Document:

Exhibit 10.6

 

 

AMENDED AND RESTATED DECLARATION

OF TRUST

 

by and among

 

U.S. BANK NATIONAL ASSOCIATION,

as Institutional Trustee,

 

FIRST COMMUNITY BANCORP,

as Sponsor,

 

and

 

MATTHEW P. WAGNER, LYNN M. HOPKINS
and

JARED M. WOLFF,

as Administrators,

 

Dated as of August 15, 2003

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I INTERPRETATION AND
  DEFINITIONS

  
	
  Section 1.1.

  	
  Definitions.

  
	
   

  	
   

  
	
  ARTICLE II ORGANIZATION

  
	
  Section 2.1.

  	
  Name.

  
	
  Section 2.2.

  	
  Office.

  
	
  Section 2.3.

  	
  Purpose.

  
	
  Section 2.4.

  	
  Authority.

  
	
  Section 2.5.

  	
  Title to Property of the Trust.

  
	
  Section 2.6.

  	
  Powers and Duties of the Institutional
  Trustee and the Administrators.

  
	
  Section 2.7.

  	
  Prohibition of Actions by the Trust
  and the Institutional Trustee.

  
	
  Section 2.8.

  	
  Powers and Duties of the Institutional
  Trustee.

  
	
  Section 2.9.

  	
  Certain Duties and Responsibilities of
  the Institutional Trustee and Administrators.

  
	
  Section 2.10.

  	
  Certain Rights of Institutional
  Trustee.

  
	
  Section 2.11.

  	
  Execution of Documents.

  
	
  Section 2.12.

  	
  Not Responsible for Recitals or
  Issuance of Securities.

  
	
  Section 2.13.

  	
  Duration of Trust.

  
	
  Section 2.14.

  	
  Mergers.

  
	
   

  	
   

  
	
  ARTICLE III SPONSOR

  
	
  Section 3.1.

  	
  Sponsor’s Purchase of Common
  Securities.

  
	
  Section 3.2.

  	
  Responsibilities of the Sponsor.

  
	
  Section 3.3.

  	
  Expenses.

  
	
  Section 3.4.

  	
  Right to Proceed.

  
	
   

  	
   

  
	
  ARTICLE IV INSTITUTIONAL TRUSTEE
  AND ADMINISTRATORS

  
	
  Section 4.1.

  	
  Institutional Trustee; Eligibility.

  
	
  Section 4.2.

  	
  Administrators.

  
	
  Section 4.3.

  	
  Appointment, Removal and Resignation
  of Institutional Trustee and Administrators.

  
	
  Section 4.4.

  	
  Institutional Trustee Vacancies.

  
	
  Section 4.5.

  	
  Effect of Vacancies.

  
	
  Section 4.6.

  	
  Meetings of the Institutional Trustee
  and the Administrators.

  
	
  Section 4.7.

  	
  Delegation of Power.

  
	
  Section 4.8.

  	
  Conversion, Consolidation or
  Succession to Business.

  
	
   

  	
   

  
	
  ARTICLE V DISTRIBUTIONS

  
	
  Section 5.1.

  	
  Distributions.

  
	
   

  	
   

  
	
  ARTICLE VI ISSUANCE OF SECURITIES

  
	
  Section 6.1.

  	
  General Provisions Regarding
  Securities.

  
	
  Section 6.2.

  	
  Paying Agent, Transfer Agent and
  Registrar.

  
	
  Section 6.3.

  	
  Form and Dating.

  
	
  Section 6.4.

  	
  Mutilated, Destroyed, Lost or Stolen
  Certificates.

  
	
  Section 6.5.

  	
  Temporary Securities.

  
	
  Section 6.6.

  	
  Cancellation.

  

 

i

 

	
  Section 6.7.

  	
  Rights of Holders; Waivers of Past
  Defaults.

  
	
   

  	
   

  
	
  ARTICLE VII DISSOLUTION AND
  TERMINATION OF TRUST

  
	
  Section 7.1.

  	
  Dissolution and Termination of Trust.

  
	
   

  	
   

  
	
  ARTICLE VIII TRANSFER OF INTERESTS

  
	
  Section 8.1.

  	
  General.

  
	
  Section 8.2.

  	
  Transfer Procedures and Restrictions.

  
	
  Section 8.3.

  	
  Deemed Security Holders.

  
	
   

  	
   

  
	
  ARTICLE IX LIMITATION OF LIABILITY
  OF HOLDERS OF SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS

  
	
  Section 9.1.

  	
  Liability.

  
	
  Section 9.2.

  	
  Exculpation.

  
	
  Section 9.3.

  	
  Fiduciary Duty.

  
	
  Section 9.4.

  	
  Indemnification.

  
	
  Section 9.5.

  	
  Outside Businesses.

  
	
  Section 9.6.

  	
  Compensation; Fee.

  
	
   

  	
   

  
	
  ARTICLE X ACCOUNTING

  
	
  Section 10.1.

  	
  Fiscal Year.

  
	
  Section 10.2.

  	
  Certain Accounting Matters.

  
	
  Section 10.3.

  	
  Banking.

  
	
  Section 10.4.

  	
  Withholding.

  
	
   

  	
   

  
	
  ARTICLE XI AMENDMENTS AND MEETINGS

  
	
  Section 11.1.

  	
  Amendments.

  
	
  Section 11.2.

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

  
	
   

  	
   

  
	
  ARTICLE XII REPRESENTATIONS OF
  INSTITUTIONAL TRUSTEE

  
	
  Section 12.1.

  	
  Representations and Warranties of
  Institutional Trustee.

  
	
   

  	
   

  
	
  ARTICLE XIII MISCELLANEOUS

  
	
  Section 13.1.

  	
  Notices.

  
	
  Section 13.2.

  	
  Governing Law.

  
	
  Section 13.3.

  	
  Intention of the Parties.

  
	
  Section 13.4.

  	
  Headings.

  
	
  Section 13.5.

  	
  Successors and Assigns.

  
	
  Section 13.6.

  	
  Partial Enforceability.

  
	
  Section 13.7.

  	
  Counterparts.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Annex I

  	
  Terms of Securities

  
	
  Exhibit A-1

  	
  Form of Capital Security Certificate

  
	
  Exhibit A-2

  	
  Form of Common Security Certificate

  
	
  Exhibit B

  	
  Specimen of Initial Debenture

  
	
  Exhibit C

  	
  Placement Agreement

  

 

ii

 

AMENDED AND RESTATED

 

DECLARATION OF TRUST

 

OF

 

FIRST COMMUNITY/CA STATUTORY TRUST V

 

August 15, 2003

 

AMENDED AND RESTATED
DECLARATION OF TRUST (“Declaration”) dated and effective as of
August 15, 2003, by the Institutional Trustee (as defined herein), the
Administrators (as defined herein), the Sponsor (as defined herein) and by the
holders, from time to time, of undivided beneficial interests in the Trust (as
defined herein) to be issued pursuant to this Declaration;

 

WHEREAS, the
Institutional Trustee, the Administrators and the Sponsor established First
Community/CA Statutory Trust V (the “Trust”), a statutory trust under
the Statutory Trust Act (as defined herein) pursuant to a Declaration of Trust
dated as of August 11, 2003 (the “Original Declaration”), and a
Certificate of Trust filed with the Secretary of State of the State of
Connecticut on August 11, 2003, for the sole purpose of issuing and
selling certain securities representing undivided beneficial interests in the
assets of the Trust and investing the proceeds thereof in certain debentures of
the Debenture Issuer (as defined herein);

 

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

 

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

 

NOW, THEREFORE, it being
the intention of the parties hereto to continue the Trust as a statutory trust
under the Statutory Trust Act and that this Declaration constitutes the
governing instrument of such statutory trust, the Institutional Trustee
declares that all assets contributed to the Trust will be held in trust for the
benefit of the holders, from time to time, of the securities representing
undivided beneficial interests in the assets of the Trust issued hereunder,
subject to the provisions of this Declaration. 
The parties hereto hereby agree as follows:

 

ARTICLE I

 

INTERPRETATION AND DEFINITIONS

 

Section 1.1.                                Definitions.

 

Unless the context
otherwise requires:

 

(a)                                  Capitalized
terms used in this Declaration but not defined in the preamble above have the
respective meanings assigned to them in this Section 1.1;

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

“Administrators”
means each of Matthew P. Wagner, Lynn M. Hopkins and Jared M. Wolff, solely in
such Person’s capacity as Administrator of the Trust created and continued
hereunder and not in such Person’s individual capacity, or such Administrator’s
successor in interest in such capacity, or any successor appointed as herein
provided.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Capital Securities”
has the meaning set forth in paragraph 1(a) of Annex I.

 

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

 

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

 

“Certificate”
means any certificate evidencing Securities.

 

“Closing Date” has
the meaning set forth in the Placement Agreement.

 

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

 

2

 

“Common Securities”
has the meaning set forth in paragraph 1(b) of Annex I.

 

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

 

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

 

“Corporate Trust
Office” means the office of the Institutional Trustee at which the
corporate trust business of the Institutional Trustee shall, at any particular
time, be principally administered, which office at the date of execution of
this Declaration is located at 225 Asylum Street, Goodwin Square, Hartford, Connecticut
06103.

 

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

 

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

 

“Creditor” has the
meaning set forth in Section 3.3.

 

“Debenture Issuer”
means First Community Bancorp, a California corporation, in its capacity as
issuer of the Debentures under the Indenture.

 

“Debenture Trustee”
means U.S. Bank National Association, as trustee under the Indenture until a
successor is appointed thereunder, and thereafter means such successor trustee.

 

“Debentures” means
the Floating Rate Junior Subordinated Deferrable Interest Debentures due 2033
to be issued by the Debenture Issuer under the Indenture.

 

“Defaulted Interest”
has the meaning set forth in the Indenture.

 

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

 

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

 

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

 

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

 

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

 

“Distribution Rate”
means, for the period beginning on (and including) the date of original
issuance and ending on (but excluding) December 17, 2003, the rate per
annum of 4.23%, and for the period beginning on (and including)
December 17, 2003, and thereafter, the Coupon Rate.

 

“Event of Default”
means any one of the following events (whatever the reason for such event 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):

 

3

 

(a)                                  the
occurrence of an Indenture Event of Default; or

 

(b)                                 default
by the Trust in the payment of any Redemption Price or Special Redemption Price
of any Security when it becomes due and payable; or

 

(c)                                  default
in the performance, or breach, in any material respect, of any covenant or
warranty of the Institutional Trustee in this Declaration (other than those
specified in clause (a) or (b) above) and continuation of such default or
breach for a period of 60 days after there has been given, by registered or
certified mail to the Institutional Trustee and to the Sponsor by the Holders
of at least 25% in aggregate liquidation amount of the outstanding Capital
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;
or

 

(d)                                 the
occurrence of a Bankruptcy Event with respect to the Institutional Trustee if a
successor Institutional Trustee has not been appointed within 90 days thereof.

 

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

 

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

 

“Fiduciary Indemnified
Person” shall mean the Institutional Trustee, any Affiliate of the
Institutional Trustee and any officers, directors, shareholders, members,
partners, employees, representatives, custodians, nominees or agents of the
Institutional Trustee.

 

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

 

“Guarantee” means
the guarantee agreement to be dated as of the Closing Date, of the Sponsor in
respect of the Capital Securities.

 

“Holder” means a
Person in whose name a Certificate representing a Security is registered, such
Person being a beneficial owner within the meaning of the Statutory Trust Act.

 

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

 

“Indenture” means
the Indenture dated as of the Closing Date, between the Debenture Issuer and
the Debenture Trustee, and any indenture supplemental thereto pursuant to which
the Debentures are to be issued, as such Indenture and any supplemental
indenture may be amended, supplemented or otherwise modified from time to time.

 

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

 

“Institutional Trustee”
means the Trustee meeting the eligibility requirements set forth in
Section 4.1.

 

“Interest” means
any interest due on the Debentures including any Additional Interest and
Defaulted Interest.

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Paying Agent” has
the meaning specified in Section 6.2.

 

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

 

“Placement Agreement”
means the Placement Agreement relating to the offering and sale of Capital
Securities in the form of Exhibit C.

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Sponsor” means
First Community Bancorp, a California corporation, or any successor entity in a
merger, consolidation or amalgamation, in its capacity as sponsor of the Trust.

 

“Statutory Trust Act”
means Chapter 615 of Title 34 of the Connecticut General Statutes, Sections
500, et seq. as may be amended from time to time.

 

“Successor Entity”
has the meaning set forth in Section 2.14(b).

 

“Successor
Institutional Trustee” has the meaning set forth in Section 4.3(a).

 

“Successor Securities”
has the meaning set forth in Section 2.14(b).

 

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

 

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

 

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

 

“3-Month LIBOR”
has the meaning set forth in paragraph 4(a) of Annex I.

 

6

 

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

 

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

 

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

 

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

 

ARTICLE II

 

ORGANIZATION

 

Section 2.1.                                Name.  The Trust is named “First Community/CA
Statutory Trust V,” as such name may be modified from time to time by the
Administrators following written notice to the Holders of the Securities.  The Trust’s activities may be conducted
under the name of the Trust or any other name deemed advisable by the
Administrators.

 

Section 2.2.                                Office.  The address of the principal office of
the Trust is c/o U.S. Bank National Association, 225 Asylum Street, Goodwin
Square, Hartford, Connecticut 06103.  On
at least 10 Business Days written notice to the Holders of the Securities, the
Administrators may designate another principal office, which shall be in a
state of the United States or in the District of Columbia.

 

Section 2.3.                                Purpose.  The exclusive purposes and functions of
the Trust are (a) to issue and sell the Securities representing undivided beneficial
interests in the assets of the Trust, (b) to invest the gross proceeds from
such sale to acquire the Debentures, (c) to facilitate direct investment in the
assets of the Trust through issuance of the Common Securities and the Capital
Securities and (d) except as otherwise limited herein, to engage in only those
other activities necessary or incidental thereto.  The Trust shall not borrow money, issue debt or reinvest proceeds
derived from investments, pledge any of its assets, or otherwise undertake (or
permit to be undertaken) any activity that would cause the Trust not to be
classified for United States federal income tax purposes as a grantor trust.

 

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

 

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

 

7

 

Section 2.6.                                Powers
and Duties of the Institutional Trustee and the Administrators.

 

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

 

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

 

(A)      the
issuance and sale of the Securities;

 

(B)        to
cause the Trust to enter into, and to execute and deliver on behalf of the
Trust, such agreements as may be necessary or desirable in connection with the
purposes and function of the Trust, including agreements with the Paying Agent;

 

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

 

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

 

(E)         the
consent to the appointment of a Paying Agent, Transfer Agent and Registrar in
accordance with this Declaration, which consent shall not be unreasonably
withheld or delayed;

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

(A)      the
establishment of the Property Account;

 

(B)        the
receipt of the Debentures;

 

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

 

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

 

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

 

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

 

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

 

(H)       to
the extent provided in this Declaration, the winding up of the affairs of and
liquidation of the Trust and the preparation, execution and filing of the
certificate of cancellation with the Secretary of State of the State of Connecticut;

 

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

 

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

 

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

 

9

 

(b)                                 So
long as this Declaration remains in effect, the Trust (or the Institutional
Trustee or Administrators acting on behalf of the Trust) shall not undertake
any business, activities or transaction except as expressly provided herein or
contemplated hereby. In particular, neither the Institutional Trustee nor the
Administrators may cause the Trust to (i) acquire any investments or engage in
any activities not authorized by this Declaration, (ii) sell, assign, transfer,
exchange, mortgage, pledge, set-off or otherwise dispose of any of the Trust
Property or interests therein, including to Holders, except as expressly
provided herein, (iii) take any action that would reasonably be expected (x) to
cause the Trust to fail or cease to qualify as a “grantor trust” for United
States federal income tax purposes or (y) to require the trust to register as
an Investment Company under the Investment Company Act, (iv) incur any
indebtedness for borrowed money or issue any other debt or (v) take or consent
to any action that would result in the placement of a lien on any of the Trust
Property.  The Institutional Trustee
shall, at the sole cost and expense of the Trust, defend all claims and demands
of all Persons at any time claiming any lien on any of the Trust Property
adverse to the interest of the Trust or the Holders in their capacity as
Holders.

 

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

 

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

 

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

 

(iii)                               the
negotiation of the terms of, and the execution and delivery of, the Placement
Agreement providing for the sale of the Capital Securities; and

 

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

 

(d)                                 Notwithstanding
anything herein to the contrary, the Administrators and the Holders of a
Majority in liquidation amount of the Common Securities are authorized and
directed to conduct the affairs of the Trust and to operate the Trust so that
the Trust will not (i) be deemed to be an Investment Company required to be
registered under the Investment Company Act, and (ii) fail to be classified as
a “grantor trust” for United States federal income tax purposes.  The Administrators and the Holders of a
Majority in liquidation amount of the Common Securities shall not take any
action inconsistent with the treatment of the Debentures as indebtedness of the
Debenture Issuer for United States federal income tax purposes.  In this connection, the Administrators and
the Holders of a Majority in liquidation amount of the Common Securities are
authorized to take any action, not inconsistent with applicable laws, the
Certificate of Trust or this Declaration, as amended from time to time, that
each of the Administrators and the Holders of a Majority in liquidation amount
of the Common Securities determines in their discretion to be necessary or
desirable for such purposes.

 

10

 

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

 

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

 

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

 

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

 

Section 2.7.                                Prohibition
of Actions by the Trust and the Institutional Trustee.

 

(a)                                  The
Trust shall not, and the Institutional Trustee shall cause the Trust not to,
engage in any activity other than as required or authorized by this
Declaration.  In particular, the Trust
shall not and the Institutional Trustee shall cause the Trust not to:

 

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

 

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

 

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

 

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

 

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

 

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

 

(vii)                           carry
on any “trade or business” as that phrase is used in the Code; or

 

(viii)                        other than
as provided in this Declaration (including Annex I), (A) direct the time,
method and place of exercising any trust or power conferred upon the Debenture
Trustee with respect to the Debentures, (B) waive any past default that is
waivable under the Indenture, (C) exercise any right to rescind or annul any
declaration that the principal of all the Debentures shall be due and payable,
or (D) consent to any amendment, modification or termination of the Indenture
or the Debentures where such consent shall be required unless the Trust shall
have received a written opinion of counsel to the effect that such modification
will not cause the Trust to cease to be classified as a “grantor trust” for
United States federal income tax purposes.

 

11

 

Section 2.8.                                Powers
and Duties of the Institutional Trustee.

 

(a)                                  The
legal title to the Debentures shall be owned by and held of record in the name
of the Institutional Trustee in trust for the benefit of the Trust and the
Holders of the Securities.  The right,
title and interest of the Institutional Trustee to the Debentures shall vest
automatically in each Person who may hereafter be appointed as Institutional
Trustee in accordance with Section 4.3. 
Such vesting and cessation of title shall be effective whether or not
conveyancing documents with regard to the Debentures have been executed and
delivered.

 

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

 

(c)                                  The
Institutional Trustee shall:

 

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

 

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

 

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

 

(d)                                 The
Institutional Trustee may bring or defend, pay, collect, compromise, arbitrate,
resort to legal action with respect to, or otherwise adjust claims or demands
of or against, the Trust which arises out of or in connection with an Event of
Default of which a Responsible Officer of the Institutional Trustee has actual
knowledge or arises out of the Institutional Trustee’s duties and obligations
under this Declaration; provided, however, that if an Event of
Default has occurred and is continuing and such event is attributable to the
failure of the Debenture Issuer to pay interest or principal on the Debentures
on the date such interest or principal is otherwise payable (or in the case of
redemption, on the redemption date), then a Holder of the Capital Securities
may directly institute a proceeding for enforcement of payment to such Holder
of the principal of or interest on the Debentures having a principal amount
equal to the aggregate liquidation amount of the Capital Securities of such
Holder (a “Direct Action”) on or after the respective due date specified
in the Debentures.  In connection with
such Direct Action, the rights of the Holders of the Common Securities will be
subrogated to the rights of such Holder of the Capital Securities to the extent
of any payment made by the Debenture Issuer to such Holder of the Capital
Securities in such Direct Action; provided, however, that no
Holder of the Common Securities may exercise such right of subrogation so long
as an Event of Default with respect to the Capital Securities has occurred and
is continuing.

 

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

 

12

 

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

 

(ii)                                  a
Successor Institutional Trustee has been appointed and has accepted that
appointment in accordance with Section 4.3.

 

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

 

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

 

Section 2.9.                                Certain
Duties and Responsibilities of the Institutional Trustee and Administrators.

 

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

 

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

 

(c)                                  All
payments made by the Institutional Trustee or a Paying Agent in respect of the
Securities shall be made only from the revenue and proceeds from the Trust
Property and only to the extent that there shall be sufficient revenue or
proceeds from the Trust Property to enable the Institutional Trustee or a
Paying Agent to make payments in accordance with the terms hereof.  Each Holder, by its acceptance of a
Security, agrees that it will look solely to the revenue and proceeds from the
Trust

 

13

 

Property to the extent legally available for distribution to it as herein
provided and that the Institutional Trustee and the Administrators are not
personally liable to it for any amount distributable in respect of any Security
or for any other liability in respect of any Security.  This Section 2.9(c) does not limit the liability
of the Institutional Trustee expressly set forth elsewhere in this Declaration.

 

(d)                                 The
Institutional Trustee shall not be liable for its own acts or omissions
hereunder except as a result of its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(b)                                 if
(i) in performing its duties under this Declaration, the Institutional Trustee
is required to decide between alternative courses of action, (ii) in construing
any of the provisions of this Declaration, the Institutional Trustee finds the
same ambiguous or inconsistent with any other provisions contained herein, or
(iii) the Institutional Trustee is unsure of the application of any provision
of this Declaration, then, except as to any matter as to which the Holders of
Capital Securities are entitled to vote under the

 

14

 

terms of this Declaration, the Institutional Trustee may deliver a
notice to the Sponsor requesting the Sponsor’s written instructions as to the
course of action to be taken and the Institutional Trustee shall take such
action, or refrain from taking such action, as the Institutional Trustee shall
be instructed in writing, in which event the Institutional Trustee shall have
no liability except for its own negligence or willful misconduct;

 

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

 

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

 

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

 

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

 

(g)                                 the
Institutional Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Declaration at the request or direction
of any of the Holders pursuant to this Declaration, unless such Holders shall
have offered to the Institutional Trustee security or indemnity reasonably
satisfactory to it against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction; provided,
that nothing contained in this Section 2.10(g) shall be taken to relieve
the Institutional Trustee, subject to Section 2.9(b), upon the occurrence
of an Event of Default (that has not been cured or waived pursuant to
Section 6.7), to exercise such of the rights and powers vested in it by
this Declaration, and use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs;

 

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

 

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

 

(j)                                     whenever
in the administration of this Declaration the Institutional Trustee shall deem
it desirable to receive instructions with respect to enforcing any remedy or
right or taking any other action hereunder the Institutional Trustee (i) may
request instructions from the Holders of the Capital Securities which
instructions may only be given by the Holders of the same proportion in
liquidation amount of the Capital Securities as would be entitled to direct the
Institutional Trustee under the terms of the Capital

 

15

 

Securities in respect of such remedy, right or action, (ii) may refrain
from enforcing such remedy or right or taking such other action until such
instructions are received, and (iii) shall be fully protected in acting in
accordance with such instructions;

 

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

 

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

 

(m)                               the
Institutional Trustee shall not be charged with knowledge of an Event of
Default unless a Responsible Officer of the Institutional Trustee obtains
actual knowledge of such event or the Institutional Trustee receives written
notice of such event from any Holder, the Sponsor or the Debenture Trustee;

 

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

 

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

 

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

 

Section 2.12.                         Not
Responsible for Recitals or Issuance of Securities.  The recitals contained in this
Declaration and the Securities shall be taken as the statements of the Sponsor,
and the Institutional Trustee does not assume any responsibility for their
correctness.  The Institutional Trustee
makes no representations as to the value or condition of the property of the
Trust or any part thereof.  The
Institutional Trustee makes no representations as to the validity or
sufficiency of this Declaration, the Debentures or the Securities.

 

Section 2.13.                         Duration
of Trust.  The Trust, unless
earlier dissolved pursuant to the provisions of Article VII hereof, shall
be in existence for 35 years from the Closing Date.

 

Section 2.14.                         Mergers.

 

(a)                                  The
Trust may not consolidate, amalgamate, merge with or into, or be replaced by,
or convey, transfer or lease its properties and assets substantially as an
entirety to any corporation or other

 

16

 

body, except as described in Section 2.14(b) and (c) and except in
connection with the liquidation of the Trust and the distribution of the
Debentures to Holders of Securities pursuant to Section 7.1(a)(iv) of the
Declaration or Section 4 of Annex I.

 

(b)                                 The
Trust may, with the consent of the Institutional Trustee and without the
consent of the Holders of the Capital Securities, consolidate, amalgamate,
merge with or into, or be replaced by a trust organized as such under the laws
of any state; provided that:

 

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

 

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

 

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

 

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

 

(iii)                               such
merger, consolidation, amalgamation or replacement does not adversely affect
the rights, preferences and privileges of the Holders of the Securities (including
any Successor Securities) in any material respect;

 

(iv)                              the
Institutional Trustee receives written confirmation from Moody’s Investor
Services, Inc. and any other nationally recognized statistical rating
organization that rates securities issued by the initial purchaser of the
Capital Securities that it will not reduce or withdraw the rating of any such
securities because of such merger, conversion, consolidation, amalgamation or
replacement;

 

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

 

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

 

(A)      such
merger, consolidation, amalgamation or replacement does not adversely affect
the rights, preferences and privileges of the Holders of the Securities
(including any Successor Securities) in any material respect;

 

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

 

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

 

(vii)                           the
Sponsor guarantees the obligations of such Successor Entity under the Successor
Securities at least to the extent provided by the Guarantee;

 

17

 

(viii)                        the
Sponsor owns 100% of the common securities of any Successor Entity; and

 

(ix)                                prior
to such merger, consolidation, amalgamation or replacement, the Institutional
Trustee shall have received an Officers’ Certificate of the Administrators and
an opinion of counsel, each to the effect that all conditions precedent under
this Section 2.14(b) to such transaction have been satisfied.

 

(c)                                  Notwithstanding
Section 2.14(b), the Trust shall not, except with the consent of Holders of
100% in aggregate liquidation amount of the Securities, consolidate,
amalgamate, merge with or into, or be replaced by any other entity or permit
any other entity to consolidate, amalgamate, merge with or into, or replace it
if such consolidation, amalgamation, merger or replacement would cause the
Trust or Successor Entity to be classified as other than a grantor trust for
United States federal income tax purposes.

 

ARTICLE III

 

SPONSOR

 

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

 

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

 

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

 

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

 

Section 3.3.                                Expenses.  In connection with the offering, sale and
issuance of the Debentures to the Trust and in connection with the sale of the
Securities by the Trust, the Sponsor, in its capacity as Debenture Issuer,
shall:

 

(a)                                  pay
all reasonable costs and expenses owing to the Debenture Trustee pursuant to
Section 6.6 of the Indenture;

 

(b)                                 be
responsible for and shall pay all debts and obligations (other than with
respect to the Securities) and all costs and expenses of the Trust, the
offering, sale and issuance of the Securities (including fees to the placement
agents in connection therewith), the costs and expenses (including reasonable
counsel fees and expenses) of the Institutional Trustee and the Administrators,
the costs and expenses relating to the operation of the Trust, including,
without limitation, costs and expenses of accountants, attorneys, statistical
or bookkeeping services, expenses for printing and engraving and computing or
accounting equipment, Paying Agents, Registrars, Transfer Agents, duplicating,
travel and telephone and other telecommunications expenses and costs and
expenses incurred in connection with the acquisition, financing, and
disposition of Trust assets and the enforcement by the Institutional Trustee of
the rights of the Holders (for purposes of clarification, this
Section 3.3(b) does not contemplate the

 

18

 

payment by the Sponsor of acceptance or annual administration fees
owing to the Institutional Trustee pursuant to the services to be provided by
the Institutional Trustee under this Declaration or the fees and expenses of
the Institutional Trustee’s counsel in connection with the closing of the
transactions contemplated by this Declaration); and

 

(c)                                  pay
any and all taxes (other than United States withholding taxes attributable to
the Trust or its assets) and all liabilities, costs and expenses with respect
to such taxes of the Trust.

 

The Sponsor’s obligations
under this Section 3.3 shall be for the benefit of, and shall be
enforceable by, any Person to whom such debts, obligations, costs, expenses and
taxes are owed (a “Creditor”) whether or not such Creditor has received
notice hereof.  Any such Creditor may
enforce the Sponsor’s obligations under this Section 3.3 directly against
the Sponsor and the Sponsor irrevocably waives any right or remedy to require
that any such Creditor take any action against the Trust or any other Person
before proceeding against the Sponsor. 
The Sponsor agrees to execute such additional agreements as may be
necessary or desirable in order to give full effect to the provisions of this
Section 3.3.

 

Section 3.4.                                Right
to Proceed.  The Sponsor
acknowledges the rights of Holders to institute a Direct Action as set forth in
Section 2.8(d) hereto.

 

ARTICLE IV

 

INSTITUTIONAL TRUSTEE AND
ADMINISTRATORS

 

Section 4.1.                                Institutional
Trustee; Eligibility.

 

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

 

(i)                                     not
be an Affiliate of the Sponsor;

 

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

 

(iii)                               be
a banking corporation or trust company organized and doing business under the
laws of the United States of America or any state thereof or the District of
Columbia, authorized under such laws to exercise corporate trust powers, having
a combined capital and surplus of at least 50 million U.S. dollars
($50,000,000.00), and subject to supervision or examination by Federal, state,
or District of Columbia authority.  If
such corporation publishes reports of condition at least annually, pursuant to
law or to the requirements of the supervising or examining authority referred
to above, then for the purposes of this Section 4.1(a)(iii), the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published.

 

(b)                                 If
at any time the Institutional Trustee shall cease to be eligible to so act under
Section 4.1(a), the Institutional Trustee shall immediately resign in the
manner and with the effect set forth in Section 4.3(a).

 

(c)                                  If
the Institutional Trustee has or shall acquire any “conflicting interest”
within the meaning of Section 310(b) of the Trust Indenture Act of 1939,
as amended, the Institutional Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to this
Declaration.

 

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

 

19

 

Section 4.2.                                Administrators.  Each Administrator shall be a U.S.
Person, 21 years of age or older and authorized to bind the Sponsor.  The initial Administrators shall be Matthew
P. Wagner, Lynn M. Hopkins and Jared M. Wolff. 
There shall at all times be at least one Administrator.  Except where a requirement for action by a
specific number of Administrators is expressly set forth in this Declaration
and except with respect to any action the taking of which is the subject of a
meeting of the Administrators, any action required or permitted to be taken by
the Administrators may be taken by, and any power of the Administrators may be
exercised by, or with the consent of, any one such Administrator.

 

Section 4.3.                                Appointment,
Removal and Resignation of Institutional Trustee and Administrators.  

 

(a)                                  Notwithstanding
anything to the contrary in this Declaration, no resignation or removal of the
Institutional Trustee and no appointment of a Successor Institutional Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the Successor Institutional Trustee in accordance with the
applicable requirements of this Section 4.3.

 

Subject to the
immediately preceding paragraph, the Institutional Trustee may resign at any
time by giving written notice thereof to the Holders of the Securities and by
appointing a Successor Institutional Trustee. 
Upon the resignation of the Institutional Trustee, the Institutional Trustee
shall appoint a successor by requesting from at least three Persons meeting the
eligibility requirements, its expenses and charges to serve as the successor
Institutional Trustee on a form provided by the Administrators, and selecting
the Person who agrees to the lowest expense and charges (the “Successor
Institutional Trustee”).  If the
instrument of acceptance by the Successor Institutional Trustee required by
this Section 4.3 shall not have been delivered to the Institutional
Trustee within 60 days after the giving of such notice of resignation or
delivery of the instrument of removal, the Institutional Trustee may petition,
at the expense of the Trust, any Federal, state or District of Columbia court
of competent jurisdiction for the appointment of a Successor Institutional
Trustee.  Such court may thereupon,
after prescribing such notice, if any, as it may deem proper, appoint a
Successor Institutional Trustee.  The
Institutional Trustee shall have no liability for the selection of such
successor pursuant to this Section 4.3.

 

The Institutional Trustee
may be removed by the act of the Holders of a Majority in liquidation amount of
the Capital Securities, delivered to the Institutional Trustee (in its
individual capacity and on behalf of the Trust) if an Event of Default shall
have occurred and be continuing.  If the
Institutional Trustee shall be so removed, the Holders of Capital Securities,
by act of the Holders of a Majority in liquidation amount of the Capital
Securities then outstanding delivered to the Institutional Trustee, shall
promptly appoint a Successor Institutional Trustee, and such Successor
Institutional Trustee shall comply with the applicable requirements of this
Section 4.3.  If no Successor
Institutional Trustee shall have been so appointed by the Holders of a Majority
in liquidation amount of the Capital Securities and accepted appointment in the
manner required by this Section 4.3, within 30 days after delivery of an
instrument of removal, any Holder who has been a Holder of the Securities for
at least 6 months may, on behalf of himself and all others similarly situated,
petition any Federal, state or District of Columbia court of competent
jurisdiction for the appointment of the Successor Institutional Trustee.  Such court may thereupon, after prescribing
such notice, if any, as it may deem proper, appoint a Successor Institutional
Trustee.

 

The Institutional Trustee
shall give notice of its resignation and removal and each appointment of a
Successor Institutional Trustee to all Holders in the manner provided in
Section 13.1(d) and shall give notice to the Sponsor.  Each notice shall include the name of the
Successor Institutional Trustee and the address of its Corporate Trust Office.

 

(b)                                 In
case of the appointment hereunder of a Successor Institutional Trustee, the
retiring Institutional Trustee and the Successor Institutional Trustee shall
execute and deliver an amendment

 

20

 

hereto wherein the Successor Institutional Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be necessary
or desirable to transfer and confirm to, and to vest in, the Successor
Institutional Trustee all the rights, powers, trusts and duties of the retiring
Institutional Trustee with respect to the Securities and the Trust and (ii)
shall add to or change any of the provisions of this Declaration as shall be
necessary to provide for or facilitate the administration of the Trust by more
than one Institutional Trustee, it being understood that nothing herein or in
such amendment shall constitute such Institutional Trustees co-trustees and
upon the execution and delivery of such amendment the resignation or removal of
the retiring Institutional Trustee shall become effective to the extent
provided therein and each Successor Institutional Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Institutional Trustee; but, on request of the
Trust or any Successor Institutional Trustee such retiring Institutional
Trustee shall duly assign, transfer and deliver to such Successor Institutional
Trustee all Trust Property, all proceeds thereof and money held by such
retiring Institutional Trustee hereunder with respect to the Securities and the
Trust.

 

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

 

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

 

Section 4.4.                                Institutional
Trustee Vacancies.  If the
Institutional Trustee ceases to hold office for any reason a vacancy shall
occur.  A resolution certifying the
existence of such vacancy by the Institutional Trustee shall be conclusive
evidence of the existence of such vacancy. 
The vacancy shall be filled with a trustee appointed in accordance with
Section 4.3.

 

Section 4.5.                                Effect
of Vacancies.  The death,
resignation, retirement, removal, bankruptcy, dissolution, liquidation,
incompetence or incapacity to perform the duties of the Institutional Trustee
shall not operate to dissolve, terminate or annul the Trust or terminate this
Declaration.

 

Section 4.6.                                Meetings
of the Institutional Trustee and the Administrators.  Meetings of the Administrators shall be
held from time to time upon the call of an Administrator.  Regular meetings of the Administrators may
be held in person in the United States or by telephone, at a place (if
applicable) and time fixed by resolution of the Administrators.  Notice of any in-person meetings of the
Institutional Trustee with the Administrators or meetings of the Administrators
shall be hand delivered or otherwise delivered in writing (including by
facsimile, with a hard copy by overnight courier) not less than 48 hours before
such meeting.  Notice of any telephonic
meetings of the Institutional Trustee with the Administrators or meetings of
the Administrators or any committee thereof shall be hand delivered or
otherwise delivered in writing (including by facsimile, with a hard copy by
overnight courier) not less than 24 hours before a meeting.  Notices shall contain a brief statement of
the time, place and anticipated purposes of the meeting.  The presence (whether in person or by
telephone) of the Institutional Trustee or an Administrator, as the case may
be, at a meeting shall constitute a waiver of notice of such meeting except
where the Institutional Trustee or an Administrator, as the case may be,
attends a meeting for the express purpose of objecting to the transaction of
any activity on the grounds that the meeting has not been lawfully called or
convened.  Unless provided otherwise in
this Declaration, any action of the Institutional Trustee or the
Administrators, as the case may be, may be taken at a meeting by vote of the
Institutional Trustee or a majority vote of the Administrators present (whether
in person or by telephone) and eligible to vote with respect to such matter,
provided that a Quorum is present, or without a meeting by the unanimous
written consent of the Institutional Trustee or the Administrators.  Meetings of the 

 

21

 

Institutional Trustee and the Administrators together shall be held
from time to time upon the call of the Institutional Trustee or an
Administrator.

 

Section 4.7.                                Delegation
of Power.

 

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

 

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

 

Section 4.8.                                Conversion,
Consolidation or Succession to Business. 
Any Person into which the Institutional Trustee may be merged or
converted or with which it may be consolidated, or any Person resulting from
any merger, conversion or consolidation to which the Institutional Trustee
shall be a party, or any Person succeeding to all or substantially all the
corporate trust business of the Institutional Trustee shall be the successor of
the Institutional Trustee hereunder, provided such Person shall be otherwise
qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of any of the parties hereto.

 

ARTICLE V

 

DISTRIBUTIONS

 

Section 5.1.                                Distributions.  Holders shall receive Distributions in
accordance with the applicable terms of the relevant Holder’s Securities.
Distributions shall be made on the Capital Securities and the Common Securities
in accordance with the preferences set forth in their respective terms.  If and to the extent that the Debenture
Issuer makes a payment of Interest or any principal on the Debentures held by
the Institutional Trustee, the Institutional Trustee shall and is directed, to
the extent funds are available for that purpose, to make a distribution (a “Distribution”)
of such amounts to Holders.

 

ARTICLE VI

 

ISSUANCE OF SECURITIES

 

Section 6.1.                                General
Provisions Regarding Securities.

 

(a)                                  The
Administrators shall, on behalf of the Trust, issue one series of capital securities
substantially in the form of Exhibit A-1 representing undivided beneficial
interests in the assets of the Trust having such terms as are set forth in
Annex I and one series of common securities representing undivided beneficial
interests in the assets of the Trust having such terms as are set forth in
Annex I.  The Trust shall issue no
securities or other interests in the assets of the Trust other than the Capital
Securities and the Common Securities. 
The Capital Securities rank pari passu to, and payment thereon shall
be made Pro Rata with, the Common Securities except that, where an Event of
Default has occurred and is continuing, the rights of Holders of the Common
Securities to payment in respect of Distributions and payments upon
liquidation, redemption and otherwise are subordinated to the rights to payment
of the Holders of the Capital Securities as set forth in Annex I.

 

22

 

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

 

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

 

(d)                                 Upon
issuance of the Securities as provided in this Declaration, the Securities so
issued shall be deemed to be validly issued, fully paid and, except as provided
in Section 9.1(b) with respect to the Common Securities, non-assessable.

 

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

 

Section 6.2.                                Paying
Agent, Transfer Agent and Registrar. 
The Trust shall maintain in Hartford, Connecticut, an office or
agency where the Capital Securities may be presented for payment (“Paying
Agent”), and an office or agency where Securities may be presented for
registration of transfer or exchange (the “Transfer Agent”).  The Trust shall keep or cause to be kept at
such office or agency a register for the purpose of registering Securities,
transfers and exchanges of Securities, such register to be held by a registrar
(the “Registrar”).  The
Administrators may appoint the Paying Agent, the Registrar and the Transfer
Agent and may appoint one or more additional Paying Agents or one or more
co-Registrars, or one or more co-Transfer Agents in such other locations as it
shall determine.  The term “Paying
Agent” includes any additional paying agent, the term “Registrar”
includes any additional registrar or co-Registrar and the term “Transfer
Agent” includes any additional transfer agent.  The Administrators may change any Paying Agent, Transfer Agent or
Registrar at any time without prior notice to any Holder.  The Administrators shall notify the
Institutional Trustee of the name and address of any Paying Agent, Transfer
Agent and Registrar not a party to this Declaration.  The Administrators hereby initially appoint the Institutional
Trustee to act as Paying Agent, Transfer Agent and Registrar for the Capital
Securities and the Common Securities. 
The Institutional Trustee or any of its Affiliates in the United States
may act as Paying Agent, Transfer Agent or Registrar.

 

Section 6.3.                                Form
and Dating.  The Capital
Securities and the Institutional Trustee’s certificate of authentication
thereon shall be substantially in the form of Exhibit A-1, and the Common
Securities shall be substantially in the form of Exhibit A-2, each of which is
hereby incorporated in and expressly made a part of this Declaration.  Certificates may be typed, printed,
lithographed or engraved or may be produced in any other manner as is
reasonably acceptable to the Administrators, as conclusively evidenced by their
execution thereof.  The Securities may
have letters, numbers, notations or other marks of identification or
designation and such legends or endorsements required by law, stock exchange
rule, agreements to which the Trust is subject if any, or usage (provided that
any such notation, legend or

 

23

 

endorsement is in a form acceptable to the Sponsor).  The Trust at the direction of the Sponsor
shall furnish any such legend not contained in Exhibit A-1 to the Institutional
Trustee in writing.  Each Capital
Security shall be dated on or before the date of its authentication.  The terms and provisions of the Securities
set forth in Annex I and the forms of Securities set forth in Exhibits A-1 and
A-2 are part of the terms of this Declaration and to the extent applicable, the
Institutional Trustee, the Administrators and the Sponsor, by their execution
and delivery of this Declaration, expressly agree to such terms and provisions
and to be bound thereby.  Capital
Securities will be issued only in blocks having a stated liquidation amount of
not less than $100,000.00 and any multiple of $1,000.00 in excess thereof.

 

The Capital Securities
are being offered and sold by the Trust pursuant to the Placement Agreement in
definitive, registered form without coupons and with the Restricted Securities
Legend.

 

Section 6.4.                                Mutilated,
Destroyed, Lost or Stolen Certificates.

 

If:

 

(a)                                  any
mutilated Certificates should be surrendered to the Registrar, or if the
Registrar shall receive evidence to its satisfaction of the destruction, loss
or theft of any Certificate; and

 

(b)                                 there
shall be delivered to the Registrar, the Administrators and the Institutional
Trustee such security or indemnity as may be required by them to keep each of
them harmless;

 

then, in the absence of
notice that such Certificate shall have been acquired by a protected purchaser,
an Administrator on behalf of the Trust shall execute (and in the case of a
Capital Security Certificate, the Institutional Trustee shall authenticate) and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like denomination.  In connection with the issuance of any new
Certificate under this Section 6.4, the Registrar or the Administrators
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith.  Any duplicate Certificate issued pursuant to
this Section shall constitute conclusive evidence of an ownership interest
in the relevant Securities, as if originally issued, whether or not the lost,
stolen or destroyed Certificate shall be found at any time.

 

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

 

Section 6.6.                                Cancellation.  The Administrators at any time may
deliver Securities to the Institutional Trustee for cancellation.  The Registrar shall forward to the
Institutional Trustee any Securities surrendered to it for registration of
transfer, redemption or payment.  The
Institutional Trustee shall promptly cancel all Securities surrendered for
registration of transfer, payment, replacement or cancellation and shall
dispose of such canceled Securities as the Administrators direct.  The Administrators may not issue new
Securities to replace Securities that have been paid or that have been
delivered to the Institutional Trustee for cancellation.

 

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

 

(a)                                  The
legal title to the Trust Property is vested exclusively in the Institutional
Trustee (in its capacity as such) in accordance with Section 2.5, and the
Holders shall not have any right or title therein other than the undivided
beneficial interest in the assets of the Trust conferred by their Securities

 

24

 

and they shall have no right to call for any partition or division of
property, profits or rights of the Trust except as described below.  The Securities shall be personal property
giving only the rights specifically set forth therein and in this
Declaration.  The Securities shall have
no preemptive or similar rights.

 

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

 

At any time after a
declaration of acceleration with respect to the Debentures has been made and
before a judgment or decree for payment of the money due has been obtained by
the Debenture Trustee as provided in the Indenture, if the Institutional
Trustee, subject to the provisions hereof, fails to annul any such declaration
and waive such default, the Holders of a Majority in liquidation amount of the
Capital Securities, by written notice to the Institutional Trustee, the Sponsor
and the Debenture Trustee, may rescind and annul such declaration and its
consequences if:

 

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

 

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

 

(B)        any
accrued Additional Interest on all of the Debentures,

 

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

 

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

 

(ii)                                  all
Events of Default with respect to the Debentures, other than the non-payment of
the principal of the Debentures that has become due solely by such
acceleration, have been cured or waived as provided in Section 5.7 of the
Indenture.

 

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

 

Upon receipt by the
Institutional Trustee of written notice declaring such an acceleration, or
rescission and annulment thereof, by Holders of any part of the Capital
Securities, a record date shall be established for determining Holders of
outstanding Capital Securities entitled to join in such notice, which record
date shall be at the close of business on the day the Institutional Trustee
receives such notice.  The Holders on
such record date, or their duly designated proxies, and only such Persons,
shall be entitled to

 

25

 

join in such notice, whether or not such Holders remain Holders after
such record date; provided, that unless such declaration of
acceleration, or rescission and annulment, as the case may be, shall have
become effective by virtue of the requisite percentage having joined in such
notice prior to the day that is 90 days after such record date, such notice of
declaration of acceleration, or rescission and annulment, as the case may be,
shall automatically and without further action by any Holder be canceled and of
no further effect.  Nothing in this
paragraph shall prevent a Holder, or a proxy of a Holder, from giving, after
expiration of such 90-day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is
identical to a written notice that has been canceled pursuant to the proviso to
the preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section 6.7.

 

(c)                                  Except
as otherwise provided in paragraphs (a) and (b) of this Section 6.7, the
Holders of at least a Majority in liquidation amount of the Capital Securities
may, on behalf of the Holders of all the Capital Securities, waive any past
default or Event of Default and its consequences.  Upon such waiver, any such default or Event of Default shall
cease to exist, and any default or Event of Default arising therefrom shall be
deemed to have been cured, for every purpose of this Declaration, but no such
waiver shall extend to any subsequent or other default or Event of Default or
impair any right consequent thereon.

 

ARTICLE VII

 

DISSOLUTION AND TERMINATION OF TRUST

 

Section 7.1.                                Dissolution
and Termination of Trust.

 

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

 

(i)                                     unless
earlier dissolved, on September 17, 2038, the expiration of the term of
the Trust;

 

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

 

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

 

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

 

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

 

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

 

(vii)                           before
the issuance of any Securities, with the consent of the Institutional Trustee
and the Sponsor.

 

26

 

(b)                                 As
soon as is practicable after the occurrence of an event referred to in
Section 7.1(a), and after satisfaction of liabilities to creditors of the
Trust as required by applicable law, including of the Statutory Trust Act, and
subject to the terms set forth in Annex I, the Institutional Trustee shall
terminate the Trust by filing a certificate of cancellation with the Secretary
of State of the State of Connecticut.

 

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

 

ARTICLE VIII

 

TRANSFER OF INTERESTS

 

Section 8.1.                                General.

 

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

 

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

 

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

 

(d)                                 The
Registrar shall provide for the registration of Securities and of transfers of
Securities, which will be effected without charge but only upon payment (with
such indemnity as the Registrar may require) in respect of any tax or other
governmental charges that may be imposed in relation to it.  Upon surrender for registration of transfer
of any Securities, the Registrar shall cause one or more new Securities of the
same tenor to be issued in the name of the designated transferee or
transferees.  Every Security surrendered
for registration of transfer shall be accompanied by a written instrument of
transfer in form satisfactory to the Registrar duly executed by the Holder or
such Holder’s attorney duly authorized in writing.  Each Security surrendered for registration of transfer shall be
canceled by the Institutional Trustee pursuant to Section 6.6.  A transferee of a Security shall be entitled
to the rights and subject to the obligations of a Holder hereunder upon the
receipt by such transferee of a Security. 
By acceptance of a Security, each transferee shall be deemed to have
agreed to be bound by this Declaration.

 

(e)                                  The
Trust shall not be required (i) to issue, register the transfer of, or exchange
any Securities during a period beginning at the opening of business 15 days
before the day of any selection of Securities for redemption and ending at the
close of business on the earliest date on which the relevant notice of
redemption is deemed to have been given to all Holders of the Securities to be
redeemed, or (ii) to register the transfer or exchange of any Security so
selected for redemption in whole or in part, except the unredeemed portion of
any Security being redeemed in part.

 

27

 

Section 8.2.                                Transfer
Procedures and Restrictions.

 

(a)                                  The
Capital Securities shall bear the Restricted Securities Legend, which shall not
be removed unless there is delivered to the Trust such satisfactory evidence,
which may include an opinion of counsel satisfactory to the Trustee, as may be
reasonably required by the Trust, that neither the legend nor the restrictions
on transfer set forth therein are required to ensure that transfers thereof
comply with the provisions of the Securities Act.  Upon provision of such satisfactory evidence, the Institutional
Trustee, at the written direction of the Trust, shall authenticate and deliver
Capital Securities that do not bear the legend.

 

(b)                                 Except
as permitted by Section 8.2(a), each Capital Security shall bear a legend
(the “Restricted Securities Legend”) in substantially the following form
and a Capital Security shall not be transferred except in compliance with such
legend, unless otherwise determined by the Sponsor, upon the advice of counsel
expert in securities law, in accordance with applicable law:

 

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

 

28

 

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

 

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

 

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

 

(c)                                  To
permit registrations of transfers and exchanges, the Trust shall execute and
the Institutional Trustee shall authenticate Capital Securities at the
Registrar’s request.

 

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

 

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

 

Section 8.3.                                Deemed
Security Holders.  The Trust, the
Administrators, the Institutional Trustee, the Paying Agent, the Transfer Agent
or the Registrar may treat the Person in whose name any

 

29

 

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

 

ARTICLE IX

 

LIMITATION OF LIABILITY OF

HOLDERS OF SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS

 

Section 9.1.                                Liability.

 

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

 

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

 

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

 

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

 

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

 

Section 9.2.                                Exculpation.

 

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

 

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

 

30

 

Section 9.3.                                Fiduciary
Duty.

 

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

 

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

 

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

 

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

 

Section 9.4.                                Indemnification.

 

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

 

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

 

31

 

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

 

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

 

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

 

(f)                                    The
Institutional Trustee, at the sole cost and expense of the Sponsor, retains the
right to representation by counsel of its own choosing in any action, suit or
any other proceeding for which it is indemnified under paragraphs (a) and (b)
of this Section 9.4, without affecting its right to indemnification
hereunder or waiving any rights afforded to it under this Declaration or
applicable law.

 

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

 

32

 

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

 

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

 

(j)                                     The
indemnification and advancement of expenses provided by, or granted pursuant
to, this Section 9.4 shall, unless otherwise provided when authorized or
ratified, (i) continue as to a Person who has ceased to be an Indemnified
Person and shall inure to the benefit of the heirs, executors and
administrators of such a Person; and (ii) survive the termination or expiration
of this Declaration or the earlier removal or resignation of an Indemnified
Person.

 

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

 

Section 9.6.                                Compensation;
Fee.  The Sponsor agrees:

 

(a)                                  to
pay to the Institutional Trustee from time to time such compensation for all
services rendered by it hereunder as the parties 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); and

 

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

 

The provisions of this
Section 9.6 shall survive the dissolution of the Trust and the termination
of this Declaration and the removal or resignation of the Institutional
Trustee.

 

No Institutional Trustee
may claim any lien or charge on any property of the Trust as a result of any
amount due pursuant to this Section 9.6.

 

33

 

ARTICLE X

 

ACCOUNTING

 

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

 

Section 10.2.                         Certain
Accounting Matters.  

 

(a)                                  At
all times during the existence of the Trust, the Administrators shall keep, or
cause to be kept at the principal office of the Trust in the United States, as
defined for purposes of Treasury Regulations section 301.7701-7, full
books of account, records and supporting documents, which shall reflect in
reasonable detail each transaction of the Trust.  The books of account shall be maintained, at the Sponsor’s
expense, in accordance with generally accepted accounting principles, consistently
applied.  The books of account and the
records of the Trust shall be examined by and reported upon (either separately
or as part of the Sponsor’s regularly prepared consolidated financial report)
as of the end of each Fiscal Year of the Trust by a firm of independent
certified public accountants selected by the Administrators.

 

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

 

(c)                                  The
Administrators, at the Sponsor’s expense, shall cause to be duly prepared at
the principal office of the Sponsor in the United States, as ‘United States’ is
defined in Section 7701(a)(9) of the Code (or at the principal office of
the Trust if the Sponsor has no such principal office in the United States),
and filed an annual United States federal income tax return on a Form 1041 or
such other form required by United States federal income tax law, and any other
annual income tax returns required to be filed by the Administrators on behalf
of the Trust with any state or local taxing authority.

 

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

 

Section 10.4.                         Withholding.  The Institutional Trustee or any Paying
Agent and the Administrators shall comply with all withholding requirements
under United States federal, state and local law.  The Institutional Trustee or any Paying Agent shall request, and
each Holder shall provide to the Institutional Trustee or any Paying Agent,
such forms or certificates as are necessary to establish an exemption from
withholding with respect to the Holder, and any representations and forms as
shall reasonably be requested by the Institutional Trustee or any Paying Agent
to assist it in determining the extent of, and in fulfilling, its withholding
obligations.  The Administrators shall file
required forms with applicable jurisdictions and, unless an exemption from
withholding is properly established by a Holder, shall remit amounts withheld
with respect to the Holder to applicable jurisdictions.  To the extent that the Institutional Trustee
or any Paying Agent is required to withhold and pay over any amounts to any
authority with respect to distributions or allocations to any Holder, the
amount withheld shall be deemed to be a Distribution in the amount of the
withholding to the Holder.  In the event
of any claimed

 

34

 

overwithholding, Holders shall be limited to an action against the
applicable jurisdiction.  If the amount
required to be withheld was not withheld from actual Distributions made, the
Institutional Trustee or any Paying Agent may reduce subsequent Distributions
by the amount of such withholding.

 

ARTICLE XI

 

AMENDMENTS AND MEETINGS

 

Section 11.1.                         Amendments.

 

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

 

(b)                                 Notwithstanding
any other provision of this Article XI, an amendment may be made, and any
such purported amendment shall be valid and effective only if:

 

(i)                                     the
Institutional Trustee shall have first received

 

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

 

(B)        an
opinion of counsel (who may be counsel to the Sponsor or the Trust) that such
amendment is permitted by, and conforms to, the terms of this Declaration
(including the terms of the Securities); and

 

(ii)                                  the
result of such amendment would not be to

 

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

 

(B)        cause
the Trust to be deemed to be an Investment Company required to be registered
under the Investment Company Act.

 

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

 

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

 

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

 

(f)                                    Article III
shall not be amended without the consent of the Holders of a Majority in liquidation
amount of the Common Securities.

 

35

 

(g)                                 The
rights of the Holders of the Capital Securities under Article IV to
appoint and remove the Institutional Trustee shall not be amended without the
consent of the Holders of a Majority in liquidation amount of the Capital
Securities.

 

(h)                                 This
Declaration may be amended by the Institutional Trustee and the Holders of a
Majority in liquidation amount of the Common Securities without the consent of
the Holders of the Capital Securities to:

 

(i)                                     cure
any ambiguity;

 

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

 

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

 

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

 

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

 

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

 

(a)                                  Meetings
of the Holders of any class of Securities may be called at any time by the
Administrators (or as provided in the terms of the Securities) to consider and
act on any matter on which Holders of such class of Securities are entitled to
act under the terms of this Declaration or the terms of the Securities.  The Administrators shall call a meeting of
the Holders of such class if directed to do so by the Holders of at least 10%
in liquidation amount of such class of Securities.  Such direction shall be given by delivering to the Administrators
one or more calls in a writing stating that the signing Holders of the
Securities wish to call a meeting and indicating the general or specific
purpose for which the meeting is to be called. 
Any Holders of the Securities calling a meeting shall specify in writing
the Certificates held by the Holders of the Securities exercising the right to
call a meeting and only those Securities represented by such Certificates shall
be counted for purposes of determining whether the required percentage set
forth in the second sentence of this paragraph has been met.

 

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

 

(i)                                     notice
of any such meeting shall be given to all the Holders of the Securities having
a right to vote thereat at least 7 days and not more than 60 days before the
date of such meeting.  Whenever a vote,
consent or approval of the Holders of the Securities is permitted or required
under this Declaration, such vote, consent or approval may be given at a
meeting of the Holders of the Securities. 
Any action that may be taken at a meeting of the Holders of the
Securities may be taken without a meeting if a consent in writing setting forth
the action so taken is signed by the Holders of the Securities owning not less
than the minimum amount of Securities

 

36

 

in liquidation amount
that would be necessary to authorize or take such action at a meeting at which
all Holders of the Securities having a right to vote thereon were present and
voting.  Prompt notice of the taking of
action without a meeting shall be given to the Holders of the Securities entitled
to vote who have not consented in writing. 
The Administrators may specify that any written ballot submitted to the
Holders of the Securities for the purpose of taking any action without a
meeting shall be returned to the Trust within the time specified by the
Administrators;

 

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

 

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

 

ARTICLE XII

 

REPRESENTATIONS OF INSTITUTIONAL
TRUSTEE

 

Section 12.1.                         Representations
and Warranties of Institutional Trustee. 
The initial Institutional Trustee represents and warrants to the
Trust and to the Sponsor at the date of this Declaration, and each Successor
Institutional Trustee represents and warrants to the Trust and the Sponsor at
the time of the Successor Institutional Trustee’s acceptance of its appointment
as Institutional Trustee, that:

 

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

 

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

 

37

 

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

 

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

 

ARTICLE XIII

 

MISCELLANEOUS

 

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

 

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

 

First Community/CA
Statutory Trust V

c/o First Community
Bancorp

275 North Brea Boulevard

Brea, California  92821

Attention:  Lynn M. Hopkins

Telecopy:  714-674-5381

 

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

 

U.S. Bank National
Association

225 Asylum Street, Goodwin
Square

Hartford,
Connecticut  06103

Attention:  Vice President, Corporate Trust Services
Division

Telecopy:  860-241-6889

 

With a
copy to:

 

U.S.
Bank National Association

1
Federal Street – 3rd Floor

Boston,
Massachusetts  02110

Attention:  Paul D. Allen, Corporate Trust Services
Division

Telecopy:  617-603-6665

 

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

 

First Community Bancorp

275 North Brea Boulevard

Brea, California  92821

Attention:  Lynn M. Hopkins

Telecopy:  714-674-5381

 

38

 

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

 

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

 

Section 13.2.                         Governing
Law.  This Declaration and the
rights of the parties hereunder shall be governed by and interpreted in
accordance with the law of the State of Connecticut and all rights and remedies
shall be governed by such laws without regard to the principles of conflict of
laws of the State of Connecticut or any other jurisdiction that would call for
the application of the law of any jurisdiction other than the State of
Connecticut; provided, however, that there shall not be
applicable to the Trust, the Institutional Trustee or this Declaration any
provision of the laws (statutory or common) of the State of Connecticut
pertaining to trusts that relate to or regulate, in a manner inconsistent with
the terms hereof (a) the filing with any court or governmental body or agency
of trustee accounts or schedules of trustee fees and charges, (b) affirmative
requirements to post bonds for trustees, officers, agents or employees of a
trust, (c) the necessity for obtaining court or other governmental approval
concerning the acquisition, holding or disposition of real or personal
property, (d) fees or other sums payable to trustees, officers, agents or
employees of a trust, (e) the allocation of receipts and expenditures to income
or principal, or (f) restrictions or limitations on the permissible nature, amount
or concentration of trust investments or requirements relating to the titling,
storage or other manner of holding or investing trust assets.

 

Section 13.3.                         Intention
of the Parties.  It is the
intention of the parties hereto that the Trust be classified for United States
federal income tax purposes as a grantor trust. The provisions of this
Declaration shall be interpreted to further this intention of the parties.

 

Section 13.4.                         Headings.  Headings contained in this Declaration
are inserted for convenience of reference only and do not affect the
interpretation of this Declaration or any provision hereof.

 

Section 13.5.                         Successors
and Assigns.  Whenever in this
Declaration any of the parties hereto is named or referred to, the successors
and assigns of such party shall be deemed to be included, and all covenants and
agreements in this Declaration by the Sponsor and the Institutional Trustee
shall bind and inure to the benefit of their respective successors and assigns,
whether or not so expressed.

 

Section 13.6.                         Partial
Enforceability.  If any
provision of this Declaration, or the application of such provision to any
Person or circumstance, shall be held invalid, the remainder of this
Declaration, or the application of such provision to persons or circumstances
other than those to which it is held invalid, shall not be affected thereby.

 

Section 13.7.                         Counterparts.  This Declaration may contain more than
one counterpart of the signature page and this Declaration may be executed by
the affixing of the signature of each of the Institutional Trustee and
Administrators to any of such counterpart signature pages.  All of such counterpart signature pages
shall be read as though one, and they shall have the same force and effect as
though all of the signers had signed a single signature page.

 

Signatures appear on the following
page

 

39

 

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

 

	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION,

  
	
   

  	
  as Institutional
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By.

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST COMMUNITY
  BANCORP, as Sponsor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By.

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST COMMUNITY/CA
  STATUTORY TRUST V

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By.

  	
   

  	
   

  
	
   

  	
   

  	
  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By.

  	
   

  	
   

  
	
   

  	
   

  	
  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By.

  	
   

  	
   

  
	
   

  	
   

  	
  Administrator

  

 

40

 

ANNEX I

 

TERMS OF
SECURITIES

 

Pursuant to
Section 6.1 of the Amended and Restated Declaration of Trust, dated as of
August 15, 2003 (as amended from time to time, the “Declaration”), the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Capital Securities and the Common Securities are set out
below (each capitalized term used but not defined herein has the meaning set
forth in the Declaration):

 

1.                                       Designation
and Number.

 

(a)                                  10,000
Floating Rate Capital Securities of First Community/CA Statutory Trust V (the
“Trust”), with an aggregate stated liquidation amount with respect to the
assets of the Trust of ten million dollars ($10,000,000.00) and a stated
liquidation amount with respect to the assets of the Trust of $1,000.00 per
Capital Security, are hereby designated for the purposes of identification only
as the “Capital Securities”.  The
Capital Security Certificates evidencing the Capital Securities shall be
substantially in the form of Exhibit A-1 to the Declaration, with such changes
and additions thereto or deletions therefrom as may be required by ordinary
usage, custom or practice.

 

(b)                                 310
Floating Rate Common Securities of the Trust (the “Common Securities”)
will be evidenced by Common Security Certificates substantially in the form of
Exhibit A-2 to the Declaration, with such changes and additions thereto or
deletions therefrom as may be required by ordinary usage, custom or practice.

 

2.                                       Distributions.

 

(a)                                  Distributions
will be payable on each Security for the period beginning on (and including)
the date of original issuance and ending on (but excluding) December 17,
2003 at a rate per annum of 4.23% and shall bear interest for each successive
period beginning on (and including) December 17, 2003, and each succeeding
Distribution Payment Date, and ending on (but excluding) the next succeeding
Distribution Payment Date (each, a “Distribution Period”) at a rate per
annum equal to the 3-Month LIBOR, determined as described below, plus 3.10%
(the “Coupon Rate”); provided, however, that prior to
September 17, 2008, the Coupon Rate shall not exceed 11.75%, applied to
the stated liquidation amount thereof, such rate being the rate of interest
payable on the Debentures to be held by the Institutional Trustee.  Distributions in arrears will bear interest
thereon compounded quarterly at the applicable Distribution Rate (to the extent
permitted by law).  Distributions, as
used herein, include cash distributions and any such compounded distributions
unless otherwise noted.  A Distribution
is payable only to the extent that payments are made in respect of the
Debentures held by the Institutional Trustee and to the extent the
Institutional Trustee has funds available therefor.  The amount of the Distribution payable for any Distribution
Period will be calculated by applying the Distribution Rate to the stated
liquidation amount outstanding at the commencement of the Distribution Period
on the basis of the actual number of days in the Distribution Period concerned
divided by 360.  All percentages
resulting from any calculations on the Capital Securities will be rounded, if necessary,
to the nearest one hundred-thousandth of a percentage point, with five
one-millionths of a percentage point rounded upward (e.g., 9.876545% (or
..09876545) being rounded to 9.87655% (or .0987655), and all dollar amounts used
in or resulting from such calculation will be rounded to the nearest cent (with
one-half cent being rounded upward)).

 

(b)                                 Distributions
on the Securities will be cumulative, will accrue from the date of original
issuance, and will be payable, subject to extension of distribution payment
periods as described herein, quarterly in arrears on March 17,
June 17, September 17 and December 17 of each year, or if such

 

I-1

 

day is not a Business Day, then the next succeeding Business Day,
commencing on December 17, 2003 (each a “Distribution Payment Date”)
when, as and if available for payment. 
The Debenture Issuer has the right under the Indenture to defer payments
of interest on the Debentures, so long as no Indenture Event of Default has
occurred and is continuing, by deferring the payment of interest on the
Debentures for up to 20 consecutive quarterly periods (each an “Extension
Period”) at any time and from time to time, subject to the conditions
described below, during which Extension Period no interest shall be due and
payable.  During any Extension Period,
interest will continue to accrue on the Debentures, and interest on such
accrued interest will accrue at an annual rate equal to the Distribution Rate
in effect for each such Extension Period, compounded quarterly from the date
such interest would have been payable were it not for the Extension Period, to
the extent permitted by law (such interest referred to herein as “Additional
Interest”).  No Extension Period may
end on a date other than a Distribution Payment Date.  At the end of any such Extension Period, the Debenture Issuer
shall pay all interest then accrued and unpaid on the Debentures (together with
Additional Interest thereon); provided, however, that no
Extension Period may extend beyond the Maturity Date and provided  further,
however, that during any such Extension Period, the Debenture Issuer and
its Affiliates 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 Debenture Issuer’s or its Affiliates’ capital stock (other than
payments of dividends or distributions to the Debenture Issuer) or make any
guarantee payments with respect to the foregoing, or (ii) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem
any debt securities of the Debenture Issuer or any Affiliate that rank pari passu
in all respects with or junior in interest to the Debentures (other than, with
respect to clauses (i) and (ii) above, (a) repurchases, redemptions or other
acquisitions of shares of capital stock of the Debenture Issuer in connection
with any employment contract, benefit plan or other similar arrangement with or
for the benefit of one or more employees, officers, directors or consultants,
in connection with a dividend reinvestment or stockholder stock purchase plan
or in connection with the issuance of capital stock of the Debenture Issuer (or
securities convertible into or exercisable for such capital stock) as
consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of any exchange or conversion of
any class or series of the Debenture Issuer’s capital stock (or any capital
stock of a subsidiary of the Debenture Issuer) for any class or series of the
Debenture Issuer’s capital stock or of any class or series of the Debenture
Issuer’s indebtedness for any class or series of the Debenture Issuer’s capital
stock, (c) the purchase of fractional interests in shares of the Debenture
Issuer’s capital stock pursuant to the conversion or exchange provisions of
such capital stock or the security being converted or exchanged, (d) any
declaration of a dividend in connection with any stockholders’ rights plan, or
the issuance of rights, stock or other property under any stockholders’ rights
plan, or the redemption or repurchase of rights pursuant thereto, (e) any
dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of such warrants, options or
other rights is the same stock as that on which the dividend is being paid or
ranks pari
passu with or junior to such stock and any cash payments in lieu of
fractional shares issued in connection therewith, or (f)  payments under the Capital Securities
Guarantee).  Prior to the termination of
any Extension Period, the Debenture Issuer may further extend such period,
provided that such period together with all such previous and further consecutive
extensions thereof shall not exceed 20 consecutive quarterly periods, or extend
beyond the Maturity Date.  Upon the
termination of any Extension Period and upon the payment of all accrued and
unpaid interest and Additional Interest, the Debenture Issuer may commence a
new Extension Period, subject to the foregoing requirements.  No interest or Additional Interest shall be
due and payable during an Extension Period, except at the end thereof, but each
installment of interest that would otherwise have been due and payable during
such Extension Period shall bear Additional Interest.  During any Extension Period, Distributions on the Securities
shall be deferred for a period equal to the Extension Period.  If Distributions are deferred, the
Distributions due shall be paid on the date that the related Extension Period
terminates to Holders of the Securities as they appear on the books and records
of the Trust on the record date immediately preceding such date.  Distributions on the Securities must be paid
on the dates payable (after giving effect to any Extension Period) to the
extent that the Trust has

 

I-2

 

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

 

(c)                                  Distributions
on the Securities will be payable to the Holders thereof as they appear on the
books and records of the Trust on the relevant record dates.  The relevant record dates shall be 15 days
before the relevant Distribution Payment Date. 
Distributions payable on any Securities that are not punctually paid on
any Distribution Payment Date, as a result of the Debenture Issuer having
failed to make a payment under the Debentures, as the case may be, when due
(taking into account any Extension Period), will cease to be payable to the
Person in whose name such Securities are registered on the relevant record
date, and such defaulted Distribution will instead be payable to the Person in
whose name such Securities are registered on the special record date or other
specified date determined in accordance with the Indenture.  If any date on which Distributions are
payable on the Securities is not a Business Day, then payment of the
Distribution payable on such date will be made on the next succeeding day that
is a Business Day (and without any interest or other payment in respect of any
such delay) except that, if such Business Day is 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 such payment
date.

 

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

 

3.                                       Liquidation
Distribution Upon Dissolution.  In
the event of the voluntary or involuntary liquidation, dissolution, winding-up
or termination of the Trust (each a “Liquidation”) other than in
connection with a redemption of the Debentures, the Holders of the Securities
will be entitled to receive out of the assets of the Trust available for
distribution to Holders of the Securities, after satisfaction of liabilities to
creditors of the Trust (to the extent not satisfied by the Debenture Issuer),
distributions equal to the aggregate of the stated liquidation amount of
$1,000.00 per Security plus accrued and unpaid Distributions thereon to the
date of payment (such amount being the “Liquidation Distribution”),
unless in connection with such Liquidation, the Debentures in an aggregate
stated principal amount equal to the aggregate stated liquidation amount of
such Securities, with an interest rate equal to the Distribution Rate of, and
bearing accrued and unpaid interest in an amount equal to the accrued and
unpaid Distributions on, and having the same record date as, such Securities,
after paying or making reasonable provision to pay all claims and obligations
of the Trust in accordance with the Statutory Trust Act, shall be distributed
on a Pro Rata basis to the Holders of the Securities in exchange for such
Securities.

 

The Sponsor, as the
Holder of all of the Common Securities, has the right at any time to dissolve
the Trust (including, without limitation, upon the occurrence of a Special
Event), subject to the receipt by the Debenture Issuer of prior approval from
the Board of Governors of the Federal Reserve System, or its designated
district bank, as applicable, and any successor federal agency that is
primarily responsible for regulating the activities of the Sponsor (the “Federal
Reserve”), if the Sponsor is a bank holding company, or from the Office of
Thrift Supervision and any successor federal agency that is primarily
responsible for regulating the activities of Sponsor, (the “OTS”) if the
Sponsor is a savings and loan holding company, in either case if then required
under applicable capital guidelines or policies of the Federal Reserve or OTS,
as applicable, and, after satisfaction of liabilities to creditors of the
Trust, cause the Debentures to be distributed to the Holders of the Securities
on a Pro Rata basis in accordance with the aggregate stated liquidation amount
thereof.

 

I-3

 

If a Liquidation of the
Trust occurs as described in clause (i), (ii), (iii) or (v) in
Section 7.1(a) of the Declaration, the Trust shall be liquidated by the
Institutional Trustee as expeditiously as it determines to be possible by
distributing, after satisfaction of liabilities to creditors of the Trust, to
the Holders of the Securities, the Debentures on a Pro Rata basis to the extent
not satisfied by the Debenture Issuer, unless such distribution is determined
by the Institutional Trustee not to be practical, in which event such Holders
will be entitled to receive out of the assets of the Trust available for
distribution to the Holders, after satisfaction of liabilities of creditors of
the Trust to the extent not satisfied by the Debenture Issuer, an amount equal
to the Liquidation Distribution.  An
early Liquidation of the Trust pursuant to clause (iv) of Section 7.1(a)
of the Declaration shall occur if the Institutional Trustee determines that
such Liquidation is possible by distributing, after satisfaction of liabilities
to creditors of the Trust, to the Holders of the Securities on a Pro Rata
basis, the Debentures, and such distribution occurs.

 

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

 

After the date for any
distribution of the Debentures upon dissolution of the Trust (i) the Securities
of the Trust will be deemed to be no longer outstanding, (ii) upon surrender of
a Holder’s Securities certificate, such Holder of the Securities will receive a
certificate representing the Debentures to be delivered upon such distribution,
(iii) any certificates representing the Securities still outstanding will be
deemed to represent undivided beneficial interests in such of the Debentures as
have an aggregate principal amount equal to the aggregate stated liquidation
amount with an interest rate identical to the Distribution Rate of, and bearing
accrued and unpaid interest equal to accrued and unpaid distributions on, the
Securities until such certificates are presented to the Debenture Issuer or its
agent for transfer or reissuance (and until such certificates are so
surrendered, no payments of interest or principal shall be made to Holders of
Securities in respect of any payments due and payable under the Debentures; provided,
however that such failure to pay shall not be deemed to be an Event of
Default and shall not entitle the Holder to the benefits of the Guarantee), and
(iv) all rights of Holders of Securities under the Declaration shall cease,
except the right of such Holders to receive Debentures upon surrender of
certificates representing such Securities.

 

4.                                       Redemption
and Distribution.

 

(a)                                  The
Debentures will mature on September 17, 2033.  The Debentures may be redeemed by the Debenture Issuer, in whole
or in part, at any Distribution Payment Date on or after September 17,
2008, at the Redemption Price. In addition, the Debentures may be redeemed by
the Debenture Issuer at the Special Redemption Price, in whole but not in part,
at any Distribution Payment Date, upon the occurrence and continuation of a
Special Event within 120 days following the occurrence of such Special Event at
the Special Redemption Price, upon not less than 30 nor more than 60 days’
notice to holders of such Debentures so long as such Special Event is
continuing. In each case, the right of the Debenture Issuer to redeem the
Debentures is subject to the Debenture Issuer having received prior approval
from the Federal Reserve (if the Debenture Issuer is a bank holding company) or
prior approval from the OTS (if the Debenture Issuer is a savings and loan
holding company), in each case if then required under applicable capital
guidelines or policies of the applicable federal agency.

 

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

 

(1)                                  the
rate (expressed as a percentage per annum) for U.S. dollar deposits having a
three-month maturity that appears on Telerate Page 3750 as of 11:00 a.m.
(London time) on the

 

I-4

 

related Determination
Date (as defined below).  “Telerate Page
3750” means the display designated as “Page 3750” on the Dow Jones Telerate
Service or such other page as may replace Page 3750 on that service or such
other service or services as may be nominated by the British Bankers’
Association as the information vendor for the purpose of displaying London
interbank offered rates for U.S. dollar deposits;

 

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

 

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

 

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

 

If the rate for U.S.
dollar deposits having a three-month maturity that initially appears on
Telerate Page 3750 as of 11:00 a.m. (London time) on the related Determination
Date is superseded on the Telerate Page 3750 by a corrected rate by 12:00 noon
(London time) on such Determination Date, then the corrected rate as so
substituted on the applicable page will be the applicable 3-Month LIBOR for
such Determination Date.

 

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

 

“Capital Treatment
Event” means the receipt by the Debenture Issuer and the Trust of an
opinion of counsel experienced in such matters to the effect that, as a result
of the occurrence of any amendment to, or change (including any announced
prospective change) in, the laws, rules or regulations of the United States or
any political subdivision thereof or therein, or as the result of any official
or administrative pronouncement or action or decision interpreting or applying
such laws, rules or regulations, which amendment or change is effective or
which pronouncement, action or decision is announced on or after the date of
original issuance of the Debentures, there is more than an insubstantial risk
that the Sponsor will not, within 90 days of the date of such opinion, be
entitled to treat an amount equal to the aggregate liquidation amount of the
Capital Securities as “Tier 1 Capital” (or its then equivalent) for purposes of
the capital adequacy guidelines of the Federal Reserve, as then in effect and
applicable to the Sponsor (or if the Sponsor is not a bank holding company,
such guidelines applied to the Sponsor as if the Sponsor were subject to such guidelines);
provided, however, that the inability of the Sponsor to treat all
or any portion of the liquidation amount of the Capital Securities as Tier l
Capital shall not constitute the basis for a Capital Treatment Event, if such
inability results from the Sponsor having cumulative preferred stock, minority
interests in consolidated subsidiaries, or any other class of security or
interest which the Federal Reserve or OTS, as applicable, may now or hereafter
accord Tier 1 Capital treatment in excess of the amount which may now or
hereafter qualify for treatment as Tier 1 Capital under applicable capital
adequacy guidelines; provided  further, however, that the
distribution of Debentures in connection with the Liquidation of the Trust
shall not in and of itself constitute a Capital

 

I-5

 

Treatment Event unless such Liquidation shall have occurred in
connection with a Tax Event or an Investment Company Event.

 

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

 

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

 

“Maturity Date” means
September 17, 2033.

 

“Redemption Date”
shall mean the date fixed for the redemption of Capital Securities, which shall
be any March 17, June 17, September 17 or December 17
commencing September 17, 2008.

 

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

 

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

 

“Special Redemption
Date” means a date on which a Special Event redemption occurs, which shall
be any March 17, June 17, September 17 or December 17,
commencing December 17, 2003.

 

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

 

	
  Special
  Redemption Date

  	
   

  	
  Special Redemption Price

  	
   

  
	
  December 17, 2003

  	
   

  	
  104.625

  	
  %

  
	
  March 17, 2004

  	
   

  	
  104.300

  	
  %

  
	
  June 17, 2004

  	
   

  	
  104.000

  	
  %

  
	
  September 17, 2004

  	
   

  	
  103.650

  	
  %

  
	
  December 17, 2004

  	
   

  	
  103.350

  	
  %

  
	
  March 17, 2005

  	
   

  	
  103.000

  	
  %

  
	
  June 17, 2005

  	
   

  	
  102.700

  	
  %

  
	
  September 17, 2005

  	
   

  	
  102.350

  	
  %

  
	
  December 17, 2005

  	
   

  	
  102.050

  	
  %

  
	
  March 17, 2006

  	
   

  	
  101.700

  	
  %

  
	
  June 17, 2006

  	
   

  	
  101.400

  	
  %

  
	
  September 17, 2006

  	
   

  	
  101.050

  	
  %

  
	
  December 17, 2006

  	
   

  	
  100.750

  	
  %

  
	
  March 17, 2007

  	
   

  	
  100.450

  	
  %

  
	
  June 17, 2007

  	
   

  	
  100.200

  	
  %

  
	
  September 17, 2007 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

I-6

 

plus, in each case,
accrued and unpaid Interest on such Debentures to the Special Redemption Date.

 

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

 

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

 

(c)                                  If
fewer than all the outstanding Securities are to be so redeemed, the Common
Securities and the Capital Securities will be redeemed Pro Rata and the Capital
Securities to be redeemed will be redeemed Pro Rata from each Holder of Capital
Securities.

 

I-7

 

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

 

(e)                                  Redemption
or Distribution Procedures.

 

(i)                                     Notice
of any redemption of, or notice of distribution of the Debentures in exchange
for, the Securities (a “Redemption/Distribution Notice”) will be given
by the Trust by mail to each Holder of Securities to be redeemed or exchanged
not fewer than 30 nor more than 60 days before the date fixed for redemption or
exchange thereof which, in the case of a redemption, will be the date fixed for
redemption of the Debentures. For purposes of the calculation of the date of
redemption or exchange and the dates on which notices are given pursuant to
this paragraph 4(e)(i), a Redemption/Distribution Notice shall be deemed to be
given on the day such notice is first mailed by first-class mail, postage
prepaid, to Holders of such Securities. Each Redemption/Distribution Notice
shall be addressed to the Holders of such Securities at the address of each
such Holder appearing on the books and records of the Trust. No defect in the
Redemption/Distribution Notice or in the mailing thereof with respect to any
Holder shall affect the validity of the redemption or exchange proceedings with
respect to any other Holder.

 

(ii)                                  If
the Securities are to be redeemed and the Trust gives a Redemption/
Distribution Notice, which notice may only be issued if the Debentures are
redeemed as set out in this paragraph 4 (which notice will be irrevocable),
then, provided that the Institutional Trustee has a sufficient amount of
cash in connection with the related redemption or maturity of the Debentures,
the Institutional Trustee will pay the relevant Redemption Price or Special
Redemption Price, as applicable, to the Holders of such Securities by check
mailed to the address of each such Holder appearing on the books and records of
the Trust on the Redemption Date.  If a
Redemption/Distribution Notice shall have been given and funds deposited as
required then immediately prior to the close of business on the date of such
deposit Distributions will cease to accrue on the Securities so called for
redemption and all rights of Holders of such Securities so called for
redemption will cease, except the right of the Holders of such Securities to
receive the applicable Redemption Price or Special Redemption Price specified
in paragraph 4(a), but without interest on such Redemption Price or Special
Redemption Price.  If payment of the
Redemption Price or Special Redemption Price in respect of any Securities is
improperly withheld or refused and not paid either by the Trust or by the
Debenture Issuer as guarantor pursuant to the Guarantee, Distributions on such
Securities will continue to accrue at the Distribution Rate from the original
Redemption Date to the actual date of payment, in which case the actual payment
date will be considered the date fixed for redemption for purposes of
calculating the Redemption Price or Special Redemption Price.  In the event of any redemption of the
Capital Securities issued by the Trust in part, the Trust shall not be required
to (i) issue, register the transfer of or exchange any Security during a period
beginning at the opening of business 15 days before any selection for
redemption of the Capital Securities and ending at the close of business on the
earliest date on which the relevant notice of redemption is deemed to have been
given to all Holders of the Capital Securities to be so redeemed or (ii)
register the transfer of or exchange any Capital Securities so selected for
redemption, in whole or in part, except for the unredeemed portion of any
Capital Securities being redeemed in part.

 

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

 

I-8

 

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

 

5.                                       Voting
Rights - Capital Securities.

 

(a)                                  Except
as provided under paragraphs 5(b) and 7 and as otherwise required by law and
the Declaration, the Holders of the Capital Securities will have no voting
rights. The Administrators are required to call a meeting of the Holders of the
Capital Securities if directed to do so by Holders of at least 10% in
liquidation amount of the Capital Securities.

 

(b)                                 Subject
to the requirements of obtaining a tax opinion by the Institutional Trustee in
certain circumstances set forth in the last sentence of this paragraph, the
Holders of a Majority in liquidation amount of the Capital Securities, voting
separately as a class, have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Institutional
Trustee, or exercising any trust or power conferred upon the Institutional
Trustee under the Declaration, including the right to direct the Institutional
Trustee, as holder of the Debentures, to (i) exercise the remedies available
under the Indenture as the holder of the Debentures, (ii) waive any past
default that is waivable under the Indenture, (iii) exercise any right to
rescind or annul a declaration that the principal of all the Debentures shall
be due and payable or (iv) consent on behalf of all the Holders of the Capital
Securities to any amendment, modification or termination of the Indenture or
the Debentures where such consent shall be required; provided, however,
that, where a consent or action under the Indenture would require the consent
or act of the holders of greater than a simple majority in aggregate principal
amount of Debentures (a “Super Majority”) affected thereby, the
Institutional Trustee may only give such consent or take such action at the
written direction of the Holders of at least the proportion in liquidation
amount of the Capital Securities outstanding which the relevant Super Majority
represents of the aggregate principal amount of the Debentures outstanding. If
the Institutional Trustee fails to enforce its rights under the Debentures
after the Holders of a Majority in liquidation amount of such Capital
Securities have so directed the Institutional Trustee, to the fullest extent
permitted by law, a Holder of the Capital Securities may institute a legal
proceeding directly against the Debenture Issuer to enforce the Institutional
Trustee’s rights under the Debentures without first instituting any legal
proceeding against the Institutional Trustee or any other person or entity.
Notwithstanding the foregoing, if an Event of Default has occurred and is
continuing and such event is attributable to the failure of the Debenture
Issuer to pay interest or principal on the Debentures on the date the interest
or principal is payable (or in the case of redemption, the Redemption Date or
the Special Redemption Date, as applicable), then a Holder of record of the
Capital Securities may directly institute a proceeding for enforcement of
payment, on or after the respective due dates specified in the Debentures, to
such Holder directly of the principal of or interest on the Debentures having
an aggregate principal amount equal to the aggregate liquidation amount of the
Capital Securities of such Holder. The Institutional Trustee shall notify all
Holders of the Capital Securities of any default actually known to the
Institutional Trustee with respect to the Debentures unless (x) such default
has been cured prior to the giving of such notice or (y) the Institutional
Trustee determines in good faith that the withholding of such notice is in the
interest of the Holders of such Capital Securities, except where the default
relates to the payment of principal of or interest on any of the Debentures.
Such notice shall state that such Indenture Event of Default also constitutes
an Event of Default hereunder. Except with respect to directing the time,
method and place of conducting a proceeding for a remedy, the Institutional
Trustee shall not take any of the actions described in clauses (i), (ii) or
(iii) above unless the Institutional Trustee has obtained an opinion of tax
counsel to the effect that, as a result of such action, the Trust will not be
classified as other than a grantor trust for United States federal income tax
purposes.

 

I-9

 

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

 

A waiver of an Indenture
Event of Default will constitute a waiver of the corresponding Event of Default
hereunder. Any required approval or direction of Holders of the Capital
Securities may be given at a separate meeting of Holders of the Capital
Securities convened for such purpose, at a meeting of all of the Holders of the
Securities in the Trust or pursuant to written consent. The Institutional
Trustee will cause a notice of any meeting at which Holders of the Capital
Securities are entitled to vote, or of any matter upon which action by written
consent of such Holders is to be taken, to be mailed to each Holder of record
of the Capital Securities. Each such notice will include a statement setting
forth the following information (i) the date of such meeting or the date by
which such action is to be taken, (ii) a description of any resolution proposed
for adoption at such meeting on which such Holders are entitled to vote or of
such matter upon which written consent is sought and (iii) instructions for the
delivery of proxies or consents. No vote or consent of the Holders of the
Capital Securities will be required for the Trust to redeem and cancel Capital
Securities or to distribute the Debentures in accordance with the Declaration
and the terms of the Securities.

 

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

 

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

 

6.                                       Voting
Rights - Common Securities.

 

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

 

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

 

(c)                                  Subject
to Section 6.7 of the Declaration and only after each Event of Default (if
any) with respect to the Capital Securities has been cured, waived, or
otherwise eliminated and subject to the requirements of the second to last
sentence of this paragraph, the Holders of a Majority in liquidation amount of
the Common Securities, voting separately as a class, may direct the time,
method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under the Declaration, including (i) directing the time,

 

I-10

 

method, place of conducting any proceeding for any remedy available to
the Debenture Trustee, or exercising any trust or power conferred on the
Debenture Trustee with respect to the Debentures, (ii) waiving any past default
and its consequences that is waivable under the Indenture, or (iii) exercising
any right to rescind or annul a declaration that the principal of all the
Debentures shall be due and payable; provided, however, that,
where a consent or action under the Indenture would require a Super Majority,
the Institutional Trustee may only give such consent or take such action at the
written direction of the Holders of at least the proportion in liquidation
amount of the Common Securities which the relevant Super Majority represents of
the aggregate principal amount of the Debentures outstanding. Notwithstanding
this paragraph 6(c), the Institutional Trustee shall not revoke any action
previously authorized or approved by a vote or consent of the Holders of the
Capital Securities. Other than with respect to directing the time, method and
place of conducting any proceeding for any remedy available to the
Institutional Trustee or the Debenture Trustee as set forth above, the
Institutional Trustee shall not take any action described in (i), (ii) or (iii)
above, unless the Institutional Trustee has obtained an opinion of tax counsel
to the effect that for the purposes of United States federal income tax the
Trust will not be classified as other than a grantor trust on account of such
action. If the Institutional Trustee fails to enforce its rights under the
Declaration to the fullest extent permitted by law, any Holder of the Common
Securities may institute a legal proceeding directly against any Person to enforce
the Institutional Trustee’s rights under the Declaration, without first
instituting a legal proceeding against the Institutional Trustee or any other
Person.

 

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

 

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

 

7.                                       Amendments
to Declaration and Indenture.

 

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

 

(b)                                 In
the event the consent of the Institutional Trustee as the holder of the
Debentures is required under the Indenture with respect to any amendment,
modification or termination of

 

I-11

 

the Indenture or the Debentures, the Institutional Trustee shall request
the written direction of the Holders of the Securities with respect to such
amendment, modification or termination and shall vote with respect to such
amendment, modification, or termination as directed by a Majority in
liquidation amount of the Securities voting together as a single class; provided,
however, that where a consent under the Indenture would require a Super
Majority, the Institutional Trustee may only give such consent at the direction
of the Holders of at least the proportion in liquidation amount of the
Securities which the relevant Super Majority represents of the aggregate
principal amount of the Debentures outstanding.

 

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

 

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

 

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

 

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

 

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

 

I-12

 

11.                                 No
Preemptive Rights. The Holders of the Securities shall have no preemptive
or similar rights to subscribe for any additional securities.

 

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

 

I-13

 

EXHIBIT
A-1

 

FORM OF CAPITAL SECURITY CERTIFICATE

 

[FORM OF FACE OF
SECURITY]

 

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

 

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

 

A-1-1

 

MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING
ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY
USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE,
OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS
NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

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

 

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

 

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

 

	
  Certificate Number P-1

  	
   

  	
  10,000 Capital
  Securities

  

 

August 15,
2003

 

Certificate
Evidencing Floating Rate Capital Securities

 

of

 

First Community/CA
Statutory Trust V

 

(liquidation
amount $1,000.00 per Capital Security)

 

First Community/CA
Statutory Trust V, a statutory trust created under the laws of the State of
Connecticut (the “Trust”), hereby certifies that First Tennessee Bank National
Association is the registered owner of capital securities of the Trust
representing undivided beneficial interests in the assets of the Trust, (liquidation
amount $1,000.00 per capital security) (the “Capital Securities”). Subject to
the Declaration (as defined below), the Capital Securities are transferable on
the books and records of the Trust in person or by a duly authorized attorney,
upon surrender of this Certificate duly endorsed and in proper form for
transfer. The Capital Securities represented hereby are issued pursuant to, and
the designation, rights, privileges, restrictions, preferences and other terms
and provisions of the Capital Securities shall in all respects be subject to,
the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of August 15, 2003, among Matthew P. Wagner, Lynn M. Hopkins and
Jared M. Wolff, as Administrators, U.S. Bank National Association, as
Institutional Trustee, First Community Bancorp, as Sponsor, and the holders
from time to time of undivided beneficial interests in the assets of the Trust,
including the designation of the terms of the Capital Securities as set forth
in Annex I to such amended and restated declaration as the same may be amended
from time to time (the “Declaration”). 
Capitalized terms used herein but not defined shall have the meaning
given them in the Declaration. The Holder is entitled to the benefits of the
Guarantee to the extent provided therein. The Sponsor will provide a copy of
the Declaration, the Guarantee, and the Indenture to the Holder without charge
upon written request to the Sponsor at its principal place of business.

 

A-1-2

 

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

 

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

 

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

 

Signatures appear on following page

 

A-1-3

 

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

 

	
   

  	
  FIRST COMMUNITY/CA
  STATUTORY TRUST V

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:  Administrator

  

 

CERTIFICATE OF
AUTHENTICATION

 

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

 

	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION,

  
	
   

  	
  as the Institutional
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  	
   

  

 

A-1-4

 

[FORM OF REVERSE
OF CAPITAL SECURITY]

 

Distributions payable on
each Capital Security will be payable at an annual rate equal to 4.23%
beginning on (and including) the date of original issuance and ending on (but
excluding) December 17, 2003 and at an annual rate for each successive
period beginning on (and including) December 17, 2003, and each succeeding
Distribution Payment Date, and ending on (but excluding) the next succeeding
Distribution Payment Date (each a “Distribution Period”), equal to 3-Month
LIBOR, determined as described below, plus 3.10% (the “Coupon Rate”); provided,
however, that prior to September 17, 2008, the Coupon Rate shall
not exceed 11.75%, applied to the stated liquidation amount of $1,000.00 per
Capital Security, such rate being the rate of interest payable on the
Debentures to be held by the Institutional Trustee. Distributions in arrears
will bear interest thereon compounded quarterly at the Distribution Rate (to
the extent permitted by applicable law). 
The term “Distributions” as used herein includes cash distributions and
any such compounded distributions unless otherwise noted.  A Distribution is payable only to the extent
that payments are made in respect of the Debentures held by the Institutional
Trustee and to the extent the Institutional Trustee has funds available
therefor.  As used herein,
“Determination Date” means the date that is two London Banking Days (i.e., a
business day in which dealings in deposits in U.S. dollars are transacted in
the London interbank market) preceding the commencement of the relevant
Distribution Period.  The amount of the
Distribution payable for any Distribution Period will be calculated by applying
the Distribution Rate to the stated liquidation amount outstanding at the
commencement of the Distribution Period on the basis of the actual number of
days in the Distribution Period concerned divided by 360.

 

“3-Month LIBOR” as used
herein, means the London interbank offered interest rate for three-month U.S.
dollar deposits determined by the Debenture Trustee in the following order of
priority:  (i) the rate (expressed as a
percentage per annum) for U.S. dollar deposits having a three-month maturity
that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the related
Determination Date (“Telerate Page 3750” means the display designated as “Page
3750” on the Dow Jones Telerate Service or such other page as may replace Page
3750 on that service or such other service or services as may be nominated by
the British Bankers’ Association as the information vendor for the purpose of
displaying London interbank offered rates for U.S. dollar deposits); (ii) if
such rate cannot be identified on the related Determination Date, the Debenture
Trustee will request the principal London offices of four leading banks in the
London interbank market to provide such banks’ offered quotations (expressed as
percentages per annum) to prime banks in the London interbank market for U.S.
dollar deposits having a three-month maturity as of 11:00 a.m. (London time) on
such Determination Date.  If at least
two quotations are provided, 3-Month LIBOR will be the arithmetic mean of such
quotations; (iii) if fewer than two such quotations are provided as requested
in clause (ii) above, the Debenture Trustee will request four major New York
City banks to provide such banks’ offered quotations (expressed as percentages
per annum) to leading European banks for loans in U.S. dollars as of 11:00 a.m.
(London time) on such Determination Date. 
If at least two such quotations are provided, 3-Month LIBOR will be the
arithmetic mean of such quotations; and (iv) if fewer than two such quotations
are provided as requested in clause (iii) above, 3-Month LIBOR will be a
3-Month LIBOR determined with respect to the Distribution Period immediately
preceding such current Distribution Period. 
If the rate for U.S. dollar deposits having a three-month maturity that
initially appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the
related Determination Date is superseded on the Telerate Page 3750 by a
corrected rate by 12:00 noon (London time) on such Determination Date, then the
corrected rate as so substituted on the applicable page will be the applicable
3-Month LIBOR for such Determination Date.

 

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

 

All percentages resulting
from any calculations on the Capital Securities will be rounded, if necessary,
to the nearest one hundred-thousandth of a percentage point, with five
one-millionths of a percentage point rounded upward (e.g., 9.876545% (or
..09876545) being rounded to 9.87655% (or

 

A-1-5

 

.0987655), and all dollar amounts used in or resulting from such
calculation will be rounded to the nearest cent (with one-half cent being
rounded upward)).

 

Except as otherwise
described below, Distributions on the Capital Securities will be cumulative,
will accrue from the date of original issuance and will be payable quarterly in
arrears on March 17, June 17, September 17 and December 17
of each year (or if such day is not a Business Day, then the next succeeding
Business Day), commencing on December 17, 2003.  The Debenture Issuer has the right under the Indenture to defer
payments of interest on the Debentures, so long as no Indenture Event of
Default has occurred and is continuing, by extending the interest payment
period for up to 20 consecutive quarterly periods (each an “Extension Period”)
at any time and from time to time on the Debentures, subject to the conditions
described below, during which Extension Period no interest shall be due and
payable.  During any Extension Period,
interest will continue to accrue on the Debentures, and interest on such
accrued interest will accrue at an annual rate equal to the Distribution Rate
in effect for each such Extension Period, compounded quarterly from the date
such interest would have been payable were it not for the Extension Period, to
the extent permitted by law (such interest referred to herein as “Additional
Interest”). No Extension Period may end on a date other than a Distribution
Payment Date. At the end of any such Extension Period, the Debenture Issuer
shall pay all interest then accrued and unpaid on the Debentures (together with
Additional Interest thereon); provided, however, that no
Extension Period may extend beyond the Maturity Date.  Prior to the termination of any Extension Period, the Debenture
Issuer may further extend such period, provided that such period together with
all such previous and further consecutive extensions thereof shall not exceed
20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the
termination of any Extension Period and upon the payment of all accrued and
unpaid interest and Additional Interest, the Debenture Issuer may commence a
new Extension Period, subject to the foregoing requirements.  No interest or Additional Interest shall be
due and payable during an Extension Period, except at the end thereof, but each
installment of interest that would otherwise have been due and payable during
such Extension Period shall bear Additional Interest.  During any Extension Period, Distributions on the Capital
Securities shall be deferred for a period equal to the Extension Period.  If Distributions are deferred, the
Distributions due shall be paid on the date that the related Extension Period
terminates, to Holders of the Securities as they appear on the books and
records of the Trust on the record date immediately preceding such date.
Distributions on the Securities must be paid on the dates payable (after giving
effect to any Extension Period) to the extent that the Trust has funds
available for the payment of such distributions in the Property Account of the
Trust.  The Trust’s funds available for
Distribution to the Holders of the Securities will be limited to payments
received from the Debenture Issuer.  The
payment of Distributions out of moneys held by the Trust is guaranteed by the
Guarantor pursuant to the Guarantee.

 

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

 

A-1-6

 

ASSIGNMENT

 

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

 

 

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

 

 

 

 

(Insert address and zip
code of assignee) and irrevocably appoints

 

 

 

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

 

	
  Date:

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  
					

 

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

 

Signature Guarantee:(1)

 

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

 

A-1-7

 

EXHIBIT
A-2

 

FORM OF COMMON
SECURITY CERTIFICATE

 

THIS COMMON SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, 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 SECTION 8.1 OF THE DECLARATION.

 

	
  Certificate Number C-1

  	
   

  	
  310 Common
  Securities

  

 

August 15,
2003

 

Certificate
Evidencing Floating Rate Common Securities

 

of

 

First Community/CA
Statutory Trust V

 

First Community/CA
Statutory Trust V, a statutory trust created under the laws of the State of
Connecticut (the “Trust”), hereby certifies that First Community Bancorp (the
“Holder”) is the registered owner of common securities of the Trust
representing undivided beneficial interests in the assets of the Trust (the
“Common Securities”).  The Common
Securities represented hereby are issued pursuant to, and the designation, rights,
privileges, restrictions, preferences and other terms and provisions of the
Common Securities shall in all respects be subject to, the provisions of the
Amended and Restated Declaration of Trust of the Trust dated as of
August 15, 2003, among Matthew P. Wagner, Lynn M. Hopkins and Jared M.
Wolff, as Administrators, U.S. Bank National Association, as Institutional
Trustee, First Community Bancorp, as Sponsor, and the holders from time to time
of undivided beneficial interest in the assets of the Trust including the
designation of the terms of the Common Securities as set forth in Annex I to
such amended and restated declaration, as the same may be amended from time to
time (the “Declaration”).  Capitalized
terms used herein but not defined shall have the meaning given them in the
Declaration.  The Holder is entitled to
the benefits of the Guarantee to the extent provided therein.  The Sponsor will provide a copy of the
Declaration, the Guarantee and the Indenture to the Holder without charge upon
written request to the Sponsor at its principal place of business.

 

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

 

Upon receipt of this
Certificate, the Holder is bound by the Declaration and is entitled to the
benefits thereunder.

 

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

 

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

 

A-2-1

 

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

 

	
   

  	
  FIRST COMMUNITY/CA
  STATUTORY TRUST V

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: Administrator

  

 

A-2-2

 

[FORM OF REVERSE
OF COMMON SECURITY]

 

Distributions payable on
each Common Security will be payable at an annual rate equal to 4.23% beginning
on (and including) the date of original issuance and ending on (but excluding)
December 17, 2003 and at an annual rate for each successive period
beginning on (and including) December 17, 2003, and each succeeding
Distribution Payment Date, and ending on (but excluding) the next succeeding
Distribution Payment Date (each a “Distribution Period”), equal to 3-Month
LIBOR, determined as described below, plus 3.10% (the “Coupon Rate”); provided,
however, that prior to September 17, 2008, the Coupon Rate shall
not exceed 11.75%, applied to the stated liquidation amount of $1,000.00 per
Common Security, such rate being the rate of interest payable on the Debentures
to be held by the Institutional Trustee. Distributions in arrears will bear
interest thereon compounded quarterly at the Distribution Rate (to the extent
permitted by applicable law).  The term
“Distributions” as used herein includes cash distributions and any such
compounded distributions unless otherwise noted.  A Distribution is payable only to the extent that payments are
made in respect of the Debentures held by the Institutional Trustee and to the
extent the Institutional Trustee has funds available therefor.  As used herein, “Determination Date” means
the date that is two London Banking Days (i.e., a business day in which dealings
in deposits in U.S. dollars are transacted in the London interbank market)
preceding the commencement of the relevant Distribution Period.  The amount of the Distribution payable for
any Distribution Period will be calculated by applying the Distribution Rate to
the stated liquidation amount outstanding at the commencement of the
Distribution Period on the basis of the actual number of days in the
Distribution Period concerned divided by 360.

 

“3-Month LIBOR” as used
herein, means the London interbank offered interest rate for three-month U.S.
dollar deposits determined by the Debenture Trustee in the following order of
priority:  (i) the rate (expressed as a
percentage per annum) for U.S. dollar deposits having a three-month maturity
that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the
related Determination Date (“Telerate Page 3750” means the display designated
as “Page 3750” on the Dow Jones Telerate Service or such other page as may
replace Page 3750 on that service or such other service or services as may be
nominated by the British Bankers’ Association as the information vendor for the
purpose of displaying London interbank offered rates for U.S. dollar deposits);
(ii) if such rate cannot be identified on the related Determination Date, the
Debenture Trustee will request the principal London offices of four leading
banks in the London interbank market to provide such banks’ offered quotations
(expressed as percentages per annum) to prime banks in the London interbank
market for U.S. dollar deposits having a three-month maturity as of 11:00 a.m.
(London time) on such Determination Date. 
If at least two quotations are provided, 3-Month LIBOR will be the
arithmetic mean of such quotations; (iii) if fewer than two such quotations are
provided as requested in clause (ii) above, the Debenture Trustee will request
four major New York City banks to provide such banks’ offered quotations
(expressed as percentages per annum) to leading European banks for loans in
U.S. dollars as of 11:00 a.m. (London time) on such Determination Date.  If at least two such quotations are
provided, 3-Month LIBOR will be the arithmetic mean of such quotations; and
(iv) if fewer than two such quotations are provided as requested in clause
(iii) above, 3-Month LIBOR will be a 3-Month LIBOR determined with respect to
the Distribution Period immediately preceding such current Distribution
Period.  If the rate for U.S. dollar
deposits having a three-month maturity that initially appears on Telerate Page
3750 as of 11:00 a.m. (London time) on the related Determination Date is
superseded on the Telerate Page 3750 by a corrected rate by 12:00 noon (London
time) on such Determination Date, then the corrected rate as so substituted on
the applicable page will be the applicable 3-Month LIBOR for such Determination
Date.

 

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

 

All percentages resulting
from any calculations on the Common Securities will be rounded, if necessary,
to the nearest one hundred-thousandth of a percentage point, with five
one-millionths of a percentage point rounded upward (e.g., 9.876545% (or
..09876545) being rounded to 9.87655% (or

 

A-2-3

 

.0987655), and all dollar amounts used in or resulting from such
calculation will be rounded to the nearest cent (with one-half cent being
rounded upward)).

 

Except as otherwise
described below, Distributions on the Common Securities will be cumulative,
will accrue from the date of original issuance and will be payable quarterly in
arrears on March 17, June 17, September 17 and December 17
of each year (or if such day is not a Business Day, then the next succeeding
Business Day), commencing on December 17, 2003. The Debenture Issuer has
the right under the Indenture to defer payments of interest on the Debentures,
so long as no Indenture Event of Default has occurred and is continuing, by extending
the interest payment period for up to 20 consecutive quarterly periods (each an
“Extension Period”) at any time and from time to time on the Debentures,
subject to the conditions described below, during which Extension Period no
interest shall be due and payable. 
During any Extension Period, interest will continue to accrue on the
Debentures, and interest on such accrued interest will accrue at an annual rate
equal to the Distribution Rate in effect for each such Extension Period,
compounded quarterly from the date such interest would have been payable were
it not for the Extension Period, to the extent permitted by law (such interest
referred to herein as “Additional Interest”). No Extension Period may end on a
date other than a Distribution Payment Date. 
At the end of any such Extension Period, the Debenture Issuer shall pay
all interest then accrued and unpaid on the Debentures (together with
Additional Interest thereon); provided, however, that no
Extension Period may extend beyond the Maturity Date.  Prior to the termination of any Extension Period, the Debenture
Issuer may further extend such period, provided that such period together with
all such previous and further consecutive extensions thereof shall not exceed
20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the
termination of any Extension Period and upon the payment of all accrued and
unpaid interest and Additional Interest, the Debenture Issuer may commence a
new Extension Period, subject to the foregoing requirements. No interest or
Additional Interest shall be due and payable during an Extension Period, except
at the end thereof, but each installment of interest that would otherwise have
been due and payable during such Extension Period shall bear Additional Interest.  During any Extension Period, Distributions
on the Common Securities shall be deferred for a period equal to the Extension
Period.  If Distributions are deferred,
the Distributions due shall be paid on the date that the related Extension
Period terminates, to Holders of the Securities as they appear on the books and
records of the Trust on the record date immediately preceding such date.
Distributions on the Securities must be paid on the dates payable (after giving
effect to any Extension Period) to the extent that the Trust has funds
available for the payment of such distributions in the Property Account of the
Trust. The Trust’s funds available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture Issuer.

 

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

 

A-2-4

 

ASSIGNMENT

 

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

 

 

 

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

 

 

 

(Insert address and zip
code of assignee) and irrevocably appoints

 

 

 

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

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Signature:

  	
   

  	
   

  
				

 

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

 

	
  Signature:

  	
   

  	
   

  

 

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

 

Signature Guarantee(2)

 

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

 

A-2-5

 

EXHIBIT
B

 

SPECIMEN OF INITIAL DEBENTURE

 

(See Document No.
17)

 

B-1

 

EXHIBIT
C

 

PLACEMENT AGREEMENT

 

(See Document No.
1)

 

C-1Exhibit 10.7

 

 

AMENDED AND RESTATED TRUST AGREEMENT

 

among

 

FIRST COMMUNITY BANCORP,

as Depositor

 

 

THE BANK OF NEW YORK,

as Property Trustee

 

 

THE BANK OF NEW YORK (DELAWARE),

as Delaware Trustee

 

 

and

 

 

THE ADMINISTRATIVE TRUSTEES NAMED HEREIN

as Administrative Trustees

 

 

Dated as of September 3, 2003

 

 

FIRST COMMUNITY/CA STATUTORY TRUST VI

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I.

  	
  Defined Terms

  
	
   

  	
  SECTION
  1.1.

  	
  Definitions

  
	
   

  	
   

  
	
  ARTICLE
  II.

  	
  The
  Trust

  
	
   

  	
  SECTION 2.1.

  	
  Name

  
	
   

  	
  SECTION 2.2.

  	
  Office of the Delaware Trustee; Principal Place
  of Business

  
	
   

  	
  SECTION 2.3.

  	
  Initial Contribution of Trust Property;
  Fees, Costs and Expenses

  
	
   

  	
  SECTION 2.4.

  	
  Purposes of Trust

  
	
   

  	
  SECTION 2.5.

  	
  Authorization to Enter into Certain
  Transactions

  
	
   

  	
  SECTION
  2.6.

  	
  Assets
  of Trust

  
	
   

  	
  SECTION 2.7.

  	
  Title to Trust Property

  
	
   

  	
   

  
	
  ARTICLE
  III.

  	
  Payment
  Account; Paying Agents

  
	
   

  	
  SECTION
  3.1.

  	
  Payment
  Account

  
	
   

  	
  SECTION 3.2.

  	
  Appointment of Paying Agents

  
	
   

  	
   

  
	
  ARTICLE
  IV.

  	
  Distributions;
  Redemption

  
	
   

  	
  SECTION
  4.1.

  	
  Distributions

  
	
   

  	
  SECTION
  4.2.

  	
  Redemption

  
	
   

  	
  SECTION 4.3.

  	
  Subordination of Common Securities

  
	
   

  	
  SECTION 4.4.

  	
  Payment Procedures

  
	
   

  	
  SECTION
  4.5.

  	
  Withholding
  Tax

  
	
   

  	
  SECTION 4.6.

  	
  Tax Returns and Other Reports

  
	
   

  	
  SECTION
  4.7.

  	
  Payment
  of Taxes, Duties, Etc. of the Trust

  
	
   

  	
  SECTION 4.8.

  	
  Payments under Indenture or Pursuant to
  Direct Actions

  
	
   

  	
  SECTION
  4.9.

  	
  Exchanges

  
	
   

  	
  SECTION 4.10.

  	
  Calculation Agent

  
	
   

  	
  SECTION 4.11.

  	
  Certain Accounting Matters

  
	
   

  	
   

  
	
  ARTICLE V.

  	
  Securities

  
	
   

  	
  SECTION 5.1.

  	
  Initial Ownership

  
	
   

  	
  SECTION 5.2.

  	
  Authorized Trust Securities

  
	
   

  	
  SECTION 5.3.

  	
  Issuance of the Common Securities;
  Subscription and Purchase of Notes

  
	
   

  	
  SECTION 5.4.

  	
  The Securities Certificates

  
	
   

  	
  SECTION 5.5.

  	
  Rights of Holders

  
	
   

  	
  SECTION 5.6.

  	
  Book-Entry Preferred Securities

  
	
   

  	
  SECTION 5.7.

  	
  Registration of Transfer and Exchange of
  Preferred Securities Certificates

  
	
   

  	
  SECTION
  5.8.

  	
  Mutilated,
  Destroyed, Lost or Stolen Securities Certificates

  
	
   

  	
  SECTION 5.9.

  	
  Persons Deemed Holders

  
	
   

  	
  SECTION
  5.10.

  	
  Cancellation

  
	
   

  	
  SECTION 5.11.

  	
  Ownership of Common Securities by Depositor

  
	
   

  	
  SECTION 5.12.

  	
  Restricted Legends

  
	
   

  	
  SECTION 5.13.

  	
  Form of Certificate of Authentication

  
	
   

  	
   

  
	
  ARTICLE
  VI.

  	
  Meetings;
  Voting; Acts of Holders

  
	
   

  	
  SECTION 6.1.

  	
  Notice of Meetings

  
						

 

i

 

	
   

  	
  SECTION 6.2.

  	
  Meetings of Holders of the Preferred
  Securities

  
	
   

  	
  SECTION
  6.3.

  	
  Voting
  Rights

  
	
   

  	
  SECTION
  6.4.

  	
  Proxies,
  Etc

  
	
   

  	
  SECTION 6.5.

  	
  Holder Action by Written Consent

  
	
   

  	
  SECTION 6.6.

  	
  Record Date for Voting and Other Purposes

  
	
   

  	
  SECTION
  6.7.

  	
  Acts
  of Holders

  
	
   

  	
  SECTION 6.8.

  	
  Inspection of Records

  
	
   

  	
  SECTION 6.9.

  	
  Limitations on Voting Rights

  
	
   

  	
  SECTION 6.10.

  	
  Acceleration of Maturity; Rescission of
  Annulment; Waivers of Past Defaults

  
	
   

  	
   

  
	
  ARTICLE
  VII.

  	
  Representations
  and Warranties

  
	
   

  	
  SECTION 7.1.

  	
  Representations and Warranties of the
  Property Trustee and the Delaware Trustee

  
	
   

  	
  SECTION 7.2.

  	
  Representations and Warranties of Depositor

  
	
   

  	
   

  
	
  ARTICLE
  VIII.

  	
  The
  Trustees

  
	
   

  	
  SECTION 8.1.

  	
  Number of Trustees

  
	
   

  	
  SECTION 8.2.

  	
  Property Trustee Required

  
	
   

  	
  SECTION 8.3.

  	
  Delaware Trustee Required

  
	
   

  	
  SECTION 8.4.

  	
  Appointment of Administrative Trustees

  
	
   

  	
  SECTION 8.5.

  	
  Duties and Responsibilities of the Trustees

  
	
   

  	
  SECTION 8.6.

  	
  Notices of Defaults and Extensions

  
	
   

  	
  SECTION 8.7.

  	
  Certain Rights of Property Trustee

  
	
   

  	
  SECTION 8.8.

  	
  Delegation of Power

  
	
   

  	
  SECTION 8.9.

  	
  May Hold Securities

  
	
   

  	
  SECTION 8.10.

  	
  Compensation; Reimbursement; Indemnity

  
	
   

  	
  SECTION 8.11.

  	
  Resignation and Removal; Appointment of
  Successor

  
	
   

  	
  SECTION 8.12.

  	
  Acceptance of Appointment by Successor

  
	
   

  	
  SECTION
  8.13.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  
	
   

  	
  SECTION 8.14.

  	
  Not Responsible for Recitals or Issuance of
  Securities

  
	
   

  	
  SECTION 8.15.

  	
  Property Trustee May File Proofs of Claim

  
	
   

  	
  SECTION 8.16.

  	
  Reports to and from the Property Trustee

  
	
   

  	
   

  
	
  ARTICLE
  IX.

  	
  Termination,
  Liquidation and Merger

  
	
   

  	
  SECTION 9.1.

  	
  Dissolution Upon Expiration Date

  
	
   

  	
  SECTION 9.2.

  	
  Early Termination

  
	
   

  	
  SECTION
  9.3.

  	
  Termination

  
	
   

  	
  SECTION
  9.4.

  	
  Liquidation

  
	
   

  	
  SECTION
  9.5.

  	
  Mergers,
  Consolidations, Amalgamations or Replacements of Trust

  
	
   

  	
   

  
	
  ARTICLE X.

  	
  Miscellaneous Provisions

  
	
   

  	
  SECTION 10.1.

  	
  Limitation of Rights of Holders

  
	
   

  	
  SECTION 10.2.

  	
  Agreed Tax Treatment of Trust and Trust
  Securities

  
	
   

  	
  SECTION
  10.3.

  	
  Amendment

  
	
   

  	
  SECTION
  10.4.

  	
  Separability

  
	
   

  	
  SECTION
  10.5.

  	
  Governing
  Law

  
	
   

  	
  SECTION
  10.6.

  	
  Successors

  
	
   

  	
  SECTION 10.7.

  	
  Headings

  
	
   

  	
  SECTION
  10.8.

  	
  Reports,
  Notices and Demands

  
	
   

  	
  SECTION 10.9.

  	
  Agreement Not to Petition

  
				

 

ii

 

	
  Exhibit A

  	
  Certificate of Trust of First Community/CA
  Statutory Trust VI

  
	
  Exhibit B

  	
  Form of Common Securities Certificate

  
	
  Exhibit C

  	
  Form of Preferred Securities Certificate

  
	
  Exhibit D

  	
  Junior Subordinated Indenture

  
	
  Exhibit E

  	
  Form of Transferee Certificate to be
  Executed by Transferees other than QIBs

  
	
  Exhibit F

  	
  Form of Transferee Certificate to be
  Executed by QIBs

  
	
  Exhibit G

  	
  Form of Officer’s Certificate

  
	
  Schedule A

  	
  Calculation of LIBOR

  

 

iii

 

AMENDED AND RESTATED TRUST
AGREEMENT, dated as of September 3, 2003, among (i) First Community Bancorp, a
California corporation (including any successors or permitted assigns, the
“Depositor”), (ii) The Bank of New York, a New York banking corporation, as
property trustee (in such capacity, the “Property Trustee”), (iii) The Bank of
New York (Delaware), a Delaware banking corporation, as Delaware trustee (in
such capacity, the “Delaware Trustee”), (iv) Matthew P. Wagner, an individual,
Lynn M. Hopkins, an individual and Jared M. Wolff, an individual, each of whose
address is c/o First Community Bancorp, 120 Wilshire Blvd., Santa Monica,
California 90401, as administrative trustees (in such capacities, each an
“Administrative Trustee” and, collectively, the “Administrative Trustees” and,
together with the Property Trustee and the Delaware Trustee, the “Trustees”)
and (v) the several Holders, as hereinafter defined.

 

WITNESSETH

 

Whereas,
the Depositor, the Property Trustee and the Delaware Trustee have heretofore
created a Delaware statutory trust pursuant to the Delaware Statutory Trust Act
by entering into a Trust Agreement, dated as of August 29, 2003 (the “Original
Trust Agreement”), and by executing and filing with the Secretary of State of
the State of Delaware the Certificate of Trust, substantially in the form
attached as Exhibit A; and

 

Whereas,
the Depositor and the Trustees desire to amend and restate the
Original Trust Agreement in its entirety as set forth herein to provide for,
among other things, (i) the issuance of the Common Securities by the Trust to
the Depositor, (ii) the issuance and sale of the Preferred Securities by the
Trust pursuant to the Purchase Agreement and (iii) the acquisition by the Trust
from the Depositor of all of the right, title and interest in and to the Notes;

 

Now,
Therefore, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, each party, for the
benefit of the other parties and for the benefit of the Holders, hereby amends
and restates the Original Trust Agreement in its entirety and agrees as
follows:

 

ARTICLE I.

 

Defined Terms

 

SECTION 1.1.                       Definitions.

 

For all purposes of this Trust
Agreement, 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
used but not defined herein have the meanings assigned to them in accordance
with United States generally accepted accounting principles;

 

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

 

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

 

(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” has the meaning specified
in Section 6.7.

 

“Additional Interest” has the
meaning specified in Section 1.1 of the Indenture.

 

“Additional Interest Amount”
means, with respect to Trust Securities of a given Liquidation Amount and/or a
given period, the amount of Additional Interest paid by the Depositor on a Like
Amount of Notes for such period.

 

“Additional Taxes” has the
meaning specified in Section 1.1 of the Indenture.

 

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

 

“Administrative Trustee” means
each of the Persons identified as an “Administrative Trustee” in the preamble
to this Trust Agreement, solely in each such Person’s capacity as
Administrative Trustee of the Trust and not in such Person’s individual
capacity, or any successor Administrative Trustee appointed as herein provided.

 

“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 Depositary
Procedures” means, with respect to any transfer or transaction involving a
Book-Entry Preferred Security, the rules and procedures of the Depositary for
such Book-Entry Preferred Security, in each case to the extent applicable to
such transaction and as in effect from time to time.

 

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

 

2

 

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

 

(b) 
the institution by such Person of proceedings to be adjudicated a
bankrupt or insolvent, or the consent by it to the institution of bankruptcy or
insolvency proceedings against it, or the filing by it 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 any such petition or to the appointment of a
custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
official of such Person 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 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 such Person in furtherance of any such action.

 

“Bankruptcy Laws” means all
Federal and state bankruptcy, insolvency, reorganization and other similar
laws, including the United States Bankruptcy Code.

 

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

 

“Business Day” means a day
other than (a) a Saturday or Sunday, (b) 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 (c) a day on which the Corporate Trust Office is closed for
business.

 

“Calculation Agent” has the
meaning specified in Section 4.10.

 

“Capital Disqualification
Event” has the meaning specified in Section 1.1 of the Indenture.

 

“Closing Date” has the meaning
specified in the Purchase Agreement.

 

“Code” means the United States
Internal Revenue Code of 1986, as amended.

 

“Commission” means the
Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act or, if at any time after the execution of this Trust
Agreement such Commission is not existing and performing the duties assigned to
it, then the body performing such duties at such time.

 

“Common Securities Certificate”
means a certificate evidencing ownership of Common Securities, substantially in
the form attached as Exhibit B.

 

3

 

“Common Security” means an
undivided beneficial interest in the assets of the Trust, having a Liquidation Amount
of $1,000 and having the rights provided therefor in this Trust Agreement.

 

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

 

“Definitive Preferred
Securities Certificates” means Preferred Securities issued in certificated,
fully registered form that are not Global Preferred Securities.

 

“Delaware Statutory Trust Act”
means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq.,
or any successor statute thereto, in each case as amended from time to time.

 

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

 

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

 

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

 

“Depositor” has the meaning
specified in the preamble to this Trust Agreement and any successors and
permitted assigns.

 

“Depositor Affiliate” has the
meaning specified in Section 4.9.

 

“Distribution Date” has the
meaning specified in Section 4.1(a)(i).

 

“Distributions” means amounts
payable in respect of the Trust Securities as provided in Section 4.1.

 

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

 

“Early Termination Event” has
the meaning specified in Section 9.2.

 

“Event of Default” means any
one of the following events (whatever the reason for such event 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):

 

4

 

(a) 
the occurrence of a Note Event of Default; or

 

(b) 
default by the Trust in the payment of any Distribution when it becomes
due and payable, and continuation of such default for a period of thirty (30)
days; or

 

(c) 
default by the Trust in the payment of any Redemption Price of any Trust
Security when it becomes due and payable; or

 

(d) 
default in the performance, or breach, in any material respect of any
covenant or warranty of the Trustees in this Trust Agreement (other than those
specified in clause (b) or (c) above) and continuation of such default or
breach for a period of thirty (30) days after there has been given, by
registered or certified mail, to the Trustees and to the Depositor by the Holders
of at least twenty five percent (25%) in aggregate Liquidation Amount of the
Outstanding Preferred 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; or

 

(e) 
the occurrence of a Bankruptcy Event with respect to the Property
Trustee if a successor Property Trustee has not been appointed within ninety
(90) days thereof.

 

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

 

“Expiration Date” has the
meaning specified in Section 9.1.

 

“Extension Period” has the
meaning specified in Section 4.1(a)(ii).

 

“Federal Reserve” means the
Board of Governors of the Federal Reserve System, the staff thereof, or a
Federal Reserve Bank, acting through delegated authority, in each case under
the rules, regulations and policies of the Federal Reserve System, or if at any
time after the execution of this Trust Agreement any such entity is not
existing and performing the duties now assigned to it , any successor body
performing similar duties or functions.

 

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

 

“Global Preferred Security”
means a Preferred Securities Certificate evidencing ownership of Book-Entry
Preferred Securities.

 

“Guarantee Agreement” means the
Guarantee Agreement executed and delivered by the Depositor and The Bank of New
York, as guarantee trustee, contemporaneously with the execution and delivery
of this Trust Agreement for the benefit of the holders of the Preferred
Securities, as amended from time to time.

 

“Holder” means a Person in
whose name a Trust Security or Trust Securities are registered in the
Securities Register; any such Person shall be a beneficial owner within the
meaning of the Delaware Statutory Trust Act.

 

5

 

“Indemnified Person” has the
meaning specified in Section 8.10(c).

 

“Indenture” means the Junior
Subordinated Indenture executed and delivered by the Depositor and the Note
Trustee contemporaneously with the execution and delivery of this Trust
Agreement, for the benefit of the holders of the Notes, a copy of which is
attached hereto as Exhibit D, as amended or supplemented from time to
time.

 

“Indenture Redemption Price”
has the meaning specified in Section 4.2(c).

 

“Interest Payment Date” has the
meaning specified in Section 1.1 of the 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” has
the meaning specified in Section 1.1 of the Indenture.

 

“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.

 

“Lien” means any lien, pledge,
charge, encumbrance, mortgage, deed of trust, adverse ownership interest,
hypothecation, assignment, security interest or preference, priority or other
security agreement or preferential arrangement of any kind or nature
whatsoever.

 

“Like Amount” means (a) with
respect to a redemption of any Trust Securities, Trust Securities having a
Liquidation Amount equal to the principal amount of Notes to be
contemporaneously redeemed or paid at maturity in accordance with the
Indenture, the proceeds of which will be used to pay the Redemption Price of
such Trust Securities, (b) with respect to a distribution of Notes to Holders
of Trust Securities in connection with a dissolution of the Trust, Notes having
a principal amount equal to the Liquidation Amount of the Trust Securities of
the Holder to whom such Notes are distributed and (c) with respect to any
distribution of Additional Interest Amounts to Holders of Trust Securities,
Notes having a principal amount equal to the Liquidation Amount of the Trust
Securities in respect of which such distribution is made.

 

“Liquidation Amount” means the
stated amount of $1,000 per Trust Security.

 

“Liquidation Date” means the
date on which assets are to be distributed to Holders in accordance with Section
9.4(a) hereunder following dissolution of the Trust.

 

“Liquidation Distribution” has
the meaning specified in Section 9.4(d).

 

“Majority in Liquidation Amount
of the Preferred Securities” means Preferred Securities representing more than
fifty percent (50%) of the aggregate Liquidation Amount of all (or a specified
group of) then Outstanding Preferred Securities.

 

6

 

“Note Event of Default” means
any “Event of Default” specified in Section 5.1 of the Indenture.

 

“Note Redemption Date” means,
with respect to any Notes to be redeemed under the Indenture, the date fixed
for redemption of such Notes under the Indenture.

 

“Note Trustee” means the Person
identified as the “Trustee” in the Indenture, solely in its capacity as Trustee
pursuant to the Indenture and not in its individual capacity, or its successor
in interest in such capacity, or any successor Trustee appointed as provided in
the Indenture.

 

“Notes” means the Depositor’s
Floating Rate Junior Subordinated Notes issued pursuant to the Indenture.

 

“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 Trust Agreement 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 Chief Executive Officer, the President or an
Executive Vice President, and by the Chief Financial Officer, Treasurer or an
Assistant Treasurer, of the Depositor, and delivered to the Trustees. Any
Officers’ Certificate delivered with respect to compliance with a condition or
covenant provided for in this Trust Agreement (other than the certificate
provided pursuant to Section 8.16) shall include:

 

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

 

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

 

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

 

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

 

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

 

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

 

“Original Issue Date” means the
date of original issuance of the Trust Securities.

 

“Original Trust Agreement” has
the meaning specified in the recitals to this Trust Agreement.

 

7

 

“Outstanding”, when used with
respect to any Trust Securities, means, as of the date of determination, all
Trust Securities theretofore executed and delivered under this Trust Agreement,
except:

 

(a) Trust Securities theretofore canceled by
the Property Trustee or delivered to the Property Trustee for cancellation;

 

(b) Trust Securities for which payment or
redemption money in the necessary amount has been theretofore deposited with
the Property Trustee or any Paying Agent in trust for the Holders of such Trust
Securities; provided, that if such Trust Securities are to be redeemed, notice
of such redemption has been duly given pursuant to this Trust Agreement; and

 

(c) Trust Securities that have been paid or
in exchange for or in lieu of which other Trust Securities have been executed
and delivered pursuant to the provisions of this Trust Agreement, unless proof
satisfactory to the Property Trustee is presented that any such Trust
Securities are held by Holders in whose hands such Trust Securities are valid,
legal and binding obligations of the Trust;

 

provided, that in determining whether the
Holders of the requisite Liquidation Amount of the Outstanding Preferred
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, Preferred Securities owned by the Depositor, any
Trustee or any Affiliate of the Depositor or of any Trustee shall be
disregarded and deemed not to be Outstanding, except that (i) in determining
whether any Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Preferred
Securities that such Trustee knows to be so owned shall be so disregarded and
(ii) the foregoing shall not apply at any time when all of the Outstanding
Preferred Securities are owned by the Depositor, one or more of the Trustees
and/or any such Affiliate. Preferred Securities so owned that have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Administrative Trustees the pledgee’s right so to act with
respect to such Preferred Securities and that the pledgee is not the Depositor,
any Trustee or any Affiliate of the Depositor or of any Trustee.

 

“Owner” means each Person who
is the beneficial owner of Book-Entry Preferred Securities as reflected in the
records of the Depositary or, if a Depositary Participant is not the beneficial
owner, then the beneficial owner as reflected in the records of the Depositary
Participant.

 

“Paying Agent” means any Person
authorized by the Administrative Trustees to pay Distributions or other amounts
in respect of any Trust Securities on behalf of the Trust.

 

“Payment Account” means a
segregated non-interest-bearing corporate trust account maintained by the
Property Trustee for the benefit of the Holders in which all amounts paid in
respect of the Notes will be held and from which the Property Trustee, through
the Paying Agent, shall make payments to the Holders in accordance with Sections
3.1, 4.1 and 4.2.

 

“Person” means a legal person,
including any individual, corporation, estate, partnership, joint venture,
association, joint stock company, company, limited liability company, trust,

 

8

 

unincorporated association or
government, or any agency or political subdivision thereof, or any other entity
of whatever nature.

 

“Preferred Security” means an
undivided beneficial interest in the assets of the Trust, having a Liquidation
Amount of $1,000 and having the rights provided therefor in this Trust
Agreement.

 

“Preferred Securities
Certificate” means a certificate evidencing ownership of Preferred Securities,
substantially in the form attached as Exhibit C.

 

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

 

“Purchase Agreement” means the
Purchase Agreement executed and delivered by the Trust, the Depositor and
Trapeza CDO III, LLC, as purchaser, contemporaneously with the execution and
delivery of this Trust Agreement, as amended from time to time.

 

“QIB” means a “qualified
institutional buyer” as defined in Rule 144A under the Securities Act.

 

“Redemption Date” means, with
respect to any Trust Security to be redeemed, the date fixed for such
redemption by or pursuant to this Trust Agreement; provided, that each Note
Redemption Date and the stated maturity (or any date of principal repayment
upon early maturity) of the Notes shall be a Redemption Date for a Like Amount
of Trust Securities.

 

“Redemption Price” means, with
respect to any Trust Security, the Liquidation Amount of such Trust Security,
plus accumulated and unpaid Distributions to the Redemption Date, plus the
related amount of the premium, if any, paid by the Depositor upon the
concurrent redemption  or payment at
maturity of a Like Amount of Notes.

 

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

 

“Responsible Officer” means,
with respect to the Property 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 Property 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.

 

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

 

“Securities Certificate” means
any one of the Common Securities Certificates or the Preferred Securities
Certificates.

 

9

 

“Securities Register” and
“Securities Registrar” have the respective meanings specified in Section 5.7.

 

“Successor Securities” has the
meaning specified in Section 9.5(a).

 

“Tax Event” has the meaning
specified in Section 1.1 of the Indenture.

 

“Trust” means the Delaware
statutory trust known as “First Community/CA Statutory Trust VI,” which was
created on August 29, 2003, under the Delaware Statutory Trust Act pursuant to
the Original Trust Agreement and the filing of the Certificate of Trust, and
continued pursuant to this Trust Agreement.

 

“Trust Agreement” means this
Amended and Restated Trust Agreement, as the same may be modified, amended or
supplemented from time to time in accordance with the applicable provisions
hereof, including all Schedules and Exhibits.

 

“Trustees” means the
Administrative Trustees, the Property Trustee and the Delaware Trustee, each as
defined in this Article I.

 

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

 

“Trust Security” means any one
of the Common Securities or the Preferred Securities.

 

ARTICLE II.

 

The Trust

 

SECTION 2.1.                       Name.

 

The trust continued hereby
shall be known as “First Community/CA Statutory Trust VI,” as such name may be
modified from time to time by the Administrative Trustees following written
notice to the Holders of Trust Securities and the other Trustees, in which name
the Trustees may conduct the business of the Trust, make and execute contracts
and other instruments on behalf of the Trust and sue and be sued.

 

SECTION 2.2.                       Office of the Delaware Trustee; Principal
Place of Business.

 

The address of the Delaware
Trustee in the State of Delaware is White Clay Center Route 273, Newark,
Delaware 19711, Attention: Corporate Trust Administration, or such other
address in the State of Delaware as the Delaware Trustee may designate by
written notice to the Holders, the Depositor, the Property Trustee and the
Administrative Trustees. The principal executive office of the Trust is c/o
First Community Bancorp, 120 Wilshire Blvd., Santa Monica, California 90401.
Attention: Chief Financial Officer, as such address may be changed from time to
time by the Administrative Trustees following written notice to the Holders and
the other Trustees.

 

10

 

SECTION 2.3.                       Initial Contribution of Trust Property;
Fees, Costs and Expenses.

 

The Property Trustee
acknowledges receipt from the Depositor in connection with the Original Trust
Agreement of the sum of ten dollars ($10), which constituted the initial Trust
Property. The Depositor shall pay all fees, costs and expenses of the Trust
(except with respect to the Trust Securities) as they arise or shall, upon
request of any Trustee, promptly reimburse such Trustee for any such fees,
costs and expenses paid by such Trustee. The Depositor shall make no claim upon
the Trust Property for the payment of such fees, costs or expenses.

 

SECTION 2.4.                       Purposes of Trust.

 

(a)                                  The
exclusive purposes and functions of the Trust are to (i) issue and sell Trust
Securities and use the proceeds from such sale to acquire the Notes and
(ii)  engage in only those activities
necessary or incidental thereto. The Delaware Trustee, the Property Trustee and
the Administrative Trustees are trustees of the Trust, and have all the rights,
powers and duties to the extent set forth herein.  The Trustees hereby acknowledge that they are trustees of the
Trust.

 

(b)                                 So
long as this Trust Agreement remains in effect, the Trust (or the Trustees
acting on behalf of the Trust) shall not undertake any business, activities or
transaction except as expressly provided herein or contemplated hereby. In
particular, the Trust (or the Trustees acting on behalf of the Trust) shall not
(i) acquire any investments or engage in any activities not authorized by this
Trust Agreement, (ii) sell, assign, transfer, exchange, mortgage, pledge,
set-off or otherwise dispose of any of the Trust Property or interests therein,
including to Holders, except as expressly provided herein, (iii) incur any
indebtedness for borrowed money or issue any other debt, (iv) take or consent
to any action that would result in the placement of a Lien on any of the Trust
Property, (v) take or consent to any action that would reasonably be expected
to cause the Trust to become taxable as a corporation or classified as other than
a grantor trust for United States federal income tax purposes, (vi) take or
consent to any action that would cause the Notes to be treated as other than
indebtedness of the Depositor for United States federal income tax purposes or
(vii) take or consent to any action that would cause the Trust to be deemed to
be an “investment company” required to be registered under the Investment
Company Act.

 

SECTION 2.5.                       Authorization to Enter into Certain
Transactions.

 

(a)                                  The
Trustees shall conduct the affairs of the Trust in accordance with and subject
to the terms of this Trust Agreement. In accordance with the following
provisions (i) and (ii), the Trustees shall have the authority to enter into
all transactions and agreements determined by the Trustees to be appropriate in
exercising the authority, express or implied, otherwise granted to the
Trustees, under this Trust Agreement, and to perform all acts in furtherance
thereof, including the following:

 

(i)                                     As among the
Trustees, each Administrative Trustee shall severally have the power and
authority to act on behalf of the Trust with respect to the following matters:

 

(A)                              the issuance
and sale of the Trust Securities;

 

11

 

(B)                                to cause the
Trust to enter into, and to execute, deliver and perform on behalf of the
Trust, such agreements as may be necessary or desirable in connection with the
purposes and function of the Trust, including, without limitation, a common
securities subscription agreement and a junior subordinated note subscription
agreement;

 

(C)                                assisting in
the sale of the Preferred Securities in one or more transactions exempt from
registration under the Securities Act, and in compliance with applicable state
securities or blue sky laws;

 

(D)                               assisting in
the sending of notices (other than notices of default) and other information
regarding the Trust Securities and the Notes to the Holders in accordance with
this Trust Agreement;

 

(E)                                 the appointment
of a Paying Agent and Securities Registrar in accordance with this Trust
Agreement;

 

(F)                                 execution of
the Trust Securities on behalf of the Trust in accordance with this Trust
Agreement;

 

(G)                                execution and
delivery of closing certificates, if any, pursuant to the Purchase Agreement
and application for a taxpayer identification number for the Trust;

 

(H)                               preparation and
filing of all applicable tax returns and tax information reports that are
required to be filed on behalf of the Trust;

 

(I)                                    establishing a
record date with respect to all actions to be taken hereunder that require a
record date to be established, except as provided in Section 6.10(a);

 

(J)                                   unless
otherwise required by the Delaware Statutory Trust Act to execute on behalf of
the Trust (either acting alone or together with the other Administrative
Trustees) any documents that such Administrative Trustee has the power to
execute pursuant to this Trust Agreement; and

 

(K)                               the taking of
any action incidental to the foregoing as such Administrative Trustee may from
time to time determine is necessary or advisable to give effect to the terms of
this Trust Agreement.

 

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

 

(A)                              the receipt and
holding of legal title of the Notes;

 

(B)                                the
establishment of the Payment Account;

 

12

 

(C)                                the collection
of interest, principal and any other payments made in respect of the Notes and
the holding of such amounts in the Payment Account;

 

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

 

(E)                                 the exercise of
all of the rights, powers and privileges of a holder of the Notes in accordance
with the terms of this Trust Agreement;

 

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

 

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

 

(H)                               to the extent
provided in this Trust Agreement, the winding up of the affairs of and
liquidation of the Trust and the preparation, execution and filing of the
certificate of cancellation of the Trust with the Secretary of State of the
State of Delaware; and

 

(I)                                    the taking of
any action incidental to the foregoing as the Property Trustee may from time to
time determine is necessary or advisable to give effect to the terms of this
Trust Agreement and protect and conserve the Trust Property for the benefit of
the Holders (without consideration of the effect of any such action on any
particular Holder).

 

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

 

(i)                                     the negotiation
of the terms of, and the execution and delivery of, the Purchase Agreement
providing for the sale of the Preferred Securities in one or more transactions
exempt from registration under the Securities Act, and in compliance with
applicable state securities or blue sky laws; and

 

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

 

(c)                                  Notwithstanding
anything herein to the contrary, the Administrative Trustees are authorized and
directed to conduct the affairs of the Trust and to operate the Trust so that
the Trust will not be taxable as a corporation or classified as other than a
grantor trust for United States federal income tax purposes, so that the Notes
will be treated as indebtedness of the Depositor for United States federal
income tax purposes and so that the Trust will not be deemed to be an
“investment company” required to be registered under the Investment Company
Act. In this connection, each Administrative Trustee is authorized to take any
action, not inconsistent with applicable law, the Certificate of Trust or this
Trust Agreement, that such Administrative

 

13

 

Trustee determines in his or
her discretion to be necessary or desirable for such purposes, as long as such
action does not adversely affect in any material respect the interests of the
Holders of the Outstanding Preferred Securities.  In no event shall the Administrative Trustees be liable to the
Trust or the Holders for any failure to comply with this Section 2.5 to
the extent that such failure results solely from a change in law or regulation
or in the interpretation thereof.

 

(d)                                 Any
action taken by a Trustee in accordance with its powers shall constitute the
act of and serve to bind the Trust.  In
dealing with any Trustee acting on behalf of the Trust, no Person shall be
required to inquire into the authority of such Trustee to bind the Trust.  Persons dealing with the Trust are entitled
to rely conclusively on the power and authority of any Trustee as set forth in
this Trust Agreement.

 

SECTION 2.6.                       Assets of Trust.

 

The assets of the Trust shall
consist of the Trust Property.

 

SECTION 2.7.                       Title to Trust Property.

 

(a)                                  Legal
title to all Trust Property shall be vested at all times in the Property
Trustee and shall be held and administered by the Property Trustee in trust for
the benefit of the Trust and the Holders in accordance with this Trust
Agreement.

 

(b)                                 The
Holders shall not have any right or title to the Trust Property other than the
undivided beneficial interest in the assets of the Trust conferred by their
Trust Securities and they shall have no right to call for any partition or
division of property, profits or rights of the Trust except as described below.
The Trust Securities shall be personal property giving only the rights
specifically set forth therein and in this Trust Agreement.

 

ARTICLE III.

 

Payment
Account; Paying Agents

 

SECTION 3.1.                       Payment Account.

 

(a)                                  On
or prior to the Closing Date, the Property Trustee shall establish the Payment
Account. The Property Trustee and the Paying Agent shall have exclusive control
and sole right of withdrawal with respect to the Payment Account for the
purpose of making deposits in and withdrawals from the Payment Account in
accordance with this Trust Agreement. All monies and other property deposited
or held from time to time in the Payment Account shall be held by the Property
Trustee in the Payment Account for the exclusive benefit of the Holders and for
Distribution as herein provided.

 

(b)                                 The
Property Trustee shall deposit in the Payment Account, promptly upon receipt,
all payments of principal of or interest on, and any other payments with
respect to, the Notes. Amounts held in the Payment Account shall not be
invested by the Property Trustee pending distribution thereof.

 

14

 

SECTION 3.2.                       Appointment of Paying Agents.

 

The Paying Agent shall
initially be the Property Trustee. The Paying Agent shall make Distributions to
Holders from the Payment Account and shall report the amounts of such
Distributions to the Property Trustee and the Administrative Trustees. Any
Paying Agent shall have the revocable power to withdraw funds from the Payment
Account solely for the purpose of making the Distributions referred to above.
The Administrative Trustees may revoke such power and remove the Paying Agent
in their sole discretion. Any Person acting as Paying Agent shall be permitted
to resign as Paying Agent upon thirty (30) days’ written notice to the
Administrative Trustees and the Property Trustee. If the Property Trustee shall
no longer be the Paying Agent or a successor Paying Agent shall resign or its
authority to act be revoked, the Administrative Trustees shall appoint a
successor (which shall be a bank or trust company) to act as Paying Agent.  Such successor Paying Agent appointed by the
Administrative Trustees shall execute and deliver to the Trustees an instrument
in which such successor Paying Agent shall agree with the Trustees that as
Paying Agent, such successor Paying Agent will hold all sums, if any, held by
it for payment to the Holders in trust for the benefit of the Holders entitled
thereto until such sums shall be paid to such Holders. The Paying Agent shall
return all unclaimed funds to the Property Trustee and upon removal of a Paying
Agent such Paying Agent shall also return all funds in its possession to the
Property Trustee. The provisions of Article VIII shall apply to the
Property Trustee also in its role as Paying Agent, for so long as the Property
Trustee shall act as Paying Agent and, to the extent applicable, to any other
Paying Agent appointed hereunder. Any reference in this Trust Agreement to the
Paying Agent shall include any co-paying agent unless the context requires
otherwise.

 

ARTICLE IV.

 

Distributions;
Redemption

 

SECTION 4.1.                       Distributions.

 

(a)                                  The
Trust Securities represent undivided beneficial interests in the Trust
Property, and Distributions (including any Additional Interest Amounts) will be
made on the Trust Securities at the rate and on the dates that payments of
interest (including any Additional Interest) are made on the Notes.
Accordingly:

 

(i)                                     Distributions
on the Trust Securities shall be cumulative, and shall accumulate whether or
not there are funds of the Trust available for the payment of Distributions.
Distributions shall accumulate from September 3, 2003, and, except as provided
in clause (ii) below, shall be payable quarterly in arrears on March 15th,
June 15th, September 15th and December 15th of
each year, commencing on December 15, 2003. 
If any date on which a Distribution is otherwise payable on the Trust
Securities is not a Business Day, then the payment of such Distribution 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 each such date until the 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 such date (each date on which

 

15

 

Distributions
are payable in accordance with this Section 4.1(a)(i), a “Distribution Date”);

 

(ii)                                  in the event
(and to the extent) that the Depositor exercises its right under the Indenture
to defer the payment of interest on the Notes, Distributions on the Trust
Securities shall be deferred.  Under the
Indenture, so long as no Note Event of Default has occurred and is continuing,
the Depositor shall have the right, at any time and from time to time during
the term of the Notes, to defer the payment of interest on the Notes for a
period of up to twenty (20) consecutive quarterly interest payment periods
(each such extended interest payment period, an “Extension Period”), during
which Extension Period no interest on the Notes shall be due and payable
(except any Additional Tax Sums that may be due and payable).  No interest on the Notes 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 rate equal to LIBOR plus
3.05% per annum, provided, that, the applicable interest rate shall not exceed
12.0% through the Interest Payment Date in September, 2008, 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.  If Distributions are deferred,
the deferred Distributions (including Additional Interest Amounts) shall be
paid on the date that the related Extension Period terminates, to Holders of
the Trust Securities as they appear on the books and records of the Trust on
the record date immediately preceding such termination date.

 

(iii)                               Distributions
shall accumulate in respect of the Trust Securities at a variable rate equal to
LIBOR plus 3.05% of the Liquidation Amount of the Trust Securities, such rate
being the rate of interest payable on the Notes, provided, that, the applicable
Distribution rate shall not exceed 12.0% through the Distribution Date in
September, 2008. LIBOR shall be determined by the Calculation Agent in
accordance with Schedule A. The amount of Distributions payable for any
period less than a full Distribution period shall be computed on the basis of a
360-day year and the actual number of days elapsed in the relevant Distribution
period.  The amount of Distributions
payable for any period shall include any Additional Interest Amounts in respect
of such period; and

 

(iv)                              Distributions
on the Trust Securities shall be made by the Paying Agent from the Payment
Account and shall be payable on each Distribution Date only to the extent that
the Trust has funds then on hand and available in the Payment Account for the
payment of such Distributions.

 

(b)                                 Distributions
on the Trust Securities with respect to a Distribution Date shall be payable to
the Holders thereof as they appear on the Securities Register for the Trust
Securities at the close of business on the relevant record date, which shall be
at the close of business on the fifteenth day (whether or not a Business Day)
preceding the relevant Distribution Date.’ Distributions payable on any Trust
Securities that are not punctually paid on any Distribution Date as a result of
the Depositor having failed to make an interest payment under the Notes will
cease to be payable to the Person in whose name such Trust Securities are
registered on the

 

16

 

relevant record date, and such
defaulted Distributions and any Additional Interest Amounts will instead be
payable to the Person in whose name such Trust Securities are registered on the
special record date, or other specified date for determining Holders entitled
to such defaulted Distribution and Additional Interest Amount, established in
the same manner, and on the same date, as such is established with respect to
the Notes under the Indenture.

 

SECTION 4.2.                       Redemption.

 

(a)                                  On
each Note Redemption Date and on the stated maturity (or any date of principal
repayment upon early maturity) of the Notes and on each other date on (or in
respect of) which any principal on the Notes is repaid, the Trust will be
required to redeem a Like Amount of Trust Securities at the Redemption Price.

 

(b)                                 Notice
of redemption shall be given by the Property Trustee by first-class mail,
postage prepaid, mailed not less than thirty (30) nor more than sixty (60) days
prior to the Redemption Date to each Holder of Trust Securities to be redeemed,
at such Holder’s address appearing in the Securities Register. All notices 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 provided
pursuant to the Indenture, as calculated by the Depositor, together with a
statement that it is an estimate and that the actual Redemption Price will be
calculated by the Calculation Agent 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 the Outstanding Trust Securities are to be redeemed, the identification
(and, in the case of partial redemption, the respective) and Liquidation
Amounts of the particular Trust Securities to be redeemed;

 

(iv)                              that on the
Redemption Date, the Redemption Price will become due and payable upon each
such Trust Security, or portion thereof, to be redeemed and that Distributions
thereon will cease to accumulate on such Trust Security or such portion, as the
case may be, on and after said date, except as provided in Section 4.2(d);

 

(v)                                 the place or
places where the Trust Securities are to be surrendered for the payment of the
Redemption Price; and

 

(vi)                              such other
provisions as the Property Trustee deems relevant.

 

(c)                                  The
Trust Securities (or portion thereof) redeemed on each Redemption Date shall be
redeemed at the Redemption Price with the proceeds from the contemporaneous
redemption or payment at maturity of Notes. Redemptions of the Trust Securities
(or portion thereof) shall be made and the Redemption Price shall be payable on
each Redemption Date only to the extent that the Trust has funds then on hand
and available in the Payment Account for the payment of such Redemption
Price.  Under the Indenture, the Notes
may be redeemed by the Depositor on

 

17

 

any Interest Payment Date, at
the Depositor’s option, on or after September 15, 2008, in whole or in part,
from time to time 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 (the
“Indenture Redemption Price”); provided, that the Depositor shall have received
the prior approval of the Federal Reserve if then required.  The Notes may also be redeemed by the
Depositor, at its option, in whole but not in part, upon the occurrence of a
Capital Disqualification Event, an Investment Company Event or a Tax Event at
the Indenture Redemption Price.

 

(d)                                 If
the Property Trustee gives a notice of redemption in respect of any Preferred
Securities, then by 12:00 noon, New York City time, on the Redemption Date, the
Depositor shall deposit sufficient funds with the Property Trustee to pay the
Redemption Price.  If such deposit has
been made by such time, then by 2:00 P.M., New York City time, on the
Redemption Date, the Property Trustee will, with respect to Book-Entry
Preferred Securities, irrevocably deposit with the Depositary for such
Book-Entry Preferred Securities, to the extent available therefor, funds
sufficient to pay the applicable Redemption Price and will give such Depositary
irrevocable instructions and authority to pay the Redemption Price to the
Holders of the Preferred Securities. With respect to Preferred Securities that
are not Book-Entry Preferred Securities, the Property Trustee will irrevocably
deposit with the Paying Agent, to the extent available therefor, funds
sufficient to pay the applicable Redemption Price and will give the Paying
Agent irrevocable instructions and authority to pay the Redemption Price to the
Holders of the Preferred Securities upon surrender of their Preferred
Securities Certificates. Notwithstanding the foregoing, Distributions payable
on or prior to the Redemption Date for any Trust Securities (or portion thereof)
called for redemption shall be payable to the Holders of such Trust Securities
as they appear on the Securities Register on the relevant record dates for the
related Distribution Dates. If notice of redemption shall have been given and
funds deposited as required, then upon the date of such deposit, all rights of
Holders holding Trust Securities (or portion thereof) so called for redemption
will cease, except the right of such Holders to receive the Redemption Price
and any Distribution payable in respect of the Trust Securities on or prior to
the Redemption Date, but without interest, and, in the case of a partial
redemption, the right of such Holders to receive a new Trust Security or
Securities of authorized denominations, in aggregate Liquidation Amount equal
to the unredeemed portion of such Trust Security or Securities, and such
Securities (or portion thereof) called for redemption will cease to be
Outstanding. In the event that any date on which any Redemption Price is
payable is not a Business Day, then payment of the Redemption Price payable on
such date will 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 each such date until the 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 such date. In the event that
payment of the Redemption Price in respect of any Trust Securities (or portion
thereof) called for redemption is improperly withheld or refused and not paid
either by the Trust or by the Depositor pursuant to the Guarantee Agreement,
Distributions on such Trust Securities(or portion thereof) will continue to
accumulate, as set forth in Section 4.1, from the Redemption Date
originally established by the Trust for such Trust Securities(or portion
thereof) to the date such Redemption Price is actually paid, in which case the
actual payment date will be the date fixed for redemption for purposes of
calculating the Redemption Price.

 

18

 

(e)                                  Subject
to Section 4.3(a), if less than all the Outstanding Trust Securities are
to be redeemed on a Redemption Date, then the aggregate Liquidation Amount of
Trust Securities to be redeemed shall be allocated pro rata to the Common
Securities and the Preferred Securities based upon the relative aggregate
Liquidation Amounts of the Common Securities and the Preferred Securities.  The Preferred Securities to be redeemed
shall be redeemed on a pro rata basis based upon their respective Liquidation
Amounts not more than sixty (60) days prior to the Redemption Date by the
Property Trustee from the Outstanding Preferred Securities not previously
called for redemption; provided, however, that with respect to Holders that
would be required to hold less than one hundred (100) but more than zero (0)
Trust Securities as a result of such redemption, the Trust shall redeem Trust
Securities of each such Holder so that after such redemption such Holder shall
hold either one hundred (100) Trust Securities or such Holder no longer holds
any Trust Securities, and shall use such method (including, without limitation,
by lot) as the Trust shall deem fair and appropriate; and provided, further,
that so long as the Preferred Securities are Book-Entry Preferred Securities,
such selection shall be made in accordance with the Applicable Depositary
Procedures for the Preferred Securities by such Depositary. The Property
Trustee shall promptly notify the Securities Registrar in writing of the
Preferred Securities (or portion thereof) selected for redemption and, in the
case of any Preferred Securities selected for partial redemption, the
Liquidation Amount thereof to be redeemed. For all purposes of this Trust
Agreement, unless the context otherwise requires, all provisions relating to
the redemption of Preferred Securities shall relate, in the case of any Preferred
Securities redeemed or to be redeemed only in part, to the portion of the
aggregate Liquidation Amount of Preferred Securities that has been or is to be
redeemed.

 

(f)                                    The
Trust in issuing the Trust Securities may use “CUSIP” numbers (if then generally
in use), and, if so, the Property Trustee shall indicate the “CUSIP” numbers of
the Trust Securities in notices of redemption and related materials as a
convenience to Holders; provided, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Trust Securities or as contained in any notice of redemption and related
materials.

 

SECTION 4.3.                       Subordination of Common Securities.

 

(a)                                  Payment
of Distributions (including any Additional Interest Amounts) on, the Redemption
Price of and the Liquidation Distribution in respect of, the Trust Securities,
as applicable, shall be made, pro rata among the Common Securities and the
Preferred Securities based on the Liquidation Amount of the respective Trust
Securities; provided, that if on any Distribution Date, Redemption Date or
Liquidation Date an Event of Default shall have occurred and be continuing, no
payment of any Distribution (including any Additional Interest Amounts) on,
Redemption Price of or Liquidation Distribution in respect of, any Common
Security, and no other payment on account of the redemption, liquidation or
other acquisition of Common Securities, shall be made unless payment in full in
cash of all accumulated and unpaid Distributions (including any Additional
Interest Amounts) on all Outstanding Preferred Securities for all Distribution
periods terminating on or prior thereto, or in the case of payment of the
Redemption Price the full amount of such Redemption Price on all Outstanding
Preferred Securities then called for redemption, or in the case of payment of
the Liquidation Distribution the full amount of such Liquidation Distribution
on all Outstanding Preferred Securities, shall have been made or provided for,
and all funds immediately available to the Property Trustee

 

19

 

shall first be applied to the
payment in full in cash of all Distributions (including any Additional Interest
Amounts) on, or the Redemption Price of or the Liquidation Distribution in
respect of, the Preferred Securities then due and payable.

 

(b)                                 In
the case of the occurrence of any Event of Default, the Holders of the Common
Securities shall have no right to act with respect to any such Event of Default
under this Trust Agreement until all such Events of Default with respect to the
Preferred Securities have been cured, waived or otherwise eliminated. Until all
such Events of Default under this Trust Agreement with respect to the Preferred
Securities have been so cured, waived or otherwise eliminated, the Property
Trustee shall act solely on behalf of the Holders of the Preferred Securities
and not on behalf of the Holders of the Common Securities, and only the Holders
of all the Preferred Securities will have the right to direct the Property
Trustee to act on their behalf.

 

SECTION 4.4.                       Payment Procedures.

 

Payments of Distributions
(including any Additional Interest Amounts), the Redemption Price, Liquidation
Amount or any other amounts in respect of the Preferred Securities shall be
made by wire transfer at such place and to such account at a banking
institution in the United States as may be designated in writing 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 Securities
Register.  If any Preferred Securities
are held by a Depositary, such Distributions thereon shall be made to the
Depositary in immediately available funds. Payments in respect of the Common
Securities shall be made in such manner as shall be mutually agreed between the
Property Trustee and the Holder of all the Common Securities.

 

SECTION 4.5.                       Withholding Tax.

 

The Trust and the
Administrative Trustees shall comply with all withholding and backup
withholding tax requirements under United States federal, state and local
law.  The Administrative Trustees on
behalf of the Trust shall request, and the Holders shall provide to the Trust,
such forms or certificates as are necessary to establish an exemption from
withholding and backup withholding tax with respect to each Holder and any
representations and forms as shall reasonably be requested by the
Administrative Trustees on behalf of the Trust to assist it in determining the
extent of, and in fulfilling, its withholding and backup withholding tax
obligations.  The Administrative
Trustees shall file required forms with applicable jurisdictions and, unless an
exemption from withholding and backup withholding tax is properly established
by a Holder, shall remit amounts withheld with respect to the Holder to
applicable jurisdictions.  To the extent
that the Trust is required to withhold and pay over any amounts to any
jurisdiction with respect to Distributions or allocations to any Holder, the
amount withheld shall be deemed to be a Distribution in the amount of the
withholding to the Holder.  In the event
of any claimed overwithholding, Holders shall be limited to an action against
the applicable jurisdiction.  If the
amount required to be withheld was not withheld from actual Distributions made,
the Administrative Trustees on behalf of the Trust may reduce subsequent
Distributions by the amount of such required withholding.

 

20

 

SECTION 4.6.                       Tax Returns and Other Reports.

 

(a)                                  The
Administrative Trustees shall prepare (or cause to be prepared) at the principal
office of the Trust in the United States, as defined for purposes of Treasury
regulations section 301.7701-7, at the Depositor’s expense, and file, all
United States federal, state and local tax and information returns and reports
required to be filed by or in respect of the Trust.  The Administrative Trustees shall prepare at the principal office
of the Trust in the United States, as defined for purposes of Treasury
regulations section 301.7701-7, and furnish (or cause to be prepared and
furnished), by January 31 in each taxable year of the Trust to each Holder all
Internal Revenue Service forms and returns required to be provided by the
Trust. The Administrative Trustees shall provide the Depositor and the Property
Trustee with a copy of all such returns and reports promptly after such filing
or furnishing.

 

(b)                                 So
long as the Property Trustee is the Holder of the Notes, the Administrative
Trustees will cause the Depositor’s reports on Form FR Y-9C, FR Y-9LP and FR
Y-6 to be delivered to the Property Trustee promptly following their filing
with the Federal Reserve.

 

SECTION 4.7.                       Payment of
Taxes, Duties, Etc. of the Trust.

 

Upon receipt under the Notes of
Additional Tax Sums and upon the written direction of the Administrative
Trustees, the Property Trustee shall promptly pay, solely out of monies on
deposit pursuant to this Trust Agreement, any Additional Taxes imposed on the
Trust by the United States or any other taxing authority.

 

SECTION 4.8.                       Payments under Indenture or Pursuant to
Direct Actions.

 

Any amount payable hereunder to
any Holder of Preferred Securities shall be reduced by the amount of any
corresponding payment such Holder (or any Owner with respect thereto) has
directly received pursuant to Section 5.8 of the Indenture or Section 6.10(b)
of this Trust Agreement.

 

SECTION 4.9.                       Exchanges.

 

(a)                                  If
at any time the Depositor or any of its Affiliates (in either case, a
“Depositor Affiliate”) is the Owner or Holder of any Preferred Securities, such
Depositor Affiliate shall have the right to deliver to the Property Trustee all
or such portion of its Preferred Securities as it elects and receive, in
exchange therefor, a Like Amount of Notes. 
Such election (i) shall be exercisable effective on any Distribution
Date by such Depositor Affiliate delivering to the Property Trustee a written
notice of such election specifying the Liquidation Amount of Preferred
Securities with respect to which such election is being made and the
Distribution Date on which such exchange shall occur, which Distribution Date
shall be not less than ten (10) Business Days after the date of receipt by the
Property Trustee of such election notice and (ii) shall be conditioned upon
such Depositor Affiliate having delivered or caused to be delivered to the
Property Trustee or its designee the Preferred Securities that are the subject
of such election by 12:00 noon New York time, on the Distribution Date on which
such exchange is to occur.  After the
exchange, such Preferred Securities will be canceled and will no longer be deemed
to be Outstanding and all rights of the Depositor Affiliate with respect to
such Preferred Securities will cease.

 

21

 

(b)                                 In
the case of an exchange described in Section 4.9(a), the Property
Trustee on behalf of the Trust will, on the date of such exchange, exchange
Notes having a principal amount equal to a proportional amount of the aggregate
Liquidation Amount of the Outstanding Common Securities, based on the ratio of
the aggregate Liquidation Amount of the Preferred Securities exchanged pursuant
to Section 4.9(a) divided by the aggregate Liquidation Amount of the
Preferred Securities Outstanding immediately prior to such exchange, for such
proportional amount of Common Securities held by the Depositor (which
contemporaneously shall be canceled and no longer be deemed to be Outstanding);
provided, that the Depositor delivers or causes to be delivered to the Property
Trustee or its designee the required amount of Common Securities to be
exchanged by 12:00 noon New York time, on the Distribution Date on which such
exchange is to occur.

 

SECTION 4.10.                 Calculation Agent.

 

(a)                                  The
Property Trustee shall initially, and for so long as it holds any of the Notes,
be the Calculation Agent for purposes of determining LIBOR for each
Distribution Date.  The Calculation
Agent may be removed by the Administrative Trustees at any time.  If the Calculation Agent is unable or
unwilling to act as such or is removed by the Administrative Trustees, the
Administrative Trustees will promptly appoint as a replacement Calculation
Agent the London office of a leading bank which is engaged in transactions in
three-month Eurodollar deposits in the international Eurodollar market and
which does not control or is not controlled by or under common control with the
Administrative Trustee 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, 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
(rounded to the nearest cent, with half a cent being rounded upwards) for the
related Distribution Date, and will communicate such rate and amount to the
Depositor, Trustee, each Paying Agent and the Depositary. The Calculation Agent
will also specify to the Administrative Trustee the quotations upon which the
foregoing rates and amounts are based and, in any event, the Calculation Agent
shall notify the Administrative Trustee 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 Distribution 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 Trust Securities, “Business Day” shall be defined as any
day on which dealings in deposits in Dollars are transacted in the London
interbank market.

 

SECTION 4.11.                 Certain Accounting Matters.

 

(a)                                  At
all times during the existence of the Trust, the Administrative Trustees shall
keep, or cause to be kept at the principal office of the Trust in the United
States, as defined for purposes of Treasury Regulations section 301.7701-7,
full books of account, records and supporting documents, which shall reflect in
reasonable detail each transaction of the Trust.  The

 

22

 

books of account shall be
maintained on the accrual method of accounting, in accordance with generally
accepted accounting principles, consistently applied.

 

(b)                                 The
Administrative Trustees shall either (i), if the Depositor is then subject to
such reporting requirements, cause each Form 10-K and Form 10-Q prepared by the
Depositor and filed with the Commission in accordance with the Exchange Act to
be delivered to each Holder, with a copy to the Property Trustee, within thirty
(30) days after the filing thereof or (ii) cause to be prepared at the
principal office of the Trust in the United States, as defined for purposes of
Treasury Regulations section 301.7701-7, and delivered to each of the Holders,
with a copy to the Property Trustee, within ninety (90) days after the end of
each Fiscal Year, annual financial statements of the Trust, including a balance
sheet of the Trust as of the end of such Fiscal Year, and the related
statements of income or loss.

 

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

 

ARTICLE V.

 

Securities

 

SECTION 5.1.                       Initial Ownership.

 

Upon the creation of the Trust
and the contribution by the Depositor referred to in Section 2.3 and
until the issuance of the Trust Securities, and at any time during which no
Trust Securities are Outstanding, the Depositor shall be the sole beneficial
owner of the Trust.

 

SECTION 5.2.                       Authorized Trust Securities.

 

The Trust shall be authorized
to issue one series of Preferred Securities having an aggregate Liquidation
Amount of $10,000,000 and one series of Common Securities having an aggregate
Liquidation Amount of $310,000.

 

SECTION 5.3.                       Issuance of the Common Securities;
Subscription and Purchase of Notes.

 

On the Closing Date, an
Administrative Trustee, on behalf of the Trust, shall execute and deliver to
the Depositor Common Securities Certificates, registered in the name of the
Depositor, evidencing an aggregate of 310 Common Securities having an aggregate
Liquidation Amount of $310,000, against receipt by the Trust of the aggregate
purchase price of such Common Securities of $310,000. Contemporaneously
therewith and with the sale by the Trust to the Holders of an aggregate of
10,000 Preferred Securities having an aggregate Liquidation Amount of
$10,000,000, an Administrative Trustee, on behalf of the Trust, shall subscribe
for and purchase from the Depositor Notes, to be registered in the name of the
Property Trustee on behalf of the Trust and having an aggregate principal
amount equal to $10,310,000, and, in

 

23

 

satisfaction of the purchase
price for such Notes, the Property Trustee, on behalf of the Trust, shall
deliver to the Depositor the sum of $10,310,000 (being the aggregate amount
paid by the Holders for the Preferred Securities and the amount paid by the
Depositor for the Common Securities).

 

SECTION 5.4.                       The Securities Certificates.

 

(a)                                  The
Preferred Securities Certificates shall be issued in minimum denominations of
$100,000 Liquidation Amount and integral multiples of $1,000 in excess thereof,
and the Common Securities Certificates shall be issued in minimum denominations
of $10,000 Liquidation Amount and integral multiples of $1,000 in excess
thereof.  The Securities Certificates shall
be executed on behalf of the Trust by manual or facsimile signature of at least
one Administrative Trustee.  Securities
Certificates bearing the signatures of individuals who were, at the time when
such signatures shall have been affixed, authorized to sign such Securities
Certificates on behalf of the Trust shall be validly issued and entitled to the
benefits of this Trust Agreement, notwithstanding that such individuals or any
of them shall have ceased to be so authorized prior to the delivery of such
Securities Certificates or did not have such authority at the date of delivery
of such Securities Certificates.

 

(b)                                 On
the Closing Date, upon the written order of an authorized officer of the
Depositor, the Administrative Trustees shall cause Securities Certificates to
be executed on behalf of the Trust and delivered, without further corporate
action by the Depositor, in authorized denominations.

 

(c)                                  The
Preferred Securities issued to QIBs shall be, except as provided in Section 5.6,
Book-Entry Preferred Securities issued in the form of one or more Global
Preferred Securities registered in the name of the Depositary, or its nominee
and deposited with the Depositary or a custodian for the Depositary for credit
by the Depositary to the respective accounts of the Depositary Participants
thereof (or such other accounts as they may direct).  The Preferred Securities issued to a Person other than a QIB
shall be issued in the form of Definitive Preferred Securities Certificate.

 

(d)                                 A
Preferred Security shall not be valid until authenticated by the manual
signature of an Authorized Officer of the Property Trustee.  Such signature shall be conclusive evidence
that the Preferred Security has been authenticated under this Trust Agreement.  Upon written order of the Trust signed by
one Administrative Trustee, the Property Trustee shall authenticate the
Preferred Securities for original issue. 
The Property Trustee may appoint an authenticating agent that is a U.S.
Person acceptable to the Trust to authenticate the Preferred Securities.  A Common Security need not be so
authenticated and shall be valid upon execution by one or more Administrative
Trustees.  The form of this certificate
of authentication can be found in Section 5.13.

 

SECTION 5.5.                       Rights of Holders.

 

The Trust Securities shall have
no preemptive or similar rights and when issued and delivered to Holders
against payment of the purchase price therefor will be fully paid and
non-assessable by the Trust.  Except as
provided in Section 5.11(b), the Holders of the Trust

 

24

 

Securities, in their capacities
as such, shall be entitled to the same limitation of personal liability
extended to stockholders of private corporations for profit organized under the
General Corporation Law of the State of Delaware.

 

SECTION 5.6.                       Book-Entry Preferred Securities.

 

(a)                                  A
Global Preferred Security may be exchanged, in whole or in part, for Definitive
Preferred Securities Certificates registered in the names of the Owners only if
such exchange complies with Section 5.7 and (i) the Depositary advises
the Administrative Trustees and the Property Trustee in writing that the
Depositary is no longer willing or able properly to discharge its
responsibilities with respect to the Global Preferred Security, and no
qualified successor is appointed by the Administrative Trustees within ninety
(90) days of receipt of such notice, (ii) the Depositary ceases to be a
clearing agency registered under the Exchange Act and the Administrative
Trustees fail to appoint a qualified successor within ninety (90) days of
obtaining knowledge of such event, (iii) the Administrative Trustees at their
option advise the Property Trustee in writing that the Trust elects to
terminate the book-entry system through the Depositary or (iv) a Note Event of Default
has occurred and is continuing. Upon the occurrence of any event specified in
clause (i), (ii), (iii) or (iv) above, the Administrative Trustees shall notify
the Depositary and instruct the Depositary to notify all Owners of Book-Entry
Preferred Securities, the Delaware Trustee and the Property Trustee of the
occurrence of such event and of the availability of the Definitive Preferred
Securities Certificates to Owners of the Preferred Securities requesting the
same. Upon the issuance of Definitive Preferred Securities Certificates, the
Trustees shall recognize the Holders of the Definitive Preferred Securities
Certificates as Holders. 
Notwithstanding the foregoing, if an Owner of a beneficial interest in a
Global Preferred Security wishes at any time to transfer an interest in such
Global Preferred Security to a Person other than a QIB, such transfer shall be
effected, subject to the Applicable Depositary Procedures, in accordance with
the provisions of this Section 5.6 and Section 5.7, and the
transferee shall receive a Definitive Preferred Securities Certificate in
connection with such transfer.  A holder
of a Definitive Preferred Securities Certificate that is a QIB may, upon
request, and in accordance with the provisions of this Section 5.6 and Section
5.7, exchange such Definitive Preferred Securities Certificate for a
beneficial interest in a Global Preferred Security.

 

(b)                                 If
any Global Preferred Security is to be exchanged for Definitive Preferred
Securities Certificates or canceled in part, or if any Definitive Preferred
Securities Certificate is to be exchanged in whole or in part for any Global
Preferred Security, then either (i) such Global Preferred Security shall be so
surrendered for exchange or cancellation as provided in this Article V
or (ii) the aggregate Liquidation Amount represented by such Global Preferred
Security shall be reduced, subject to Section 5.4, or increased by an
amount equal to the Liquidation Amount represented by that portion of the
Global Preferred Security to be so exchanged or canceled, or equal to the
Liquidation Amount represented by such Definitive Preferred Securities
Certificates to be so exchanged for any Global Preferred Security, as the case
may be, by means of an appropriate adjustment made on the records of the
Securities Registrar, whereupon the Property Trustee, in accordance with the
Applicable Depositary Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender to the Administrative Trustees or the Securities
Registrar of any Global Preferred Security or Securities by the Depositary,
accompanied by registration instructions, the Administrative Trustees, or any
one of them, shall

 

25

 

execute the Definitive
Preferred Securities Certificates in accordance with the instructions of the
Depositary.  None of the Securities
Registrar or the Trustees shall 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.

 

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

 

(d)                                 The
Depositary or its nominee, as registered owner of a Global Preferred Security,
shall be the Holder of such Global Preferred Security for all purposes under
this Trust Agreement and the Global Preferred Security, and Owners with respect
to a Global Preferred Security shall hold such interests pursuant to the
Applicable Depositary Procedures. The Securities Registrar and the Trustees
shall be entitled to deal with the Depositary for all purposes of this Trust
Agreement relating to the Global Preferred Securities (including the payment of
the Liquidation Amount of and Distributions on the Book-Entry Preferred
Securities represented thereby and the giving of instructions or directions by
Owners of Book-Entry Preferred Securities represented thereby and the giving of
notices) as the sole Holder of the Book-Entry Preferred Securities represented
thereby and shall have no obligations to the Owners thereof.  None of the Trustees nor the Securities
Registrar shall have any liability in respect of any transfers effected by the
Depositary.

 

(e)                                  The
rights of the Owners of the Book-Entry Preferred Securities shall be exercised
only through the Depositary and shall be limited to those established by law,
the Applicable Depositary Procedures and agreements between such Owners and the
Depositary and/or the Depositary Participants; provided, solely for the purpose
of determining whether the Holders of the requisite amount of Preferred
Securities have voted on any matter provided for in this Trust Agreement, to
the extent that Preferred Securities are represented by a Global Preferred
Security, the Trustees may conclusively rely on, and shall be fully protected
in relying on, any written instrument (including a proxy) delivered to the Property
Trustee by the Depositary setting forth the Owners’ votes or assigning the
right to vote on any matter to any other Persons either in whole or in
part.  To the extent that Preferred
Securities are represented by a Global Preferred Security, the initial
Depositary will make book-entry transfers among the Depositary Participants and
receive and transmit payments on the Preferred Securities that are represented
by a Global Preferred Security to such Depositary Participants, and none of the
Depositor or the Trustees shall have any responsibility or obligation with
respect thereto.

 

(f)                                    To
the extent that a notice or other communication to the Holders is required
under this Trust Agreement, for so long as Preferred Securities are represented
by a Global Preferred Security,  the
Trustees shall give all such notices and communications to the Depositary, and
shall have no obligations to the Owners.

 

26

 

SECTION 5.7.                       Registration of Transfer and Exchange
of Preferred Securities Certificates.

 

(a)                                  The
Property Trustee shall keep or cause to be kept, at the Corporate Trust Office,
a register or registers (the “Securities Register”) in which the registrar and
transfer agent with respect to the Trust Securities (the “Securities
Registrar”), subject to such reasonable regulations as it may prescribe, shall
provide for the registration of Preferred Securities Certificates and Common
Securities Certificates and registration of transfers and exchanges of
Preferred Securities Certificates as herein provided. The Person acting as the
Property Trustee shall at all times also be the Securities Registrar.  The provisions of Article VIII shall
apply to the Property Trustee in its role as Securities Registrar.

 

(b)                                 Upon
surrender for registration of transfer of any Preferred Securities Certificate
at the office or agency maintained pursuant to Section 5.7(f), the
Administrative Trustees or any one of them shall execute by manual or facsimile
signature and deliver to the Property Trustee, and the Property Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Preferred Securities Certificates in authorized
denominations of a like aggregate Liquidation Amount as may be required by this
Trust Agreement dated the date of execution by such Administrative Trustee or
Trustees.  At the option of a Holder,
Preferred Securities Certificates may be exchanged for other Preferred
Securities Certificates in authorized denominations and of a like aggregate
Liquidation Amount upon surrender of the Preferred Securities Certificate to be
exchanged at the office or agency maintained pursuant to Section 5.7(f).  Whenever any Preferred Securities
Certificates are so surrendered for exchange, the Administrative Trustees or
any one of them shall execute by manual or facsimile signature and deliver to
the Property Trustee, and the Property Trustee shall authenticate and deliver,
the Preferred Securities Certificates that the Holder making the exchange is
entitled to receive.

 

(c)                                  The
Securities Registrar shall not be required, (i) to issue, register the transfer
of or exchange any Preferred Security during a period beginning at the opening
of business fifteen (15) days before the day of selection for redemption of
such Preferred Securities pursuant to Article IV 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 Preferred Security so selected for
redemption in whole or in part, except, in the case of any such Preferred
Security to be redeemed in part, any portion thereof not to be redeemed.

 

(d)                                 Every
Preferred Securities Certificate presented or surrendered for registration of
transfer or exchange shall be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Securities Registrar duly
executed by the Holder or such Holder’s attorney duly authorized in writing and
(i) if such Preferred Securities Certificate is being transferred otherwise
than to a QIB, accompanied by a certificate of the transferee substantially in
the form set forth as Exhibit E hereto or (ii) if such Preferred
Securities Certificate is being transferred to a QIB, accompanied by a
certificate of the transferor substantially in the form set forth as Exhibit
F hereto.

 

(e)                                  No
service charge shall be made for any registration of transfer or exchange of
Preferred Securities Certificates, but the Property Trustee on behalf of the
Trust may require

 

27

 

payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Preferred Securities Certificates.

 

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

 

SECTION 5.8.                       Mutilated,
Destroyed, Lost or Stolen Securities Certificates.

 

(a)                                  If
any mutilated Securities Certificate shall be surrendered to the Securities
Registrar together with such security or indemnity as may be required by the
Securities Registrar and the Administrative Trustees to save each of them
harmless, the Administrative Trustees, or any one of them, on behalf of the
Trust, shall execute and make available for delivery in exchange therefor a new
Securities Certificate of like class, tenor and denomination.

 

(b)                                 If
the Securities Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Securities Certificate and there shall be
delivered to the Securities Registrar and the Administrative Trustees such
security or indemnity as may be required by them to save each of them harmless,
then in the absence of notice that such Securities Certificate shall have been
acquired by a protected purchaser, the Administrative Trustees, or any one of
them, on behalf of the Trust, shall execute and make available for delivery,
and, with respect to Preferred Securities, the Property Trustee shall
authenticate, in exchange for or in lieu of any such destroyed, lost or stolen
Securities Certificate, a new Securities Certificate of like class, tenor and
denomination.

 

(c)                                  In
connection with the issuance of any new Securities Certificate under this Section
5.8, the Administrative Trustees or the Securities Registrar may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection therewith.

 

(d)                                 Any
duplicate Securities Certificate issued pursuant to this Section 5.8
shall constitute conclusive evidence of an undivided beneficial interest in the
assets of the Trust corresponding to that evidenced by the mutilated, lost,
stolen or destroyed Securities Certificate, as if originally issued, whether or
not the lost, stolen or destroyed Securities Certificate shall be found at any
time.

 

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

 

(f)                                    The
provisions of this Section 5.8 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement of
mutilated, destroyed, lost or stolen Securities Certificates.

 

28

 

SECTION 5.9.                       Persons Deemed Holders.

 

The Trustees and the Securities
Registrar shall each treat the Person in whose name any Securities Certificate
shall be registered in the Securities Register as the owner of such Securities
Certificate for the purpose of receiving Distributions and for all other
purposes whatsoever, and none of the Trustees and the Securities Registrar
shall be bound by any notice to the contrary.

 

SECTION 5.10.                 Cancellation.

 

All Preferred Securities
Certificates surrendered for registration of transfer or exchange or for
payment shall, if surrendered to any Person other than the Property Trustee, be
delivered to the Property Trustee, and any such Preferred Securities
Certificates and Preferred Securities Certificates surrendered directly to the
Property Trustee for any such purpose shall be promptly canceled by it.  The Administrative Trustees may at any time
deliver to the Property Trustee for cancellation any Preferred Securities
Certificates previously delivered hereunder that the Administrative Trustees
may have acquired in any manner whatsoever, and all Preferred Securities
Certificates so delivered shall be promptly canceled by the Property
Trustee.  No Preferred Securities
Certificates shall be executed and delivered in lieu of or in exchange for any
Preferred Securities Certificates canceled as provided in this Section 5.10,
except as expressly permitted by this Trust Agreement.  All canceled Preferred Securities
Certificates shall be disposed of by the Property Trustee in accordance with
its customary practices and the Property Trustee shall deliver to the
Administrative Trustees a certificate of such disposition.

 

SECTION 5.11.                 Ownership of Common Securities by
Depositor.

 

(a)                                  On
the Closing Date, the Depositor shall acquire, and thereafter shall retain,
beneficial and record ownership of the Common Securities. Neither the Depositor
nor any successor Holder of the Common Securities may transfer less than all
the Common Securities, and the Depositor or any such successor Holder may
transfer the Common Securities only (i) in connection with a consolidation or
merger of the Depositor into another Person, or any conveyance, transfer or
lease by the Depositor of its properties and assets substantially as an
entirety to any Person (in which event such Common Securities will be
transferred to such surviving entity, transferee or lessee, as the case may
be), pursuant to Section 8.1 of the Indenture or (ii) to the Depositor
or an Affiliate of the Depositor, in each such case in compliance with
applicable law (including the Securities Act, and applicable state securities
and blue sky laws). To the fullest extent permitted by law, any attempted transfer
of the Common Securities other than as set forth in the immediately preceding
sentence shall be void. The Administrative Trustees shall cause each Common
Securities Certificate issued to the Depositor to contain a legend stating
substantially “THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH
APPLICABLE LAW AND SECTION 5.11 OF THE TRUST AGREEMENT.”

 

(b)                                 Any
Holder of the Common Securities shall be liable for the debts and obligations
of the Trust in the manner and to the extent set forth with respect to the
Depositor and agrees that it shall be subject to all liabilities to which the
Depositor may be subject and, prior to becoming such a Holder, shall deliver to
the Administrative Trustees an instrument of assumption satisfactory to such Trustees.

 

29

 

SECTION 5.12.                 Restricted Legends.

 

(a)                                  Each
Preferred Security Certificate shall bear a legend in substantially the
following form:

 

“[IF THIS SECURITY IS A GLOBAL SECURITY
INSERT: THIS PREFERRED SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF
THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF
THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC.  THIS PREFERRED 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 TRUST AGREEMENT, AND NO
TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED
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 PREFERRED SECURITY IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC TO FIRST COMMUNITY/CA STATUTORY TRUST VI
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
PREFERRED 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 PREFERRED 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
PREFERRED SECURITIES OR 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 PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED
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 PREFERRED SECURITIES
REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE TRUST AND THE
DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES MAY BE OFFERED, RESOLD OR
OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST, (II) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A “QUALIFIED

 

30

 

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 TRUST AND THE DEPOSITOR TO REQUIRE AN OPINION
OF COUNSEL AND OTHER INFORMATION SATISFACTORY TO EACH OF THEM AND (B) THE
HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES FROM IT OF THE
RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

THE PREFERRED SECURITIES WILL BE ISSUED AND
MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE LIQUIDATION AMOUNT OF NOT
LESS THAN $100,000. ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY
INTEREST THEREIN,  IN A BLOCK HAVING AN
AGGREGATE LIQUIDATION 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
PREFERRED SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH PREFERRED SECURITIES, OR ANY
INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO
INTEREST WHATSOEVER IN SUCH PREFERRED 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 PREFERRED SECURITY OR ANY INTEREST
THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF
AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
96-23, 95-60, 91-38, 90-1 OR 84-14 OR

 

31

 

ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE
AND HOLDING OF THIS SECURITY, OR ANY INTEREST THEREIN,  IS NOT PROHIBITED BY SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY
PURCHASER OR HOLDER OF THE PREFERRED SECURITIES OR ANY INTEREST THEREIN WILL BE
DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i)
IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA,
OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER
PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER
PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO
FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH
THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

THIS 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 legend shall not be removed from any of the Preferred Securities
Certificates unless there is delivered to the Property Trustee and the
Depositor 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 the provisions of the Securities Act and other
applicable law.  Upon provision of such
satisfactory evidence, one or more of the Administrative Trustees on behalf of
the Trust shall execute and deliver to the Property Trustee, and the Property
Trustee shall deliver, at the written direction of the Administrative Trustees
and the Depositor, Preferred Securities Certificates that do not bear the
legend.

 

SECTION 5.13.                 Form of Certificate of
Authentication.

 

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

 

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

 

	
  Dated:

  	
  The Bank of
  New York, not in its individual

  capacity, but solely as Property Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  officer

  

 

32

 

ARTICLE VI.

 

Meetings;
Voting; Acts of Holders

 

SECTION 6.1.                       Notice of Meetings.

 

Notice of all meetings of the
Holders of the Preferred Securities, stating the time, place and purpose of the
meeting, shall be given by the Property Trustee pursuant to Section 10.8
to each Holder of Preferred Securities, at such Holder’s registered address, at
least fifteen (15) days and not more than ninety (90) days before the meeting.
At any such meeting, any business properly before the meeting may be so
considered whether or not stated in the notice of the meeting. Any adjourned
meeting may be held as adjourned without further notice.

 

SECTION 6.2.                       Meetings of Holders of the Preferred
Securities.

 

(a)                                  No
annual meeting of Holders is required to be held. The Property Trustee,
however, shall call a meeting of the Holders of the Preferred Securities to
vote on any matter upon the written request of the Holders of at least twenty
five percent (25%) in aggregate Liquidation Amount of the Outstanding Preferred
Securities and the Administrative Trustees or the Property Trustee may, at any
time in their discretion, call a meeting of the Holders of the Preferred
Securities to vote on any matters as to which such Holders are entitled to
vote.

 

(b)                                 The
Holders of at least a Majority in Liquidation Amount of the Preferred
Securities, present in person or by proxy, shall constitute a quorum at any
meeting of the Holders of the Preferred Securities.

 

(c)                                  If
a quorum is present at a meeting, an affirmative vote by the Holders present,
in person or by proxy, holding Preferred Securities representing at least a
Majority in Liquidation Amount of the Preferred Securities held by the Holders
present, either in person or by proxy, at such meeting shall constitute the action
of the Holders of the Preferred Securities, unless this Trust Agreement
requires a lesser or greater number of affirmative votes.

 

SECTION 6.3.                       Voting Rights.

 

Holders shall be entitled to
one vote for each $10,000 of Liquidation Amount represented by their
Outstanding Trust Securities in respect of any matter as to which such Holders
are entitled to vote.

 

SECTION 6.4.                       Proxies,
Etc.

 

At any meeting of Holders, any
Holder entitled to vote thereat may vote by proxy, provided, that no proxy
shall be voted at any meeting unless it shall have been placed on file with the
Administrative Trustees, or with such other officer or agent of the Trust as
the Administrative Trustees may direct, for verification prior to the time at
which such vote shall be taken. Pursuant to a resolution of the Property
Trustee, proxies may be solicited in the name of the Property Trustee or one or
more officers of the Property Trustee. Only Holders of record shall be entitled
to vote. When Trust Securities are held jointly by several Persons, any one of
them may vote at any meeting in person or by proxy in respect of such Trust
Securities, but if

 

33

 

more than one of them shall be
present at such meeting in person or by proxy, and such joint owners or their
proxies so present disagree as to any vote to be cast, such vote shall not be
received in respect of such Trust Securities. A proxy purporting to be executed
by or on behalf of a Holder shall be deemed valid unless challenged at or prior
to its exercise, and the burden of proving invalidity shall rest on the
challenger. No proxy shall be valid more than three years after its date of
execution.

 

SECTION 6.5.                       Holder Action by Written Consent.

 

Any action that may be taken by
Holders at a meeting may be taken without a meeting and without prior notice if
Holders holding at least a Majority in Liquidation Amount of all Preferred
Securities entitled to vote in respect of such action (or such lesser or
greater proportion thereof as shall be required by any other provision of this
Trust Agreement) shall consent to the action in writing; provided, that notice
of such action is promptly provided to the Holders of Preferred Securities that
did not consent to such action.  Any
action that may be taken by the Holders of all the Common Securities may be
taken without a meeting and without prior notice if such Holders shall consent
to the action in writing.

 

SECTION 6.6.                       Record Date for Voting and Other
Purposes.

 

Except as provided in Section
6.10(a), for the purposes of determining the Holders who are entitled to
notice of and to vote at any meeting or to act by written consent, or to
participate in any distribution on the Trust Securities in respect of which a
record date is not otherwise provided for in this Trust Agreement, or for the
purpose of any other action, the Administrative Trustees may from time to time
fix a date, not more than ninety (90) days prior to the date of any meeting of
Holders or the payment of a Distribution or other action, as the case may be,
as a record date for the determination of the identity of the Holders of record
for such purposes.

 

SECTION 6.7.                       Acts of Holders.

 

(a)                                  Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Trust Agreement to be given, made 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 otherwise expressly provided
herein, such action shall become effective when such instrument or instruments
are delivered to an Administrative Trustee. 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 Trust Agreement and
conclusive in favor of the Trustees, if made in the manner provided in this Section
6.7.

 

(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 a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than such signer’s

 

34

 

individual capacity, such
certificate or affidavit shall also constitute sufficient proof of such
signer’s authority. The fact and date of the execution of any such instrument
or writing, or the authority of the Person executing the same, may also be
proved in any other manner that any Trustee receiving the same deems
sufficient.

 

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

 

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

 

(e)                                  Without
limiting the foregoing, a Holder entitled hereunder to take any action
hereunder with regard to any particular Trust Security may do so with regard to
all or any part of the Liquidation Amount of such Trust 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 Liquidation Amount.

 

(f)                                    If
any dispute shall arise among the Holders or the Trustees with respect to the
authenticity, validity or binding nature of any request, demand, authorization,
direction, notice, consent, waiver or other Act of such Holder or Trustee under
this Article VI, then the determination of such matter by the Property
Trustee shall be conclusive with respect to such matter.

 

SECTION 6.8.                       Inspection of Records.

 

Upon reasonable written notice
to the Administrative Trustees and the Property Trustee, the records of the
Trust shall be open to inspection by any Holder during normal business hours
for any purpose reasonably related to such Holder’s interest as a Holder.

 

SECTION 6.9.                       Limitations on Voting Rights.

 

(a)                                  Except
as expressly provided in this Trust Agreement and in the Indenture and as
otherwise required by law, no Holder of Preferred Securities shall have any
right to vote or in any manner otherwise control the administration, operation
and management of the Trust or the obligations of the parties hereto, nor shall
anything herein set forth, or contained in the terms of the Securities
Certificates, be construed so as to constitute the Holders from time to time as
partners or members of an association.

 

(b)                                 So
long as any Notes are held by the Property Trustee on behalf of the Trust, the
Property Trustee shall not (i) direct the time, method and place of conducting
any proceeding for any remedy available to the Note Trustee, or exercise any
trust or power conferred on the Property Trustee with respect to the Notes,
(ii) waive any past default that may be waived under Section 5.13 of the
Indenture, (iii) exercise any right to rescind or annul a declaration that the
principal of all the Notes shall be due and payable or (iv) consent to any
amendment, modification or termination of the Indenture or the Notes, where
such consent shall be required,

 

35

 

without, in each case,
obtaining the prior approval of the Holders of at least a Majority in
Liquidation Amount of the Preferred Securities; provided, that where a consent
under the Indenture would require the consent of each holder of Notes (or each
Holder of Preferred Securities) affected thereby, no such consent shall be
given by the Property Trustee without the prior written consent of each Holder
of Preferred Securities. The Property Trustee shall not revoke any action
previously authorized or approved by a vote of the Holders of the Preferred
Securities, except by a subsequent vote of the Holders of the Preferred
Securities.  In addition to obtaining
the foregoing approvals of the Holders of the Preferred Securities, prior to taking
any of the foregoing actions, the Property Trustee shall, at the expense of the
Depositor, obtain an Opinion of Counsel experienced in such matters to the
effect that such action shall not cause the Trust to be taxable as a
corporation or classified as other than a grantor trust for United States
federal income tax purposes.

 

(c)                                  If
any proposed amendment to the Trust Agreement provides for, or the Trustees
otherwise propose to effect, (i) any action that would adversely affect in any
material respect the powers, preferences or special rights of the Preferred
Securities, whether by way of amendment to the Trust Agreement or otherwise or
(ii) the dissolution, winding-up or termination of the Trust, other than
pursuant to the terms of this Trust Agreement, then the Holders of Outstanding
Preferred Securities as a class will be entitled to vote on such amendment or
proposal and such amendment or proposal shall not be effective except with the
approval of the Holders of at least a Majority in Liquidation Amount of the
Preferred Securities. Notwithstanding any other provision of this Trust
Agreement, no amendment to this Trust Agreement may be made if, as a result of
such amendment, it would cause the Trust to be taxable as a corporation or
classified as other than a grantor trust for United States federal income tax
purposes.

 

SECTION 6.10.                 Acceleration of Maturity; Rescission of
Annulment; Waivers of Past Defaults.

 

(a)                                  For
so long as any Preferred Securities remain Outstanding, if, upon a Note Event
of Default, the Note Trustee fails or the holders of not less than twenty five
percent (25%) in principal amount of the outstanding Notes fail to declare the
principal of all of the Notes to be immediately due and payable, the Holders of
at least twenty-five percent (25%) in Liquidation Amount of the Preferred
Securities then Outstanding shall have the right to make such declaration by a
notice in writing to the Property Trustee, the Depositor and the Note
Trustee.  At any time after a
declaration of acceleration with respect to the Notes has been made and before
a judgment or decree for payment of the money due has been obtained by the Note
Trustee as provided in the Indenture, the Holders of at least a Majority in
Liquidation Amount of the Preferred Securities, by written notice to the
Property Trustee, the Depositor and the Note Trustee, may rescind and annul
such declaration and its consequences if:

 

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

 

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

 

(B)                                any accrued
Additional Interest on all of the Notes;

 

36

 

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

 

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

 

(ii)                                  all Note Events
of Default, other than the non-payment of the principal of the Notes that has
become due solely by such acceleration, have been cured or waived as provided
in Section 5.13 of the Indenture.

 

Upon receipt by the Property
Trustee of written notice requesting such an acceleration, or rescission and
annulment thereof, by Holders of any part of the Preferred Securities, a record
date shall be established for determining Holders of Outstanding Preferred
Securities entitled to join in such notice, which record date shall be at the
close of business on the day the Property Trustee receives such notice. The
Holders on such record date, or their duly designated proxies, and only such
Persons, shall be entitled to join in such notice, whether or not such Holders
remain Holders after such record date; provided, that, unless such declaration
of acceleration, or rescission and annulment, as the case may be, shall have
become effective by virtue of the requisite percentage having joined in such
notice prior to the day that is ninety (90) days after such record date, such
notice of declaration of acceleration, or rescission and annulment, as the case
may be, shall automatically and without further action by any Holder be
canceled and of no further effect. Nothing in this paragraph shall prevent a
Holder, or a proxy of a Holder, from giving, after expiration of such ninety
(90)-day period, a new written notice of declaration of acceleration, or
rescission and annulment thereof, as the case may be, that is identical to a
written notice that has been canceled pursuant to the proviso to the preceding
sentence, in which event a new record date shall be established pursuant to the
provisions of this Section 6.10(a).

 

(b)                                 For
so long as any Preferred Securities remain Outstanding, to the fullest extent
permitted by law and subject to the terms of this Trust Agreement and the
Indenture, upon a Note Event of Default specified in paragraph (a) or (b) of Section
5.1 of the Indenture, any Holder of Preferred Securities shall have the
right to institute a proceeding directly against the Depositor, pursuant to Section
5.8 of the Indenture, for enforcement of payment to such Holder of any
amounts payable in respect of Notes having an aggregate principal amount equal
to the aggregate Liquidation Amount of the Preferred Securities of such
Holder.  Except as set forth in Section 6.10(a)
and this Section 6.10(b), the Holders of Preferred Securities shall have
no right to exercise directly any right or remedy available to the holders of,
or in respect of, the Notes.

 

(c)                                  Notwithstanding
paragraphs (a) and (b) of this Section 6.10, the Holders of at least a
Majority in Liquidation Amount of the Preferred Securities may, on behalf of
the Holders of all the Preferred Securities, waive any Note Event of Default,
except any Note Event of Default arising from the failure to pay any principal
of or any premium or interest on (including any Additional Interest) the Notes
(unless such Note Event of Default has been cured and a sum sufficient to pay
all matured installments of interest and all principal and premium on all Notes
due otherwise than by acceleration has been deposited with the Note Trustee) or
a Note Event of Default in respect of a covenant or provision that under the
Indenture cannot be modified or

 

37

 

amended without the consent of
the holder of each outstanding Note. 
Upon any such waiver, such Note Event of Default shall cease to exist
and any Note Event of Default arising therefrom shall be deemed to have been
cured for every purpose of the Indenture; but no such waiver shall affect any
subsequent Note Event of Default or impair any right consequent thereon.

 

(d)                                 Notwithstanding
paragraphs (a) and (b) of this Section 6.10, the Holders of at least a
Majority in Liquidation Amount of the Preferred Securities may, on behalf of
the Holders of all the Preferred Securities, waive any past Event of Default
and its consequences.  Upon such waiver,
any 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
Trust Agreement, but no such waiver shall extend to any subsequent or other
Event of Default or impair any right consequent thereon.

 

(e)                                  The
Holders of a Majority in Liquidation Amount of the Preferred Securities shall
have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Property Trustee in respect of this
Trust Agreement or the Notes or exercising any trust or power conferred upon
the Property Trustee under this Trust Agreement; provided, that, subject to Sections
8.5 and 8.7, the Property Trustee shall have the right to decline to
follow any such direction if the Property Trustee being advised by counsel
determines that the action so directed may not lawfully be taken, or if the
Property Trustee in good faith shall, by an officer or officers of the Property
Trustee, determine that the proceedings so directed would be illegal or involve
it in personal liability or be unduly prejudicial to the rights of Holders not
party to such direction, and provided, further, that nothing in this Trust
Agreement shall impair the right of the Property Trustee to take any action
deemed proper by the Property Trustee and which is not inconsistent with such
direction.

 

ARTICLE VII.

 

Representations
and Warranties

 

SECTION 7.1.                       Representations and Warranties of the
Property Trustee and the Delaware Trustee.

 

The Property Trustee and the
Delaware Trustee, each severally on behalf of and as to itself, hereby
represents and warrants for the benefit of the Depositor and the Holders that:

 

(a)                                  the
Property Trustee is a New York banking corporation, duly organized, validly
existing and in good standing under the laws of the State of New York;

 

(b)                                 the
Property Trustee has full corporate power, authority and legal right to
execute, deliver and perform its obligations under this Trust Agreement and has
taken all necessary action to authorize the execution, delivery and performance
by it of this Trust Agreement;

 

(c)                                  the
Delaware Trustee is a Delaware banking corporation, duly organized, validly
existing and in good standing under the laws of the State of Delaware;

 

(d)                                 the
Delaware Trustee has full corporate power, authority and legal right to
execute, deliver and perform its obligations under this Trust Agreement and has
taken all

 

38

 

necessary action to authorize
the execution, delivery and performance by it of this Trust Agreement;

 

(e)                                  this
Trust Agreement has been duly authorized, executed and delivered by the
Property Trustee and the Delaware Trustee and constitutes the legal, valid and
binding agreement of each of the Property Trustee and the Delaware Trustee
enforceable against each of them in accordance with its terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
generally and to general principles of equity;

 

(f)                                    the
execution, delivery and performance of this Trust Agreement have been duly
authorized by all necessary corporate or other action on the part of the
Property Trustee and the Delaware Trustee and do not require any approval of
stockholders of the Property Trustee and the Delaware Trustee and such
execution, delivery and performance will not (i) violate the Articles of
Association or By-laws of the Property Trustee or the Delaware Trustee or (ii)
violate any applicable law, governmental rule or regulation of the United
States or the State of Delaware, as the case may be, governing the banking,
trust or general powers of the Property Trustee or the Delaware Trustee or any
order, judgment or decree applicable to the Property Trustee or the Delaware
Trustee;

 

(g)                                 neither
the authorization, execution or delivery by the Property Trustee or the
Delaware Trustee of this Trust Agreement nor the consummation of any of the
transactions by the Property Trustee or the Delaware Trustee contemplated
herein requires the consent or approval of, the giving of notice to, the
registration with or the taking of any other action with respect to any
governmental authority or agency under any existing law of the United States or
the State of Delaware governing the banking, trust or general powers of the
Property Trustee or the Delaware Trustee, as the case may be; and

 

(h)                                 to
the best of each of the Property Trustee’s and the Delaware Trustee’s
knowledge, there are no proceedings pending or threatened against or affecting
the Property Trustee or the Delaware Trustee in any court or before any
governmental authority, agency or arbitration board or tribunal that,
individually or in the aggregate, would materially and adversely affect the
Trust or would question the right, power and authority of the Property Trustee
or the Delaware Trustee, as the case may be, to enter into or perform its
obligations as one of the Trustees under this Trust Agreement.

 

SECTION 7.2.                       Representations and Warranties of
Depositor.

 

The Depositor hereby represents
and warrants for the benefit of the Holders that:

 

(a)                                  the
Depositor is a corporation duly organized, validly existing and in good
standing under the laws of its state of incorporation;

 

(b)                                 the
Depositor has full corporate power, authority and legal right to execute,
deliver and perform its obligations under this Trust Agreement and has taken
all necessary action to authorize the execution, delivery and performance by it
of this Trust Agreement;

 

(c)                                  this
Trust Agreement has been duly authorized, executed and delivered by the
Depositor and constitutes the legal, valid and binding agreement of the
Depositor enforceable

 

39

 

against the Depositor in
accordance with its terms, subject to applicable bankruptcy, insolvency and
similar laws affecting creditors’ rights generally and to general principles of
equity;

 

(d)                                 the
Securities Certificates issued at the Closing Date on behalf of the Trust have
been duly authorized and will have been duly and validly executed, issued and
delivered by the applicable Trustees pursuant to the terms and provisions of,
and in accordance with the requirements of, this Trust Agreement and the
Holders will be, as of such date, entitled to the benefits of this Trust
Agreement;

 

(e)                                  the
execution, delivery and performance of this Trust Agreement have been duly
authorized by all necessary corporate or other action on the part of the
Depositor and do not require any approval of stockholders of the Depositor and
such execution, delivery and performance will not (i) violate the articles or
certificate of incorporation or by-laws (or other organizational documents) of
the Depositor or (ii) violate any applicable law, governmental rule or
regulation governing the Depositor or any material portion of its property or
any order, judgment or decree applicable to the Depositor or any material
portion of its property;

 

(f)                                    neither
the authorization, execution or delivery by the Depositor of this Trust
Agreement nor the consummation of any of the transactions by the Depositor
contemplated herein requires the consent or approval of, the giving of notice
to, the registration with or the taking of any other action with respect to any
governmental authority or agency under any existing law governing the Depositor
or any material portion of its property; and

 

(g)                                 there
are no proceedings pending or, to the best of the Depositor’s knowledge,
threatened against or affecting the Depositor or any material portion of its
property in any court or before any governmental authority, agency or arbitration
board or tribunal that, individually or in the aggregate, would materially and
adversely affect the Trust or would question the right, power and authority of
the Depositor, as the case may be, to enter into or perform its obligations
under this Trust Agreement.

 

ARTICLE VIII.

 

The Trustees

 

SECTION 8.1.                       Number of Trustees.

 

The number of Trustees shall be
five (5), provided, that the Property Trustee and the Delaware Trustee may be
the same Person, in which case the number of Trustees shall be four (4).  The number of Trustees may be increased or
decreased by Act of the Holder of the Common Securities subject to Sections
8.2, 8.3, and 8.4. 
The death, resignation, retirement, removal, bankruptcy, incompetence or
incapacity to perform the duties of an Trustee shall not operate to annul,
dissolve or terminate the Trust.

 

SECTION 8.2.                       Property Trustee Required.

 

There shall at all times be a
Property Trustee hereunder with respect to the Trust Securities. The Property
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,

 

40

 

having a combined capital and
surplus of at least fifty million dollars ($50,000,000), subject to supervision
or examination by federal or state authority and having an office within the
United States.  If any such Person
publishes reports of condition at least annually pursuant to law or to the
requirements of its supervising or examining authority, then for the purposes
of this Section 8.2, the combined capital and surplus of such
Person 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 Property
Trustee shall cease to be eligible in accordance with the provisions of this Section 8.2,
it shall resign immediately in the manner and with the effect hereinafter
specified in this Article VIII.

 

SECTION 8.3.                       Delaware Trustee Required.

 

(a)                                  If
required by the Delaware Statutory Trust Act, there shall at all times be a
Delaware Trustee with respect to the Trust Securities. The Delaware Trustee
shall either be (i) a natural person who is at least 21 years of age and a
resident of the State of Delaware or (ii) a legal entity that has its principal
place of business in the State of Delaware, otherwise meets the requirements of
applicable Delaware law and shall act through one or more persons authorized to
bind such entity.  If at any time the
Delaware Trustee shall cease to be eligible in accordance with the provisions
of this Section 8.3, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article VIII.

 

(b)                                 The
Delaware Trustee shall not be entitled to exercise any powers, nor shall the
Delaware Trustee have any of the duties and responsibilities, of the Property
Trustee or the Administrative Trustees set forth herein. The Delaware Trustee
shall be one of the trustees of the Trust for the sole and limited purpose of
fulfilling the requirements of Section 3807 of the Delaware Statutory Trust Act
and for taking such actions as are required to be taken by a Delaware trustee
under the Delaware Statutory Trust Act. 
The duties (including fiduciary duties), liabilities and obligations of
the Delaware Trustee shall be limited to (a) accepting legal process served on
the Trust in the State of Delaware and (b) the execution of any certificates
required to be filed with the Secretary of State of the State of Delaware that
the Delaware Trustee is required to execute under Section 3811 of the Delaware
Statutory Trust Act and there shall be no other duties (including fiduciary
duties) or obligations, express or implied, at law or in equity, of the
Delaware Trustee.

 

SECTION 8.4.                       Appointment of Administrative
Trustees.

 

(a)                                  There
shall at all times be one or more Administrative Trustees hereunder with
respect to the Trust Securities. Each Administrative Trustee shall be either a
natural person who is at least 21 years of age or a legal entity that shall act
through one or more persons authorized to bind that entity.  Each of the individuals identified as an
“Administrative Trustee” in the preamble of this Trust Agreement hereby accepts
his or her appointment as such.

 

(b)                                 Except
where a requirement for action by a specific number of Administrative Trustees
is expressly set forth in this Trust Agreement, any act required or permitted
to be taken by, and any power of the Administrative Trustees may be exercised
by, or with the consent of, any one such Administrative Trustee.  Whenever a vacancy in the number of
Administrative Trustees shall occur, until such vacancy is filled by the
appointment of an Administrative Trustee

 

41

 

in accordance with Section
8.11, the Administrative Trustees in office, regardless of their number
(and notwithstanding any other provision of this Trust Agreement), shall have
all the powers granted to the Administrative Trustees and shall discharge all
the duties imposed upon the Administrative Trustees by this Trust Agreement.

 

SECTION 8.5.                       Duties and Responsibilities of the
Trustees.

 

(a)                                  The
rights, immunities, duties and responsibilities of the Trustees shall be as
provided by this Trust Agreement and there shall be no other duties (including
fiduciary duties) or obligations, express or implied, at law or in equity, of
the Trustees; provided, however, that if an Event of Default known to the
Property Trustee has occurred and is continuing, the Property Trustee shall,
prior to the receipt of directions, if any, from the Holders of at least a
Majority in Liquidation Amount of the Preferred Securities, exercise such of
the rights and powers vested in it by the 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.  Notwithstanding the foregoing, no provision
of this Trust Agreement shall require any of the Trustees 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 or their rights or
powers, if it or they 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 herein expressly so provided,
every provision of this Trust Agreement relating to the conduct or affecting
the liability of or affording protection to the Trustees shall be subject to
the provisions of this Section 8.5. To the extent that, at law or in
equity, a Trustee has duties and liabilities relating to the Trust or to the
Holders, such Trustee shall not be liable to the Trust or to any Holder for
such Trustee’s good faith reliance on the provisions of this Trust Agreement.
The provisions of this Trust Agreement, to the extent that they restrict the
duties and liabilities of the Trustees otherwise existing at law or in equity,
are agreed by the Depositor and the Holders to replace such other duties and
liabilities of the Trustees.

 

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

 

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

 

(i)                                     the Property
Trustee shall not be liable for any error of judgment made in good faith by an
authorized officer of the Property Trustee, unless it shall be proved that

 

42

 

the
Property Trustee was negligent in ascertaining the pertinent facts upon which
such judgment was made;

 

(ii)                                  the Property
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of at
least a Majority in Liquidation Amount of the Preferred Securities relating to
the time, method and place of conducting any proceeding for any remedy
available to the Property Trustee hereunder or under the Indenture, or
exercising any trust or power conferred upon the Property Trustee under this
Trust Agreement;

 

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

 

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

 

(v)                                 the Property
Trustee shall not be responsible for monitoring the compliance by the
Administrative Trustees or the Depositor with their respective duties under
this Trust Agreement, nor shall the Property Trustee be liable for the default
or misconduct of any other Trustee or the Depositor.

 

SECTION 8.6.                       Notices of Defaults and Extensions.

 

(a)                                  Within
ninety (90) days after the occurrence of a default actually known to the
Property Trustee, the Property Trustee shall transmit notice of such default to
the Holders, the Administrative Trustees and the Depositor, 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
(including any Additional Interest) on any Trust Security, the Property Trustee
shall be fully protected in withholding such 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 Property Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders of the Trust
Securities.  For the purpose of this Section
8.6, the term “default” means any event that is, or after notice or lapse
of time or both would become, an Event of Default.

 

(b)                                 Within
five (5) Business Days after the receipt of notice of the Depositor’s exercise
of its right to defer the payment of interest on the Notes pursuant to the
Indenture, the Property Trustee shall transmit, in the manner and to the extent
provided in Section 10.8, notice of such exercise to the Holders and the
Administrative Trustees, unless such exercise shall have been revoked.

 

(c)                                  The
Property Trustee shall not be deemed to have knowledge of any Event of Default
unless the Property Trustee shall have received written notice thereof from the

 

43

 

Depositor, any Administrative
Trustee or any Holder or unless an officer of the Property Trustee charged with
the administration of this Trust Agreement shall have obtained actual knowledge
of such Event of Default.

 

(d)                                 The
Property Trustee shall notify all Holders of the Preferred Securities of any
notice of default received with respect to the Notes.

 

SECTION 8.7.                       Certain Rights of Property Trustee.

 

Subject to the provisions of Section
8.5:

 

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

 

(b)                                 if
(i) in performing its duties under this Trust Agreement the Property Trustee is
required to decide between alternative courses of action, (ii) in construing
any of the provisions of this Trust Agreement the Property Trustee finds a
provision ambiguous or inconsistent with any other provisions contained herein
or (iii) the Property Trustee is unsure of the application of any provision of
this Trust Agreement, then, except as to any matter as to which the Holders of
the Preferred Securities are entitled to vote under the terms of this Trust
Agreement, the Property Trustee shall deliver a notice to the Depositor
requesting the Depositor’s written instruction as to the course of action to be
taken and the Property Trustee shall take such action, or refrain from taking
such action, as the Property Trustee shall be instructed in writing to take, or
to refrain from taking, by the Depositor; provided, that if the Property
Trustee does not receive such instructions of the Depositor within ten (10)
Business Days after it has delivered such notice or such reasonably shorter period
of time set forth in such notice, the Property Trustee may, but shall be under
no duty to, take such action, or refrain from taking such action, as the
Property Trustee shall deem advisable and in the best interests of the Holders,
in which event the Property Trustee shall have no liability except for its own
negligence, bad faith or willful misconduct;

 

(c)                                  any
direction or act of the Depositor contemplated by this Trust Agreement shall be
sufficiently evidenced by an Officers’ Certificate unless otherwise expressly
provided herein;

 

(d)                                 any
direction or act of an Administrative Trustee contemplated by this Trust
Agreement shall be sufficiently evidenced by a certificate executed by such
Administrative Trustee and setting forth such direction or act;

 

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

 

(f)                                    the
Property Trustee may consult with counsel (which counsel may be counsel to the
Property Trustee, the Depositor or any of its Affiliates, and may include any
of its

 

44

 

employees) and the advice of
such counsel shall be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon and in accordance with such advice; the Property Trustee shall
have the right at any time to seek instructions concerning the administration
of this Trust Agreement from any court of competent jurisdiction;

 

(g)                                 the
Property Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Trust Agreement at the request or direction of any
of the Holders pursuant to this Trust Agreement, unless such Holders shall have
offered to the Property Trustee reasonable security or indemnity 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 Property
Trustee;

 

(h)                                 the
Property Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, approval, bond, debenture,
note or other evidence of indebtedness or other paper or document, unless
requested in writing to do so by one or more Holders, but the Property Trustee
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Property Trustee shall determine to make such inquiry
or investigation, it shall be entitled to examine the books, records and
premises of the Depositor, personally or by agent or attorney;

 

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

 

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

 

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

 

(l)                                     without
prejudice to any other rights available to the Property Trustee under
applicable law, when the Property Trustee incurs expenses or renders services
in connection with a Bankruptcy Event, 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 law or
law relating to creditors rights generally; and

 

45

 

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

 

No provision of this Trust
Agreement shall be deemed to impose any duty or obligation on any Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it, in any jurisdiction in which it shall be illegal,
or in which such Person shall be unqualified or incompetent in accordance with
applicable law, to perform any such act or acts, or to exercise any such right,
power, duty or obligation.

 

SECTION 8.8.                       Delegation of Power.

 

Any Trustee may, by power of
attorney consistent with applicable law, delegate to any other natural person
over the age of 21 its, his or her power for the purpose of executing any
documents contemplated in Section 2.5. 
The Trustees shall have power to delegate from time to time to such of
their number or to the Depositor the doing of such things and the execution of
such instruments either in the name of the Trust or the names of the Trustees
or otherwise as the Trustees may deem expedient, to the extent such delegation
is not prohibited by applicable law or contrary to the provisions of this Trust
Agreement.

 

SECTION 8.9.                       May Hold Securities.

 

Any Trustee or any other agent
of any Trustee or the Trust, in its individual or any other capacity, may
become the owner or pledgee of Trust Securities and except as provided in the
definition of the term “Outstanding” in Article I, may otherwise deal
with the Trust with the same rights it would have if it were not an Trustee or
such other agent.

 

SECTION 8.10.                 Compensation; Reimbursement;
Indemnity.

 

The Depositor agrees:

 

(a)                                  to
pay to the Trustees from time to time such reasonable compensation for all
services rendered by them hereunder as may be agreed by the Depositor and the
Trustees 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);

 

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

 

(c)                                  to
the fullest extent permitted by applicable law, to indemnify and hold harmless
(i) each Trustee, (ii) any Affiliate of any Trustee, (iii) any officer,
director, shareholder, employee, representative or agent of any Trustee or any
Affiliate of any Trustee and (iv) any employee or agent of the Trust (referred
to herein as an “Indemnified Person”) from and against

 

46

 

any loss, damage, liability,
tax (other than income, franchise or other taxes imposed on amounts paid
pursuant to Section 8.10(a) or (b) 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 the Trust hereunder, including the advancement
of funds to cover the reasonable 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.

 

The Trust shall have no
payment, reimbursement or indemnity obligations to the Trustees under this Section
8.10.  The provisions of this Section
8.10 shall survive the termination of this Trust Agreement and the earlier
removal or resignation of any Trustee.

 

No Trustee may claim any Lien
on any Trust Property whether before or after termination of the Trust as a
result of any amount due pursuant to this Section 8.10.

 

In no event shall the Property
Trustee and the Delaware 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.

 

In no event shall the Property
Trustee and the Delaware 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 Trust Agreement.

 

SECTION 8.11.                 Resignation and Removal; Appointment of
Successor.

 

(a)                                  No
resignation or removal of any Trustee and no appointment of a successor Trustee
pursuant to this Article VIII shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 8.12.

 

(b)                                 A
Trustee may resign at any time by giving written notice thereof to the
Depositor and, in the case of the Property Trustee and the Delaware Trustee, to
the Holders.

 

(c)                                  Unless
an Event of Default shall have occurred and be continuing, the Property Trustee
or the Delaware Trustee, or both of them, may be removed (with or without
cause) at any time by Act of the Holder of Common Securities.  If an Event of Default shall have occurred
and be continuing, the Property Trustee or the Delaware Trustee, or both of
them, may be removed (with or without cause) at such time by Act of the Holders
of at least a Majority in Liquidation Amount of the Preferred Securities, delivered
to the removed Trustee (in its individual capacity and on behalf of the
Trust).  An Administrative Trustee may
be removed (with or without cause) only by Act of the Holder of the Common
Securities at any time.

 

(d)                                 If
any Trustee shall resign, be removed or become incapable of acting as Trustee,
or if a vacancy shall occur in the office of any Trustee for any reason, at a
time when no Event of Default shall have occurred and be continuing, the Holder
of the Common Securities, by Act of

 

47

 

the Holder of the Common
Securities, shall promptly appoint a successor Trustee or Trustees, and such
successor Trustee and the retiring Trustee shall comply with the applicable
requirements of Section 8.12.  If
the Property Trustee or the Delaware Trustee shall resign, be removed or become
incapable of continuing to act as the Property Trustee or the Delaware Trustee,
as the case may be, at a time when an Event of Default shall have occurred and
be continuing, the Holders of the Preferred Securities, by Act of the Holders
of a Majority in Liquidation Amount of the Preferred Securities, shall promptly
appoint a successor Property Trustee or Delaware Trustee, and such successor
Property Trustee or Delaware Trustee and the retiring Property Trustee or
Delaware Trustee shall comply with the applicable requirements of Section
8.12.  If an Administrative Trustee
shall resign, be removed or become incapable of acting as Administrative
Trustee, at a time when an Event of Default shall have occurred and be
continuing, the Holder of the Common Securities by Act of the Holder of Common
Securities shall promptly appoint a successor Administrative Trustee and such
successor Administrative Trustee and the retiring Administrative Trustee shall
comply with the applicable requirements of Section 8.12.  If no successor Trustee shall have been so
appointed by the Holder of the Common Securities or Holders of the Preferred
Securities, as the case may be, and accepted appointment in the manner required
by Section 8.12 within thirty (30) days after the giving of a notice of
resignation by a Trustee, the removal of a Trustee, or a Trustee becoming
incapable of acting as such Trustee, any Holder who has been a Holder of
Preferred Securities for at least six (6) months may, on behalf of himself and
all others similarly situated, and any resigning Trustee may, in each case, at
the expense of the Depositor, petition any court of competent jurisdiction for
the appointment of a successor Trustee.

 

(e)                                  The
Depositor shall give notice of each resignation and each removal of the
Property Trustee or the Delaware Trustee and each appointment of a successor
Property Trustee or Delaware Trustee to all Holders in the manner provided in Section
10.8.  Each notice shall include the
name of the successor Property Trustee or Delaware Trustee and the address of
its Corporate Trust Office if it is the Property Trustee.

 

(f)                                    Notwithstanding
the foregoing or any other provision of this Trust Agreement, in the event any Administrative
Trustee or a Delaware Trustee who is a natural person dies or becomes, in the
opinion of the Holder of Common Securities, incompetent or incapacitated, the
vacancy created by such death, incompetence or incapacity may be filled by (i)
the unanimous act of the remaining Administrative Trustees if there are at
least two of them or (ii) otherwise by the Holder of the Common Securities
(with the successor in each case being a Person who satisfies the eligibility
requirement for Administrative Trustees or Delaware Trustee, as the case may
be, set forth in Sections 8.3 and 8.4).

 

(g)                                 Upon
the appointment of a successor Delaware Trustee, such successor Delaware
Trustee shall file a Certificate of Amendment to the Certificate of Trust in
accordance with Section 3810 of the Delaware Statutory Trust Act.

 

SECTION 8.12.                 Acceptance of Appointment by
Successor.

 

(a)                                  In
case of the appointment hereunder of a successor Trustee, each successor
Trustee shall execute and deliver to the Depositor and to the retiring Trustee
an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Trustee

 

48

 

shall become effective and each
such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on request of the Trust or any successor Trustee such retiring
Trustee shall, upon payment of its charges, duly assign, transfer and deliver to
such successor Trustee all Trust Property, all proceeds thereof and money held
by such retiring Trustee hereunder with respect to the Trust Securities and the
Trust.

 

(b)                                 Upon
request of any such successor Trustee, the Trust (or the retiring Trustee if requested
by the Depositor) shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts referred to in the preceding paragraph.

 

(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
VIII.

 

SECTION 8.13.                 Merger,
Conversion, Consolidation or Succession to Business.

 

Any Person into which the
Property Trustee or the Delaware 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 such Trustee shall be a party, or any
Person succeeding to all or substantially all the corporate trust business of
such Trustee, shall be the successor of such 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 VIII.

 

SECTION 8.14.                 Not Responsible for Recitals or
Issuance of Securities.

 

The recitals contained herein
and in the Securities Certificates shall be taken as the statements of the
Trust and the Depositor, and the Trustees do not assume any responsibility for
their correctness.  The Trustees make no
representations as to the title to, or value or condition of, the property of
the Trust or any part thereof, nor as to the validity or sufficiency of this
Trust Agreement, the Notes or the Trust Securities.  The Trustees shall not be accountable for the use or application
by the Depositor of the proceeds of the Notes.

 

SECTION 8.15.                 Property Trustee May File Proofs of
Claim.

 

(a)                                  In
case of any Bankruptcy Event (or event that with the passage of time would
become a Bankruptcy Event) relative to the Trust or any other obligor upon the
Trust Securities or the property of the Trust or of such other obligor or their
creditors, the Property Trustee (irrespective of whether any Distributions on
the Trust Securities shall then be due and payable and irrespective of whether
the Property Trustee shall have made any demand on the Trust for the payment of
any past due Distributions) shall be entitled and empowered, to the fullest
extent permitted by law, by intervention in such proceeding or otherwise:

 

(i)                                     to file and
prove a claim for the whole amount of any Distributions owing and unpaid in
respect of the Trust Securities and to file such other papers or documents as
may be necessary or advisable in order to have the claims of the Property
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and

 

49

 

advances
of the Property Trustee, its agents and counsel) and of the Holders allowed in
such judicial proceeding; and

 

(ii)                                  to collect and
receive any monies 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
proceeding is hereby authorized by each Holder to make such payments to the
Property Trustee and, in the event the Property Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Property Trustee
first any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Property Trustee, its agents and counsel, and
any other amounts due the Property Trustee.

 

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

 

SECTION 8.16.                 Reports to and from the Property
Trustee.

 

(a)                                  The
Depositor and the Administrative Trustees shall deliver to the Property
Trustee, not later than sixty (60) days after the end of each of the first
three fiscal quarters of the Depositor and not later than one hundred twenty
(120) days after the end of each fiscal year of the Trust ending after the date
of this Trust Agreement, an Officers’ Certificate covering the preceding fiscal
period, stating whether or not to the knowledge of the signers thereof the
Depositor and the Trust are in default in the performance or observance of any
of the terms, provisions and conditions of this Trust Agreement (without regard
to any period of grace or requirement of notice provided hereunder) and, if the
Depositor or the Trust shall be in default, specifying all such defaults and
the nature and status thereof of which they have knowledge.

 

(b)                                 The
Depositor shall furnish to Trapeza Manager, Inc. (at 507 Carew Tower, 441 Vine
Street, Cincinnati, Ohio 45202, or such other address as designated by Trapeza
Manager, Inc.) a duly completed and executed certificate in the form attached
hereto as Exhibit G, including the financial statements referenced in such
Exhibit, which certificate and financial statements shall be so furnished by
the Depositor not later than forty five (45) days after the end of each of the
first three fiscal quarters of each fiscal year of the Depositor and not later
than ninety (90) days after the end of each fiscal year of the Depositor.

 

(c)                                  The
Property Trustee shall obtain all reports, certificate and information, which
it is entitled to obtain under each of the Operative Documents.

 

50

 

ARTICLE IX.

 

Termination,
Liquidation and Merger

 

SECTION 9.1.                       Dissolution Upon Expiration Date.

 

Unless earlier dissolved, the
Trust shall automatically dissolve on September 15, 2038 (the “Expiration
Date”), and the Trust Property shall be liquidated in accordance with Section
9.4.

 

SECTION 9.2.                       Early Termination.

 

The first to occur of any of
the following events is an “Early Termination Event”, upon the occurrence of
which the Trust shall be dissolved:

 

(a)                                  the
occurrence of a Bankruptcy Event in respect of, or the dissolution or
liquidation of, the Depositor, in its capacity as the Holder of the Common
Securities, unless the Depositor shall have transferred the Common Securities
as provided by Section 5.11, in which case this provision shall refer
instead to any such successor Holder of the Common Securities;

 

(b)                                 the
written direction to the Property Trustee from the Holder of the Common
Securities at any time to dissolve the Trust and, after satisfaction of any
liabilities of the Trust as required by applicable law, to distribute the Notes
to Holders in exchange for the Preferred Securities (which direction is
optional and wholly within the discretion of the Holder of the Common
Securities), provided, that the Holder of the Common Securities shall have
received the prior approval of the Federal Reserve if then required;

 

(c)                                  the
redemption of all of the Preferred Securities in connection with the payment at
maturity or redemption of all the Notes; and

 

(d)                                 the
entry of an order for dissolution of the Trust by a court of competent
jurisdiction.

 

SECTION 9.3.                       Termination.

 

The respective obligations and
responsibilities of the Trustees and the Trust shall terminate upon the latest
to occur of the following: (a) the distribution by the Property Trustee to
Holders of all amounts required to be distributed hereunder upon the
liquidation of the Trust pursuant to Section 9.4, or upon the redemption
of all of the Trust Securities pursuant to Section 4.2; (b) the
satisfaction of any expenses owed by the Trust; and (c) the discharge of all
administrative duties of the Administrative Trustees, including the performance
of any tax reporting obligations with respect to the Trust or the Holders.

 

SECTION 9.4.                       Liquidation.

 

(a)                                  If
an Early Termination Event specified in Section 9.2(a), (b) or (d)
occurs or upon the Expiration Date, the Trust shall be liquidated by the
Property Trustee as expeditiously as the Property Trustee shall determine to be
possible by distributing, after satisfaction of

 

51

 

liabilities to creditors of the
Trust as provided by applicable law, to each Holder a Like Amount of Notes,
subject to Section 9.4(d). Notice of liquidation shall be given by the
Property Trustee not less than thirty (30) nor more than sixty (60) days prior
to the Liquidation Date to each Holder of Trust Securities at such Holder’s
address appearing in the Securities Register. All such notices of liquidation
shall:

 

(i)                                     state the
Liquidation Date;

 

(ii)                                  state that from
and after the Liquidation Date, the Trust Securities will no longer be deemed
to be Outstanding and (subject to Section 9.4(d)) any Securities
Certificates not surrendered for exchange will be deemed to represent a Like
Amount of Notes; and

 

(iii)                               provide such
information with respect to the mechanics by which Holders may exchange
Securities Certificates for Notes, or if Section 9.4(d) applies, receive
a Liquidation Distribution, as the Property Trustee shall deem appropriate.

 

(b)                                 Except
where Section 9.2(c) or 9.4(d) applies, in order to effect the
liquidation of the Trust and distribution of the Notes to Holders, the Property
Trustee, either itself acting as exchange agent or through the appointment of a
separate exchange agent, shall establish a record date for such distribution
(which shall not be more than forty-five (45) days prior to the Liquidation
Date nor prior to the date on which notice of such liquidation is given to the
Holders) and establish such procedures as it shall deem appropriate to effect
the distribution of Notes in exchange for the Outstanding Securities
Certificates.

 

(c)                                  Except
where Section 9.2(c) or 9.4(d) applies, after the Liquidation
Date, (i) the Trust Securities will no longer be deemed to be Outstanding, (ii)
certificates representing a Like Amount of Notes will be issued to Holders of
Securities Certificates, upon surrender of such Certificates to the exchange
agent for exchange, (iii) the Depositor shall use its best efforts to have the
Notes listed on the New York Stock Exchange or on such other exchange,
interdealer quotation system or self-regulatory organization on which the
Preferred Securities are then listed, if any, (iv) Securities Certificates not
so surrendered for exchange will be deemed to represent a Like Amount of Notes
bearing accrued and unpaid interest in an amount equal to the accumulated and
unpaid Distributions on such Securities Certificates until such certificates
are so surrendered (and until such certificates are so surrendered, no payments
of interest or principal will be made to Holders of Securities Certificates
with respect to such Notes) and (v) all rights of Holders holding Trust
Securities will cease, except the right of such Holders to receive Notes upon
surrender of Securities Certificates.

 

(d)                                 Notwithstanding
the other provisions of this Section 9.4, if distribution of the Notes
in the manner provided herein is determined by the Property Trustee not to be
permitted or practical, the Trust Property shall be liquidated, and the Trust
shall be wound up by the Property Trustee in such manner as the Property
Trustee determines.  In such event,
Holders will be entitled to receive out of the assets of the Trust available
for distribution to Holders, after satisfaction of liabilities to creditors of
the Trust as provided by applicable law, an amount equal to the Liquidation
Amount per Trust Security plus accumulated and unpaid Distributions thereon to
the date of payment (such amount being the “Liquidation Distribution”). If,
upon any such

 

52

 

winding up the Liquidation
Distribution can be paid only in part because the Trust has insufficient assets
available to pay in full the aggregate Liquidation Distribution, then, subject
to the next succeeding sentence, the amounts payable by the Trust on the Trust
Securities shall be paid on a pro rata basis (based upon Liquidation Amounts).
The Holder of the Common Securities will be entitled to receive Liquidation
Distributions upon any such winding up pro rata (based upon Liquidation
Amounts) with Holders of all Trust Securities, except that, if an Event of
Default has occurred and is continuing, the Preferred Securities shall have a
priority over the Common Securities as provided in Section 4.3.

 

SECTION 9.5.                       Mergers,
Consolidations, Amalgamations or Replacements of Trust.

 

The Trust may not merge with or
into, consolidate, amalgamate, or be replaced by, or convey, transfer or lease
its properties and assets substantially as an entirety to, any Person except
pursuant to this Article IX. At the request of the Holders of the Common
Securities, without the consent of the Holders of the Preferred Securities, the
Trust may merge with or into, consolidate, amalgamate, or be replaced by or
convey, transfer or lease its properties and assets substantially as an
entirety to a trust organized as such under the laws of any State; provided,
that:

 

(a)                                  such
successor entity either (i) expressly assumes all of the obligations of the
Trust under this Trust Agreement with respect to the Preferred Securities or
(ii) substitutes for the Preferred Securities other securities having
substantially the same terms as the Preferred Securities (such other
Securities, the “Successor Securities”) so long as the Successor Securities
have the same priority as the Preferred Securities with respect to
distributions and payments upon liquidation, redemption and otherwise;

 

(b)                                 a
trustee of such successor entity possessing substantially the same powers and
duties as the Property Trustee is appointed to hold the Notes;

 

(c)                                  if
the Preferred Securities or the Notes are rated, such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not cause the
Preferred Securities or the Notes (including any Successor Securities) to be
downgraded by any nationally recognized statistical rating organization that
then assigns a rating to the Preferred Securities or the Notes;

 

(d)                                 the
Preferred Securities are listed, or any Successor Securities will be listed
upon notice of issuance, on any national securities exchange or interdealer
quotation system on which the Preferred Securities are then listed, if any;

 

(e)                                  such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and privileges of the Holders
of the Preferred Securities (including any Successor Securities) in any
material respect;

 

(f)                                    such
successor entity has a purpose substantially identical to that of the Trust;

 

(g)                                 prior
to such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease, the Depositor has received an Opinion of Counsel to the effect that
(i) such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease does not adversely affect the rights, preferences and privileges of
the Holders of the Preferred Securities

 

53

 

(including any Successor
Securities) in any material respect; (ii) following such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease, neither the Trust nor
such successor entity will be required to register as an “investment company”
under the Investment Company Act and (iii) following such merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease, the
Trust (or the successor entity) will continue to be classified as a grantor
trust for U.S. federal income tax purposes; and

 

(h)                                 the
Depositor or its permitted transferee owns all of the common securities of such
successor entity and guarantees the obligations of such successor entity under
the Successor Securities at least to the extent provided by the Guarantee
Agreement.

 

Notwithstanding the foregoing, the Trust
shall not, except with the consent of Holders of all of the Preferred
Securities, consolidate, amalgamate, merge with or into, or be replaced by or
convey, transfer or lease its properties and assets substantially as an
entirety to any other Person or permit any other entity to consolidate,
amalgamate, merge with or into, or replace, the Trust if such consolidation,
amalgamation, merger, replacement, conveyance, transfer or lease would cause
the Trust or the successor entity to be taxable as a corporation or classified
as other than a grantor trust for United States federal income tax purposes or
cause the Notes to be treated as other than indebtedness of the Depositor for
United States federal income tax purposes.

 

ARTICLE X.

 

Miscellaneous
Provisions

 

SECTION 10.1.                 Limitation of Rights of Holders.

 

Except as set forth in Section
9.2, the death, bankruptcy, termination, dissolution or incapacity of any
Person having an interest, beneficial or otherwise, in Trust Securities shall
not operate to terminate this Trust Agreement, nor annul, dissolve or terminate
the Trust nor entitle the legal representatives or heirs of such Person or any
Holder for such Person, to claim an accounting, take any action or bring any
proceeding in any court for a partition or winding up of the arrangements
contemplated hereby, nor otherwise affect the rights, obligations and
liabilities of the parties hereto or any of them.

 

SECTION 10.2.                 Agreed Tax Treatment of Trust and Trust
Securities.

 

The parties hereto and, by its
acceptance or acquisition of a Trust Security or a beneficial interest therein,
the Holder of, and any Person that acquires a beneficial interest in, such
Trust Security intend and agree to treat the Trust as a grantor trust for
United States federal, state and local tax purposes, and to treat the Trust
Securities (including all payments and proceeds with respect to such Trust
Securities) as undivided beneficial ownership interests in the Trust Property
(and payments and proceeds therefrom, respectively) for United States federal,
state and local tax purposes.  The
provisions of this Trust Agreement shall be interpreted to further this
intention and agreement of the parties.

 

54

 

SECTION 10.3.                 Amendment.

 

(a)                                  This
Trust Agreement may be amended from time to time by the Property Trustee, the
Administrative Trustees and the Holder of all the Common Securities, without
the consent of any Holder of the Preferred Securities, (i) to cure any
ambiguity, 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 Trust Agreement, which
shall not be inconsistent with the other provisions of this Trust Agreement,
(ii) to modify, eliminate or add to any provisions of this Trust Agreement to
such extent as shall be necessary to ensure that the Trust will neither be
taxable as a corporation nor be classified as other than a grantor trust for
United States federal income tax purposes at all times that any Trust
Securities are Outstanding or to ensure that the Notes are treated as
indebtedness of the Depositor for United States federal income tax purposes, or
to ensure that the Trust will not be required to register as an “investment
company” under the Investment Company Act or (iii) to add to the covenants,
restrictions or obligations of the Depositor; provided, that in the case of
clauses (i), (ii) or (iii), such action shall not adversely affect in any
material respect the interests of any Holder.

 

(b)                                 Except
as provided in Section 10.3(c), any provision of this Trust Agreement
may be amended by the Property Trustee, the Administrative Trustees and the
Holder of all of the Common Securities and with (i) the consent of Holders of
at least a Majority in Liquidation Amount of the Preferred Securities and (ii)
receipt by the Trustees of an Opinion of Counsel to the effect that such
amendment or the exercise of any power granted to the Trustees in accordance
with such amendment will not cause the Trust to be taxable as a corporation or
classified as other than a grantor trust for United States federal income tax
purposes or affect the treatment of the Notes as indebtedness of the Depositor
for United States federal income tax purposes or affect the Trust’s exemption from
status (or from any requirement to register) as an “investment company” under
the Investment Company Act.

 

(c)                                  Notwithstanding
any other provision of this Trust Agreement, without the consent of each
Holder, this Trust Agreement may not be amended to (i) change the accrual rate,
amount, currency or timing of any Distribution on or the redemption price of
the Trust Securities or otherwise adversely affect the amount of any
Distribution or other payment required to be made in respect of the Trust Securities
as of a specified date, (ii) restrict or impair the right of a Holder to
institute suit for the enforcement of any such payment on or after such date,
(iii) reduce the percentage of aggregate Liquidation Amount of Outstanding
Preferred Securities, the consent of whose Holders is required for any such
amendment, or the consent of whose Holders is required for any waiver of
compliance with any provision of this Trust Agreement or of defaults hereunder
and their consequences provided for in this Trust Agreement; (iv) impair or
adversely affect the rights and interests of the Holders in the Trust Property,
or permit the creation of any Lien on any portion of the Trust Property; or (v)
modify the definition of “Outstanding,” this Section 10.3(c), Sections
4.1, 4.2, 4.3, 6.10(e) or Article IX.

 

(d)                                 Notwithstanding
any other provision of this Trust Agreement, no Trustee shall enter into or
consent to any amendment to this Trust Agreement that would cause the Trust to
be taxable as a corporation or to be classified as other than a grantor trust
for United States federal income tax purposes or that would cause the Notes to
fail or cease to be treated as indebtedness

 

55

 

of the Depositor for United
States federal income tax purposes or that would cause the Trust to fail or
cease to qualify for the exemption from status (or from any requirement to
register) as an “investment company” under the Investment Company Act.

 

(e)                                  If
any amendment to this Trust Agreement is made, the Administrative Trustees or
the Property Trustee shall promptly provide to the Depositor a copy of such
amendment.

 

(f)                                    No
Trustee shall be required to enter into any amendment to this Trust Agreement
that affects its own rights, duties or immunities under this Trust
Agreement.  The Trustees shall be
entitled to receive an Opinion of Counsel and an Officers’ Certificate stating
that any amendment to this Trust Agreement is in compliance with this Trust
Agreement and all conditions precedent herein provided for relating to such
action have been met.

 

(g)                                 No
amendment or modification to this Trust Agreement that adversely affects in any
material respect the rights, duties, liabilities, indemnities or immunities of
the Delaware Trustee hereunder shall be permitted without the prior written
consent of the Delaware Trustee.

 

SECTION 10.4.                 Separability.

 

If any provision in this Trust
Agreement or in the Securities Certificates 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 10.5.                 Governing Law.

 

THIS TRUST AGREEMENT AND THE
RIGHTS AND OBLIGATIONS OF EACH OF THE HOLDERS, THE TRUST, THE DEPOSITOR AND THE
TRUSTEES WITH RESPECT TO THIS TRUST AGREEMENT AND THE TRUST SECURITIES SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE
OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS.

 

SECTION 10.6.                 Successors.

 

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

 

SECTION 10.7.                 Headings.

 

The Article and Section
headings are for convenience only and shall not affect the construction of this
Trust Agreement.

 

56

 

SECTION 10.8.                 Reports, Notices
and Demands.

 

(a)                                  Any
report, notice, demand or other communication that by any provision of this
Trust Agreement is required or permitted to be given or served to or upon any
Holder or the Depositor may be given or served in writing delivered in person,
or by reputable, overnight courier, by telecopy or by deposit thereof,
first-class postage prepaid, in the United States mail, addressed, (a) in the
case of a Holder of Preferred Securities, to such Holder as such Holder’s name
and address may appear on the Securities Register; and (b) in the case of the
Holder of all the Common Securities or the Depositor, to First Community
Bancorp, 120 Wilshire Blvd., Santa Monica, California 90401, Attention: Chief
Financial Officer, or to such other address as may be specified in a written
notice by the Holder of all the Common Securities or the Depositor, as the case
may be, to the Property Trustee. Such report, notice, demand or other
communication to or upon a Holder or the Depositor shall be deemed to have been
given when received in person, within one (1) Business Day following delivery
by overnight courier, when telecopied with receipt confirmed, or within three
(3) Business Days following delivery by mail, except that if a notice or other
document is refused delivery or cannot be delivered because of a changed
address of which no notice was given, such notice or other document shall be
deemed to have been delivered on the date of such refusal or inability to
deliver.

 

(b)                                 Any
notice, demand or other communication that by any provision of this Trust
Agreement is required or permitted to be given or served to or upon the
Property Trustee, the Delaware Trustee, the Administrative Trustees or the
Trust shall be given in writing by deposit thereof, first-class postage
prepaid, in the U.S. mail, personal delivery or facsimile transmission,
addressed to such Person as follows: (a) with respect to the Property Trustee
to The Bank of New York, 101 Barclay Street, New York, New York 10286,
Attention: Corporate Trust Administration, facsimile no. (212) 815-5707; (b)
with respect to the Delaware Trustee, to The Bank of New York (Delaware), White
Clay Center Route 273, Newark, Delaware 19711, Attention: Corporate Trust
Administration, facsimile no. (302) 283-8279; (c) with respect to the
Administrative Trustees, to them at the address above for notices to the
Depositor, marked “Attention: Administrative Trustees of First Community/CA Statutory Trust VI,”
and (d) with respect to the Trust, to its principal executive office specified
in Section 2.2, with a copy to the Property Trustee. Such notice, demand
or other communication to or upon the Trust, the Property Trustee or the
Administrative Trustees shall be deemed to have been sufficiently given or made
only upon actual receipt of the writing by the Trust, the Property Trustee or
the Administrative Trustees.

 

SECTION 10.9.                 Agreement Not to Petition.

 

Each of the Trustees and the
Depositor agree for the benefit of the Holders that, until at least one year
and one day after the Trust has been terminated in accordance with Article
IX, they shall not file, or join in the filing of, a petition against the
Trust under any Bankruptcy Law or otherwise join in the commencement of any
proceeding against the Trust under any Bankruptcy Law. If the Depositor takes
action in violation of this Section 10.9, the Property Trustee agrees,
for the benefit of Holders, that at the expense of the Depositor, it shall file
an answer with the applicable bankruptcy court or otherwise properly contest
the filing of such petition by the Depositor against the Trust or the
commencement of such action and raise the defense that the Depositor has agreed
in writing not to take such action and should be estopped

 

57

 

and precluded therefrom and
such other defenses, if any, as counsel for the Property Trustee or the Trust
may assert.

 

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.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

58

 

IN WITNESS WHEREOF, the parties
hereto have executed this Amended and Restated Trust Agreement as of the day
and year first above written.

 

	
   

  	
   

  	
  [Company],

  as Depositor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  THE BANK OF
  NEW YORK, as

  Property Trustee

  	
   

  	
  THE BANK OF
  NEW YORK (DELAWARE), as

  Delaware Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administrative
  Trustee

  	
   

  	
   

  	
  Administrative
  Trustee

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Administrative
  Trustee

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
								

 

59

 

Exhibit A

 

CERTIFICATE OF TRUST

 

OF

 

First Community/CA Statutory Trust VI

 

This Certificate of Trust of First
Community/CA Statutory Trust VI  (the
“Trust”), dated August 29, 2003, is being duly executed and filed on behalf of
the Trust 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:  First
Community/CA Statutory Trust VI.

 

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: Corporate Trust Administration.

 

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

 

IN WITNESS WHEREOF, the undersigned have duly
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:

  

 

A-1

 

Exhibit B

 

[FORM OF COMMON SECURITIES CERTIFICATE]

 

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

 

	
  Certificate
  Number 

  	
   

  	
   

  	
            Common
  Securities

  
	
  C-

  	
   

  	
   

  	
   

  

 

Certificate Evidencing Common Securities

 

of

 

First Community/CA Statutory Trust VI

 

Floating Rate Common Securities

 

(liquidation amount $1,000 per Common Security)

 

First Community/CA Statutory
Trust VI, a statutory trust created under the laws of the State of Delaware
(the “Trust”), hereby certifies that
                       
(the “Holder”) is the registered owner of
            common
securities of the Trust representing undivided common beneficial interests in
the assets of the Trust and designated the First Community/CA Statutory Trust
VI 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 September 3, 2003, as the same may be
amended from time to time (the “Trust Agreement”), among First Community
Bancorp, 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.

 

B-1

 

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.

 

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

 

	
   

  	
  First Community/CA Statutory Trust VI

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Administrative
  Trustee

  

 

B-2

 

Exhibit C

 

[FORM OF PREFERRED SECURITIES CERTIFICATE]

 

“[IF THIS SECURITY IS A
GLOBAL SECURITY INSERT: THIS PREFERRED SECURITY IS A GLOBAL SECURITY WITHIN
THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC.  THIS PREFERRED SECURITY IS EXCHANGEABLE FOR
PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT, AND
NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED
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 PREFERRED SECURITY
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO FIRST COMMUNITY/CA
STATUTORY TRUST VI OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY PREFERRED 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 PREFERRED 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 PREFERRED SECURITIES OR 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 PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE
PREFERRED 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 PREFERRED
SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE TRUST
AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES MAY BE OFFERED, RESOLD OR
OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST, (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

 

C-1

 

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 TRUST AND THE DEPOSITOR
TO REQUIRE AN OPINION OF COUNSEL AND OTHER INFORMATION SATISFACTORY TO EACH OF
THEM AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES
FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

THE PREFERRED SECURITIES WILL
BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE LIQUIDATION
AMOUNT OF NOT LESS THAN $100,000. ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES
OR ANY INTEREST THEREIN IN A BLOCK HAVING AN AGGREGATE LIQUIDATION 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 PREFERRED SECURITIES FOR ANY PURPOSE,
INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH
PREFERRED SECURITIES OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE
SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED 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 PREFERRED SECURITY OR ANY INTEREST
THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF
AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS
PURCHASE AND HOLDING OF THIS SECURITY OR ANY INTEREST THEREIN IS NOT PROHIBITED
BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH
PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THE PREFERRED SECURITIES OR ANY
INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING
THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING
OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR

 

C-2

 

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

 

THIS 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”).

 

C-3

 

	
  Certificate
  Number

  	
   

  	
            Preferred
  Securities

  
	
   

  	
   

  	
           Aggregate
  Liquidation Amount

  

 

CUSIP NO.

 

 

Certificate Evidencing Preferred Securities

 

of

 

First Community/CA Statutory Trust VI

 

Floating Rate Preferred Securities

(liquidation amount $1,000 per Preferred Security)

 

First Community/CA Statutory
Trust VI, a statutory trust created under the laws of the State of Delaware
(the “Trust”), hereby certifies that
                   
(the “Holder”) is the registered owner of
            Preferred
Securities [if the Preferred Security is a Global Security, then insert—,or
such other number of Preferred Securities represented hereby as may be set
forth in the records of the Securities Registrar hereinafter referred to in
accordance with the Trust Agreement (as defined below), of the Trust
representing an undivided preferred beneficial interest in the assets of the
Trust and designated the First Community/CA Statutory Trust VI Floating Rate
Preferred Securities (liquidation amount $1,000 per Preferred Security) (the
“Preferred Securities”). The Preferred Securities are transferable on the books
and records of the Trust, in person or by a duly authorized attorney, upon
surrender of this certificate duly endorsed and in proper form for transfer as provided
in Section 5.7 of the Trust Agreement (as defined below). The
designations, rights, privileges, restrictions, preferences and other terms and
provisions of the Preferred Securities are set forth in, and this certificate
and the Preferred 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 September 3, 2003, as the same may be
amended from time to time (the “Trust Agreement”), among First Community
Bancorp, a California corporation, 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 Holder is entitled to the benefits of the Guarantee
Agreement entered into by First Community Bancorp and The Bank of New York, as
Guarantee Trustee, dated as of September 3, 2003, as the same may be amended
from time to time (the “Guarantee Agreement”), to the extent provided therein.
The Trust will furnish a copy of each of the Trust Agreement and the Guarantee
Agreement to the Holder without charge upon written request to the Property
Trustee 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.

 

C-4

 

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

 

All capitalized terms used but
not defined in this Preferred Securities Certificate are used with the meanings
specified in the Trust Agreement, including the Schedules and Exhibits thereto.

 

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

 

	
   

  	
  First Community/CA Statutory Trust VI

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Administrative
  Trustee

  

 

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

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  The Bank of
  New York, not in its individual

  capacity, but solely as Property Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  officer

  

 

C-5

 

[FORM OF REVERSE OF SECURITY]

 

The Trust promises to pay
Distributions from September 3, 2003, or from the most recent Distribution Date
to which Distributions have been paid or duly provided for, quarterly (subject
to deferral as set forth herein) in arrears on March 15th, June 15th,
September 15th and December 15th of each year, commencing
on December 15, 2003, at a variable rate per annum equal to LIBOR plus 3.05% of
the Liquidation Amount of the Preferred Securities represented by this Preferred
Securities Certificate, provided, that, the applicable Distribution rate shall
not exceed 12.0% through the Distribution Date in September, 2008, together
with any Additional Interest Amounts, in respect to such period.

 

Distributions on the Trust
Securities shall be made by the Paying Agent from the Payment Account and shall
be payable on each Distribution Date only to the extent that the Trust has
funds then on hand and available in the Payment Account for the payment of such
Distributions.

 

In the event (and to the
extent) that the Depositor exercises its right under the Indenture to defer the
payment of interest on the Notes, Distributions on the Preferred Securities
shall be deferred.

 

Under the Indenture, so long as
no Note Event of Default has occurred and is continuing, the Depositor shall
have the right, at any time and from time to time during the term of the Notes,
to defer the payment of interest on the Notes for a period of up to twenty (20)
consecutive quarterly interest payment periods (each such extended interest
payment period, an “Extension Period”), during which Extension Period no
interest shall be due and payable (except any Additional Tax Sums that may be
due and payable).  No interest on the
Notes 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 rate equal
to LIBOR plus 3.05% per annum (provided, that, the applicable interest rate
shall not exceed 12.0% through the Interest Payment Date in September, 2008),
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.  If
Distributions are deferred, the deferred Distributions (including Additional
Interest Amounts) shall be paid on the date that the related Extension Period
terminates to Holders (as defined in the Trust Agreement) of the Trust
Securities as they appear on the books and records of the Trust on the record
date immediately preceding such termination date.

 

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

 

During any such Extension
Period, the Depositor shall not, unless waived by the requisite holders of the
Preferred Securities and the requisite holders of the Notes in accordance with
the

 

C-6

 

Indenture (i) declare or pay
any dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of the Depositor’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 Depositor that rank pari passu
in all respects with or junior in interest to the Notes (other than (a)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Depositor 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 Depositor (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 Depositor’s capital stock (or any capital stock of a
Subsidiary (as defined in the Indenture) of the Depositor) for any class or
series of the Depositor’s capital stock or of any class or series of the
Depositor’s indebtedness for any class or series of the Depositor’s capital
stock, (c) the purchase of fractional interests in shares of the Depositor’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 (as defined in the Indenture), 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).

 

On each Note Redemption Date,
on the stated maturity (or any date of principal repayment upon early maturity)
of the Notes and on each other date on (or in respect of) which any principal
on the Notes is repaid, the Trust will be required to redeem a Like Amount of
Trust Securities at the Redemption Price. 
Under the Indenture, the Notes may be redeemed by the Depositor on any
Interest Payment Date, at the Depositor’s option, on or after September 15,
2008 in whole or in part from time to time at a redemption price equal to one
hundred percent (100%) of the principal amount thereof or 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 Depositor shall have received the
prior approval of the Federal Reserve if then required.  The Notes may also be redeemed by the
Depositor, at its option, at any time, in whole but not in part, upon the
occurrence of a Capital Disqualification Event, an Investment Company Event or
a Tax Event at the Indenture Redemption Price.

 

The Trust Securities redeemed
on each Redemption Date shall be redeemed at the Redemption Price with the
proceeds from the contemporaneous redemption or payment at maturity of Notes.
Redemptions of the Trust Securities (or portion thereof) shall be made and the
Redemption Price shall be payable on each Redemption Date only to the extent
that the Trust has funds then on hand and available in the Payment Account for
the payment of such Redemption Price.

 

Payments of Distributions
(including any Additional Interest Amounts), the Redemption Price, Liquidation
Amount or any other amounts in respect of the Preferred Securities shall be
made by wire transfer at such place and to such account at a banking institution
in the United

 

C-7

 

States as may be designated in
writing 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.  If any
Preferred Securities are held by a Depositary, such Distributions shall be made
to the Depositary in immediately available funds.

 

The indebtedness evidenced by
the Notes 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 (as defined
in the Indenture), and this Security is issued subject to the provisions of the
Indenture with respect thereto.

 

C-8

 

ASSIGNMENT

 

For Value
Received, the undersigned assigns and transfers
this Preferred Securities Certificate to:

 

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

 

 

(Insert address and zip code of assignee)

 

 

and irrevocably appoints

 

 

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

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name
  appears on the other side of this Preferred Securities Certificate)

  

 

The signature(s) should be guaranteed by an
eligible guarantor institution (banks, stockbrokers, savings and loan
associations and credit unions with membership in an approved signature
guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

 

C-9

 

Exhibit D

 

Junior Subordinated Indenture

 

D-1

 

Exhibit E

 

FORM OF TRANSFEREE CERTIFICATE

TO BE EXECUTED BY TRANSFEREES OTHER THAN QIBS

 

          , [     ]

 

First Community Bancorp

First Community/CA Statutory
Trust VI

120 Wilshire Blvd.

Santa Monica, California 90401

 

	
   

  	
   

  	
  Re:

  	
  Purchase of
  $1,000 stated liquidation amount of Floating Rate Preferred 

  
	
   

  	
   

  	
   

  	
  Securities
  (the “Preferred Securities”) of First Community/CA Statutory

  	
   

  
	
   

  	
   

  	
   

  	
  Trust VI

  	
   

  

 

Ladies and Gentlemen:

 

In connection with our purchase of the
Preferred Securities we confirm that:

 

1.                                       We understand that the
Floating Rate Preferred Securities (the “Preferred Securities”) of First
Community/CA Statutory Trust VI (the “Trust”) (including the guarantee (the
“Guarantee”) of First Community Bancorp (the “Company”) executed in connection
therewith) and the Floating Rate Junior Subordinated Notes due 2033 of the
Company (the “Subordinated Notes”) (the Preferred Securities, the Guarantee and
the Subordinated Notes together being referred to herein as the “Offered
Securities”), have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), and may not be offered or sold except as
permitted in the following sentence. We agree on our own behalf and on behalf
of any investor account for which we are purchasing the Offered Securities
that, if we decide to offer, sell or otherwise transfer any such Offered
Securities, (i) such offer, sale or transfer will be made only (a) to the
Trust, (b) to a person we reasonably believe is a “qualified institutional
buyer” (a “QIB”) (as defined in Rule 144 under the Securities Act) in a
transaction meeting the requirements of Rule 144A, (c) 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 Offered Securities
for its own account, or for the account of such an “accredited investor,” for
investment purposes and not with a view to, or for offer or sale in connection
with, any distribution thereof in violation of the Securities Act, (d) pursuant
to an effective registration statement under the Securities Act, or (e)
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 (c) or (e), subject to the
right of the Trust and the depositor to require an opinion of counsel and other
information satisfactory to each of them. The foregoing restrictions on resale
will not apply subsequent to the date on which, in the written opinion of
counsel, the Preferred Securities are not “restricted securities” within the
meaning of Rule 144 under the Securities Act. 
If any resale or other transfer of the Offered Securities is proposed to
be made pursuant to clause (c) or (e) above, the transferor shall deliver a
letter from the transferee substantially in the form of this letter to the
Property Trustee as Transfer Agent, which shall provide as applicable, among
other things, that the transferee is an “accredited investor” within the
meaning of subparagraph (a) (1), (2), (3) or (7) of Rule 501 under the

 

E-1

 

Securities Act that is
acquiring such Securities for investment purposes and not for distribution in
violation of the Securities Act. We acknowledge on our behalf and on behalf of
any investor account for which we are purchasing Securities that the Trust and
the Company reserve the right prior to any offer, sale or other transfer
pursuant to clause (c) or (e) to require the delivery of any opinion of
counsel, certifications and/or other information satisfactory to the Trust and
the Company.  We understand that the
certificates for any Offered Security that we receive will bear a legend
substantially to the effect of the foregoing.

 

2.                                       We are an “accredited
investor” within the meaning of subparagraph (a) (1), (2), (3) or (7) of Rule
501 under the Securities Act purchasing for our own account or for the account
of such an “accredited investor,” and we are acquiring the Offered Securities
for investment purposes and not with view to, or for offer or sale in
connection with, any distribution in violation of the Securities Act, and we
have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of our investment in the Offered
Securities, and we and any account for which we are acting are each able to
bear the economic risks of our or its investment.

 

3.                                       We are acquiring the Offered
Securities purchased by us for our own account (or for one or more accounts as
to each of which we exercise sole investment discretion and have authority to
make, and do make, the statements contained in this letter) and not with a view
to any distribution of the Offered Securities, subject, nevertheless, to the
understanding that the disposition of our property will at all times be and
remain within our control.

 

4.                                       In the event that we
purchase any Preferred Securities or any Subordinated Notes, we will acquire
such Preferred Securities having an aggregate stated liquidation amount of not
less than $100,000 or such Subordinated Notes having an aggregate principal
amount not less than $100,000, for our own account and for each separate
account for which we are acting.

 

5.                                       We acknowledge that we
either (A) are not a fiduciary of a 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 are not purchasing the Offered Securities
on behalf of or with “plan assets” by reason of any Plan’s investment in the
entity, (B) are eligible for the exemptive relief available under one or more
of the following prohibited transaction class exemptions (“PTCEs”) issued by
the U.S. Department of Labor:  PTCE
96-23, 95-60, 91-38, 90-1 or 84-14 or another applicable exemption, or (C) our
purchase and holding of this security, or any interest therein, is not
prohibited by Section 406 of ERISA or Section 4975 of the Code with respect to
such purchase or holding.

 

6.                                       We acknowledge that the
Trust and the Company and others will rely upon the truth and accuracy of the
foregoing acknowledgments, representations, warranties and agreements and agree
that if any of the acknowledgments, representations, warranties and agreements
deemed to have been made by our purchase of the Offered Securities are no
longer accurate, we shall promptly notify the Company.  If we are acquiring any Offered Securities
as a fiduciary or agent for one or more investor accounts, we represent that we
have sole discretion

 

E-2

 

with respect to each such
investor account and that we have full power to make the foregoing
acknowledgments, representations and agreement on behalf of each such investor
account.

 

	
   

  	
  (Name of
  Purchaser)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

Upon transfer, the Offered Securities would
be registered in the name of the new beneficial owner as follows.

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Taxpayer ID Number:

  	
   

  	
   

  
					

 

E-3

 

Exhibit F

 

FORM OF TRANSFEROR CERTIFICATE

TO BE EXECUTED FOR QIBs

 

          , [     ]

 

First Community Bancorp

First Community/CA Statutory
Trust VI

120 Wilshire Blvd.

Santa Monica, California 90401

 

	
   

  	
   

  	
  Re:

  	
  Purchase of
  $1,000 stated liquidation amount of Floating Rate

  
	
   

  	
   

  	
   

  	
  Preferred
  Securities (the “Preferred Securities”) of First Community/CA

  	
   

  
	
   

  	
   

  	
   

  	
  Statutory
  Trust VI

  	
   

  
						

 

Reference is hereby made to the
Amended and Restated Trust Agreement of First Community/CA Statutory Trust VI,
dated as of September 3, 2003 (the “Trust Agreement”), among Matthew P. Wagner,
Lynn M. Hopkins and Jared M. Wolff, as Administrative Trustees, The Bank of New
York (Delaware), as Delaware Trustee, The Bank of New York, as Property Trustee,
First Community Bancorp, as Depositor, and the holders from time to time of
undivided beneficial interests in the assets of First Community/CA Statutory
Trust VI.  Capitalized terms used but
not defined herein shall have the meanings given them in the Trust Agreement.

 

This letter relates to
$                        
aggregate liquidation amount of Preferred Securities which are held in the name
of             (the
“Transferor”).

 

In accordance with Article V of
the Trust Agreement, the Transferor hereby certifies that such Preferred
Securities are being transferred in accordance with (i) the transfer
restrictions set forth in the Preferred Securities and (ii) Rule 144A under the
Securities Act (“Rule 144A”), to a transferee that the Transferor reasonably believes
is purchasing the Preferred Securities for its own account or an account with
respect to which the transferee exercises sole investment discretion and the
transferee and any such account is a “qualified institutional buyer” within the
meaning of Rule 144A, in a transaction meeting the requirements of Rule 144A
and in accordance with applicable securities laws of any state of the United
States or any other jurisdiction.

 

You are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby.

 

	
   

  	
  (Name
  of Transferor)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  Date:

  	
   

  	
   

  	
   

  

 

F-1

 

Exhibit G

 

Officer’s Certificate

 

The undersigned, the [Chief
Financial Officer] [Treasurer] [Executive Vice President] hereby certifies,
pursuant to Section 8.16(b) of the Amended and Restated Trust Agreement, dated
as of September 3, 2003, among First Community Bancorp (the “Company”), The
Bank of New York, as property trustee, The Bank of New York (Delaware), as
Delaware trustee and the administrative trustees named therein, that, as of
[date], [20  ], the Company had the following ratios and balances:

 

BANK HOLDING COMPANY 

As of [Quarterly Financial Dates]

 

	
  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   

 

[FOR FISCAL YEAR END: Attached hereto are
the audited consolidated financial statements (including the balance sheet,
income statement and statement of cash flows, and notes thereto, together with
the report of the independent accountants thereon) of the Company and its
consolidated subsidiaries for the three years ended
       , 20   .]

 

[FOR FISCAL QUARTER END: Attached hereto are
the unaudited consolidated and consolidating financial statements (including
the balance sheet and income statement) of the Company and its consolidated
subsidiaries for the fiscal quarter] ended [date], 20  .

 

G-1

 

The 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).

 

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

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  First
  Community Bancorp

  	
   

  
	
   

  	
  120 Wilshire
  Blvd.

  	
   

  
	
   

  	
  Santa
  Monica, California 90401

  	
   

  
	
   

  	
  (714)
  674-5330

  	
   

  

 

G-2

 

Financial Definitions

 

	
  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

  	
   

  	
  (BHCK4519)/(BHCK3515+BHCK3365+BHCK3516+BHCK3401+BHCKB985)

  	
   

  	
  (Net
  Interest Income Fully Taxable 

  

 

G-3

 

	
  Report Item

  	
   

  	
  Corresponding
  FRY-9C or LP Line Items with

  Line Item corresponding Schedules

  	
   

  	
  Description
  of

  Calculation

  
	
  (annualized)

  	
   

  	
  Schedules HI
  Memorandum and HC-K

  	
   

  	
  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+BHDM6636+BHFN6631+BHFN6636)

  Schedule HC

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

  

 

G-4

 

	
  Report Item

  	
   

  	
  Corresponding
  FRY-9C or LP Line Items with

  Line Item corresponding Schedules

  	
   

  	
  Description
  of

  Calculation

  
	
   

  	
   

  	
   

  	
   

  	
  other
  adjustments and extraordinary items; and other adjustments, net of income
  taxes.

  

 

G-5

 

Schedule A

 

With respect to the Trust
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 a Distribution Date (except, with respect to
the first distribution payment date, on August 29, 2003) (each such day, a
“LIBOR Determination Date”), LIBOR for any given security shall, for the
following distribution 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.

 

Schedule A-1

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