Document:

Exhibit
10.2

 

AMENDED AND
RESTATED DECLARATION OF TRUST

 

OF

 

PPBI TRUST I

 

Dated as of March 25,
2004

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
  INTERPRETATION AND
  DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
  ORGANIZATION

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Name

  	
   

  
	
  Section 2.2.

  	
  Office

  	
   

  
	
  Section 2.3.

  	
  Purpose

  	
   

  
	
  Section 2.4.

  	
  Authority

  	
   

  
	
  Section 2.5.

  	
  Title to
  Property of the Trust

  	
   

  
	
  Section 2.6.

  	
  Powers and
  Duties of the Trustees and the Administrators.

  	
   

  
	
  Section 2.7.

  	
  Prohibition
  of Actions by the Trust and the Trustees.

  	
   

  
	
  Section 2.8.

  	
  Powers and
  Duties of the Institutional Trustee.

  	
   

  
	
  Section 2.9.

  	
  Certain
  Duties and Responsibilities of the Trustees and the Administrators.

  	
   

  
	
  Section 2.10.

  	
  Certain
  Rights of Institutional Trustee

  	
   

  
	
  Section 2.11.

  	
  Delaware
  Trustee

  	
   

  
	
  Section 2.12.

  	
  Execution
  of Documents

  	
   

  
	
  Section 2.13.

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
   

  
	
  Section 2.14.

  	
  Duration of
  Trust

  	
   

  
	
  Section 2.15.

  	
  Mergers

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
  SPONSOR

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Sponsor’s
  Purchase of Common Securities

  	
   

  
	
  Section 3.2.

  	
  Responsibilities
  of the Sponsor

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
  TRUSTEES AND ADMINISTRATORS

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Number of
  Trustees

  	
   

  
	
  Section 4.2.

  	
  Delaware
  Trustee

  	
   

  
	
  Section 4.3.

  	
  Institutional
  Trustee; Eligibility.

  	
   

  
	
  Section 4.4.

  	
  Administrators

  	
   

  
	
  Section 4.5.

  	
  Appointment,
  Removal and Resignation of the Trustees and the Administrators.

  	
   

  
	
  Section 4.6.

  	
  Vacancies
  Among Trustees

  	
   

  
	
  Section 4.7.

  	
  Effect of
  Vacancies

  	
   

  
	
  Section 4.8.

  	
  Meetings of
  the Trustees and the Administrators

  	
   

  
	
  Section 4.9.

  	
  Delegation of
  Power

  	
   

  

 

 

	
  Section 4.10.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
   

  
	
   

  
	
  ARTICLE V

  
	
  DISTRIBUTIONS

  
	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
  ISSUANCE
  OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  General
  Provisions Regarding Securities.

  	
   

  
	
  Section 6.2.

  	
  Paying Agent,
  Transfer Agent, Calculation Agent and Registrar.

  	
   

  
	
  Section 6.3.

  	
  Form and Dating.

  	
   

  
	
  Section 6.4.

  	
  Mutilated,
  Destroyed, Lost or Stolen Certificates

  	
   

  
	
  Section 6.5.

  	
  Temporary
  Certificates

  	
   

  
	
  Section 6.6.

  	
  Cancellation

  	
   

  
	
  Section 6.7.

  	
  Rights of
  Holders; Waivers of Past Defaults.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
  DISSOLUTION AND
  TERMINATION OF TRUST

  
	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Dissolution
  and Termination of Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
  TRANSFER
  OF INTERESTS

  
	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  General

  	
   

  
	
  Section 8.2.

  	
  Transfer
  Procedures and Restrictions.

  	
   

  
	
  Section 8.3.

  	
  Deemed
  Security Holders

  	
   

  
	
  Section 8.4.

  	
  Transfer of
  Initial Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
  LIMITATION
  OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

  
	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Liability

  	
   

  
	
  Section 9.2.

  	
  Exculpation

  	
   

  
	
  Section 9.3.

  	
  Fiduciary
  Duty

  	
   

  
	
  Section 9.4.

  	
  Indemnification

  	
   

  
	
  Section 9.5.

  	
  Outside
  Businesses

  	
   

  
	
  Section 9.6.

  	
  Compensation;
  Fee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
  ACCOUNTING

  
	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
  Fiscal Year

  	
   

  
	
  Section 10.2.

  	
  Certain
  Accounting Matters.

  	
   

  
	
  Section 10.3.

  	
  Banking

  	
   

  
	
  Section 10.4.

  	
  Withholding

  	
   

  

 

ii

 

	
  ARTICLE XI

  
	
  AMENDMENTS
  AND MEETINGS

  
	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
  Amendments

  	
   

  
	
  Section 11.2.

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

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  
	
  REPRESENTATIONS
  OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 12.1.

  	
  Representations
  and Warranties of Institutional Trustee

  	
   

  
	
  Section 12.2.

  	
  Representations
  and Warranties of Delaware Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 13.1.

  	
  Notices

  	
   

  
	
  Section 13.2.

  	
  Governing
  Law

  	
   

  
	
  Section 13.3.

  	
  Submission
  to Jurisdiction.

  	
   

  
	
  Section 13.4.

  	
  Intention
  of the Parties

  	
   

  
	
  Section 13.5.

  	
  Headings

  	
   

  
	
  Section 13.6.

  	
  Successors
  and Assigns

  	
   

  
	
  Section 13.7.

  	
  Partial
  Enforceability

  	
   

  
	
  Section 13.8.

  	
  Counterparts

  	
   

  

 

 

	
  ANNEXES AND
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
  ANNEX I

  	
   

  	
  Terms of Capital Securities and Common
  Securities

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
   

  	
  Form of Capital Security Certificate

  
	
  EXHIBIT A-2

  	
   

  	
  Form of Common Security Certificate

  
	
  EXHIBIT B

  	
   

  	
  Form of Transferee Certificate to be Executed
  by Accredited Investors

  
	
  EXHIBIT C

  	
   

  	
  Form of Transferor Certificate to be Executed
  for QIBs

  
	
  EXHIBIT D

  	
   

  	
  Form of Transferee Certificate to be Executed
  by Non-U.S. Persons

  

 

iii

 

AMENDED AND RESTATED
DECLARATION OF TRUST

 

OF

 

PPBI TRUST I

 

March 25, 2004

 

AMENDED AND RESTATED
DECLARATION OF TRUST (as amended or supplemented from time to time in
accordance with the terms hereof, this “Declaration”), dated and effective as
of March 25, 2004, by the Trustees (as defined herein), the Administrators
(as defined herein), the Sponsor (as defined herein) and the holders from time
to time of undivided beneficial interests in the assets of the Trust (as
defined herein) to be issued pursuant to this Declaration.

 

WHEREAS, certain of the Trustees
and the Sponsor established PPBI Trust I (the “Trust”), a statutory trust under
the Statutory Trust Act (as defined herein), pursuant to a Declaration of
Trust, dated as of March 17, 2004 (the “Original Declaration”), and a
Certificate of Trust filed with the Secretary of State of the State of Delaware
on March 17, 2004, for the sole purpose of issuing and selling the
Securities (as defined herein) representing undivided beneficial interests in
the assets of the Trust, investing the proceeds thereof in the Debentures (as
defined herein) of the Debenture Issuer (as defined herein) and engaging in
those activities necessary, advisable or incidental thereto;

 

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

 

WHEREAS, all of the
Trustees, the Administrators and the Sponsor, by this Declaration, amend and
restate each and every term and provision of the Original Declaration.

 

NOW, THEREFORE, it being
the intention of the parties hereto to continue the Trust as a statutory trust
under the Statutory Trust Act and that this Declaration constitutes the
governing instrument of such statutory trust, and that all assets contributed
to the Trust will be held in trust for the benefit of the holders, from time to
time, of the Securities, subject to the provisions of this Declaration, and, in
consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt of which is hereby acknowledged, the
parties, intending to be legally bound hereby, amend and restate in its
entirety the Original Declaration and agree as follows:

 

ARTICLE I

 

INTERPRETATION AND
DEFINITIONS

 

Section 1.1.  Definitions.  Unless the context otherwise requires:

 

(a)                                  capitalized
terms used in this Declaration but not defined in the preamble above or
elsewhere herein have the respective meanings assigned to them in this
Section 1.1 or, if not defined in this Section 1.1 or elsewhere
herein, in the Indenture;

 

 

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

 

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

 

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

 

(e)                                  a
term defined in the Trust Indenture Act (as defined herein) has the same
meaning when used in this Declaration unless otherwise defined in this
Declaration or unless the context otherwise requires; and

 

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

 

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

 

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

 

“Administrators”
means each of Steven R. Gardner, John Shindler and Kathrine Duncan, solely in
such Person’s capacity as Administrator of the Trust continued hereunder and
not in such Person’s individual capacity, or such Administrator’s successor in
interest in such capacity, or any successor appointed as herein provided.

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

“Calculation Agent” has
the meaning set forth in Section 1.01 of the Indenture.

 

“Capital Securities” has
the meaning set forth in Section 6.1(a).

 

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

 

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

 

“Certificate” means any
certificate evidencing Securities.

 

“Certificate of Trust”
means the certificate of trust filed with the Secretary of State of the State
of Delaware with respect to the Trust, as amended and restated from time to
time.

 

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

 

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

 

“Commission” means the
United States Securities and Exchange Commission.

 

“Common Securities” has
the meaning set forth in Section 6.1(a).

 

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

 

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

 

“Corporate Trust Office”
means the office of the Institutional Trustee at which 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 execution of
this Declaration shall be Rodney Square North, 1100 North Market Street,
Wilmington, DE 19890-0001, Attention: Corporate Trust Administration.

 

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

 

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

 

3

 

“Debenture Issuer” means PACIFIC
PREMIER BANCORP, INC., a savings and loan holding company incorporated in the
State of Delaware, in its capacity as issuer of the Debentures under the
Indenture, and any permitted successor under the Indenture.

 

“Debenture Trustee” means
Wilmington Trust Company, a Delaware banking corporation, not in its individual
capacity but solely as trustee under the Indenture until a successor is
appointed thereunder, and thereafter means such successor trustee.

 

“Debentures” means the
Floating Rate Junior Subordinated Debt Securities due 2034 to be issued by the
Debenture Issuer under the Indenture.

 

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

 

“Deferred Interest” means
any interest on the Debentures that would have been overdue and unpaid for more
than one Distribution Payment Date but for the imposition of an Extension
Period, and the interest that shall accrue (to the extent that the payment of
such interest is legally enforceable) on such interest at the Coupon Rate
applicable during such Extension Period, compounded quarterly from the date on
which such Deferred Interest would otherwise have been due and payable until
paid or made available for payment.

 

“Definitive Capital
Securities” means any Capital Securities in definitive form issued by the
Trust.

 

“Delaware Trustee” has
the meaning set forth in Section 4.2.

 

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

 

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

 

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

 

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

 

“Event of Default” means
the occurrence of an Indenture Event of Default.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, or any successor
legislation.

 

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

 

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

 

“Fiduciary Indemnified
Person” shall mean each of the Institutional Trustee (including in its
individual capacity), the Delaware Trustee (including in its individual
capacity), any Affiliate of the Institutional Trustee or the Delaware Trustee,
and any officers, directors,

 

4

 

shareholders, members,
partners, employees, representatives, custodians, nominees or agents of the
Institutional Trustee or the Delaware Trustee.

 

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

 

“Guarantee” means the
Guarantee Agreement, dated as of the Closing Date, of the Sponsor (the
“Guarantor”) in respect of the Capital Securities.

 

“Holder” means a Person
in whose name a Certificate representing a Security is registered on the
Securities Register maintained by or on behalf of the Registrar, such Person
being a beneficial owner within the meaning of the Statutory Trust Act.

 

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

 

“Indenture” means the
Indenture, dated as of the Closing Date, between the Debenture Issuer and the
Debenture Trustee, and any indenture supplemental thereto pursuant to which the
Debentures are to be issued.

 

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

 

“Institutional Trustee”
means the Trustee meeting the eligibility requirements set forth in
Section 4.3.

 

“Interest Period” means
the “Interest Period” as defined in the Indenture.

 

“Interest Rate” means the
“Interest Rate” as defined in the Indenture.

 

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

 

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

 

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

 

“Legal Action” has the
meaning set forth in Section 2.8(e).

 

“LIBOR” means the London
Interbank Offered Rate for three-month U.S. Dollar deposits in Europe as
determined by the Calculation Agent according to paragraph 2(b) of Annex I.

 

“LIBOR Banking Day” has
the meaning set forth in paragraph 2(b)(1) of Annex I.

 

“LIBOR Business Day” has
the meaning set forth in paragraph 2(b)(1) of Annex I.

 

5

 

“LIBOR
Determination Date” has the meaning set forth in paragraph 2(b)(1) of Annex I.

 

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

 

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

 

“Majority in liquidation
amount of the Securities” means Holders of outstanding Securities voting
together as a single class or, as the context may require, Holders of
outstanding Capital Securities or Holders of outstanding Common Securities
voting separately as a class, who are the record owners of more than 50% of the
aggregate liquidation amount (including the 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 outstanding Securities of the relevant class.

 

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

 

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

 

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

 

(a)                                  a
statement that each Authorized Officer or Person, as the case may be, signing
the Officers’ Certificate has read the covenant or condition and the
definitions relating thereto;

 

(b)                                 a
brief statement of the nature and scope of the examination or investigation
undertaken by each Authorized Officer or Person, as the case may be, in
rendering the Officers’ Certificate;

 

(c)                                  a
statement that each Authorized Officer or Person, as the case may be, has made
such examination or investigation as, in his or her opinion, is necessary to
enable such Authorized Officer or Person, as the case may be, to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

 

(d)                                 a
statement as to whether, in the opinion of each Authorized Officer or Person,
as the case may be, such condition or covenant has been complied with.

 

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

 

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

 

“OTS” means the Office of
Thrift Supervision.

 

6

 

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

 

“Payment Amount” has the
meaning set forth in Section 5.1.

 

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

 

“Placement Agreement”
means the Placement Agreement relating to the offer and sale of Capital
Securities to ALESCO Preferred Funding III, Ltd.

 

“PORTAL” has the meaning
set forth in Section 2.6(a)(i).

 

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

 

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

 

“Purchaser” means ALESCO
Preferred Funding III, Ltd.

 

“QIB” means a “qualified
institutional buyer” as defined under Rule 144A.

 

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

 

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

 

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

 

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

 

“Relevant Trustee” has
the meaning set forth in Section 4.5(a).

 

“Resale Restriction
Termination Date” means, with respect to any Capital 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 Capital Security and (z) the last date on which the
Trust or any Affiliate of the Trust was the Holder of such Capital 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 Institutional Trustee, any officer within the
Corporate Trust Office of the Institutional Trustee with direct responsibility
for the administration of this Declaration, 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 Institutional Trustee customarily performing
functions similar to those performed by any of the above designated officers
and also means,

 

7

 

with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of that officer’s knowledge of and familiarity with the particular
subject.

 

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

 

“Rule 144A” means Rule
144A under the Securities Act.

 

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

 

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

 

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

 

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

 

“Securities Register” has
the meaning set forth in Section 6.2(a).

 

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

 

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

 

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

 

“Sponsor” means PACIFIC
PREMIER BANCORP, INC., a savings and loan holding company that is incorporated
in the State of Delaware, or any permitted successor of the Debenture Issuer
under the Indenture, in its capacity as sponsor of the Trust.

 

“Statutory Trust Act”
means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801 et
seq., as it may be amended from time to time, or any successor legislation.

 

“Successor Delaware
Trustee” has the meaning set forth in Section 4.5(e).

 

“Successor Entity” has
the meaning set forth in Section 2.15(b).

 

“Successor Institutional
Trustee” has the meaning set forth in Section 4.5(b).

 

“Successor Securities”
has the meaning set forth in Section 2.15(b).

 

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

 

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

 

“Telerate Page 3750” has
the meaning set forth in paragraph 2(b)(1) of Annex I.

 

“10% in liquidation
amount of the Securities” means Holders of outstanding Securities voting
together as a single class or, as the context may require, Holders of
outstanding

 

8

 

Capital Securities or
Holders of outstanding Common Securities voting separately as a class, who are
the record owners of 10% or more of the aggregate liquidation amount (including
the stated amount that would be paid 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 outstanding
Securities of the relevant class.

 

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

 

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

 

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

 

“Trustee” or “Trustees”
means each Person who has signed this Declaration as a trustee, so long as such
Person shall continue in office in accordance with the terms hereof, and all
other Persons who may from time to time be duly appointed, qualified and
serving as Trustees in accordance with the provisions hereof, and references
herein to a Trustee or the Trustees shall refer to such Person or Persons
solely in their capacity as trustees hereunder.

 

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

 

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

 

ARTICLE II

ORGANIZATION

 

Section 2.1.  Name.  The Trust is named “PPBI Trust I,” as such name may be modified
from time to time by the Administrators following written notice to the
Institutional Trustee and the Holders of the Securities.  The Trust’s activities may be conducted
under the name of the Trust or any other name deemed advisable by the
Administrators.

 

Section 2.2.  Office.  The address of the principal office of the Trust, which shall be
in a state of the United States or the District of Columbia, is 1600 Sunflower
Ave., 2nd Floor, Costa Mesa, California 92626. 
On ten Business Days’ written notice to the Institutional Trustee and
the Holders of the Securities, the Administrators may designate another
principal office, which shall be in a state of the United States or the
District of Columbia.

 

Section 2.3.  Purpose.  The exclusive purposes and functions of the Trust are (a) to
issue and sell the Securities representing undivided beneficial interests in
the assets of the Trust, (b) to invest the gross proceeds from such sale in the
Debentures and (c) except as otherwise limited herein, to engage in only those
other activities deemed necessary, advisable or

 

9

 

incidental thereto by the Institutional Trustee,
including, without limitation, those activities specified in this
Declaration.  The Trust shall not borrow
money, issue debt or reinvest proceeds derived from investments, pledge any of
its assets, or otherwise undertake (or permit to be undertaken) any activity
that would cause the Trust not to be classified for United States federal
income tax purposes as a grantor trust.

 

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

 

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

 

Section 2.6.  Powers and Duties of the Trustees and the
Administrators.

 

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

 

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

 

(A)                              the
issuance and sale of the Securities;

 

(B)                                to
cause the Trust to enter into, and to execute, deliver and perform on behalf of
the Trust, such agreements as may be necessary or desirable in connection with
the purposes and function of the Trust, including agreements with the Paying
Agent, a subscription agreement for Debentures between the Trust and the
Sponsor, a subscription agreement for Capital Securities between the Trust and
the Purchaser of the Capital

 

10

 

Securities and a
subscription agreement for Common Securities between the Trust and the Sponsor;

 

(C)                                ensuring
compliance with the Securities Act and applicable securities or blue sky laws
of states and other jurisdictions;

 

(D)                               if
and at such time determined solely by the Sponsor at the request of the
Holders, assisting in the designation of the Capital Securities for trading in
the Private Offering, Resales and Trading through the Automatic Linkages
(“PORTAL”) system if available;

 

(E)                                 the
sending of notices (other than notices of default) and other information
regarding the Securities and the Debentures to the Holders in accordance with
this Declaration, including notice of any notice received from the Debenture
Issuer of its election to defer payments of interest on the Debentures by extending
the interest payment period under the Indenture;

 

(F)                                 the
appointment of a Paying Agent, Transfer Agent and Registrar in accordance with
this Declaration;

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

(M)                            to
negotiate the terms of, and the execution and delivery of, the Placement
Agreement providing for the sale of the Capital Securities;

 

(N)                               to
employ or otherwise engage employees, agents (who may be designated as officers
with titles), managers, contractors, advisors, attorneys and consultants and
pay reasonable compensation for such services;

 

(O)                               to
incur expenses that are necessary, advisable or incidental to carry out any of
the purposes of the Trust;

 

(P)                                 to
give the certificate required by § 314(a)(4) of the Trust Indenture Act to
the Institutional Trustee, which certificate may be executed by an
Administrator; and

 

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

 

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

 

(A)                              the
establishment of the Property Account;

 

(B)                                the
receipt of the Debentures;

 

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

 

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

 

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

 

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

 

12

 

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

 

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

 

(I)                                    after
any Event of Default (of which the Institutional Trustee has knowledge (as
provided in Section 2.10(m) hereof)) (provided, that such Event of
Default is not by or with respect to the Institutional Trustee), the taking of
any action that the Institutional Trustee may from time to time determine is
necessary, advisable or incidental for the foregoing to give effect to the
terms of this Declaration and protect and conserve the Trust Property for the
benefit of the Holders (without consideration of the effect of any such action
on any particular Holder);

 

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

 

(K)                               to
undertake any actions set forth in § 317(a) of the Trust Indenture Act.

 

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

 

(b)                                 So
long as this Declaration remains in effect, the Trust (or the Trustees or
Administrators acting on behalf of the Trust) shall not undertake any business,
activities or transaction except as expressly provided herein or contemplated
hereby.  In particular, neither the
Trustees nor the Administrators may cause the Trust to (i) acquire any investments
or engage in any activities not authorized by this Declaration, (ii) sell,
assign, transfer, exchange, mortgage, pledge, set-off or otherwise dispose of
any of the Trust Property or interests therein, including to Holders, except as
expressly provided herein, (iii) take any action that would cause (or in
the case of the Institutional Trustee, to the actual knowledge of a Responsible
Officer would cause) the Trust to fail or cease to qualify as a grantor trust
for United States federal income tax purposes, (iv) incur any indebtedness
for borrowed money or issue any other debt or (v) take or consent to any
action that would result in the placement of a lien on any of the Trust

 

13

 

Property.  The
Institutional Trustee shall, at the sole cost and expense of the Trust subject
to reimbursement under Section 9.6(a), defend all claims and demands of
all Persons at any time claiming any lien on any of the Trust Property adverse
to the interest of the Trust or the Holders in their capacity as Holders.

 

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

 

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

 

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

 

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

 

(d)                                 Notwithstanding
anything herein to the contrary, the Administrators, the Institutional Trustee
and the Holders of a Majority in liquidation amount of the Common Securities
are authorized and directed to conduct the affairs of the Trust and to operate
the Trust so that (i) the Trust will not be deemed to be an Investment
Company required to be registered under the Investment Company Act (in the case
of the Institutional Trustee, to the actual knowledge of a Responsible
Officer), and (ii) the Trust will not fail to be classified as a grantor
trust for United States federal income tax purposes (in the case of the
Institutional Trustee, to the actual knowledge of a Responsible Officer) and
(iii) the Trust will not take any action inconsistent with the treatment
of the Debentures as indebtedness of the Debenture Issuer for United States
federal income tax purposes (in the case of the Institutional Trustee, to the
actual knowledge of a Responsible Officer). 
In this connection, the Institutional Trustee, the Administrators and
the Holders of a Majority in liquidation amount of the Common Securities are
authorized to take any action, not inconsistent with applicable laws or this
Declaration, as amended from time to time, that each of the Institutional
Trustee, the Administrators and such Holders determine in their discretion to
be necessary or desirable for such purposes, even if such action adversely
affects the interests of the Holders of the Capital Securities.

 

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

 

14

 

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

 

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

 

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

 

Section 2.7.  Prohibition of Actions by the Trust and
the Trustees.

 

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

 

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

 

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

 

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

 

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

 

(e)                                  possess
any power or otherwise act in such a way as to vary the Trust Property or the
terms of the Securities;

 

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

 

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

 

15

 

Section 2.8.  Powers and Duties of the Institutional
Trustee.

 

(a)                                  The
legal title to the Debentures shall be owned by and held of record in the name
of the Institutional Trustee in trust for the benefit of the Trust.  The right, title and interest of the
Institutional Trustee to the Debentures shall vest automatically in each Person
who may hereafter be appointed as Institutional Trustee in accordance with
Section 4.5.  Such vesting and
cessation of title shall be effective whether or not conveyancing documents
with regard to the Debentures have been executed and delivered.

 

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

 

(c)                                  The
Institutional Trustee shall:

 

(i)                                     establish
and maintain a segregated non-interest bearing trust account (the “Property
Account”) in the United States (as defined in Treasury Regulations
§ 301.7701-7), in the name of and under the exclusive control of the
Institutional Trustee, and maintained in the Institutional Trustee’s trust
department, on behalf of the Holders of the Securities and, upon the receipt of
payments of funds made in respect of the Debentures held by the Institutional
Trustee, deposit such funds into the Property Account and make payments to the
Holders of the Capital Securities and Holders of the Common Securities from the
Property Account in accordance with Section 5.1.  Funds in the Property Account shall be held uninvested until
disbursed in accordance with this Declaration;

 

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

 

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

 

(d)                                 The
Institutional Trustee shall take all actions and perform such duties as may be
specifically required of the Institutional Trustee pursuant to the terms of the
Securities.

 

(e)                                  The
Institutional Trustee may bring or defend, pay, collect, compromise, arbitrate,
resort to legal action with respect to, or otherwise adjust claims or demands
of or against, the Trust (a “Legal Action”) which arise out of or in connection
with an Event of Default of which a Responsible Officer of the Institutional
Trustee has actual knowledge or the Institutional Trustee’s duties and
obligations under this Declaration or the Trust Indenture Act; provided,
however, that if an Event of Default has occurred and is continuing and
such event is attributable to the failure of the Debenture Issuer to pay
interest or premium, if any, on or principal of the Debentures on the date such
interest, premium, if any, or principal is otherwise payable (or in the case of
redemption, on the date of redemption), then a Holder of the Capital Securities
may directly institute a proceeding for enforcement of payment to such Holder
of the

 

16

 

principal of or premium, if any, or interest on the
Debentures having a principal amount equal to the aggregate liquidation amount
of the Capital Securities of such Holder (a “Direct Action”) on or after the
respective due date specified in the Debentures.  In connection with such Direct Action, the rights of the Holders
of the Common Securities will be subrogated to the rights of such Holder of the
Capital Securities to the extent of any payment made by the Debenture Issuer to
such Holder of the Capital Securities in such Direct Action; provided, however,
that a Holder of the Common Securities may exercise such right of subrogation
only if no Event of Default with respect to the Capital Securities has occurred
and is continuing.

 

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

 

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

 

(ii)                                  a
Successor Institutional Trustee has been appointed and has accepted that
appointment in accordance with Section 4.5.

 

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

 

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

 

Section 2.9.  Certain Duties and Responsibilities of
the Trustees and the Administrators.

 

(a)                                  The
Institutional Trustee, before the occurrence of any Event of Default (of which
the Institutional Trustee has knowledge (as provided in Section 2.10(m)
hereof)) and after the curing of all Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this
Declaration and no implied covenants shall be read into this Declaration
against the Institutional Trustee.  In
case an Event of Default (of which the Institutional Trustee has knowledge (as
provided in Section 2.10(m) hereof)), has occurred (that has not been
cured or waived pursuant to Section 6.7), the Institutional Trustee shall
exercise such of the rights and powers vested in it by this Declaration, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own
affairs.

 

(b)                                 The
duties and responsibilities of the Trustees and the Administrators shall be as
provided by this Declaration and, in the case of the Institutional Trustee, by
the Trust Indenture Act. 
Notwithstanding the foregoing, no provision of this Declaration shall
require any Trustee or Administrator to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights

 

17

 

or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity satisfactory to it
against such risk or liability is not reasonably assured to it.  Whether or not therein expressly so
provided, every provision of this Declaration relating to the conduct or
affecting the liability of or affording protection to the Trustees or the
Administrators shall be subject to the provisions of this Article.  Nothing in this Declaration shall be
construed to release a Trustee from liability for its own negligent action, its
own negligent failure to act, or its own willful misconduct or bad faith.  Nothing in this Declaration shall be
construed to release an Administrator from liability for its own gross
negligent action, its own gross negligent failure to act, or its own willful
misconduct or bad faith.  To the extent
that, at law or in equity, a Trustee or an Administrator has duties and
liabilities relating to the Trust or to the Holders, such Trustee or
Administrator shall not be liable to the Trust or to any Holder for such
Trustee’s or Administrator’s good faith reliance on the provisions of this
Declaration.  The provisions of this
Declaration, to the extent that they restrict the duties and liabilities of the
Administrators or the Trustees otherwise existing at law or in equity, are
agreed by the Sponsor and the Holders to replace such other duties and
liabilities of the Administrators or the Trustees.

 

(c)                                  All
payments made by the Institutional Trustee or a Paying Agent in respect of the
Securities shall be made only from the revenue and proceeds from the Trust
Property and only to the extent that there shall be sufficient revenue or
proceeds from the Trust Property to enable the Institutional Trustee or a
Paying Agent to make payments in accordance with the terms hereof.  Each Holder, by its acceptance of a
Security, agrees that it will look solely to the revenue and proceeds from the
Trust Property to the extent legally available for distribution to it as herein
provided and that the Trustees and the Administrators are not personally liable
to it for any amount distributable in respect of any Security or for any other
liability in respect of any Security. 
This Section 2.9(c) does not limit the liability of the Trustees
expressly set forth elsewhere in this Declaration or, in the case of the
Institutional Trustee, in the Trust Indenture Act.

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

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

 

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

 

(b)                                 if
(i) in performing its duties under this Declaration, the Institutional
Trustee is required to decide between alternative courses of action,
(ii) in construing any of the provisions of this Declaration, the
Institutional Trustee finds the same ambiguous or inconsistent with any other
provisions contained herein, or (iii) the Institutional Trustee is unsure
of the application of any provision of this Declaration, then, except as to any
matter as to which the Holders of Capital Securities are entitled to vote under
the terms of this Declaration, the Institutional Trustee may deliver a notice
to the Sponsor requesting the Sponsor’s opinion as to the course of action to
be taken and the Institutional Trustee shall take such action, or refrain from
taking such action, as the Institutional Trustee in its sole discretion shall
deem advisable and in the best interests of the Holders, in which event the
Institutional Trustee shall have no liability except for its own negligence,
willful misconduct or bad faith;

 

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

 

(d)                                 whenever
in the administration of this Declaration, the Institutional Trustee shall deem
it desirable that a matter be proved or established before undertaking,

 

19

 

suffering or omitting any action hereunder, the
Institutional Trustee (unless other evidence is herein specifically prescribed)
may, in the absence of bad faith on its part, request and conclusively rely
upon an Officers’ Certificate which, upon receipt of such request, shall be
promptly delivered by the Sponsor or the Administrators;

 

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

 

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

 

(g)                                 the
Institutional Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Declaration at the request or direction of any
of the Holders pursuant to this Declaration, unless such Holders shall have
offered to the Institutional Trustee security or indemnity reasonably
satisfactory to it against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction; provided,
that nothing contained in this Section 2.10(g) shall be taken to relieve
the Institutional Trustee, upon the occurrence of an Event of Default (of which
the Institutional Trustee has knowledge (as provided in Section 2.10(m)
hereof)) that has not been cured or waived, of its obligation to exercise the
rights and powers vested in it by this Declaration;

 

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

 

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

 

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

 

20

 

instructions are received, and (iii) shall be fully
protected in acting in accordance with such instructions;

 

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

 

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

 

(m)                               the
Institutional Trustee shall not be charged with knowledge of an Event of
Default unless a Responsible Officer of the Institutional Trustee has actual
knowledge of such event or the Institutional Trustee receives written notice of
such event from any Holder, except that the Institutional Trustee shall be
deemed to have knowledge of any Event of Default pursuant to Sections 5.01(a)
or 5.01(b) of the Indenture (other than an Event of Default resulting from the
default in the payment of Additional Amounts if the Institutional Trustee does
not have actual knowledge or written notice that such payment is due and
payable);

 

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

 

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

 

Section 2.11.  Delaware Trustee.  Notwithstanding any other provision of this
Declaration other than Section 4.2, the Delaware Trustee shall not be
entitled to exercise any powers, and the Delaware Trustee shall not have any of
the duties and responsibilities of any of the Trustees or the Administrators
specified in this Declaration (except as may be required under the Statutory
Trust Act).  Except as set forth in
Section 4.2, the Delaware Trustee shall be a Trustee for the sole and
limited purpose of fulfilling the requirements of § 3807 of the Statutory
Trust Act.

 

Section 2.12.  Execution of Documents.  Unless otherwise determined in writing by
the Institutional Trustee, and except as otherwise required by the Statutory
Trust Act, the Institutional Trustee, or any one or more of the Administrators,
as the case may be, is authorized to execute and deliver on behalf of the Trust
any documents, agreements, instruments or

 

21

 

certificates that the Trustees or the Administrators,
as the case may be, have the power and authority to execute pursuant to
Section 2.6.

 

Section 2.13.  Not Responsible for Recitals or Issuance
of Securities.  The recitals
contained in this Declaration and the Securities shall be taken as the
statements of the Sponsor, and the Trustees do not assume any responsibility
for their correctness.  The Trustees
make no representations as to the value or condition of the Trust Property or
any part thereof.  The Trustees make no
representations as to the validity or sufficiency of this Declaration, the
Debentures or the Securities.

 

Section 2.14.  Duration of Trust.  The Trust, unless dissolved pursuant to the
provisions of Article VII hereof, shall have existence for five (5) years
after the Maturity Date.

 

Section 2.15.  Mergers.  (a)  The Trust may not
consolidate, amalgamate, merge with or into, or be replaced by, or convey,
transfer or lease its properties and assets substantially as an entirety to any
corporation or other Person, except as described in this Section 2.15 and
except with respect to the distribution of Debentures to Holders of Securities
pursuant to Section 7.1(a)(iv) of this Declaration or Section 4 of
Annex I.

 

(b)                                 The
Trust may, with the consent of the Administrators (which consent will not be
unreasonably withheld) and without the consent of the Institutional Trustee,
the Delaware Trustee or the Holders of the Capital Securities, consolidate,
amalgamate, merge with or into, or be replaced by, or convey, transfer or lease
its properties and assets as an entirety or substantially as an entirety to a
trust organized as such under the laws of any state; provided, that:

 

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

 

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

 

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

 

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

 

(iii)                               the
Capital Securities or any Successor Securities are listed or quoted, or any
Successor Securities will be listed or quoted upon notification of issuance, on
any national securities exchange or with another organization on which the
Capital Securities are then listed or quoted, if any;

 

22

 

(iv)                              such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not cause the rating on the Capital Securities or any Successor Securities
to be downgraded or withdrawn by any nationally recognized statistical rating
organization, if the Capital Securities are then rated;

 

(v)                                 such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and privileges of the Holders
of the Securities or any Successor Securities in any material respect (other
than with respect to any dilution of such Holders’ interests in the Successor
Entity);

 

(vi)                              such
Successor Entity, if any, has a purpose substantially identical to that of the
Trust;

 

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

 

(A)                              such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and privileges of the Holders
of the Securities or any Successor Securities in any material respect (other
than with respect to any dilution of such Holders’ interests in the Successor
Entity);

 

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

 

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

 

(viii)                        the
Sponsor guarantees the obligations of the Successor Entity under the Successor
Securities to the same extent provided by the Indenture, the Guarantee, the
Debentures and this Declaration; and

 

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

 

(c)                                  Notwithstanding
Section 2.15(b), the Trust shall not, except with the consent of Holders
of 100% in liquidation amount of the Securities, consolidate, amalgamate, merge
with or into, or be replaced by, or convey, transfer or lease its properties
and assets as an

 

23

 

entirety or substantially as an entirety to, any other
Person or permit any other Person to consolidate, amalgamate, merge with or
into, or replace it if such consolidation, amalgamation, merger, replacement,
conveyance, transfer or lease would cause the Trust or Successor Entity to be
classified as other than a grantor trust for United States federal income tax
purposes.

 

ARTICLE III

 

SPONSOR

 

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

 

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

 

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

 

(b)                                 to
prepare for filing and request the Administrators to cause the filing by the
Trust, as may be appropriate, of an application to the PORTAL system, for
listing or quotation upon notice of issuance of any Capital Securities, as
requested by the Holders of not less than a Majority in liquidation amount of
the Capital Securities; and

 

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

 

ARTICLE IV

 

TRUSTEES AND
ADMINISTRATORS

 

Section 4.1.  Number of Trustees.  The number of Trustees initially shall be
two, and:

 

(a)                                  at
any time before the issuance of any Securities, the Sponsor may, by written
instrument, increase or decrease the number of Trustees; and

 

(b)                                 after
the issuance of any Securities, the number of Trustees may be increased or
decreased by vote of the Holder of a Majority in liquidation amount of the
Common Securities voting as a class at a meeting of the Holder of the Common
Securities; provided, however, that there shall be a Delaware
Trustee if required by Section 4.2; and there shall always be one Trustee
who shall be the Institutional Trustee, and such Trustee may also

 

24

 

serve as Delaware Trustee if it meets the applicable
requirements, in which case Section 2.11 shall have no application to such
entity in its capacity as Institutional Trustee.

 

Section 4.2.  Delaware Trustee.  If required by the Statutory Trust Act, one
Trustee (the “Delaware Trustee”) shall be:

 

(a)                                  a
natural person who is a resident of the State of Delaware and a U.S. Person at
least 21 years of age; or

 

(b)                                 if
not a natural person, an entity which is organized under the laws of the United
States or any state thereof or the District of Columbia, has its principal
place of business in the State of Delaware, and otherwise meets the
requirements of applicable law, including §3807 of the Statutory Trust Act.

 

The initial Delaware
Trustee shall be Wilmington Trust Company.

 

Section 4.3.  Institutional Trustee; Eligibility.

 

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

 

(i)                                     not
be an Affiliate of the Sponsor;

 

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

 

(iii)                               be
a banking corporation or 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
supervising or examining authority referred to above, then for the purposes of
this Section 4.3(a)(iii), 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 Institutional Trustee shall cease to be eligible to so act
under Section 4.3(a), the Institutional Trustee shall immediately resign
in the manner and with the effect set forth in Section 4.5.

 

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

 

(d)                                 The
initial Institutional Trustee shall be Wilmington Trust Company.

 

25

 

Section 4.4.  Administrators.  Each Administrator shall be a U.S.
Person.  There shall at all times be at
least one Administrator.  Except where a
requirement for action by a specific number of Administrators is expressly set
forth in this Declaration and except with respect to any action the taking of
which is the subject of a meeting of the Administrators, any action required or
permitted to be taken by the Administrators may be taken by, and any power of
the Administrators may be exercised by, or with the consent of, any one such
Administrator acting alone.

 

Section 4.5.  Appointment, Removal and Resignation of
the Trustees and the Administrators.

 

(a)                                  No
resignation or removal of any Trustee (the “Relevant Trustee”) and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of this Section.

 

(b)                                 Subject
to Section 4.5(a), a Relevant Trustee may resign at any time by giving
written notice thereof to the Holders of the Securities and by appointing a
successor Relevant Trustee.  Upon the
resignation of the Institutional Trustee, the Institutional Trustee shall
appoint a successor by requesting from at least three Persons meeting the
eligibility requirements their expenses and charges to serve as the successor
Institutional Trustee on a form provided by the Administrators, and selecting
the Person who agrees to the lowest expense and charges (the “Successor
Institutional Trustee”).  If the
instrument of acceptance by the successor Relevant Trustee required by this
Section shall not have been delivered to the Relevant Trustee within 60 days
after the giving of such notice of resignation or delivery of the instrument of
removal, the Relevant Trustee may petition, at the expense of the Trust, any
federal, state or District of Columbia court of competent jurisdiction for the
appointment of a successor Relevant Trustee. 
Such court may thereupon, after prescribing such notice, if any, as it
may deem proper, appoint a Relevant Trustee. 
The Institutional Trustee shall have no liability for the selection of
such successor pursuant to this Section.

 

(c)                                  Unless
an Event of Default shall have occurred and be continuing, any Trustee may be
removed at any time by an act of the Holders of a Majority in liquidation
amount of the Common Securities.  If any
Trustee shall be so removed, the Holders of the Common Securities, by act of
the Holders of a Majority in liquidation amount of the Common Securities
delivered to the Relevant Trustee, shall promptly appoint a successor Relevant
Trustee, and such successor Relevant Trustee shall comply with the applicable
requirements of this Section.  If an
Event of Default shall have occurred and be continuing, the Institutional
Trustee or the Delaware Trustee, or both of them, may be removed by the act of
the Holders of a Majority in liquidation amount of the Capital Securities,
delivered to the Relevant Trustee (in its individual capacity and on behalf of
the Trust).  If any Trustee shall be so
removed, the Holders of Capital Securities, by act of the Holders of a Majority
in liquidation amount of the Capital Securities then outstanding delivered to
the Relevant Trustee, shall promptly appoint a successor Relevant Trustee or
Trustees, and such successor Relevant Trustee shall comply with the applicable
requirements of this Section.  If no
successor Relevant Trustee shall have been so appointed by the Holders of a
Majority in liquidation amount of the Capital Securities and accepted
appointment in the manner required by this Section within 30 days after
delivery of an

 

26

 

instrument of removal, the Relevant Trustee or any
Holder who has been a Holder of the Securities for at least six months may, on
behalf of himself and all others similarly situated, petition any federal,
state or District of Columbia court of competent jurisdiction for the
appointment of a successor Relevant Trustee. 
Such court may thereupon, after prescribing such notice, if any, as it
may deem proper, appoint a successor Relevant Trustee or Trustees.

 

(d)                                 The
Institutional Trustee shall give notice of each resignation and each removal of
a Trustee and each appointment of a successor Trustee to all Holders and to the
Sponsor.  Each notice shall include the
name of the successor Relevant Trustee and the address of its Corporate Trust
Office if it is the Institutional Trustee.

 

(e)                                  Notwithstanding
the foregoing or any other provision of this Declaration, in the event a
Delaware Trustee who is a natural person dies or is adjudged by a court to have
become incompetent or incapacitated, the vacancy created by such death,
incompetence or incapacity may be filled by the Institutional Trustee following
the procedures in this Section (with the successor being a Person who
satisfies the eligibility requirement for a Delaware Trustee set forth in this
Declaration) (the “Successor Delaware Trustee”).

 

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

 

(g)                                 No
Institutional Trustee or Delaware Trustee shall be liable for the acts or
omissions to act of any Successor Institutional Trustee or Successor Delaware
Trustee, as the case may be.

 

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

 

27

 

(i)                                     Any
Successor Delaware Trustee shall file an amendment to the Certificate of Trust
with the Secretary of State of the State of Delaware identifying the name and
principal place of business of such Delaware Trustee in the State of Delaware.

 

Section 4.6.  Vacancies Among Trustees.  If a Trustee ceases to hold office for any
reason and the number of Trustees is not reduced pursuant to Section 4.1,
or if the number of Trustees is increased pursuant to Section 4.1, a
vacancy shall occur.  A resolution
certifying the existence of such vacancy by the Trustees or, if there are more
than two, a majority of the Trustees shall be conclusive evidence of the
existence of such vacancy.  The vacancy
shall be filled with a Trustee appointed in accordance with Section 4.5.

 

Section 4.7.  Effect of Vacancies.  The death, resignation, retirement, removal,
bankruptcy, dissolution, liquidation, incompetence or incapacity to perform the
duties of a Trustee shall not operate to dissolve, terminate or annul the Trust
or terminate this Declaration.  Whenever
a vacancy in the number of Trustees shall occur, until such vacancy is filled
by the appointment of a Trustee in accordance with Section 4.5, the Institutional
Trustee shall have all the powers granted to the Trustees and shall discharge
all the duties imposed upon the Trustees by this Declaration.

 

Section 4.8.  Meetings of the Trustees and the
Administrators.  Meetings of the
Trustees or the Administrators shall be held from time to time upon the call of
any Trustee or Administrator, as applicable. 
Regular meetings of the Trustees and the Administrators, respectively,
may be in person in the United States or by telephone, at a place (if
applicable) and time fixed by resolution of the Trustees or the Administrators,
as applicable.  Notice of any in-person
meetings of the Trustees or the Administrators shall be hand delivered or
otherwise delivered in writing (including by facsimile, with a hard copy by overnight
courier) not less than 48 hours before such meeting.  Notice of any telephonic meetings of the Trustees or the
Administrators or any committee thereof shall be hand delivered or otherwise
delivered in writing (including by facsimile, with a hard copy by overnight
courier) not less than 24 hours before a meeting.  Notices shall contain a brief statement of the time, place and
anticipated purposes of the meeting. 
The presence (whether in person or by telephone) of a Trustee or an
Administrator, as the case may be, at a meeting shall constitute a waiver of
notice of such meeting except where a Trustee or an Administrator, as the case
may be, attends a meeting for the express purpose of objecting to the
transaction of any activity on the ground that the meeting has not been
lawfully called or convened.  Unless
provided otherwise in this Declaration, any action of the Trustees or the
Administrators, as the case may be, may be taken at a meeting by vote of a
majority of the Trustees or the Administrators present (whether in person or by
telephone) and eligible to vote with respect to such matter; provided,
that, in the case of the Administrators, a Quorum is present, or without a
meeting by the unanimous written consent of the Trustees or the Administrators,
as the case may be.  Meetings of the
Trustees and the Administrators together shall be held from time to time upon
the call of any Trustee or Administrator.

 

Section 4.9.  Delegation of Power.  (a) 
Any Trustee or any Administrator, as the case may be, may, by power of
attorney consistent with applicable law, delegate to any other natural person
over the age of 21 that is a U.S. Person his or her power for the purpose of
executing any documents, instruments or other writings contemplated in Section 2.6.

 

28

(b)                                 The
Trustees shall have power to delegate from time to time to such of their number
or to any officer of the Trust that is a U.S. Person, the doing of such things
and the execution of such instruments or other writings either in the name of
the Trust or the names of the Trustees or otherwise as the Trustees may deem
expedient, to the extent such delegation is not prohibited by applicable law or
contrary to the provisions of the Trust, as set forth herein.

 

Section 4.10.  Merger, Conversion, Consolidation or
Succession to Business.  Any Person
into which the Institutional Trustee or the Delaware Trustee, as the case may
be, may be merged or converted or with which either may be consolidated, or any
Person resulting from any merger, conversion or consolidation to which the
Institutional Trustee or the Delaware Trustee, as the case may be, shall be a
party, or any Person succeeding to all or substantially all the corporate trust
business of the Institutional Trustee or the Delaware Trustee, as the case may
be, shall be the successor of the Institutional Trustee or the Delaware
Trustee, as the case may be, hereunder, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, provided
such Person shall be otherwise qualified and eligible under this
Article and, provided, further, that such Person shall file
an amendment to the Certificate of Trust with the Secretary of State of the
State of Delaware as contemplated in Section 4.5(i).

 

ARTICLE V

 

DISTRIBUTIONS

 

Section 5.1.  Distributions.  Holders shall receive Distributions in
accordance with the applicable terms of the relevant Holder’s Securities.  Distributions shall be made on the Capital
Securities and the Common Securities in accordance with the preferences set
forth in their respective terms.  If and
to the extent that the Debenture Issuer makes a payment of interest (including
any Additional Amounts or Deferred Interest) or premium, if any, on and/or
principal of the Debentures held by the Institutional Trustee (the amount of
any such payment being a “Payment Amount”), the Institutional Trustee shall and
is directed, to the extent funds are available in the Property Account for that
purpose, to make a distribution (a “Distribution”) of the Payment Amount to Holders.  For the avoidance of doubt, funds in the
Property Account shall not be distributed to Holders to the extent of any taxes
payable by the Trust, in the case of withholding taxes, as determined by the
Institutional Trustee or any Paying Agent and, in the case of taxes other than
withholding taxes, as determined by the Administrators in a written notice to
the Institutional Trustee.

 

ARTICLE VI

 

ISSUANCE OF SECURITIES

 

Section 6.1.  General Provisions Regarding Securities.

 

(a)                                  The
Administrators shall on behalf of the Trust issue one series of capital
securities, evidenced by a certificate substantially in the form of Exhibit
A-1, representing undivided beneficial interests in the assets of the Trust and
having such terms as are set forth in Annex I (the “Capital Securities”), and
one series of common securities, evidenced by a certificate substantially in
the form of Exhibit A-2, representing undivided beneficial interests in

 

29

 

the assets of the Trust and having such terms as are
set forth in Annex I (the “Common Securities”).  The Trust shall issue no securities or other interests in the
assets of the Trust other than the Capital Securities and the Common Securities.  The Capital Securities rank pari passu with,
and payment thereon shall be made Pro Rata with, the Common Securities except
that, where an Event of Default has occurred and is continuing, the rights of
Holders of the Common Securities to payment in respect of Distributions and
payments upon liquidation, redemption and otherwise are subordinated to the
rights to payment of the Holders of the Capital Securities.

 

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

 

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

 

(d)                                 Upon
issuance of the Securities as provided in this Declaration, the Securities so
issued shall be deemed to be validly issued, fully paid and non-assessable, and
each Holder thereof shall be entitled to the benefits provided by this
Declaration.

 

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

 

Section 6.2.  Paying Agent, Transfer Agent, Calculation
Agent and Registrar.

 

(a)                                  The
Trust shall maintain in Wilmington, Delaware (i) an office or agency where the
Securities may be presented for payment (the “Paying Agent”) and (ii) an office
or agency where Securities may be presented for registration of transfer or
exchange (the “Transfer Agent”).  The
Trust shall keep or cause to be kept at such office or agency a register (the
“Securities Register”) for the purpose of registering Securities and transfers
and exchanges of Securities, such Securities Register to be held by a registrar
(the “Registrar”).  The Administrators
may appoint the Paying Agent, the Registrar and the Transfer Agent, and may

 

30

 

appoint one or more additional Paying Agents, one or
more co-Registrars, or one or more co-Transfer Agents in such other locations
as it shall determine.  The term “Paying
Agent” includes any additional Paying Agent, the term “Registrar” includes any
additional Registrar or co-Registrar and the term “Transfer Agent” includes any
additional Transfer Agent or co-Transfer Agent.  The Administrators may change any Paying Agent, Transfer Agent or
Registrar at any time without prior notice to any Holder.  The Administrators shall notify the
Institutional Trustee of the name and address of any Paying Agent, Transfer
Agent and Registrar not a party to this Declaration.  The Administrators hereby initially appoint the Institutional
Trustee to act as Paying Agent, Transfer Agent and Registrar for the Capital
Securities and the Common Securities at its Corporate Trust Office.  The Institutional Trustee or any of its
Affiliates in the United States may act as Paying Agent, Transfer Agent or
Registrar.

 

(b)                                 The
Trust shall also appoint a Calculation Agent, which shall determine the Coupon
Rate in accordance with the terms of the Securities.  The Trust initially appoints the Institutional Trustee as
Calculation Agent.

 

Section 6.3. 
Form and Dating.

 

(a)                                  The
Capital Securities shall be evidenced by one or more Certificates, and the
Institutional Trustee’s certificate of authentication thereon shall be,
substantially in the form of Exhibit A-1, and the Common Securities shall be
evidenced by one or more Certificates substantially in the form of Exhibit A-2,
each of which is hereby incorporated in and expressly made a part of this
Declaration.  Certificates may be typed,
printed, lithographed or engraved or may be produced in any other manner as is
reasonably acceptable to the Administrators, as conclusively evidenced by their
execution thereof.  Certificates
evidencing Securities may have letters, numbers, notations or other marks of
identification or designation and such legends or endorsements required by law,
stock exchange rule, agreements to which the Trust is subject, if any, or usage
(provided, that any such notation, legend or endorsement is in a form
acceptable to the Sponsor).  The Trust
at the direction of the Sponsor shall furnish any such legend not contained in
Exhibit A-1 to the Institutional Trustee in writing.  Each Capital Security Certificate shall be dated the date of its
authentication.  The terms and
provisions of the Securities set forth in Annex I and the forms of Certificates
set forth in Exhibits A-1 and A-2 are part of the terms of this Declaration and
to the extent applicable, the Institutional Trustee, the Delaware Trustee, the
Administrators and the Sponsor, by their execution and delivery of this
Declaration, expressly agree to such terms and provisions and to be bound
thereby.  Capital Securities will be
issued only in blocks having an aggregate liquidation amount of not less than
$100,000.

 

(b)                                 The
Capital Securities are being offered and sold by the Trust initially pursuant
to the Placement Agreement in definitive form, registered in the name of the
Holder thereof, without coupons and with the Restricted Securities Legend.

 

Section 6.4.  Mutilated, Destroyed, Lost or Stolen
Certificates.  If (a) any mutilated
Certificate should be surrendered to the Registrar, or if the Registrar shall
receive evidence to its satisfaction of the destruction, loss or theft of any
Certificate and (b) the related Holder shall deliver to the Registrar, the
Administrators and the Institutional Trustee such security or indemnity as may
be reasonably required by them to keep each of them harmless,

 

31

 

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

 

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

 

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

 

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

 

(a)                                  The
legal title to the Trust Property is vested exclusively in the Institutional
Trustee (in its capacity as such) in accordance with Section 2.5, and the
Holders shall not have any right or title therein other than the undivided
beneficial interest in the assets of the Trust conferred by their Securities
and they shall have no right to call for any partition or division of property,
profits or rights of the Trust except as described below.  The Securities shall be personal property
giving only the rights specifically set forth therein and in this
Declaration.  The Securities shall have
no, and the issuance of the Securities shall not be subject to, preemptive or
other similar rights and when issued and delivered to Holders against payment
of the purchase price therefor, the Securities will be fully paid and
nonassessable by the Trust.

 

(b)                                 For
so long as any Capital Securities remain outstanding, if, upon an Indenture
Event of Default, the Debenture Trustee fails or the holders of not less than
25% in principal amount of the outstanding Debentures fail to declare the
principal of all of the Debentures to be immediately due and payable, the
Holders of not less than a Majority in

 

32

 

liquidation amount of the Capital Securities then
outstanding shall have the right to make such declaration by a notice in
writing to the Institutional Trustee, the Sponsor and the Debenture Trustee.

 

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

 

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

 

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

 

(B)                                any
accrued Deferred Interest on all of the Debentures;

 

(C)                                all
payments on any Debentures that have become due otherwise than by such
acceleration and interest and Deferred Interest thereon at the rate borne by
the Debentures; and

 

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

 

(ii)                                  all
Events of Default with respect to the Debentures, other than the non-payment of
the principal of or premium, if any, on the Debentures that has become due
solely by such acceleration, have been cured or waived as provided in
Section 5.07 of the Indenture.

 

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

 

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

 

33

 

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

 

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

 

ARTICLE VII

 

DISSOLUTION AND
TERMINATION OF TRUST

 

Section 7.1.  Dissolution and Termination of Trust.  (a)                                                The
Trust shall dissolve on the first to occur of :

 

(i)                                     unless
earlier dissolved, on April 6, 2039, the expiration of the term of the
Trust;

 

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

 

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

 

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

 

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

 

34

 

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

 

(vii)                           before
the issuance of any Securities, with the consent of all of the Trustees and the
Sponsor.

 

(b)                                 As
soon as is practicable after the occurrence of an event referred to in Section 7.1(a),
and after satisfaction of liabilities to creditors of the Trust as required by
applicable law, including §3808 of the Statutory Trust Act, and subject to the
terms set forth in Annex I, the Institutional Trustee shall terminate the Trust
by filing a certificate of cancellation with the Secretary of State of the
State of Delaware.

 

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

 

ARTICLE VIII

 

TRANSFER OF INTERESTS

 

Section 8.1.  General.  (a)              Where
a Holder of Capital Securities delivers to the Registrar in accordance with
this Declaration a request to register a transfer of such Holder’s Capital
Securities or to exchange them for an equal aggregate liquidation amount of
Capital Securities represented by different Certificates, the Registrar shall
register the transfer or make the exchange when the requirements specified in
this Article VIII for such transfer or exchange are met.  To facilitate registrations of transfers and
exchanges, the Trust shall execute and the Institutional Trustee shall
authenticate Capital Security Certificates at the Registrar’s request.

 

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

 

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

 

(d)                                 The
Registrar shall provide in the Securities Register for the registration of
Securities and of transfers of Securities, which will be effected without
charge but only upon payment (with such indemnity as the Registrar may
reasonably require) in respect of any tax or other governmental charges that
may be imposed in relation to it.  Upon
its receipt of the documents required under this Section 8.1(d) for
registration of transfer of any Securities, the

 

35

 

Registrar shall register in the Securities Register,
in the name of the designated transferee or transferees, the Securities being
transferred and thereupon, for all purposes of this Declaration, such transfer
shall be effective and such transferee or transferees shall be, and such transferor
shall no longer be, the Holder of the transferred Securities.  Upon the registration of transfer of a
Security pursuant to the terms of this Declaration in the name of the new
Holder thereof, such Security shall constitute the same Security as the Security
so transferred and shall be entitled to the same benefits under this
Declaration as the Security so transferred. 
The Registrar shall, and is authorized to, record and register in the
Securities Register the transfer of a Security upon the Registrar’s receipt of
originals or copies (which may be by facsimile or other form of electronic
transmission) of (i) a written instrument of transfer in form reasonably
satisfactory to the Registrar duly executed by the Holder or such Holder’s
attorney duly authorized in writing, and (ii) if such Security is being
transferred prior to the Resale Restriction Termination Date other than in
accordance with Section 8.4, a certificate substantially in the form set
forth as Exhibit B, C or D, as applicable, hereto, executed by the transferor
or transferee, as applicable; thereupon, the Registrar is authorized to confirm
in writing to the transferee and, if requested, to the transferor of such
Security that such transfer has been registered in the Securities Register and
that such transferee is the Holder of such Security.  The Certificate evidencing the Security so transferred, duly
endorsed by the transferor, shall be surrendered to the Registrar at the time
the transfer conditions specified in the immediately preceding sentence are
satisfied or within five (5) Business Days after the Registrar has registered
the transfer of such Security on the Securities Register, and promptly after
such surrender, an Administrator on behalf of the Trust shall execute and, in
the case of a Capital Security Certificate, the Institutional Trustee shall,
and is authorized to, authenticate a Certificate in the name of the transferee
as the new Holder of the Security evidenced thereby.  Until the Certificate evidencing the Security so transferred is
surrendered to the Registrar, such Security may not be transferred by such new
Holder.  Each Certificate surrendered in
connection with a registration of transfer shall be canceled by the
Institutional Trustee pursuant to Section 6.6.  A transferee of a Security shall be entitled to the rights and
subject to the obligations of a Holder hereunder upon the registration of such
transfer in the Securities Register. 
Each such transferee shall be deemed to have agreed to be bound by this
Declaration.

 

(e)                                  Neither
the Trust nor the Registrar shall be required (i) to issue Certificates
representing Securities or register the transfer of or exchange any Securities
during a period beginning at the opening of business 15 days before the day of
any selection of Securities for redemption and ending at the close of business
on the earliest date on which the relevant notice of redemption is deemed to
have been given to all Holders of the Securities to be redeemed, or (ii) to
register the transfer or exchange of any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

 

Section 8.2.  Transfer Procedures and Restrictions.

 

(a)                                  Prior
to the Resale Restriction Termination Date, Certificates evidencing Capital
Securities shall bear the Restricted Securities Legend.  The Restricted Securities Legend on any
Certificate evidencing outstanding Capital Securities shall not be removed
unless there is delivered to the Trust such satisfactory evidence, which may
include an opinion of counsel, as may be reasonably required by the Trust, that
neither the Restricted Securities Legend nor the restrictions on transfer set
forth therein are required to ensure that transfers thereof comply with

 

36

 

the provisions of the Securities Act or that such
Securities are not “restricted” within the meaning of Rule 144 under the
Securities Act.  Upon provision of such
satisfactory evidence, the Institutional Trustee, at the written direction of
the Trust, shall authenticate and deliver Capital Securities Certificates that
do not bear the Restricted Securities Legend in exchange for the Capital
Securities Certificates bearing the Restricted Securities Legend.

 

(b)                                 Prior
to the Resale Restriction Termination Date, without the written consent of the
Sponsor, Capital Securities may only be transferred:  (i) to a QIB if the instrument of transfer is accompanied by a
certificate of the transferor substantially in the form set forth as Exhibit C
hereto; (ii) to an “accredited investor” within the meaning of Rule 501(a) (1),
(2), (3), (7) or (8) under the Securities Act if the instrument of transfer is
accompanied by a certificate of the transferee substantially in the form set
forth as Exhibit B hereto; or (iii)  to
a non-”U.S. Person” in an “offshore transaction” under, and within the meaning
of, Regulation S under the Securities Act if the instrument of transfer is
accompanied by a certificate of the transferee substantially in the form set
forth as Exhibit D hereto.  Each
certificate furnished pursuant to this Section 8.2(b) may be an original
or a copy (which may be furnished by facsimile or other form of electronic
transmission).

 

(c)                                  The
Capital Securities may not be transferred prior to the Resale Restriction
Termination Date except in compliance with restrictions on transfer set forth
in the legend set forth below (the “Restricted Securities Legend”), and except
as otherwise contemplated in Section 8.2(a), prior to the Resale Restriction
Termination Date, each Certificate evidencing outstanding Capital Securities
shall bear the Restricted Securities Legend:

 

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 TRUST OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER THE
SECURITIES ACT) OF THE TRUST 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
DEBENTURE ISSUER OR THE TRUST, (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

 

37

 

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 RIGHT OF THE DEBENTURE ISSUER AND THE
TRUST 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 EACH OF THEM IN ACCORDANCE WITH THE AMENDED
AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE
DEBENTURE ISSUER OR THE TRUST.  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

 

38

 

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 AMENDED AND RESTATED DECLARATION OF TRUST TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN
EXCESS THEREOF.  ANY ATTEMPTED TRANSFER
OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION AMOUNT 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.

 

(d)                                 Capital
Securities may only be transferred in minimum blocks of $100,000 aggregate
liquidation amount (100 Capital Securities) and multiples of $1,000 in excess
thereof.  Any attempted transfer of
Capital Securities in a block having an aggregate liquidation amount 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 a Holder of such Capital Securities for any purpose, including, but
not limited to, the receipt of Distributions on such Capital Securities, and
such purported transferee shall be deemed to have no interest whatsoever in
such Capital Securities.

 

Section 8.3.  Deemed Security Holders.  The Trust, the Administrators, the Trustees,
the Paying Agent, the Transfer Agent or the Registrar may treat the Person in
whose name any Security shall be registered on the Securities Register of the
Trust as the sole Holder and owner of such Security for purposes of receiving
Distributions and for all other purposes whatsoever and, accordingly, shall not
be bound to recognize any equitable or other claim to or interest in such
Security on the part of any other Person, whether or not the Trust, the
Administrators, the Trustees, the Paying Agent, the Transfer Agent or the
Registrar shall have actual or other notice thereof.

 

Section 8.4.  Transfer of Initial Securities.  Notwithstanding the foregoing provisions of this
Article VIII or any other provision of this Declaration (including all
Annexes and Exhibits hereto) to the contrary, any or all of the Capital
Securities initially issued to the Purchaser (the “Initial Securities”) may be
transferred by the Purchaser to any transferee

 

39

 

selected by it 
that meets the parameters specified below and, upon delivery to the
Registrar, of originals or copies (which may be by facsimile or other form of
electronic transmission) of a written instrument of transfer in form reasonably
satisfactory to the Registrar duly executed by the Purchaser or the Purchaser’s
attorney duly authorized in writing (it being understood that no signature
guarantee shall be required), then the Registrar shall, and is authorized to,
record and register on the Securities Register the transfer of such Initial
Securities to such transferee; thereupon, the Registrar is authorized to
confirm in writing to the transferee and, if requested, to the transferor of
such Initial Securities that such transfer has been registered in the
Securities Register and that such transferee is the Holder of such Initial
Securities; provided, however, that the Purchaser of the Initial
Securities, by its acceptance thereof, agrees that it may not transfer any
Initial Securities prior to the Resale Restriction Termination Date to any
transferee that is not a QIB, an “accredited investor” within the meaning of
Rule 501(a)(1), (2), (3), (7) or (8) under the Securities Act or a non-”U.S.
Person” in an “offshore transaction” under, and within the meaning of,
Regulation S under the Securities Act. 
The Certificate evidencing the Initial Securities to be transferred,
duly endorsed by the Purchaser, shall be surrendered to the Registrar at the
time the transfer conditions specified in the immediately preceding sentence
are satisfied or within five (5) Business Days after the Registrar has
registered the transfer of such Initial Securities in the Securities Register,
and promptly after such surrender, an Administrator on behalf of the Trust
shall execute and, in the case of a Capital Security Certificate, the
Institutional Trustee shall, and is authorized to, authenticate a Certificate
in the name of the transferee as the new Holder of the Initial Securities
evidenced thereby.  Until the
Certificate evidencing the Initial Securities so transferred is surrendered to
the Registrar, such Initial Securities may not be transferred by such new
Holder.  No other conditions,
restrictions or other provisions of this Declaration or any other document
shall apply to a transfer of Initial Securities by the Purchaser.

 

ARTICLE IX

 

LIMITATION OF
LIABILITY OF

HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

 

Section 9.1.  Liability.  (a)  Except as expressly
set forth in this Declaration, the Guarantee and the terms of the Securities,
the Sponsor shall not be:

 

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

 

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

 

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

 

(c)                                  Pursuant
to § 3803(a) of the Statutory Trust Act, the Holders of the Securities
shall be entitled to the same limitation of personal liability extended to
stockholders

 

40

 

of private corporations for profit organized under the
General Corporation Law of the State of Delaware, except as otherwise
specifically set forth herein.

 

Section 9.2.  Exculpation.  (a)                                        No
Indemnified Person shall be liable, responsible or accountable in damages or
otherwise to the Trust or any Covered Person for any loss, damage or claim
incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith on behalf of the Trust and in a manner such
Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Declaration or by law, except that
an Indemnified Person (other than an Administrator) shall be liable for any
such loss, damage or claim incurred by reason of such Indemnified Person’s
negligence, willful misconduct or bad faith with respect to such acts or
omissions and except that an Administrator shall be liable for any such loss,
damage or claim incurred by reason of such Administrator’s gross 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 Trust and upon such information, opinions, reports or statements
presented to the Trust by any Person as to matters the Indemnified Person
reasonably believes are within such other Person’s professional or expert
competence and, if selected by such Indemnified Person, has been selected by
such Indemnified Person with reasonable care by or on behalf of the Trust,
including information, opinions, reports or statements as to the value and
amount of the assets, liabilities, profits, losses or any other facts pertinent
to the existence and amount of assets from which Distributions to Holders of
Securities might properly be paid.

 

Section 9.3.  Fiduciary Duty.  (a)                      To
the extent that, at law or in equity, an Indemnified Person has duties
(including fiduciary duties) and liabilities relating thereto to the Trust or
to any other Covered Person, an Indemnified Person acting under this
Declaration shall not be liable to the Trust or to any other Covered Person for
its good faith reliance on the provisions of this Declaration.  The provisions of this Declaration, to the
extent that they restrict the duties and liabilities of an Indemnified Person
otherwise existing at law or in equity (other than the duties imposed on the
Institutional Trustee under the Trust Indenture Act), are agreed by the parties
hereto to replace such other duties and liabilities of the Indemnified Person.

 

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

 

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

 

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

 

41

 

Section 9.4. 
Indemnification.  (a)

 

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

 

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

 

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

 

42

 

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

 

(v)                                 To
the fullest extent permitted by law, expenses (including attorneys’ fees and
expenses) incurred by an Indemnified Person in defending a civil, criminal,
administrative or investigative action, suit or proceeding referred to in
paragraphs (i) and (ii) of this Section 9.4(a) shall be paid by the
Sponsor in advance of the final disposition of such action, suit or proceeding
upon receipt of an undertaking by or on behalf of such Indemnified Person to
repay such amount if it shall ultimately be determined that such Person is not
entitled to be indemnified by the Sponsor as authorized in this
Section 9.4(a).  Notwithstanding
the foregoing, no advance shall be made by the Sponsor if a determination is
reasonably and promptly made (1) in the case of a Company Indemnified Person
(A) by the Administrators by a majority vote of a Quorum of disinterested
Administrators, (B) if such a Quorum is not obtainable, or, even if obtainable,
if a Quorum of disinterested Administrators so directs, by independent legal
counsel in a written opinion or (C) by the Common Security Holder of the Trust,
that, based upon the facts known to the Administrators, counsel or the Common
Security Holder at the time such determination is made, such Indemnified Person
acted in bad faith or in a manner that such Person either believed to be
opposed to or did not believe to be in the best interests of the Trust, or,
with respect to any criminal proceeding, that such Indemnified Person believed
or had reasonable cause to believe such conduct was unlawful, or (2) in the
case of a Fiduciary Indemnified Person, by independent legal counsel in a
written opinion that, based upon the facts known to the counsel at the time
such determination is made, such Indemnified Person acted in bad faith or in a
manner that such Indemnified Person either believed to be opposed to or did not
believe to be in the best interests of the Trust, or, with respect to any
criminal proceeding, that such Indemnified Person believed or had reasonable
cause to believe such conduct was unlawful. 
In no event shall any advance be made (i) to a Company Indemnified
Person in instances where the Administrators, independent legal counsel or the
Common Security Holder reasonably determine that such Person deliberately
breached such Person’s duty to the Trust or its Common or Capital Security
Holders or (ii) to a Fiduciary Indemnified Person in instances where
independent legal counsel promptly and reasonably determines in a written
opinion that such Person deliberately breached such Person’s duty to the Trust
or its Common or Capital Security Holders.

 

43

 

(b)                                 The
Sponsor shall indemnify, to the fullest extent permitted by applicable law,
each Indemnified Person from and against any and all loss, damage, liability,
tax (other than taxes based on the income of such Indemnified Person), penalty,
expense or claim of any kind or nature whatsoever incurred by such Indemnified
Person arising out of or in connection with or by reason of the creation,
administration or termination of the Trust, or any act or omission of such
Indemnified Person in good faith on behalf of the Trust and in a manner such
Indemnified Person reasonably believed to be within the scope of authority
conferred on such Indemnified Person by this Declaration, except that no
Indemnified Person shall be entitled to be indemnified in respect of any loss,
damage, liability, tax, penalty, expense or claim incurred by such Indemnified
Person by reason of negligence, willful misconduct or bad faith with respect to
such acts or omissions.

 

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

 

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

 

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

 

(f)                                    The
indemnification and advancement of expenses provided by, or granted pursuant
to, this Section shall, unless otherwise provided when authorized or
ratified, continue as to a Person who has ceased to be an Indemnified Person
and shall inure to the benefit of the heirs, executors and administrators of
such a Person.

 

(g)                                 The
provisions of this Section shall survive the termination of this
Declaration or the earlier resignation or removal of the Institutional
Trustee.  The obligations of the Sponsor
under this Section to compensate and indemnify the Trustees and to pay or
reimburse the Trustees for expenses, disbursements and advances shall
constitute additional indebtedness hereunder. 
Such additional indebtedness shall be secured by a lien prior to that of

 

44

 

the Securities upon all property and funds held or
collected by the Trustees as such, except funds held in trust for the benefit
of the Holders of particular Capital Securities, provided, that the
Sponsor is the Holder of the Common Securities.

 

Section 9.5.  Outside Businesses.  Any Covered Person, the Sponsor, the
Delaware Trustee and the Institutional Trustee (subject to Section 4.3(c))
may engage in or possess an interest in other business ventures of any nature
or description, independently or with others, similar or dissimilar to the
business of the Trust, and the Trust and the Holders of Securities shall have
no rights by virtue of this Declaration in and to such independent ventures or
the income or profits derived therefrom, and the pursuit of any such venture,
even if competitive with the business of the Trust, shall not be deemed
wrongful or improper.  None of any
Covered Person, the Sponsor, the Delaware Trustee or the Institutional Trustee
shall be obligated to present any particular investment or other opportunity to
the Trust even if such opportunity is of a character that, if presented to the
Trust, could be taken by the Trust, and any Covered Person, the Sponsor, the
Delaware Trustee and the Institutional Trustee shall have the right to take for
its own account (individually or as a partner or fiduciary) or to recommend to
others any such particular investment or other opportunity.  Any Covered Person, the Delaware Trustee and
the Institutional Trustee may engage or be interested in any financial or other
transaction with the Sponsor or any Affiliate of the Sponsor, or may act as
depositary for, trustee or agent for, or act on any committee or body of
holders of, securities or other obligations of the Sponsor or its Affiliates.

 

Section 9.6.  Compensation; Fee.  (a) 
The Sponsor agrees:

 

(i)                                     to
pay to the Trustees from time to time such compensation for all services
rendered by them hereunder as the parties shall agree in writing 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

 

(ii)                                  except
as otherwise expressly provided herein, to reimburse each of the Trustees upon
request for all reasonable, documented expenses, disbursements and advances
incurred or made by such Person in accordance with any provision of this
Declaration (including the reasonable compensation and the expenses and
disbursements of such Person’s agents and counsel), except any such expense,
disbursement or advance attributable to such Person’s negligence, willful
misconduct or bad faith.

 

(b)                                 The
provisions of this Section shall survive the dissolution of the Trust and
the termination of this Declaration and the removal or resignation of any
Trustee.

 

ARTICLE X

 

ACCOUNTING

 

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

 

Section 10.2.  Certain Accounting Matters.

 

45

 

(a)                                  At
all times during the existence of the Trust, the Administrators shall keep, or
cause to be kept, at the principal office of the Trust in the United States, as
defined for purposes of Treasury Regulations § 301.7701-7, full books of
account, records and supporting documents, which shall reflect in reasonable
detail each transaction of the Trust. 
The books of account shall be maintained on the accrual method of
accounting, in accordance with generally accepted accounting principles,
consistently applied.

 

(b)                                 The
Sponsor shall cause the Administrators to deliver to each Holder of
Securities:  (1) each Form 10-K and
Form 10-Q prepared by the Sponsor and filed with the Commission in accordance
with the Exchange Act, within 10 Business Days after the filing thereof; (2) if
the Sponsor is not then (y) subject to Section 13 or 15(d) of the Exchange
Act or (z) exempt from reporting pursuant to Rule 12g3-2(b) thereunder, the
information required to be provided by Rule 144A(d)(4) under the Securities
Act; and (3) within 90 days after the end of each Fiscal Year of the
Trust, annual financial statements of the Trust, including a balance sheet of
the Trust as of the end of such Fiscal Year and the statements of income or
loss for the Fiscal Year then ended, that are prepared at the principal office
of the Trust in the United States, as defined for purposes of Treasury
Regulations § 301.7701-7.

 

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

 

(d)                                 The
Administrators shall cause to be duly prepared in the United States, as defined
for purposes of Treasury Regulations § 301.7701-7, and filed an annual
United States federal income tax return on a Form 1041 or such other form
required by United States federal income tax law, and any other annual income
tax returns required to be filed by the Administrators on behalf of the Trust
with any state or local taxing authority.

 

(e)                                  So
long as a Holder of the Capital Securities is ALESCO Preferred Funding III,
Ltd. or an entity that holds a pool of trust preferred securities and/or debt
securities or a trustee thereof, the Sponsor shall cause the Administrators to
deliver the Sponsor’s reports on Form H-(b)11 to such Holder promptly following
their filing with the OTS.

 

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

 

Section 10.4.  Withholding.  The Institutional Trustee or any Paying
Agent and the Administrators shall comply with all withholding requirements
under United States federal,

 

46

 

state and local law. 
The Institutional Trustee or any Paying Agent shall request, and each
Holder shall provide to the Institutional Trustee or any Paying Agent, such
forms or certificates as are necessary to establish an exemption from
withholding with respect to the Holder, and any representations and forms as
shall reasonably be requested by the Institutional Trustee or any Paying Agent
to assist it in determining the extent of, and in fulfilling, its withholding
obligations.  The Administrators shall
file required forms with applicable jurisdictions and, unless an exemption from
withholding is properly established by a Holder, shall remit amounts withheld
with respect to the Holder to applicable jurisdictions.  To the extent that the Institutional Trustee
or any Paying Agent is required to withhold and pay over any amounts to any
authority with respect to distributions or allocations to any Holder, the
amount withheld shall be deemed to be a Distribution to the Holder in the
amount of the withholding.  In the event
of any claimed overwithholding, Holders shall be limited to an action against
the applicable jurisdiction.  If the
amount required to be withheld was not withheld from actual Distributions made,
the Institutional Trustee or any Paying Agent may reduce subsequent
Distributions by the amount of such withholding.

 

ARTICLE XI

 

AMENDMENTS AND MEETINGS

 

Section 11.1.  Amendments.  (a)  Except as otherwise
provided in this Declaration or by any applicable terms of the Securities, this
Declaration may only be amended by a written instrument approved and executed
by

 

(i)                                     the
Institutional Trustee,

 

(ii)                                  if
the amendment affects the rights, powers, duties, obligations or immunities of
the Delaware Trustee, the Delaware Trustee,

 

(iii)                               if
the amendment affects the rights, powers, duties, obligations or immunities of
the Administrators, the Administrators, and

 

(iv)                              the
Holders of a Majority in liquidation amount of the Common Securities.

 

(b)                                 Notwithstanding
any other provision of this Article XI, no amendment shall be made, and
any such purported amendment shall be void and ineffective:

 

(i)                                     unless
the Institutional Trustee shall have first received

 

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

 

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

 

47

 

conditions precedent to
the execution and delivery of such amendment have been satisfied; or

 

(ii)                                  if
the result of such amendment would be to

 

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

 

(B)                                reduce
or otherwise adversely affect the powers of the Institutional Trustee in
contravention of the Trust Indenture Act;

 

(C)                                cause
the Trust to be deemed to be an Investment Company required to be registered
under the Investment Company Act; or

 

(D)                               cause
the Debenture Issuer to be unable to treat an amount equal to the liquidation
amount of the Capital Securities as “Tier 1 Capital” (or its then equivalent)
in the guidelines or regulations issued by the OTS; provided, that the Debenture
Issuer shall have become, or pursuant to law or regulation will become within
180 days, subject to capital requirements.

 

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

 

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

 

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

 

(f)                                    The
rights of the Holders of the Capital Securities and Common Securities, as applicable,
under Article IV to increase or decrease the number of, and appoint and
remove, Trustees shall not be amended without the consent of the Holders of a
Majority in liquidation amount of the Capital Securities or Common Securities,
as applicable.

 

(g)                                 This
Declaration may be amended by the Institutional Trustee and the Holder of the
Common Securities without the consent of the Holders of the Capital Securities
to:

 

(i)                                     cure
any ambiguity;

 

48

 

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

 

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

 

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

 

provided,
however, that no such amendment contemplated in clause (i), (ii),
(iii) or (iv) shall adversely affect the powers, preferences, rights or
interests of Holders of Capital Securities.

 

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

 

(a)                                  Meetings
of the Holders of the Capital Securities or the Common Securities may be called
at any time by the Administrators (or as provided in the terms of such
Securities) to consider and act on any matter on which Holders of such
Securities are entitled to act under the terms of this Declaration, the terms
of such Securities or the rules of any stock exchange on which the Capital
Securities are listed or admitted for trading, if any.  The Administrators shall call a meeting of
the Holders of such Securities if directed to do so by the Holders of not less
than 10% in liquidation amount of such Securities.  Such direction shall be given by delivering to the Administrators
one or more notices in a writing stating that the signing Holders of such
Securities wish to call a meeting and indicating the general or specific
purpose for which the meeting is to be called. 
Any Holders of Securities calling a meeting shall specify in writing the
Certificates held by the Holders of the Securities exercising the right to call
a meeting and only those Securities represented by such Certificates shall be
counted for purposes of determining whether the required percentage set forth
in the second sentence of this paragraph has been met.

 

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

 

(i)                                     Notice
of any such meeting shall be given to all the Holders of the Securities having
a right to vote thereat at least 7 days and not more than 60 days before the
date of such meeting.  Whenever a vote,
consent or approval of the Holders of the Securities is permitted or required
under this Declaration or the rules of any stock exchange on which the Capital
Securities are listed or admitted for trading, if any, such vote, consent or
approval may be given at a meeting of the Holders of the Securities.  Any action that may be taken at a meeting of
the Holders of the Securities may be taken without a meeting if a consent in
writing

 

49

 

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

 

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

 

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

 

ARTICLE XII

 

REPRESENTATIONS OF
INSTITUTIONAL TRUSTEE

AND DELAWARE TRUSTEE

 

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

 

50

 

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

 

(b)                                 the
Institutional Trustee has a combined capital and surplus of at least fifty
million U.S. dollars ($50,000,000);

 

(c)                                  the
Institutional Trustee is not an Affiliate of the Sponsor, nor does the Institutional
Trustee offer or provide credit or credit enhancement to the Trust;

 

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

 

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

 

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

 

Section 12.2. 
Representations and Warranties of Delaware Trustee.  The Trustee that acts as initial Delaware
Trustee represents and warrants to the Trust and to the Sponsor at the date of
this Declaration, and each Successor Delaware Trustee represents and warrants
to the Trust and the Sponsor at the time of the Successor Delaware Trustee’s
acceptance of its appointment as Delaware Trustee that:

 

(a)                                  if
it is not a natural person, the Delaware Trustee is duly organized, validly
existing and in good standing under the laws of the State of Delaware;

 

(b)                                 if
it is not a natural person, the execution, delivery and performance by the
Delaware Trustee of this Declaration has been duly authorized by all necessary
corporate action on the part of the Delaware Trustee, and this Declaration has
been duly executed and delivered by the Delaware Trustee, and under Delaware
law (excluding any securities laws) constitutes a legal, valid and binding
obligation of the Delaware Trustee, enforceable against it in accordance with
its terms, subject to applicable bankruptcy, reorganization, moratorium,
insolvency and other similar laws affecting creditors’ rights generally and to
general principles of equity and the discretion of the court (regardless of
whether considered in a proceeding in equity or at law);

 

51

 

(c)                                  if
it is not a natural person, the execution, delivery and performance of this
Declaration by the Delaware Trustee does not conflict with or constitute a
breach of the charter or by-laws of the Delaware Trustee;

 

(d)                                 it
has trust power and authority to execute and deliver, and to carry out and
perform its obligations under the terms of, this Declaration;

 

(e)                                  no
consent, approval or authorization of, or registration with or notice to, any
state or federal banking authority governing the trust powers of the Delaware
Trustee is required for the execution, delivery or performance by the Delaware
Trustee of this Declaration; and

 

(f)                                    the
Delaware Trustee is a natural person who is a resident of the State of Delaware
or, if not a natural person, it is an entity which has its principal place of
business in the State of Delaware and, in either case, a Person that satisfies
for the Trust the requirements of §3807 of the Statutory Trust Act.

 

ARTICLE XIII

MISCELLANEOUS

 

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

 

(a)                                  if
given to the Trust, in care of the Administrators at the Trust’s mailing
address set forth below (or such other address as the Trust may give notice of
to the Holders of the Securities): PPBI Trust I, c/o PACIFIC PREMIER BANCORP,
INC., 1600 Sunflower Ave., 2nd Floor, Costa Mesa, California 92626, Attention: John
Shindler, Telecopy: (714) 433-3080, Telephone: (714) 431-4000;

 

(b)                                 if
given to the Delaware Trustee, at the mailing address set forth below (or such
other address as the Delaware Trustee may give notice of to the Holders of the
Securities): Wilmington Trust Company, Rodney Square North, 1100 North Market
Street, Wilmington, DE 19890-0001, Attention: Corporate Trust Administration, Telecopy:
302-651-8882, Telephone: 302-651-1000;

 

(c)                                  if
given to the Institutional Trustee, at the Institutional Trustee’s mailing
address set forth below (or such other address as the Institutional Trustee may
give notice of to the Holders of the Securities): Wilmington Trust Company,
Rodney Square North, 1100 North Market Street, Wilmington, DE 19890-0001, Attention:
Corporate Trust Administration, Telecopy: 302-651-8882, Telephone: 302-651-1000;

 

(d)                                 if
given to the Holder of the Common Securities, at the mailing address of the
Sponsor set forth below (or such other address as the Holder of the Common
Securities may give notice of to the Trust): PACIFIC PREMIER BANCORP, INC.,
1600 Sunflower Ave., 2nd Floor, Costa Mesa, California 92626, Attention: John
Shindler, Telecopy: (714) 433-3080, Telephone: (714) 431-4000; or

 

52

 

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

 

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

 

Section 13.2. 
Governing Law.  This
Declaration and the rights and obligations of the parties hereunder shall be
governed by and interpreted in accordance with the law of the State of Delaware
and all rights, obligations and remedies shall be governed by such laws without
regard to the principles of conflict of laws of the State of Delaware or any
other jurisdiction that would call for the application of the law of any
jurisdiction other than the State of Delaware.

 

Section 13.3. 
Submission to Jurisdiction.

 

(a)                                  Each
of the parties hereto agrees that any suit, action or proceeding arising out of
or based upon this Declaration, or the transactions contemplated hereby, may be
instituted in any of the courts of the State of New York and the United States
District Courts, in each case located in the Borough of Manhattan, City and
State of New York, and further agrees to submit to the jurisdiction of any
competent court in the place of its corporate domicile in respect of actions
brought against it as a defendant.  In
addition, each such party irrevocably waives, to the fullest extent permitted
by law, any objection which it may now or hereafter have to the laying of the
venue of such suit, action or proceeding brought in any such court and
irrevocably waives any claim that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum and irrevocably
waives any right to which it may be entitled on account of its place of
corporate domicile.  Each such party
hereby irrevocably waives any and all right to trial by jury in any legal
proceeding arising out of or relating to this Declaration or the transactions
contemplated hereby.  Each such party
agrees that final judgment in any proceedings brought in such a court shall be
conclusive and binding upon it and may be enforced in any court to the
jurisdiction of which it is subject by a suit upon such judgment.

 

(b)                                 Each
of the Sponsor, the Trustees, the Administrators and the Holder of the Common
Securities irrevocably consents to the service of process on it in any such
suit, action or proceeding by the mailing thereof by registered or certified
mail, postage prepaid, to it at its address given in or pursuant to
Section 13.1 hereof.

 

(c)                                  To
the extent permitted by law, nothing herein contained shall preclude any party
from effecting service of process in any lawful manner or from bringing any
suit, action or proceeding in respect of this Declaration in any other state,
country or place.

 

Section 13.4. 
Intention of the Parties. 
It is the intention of the parties hereto that the Trust be classified
for United States federal income tax purposes as a grantor trust.  The provisions of this Declaration shall be
interpreted to further this intention of the parties.

 

53

 

Section 13.5. 
Headings.  Headings
contained in this Declaration are inserted for convenience of reference only
and do not affect the interpretation of this Declaration or any provision
hereof.

 

Section 13.6. 
Successors and Assigns. 
Whenever in this Declaration any of the parties hereto is named or referred
to, the successors and assigns of such party shall be deemed to be included,
and all covenants and agreements in this Declaration by the Sponsor and the
Trustees shall bind and inure to the benefit of their respective successors and
assigns, whether or not so expressed.

 

Section 13.7. 
Partial Enforceability. 
If any provision of this Declaration, or the application of such
provision to any Person or circumstance, shall be held invalid, the remainder
of this Declaration, or the application of such provision to persons or
circumstances other than those to which it is held invalid, shall not be
affected thereby.

 

Section 13.8. 
Counterparts.  This
Declaration may contain more than one counterpart of the signature page and
this Declaration may be executed by the affixing of the signature of each of
the Trustees and Administrators to any of such counterpart signature pages. All
of such counterpart signature pages shall be read as though one, and they shall
have the same force and effect as though all of the signers had signed a single
signature page.

 

54

 

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

 

	
   

  	
  WILMINGTON
  TRUST COMPANY,

  as Delaware Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
  WILMINGTON
  TRUST COMPANY,

  as Institutional Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  PACIFIC
  PREMIER BANCORP, INC.

  as Sponsor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Steven
  R. Gardner

  as Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  John
  Shindler

  as Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Kathrine
  Duncan

  as Administrator

  

 

55

ANNEX I

 

TERMS OF

CAPITAL SECURITIES AND COMMON SECURITIES

 

Pursuant to
Section 6.1 of the Amended and Restated Declaration of Trust, dated as of March
25, 2004 (as amended from time to time, the “Declaration”), the designation,
rights, privileges, restrictions, preferences and other terms and provisions of
the Capital Securities and the Common Securities (collectively, the
“Securities”) are set out below (each capitalized term used but not defined
herein has the meaning set forth in the Declaration):

 

1.             Designation and Number.

 

(a)           Capital
Securities. 10,000 Capital Securities of PPBI Trust I (the “Trust”), with an
aggregate liquidation amount with respect to the assets of the Trust of TEN
MILLION DOLLARS ($10,000,000) and a liquidation amount with respect to the
assets of the Trust of $1,000 per Capital Security, are hereby designated for
the purposes of identification only as the “MMCapSSM” (the “Capital
Securities”).  The Capital Security
Certificates evidencing the Capital Securities shall be substantially in the
form of Exhibit A-1 to the Declaration, with such changes and additions thereto
or deletions therefrom as may be required by ordinary usage, custom or practice
or to conform to the rules of any stock exchange on which the Capital
Securities are listed, if any.

 

(b)           Common
Securities.  310 Common Securities of
the Trust (the “Common Securities”) will be evidenced by Common Security
Certificates substantially in the form of Exhibit A-2 to the Declaration, with
such changes and additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice.  In
the absence of an Event of Default, the Common Securities will have an
aggregate liquidation amount with respect to the assets of the Trust of THREE
HUNDRED TEN THOUSAND DOLLARS ($310,000) and a liquidation amount with respect
to the assets of the Trust of $1,000 per Common Security.

 

2.             Distributions.  (a) 
Distributions payable on each Security will be payable at a floating
rate of interest per annum, which, with respect to any Distribution Period (as
defined herein), will be equal to LIBOR, as determined on the LIBOR
Determination Date for such Distribution Period (or, in the case of the first
Distribution Period, will be 1.11%), plus 2.75% (the “Coupon Rate”); provided,
however, that the Coupon Rate for any Distribution Period may not exceed
the Interest Rate (as defined in the Indenture) for the related Interest Period
(as defined in the Indenture). 
Distributions in arrears for more than one Distribution Period will bear
interest thereon, compounded quarterly, at the applicable Coupon Rate for each
Distribution Period thereafter (to the extent permitted by applicable
law).  The term “Distributions”, as used
herein, includes cash Distributions, any such compounded Distributions and any
Additional Amounts payable on the Debentures unless otherwise stated.  A Distribution is payable only to the extent
that payments are made in respect of the Debentures held by the Institutional
Trustee and to the extent the Institutional Trustee has funds legally available
in the Property Account therefor.  The
amount of Distributions payable for any Distribution Period will be computed on
the basis of a 360-day year and the actual number of days elapsed in such
Distribution Period.

 

A-I-1

 

The term
“Distribution Period”, as used herein, means (i) in the case of the first
Distribution Period, the period from, and including, the date of original
issuance of the Securities to, but excluding, the initial Distribution Payment
Date and (ii) thereafter, from, and including, the first day following the end
of the preceding Distribution Period to, but excluding, the applicable
Distribution Payment Date or, in the case of the last Distribution Period, the
related date of redemption.

 

(b)           LIBOR
shall be determined by the Calculation Agent for each Distribution Period
(other than the first Distribution Period, in which case LIBOR will be 1.11%
per annum) in accordance with the following provisions:

 

(1)           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 January 15, April 15, July 15 or October 15, as the case may
be, immediately succeeding the commencement of such Distribution 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.

 

(2)           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 offered quotations of the Reference Banks
(as defined below) 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

 

A-I-2

 

Calculation Agent). As
used herein, “Reference Banks” means four major banks in the London interbank
market selected by the Calculation Agent.

 

(3)           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 Distribution Period shall be LIBOR in
effect for the immediately preceding Distribution Period.

 

(c)           All
percentages resulting from any calculations on the 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 Sponsor and the Paying Agent of the applicable Coupon Rate that applies to
the related Distribution Period.  The
Calculation Agent shall, upon the request of a Holder of any Securities, inform
such Holder of the Coupon Rate that applies to the related Distribution
Period.  All calculations made by the
Calculation Agent in the absence of manifest error shall be conclusive for all
purposes and binding on the Sponsor and the Holders of the Securities.  The Paying Agent shall be entitled to rely
on information received from the Calculation Agent or the Sponsor as to the
applicable Coupon Rate.  The Sponsor
shall, from time to time, provide any necessary information to the Paying Agent
relating to any original issue discount and interest on the Securities that is included
in any payment and reportable for taxable income calculation purposes.

 

(e)           Distributions
on the Securities will be cumulative, will accrue from the date of original
issuance, and will be payable, subject to extension of Distribution Periods as
described herein, quarterly in arrears on January 7, April 7, July 7 and
October 7 of each year, commencing on July 7, 2004 (each, a “Distribution
Payment Date”), and on any earlier date of redemption, as applicable.  The Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures by extending the
interest payment period for up to 20 consecutive quarterly periods (each such
extended interest payment period, together with all previous and future
consecutive extensions thereof, is referred to herein as an “Extension Period”)
at any time and from time to time on the Debentures, subject to the conditions
described below and in the Indenture. 
No Extension Period may end on a date other than a Distribution Payment
Date or extend beyond the Maturity Date, any Optional Redemption Date or the
Special Redemption Date, as the case may be (each such term as defined
herein).  During any Extension Period,
interest will continue to accrue on the Debentures, 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 Coupon 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.  At the end of any Extension Period, the Debenture Issuer shall
pay all Deferred Interest then accrued and unpaid on the Debentures; provided,
however, that during any Extension Period, the Debenture Issuer 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 Debenture
Issuer’s capital stock, (ii) make any

 

A-I-3

 

payment
of principal or premium or interest on or repay, repurchase or redeem any debt
securities of the Debenture Issuer that rank in all respects pari passu
with or junior in interest to the Debentures or (iii) make any payment under
any guarantees of the Debenture Issuer that rank in all respects pari passu
with or junior in interest to the Guarantee (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Debenture
Issuer (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 Debenture Issuer (or securities convertible into or
exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a
result of any exchange or conversion of any class or series of the Debenture
Issuer’s capital stock (or any capital stock of a subsidiary of the Debenture
Issuer) for any class or series of the Debenture Issuer’s capital stock or of
any class or series of the Debenture Issuer’s indebtedness for any class or
series of the Debenture Issuer’s capital stock, (c) the purchase of fractional
interests in shares of the Debenture Issuer’s capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged, (d) any declaration of a dividend in connection with
any 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).  Prior to the
termination of any Extension Period, the Debenture Issuer 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 Debenture Issuer may commence
a new Extension Period, subject to the requirements herein and in the
Indenture. 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, but Deferred Interest shall accrue upon each
installment of interest that would otherwise have been due and payable during
such Extension Period until such installment is paid.

 

As a consequence
of any Extension Period, Distributions will be deferred.  Notwithstanding any such deferral, Distributions
will continue to accrue on the Securities, and Distributions on such accrued
Distributions will accrue, at the Coupon Rate applicable during such Extension
Period, compounded quarterly, to the extent permitted by applicable law.  If Distributions are deferred, the
Distributions due shall be paid on the date that such Extension Period
terminates to Holders of the Securities as they appear on the books and records
of the Trust on the regular record date immediately preceding the Distribution
Payment Date on which such Extension Period terminates to the extent that the
Trust has funds legally available for the payment of such Distributions in the
Property Account of the Trust.

 

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

 

A-I-4

 

(f)            Distributions
on the Securities on any Distribution Payment Date will be payable to the
Holders thereof as they appear on the books and records of the Registrar on the
relevant regular record dates.  The
relevant “regular record dates” shall be 15 days before the relevant
Distribution Payment Dates. 
Distributions payable on any Securities that are not punctually paid on
any Distribution Payment Date, as a result of the Debenture Issuer having
failed to make a payment under the Debentures, as the case may be, when due
(taking into account any Extension Period), will cease to be payable to the
Person in whose name such Securities are registered on the original relevant
regular record date, and such defaulted Distributions will instead be payable
to the Person in whose name such Securities are registered on the regular
record date preceding the Distribution Payment Date on which the related
Extension Period terminates or, in the absence of an Extension Period, a
special record date therefor selected by the Administrators.

 

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

 

(h)           If
any Distribution Payment Date other than any date of redemption falls on a day
that is not a Business Day, then Distributions payable will be paid on, and
such Distribution Payment Date will be moved to, the next succeeding Business
Day, and additional Distributions will accrue for each day that such payment is
delayed as a result thereof.

 

3.             Liquidation Distribution Upon
Dissolution.  In the event of the
voluntary or involuntary liquidation, dissolution, winding-up or termination of
the Trust (each, a “Liquidation”), the Holders of the Securities will be
entitled to receive out of the assets of the Trust legally available for
distribution to Holders of the Securities, after satisfaction of liabilities to
creditors of the Trust (to the extent not satisfied by the Debenture Issuer),
an amount in cash equal to the aggregate of the liquidation amount of $1,000
per Security plus unpaid Distributions accrued thereon to the date of payment
(collectively, the “Liquidation Distribution”), unless: (i) the Debentures have
been redeemed in full in accordance with the terms thereof and of the
Indenture; or (ii) the Debentures in an aggregate principal amount equal to the
aggregate liquidation amount of such Securities and bearing accrued and unpaid
interest in an amount equal to the accrued and unpaid Distributions on such
Securities, after paying or making reasonable provision to pay all claims and
obligations of the Trust in accordance with Section 3808(e) of the Statutory
Trust Act, shall be distributed on a Pro Rata basis to the Holders of the
Securities in exchange for such Securities.

 

The Sponsor, as
the Holder of all of the Common Securities, has the right at any time, upon
receipt by the Debenture Issuer and the Institutional Trustee for the benefit
of the Trust of (i) an opinion of nationally recognized tax counsel that
Holders will not recognize any gain or loss for United States Federal income
tax purposes as a result of the distribution of Debentures, to dissolve the
Trust (including, without limitation, upon the occurrence of a Tax Event, an
Investment Company Event or a Capital Treatment Event, each as defined herein)
and (ii) prior approval from the Office of Thrift Supervision (the “OTS”)
(if then required under applicable capital guidelines or policies of the OTS)
and, after satisfaction of liabilities to creditors of the Trust, cause the
Debentures to be distributed to the Holders of the Securities on a Pro Rata
basis in accordance with the aggregate liquidation amount thereof.

 

A-I-5

 

The Trust shall
dissolve on the first to occur of (i) April 6, 2039, the expiration of the term
of the Trust, (ii) a Bankruptcy Event with respect to the Sponsor, the Trust or
the Debenture Issuer, (iii) (other than in connection with a merger, consolidation
or similar transaction not prohibited by the Indenture, this Declaration or the
Guarantee, as the case may be) the filing of a certificate of dissolution or
its equivalent with respect to the Sponsor or upon the revocation of the
charter of the Sponsor and the expiration of 90 days after the date of
revocation without a reinstatement thereof, (iv) the distribution of all of the
Debentures to the Holders of the Securities, upon exercise of the right of the
Holders of all of the outstanding Common Securities to dissolve the Trust as
described above, (v) the entry of a decree of a judicial dissolution of any
Holder of the Common Securities, the Sponsor, the Trust or the Debenture
Issuer, (vi) when all of the Securities are then subject to redemption and the
amounts necessary for redemption thereof shall have been paid to the Holders in
accordance with the terms of the Securities or (vii) before the issuance of any
Securities, with the consent of all of the Trustees and the Sponsor.  As soon as practicable after the dissolution
of the Trust and upon completion of the winding up of the Trust, the Trust
shall terminate upon the filing of a certificate of cancellation with the
Secretary of State of the State of Delaware.

 

Notwithstanding
the foregoing, if a Liquidation of the Trust occurs as described in clause (i),
(ii), (iii) or (v) in the immediately preceding paragraph, the Trust shall be
liquidated by the Institutional Trustee of the Trust as expeditiously as such
Trustee determines to be practical by distributing, after satisfaction of
liabilities to creditors of the Trust (to the extent not satisfied by the
Debenture Issuer) as provided by applicable law, to the Holders of the
Securities, the Debentures on a Pro Rata basis, unless such distribution is determined
by the Institutional Trustee not to be practical, in which event such Holders
will be entitled to receive on a Pro Rata basis, out of the assets of the Trust
legally available for distribution to the Holders of the Securities, after
satisfaction of liabilities to creditors of the Trust (to the extent not
satisfied by the Debenture Issuer), an amount in cash equal to the Liquidation
Distribution.  A Liquidation of the
Trust pursuant to clause (iv) of the immediately preceding paragraph shall
occur if the Institutional Trustee determines that such Liquidation is
practical by distributing, after satisfaction of liabilities to creditors of
the Trust (to the extent not satisfied by the Debenture Issuer), to the Holders
of the Securities on a Pro Rata basis, the Debentures, and such distribution
occurs.

 

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

 

Upon any
Liquidation of the Trust involving a distribution of the Debentures, if at the
time of such Liquidation, the Capital Securities were rated by at least one
nationally-recognized statistical rating organization, the Debenture Issuer
will use its reasonable best efforts to obtain from at least one such or other
rating organization a rating for the Debentures.

 

After the date for
any distribution of the Debentures upon any Liquidation of the Trust, (i) the
Securities of the Trust will be deemed to be no longer outstanding, (ii) any

 

A-I-6

 

certificates representing the Capital Securities will be deemed to
represent undivided beneficial interests in such of the Debentures as have an
aggregate principal amount equal to the aggregate liquidation amount of such
Capital Securities and bearing accrued and unpaid interest equal to accrued and
unpaid Distributions on such Capital Securities until such certificates are
presented to the Debenture Issuer or its agent for transfer or reissuance (and
until such certificates are so surrendered, no payments shall be made to
Holders of Securities in respect of any payments due and payable under the
Debentures) and (iii) all rights of Holders of Securities shall cease, except
the right of such Holders to receive Debentures upon surrender of certificates
representing such Securities.

 

4.             Redemption
and Distribution.

 

(a)           The
Debentures will mature on April 6, 2034 (the “Maturity Date”) at an amount in
cash equal to 100% of the principal amount thereof plus unpaid interest accrued
thereon to such date (the “Maturity Redemption Price”).  The Debentures may be redeemed by the
Debenture Issuer, at its option, in whole or in part, on any Distribution
Payment Date on or after April 7, 2009 (each, an “Optional Redemption Date”),
at the Optional Redemption Price, upon not less than 30 nor more than 60 days’
prior written notice to holders of such Debentures.  In addition, upon the occurrence and continuation of a Tax Event,
an Investment Company Event or a Capital Treatment Event, the Debentures may be
redeemed by the Debenture Issuer, at its option, in whole but not in part, at
any time within 90 days following the occurrence of such Tax Event, Investment
Company Event or Capital Treatment Event, as the case may be (the “Special
Redemption Date”), at the Special Redemption Price, upon not less than 30 nor
more than 60 days’ prior written notice to holders of the Debentures so long as
such Tax Event, Investment Company Event or Capital Treatment Event, as the
case may be, is continuing.  In each
case, the right of the Debenture Issuer to redeem the Debentures prior to
maturity is subject to the Debenture Issuer and the Trust having received prior
approval from the OTS, if then required under applicable capital guidelines or
policies of the OTS.  Additional
interest may also be payable by the Debenture Issuer in connection with such
Tax Event, Investment Company Event or Capital Treatment Event as specified in
Section 10.02 of the Indenture.  Any
such interest received by the Trust will be distributed promptly to Holders of
the Securities on a Pro Rata basis.

 

“Tax Event” means
the receipt by the Debenture Issuer and the Trust of an opinion of counsel
experienced in such matters to the effect that, as a result of any amendment to
or change (including any announced prospective change) in the laws or any
regulations thereunder of the United States or any political subdivision or
taxing authority thereof or therein, or as a result of any official
administrative pronouncement (including any private letter ruling, technical
advice memorandum, 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
Debenture Issuer or the Trust and whether or not subject to review or appeal,
which amendment, clarification, change, Administrative Action or decision is
enacted, promulgated or announced, in each case on or after the date of
original issuance of the Debentures, there is more than an insubstantial risk
that: (i) the Trust is, or will be within 90 days of the date of such opinion,
subject to United States federal income tax with respect to income received or
accrued on the Debentures; (ii) if the Debenture Issuer is organized

 

A-I-7

 

and existing under the laws of the United States or any state thereof
or the District of Columbia, interest payable by the Debenture Issuer on the
Debentures is not, or within 90 days of the date of such opinion, will not be,
deductible by the Debenture Issuer, in whole or in part, for United States
federal income tax purposes; or (iii) the Trust is, or will be within 90 days
of the date of such opinion, subject to or otherwise required to pay, or
required to withhold from Distributions, more than a de minimis amount of other
taxes (including withholding taxes), duties, assessments or other governmental
charges.

 

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

 

“Capital Treatment
Event” means, if the Debenture Issuer is organized and existing under the laws
of the United States or any state thereof or the District of Columbia, the
receipt by the Debenture Issuer and the Trust of an opinion of counsel
experienced in such matters to the effect that, as a result of (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 Debenture Issuer or (b)
any official or administrative pronouncement or action or decision interpreting
or applying such laws, rules or regulations, which amendment or change is
effective or which pronouncement, action or decision is announced on or after
the date of original issuance of the Debentures, there is more than an
insubstantial risk that the Debenture Issuer will not, within 90 days of the
date of such opinion, be entitled to treat an amount equal to the aggregate
liquidation amount of the Capital Securities as “Tier 1 Capital” (or its then
equivalent) if the Debenture Issuer (or its successors) were subject to such
capital requirement, applied as if the Debenture Issuer (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 Debenture Issuer; provided, however, that the
distribution of the Debentures in connection with the Liquidation of the Trust
by the Debenture Issuer 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.

 

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

 

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

 

“Special Redemption Price” means, with respect to the redemption of the
Debentures following a Special Event, an amount in cash equal to 103.525% of
the principal

 

A-I-8

 

amount of the Debentures to be redeemed prior to
April 7, 2005 and thereafter equal to the percentage of the principal amount of
the Debentures 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 April 7,

  	
   

  	
  Percentage
  of Principal Amount

  	
   

  
	
  2005

  	
   

  	
  103.140

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  102.355

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  101.570

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  100.785

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2009 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)           Upon
any repayment of the Debentures at maturity or in whole or in part upon
redemption (other than following the distribution of the Debentures to the
Holders of the Securities), the proceeds from such repayment shall concurrently
be applied to redeem Pro Rata, at a redemption price corresponding to the
applicable Maturity Redemption Price, Optional Redemption Price or Special
Redemption Price for the Debentures, as the case may be, Securities having an
aggregate liquidation amount equal to the aggregate principal amount of the
Debentures so repaid; provided, however, that Holders of such
Securities shall be given not less than 30 nor more than 60 days’ prior written
notice of such redemption (other than a redemption resulting from the maturity
of the Debentures on the Maturity Date).

 

(c)           If
fewer than all the outstanding Securities are to be so redeemed, the Common
Securities and the Capital Securities will be redeemed Pro Rata and the Capital
Securities to be redeemed will be as described in Section 4(e)(ii) below.

 

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

 

(e)           Redemption
or Distribution Procedures.

 

(i)            Written notice of any redemption of,
or written notice of distribution of the Debentures in exchange for, the Securities
(a “Redemption/Distribution Notice”) will be given by the Trust by mail to each
Holder of Securities to be redeemed or exchanged not fewer than 30 nor more
than 60 days before the date of redemption or exchange thereof which, in the
case of a redemption, will be the date of redemption of the Debentures.  For purposes of the calculation of the date
of

 

A-I-9

 

redemption or exchange
and the dates on which notices are given pursuant to this Section 4(e)(i), a
Redemption/Distribution Notice shall be deemed to be given on the day such
notice is first mailed by first-class mail, postage prepaid, to Holders of such
Securities.  Each
Redemption/Distribution Notice shall be addressed to the Holders of such Securities
at the address of each such Holder appearing on the books and records of the
Registrar.  No defect in the
Redemption/Distribution Notice or in the mailing thereof with respect to any
Holder shall affect the validity of the redemption or exchange proceedings with
respect to any other Holder.

 

(ii)           In the event that fewer than all the
outstanding Capital Securities are to be redeemed, the Capital Securities to be
redeemed shall be redeemed Pro Rata from each Holder.

 

(iii)          If the Securities are to be redeemed
and the Trust gives a Redemption/Distribution Notice, which notice may only be
issued if the Debentures are redeemed or repaid as set out in this Section
(which notice will be irrevocable), then, provided, that the
Institutional Trustee has a sufficient amount of cash in connection with the
related redemption or maturity of the Debentures, the Institutional Trustee
will pay the price payable upon redemption of the Securities to the Holders of
such Securities by check mailed to the address of each such Holder appearing on
the books and records of the Trust on the related date of redemption.  If a Redemption/Distribution Notice shall
have been given and funds deposited as required, then immediately prior to the
close of business on the date of such deposit, Distributions will cease to
accrue on the Securities so subject to redemption and all rights of Holders of
such Securities so subject to redemption will cease, except the right of the
Holders of such Securities to receive the applicable price specified in Section
4(a), but without interest on such price. 
If any date of redemption of the Securities falls on a day that is not a
Business Day, then payment of all amounts payable on such date will be made on
the next succeeding Business Day, and no additional Distributions will accrue
in respect of such payment on such next succeeding Business Day.  If any amount payable upon redemption of the
Securities is improperly withheld or refused and not paid either by the Trust,
the Debenture Issuer or the Sponsor as guarantor pursuant to the Guarantee,
Distributions on such Securities will continue to accrue at the Coupon Rate
applicable from the date of redemption to the actual date of payment, in which
case the actual payment date will be considered the date of redemption for
purposes of calculating the price payable upon redemption of the
Securities.   In the event of any
redemption of the Capital Securities issued by the Trust in part, the Trust
shall not be required to (i) issue, register the transfer of or exchange any
Security during a period beginning at the opening of business 15 days before
any selection for redemption of the Capital Securities and ending at the close
of business on the earliest date on which the relevant notice of redemption is
deemed to have been given to all Holders of the Capital Securities to be so
redeemed or (ii) register the transfer of or exchange any Capital Securities so
selected for redemption, in whole or in part, except for the unredeemed portion
of any Capital Securities being redeemed in part.

 

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

 

A-I-10

 

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

 

5.             Voting Rights - Capital
Securities.  (a)  Except as provided under Sections 5(b) and 7
and as otherwise required by law and the Declaration, the Holders of the
Capital Securities will have no voting rights. 
The Administrators are required to call a meeting of the Holders of the
Capital Securities if directed to do so by Holders of not less than 10% in
liquidation amount of the Capital Securities.

 

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

 

A-I-11

 

Securities, except where the default relates to the payment of
principal of or interest on any of the Debentures.  Such notice shall state that such Indenture Event of Default also
constitutes an Event of Default hereunder. 
Except with respect to directing the time, method and place of
conducting a proceeding for a remedy, the Institutional Trustee shall not take
any of the actions described in clause (i), (ii), (iii) or (iv) above unless
the Institutional Trustee has obtained an opinion of tax counsel to the effect
that, as a result of such action, the Trust will not be classified as other
than a grantor trust for United States federal income tax purposes.

 

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

 

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

 

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

 

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

 

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

 

(c)           Subject
to Section 6.7 of the Declaration and only after each Event of Default (if any)
with respect to the Capital Securities has been cured, waived or otherwise
eliminated and subject to the requirements of the second to last sentence of
this paragraph, the Holder of the Common Securities, voting separately as a
class, may direct the time, method, and place of conducting any proceeding for
any remedy available to the Institutional Trustee, or

 

A-I-12

 

exercising
any trust or power conferred upon the Institutional Trustee under the
Declaration, including (i) directing the time, method, place of conducting any
proceeding for any remedy available to the Debenture Trustee, or exercising any
trust or power conferred on the Debenture Trustee with respect to the
Debentures, (ii) waiving any past default and its consequences that are
waivable under the Indenture, or (iii) exercising any right to rescind or annul
an acceleration of the principal of all the Debentures.  Notwithstanding this Section 6(c), the
Institutional Trustee shall not revoke any action previously authorized or
approved by a vote or consent of the Holders of the Capital Securities.  Other than with respect to directing the
time, method and place of conducting any proceeding for any remedy available to
the Institutional Trustee or the Debenture Trustee as set forth above, the
Institutional Trustee shall not take any action described in clause (i), (ii)
or (iii) above, unless the Institutional Trustee has obtained an opinion of tax
counsel to the effect that for the purposes of United States federal income tax
the Trust will not be classified as other than a grantor trust on account of
such action.  If the Institutional
Trustee fails to enforce its rights under the Declaration, to the fullest
extent permitted by law, the Holder of the Common Securities may institute a
legal proceeding directly against any Person to enforce the Institutional
Trustee’s rights under the Declaration, without first instituting a legal
proceeding against the Institutional Trustee or any other Person.

 

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

 

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

 

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

 

A-I-13

 

(a)           In
the event the consent of the Institutional Trustee, as the holder of the
Debentures, is required under the Indenture with respect to any amendment,
modification or termination of the Indenture or the Debentures, the
Institutional Trustee shall request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination and
shall vote with respect to such amendment, modification, or termination as
directed by a Majority in liquidation amount of the Securities voting together
as a single class; provided, however, that where a consent under
the Indenture would require a Super Majority, the Institutional Trustee may
only give such consent at the written direction of the Holders of not less than
the proportion in liquidation amount of the Securities which the relevant Super
Majority represents of the aggregate principal amount of the Debentures
outstanding.

 

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

 

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

 

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

 

9.             Ranking.  The Capital Securities rank pari passu
with, and payment thereon shall be made Pro Rata with, the Common Securities
except that, where an Event of Default has occurred and is continuing, the
rights of Holders of the Common Securities to receive payment of Distributions
and payments upon Liquidation, redemption and otherwise are subordinated to the
rights of the Holders of the Capital Securities with the result that no payment
of any Distribution on, or any amount payable upon the redemption of, any
Common Security, and no payment to the Holder of any Common Security on account
of the Liquidation of the Trust, shall be made unless payment in full in cash
of (i) all accrued and unpaid Distributions on

 

A-I-14

 

all outstanding Capital
Securities for all Distribution Periods terminating on or prior thereto, (ii)
all amounts payable upon Capital Securities then subject to redemption and
(iii) all amounts payable upon Capital Securities in the event of the
Liquidation of the Trust, in each case, shall have been made or provided for,
and all funds immediately available to the Institutional Trustee shall first be
applied to the payment in full in cash of the amounts specified in clause (i),
(ii) and (iii) above that are then due and payable.

 

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

 

11.           No Preemptive Rights.  The Holders of the Securities shall have no,
and the issuance of the Securities is not subject to, preemptive or similar
rights to subscribe for any additional securities.

 

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

 

A-I-15

 

EXHIBIT A-1

 

FORM
OF CAPITAL SECURITY CERTIFICATE

 

[FORM OF FACE OF
SECURITY]

 

THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), 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 TRUST OR ANY AFFILIATE (AS DEFINED IN RULE
405 UNDER THE SECURITIES ACT) OF THE TRUST 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 DEBENTURE ISSUER OR THE TRUST, (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 RIGHT OF THE DEBENTURE ISSUER AND THE
TRUST 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 EACH OF THEM IN ACCORDANCE WITH THE AMENDED
AND RESTATED DECLARATION OF

 

A-1-1

 

TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE
TRUST.  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 AMENDED AND RESTATED DECLARATION OF TRUST TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN
EXCESS THEREOF.  ANY ATTEMPTED TRANSFER
OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000
SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY

 

A-1-2

 

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.

 

A-1-3

 

	
  Certificate
  Number

  	
   

  	
  [          ]

  	
   

  	
  Number of Capital Securities 
  [            ]

  

 

 

CUSIP NO [        ]

 

Certificate
Evidencing Capital Securities

 

of

 

PPBI TRUST I

 

Capital Securities

 

(liquidation
amount $1,000 per Capital Security)

 

PPBI Trust I, a
statutory trust created under the laws of the State of Delaware (the “Trust”),
hereby certifies that [                                      ]
is the registered owner (the “Holder”) of
[            ]
capital securities of the Trust representing undivided beneficial interests in
the assets of the Trust, designated as MMCapSSM (liquidation amount
$1,000 per Capital Security) (the “Capital Securities”).  Subject to the Declaration (as defined
below), the Capital Securities are transferable on the books and records of the
Trust, in person or by a duly authorized attorney, upon surrender of this
Certificate duly endorsed and in proper form for transfer.  The Capital Securities represented hereby
are issued pursuant to, and the designation, rights, privileges, restrictions,
preferences and other terms and provisions of the Capital Securities shall in
all respects be subject to, the provisions of the Amended and Restated
Declaration of Trust of the Trust, dated as of March 25, 2004, among Steven R.
Gardner, John Shindler and Kathrine Duncan, as Administrators, Wilmington Trust
Company, as Delaware Trustee, Wilmington Trust Company, as Institutional
Trustee, PACIFIC PREMIER BANCORP, INC., as Sponsor, and the holders from time
to time of undivided beneficial interests in the assets of the Trust, including
the designation of the terms of the Capital Securities as set forth in Annex I
to the Declaration, as the same may be amended from time to time (the
“Declaration”). Capitalized terms used herein but not defined shall have the
meaning given them in the Declaration. 
The Holder is entitled to the benefits of the Guarantee and the
Indenture to the extent provided therein. 
The Sponsor will provide a copy of the Declaration, the Guarantee, and
the Indenture to the Holder without charge upon written request to the Sponsor
at its principal place of business.

 

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

 

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

 

This Certificate
and the Capital Securities evidenced hereby are governed by, and shall be
construed in accordance with, the laws of the State of Delaware, without regard
to principles of conflict of laws.

 

A-1-4

 

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

 

	
   

  	
  PPBI TRUST I

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:
  Administrator

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
						

 

CERTIFICATE OF
AUTHENTICATION

 

This Certificate represents Capital Securities
referred to in the within-mentioned Declaration.

 

	
   

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
   

  
	
   

  	
  not in its
  individual capacity but solely as the

  Institutional Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
					

 

A-1-5

 

[FORM OF REVERSE
OF SECURITY]

 

Distributions
payable on each Capital Security will be payable at a floating rate of interest
per annum, which, with respect to any Distribution Period (as defined herein),
will be equal to LIBOR, as determined on the LIBOR Determination Date for such
Distribution Period (or, in the case of the first Distribution Period, will be
1.11%), plus 2.75% (the “Coupon Rate”); provided, however, that
the Coupon Rate for any Distribution Period may not exceed the Interest Rate
(as defined in the Indenture) for the related Interest Period (as defined in
the Indenture).  Distributions in
arrears for more than one Distribution Period will bear interest thereon,
compounded quarterly, at the applicable Coupon Rate for each Distribution
Period thereafter (to the extent permitted by applicable law).  The term “Distributions”, as used herein,
includes cash Distributions, any such compounded Distributions and any
Additional Amounts payable on the Debentures, unless otherwise stated.  A Distribution is payable only to the extent
that payments are made in respect of the Debentures held by the Institutional
Trustee and to the extent the Institutional Trustee has funds legally available
in the Property Account therefor.  The
amount of Distributions payable for any Distribution Period will be computed on
the basis of a 360-day year and the actual number of days elapsed in such
Distribution Period.

 

Except as
otherwise described below, Distributions on the Capital Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on January 7, April 7, July 7 and October 7 of each year,
commencing on July 7, 2004 (each, a “Distribution Payment Date”), and on any
earlier date of redemption, subject, in each case, to the Business Day
convention specified in the Declaration. 
The Debenture Issuer has the right under the Indenture to defer payments
of interest on the Debentures by extending the interest payment period for up
to 20 consecutive quarterly periods (each such extended interest payment
period, together with all previous and future consecutive extensions thereof,
is referred to herein as an “Extension Period”) at any time and from time to
time on the Debentures, subject to the conditions described below and in the
Declaration and the Indenture.  No
Extension Period may end on a date other than a Distribution 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
Debentures, 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 Coupon 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.  At the end of any
Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued
and unpaid on the Debentures; provided, however, that prior to
the termination of any Extension Period, the Debenture Issuer 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 Debenture Issuer may
commence a new Extension Period, subject to the requirements set forth herein
and in the Declaration and the Indenture. 
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, but Deferred Interest shall accrue upon each installment of
interest that would otherwise have been due and payable during such Extension
Period until such installment is paid.

 

A-1-6

 

As a consequence
of any Extension Period, Distributions will be deferred.  If Distributions are deferred, the
Distributions due shall be paid on the date that the related Extension Period
terminates to Holders of the Capital Securities as they appear on the books and
records of the Trust on the regular record date immediately preceding the
Distribution Payment Date on which such Extension Period terminates to the
extent that the Trust has funds legally available for the payment of such
Distributions in the Property Account of the Trust.

 

The Capital
Securities shall be redeemable, and shall be entitled to the Liquidation
Distribution, as provided in the Declaration.

 

A-1-7

 

ASSIGNMENT

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

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

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

(Insert address and zip code of assignee),

 

and irrevocably appoints
                                                                                                                                     
as agent to transfer the Capital Securities evidenced by this Capital Security
Certificate on the books of the Trust. 
The agent may substitute another to act for it, him or her.

 

	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
						

 

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

 

	
   

  	
  Signature Guarantee:(1)

  	
   

  	
   

  

 

 

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

 

A-1-8

 

EXHIBIT A-2

 

FORM OF COMMON SECURITY CERTIFICATE

 

THIS COMMON
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS AND MAY
NOT BE  OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION.

 

EXCEPT AS SET
FORTH IN SECTION 8.1(b) OF THE DECLARATION (AS DEFINED BELOW), THIS SECURITY
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED.

 

A-2-1

 

	
  Certificate
  Number

  	
   

  	
  [             ]

  	
   

  	
  Number of Common
  Securities 310

  

 

Certificate Evidencing
Common Securities

 

of

 

PPBI TRUST I

 

PPBI Trust I, a
statutory trust created under the laws of the State of Delaware (the “Trust”),
hereby certifies that PACIFIC PREMIER BANCORP, INC. is the registered owner
(the “Holder”) of 310 common securities of the Trust representing undivided
beneficial interests in the assets of the Trust (liquidation amount $1,000 per
Common Security)(the “Common Securities”). 
The Common Securities represented hereby are issued pursuant to, and the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities shall in all respects be subject to, the
provisions of the Amended and Restated Declaration of Trust of the Trust, dated
as of March 25, 2004, among Steven R. Gardner, John Shindler and Kathrine
Duncan, as Administrators, Wilmington Trust Company, as Delaware Trustee, Wilmington
Trust Company, as Institutional Trustee, the Holder, as Sponsor, and the
holders from time to time of undivided beneficial interests in the assets of
the Trust, including the designation of the terms of the Common Securities as
set forth in Annex I to the Declaration, as the same may be amended from time
to time (the “Declaration”). 
Capitalized terms used herein but not defined shall have the meaning
given them in the Declaration.  The
Sponsor will provide a copy of the Declaration and the Indenture to the Holder
without charge upon written request to the Sponsor at its principal place of
business.

 

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

 

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

 

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

 

This Certificate
and the Common Securities evidenced hereby are governed by, and shall be
construed in accordance with, the laws of the State of Delaware, without regard
to principles of conflict of laws.

 

A-2-2

 

IN WITNESS
WHEREOF, the Trust has executed this Certificate this
       day of
         , 2004.

 

	
   

  	
  PPBI TRUST I

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:
  Administrator

  

 

A-2-3

 

[FORM OF REVERSE OF SECURITY]

 

Distributions
payable on each Common Security will be identical in amount to the
Distributions payable on each Capital Security, which is at a floating rate of
interest per annum, which, with respect to any Distribution Period (as defined
herein), will be equal to LIBOR, as determined on the LIBOR Determination Date
for such Distribution Period (or, in the case of the first Distribution Period,
will be 1.11%), plus 2.75% (the “Coupon Rate”); provided, however,
that the Coupon Rate for any Distribution Period may not exceed the Interest
Rate (as defined in the Indenture) for the related Interest Period (as defined
in the Indenture).  Distributions in
arrears for more than one Distribution Period will bear interest thereon,
compounded quarterly, at the applicable Coupon Rate for each Distribution
Period thereafter (to the extent permitted by applicable law).  The term “Distributions”, as used herein,
includes cash Distributions, any such compounded Distributions and any
Additional Amounts payable on the Debentures, unless otherwise stated.  A Distribution is payable only to the extent
that payments are made in respect of the Debentures held by the Institutional
Trustee and to the extent the Institutional Trustee has funds legally available
in the Property Account therefor.  The
amount of Distributions payable for any Distribution Period will be computed on
the basis of a 360-day year and the actual number of days elapsed in such
Distribution Period.

 

Except as
otherwise described below, Distributions on the Common Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on January 7, April 7, July 7 and October 7 of each year,
commencing on July 7, 2004 (each, a “Distribution Payment Date”), and on any
earlier date of redemption, subject, in each case, to the Business Day
convention specified in the Declaration. 
The Debenture Issuer has the right under the Indenture to defer payments
of interest on the Debentures by extending the interest payment period for up
to 20 consecutive quarterly periods (each such extended interest payment
period, together with all previous and future consecutive extensions thereof,
is referred to herein as an “Extension Period”) at any time and from time to
time on the Debentures, subject to the conditions described below and in the Declaration
and the Indenture.  No Extension Period
may end on a date other than a Distribution 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 Debentures, 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
Coupon 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.  At the end of any Extension Period, the
Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the
Debentures; provided, however, that prior to the termination of
any Extension Period, the Debenture Issuer 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 Debenture Issuer may commence a new Extension Period,
subject to the requirements set forth herein and in the Declaration and the
Indenture.  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, but
Deferred Interest shall accrue upon each installment of interest that would
otherwise have been due and payable during such Extension Period until such
installment is paid.

 

A-2-4

 

As a consequence
of any Extension Period, Distributions will be deferred.  If Distributions are deferred, the
Distributions due shall be paid on the date that the related Extension Period
terminates to Holders of the Securities as they appear on the books and records
of the Trust on the regular record date immediately preceding the Distribution
Payment Date on which such Extension Period terminates to the extent that the
Trust has funds legally available for the payment of such Distributions in the
Property Account of the Trust.

 

The Common
Securities shall be redeemable, and shall be entitled to the Liquidation
Distribution, as provided in the Declaration.

 

A-2-5

 

ASSIGNMENT

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

(Insert address
and zip code of assignee),

 

and irrevocably
appoints
                 
as agent to transfer the Common Securities evidenced by this Common Security
Certificate on the books of the Trust. 
The agent may substitute another to act for him or her.

 

	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
						

 

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

 

	
   

  	
  Signature Guarantee:(1)

  	
   

  	
   

  

 

 

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

 

A-2-6

 

EXHIBIT
B

 

FORM OF TRANSFEREE CERTIFICATE

TO BE EXECUTED BY ACCREDITED INVESTORS

 

                        ,
[     ]

 

PACIFIC PREMIER BANCORP, INC.

PPBI Trust I

1600 Sunflower Ave., 2nd Floor

Costa Mesa, California 92626

 

Re:                   Purchase of
$[SPECIFY] liquidation amount of MMCapSSM

(the “Capital Securities”) of PPBI Trust I (the “Trust”)

 

Ladies and Gentlemen:

 

In connection with
our purchase of the Capital Securities, we confirm that:

 

1.             We understand that the Capital
Securities of the Trust have not been registered under the Securities Act of
1933, as amended (the “Securities Act”), and may not be offered or sold except
as permitted in the following sentence. We agree on our own behalf and on
behalf of any investor account for which we are purchasing the Capital
Securities that, if we decide to offer, sell or otherwise transfer any such Capital
Securities 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 of the Capital Securities
and (Z) the last date on which the Trust or any Affiliate (as defined in Rule
405 under the Securities Act) of the Trust was the holder of any such Capital
Securities (or any predecessor thereto) and (ii) such later date, if any, as
may be required by any subsequent change in applicable law (the “Resale
Restriction Termination Date”), then such offer, sale or other transfer will be
made only (a) to the Company or the Trust, (b) pursuant to Rule 144A under the
Securities Act, to a person we reasonably believe is a qualified institutional
buyer under Rule 144A (a “QIB”), that purchases for its own account or for the
account of a QIB and to whom notice is given that the transfer is being made in
reliance on Rule 144A, (c) pursuant to an exemption from registration, 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 any such Capital
Securities for its own account or for the account of such an accredited
investor for investment purposes and not with a view to, or for offer or sale
in connection with, any distribution thereof in violation of the Securities
Act, (d) pursuant to offers and sales to a non-U.S. Person 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, and in each of the foregoing cases in accordance with any
applicable state securities laws and any requirements of law that govern the disposition
of our property.  If any resale or other
transfer of the Capital Securities is proposed to be made pursuant to clause
(c) above, the transferor shall deliver a letter from the transferee
substantially in the form of this letter to the Institutional Trustee as
Transfer Agent, which shall provide as applicable, among other things, that the
transferee is an accredited investor within the meaning of subparagraph (a)(1),
(2), (3), (7) or (8) of Rule 501 under the Securities Act that is acquiring

 

B-1

 

such Capital Securities for investment purposes and not for any
distribution in violation of the Securities Act. We acknowledge on our behalf
and on behalf of any investor account for which we are purchasing Capital
Securities that the Company and the Trust reserve the right prior to any offer,
sale or other transfer pursuant to clause (c) or (e) to require the delivery of
any opinion of counsel, certifications and/or other information satisfactory to
PACIFIC PREMIER BANCORP, INC.  (the
“Company”) and the Trust.  We understand
that the certificates for any Capital Securities that we receive prior to the
Resale Restriction Termination Date will bear a legend substantially to the
effect of the foregoing.

 

2.             We are an accredited investor
within the meaning of subparagraph (a) (1), (2), (3), (7) or (8) of Rule 501
under the Securities Act purchasing for our own account or for the account of
such an accredited investor, and we are acquiring the Capital Securities for
investment purposes and not with view to, or for offer or sale in connection
with, any distribution in violation of the Securities Act, and we have such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of our investment in the Capital Securities,
and we and any account for which we are acting are each able to bear the
economic risks of our or its investment.

 

3.             We are acquiring the Capital
Securities purchased by us for our own account (or for one or more accounts as
to each of which we exercise sole investment discretion and have authority to
make, and do make, the statements contained in this letter) and not with a view
to any distribution of the Capital Securities in violation of the Securities
Act, subject, nevertheless, to the understanding that the disposition of our
property will at all times be and remain within our control.

 

4.             In the event that we purchase any
Capital Securities, we will acquire such Capital Securities having an aggregate
liquidation amount of not less than $100,000 for our own account and for each
separate account for which we are acting.

 

5.             We acknowledge that we either (A)
are not a fiduciary of a pension, profit-sharing or other employee benefit plan
or arrangement subject to the
Employee Retirement Income Security Act of 1974, as amended, or to Section 4975 of the Internal Revenue Code
of 1986, as amended (a “Plan”), or an entity whose assets include “plan
assets” by reason of any Plan’s investment in the entity and are not purchasing
the Capital Securities on behalf of or with “plan assets” by reason of any
Plan’s investment in the entity and are not purchasing the Capital Securities
on behalf of or with “plan assets” of any Plan or (B) are eligible for the exemptive
relief available under one or more of the following prohibited transaction
class exemptions (“PTCEs”) issued by the U.S. Department of Labor:  PTCE 96-23, 95-60, 91-38, 90-1 or 84-14.

 

6.             We acknowledge that each Plan, by
its purchase of the Capital Securities, will be deemed to have directed the
Trust to invest in the junior subordinated debt securities of the Company, and
to have consented to the appointment of the institutional trustee of the Trust.

 

7.             We acknowledge that the Company,
the Trust and others will rely upon the truth and accuracy of the foregoing
acknowledgments, representations, warranties and agreements and agree that if
any of our acknowledgments, representations, warranties and agreements are no
longer accurate, we shall promptly notify the applicable Placement Agent. If

 

B-2

 

we are acquiring any Capital Securities as a fiduciary or agent for one
or more investor accounts, we represent that we have sole discretion with
respect to each such investor account and that we have full power to make the
foregoing acknowledgments, representations and agreements on behalf of each
such investor account.

 

You are entitled
to rely upon this letter and are irrevocably authorized to produce this letter
or a copy thereof to any interested party in any administrative or legal
proceeding or other inquiry with respect to matters covered hereby.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name of Purchaser)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
					

 

Upon transfer, the
Capital Securities should be registered in the name of the new beneficial owner
as follows.

 

	
  Name:

  	
   

  	
   

  
	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  
	
  Taxpayer ID Number:

  	
   

  	
   

  
							

 

B-3

 

EXHIBIT
C

 

FORM OF TRANSFEROR
CERTIFICATE

TO BE EXECUTED FOR QIBs

 

                    ,
[     ]

 

PACIFIC PREMIER BANCORP, INC.

PPBI Trust I

1600 Sunflower Ave., 2nd Floor, Costa Mesa, California 92626

 

Re:                   Purchase of
$[SPECIFY] liquidation amount of MMCapSSM

(the “Capital Securities”) of PPBI Trust I (the “Trust”)

 

Reference is
hereby made to the Amended and Restated Declaration of Trust of PPBI Trust I,
dated as of March 25, 2004 (the “Declaration”), among Steven R. Gardner, John
Shindler and Kathrine Duncan, as Administrators, Wilmington Trust Company, as
Delaware Trustee, Wilmington Trust Company, as Institutional Trustee, PACIFIC
PREMIER BANCORP, INC., as Sponsor, and the holders from time to time of
undivided beneficial interests in the assets of the Trust.  Capitalized terms used but not defined
herein shall have the meanings given them in the Declaration.

 

This letter
relates to
$[                    ]
aggregate liquidation amount of Capital Securities which are held in the name
of [name of transferor] (the “Transferor”).

 

In accordance with
Section 8.2(b) of the Declaration, the Transferor does hereby certify that such
Capital Securities are being transferred in accordance with (i) the transfer
restrictions set forth in the Capital Securities and (ii) Rule 144A under the
Securities Act (“Rule 144A”), to a transferee that the Transferor reasonably believes
is purchasing the Capital Securities for its own account or an account with
respect to which the transferee exercises sole investment discretion and the
transferee and any such account is a “qualified institutional buyer” within the
meaning of Rule 144A, in a transaction meeting the requirements of Rule 144A
and in accordance with applicable securities laws of any state of the United
States or any other jurisdiction.

 

You are entitled
to rely upon this letter and are irrevocably authorized to produce this letter
or a copy thereof to any interested party in any administrative or legal
proceeding or other inquiry with respect to matters covered hereby.

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name of Transferor)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
   

  
							

 

C-1

 

EXHIBIT
D

 

FORM OF TRANSFEREE
CERTIFICATE

TO BE EXECUTED BY NON-U.S. PERSONS

 

                      ,
[     ]

 

PACIFIC PREMIER BANCORP, INC.

PPBI Trust I

1600 Sunflower Ave., 2nd Floor, Costa Mesa, California 92626

 

Re:                   Purchase of
$[SPECIFY] liquidation amount of MMCapSSM

(the “Capital Securities”) of PPBI Trust I (the “Trust”)

 

Reference is
hereby made to the Amended and Restated Declaration of Trust of PPBI Trust I,
dated as of March 25, 2004 (the “Declaration”), among Steven R. Gardner, John
Shindler and Kathrine Duncan, as Administrators, Wilmington Trust Company, as
Delaware Trustee, Wilmington Trust Company, as Institutional Trustee, PACIFIC
PREMIER BANCORP, INC., as Sponsor, and the holders from time to time of undivided
beneficial interests in the assets of the Trust.  Capitalized terms used but not defined herein shall have the
meanings given them in the Declaration.

 

This letter
relates to
$[                         ]
aggregate liquidation amount of Capital Securities which are held in the name
of [name of transferor].

 

In accordance with
Section 8.2(b) of the Declaration, we do hereby certify that (i) we are not a
“U.S. person” (as such term is defined in Rule 902 under the Securities Act),
(ii) we are not acquiring the Capital Securities for the account or benefit of
any U.S. person, and (iii) the offer and sale of Capital Securities to us
constitutes an “offshore transaction” under Regulation S under the Securities
Act.

 

You are entitled
to rely upon this letter and are irrevocably authorized to produce this letter
or a copy thereof to any interested party in any administrative or legal
proceeding or other inquiry with respect to matters covered hereby.

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name of Transferee)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
   

  
							

 

D-1Exhibit 10.3

 

GUARANTEE AGREEMENT

 

PACIFIC PREMIER BANCORP, INC.

 

Dated as of March 25, 2004

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND
  INTERPRETATION

  	
   

  
	
   

  	
   

  
	
  SECTION 1.1

  	
  Definitions
  and Interpretation.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  
	
  POWERS,
  DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION
  2.1

  	
  Powers
  and Duties of the Guarantee Trustee.

  	
   

  
	
  SECTION
  2.2

  	
  Certain
  Rights of the Guarantee Trustee.

  	
   

  
	
  SECTION
  2.3

  	
  Not
  Responsible for Recitals or Issuance of Guarantee.

  	
   

  
	
  SECTION 2.4

  	
  Events of
  Default; Waiver.

  	
   

  
	
  SECTION 2.5

  	
  Events of
  Default; Notice.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  GUARANTEE TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  3.1

  	
  The
  Guarantee Trustee; Eligibility.

  	
   

  
	
  SECTION
  3.2

  	
  Appointment,
  Removal and Resignation of the Guarantee Trustee.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.1

  	
  Guarantee.

  	
   

  
	
  SECTION 4.2

  	
  Waiver of
  Notice and Demand.

  	
   

  
	
  SECTION 4.3

  	
  Obligations Not
  Affected.

  	
   

  
	
  SECTION 4.4

  	
  Rights of Holders.

  	
   

  
	
  SECTION 4.5

  	
  Guarantee of Payment.

  	
   

  
	
  SECTION 4.6

  	
  Subrogation.

  	
   

  
	
  SECTION 4.7

  	
  Independent
  Obligations.

  	
   

  
	
  SECTION 4.8

  	
  Enforcement.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  	
   

  
	
  LIMITATION OF
  TRANSACTIONS; SUBORDINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.1

  	
  Limitation of
  Transactions.

  	
   

  
	
  SECTION 5.2

  	
  Ranking.

  	
   

  

 

i

 

	
  ARTICLE VI

  	
   

  
	
   

  	
   

  	
   

  
	
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.1

  	
  Termination.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  	
   

  
	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.1

  	
  Exculpation.

  	
   

  
	
  SECTION 7.2

  	
  Indemnification.

  	
   

  
	
  SECTION
  7.3

  	
  Compensation;
  Reimbursement of Expenses.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.1

  	
  Successors and
  Assigns.

  	
   

  
	
  SECTION 8.2

  	
  Amendments.

  	
   

  
	
  SECTION 8.3

  	
  Notices.

  	
   

  
	
  SECTION 8.4

  	
  Benefit.

  	
   

  
	
  SECTION 8.5

  	
  Governing Law.

  	
   

  
	
  SECTION 8.6

  	
  Counterparts.

  	
   

  

 

ii

 

GUARANTEE AGREEMENT

 

This GUARANTEE AGREEMENT (the “Guarantee”), dated as
of March 25, 2004, is executed and delivered by PACIFIC PREMIER BANCORP, INC.,
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 PPBI
Trust I, a Delaware statutory trust (the “Issuer”).

 

WHEREAS, pursuant to an Amended and Restated
Declaration of Trust (the “Declaration”), dated as of March 25, 2004, among the
trustees named therein of the Issuer, PACIFIC PREMIER BANCORP, INC., 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.

 

“Affiliate” has the same meaning as given to that term
in Rule 405 of the Securities Act of 1933, as amended or any successor rule
thereunder.

 

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

 

“Capital Securities” has the meaning set forth in the
recitals to this Guarantee.

 

“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 PACIFIC PREMIER BANCORP, INC.
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 “Floating
Rate Junior Subordinated Debt Securities due 2034” 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”).

 

2

 

“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.

 

“Guarantor” has the meaning set forth in the recitals
to this Guarantee.

 

“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 March 25,
2004, 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.

 

“Issuer” has the meaning set forth in the opening
paragraph to this Guarantee.

 

“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;

 

3

 

(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.

 

“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.

 

4

 

(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.

 

(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

 

5

 

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:

 

(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

 

6

 

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.

 

(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.

 

7

 

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, 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

 

8

 

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 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.

 

9

 

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.

 

(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

 

10

 

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

 

(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.

 

11

 

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.

 

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 a Default or 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

 

12

 

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
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.

 

13

 

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 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

 

14

 

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 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.

 

15

 

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.

 

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 Trust Administration, Telecopy: 302-651-8882, 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): PACIFIC PREMIER BANCORP, INC., 1600
Sunflower Ave., 2nd Floor, Costa Mesa, California 92626, Attention: John
Shindler, Telecopy: (714) 433-3080, Telephone: (714) 431-4000; 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

 

16

 

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.

 

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.

 

	
   

  	
  PACIFIC PREMIER
  BANCORP, INC.,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
  as Guarantee
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

18

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