federal Reserve Board or other “appropriate Federal banking
agency” as such term is defined in 12 U.S.C. 1813(q), which amendment, change
or prospective change becomes effective or would become effective, as the case
may be, on or after the date of issuance of the Securities; provided,
however,
that the inability of the Company to treat all or any portion of the principal
amount of the Securities as Tier 1 Capital shall not constitute the basis for a
Capital Disqualification Event if such inability results from the Company
having such Securities outstanding in an amount that for any reason is in
excess of the amount which may now or hereafter qualify for treatment as Tier 1
Capital under applicable capital adequacy guidelines.

 

“Common
Securities” has the meaning specified in the
first recital of this Indenture.

 

“Common
Stock” means the common stock, par value $0.01
per share, of the Company.

 

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

 

“Company
Request” and “Company
Order” mean, respectively, the written request or order signed in
the name of the Company by its Chairman of the Board of Directors, its Vice
Chairman of the Board of Directors, its Chief Executive Officer, President or a
Vice President, and by its Chief Financial Officer, its Treasurer, an Assistant
Treasurer, its Secretary or an Assistant Secretary, and delivered to the
Trustee.

 

“Corporate
Trust Office” means the principal office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of this Indenture is located at 101
Barclay Street, New York, New York 10286, Attention: Corporate Trust
Administration.

 

“Debt”
means, with respect to any Person, whether recourse is to all or a portion of
the assets of such Person, whether currently existing or hereafter incurred and
whether or not contingent and without duplication, (i) every obligation of such
Person for money borrowed; (ii) every obligation of such Person evidenced by
bonds, debentures, notes or other similar instruments, including obligations
incurred in connection with the acquisition of property, assets or businesses;
(iii) every reimbursement obligation of such Person with respect to letters of 

 

3

 

credit, bankers’ acceptances or
similar facilities issued for the account of such Person; (iv) every obligation
of such Person issued or assumed as the deferred purchase price of property or
services (but excluding trade accounts payable or other accrued liabilities
arising in the ordinary course of business); (v) every capital lease obligation
of such Person; (vi) all indebtedness of such Person, whether incurred on or
prior to the date of this Indenture or thereafter incurred, for claims in
respect of derivative products, including interest rate, foreign exchange rate
and commodity forward contracts, options and swaps and similar arrangements;
(vii) every obligation of the type referred to in clauses (i) through (vi) of
another Person and all dividends of another Person the payment of which, in
either case, such Person has guaranteed or is responsible or liable for, directly
or indirectly, as obligor or otherwise; and (viii) any renewals, extensions,
refundings, amendments or modifications of any obligation of the type referred
to in clauses (i) through (vii).

 

“Defaulted
Interest” has the meaning specified in Section
3.1.

 

“Delaware Trustee” means,
with respect to the Trust, the Person identified as the “Delaware Trustee” in
the Trust Agreement, solely in its capacity as Delaware Trustee of the Trust
under the Trust Agreement and not in its individual capacity, or its successor
in interest in such capacity, or any successor Delaware Trustee appointed as
therein provided.

 

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

 

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

 

“Distributions” means amounts payable in
respect of the Trust Securities as provided in the Trust Agreement and referred
to therein as “Distributions.”

 

“Dollar”
or  “$” means the currency of the United States
of America that, as at the time of payment, is legal tender for the payment of
public and private debts.

 

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

 

“Event
of Default” has the meaning specified in Section
5.1.

 

“Exchange
Act” means the Securities Exchange Act of 1934
or any statute successor thereto, in each case as amended from time to time.

 

“Expiration
Date” has the meaning specified in Section
1.4.

 

“Extension
Period” has the meaning specified in Section
3.9.

 

“Federal
Reserve Board” means the Board of Governors of
the Federal Reserve System, as from time to time constituted, or if at any time
after the execution of this Indenture such Board

 

4

 

is not existing and performing
the duties now assigned to it, then the body performing such duties on such
date.

 

“GAAP”
means United States generally accepted accounting principles, consistently
applied, from time to time in effect.

 

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

 

“Government
Obligation” means (a) any security that is (i)
a direct obligation of the United States of America of which the full faith and
credit of the United States of America is pledged or (ii) an obligation of a
Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America or the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of
America, which, in either case (i) or (ii), is not callable or redeemable at
the option of the issuer thereof, and (b) any depositary receipt issued by a
bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with
respect to any Government Obligation that is specified in clause (a) above and
held by such bank for the account of the holder of such depositary receipt, or
with respect to any specific payment of principal of or interest on any
Government Obligation that is so specified and held, provided, that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depositary receipt from any amount received by the custodian in respect of
the Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

 

“Guarantee
Agreement” means the Guarantee Agreement
executed by the Company and The Bank of New York, as Guarantee Trustee,
contemporaneously with the execution and delivery of this Indenture, for the
benefit of the holders of the Preferred Securities, as modified, amended or
supplemented from time to time.

 

“Holder”
means a Person in whose name a Security is registered in the Securities
Register.

 

“Indenture”
means this instrument as originally executed or as it may from time to time be
amended or supplemented by one or more amendments or indentures supplemental
hereto entered into pursuant to the applicable provisions hereof.

 

“Interest
Payment Date” means January 30, April 30, July
30 and October 30 of each year, commencing on July 30, 2003, during the term of
this Indenture.

 

“Investment
Company Act” means the Investment Company Act
of 1940 or any successor statute thereto, in each case as amended from time to
time.

 

“Investment Company Event”
means the receipt by the Company of an Opinion of Counsel experienced in such
matters to the effect that, as a result of the occurrence of a change in law or
regulation (including any announced prospective change) or a written change in
interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority, there is more than an
insubstantial risk that the Trust is or, within ninety (90) days of the date of
such opinion will be, considered an “investment company” that is

 

5

 

required to be registered under
the Investment Company Act, which change or prospective change becomes
effective or would become effective, as the case may be, on or after the date
of the issuance of the Securities.

 

“LIBOR”
has the meaning specified in Schedule A.

 

“LIBOR
Business Day” has the meaning specified in
Schedule A.

 

“LIBOR
Determination Date” has the meaning specified
in Schedule A.

 

“Maturity,”
when used with respect to any Security, means the date on which the principal
of such Security or any installment of principal becomes due and payable as
therein or herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption or otherwise.

 

“Notice
of Default” means a written notice of the kind
specified in Section 5.1(c).

 

“Office of
Thrift Supervision” means the Office of Thrift Supervision, as from
time to time constituted or, if at any time after the execution of this
Indenture such Office is not existing and performing the duties now assigned to
it, then the body performing such duties at such time.

 

“Officers’ Certificate” means a certificate signed by the Chairman of
the Board, a Vice Chairman of the Board, the Chief Executive Officer, the
President or a Vice President, and by the Chief Financial Officer, the
Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary, of
the Company and delivered to the Trustee.

 

“Operative
Documents” means the Trust Agreement, the
Indenture, the Purchase Agreement, the Guarantee Agreement and the Securities.

 

“Opinion
of Counsel” means a written opinion of counsel,
who may be counsel for or an employee of the Company or any Affiliate of the
Company.

 

“Original
Issue Date” means the date of original issuance
of each Security.

 

“Outstanding”
means, when used in reference to any Securities, as of the date of
determination, all Securities theretofore authenticated and delivered under
this Indenture, except:

 

(i) 
Securities theretofore canceled by the Trustee or delivered to the
Trustee for cancellation;

 

(ii) 
Securities for whose payment or redemption money in the necessary amount
has been theretofore deposited with the Trustee or any Paying Agent (other than
the Company) in trust or set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent) for the Holders of such
Securities; provided,
that, if such Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made; and

 

6

 

(iii) 
Securities that have been paid or in substitution for or in lieu of
which other Securities have been authenticated and delivered pursuant to the
provisions of this Indenture, unless proof satisfactory to the Trustee is
presented that any such Securities are held by Holders in whose hands such
Securities are valid, binding and legal obligations of the Company;

 

provided, that, in determining whether the Holders
of the requisite principal amount of Outstanding Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder,
Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or such other obligor shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Securities that a Responsible Officer of the
Trustee actually knows to be so owned shall be so disregarded. Securities so
owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Securities and that the pledgee is not the
Company or any other obligor upon the Securities or any Affiliate of the
Company or such other obligor. Notwithstanding anything herein to the contrary,
Securities initially issued to the Trust that are owned by the Trust shall be
deemed to be Outstanding notwithstanding the ownership by the Company or an
Affiliate of any beneficial interest in the Trust.

 

“Paying
Agent” means the Trustee or any Person
authorized by the Company to pay the principal of or any premium or interest
on, or other amounts in respect of, any Securities on behalf of the Company.

 

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

 

“Place
of Payment” means, with respect to the
Securities, the Corporate Trust Office of the Trustee.

 

“Preferred
Securities” has the meaning specified in the
first recital of this Indenture.

 

“Predecessor
Security” of any particular Security means
every previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security. For the purposes of this definition, any
security authenticated and delivered under Section 3.6 in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

 

“Proceeding”
has the meaning specified in Section 12.2.

 

“Property
Trustee” means the Person identified as the
“Property Trustee” in the Trust Agreement, solely in its capacity as Property
Trustee of the Trust under the Trust Agreement and not in its individual
capacity, or its successor in interest in such capacity, or any successor
Property Trustee appointed as therein provided.

 

7

 

“Purchase
Agreement” means the agreement, dated as of the
date hereof, between the Company and the Trust and Trapeza CDO III, LLC.

 

“Redemption
Date” means, when used with respect to any
Security to be redeemed, the date fixed for such redemption by or pursuant to
this Indenture.

 

“Redemption
Price” means, when used with respect to any
Security to be redeemed, in whole or in part, the price at which such security
or portion thereof is to be redeemed as fixed by or pursuant to this Indenture.

 

“Reference
Banks” has the meaning specified in Schedule A.

 

“Regular
Record Date” for the interest payable on any
Interest Payment Date with respect to the Securities means the date that is
fifteen (15) days preceding such Interest Payment Date (whether or not a
Business Day).

 

“Responsible
Officer” means, with respect to the Trustee,
any Senior Vice President, any Vice President, any Assistant Vice President,
the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer,
any Trust Officer or Assistant Trust Officer, or any other officer of the
Corporate Trust Department of the Trustee and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is
referred because of that officer’s knowledge of and familiarity with the
particular subject.

 

“Rights
Plan” means a plan of the Company providing for
the issuance by the Company to all holders of its Common Stock of rights
entitling the holders thereof to subscribe for or purchase shares of any class
or series of capital stock of the Company which rights (i) are deemed to be
transferred with such shares of such Common Stock and (ii) are also issued in
respect of future issuances of such Common Stock, in each case until the
occurrence of a specified event or events.

 

“Securities”
or “Security” means any debt securities
or debt security, as the case may be, authenticated and delivered under this
Indenture.

 

“Securities
Act” means the Securities Act of 1933 or any
successor statute thereto, in each case as amended from time to time.

 

“Securities
Register” and “Securities
Registrar” have the respective meanings specified
in Section 3.5.

 

“Senior
Debt” means the principal of and any premium
and interest on (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Company, whether
or not such claim for post-petition interest is allowed in such proceeding) all
Debt of the Company, whether incurred on or prior to the date of this Indenture
or thereafter incurred, unless it is provided in the instrument creating
or evidencing the same or pursuant to which the same is outstanding, that such
obligations are not superior in right of payment to the Preferred Securities; provided, however, that if the
Company is subject to the regulation and supervision of an “appropriate Federal
banking agency” within the meaning of 12 U.S.C. 1813(q),  the Company
shall have received the approval of such appropriate Federal banking

 

8

 

agency  prior to
issuing any such obligation; and  provided, further, that Senior Debt shall
not include any other debt securities and guarantees in respect of such debt
securities issued to any trust other than the Trust (or a trustee of any such
trust), partnership or other entity affiliated with the Company that is a
financing vehicle of the Company (a “financing entity”) in connection with the
issuance by such financing entity of equity securities or other securities that
are treated as equity capital for regulatory capital purposes guaranteed by the
Company pursuant to an instrument that ranks pari passu with or junior in
right of payment to the Indenture, including, without limitation, securities
issued by PCC Capital I and Pacific Crest Capital Trust I.

 

“Special
Event” means the occurrence of a Capital
Disqualification Event, an Investment Company Event or a Tax Event.

 

“Special Record Date” for the payment of
any Defaulted Interest means a date fixed by the Trustee pursuant to Section
3.1.

 

“Stated
Maturity” means April 30, 2033.

 

“Subsidiary”
means a Person more than fifty percent (50%) of the outstanding voting stock or
other voting interests of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or more
other Subsidiaries. For purposes of this definition, “voting stock” means stock
that ordinarily has voting power for the election of directors, whether at all
times or only so long as no senior class of stock has such voting power by
reason of any contingency.

 

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

 

“Trust”
has the meaning specified in the first recital of this Indenture.

 

“Trust
Agreement” means the Amended and Restated Trust
Agreement executed and delivered by the Company, the Property Trustee, The Bank
of New York (Delaware) and the

 

9

 

Administrative Trustees named
therein, contemporaneously with the execution and delivery of this Indenture,
for the benefit of the holders of the Trust Securities, as amended or
supplemented from time to time.

 

“Trustee”
means the Person named as the “Trustee”
in the first paragraph of this instrument, solely in its capacity as such and
not in its individual capacity, until a successor Trustee shall have become
such pursuant to the applicable provisions of this Indenture, and, thereafter,
“Trustee”
shall mean or include each Person who is then a Trustee hereunder.

 

“Trust Indenture Act” means the Trust Indenture
Act of 1939, as amended and as in effect on the date as of this Indenture.

 

“Trust Securities”
has the meaning specified in the first recital of this Indenture.

 

SECTION
1.2.  Compliance
Certificate and Opinions.

 

(a)  Upon any application or
request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent (including covenants
compliance with which constitutes a condition precedent), if any, provided for
in this Indenture relating to the proposed action have been complied with and
an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent (including covenants compliance with which constitutes a
condition precedent), if any, have been complied with, except that, in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

 

(b)  Every certificate with
respect to compliance with a condition or covenant provided for in this
Indenture (other than the certificate provided pursuant to Section 10.3)
shall include:

 

(i)  a
statement by each individual signing such certificate or opinion that such
individual has read such covenant or condition and the definitions herein
relating thereto;

 

(ii) 
a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions of such individual
contained in such certificate or opinion are based;

 

(iii) 
a statement that, in the opinion of such individual, he or she has made
such examination or investigation as is necessary to enable him or her to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

 

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

 

SECTION 1.3.  Forms of
Documents Delivered to Trustee.

 

(a)  In any case where several
matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or

 

10

 

covered by the opinion of, only
one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters
and one or more other such Persons as to other matters, and any such Person may
certify or give an opinion as to such matters in one or several documents.

 

(b)  Any certificate or opinion
of an officer of the Company may be based, insofar as it relates to legal
matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or after reasonable inquiry should know, that the
certificate or opinion or representations with respect to matters upon which his
or her certificate or opinion is based are erroneous. Any such certificate or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Company stating that the information with respect to such factual matters
is in the possession of the Company, unless such counsel knows, or after
reasonable inquiry should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

 

(c)  Where any Person is
required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

 

(d)  Whenever, subsequent to the
receipt by the Trustee of any Board Resolution, Officers’ Certificate, Opinion
of Counsel or other document or instrument, a clerical, typographical or other
inadvertent or unintentional error or omission shall be discovered therein, a
new document or instrument may be substituted therefor in corrected form with
the same force and effect as if originally received in the corrected form and,
irrespective of the date or dates of the actual execution and/or delivery
thereof, such substitute document or instrument shall be deemed to have been
executed and/or delivered as of the date or dates required with respect to the
document or instrument for which it is substituted.  Without limiting the generality of the foregoing, any Securities
issued under the authority of such defective document or instrument shall
nevertheless be the valid obligations of the Company entitled to the benefits
of this Indenture equally and ratably with all other Outstanding Securities.

 

SECTION 1.4.  Acts of Holders.

 

(a)  Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given to or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Holders in person or by an agent thereof duly appointed in writing; and,
except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments (including any appointment of an
agent) is or are delivered to the Trustee, and, where it is hereby expressly
required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of
the Holders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section 1.4.

 

(b)  The fact and date of the
execution by any Person of any such instrument or writing may be proved by the
affidavit of a witness of such execution or by the certificate of any notary

 

11

 

public or
other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing such instrument or writing acknowledged to him or
her the execution thereof. Where such execution is by a Person acting in other
than his or her individual capacity, such certificate or affidavit shall also
constitute sufficient proof of his or her authority.  The fact and date of the execution by any Person of any such
instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner that the Trustee deems sufficient and in
accordance with such reasonable rules as the Trustee may determine.

 

(c)  The ownership of Securities
shall be proved by the Securities Register.

 

(d)  Any request, demand,
authorization, direction, notice, consent, waiver or other action by the Holder
of any Security shall bind every future Holder of the same Security and the
Holder of every Security issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done or suffered to
be done by the Trustee or the Company in reliance thereon, whether or not
notation of such action is made upon such Security.

 

(e)  Without limiting the
foregoing, a Holder entitled to take any action hereunder with regard to any
particular Security may do so with regard to all or any part of the principal
amount of such Security or by one or more duly appointed agents each of which
may do so pursuant to such appointment with regard to all or any part of such
principal amount.

 

(f)  Except as set forth in
paragraph (g) of this Section 1.4, the Company may set any day as a
record date for the purpose of determining the Holders of Outstanding
Securities entitled to give, make or take any request, demand, authorization,
direction, notice, consent, waiver or other action provided or permitted by
this Indenture to be given, made or taken by Holders of Securities. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities on such record date, and no other Holders, shall be entitled to take
the relevant action, whether or not such Holders remain Holders after such
record date; provided, that no
such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date (as defined below) by Holders of the requisite
principal amount of Outstanding Securities on such record date.  Nothing in this paragraph shall be construed
to prevent the Company from setting a new record date for any action for which
a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be canceled and of no effect).  Promptly
after any record date is set pursuant to this paragraph, the Company, at its
own expense, shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the Trustee in
writing and to each Holder of Securities in the manner set forth in Section
1.6.

 

(g)  The Trustee may set any day
as a record date for the purpose of determining the Holders of Outstanding
Securities entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration or rescission or annulment
thereof referred to in Section 5.2, (iii) any request to institute
proceedings referred to in Section 5.7(b) or (iv) any direction referred
to in Section 5.12. If any record date is set pursuant to this
paragraph, the Holders of Outstanding Securities on such record date, and no
other Holders, shall be entitled to join in such notice, declaration, request
or direction, whether or not such Holders remain Holders after such record
date; provided,
that no such action shall be effective hereunder unless taken on or prior to
the applicable Expiration Date by Holders of the requisite principal amount of

 

12

 

Outstanding
Securities on such record date. Nothing in this paragraph shall be construed to
prevent the Trustee from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be canceled and of no effect).  Promptly
after any record date is set pursuant to this paragraph, the Trustee, at the
Company’s expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be given to the Company in
writing and to each Holder of Securities in the manner set forth in Section
1.6.

 

(h)  With respect to any record
date set pursuant to paragraph (f) or (g) of this Section 1.4, the party
hereto that sets such record date may designate any day as the “Expiration  Date” and from time to time may change the
Expiration Date to any earlier or later day; provided, that no such change shall
be effective unless notice of the proposed new Expiration Date is given to the
other party hereto in writing, and to each Holder of Securities in the manner
set forth in Section 1.6, on or prior to the existing Expiration Date.
If an Expiration Date is not designated with respect to any record date set
pursuant to this Section 1.4, the party hereto that set such record date
shall be deemed to have initially designated the ninetieth (90th)
day after such record date as the Expiration Date with respect thereto, subject
to its right to change the Expiration Date as provided in this paragraph.
Notwithstanding the foregoing, no Expiration Date shall be later than the one
hundred and eightieth (180th) day after the applicable record date.

 

SECTION 1.5.
 Notices, Etc. to Trustee and Company.

 

Any request,
demand, authorization, direction, notice, consent, waiver, Act of Holders, or
other document provided or permitted by this Indenture to be made upon, given
or furnished to, or filed with:

 

(a)  the Trustee by any Holder,
any holder of Preferred Securities or the Company shall be sufficient for every
purpose hereunder if made, given, furnished or filed in writing to or with the
Trustee at its Corporate Trust Office, or

 

(b)  the Company by the Trustee,
any Holder or any holder of Preferred Securities shall be sufficient for every
purpose hereunder if in writing and mailed, first class, postage prepaid, to
the Company addressed to it at 30343 Canwood Street, Agoura Hills, CA 91301 or
at any other address previously furnished in writing to the Trustee by the
Company.

 

SECTION
1.6.  Notice
to Holders; Waiver.

 

Where this
Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first class, postage prepaid, to each Holder affected by such event
to the address of such Holder as it appears in the Securities Register, not
later than the latest date, and not earlier than the earliest date, prescribed
for the giving of such notice. If, by reason of the suspension of or
irregularities in regular mail service or for any other reason, it shall be
impossible or impracticable to mail notice of any event to Holders when said
notice is required to be given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall be satisfactory to the Trustee
shall be deemed to be a sufficient giving of such notice. In any case where
notice to Holders is

 

13

 

given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

 

SECTION 1.7.  Effect of
Headings and Table of Contents.

 

The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction of this Indenture.

 

SECTION
1.8.  Successors
and Assigns.

 

This Indenture
shall be binding upon and shall inure to the benefit of any successor to the
Company and the Trustee, including any successor by operation of law.  Except in connection with a transaction
involving the Company that is permitted under Article VIII and pursuant
to which the assignee agrees in writing to perform the Company’s obligations
hereunder, the Company shall not assign its obligations hereunder.

 

SECTION 1.9.  Separability
Clause.

 

If any provision
in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby, and there
shall be deemed substituted for the provision at issue a valid, legal and
enforceable provision as similar as possible to the provision at issue.

 

SECTION
1.10.  Benefits
of Indenture.

 

Nothing in
this Indenture or in the Securities, express or implied, shall give to any
Person, other than the parties hereto and their successors and assigns, the
holders of Senior Debt, the Holders of the Securities and, to the extent expressly
provided in Sections 5.2, 5.8, 5.9, 5.11, 5.13,
9.2 and 10.7, the holders of Preferred Securities, any benefit or
any legal or equitable right, remedy or claim under this Indenture.

 

SECTION
1.11.  Governing
Law.

 

This Indenture and the rights and obligations
of each of the Holders, the Company and the Trustee shall be construed and
enforced in accordance with and governed by the laws of the State of New York
without reference to its conflict of laws provisions (other than Section 5-1401
of the General Obligations Law).

 

SECTION
1.12.  Submission to Jurisdiction.

 

ANY LEGAL ACTION OR PROCEEDING
BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS
INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW YORK,
IN AND FOR THE 

 

14

 

COUNTY OF NEW YORK, OR OF THE
UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE
SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS
INDENTURE, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND
COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN
CONNECTION WITH THIS INDENTURE.

 

SECTION 1.13.  Non-Business
Days.

 

If any Interest
Payment Date, Redemption Date or Stated Maturity of any Security shall not be a
Business Day, then (notwithstanding any other provision of this Indenture or
the Securities) payment of interest, premium or principal or other amounts in
respect of such Security shall not be made on such date, but shall be made on
the next succeeding Business Day (and no interest shall accrue in respect of
the amounts whose payment is so delayed for the period from and after such
Interest Payment Date, Redemption Date or Stated Maturity, as the case may be,
until such next succeeding Business Day) except that, if such Business Day
falls in the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on the Interest Payment Date or Redemption Date or at the Stated
Maturity.

 

ARTICLE II

 

SECURITY FORMS

 

SECTION
2.1.  Form
of Security.

 

Any Security
issued hereunder shall be in substantially the following form:

 

PACIFIC CREST CAPITAL, INC.

 

Floating Rate Junior Subordinated Note due
2033

 

	
  No. 1

  	
   

  	
  $6,190,000

  

 

Pacific Crest
Capital, Inc., a corporation organized and existing under the laws of Delaware
(hereinafter called the “Company,”
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to
[                ],
or registered assigns, the principal sum of Six Million One Hundred and Ninety
Thousand Dollars ($6,190,000) or such other principal amount represented hereby
as may be set forth in the records of the Securities Registrar hereinafter
referred to in accordance with the Indenture on April 30, 2033.  The Company further promises to pay interest
on said principal sum from April 23, 2003, or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, quarterly
(subject to deferral as set forth herein) in arrears on January 30, April 30,
July 30 and October 30 of each year, commencing July 30, 2003, or if any such
day is not a Business Day, on the next succeeding Business Day (and no interest
shall accrue in respect of the amounts whose payment is so delayed for the
period from and after such Interest Payment Date until such next succeeding Business
Day), except that, if such Business

15

 

Day falls in the next
succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case, with the same force and effect as if made
on the Interest Payment Date, at the fixed rate equal to 6.58% per annum
through the Interest Payment Date in April 2008, and at a variable rate equal
to LIBOR plus 3.15% per annum thereafter, together with Additional Tax Sums, if
any, as provided in Section 10.5 of the Indenture, until the principal
hereof is paid or duly provided for or made available for payment; provided, further, that any overdue
principal, premium or Additional Tax Sums and any overdue installment of
interest shall bear Additional Interest at the fixed rate equal to 6.58% per
annum through the Interest Payment Date in April 2008 and at a variable rate
equal to LIBOR plus 3.15% per annum thereafter (to the extent that the payment
of such interest shall be legally enforceable), compounded quarterly, from the
dates such amounts are due until they are paid or made available for payment,
and such interest shall be payable on demand.

 

The amount of
interest payable shall be computed on the basis of a 360-day year and the
actual number of days elapsed in the relevant interest period. The amount of
interest payable for any full interest period shall be computed by dividing the
applicable rate per annum by four. The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date shall, as provided in the
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest installment. 
Any such interest not so punctually paid or duly provided for shall
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities not less than
ten (10) days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

 

So long as no Event of Default
has occurred and is continuing, the Company shall have the right, at any time
and from time to time during the term of this Security, to defer the payment of
interest on this Security for a period of up to twenty (20) consecutive
quarterly interest payment periods (each such period, an “Extension Period”), during which Extension
Period(s), no interest shall be due and payable (except any Additional Tax Sums
that may be due and payable).  No
Extension Period shall end on a date other than an Interest Payment Date, and
no Extension Period shall extend beyond the Stated Maturity of the principal of
this Security.  No interest shall be due
and payable during an Extension Period (except any Additional Tax Sums that may
be due and payable), except at the end thereof, but each installment of
interest that would otherwise have been due and payable during such Extension
Period shall bear Additional Interest (to the extent payment of such interest
would be legally enforceable) at the fixed rate equal to 6.58% through the
Interest Payment Date in April 2008, and at a variable rate equal to LIBOR plus
3.15% per annum thereafter, compounded quarterly, from the dates on which
amounts would have otherwise been due and payable until paid or made available
for payment.  At the end of any such
Extension Period, the Company shall pay all interest then accrued and unpaid on
this Security, together with such Additional Interest.  Prior to the termination of any such
Extension Period, the Company may further defer the payment of interest; provided, that (i) all such previous and
further extensions comprising such Extension Period do not exceed twenty

 

16

 

(20) quarterly interest payment
periods, (ii) no Extension Period shall end on a date other than an Interest
Payment Date and (iii) no Extension Period shall extend beyond the Stated
Maturity of the principal of this Security. 
Upon the termination of any such Extension Period and upon the payment
of all accrued and unpaid interest and any Additional Interest then due on any
Interest Payment Date, the Company may elect to begin a new Extension Period; provided, that (i) such Extension Period
does not exceed twenty (20) quarterly interest payment periods, (ii) no
Extension Period shall end on a date other than an Interest Payment Date and
(iii) no Extension Period shall extend beyond the Stated Maturity of the
principal of this Security.  The Company
shall give the Holder of this Security and the Trustee written notice of its
election to begin any such Extension Period at least one Business Day prior to
the next succeeding Interest Payment Date on which interest on this Security
would be payable but for such deferral or, so long as this Security is held by
the Trust, at least one Business Day prior to the earlier of (i) the next
succeeding date on which Distributions on the Preferred Securities of Pacific Crest Capital Trust II would
be payable but for such deferral and (ii) the date on which the Property
Trustee of such Trust is required to give notice to any securities exchange or
other applicable self-regulatory organization or to holders of such Preferred
Securities of the record date for the payment of such Distributions.

 

During any
such Extension Period, the Company shall not (i) declare or pay any dividends
or distributions on, or redeem, purchase, acquire or make a liquidation payment
with respect to, any of the Company’s capital stock or (ii) make any payment of
principal of or any interest or premium on or repay, repurchase or redeem any
debt securities of the Company that rank pari
passu in all respects with or junior in interest to this Security
(other than (a) repurchases, redemptions or other acquisitions of shares of
capital stock of the Company in connection with (1) any employment contract,
benefit plan or other similar arrangement with or for the benefit of any one or
more employees, officers, directors or consultants, (2) a dividend reinvestment
or stockholder stock purchase plan or (3) the issuance of capital stock of the
Company (or securities convertible into or exercisable for such capital stock)
as consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of an exchange or conversion of
any class or series of the Company’s capital stock (or any capital stock of a
Subsidiary of the Company) for any class or series of the Company’s capital
stock or of any class or series of the Company’s indebtedness for any class or
series of the Company’s capital stock, (c) the purchase of fractional interests
in shares of the Company’s capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged,
(d) any declaration of a dividend in connection with any Rights Plan, the
issuance of rights, stock or other property under any Rights Plan, or the
redemption or repurchase of rights pursuant thereto or (e) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or
the stock issuable upon exercise of such warrants, options or other rights is
the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock).

 

Payment of
principal of, premium, if any, and interest on this Security shall be made in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts.  Payments of principal, premium, if any, and
interest due at the Maturity of this Security shall be made at the Place of Payment upon surrender of
such Securities to the Paying Agent, and payments of interest shall be made,
subject to such surrender where applicable, by wire transfer at such place and
to such account at a banking institution in

 

17

 

the United States as may be
designated in writing to the Paying Agent at least ten (10) Business Days prior
to the date for payment by the Person entitled thereto unless proper written
transfer instructions have not been received by the relevant record date, in
which case such payments shall be made by check mailed to the address of such
Person as such address shall appear in the Security Register.  Notwithstanding the foregoing, so long as
the holder of this Security is the Property Trustee, the payment of the
principal of (and premium, if any) and interest (including any overdue
installment of interest and Additional Tax Sums, if any) on this Security will
be made at such place and to such account as may be designated by the Property
Trustee.

 

The
indebtedness evidenced by this Security is, to the extent provided in the
Indenture, subordinate and junior in right of payment to the prior payment in
full of all Senior Debt, and this Security is issued subject to the provisions
of the Indenture with respect thereto. Each Holder of this Security, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee on his or her behalf to take such actions as
may be necessary or appropriate to effectuate the subordination so provided and
(c) appoints the Trustee his or her attorney-in-fact for any and all such
purposes. Each Holder hereof, by his or her acceptance hereof, waives all
notice of the acceptance of the subordination provisions contained herein and
in the Indenture by each holder of Senior Debt, whether now outstanding or
hereafter incurred, and waives reliance by each such holder upon said
provisions.

 

Unless the
certificate of authentication hereon has been executed by the Trustee by manual
signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

[FORM OF REVERSE OF SECURITY]

 

This Security
is one of a duly authorized issue of securities of the Company (the “Securities”) issued under the Junior
Subordinated Indenture, dated as of April 23, 2003 (the “Indenture”), between the Company and
The Bank of New York, as Trustee (in such capacity, the “Trustee,” which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee, the holders of Senior Debt and the Holders of the Securities, and
of the terms upon which the Securities are, and are to be, authenticated and
delivered.

 

All terms used
in this Security that are defined in the Indenture or in the Amended and
Restated Trust Agreement, dated as of April 23, 2003 (as modified, amended or
supplemented from time to time, the “Trust
Agreement”), relating to the Pacific Crest Capital
Trust II (the “Trust”)
among the Company, as Depositor, the Trustees named therein and the Holders
from time to time of the Trust Securities issued pursuant thereto, shall have
the meanings assigned to them in the Indenture or the Trust Agreement, as the
case may be.

 

The Company
may, on any Interest Payment Date, at its option, upon not less than thirty
(30) days’ nor more than sixty (60) days’ written notice to the Holders of the
Securities (unless a shorter notice period shall be satisfactory to the
Trustee) on or after April 30, 2008 and subject to the terms and conditions of Article
XI of the Indenture, redeem this Security in whole at any time or in part
from time to time at a Redemption Price equal to one hundred percent (100%) of
the

 

18

 

principal amount hereof,
together, in the case of any such redemption, with accrued interest, including
any Additional Interest, to but excluding the date fixed for redemption;
provided, that the Company shall have received the prior approval of the
Federal Reserve Board if then required.

 

In addition,
upon the occurrence and during the continuation of a Special Event, the Company
may, at its option, upon not less than thirty (30) days’ nor more than sixty
(60) days’ written notice to the Holders of the Securities (unless a shorter
notice period shall be satisfactory to the Trustee), redeem this Security, in
whole but not in part, subject to the terms and conditions of Article XI
of the Indenture at a Redemption Price equal to one hundred percent (100%) of
the principal amount hereof, together, in the case of any such redemption, with
accrued interest, including any Additional Interest, to but excluding the date
fixed for redemption; provided,
that the Company shall have received the prior approval of the Federal Reserve
Board if then required.

 

In the event
of redemption of this Security in part only, a new Security or Securities for
the unredeemed portion hereof will be issued in the name of the Holder hereof
upon the cancellation hereof.  If less
than all the Securities are to be redeemed, the particular Securities to be
redeemed shall be selected not more than sixty (60) days prior to the
Redemption Date by the Trustee from the Outstanding Securities not previously
called for redemption, by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of a portion
of the principal amount of any Security.

 

The Indenture permits, with
certain exceptions as therein provided, the Company and the Trustee at any time
to enter into a supplemental indenture or indentures for the purpose of
modifying in any manner the rights and obligations of the Company and of the
Holders of the Securities, with the consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities. The Indenture also
contains provisions permitting Holders of specified percentages in principal
amount of the Securities, on behalf of the Holders of all Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

No reference
herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and any premium and interest, including
any Additional Interest, on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

 

As provided in
the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Securities Register, upon
surrender of this Security for registration of transfer at the office or agency
of the Company maintained for such purpose, duly endorsed by, or accompanied by
a written instrument of transfer in form satisfactory to the Company and the
Securities Registrar and duly executed by, the Holder hereof or such Holder’s
attorney duly authorized in writing, and thereupon one or more new Securities,
of like tenor, of

 

19

 

authorized denominations and
for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

 

The Securities
are issuable only in registered form without coupons in minimum denominations
of $100,000 and any integral multiple of $1,000 in excess thereof. As provided
in the Indenture and subject to certain limitations therein set forth,
Securities are exchangeable for a like aggregate principal amount of Securities
and of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

 

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

 

The Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
whether or not this Security be overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary.

 

The Company
and, by its acceptance of this Security or a beneficial interest therein, the
Holder of, and any Person that acquires a beneficial interest in, this Security
agree that, for United States federal, state and local tax purposes, it is
intended that this Security constitute indebtedness.

 

This
Security shall be construed and enforced in accordance with and governed by the
laws of the State of New York, without reference to its conflict of laws
provisions (other than Section 5-1401 of the General Obligations Law).

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed.

 

	
   

  	
  Pacific Crest Capital, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

SECTION
2.2.  Restricted
Legend.

 

(a)  Any Security issued
hereunder shall bear a legend in substantially the following form:

 

“THIS SECURITY
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A
NOMINEE OF DTC.  THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC
OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE,
AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS

 

20

 

SECURITY AS A
WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER
NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

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

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND SUCH SECURITIES, AND ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM.  EACH PURCHASER OF
ANY SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

 

THE HOLDER OF
THE SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE
COMPANY THAT (A) SUCH SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE
TRANSFERRED ONLY (I) TO THE COMPANY, (II) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (III) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING
OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT
THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF AN
“ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR (V) PURSUANT TO AN EXEMPTION FROM THE SECURITIES ACT, IN EACH
CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND, IN THE CASE OF (III) OR
(V), SUBJECT TO THE RIGHT OF THE COMPANY TO REQUIRE AN OPINION OF COUNSEL AND
OTHER INFORMATION SATISFACTORY TO IT AND (B) THE HOLDER WILL NOTIFY

 

21

 

ANY PURCHASER
OF ANY SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

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

 

THE HOLDER OF
THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF
ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,
INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)
(EACH A “PLAN”),
OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY
PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY
PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER
OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE
BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON
BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING
THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE.

 

THIS
OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY
AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
CORPORATION (THE “FDIC”).”

 

(b)  The above legends shall not
be removed from any Security unless there is delivered to the Company
satisfactory evidence, which may include an opinion of counsel, as may be
reasonably required to ensure that any future transfers thereof may be made
without restriction under or violation of the provisions of the Securities Act
and other applicable law.  Upon
provision of such satisfactory evidence, the Company shall execute and deliver
to the Trustee,

 

22

 

and the
Trustee shall deliver, at the written direction of the Company, a Security that
does not bear the legend.

 

SECTION 2.3.  Form of
Trustee’s Certificate of Authentication.

 

The Trustee’s
certificates of authentication shall be in substantially the following form:

 

This is one of
the Securities designated therein referred to in the within-mentioned Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized officer

  
	
   

  	
   

  

 

SECTION
2.4.  Temporary
Securities.

 

(a)  Pending the preparation of
definitive Securities, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Securities that are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any
denomination, substantially of the tenor of the definitive Securities in lieu
of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities
may determine, as evidenced by their execution of such Securities.

 

(b)  If temporary Securities are
issued, the Company will cause definitive Securities to be prepared without
unreasonable delay. After the preparation of definitive Securities, the
temporary Securities shall be exchangeable for definitive Securities upon
surrender of the temporary Securities at the office or agency of the Company
designated for that purpose without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of any authorized denominations having the same Original
Issue Date and Stated Maturity and having the same terms as such temporary
Securities. Until so exchanged, the temporary Securities shall in all respects
be entitled to the same benefits under this Indenture as definitive Securities.

 

SECTION
2.5.  Definitive
Securities.

 

The Securities
issued on the Original Issue Date shall be in definitive form.  The definitive Securities shall be printed,
lithographed or engraved, or produced by any combination of these methods, if
required by any securities exchange on which the Securities may be listed, on a
steel engraved border or steel engraved borders or may be produced in any other
manner permitted by the rules of any securities exchange on which the
Securities may be listed, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

 

23

 

ARTICLE III

 

THE SECURITIES

 

SECTION 3.1.  Payment of
Principal and Interest.

 

(a)  The unpaid principal amount
of the Securities shall bear interest at the fixed rate equal to 6.58% per
annum through the Interest Payment Date in April 2008, and at a variable rate
equal to LIBOR plus 3.15% per annum thereafter, such interest to accrue from
the Original Issue Date or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, and any overdue principal, premium
or Additional Tax Sums and any overdue installment of interest shall bear
Additional Interest at the fixed rate equal to 6.58% per annum through the
Interest Payment Date in April 2008, and a variable rate equal to LIBOR plus
3.15% per annum thereafter, from the dates such amounts are due until they are
paid or funds for the payment thereof are made available for payment.

 

(b)  Interest and Additional
Interest on any Security that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, except that
interest and any Additional Interest payable on the Stated Maturity (or any
date of principal repayment upon early maturity) of the principal of a Security
or on a Redemption Date shall be paid to the Person to whom principal is paid.
The initial payment of interest on any Security that is issued between a
Regular Record Date and the related Interest Payment Date shall be payable as
provided in such Security.

 

(c)  Any interest on any
Security that is due and payable, but is not timely paid or duly provided for,
on any Interest Payment Date for Securities (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the registered Holder on the relevant Regular Record Date by virtue
of having been such Holder, and such Defaulted Interest may be paid by the
Company, at its election in each case, as provided in paragraph (i) or (ii)
below:

 

(i) 
The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Securities (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest (a “Special
Record Date”), which shall be fixed in the following
manner.  At least thirty (30) days prior
to the date of the proposed payment, the Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Security
and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest, which shall be not more than fifteen (15) days and not less than ten
(10) days prior to the date of the proposed payment and not less than ten (10)
days after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name

 

24

 

and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first class, postage prepaid, to each Holder of a Security at the
address of such Holder as it appears in the Securities Register not less than
ten (10) days prior to such Special Record Date.  Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted Interest
shall be paid to the Persons in whose names the Securities (or their respective
Predecessor Securities) are registered on such Special Record Date; or

 

(ii) 
The Company may make payment of any Defaulted Interest in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed and, upon such notice as may be required
by such exchange (or by the Trustee if the Securities are not listed), if,
after notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such payment shall be deemed practicable by the
Trustee.

 

(d)  Payments of interest on the
Securities shall include interest accrued to but excluding the respective
Interest Payment Dates. Interest payments for the Securities shall be computed
and paid on the basis of a 360-day year and the actual number of days elapsed
in the relevant interest period.

 

(e)  Payment of principal of,
premium, if any, and interest on the Securities shall be made in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.  Payments of principal, premium, if any, and interest due at the
Maturity of such Securities shall be made at the Place of Payment upon
surrender of such Securities to the Paying Agent and payments of interest shall
be made subject to such surrender where applicable, by wire transfer at such
place and to such account at a banking institution in the United States as may
be designated in writing to the Paying Agent at least ten (10) Business Days
prior to the date for payment by the Person entitled thereto unless proper written
transfer instructions have not been received by the relevant record date, in
which case such payments shall be made by check mailed to the address of such
Person as such address shall appear in the Security Register.  Notwithstanding the foregoing, so long as
the holder of this Security is the Property Trustee, the payment of the
principal of (and premium if any) and interest (including any overdue
installment of interest and Additional Tax Sums, if any) on this Security will
be made at such place and to such account as may be designated by the Property
Trustee.

 

(f)  Subject to the foregoing
provisions of this Section 3.1, each Security delivered under this
Indenture upon transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, that were
carried by such other Security.

 

SECTION
3.2.  Denominations.

 

The Securities shall be in registered form without coupons and shall be
issuable in minimum denominations of $100,000 and any integral multiple of
$1,000 in excess thereof.

 

25

 

SECTION 3.3.  Execution,
Authentication, Delivery and Dating.

 

(a)  At any time and from time
to time after the execution and delivery of this Indenture,  the Company may deliver Securities in an
aggregate principal amount (including all then Outstanding Securities) not in
excess of Six Million One Hundred and Ninety Thousand Dollars ($6,190,000)
executed by the Company to the Trustee for authentication, together with a
Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver
such Securities. In authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and shall be fully
protected in relying upon:

 

(i)  a
copy of any Board Resolution relating thereto; and

 

(ii) 
an Opinion of Counsel stating that such Securities, when authenticated
and delivered by the Trustee and issued by the Company in the manner and
subject to any conditions specified in such Opinion of Counsel, will constitute
valid and legally binding obligations of the Company, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles.

 

(b)  The Securities shall be
executed on behalf of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its Chief Executive Officer, its President or one of its
Vice Presidents, under its corporate seal reproduced or impressed thereon and
attested by its Secretary or one of its Assistant Secretaries. The signature of
any of these officers on the Securities may be manual or facsimile.  Securities bearing the manual or facsimile
signatures of individuals who were at any time the proper officers of the
Company shall bind the Company, notwithstanding that such individuals or any of
them have ceased to hold such offices prior to the authentication and delivery
of such Securities or did not hold such offices at the date of such Securities.

 

(c)  No Security shall be
entitled to any benefit under this Indenture or be valid or obligatory for any
purpose, unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by the
manual signature of one of its authorized officers, and such certificate upon
any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding
the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section
3.8, for all purposes of this Indenture such Security shall be deemed never
to have been authenticated and delivered hereunder and shall never be entitled
to the benefits of this Indenture.

 

(d)  Each Security shall be
dated the date of its authentication.

 

SECTION
3.4.  Global
Securities.

 

(a)  Upon the election of the
Holder after the Original Issue Date, which election need not be in writing,
the Securities owned by such Holder shall be issued in the form of one or more

 

26

 

Global
Securities registered in the name of the Depositary or its nominee. Each Global
Security issued under this Indenture shall be registered in the name of the
Depositary designated by the Company for such Global Security or a nominee
thereof and delivered to such Depositary or a nominee thereof or custodian
therefor, and each such Global Security shall constitute a single Security for
all purposes of this Indenture.

 

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

 

(c)  If any Global Security is
to be exchanged for other Securities or canceled in part, or if another
Security is to be exchanged in whole or in part for a beneficial interest in
any Global Security, then either (i) such Global Security shall be so
surrendered for exchange or cancellation as provided in this Article III
or (ii) the principal amount thereof shall be reduced or increased by an amount
equal to the portion thereof to be so exchanged or canceled, or equal to the
principal amount of such other Security to be so exchanged for a beneficial interest
therein, as the case may be, by means of an appropriate adjustment made on the
records of the Securities Registrar, whereupon the Trustee, in accordance with
the Applicable Depository Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender or adjustment of a Global Security by the Depositary,
accompanied by registration instructions, the Company shall execute and the
Trustee shall authenticate and deliver any Securities issuable in exchange for
such Global Security (or any portion thereof) in accordance with the
instructions of the Depositary. The Trustee shall not be liable for any delay
in delivery of such instructions and may conclusively rely on, and shall be
fully protected in relying on, such instructions.

 

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

 

27

 

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

 

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

 

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

 

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

 

SECTION 3.5.
 Registration, Transfer and Exchange Generally.

 

(a)  The Trustee shall cause to
be kept at the Corporate Trust Office a register (the “Securities Register”) in which the registrar
and transfer agent with respect to the Securities (the “Securities Registrar”), subject to such
reasonable regulations as it may prescribe, shall provide for the registration
of Securities and of transfers and exchanges of Securities. The Trustee shall
at

 

28

 

all times also
be the Securities Registrar.  The
provisions of Article VI shall apply to the Trustee in its role as
Securities Registrar.

 

(b)  Upon surrender for
registration of transfer of any Security at the offices or agencies of the
Company designated for that purpose the Company shall execute, and the Trustee
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of any authorized denominations of like
tenor and aggregate principal amount.

 

(c)  At the option of the
Holder, Securities may be exchanged for other Securities of any authorized
denominations, of like tenor and aggregate principal amount, upon surrender of
the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities that the Holder making
the exchange is entitled to receive.

 

(d)  All Securities issued upon
any transfer or exchange of Securities shall be the valid obligations of the
Company, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such transfer or exchange.

 

(e)  Every Security presented or
surrendered for transfer or exchange shall (if so required by the Company or
the Trustee) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Securities Registrar, duly
executed by the Holder thereof or such Holder’s attorney duly authorized in
writing.

 

(f)  No service charge shall be
made to a Holder for any transfer or exchange of Securities, but the Company
may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Securities.

 

(g)  Neither the Company nor the
Trustee shall be required pursuant to the provisions of this Section 3.5 (g)
to issue, register the transfer of or exchange any Security during a period
beginning at the opening of business fifteen (15) days before the day of
selection for redemption of Securities pursuant to Article XI and ending
at the close of business on the day of mailing of the notice of redemption or
(ii) to register the transfer of or exchange any Security so selected for
redemption in whole or in part, except, in the case of any such Security to be
redeemed in part, any portion thereof not to be redeemed.

 

(h)  The Company shall designate
an office or offices or agency or agencies where Securities may be surrendered
for registration or transfer or exchange. 
The Company initially designates the Corporate Trust Office as its
office and agency for such purposes.  The
Company shall give prompt written notice to the Trustee and to the Holders of
any change in the location of any such office or agency.

 

SECTION 3.6.  Mutilated,
Destroyed, Lost and Stolen Securities.

 

(a)  If any mutilated Security
is surrendered to the Trustee together with such security or indemnity as may
be required by the Company or the Trustee to save each of them harmless, the
Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new

 

29

 

Security of
like tenor and aggregate principal amount and bearing a number not
contemporaneously outstanding.

 

(b)  If there shall be delivered
to the Company and to the Trustee (i) evidence to their satisfaction of the
destruction, loss or theft of any Security and (ii) such security or indemnity
as may be required by them to save each of them harmless, then, in the absence
of notice to the Company or the Trustee that such Security has been acquired by
a bona fide purchaser, the
Company shall execute and upon its written request the Trustee shall authenticate
and deliver, in lieu of any such destroyed, lost or stolen Security, a new
Security of like tenor and aggregate principal amount as such destroyed, lost
or stolen Security, and bearing a number not contemporaneously outstanding.

 

(c)  If any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Security,
pay such Security.

 

(d)  Upon the issuance of any
new Security under this Section 3.6, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.

 

(e)  Every new Security issued
pursuant to this Section 3.6 in lieu of any mutilated, destroyed, lost
or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the mutilated, destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities duly issued hereunder.

 

(f)  The provisions of this Section 3.6
are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities.

 

SECTION 3.7.  Persons
Deemed Owners.

 

The Company,
the Trustee and any agent of the Company or the Trustee shall treat the Person
in whose name any Security is registered as the owner of such Security for the
purpose of receiving payment of principal of and any interest on such Security
and for all other purposes whatsoever, and neither the Company, the Trustee nor
any agent of the Company or the Trustee shall be affected by notice to the
contrary.

 

SECTION 3.8.  Cancellation.

 

All Securities
surrendered for payment, redemption, transfer or exchange shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee, and any such
Securities and Securities surrendered directly to the Trustee for any such
purpose shall be promptly canceled by it. The Company may at any time deliver
to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder that the Company may have acquired in any manner whatsoever, and all
Securities so delivered shall be promptly canceled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities

 

30

 

canceled as provided in this Section
3.8, except as expressly permitted by this Indenture. All canceled
Securities shall be disposed of by the Trustee in accordance with its customary
practices and the Trustee shall deliver to the Company a certificate of such
disposition.

 

SECTION
3.9.  Deferrals
of Interest Payment Dates.

 

(a)  So long as no Event of
Default has occurred and is continuing, the Company shall have the right, at
any time and from time to time during the term of the Security, to defer the
payment of interest on the Securities for a period of up to twenty (20)
consecutive quarterly interest payment periods (each such period, an “Extension Period”), during which Extension Period(s), the Company shall have
the right to make no payments or partial payments of interest on any Interest
Payment Date (except any Additional Tax Sums that otherwise may be due and
payable).  No Extension Period shall end
on a date other than an Interest Payment Date and no Extension Period shall
extend beyond the Stated Maturity of the principal of the Securities.  No interest shall be due and payable during
an Extension Period, except at the end thereof, but each installment of
interest that would otherwise have been due and payable during such Extension
Period shall bear Additional Interest (to the extent payment of such interest
would be legally enforceable) at the fixed rate equal to 6.58% per annum
through the Interest Payment Date in April 2008, and a variable rate equal to
LIBOR plus 3.15% per annum thereafter, compounded quarterly, from the dates on
which amounts would have otherwise been due and payable until paid or until
funds for the payment thereof have been made available for payment.  At the end of any such Extension Period, the
Company shall pay all interest then accrued and unpaid on the Securities
together with such Additional Interest. 
Prior to the termination of any such Extension Period, the Company may
extend such Extension Period and further defer the payment of interest; provided, that (i) all such previous and
further extensions comprising such Extension Period do not exceed twenty (20)
quarterly interest payment periods, (ii) no Extension Period shall end on a
date other than an Interest Payment Date and (iii) no Extension Period shall
extend beyond the Stated Maturity of the principal of the Securities.  Upon the termination of any such Extension
Period and upon the payment of all accrued and unpaid interest and any
Additional Interest then due on any Interest Payment Date, the Company may
elect to begin a new Extension Period; provided,
that (i) such Extension Period does not exceed twenty (20) quarterly interest
payment periods, (ii) no Extension Period shall end on a date other than an
Interest Payment Date and (iii) no Extension Period shall extend beyond the
Stated Maturity of the principal of the Securities.  The Company shall give the Holders of the Securities and the
Trustee written notice of its election to begin any such Extension Period at
least one Business Day prior to the next succeeding Interest Payment Date on
which interest on the Securities would be payable but for such deferral or, so
long as any Securities are held by the Trust, at least one Business Day prior
to the earlier of (i) the next succeeding date on which Distributions on the
Preferred Securities of such Trust would be payable but for such deferral and
(ii) the date on which the Property Trustee of such Trust is required to give
notice to any securities exchange or other applicable self-regulatory
organization or to holders of such Preferred Securities of the record date for
the payment of such Distributions.

 

(b)  In connection with any such
Extension Period, the Company shall be subject to the restrictions set forth in
Section 10.6(a).

 

31

 

SECTION
3.10.  Right
of Set-Off.

 

Notwithstanding anything to the
contrary herein, the Company shall have the right to set off any payment it is
otherwise required to make in respect of any Security to the extent the Company
has theretofore made, or is concurrently on the date of such payment making, a
payment under the Guarantee Agreement relating to such Security or to a holder
of Preferred Securities pursuant to an action undertaken under Section 5.8
of this Indenture.

 

SECTION 3.11.  Agreed Tax
Treatment.

 

Each Security
issued hereunder shall provide that the Company and, by its acceptance or
acquisition of a Security or a beneficial interest therein, the Holder of, and
any Person that acquires a direct or indirect beneficial interest in, such
Security, intend and agree to treat such Security as indebtedness of the
Company for United States Federal, state and local tax purposes and to treat
the Preferred Securities (including but not limited to all payments and
proceeds with respect to the Preferred Securities) as an undivided beneficial
ownership interest in the Securities (and payments and proceeds therefrom,
respectively) for United States Federal, state and local tax purposes.  The provisions of this Indenture shall be
interpreted to further this intention and agreement of the parties.

 

SECTION
3.12.  CUSIP
Numbers.

 

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

 

ARTICLE IV

 

Satisfaction and Discharge

 

SECTION
4.1.  Satisfaction
and Discharge of Indenture.

 

This Indenture
shall, upon Company Request, cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein
expressly provided for and as otherwise provided in this Section 4.1)
and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture,
when

 

(a)  either

 

(i) all Securities theretofore authenticated and delivered (other than
(A) Securities that have been mutilated, destroyed, lost or stolen and that
have been replaced or paid as provided in Section 3.6 and (B) Securities
for whose payment money has theretofore been deposited in trust or segregated
and held in trust by the Company and thereafter

 

32

 

repaid to the
Company or discharged from such trust as provided in Section 10.2) have
been delivered to the Trustee for cancellation; or

 

(ii) all such Securities not theretofore delivered to the Trustee for
cancellation

 

(A)                              have become due and
payable, or

 

(B)                                will become due and
payable at their Stated Maturity within one year of the date of deposit, or

 

(C)                                are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company,

 

and the
Company, in the case of subclause (ii)(A), (B) or (C) above, has deposited or
caused to be deposited with the Trustee as trust funds in trust for such
purpose (x) an amount in the currency or currencies in which the Securities are
payable, (y) Government Obligations which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than the due date of any payment, money in an amount or (z)
a combination thereof, in each case sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal and any premium and interest (including any
Additional Interest) to the date of such deposit (in the case of Securities
that have become due and payable) or to the Stated Maturity (or any date of
principal repayment upon early maturity) or Redemption Date, as the case may be;

 

(b)  the Company has paid or
caused to be paid all other sums payable hereunder by the Company; and

 

(c)  the Company has delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel each stating
that all conditions precedent herein provided for relating to the satisfaction
and discharge of this Indenture have been complied with.

 

Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 6.6, the obligations of the Company to any
Authenticating Agent under Section 6.11 and, if money shall have been
deposited with the Trustee pursuant to subclause (a)(ii) of this Section 4.1,
the obligations of the Trustee under Section 4.2 and Section 10.2(e)
shall survive.

 

SECTION 4.2.  Application
of Trust Money.

 

Subject to the provisions Section
10.2(e), all money deposited with the Trustee pursuant to Section 4.1
shall be held in trust and applied by the Trustee, in accordance with the
provisions of the Securities and this Indenture, to the payment in accordance
with Section 3.1, either directly or through any Paying Agent (including
the Company acting as its own Paying Agent) as the Trustee may determine, to
the Persons entitled thereto, of the principal and any premium and

 

33

 

interest (including any
Additional Interest) for the payment of which such money or obligations have
been deposited with or received by the Trustee.  Moneys held by the Trustee under this Section 4.2 shall
not be subject to the claims of holders of Senior Debt under Article XII.

 

ARTICLE V

 

Remedies

 

SECTION
5.1.  Events
of Default.

 

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

 

(a)  default in the payment of
any interest upon any Security, including any Additional Interest in respect
thereof, when it becomes due and payable, and continuance of such default for a
period of thirty (30) days (subject to the deferral of any due date in the case
of an Extension Period); or

 

(b)  default in the payment of
the principal of or any premium on any Security at its Maturity; or

 

(c)  default in the performance,
or breach, of any covenant or warranty of the Company in this Indenture and
continuance of such default or breach for a period of thirty (30) days after
there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least twenty
five percent (25%) in aggregate principal amount of the Outstanding Securities
a written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder;

 

(d)  the entry by a court having
jurisdiction in the premises of  a decree
or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable Federal or
state bankruptcy, insolvency, reorganization or other similar law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Company or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of sixty (60) consecutive days; or

 

(e)  the institution by the
Company of proceedings to be adjudicated a bankrupt or insolvent, or the
consent by the Company to the institution of bankruptcy or insolvency
proceedings against it, or the filing by the Company of a petition or answer or
consent seeking reorganization or relief under any applicable Federal or state
bankruptcy, insolvency, reorganization or other similar law, or the consent by
it to the filing of such petition or to the appointment of or taking possession
by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or of any substantial part of its property, or
the making by it of an assignment for the benefit of creditors, or the
admission by it in writing of

 

34

 

its inability
to pay its debts generally as they become due and its willingness to be
adjudicated a bankrupt or insolvent, or the taking of corporate action by the
Company in furtherance of any such action.

 

(f)  the Trust shall have
voluntarily or involuntarily liquidated, dissolved, wound-up its business or
otherwise terminated its existence, except in connection with (1) the
distribution of the Securities to holders of the Preferred Securities in
liquidation of their interests in the Trust, (2) the redemption of all of
the outstanding Preferred Securities or (3) certain mergers,
consolidations or amalgamations, each as and to the extent permitted by the
Trust Agreement.

 

SECTION
5.2.  Acceleration
of Maturity; Rescission and Annulment.

 

(a)  If an Event of Default
occurs and is continuing, then and in every such case the Trustee or the
Holders of not less than twenty five percent (25%) in aggregate principal
amount of the Outstanding Securities may declare the principal amount of all
the Securities to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by Holders), provided, that if, upon an
Event of Default, the Trustee or the Holders of not less than twenty five
percent (25%) in principal amount of the Outstanding Securities fail to declare
the principal of all the Outstanding Securities to be immediately due and
payable, the holders of at least twenty five percent (25%) in aggregate
Liquidation Amount (as defined in the Trust Agreement) of the Preferred
Securities then outstanding shall have the right to make such declaration by a
notice in writing to the Property Trustee, the Company and the Trustee; and
upon any such declaration the principal amount of and the accrued interest
(including any Additional Interest) on all the Securities shall become immediately
due and payable.

 

(b)  At any time after such a
declaration of acceleration with respect to Securities has been made and before
a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter provided in this Article V, the Holders of a
majority in aggregate principal amount of the Outstanding Securities, by
written notice to the Indenture Trustee, or the Holders of a majority in
aggregate liquidation amount of the Preferred Securities, by written notice to
the Property Trustee, the Company and the Trustee, may rescind and annul such
declaration and its consequences if:

 

(i) 
the Company has paid or deposited with the Trustee a sum sufficient to
pay:

 

(A)                              all overdue installments
of interest on all Securities,

 

(B)                                any accrued Additional
Interest on all Securities,

 

(C)                                the principal of and
any premium on any Securities that have become due otherwise than by such
declaration of acceleration and interest (including any Additional Interest)
thereon at the rate borne by the Securities, and

 

(D)                               all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of the Trustee, the Property Trustee and their
agents and counsel; and

 

35

 

(ii) 
all Events of Default with respect to Securities, other than the
non-payment of the principal of Securities that has become due solely by such
acceleration, have been cured or waived as provided in Section 5.13;

 

provided, that if the Holders of such
Securities fail to annul such declaration and waive such default, the holders
of not less than a majority in aggregate Liquidation Amount (as defined in the
Trust Agreement) of the Preferred Securities then outstanding shall also have
the right to rescind and annul such declaration and its consequences by written
notice to the Property Trustee, the Company and the Trustee, subject to the
satisfaction of the conditions set forth in paragraph (b) of this Section
5.2.  No such rescission shall affect
any subsequent default or impair any right consequent thereon.

 

SECTION
5.3.  Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

(a)  The Company covenants that
if:

 

(i) 
default is made in the payment of any installment of interest (including
any Additional Interest) on any Security when such interest becomes due and
payable and such default continues for a period of thirty (30) days, or

 

(ii) 
default is made in the payment of the principal of and any premium on
any Security at the Maturity thereof,

 

the Company will, upon demand
of the Trustee, pay to the Trustee, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for
principal and any premium and interest (including any Additional Interest) and,
in addition thereto, all amounts owing the Trustee under Section 6.6.

 

(b)  If the Company fails to pay
such amounts forthwith upon such demand, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, and may prosecute such proceeding to
judgment or final decree, and may enforce the same against the Company or any
other obligor upon such Securities and collect the moneys adjudged or decreed
to be payable in the manner provided by law out of the property of the Company
or any other obligor upon the Securities, wherever situated.

 

(c)  If an Event of Default with
respect to Securities occurs and is continuing, the Trustee may in its
discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any such rights, whether for
the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper
remedy.

 

SECTION
5.4.  Trustee
May File Proofs of Claim.

 

In case of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or similar judicial proceeding relative to the Company
(or any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled

 

36

 

and empowered, by intervention
in such proceeding or otherwise, to take any and all actions authorized
hereunder in order to have claims of the Holders and the Trustee allowed in any
such proceeding. In particular, the Trustee shall be authorized to collect and receive
any moneys or other property payable or deliverable on any such claims and to
distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to first pay to the Trustee any amount due it
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts owing the Trustee, any
predecessor Trustee and other Persons under Section 6.6.

 

SECTION
5.5.  Trustee
May Enforce Claim Without Possession of Securities.

 

All rights of
action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, subject to Article XII
and after provision for the payment of all the amounts owing the Trustee, any
predecessor Trustee and other Persons under Section 6.6, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

 

SECTION
5.6.  Application
of Money Collected.

 

Any money or
property collected or to be applied by the Trustee with respect to the Securities
pursuant to this Article V shall be applied in the following order, at
the date or dates fixed by the Trustee and, in case of the distribution of such
money or property on account of principal or any premium or interest (including
any Additional Interest), upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

 

FIRST: To the
payment of all amounts due the Trustee, any predecessor Trustee and other
Persons under Section 6.6;

 

SECOND: To the
payment of all Senior Debt of the Company if and to the extent required by Article
XII.

 

THIRD:  Subject to Article XII, to the
payment of the amounts then due and unpaid upon the Securities for principal
and any premium and interest (including any Additional Interest) in respect of
which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Securities for principal and any premium and interest (including
any Additional Interest), respectively; and

 

FOURTH: The
balance, if any, to the Person or Persons entitled thereto.

 

SECTION
5.7.  Limitation
on Suits.

 

Subject to Section
5.8, no Holder of any Securities shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture or for the
appointment of a

 

37

 

custodian, receiver, assignee,
trustee, liquidator, sequestrator (or other similar official) or for any other
remedy hereunder, unless:

 

(a)  such Holder has previously
given written notice to the Trustee of a continuing Event of Default with
respect to the Securities;

 

(b)  the Holders of not less
than a majority in aggregate principal amount of the Outstanding Securities
shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder;

 

(c)  such Holder or Holders have
offered to the Trustee reasonable indemnity against the costs, expenses and
liabilities to be incurred in compliance with such request;

 

(d)  the Trustee after its
receipt of such notice, request and offer of indemnity has failed to institute
any such proceeding for sixty (60) days; and

 

(e)  no direction inconsistent
with such written request has been given to the Trustee during such sixty
(60)-day period by the Holders of a majority in aggregate principal amount of
the Outstanding Securities;

 

it being understood and
intended that no one or more of such Holders shall have any right in any manner
whatever by virtue of, or by availing itself of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other Holders of
Securities, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such
Holders.

 

SECTION 5.8.  Unconditional
Right of Holders to Receive Principal, Premium and Interest; Direct Action by
Holders of Preferred Securities.

 

Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the
principal of and any premium on such Security at its Maturity and payment of
interest (including any Additional Interest) on such Security when due and
payable and to institute suit for the enforcement of any such payment, and such
right shall not be impaired without the consent of such Holder. Any registered
holder of the Preferred Securities shall have the right, upon the occurrence of
an Event of Default described in Section 5.1(a) or Section 5.1(b),
to institute a suit directly against the Company for enforcement of payment to
such holder of principal of and any premium and interest (including any
Additional Interest) on the Securities having a principal amount equal to the
aggregate Liquidation Amount (as defined in the Trust Agreement) of the
Preferred Securities held by such holder.

 

SECTION
5.9.  Restoration
of Rights and Remedies.

 

If the
Trustee, any Holder or any holder of Preferred Securities has instituted any
proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee, such Holder or such holder of Preferred
Securities, then and in every such case the Company, the Trustee, such Holders
and such holder of Preferred Securities shall, subject to any determination

 

38

 

in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Trustee, such Holder and such holder of
Preferred Securities shall continue as though no such proceeding had been
instituted.

 

SECTION
5.10.  Rights
and Remedies Cumulative.

 

Except as
otherwise provided in Section 3.6(f), no right or remedy herein
conferred upon or reserved to the Trustee or the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

SECTION
5.11.  Delay
or Omission Not Waiver.

 

No delay or
omission of the Trustee, any Holder of any Securities or any holder of any
Preferred Security to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein.  Every right and remedy given by this Article V or by law
to the Trustee or to the Holders and the right and remedy given to the holders
of Preferred Securities by Section 5.8 may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee, the Holders or
the holders of Preferred Securities, as the case may be.

 

SECTION
5.12.  Control
by Holders.

 

The Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities shall have
the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee or exercising any trust or power conferred
on the Trustee; provided, that:

 

(a)  such direction shall not be
in conflict with any rule of law or with this Indenture,

 

(b)  the Trustee may take any
other action deemed proper by the Trustee that is not inconsistent with such
direction, and

 

(c)  subject to the provisions
of Section 6.2, the Trustee shall have the right to decline to follow
such direction if a Responsible Officer or Officers of the Trustee shall, in
good faith, reasonably determine that the proceeding so directed would be
unjustly prejudicial to the Holders not joining in any such direction or would
involve the Trustee in personal liability.

 

SECTION
5.13.  Waiver
of Past Defaults.

 

(a)  The Holders of not less
than a majority in aggregate principal amount of the Outstanding Securities and
the holders of a majority in aggregate Liquidation Amount (as defined in the
Trust Agreement) of the Preferred Securities may waive any past Event of
Default hereunder and its consequences except an Event of Default:

 

39

 

(i) 
in the payment of the principal of or any premium or interest (including
any Additional Interest) on any Security (unless such Event of Default has been
cured and the Company has paid to or deposited with the Trustee a sum
sufficient to pay all installments of interest (including any Additional
Interest) due and past due and all principal of and any premium on all
Securities due otherwise than by acceleration), or

 

(ii) 
in respect of a covenant or provision hereof that under Article IX
cannot be modified or amended without the consent of each Holder of any
Outstanding Security.

 

(b)  Any such waiver shall be
deemed to be on behalf of the Holders of all the Securities or, in the case of
a waiver by holders of Preferred Securities issued by such Trust, by all
holders of Preferred Securities.

 

(c)  Upon any such waiver, such
Event of Default shall cease to exist and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Event of
Default or impair any right consequent thereon.

 

SECTION 5.14.  Undertaking
for Costs.

 

All parties to
this Indenture agree, and each Holder of any Security by his or her acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken or omitted
by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section 5.14 shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than ten percent (10%) in aggregate
principal amount of the Outstanding Securities, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of or any
premium on the Security after the Stated Maturity or any interest (including
any Additional Interest) on any Security after it is due and payable.

 

SECTION 5.15.  Waiver of
Usury, Stay or Extension Laws.

 

The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any usury, stay or extension law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

40

 

ARTICLE VI

 

The Trustee

 

SECTION
6.1.  Corporate
Trustee Required.

 

There shall at
all times be a Trustee hereunder with respect to the Securities.  The Trustee shall be a corporation organized
and doing business under the laws of the United States or of any state thereof,
authorized to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000, subject to supervision or examination by
Federal or state authority and having an office within the United States. If
such corporation publishes reports of condition at least annually, pursuant to
law or to the requirements of such supervising or examining authority, then,
for the purposes of this Section 6.1, the combined capital and surplus
of such corporation shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 6.1, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article VI.

 

SECTION
6.2.  Certain
Duties and Responsibilities.

 

Except during
the continuance of an Event of Default:

 

(i) 
the Trustee undertakes to perform such duties and only such duties as
are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

(ii) 
in the absence of bad faith on its part, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; provided, that in the case of any such
certificates or opinions that by any provision hereof are specifically required
to be furnished to the Trustee, the Trustee shall be under a duty to examine
the same to determine whether or not they substantially conform on their face
to the requirements of this Indenture.

 

(b)  If an Event of Default
known to the Trustee has occurred and is continuing, the Trustee shall, prior
to the receipt of directions, if any, from the Holders of at least a majority
in aggregate principal amount of the Outstanding Securities, exercise such of
the rights and powers vested in it by this Indenture, and use the same degree
of care and skill in its exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs.

 

(c)  Notwithstanding the
foregoing, no provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it. Whether or not therein expressly so provided, every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Section 6.2.  To the 

 

41

 

extent that,
at law or in equity, the Trustee has duties and liabilities relating to the
Holders, the Trustee shall not be liable to any Holder for the Trustee’s good
faith reliance on the provisions of this Indenture.  The provisions of this Indenture, to the extent that they
restrict the duties and liabilities of the Trustee otherwise existing at law or
in equity, are agreed by the Company and the Holders to replace such other
duties and liabilities of the Trustee.

 

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

 

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

 

(ii) 
the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of at least a majority in aggregate principal amount of the Outstanding
Securities relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee under this Indenture; and

 

(iii) 
the Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company and money
held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law.

 

SECTION
6.3.  Notice
of Defaults.

 

Within ninety
(90) days after the occurrence of any default actually known to the Trustee,
the Trustee shall give the Holders notice of such default unless such default
shall have been cured or waived;  provided, that except in the case of
a default in the payment of the principal of or any premium or interest on any
Securities, the Trustee shall be fully protected in withholding the notice if
and so long as the board of directors, the executive committee or a trust
committee of directors and/or Responsible Officers of the Trustee in good faith
determines that withholding the notice is in the interest of holders of
Securities; and  provided, that in the case of any
default of the character specified in Section 5.1(c), no such notice to
Holders shall be given until at least thirty (30) days after the occurrence
thereof. For the purpose of this Section 6.3, the term “default” means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.

 

SECTION
6.4.  Certain
Rights of Trustee.

 

Subject to the
provisions of Section 6.2:

 

(a)  the Trustee may
conclusively rely and shall be fully protected in acting or refraining from
acting in good faith and in accordance with the terms hereof upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

 

42

 

(b)  if (i) in performing its
duties under this Indenture the Trustee is required to decide between
alternative courses of action, (ii) in construing any of the provisions of this
Indenture the Trustee finds ambiguous or inconsistent with any other provisions
contained herein or (iii) the Trustee is unsure of the application of any
provision of this Indenture, then, except as to any matter as to which the
Holders are entitled to decide under the terms of this Indenture, the Trustee
shall deliver a notice to the Company requesting the Company’s written
instruction as to the course of action to be taken and the Trustee shall take
such action, or refrain from taking such action, as the Trustee shall be
instructed in writing to take, or to refrain from taking, by the Company; provided, that if the Trustee does not
receive such instructions from the Company within ten Business Days after it
has delivered such notice or such reasonably shorter period of time set forth
in such notice the Trustee may, but shall be under no duty to, take such
action, or refrain from taking such action, as the Trustee shall deem advisable
and in the best interests of the Holders, in which event the Trustee shall have
no liability except for its own negligence, bad faith or willful misconduct;

 

(c)  any request or direction of
the Company shall be sufficiently evidenced by a Company Request or Company
Order and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution;

 

(d)  the Trustee may consult
with counsel (which counsel may be counsel to the Trustee, the Company or any
of its Affiliates, and may include any of its employees) and the advice of such
counsel or 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;

 

(e)  the Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders pursuant to this
Indenture, unless such Holders shall have offered to the Trustee security or
indemnity reasonably satisfactory to it against the costs, expenses (including
reasonable attorneys’ fees and expenses) and liabilities that might be incurred
by it in compliance with such request or direction, including reasonable
advances as may be requested by the Trustee;

 

(f)  the Trustee shall not be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, indenture, note or other paper or
document, but the Trustee in its discretion may make such inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Company, personally or by agent
or attorney;

 

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

 

(h)  whenever in the
administration of this Indenture the Trustee shall deem it desirable to receive
instructions with respect to enforcing any remedy or right or taking any other
action with respect to enforcing any remedy or right hereunder, the Trustees
(i) may request instructions

 

43

 

from the
Holders (which instructions may only be given by the Holders of the same
aggregate principal amount of Outstanding Securities as would be entitled to
direct the Trustee under this Indenture in respect of such remedy, right or
action), (ii) may refrain from enforcing such remedy or right or taking such
action until such instructions are received and (iii) shall be protected in acting
in accordance with such instructions;

 

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

 

(j)  without prejudice to any
other rights available to the Trustee under applicable law, when the Trustee
incurs expenses or renders services in connection with any bankruptcy,
insolvency or other proceeding referred to in clauses (d) or (e) of the
definition of Event of Default, such expenses (including legal fees and
expenses of its agents and counsel) and the compensation for such services are
intended to constitute expenses of administration under any bankruptcy laws or
law relating to creditors rights generally;

 

(k)  whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely
upon an Officers’ Certificate addressing such matter, which, upon receipt of
such request, shall be promptly delivered by the Company;

 

(l)  the Trustee shall not be
charged with knowledge of any Event of Default unless either (i) a Responsible
Officer of the Trustee shall have actual knowledge or (ii) the Trustee shall
have received notice thereof from the Company or a Holder; and

 

(m)  in the event that the
Trustee is also acting as Paying Agent, Authenticating Agent or Securities
Registrar hereunder, the rights and protections afforded to the Trustee
pursuant to this Article VI shall also be afforded such Paying Agent,
Authenticating Agent,  or  Securities Registrar.

 

SECTION
6.5.  May
Hold Securities.

 

The Trustee,
any Authenticating Agent, any Paying Agent, any Securities Registrar or any
other agent of the Company, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with the Company with
the same rights it would have if it were not Trustee, Authenticating Agent,
Paying Agent, Securities Registrar or such other agent.

 

SECTION
6.6.  Compensation;
Reimbursement; Indemnity.

 

(a)  The Company agrees

 

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

 

44

 

(ii) 
to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence, bad faith or
willful misconduct; and

 

(iii) 
to the fullest extent permitted by applicable law, to indemnify the
Trustee and its Affiliates, and their officers, directors, shareholders,
agents, representatives and employees for, and to hold them harmless against,
any loss, damage, liability, tax (other than income, franchise or other taxes
imposed on amounts paid pursuant to (i) or (ii) hereof), penalty, expense or
claim of any kind or nature whatsoever incurred without negligence, bad faith
or willful misconduct on its part arising out of or in connection with the
acceptance or administration of this trust or the performance of the Trustee’s
duties hereunder, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of
its powers or duties hereunder.

 

(b)  To secure the Company’s
payment obligations in this Section 6.6, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the
Trustee, other than money or property held in trust to pay principal and
interest on particular Securities.  Such
lien shall survive the satisfaction and discharge of this Indenture or the
resignation or removal of the Trustee.

 

(c)  The obligations of the
Company under this Section 6.6 shall survive the satisfaction and
discharge of this Indenture and the earlier resignation or removal of the
Trustee.

 

(d)  In no event shall the
Trustee be liable for any indirect, special, punitive or consequential loss or
damage of any kind whatsoever, including, but not limited to, lost profits,
even if the Trustee has been advised of the likelihood of such loss or damage
and regardless of the form of action.

 

(e)  In no event shall the
Trustee be liable for any failure or delay in the performance of its
obligations hereunder because of circumstances beyond its control, including,
but not limited to, acts of God, flood, war (whether declared or undeclared),
terrorism, fire, riot, embargo, government action, including any laws,
ordinances, regulations, governmental action or the like which delay, restrict
or prohibit the providing of the services contemplated by this Indenture.

 

SECTION
6.7.  Resignation
and Removal; Appointment of Successor.

 

(a)  No resignation or removal
of the Trustee and no appointment of a successor Trustee pursuant to this Article
VI shall become effective until the acceptance of appointment by the
successor Trustee under Section 6.8.

 

(b)  The Trustee may resign at
any time by giving written notice thereof to the Company.

 

(c)  Unless an Event of Default
shall have occurred and be continuing, the Trustee may be removed at any time
by the Company by a Board Resolution. 
If an Event of Default shall have occurred and be continuing, the
Trustee may be removed by Act of the Holders of a

 

45

 

majority in
aggregate principal amount of the Outstanding Securities, delivered to the
Trustee and to the Company.

 

(d)  If the Trustee shall
resign, be removed or become incapable of acting, or if a vacancy shall occur
in the office of Trustee for any reason, at a time when no Event of Default
shall have occurred and be continuing, the Company, by a Board Resolution,
shall promptly appoint a successor Trustee, and such successor Trustee and the
retiring Trustee shall comply with the applicable requirements of Section
6.8. If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any reason, at a time
when an Event of Default shall have occurred and be continuing, the Holders, by
Act of the Holders of a majority in aggregate principal amount of the
Outstanding Securities, shall promptly appoint a successor Trustee, and such
successor Trustee and the retiring Trustee shall comply with the applicable
requirements of Section 6.8. If no successor Trustee shall have been so
appointed by the Company or the Holders and accepted appointment within sixty
(60) days after the giving of a notice of resignation by the Trustee or the
removal of the Trustee in the manner required by Section 6.8, any Holder
who has been a bona fide Holder of a Security for at least six months may, on
behalf of such Holder and all others similarly situated, and any resigning
Trustee may, at the expense of the Company, petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

(e)  The Company shall give
notice to all Holders in the manner provided in Section 1.6 of each
resignation and each removal of the Trustee and each appointment of a successor
Trustee.  Each notice shall include the
name of the successor Trustee and the address of its Corporate Trust Office.

 

SECTION
6.8.  Acceptance
of Appointment by Successor.

 

(a)  In case of the appointment
hereunder of a successor Trustee, each successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

 

(b)  Upon request of any such
successor Trustee, the Company shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Trustee all
rights, powers and trusts referred to in paragraph (a) of this Section 6.8.

 

(c)  No successor Trustee shall
accept its appointment unless at the time of such acceptance such successor
Trustee shall be qualified and eligible under this Article VI.

 

46

 

SECTION 6.9.  Merger,
Conversion, Consolidation or Succession to Business.

 

Any Person
into which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding
to all or substantially all of the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto, provided, that such
Person shall be otherwise qualified and eligible under this Article VI.
In case any Securities shall have been authenticated, but not delivered, by the
Trustee then in office, any successor by merger, conversion or consolidation or
as otherwise provided above in this Section 6.9 to such authenticating
Trustee may adopt such authentication and deliver the Securities so
authenticated, and in case any Securities shall not have been authenticated,
any successor to the Trustee may authenticate such Securities either in the
name of any predecessor Trustee or in the name of such successor Trustee, and
in all cases the certificate of authentication shall have the full force which
it is provided anywhere in the Securities or in this Indenture that the
certificate of the Trustee shall have.

 

SECTION
6.10.  Not
Responsible for Recitals or Issuance of Securities.

 

The recitals
contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither
the Trustee nor any Authenticating Agent assumes any responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of the Securities or the proceeds thereof.

 

SECTION
6.11.  Appointment
of Authenticating Agent.

 

(a)  The Trustee may appoint an
Authenticating Agent or Agents with respect to the Securities, which shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 3.6, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, or of any State or Territory thereof or the District of
Columbia, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less than $50,000,000 and subject to
supervision or examination by Federal or state authority. If such
Authenticating Agent publishes reports of condition at least annually pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section 6.11 the combined capital and surplus
of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time an Authenticating Agent shall cease to be eligible in accordance with
the provisions of

 

47

 

this Section
6.11, such Authenticating Agent shall resign immediately in the manner and
with the effect specified in this Section 6.11.

 

(b)  Any Person into which an
Authenticating Agent may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any
Person succeeding to all or substantially all of the corporate trust business
of an Authenticating Agent shall be the successor Authenticating Agent
hereunder, provided such Person shall be otherwise eligible under this Section
6.11, without the execution or filing of any paper or any further act on
the part of the Trustee or the Authenticating Agent.

 

(c)  An Authenticating Agent may
resign at any time by giving written notice thereof to the Trustee and to the
Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the
Company. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time such Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section 6.11, the
Trustee may appoint a successor Authenticating Agent eligible under the
provisions of this Section 6.11, which shall be acceptable to the
Company, and shall give notice of such appointment to all Holders. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.

 

(d)  The Company agrees to pay
to each Authenticating Agent from time to time reasonable compensation for its
services under this Section 6.11 in such amounts as the Company and the
Authenticating Agent shall agree from time to time.

 

(e)  If an appointment of an
Authenticating Agent is made pursuant to this Section 6.11, the
Securities may have endorsed thereon, in addition to the Trustee’s certificate
of authentication, an alternative certificate of authentication in the
following form:

 

This is one of the Securities
designated therein referred to in the within mentioned Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK, not in its individual capacity, but solely as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Authenticating Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

48

ARTICLE VII

 

HOLDER’S LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

SECTION
7.1.  Company
to Furnish Trustee Names and Addresses of Holders.

 

The Company
will furnish or cause to be furnished to the Trustee:

 

(a)  semi-annually, on or before
June 30 and December 31 of each year, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders as of a date not
more than fifteen (15) days prior to the delivery thereof, and

 

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

 

in each case to the extent such
information is in the possession or control of the Company and has not
otherwise been received by the Trustee in its capacity as Securities Registrar.

 

SECTION
7.2.  Preservation
of Information, Communications to Holders.

 

(a)  The Trustee shall preserve,
in as current a form as is reasonably practicable, the names and addresses of
Holders contained in the most recent list furnished to the Trustee as provided
in Section 7.1 and the names and addresses of Holders received by the
Trustee in its capacity as Securities Registrar. The Trustee may destroy any
list furnished to it as provided in Section 7.1 upon receipt of a new
list so furnished.

 

(b)  The rights of Holders to
communicate with other Holders with respect to their rights under this
Indenture or under the Securities, and the corresponding rights and privileges
of the Trustee, shall be as provided in the Trust Indenture Act.

 

(c)  Every Holder of Securities,
by receiving and holding the same, agrees with the Company and the Trustee that
neither the Company nor the Trustee nor any agent of either of them shall be
held accountable by reason of the disclosure of information as to the names and
addresses of the Holders made pursuant to the Trust Indenture Act.

 

SECTION
7.3.  Reports
by Company.

 

(a)           The Company shall furnish to the
Holders and to prospective purchasers of Securities, upon their request, the
information required to be furnished pursuant to Rule 144A(d)(4) under the
Securities Act.  The Company shall
furnish to the Trustee and, so long as the Property Trustee holds any of the
Securities, the Company shall furnish to the Property Trustee, reports on Form
FR Y-9C, FR Y-9LP and FR Y-6 promptly following their filing with the Federal
Reserve Board.

 

(b)           The Company shall furnish to each of
(i) the Trustee, (ii) the Holders and to subsequent holders of Securities,
(iii) Trapeza Manager, Inc. (at 507 Carew Tower, 441 Vine Street, Cincinnati,
OH 45202, or such other address as designated by Trapeza Manager, Inc.) and

 

49

 

to any beneficial owner of the
Securities identified by Trapeza Manager, Inc., a duly completed and executed
certificate in the form attached hereto as Exhibit A, including the attachments
referenced in such Exhibit, which certificate and amendments shall be so
furnished by the Company not later than forty five (45) days after the end of
each of the first three fiscal quarters of each fiscal year of the Company and
not later than ninety (90) days after the end of each fiscal year of the
Company.

 

ARTICLE VIII

 

Consolidation,
Merger, Conveyance, Transfer or Lease

 

SECTION 8.1.  Company
May Consolidate, Etc., Only on Certain Terms.

 

The Company
shall not consolidate with or merge into any other Person or convey, transfer
or lease its properties and assets substantially as an entirety to any Person,
and no Person shall consolidate with or merge into the Company or convey,
transfer or lease its properties and assets substantially as an entirety to the
Company, unless:

 

(a)  if the Company shall
consolidate with or merge into another Person or convey, transfer or lease its
properties and assets substantially as an entirety to any Person, the entity
formed by such consolidation or into which the Company is merged or the Person
that acquires by conveyance or transfer, or that leases, the properties and
assets of the Company substantially as an entirety shall be an entity organized
and existing under the laws of the United States of America or any State or
Territory thereof or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form
reasonably satisfactory to the Trustee, the due and punctual payment of the
principal of and any premium and interest (including any Additional Interest)
on all the Securities and the performance of every covenant of this Indenture
on the part of the Company to be performed or observed;

 

(b)  immediately after giving
effect to such transaction, no Event of Default, and no event that, after
notice or lapse of time, or both, would constitute an Event of Default, shall
have happened and be continuing; and

 

(c)  the Company has delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, any
such supplemental indenture comply with this Article VIII and that all
conditions precedent herein provided for relating to such transaction have been
complied with; and the Trustee may rely upon such Officers’ Certificate and
Opinion of Counsel as conclusive evidence that such transaction complies with
this Section 8.1.

 

SECTION
8.2.  Successor
Company Substituted.

 

(a)  Upon any consolidation or
merger by the Company with or into any other Person, or any conveyance,
transfer or lease by the Company of its properties and assets substantially as
an entirety to any Person in accordance with Section 8.1 and the
execution and delivery to the Trustee of the supplemental indenture described
in Section 8.1(a), the successor entity formed by such consolidation or
into which the Company is merged or to which such conveyance, transfer

 

50

 

or lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; and in the event of any
such conveyance or transfer, following the execution and delivery of such
supplemental indenture, the Company shall be discharged from all obligations
and covenants under the Indenture and the Securities.

 

(b)  Such successor Person may
cause to be executed, and may issue either in its own name or in the name of
the Company, any or all of the Securities issuable hereunder that theretofore
shall not have been signed by the Company and delivered to the Trustee; and,
upon the order of such successor Person instead of the Company and subject to
all the terms, conditions and limitations in this Indenture prescribed, the
Trustee shall authenticate and shall deliver any Securities that previously
shall have been signed and delivered by the officers of the Company to the
Trustee for authentication, and any Securities that such successor Person
thereafter shall cause to be executed and delivered to the Trustee on its
behalf. All the Securities so issued shall in all respects have the same legal
rank and benefit under this Indenture as the Securities theretofore or
thereafter issued in accordance with the terms of this Indenture.

 

(c)  In case of any such
consolidation, merger, sale, conveyance or lease, such changes in phraseology
and form may be made in the Securities thereafter to be issued as may be
appropriate to reflect such occurrence.

 

ARTICLE IX

 

Supplemental Indentures

 

SECTION
9.1.  Supplemental
Indentures without Consent of Holders.

 

Without the
consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form reasonably satisfactory to the Trustee,
for any of the following purposes:

 

(a)  to evidence the succession
of another Person to the Company, and the assumption by any such successor of
the covenants of the Company herein and in the Securities; or

 

(b)  to cure any ambiguity, to
correct or supplement any provision herein that may be defective or
inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Indenture, which shall
not be inconsistent with the other provisions of this Indenture, provided, that such action pursuant to
this clause (b) shall not adversely affect in any material respect the
interests of any Holders or the holders of the Preferred Securities; or

 

(c)  to add to the covenants,
restrictions or obligations of the Company or to add to the Events of Default, provided, that such action pursuant to
this clause (c) shall not adversely affect in any material respect the
interests of any Holders or the holders of the Preferred Securities; or

 

(d)  to modify, eliminate or add
to any provisions of the Indenture or the Securities to such extent as shall be
necessary to ensure that the Securities are treated as indebtedness of the

 

51

 

Company for
United States Federal income tax purposes, provided,
that such action pursuant to this clause (d) shall not adversely affect in any
material respect the interests of any Holders or the holders of the Preferred
Securities.

 

SECTION
9.2.  Supplemental
Indentures with Consent of Holders.

 

(a)  With the consent of the
Holders of not less than a majority in aggregate principal amount of the
Outstanding Securities, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities under this Indenture; provided, that
no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Security,

 

(i) 
change the Stated Maturity of the principal or any premium of any
Security or change the date of payment of any installment of interest
(including any Additional Interest) on any Security, or reduce the principal
amount thereof or the rate of interest thereon or any premium payable upon the
redemption thereof or change the place of payment where, or the coin or
currency in which, any Security or interest thereon is payable, or restrict or
impair the right to institute suit for the enforcement of any such payment on
or after such date, or

 

(ii) 
reduce the percentage in aggregate principal amount of the Outstanding
Securities, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver of
compliance with any provision of this Indenture or of defaults hereunder and
their consequences provided for in this Indenture, or

 

(iii) 
modify any of the provisions of this Section 9.2, Section 5.13
or Section 10.7, except to increase any percentage in aggregate
principal amount of the Outstanding Securities, the consent of whose Holders is
required for any reason, or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of
each Security;

 

provided, further, that, so long as any
Preferred Securities remain outstanding, no amendment under this Section 9.2
shall be effective until the holders of a majority in Liquidation Amount (as
defined in the Trust Agreement) of the Trust Securities shall have consented to
such amendment; provided, further, that if the consent of the holder
of each Outstanding Security is required for any amendment under this
Indenture, such amendment shall not be effective until the holder of each
Outstanding Trust Security shall have consented to such amendment.

 

(b)  It shall not be necessary
for any Act of Holders under this Section 9.2 to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such
Act shall approve the substance thereof.

 

52

 

SECTION
9.3.  Execution
of Supplemental Indentures.

 

In executing
or accepting the additional trusts created by any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and shall
be fully protected in conclusively relying upon, an Officers’ Certificate and
an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture, and that all conditions precedent
herein provided for relating to such action have been complied with. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture that affects the Trustee’s own rights, duties, indemnities or
immunities under this Indenture or otherwise. 
Copies of the final form of each supplemental indenture shall be
delivered by the Trustee at the expense of the Company to each Holder, and, if
the Trustee is the Property Trustee, to each holder of Preferred Securities,
promptly  after the execution thereof.

 

SECTION
9.4.  Effect
of Supplemental Indentures.

 

Upon the
execution of any supplemental indenture under this Article IX, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every
Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

 

SECTION
9.5.  Reference
in Securities to Supplemental Indentures.

 

Securities
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and shall if required by the Company,
bear a notation in form approved by the Company as to any matter provided for
in such supplemental indenture. If the Company shall so determine, new
Securities so modified as to conform, in the opinion of the Company, to any
such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding
Securities.

 

ARTICLE X

 

Covenants

 

SECTION 10.1.  Payment
of Principal, Premium and Interest.

 

The Company
covenants and agrees for the benefit of the Securities that it will duly and
punctually pay the principal of and any premium and interest (including any
Additional Interest) on the Securities in accordance with the terms of the
Securities and this Indenture.

 

SECTION 10.2.  Money for
Security Payments to be Held in Trust.

 

(a)  If the Company shall at any
time act as its own Paying Agent with respect to the Securities, it will, on or
before each due date of the principal of and any premium or interest (including
any Additional Interest) on the Securities, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal
and any premium or interest (including Additional Interest) so becoming due
until such sums shall be paid to such Persons or

 

53

 

otherwise
disposed of as herein provided, and will promptly notify the Trustee in writing
of its failure so to act.

 

(b)  Whenever the Company shall
have one or more Paying Agents, it will, prior to 10:00 a.m., New York City
time, on each due date of the principal of or any premium or interest
(including any Additional Interest) on any Securities, deposit with a Paying
Agent a sum sufficient to pay such amount, such sum to be held as provided in
the Trust Indenture Act and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of its failure so to act.

 

(c)  The Company will cause each
Paying Agent for the Securities other than the Trustee to execute and deliver
to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section 10.2, that such
Paying Agent will (i) comply with the provisions of the Trust Indenture Act
applicable to it as a Paying Agent and (ii) during the continuance of any
default by the Company (or any other obligor upon the Securities) in the making
of any payment in respect of the Securities, upon the written request of the
Trustee, forthwith pay to the Trustee all sums held in trust by such Paying
Agent for payment in respect of the Securities.

 

(d)  The Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or by Company Order direct any Paying
Agent to pay, to the Trustee all sums held in trust by the Company or such
Paying Agent, such sums to be held by the Trustee upon the same trusts as those
upon which such sums were held by the Company or such Paying Agent; and, upon
such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

 

(e)  Any money deposited with
the Trustee or any Paying Agent, or then held by the Company in trust for the
payment of the principal of and any premium or interest (including any
Additional Interest) on any Security and remaining unclaimed for two years
after such principal and any premium or interest has become due and payable
shall (unless otherwise required by mandatory provision of applicable escheat
or abandoned or unclaimed property law) be paid on Company Request to the
Company, or (if then held by the Company) shall (unless otherwise required by
mandatory provision of applicable escheat or abandoned or unclaimed property
law) be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City
of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than thirty (30) days from the date
of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

 

54

 

SECTION
10.3.  Statement
as to Compliance.

 

The Company
shall deliver to the Trustee, within one hundred and twenty (120) days after
the end of each fiscal year of the Company ending after the date hereof, an
Officers’ Certificate covering the preceding calendar year, stating whether or
not to the knowledge of the signers thereof the Company is in default in the
performance or observance of any of the terms, provisions and conditions of
this Indenture (without regard to any period of grace or requirement of notice
provided hereunder), and if the Company shall be in default, specifying all
such defaults and the nature and status thereof of which they may have
knowledge.

 

SECTION
10.4.  Calculation Agent.

 

(a)  The Company hereby agrees
that for so long as any of the Securities remain Outstanding, there will at all
times be an agent appointed to calculate LIBOR in respect of each Interest
Payment Date in accordance with the terms of Schedule A (the “Calculation
Agent”).  The Company has
initially appointed the Trustee as Calculation Agent for purposes of
determining LIBOR for each Interest Payment Date.  The Calculation Agent may be removed by the Company at any
time.  So long as the Property Trustee
holds any of the Securities, the Calculation Agent shall be the Property
Trustee.   If the Calculation Agent is
unable or unwilling to act as such or is removed by the Company, the Company
will promptly appoint as a replacement Calculation Agent the London office of a
leading bank which is engaged in transactions in Eurodollar deposits in the
international Eurodollar market and which does not control or is not controlled
by or under common control with the Company or its Affiliates.  The Calculation Agent may not resign its
duties without a successor having been duly appointed.

 

(b)  The Calculation Agent shall
be required to agree that, as soon as possible after 11:00 a.m. (London time)
on each LIBOR Determination Date (as defined in Schedule A), but in no
event later than 11:00 a.m. (London time) on the Business Day immediately
following each LIBOR Determination Date, the Calculation Agent will calculate
the interest rate (the Interest Payment shall be rounded to the nearest cent,
with half a cent being rounded upwards) for the related Interest Payment Date,
and will communicate such rate and amount to the Company, the Trustee, each
Paying Agent and the Depositary. The Calculation Agent will also specify to the
Company the quotations upon which the foregoing rates and amounts are based
and, in any event, the Calculation Agent shall notify the Company before 5:00
p.m. (London time) on each LIBOR Determination Date that either:  (i) it has determined or is in the
process of determining the foregoing rates and amounts or (ii) it has not
determined and is not in the process of determining the foregoing rates and
amounts, together with its reasons therefor. 
The Calculation Agent’s determination of the foregoing rates and amounts
for any Interest Payment Date will (in the absence of manifest error) be final
and binding upon all parties.  For the
sole purpose of calculating the interest rate for the Securities, “Business
Day” shall be defined as any day on which dealings in deposits in Dollars are
transacted in the London interbank market.

 

SECTION
10.5.  Additional
Tax Sums.

 

So long as no
Event of Default has occurred and is continuing, if (a) the Trust is the Holder
of all of the Outstanding Securities and (b) a Tax Event described in clause
(i) or (iii) in the definition of Tax Event in Section 1.1 hereof has
occurred and is continuing, the Company

 

55

 

shall pay to the Trust (and its
permitted successors or assigns under the related Trust Agreement) for so long
as the Trust (or its permitted successor or assignee) is the registered holder
of the Outstanding Securities, such amounts as may be necessary in order that
the amount of Distributions (including any Additional Interest Amount (as
defined in the Trust Agreement)) then due and payable by the Trust on the
Preferred Securities and Common Securities that at any time remain outstanding
in accordance with the terms thereof shall not be reduced as a result of any
Additional Taxes arising from such Tax Event (additional such amounts payable
by the Company to the Trust, the “Additional
Tax Sums”).
Whenever in this Indenture or the Securities there is a reference in any
context to the payment of principal of or interest on the Securities, such
mention shall be deemed to include mention of the payments of the Additional
Tax Sums provided for in this Section 10.5 to the extent that, in such
context, Additional Tax Sums are, were or would be payable in respect thereof
pursuant to the provisions of this Section 10.5 and express mention of
the payment of Additional Tax Sums (if applicable) in any provisions hereof
shall not be construed as excluding Additional Tax Sums in those provisions
hereof where such express mention is not made; provided,
that the deferral of the payment of interest pursuant to Section 3.9 on
the Securities shall not defer the payment of any Additional Tax Sums that may
be due and payable.

 

SECTION
10.6.  Additional
Covenants.

 

(a)  The Company covenants and
agrees with each Holder of Securities that if an Event of Default shall have
occurred and be continuing or the Company shall have given notice of its
election to begin an Extension Period with respect to the Securities and shall
not have rescinded such notice, or such Extension Period, or any extension
thereof, shall be continuing, it shall not (i) declare or pay any dividends or
distributions on, or redeem purchase, acquire or make a liquidation payment
with respect to, any shares of the Company’s capital stock, or (ii) make any
payment of principal of or any interest or premium on or repay, repurchase or
redeem any debt securities of the Company that rank pari passu in all respects with or junior in interest to the
Securities (other than (A) repurchases, redemptions or other acquisitions of
shares of capital stock of the Company in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of any
one or more employees, officers, directors or consultants, in connection with a
dividend reinvestment or stockholder stock purchase plan or in connection with
the issuance of capital stock of the Company (or securities convertible into or
exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (B) as a
result of an exchange or conversion of any class or series of the Company’s
capital stock (or any capital stock of a Subsidiary of the Company) for any
class or series of the Company’s capital stock or of any class or series of the
Company’s indebtedness for any class or series of the Company’s capital stock,
(C) the purchase of fractional interests in shares of the Company’s capital
stock pursuant to the conversion or exchange provisions of such capital stock
or the security being converted or exchanged, (D) any declaration of a dividend
in connection with any Rights Plan, the issuance of rights, stock or other
property under any Rights Plan or the redemption or repurchase of rights
pursuant thereto, or (E) any dividend in the form of stock, warrants, options
or other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu
with or junior to such stock).

 

56

 

(b)  The Company also covenants
with each Holder of Securities (i) to hold, directly or indirectly, one hundred
percent (100%) of the Common Securities of the Trust, provided, that any permitted
successor of the Company hereunder may succeed to the Company’s ownership of
such Common Securities, (ii) as holder of such Common Securities, not to voluntarily
dissolve, wind-up or liquidate the Trust other than (A) in connection with a
distribution of the Securities to the holders of the Preferred Securities in
liquidation of the Trust or (B) in connection with certain mergers,
consolidations or amalgamations permitted by the Trust Agreement and (iii) to
use its reasonable commercial efforts, consistent with the terms and provisions
of the Trust Agreement, to cause the Trust to continue to be taxable as a
grantor trust and not as a corporation for United States Federal income tax
purposes.

 

SECTION
10.7.  Waiver
of Covenants.

 

The Company
may omit in any particular instance to comply with any covenant or condition
contained in Section 10.6 if, before or after the time for such
compliance, the Holders of at least a majority in aggregate principal amount of
the Outstanding Securities shall, by Act of such Holders, and at least a
majority of the aggregate Liquidation Amount (as defined in the Trust
Agreement) of the Preferred Securities then outstanding, by consent of such
holders, either waive such compliance in such instance or generally waive
compliance with such covenant or condition, but no such waiver shall extend to
or affect such covenant or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Company
in respect of any such covenant or condition shall remain in full force and
effect.

 

SECTION
10.8.  Treatment
of Securities.

 

The Company
will treat the Securities as indebtedness, and the amounts, other than payments
of principal, payable in respect of the principal amount of such Securities as
interest, for all U.S. federal income tax purposes.  All payments in respect of the Securities will be made free and
clear of U.S. withholding tax to any beneficial owner thereof that has provided
an Internal Revenue Service Form W-8BEN (or any substitute or successor form)
establishing its non-U.S. status for U.S. federal income tax purposes.

 

ARTICLE XI

 

Redemption of Securities

 

SECTION
11.1.  Optional
Redemption.

 

The Company
may, at its option, on any Interest Payment Date, on or after April 30, 2008,
redeem the Securities in whole at any time or in part from time to time, at a
Redemption Price equal to one hundred percent (100%) of the principal amount
thereof (or of the redeemed portion thereof, as applicable), together, in the
case of any such redemption, with accrued interest, including any Additional
Interest, to but excluding the date fixed for redemption; provided, that the Company shall have
received the prior approval of the Federal Reserve Board with respect to such
redemption if then required.

 

57

 

SECTION
11.2.  Special
Event Redemption.

 

Upon the
occurrence and during the continuation of a Special Event, the Company may, at
its option, redeem the Securities, in whole but not in part, at a Redemption
Price equal to one hundred percent (100%) of the principal amount thereof,
together, in the case of any such redemption, with accrued interest, including
any Additional Interest, to but excluding the date fixed for redemption; provided, that the Company shall have
received the prior approval of the Federal Reserve Board with respect to such
redemption if then required.

 

SECTION
11.3.  Election
to Redeem; Notice to Trustee.

 

The election
of the Company to redeem any Securities, in whole or in part, shall be
evidenced by or pursuant to a Board Resolution.  In case of any redemption at the election of the Company, the
Company shall, not less than forty five (45) days and not more than seventy
five (75) days prior to the Redemption Date (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee and the Property Trustee under
the Trust Agreement in writing of such date and of the principal amount of the
Securities to be redeemed and provide the additional information required to be
included in the notice or notices contemplated by Section 11.5. In the
case of any redemption of Securities, in whole or in part, (a) prior to the expiration
of any restriction on such redemption provided in this Indenture or the
Securities or (b) pursuant to an election of the Company which is subject to a
condition specified in this Indenture or the Securities, the Company shall
furnish the Trustee with an Officers’ Certificate and an Opinion of Counsel
evidencing compliance with such restriction or condition.

 

SECTION
11.4.  Selection
of Securities to be Redeemed.

 

(a)  If less than all the
Securities are to be redeemed, the particular Securities to be redeemed shall
be selected not more than sixty (60) days prior to the Redemption Date by the
Trustee from the Outstanding Securities not previously called for redemption,
by such method as the Trustee shall deem fair and appropriate and which may
provide for the selection for redemption of a portion of the principal amount
of any or each Security, provided,
that the unredeemed portion of the principal amount of any Security shall be in
an authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.

 

(b)  The Trustee shall promptly
notify the Company in writing of the Securities selected for redemption and, in
the case of any Securities selected for partial redemption, the principal
amount thereof to be redeemed. For all purposes of this Indenture, unless the
context otherwise requires, all provisions relating to the redemption of
Securities shall relate, in the case of any Security redeemed or to be redeemed
only in part, to the portion of the principal amount of such Security that has
been or is to be redeemed.

 

(c)  The provisions of
paragraphs (a) and (b) of this Section 11.4 shall not apply with respect
to any redemption affecting only a single Security, whether such Security is to
be redeemed in whole or in part. In the case of any such redemption in part,
the unredeemed portion of the principal amount of the Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.

 

58

 

SECTION
11.5.  Notice
of Redemption.

 

(a)  Notice of redemption shall
be given not later than the thirtieth (30th) day, and not earlier
than the sixtieth (60th) day, prior to the Redemption Date to each
Holder of Securities to be redeemed, in whole or in part, (unless a shorter
notice shall be satisfactory to the Property Trustee under the related Trust
Agreement).

 

(b)  With respect to Securities
to be redeemed, in whole or in part, each notice of redemption shall state:

 

(i) 
the Redemption Date;

 

(ii) 
the Redemption Price or, if the Redemption Price cannot be calculated
prior to the time the notice is required to be sent, the estimate of the
Redemption Price, as calculated by the Company, together with a statement that
it is an estimate and that the actual Redemption Price will be calculated on
the fifth Business Day prior to the Redemption Date (and if an estimate is
provided, a further notice shall be sent of the actual Redemption Price on the
date that such Redemption Price is calculated);

 

(iii) 
if less than all Outstanding Securities are to be redeemed, the
identification (and, in the case of partial redemption, the respective
principal amounts) of the particular Securities to be redeemed;

 

(iv) 
that on the Redemption Date, the Redemption Price will become due and
payable upon each such Security or portion thereof, and that any interest
(including any Additional Interest) on such Security or such portion, as the
case may be, shall cease to accrue on and after said date; and

 

(v) 
the place or places where such Securities are to be surrendered for
payment of the Redemption Price.

 

(c)  Notice of redemption of
Securities to be redeemed, in whole or in part, at the election of the Company
shall be given by the Company or, at the Company’s request, by the Trustee in
the name and at the expense of the Company and shall be irrevocable. The notice
if mailed in the manner provided above shall be conclusively presumed to have
been duly given, whether or not the Holder receives such notice. In any case, a
failure to give such notice by mail or any defect in the notice to the Holder
of any Security designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Security.

 

SECTION
11.6.  Deposit
of Redemption Price.

 

Prior to 10:00 a.m., New York
City time, on the Redemption Date specified in the notice of redemption given
as provided in Section 11.5, the Company will deposit with the Trustee
or with one or more Paying Agents (or if the Company is acting as its own
Paying Agent, the Company will segregate and hold in trust as provided in Section
10.2) an amount of money sufficient to pay the Redemption Price of, and any
accrued interest (including any Additional Interest) on, all the Securities (or
portions thereof) that are to be redeemed on that date.

 

59

 

SECTION
11.7.  Payment
of Securities Called for Redemption.

 

(a)  If any notice of redemption
has been given as provided in Section 11.5, the Securities or portion of
Securities with respect to which such notice has been given shall become due
and payable on the date and at the place or places stated in such notice at the
applicable Redemption Price, together with accrued interest (including any
Additional Interest) to the Redemption Date. On presentation and surrender of
such Securities at a Place of Payment specified in such notice, the Securities
or the specified portions thereof shall be paid and redeemed by the Company at
the applicable Redemption Price, together with accrued interest (including any
Additional Interest) to the Redemption Date.

 

(b)  Upon presentation of any
Security redeemed in part only, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder thereof, at the expense of the Company,
a new Security or Securities, of authorized denominations, in aggregate
principal amount equal to the unredeemed portion of the Security so presented
and having the same Original Issue Date, Stated Maturity and terms.

 

(c)  If any Security called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal of and any premium on such Security shall, until paid, bear interest
from the Redemption Date at the rate prescribed therefor in the Security.

 

ARTICLE XII

 

Subordination of Securities

 

SECTION
12.1.  Securities
Subordinate to Senior Debt.

 

The Company
covenants and agrees, and each Holder of a Security, by its acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner
hereinafter set forth in this Article XII, the payment of the principal
of and any premium and interest (including any Additional Interest) on each and
all of the Securities are hereby expressly made subordinate and subject in
right of payment to the prior payment in full of all Senior Debt.

 

SECTION
12.2.  No
Payment When Senior Debt in Default; Payment Over of Proceeds Upon Dissolution,
Etc.

 

(a)  In the event and during the
continuation of any default by the Company in the payment of any principal of
or any premium or interest on any Senior Debt (following any grace period, if
applicable) when the same becomes due and payable, whether at maturity or at a
date fixed for prepayment or by declaration of acceleration or otherwise, then,
upon written notice of such default to the Company by the holders of such
Senior Debt or any trustee therefor, unless and until such default shall have
been cured or waived or shall have ceased to exist, no direct or indirect
payment (in cash, property, securities, by set-off or otherwise) shall be made
or agreed to be made on account of the principal of or any premium or interest
(including any Additional Interest) on any of the Securities, or in respect of
any redemption, repayment, retirement, purchase or other acquisition of any of
the Securities.

 

60

 

(b)  In the event of a
bankruptcy, insolvency or other proceeding described in clause (d) or (e) of
the definition of Event of Default (each such event, if any, herein sometimes
referred to as a “Proceeding”),
all Senior Debt (including any interest thereon accruing after the commencement
of any such proceedings) shall first be paid in full before any payment or
distribution, whether in cash, securities or other property, shall be made to
any Holder of any of the Securities on account thereof. Any payment or
distribution, whether in cash, securities or other property (other than
securities of the Company or any other entity provided for by a plan of
reorganization or readjustment the payment of which is subordinate, at least to
the extent provided in these subordination provisions with respect to the
indebtedness evidenced by the Securities, to the payment of all Senior Debt at
the time outstanding and to any securities issued in respect thereof under any
such plan of reorganization or readjustment), which would otherwise (but for
these subordination provisions) be payable or deliverable in respect of the
Securities shall be paid or delivered directly to the holders of Senior Debt in
accordance with the priorities then existing among such holders until all
Senior Debt  (including any interest
thereon accruing after the commencement of any Proceeding) shall have been paid
in full.

 

(c)  In the event of any
Proceeding, after payment in full of all sums owing with respect to Senior
Debt, the Holders of the Securities, together with the holders of any
obligations of the Company ranking on a parity with the Securities, shall be
entitled to be paid from the remaining assets of the Company the amounts at the
time due and owing on account of unpaid principal of and any premium and
interest (including any Additional Interest) on the Securities and such other
obligations before any payment or other distribution, whether in cash, property
or otherwise, shall be made on account of any capital stock or any obligations
of the Company ranking junior to the Securities and such other obligations. If,
notwithstanding the foregoing, any payment or distribution of any character or
any security, whether in cash, securities or other property (other than
securities of the Company or any other entity provided for by a plan of
reorganization or readjustment the payment of which is subordinate, at least to
the extent provided in these subordination provisions with respect to the
indebtedness evidenced by the Securities, to the payment of all Senior Debt at
the time outstanding and to any securities issued in respect thereof under any
such plan of reorganization or readjustment) shall be received by the Trustee
or any Holder in contravention of any of the terms hereof and before all Senior
Debt shall have been paid in full, such payment or distribution or security
shall be received in trust for the benefit of, and shall be paid over or
delivered and transferred to, the holders of the Senior Debt at the time
outstanding in accordance with the priorities then existing among such holders
for application to the payment of all Senior Debt remaining unpaid, to the
extent necessary to pay all such Senior Debt (including any interest thereon
accruing after the commencement of any Proceeding) in full. In the event of the
failure of the Trustee or any Holder to endorse or assign any such payment,
distribution or security, each holder of Senior Debt is hereby irrevocably
authorized to endorse or assign the same.

 

(d)  The Trustee and the
Holders, at the expense of the Company, shall take such reasonable action  (including the delivery of this Indenture to
an agent for any holders of Senior Debt or consent to the filing of a financing
statement with respect hereto) as may, in the opinion of counsel designated by
the holders of a majority in principal amount of the Senior Debt at the time
outstanding, be necessary or appropriate to assure the effectiveness of the
subordination effected by these provisions.

 

61

 

(e)  The provisions of this Section
12.2 shall not impair any rights, interests, remedies or powers of any
secured creditor of the Company in respect of any security interest the
creation of which is not prohibited by the provisions of this Indenture.

 

(f)  The securing of any
obligations of the Company, otherwise ranking on a parity with the Securities
or ranking junior to the Securities, shall not be deemed to prevent such
obligations from constituting, respectively, obligations ranking on a parity
with the Securities or ranking junior to the Securities.

 

SECTION
12.3.  Payment
Permitted If No Default.

 

Nothing
contained in this Article XII or elsewhere in this Indenture or in any
of the Securities shall prevent (a) the Company, at any time, except during the
pendency of the conditions described in paragraph (a) of Section 12.2 or
of any Proceeding referred to in Section 12.2, from making payments at
any time of principal of and any premium or interest (including any Additional
Interest) on the Securities or (b) the application by the Trustee of any moneys
deposited with it hereunder to the payment of or on account of the principal of
and any premium or interest (including any Additional Interest) on the
Securities or the retention of such payment by the Holders, if, at the time of
such application by the Trustee, it did not have knowledge (in accordance with Section
12.8) that such payment would have been prohibited by the provisions of
this Article XII, except as provided in Section 12.8.

 

SECTION
12.4.  Subrogation
to Rights of Holders of Senior Debt.

 

Subject to the
payment in full of all amounts due or to become due on all Senior Debt, or the
provision for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Debt, the Holders of the Securities shall
be subrogated to the extent of the payments or distributions made to the
holders of such Senior Debt pursuant to the provisions of this Article XII
(equally and ratably with the holders of all indebtedness of the Company that
by its express terms is subordinated to Senior Debt of the Company to
substantially the same extent as the Securities are subordinated to the Senior
Debt and is entitled to like rights of subrogation by reason of any payments or
distributions made to holders of such Senior Debt) to the rights of the holders
of such Senior Debt to receive payments and distributions of cash, property and
securities applicable to the Senior Debt until the principal of and any premium
and interest (including any Additional Interest) on the Securities shall be
paid in full. For purposes of such subrogation, no payments or distributions to
the holders of the Senior Debt of any cash, property or securities to which the
Holders of the Securities or the Trustee would be entitled except for the
provisions of this Article XII, and no payments made pursuant to the
provisions of this Article XII to the holders of Senior Debt by Holders
of the Securities or the Trustee, shall, as among the Company, its creditors
other than holders of Senior Debt, and the Holders of the Securities, be deemed
to be a payment or distribution by the Company to or on account of the Senior
Debt.

 

SECTION
12.5.  Provisions
Solely to Define Relative Rights.

 

The provisions
of this Article XII are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities on the one hand
and the holders of Senior Debt

 

62

 

on the other hand. Nothing
contained in this Article XII or elsewhere in this Indenture or in the
Securities is intended to or shall (a) impair, as between the Company and the
Holders of the Securities, the obligations of the Company, which are absolute
and unconditional, to pay to the Holders of the Securities the principal of and
any premium and interest (including any Additional Interest) on the Securities
as and when the same shall become due and payable in accordance with their
terms, (b) affect the relative rights against the Company of the Holders of the
Securities and creditors of the Company other than their rights in relation to
the holders of Senior Debt or (c) prevent the Trustee or the Holder of any
Security (or to the extent expressly provided herein, the holder of any
Preferred Security) from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, including filing and voting
claims in any Proceeding, subject to the rights, if any, under this Article
XII of the holders of Senior Debt to receive cash, property and securities
otherwise payable or deliverable to the Trustee or such Holder.

 

SECTION
12.6.  Trustee
to Effectuate Subordination.

 

Each Holder of
a Security by his or her acceptance thereof authorizes and directs the Trustee
on his or her behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination provided in this Article XII
and appoints the Trustee his or her attorney-in-fact for any and all such
purposes.

 

SECTION
12.7.  No
Waiver of Subordination Provisions.

 

(a)  No right of any present or
future holder of any Senior Debt to enforce subordination as herein provided
shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act, in good faith,
by any such holder, or by any noncompliance by the Company with the terms,
provisions and covenants of this Indenture, regardless of any knowledge thereof
that any such holder may have or be otherwise charged with.

 

(b)  Without in any way limiting
the generality of paragraph (a) of this Section 12.7, the holders of
Senior Debt may, at any time and from to time, without the consent of or notice
to the Trustee or the Holders of the Securities, without incurring
responsibility to such Holders of the Securities and without impairing or
releasing the subordination provided in this Article XII or the
obligations hereunder of such Holders of the Securities to the holders of
Senior Debt, do any one or more of the following: (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, Senior
Debt, or otherwise amend or supplement in any manner Senior Debt or any
instrument evidencing the same or any agreement under which Senior Debt is
outstanding, (ii) sell, exchange, release or otherwise deal with any property
pledged, mortgaged or otherwise securing Senior Debt, (iii) release any Person
liable in any manner for the payment of Senior Debt and (iv) exercise or
refrain from exercising any rights against the Company and any other Person.

 

SECTION
12.8.  Notice
to Trustee.

 

(a)  The Company shall give
prompt written notice to a Responsible Officer of the Trustee of any fact known
to the Company that would prohibit the making of any payment to or

 

63

 

by the Trustee
in respect of the Securities. Notwithstanding the provisions of this Article
XII or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts that would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless
and until a Responsible Officer of the Trustee shall have received written
notice thereof from the Company or a holder of Senior Debt or from any trustee,
agent or representative therefor; provided,
that if the Trustee shall not have received the notice provided for in this Section
12.8 at least two Business Days prior to the date upon which by the terms
hereof any monies may become payable for any purpose (including, the payment of
the principal of and any premium on or interest (including any Additional
Interest) on any Security), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such monies and to apply the same to the purpose for which they were received
and shall not be affected by any notice to the contrary that may be received by
it within two Business Days prior to such date.

 

(b)  The Trustee shall be
entitled to rely on the delivery to it of a written notice by a Person
representing himself or herself to be a holder of Senior Debt (or a trustee,
agent, representative or attorney-in-fact therefor) to establish that such
notice has been given by a holder of Senior Debt (or a trustee, agent,
representative or attorney-in-fact therefor). In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a holder of Senior Debt to participate in any payment or
distribution pursuant to this Article XII, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Senior Debt held by such Person, the extent to which such Person
is entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article XII, and if
such evidence is not furnished, the Trustee may defer any payment to such
Person pending judicial determination as to the right of such Person to receive
such payment.

 

SECTION
12.9.  Reliance
on Judicial Order or Certificate of Liquidating Agent.

 

Upon any
payment or distribution of assets of the Company referred to in this Article
XII, the Trustee and the Holders of the Securities shall be entitled to
conclusively rely upon any order or decree entered by any court of competent
jurisdiction in which such Proceeding is pending, or a certificate of the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for
the benefit of creditors, agent or other Person making such payment or
distribution, delivered to the Trustee or to the Holders of Securities, for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Debt and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
XII.

 

SECTION
12.10.  Trustee
Not Fiduciary for Holders of Senior Debt.

 

The Trustee,
in its capacity as trustee under this Indenture, shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt and shall not be liable to any
such holders if it shall in good faith mistakenly pay over or distribute to
Holders of Securities or to the Company or to any other Person cash, property
or securities to which any holders of Senior Debt shall be entitled by virtue
of this Article XII or otherwise.

 

64

 

SECTION
12.11.  Rights
of Trustee as Holder of Senior Debt; Preservation of Trustee’s Rights.

 

The Trustee in
its individual capacity shall be entitled to all the rights set forth in this Article
XII with respect to any Senior Debt that may at any time be held by it, to
the same extent as any other holder of Senior Debt, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder.

 

SECTION
12.12.  Article
Applicable to Paying Agents.

 

If at any time
any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as
used in this Article XII shall in such case (unless the context
otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article XII in addition to or in place
of the Trustee; provided,
that Sections  12.8 and 12.11 shall not apply to the
Company or any Affiliate of the Company if the Company or such Affiliate acts
as Paying Agent.

 

* * * *

 

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.

 

65

 

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

 

	
   

  	
  PACIFIC
  CREST CAPITAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  Robert J. Dennen

  
	
   

  	
   

  	
  Title:  Senior Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  The Bank of New York, not in its individual capacity,
  but solely as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

66

 

Schedule A

 

DETERMINATION OF
LIBOR

 

With respect
to the Securities, the London interbank offered rate (“LIBOR”) shall be determined
by the Calculation Agent in accordance with the following provisions (in each
case rounded to the nearest .000001%):

 

(1)           On the second LIBOR Business Day (as defined below) prior
to an Interest Payment Date (except with respect to the first interest payment
period, such date shall be April 17, 2003)  (each such day, a “LIBOR Determination Date”),
LIBOR for any given security shall for the following interest payment period
equal the rate, as obtained by the Calculation Agent from Bloomberg Financial
Markets Commodities News, for three-month Eurodollar deposits that appears on
Dow Jones Telerate Page 3750 (as defined in the International Swaps and
Derivatives Association, Inc. 1991 Interest Rate and Currency Exchange
Definitions), or such other page as may replace such Page 3750, as of 11:00
a.m. (London time) on such LIBOR Determination Date.

 

(2)           If, on any LIBOR Determination Date, such rate does not
appear on Dow Jones Telerate Page 3750 or such other page as may replace such
Page 3750, the Calculation Agent shall determine the arithmetic mean of the offered
quotations of the Reference Banks (as defined below) to leading banks in the
London interbank market for three-month Eurodollar deposits in an amount
determined by the Calculation Agent by reference to requests for quotations as
of approximately 11:00 a.m. (London time) on the LIBOR Determination Date made
by the Calculation Agent to the Reference Banks.  If, on any LIBOR Determination Date, at least two of the
Reference Banks provide such quotations, LIBOR shall equal such arithmetic mean
of such quotations.  If, on any LIBOR
Determination Date, only one or none of the Reference Banks provide such
quotations, LIBOR shall be deemed to be the arithmetic mean of the offered
quotations that leading banks in the City of New York selected by the
Calculation Agent are quoting on the relevant LIBOR Determination Date for
three-month Eurodollar deposits in an amount determined by the Calculation
Agent by reference to the principal London offices of leading banks in the
London interbank market; provided that, if the Calculation Agent is
required but is unable to determine a rate in accordance with at least one of
the procedures provided above, LIBOR shall be LIBOR as determined on the
previous LIBOR Determination Date.

 

(3)           As used herein: “Reference Banks” means four major banks in
the London interbank market selected by the Calculation Agent; and “LIBOR
Business Day” means a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits)
in London.

 

A-1

 

Exhibit A

 

Officer’s Certificate

 

The
undersigned, the [Chief Financial Officer] [Treasurer] [Executive Vice
President] hereby certifies, pursuant to Section 7.3(b) of the Junior
Subordinated Indenture, dated as of April 23, 2003, among Pacific Crest
Capital, Inc. (the “Company”) and The Bank of New York, as trustee,  that, as of [date],
[20     ], the Company had the following ratios and balances:

 

BANK
HOLDING COMPANY

 

As of [Quarterly Financial
Dates], 20     

 

 

	
  Tier 1 Risk Weighted Assets

  	
   

  	
   

  	
   %

  
	
  Ratio of Double Leverage

  	
   

  	
   

  	
   %

  
	
  Non-Performing Assets to Loans
  and OREO

  	
   

  	
   

  	
   %

  
	
  Tangible Common Equity as a
  Percentage of Tangible Assets

  	
   

  	
   

  	
   %

  
	
  Ratio of Reserves to
  Non-Performing Loans

  	
   

  	
   

  	
   %

  
	
  Ratio of Net Charge-Offs to
  Loans

  	
   

  	
   

  	
   %

  
	
  Return on Average Assets
  (annualized)

  	
   

  	
   

  	
   %

  
	
  Net Interest Margin
  (annualized)

  	
   

  	
   

  	
   %

  
	
  Efficiency Ratio

  	
   

  	
   

  	
   %

  
	
  Ratio of Loans to Assets

  	
   

  	
   

  	
   %

  
	
  Ratio of Loans to Deposits

  	
   

  	
   

  	
   %

  
	
  Double Leverage (exclude trust
  preferred as equity)

  	
   

  	
   

  	
   %

  
	
  Total Assets

  	
   

  	
  $

  	
   

  	
   

  
	
  Year to Date Income

  	
   

  	
  $

  	
   

  	
   

  

 

•                  A table
describing the quarterly report calculation procedures is provided on page
         

 

 

Attached
hereto are the [audited] [unaudited] consolidated and consolidating financial
statements (including the balance sheet, income statement and, for year-end
statements, notes thereto) of the Company and its consolidated subsidiaries for
the [fiscal year] [fiscal quarter] ended [date],
20     , which financial statements fairly present in
all material respects, in accordance with U.S. generally accepted accounting
principles (“GAAP”), the financial position of the Company and its consolidated
subsidiaries, and the results of operations and changes in financial condition
as of the date, and for the [        quarter
interim] [annual] period ended [date],
20        , and such financial
statements have been prepared in accordance with GAAP consistently applied
throughout the period involved (expect as otherwise noted therein).

 

B-1

 

IN WITNESS
WHEREOF, the undersigned has executed this Officer’s Certificate as of this
                 
day of                  ,
20          

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Pacific
  Crest Capital, Inc.

  
	
   

  	
  30343
  Canwood Street

  
	
   

  	
  Agoura
  Hills, CA 91301

  
	
   

  	
  (818)
  865-3225

  

 

B-2

 

Exhibit B

 

Financial Definitions

 

BANK HOLDING COMPANY

 

	
  Report Item

  	
   

  	
  Corresponding
  FRY-9C or LP Line Items with Line

  Item corresponding Schedules

  	
   

  	
  Description
  of Calculation

  
	
  Tier 1 Risk Weighted Assets

  	
   

  	
  BHCK7206

  Schedule HC-R

  	
   

  	
  Tier 1 Risk
  Ratio: Core Capital (Tier 1)/ Risk-Adjusted Assets

  
	
  Ratio of Double Leverage

  	
   

  	
  (BHCP0365)/(BCHCP3210)

  Schedule PC in the LP

  	
   

  	
  Total equity
  investments in subsidiaries divided by the total equity capital. This field
  is calculated at the parent company level. “Subsidiaries” include bank, bank
  holding company, and non-bank subsidiaries.

  
	
  Non-Performing Assets to Loans
  and OREO

  	
   

  	
  (BHCK5525-BHCK3506+BHCK5526-

  BHCK3507+BHCK2744)/(BHCK2122+BHCK2744)

  Schedules HC-C, HC-M & HC-N

  	
   

  	
  Total
  Nonperforming Assets (NPLs+Foreclosed Real Estate+Other Nonaccrual &
  Repossessed Assets)/Total Loans+Foreclosed Real Estate

  
	
  Tangible Common Equity as a
  Percentage of Tangible Assets

  	
   

  	
  (BHDM3210-BHCK3163)/(BHCK2170-BHCK3163)

  Schedule HC

  	
   

  	
  (Equity
  Capital - Goodwill)/(Total Assets - Goodwill)

  
	
  Ratio of Reserves to
  Non-Performing Loans

  	
   

  	
  (BHCK3123+BHCK3128)/(BHCK5525-

  BHCK3506+BHCK5526-BHCK3507)

  Schedules HC & HC-N & HC-R

  	
   

  	
  Total Loan
  Loss and Allocated Transfer Risk Reserves/ Total Nonperforming Loans
  (Nonaccrual + Restructured)

  
	
  Ratio of Net Charge-Offs to
  Loans

  	
   

  	
  (BHCK4635-BHCK4605)/(BHCK3516)

  Schedules HC-B & HC-K

  	
   

  	
  Net charge
  offs for the period as a percentage of average loans.

  
	
  Return on Average Assets
  (annualized)

  	
   

  	
  (BHCK4340/BHCK3368)

  Schedules HI & HC-K

  	
   

  	
  Net Income
  as a percentage of Assets.

  
	
  Net Interest Margin
  (annualized)

  	
   

  	
  (BHCK4519)/(BHCK3515+BHCK3365+BH

  CK3516+BHCK3401+BHCKB985)

  Schedules HI Memorandum and HC-K

  	
   

  	
  (Net
  Interest Income Fully Taxable Equivalent, if available/Average Earning
  Assets)

  
	
  Efficiency Ratio

  	
   

  	
  (BHCK4093)/(BHCK4519+BHCK4079)

  Schedule HI

  	
   

  	
  (Non-interest
  Expense)/(Net Interest Income Fully Taxable Equivalent, if available, plus
  Non-interest Income)

  
	
  Ratio of Loans to Assets

  	
   

  	
  (BHCKB528+BHCK5369)/(BHCK2170)

  Schedule HC

  	
   

  	
  Total Loans
  & Leases (Net of Unearned Income & Gross of Reserve)/Total Assets

  
	
  Ratio of Loans to Deposits

  	
   

  	
  (BHCKB528+BHCK5369)/(BHDM6631+BH

  DM6636+BHFN6631+BHFN6636)

  Schedule HC

  	
   

  	
  Total Loans
  & Leases (Net of Unearned Income & Gross of Reserve)/Total Deposits
  (Includes Domestic and Foreign Deposits)

  

 

 

B-1

 

	
  Total Assets

  	
   

  	
  (BHCK2170)

  Schedule HC

  	
   

  	
  The sum of
  total assets. Includes cash and balances due from depository institutions;
  securities; federal funds sold and securities purchased under agreements to
  resell; loans and lease financing receivables; trading assets; premises and
  fixed assets; other real estate owned; investments in unconsolidated
  subsidiaries and associated companies; customer’s liability on acceptances
  outstanding; intangible assets; and other assets.

  
	
  Net Income

  	
   

  	
  (BHCK4300)

  Schedule HI

  	
   

  	
  The sum of
  income (loss)before extraordinary items and other adjustments and
  extraordinary items; and other adjustments, net of income taxes.

  

 

B-2

 

Financial Definitions

 

THRIFT HOLDING COMPANY

 

	
  Report
  Item

  	
   

  	
  Corresponding TFR

  	
   

  	
  Description of Calculation

  
	
  Tier I Risk Weighted Assets  -

  	
   

  	
  Schedule
  CCR– Consolidated Capital Requirement

  CCR 830

  	
   

  	
  Tier 1 Risk
  Ratio: Core Capital (Tier 1)/Risk-adjusted assets

  
	
  Ratio of Double Leverage

  	
   

  	
  Not
  applicable

  	
   

  	
  Not
  applicable

  
	
  Non-performing assets to loans and OREO

  	
   

  	
  Schedule PD
  – Consolidated Past Due and Nonaccrual

  Schedule SC– Consolidated Statement of Condition

  PD30/(SC23+SC30+SC34+SC40)

  	
   

  	
  Total
  Non-performing assets (NPLs + Foreclosed Real Estate+Other Non-accrual &
  Repossessed assets+Foreclosed Real Estate)

  
	
  Tangible Common Equity as a Percentage of
  Total Assets

  	
   

  	
  Schedule CCR
  CCR 840

  	
   

  	
  (Equity
  Capital-Goodwill) / (Total assets – Goodwill)

  
	
  Ratio of Reserves to Non-performing loans

  	
   

  	
  SC283/PD30

  	
   

  	
  Total loan
  loss reserves / Total Non-performing loans

  
	
  Ratio of Net Charge-offs to Loans

  	
   

  	
  Schedule VA
  – Consolidated Valuation Allowances and

  Related Data

  (VA155-VA135)/(SC23+SC30+SC34)

  	
   

  	
  Net charge
  offs for the period as a percentage of average loans

  
	
  Return on Assets (annualized)

  	
   

  	
  Schedule SO
  – Consolidated Statements of Operations

  SO91/SC60

  	
   

  	
  Net income
  as a percentage of assets

  
	
  Net interest margin (annualized)

  	
   

  	
  SO311/((SC10-SC110)+SC20+SC23+SC30+SC34)

  	
   

  	
  Net interest
  income / Average earning assets

  
	
  Efficiency Ratio

  	
   

  	
  (SO51/(SO311+SO40))

  	
   

  	
  (Non-interest
  expense) / (Net interest income + Non-interest income)

  
	
  Ratio of Loans to Assets

  	
   

  	
  (SC23+SC30+SC34)/(SC60)

  	
   

  	
  Total Loan
  & Leases / Total assets

  
	
  Ratio of Loans to Deposits

  	
   

  	
  (SC23+SC30+SC34)/(SC710)

  	
   

  	
  Total Loans
  & Leases / Total Deposits

  
	
  Total Assets

  	
   

  	
  Schedule SC

  SC60

  	
   

  	
  The sum of
  total assets.

  
	
  Net Income

  	
   

  	
  Schedule SO

  SO91

  	
   

  	
  The sum of
  income (loss).

  

 

B-3

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