Document:

Exhibit
10.1

GUARANTEE
AGREEMENT

HF FINANCIAL CORP.

Dated as of
December 7, 2006

TABLE OF
CONTENTS

	
  

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS AND INTERPRETATION

  	
   

  
	
   

  	
   

  
	
  SECTION 1.1

  	
   

  	
  Definitions and
  Interpretation

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 2.1

  	
   

  	
  Powers and Duties of
  the Guarantee Trustee

  	
  4

  
	
  SECTION 2.2

  	
   

  	
  Certain Rights of the
  Guarantee Trustee

  	
  5

  
	
  SECTION 2.3

  	
   

  	
  Not Responsible for
  Recitals or Issuance of Guarantee

  	
  7

  
	
  SECTION 2.4

  	
   

  	
  Events of Default;
  Waiver

  	
  7

  
	
  SECTION 2.5

  	
   

  	
  Events of Default;
  Notice

  	
  8

  
	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  THE GUARANTEE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 3.1

  	
   

  	
  The Guarantee Trustee;
  Eligibility

  	
  8

  
	
  SECTION 3.2

  	
   

  	
  Appointment, Removal
  and Resignation of the Guarantee Trustee

  	
  9

  
	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  GUARANTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 4.1

  	
   

  	
  Guarantee

  	
  9

  
	
  SECTION 4.2

  	
   

  	
  Waiver of Notice and
  Demand

  	
  10

  
	
  SECTION 4.3

  	
   

  	
  Obligations Not
  Affected

  	
  10

  
	
  SECTION 4.4

  	
   

  	
  Rights of Holders

  	
  11

  
	
  SECTION 4.5

  	
   

  	
  Guarantee of Payment

  	
  11

  
	
  SECTION 4.6

  	
   

  	
  Subrogation

  	
  11

  
	
  SECTION 4.7

  	
   

  	
  Independent Obligations

  	
  12

  
	
  SECTION 4.8

  	
   

  	
  Enforcement

  	
  12

  
	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  LIMITATION OF TRANSACTIONS; SUBORDINATION

  	
   

  
	
   

  	
   

  
	
  SECTION 5.1

  	
   

  	
  Limitation of
  Transactions

  	
  12

  
	
  SECTION 5.2

  	
   

  	
  Ranking

  	
  13

  
						

 

 i
 

 

	
  

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  TERMINATION

  	
   

  
	
   

  	
   

  
	
  SECTION 6.1

  	
   

  	
  Termination

  	
  13

  
	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  
	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  
	
  SECTION 7.1

  	
   

  	
  Exculpation

  	
  13

  
	
  SECTION 7.2

  	
   

  	
  Indemnification

  	
  14

  
	
  SECTION 7.3

  	
   

  	
  Compensation;
  Reimbursement of Expenses

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.1

  	
   

  	
  Successors and Assigns

  	
  15

  
	
  SECTION 8.2

  	
   

  	
  Amendments

  	
  16

  
	
  SECTION 8.3

  	
   

  	
  Notices

  	
  16

  
	
  SECTION 8.4

  	
   

  	
  Benefit

  	
  16

  
	
  SECTION 8.5

  	
   

  	
  Governing Law

  	
  16

  
	
  SECTION 8.6

  	
   

  	
  Counterparts

  	
  17

  
					

 

 ii

GUARANTEE AGREEMENT

This GUARANTEE AGREEMENT
(the “Guarantee”), dated as of December 7, 2006, is executed and delivered by
HF Financial Corp., a savings and loan holding company incorporated in the
State of Delaware (the “Guarantor”), and Wilmington Trust Company, a Delaware
banking corporation, as trustee (the “Guarantee Trustee”), for the benefit of
the Holders (as defined herein) from time to time of the Capital Securities (as
defined herein) of HF Financial Capital Trust V, a Delaware statutory trust (the
“Issuer”).

WHEREAS, pursuant to an
Amended and Restated Declaration of Trust (the “Declaration”), dated as of
December 7, 2006, among the trustees named therein of the Issuer, HF Financial
Corp., as sponsor, and the Holders from time to time of undivided beneficial
interests in the assets of the Issuer, the Issuer is issuing on the date hereof
securities, having an aggregate liquidation amount of $10,000,000, designated
in the Declaration as MMCapSSM (the “Capital
Securities”); and

WHEREAS, as incentive for
the Holders to purchase the Capital Securities, the Guarantor desires
irrevocably and unconditionally to agree, to the extent set forth in this
Guarantee, to pay to the Holders of Capital Securities the Guarantee Payments
(as defined herein) and to make certain other payments on the terms and
conditions set forth herein.

NOW, THEREFORE, in
consideration of the purchase by each Holder of the Capital Securities, which
purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor
executes and delivers this Guarantee for the benefit of the Holders.

ARTICLE I

DEFINITIONS AND
INTERPRETATION 

SECTION 1.1 Definitions
and Interpretation.

In this Guarantee,
unless the context otherwise requires:

(a)           capitalized terms used in this
Guarantee 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
Guarantee has the same meaning throughout;

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

(d)           all references in this Guarantee to
Articles and Sections are to Articles and Sections of this Guarantee, unless
otherwise specified;

(e)           terms defined in the Declaration as
of the date of execution of this Guarantee have the same meanings when used in
this Guarantee, unless otherwise defined in this Guarantee or unless the
context otherwise requires; and

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

“Beneficiaries” means any Person to whom the Issuer is
or hereafter becomes indebted or liable.

“Common
Securities” has the meaning specified in the Declaration.

“Corporate Trust
Office”  means the office of the
Guarantee Trustee at which at any particular time its corporate trust business
shall be principally administered, which at all times shall be located within
the United States and at the time of the execution of this Guarantee shall be
Rodney Square North, 1100 North Market Street, Wilmington, DE 19890-0001.

“Covered Person”
means any Holder of Capital Securities.

“Debenture Issuer” means
HF Financial Corp. or any successor entity resulting from any consolidation,
amalgamation, merger or other business combination, in its capacity as issuer
of the Debentures.

“Debentures” means the
junior subordinated debentures of the Debenture Issuer that are designated in
the Indenture as the “Fixed/Floating Rate Junior Subordinated Debt Securities
due 2037” and held by the Institutional Trustee (as defined in the Declaration)
of the Issuer.

“Event of Default”
has the meaning set forth in Section 2.4.

“Guarantee Payments”
means the following payments or distributions, without duplication, with
respect to the Capital Securities, to the extent not paid or made by the
Issuer: (i) any accrued and unpaid Distributions (as defined in the
Declaration) which are required to be paid on such Capital Securities to the
extent the Issuer has funds available in the Property Account (as defined in
the Declaration) therefor at such time, (ii) the price payable upon the
redemption of any Capital Securities to the extent the Issuer has funds
available in the Property Account therefor at such time, with respect to any
Capital Securities that are (1) called for redemption by the Issuer or (2)
mandatorily redeemed by the Issuer, in each case, in accordance with the terms
of such Capital Securities, and (iii) upon a voluntary or involuntary
liquidation, dissolution, winding-up or termination of the Issuer (other than
in connection with the distribution of Debentures to the Holders of the Capital
Securities in exchange therefor as provided in the Declaration), the lesser of
(a) the aggregate of the liquidation amount of the Capital Securities and all
accrued and unpaid Distributions on the Capital Securities to the date of
payment, to the extent the Issuer has funds available in the Property Account
therefor at such time, and (b) the amount of assets of the Issuer remaining
available for distribution to Holders in liquidation of the Issuer after
satisfaction of liabilities to creditors of the Issuer as required by
applicable law (in either case, the “Liquidation Distribution”).

“Guarantee Trustee” means
Wilmington Trust Company, until a Successor Guarantee Trustee has been
appointed and has accepted such appointment pursuant to the terms of this
Guarantee and thereafter means each such Successor Guarantee Trustee.

 2
 

“Holder” means any Person
in whose name any Capital Securities are registered on the books and records of
the Issuer; provided, however, that, in determining whether the
holders of the requisite percentage of Capital Securities have given any
request, notice, consent or waiver hereunder, “Holder” shall not include the
Guarantor or any Affiliate of the Guarantor.

“Indemnified Person”
means the Guarantee Trustee (including in its individual capacity), any
Affiliate of the Guarantee Trustee, or any officers, directors, shareholders,
members, partners, employees, representatives, nominees, custodians or agents
of the Guarantee Trustee.

“Indenture” means the
Indenture, dated as of December 7, 2006, between the Debenture Issuer and
Wilmington Trust Company, not in its individual capacity but solely as trustee,
and any indenture supplemental thereto pursuant to which the Debentures are to
be issued to the Institutional Trustee of the Issuer.

“Liquidation Distribution” has the meaning set forth
in the definition of “Guarantee Payments” herein.

“Majority in liquidation
amount of the Capital Securities” means Holder(s) of outstanding Capital
Securities, voting together as a class, but separately from the holders of
Common Securities, of more than 50% of the aggregate liquidation amount
(including the amount that would be paid upon the redemption, liquidation or
otherwise on the date upon which the voting percentages are determined, plus
unpaid Distributions accrued thereon to such date) of all Capital Securities
then outstanding.

“Obligations” means any
costs, expenses or liabilities (but not including liabilities related to taxes)
of the Issuer, other than obligations of the Issuer to pay to holders of any
Trust Securities the amounts due such holders pursuant to the terms of the
Trust Securities.

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

(a)           a statement that such officer signing
the Officer’s 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 such officer in
rendering the Officer’s 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.

 3
 

“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.

“Responsible Officer”
means, with respect to the Guarantee Trustee, any officer within the Corporate
Trust Office of the Guarantee Trustee with direct responsibility for the
administration of any matters relating to this Guarantee, including any vice
president, any assistant vice president, any secretary, any assistant
secretary, the treasurer, any assistant treasurer, any trust officer or other
officer of the Corporate Trust Office of the Guarantee 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.

“Successor Guarantee Trustee” means a successor
Guarantee Trustee possessing the qualifications to act as Guarantee Trustee
under Section 3.1.

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

ARTICLE II

POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

SECTION 2.1 Powers and Duties of the Guarantee
Trustee.

(a)           This Guarantee shall be held by the
Guarantee Trustee for the benefit of the Holders of the Capital Securities, and
the Guarantee Trustee shall not transfer this Guarantee to any Person except a
Holder of Capital Securities exercising his or her rights pursuant to Section
4.4 (b) or to a Successor Guarantee Trustee on acceptance by such Successor
Guarantee Trustee of its appointment to act as Successor Guarantee
Trustee.  The right, title and interest
of the Guarantee Trustee shall automatically vest in any Successor Guarantee
Trustee, and such vesting and cessation of title shall be effective whether or
not conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Guarantee Trustee.

(b)           If an Event of Default actually known
to a Responsible Officer of the Guarantee Trustee has occurred and is
continuing, the Guarantee Trustee shall enforce this Guarantee for the benefit
of the Holders of the Capital Securities.

(c)           The Guarantee Trustee, before the
occurrence of any Event of Default and after the curing or waiving of all
Events of Default that may have occurred, shall undertake to perform only such
duties as are specifically set forth in this Guarantee, and no implied
covenants shall be read into this Guarantee against the Guarantee Trustee.  In case an Event of Default has occurred
(that has not been cured or waived pursuant to Section 2.4(b)) and is actually
known to a Responsible Officer of the Guarantee Trustee, the Guarantee Trustee
shall exercise such of the rights and powers vested in it by this Guarantee,
and use the same degree of care and skill in its exercise thereof, as a prudent
person would exercise or use under the circumstances in the conduct of his or
her own affairs.

 4
 

(d)           No provision of this Guarantee shall
be construed to relieve the Guarantee Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct or bad faith, except that:

(i)            prior
to the occurrence of any Event of Default and after the curing or waiving of
all Events of Default that may have occurred:

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

(B)           in
the absence of bad faith on the part of the Guarantee Trustee, the Guarantee
Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon any certificates or opinions furnished
to the Guarantee Trustee and conforming to the requirements of this Guarantee;
but in the case of any such certificates or opinions furnished to the Guarantee
Trustee, the Guarantee Trustee shall be under a duty to examine the same to
determine whether or not on their face they conform to the requirements of this
Guarantee;

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

(iii)          the
Guarantee 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 written
direction of the Holders of a Majority in liquidation amount of the Capital
Securities relating to the time, method and place of conducting any proceeding
for any remedy available to the Guarantee Trustee, or exercising any trust or
power conferred upon the Guarantee Trustee under this Guarantee; and

(iv)          no
provision of this Guarantee shall require the Guarantee Trustee to expend or
risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its rights or
powers, if the Guarantee Trustee shall have reasonable grounds for believing
that the repayment of such funds is not reasonably assured to it under the
terms of this Guarantee, or security and indemnity, reasonably satisfactory to
the Guarantee Trustee, against such risk or liability is not reasonably assured
to it.

SECTION 2.2 Certain
Rights of the Guarantee Trustee.

(a)           Subject to the provisions of Section
2.1:

 5
 

(i)            The Guarantee Trustee may
conclusively rely, and shall be fully protected in acting or refraining from
acting upon, any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, 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.

(ii)           Any direction or act of the Guarantor
contemplated by this Guarantee shall be sufficiently evidenced by an Officer’s
Certificate.

(iii)          Whenever, in the administration of
this Guarantee, the Guarantee Trustee shall deem it desirable that a matter be
proved or established before taking, suffering or omitting any action
hereunder, the Guarantee Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and
conclusively rely upon an Officer’s Certificate of the Guarantor which, upon
receipt of such request, shall be promptly delivered by the Guarantor.

(iv)          The Guarantee Trustee shall have no
duty to see to any recording, filing or registration of any instrument or other
writing (or any rerecording, refiling or reregistration thereof).

(v)           The Guarantee Trustee may consult
with counsel of its selection, and the advice or opinion of such counsel with
respect to legal matters shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in accordance with such advice or opinion.  Such counsel may be counsel to the Guarantor
or any of its Affiliates and may include any of its employees.  The Guarantee Trustee shall have the right at
any time to seek instructions concerning the administration of this Guarantee
from any court of competent jurisdiction.

(vi)          The Guarantee Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this
Guarantee at the request or direction of any Holder, unless such Holder shall
have provided to the Guarantee Trustee such security and indemnity, reasonably
satisfactory to the Guarantee Trustee, against the costs, expenses (including
attorneys’ fees and expenses and the expenses of the Guarantee Trustee’s
agents, nominees or custodians) and liabilities that might be incurred by it in
complying with such request or direction, including such reasonable advances as
may be requested by the Guarantee Trustee; provided, however, that nothing contained
in this Section 2.2(a)(vi) shall be taken to relieve the Guarantee Trustee,
upon the occurrence of an Event of Default, of its obligation to exercise the
rights and powers vested in it by this Guarantee.

(vii)          The Guarantee Trustee shall not be bound
to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Guarantee Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit.

 6
 

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

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

(x)            Whenever in the administration of
this Guarantee the Guarantee Trustee shall deem it desirable to receive
instructions with respect to enforcing any remedy or right or taking any other
action hereunder, the Guarantee Trustee (A) may request instructions from the
Holders of a Majority in liquidation amount of the Capital Securities, (B) may
refrain from enforcing such remedy or right or taking such other action until
such instructions are received and (C) shall be protected in conclusively
relying on or acting in accordance with such instructions.

(xi)           The
Guarantee Trustee shall not be liable for any action taken, suffered, or
omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Guarantee.

(b)           No provision of this Guarantee shall
be deemed to impose any duty or obligation on the Guarantee 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
Guarantee 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 Guarantee Trustee shall be construed to be
a duty.

SECTION 2.3 Not
Responsible for Recitals or Issuance of Guarantee.

The recitals contained in
this Guarantee shall be taken as the statements of the Guarantor, and the Guarantee
Trustee does not assume any responsibility for their correctness.  The Guarantee Trustee makes no representation
as to the validity or sufficiency of this Guarantee.

SECTION 2.4 Events
of Default; Waiver.

(a)           An “Event of Default” under this Guarantee
will occur upon the failure of the Guarantor to perform any of its payment or
other obligations hereunder.

(b)           The Holders of a Majority in
liquidation amount of the Capital Securities may, voting or consenting as a
class, on behalf of the Holders of all of the Capital Securities,

 7
 

waive any past Event of Default and its
consequences.  Upon such waiver, any such
Event of Default shall cease to exist, and shall be deemed to have been cured,
for every purpose of this Guarantee, but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

SECTION 2.5 Events
of Default; Notice.

(a)           The Guarantee Trustee shall, within
90 days after the occurrence of an Event of Default, transmit by mail, first
class postage prepaid, to the Holders of the Capital Securities, notices of all
Events of Default actually known to a Responsible Officer of the Guarantee
Trustee, unless such defaults have been cured before the giving of such notice,
provided, however, that the Guarantee Trustee shall be protected in withholding
such notice if and so long as a Responsible Officer of the Guarantee Trustee in
good faith determines that the withholding of such notice is in the interests
of the Holders of the Capital Securities.

(b)           The Guarantee Trustee shall not be
charged with knowledge of any Event of Default unless the Guarantee Trustee
shall have received written notice thereof from the Guarantor or a Holder of
the Capital Securities, or a Responsible Officer of the Guarantee Trustee
charged with the administration of this Guarantee shall have actual knowledge
thereof.

ARTICLE III

THE GUARANTEE TRUSTEE

SECTION 3.1 The
Guarantee Trustee; Eligibility.

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

(i)            not be an Affiliate of the
Guarantor; and

(ii)           be a corporation or national
association organized and doing business under the laws of the United States of
America or any state thereof or of the District of Columbia, or Person
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),
and subject to supervision or examination by federal, state or District of
Columbia authority.  If such corporation
or national association publishes reports of condition at least annually,
pursuant to law or to the requirements of the supervising or examining
authority referred to above, then, for the purposes of this Section 3.1(a)(ii),
the combined capital and surplus of such corporation or national association
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published.

(b)           If at any time the Guarantee Trustee
shall cease to be eligible to so act under Section 3.1(a), the Guarantee
Trustee shall immediately resign in the manner and with the effect set forth in
Section 3.2(c).

(c)           If the Guarantee Trustee has or shall
acquire any “conflicting interest” within the meaning of Section 310(b) of the
Trust Indenture Act, the Guarantee Trustee shall

 8
 

either eliminate such interest or resign to the extent
and in the manner provided by, and subject to, this Guarantee.

SECTION 3.2 Appointment,
Removal and Resignation of the Guarantee Trustee.

(a)           Subject to Section 3.2(b), the
Guarantee Trustee may be appointed or removed without cause at any time by the
Guarantor except during an Event of Default.

(b)           The Guarantee Trustee shall not be
removed in accordance with Section 3.2(a) until a Successor Guarantee Trustee
has been appointed and has accepted such appointment by written instrument
executed by such Successor Guarantee Trustee and delivered to the Guarantor.

(c)           The Guarantee Trustee appointed to
office shall hold office until a Successor Guarantee Trustee shall have been
appointed or until its removal or resignation. 
The Guarantee Trustee may resign from office (without need for prior or
subsequent accounting) by an instrument in writing executed by the Guarantee
Trustee and delivered to the Guarantor, which resignation shall not take effect
until a Successor Guarantee Trustee has been appointed and has accepted such
appointment by an instrument in writing executed by such Successor Guarantee
Trustee and delivered to the Guarantor and the resigning Guarantee Trustee.

(d)           If no Successor Guarantee Trustee
shall have been appointed and accepted appointment as provided in this Section
3.2 within 60 days after delivery of an instrument of removal or resignation,
the Guarantee Trustee resigning or being removed may petition any court of competent
jurisdiction for appointment of a Successor Guarantee Trustee.  Such court may thereupon, after prescribing
such notice, if any, as it may deem proper, appoint a Successor Guarantee
Trustee.

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

(f)            Upon termination of this Guarantee
or removal or resignation of the Guarantee Trustee pursuant to this Section
3.2, the Guarantor shall pay to the Guarantee Trustee all amounts owing to the
Guarantee Trustee under Sections 7.2 and 7.3 accrued to the date of such
termination, removal or resignation.

ARTICLE IV

GUARANTEE

SECTION 4.1 Guarantee.

(a)           The Guarantor irrevocably and
unconditionally agrees to pay in full to the Holders the Guarantee Payments
(without duplication of amounts theretofore paid by the Issuer), as and when
due, regardless of any defense (except defense of payment by the Issuer), right
of set-off or counterclaim that the Issuer may have or assert.  The Guarantor’s obligation to make a Guarantee
Payment may be satisfied by direct payment of the required amounts by the
Guarantor to the Holders or by causing the Issuer to pay such amounts to the
Holders.

 9
 

(b)           The Guarantor hereby also agrees to
assume any and all Obligations of the Issuer and in the event any such
Obligation is not so assumed, subject to the terms and conditions hereof, the
Guarantor hereby irrevocably and unconditionally guarantees to each Beneficiary
the full payment, when and as due, of any and all Obligations to such Beneficiaries.  This Guarantee is intended to be for the
Beneficiaries who have received notice hereof.

SECTION 4.2 Waiver
of Notice and Demand.

The Guarantor hereby
waives notice of acceptance of this Guarantee and of any liability to which it
applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Issuer or any other Person before proceeding
against the Guarantor, protest, notice of nonpayment, notice of dishonor,
notice of redemption and all other notices and demands.

SECTION 4.3 Obligations
Not Affected.

The obligations,
covenants, agreements and duties of the Guarantor under this Guarantee shall in
no way be affected or impaired by reason of the happening from time to time of
any of the following:

(a)           the release or waiver, by operation
of law or otherwise, of the performance or observance by the Issuer of any
express or implied agreement, covenant, term or condition relating to the
Capital Securities to be performed or observed by the Issuer;

(b)           the extension of time for the payment
by the Issuer of all or any portion of the Distributions, the price payable
upon the redemption of the Capital Securities, the Liquidation Distribution or
any other sums payable under the terms of the Capital Securities or the extension
of time for the performance of any other obligation under, arising out of, or
in connection with, the Capital Securities (other than an extension of time for
the payment of the Distributions, the price payable upon the redemption of the
Capital Securities, the Liquidation Distribution or other sums payable that
results from the extension of any interest payment period on the Debentures);

(c)           any failure, omission, delay or lack
of diligence on the part of the Holders to enforce, assert or exercise any
right, privilege, power or remedy conferred on the Holders pursuant to the
terms of the Capital Securities, or any action on the part of the Issuer
granting indulgence or extension of any kind;

(d)           the voluntary or involuntary
liquidation, dissolution, sale of any collateral, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of debt of, or other similar
proceedings affecting, the Issuer or any of the assets of the Issuer;

(e)           any invalidity of, or defect or
deficiency in, the Capital Securities;

(f)            the settlement or compromise of any
obligation guaranteed hereby or hereby incurred; or

 10
 

(g)           any other circumstance whatsoever
that might otherwise constitute a legal or equitable discharge or defense of a
guarantor, it being the intent of this Section 4.3 that the obligations of the
Guarantor hereunder shall be absolute and unconditional under any and all
circumstances.

There shall be no obligation of the Holders to give
notice to, or obtain consent of, the Guarantor with respect to the happening of
any of the foregoing.

SECTION 4.4 Rights
of Holders.

(a)           The Holders of a Majority in
liquidation amount of the Capital Securities have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Guarantee Trustee in respect of this Guarantee or to direct the exercise of any
trust or power conferred upon the Guarantee Trustee under this Guarantee;
provided, however, that (subject to Sections 2.1 and 2.2) the Guarantee Trustee
shall have the right to decline to follow any such direction if the Guarantee
Trustee shall determine that the actions so directed would be unjustly
prejudicial to the Holders not taking part in such direction or if the
Guarantee Trustee being advised by legal counsel determines that the action or
proceeding so directed may not lawfully be taken or if the Guarantee Trustee in
good faith by its board of directors or trustees, executive committee or a
trust committee of directors or trustees and/or Responsible Officers shall
determine that the action or proceeding so directed would involve the Guarantee
Trustee in personal liability.

(b)           Any Holder of Capital Securities may
institute a legal proceeding directly against the Guarantor to enforce the
Guarantee Trustee’s rights under this Guarantee, without first instituting a
legal proceeding against the Issuer, the Guarantee Trustee or any other
Person.  The Guarantor waives any right
or remedy to require that any such action be brought first against the Issuer,
the Guarantee Trustee or any other Person before so proceeding directly against
the Guarantor.

SECTION 4.5 Guarantee
of Payment.

This Guarantee
creates a guarantee of payment and not of collection.

SECTION 4.6 Subrogation.

The Guarantor shall be
subrogated to all (if any) rights of the Holders of Capital Securities against
the Issuer in respect of any amounts paid to such Holders by the Guarantor
under this Guarantee; provided, however, that the Guarantor shall not (except
to the extent required by applicable provisions of law) be entitled to enforce
or exercise any right that it may acquire by way of subrogation or any
indemnity, reimbursement or other agreement, in all cases as a result of
payment under this Guarantee, if, after giving effect to any such payment, any
amounts are due and unpaid under this Guarantee.  If any amount shall be paid to the Guarantor
in violation of the preceding sentence, the Guarantor agrees to hold such
amount in trust for the Holders and to pay over such amount to the Holders.

 11
 

SECTION 4.7 Independent
Obligations.

The Guarantor
acknowledges that its obligations hereunder are independent of the obligations
of the Issuer with respect to the Capital Securities and that the Guarantor
shall be liable as principal and as debtor hereunder to make Guarantee Payments
pursuant to the terms of this Guarantee notwithstanding the occurrence of any
event referred to in subsections (a) through (g), inclusive, of Section 4.3
hereof.

SECTION 4.8 Enforcement.

A Beneficiary may enforce
the Obligations of the Guarantor contained in Section 4.1(b) directly against
the Guarantor, and the Guarantor waives any right or remedy to require that any
action be brought against the Issuer or any other person or entity before
proceeding against the Guarantor.

The Guarantor shall be
subrogated to all rights (if any) of any Beneficiary against the Issuer in
respect of any amounts paid to the Beneficiaries by the Guarantor under this
Guarantee; provided, however, that the Guarantor shall not (except to the
extent required by applicable provisions of law) be entitled to enforce or
exercise any rights that it may acquire by way of subrogation or any indemnity,
reimbursement or other agreement, in all cases as a result of payment under
this Guarantee, if, after giving effect to such payment, any amounts are due
and unpaid under this Guarantee.  If any
amount shall be paid to the Guarantor in violation of the preceding sentence,
the Guarantor agrees to hold such amount in trust for the Beneficiaries and to
pay over such amount to the Beneficiaries.

ARTICLE V

LIMITATION OF
TRANSACTIONS; SUBORDINATION

SECTION 5.1 Limitation
of Transactions.

So long as any Capital
Securities remain outstanding, if (a) there shall have occurred and be
continuing an Event of Default or (b) Debenture Issuer shall have selected an
Extension Period as provided in the Indenture and such period, or any extension
thereof, shall have commenced and be continuing, then the Guarantor may not (x)
declare or pay any dividends or distributions on, or redeem, purchase, acquire,
or make a liquidation payment with respect to, any of the Guarantor’s capital
stock, (y) make any payment of principal of or interest or premium, if any, on
or repay, repurchase or redeem any debt securities of the Guarantor that rank
in all respects pari passu with
or junior in interest to the Debentures or (z) make any payment under any
guarantees of the Guarantor that rank in all respects pari passu with or junior in interest to
this Guarantee (other than (i) repurchases, redemptions or other acquisitions
of shares of capital stock of the Guarantor (A) in connection with any
employment contract, benefit plan or other similar arrangement with or for the
benefit of one or more employees, officers, directors, or consultants, (B) in
connection with a dividend reinvestment or stockholder stock purchase plan or
(C) in connection with the issuance of capital stock of the Guarantor (or
securities convertible into or exercisable for such capital stock), as
consideration in an acquisition transaction entered into prior to the
occurrence of the Event of Default or the

 12
 

applicable Extension Period, (ii) as a result of any
exchange or conversion of any class or series of the Guarantor’s capital stock
(or any capital stock of a subsidiary of the Guarantor) for any class or series
of the Guarantor’s capital stock or of any class or series of the Guarantor’s
indebtedness for any class or series of the Guarantor’s capital stock, (iii)
the purchase of fractional interests in shares of the Guarantor’s capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, (iv) any declaration of a dividend in
connection with any stockholder’s rights plan, or the issuance of rights, stock
or other property under any stockholder’s rights plan, or the redemption or
repurchase of rights pursuant thereto, or (v) 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 in interest to
such stock).

SECTION 5.2 Ranking.

This Guarantee will
constitute an unsecured obligation of the Guarantor and will rank subordinate
and junior in right of payment to all present and future Senior Indebtedness
(as defined in the Indenture) of the Guarantor. 
By their acceptance thereof, each Holder of Capital Securities agrees to
the foregoing provisions of this Guarantee and the other terms set forth
herein.

ARTICLE VI 

TERMINATION

SECTION 6.1 Termination.

This Guarantee shall
terminate as to the Capital Securities (i) upon full payment of the price
payable upon redemption of all Capital Securities then outstanding, (ii) upon
the distribution of all of the Debentures to the Holders of all of the Capital
Securities or (iii) upon full payment of the amounts payable in accordance with
the Declaration upon dissolution of the Issuer. 
This Guarantee will continue to be effective or will be reinstated, as
the case may be, if at any time any Holder of Capital Securities must restore
payment of any sums paid under the Capital Securities or under this Guarantee.

ARTICLE VII 

INDEMNIFICATION 

SECTION 7.1 Exculpation.

(a)           No Indemnified Person shall be
liable, responsible or accountable in damages or otherwise to the Guarantor or
any Covered Person for any loss, damage or claim incurred by reason of any act
or omission of such Indemnified Person in good faith in accordance with this
Guarantee and in a manner that such Indemnified Person reasonably believed to
be within the scope of the authority conferred on such Indemnified Person by
this Guarantee or by law, except that an Indemnified Person shall be liable for
any such loss, damage or claim

 13
 

incurred by reason of such Indemnified Person’s
negligence, willful misconduct or bad faith with respect to such acts or
omissions.

(b)           An Indemnified Person shall be fully
protected in relying in good faith upon the records of the Issuer or the
Guarantor and upon such information, opinions, reports or statements presented
to the Issuer or the Guarantor by any Person as to matters the Indemnified
Person reasonably believes are within such other Person’s professional or
expert competence and who, if selected by such Indemnified Person, has been
selected with reasonable care by such Indemnified Person, 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 Capital
Securities might properly be paid.

SECTION 7.2 Indemnification.

(a)           The Guarantor agrees to indemnify
each Indemnified Person for, and to hold each Indemnified Person harmless
against, any and all loss, liability, damage, claim or expense incurred without
negligence, willful misconduct or bad faith on the part of the Indemnified
Person, arising out of or in connection with the acceptance or administration
of the trust or trusts hereunder, including but not limited to the costs and
expenses (including reasonable legal fees and expenses) of the Indemnified
Person defending itself against, or investigating, any claim or liability in
connection with the exercise or performance of any of the Indemnified Person’s
powers or duties hereunder.  The
obligation to indemnify as set forth in this Section 7.2 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

(b)           Promptly after receipt by an
Indemnified Person under this Section 7.2 of notice of the commencement of any
action, such Indemnified Person will, if a claim in respect thereof is to be
made against the Guarantor under this Section 7.2, notify the Guarantor in
writing of the commencement thereof; but the failure so to notify the Guarantor
(i) will not relieve the Guarantor from liability under paragraph (a) above
unless and to the extent that the Guarantor did not otherwise learn of such
action and such failure results in the forfeiture by the Guarantor of
substantial rights and defenses and (ii) will not, in any event, relieve the
Guarantor from any obligations to any Indemnified Person other than the
indemnification obligation provided in paragraph (a) above.  The Guarantor shall be entitled to appoint
counsel of the Guarantor’s choice at the Guarantor’s expense to represent the
Indemnified Person in any action for which indemnification is sought (in which
case the Guarantor shall not thereafter be responsible for the fees and
expenses of any separate counsel retained by the Indemnified Person or Persons
except as set forth below); provided, however, that such counsel shall be
satisfactory to the Indemnified Person. 
Notwithstanding the Guarantor’s election to appoint counsel to represent
the Indemnified Person in any action, the Indemnified Person shall have the
right to employ separate counsel (including local counsel), and the Guarantor
shall bear the reasonable fees, costs and expenses of such separate counsel, if
(i) the use of counsel chosen by the Guarantor to represent the Indemnified
Person would present such counsel with a conflict of interest, (ii) the actual
or potential defendants in, or targets of, any such action include both the
Indemnified Person and the Guarantor and the Indemnified Person shall have
reasonably concluded that there may be legal defenses available to it and/or
other Indemnified Persons

 14
 

which are different from or additional to those
available to the Guarantor, (iii) the Guarantor shall not have employed counsel
satisfactory to the Indemnified Person to represent the Indemnified Person
within a reasonable time after notice of the institution of such action or (iv)
the Guarantor shall authorize the Indemnified Person to employ separate counsel
at the expense of the Guarantor.  The
Guarantor will not, without the prior written consent of the Indemnified
Persons, settle or compromise or consent to the entry of any judgment with
respect to any pending or threatened claim, action, suit or proceeding in
respect of which indemnification or contribution may be sought hereunder
(whether or not the Indemnified Persons are actual or potential parties to such
claim or action) unless such settlement, compromise or consent includes an
unconditional release of each Indemnified Person from all liability arising out
of such claim, action, suit or proceeding.

SECTION 7.3 Compensation;
Reimbursement of Expenses.

The Guarantor
agrees:

(a)           to pay to the Guarantee Trustee from
time to time such compensation for all services rendered by it hereunder as the
parties shall agree to 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 Guarantee Trustee upon request for all
reasonable expenses, disbursements and advances incurred or made by it in
accordance with any provision of this Guarantee (including the reasonable compensation
and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to the negligence,
willful misconduct or bad faith of the Guarantee Trustee.

The provisions of this Section 7.3 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

ARTICLE VIII

MISCELLANEOUS 

SECTION 8.1 Successors and Assigns.

All guarantees and
agreements contained in this Guarantee shall bind the successors, assigns,
receivers, trustees and representatives of the Guarantor and shall inure to the
benefit of the Holders of the Capital Securities then outstanding.  Except in connection with any merger or
consolidation of the Guarantor with or into another entity or any sale,
transfer or lease of the Guarantor’s assets to another entity, in each case to
the extent permitted under the Indenture, the Guarantor may not assign its
rights or delegate its obligations under this Guarantee without the prior
approval of the Holders of a Majority in liquidation amount of the Capital
Securities.

 15
 

SECTION 8.2 Amendments.

Except with respect to
any changes that do not adversely affect the powers, preferences, rights or
interests of Holders of the Capital Securities in any material respect (in
which case no approval of Holders will be required), this Guarantee may be
amended only with the prior approval of the Holders of a Majority in
liquidation amount of the Capital Securities. 
The provisions of the Declaration with respect to amendments thereof
shall apply equally with respect to amendments of the Guarantee.

SECTION 8.3 Notices.

All notices provided for
in this Guarantee shall be in writing, duly signed by the party giving such
notice, and shall be delivered, telecopied or mailed by first class mail, as
follows:

(a)           if given to the Guarantee Trustee, at
the Guarantee Trustee’s mailing address set forth below (or such other address
as the Guarantee Trustee may give notice of to the Holders of the Capital
Securities): Wilmington Trust Company, Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890-0001, Attention: Corporate Capital Markets,
Telecopy: 302-636-4140, Telephone: 
302-651-1000;

(b)           if given to the Guarantor, at the
Guarantor’s mailing address set forth below (or such other address as the
Guarantor may give notice of to the Holders of the Capital Securities and to
the Guarantee Trustee): HF Financial Corp., 225 South Main Avenue, Sioux Falls,
South Dakota 57104, Attention: Pamela F. Russo, Telecopy: 605-333-7621,
Telephone: 605-333-7558; or

(c)           if given to any Holder of the Capital
Securities, at the address set forth on the books and records of the Issuer.

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 8.4 Benefit.

This Guarantee is solely for the benefit of the
Holders of the Capital Securities and, subject to Section 2.1(a), is not
separately transferable from the Capital Securities.

SECTION 8.5 Governing
Law.

THIS GUARANTEE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES OF SAID STATE OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 16
 

SECTION 8.6 Counterparts.

This Guarantee may
contain more than one counterpart of the signature page and this Guarantee may
be executed by the affixing of the signature of the Guarantor and the Guarantee
Trustee 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.

 17

THIS GUARANTEE is executed as of the day and year first above written.

	
  

  	
  HF FINANCIAL CORP.,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Darrel L. Posegate

  
	
   

  	
   

  	
  Narne:

  	
  Darrel L. Posegate

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President,

  Chief Financial Officer and

  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  WILMINGTON TRUST COMPANY,

  
	
   

  	
  as Guarantee Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geoffrey J. Lewis

  
	
   

  	
   

  	
  Narne:

  	
  Geoffrey J. Lewis

  
	
   

  	
   

  	
  Title:

  	
  Financial Services Officer

  

 

GuaranteeExhibit 10.2

 

 

HF FINANCIAL CORP.

 

as Issuer

 

 

INDENTURE

 

Dated as of December 7,
2006

 

 

WILMINGTON TRUST COMPANY

 

as Trustee

 

 

FIXED/FLOATING RATE
JUNIOR SUBORDINATED DEBT SECURITIES DUE 2037

TABLE OF
CONTENTS

 

	
  ARTICLE I
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II DEBT
  SECURITIES

  	
  9

  
	
   

  	
   

  
	
  Section 2.01

  	
  Authentication
  and Dating

  	
  9

  
	
  Section 2.02

  	
  Form of Trustee’s
  Certificate of Authentication

  	
  10

  
	
  Section 2.03

  	
  Form and
  Denomination of Debt Securities

  	
  10

  
	
  Section 2.04

  	
  Execution of
  Debt Securities

  	
  10

  
	
  Section 2.05

  	
  Exchange and
  Registration of Transfer of Debt Securities

  	
  11

  
	
  Section 2.06

  	
  Mutilated,
  Destroyed, Lost or Stolen Debt Securities

  	
  14

  
	
  Section 2.07

  	
  Temporary Debt
  Securities

  	
  15

  
	
  Section 2.08

  	
  Payment of
  Interest

  	
  15

  
	
  Section 2.09

  	
  Cancellation of
  Debt Securities Paid, etc

  	
  17

  
	
  Section 2.10

  	
  Computation of
  Interest

  	
  17

  
	
  Section 2.11

  	
  Extension of
  Interest Payment Period

  	
  18

  
	
  Section 2.12

  	
  CUSIP Numbers

  	
  19

  
	
  Section 2.13

  	
  Global
  Debentures

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  PARTICULAR COVENANTS OF THE COMPANY

  	
  22

  
	
   

  	
   

  
	
  Section 3.01

  	
  Payment of
  Principal, Premium and Interest; Agreed

  	
   

  
	
   

  	
  Treatment of the
  Debt Securities

  	
  22

  
	
  Section 3.02

  	
  Offices for
  Notices and Payments, etc

  	
  23

  
	
  Section 3.03

  	
  Appointments to
  Fill Vacancies in Trustee’s Office

  	
  23

  
	
  Section 3.04

  	
  Provision as to
  Paying Agent

  	
  23

  
	
  Section 3.05

  	
  Certificate to
  Trustee

  	
  24

  
	
  Section 3.06

  	
  Additional
  Amounts

  	
  25

  
	
  Section 3.07

  	
  Compliance with
  Consolidation Provisions

  	
  25

  
	
  Section 3.08

  	
  Limitation on
  Dividends

  	
  25

  
	
  Section 3.09

  	
  Covenants as to
  the Trust

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV LISTS

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Securityholders’
  Lists

  	
  26

  
	
  Section 4.02

  	
  Preservation and
  Disclosure of Lists

  	
  27

  
	
  Section 4.03

  	
  Financial and
  Other Information

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

  	
  29

  
	
   

  	
   

  
	
  Section 5.01

  	
  Events of
  Default

  	
  29

  
	
  Section 5.02

  	
  Payment of Debt
  Securities on Default; Suit Therefor

  	
  31

  
	
  Section 5.03

  	
  Application of
  Moneys Collected by Trustee

  	
  32

  

 

 i
 

 

	
  Section 5.04

  	
  Proceedings by
  Securityholders

  	
  33

  
	
  Section 5.05

  	
  Proceedings by
  Trustee

  	
  33

  
	
  Section 5.06

  	
  Remedies
  Cumulative and Continuing

  	
  33

  
	
  Section 5.07

  	
  Direction of
  Proceedings and Waiver of Defaults by

  	
   

  
	
   

  	
  Majority of
  Securityholders

  	
  34

  
	
  Section 5.08

  	
  Notice of
  Defaults

  	
  34

  
	
  Section 5.09

  	
  Undertaking to
  Pay Costs

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  CONCERNING THE TRUSTEE

  	
  35

  
	
   

  	
   

  
	
  Section 6.01

  	
  Duties and
  Responsibilities of Trustee

  	
  35

  
	
  Section 6.02

  	
  Reliance on
  Documents, Opinions, etc

  	
  36

  
	
  Section 6.03

  	
  No
  Responsibility for Recitals, etc

  	
  37

  
	
  Section 6.04

  	
  Trustee,
  Authenticating Agent, Paying Agents, Transfer

  	
   

  
	
   

  	
  Agents or
  Registrar May Own Debt Securities

  	
  38

  
	
  Section 6.05

  	
  Moneys to be
  Held in Trust

  	
  38

  
	
  Section 6.06

  	
  Compensation and
  Expenses of Trustee

  	
  38

  
	
  Section 6.07

  	
  Officers’
  Certificate as Evidence

  	
  39

  
	
  Section 6.08

  	
  Eligibility of
  Trustee

  	
  39

  
	
  Section 6.09

  	
  Resignation or
  Removal of Trustee

  	
  40

  
	
  Section 6.10

  	
  Acceptance by
  Successor Trustee

  	
  41

  
	
  Section 6.11

  	
  Succession by
  Merger, etc

  	
  42

  
	
  Section 6.12

  	
  Authenticating
  Agents

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  CONCERNING THE SECURITYHOLDERS

  	
  43

  
	
   

  	
   

  
	
  Section 7.01

  	
  Action by
  Securityholders

  	
  43

  
	
  Section 7.02

  	
  Proof of
  Execution by Securityholders

  	
  44

  
	
  Section 7.03

  	
  Who Are Deemed
  Absolute Owners

  	
  44

  
	
  Section 7.04

  	
  Debt Securities
  Owned by Company Deemed Not Outstanding

  	
  45

  
	
  Section 7.05

  	
  Revocation of
  Consents; Future Holders Bound

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  SECURITYHOLDERS’ MEETINGS

  	
  45

  
	
   

  	
   

  
	
  Section 8.01

  	
  Purposes of
  Meetings

  	
  45

  
	
  Section 8.02

  	
  Call of Meetings
  by Trustee

  	
  46

  
	
  Section 8.03

  	
  Call of Meetings
  by Company or Securityholders

  	
  46

  
	
  Section 8.04

  	
  Qualifications
  for Voting

  	
  46

  
	
  Section 8.05

  	
  Regulations

  	
  46

  
	
  Section 8.06

  	
  Voting

  	
  47

  
	
  Section 8.07

  	
  Quorum; Actions

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX
  SUPPLEMENTAL INDENTURES

  	
  48

  
	
   

  	
   

  
	
  Section 9.01

  	
  Supplemental
  Indentures without Consent of Securityholders

  	
  48

  
	
  Section 9.02

  	
  Supplemental
  Indentures with Consent of Securityholders

  	
  50

  

 

 ii
 

 

	
  Section 9.03

  	
  Effect of
  Supplemental Indentures

  	
  51

  
	
  Section 9.04

  	
  Notation on Debt
  Securities

  	
  51

  
	
  Section 9.05

  	
  Evidence of
  Compliance of Supplemental Indenture to be Furnished to Trustee

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE X
  REDEMPTION OF SECURITIES

  	
  52

  
	
   

  	
   

  
	
  Section 10.01

  	
  Optional
  Redemption

  	
  52

  
	
  Section 10.02

  	
  Special Event
  Redemption

  	
  52

  
	
  Section 10.03

  	
  Notice of
  Redemption; Selection of Debt Securities

  	
  52

  
	
  Section 10.04

  	
  Payment of Debt
  Securities Called for Redemption

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI
  CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

  	
  53

  
	
   

  	
   

  
	
  Section 11.01

  	
  Company May
  Consolidate, etc., on Certain Terms

  	
  53

  
	
  Section 11.02

  	
  Successor Entity
  to be Substituted

  	
  54

  
	
  Section 11.03

  	
  Opinion of
  Counsel to be Given to Trustee

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII
  SATISFACTION AND DISCHARGE OF INDENTURE

  	
  55

  
	
   

  	
   

  
	
  Section 12.01

  	
  Discharge of
  Indenture

  	
  55

  
	
  Section 12.02

  	
  Deposited Moneys
  to be Held in Trust by Trustee

  	
  56

  
	
  Section 12.03

  	
  Paying Agent to
  Repay Moneys Held

  	
  56

  
	
  Section 12.04

  	
  Return of
  Unclaimed Moneys

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  Indenture and
  Debt Securities Solely Corporate Obligations

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV
  MISCELLANEOUS PROVISIONS

  	
  57

  
	
   

  	
   

  
	
  Section 14.01

  	
  Successors

  	
  57

  
	
  Section 14.02

  	
  Official Acts by
  Successor Entity

  	
  57

  
	
  Section 14.03

  	
  Surrender of
  Company Powers

  	
  57

  
	
  Section 14.04

  	
  Addresses for
  Notices, etc

  	
  57

  
	
  Section 14.05

  	
  Governing Law

  	
  57

  
	
  Section 14.06

  	
  Evidence of
  Compliance with Conditions Precedent

  	
  57

  
	
  Section 14.07

  	
  Business Day
  Convention

  	
  58

  
	
  Section 14.08

  	
  Table of Contents,
  Headings, etc

  	
  58

  
	
  Section 14.09

  	
  Execution in
  Counterparts

  	
  58

  
	
  Section 14.10

  	
  Separability

  	
  58

  
	
  Section 14.11

  	
  Assignment

  	
  59

  
	
  Section 14.12

  	
  Acknowledgment
  of Rights

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV
  SUBORDINATION OF DEBT SECURITIES

  	
  59

  

 

 iii
 

 

	
  Section 15.01

  	
  Agreement to Subordinate

  	
  59

  
	
  Section 15.02

  	
  Default on
  Senior Indebtedness

  	
  60

  
	
  Section 15.03

  	
  Liquidation;
  Dissolution; Bankruptcy

  	
  60

  
	
  Section 15.04

  	
  Subrogation

  	
  61

  
	
  Section 15.05

  	
  Trustee to
  Effectuate Subordination

  	
  62

  
	
  Section 15.06

  	
  Notice by the
  Company

  	
  62

  
	
  Section 15.07

  	
  Rights of the
  Trustee; Holders of Senior Indebtedness

  	
  63

  
	
  Section 15.08

  	
  Subordination
  May Not Be Impaired

  	
  63

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of Debt
  Security

  	
   

  
	
  EXHIBIT B

  	
  Form of
  Certificate of Officer of the Company

  	
   

  

 

 iv

THIS INDENTURE, dated as
of December 7, 2006, between HF Financial Corp., a bank holding company
incorporated in the State of Delaware (hereinafter sometimes called the “Company”),
and Wilmington Trust Company, a Delaware banking corporation, as trustee (hereinafter
sometimes called the “Trustee”).

W I T N E S S E T H :

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

NOW, THEREFORE, in
consideration of the premises, and the purchase of the Debt Securities by the
holders thereof, the Company covenants and agrees with the Trustee for the
equal and proportionate benefit of the respective holders from time to time of
the Debt Securities as follows:

ARTICLE I

DEFINITIONS

Section
1.01                                                        Definitions.

The terms defined in this
Section 1.01 (except as herein otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and of any
indenture supplemental hereto shall have the respective meanings specified in
this Section 1.01. All accounting terms used herein and not expressly defined
shall have the meanings assigned to such terms in accordance with generally
accepted accounting principles and the term “generally accepted accounting
principles” means such accounting principles as are generally accepted in the
United States at the time of any computation. 
The words “herein,” “hereof” and “hereunder” and other words of similar
import refer to this Indenture as a whole and not to any particular Article, Section
or other subdivision.

“Additional
Amounts” has the meaning set forth in Section 3.06.

“Additional
Provisions” has the meaning set forth in Section 15.01.

“Administrative Action” has the meaning specified
within the definition of “Tax Event” in this Section 1.01.

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

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

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

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

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

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

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

“Calculation Agent” means
the Person identified as “Trustee” in the first paragraph hereof with respect
to the Debt Securities and the Institutional Trustee with respect to the Trust
Securities.

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

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

“Capital Treatment
Event” means, if the Company is organized and existing under the laws of the
United States or any state thereof or the District of Columbia, the receipt by
the Company and the Trust of an Opinion of Counsel experienced in such matters
to the effect that, as a result of (a) any amendment to, or change in, the
laws, rules or regulations of the United States or any political subdivision
thereof or therein, or any rules, guidelines or policies of an applicable
regulatory authority for the Company or (b) 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 Debt Securities, there is more than an insubstantial risk that the Company
will not, within 90 days of the date of such opinion, be entitled to treat
Capital Securities as “Tier 1 Capital” (or the then equivalent if the Company
were subject to such capital requirement) applied as if the Company (or its
successors) were a bank holding company for purposes of the capital adequacy
guidelines of the Federal Reserve (or any successor regulatory authority with
jurisdiction over bank holding companies), or any capital adequacy guidelines
as then in effect and applicable to the Company; provided, however,
that the

 2
 

inability of the Company
to treat all or any portion of the aggregate Liquidation Amount of the Capital
Securities as “Tier 1 Capital” shall not constitute the basis for a Capital
Treatment Event if such inability results from the Company having preferred
stock, minority interests in consolidated subsidiaries and any other class of
security or interest which the Federal Reserve (or any successor regulatory
authority with jurisdiction over bank holding companies) may now or hereafter
accord “Tier 1 Capital” treatment that, in the aggregate, exceed the amount
which may now or hereafter qualify for treatment as “Tier 1 Capital” under
applicable capital adequacy guidelines the Federal Reserve (or any successor
regulatory authority with jurisdiction over bank holding companies), applied as
if the Company (or its successor) were a bank holding company for purposes of
the capital adequacy guidelines of the Federal Reserve (or any successor
regulatory authority with jurisdiction over bank holding companies); provided,
further, however, that the distribution of the Debt Securities in
connection with the liquidation of the Trust by the Company shall not in and of
itself constitute a Capital Treatment Event unless such liquidation shall have
occurred in connection with a Tax Event or an Investment Company Event.  For the avoidance of doubt, the inability of
the Company to treat all or any portion of the aggregate Liquidation Amount of
the Capital Securities as “Tier 1 Capital” as a result of the changes effected
by the final rule adopted by the Federal Reserve on March 1, 2005 shall not
constitute the basis for a Capital Treatment Event.

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

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

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

“Company” means HF
Financial Corp., a bank holding company incorporated in the State of Delaware,
and, subject to the provisions of Article XI, shall include its successors and
assigns.

“Debt Security” or “Debt Securities” has the meaning
stated in the first recital of this Indenture.

“Debt Security
Register” has the meaning specified in Section 2.05.

“Declaration” means the Amended and Restated
Declaration of Trust of the Trust, dated as of December 7, 2006, as amended or
supplemented from time to time.

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

“Defaulted
Interest” has the meaning set forth in Section 2.08.

 3
 

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

“Depositary” means an
organization registered as a clearing agency under the Exchange Act that is
designated as Depositary by the Company. 
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 or on behalf of the Depositary.

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

“Event of Default” means
any event specified in Section 5.01, which has continued for the period of
time, if any, and after the giving of the notice, if any, therein designated.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

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

“Federal Reserve”
means the Board of Governors of the Federal Reserve System.

“Global Debenture” means
a global certificate that evidences all or part of the Debt Securities the
ownership and transfers of which shall be reflected and made, as applicable,
through book entries by the Depositary and the Depositary Participants.

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

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

“Interest Payment Date” means March 1, June 1,
September 1 and December 1 of each year, commencing on March 1, 2007, subject
to Section 14.07.

“Interest Period”
has the meaning set forth in Section 2.08.

“Interest Rate” means a
per annum rate of interest equal to (1) with respect to any Interest Period
prior to the Interest Period commencing on the Interest Payment Date in March,
2012, 6.61% and (2) with respect to any Interest Period commencing on or after
the Interest Payment Date in March, 2012, LIBOR, as determined on the LIBOR
Determination Date for such Interest Period plus, 1.83%; provided, however,
that the Interest Rate for any Interest Period commencing on or after the
Interest Payment Date in March, 2012 may not exceed the highest rate permitted
by New York law, as the same may be modified by United States law of general
application.

 “Investment Company Event” means the receipt
by the Company and the Trust of an Opinion of Counsel experienced in such
matters to the effect that, as a result of a change in law or regulation or
written change in interpretation or application of law or regulation by any

 4
 

legislative body, court, governmental agency or
regulatory authority, there is more than an insubstantial risk that the Trust
is or, within 90 days of the date of such opinion will be, considered an “investment
company” that is required to be registered under the Investment Company Act of
1940, as amended, which change becomes effective on or after the date of the
original issuance of the Debt Securities.

“LIBOR” means the London Interbank Offered Rate for
three-month U.S. Dollar deposits in Europe as determined by the Calculation
Agent according to Section 2.10(b).

“LIBOR Banking Day”
has the meaning set forth in Section 2.10(b)(i).

“LIBOR Business
Day” has the meaning set forth in Section 2.10(b)(i).

“LIBOR
Determination Date” has the meaning set forth in Section 2.10(b)(i).

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

“Major Depository
Institution Subsidiary” means any subsidiary of the Company that (i) is a
depository institution and (ii) meets the definition of “significant subsidiary”
within the meaning of Rule 405 under the Securities Act.

“Maturity Date”
means March 1, 2037, subject to Section 14.07.

“Officers’ Certificate”
means a certificate signed by the Chairman of the Board, the Vice Chairman, the
President or any Vice President, and by the Chief Financial Officer, the
Treasurer, an Assistant Treasurer, the Comptroller, an Assistant Comptroller,
the Secretary or an Assistant Secretary of the Company, and delivered to the
Trustee.  Each such certificate shall
include the statements provided for in Section 14.06 if and to the extent
required by the provisions of such Section.

“Opinion of Counsel”
means an opinion in writing signed by legal counsel, who may be an employee of
or counsel to the Company or may be other counsel reasonably satisfactory to
the Trustee.  Each such opinion shall
include the statements provided for in Section 14.06 if and to the extent
required by the provisions of such Section.

“OTS” means the
Office of Thrift Supervision.

The term “outstanding,”
when used with reference to Debt Securities, subject to the provisions of
Section 7.04, means, as of any particular time, all Debt Securities
authenticated and delivered by the Trustee or the Authenticating Agent under
this Indenture, except

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

(b)                                 Debt
Securities, or portions thereof, for the payment or redemption of which moneys
in the necessary amount shall have been deposited in trust with the Trustee or
with any Paying Agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own Paying
Agent); provided, that, if such

 5
 

Debt Securities, or portions thereof, are to be
redeemed prior to maturity thereof, notice of such redemption shall have been
given as provided in Articles X and XIV or provision satisfactory to the
Trustee shall have been made for giving such notice; and

(c)                                  Debt
Securities paid pursuant to Section 2.06 or in lieu of or in substitution for
which other Debt Securities shall have been authenticated and delivered
pursuant to the terms of Section 2.06 unless proof satisfactory to the Company
and the Trustee is presented that any such Debt Securities are held by bona
fide holders in due course.

“Optional
Redemption Date” has the meaning set forth in Section 10.01.

“Optional Redemption
Price” means an amount in cash equal to 100% of the principal amount of the
Debt Securities being redeemed plus unpaid interest accrued on such Debt
Securities to the related Optional Redemption Date.

“Paying Agent” has
the meaning set forth in Section 3.04(e).

“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.

“Predecessor Security” of
any particular Debt Security means every previous Debt Security evidencing all
or a portion of the same debt as that evidenced by such particular Debt
Security; and, for the purposes of this definition, any Debt Security
authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or
stolen Debt Security shall be deemed to evidence the same debt as the lost,
destroyed or stolen Debt Security.

“Principal Office of the
Trustee” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered, which at all times
shall be located within the United States and at the time of the execution of
this Indenture shall be Rodney Square North, 1100 North Market Street,
Wilmington, DE 19890-0001.

“Reference Banks”
has the meaning set forth in Section 2.10(b)(ii).

“Resale Restriction
Termination Date” means, with respect to any Debt Security, the date which is
the later of (i) two years (or such shorter period of time as permitted by Rule
144(k) under the Securities Act) after the later of (y) the date of original
issuance of such Debt Security and (z) the last date on which the Company or
any Affiliate (as defined in Rule 405 under the Securities Act) of the Company
was the holder of such Debt Security (or any predecessor thereto) and (ii) such
later date, if any, as may be required by any subsequent change in applicable
law.

“Responsible Officer”
means, with respect to the Trustee, any officer within the Principal Office of
the Trustee with direct responsibility for the administration of the Indenture,
including any vice-president, any assistant vice-president, any secretary, any
assistant secretary, the treasurer, any assistant treasurer, any trust officer
or other officer of the Principal Office of the Trustee customarily performing
functions similar to those performed by any of the above

 6
 

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.

“Securities Act”
means the Securities Act of 1933, as amended.

“Securityholder,” “holder
of Debt Securities” or other similar terms, means any Person in whose name at
the time a particular Debt Security is registered on the Debt Security
Register.

“Senior Indebtedness”
means, with respect to the Company, (i) the principal, premium, if any, and
interest in respect of (A) indebtedness of the Company for money borrowed, as
well as similar obligations arising from off-balance sheet guarantees and
direct credit substitutes and (B) indebtedness evidenced by securities,
debentures, notes, bonds or other similar instruments issued by the Company,
(ii) all capital lease obligations of the Company, (iii) all obligations of the
Company issued or assumed as the deferred purchase price of property, all
conditional sale obligations of the Company and all obligations of the Company
under any title retention agreement (but excluding trade accounts payable and
other accrued liabilities arising in the ordinary course of business), (iv) all
obligations of the Company for the reimbursement of any letter of credit, any
banker’s acceptance, any security purchase facility, any repurchase agreement
or similar arrangement, all obligations associated with derivative products
such as interest rate and foreign exchange contracts and commodity contracts,
any interest rate swap, any other hedging arrangement, any obligation under
options or any similar credit or other transaction, (v) all obligations of the
type referred to in clauses (i) through (iv) above of other Persons for the
payment of which the Company is responsible or liable as obligor, guarantor or
otherwise and (vi) all obligations of the type referred to in clauses (i)
through (v) above of other Persons secured by any lien on any property or asset
of the Company (whether or not such obligation is assumed by the Company),
whether the obligations of the type referred to in clauses (i) through (vi)
above were incurred on or prior to the date of this Indenture or thereafter
incurred, unless, with the prior approval of the OTS if not otherwise generally
approved, it is provided in the instrument creating or evidencing the same or
pursuant to which the same is outstanding that such obligations are not
superior or are pari passu in
right of payment to the Debt Securities; provided, however, that
Senior Indebtedness shall not include (A) any debt securities issued to any
trust other than the Trust (or a trustee of such trust) that is a financing
vehicle of the Company (a “financing entity”) in connection with the issuance
by such financing entity of equity or other securities in transactions
substantially similar in structure to the transactions contemplated hereunder
and in the Declaration or (B) any guarantees of the Company in respect of the
equity or other securities of any financing entity referred to in clause (A)
above.

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

“Special
Redemption Date” has the meaning set forth in Section 10.02.

“Special Redemption Price” means, with respect to the
redemption of any Debt Security following a Special Event, an amount in cash
equal to 103.30% of the principal amount

 7
 

of Debt Securities to be redeemed prior to March 1,
2008 and thereafter equal to the percentage of the principal amount of the Debt
Securities that is specified below for the Special Redemption Date plus, in
each case, unpaid interest accrued thereon to the Special Redemption Date:

	
  Special Redemption During the 12-Month

  	
   

  	
   

  	
   

  
	
  Period Beginning March 1,

  	
   

  	
  Percentage of Principal Amount

  	
   

  
	
  2008

  	
   

  	
  102.64%

  	
   

  
	
  2009

  	
   

  	
  101.98%

  	
   

  
	
  2010

  	
   

  	
  101.32%

  	
   

  
	
  2011

  	
   

  	
  100.66%

  	
   

  
	
  2012 and
  thereafter

  	
   

  	
  100.00%

  	
   

  

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

“Tax Event” means the
receipt by the Company and the Trust of an Opinion of Counsel experienced in
such matters to the effect that, as a result of any amendment to or change
(including any announced prospective change) in the laws or any regulations
thereunder of the United States or any political subdivision or taxing
authority thereof or therein, or as a result of any official administrative
pronouncement (including any private letter ruling, technical advice
memorandum, regulatory procedure, notice or announcement (an “Administrative
Action”)) or judicial decision interpreting or applying such laws or
regulations, regardless of whether such Administrative Action or judicial
decision is issued to or in connection with a proceeding involving the Company
or the Trust and whether or not subject to review or appeal, which amendment,
clarification, change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original
issuance of the Debt Securities, 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 Debt Securities; (ii) if the Company is organized and existing
under the laws of the United States or any state thereof or the District of
Columbia, interest payable by the Company on the Debt Securities is not, or
within 90 days of the date of such opinion, will not be, deductible by the
Company, in whole or in part, for United States federal income tax purposes; or
(iii) the Trust

 8
 

is, or will be within 90 days of the date of such
opinion, subject to or otherwise required to pay, or required to withhold from
distributions to holders of Trust Securities, more than a de minimis amount of
other taxes (including withholding taxes), duties, assessments or other
governmental charges.

“Trust” means HF
Financial Capital Trust V, the Delaware statutory trust, or any other similar
trust created for the purpose of issuing Capital Securities in connection with
the issuance of Debt Securities under this Indenture, of which the Company is
the sponsor.

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

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

“Trustee” means the
Person identified as “Trustee” in the first paragraph hereof, and, subject to
the provisions of Article VI hereof, shall also include its successors and assigns
as Trustee hereunder.

“United States”
means the United States of America and the District of Columbia.

“U.S. Person” has the meaning given to United States
Person as set forth in Section 7701(a)(30) of the Code.

ARTICLE II

DEBT SECURITIES

Section
2.01                                                        Authentication
and Dating.

Upon the execution and
delivery of this Indenture, or from time to time thereafter, Debt Securities in
an aggregate principal amount not in excess of $10,310,000 may be executed and
delivered by the Company to the Trustee for authentication, and the Trustee
shall thereupon authenticate and make available for delivery said Debt
Securities to or upon the written order of the Company, signed by its Chairman
of the Board of Directors, Vice Chairman, President or Chief Financial Officer
or one of its Vice Presidents, without any further action by the Company
hereunder.  In authenticating such Debt
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Debt Securities, the Trustee shall be entitled to receive,
and (subject to Section 6.01) shall be fully protected in relying upon a copy
of any Board Resolution or Board Resolutions relating thereto and, if
applicable, an appropriate record of any action taken pursuant to such
resolution, in each case certified by the Secretary or an Assistant Secretary
or other officers with appropriate delegated authority of the Company as the
case may be.

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

 9
 

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

Section
2.02                                                        Form
of Trustee’s Certificate of Authentication.

The Trustee’s certificate of authentication on all
Debt Securities shall be in substantially the following form:

This certificate represents Debt Securities referred
to in the within-mentioned Indenture.

	
  

  	
  Wilmington Trust
  Company,

  not in its individual capacity

  but solely as trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

Section
2.03                                                        Form
and Denomination of Debt Securities.

The Debt Securities shall
be substantially in the form of Exhibit A hereto.  The Debt Securities shall be in registered
form without coupons and in minimum denominations of $100,000 and any multiple
of $1,000 in excess thereof.  The Debt
Securities shall be numbered, lettered, or otherwise distinguished in such
manner or in accordance with such plans as the officers executing the same may
determine with the approval of the Trustee as evidenced by the execution and
authentication thereof.

Section
2.04                                                        Execution
of Debt Securities.

The Debt Securities shall
be signed in the name and on behalf of the Company by the manual or facsimile
signature of its Chairman of the Board of Directors, Vice Chairman, President
or Chief Financial Officer or one of its Executive Vice Presidents, Senior Vice
Presidents or Vice Presidents, under its corporate seal (if legally required)
which may be affixed thereto or printed, engraved or otherwise reproduced
thereon, by facsimile or otherwise, and which need not be attested.  Only such Debt Securities as shall bear
thereon a certificate of authentication substantially in the form herein before
recited, executed by the Trustee or the Authenticating Agent by the manual or
facsimile signature of an authorized officer, shall be entitled to the benefits
of this Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee or the
Authenticating Agent upon any Debt Security executed by the Company shall be
conclusive evidence that the Debt Security so authenticated has been duly
authenticated and delivered hereunder and that the holder is entitled to the
benefits of this Indenture.

In case any officer of
the Company who shall have signed any of the Debt Securities shall cease to be
such officer before the Debt Securities so signed shall have been authenticated
and delivered by the Trustee or the Authenticating Agent, or disposed of by the

 10
 

Company, such Debt Securities nevertheless may be
authenticated and delivered or disposed of as though the Person who signed such
Debt Securities had not ceased to be such officer of the Company; and any Debt
Security may be signed on behalf of the Company by such Persons as, at the
actual date of the execution of such Debt Security, shall be the proper
officers of the Company, although at the date of the execution of this
Indenture any such person was not such an officer.

Every Debt
Security shall be dated the date of its authentication.

Section
2.05                                                        Exchange
and Registration of Transfer of Debt Securities.

The Company shall cause
to be kept, at the office or agency maintained for the purpose of registration
of transfer and for exchange as provided in Section 3.02, a register (the “Debt
Security Register”) for the Debt Securities issued hereunder in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide
for the registration and transfer of all Debt Securities as provided in this
Article II.  Such register shall be in
written form or in any other form capable of being converted into written form
within a reasonable time.

Debt Securities to be
exchanged may be surrendered at the Principal Office of the Trustee or at any
office or agency to be maintained by the Company for such purpose as provided
in Section 3.02, and the Company shall execute, the Company or the Trustee shall
register and the Trustee or the Authenticating Agent shall authenticate and
make available for delivery in exchange therefor, the Debt Security or Debt
Securities which the Securityholder making the exchange shall be entitled to
receive.  Upon due presentment for
registration of transfer of any Debt Security at the Principal Office of the
Trustee or at any office or agency of the Company maintained for such purpose
as provided in Section 3.02, the Company shall execute, the Company or the
Trustee shall register and the Trustee or the Authenticating Agent shall
authenticate and make available for delivery in the name of the transferee or
transferees, a new Debt Security for a like aggregate principal amount.
Registration or registration of transfer of any Debt Security by the Trustee or
by any agent of the Company appointed pursuant to Section 3.02, and delivery of
such Debt Security, shall be deemed to complete the registration or
registration of transfer of such Debt Security.

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

No service charge shall
be made for any exchange or registration of transfer of Debt Securities, but
the Company or the Trustee may require payment of a sum sufficient to cover any
tax, fee or other governmental charge that may be imposed in connection
therewith other than exchanges pursuant to Section 2.07, Section 9.04 or
Section 10.04 not involving any transfer.

 11
 

The Company or the
Trustee shall not be required to exchange or register a transfer of any Debt
Security for a period of 15 days immediately preceding the date of selection of
Debt Securities for redemption.

Notwithstanding the
foregoing, Debt Securities may not be transferred prior to the Resale
Restriction Termination Date except in compliance with the legend set forth
below, unless otherwise determined by the Company in accordance with applicable
law, which legend shall be placed on each Debt Security:

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS.  NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  THE HOLDER OF THIS SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY
BE, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (i) TWO YEARS
(OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE
SECURITIES ACT) AFTER THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND
(Z) THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE (AS DEFINED IN RULE 405
UNDER THE SECURITIES ACT) OF THE COMPANY WAS THE HOLDER OF THIS SECURITY OR
SUCH INTEREST OR PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (ii) SUCH LATER
DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW,
ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER”, AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7) OR (8) OF
RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR SUCH
INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR
OUTSIDE THE UNITED STATES PURSUANT TO REGULATION S UNDER THE SECURITIES ACT
OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE

 12
 

OR TRANSFER PURSUANT TO CLAUSE (C) OR
(E) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A
COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. 
THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY
ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT WILL
COMPLY WITH THE FOREGOING RESTRICTIONS.

THE
HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS
ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES, REPRESENTS AND
WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR
OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY
WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S
INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY
ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, 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 SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE
OR HOLDING.  ANY PURCHASER OR HOLDER OF
THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR THEREOF, AS THE CASE MAY BE, 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 AND HOLDING WILL NOT
RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION.

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

THIS SECURITY WILL BE ISSUED AND MAY
BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF
$1,000 IN

 13
 

EXCESS THEREOF.  ANY ATTEMPTED TRANSFER OF THIS SECURITY IN
DENOMINATIONS OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL
EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE
HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN FOR ANY
PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE SHALL
BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN.

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”).  THIS
OBLIGATION IS SUBORDINATED TO THE CLAIMS OF THE DEPOSITORS AND THE CLAIMS OF
GENERAL AND SECURED CREDITORS OF THE COMPANY, IS INELIGIBLE AS COLLATERAL FOR A
LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES AND IS NOT SECURED.

Section
2.06                                                        Mutilated,
Destroyed, Lost or Stolen Debt Securities.

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

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

Every substituted Debt
Security issued pursuant to the provisions of this Section 2.06 by virtue of
the fact that any such Debt Security is destroyed, lost or stolen shall
constitute an additional contractual obligation of the Company, whether or not
the destroyed, lost or stolen Debt Security shall be found at any time, and
shall be entitled to all the benefits of this Indenture

 14
 

equally and proportionately with any and all other
Debt Securities duly issued hereunder. 
All Debt Securities shall be held and owned upon the express condition
that, to the extent permitted by applicable law, the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Debt Securities and shall preclude any and all other rights or
remedies notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment of negotiable
instruments or other securities without their surrender.

Section
2.07                                                        Temporary
Debt Securities.

Pending the preparation
of definitive Debt Securities, the Company may execute and the Trustee shall
authenticate and make available for delivery temporary Debt Securities that are
typed, printed or lithographed. Temporary Debt Securities shall be issuable in
any authorized denomination, and substantially in the form of the definitive
Debt Securities but with such omissions, insertions and variations as may be
appropriate for temporary Debt Securities, all as may be determined by the
Company.  Every such temporary Debt
Security shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with the
same effect, as the definitive Debt Securities. 
Without unreasonable delay, the Company will execute and deliver to the
Trustee or the Authenticating Agent definitive Debt Securities and thereupon
any or all temporary Debt Securities may be surrendered in exchange therefor,
at the Principal Office of the Trustee or at any office or agency maintained by
the Company for such purpose as provided in Section 3.02, and the Trustee or
the Authenticating Agent shall authenticate and make available for delivery in
exchange for such temporary Debt Securities a like aggregate principal amount
of such definitive Debt Securities.  Such
exchange shall be made by the Company at its own expense and without any charge
therefor except that in case of any such exchange involving a registration of transfer
the Company may require payment of a sum sufficient to cover any tax, fee or
other governmental charge that may be imposed in relation thereto.  Until so exchanged, the temporary Debt
Securities shall in all respects be entitled to the same benefits under this
Indenture as definitive Debt Securities authenticated and delivered hereunder.

Section
2.08                                                        Payment
of Interest.

Each Debt Security will
bear interest at the then applicable Interest Rate (i) in the case of the
initial Interest Period, for the period from, and including, the date of
original issuance of such Debt Security to, but excluding, the initial Interest
Payment Date and (ii) thereafter, for the period from, and including, the first
day following the end of the preceding Interest Period to, but excluding, the
applicable Interest Payment Date or, in the case of the last Interest Period,
the related Optional Redemption Date, Special Redemption Date or Maturity Date,
as applicable (each such period, an “Interest Period”), on the principal
thereof, on any overdue principal and (to the extent that payment of such
interest is enforceable under applicable law) on Deferred Interest and on any
overdue installment of interest (including Defaulted Interest), payable
(subject to the provisions of Article XV) on each Interest Payment Date and on
the Maturity Date, any Optional Redemption Date or the Special Redemption Date,
as the case may be.  Interest and any
Deferred Interest on any Debt Security that is payable, and is punctually paid
or duly provided for by the Company, on any Interest Payment Date shall be paid
to the Person in whose name such Debt Security (or one or more Predecessor
Securities) is registered at the close

 15
 

of business on the regular record date for such
interest installment, except that interest and any Deferred Interest payable on
the Maturity Date, any Optional Redemption Date or the Special Redemption Date,
as the case may be, other than any Interest Payment Date shall be paid to the
Person to whom principal is paid.  In
case (i) the Maturity Date of any Debt Security or (ii) any Debt Security or
portion thereof is called for redemption and the related Optional Redemption
Date or the Special Redemption Date, as the case may be, is subsequent to the
regular record date with respect to any Interest Payment Date and prior to such
Interest Payment Date, interest on such Debt Security will be paid upon
presentation and surrender of such Debt Security.

Any interest on any Debt
Security, other than Deferred Interest, that is payable, but is not punctually
paid or duly provided for by the Company, on any Interest Payment Date (herein
called “Defaulted Interest”) shall forthwith cease to be payable to the holder
on the relevant regular record date by virtue of having been such holder, and
such Defaulted Interest shall be paid by the Company to the Persons in whose
names such Debt Securities (or their respective Predecessor Securities) are
registered at the close of business on a special record date for the payment of
such Defaulted Interest, which shall be fixed in the following manner:  the Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each such
Debt Security and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements reasonably satisfactory to the Trustee for such deposit
prior to the date of the proposed payment, such money when deposited to be held
in trust for the benefit of the Persons entitled to such Defaulted Interest as
provided in this paragraph.  Thereupon
the Trustee shall fix a special record date for the payment of such Defaulted
Interest, which shall not be more than fifteen nor less than ten days prior to
the date of the proposed payment and not less than ten days after the receipt
by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company
of such special record date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the
special record date therefor to be mailed, first class postage prepaid, to each
Securityholder at his or her address as it appears in the Debt Security Register,
not less than ten days prior to such special record date.  Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Debt Securities (or their respective Predecessor Securities) are
registered on such special record date and thereafter the Company shall have no
further payment obligation in respect of the Defaulted Interest.

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

The term “regular record date”, as used in this
Section, shall mean the fifteenth day prior to the applicable Interest Payment
Date, whether or not such day is a Business Day.

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

 16
 

Section
2.09                                                        Cancellation
of Debt Securities Paid, etc.

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

Section
2.10                                                        Computation
of Interest.

(a)                                The
amount of interest payable on the Debt Securities will be computed (i) with
respect to any Interest Period prior to the Interest Period commencing on the
Interest Payment Date in March, 2012, on the basis of a 360-day year consisting
of twelve 30-day months and (ii) with respect to any Interest Period commencing
on or after the Interest Payment Date in March, 2012, on the basis of a 360-day
year and the actual number of days elapsed in such Interest Period.

(b)                               LIBOR
shall be determined by the Calculation Agent for each Interest Period
commencing on or after the Interest Payment Date in March, 2012 in accordance
with the following provisions:

(i)                                     On
the second LIBOR Business Day (provided, that on such day commercial banks are
open for business (including dealings in foreign currency deposits) in London
(a “LIBOR Banking Day”), and otherwise the next preceding LIBOR Business Day
that is also a LIBOR Banking Day) prior to the Interest Payment Date that
commences such Interest Period (each such day, a “LIBOR Determination Date”),
LIBOR shall equal the rate, as obtained by the Calculation Agent, for
three-month U.S. Dollar deposits in Europe, which appears on Telerate (as
defined in the International Swaps and Derivatives Association, Inc. 2000 Interest
Rate and Currency Exchange Definitions) page 3750 or such other page as may
replace such page 3750, as of 11:00 a.m. (London time) on such LIBOR
Determination Date, as reported by Bloomberg Financial Markets Commodities News
or any successor service (“Telerate Page 3750”).  “LIBOR Business Day” means any day that is
not a Saturday, Sunday or other day on which commercial banking institutions in
The City of New York or Wilmington, Delaware are authorized or obligated by law
or executive order to be closed.  If such
rate is superseded on Telerate Page 3750 by a corrected rate before 12:00 noon
(London time) on such LIBOR Determination Date, the corrected rate as so
substituted will be LIBOR for such LIBOR Determination Date.

(ii)                                  If,
on such LIBOR Determination Date, such rate does not appear on Telerate Page
3750, the Calculation Agent shall determine the arithmetic mean of the

 17
 

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

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

(c)                                  All
percentages resulting from any calculations on the Debt 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).

(d)                                 On
each LIBOR Determination Date, the Calculation Agent shall notify, in writing,
the Company and the Paying Agent of the applicable Interest Rate that applies
to the related Interest Period.  The
Calculation Agent shall, upon the request of a holder of any Debt Securities,
inform such holder of the Interest Rate that applies to the related Interest
Period.  All calculations made by the
Calculation Agent in the absence of manifest error shall be conclusive for all
purposes and binding on the Company and the holders of the Debt
Securities.  The Paying Agent shall be
entitled to rely on information received from the Calculation Agent or the
Company as to the applicable Interest Rate. 
The Company shall, from time to time, provide any necessary information
to the Paying Agent relating to any original issue discount and interest on the
Debt Securities that is included in any payment and reportable for taxable
income calculation purposes.

Section
2.11                                                        Extension
of Interest Payment Period.

So long as no Event of Default pursuant to Sections
5.01(b), (e), (f), (g), (h) or (i) of this Indenture has occurred and is
continuing, the Company shall have the right, from time to time and without
causing an Event of Default, to defer payments of interest on the Debt
Securities by extending the interest payment period on the Debt Securities at
any time and from time to time during the term of the Debt Securities, for up
to 20 consecutive quarterly periods (each such extended interest payment
period, together with all previous and further consecutive extensions thereof,
is referred to herein as an “Extension Period”).  No Extension Period may end on a date other
than an Interest Payment Date or extend beyond the Maturity Date, any Optional
Redemption Date or the Special Redemption Date, as the case may be.  During any Extension

 18
 

Period, interest will continue to accrue on the Debt
Securities, and interest on such accrued interest (such accrued interest and
interest thereon referred to herein as “Deferred Interest”) will accrue at an
annual rate equal to the Interest Rate applicable during such Extension Period,
compounded quarterly from the date such Deferred Interest would have been
payable were it not for the Extension Period, to the extent permitted by
applicable law.  No interest or Deferred
Interest (except any Additional Amounts that may be due and payable) shall be
due and payable during an Extension Period, except at the end thereof.  At the end of any Extension Period, the
Company shall pay all Deferred Interest then accrued and unpaid on the Debt
Securities; provided, however, that during any Extension Period,
the Company shall be subject to the restrictions set forth in Section
3.08.  Prior to the termination of any
Extension Period, the Company may further extend such Extension Period, provided,
that no Extension Period (including all previous and further consecutive
extensions that are part of such Extension Period) shall exceed 20 consecutive
quarterly periods.  Upon the termination
of any Extension Period and upon the payment of all Deferred Interest, the
Company may commence a new Extension Period, subject to the foregoing
requirements.  The Company must give the
Trustee notice of its election to begin or extend an Extension Period no later
than the close of business on the fifteenth Business Day prior to the
applicable Interest Payment Date.  The
Trustee shall give notice of the Company’s election to begin or extend an
Extension Period to the Securityholders, promptly after receipt of notice from
the Company of its election to begin or extend an Extension Period.

Section
2.12                                                        CUSIP
Numbers.

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

Section
2.13                                                        Global
Debentures.

(a)                                  Upon
the election of an owner of beneficial interests in outstanding Debt Securities,
the Debt Securities owned by such beneficial owner shall be issued in the form
of one or more Global Debentures.  Each
Global Debenture issued under this Indenture shall be registered in the name of
the Depositary designated by the Company for such Global Debenture or a nominee
of such Depositary and delivered to such Depositary or a nominee thereof or
custodian therefor, and each such Global Debenture shall constitute a single
Debt Security for all purposes of this Indenture.

(b)                                 Notwithstanding
any other provision in this Indenture, no Global Debenture may be exchanged in
whole or in part for Debt Securities in certificated form, and no transfer of a
Global Debenture in whole or in part may be, registered in the name of any
Person other than the Depositary for such Global Debenture or a nominee thereof
unless (i) such Depositary advises the Trustee and the Company in writing that
such Depositary is no longer

 19
 

willing or able to properly discharge its
responsibilities as Depositary with respect to such Global Debenture, and no
qualified successor is appointed by the Company within ninety (90) days of
receipt by the Company of such notice, (ii) such Depositary ceases to be a
clearing agency registered under the Exchange Act and no successor is appointed
by the Company within ninety (90) days after obtaining knowledge of such event
or (iii) an Event of Default shall have occurred and be continuing.  Upon obtaining knowledge of the occurrence of
any event specified in clause (i), (ii) or (iii) above, the Trustee shall
notify the Depositary and instruct the Depositary to notify all owners of
beneficial interests in such Global Debenture of the occurrence of such event
and of the availability of Debt Securities in certificated form to such
beneficial owners requesting the same. 
Upon the issuance of such Debt Securities in certificated form and the
registration in the Debt Security Register of such Debt Securities in the names
of the holders thereof, the Trustee shall recognize such holders as holders of
Debt Securities for all purposes of this Indenture and the Debt Securities.

(c)                                  If
any Global Debenture is to be exchanged for Debt Securities in certificated
form or canceled in part, or if a Debt Security in certificated form is to be
exchanged in whole or in part for a beneficial interest in any Global
Debenture, then either (i) such Global Debenture shall be so surrendered for
exchange or cancellation as provided herein or (ii) the principal amount
thereof shall be reduced or increased, subject to Section 2.03, by an amount
equal to the portion thereof to be so exchanged or canceled, or equal to the
principal amount of such Debt Security to be so exchanged for a beneficial
interest therein, as the case may be, by means of an appropriate adjustment
made on the records of the Debt Security registrar, whereupon the Trustee, in
accordance with the Applicable Depositary Procedures, shall instruct the
Depositary or its authorized representative to make a corresponding adjustment
to its records.  Upon any such surrender
or adjustment of a Global Debenture by the Depositary, accompanied by
registration instructions, the Company shall execute and the Trustee shall
authenticate and deliver Debt Securities issuable in exchange for such Global
Debenture (or any portion thereof) in accordance with the instructions of the
Depositary.  The Trustee may conclusively
rely on, and shall be fully protected in relying on, such instructions.

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

(e)                                  Debt
Securities distributed to holders of Book-Entry Capital Securities (as defined
in the Declaration) upon the dissolution of the Trust shall be distributed in
the form of one or more Global Debentures registered in the name of the
Depositary or its nominee, and deposited with the Debt Securities registrar, as
custodian for such Depositary, or with such Depositary, for credit by the
Depositary to the owners of beneficial interests in such Book-Entry Capital
Securities.  Debt Securities distributed
to holders of Capital Securities in certificated form upon the dissolution of
the Trust shall be issued in certificated form.

(f)                                    The
Depositary or its nominee, as the registered owner of a Global Debenture, shall
be the holder of such Global Debenture for all purposes under this Indenture
and the Debt Securities, and owners of beneficial interests in a Global
Debenture shall hold such

 20
 

interests pursuant to the Applicable Depositary
Procedures.  Accordingly, any such owner’s
beneficial interest in a Global Debenture shall be shown only on, and the
transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Depositary Participants.  The Debt Securities registrar and the Trustee
shall be entitled to deal with the Depositary for all purposes of this
Indenture relating to a Global Debenture as the sole holder of the Debt
Security and shall have no obligation to any beneficial owner of a Global
Debenture.  Neither the Trustee nor the
Debt Securities registrar shall have any liability in respect of any transfers
effected by the Depositary or its Depositary Participants.

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

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

(i)                                     Global
Debentures shall bear the following legend on the face thereof:

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

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED

 21
 

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.

ARTICLE III

PARTICULAR COVENANTS OF THE COMPANY

Section 3.01                                                        Payment
of Principal, Premium and Interest; Agreed Treatment of the Debt Securities.

(a)                                  The
Company covenants and agrees that it will duly and punctually pay or cause to
be paid all payments due in respect of the Debt Securities at the place, at the
respective times and in the manner provided in this Indenture and the Debt
Securities.  Payment of the principal of
and premium, if any, and interest on the Debt Securities due on the Maturity
Date, any Optional Redemption Date or the Special Redemption Date, as the case
may be, will be made by the Company in immediately available funds against
presentation and surrender of such Debt Securities.  At the option of the Company, each
installment of interest on the Debt Securities due on an Interest Payment Date
other than the Maturity Date, any Optional Redemption Date or the Special
Redemption Date, as the case may be, may be paid (i) by mailing checks for such
interest payable to the order of the holders of Debt Securities entitled
thereto as they appear on the Debt Security Register or (ii) by wire transfer
of immediately available funds to any account with a banking institution
located in the United States designated by such holders to the Paying Agent no
later than the related record date.  Notwithstanding
anything to the contrary contained in this Indenture or any Debt Security, if
the Trust or the trustee of the Trust is the holder of any Debt Security, then
all payments in respect of such Debt Security shall be made by the Company in
immediately available funds when due.

(b)                                 The
Company will treat the Debt Securities as indebtedness, and the interest
payable in respect of such Debt Securities (including any Additional Amounts)
as interest, for all U.S. federal income tax purposes.  All payments in respect of such Debt
Securities will be made free and clear of U.S. withholding tax provided, that
(i) any beneficial owner thereof that is a “United States person” within the
meaning of Section 7701(a)(30) of the Code (A) has provided an Internal Revenue
Service Form W-9 (or any substitute or successor form) in the manner required
establishing its status as a “United States person” for U.S. federal income tax
purposes, and (B) the Internal Revenue Service has neither notified the Issuer
that the taxpayer identification number furnished by such beneficial owner is
incorrect nor notified the Issuer that there is underreporting by such
beneficial owner, and (ii) any beneficial owner thereof that is not a “United
States person” within the meaning of Section 7701(a)(30) of the Code has
provided an Internal Revenue Service Form W-8 BEN, Internal Revenue Service
Form W-8ECI, or Internal Revenue Service Form W-8EXP, as applicable (or any
substitute or successor form) in the manner required establishing its non-U.S.
status for U.S. federal income tax purposes.

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

 22

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

Section
3.02                                                        Offices
for Notices and Payments, etc.

So long as any of the
Debt Securities remain outstanding, the Company will maintain in Wilmington,
Delaware or in Pierre, South Dakota an office or agency where the Debt
Securities may be presented for payment, an office or agency where the Debt
Securities may be presented for registration of transfer and for exchange as
provided in this Indenture and an office or agency where notices and demands to
or upon the Company in respect of the Debt Securities or of this Indenture may
be served.  The Company will give to the
Trustee written notice of the location of any such office or agency and of any
change of location thereof.  Until
otherwise designated from time to time by the Company in a notice to the
Trustee, or specified as contemplated by Section 2.05, such office or agency
for all of the above purposes shall be the Principal Office of the
Trustee.  In case the Company shall fail
to maintain any such office or agency in Wilmington, Delaware or in Pierre,
South Dakota, or shall fail to give such notice of the location or of any
change in the location thereof, presentations and demands may be made and
notices may be served at the Principal Office of the Trustee.

In addition to any such
office or agency, the Company may from time to time designate one or more
offices or agencies outside Wilmington, Delaware or Pierre, South Dakota where
the Debt Securities may be presented for registration of transfer and for
exchange in the manner provided in this Indenture, and the Company may from
time to time rescind such designation, as the Company may deem desirable or
expedient; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain any such office or agency in Wilmington, Delaware or in Pierre, South
Dakota for the purposes above mentioned. 
The Company will give to the Trustee prompt written notice of any such
designation or rescission thereof.

Section
3.03                                                        Appointments
to Fill Vacancies in Trustee’s Office.

The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in
the manner provided in Section 6.09, a Trustee, so that there shall at all
times be a Trustee hereunder.

Section
3.04                                                        Provision
as to Paying Agent.

(a)                                  If
the Company shall appoint a Paying Agent other than the Trustee, it will cause
such Paying Agent to execute and deliver to the Trustee an instrument in which
such agent shall agree with the Trustee, subject to the provision of this
Section 3.04,

 23
 

(i)                                     that
it will hold all sums held by it as such agent for the payment of all payments
due on the Debt Securities (whether such sums have been paid to it by the
Company or by any other obligor on the Debt Securities) in trust for the
benefit of the holders of the Debt Securities;

(ii)                                  that
it will give the Trustee prompt written notice of any failure by the Company
(or by any other obligor on the Debt Securities) to make any payment on the
Debt Securities when the same shall be due and payable; and

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

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

Whenever the Company
shall have one or more Paying Agents for the Debt Securities, it will, on or
prior to each due date of the payments on the Debt Securities, deposit with a
Paying Agent a sum sufficient to pay all payments so becoming due, such sum to
be held in trust for the benefit of the Persons entitled thereto and (unless
such Paying Agent is the Trustee) the Company shall promptly notify the Trustee
in writing of its action or failure to act.

(c)                                  Anything
in this Section 3.04 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge with respect to
the Debt Securities, or for any other reason, pay, or direct any Paying Agent
to pay, to the Trustee all sums held in trust by the Company or any such Paying
Agent, such sums to be held by the Trustee upon the same terms and conditions
herein contained.

(d)                                 Anything
in this Section 3.04 to the contrary notwithstanding, the agreement to hold
sums in trust as provided in this Section 3.04 is subject to Sections 12.03 and
12.04.

(e)                                  The
Company hereby initially appoints the Trustee to act as paying agent for the
Debt Securities (the “Paying Agent”).

Section
3.05                                                        Certificate
to Trustee.

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

 24
 

Section
3.06                                                        Additional
Amounts.

If and for so long as the
Trust is the holder of all Debt Securities and is subject to or otherwise
required to pay (or is required to withhold from distributions to holders of
Trust Securities) any additional taxes (including withholding taxes), duties,
assessments or other governmental charges as a result of a Tax Event, the
Company will pay such additional amounts (the “Additional Amounts”) on the Debt
Securities or the Trust Securities, as the case may be, as shall be required so
that the net amounts received and retained by the holders of Debt Securities or
Trust Securities, as the case may be, after payment of all taxes (including
withholding taxes), duties, assessments or other governmental charges, will be
equal to the amounts that such holders would have received and retained had no
such taxes (including withholding taxes), duties, assessments or other
governmental charges been imposed.

Whenever in this
Indenture or the Debt Securities there is a reference in any context to the
payment of principal of or premium, if any, or interest on the Debt Securities,
such mention shall be deemed to include mention of payments of the Additional
Amounts provided for in this Section to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to
the provisions of this Section and express mention of the payment of Additional
Amounts (if applicable) in any provisions hereof shall not be construed as
excluding Additional Amounts in those provisions hereof where such express
mention is not made, provided, however, that, notwithstanding
anything to the contrary contained in this Indenture or any Debt Security, the
deferral of the payment of interest during an Extension Period pursuant to
Section 2.11 shall not defer the payment of any Additional Amounts that may be
due and payable.

Section
3.07                                                        Compliance
with Consolidation Provisions.

The Company will not,
while any of the Debt Securities remain outstanding, consolidate with, or merge
into, any other Person, or merge into itself, or sell, convey, transfer or
otherwise dispose of all or substantially all of its property or capital stock
to any other Person unless the provisions of Article XI hereof are complied
with.

Section
3.08                                                        Limitation
on Dividends.

If (i) there shall have
occurred and be continuing a Default or an Event of Default, (ii) the Company
shall be in default with respect to its payment of any obligations under the
Capital Securities Guarantee or (iii) the Company shall have given notice of
its election to defer payments of interest on the Debt Securities by extending
the interest payment period as provided herein and such period, or any
extension thereof, shall have commenced and be continuing, then the Company may
not (A) declare or pay any dividends or distributions on, or redeem, purchase,
acquire, or make a liquidation payment with respect to, any of the Company’s
capital stock, (B) make any payment of principal of or premium, if any, or
interest on or repay, repurchase or redeem any debt securities of the Company
that rank pari passu in all
respects with or junior in interest to the Debt Securities or (C) make any
payment under any guarantees of the Company that rank pari passu in all respects with or junior
in interest to the Capital Securities Guarantee (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company (I)
in connection with any employment contract, benefit plan or other similar

 25
 

arrangement with or for the benefit of one or more
employees, officers, directors or consultants, (II) in connection with a
dividend reinvestment or stockholder stock purchase plan or (III) in connection
with the issuance of capital stock of the Company (or securities convertible
into or exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the occurrence of (i), (ii) or (iii) above,
(b) as a result of any exchange or conversion of any class or series of the
Company’s capital stock (or any capital stock of a subsidiary of the Company)
for any class or series of the Company’s capital stock or of any class or
series of the Company’s indebtedness for any class or series of the Company’s
capital stock, (c) the purchase of fractional interests in shares of the
Company’s capital stock pursuant to the conversion or exchange provisions of
such capital stock or the security being converted or exchanged, (d) any
declaration of a dividend in connection with any stockholder’s rights plan, or
the issuance of rights, stock or other property under any stockholder’s rights
plan, or the redemption or repurchase of rights pursuant thereto or (e) any
dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of such warrants, options or
other rights is the same stock as that on which the dividend is being paid or
ranks pari passu with or junior
in interest to such stock).

Section
3.09                                                        Covenants
as to the Trust.

For so long as such Trust
Securities remain outstanding, the Company shall maintain 100% ownership of the
Common Securities; provided, however, that any permitted
successor of the Company under this Indenture may succeed to the Company’s
ownership of such Common Securities.  The
Company, as owner of the Common Securities, shall use commercially reasonable
efforts to cause the Trust (a) to remain a statutory trust, except in
connection with a distribution of Debt Securities to the holders of Trust
Securities in liquidation of the Trust, the redemption of all of the Trust
Securities or mergers, consolidations or amalgamations, each as permitted by
the Declaration, (b) to otherwise continue to be classified as a grantor trust
for United States federal income tax purposes and (c) to cause each holder of
Trust Securities to be treated as owning an undivided beneficial interest in
the Debt Securities.

ARTICLE IV

LISTS

Section
4.01                                                        Securityholders’
Lists.

The Company covenants and agrees that it will furnish
or cause to be furnished to the Trustee:

(a)                                  on
each regular record date for an Interest Payment Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the
Securityholders of the Debt Securities as of such record date; and

(b)                                 at
such other times as the Trustee may request in writing, within 30 days after
the receipt by the Company of any such request, a list of similar form and
content as of a date not more than 15 days prior to the time such list is
furnished; except that no such lists need be furnished under this Section 4.01
so long as the Trustee is in possession thereof by reason of its acting as Debt
Security registrar.

 26
 

Section
4.02                                                        Preservation
and Disclosure of Lists.

(a)                                  The
Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Debt Securities (1)
contained in the most recent list furnished to it as provided in Section 4.01
or (2) received by it in the capacity of Debt Securities registrar (if so
acting) hereunder.  The Trustee may
destroy any list furnished to it as provided in Section 4.01 upon receipt of a
new list so furnished.

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

(i)                                     afford
such applicants access to the information preserved at the time by the Trustee
in accordance with the provisions of subsection (a) of this Section 4.02, or

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

If the Trustee shall
elect not to afford such applicants access to such information, the Trustee
shall, upon the written request of such applicants, mail to each Securityholder
of Debt Securities whose name and address appear in the information preserved
at the time by the Trustee in accordance with the provisions of subsection (a)
of this Section 4.02 a copy of the form of proxy or other communication which
is specified in such request with reasonable promptness after a tender to the
Trustee of the material to be mailed and of payment, or provision for the
payment, of the reasonable expenses of mailing, unless within five days after
such tender, the Trustee shall mail to such applicants and file with the
Securities and Exchange Commission, if permitted or required by applicable law,
together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Trustee, such mailing would be contrary to
the best interests of the holders of all Debt Securities, as the case may be,
or would be in violation of applicable law. 
Such written statement shall specify the basis of such opinion.  If said Commission, as permitted or required
by applicable law, after opportunity for a hearing upon the objections
specified in the written statement so filed, shall enter an order refusing to
sustain any of such objections or if, after the entry of an order sustaining
one or more of such objections, said Commission shall find, after notice and
opportunity for hearing, that all the objections so sustained have been met and
shall enter an order so declaring, the Trustee shall mail copies of such
material to all such Securityholders with reasonable promptness after the entry
of such order and the renewal of such tender; otherwise the Trustee shall be
relieved of any obligation or duty to such applicants respecting their
application.

 27
 

(c)                                  Each
and every holder of Debt Securities, by receiving and holding the same, agrees
with the Company and the Trustee that none of the Company, the Trustee or any
Paying Agent shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the holders of Debt Securities in
accordance with the provisions of subsection (b) of this Section 4.02,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under said subsection (b).

Section
4.03                                                        Financial
and Other Information.

(a)                                  The
Company shall deliver, by hardcopy or electronic transmission, to each
Securityholder (i) each Report on Form 10-K and Form 10-Q, if any, prepared by
the Company and filed with the Securities and Exchange Commission in accordance
with the Exchange Act within 10 Business Days after the filing thereof or (ii)
if the Company is (a) not then subject to Section 13 or 15(d) of the Exchange
Act (a “Private Entity”) or (b) exempt from reporting pursuant to Rule
12g3-2(b) thereunder, the information required by Rule 144A(d)(4) under the
Securities Act.  Notwithstanding the
foregoing, so long as a Holder of the Debt Securities is MMCapS Funding XVIII,
Ltd. or an entity that holds a pool of trust preferred securities and/or debt
securities as collateral for its securities or a trustee thereof, and the
Company is (i) a Private Entity that, on the date of original issuance of the
Debt Securities, is required to provide audited consolidated financial
statements to its primary regulatory authority, (ii) a Private Entity that, on
the date of original issuance of the Debt Securities, is not required to
provide audited consolidated financial statements to its primary regulatory
authority but subsequently becomes subject to the audited consolidated
financial statement reporting requirements of that regulatory authority or
(iii) subject to Section 13 or 15(d) of the Exchange Act on the date of
original issuance of the Debt Securities or becomes so subject after the date
hereof but subsequently becomes a Private Entity, then, within 90 days after
the end of each fiscal year, beginning with the fiscal year in which the Debt
Securities were originally issued if the Company was then subject to (x) Section
13 or 15(d) of the Exchange Act or (y) audited consolidated financial statement
reporting requirements of its primary regulatory authority or, otherwise, the
earliest fiscal year in which the Company becomes subject to (1) Section 13 or
15(d) of the Exchange Act or (2) the audited consolidated financial statement
reporting requirements of its primary regulatory authority, the Company shall
deliver, by hardcopy or electronic transmission, to each Securityholder, unless
otherwise provided pursuant to the preceding sentence, (A) a copy of the
Company’s audited consolidated financial statements (including balance sheet
and income statement) covering the related annual period and (B) the report of
the independent accountants with respect to such financial statements.  In addition to the foregoing, the Company
shall deliver to each Securityholder within 30 days after the end of the fiscal
year of the Company, Form 1099 or such other annual U.S. federal income tax
information statement required by the Code containing such information with
regard to the Debt Securities held by such holder as is required by the Code
and the income tax regulations of the U.S. Treasury thereunder.

(b)                                 If
and so long as the Holder of the Debt Securities is MMCapS Funding XVIII, Ltd.
or an entity that holds a pool of trust preferred securities and/or debt
securities or a trustee thereof, the Company will cause copies of its reports
on Form H-b(11) to be delivered to such Holder promptly following their filing
with the OTS.

 28
 

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

Section
5.01                                                        Events
of Default.

The following
events shall be “Events of Default” with respect to Debt Securities:

(a)                                  the
Company defaults in the payment of any interest upon any Debt Security when it
becomes due and payable, and continuance of such default for a period of 30
days; for the avoidance of doubt, an extension of any interest payment period
by the Company in accordance with Section 2.11 of this Indenture shall not
constitute a default under this clause 5.01(a); or

(b)                                 the
Company defaults in the payment of any interest upon any Debt Security,
including any Additional Amounts in respect thereof, following the nonpayment
of any such interest for twenty or more consecutive Interest Periods; or

(c)                                  the
Company defaults in the payment of all or any part of the principal of (or
premium, if any, on) any Debt Securities as and when the same shall become due
and payable, whether at maturity, upon redemption, by acceleration of maturity
pursuant to Section 5.01 of this Indenture or otherwise; or

(d)                                 the
Company defaults in the performance of, or breaches, any of its covenants or
agreements in Sections 3.06, 3.07, 3.08 or 3.09 of this Indenture (other than a
covenant or agreement a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with), and continuance of such
default or breach for a period of 90 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the holders of not less than 25% in aggregate principal
amount of the outstanding Debt 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)                                  a
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator or
other similar official of the Company or for any substantial part of its
property, or orders the winding-up or liquidation of its affairs and such
decree, appointment or order shall remain unstayed and in effect for a period
of 90 consecutive days; or

(f)                                    the
Company 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 the Company or of any substantial part of its property, or shall
make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due; or

 29
 

(g)                                 a
court or administrative or governmental agency or body shall enter a decree or
order for the appointment of a receiver of a Major Depository Institution
Subsidiary or all or substantially all of its property in any liquidation,
insolvency or similar proceeding with respect to such Major Depository
Institution Subsidiary or all or substantially all of its property; or

(h)                                 a
Major Depository Institution Subsidiary shall consent to the appointment of a
receiver for it or all or substantially all of its property in any liquidation,
insolvency or similar proceeding with respect to it or all or substantially all
of its property; or

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

If an Event of Default
specified under clause (b) of this Section 5.01 occurs and is continuing with
respect to the Debt Securities, then, in each and every such case, either the
Trustee or the holders of not less than 25% in aggregate principal amount of
the Debt Securities then outstanding hereunder, by notice in writing to the
Company (and to the Trustee if given by Securityholders), may declare the
entire principal of the Debt Securities and any premium and interest accrued,
but unpaid, thereon to be due and payable immediately, and upon any such
declaration the same shall become immediately due and payable.  If an Event of Default specified under clause
(e), (f), (g), (h) or (i) of this Section 5.01 occurs, then, in each and every
such case, the entire principal amount of the Debt Securities and any premium
and interest accrued, but unpaid, thereon shall ipso facto become
immediately due and payable without further action.

The foregoing provisions,
however, are subject to the condition that if, at any time after the principal
of the Debt Securities shall have become due by acceleration, and before any
judgment or decree for the payment of the moneys due shall have been obtained
or entered as hereinafter provided, (i) the Company shall pay or shall deposit
with the Trustee a sum sufficient to pay all matured installments of interest
upon all the Debt Securities and all payments on the Debt Securities which
shall have become due otherwise than by acceleration (with interest upon all
such payments and Deferred Interest, to the extent permitted by law) and such
amount as shall be sufficient to cover reasonable compensation to the Trustee
and each predecessor Trustee, their respective agents, attorneys and counsel,
and all other amounts due to the Trustee pursuant to Section 6.06, if any, and
(ii) all Events of Default under this Indenture, other than the nonpayment of
the payments in respect of Debt Securities which shall have become due by
acceleration, shall have been cured, waived or otherwise remedied as provided
herein, then, in each and every such case, the holders of a majority in aggregate
principal amount of the Debt Securities then outstanding, by written notice to
the Company and to the Trustee, may waive all defaults and rescind and annul
such acceleration and its consequences, but no such waiver or rescission and
annulment shall extend to or shall affect any subsequent default or shall
impair any right consequent thereon; provided, however, that if
the Debt Securities are held by the Trust or a trustee of the Trust, such
waiver or rescission and annulment shall not be effective until the

 30
 

holders of a majority in aggregate liquidation amount
of the outstanding Capital Securities of the Trust shall have consented to such
waiver or rescission and annulment.

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

Section
5.02                                                        Payment
of Debt Securities on Default; Suit Therefor.

The Company covenants
that upon the occurrence of an Event of Default pursuant to clause (b) of
Section 5.01 and upon demand of the Trustee, the Company will pay to the
Trustee, for the benefit of the holders of the Debt Securities, the whole
amount that then shall have become due and payable on all Debt Securities,
including Deferred Interest accrued on the Debt Securities; and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including a reasonable compensation to the Trustee, its
agents, attorneys and counsel, and any other amounts due to the Trustee under
Section 6.06.  In case the Company shall
fail forthwith to pay such amounts upon such demand, the Trustee, in its own
name and as trustee of an express trust, shall be entitled and empowered to
institute any actions or proceedings at law or in equity for the collection of
the sums so due and unpaid, and may prosecute any such action or proceeding to
judgment or final decree, and may enforce any such judgment or final decree
against the Company or any other obligor on such Debt Securities and collect in
the manner provided by law out of the property of the Company or any other
obligor on such Debt Securities wherever situated the moneys adjudged or
decreed to be payable.

In case there shall be
pending proceedings for the bankruptcy or for the reorganization of the Company
or any other obligor on the Debt Securities under Bankruptcy Law, or in case a
receiver or trustee shall have been appointed for the property of the Company
or such other obligor, or in the case of any other similar judicial proceedings
relative to the Company or other obligor upon the Debt Securities, or to the
creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Debt Securities shall then be due
and payable as therein expressed or by acceleration or otherwise and
irrespective of whether the Trustee shall have made any demand pursuant to the
provisions of this Section 5.02, shall be entitled and empowered, by
intervention in such proceedings or otherwise, to file and prove a claim or
claims for the whole amount of principal and interest owing and unpaid in
respect of the Debt Securities and, in case of any judicial proceedings, to
file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
reasonable compensation to the Trustee and each predecessor Trustee, and their
respective agents, attorneys and counsel, and for reimbursement of all other
amounts due to the Trustee under Section 6.06) and of the Securityholders
allowed in such judicial proceedings relative to the Company or any other
obligor on the Debt Securities, or to the creditors or property of the Company
or such other obligor, unless prohibited by applicable law and regulations, to
vote on behalf of the holders of the Debt Securities in any election of a
trustee or a standby trustee in arrangement,

 31
 

reorganization, liquidation or other bankruptcy or
insolvency proceedings or Person performing similar functions in comparable
proceedings, and to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute the same after the deduction
of its charges and expenses; and any receiver, assignee or trustee in
bankruptcy or reorganization is hereby authorized by each of the
Securityholders to make such payments to the Trustee, and, in the event that
the Trustee shall consent to the making of such payments directly to the
Securityholders, to pay to the Trustee such amounts as shall be sufficient to
cover reasonable compensation to the Trustee, each predecessor Trustee and
their respective agents, attorneys and counsel, and all other amounts due to
the Trustee under Section 6.06.

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

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

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

Section
5.03                                                        Application
of Moneys Collected by Trustee.

Any moneys collected by
the Trustee shall be applied in the following order, at the date or dates fixed
by the Trustee for the distribution of such moneys, upon presentation of the
several Debt Securities in respect of which moneys have been collected, and
stamping thereon the payment, if only partially paid, and upon surrender
thereof if fully paid:

First: To the payment of
costs and expenses incurred by, and reasonable fees of, the Trustee, its
agents, attorneys and counsel, and of all other amounts due to the Trustee
under Section 6.06;

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

Third:  To the payment of the amounts then due and
unpaid upon Debt Securities, in respect of which or for the benefit of which
money has been collected, ratably, without preference or priority of any kind,
according to the amounts due upon such Debt Securities; and

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

 32
 

Section
5.04                                                        Proceedings
by Securityholders.

No holder of any Debt
Security shall have any right to institute any suit, action or proceeding for
any remedy hereunder, unless such holder previously shall have given to the
Trustee written notice of an Event of Default with respect to the Debt
Securities and unless the holders of not less than 25% in aggregate principal
amount of the Debt Securities then outstanding shall have given the Trustee a
written request to institute such action, suit or proceeding and shall have
offered to the Trustee such reasonable indemnity as it may require against the
costs, expenses and liabilities to be incurred thereby, and the Trustee for 60
days after its receipt of such notice, request and offer of indemnity shall
have failed to institute any such action, suit or proceeding; provided,
that no holder of Debt Securities shall have any right to prejudice the rights
of any other holder of Debt Securities, obtain priority or preference over any
other such holder or enforce any right under this Indenture except in the
manner herein provided and for the equal, ratable and common benefit of all
holders of Debt Securities.

Notwithstanding any other
provisions in this Indenture, the right of any holder of any Debt Security to
receive payment of the principal of and premium, if any, and interest on such
Debt Security when due, or to institute suit for the enforcement of any such
payment, shall not be impaired or affected without the consent of such
holder.  For the protection and
enforcement of the provisions of this Section, each and every Securityholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

Section
5.05                                                        Proceedings
by Trustee.

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

Section
5.06                                                        Remedies
Cumulative and Continuing.

Except as otherwise
provided in Section 2.06, all powers and remedies given by this Article V to
the Trustee or to the Securityholders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any other powers and remedies available
to the Trustee or the holders of the Debt Securities, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture or otherwise established with respect to
the Debt Securities, and no delay or omission of the Trustee or of any holder
of any of the Debt Securities to exercise any right or power accruing upon any
Event of Default occurring and continuing as aforesaid shall impair any such
right or power, or shall be construed to be a waiver of any such default or an
acquiescence therein; and, subject to the provisions of Section 5.04, every
power and remedy given by this Article V or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

 33
 

Section 5.07                                                        Direction
of Proceedings and Waiver of Defaults by Majority of Securityholders.

The holders of a majority
in aggregate principal amount of the Debt Securities affected at the time
outstanding and, if the Debt Securities are held by the Trust or a trustee of
the Trust, the holders of a majority in aggregate liquidation amount of the
outstanding Capital Securities of the Trust shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred on the Trustee with
respect to such Debt Securities; provided, however, that if the
Debt Securities are held by the Trust or a trustee of the Trust, such time,
method and place or such exercise, as the case may be, may not be so directed
until the holders of a majority in aggregate liquidation amount of the
outstanding Capital Securities of the Trust shall have directed such time,
method and place or such exercise, as the case may be; provided, further,
that (subject to the provisions of Section 6.01) the Trustee shall have the
right to decline to follow any such direction if the Trustee shall determine
that the action so directed would be unjustly prejudicial to the holders not
taking part in such direction or if the Trustee being advised by counsel
determines that the action or proceeding so directed may not lawfully be taken
or if a Responsible Officer of the Trustee shall determine that the action or
proceedings so directed would involve the Trustee in personal liability.  Prior to any declaration of acceleration, or ipso
facto acceleration, of the maturity of the Debt Securities, the holders
of a majority in aggregate principal amount of the Debt Securities at the time
outstanding may on behalf of the holders of all of the Debt Securities waive
(or modify any previously granted waiver of) any past Default or Event of
Default and its consequences, except a default (a) in the payment of principal
of or premium, if any, or interest on any of the Debt Securities, (b) in respect
of covenants or provisions hereof which cannot be modified or amended without
the consent of the holder of each Debt Security affected, or (c) in respect of
the covenants contained in Section 3.09; provided, however, that
if the Debt Securities are held by the Trust or a trustee of the Trust, such
waiver or modification to such waiver shall not be effective until the holders
of a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust shall have consented to such waiver or modification to
such waiver; provided, further, that if the consent of the holder
of each outstanding Debt Security is required, such waiver or modification to
such waiver shall not be effective until each holder of the outstanding Capital
Securities of the Trust shall have consented to such waiver or modification to
such waiver.  Upon any such waiver or
modification to such waiver, the Default or Event of Default covered thereby
shall be deemed to be cured for all purposes of this Indenture and the Company,
the Trustee and the holders of the Debt Securities shall be restored to their
former positions and rights hereunder, respectively; but no such waiver or
modification to such waiver shall extend to any subsequent or other Default or
Event of Default or impair any right consequent thereon.  Whenever any Default or Event of Default
hereunder shall have been waived as permitted by this Section, said Default or
Event of Default shall for all purposes of the Debt Securities and this
Indenture be deemed to have been cured and to be not continuing.

Section
5.08                                                        Notice
of Defaults.

The Trustee shall, within
90 days after a Responsible Officer of the Trustee shall have actual knowledge
or received written notice of the occurrence of a default with respect to the
Debt Securities, mail to all Securityholders, as the names and addresses of
such holders appear upon the Debt Security Register, notice of all defaults
with respect to the Debt Securities

 34
 

known to the Trustee, unless such defaults shall have
been cured before the giving of such notice (the term “default” for the purpose
of this Section is hereby defined to be any event specified in Section 5.01,
not including periods of grace, if any, provided for therein); provided,
that, except in the case of default in the payment of the principal of
or premium, if any, or interest on any of the Debt Securities, the Trustee
shall be protected in withholding such notice if and so long as a Responsible
Officer of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Securityholders.

Section
5.09                                                        Undertaking
to Pay Costs.

All parties to this
Indenture agree, and each holder of any Debt Security by such holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken
or omitted by it as Trustee, the filing by any party litigant in such suit of
an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to any suit instituted by
the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding in the aggregate more than 10% in principal amount of
the outstanding Debt Securities (or, if such Debt Securities are held by the
Trust or a trustee of the Trust, more than 10% in liquidation amount of the
outstanding Capital Securities), to any suit instituted by any Securityholder
for the enforcement of the payment of the principal of or premium, if any, or
interest on any Debt Security against the Company on or after the same shall
have become due and payable or to any suit instituted in accordance with
Section 14.12.

ARTICLE VI

CONCERNING THE TRUSTEE

Section
6.01                                                        Duties
and Responsibilities of Trustee.

With respect to the
holders of Debt Securities issued hereunder, the Trustee, prior to the
occurrence of an Event of Default with respect to the Debt Securities and after
the curing or waiving of all Events of Default which may have occurred, with
respect to the Debt Securities, undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture.  In case an Event of Default with respect to
the Debt Securities has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

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

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

 35
 

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

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

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

(c)                                  the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith, in accordance with the direction of the
Securityholders pursuant to Section 5.07, relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture;
and

(d)                                 the
Trustee shall not be charged with knowledge of any Default or Event of Default
with respect to the Debt Securities unless either (1) a Responsible Officer
shall have actual knowledge of such Default or Event of Default or (2) written
notice of such Default or Event of Default shall have been given to the Trustee
by the Company or any other obligor on the Debt Securities or by any holder of
the Debt Securities, except that the Trustee shall be deemed to have knowledge
of any Event of Default pursuant to Sections 5.01(a), 5.01(b) or 5.01(c) hereof
(other than an Event of Default resulting from the default in the payment of
Additional Amounts if the Trustee does not have actual knowledge or written
notice that such payment is due and payable) .

None of the provisions contained
in this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers.

Section
6.02                                                        Reliance
on Documents, Opinions, etc.

Except as
otherwise provided in Section 6.01:

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

 36
 

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

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

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

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

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

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

Section
6.03                                                        No
Responsibility for Recitals, etc.

The recitals contained
herein and in the Debt Securities (except in the certificate of authentication
of the Trustee or the Authenticating Agent) shall be taken as the statements of
the Company, and the Trustee and the Authenticating Agent assume no
responsibility for the correctness of the same. 
The Trustee and the Authenticating Agent make no representations as to
the validity or sufficiency of this Indenture or of the Debt Securities.  The Trustee and the

 37
 

Authenticating Agent shall not be accountable for the
use or application by the Company of any Debt Securities or the proceeds of any
Debt Securities authenticated and delivered by the Trustee or the Authenticating
Agent in conformity with the provisions of this Indenture.

Section 6.04                                                        Trustee,
Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own Debt
Securities.

The Trustee, any
Authenticating Agent, any Paying Agent, any transfer agent or any Debt Security
registrar, in its individual or any other capacity, may become the owner or
pledgee of Debt Securities with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, transfer agent or Debt Security
registrar.

Section
6.05                                                        Moneys
to be Held in Trust.

Subject to the provisions
of Section 12.04, all moneys received by the Trustee or any Paying Agent shall,
until used or applied as herein provided, be held in trust for the purpose for
which they were received, but need not be segregated from other funds except to
the extent required by law.  The Trustee
and any Paying Agent shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the
Company.  So long as no Event of Default
shall have occurred and be continuing, all interest allowed on any such moneys,
if any, shall be paid from time to time to the Company upon the written order
of the Company, signed by the Chairman of the Board of Directors, the President,
the Chief Operating Officer, a Vice President, the Treasurer or an Assistant
Treasurer of the Company.

Section
6.06                                                        Compensation
and Expenses of Trustee.

Other than as provided in
the fee agreement of even date herewith between the Company and the Trustee,
the Company covenants and agrees to pay to the Trustee from time to time, and
the Trustee shall be entitled to, such compensation as shall be agreed to in
writing between the Company and the Trustee (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust), and the Company will pay or reimburse the Trustee upon its written
request for all documented reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of
this Indenture (including the reasonable compensation and the reasonable
expenses and disbursements of its counsel and of all Persons not regularly in
its employ) except any such expense, disbursement or advance that arises from
its negligence, willful misconduct or bad faith.  The Company also covenants to indemnify each
of the Trustee (including in its individual capacity) and any predecessor
Trustee (and its officers, agents, directors and employees) for, and to hold it
harmless against, any and all loss, damage, claim, liability or expense
including taxes (other than taxes based on the income of the Trustee), except
to the extent such loss, damage, claim, liability or expense results from the
negligence, willful misconduct or bad faith of such indemnitee, arising out of
or in connection with the acceptance or administration of this trust, including
the costs and expenses of defending itself against any claim or liability in
the premises.  The obligations of the
Company under this Section to compensate and indemnify the Trustee and to pay
or reimburse the Trustee for documented expenses, disbursements and advances
shall constitute additional indebtedness hereunder.  Such additional indebtedness shall be secured
by a lien prior to that of the Debt Securities upon all property and funds held
or collected by the

 38
 

Trustee as such, except funds held in trust for the
benefit of the holders of particular Debt Securities.

Without prejudice to any
other rights available to the Trustee under applicable law, when the Trustee
incurs expenses or renders services in connection with an Event of Default
specified in clause (e), (f), (g), (h) or (i) of Section 5.01, the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable federal or state bankruptcy, insolvency or
other similar law.

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

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

Section
6.07                                                        Officers’
Certificate as Evidence.

Except as otherwise
provided in Sections 6.01 and 6.02, whenever in the administration of the
provisions of this Indenture the Trustee shall deem it necessary or desirable
that a matter be proved or established prior to taking or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence, willful misconduct
or bad faith on the part of the Trustee, be deemed to be conclusively proved
and established by an Officers’ Certificate delivered to the Trustee, and such
certificate, in the absence of negligence, willful misconduct or bad faith on
the part of the Trustee, shall be full warrant to the Trustee for any action
taken or omitted by it under the provisions of this Indenture upon the faith
thereof.

Section
6.08                                                        Eligibility
of Trustee.

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

The Company may not, nor
may any Person directly or indirectly controlling, controlled by, or under
common control with the Company, serve as Trustee, notwithstanding that such
corporation or national association shall be otherwise eligible and qualified
under this Article.

 39
 

In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 6.09.

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

Section
6.09                                                        Resignation
or Removal of Trustee.

(a)                                  The
Trustee, or any trustee or trustees hereafter appointed, may at any time resign
by giving written notice of such resignation to the Company and by mailing
notice thereof, at the Company’s expense, to the holders of the Debt Securities
at their addresses as they shall appear on the Debt Security Register.  Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee or trustees by written
instrument, in duplicate, executed by order of its Board of Directors, one copy
of which instrument shall be delivered to the resigning Trustee and one copy to
the successor Trustee.  If no successor
Trustee shall have been so appointed and have accepted appointment within 30
days after the mailing of such notice of resignation to the affected
Securityholders, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee, or any Securityholder
who has been a bona fide holder of a Debt Security or Debt Securities for at
least six months may, subject to the provisions of Section 5.09, on behalf of
himself or herself and all others similarly situated, petition any such court
for the appointment of a successor Trustee. 
Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, appoint a successor Trustee.

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

(i)                                     the
Trustee shall fail to comply with the provisions of the last paragraph of
Section 6.08 after written request therefor by the Company or by any
Securityholder who has been a bona fide holder of a Debt Security or Debt
Securities for at least six months;

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

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

then, in any such case, the Company may remove the
Trustee and appoint a successor Trustee by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the Trustee so removed and one copy to the successor Trustee,
or, subject to the provisions of Section 5.09, if no successor Trustee shall
have been so appointed and have accepted appointment within 30 days of the
occurrence of any of (i), (ii) or (iii) above, any Securityholder who has been
a bona fide holder of a Debt Security or Debt Securities for at

 40
 

least six months may, on behalf of himself or herself
and all others similarly situated, petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor Trustee.  Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor Trustee.

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

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

Section
6.10                                                        Acceptance
by Successor Trustee.

Any successor Trustee
appointed as provided in Section 6.09 shall execute, acknowledge and deliver to
the Company and to its predecessor Trustee an indenture supplemental hereto
which shall contain such provisions as shall be deemed necessary or desirable
to confirm that all of the rights, powers, trusts and duties of the retiring
Trustee shall be vested in the successor Trustee, and thereupon the resignation
or removal of the retiring Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, duties and obligations with respect to the Debt
Securities of its predecessor hereunder, with like effect as if originally
named as Trustee herein; but, nevertheless, on the written request of the
Company or of the successor Trustee, the Trustee ceasing to act shall, upon
payment of the amounts then due it pursuant to the provisions of Section 6.06,
execute and deliver an instrument transferring to such successor Trustee all
the rights and powers of the Trustee so ceasing to act and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.  Upon
request of any such successor Trustee, the Company shall execute any and all
instruments in writing for more fully and certainly vesting in and confirming
to such successor Trustee all such rights and powers.  Any Trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by
such Trustee to secure any amounts then due it pursuant to the provisions of
Section 6.06.

No successor Trustee
shall accept appointment as provided in this Section unless at the time of such
acceptance such successor Trustee shall be eligible and qualified under the
provisions of Section 6.08.

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

 41
 

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

Section
6.11                                                        Succession
by Merger, etc.

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

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

Section
6.12                                                        Authenticating
Agents.

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

 42
 

Agent shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and
with the effect herein specified in this Section.

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

Any Authenticating Agent
may at any time resign by giving written notice of resignation to the Trustee
and to the Company.  The Trustee may at
any time terminate the agency of any Authenticating Agent with respect to the
Debt Securities by giving written notice of termination to such Authenticating
Agent and to the Company.  Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
any Authenticating Agent shall cease to be eligible under this Section, the
Trustee may, and upon the request of the Company shall, promptly appoint a
successor Authenticating Agent eligible under this Section, shall give written
notice of such appointment to the Company and shall mail notice of such
appointment to all holders of Debt Securities as the names and addresses of
such holders appear on the Debt Security Register.  Any successor Authenticating Agent, upon
acceptance of its appointment hereunder, shall become vested with all rights,
powers, duties and responsibilities of its predecessor hereunder, with like
effect as if originally named as Authenticating Agent herein.

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

ARTICLE VII

CONCERNING THE SECURITYHOLDERS

Section
7.01                                                        Action
by Securityholders.

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

 43
 

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

Section
7.02                                                        Proof
of Execution by Securityholders.

Subject to the provisions
of Sections 6.01, 6.02 and 8.05, proof of the execution of any instrument by a
Securityholder or such Securityholder’s agent or proxy shall be sufficient if
made in accordance with such reasonable rules and regulations as may be
prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee.  The ownership of Debt
Securities shall be proved by the Debt Security Register or by a certificate of
the Debt Security registrar.  The Trustee
may require such additional proof of any matter referred to in this Section as
it shall deem necessary.

The record of any Securityholders’ meeting shall be proved
in the manner provided in Section 8.06.

Section
7.03                                                        Who
Are Deemed Absolute Owners.

Prior to due presentment
for registration of transfer of any Debt Security, the Company, the Trustee,
any Authenticating Agent, any Paying Agent, any transfer agent and any Debt
Security registrar may deem the Person in whose name such Debt Security shall
be registered upon the Debt Security Register to be, and may treat such Person
as, the absolute owner of such Debt Security (whether or not such Debt Security
shall be overdue) for the purpose of receiving payment of or on account of the
principal of and premium, if any, and interest on such Debt Security and for
all other purposes; and none of the Company, the Trustee, any Authenticating
Agent, any Paying Agent, any transfer agent or any Debt Security registrar
shall be affected by any notice to the contrary.  All such payments so made to any holder for
the time being or upon such holder’s order shall be valid, and, to the extent
of the sum or sums so paid, effectual to satisfy and discharge the liability
for moneys payable upon any such Debt Security.

 44

Section
7.04           Debt Securities Owned by
Company Deemed Not Outstanding.

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

Section
7.05           Revocation of Consents;
Future Holders Bound.

At any time prior to (but
not after) the evidencing to the Trustee, as provided in Section 7.01, of the
taking of any action by the holders of the percentage in aggregate principal
amount of the Debt Securities specified in this Indenture in connection with
such action, any holder (in cases where no record date has been set pursuant to
Section 7.01) or any holder as of an applicable record date (in cases where a
record date has been set pursuant to Section 7.01) of a Debt Security (or any
Debt Security issued in whole or in part in exchange or substitution therefor)
the serial number of which is shown by the evidence to be included in the Debt
Securities the holders of which have consented to such action may, by filing
written notice with the Trustee at the Principal Office of the Trustee and upon
proof of holding as provided in Section 7.02, revoke such action so far as
concerns such Debt Security (or so far as concerns the principal amount
represented by any exchanged or substituted Debt Security).  Except as aforesaid any such action taken by
the holder of any Debt Security shall be conclusive and binding upon such
holder and upon all future holders and owners of such Debt Security, and of any
Debt Security issued in exchange or substitution therefor or on registration of
transfer thereof, irrespective of whether or not any notation in regard thereto
is made upon such Debt Security or any Debt Security issued in exchange or
substitution therefor.

ARTICLE VIII

SECURITYHOLDERS’
MEETINGS

Section
8.01           Purposes of Meetings.

A meeting of Securityholders may be called at any time
and from time to time pursuant to the provisions of this Article VIII for any
of the following purposes:

(a)           to give any notice to the Company or
to the Trustee, or to give any directions to the Trustee, or to consent to the
waiving of any default hereunder and its

 45
 

consequences, or to take any other action authorized
to be taken by Securityholders pursuant to any of the provisions of Article V;

(b)           to remove the Trustee and nominate a
successor trustee pursuant to the provisions of Article VI;

(c)           to consent to the execution of an
indenture or indentures supplemental hereto pursuant to the provisions of
Section 9.02; or

(d)           to take any other action authorized
to be taken by or on behalf of the holders of any specified aggregate principal
amount of such Debt Securities under any other provision of this Indenture or
under applicable law.

Section
8.02           Call of Meetings by
Trustee.

The Trustee may at any
time call a meeting of Securityholders to take any action specified in Section
8.01, to be held at such time and at such place in The City of New York, the
Borough of Manhattan, or Wilmington, Delaware, as the Trustee shall
determine.  Notice of every meeting of
the Securityholders, setting forth the time and the place of such meeting and
in general terms the action proposed to be taken at such meeting, shall be
mailed to holders of Debt Securities affected at their addresses as they shall
appear on the Debt Securities Register. 
Such notice shall be mailed not less than 20 nor more than 180 days
prior to the date fixed for the meeting.

Section
8.03           Call of Meetings by
Company or Securityholders.

In case at any time the
Company pursuant to a Board Resolution, or the holders of at least 10% in
aggregate principal amount of the Debt Securities, as the case may be, then
outstanding, shall have requested the Trustee to call a meeting of
Securityholders, by written request setting forth in reasonable detail the
action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within 20 days after receipt of such request,
then the Company or such Securityholders may determine the time and the place
in Pierre, South Dakota for such meeting and may call such meeting to take any
action authorized in Section 8.01, by mailing notice thereof as provided in
Section 8.02.

Section
8.04           Qualifications for
Voting.

To be entitled to vote at
any meeting of Securityholders, a Person shall be (a) a holder of one or more
Debt Securities or (b) a Person appointed by an instrument in writing as proxy
by a holder of one or more Debt Securities. 
The only Persons who shall be entitled to be present or to speak at any
meeting of Securityholders shall be the Persons entitled to vote at such
meeting and their counsel and any representatives of the Trustee and its
counsel and any representatives of the Company and its counsel.

Section
8.05           Regulations.

Notwithstanding any other provisions of this
Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Securityholders, in

 46
 

regard to proof of the holding of Debt Securities and
of the appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates
and other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate.

The Trustee shall, by an
instrument in writing, appoint a temporary chairman of the meeting, unless the
meeting shall have been called by the Company or by Securityholders as provided
in Section 8.03, in which case the Company or the Securityholders calling the
meeting, as the case may be, shall in like manner appoint a temporary chairman.
A permanent chairman and a permanent secretary of the meeting shall be elected
by majority vote at the meeting.

Subject to the provisions
of Section 7.04, at any meeting each holder of Debt Securities with respect to
which such meeting is being held or proxy therefor shall be entitled to one
vote for each $1,000 principal amount of Debt Securities held or represented by
such holder; provided, however, that no vote shall be cast or
counted at any meeting in respect of any Debt Security challenged as not outstanding
and ruled by the chairman of the meeting to be not outstanding.  The chairman of the meeting shall have no
right to vote other than by virtue of Debt Securities held by such chairman or
instruments in writing as aforesaid duly designating such chairman as the
Person to vote on behalf of other Securityholders.  Any meeting of Securityholders duly called
pursuant to the provisions of Section 8.02 or 8.03 may be adjourned from time
to time by a majority of those present, whether or not constituting a quorum,
and the meeting may be held as so adjourned without further notice.

Section
8.06           Voting.

The vote upon any
resolution submitted to any meeting of holders of Debt Securities with respect
to which such meeting is being held shall be by written ballots on which shall
be subscribed the signatures of such holders or of their representatives by
proxy and the serial number or numbers of the Debt Securities held or
represented by them.  The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified written reports in
triplicate of all votes cast at the meeting. A record in duplicate of the proceedings
of each meeting of Securityholders shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one
or more Persons having knowledge of the facts setting forth a copy of the
notice of the meeting and showing that said notice was mailed as provided in
Section 8.02.  The record shall show the
serial numbers of the Debt Securities voting in favor of or against any resolution.
The record shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one of the duplicates shall be
delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.

Any record so signed and verified shall be conclusive
evidence of the matters therein stated.

 47
 

Section
8.07           Quorum; Actions.

The Persons entitled to
vote a majority in aggregate principal amount of the Debt Securities then
outstanding shall constitute a quorum for a meeting of Securityholders; provided,
however, that if any action is to be taken at such meeting with respect
to a consent, waiver, request, demand, notice, authorization, direction or
other action which may be given by the holders of not less than a specified
percentage in aggregate principal amount of the Debt Securities then
outstanding, the Persons holding or representing such specified percentage in
aggregate principal amount of the Debt Securities then outstanding will
constitute a quorum.  In the absence of a
quorum within 30 minutes of the time appointed for any such meeting, the
meeting shall, if convened at the request of Securityholders, be dissolved.  In any other case, the meeting may be
adjourned for a period of not less than 10 days as determined by the permanent
chairman of the meeting prior to the adjournment of such meeting.  In the absence of a quorum at any such
adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the permanent chairman of the meeting
prior to the adjournment of such adjourned meeting.  Notice of the reconvening of any adjourned
meeting shall be given as provided in Section 8.02, except that such notice
need be given only once not less than five days prior to the date on which the
meeting is scheduled to be reconvened. 
Notice of the reconvening of an adjourned meeting shall state expressly
the percentage, as provided above, of the aggregate principal amount of the
Debt Securities then outstanding which shall constitute a quorum.

Except as limited by the
proviso in the first paragraph of Section 9.02, any resolution presented to a
meeting or adjourned meeting duly reconvened at which a quorum is present as
aforesaid may be adopted by the affirmative vote of the holders of a majority
in aggregate principal amount of the Debt Securities then outstanding; provided,
however, that, except as limited by the proviso in the first paragraph
of Section 9.02, any resolution with respect to any consent, waiver, request,
demand, notice, authorization, direction or other action that this Indenture
expressly provides may be given by the holders of not less than a specified
percentage in outstanding principal amount of the Debt Securities may be
adopted at a meeting or an adjourned meeting duly reconvened and at which a
quorum is present as aforesaid only by the affirmative vote of the holders of
not less than such specified percentage in aggregate principal amount of the
Debt Securities then outstanding.

Any resolution passed or
decision taken at any meeting of holders of Debt Securities duly held in
accordance with this Section shall be binding on all the Securityholders,
whether or not present or represented at the meeting.

ARTICLE IX

SUPPLEMENTAL
INDENTURES

Section
9.01           Supplemental Indentures
without Consent of Securityholders.

The Company, when
authorized by a Board Resolution, and the Trustee may from time to time and at
any time enter into an indenture or indentures supplemental hereto, without the
consent of the Securityholders, for one or more of the following purposes:

 48
 

(a)           to evidence the succession of another
corporation to the Company, or successive successions, and the assumption by
the successor corporation of the covenants, agreements and obligations of the
Company, pursuant to Article XI hereof;

(b)           to add to the covenants of the
Company such further covenants, restrictions or conditions for the protection
of the holders of Debt Securities as the Board of Directors shall consider to
be for the protection of the holders of such Debt Securities, and to make the
occurrence, or the occurrence and continuance, of a Default in any of such
additional covenants, restrictions or conditions a Default or an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided, however,
that in respect of any such additional covenant, restriction or condition such
supplemental indenture may provide for a particular period of grace after
Default (which period may be shorter or longer than that allowed in the case of
other Defaults) or may provide for an immediate enforcement upon such Default
or may limit the remedies available to the Trustee upon such default;

(c)           to cure any ambiguity or to correct
or supplement any provision contained herein or in any supplemental indenture
which may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture, or to make such other provisions in
regard to matters or questions arising under this Indenture, provided,
that any such action shall not adversely affect the interests of the holders of
the Debt Securities then outstanding;

(d)           to add to, delete from, or revise the
terms of Debt Securities, including, without limitation, any terms relating to
the issuance, exchange, registration or transfer of Debt Securities, including
to provide for transfer procedures and restrictions substantially similar to
those applicable to the Capital Securities, as required by Section 2.05 (for
purposes of assuring that no registration of Debt Securities is required under
the Securities Act), provided, that any such action shall not adversely
affect the interests of the holders of the Debt Securities then outstanding (it
being understood, for purposes of this proviso, that transfer restrictions on
Debt Securities substantially similar to those applicable to Capital Securities
shall not be deemed to adversely affect the holders of the Debt Securities);

(e)           to evidence and provide for the
acceptance of appointment hereunder by a successor Trustee with respect to the
Debt Securities and to add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, pursuant to the requirements of
Section 6.10;

(f)            to make any change (other than as
elsewhere provided in this Section) that does not adversely affect the rights
of any Securityholder in any material respect; or

(g)           to provide for the issuance of and
establish the form and terms and conditions of the Debt Securities, to
establish the form of any certifications required to be furnished pursuant to
the terms of this Indenture or the Debt Securities, or to add to the rights of
the holders of Debt Securities.

The Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, to make any
further appropriate agreements and stipulations

 49
 

which may be therein contained and to accept the
conveyance, transfer and assignment of any property thereunder, but the Trustee
shall not be obligated to, but may in its discretion, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

Any supplemental
indenture authorized by the provisions of this Section may be executed by the
Company and the Trustee without the consent of the holders of any of the Debt
Securities at the time outstanding, notwithstanding any of the provisions of
Section 9.02.

Section
9.02           Supplemental Indentures
with Consent of Securityholders.

With the consent
(evidenced as provided in Section 7.01) of the holders of a majority in
aggregate principal amount of the Debt Securities at the time outstanding
affected by such supplemental indenture, the Company, when authorized by a
Board Resolution, and the Trustee may from time to time and at any time enter
into an indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act, then in effect, applicable to indentures
qualified thereunder) for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner the rights of the holders
of the Debt Securities; provided, however, that no such
supplemental indenture shall, without the consent of the holders of each Debt
Security then outstanding and affected thereby, (i) change the Maturity Date of
any Debt Security, or reduce the principal amount thereof or any premium
thereon, or reduce the rate (or manner of calculation of the rate) or extend
the time of payment of interest thereon, or reduce (other than as a result of
the maturity or earlier redemption of any such Debt Security in accordance with
the terms of this Indenture and such Debt Security) or increase the aggregate
principal amount of Debt Securities then outstanding, or change any of the
redemption provisions, or make the principal thereof or any interest or premium
thereon payable in any coin or currency other than United States Dollars, or
impair or affect the right of any Securityholder to institute suit for payment
thereof, or (ii) reduce the aforesaid percentage of Debt Securities the holders
of which are required to consent to any such supplemental indenture; and provided,
further, that if the Debt Securities are held by the Trust or the
trustee of the Trust, such supplemental indenture shall not be effective until
the holders of a majority in aggregate liquidation amount of the outstanding
Capital Securities shall have consented to such supplemental indenture; provided,
further, that if the consent of the Securityholder of each outstanding
Debt Security is required, such supplemental indenture shall not be effective
until each holder of the outstanding Capital Securities shall have consented to
such supplemental indenture.

Upon the request of the
Company accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Securityholders (and holders of Capital Securities, if required) as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

 50
 

Promptly after the
execution by the Company and the Trustee of any supplemental indenture pursuant
to the provisions of this Section, the Trustee shall transmit by mail, first
class postage prepaid, a notice, prepared by the Company, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders as their names and addresses appear upon the Debt Security
Register.  Any failure of the Trustee to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture.

It shall not be necessary
for the consent of the Securityholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof.

Section
9.03           Effect of Supplemental
Indentures.

Upon the execution of any
supplemental indenture pursuant to the provisions of this Article IX, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the holders
of Debt Securities shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

Section
9.04           Notation on Debt
Securities.

Debt Securities
authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article IX may bear a notation as to any
matter provided for in such supplemental indenture.  If the Company or the Trustee shall so
determine, new Debt Securities so modified as to conform, in the opinion of the
Board of Directors of the Company, to any modification of this Indenture
contained in any such supplemental indenture may be prepared and executed by
the Company, authenticated by the Trustee or the Authenticating Agent and
delivered in exchange for the Debt Securities then outstanding.

Section 9.05           Evidence of Compliance of
Supplemental Indenture to be Furnished to Trustee.

The Trustee, subject to
the provisions of Sections 6.01 and 6.02, shall, in addition to the documents
required by Section 14.06, receive an Officers’ Certificate as conclusive
evidence that any supplemental indenture executed pursuant hereto complies with
the requirements of this Article IX.  The
Trustee shall also receive an Opinion of Counsel as conclusive evidence that
any supplemental indenture executed pursuant to this Article IX is authorized
or permitted by, and conforms to, the terms of this Article IX and that it is
proper for the Trustee under the provisions of this Article IX to join in the
execution thereof.

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ARTICLE X

REDEMPTION OF
SECURITIES

Section
10.01         Optional Redemption.

The Company shall have
the right, subject to the receipt by the Company of the prior approval from the
OTS, if then required under applicable capital guidelines or policies of the
OTS, to redeem the Debt Securities, in whole or (provided that all accrued and
unpaid interest has been paid on all Debt Securities for all Interest Periods
terminating on or prior to such date) from time to time in part, on any
Interest Payment Date on or after March 1, 2012 (each, an “Optional Redemption
Date”), at the Optional Redemption Price.

Section
10.02         Special Event Redemption.

If a Special Event shall
occur and be continuing, the Company shall have the right, subject to the
receipt by the Company of prior approval from the Federal Reserve, if then
required under applicable capital guidelines or policies of the Federal
Reserve, to redeem the Debt Securities, in whole but not in part, at any time
within 90 days following the occurrence of such Special Event (the “Special
Redemption Date”), at the Special Redemption Price.

Section
10.03         Notice of Redemption;
Selection of Debt Securities.

In case the Company shall
desire to exercise the right to redeem all, or, as the case may be, any part of
the Debt Securities, it shall fix a date for redemption and shall mail, or
cause the Trustee to mail (at the expense of the Company), a notice of such
redemption at least 30 and not more than 60 days prior to the date fixed for
redemption to the holders of Debt Securities so to be redeemed as a whole or in
part at their last addresses as the same appear on the Debt Security
Register.  Such mailing shall be by first
class mail.  The notice if mailed in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not the holder receives such notice. 
In any case, failure to give such notice by mail or any defect in the
notice to the holder of any Debt Security designated for redemption as a whole
or in part shall not affect the validity of the proceedings for the redemption
of any other Debt Security.

Each such notice of
redemption shall specify the CUSIP number, if any, of the Debt Securities to be
redeemed, the date fixed for redemption, the price (or manner of calculation of
the price) at which Debt Securities are to be redeemed, the place or places of
payment, that payment will be made upon presentation and surrender of such Debt
Securities, that interest accrued to the date fixed for redemption will be paid
as specified in said notice, and that on and after said date interest thereon
or on the portions thereof to be redeemed will cease to accrue. If less than
all the Debt Securities are to be redeemed, the notice of redemption shall
specify the numbers of the Debt Securities to be redeemed.  In case the Debt Securities are to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the
date fixed for redemption, upon surrender of such Debt Security, a new Debt
Security or Debt Securities in principal amount equal to the unredeemed portion
thereof will be issued.

Prior to 10:00 a.m., New York City time, on the
Optional Redemption Date or the Special Redemption Date specified in the notice
of redemption given as provided in this Section,

 52
 

the Company will deposit with the Trustee or with one
or more Paying Agents an amount of money sufficient to redeem on such date all
the Debt Securities so called for redemption at the applicable price therefor,
together with unpaid interest accrued to such date.

The Company will give the
Trustee notice not less than 45 nor more than 75 days prior to the date fixed
for redemption as to the price at which the Debt Securities are to be redeemed
and the aggregate principal amount of Debt Securities to be redeemed and the
Trustee shall select, in such manner as in its sole discretion it shall deem
appropriate and fair, the Debt Securities or portions thereof (in integral
multiples of $1,000) to be redeemed.

Section
10.04         Payment of Debt
Securities Called for Redemption.

If notice of redemption
has been given as provided in Section 10.03, the Debt Securities or portions of
Debt Securities with respect to which such notice has been given shall become
due and payable on the related Optional Redemption Date or Special Redemption
Date (as the case may be) and at the place or places stated in such notice at
the applicable price therefor, together with unpaid interest accrued thereon to
said Optional Redemption Date or the Special Redemption Date (as the case may
be), and on and after said Optional Redemption Date or the Special Redemption
Date (as the case may be) (unless the Company shall default in the payment of
such Debt Securities at the redemption price, together with unpaid interest
accrued thereon to said date) interest on the Debt Securities or portions of
Debt Securities so called for redemption shall cease to accrue.  On presentation and surrender of such Debt
Securities at a place of payment specified in said notice, such Debt Securities
or the specified portions thereof shall be paid and redeemed by the Company at
the applicable price therefor, together with unpaid interest, if any, accrued
thereon to said Optional Redemption Date or the Special Redemption Date (as the
case may be); provided, however, that interest payable on any
Interest Payment Date on or prior to said Optional Redemption Date or the
Special Redemption Date will be paid to the holders on the relevant regular
record date.

Upon presentation of any
Debt Security redeemed in part only, the Company shall execute and the Trustee
shall authenticate and make available for delivery to the holder thereof, at
the expense of the Company, a new Debt Security or Debt Securities of
authorized denominations in principal amount equal to the unredeemed portion of
the Debt Security so presented.

ARTICLE XI

CONSOLIDATION,
MERGER, SALE, CONVEYANCE AND LEASE

Section
11.01         Company May Consolidate,
etc., on Certain Terms.

Nothing contained in this
Indenture or in the Debt Securities shall prevent any consolidation or merger
of the Company with or into any other corporation or corporations (whether or
not affiliated with the Company) or successive consolidations or mergers in
which the Company or its successor or successors shall be a party or parties,
or shall prevent any sale, conveyance, transfer or other disposition of all or
substantially all of the property or capital stock of the Company or its
successor or successors to any other corporation (whether or not affiliated
with the Company or its successor or successors) authorized to acquire and
operate the same;

 53
 

provided, however, that the
Company hereby covenants and agrees that (i) upon any such consolidation,
merger (where the Company is not the surviving corporation), sale, conveyance,
transfer or other disposition, the successor entity shall be a corporation
organized and existing under the laws of the United States or any state thereof
or the District of Columbia (unless such corporation has (1) agreed to make all
payments due in respect of the Debt Securities or, if outstanding, the Trust
Securities and the Capital Securities Guarantee without withholding or
deduction for, or on account of, any taxes, duties, assessments or other
governmental charges under the laws or regulations of the jurisdiction of
organization or residence (for tax purposes) of such corporation or any
political subdivision or taxing authority thereof or therein unless required by
applicable law, in which case such corporation shall have agreed to pay such
additional amounts as shall be required so that the net amounts received and
retained by the holders of such Debt Securities or Trust Securities, as the
case may be, after payment of all taxes (including withholding taxes), duties,
assessments or other governmental charges, will be equal to the amounts that
such holders would have received and retained had no such taxes (including
withholding taxes), duties, assessments or other governmental charges been
imposed, (2) irrevocably and unconditionally consented and submitted to the
jurisdiction of any United States federal court or New York state court, in
each case located in the Borough of Manhattan, The City of New York, in respect
of any action, suit or proceeding against it arising out of or in connection
with this Indenture, the Debt Securities, the Capital Securities Guarantee or
the Declaration and irrevocably and unconditionally waived, to the fullest
extent permitted by law, any objection to the laying of venue in any such court
or that any such action, suit or proceeding has been brought in an inconvenient
forum and (3) irrevocably appointed an agent in The City of New York for
service of process in any action, suit or proceeding referred to in clause (2)
above) and such corporation expressly assumes all of the obligations of the
Company under the Debt Securities, this Indenture, the Capital Securities
Guarantee and the Declaration and (ii) after giving effect to any such
consolidation, merger, sale, conveyance, transfer or other disposition, no
Default or Event of Default shall have occurred and be continuing.

Section
11.02         Successor Entity to be
Substituted.

In case of any such
consolidation, merger, sale, conveyance, transfer or other disposition
contemplated in Section 11.01 and upon the assumption by the successor
corporation, by supplemental indenture, executed and delivered to the Trustee
and reasonably satisfactory in form to the Trustee, of the due and punctual
payment of the principal of and premium, if any, and interest on all of the
Debt Securities and the due and punctual performance and observance of all of
the covenants and conditions of this Indenture to be performed or observed by
the Company, such successor corporation shall succeed to and be substituted for
the Company, with the same effect as if it had been named herein as the
Company, and thereupon the predecessor entity shall be relieved of any further
liability or obligation hereunder or upon the Debt Securities.  Such successor corporation thereupon may
cause to be signed, and may issue either in its own name or in the name of the
Company, any or all of the Debt Securities issuable hereunder which theretofore
shall not have been signed by the Company and delivered to the Trustee or the
Authenticating Agent; and, upon the order of such successor corporation instead
of the Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee or the Authenticating Agent shall
authenticate and deliver any Debt Securities which previously shall have been
signed and delivered by the officers of the Company to the Trustee or the
Authenticating Agent for authentication, and any Debt Securities which

 54
 

such successor corporation thereafter shall cause to
be signed and delivered to the Trustee or the Authenticating Agent for that
purpose.  All the Debt Securities so
issued shall in all respects have the same legal rank and benefit under this
Indenture as the Debt Securities theretofore or thereafter issued in accordance
with the terms of this Indenture as though all of such Debt Securities had been
issued at the date of the execution hereof.

Section
11.03         Opinion of Counsel to be
Given to Trustee.

The Trustee, subject to
the provisions of Sections 6.01 and 6.02, shall receive, in addition to the
Opinion of Counsel required by Section 9.05, an Opinion of Counsel as
conclusive evidence that any consolidation, merger, sale, conveyance, transfer
or other disposition, and any assumption, permitted or required by the terms of
this Article XI complies with the provisions of this Article XI.

ARTICLE XII

SATISFACTION AND
DISCHARGE OF INDENTURE

Section
12.01         Discharge of Indenture.

When (a) the Company
shall deliver to the Trustee for cancellation all Debt Securities theretofore
authenticated (other than any Debt Securities which shall have been destroyed,
lost or stolen and which shall have been replaced or paid as provided in
Section 2.06) and not theretofore canceled, or (b) all the Debt Securities not
theretofore canceled or delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the
Company shall deposit with the Trustee, in trust, funds, which shall be
immediately due and payable, sufficient to pay at maturity or upon redemption
all of the Debt Securities (other than any Debt Securities which shall have
been destroyed, lost or stolen and which shall have been replaced or paid as
provided in Section 2.06) not theretofore canceled or delivered to the Trustee
for cancellation, including principal and premium, if any, and interest due or
to become due to the Maturity Date, any Optional Redemption Date or the Special
Redemption Date, as the case may be, but excluding, however, the amount of any
moneys for the payment of principal of and premium, if any, or interest on the
Debt Securities (1) theretofore repaid to the Company in accordance with the
provisions of Section 12.04, or (2) paid to any state or to the District of
Columbia pursuant to its unclaimed property or similar laws, and if in the case
of either clause (a) or (b) above the Company shall also pay or cause to be
paid all other sums payable hereunder by the Company, then this Indenture shall
cease to be of further effect except for the provisions of Sections 2.05, 2.06,
3.01, 3.02, 3.04, 6.06, 6.09 and 12.04 hereof, which shall survive until such
Debt Securities shall mature or are redeemed, as the case may be, and are paid
in full.  Thereafter, Sections 6.06, 6.09
and 12.04 shall survive, and the Trustee, on demand of the Company accompanied by
an Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with, and at the cost and
expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture, the Company, however, hereby
agreeing to reimburse the Trustee for any costs or expenses thereafter

 55
 

reasonably and properly incurred by the Trustee in
connection with this Indenture or the Debt Securities.

Section
12.02         Deposited Moneys to be
Held in Trust by Trustee.

Subject to the provisions
of Section 12.04, all moneys deposited with the Trustee pursuant to Section
12.01 shall be held in trust and applied by it to the payment, either directly
or through any Paying Agent (including the Company if acting as its own Paying
Agent), to the holders of the particular Debt Securities for the payment of
which such moneys have been deposited with the Trustee, of all sums due and to
become due thereon for principal, premium, if any, and interest.

Section
12.03         Paying Agent to Repay
Moneys Held.

Upon the satisfaction and
discharge of this Indenture, all moneys then held by any Paying Agent of the
Debt Securities (other than the Trustee) shall, upon demand of the Company, be
repaid to the Company or paid to the Trustee, and thereupon such Paying Agent
shall be released from all further liability with respect to such moneys.

Section
12.04         Return of Unclaimed
Moneys.

Any moneys deposited with
or paid to the Trustee or any Paying Agent for payment of the principal of and
premium, if any, or interest on Debt Securities and not applied but remaining
unclaimed by the holders of Debt Securities for two years after the date upon
which the principal of and premium, if any, or interest on such Debt
Securities, as the case may be, shall have become due and payable, shall be
repaid to the Company by the Trustee or such Paying Agent on written demand;
and the holder of any of the Debt Securities shall thereafter look only to the
Company for any payment which such holder may be entitled to collect and all
liability of the Trustee or such Paying Agent with respect to such moneys shall
thereupon cease.

ARTICLE XIII

IMMUNITY OF
INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

Section
13.01         Indenture and Debt
Securities Solely Corporate Obligations.

No recourse for the
payment of the principal of or premium, if any, or interest on any Debt
Security, or for any claim based thereon or otherwise in respect thereof, and
no recourse under or upon any obligation, covenant or agreement of the Company
in this Indenture or in any supplemental indenture, or in any such Debt
Security, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, officer, director, employee
or agent, as such, past, present or future, of the Company or of any
predecessor or successor corporation of the Company, either directly or through
the Company or any successor corporation of the Company, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the Debt
Securities.

 56
 

ARTICLE XIV

MISCELLANEOUS
PROVISIONS

Section
14.01         Successors.

All the covenants, stipulations, promises and
agreements of the Company contained in this Indenture shall bind its successors
and assigns, whether so expressed or not.

Section
14.02         Official Acts by
Successor Entity.

Any act or proceeding by
any provision of this Indenture authorized or required to be done or performed
by any board, committee or officer of the Company shall and may be done and
performed with like force and effect by the like board, committee, officer or
other authorized Person of any entity that shall at the time be the lawful
successor of the Company.

Section
14.03         Surrender of Company
Powers.

The Company, by
instrument in writing executed by authority of 2/3 (two thirds) of its Board of
Directors and delivered to the Trustee, may surrender any of the powers
reserved to the Company and thereupon such power so surrendered shall terminate
both as to the Company and as to any permitted successor.

Section
14.04         Addresses for Notices,
etc.

Any notice or demand
which by any provision of this Indenture is required or permitted to be given
or served by the Trustee or by the Securityholders on the Company may be given
or served in writing by being deposited postage prepaid by registered or
certified mail in a post office letter box addressed (until another address is
filed by the Company with the Trustee for such purpose) to the Company at 225
South Main Avenue, Sioux Falls, South Dakota 57104, Attention: Pamela F.
Russo.  Any notice, direction, request or
demand by any Securityholder or the Company to or upon the Trustee shall be
deemed to have been sufficiently given or made, for all purposes, if given or
made in writing at the office of Wilmington Trust Company at Rodney Square
North, 1100 North Market Street, Wilmington, DE 19890-0001, Attention:
Corporate Capital Markets.

Section
14.05         Governing Law.

This Indenture and the
Debt Securities shall each be governed by, and construed in accordance with,
the laws of the State of New York, without regard to conflict of laws
principles of said State other than Section 5-1401 of the New York General
Obligations Law.

Section
14.06         Evidence of Compliance
with Conditions Precedent.

Upon any application or
demand by the Company to the Trustee to take any action under any of the
provisions of this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate stating that in the opinion of the signers all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that, in the
opinion of such counsel, all such conditions precedent

 57
 

have been complied with (except that no such Opinion
of Counsel is required to be furnished to the Trustee in connection with the
authentication and issuance of Debt Securities).

Each certificate or
opinion provided for in this Indenture and delivered to the Trustee with respect
to compliance with a condition or covenant provided for in this Indenture
(except certificates delivered pursuant to Section 3.05) shall include (a) a
statement that the person making such certificate or opinion has read such
covenant or condition and the definitions relating thereto; (b) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based; (c) a statement that, in the opinion of such person, he or she has made
such examination or investigation as is necessary to enable him or her to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and (d) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with.

Section
14.07         Business Day Convention.

Notwithstanding anything
to the contrary contained herein, if any Interest Payment Date after the
Interest Payment Date in March, 2012, other than the Maturity Date, any
Optional Redemption Date or the Special Redemption Date, falls on a day that is
not a Business Day, then any interest payable will be paid on, and such
Interest Payment Date will be moved to, the next succeeding Business Day, and
additional interest will accrue for each day that such payment is delayed as a
result thereof.  If any Interest Payment
Date on or prior to the Interest Payment Date in March, 2012, the Maturity
Date, any Optional Redemption Date or the Special Redemption Date falls on a
day that is not a Business Day, then the principal, premium, if any, and/or
interest payable on such date will be paid on the next succeeding Business Day,
and no additional interest will accrue in respect of such payment made on such
next succeeding Business Day.

Section
14.08         Table of Contents,
Headings, etc.

The table of contents and
the titles and headings of the Articles and Sections of this Indenture have
been inserted for convenience of reference only, are not to be considered a
part hereof, and shall in no way modify or restrict any of the terms or
provisions hereof.

Section
14.09         Execution in Counterparts.

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

Section
14.10         Separability.

In case any one or more
of the provisions contained in this Indenture or in the Debt Securities shall
for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provisions of this Indenture or of such Debt Securities, but this Indenture and
such Debt Securities shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein or therein.

 58
 

Section
14.11         Assignment.

Subject to Article XI,
the Company will have the right at all times to assign any of its rights or
obligations under this Indenture and the Debt Securities to a direct or
indirect wholly owned Subsidiary of the Company; provided, however, that, in
the event of any such assignment, the Company will remain liable for all such
obligations. Subject to the foregoing, this Indenture is binding upon and
inures to the benefit of the parties hereto and their respective successors and
assigns. This Indenture may not otherwise be assigned by the parties thereto.

Section
14.12         Acknowledgment of Rights.

The Company acknowledges
that, with respect to any Debt Securities held by the Trust or a trustee of the
Trust, if such trustee of the Trust fails to enforce its rights under this
Indenture as the holder of Debt Securities held as the assets of the Trust
after the holders of a majority in aggregate liquidation amount of the
outstanding Capital Securities of the Trust have so directed in writing such
trustee, a holder of record of such Capital Securities may, to the fullest
extent permitted by law, institute legal proceedings directly against the
Company to enforce such trustee’s rights under this Indenture without first
instituting any legal proceedings against such trustee or any other
Person.  Notwithstanding the foregoing,
if an Event of Default has occurred and is continuing and such event is
attributable to the failure of the Company to pay interest or premium, if any,
on or principal of the Debt Securities on the date such interest, premium, if
any, or principal is otherwise due and payable (or, in the case of redemption,
on the related Optional Redemption Date or the Special Redemption Date (as the
case may be)), the Company acknowledges that a holder of outstanding Capital
Securities of the Trust may directly institute a proceeding against the Company
for enforcement of payment to such holder directly of the principal of or
premium, if any, or interest on the Debt Securities having an aggregate
principal amount equal to the aggregate liquidation amount of the Capital
Securities of such holder on or after the respective due date (or Optional
Redemption Date or Special Redemption Date (as the case may be)) specified in
the Debt Securities.

ARTICLE XV

SUBORDINATION OF
DEBT SECURITIES

Section
15.01         Agreement to Subordinate.

The Company covenants and
agrees, and each holder of Debt Securities issued hereunder and under any
supplemental indenture (the “Additional Provisions”) by such holder’s
acceptance thereof likewise covenants and agrees, that all Debt Securities
shall be issued subject to the provisions of this Article XV; and each holder
of a Debt Security, whether upon original issue or upon transfer or assignment
thereof, accepts and agrees to be bound by such provisions.

The payment by the
Company of the payments due on all Debt Securities issued hereunder and under
any Additional Provisions shall, to the extent and in the manner hereinafter
set forth, be subordinated and junior in right of payment to the prior payment
in full of all Senior Indebtedness of the Company, whether outstanding at the
date of this Indenture or thereafter incurred.

 59
 

No provision of this Article XV shall prevent the
occurrence of any default or Event of Default hereunder.

Section
15.02         Default on Senior
Indebtedness.

In the event and during
the continuation of any default by the Company in the payment of principal,
premium, interest or any other amount due on any Senior Indebtedness of the
Company following any applicable grace period, or in the event that the
maturity of any Senior Indebtedness of the Company has been accelerated because
of a default, and such acceleration has not been rescinded or canceled and such
Senior Indebtedness has not been paid in full, then, in either case, no payment
shall be made by the Company with respect to the payments due on the Debt
Securities.

In the event that,
notwithstanding the foregoing, any payment shall be received by the Trustee or
any Securityholder when such payment is prohibited by the preceding paragraph
of this Section, such payment shall, subject to Section 15.06, be held in trust
for the benefit of, and shall be paid over or delivered to, the holders of
Senior Indebtedness or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Senior Indebtedness
may have been issued, as their respective interests may appear, but only to the
extent that the holders of the Senior Indebtedness (or their representative or
representatives or trustee) notify the Trustee in writing within 90 days of
such payment of the amounts then due and owing on the Senior Indebtedness and
only the amounts specified in such notice to the Trustee shall be paid to the
holders of Senior Indebtedness.

Section
15.03         Liquidation; Dissolution;
Bankruptcy.

Upon any payment by the
Company or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to creditors upon any dissolution,
winding-up, liquidation or reorganization of the Company, whether voluntary or
involuntary or in bankruptcy, insolvency, receivership or other proceedings,
all amounts due upon all Senior Indebtedness of the Company shall first be paid
in full, or payment thereof provided for in money in accordance with its terms,
before any payment is made by the Company on the Debt Securities; and upon any
such dissolution, winding-up, liquidation or reorganization, any payment by the
Company, or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Securityholders or the
Trustee would be entitled to receive from the Company, except for the
provisions of this Article XV, shall be paid by the Company, or by any
receiver, trustee in bankruptcy, liquidating trustee, agent or other Person
making such payment or distribution, or by the Securityholders or by the
Trustee under this Indenture if received by them or it, directly to the holders
of Senior Indebtedness of the Company (pro rata to such holders on the basis of
the respective amounts of Senior Indebtedness held by such holders, as
calculated by the Company) or their representative or representatives, or to
the trustee or trustees under any indenture pursuant to which any instruments
evidencing such Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay such Senior Indebtedness
in full, in money or money’s worth, after giving effect to any concurrent
payment or distribution to or for the holders of such Senior Indebtedness,
before any payment or distribution is made to the Securityholders or to the
Trustee.

 60
 

In the event that,
notwithstanding the foregoing, any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities,
prohibited by the foregoing shall be received by the Trustee or any
Securityholder before all Senior Indebtedness of the Company is paid in full,
or provision is made for such payment in money in accordance with its terms,
such payment or distribution shall be held in trust for the benefit of, and
shall be paid over or delivered to, the holders of such Senior Indebtedness or
their representative or representatives, or to the trustee or trustees under
any indenture pursuant to which any instruments evidencing such Senior
Indebtedness may have been issued, as their respective interests may appear, as
calculated by the Company, for application to the payment of all Senior
Indebtedness of the Company remaining unpaid to the extent necessary to pay
such Senior Indebtedness in full in money in accordance with its terms, after
giving effect to any concurrent payment or distribution to or for the benefit
of the holders of such Senior Indebtedness.

For purposes of this
Article XV, the words “cash, property or securities” shall not be deemed to
include shares of stock of the Company as reorganized or readjusted, or
securities of the Company or any other corporation provided for by a plan of reorganization
or readjustment, the payment of which is subordinated at least to the extent
provided in this Article XV with respect to the Debt Securities to the payment
of all Senior Indebtedness of the Company, that may at the time be outstanding,
provided, that (a) such Senior Indebtedness is assumed by the new
corporation, if any, resulting from any such reorganization or readjustment,
and (b) the rights of the holders of such Senior Indebtedness are not, without
the consent of such holders, altered by such reorganization or
readjustment.  The consolidation of the
Company with, or the merger of the Company into, another corporation or the
liquidation or dissolution of the Company following the conveyance, transfer or
other disposition of its property as an entirety, or substantially as an
entirety, to another corporation upon the terms and conditions provided for in
Article XI of this Indenture shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section if such other
corporation shall, as a part of such consolidation, merger, conveyance or
transfer, comply with the conditions stated in Article XI of this
Indenture.  Nothing in Section 15.02 or
in this Section shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.06 of this Indenture.

Section
15.04         Subrogation.

Subject to the payment in
full of all Senior Indebtedness of the Company, the Securityholders shall be
subrogated to the rights of the holders of such Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company
applicable to such Senior Indebtedness until all payments due on the Debt
Securities shall be paid in full; and, for the purposes of such subrogation, no
payments or distributions to the holders of such Senior Indebtedness of any
cash, property or securities to which the Securityholders or the Trustee would
be entitled except for the provisions of this Article XV, and no payment over
pursuant to the provisions of this Article XV to or for the benefit of the
holders of such Senior Indebtedness by Securityholders or the Trustee, shall,
as between the Company, its creditors other than holders of Senior Indebtedness
of the Company, and the holders of the Debt Securities be deemed to be a
payment or distribution by the Company to or on account of such Senior
Indebtedness.  It is understood that the
provisions of this Article XV are, and are intended, solely for the purposes of

 61
 

defining the relative rights of the holders of the Debt
Securities, on the one hand, and the holders of such Senior Indebtedness, on
the other hand.

Nothing contained in this
Article XV or elsewhere in this Indenture, any Additional Provisions or in the
Debt Securities is intended to or shall impair, as between the Company, its
creditors other than the holders of Senior Indebtedness of the Company, and the
holders of the Debt Securities, the obligation of the Company, which is
absolute and unconditional, to pay to the holders of the Debt Securities all
payments on the Debt Securities as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the
relative rights of the holders of the Debt Securities and creditors of the
Company other than the holders of Senior Indebtedness of the Company, nor shall
anything herein or therein prevent the Trustee or the holder of any Debt
Security from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this
Article XV of the holders of such Senior Indebtedness in respect of cash,
property or securities of the Company received upon the exercise of any such
remedy.

Upon any payment or
distribution of assets of the Company referred to in this Article XV, the
Trustee, subject to the provisions of Article VI of this Indenture, and the
Securityholders shall be entitled to conclusively rely upon any order or decree
made by any court of competent jurisdiction in which such dissolution,
winding-up, liquidation or reorganization proceedings are pending, or a
certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent
or other Person making such payment or distribution, delivered to the Trustee
or to the Securityholders, for the purposes of ascertaining the Persons
entitled to participate in such distribution, the holders of Senior
Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article XV.

Section
15.05         Trustee to Effectuate
Subordination.

Each Securityholder, by
such Securityholder’s acceptance thereof, authorizes and directs the Trustee on
such Securityholder’s behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article XV and
appoints the Trustee such Securityholder’s attorney-in-fact for any and all
such purposes.

Section
15.06         Notice by the Company.

The Company shall give
prompt written notice to a Responsible Officer of the Trustee at the Principal
Office of the Trustee of any fact known to the Company that would prohibit the
making of any payment of moneys to or by the Trustee in respect of the Debt
Securities pursuant to the provisions of this Article XV.  Notwithstanding the provisions of this
Article XV or any other provision of this Indenture or any Additional
Provisions, the Trustee shall not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment of moneys to or by the
Trustee in respect of the Debt Securities pursuant to the provisions of this
Article XV unless and until a Responsible Officer of the Trustee at the
Principal Office of the Trustee shall have received written notice thereof from
the Company or a holder or holders of Senior Indebtedness or from any trustee
therefor; and before the receipt of any such written notice, the Trustee,
subject to the provisions of Article VI of this Indenture,

 62
 

shall be entitled in all respects to assume that no
such facts exist; provided, however, that if the Trustee shall
not have received the notice provided for in this Section at least two Business
Days prior to the date upon which by the terms hereof any money may become
payable for any purpose (including, without limitation, the payment of the
principal of or premium, if any, or interest on any Debt Security), then,
anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such money and to apply the same to
the purposes for which they were received, and shall not be affected by any
notice to the contrary that may be received by it within two Business Days
prior to such date.

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

Section
15.07         Rights of the Trustee;
Holders of Senior Indebtedness.

The Trustee, in its
individual capacity, shall be entitled to all the rights set forth in this
Article XV in respect of any Senior Indebtedness at any time held by it, to the
same extent as any other holder of Senior Indebtedness, and nothing in this
Indenture or any Additional Provisions shall deprive the Trustee of any of its
rights as such holder.

With respect to the
holders of Senior Indebtedness of the Company, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article XV, and no implied covenants or
obligations with respect to the holders of such Senior Indebtedness shall be
read into this Indenture or any Additional Provisions against the Trustee.  The Trustee shall not owe or be deemed to owe
any fiduciary duty to the holders of such Senior Indebtedness and, subject to
the provisions of Article VI of this Indenture, the Trustee shall not be liable
to any holder of such Senior Indebtedness if it shall pay over or deliver to
Securityholders, the Company or any other Person money or assets to which any
holder of such Senior Indebtedness shall be entitled by virtue of this Article
XV or otherwise.

Nothing in this Article XV shall apply to claims of,
or payments to, the Trustee under or pursuant to Section 6.06.

Section
15.08         Subordination May Not Be
Impaired.

No right of any present or future holder of any Senior
Indebtedness of the Company to enforce subordination as herein provided shall
at any time in any way be prejudiced

 63
 

or impaired by any act or failure to act on the part
of the Company, or by any act or failure to act, in good faith, by any such
holder, or by any noncompliance by the Company, with the terms, provisions and
covenants of this Indenture, regardless of any knowledge thereof that any such
holder may have or otherwise be charged with.

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

 64

Wilmington Trust
Company, in its capacity as Trustee, hereby accepts the trusts in this
Indenture declared and provided, upon the terms and conditions herein above set
forth.

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

	
  

  	
  HF FINANCIAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Darrel L. Posegate

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Darrel L. Posegate

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President,

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer and

  
	
   

  	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST COMPANY,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geoffrey J. Lewis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Geoffrey J. Lewis

  
	
   

  	
   

  	
  Title:

  	
  Financial Services Officer

  
					

 

 Indenture

EXHIBIT A

FORM OF DEBT
SECURITY

[FORM OF FACE OF
SECURITY]

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

UNLESS
THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND
ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT 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.]1

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS.  NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  THE HOLDER OF THIS SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY
BE, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (i) TWO YEARS
(OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE
SECURITIES ACT) AFTER THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND
(Z) THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE (AS DEFINED IN RULE 405
UNDER THE SECURITIES ACT) OF THE COMPANY WAS THE HOLDER OF THIS

1 Only applicable if this Debt Security is a
Global Debt Security.

 A-1
 

SECURITY OR SUCH INTEREST OR
PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (ii) SUCH LATER DATE, IF ANY, AS
MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE
COMPANY, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”, AS
DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR”
WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7) OR (8) OF RULE 501
UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR SUCH INTEREST OR
PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN ACCREDITED
INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE
IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D)
PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED
STATES PURSUANT TO REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (C) OR (E) ABOVE TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT
IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE
COMPANY.  THE HOLDER OF THIS SECURITY OR
ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS
THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

THE
HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS
ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES, REPRESENTS AND
WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER
PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY
WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S
INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY
ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, 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 SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE
OR HOLDING.  ANY PURCHASER OR HOLDER OF
THIS

 A-2
 

SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND
HOLDING HEREOF OR THEREOF, AS THE CASE MAY BE, 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 AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO
APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

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

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

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”).  THIS
OBLIGATION IS SUBORDINATED TO THE CLAIMS OF THE DEPOSITORS AND THE CLAIMS OF
GENERAL AND SECURED CREDITORS OF THE COMPANY, IS INELIGIBLE AS COLLATERAL FOR A
LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES AND IS NOT SECURED.

 A-3
 

Fixed/Floating Rate
Junior Subordinated Debt Security due 2037

of

HF FINANCIAL CORP.

HF Financial Corp., a
bank holding company incorporated in the State of Delaware (the “Company”,
which term includes any successor permitted under the Indenture (as defined
herein)), for value received, promises to pay to Wilmington Trust Company, not
in its individual capacity but solely as Institutional Trustee for HF Financial
Capital Trust V, a Delaware statutory trust, or registered assigns, the
principal amount of                              
Dollars

($                             )
on March 1, 2037 (the “Maturity Date”) (or any Optional Redemption Date or the
Special Redemption Date, each as defined herein, or any earlier date of
acceleration of the maturity of this Debt Security), and to pay interest on the
outstanding principal amount of this Debt Security from December 7, 2006, or
from the most recent Interest Payment Date (as defined below) to which interest
has been paid or duly provided for, quarterly (subject to deferral as set forth
herein) in arrears on March 1, June 1, September 1 and December 1 of each year,
commencing on March 1, 2007 (each, an “Interest Payment Date”), at a per annum
rate (the “Interest Rate”), equal to (i) with respect to any Interest Period
(as defined in the Indenture) prior to the Interest Period commencing on the
Interest Payment Date in March, 2012, 6.61% and (ii) with respect to any
Interest Period commencing on or after the Interest Payment Date in March,
2012, LIBOR (as defined in the Indenture), as determined on the LIBOR
Determination Date (as defined in the Indenture) for such Interest Period plus
1.83% (the “Interest Rate”) (provided that the Interest Rate for any
Interest Period commencing on or after the Interest Payment Date in March, 2012
may not exceed the highest rate permitted by New York law, as the same may be
modified by United States law of general application) until the principal
hereof shall have been paid or duly provided for, and on any overdue principal
and (without duplication and to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at an
annual rate equal to the then applicable Interest Rate, compounded
quarterly.  The amount of interest
payable shall be computed (i) with respect to any Interest Period prior to the
Interest Period commencing on the Interest Payment Date in March, 2012, on the
basis of a 360-day year consisting of twelve 30-day months and (ii) with
respect to any Interest Period commencing on or after the Interest Payment Date
in March, 2012, on the basis of a 360-day year and the actual number of days
elapsed in such Interest Period.

The interest installment
so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Indenture, be paid to the Person in whose name
this Debt Security (or one or more Predecessor Securities, as defined in the
Indenture) is registered at the close of business on the “regular record date”
for such interest installment, which shall be the fifteenth day prior to such
Interest Payment Date, whether or not such day is a Business Day (as defined
herein).  Any such interest installment
(other than Deferred Interest (as defined herein)) not punctually paid or duly
provided for shall forthwith cease to be payable to the holders on such regular
record date and may be paid to the Person in whose name this Debt Security (or
one or more Predecessor Securities) is registered at the close of business on a
special record date to be fixed by the Trustee for the payment of such
defaulted interest, notice whereof shall be given to the holders of the Debt
Securities not less than 10 days prior to such special record date, all as more
fully provided in the Indenture.

 A-4
 

Payment of the principal
of and premium, if any, and interest on this Debt Security due on the Maturity
Date, any Optional Redemption Date or the Special Redemption Date, as the case
may be, shall be made in immediately available funds against presentation and
surrender of this Debt Security at the office or agency of the Trustee
maintained for that purpose in Wilmington, Delaware, or at the office or agency
of any other Paying Agent appointed by the Company maintained for that purpose
in Wilmington, Delaware or Pierre, South Dakota.  Payment of interest on this Debt Security due
on any Interest Payment Date other than the Maturity Date, any Optional
Redemption Date or the Special Redemption Date, as the case may be, shall be
made at the option of the Company by check mailed to the holder thereof at such
address as shall appear in the Debt Security Register or by wire transfer of
immediately available funds to an account appropriately designated by the
holder hereof.  Notwithstanding the
foregoing, so long as the holder of this Debt Security is the Institutional
Trustee, payment of the principal of and premium, if any, and interest on this
Debt Security shall be made in immediately available funds when due at such
place and to such account as may be designated by the Institutional
Trustee.  All payments in respect of this
Debt Security shall be payable in any coin or currency of the United States of
America that at the time of payment is legal tender for payment of public and
private debts.

Notwithstanding anything
to the contrary contained herein, if any Interest Payment Date after the
Interest Payment Date in March, 2012, other than the Maturity Date, any Optional
Redemption Date or the Special Redemption Date, falls on a day that is not a
Business Day, then any interest payable will be paid on, and such Interest
Payment Date will be moved to, the next succeeding Business Day, and additional
interest will accrue for each day that such payment is delayed as a result
thereof.  If any Interest Payment Date on
or prior to the Interest Payment Date in March, 2012, the Maturity Date, any
Optional Redemption Date or the Special Redemption Date falls on a day that is
not a Business Day, then the principal, premium, if any, and/or interest
payable on such date will be paid on the next succeeding Business Day, and no
additional interest will accrue in respect of such payment made on such next
succeeding Business Day.

So long as no Event of
Default pursuant to Sections 5.01(b), (e), (f), (g), (h) or (i) of the
Indenture has occurred and is continuing, the Company shall have the right,
from time to time and without causing an Event of Default, to defer payments of
interest on the Debt Securities by extending the interest payment period on the
Debt Securities at any time and from time to time during the term of the Debt
Securities, for up to 20 consecutive quarterly periods (each such extended
interest payment period, together with all previous and further consecutive
extensions thereof, is referred to herein as an “Extension Period”).  No Extension Period may end on a date other
than an Interest Payment Date or extend beyond the Maturity Date, any Optional
Redemption Date or the Special Redemption Date, as the case may be.  During any Extension Period, interest will
continue to accrue on the Debt Securities, and interest on such accrued
interest (such accrued interest and interest thereon referred to herein as
“Deferred Interest”) will accrue at an annual rate equal to the Interest Rate
applicable during such Extension Period, compounded quarterly from the date
such Deferred Interest would have been payable were it not for the Extension
Period, to the extent permitted by applicable law.  No interest or Deferred Interest (except any
Additional Amounts (as defined in the Indenture) that may be due and payable)
shall be due and payable during an Extension Period, except at the end thereof.  At the end of any Extension Period, the Company
shall pay all Deferred Interest then

 A-5
 

accrued and unpaid on the Debt Securities; provided,
however, that during any Extension Period, the Company may not (i)
declare or pay any dividends or distributions on, or redeem, purchase, acquire,
or make a liquidation payment with respect to, any of the Company’s capital
stock, (ii) make any payment of principal of or premium, if any, or interest on
or repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects with or junior
in interest to the Debt Securities or (iii) make any payment under any
guarantees of the Company that rank in all respects pari passu with or junior in respect to the Capital
Securities Guarantee   (other than (a)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Company (A) in connection with any employment contract, benefit plan or
other similar arrangement with or for the benefit of one or more employees,
officers, directors or consultants, (B) in connection with a dividend
reinvestment or stockholder stock purchase plan or (C) in connection with the
issuance of capital stock of the Company (or securities convertible into or
exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to such Extension Period, (b) as a result of any
exchange or conversion of any class or series of the Company’s capital stock
(or any capital stock of a subsidiary of the Company) for any class or series
of the Company’s capital stock or of any class or series of the Company’s
indebtedness for any class or series of the Company’s capital stock, (c) the
purchase of fractional interests in shares of the Company’s capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, (d) any declaration of a dividend in
connection with any stockholder’s rights plan, or the issuance of rights, stock
or other property under any stockholder’s rights plan, or the redemption or
repurchase of rights pursuant thereto or (e) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the stock
issuable upon exercise of such warrants, options or other rights is the same
stock as that on which the dividend is being paid or ranks pari passu with or junior to such
stock).  Prior to the termination of any
Extension Period, the Company may further extend such Extension Period, provided,
that no Extension Period (including all previous and further consecutive
extensions that are part of such Extension Period) shall exceed 20 consecutive
quarterly periods.  Upon the termination
of any Extension Period and upon the payment of all Deferred Interest, the
Company may commence a new Extension Period, subject to the foregoing requirements.  The Company must give the Trustee notice of
its election to begin or extend an Extension Period no later than the close of
business on the fifteenth Business Day prior to the applicable Interest Payment
Date.

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

The Company waives diligence, presentment, demand for
payment, notice of nonpayment, notice of protest, and all other demands and
notices.

 A-6
 

This Debt Security shall
not be entitled to any benefit under the Indenture hereinafter referred to and
shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been signed by or on behalf of the Trustee.

The provisions of this
Debt Security are continued on the reverse side hereof and such continued
provisions shall for all purposes have the same effect as though fully set
forth at this place.

This Debt Security may
contain more than one counterpart of the signature page and this Debt Security
may be executed and authenticated by the affixing of the signature of a proper
officer of the Company, and the signature of the Trustee providing
authentication, 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
the Company had executed, and the Trustee had authenticated, a single signature
page.

 A-7
 

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

	
  

  	
  HF FINANCIAL
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:                                                  ,
         

CERTIFICATE OF
AUTHENTICATION

This certificate represents Debt Securities referred
to in the within-mentioned Indenture.

	
   

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely as

  the Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  	
   

  

 

Dated:                                                  ,
         

 A-8
 

[FORM OF REVERSE
OF SECURITY]

This Debt Security is one
of a duly authorized series of debt securities of the Company (collectively,
the “Debt Securities”), all issued or to be issued pursuant to an Indenture
(the “Indenture”), dated as of December 7, 2006, duly executed and delivered
between the Company and Wilmington Trust Company, as Trustee (the “Trustee”),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the holders of
the Debt Securities of which this Debt Security is a part.

Upon the occurrence and
continuation of a Tax Event, an Investment Company Event or a Capital Treatment
Event (each, a “Special Event”), the Company shall have the right to redeem
this Debt Security, at its option, in whole with all other Debt Securities but
not in part, at any time, within 90 days following the occurrence of such
Special Event (the “Special Redemption Date”), at the Special Redemption Price
(as defined herein).

The Company shall also
have the right to redeem this Debt Security at its option, in whole or (provided
that all accrued and unpaid interest has been paid on all Debt Securities for
all Interest Periods terminating on or prior to such date) from time to time in
part, on any Interest Payment Date on or after March 1, 2012 (each, an
“Optional Redemption Date”), at the Optional Redemption Price (as defined
herein).

Any redemption pursuant
to the preceding two paragraphs will be made, subject to receipt by the Company
of prior approval from the Office of Thrift Supervision (the “OTS”) if then
required under applicable capital guidelines or policies of the OTS, upon not
less than 30 days’ nor more than 60 days’ prior written notice.  If the Debt Securities are only partially
redeemed by the Company, the Debt Securities will be redeemed pro rata or by
any other method utilized by the Trustee. 
In the event of redemption of this Debt Security in part only, a new
Debt Security or Debt Securities for the unredeemed portion hereof will be
issued in the name of the holder hereof upon the cancellation hereof.

“Optional Redemption
Price” means an amount in cash equal to 100% of the principal amount of this
Debt Security being redeemed plus unpaid interest accrued thereon to the
related Optional Redemption Date.

“Special Redemption
Price” means, with respect to the redemption of this Debt Security following a
Special Event, an amount in cash equal to 103.30% of the principal amount of
this Debt Security to be redeemed prior to March 1, 2008 and thereafter equal
to the percentage of the principal amount of this Debt Security that is
specified below for the Special Redemption Date plus, in each case, unpaid
interest accrued thereon to the Special Redemption Date:

 A-9
 

 

	
  Special Redemption
  During the 12-Month

  	
   

  	
   

  
	
  Period Beginning March 1,

  	
   

  	
  Percentage of Principal Amount

  
	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  102.64%

  
	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  101.98%

  
	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  101.32%

  
	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  100.66%

  
	
   

  	
   

  	
   

  
	
  2012 and thereafter

  	
   

  	
  100.00%

  

 

In case an Event of
Default, as defined in the Indenture, shall have occurred and be continuing,
the principal of all of the Debt Securities may be declared, and, in certain
cases, shall ipso facto become, due and payable, and upon any
such declaration of acceleration shall become due and payable, in each case, in
the manner, with the effect and subject to the conditions provided in the
Indenture.

The Indenture contains
provisions permitting the Company and the Trustee, with the consent of the
holders of a majority in aggregate principal amount of the Debt Securities at
the time outstanding affected thereby, as specified in the Indenture, to
execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or
of any supplemental indenture or of modifying in any manner the rights of the
holders of the Debt Securities; provided, however, that no such
supplemental indenture shall, among other things, without the consent of the
holders of each Debt Security then outstanding and affected thereby (i) change
the Maturity Date of any Debt Security, or reduce the principal amount thereof
or any premium thereon, or reduce the rate (or manner of calculation of the
rate) or extend the time of payment of interest thereon, or reduce (other than
as a result of the maturity or earlier redemption of any such Debt Security in
accordance with the terms of the Indenture and such Debt Security) or increase
the aggregate principal amount of Debt Securities then outstanding, or change
any of the redemption provisions, or make the principal thereof or any interest
or premium thereon payable in any coin or currency other than United States
Dollars, or impair or affect the right of any holder to institute suit for
payment thereof, or (ii) reduce the aforesaid percentage of Debt Securities the
holders of which are required to consent to any such supplemental
indenture.  The Indenture also contains
provisions permitting the holders of a majority in aggregate principal amount
of the Debt Securities at the time outstanding, on behalf of the holders of all
the Debt Securities, to waive any past default in the performance of any of the
covenants contained in the Indenture, or established pursuant to the Indenture,
and its consequences, except (a) a default in payments due in respect of any of
the Debt Securities, (b) in respect of covenants or provisions of the Indenture
which cannot be modified or amended without the consent of the holder of each
Debt Security affected, or (c) in respect of the covenants of the Company
relating to its ownership of Common Securities of the Trust.  Any such consent or waiver by the holder of
this Debt Security (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such holder and upon

 A-10
 

all future holders and owners of this Debt Security
and of any Debt Security issued in exchange herefor or in place hereof (whether
by registration of transfer or otherwise), irrespective of whether or not any
notation of such consent or waiver is made upon this Debt Security.

No reference herein to
the Indenture and no provision of this Debt Security or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to make all payments due on this Debt Security at the time and
place and at the rate and in the money herein prescribed.

As provided in the
Indenture and subject to certain limitations herein and therein set forth, this
Debt Security is transferable by the holder hereof on the Debt Security
Register (as defined in the Indenture) of the Company, upon surrender of this
Debt Security for registration of transfer at the office or agency of the
Trustee in Wilmington, Delaware, or at any other office or agency of the
Company in Wilmington, Delaware or Pierre, South Dakota, accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company or the Trustee duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Debt Securities
of authorized denominations and for the same aggregate principal amount will be
issued to the designated transferee or transferees.  No service charge will be made for any such
registration of transfer, but the Company or the Trustee may require payment of
a sum sufficient to cover any tax, fee or other governmental charge payable in
relation thereto as specified in the Indenture.

Prior to due presentment
for registration of transfer of this Debt Security, the Company, the Trustee,
any Authenticating Agent, any Paying Agent, any transfer agent and the Debt
Security registrar may deem and treat the holder hereof as the absolute owner
hereof (whether or not this Debt Security shall be overdue and notwithstanding
any notice of ownership or writing hereon) for the purpose of receiving payment
of the principal of and premium, if any, and interest on this Debt Security and
for all other purposes, and none of the Company, the Trustee, any
Authenticating Agent, any Paying Agent, any transfer agent or any Debt Security
registrar shall be affected by any notice to the contrary.

As provided in the
Indenture and subject to certain limitations herein and therein set forth, Debt
Securities are exchangeable for a like aggregate principal amount of Debt
Securities of different authorized denominations, as requested by the holder
surrendering the same.

The Debt Securities are issuable only in registered
certificated form without coupons.

No recourse shall be had
for the payment of the principal of or premium, if any, or interest on this
Debt Security, or for any claim based hereon, or otherwise in respect hereof,
or based on or in respect of the Indenture, against any incorporator,
stockholder, officer, director, employee or agent, past, present or future, as
such, of the Company or of any predecessor or successor corporation of the
Company, whether by virtue of any constitution, statute or rule of law, or by
the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the
issuance hereof, expressly waived and released.

 A-11
 

All terms used but not defined in this Debt Security
shall have the meanings assigned to them in the Indenture.

THIS DEBT SECURITY SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES OF SAID STATE OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 A-12

EXHIBIT B

FORM OF
CERTIFICATE OF OFFICER OF THE COMPANY

Pursuant to Section 3.05 of the Indenture, dated as of
December 7, 2006 (as amended or supplemented from time to time, the “Indenture”),
between HF Financial Corp., as issuer (the “Company”), and Wilmington Trust
Company, as trustee, the undersigned certifies that he/she is a [principal
executive officer, principal financial officer or principal accounting officer]
of the Company and in the course of the performance by the undersigned of
his/her duties as an officer of the Company, the undersigned would normally
have knowledge of any default by the Company in the performance of any
covenants contained in the Indenture, and the undersigned hereby further
certifies that he/she has no knowledge of any default for the fiscal year
ending on                      ,
20      [, except as follows: specify each such default and the nature thereof].

Capitalized terms used herein, and not otherwise
defined herein, have the respective meanings assigned thereto in the Indenture.

IN WITNESS
WHEREOF, the undersigned has executed this Certificate as of                         ,
20        .

	
   

  	
   

  	
   

  
	
  

  	
  Name:

  
	
   

  	
  Title:

  

 

 A-1

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