Document:

exv10w3

 

Exhibit 10.3

Export-Import Bank of the United States

Working Capital Guarantee Program

Borrower Agreement

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	1.01 Definition of Terms
	 	 	1	 
	1.02 Rules of Construction
	 	 	14	 
	1.03 Incorporation of Recitals
	 	 	15	 
	ARTICLE II OBLIGATIONS OF BORROWER
	 	 	15	 
	2.01 Use of Credit Accommodations
	 	 	15	 
	2.02 Security Interests
	 	 	15	 
	2.03 Loan Documents and Loan Authorization Agreement
	 	 	16	 
	2.04 Export-Related Borrowing Base Certificates and Export Orders
	 	 	16	 
	2.05 Schedules, Reports and Other Statements
	 	 	16	 
	2.06
Exclusions from the Export-Related Borrowing Base
	 	 	16	 
	2.07 Borrowings and Reborrowings
	 	 	17	 
	2.08 Repayment Terms
	 	 	17	 
	2.09 Financial Statements
	 	 	17	 
	2.10 Additional Security or Payment
	 	 	17	 
	2.11 Continued Security Interest
	 	 	18	 
	2.12 Inspection of Collateral and Facilities
	 	 	18	 
	2.13 General Intangibles
	 	 	19	 
	2.14 Economic Impact Approval
	 	 	19	 
	2.15 Indirect Exports
	 	 	19	 
	2.16 Overseas Inventory and Accounts Receivable
	 	 	20	 
	2.17 Country Limitation Schedule
	 	 	21	 
	2.18 Notice of Certain Event
	 	 	21	 
	2.19 Insurance
	 	 	22	 
	2.20 Taxes
	 	 	22	 
	2.21 Compliance with Laws
	 	 	22	 
	2.22 Negative Covenants
	 	 	22	 
	2.23 Cross Default
	 	 	22	 
	2.24 Munitions List
	 	 	22	 
	2.25 Suspension and Debarment, etc
	 	 	22	 
	ARTICLE III RIGHTS AND REMEDIES
	 	 	23	 

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	3.01 Indemnification
	 	 	23	 
	3.02 Liens
	 	 	23	 
	ARTICLE IV MISCELLANEOUS
	 	 	24	 
	4.01 Governing Law
	 	 	24	 
	4.02 Notification
	 	 	24	 
	4.03 Partial Invalidity
	 	 	24	 
	4.04 Waiver of Jury Trial
	 	 	24	 
	4.05 Consequential Damages
	 	 	24	 

ii

 

Export-Import Bank of the United States

Working Capital Guarantee Program

Borrower Agreement

     THIS BORROWER AGREEMENT (this “Agreement”) is made and entered into by the entity identified
as Borrower on the signature page hereof (“Borrower”) in favor of the Export-Import Bank of the
United States (“Ex-Im Bank”) and the institution identified as Lender on the signature page hereof
(“Lender”).

RECITALS

     Borrower has requested that Lender establish a Loan Facility in favor of Borrower for the
purposes of providing Borrower with working capital to finance the manufacture, production or
purchase and subsequent export sale of Items.

     Lender and Borrower expect that Ex-Im Bank will provide a guarantee to Lender regarding this
Loan Facility subject to the terms and conditions of the Master Guarantee Agreement, a Loan
Authorization Agreement, and to the extent applicable, the Delegated Authority Letter Agreement or
Fast Track Lender Agreement.

     Lender and Ex-Im Bank have requested that Borrower execute this Agreement as a condition
precedent to Lender establishing the Loan Facility and Ex-Im Bank providing the guarantee.

     NOW, THEREFORE, Borrower hereby agrees as follows:

ARTICLE I

DEFINITIONS

     1.01 Definition of Terms. As used in this Agreement, including the Recitals to this
Agreement and the Loan Authorization Agreement, the following terms shall have the following
meanings:

     “Accounts Receivable” shall mean all of Borrower’s now owned or hereafter acquired
(a) “accounts” (as such term is defined in the UCC), other receivables, book debts and other forms
of obligations, whether arising out of goods sold or services rendered or from any other
transaction; (b) rights in, to and under all purchase orders or receipts for goods or services; (c)
rights to any goods represented or purported to be represented by any of the foregoing (including
unpaid sellers’ rights of rescission, replevin, reclamation and stoppage in transit and rights to
returned, reclaimed or repossessed goods); (d) moneys due or to become due to such Borrower under
all purchase orders and contracts (which includes Export Orders) for the sale of goods or the
performance of services or both by Borrower (whether or not yet earned by performance on the part
of Borrower), including the proceeds of the foregoing; (e) any notes, drafts, letters of credit,
insurance proceeds or other instruments, documents and writings evidencing or supporting the
foregoing; and (f) all collateral security and guarantees of any kind given by any other Person
with respect to any of the foregoing.

 

 

     “Accounts Receivable Aging Report” shall mean a report detailing the Export-Related Accounts
Receivable and Export-Related Overseas Accounts Receivable for a Loan Facility, and the applicable
terms for the relevant time period; in the case of Indirect Exports, such report shall indicate the
portion of such Accounts Receivables corresponding to Indirect Exports.

     “Advance Rate” shall mean, with respect to a Loan Facility, the rate specified in Section 5.C.
of the Loan Authorization Agreement for each category of Primary Collateral except for
Export-Related General Intangibles and Other Collateral. Unless otherwise set forth in writing by
Ex-Im Bank, in no event shall the Advance Rate exceed (i) ninety percent (90%) for Eligible
Export-Related Accounts Receivable, (ii) seventy five percent (75%) for Eligible Export-Related
Inventory, (iii) seventy percent (70%) for Eligible Export-Related Overseas Accounts Receivable or
(iv) sixty percent (60%) for Eligible Export-Related Overseas Inventory and (v) twenty five percent
(25%) for Retainage Accounts Receivable.

     “Affiliated Foreign Person” shall have the meaning set forth in Section 2.15.

     “Business Day” shall mean any day on which the Federal Reserve Bank of New York is open for
business.

     “Buyer” shall mean a Person that has entered into one or more Export Orders with Borrower or
who is an obligor on Export-Related Accounts Receivable or Export-Related Overseas Accounts
Receivable.

     “Capital Good” shall mean a capital good (e.g., manufacturing equipment, licensing agreements)
that will establish or expand foreign production capacity of an exportable good.

     “Collateral” shall mean all real and personal property and interest in real and personal
property in or upon which Lender has been, or shall be, granted a Lien as security for the payment
of all the Loan Facility Obligations and all products and proceeds (cash and non-cash) thereof.

     “Commercial Letters of Credit” shall mean those letters of credit subject to the UCP payable
in Dollars and issued or caused to be issued by Lender on behalf of Borrower under a Loan Facility
for the benefit of a supplier(s) of Borrower in connection with Borrower’s purchase of goods or
services from the supplier in support of the export of the Items.

     “Country Limitation Schedule” shall mean the schedule published from time to time by Ex-Im
Bank setting forth on a country by country basis whether and under what conditions Ex-Im Bank will
provide coverage for the financing of export transactions to countries listed therein.

     “Credit Accommodation Amount” shall mean, the sum of (a) the aggregate outstanding amount of
Disbursements and (b) the aggregate outstanding Letter of Credit Obligations, which sum may not
exceed the Maximum Amount.

     “Credit Accommodations” shall mean, collectively, Disbursements and Letter of Credit
Obligations.

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     “Debarment Regulations” shall mean, collectively, (a) the Governmentwide Debarment and
Suspension (Nonprocurement) regulations (Common Rule), 53 Fed. Reg. 19204 (May 26, 1988), (b)
Subpart 9.4 (Debarment, Suspension, and Ineligibility) of the Federal Acquisition Regulations, 48
C.F.R. 9.400-9.409 and (c) the revised Governmentwide Debarment and Suspension (Nonprocurement)
regulations (Common Rule), 60 Fed. Reg. 33037 (June 26, 1995).

     “Delegated Authority Letter Agreement” shall mean the Delegated Authority Letter Agreement, if
any, between Ex-Im Bank and Lender.

     “Disbursement” shall mean, collectively, (a) an advance of a working capital loan from Lender
to Borrower under the Loan Facility, and (b) an advance to fund a drawing under a Letter of Credit
issued or caused to be issued by Lender for the account of Borrower under the Loan Facility.

     “Dollars” or “$” shall mean the lawful currency of the United States.

     “Economic Impact Approval” shall mean a written approval issued by Ex-Im Bank stating the
conditions under which a Capital Good may be included as an Item in a Loan Facility consistent with
Ex-Im Bank’s economic impact procedures (or other mechanism for making this determination that
Ex-Im Bank notifies Lender of in writing).

     “Economic Impact Certification” shall have the meaning set forth in Section 2.14(b).

     “Effective Date” shall mean the date on which (a) all of the Loan Documents have been executed
by Lender, Borrower and, if applicable, Ex-Im Bank and (b) all of the conditions to the making of
the initial Credit Accommodations under the Loan Documents or any amendments thereto have been
satisfied.

     “Eligible Export-Related Accounts Receivable” shall mean Export-Related Accounts Receivable
which are acceptable to Lender and which are deemed to be eligible pursuant to the Loan Documents,
but in no event shall Eligible Export-Related Accounts Receivable include any Account Receivable:

     (a) that does not arise from the sale of Items in the ordinary course of Borrower’s business;

     (b) that is not subject to a valid, perfected first priority Lien in favor of Lender;

     (c) as to which any covenant, representation or warranty contained in the Loan Documents with
respect to such Account Receivable has been breached;

     (d) that is not owned by Borrower or is subject to any right, claim or interest of another
Person other than the Lien in favor of Lender;

     (e) with respect to which an invoice has not been sent;

     (f) that arises from the sale of defense articles or defense services;

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     (g) that arises from the sale of Items to be used in the construction, alteration, operation
or maintenance of nuclear power, enrichment, reprocessing, research or heavy water production
facilities unless with Ex-Im Bank’s prior written consent;

     (h) that is due and payable from a Buyer located in a country with which Ex-Im Bank is
prohibited from doing business as designated in the Country Limitation Schedule;

     (i) that does not comply with the requirements of the Country Limitation Schedule;

     (j) that is due and payable more than one hundred eighty (180) days from the date of the
invoice;

     (k) that is not paid within sixty (60) calendar days from its original due date, unless it is
insured through Ex-Im Bank export credit insurance for comprehensive commercial and political risk,
or through Ex-Im Bank approved private insurers for comparable coverage, in which case it is not
paid within ninety (90) calendar days from its due date;

     (l) of a Buyer for whom fifty percent (50%) or more of the Accounts Receivable of such Buyer
do not satisfy the requirements of subclauses (j) and (k) above;

     (m) that arises from a sale of goods to or performance of services for an employee of
Borrower, a stockholder of Borrower, a subsidiary of Borrower, a Person with a controlling interest
in Borrower or a Person which shares common controlling ownership with Borrower;

     (n) that is backed by a letter of credit unless the Items covered by the subject letter of
credit have been shipped;

     (o) that Lender or Ex-Im Bank, in its reasonable judgment, deems uncollectible for any reason;

     (p) that is due and payable in a currency other than Dollars, except as may be approved in
writing by Ex-Im Bank;

     (q) that is due and payable from a military Buyer, except as may be approved in writing by
Ex-Im Bank;

     (r) that does not comply with the terms of sale set forth in Section 7 of the Loan
Authorization Agreement;

     (s) that is due and payable from a Buyer who (i) applies for, suffers, or consents to the
appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of
itself or of all or a substantial part of its property or calls a meeting of its creditors, (ii)
admits in writing its inability, or is generally unable, to pay its debts as they become due or
ceases operations of its present business, (iii) makes a general assignment for the benefit of
creditors, (iv) commences a voluntary case under any state or federal bankruptcy laws (as now or
hereafter in effect), (v) is adjudicated as bankrupt or insolvent, (vi) files a petition seeking to
take advantage of any other law providing for the relief of debtors, (vii) acquiesces to, or fails
to have

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dismissed, any petition which is filed against it in any involuntary case under such
bankruptcy laws, or (viii) takes any action for the purpose of effecting any of the foregoing;

     (t) that arises from a bill-and-hold, guaranteed sale, sale-and-return, sale on approval,
consignment or any other repurchase or return basis or is evidenced by chattel paper;

     (u) for which the Items giving rise to such Accounts Receivable have not been shipped to the
Buyer or when the Items are services, such services have not been performed or when the Export
Order specifies a timing for invoicing the Items other than shipment or performance and the Items
have not been invoiced in accordance with such terms of the Export Order, or the Accounts
Receivable otherwise do not represent a final sale;

     (v) that is subject to any offset, deduction, defense, dispute, or counterclaim or the Buyer
is also a creditor or supplier of Borrower or the Account Receivable is contingent in any respect
or for any reason;

     (w) for which Borrower has made any agreement with the Buyer for any deduction therefrom,
except for discounts or allowances made in the ordinary course of business for prompt payment, all
of which discounts or allowances are reflected in the calculation of the face value of each
respective invoice related thereto;

     (x) for which any of the Items giving rise to such Account Receivable have been returned,
rejected or repossessed;

     (y) that is included as an eligible receivable under any other credit facility to which
Borrower is a party;

     (z) any of the Items giving rise to such Accounts Receivable are Capital Goods, unless the
transaction is in accordance with Section 2.14;

     (aa) that is due and payable from a Buyer that is, or is located in, the United States;
provided however, that this subsection (aa) shall not preclude an Export-Related Accounts
Receivable arising from the sale of Items to foreign contractors or subcontractors providing
services to a United States Embassy or the United States Military located overseas from being
deemed an Eligible Export-Related Accounts Receivable; or

     (bb) that arises from the sale of Items that do not meet the U.S. Content requirements in
accordance with Section 2.01(b)(ii).

     “Eligible Export-Related Inventory” shall mean Export-Related Inventory which is acceptable to
Lender and which is deemed to be eligible pursuant to the Loan Documents, but in no event shall
Eligible Export-Related Inventory include any Inventory:

     (a) that is not subject to a valid, perfected first priority Lien in favor of Lender;

     (b) that is located at an address that has not been disclosed to Lender in writing;

5

 

     (c) that is placed by Borrower on consignment or held by Borrower on consignment from another
Person;

     (d) that is in the possession of a processor or bailee, or located on premises leased or
subleased to Borrower, or on premises subject to a mortgage in favor of a Person other than Lender,
unless such processor or bailee or mortgagee or the lessor or sublessor of such premises, as the
case may be, has executed and delivered all documentation which Lender shall require to evidence
the subordination or other limitation or extinguishment of such Person’s rights with respect to
such Inventory and Lender’s right to gain access thereto;

     (e) that is produced in violation of the Fair Labor Standards Act or subject to the “hot
goods” provisions contained in 29 U.S.C.§215 or any successor statute or section;

     (f) as to which any covenant, representation or warranty with respect to such Inventory
contained in the Loan Documents has been breached;

     (g) that is not located in the United States unless expressly permitted by Lender, on terms
acceptable to Lender;

     (h) that is an Item or is to be incorporated into Items that do not meet U.S. Content
requirements in accordance with Section 2.01(b)(ii);

     (i) that is demonstration Inventory;

     (j) that consists of proprietary software (i.e. software designed solely for Borrower’s
internal use and not intended for resale);

     (k) that is damaged, obsolete, returned, defective, recalled or unfit for further processing;

     (l) that has been previously exported from the United States;

     (m) that constitutes, or will be incorporated into Items that constitute, defense articles or
defense services;

     (n) that is an Item or will be incorporated into Items that will be used in the construction,
alteration, operation or maintenance of nuclear power, enrichment, reprocessing, research or heavy
water production facilities unless with Ex-Im Bank’s prior written consent;

     (o) that is an Item or is to be incorporated into Items destined for shipment to a country as
to which Ex-Im Bank is prohibited from doing business as designated in the Country Limitation
Schedule;

     (p) that is an Item or is to be incorporated into Items destined for shipment to a Buyer
located in a country in which Ex-Im Bank coverage is not available for commercial reasons as
designated in the Country Limitation Schedule, unless and only to the extent that such Items are to
be sold to such country on terms of a letter of credit confirmed by a bank acceptable to Ex-Im
Bank;

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     (q) that constitutes, or is to be incorporated into, Items whose sale would result in an
Accounts Receivable which would not be an Eligible Export-Related Accounts Receivable;

     (r) that is included as eligible inventory under any other credit facility to which Borrower
is a party; or

     (s) that is, or is to be incorporated into, an Item that is a Capital Good, unless the
transaction is in accordance with Section 2.14.

     “Eligible Export-Related Overseas Accounts Receivable” shall mean Export-Related Overseas
Accounts Receivable which are acceptable to Lender and which are deemed to be eligible pursuant to
the Loan Documents but in no event shall include the Accounts Receivable (a) through (bb) excluded
from the definition of Eligible Export-Related Accounts Receivable.

     “Eligible Export-Related Overseas Inventory” shall mean Export-Related Overseas Inventory
which is acceptable to Lender and which is deemed to be eligible pursuant to the Loan Documents,
but in no event shall include the Inventory (a) through (r) excluded from the definition of
Eligible Export-Related Inventory.

     “Eligible Person” shall mean a sole proprietorship, partnership, limited liability
partnership, corporation or limited liability company which (a) is domiciled, organized or formed,
as the case may be, in the United States, whether or not such entity is owned by a foreign national
or foreign entity; (b) is in good standing in the state of its formation or otherwise authorized to
conduct business in the United States; (c) is not currently suspended or debarred from doing
business with the United States government or any instrumentality, division, agency or department
thereof; (d) exports or plans to export Items; (e) operates and has operated as a going concern for
at least one (1) year; (f) has a positive tangible net worth determined in accordance with GAAP;
and (g) has revenue generating operations relating to its core business activities for at least one
year. An Affiliated Foreign Person that meets all of the requirements of the foregoing definition
of Eligible Person other than subclause (a) thereof shall be deemed to be an Eligible Person

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974 and the rules and
regulations promulgated thereunder.

     “Export Order” shall mean a documented purchase order or contract evidencing a Buyer’s
agreement to purchase the Items from Borrower for export from the United States, which
documentation shall include written information that is necessary to confirm such purchase order or
contract, including identification of the Items, the name of the Buyer, the country of destination,
contact information for the Buyer and the total amount of the purchase order or contract; in the
case of Indirect Exports, such documentation shall further include a copy of the written purchase
order or contract from a foreign purchaser or other documentation clearly evidencing a foreign
purchaser’s agreement to purchase the Items.

     “Export-Related Accounts Receivable” shall mean those Accounts Receivable arising from the
sale of Items which are due and payable to Borrower in the United States.

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     “Export-Related Accounts Receivable Value” shall mean, at the date of determination thereof,
the aggregate face amount of Eligible Export-Related Accounts Receivable less taxes, discounts,
credits, allowances and Retainages, except to the extent otherwise permitted by Ex-Im Bank in
writing.

     “Export-Related Borrowing Base” shall mean, at the date of determination thereof, the sum of
(a) (if Lender elects to include) the Export-Related Inventory Value or Export-Related Historical
Inventory Value multiplied by the Advance Rate applicable to Eligible Export-Related Inventory set
forth in Section 5.B.(1.) of the Loan Authorization Agreement, plus (b) the Export-Related Accounts
Receivable Value multiplied by the Advance Rate applicable to Eligible Export-Related Accounts
Receivable set forth in Section 5.B.(2.) of the Loan Authorization Agreement, plus (c) if permitted
by Ex-Im Bank in writing, the Retainage Value multiplied by the Advance Rate applicable to
Retainages set forth in Section 5.B.(3.) of the Loan Authorization Agreement, plus (d) the Other
Assets set forth in Section 5.B.(4.) of the Loan Authorization Agreement multiplied by the Advance
Rate agreed to in writing by Ex-Im Bank, plus (e) if permitted by Ex-Im Bank in writing, the
Export-Related Overseas Accounts Receivable Value multiplied by the Advance Rate applicable to
Eligible Export-Related Overseas Accounts Receivable set forth in Section 5.B.(5.) of the Loan
Authorization Agreement, plus (f) if permitted by Ex-Im Bank in writing, the Export-Related
Overseas Inventory Value multiplied by the Advance Rate applicable to Eligible Export-Related
Overseas Inventory set forth in Section 5.B.(6.) of the Loan Authorization Agreement, less (g) the
amounts required to be reserved pursuant to Sections 4.12 and 4.13 of this Agreement for each
outstanding Letter of Credit, less (h) such reserves and in such amounts deemed necessary and
proper by Lender from time to time.

     “Export-Related Borrowing Base Certificate” shall mean a certificate in the form provided or
approved by Lender, executed by Borrower and delivered to Lender pursuant to the Loan Documents
detailing the Export-Related Borrowing Base supporting the Credit Accommodations which reflects, to
the extent included in the Export-Related Borrowing Base, Export-Related Accounts Receivable,
Eligible Export-Related Accounts Receivable, Export-Related Inventory, Eligible Export-Related
Inventory, Export-Related Overseas Accounts Receivable, Eligible Export-Related Accounts
Receivable, Export-Related Overseas Inventory and Eligible Export-Related Overseas Inventory
balances that have been reconciled with Borrower’s general ledger, Accounts Receivable Aging Report
and Inventory schedule.

     “Export-Related General Intangibles” shall mean the Pro Rata Percentage of General Intangibles
determined as of the earlier of: (i) the date such General Intangibles are liquidated and (ii) the
date Borrower fails to pay when due any outstanding amount of principal or accrued interest payable
under the Loan Documents that becomes the basis for a Payment Default on which a Claim is filed.

     “Export-Related Historical Inventory Value” shall mean with respect to a Borrower, the
relevant Export-Related Sales Ratio multiplied by the lowest of (i) the cost of such Borrower’s
Inventory as determined in accordance with GAAP, or (ii) the market value of such Borrower’s
Inventory as determined in accordance with GAAP or (iii) the appraised or orderly liquidation value
of such Borrower’s Inventory, if Lender has loans and financial accommodations to such Borrower for
which it conducts (or contracts for the performance of) such an appraised or orderly liquidation
value.

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     “Export-Related Inventory” shall mean the Inventory of Borrower located in the United States
that has been purchased, manufactured or otherwise acquired by Borrower for sale or resale as
Items, or to be incorporated into Items to be sold or resold pursuant to Export Orders.

     “Export-Related Inventory Value” shall mean, at the date of determination thereof, the lowest
of (i) the cost of Eligible Exported-Related Inventory as determined in accordance with GAAP, or
(ii) the market value of Eligible Export-Related Inventory as determined in accordance with GAAP or
(iii) the lower of the appraised market value or orderly liquidation value of the Eligible
Export-Related Inventory, if Lender has other loans and financial accommodations to a Borrower for
which it conducts (or contracts for the performance of) such an appraised or orderly liquidation
value.

     “Export-Related Overseas Accounts Receivable” shall mean those Accounts Receivable arising
from the sale of Items which are due and payable outside of the United States either to a Borrower
or an Affiliated Foreign Person.

     “Export-Related Overseas Accounts Receivable Value” shall mean, with respect to a Loan
Facility, at the date of determination thereof, the aggregate face amount of Eligible
Export-Related Overseas Accounts Receivable less taxes, discounts, credits, allowances and
Retainages, except to the extent otherwise permitted by Ex-Im Bank in writing.

     “Export-Related Overseas Inventory” shall mean the Inventory of Borrower located outside of
the United States that has been purchased, manufactured or otherwise acquired by such Borrower for
sale or resale as Items, or to be incorporated into Items to be sold or resold pursuant to Export
Orders.

     “Export-Related Overseas Inventory Value” shall mean, at the date of determination thereof,
the lowest of (i) the cost of Eligible Export-Related Overseas Inventory as determined in
accordance with GAAP, (ii) the market value of Eligible Export-Related Overseas Inventory as
determined in accordance with GAAP or (iii) the appraised or orderly liquidation value of the
Eligible Export-Related Overseas Inventory, if Lender has other loans and financial accommodations
to Borrower or an Affiliated Foreign Person for which it conducts (or contracts for the performance
of) such a appraised or orderly liquidation.

     “Export-Related Sales Ratio” shall mean with respect to a Borrower, the percentage of such
Borrower’s total sales revenue derived from the sale of Eligible Export-Related Inventory over a
rolling twelve-month period ending no more than ninety (90) days prior to the date of the relevant
Export-Related Borrowing Base Certificate

     “Extension” shall mean, with respect to a Loan Facility, an amendment to the Loan
Authorization Agreement extending the Final Disbursement Date on the same terms and conditions as
the Loan Facility for an aggregate period not to exceed one hundred and twenty (120) days beyond
the original Final Disbursement Date, either as agreed to in writing by Ex-Im Bank or, in the case
of Delegated Authority, as notified by Lender to Ex-Im Bank pursuant to its authority under the
Delegated Authority Letter Agreement.

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     “Fast Track Lender Agreement” shall mean the Fast Track Lender Agreement, if any, between
Ex-Im Bank and Lender.

     “Final Disbursement Date” shall mean the last date on which Lender may make a Disbursement set
forth in Section 10 of the Loan Authorization Agreement (including as amended by an Extension) or,
if such date is not a Business Day, the next succeeding Business Day; provided,
however, to the extent that Lender has not received cash collateral in the amount of the
Letter of Credit Obligations or an equivalent full indemnity from Borrower or Guarantor, as
applicable, with respect to Letter of Credit Obligations outstanding on the Final Disbursement
Date, the Final Disbursement Date with respect to an advance to fund a drawing under such Letter of
Credit shall be no later than thirty (30) days after any such drawing which may be no later than
the expiry date of the Letter of Credit related thereto.

     “GAAP” shall mean the generally accepted accounting principles issued in the United States.

     “General Intangibles” shall mean all intellectual property and other “general intangibles” (as
such term is defined in the UCC).

     “Guarantor” shall mean any Person which is identified in Section 3 of the Loan Authorization
Agreement who shall guarantee (jointly and severally if more than one) the payment and performance
of all or a portion of the Loan Facility Obligations.

     “Guarantee Agreement” shall mean a valid and enforceable agreement of guarantee executed by
each Guarantor in favor of Lender.

     “Indirect Exports” shall mean finished goods or services that are sold by a Borrower to a
Buyer located in the United States, are intended for export from the United States, and are
identified in Section 4.A.(2.) of the Loan Authorization Agreement.

     “Inventory” shall mean all “inventory” (as such term is defined in the UCC), now or hereafter
owned or acquired by Borrower, wherever located, including all inventory, merchandise, goods and
other personal property which are held by or on behalf of Borrower for sale or lease or are
furnished or are to be furnished under a contract of service or which constitute raw materials,
work in process or materials used or consumed or to be used or consumed in Borrower’s business or
in the processing, production, packaging, promotion, delivery or shipping of the same, including
other supplies.

     “ISP” shall mean the International Standby Practices-ISP98, International Chamber of Commerce
Publication No. 590 and any amendments and revisions thereof.

     “Issuing Bank” shall mean the bank that issues a Letter of Credit, which bank is Lender itself
or a bank that Lender has caused to issue a Letter of Credit by way of a guarantee or reimbursement
obligation.

     “Items” shall mean the finished goods or services which are intended for export from the
United States, either directly or as an Indirect Export, meet the U.S. Content requirements in

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accordance with Section 2.01(b)(ii) of this Agreement and are specified in Section 4.A. of the
Loan Authorization Agreement.

     “Letter of Credit” shall mean a Commercial Letter of Credit or a Standby Letter of Credit.

     “Letter of Credit Obligations” shall mean all undrawn amounts of outstanding obligations
incurred by Lender, whether direct or indirect, contingent or otherwise, due or not due, in
connection with the issuance or guarantee by Lender or Issuing Bank of Letters of Credit.

     “Lien” shall mean any mortgage, security deed or deed of trust, pledge, hypothecation,
assignment, deposit arrangement, lien, charge, claim, security interest, security title, easement
or encumbrance, or preference, priority or other security agreement or preferential arrangement of
any kind or nature whatsoever (including any lease or title retention agreement, any financing
lease having substantially the same economic effect as any of the foregoing, and the filing of, or
agreement to give, any financing statement perfecting a security interest under the UCC or
comparable law of any jurisdiction) by which property is encumbered or otherwise charged.

     “Loan Agreement” shall mean a valid and enforceable agreement between Lender and a Borrower
setting forth, with respect to each Loan Facility, the terms and conditions of such Loan Facility.

     “Loan Authorization Agreement” shall mean, as applicable, the duly executed Loan Authorization
Agreement, Fast Track Loan Authorization Agreement, or the Loan Authorization Notice, setting forth
certain terms and conditions of each Loan Facility, a copy of which is attached hereto as Annex A.

     “Loan Authorization Notice” shall mean the Loan Authorization Notice executed by Lender and
delivered to Ex-Im Bank in accordance with the Delegated Authority Letter Agreement setting forth
the terms and conditions of each Loan Facility.

     “Loan Documents” shall mean the Loan Authorization Agreement, the Loan Agreement, this
Agreement, each promissory note (if applicable), each Guarantee Agreement, and all other
instruments, agreements and documents now or hereafter executed by the applicable Borrower, any
Guarantor, Lender or Ex-Im Bank evidencing, securing, guaranteeing or otherwise relating to the
Loan Facility or any Credit Accommodations made thereunder.

     “Loan Facility” shall mean the Revolving Loan Facility, the Transaction Specific Loan Facility
or the Transaction Specific Revolving Loan Facility established by Lender in favor of Borrower
under the Loan Documents.

     “Loan Facility Obligations” shall mean all loans, advances, debts, expenses, fees,
liabilities, and obligations, including any accrued interest thereon, for the performance of
covenants, tasks or duties or for payment of monetary amounts (whether or not such performance is
then required or contingent, or amounts are liquidated or determinable) owing by Borrower to
Lender, of any kind or nature, present or future, arising in connection with the Loan Facility.

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     “Loan Facility Term” shall mean, with respect to a Loan Facility, the number of months or
portion thereof from the Effective Date to the Final Disbursement Date as set forth in the Loan
Authorization Agreement as amended.

     “Master Guarantee Agreement” shall mean the Master Guarantee Agreement between Ex-Im Bank and
Lender, as amended, modified, supplemented and restated from time to time.

     “Material Adverse Effect” shall mean a material adverse effect on (a) the business, assets,
operations, prospects or financial or other condition of Borrower or any Guarantor, (b) any
Borrower’s ability to pay or perform the Loan Facility Obligations in accordance with the terms
thereof, (c) the Collateral or Lender’s Liens on the Collateral or the priority of such Lien, or
(d) Lender’s rights and remedies under the Loan Documents.

     “Maximum Amount” shall mean the maximum Credit Accommodation Amount that may be outstanding at
any time under each Loan Facility, as specified in Section 5.A. of the Loan Authorization
Agreement.

     “Other Assets” shall mean, with respect to a Loan Facility, such other assets of a Borrower to
be included in Primary Collateral, which may include cash and marketable securities, or such other
assets as Ex-Im Bank agrees to in writing, and disclosed as Primary Collateral in Section 6.A. of
the Loan Authorization Agreement. The applicable Advance Rate (to be multiplied by the Other Asset
Value) shall be as agreed to by Ex-Im Bank in writing case by case by case and set forth in Section
5.B.(4) of the Loan Authorization Agreement.

     “Other Asset Value” shall mean, with respect to a Loan Facility, at the date of determination
thereof, the value of the Other Assets as determined in accordance with GAAP.

     “Other Collateral” shall mean any additional collateral that Lender customarily would require
as security for loan facilities on its own account and risk where the permitted borrowing level is
based principally on a borrowing base derived from a borrower’s inventory and accounts receivable,
but where such additional collateral does not enter into the borrowing base calculation.

     “Permitted Liens” shall mean (a) Liens for taxes, assessments or other governmental charges or
levies not delinquent, or, being contested in good faith and by appropriate proceedings and with
respect to which proper reserves have been taken by Borrower; provided, that, the
Lien shall have no effect on the priority of the Liens in favor of Lender or the value of the
assets in which Lender has such a Lien and a stay of enforcement of any such Lien shall be in
effect; (b) deposits or pledges securing obligations under worker’s compensation, unemployment
insurance, social security or public liability laws or similar legislation; (c) deposits or pledges
securing bids, tenders, contracts (other than contracts for the payment of money), leases,
statutory obligations, surety and appeal bonds and other obligations of like nature arising in the
ordinary course of Borrower’s business; (d) judgment Liens that have been stayed or bonded; (e)
mechanics’, workers’, materialmen’s or other like Liens arising in the ordinary course of
Borrower’s business with respect to obligations which are not due; (f) Liens placed upon fixed
assets hereafter acquired to secure a portion of the purchase price thereof, provided, that, any
such Lien shall not encumber any other property of Borrower; (g) security interests being
terminated concurrently with the execution of the Loan Documents; and (h) Liens disclosed in
Section 6.D. of the Loan

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Authorization Agreement, provided that, except as otherwise permitted by Ex-Im Bank in
writing, such Liens in Section 6.D. shall be subordinate to the Liens in favor of Lender on Primary
Collateral.

     “Person” shall mean any individual, sole proprietorship, partnership, limited liability
partnership, joint venture, trust, unincorporated organization, association, corporation, limited
liability company, institution, public benefit corporation, entity or government (whether national,
federal, provincial, state, county, city, municipal or otherwise, including any instrumentality,
division, agency, body or department thereof), and shall include such Person’s successors and
assigns.

     “Pro Rata Percentage” shall mean, with respect to a Loan Facility, as of the date of
determination thereof, the principal balance of the Credit Accommodations outstanding as a
percentage of the combined principal balance of all loans from Lender to such Borrower including
the then outstanding principal balance of the Credit Accommodations plus unfunded amounts under
outstanding Letters of Credit.

     “Principals” shall mean any officer, director, owner, partner, key employee, or other Person
with primary management or supervisory responsibilities with respect to Borrower or any other
Person (whether or not an employee) who has critical influence on or substantive control over the
transactions covered by this Agreement.

     “Retainage” shall mean that portion of the purchase price of an Export Order that a Buyer is
not obligated to pay until the end of a specified period of time following the satisfactory
performance under such Export Order.

     “Retainage Accounts Receivable” shall mean those portions of Eligible Export-Related Accounts
Receivable or Eligible Export-Related Overseas Accounts Receivable arising out of a Retainage.

     “Retainage Value” shall mean, at the date of determination thereof, the aggregate face amount
of Retainage Accounts Receivable as permitted by Ex-Im Bank in writing, less taxes, discounts,
credits and allowances, except to the extent otherwise permitted by Ex-Im Bank in writing.

     “Revolving Loan Facility” shall mean the credit facility or portion thereof established by
Lender in favor of Borrower for the purpose of providing working capital in the form of loans
and/or Letters of Credit to finance the manufacture, production or purchase and subsequent export
sale of Items pursuant to Loan Documents under which Credit Accommodations may be made and repaid
on a continuous basis based solely on credit availability on the Export-Related Borrowing Base
during the term of such credit facility

     “Special Conditions” shall mean those conditions, if any, set forth in Section 13 of the Loan
Authorization Agreement.

     “Specific Export Orders” shall mean those Export Orders specified in Section 5.D. of the Loan
Authorization Agreement as applicable for a Transaction Specific Revolving Loan Facility or a
Transaction Specific Loan Facility.

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     “Standby Letters of Credit” shall mean those letters of credit subject to the ISP or UCP
issued or caused to be issued by Lender for Borrower’s account that can be drawn upon by a Buyer
only if Borrower fails to perform all of its obligations with respect to an Export Order.

     “Transaction Specific Loan Facility” shall mean a credit facility or a portion thereof
established by Lender in favor of Borrower for the purpose of providing working capital in the form
of loans and/or Letters of Credit to finance the manufacture, production or purchase and subsequent
export sale of Items pursuant to Loan Documents under which Credit Accommodations are made based
solely on credit availability on the Export-Related Borrowing Base relating to Specific Export
Orders and once such Credit Accommodations are repaid they may not be reborrowed.

     “Transaction Specific Revolving Loan Facility” shall mean a Revolving Credit Facility
established to provide financing of Specific Export Orders.

     “UCC” shall mean the Uniform Commercial Code, as the same may be in effect from time to time
in the relevant United States jurisdiction.

     “UCP” shall mean the Uniform Customs and Practice for Documentary Credits (1993 Revision),
International Chamber of Commerce Publication No. 500 and any amendments and revisions thereof.

     “U.S.” or “United States” shall mean the United States of America including any division or
agency thereof (including United States embassies or United States military bases located
overseas), and any United States Territory (including without limitation, Puerto Rico, Guam or the
United States Virgin Islands).

     “U.S. Content” shall mean, with respect to any Item, all the costs, including labor,
materials, services and overhead, but not markup or profit margin, which are of U.S. origin or
manufacture, and which are incorporated into an Item in the United States.

     “Warranty” shall mean Borrower’s guarantee to Buyer that the Items will function as intended
during the warranty period set forth in the applicable Export Order.

     “Warranty Letter of Credit” shall mean a Standby Letter of Credit which is issued or caused to
be issued by Lender to support the obligations of Borrower with respect to a Warranty or a Standby
Letter of Credit which by its terms becomes a Warranty Letter of Credit.

     1.02 Rules of Construction. For purposes of this Agreement, the following additional
rules of construction shall apply, unless specifically indicated to the contrary: (a) wherever from
the context it appears appropriate, each term stated in either the singular or plural shall include
the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall
include the masculine, the feminine and the neuter; (b) the term “or” is not exclusive; (c) the
term “including” (or any form thereof) shall not be limiting or exclusive; (d) all references to
statutes and related regulations shall include any amendments of same and any successor statutes
and regulations; (e) the words “this Agreement”, “herein”, “hereof”, “hereunder” or other words of
similar import refer to this Agreement as a
whole including the schedules, exhibits, and annexes

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hereto as the same may be amended,
modified or supplemented; (f) all references in this Agreement to sections, schedules, exhibits,
and annexes shall refer to the corresponding sections, schedules, exhibits, and annexes
of or to
this Agreement; and (g) all references to any instruments or agreements, including references to
any of the Loan Documents, the Delegated Authority Letter Agreement, or the Fast Track Lender
Agreement shall include any and all modifications, amendments and supplements thereto and any and
all extensions or renewals thereof to the extent permitted under this Agreement.

     1.03 Incorporation of Recitals. The Recitals to this Agreement are incorporated into
and shall constitute a part of this Agreement.

ARTICLE II

OBLIGATIONS OF BORROWER

     Until payment in full of all Loan Facility Obligations and termination of the Loan Documents,
Borrower agrees as follows:

     2.01 Use of Credit Accommodations. (a) Borrower shall use Credit Accommodations only
for the purpose of enabling Borrower to finance the cost of manufacturing, producing, purchasing or
selling the Items. Borrower may not use any of the Credit Accommodations for the purpose of: (i)
servicing or repaying any of Borrower’s pre-existing or future indebtedness unrelated to the Loan
Facility unless approved by Ex-Im Bank in writing; (ii) acquiring fixed assets or capital assets
for use in Borrower’s business; (iii) acquiring, equipping or renting commercial space outside of
the United States; (iv) paying the salaries of non U.S. citizens or non-U.S. permanent residents
who are located in offices outside of the United States; or (v) in connection with a Retainage or
Warranty unless approved by Ex-Im Bank in writing.

          (b) In addition, no Credit Accommodation may be used to finance the manufacture, purchase or
sale of any of the following:

          (i) Items to be sold to a Buyer located in a country as to which Ex-Im Bank is prohibited from
doing business as designated in the Country Limitation Schedule;

          (ii) that part of the cost of the Items which is not U.S. Content unless such part is not
greater than fifty percent (50%) of the cost of the Items and is incorporated into the Items in the
United States;

          (iii) defense articles or defense services;

          (iv) Capital Goods unless in accordance with Section 2.14 of this Agreement; or

          (v) without Ex-Im Bank’s prior written consent, any Items to be used in the construction,
alteration, operation or maintenance of nuclear power, enrichment, reprocessing, research or heavy
water production facilities.

     2.02 Security Interests. Borrower agrees to cooperate with Lender in any steps Lender
shall take to file and maintain valid, enforceable and perfected security interests in the
Collateral.

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     2.03 Loan Documents and Loan Authorization Agreement. (a) This Agreement and each of
the other Loan Documents applicable to Borrower have been duly executed and delivered on behalf of
Borrower, and are and will continue to be legal and valid obligations of Borrower, enforceable
against it in accordance with its terms.

     (b) Borrower shall comply with all of the terms and conditions of this Agreement, the Loan
Authorization Agreement and each of the other Loan Documents to which it is a party.

     (c) Borrower hereby represents and warrants to Lender that Borrower is an Eligible Person.

     2.04 Export-Related Borrowing Base Certificates and Export Orders. (a) In order to
receive Credit Accommodations under the Loan Facility, Borrower shall have delivered to Lender an
Export-Related Borrowing Base Certificate as frequently as required by Lender but at least within
the past month, together with a copy of the Export Order(s) or, for Revolving Loan Facilities, if
permitted by Lender, a written summary of the Export Orders (when Eligible Export-Related Inventory
and Eligible Overseas Export-Related Inventory are entering the Export-Related Borrowing Base)
against which Borrower is requesting Credit Accommodations. In addition, so long as there are any
Credit Accommodations outstanding under the Loan Facility, Borrower shall deliver to Lender an
Export-Related Borrowing Base Certificate at least once each month. Lender shall determine if
daily electronic reporting reconciled monthly may substitute for monthly Export-Related Borrowing
Base Certificates. If the Lender requires an Export-Related Borrowing Base Certificate more
frequently, Borrower shall deliver such Export-Related Borrowing Base Certificate as required by
Lender.

     (b) If Lender permits summaries of Export Orders, Borrower shall also deliver promptly to
Lender copies of any Export Orders requested by Lender.

     2.05 Schedules, Reports and Other Statements. With the delivery of each
Export-Related Borrowing Base Certificate required in Section 2.04 above, Borrower shall submit to
Lender in writing (a) an Inventory schedule for the preceding month, as applicable, and (b) an
Accounts Receivable Aging Report for the preceding month. Borrower shall also furnish to Lender
promptly upon request such information, reports, contracts, invoices and other data concerning the
Collateral as Lender may from time to time specify.

     2.06 Exclusions from the Export-Related Borrowing Base. In determining the
Export-Related Borrowing Base, Borrower shall exclude therefrom Inventory which are not Eligible
Export-Related Inventory or Eligible Export-Related Overseas Inventory and Accounts Receivable
which are not Eligible Export-Related Accounts Receivable or Eligible Export-Related Overseas
Accounts Receivable. Borrower shall promptly, but in any event within five (5) Business Days,
notify Lender (a) if any then existing Export-Related Inventory or Export-Related Overseas
Inventory no longer constitutes Eligible Export-Related Inventory or Eligible Export-Related
Overseas Inventory, as applicable or (b) of any event or circumstance which to Borrower’s knowledge
would cause Lender to consider any then existing Export-Related Accounts Receivable or
Export-Related Overseas Accounts Receivable as no longer constituting an Eligible Export-Related
Accounts Receivable or Eligible Export-Related Overseas Accounts Receivable, as applicable.

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     2.07 Borrowings and Reborrowings. (a) If the Loan Facility is a Revolving Loan
Facility or Transaction Specific Revolving Loan Facility, provided that Borrower is not in
default under any of the Loan Documents, Borrower may borrow, repay and reborrow amounts under such
Loan Facility up to the credit available on the current Export-Related Borrowing Base Certificate
subject to the terms of this Agreement and each of the other Loan Documents until the close of
business on the Final Disbursement Date.

     (b) If the Loan Facility is a Transaction Specific Loan Facility, provided that
Borrower is not in default under any of the Loan Documents, Borrower may borrow (but not reborrow)
amounts under the Loan Facility up to the credit available on the current Export-Related Borrowing
Base Certificate subject to the terms of this Agreement and each of the other Loan Documents until
the close of business on the Final Disbursement Date.

     2.08 Repayment Terms. (a) The Borrower on a Revolving Loan Facility shall pay in
full the outstanding Loan Facility Obligations no later than the first Business Day after the Final
Disbursement Date unless such Loan Facility is renewed or extended by Lender consistent with
procedures required by Ex-Im Bank.

     (b) The Borrower on a Transaction Specific Loan Facility and a Transaction Specific Revolving
Loan Facility shall, within two (2) Business Days of the receipt thereof, pay to Lender (for
application against the outstanding Loan Facility Obligations) all checks, drafts, cash and other
remittances it may receive in payment or on account of the Export-Related Accounts Receivable,
Export-Related Overseas Accounts Receivable or any other Collateral, in precisely the form received
(except for the endorsement of Borrower where necessary). Pending such deposit, Borrower shall
hold such amounts in trust for Lender separate and apart and shall not commingle any such items of
payment with any of its other funds or property. Unless a Transaction Specific Loan Facility or
Transaction Specific Revolving Loan Facility is renewed or extended by Lender consistent with
procedures required by Ex-Im Bank, Borrower shall pay in full all outstanding Loan Facility
Obligations no later than the first Business Day after the Final Disbursement Date, except for
Eligible Export-Related Accounts Receivables and Eligible Export-Related Overseas Accounts
Receivable outstanding as of the Final Disbursement Date and due and payable after such date, for
which the principal and accrued and unpaid interest thereon shall be due and payable no later than
the first Business Day after the date such Accounts Receivable are due and payable.

     2.09 Financial Statements. Borrower shall deliver to Lender the financial statements
required to be delivered by Borrower in accordance with Section 11 of the Loan Authorization
Agreement.

     2.10 Additional Security or Payment. (a) Borrower shall at all times ensure that the
Export-Related Borrowing Base equals or exceeds the aggregate outstanding amount of Disbursements.
If informed by Lender or if Borrower otherwise has actual knowledge that the Export-Related
Borrowing Base is at any time less than the aggregate outstanding amount of Disbursements, Borrower
shall, within five (5) Business Days, either (i) furnish additional Collateral to Lender, in form
and amount satisfactory to Lender and Ex-Im Bank or (ii) pay to Lender an amount equal to the
difference between the aggregate outstanding amount of Disbursements and the Export-Related
Borrowing Base.

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     (b) For purposes of this Agreement, in determining the Export-Related Borrowing Base there
shall be deducted from the Export-Related Borrowing Base an amount equal to (i) twenty-five percent
(25%) of the undrawn amount of outstanding Commercial Letters of Credit and Standby Letters of
Credit and (ii) one hundred percent (100%) of the undrawn amount of outstanding Warranty Letters of
Credit less the amount of cash collateral held by Lender to secure Warranty Letters of
Credit.

     (c) Unless otherwise approved in writing by Ex-Im Bank, for Revolving Loan Facilities (other
than Transaction Specific Revolving Loan Facilities), Borrower shall at all times ensure that the
sum of the outstanding amount of Disbursements and the undrawn amount of outstanding Commercial
Letters of Credit that is supported by Eligible Export-Related Inventory or Eligible Export-Related
Overseas Inventory (discounted by the relevant Advance Rate percentages) in the Export-Related
Borrowing Base does not exceed sixty percent (60%) of the sum of the total outstanding amount of
Disbursements and the undrawn amount of all outstanding Commercial Letters of Credit. If informed
by Lender or if Borrower otherwise has actual knowledge that the sum of the outstanding amount of
Disbursements and the undrawn amount of outstanding Commercial Letters of Credit that is supported
by such Inventory exceeds sixty percent (60%) of the sum of the total outstanding Disbursements and
the undrawn amount of all outstanding Commercial Letters of Credit, Borrower shall, within five (5)
Business Days, either (i) furnish additional non-Inventory Collateral to Lender, in form and amount
satisfactory to Lender and Ex-Im Bank, or (ii) pay down the applicable portion of the outstanding
Disbursements or (iii) reduce the undrawn amount of outstanding Commercial Letters of Credit such
that the above described ratio is not exceeded.

     (d) If informed by Lender or if Borrower otherwise has actual knowledge that the conditions of
Section 2.16(g) are at any time not being met, Borrower shall, within five (5) Business Days,
either (i) furnish additional Collateral to Lender that is not Eligible Export-Related Overseas
Accounts Receivable or Eligible Export-Related Overseas Inventory, in form and amount satisfactory
to Lender and Ex-Im Bank, or (ii) remove from the Export-Related Borrowing Base the portion of
Eligible Export-Related Overseas Accounts Receivable or Eligible Export-Related Overseas Inventory
that supports greater than fifty percent (50%) of the Export-Related Borrowing Base.

     2.11 Continued Security Interest. Borrower shall not change (a) its name or identity
in any manner, (b) the location of its principal place of business or its jurisdiction of
organization or formation, (c) the location of any of the Collateral or (d) the location of any of
the books or records related to the Collateral, in each instance without giving thirty (30) days
prior written notice thereof to Lender and taking all
actions deemed necessary or appropriate by Lender to continuously protect and perfect Lender’s
Liens upon the Collateral.

     2.12 Inspection of Collateral and Facilities. (a) Borrower shall permit the
representatives of Lender and Ex-Im Bank to make at any time during normal business hours
inspections of the Collateral and of Borrower’s facilities, activities, and books and records, and
shall cause its officers and employees to give full cooperation and assistance in connection
therewith.

     (b) Borrower agrees to facilitate Lender’s conduct of field examinations at Borrower’s
facilities in accordance with the time schedule and content for such examinations

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that Lender
requests. Such field examinations shall address at a minimum: (x) the value of the Collateral
against which Credit Accommodations may be provided, (y) the amount, if any, that the aggregate
outstanding amount of Disbursements exceeds the Export-Related Borrowing Base and (z) whether such
Borrower is in material compliance with the terms of each of the Loan Documents. Such field
examinations shall include an inspection and evaluation of the Export-Related Inventory and
Export-Related Overseas Inventory, a book audit of Export-Related Accounts Receivable and
Export-Related Overseas Accounts Receivable, a review of the Accounts Receivable Aging Reports and
a review of Borrower’s compliance with any Special Conditions. Lenders who opt to use the
Export-Related Historical Inventory Value in the Export-Related Borrowing Base calculation shall
reconcile those numbers against the calculation for the relevant time periods using the
Export-Related Inventory Value. Whenever Export-Related Accounts Receivable or Export-Related
Inventory derived from Indirect Exports are in the Export-Related Borrowing Base, Lender shall
verify compliance with Section 2.15 herein, including taking a random sampling of ultimate foreign
purchasers.

     2.13 General Intangibles. Borrower represents and warrants that it owns, or is
licensed to use, all General Intangibles necessary to conduct its business as currently conducted
except where the failure of Borrower to own or license such General Intangibles could not
reasonably be expected to have a Material Adverse Effect.

     2.14 Economic Impact Approval. (a) For Loan Facilities up to and including $10
million, Borrower acknowledges that Capital Goods may not be included as Items, and Export-Related
Inventory, Export-Related Overseas Inventory, Export-Related Accounts Receivable and Export-Related
Overseas Accounts Receivable in connection with the sale of such Capital Goods may not be included
in the Export-Related Borrowing Base, if such Capital Goods would enable a foreign buyer to
establish or expand production of a product where, as of the date of the Economic Impact
Certification covering such Item: (i) the Buyer is subject to a Final Anti-Dumping (AD) or
Countervailing Duty (CVD) order, or a Suspension Agreement arising from a AD or CVD investigation,
and such product is substantially the same as the product that is the subject of the AD/CVD order
or suspension agreement; or (ii) the Buyer is the subject of a Section 201 injury determination by
the International Trade Commission (“ITC”) and such product is substantially the same as a product
that is the subject of the ITC injury determination. Borrower may consult with Ex-Im Bank
regarding the appropriate application of this Section 2.14(a) and may, at its option, request that
Ex-Im Bank issue an Economic Impact Approval covering any Items listed in Section 4.A. of the Loan
Authorization Agreement. For Loan Facilities over $10 million
involving Items that are Capital Goods, Borrower shall obtain from Ex-Im Bank, and abide by,
an Economic Impact Approval covering all Items listed in Section 4(A) of the Loan Authorization
Agreement.

     (b) Borrower shall provide Lender with a certification in the form of Annex B (an “Economic
Impact Certification”) covering the Items stated in Section 4(A) of the Loan Authorization
Agreement prior to Lender including such Items in the Loan Authorization Agreement. Prior to
Lender amending the Loan Authorization Agreement to include additional Items, Borrower shall
provide Lender with an additional Economic Impact Certification covering such additional Items.

     2.15 Indirect Exports. Indirect Exports may be included as Items in a Loan Facility
provided that funds available under such Loan Facility’s Export-Related Borrowing Base

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supported by Accounts Receivable and Inventory derived from Indirect Exports at no time exceed ten
percent (10%) of the Maximum Amount of such Loan Facility, and provided, further
that (a) the ultimate foreign buyer for the Items must be located in a country in which Ex-Im
Bank is not legally prohibited from doing business in accordance with the Country
Limitation Schedule, and (b) the Borrower must make available to Lender verifiable evidence of
intent to export the Indirect Exports from the United States, which evidence may be contained in
the Export Orders and Accounts Receivable Aging Reports and supporting documents. Lender must
obtain written consent from Ex-Im Bank prior to including funds derived from Indirect Exports in an
Export-Related Borrowing Base above the ten percent (10%) threshold.

     2.16 Overseas Inventory and Accounts Receivable. Upon the prior written consent of
Ex-Im Bank, Export-Related Overseas Accounts Receivable and Export-Related Overseas Inventory of a
Borrower or of an Affiliated Foreign Person (as defined below) may be included in the
Export-Related Borrowing Base provided that conditions required by Ex-Im Bank, including the
following, are met:

     (a) the Affiliated Foreign Person, if any, has been approved by Ex-Im Bank;

     (b) the Affiliated Foreign Person, if any, is a Borrower under the relevant Loan Facility;

     (c) notwithstanding the Maximum Amount of the Loan Facility, all payments due and payable on
such Export-Related Overseas Accounts Receivable are collected through a cash collateral account
under Lender’s control;

     (d) as of the Effective Date, or such later date when the Export-Related Overseas Accounts
Receivable and/or Export-Related Overseas Inventory are added to the Loan Facility, Lender has
obtained a valid and enforceable first priority Lien in the Export-Related Overseas Accounts
Receivable and Export-Related Overseas Inventory, as applicable;

     (e) as of the Effective Date, or such later date when the Export-Related Overseas Accounts
Receivable and/or Export-Related Overseas Inventory are added to the Loan Facility,
Lender has obtained a legal opinion confirming the security interest in the Export-Related
Overseas Accounts Receivable and Export-Related Overseas Inventory;

     (f) the Export-Related Overseas Accounts Receivable are due and payable in United States
Dollars or other currency acceptable to Ex-Im Bank; and

     (g) at no time may the portion of the Export-Related Borrowing Base derived from Eligible
Export-Related Overseas Accounts Receivable and Eligible Export-Related Overseas Inventory exceed
fifty percent (50%) of the Export-Related Borrowing Base.

          For purposes hereof, an “Affiliated Foreign Person” shall mean a subsidiary or affiliate of a
Borrower on the same Loan Facility, which has duly executed as a Borrower all of the applicable
Loan Documents and any other documents required by Ex-Im Bank, meets all of the requirements of the
definition of Eligible Person other than subclause (a) thereof and is in good standing in the
country of its formation or otherwise authorized to conduct business in such country.

20

 

     2.17 Country Limitation Schedule. Unless otherwise informed in writing by Lender or
Ex-Im Bank, Borrower shall be entitled to rely on the last copy of the Country Limitation Schedule
distributed from Lender to Borrower.

     2.18 Notice of Certain Events. Borrower shall promptly, but in any event within five
(5) Business Days, notify Lender in writing of the occurrence of any of the following:

     (a) Borrower or any Guarantor (i) applies for, consents to or suffers the appointment of, or
the taking of possession by, a receiver, custodian, trustee, liquidator or similar fiduciary of
itself or of all or a substantial part of its property or calls a meeting of its creditors, (ii)
admits in writing its inability, or is generally unable, to pay its debts as they become due or
ceases operations of its present business, (iii) makes a general assignment for the benefit of
creditors, (iv) commences a voluntary case under any state or federal bankruptcy laws (as now or
hereafter in effect), (v) is adjudicated as bankrupt or insolvent, (vi) files a petition seeking to
take advantage of any other law providing for the relief of debtors, (vii) acquiesces to, or fails
to have dismissed within thirty (30) days, any petition filed against it in any involuntary case
under such bankruptcy laws, or (vii) takes any action for the purpose of effecting any of the
foregoing;

     (b) any Lien in any of the Collateral, granted or intended by the Loan Documents to be granted
to Lender, ceases to be a valid, enforceable, perfected, first priority Lien (or a lesser priority
if expressly permitted pursuant to Section 6 of the Loan Authorization Agreement) subject only to
Permitted Liens;

     (c) the issuance of any levy, assessment, attachment, seizure or Lien, other than a Permitted
Lien, against any of the Collateral which is not stayed or lifted within thirty (30) calendar days;

     (d) any proceeding is commenced by or against Borrower or any Guarantor for the liquidation of
its assets or dissolution;

     (e) any litigation is filed against Borrower or any Guarantor which has had or could
reasonably be expected to have a Material Adverse Effect and such litigation is not withdrawn or
dismissed within thirty (30) calendar days of the filing thereof;

     (f) any default or event of default under the Loan Documents;

     (g) any failure to comply with any terms of the Loan Authorization Agreement;

     (h) any material provision of this Agreement or any other Loan Document for any reason ceases
to be valid, binding and enforceable in accordance with its terms;

     (i) any event which has had or could reasonably be expected to have a Material Adverse Effect;
or

     (j) the aggregate outstanding amount of Disbursements exceeds the applicable Export-Related
Borrowing Base.

21

 

     2.19 Insurance. Borrower will at all times carry property, liability and other
insurance, with insurers acceptable to Lender, in such form and amounts, and with such deductibles
and other provisions, as Lender shall require, and Borrower will provide evidence of such insurance
to Lender on the proper Acord Form, so that Lender is satisfied that such insurance is, at all
times, in full force and effect. Each property insurance policy shall name Lender as loss payee or
mortgagee and shall contain a lender’s loss payable endorsement in form acceptable to Lender and
each liability insurance policy shall name Lender as an additional insured. All policies of
insurance shall provide that they may not be cancelled or changed without at least thirty (30)
days’ prior written notice to Lender and shall otherwise be in form and substance satisfactory to
Lender. Borrower will promptly deliver to Lender copies of all reports made to insurance
companies.

     2.20 Taxes. Borrower has timely filed all tax returns and reports required by
applicable law, has timely paid all applicable taxes, assessments, deposits and contributions owing
by Borrower and will timely pay all such items in the future as they became due and payable.
Borrower may, however, defer payment of any contested taxes; provided, that Borrower (a) in good
faith contests Borrower’s obligation to pay such taxes by appropriate proceedings promptly and
diligently instituted and conducted; (b) notifies Lender in writing of the commencement of, and any
material development in, the proceedings; (c) posts bonds or takes any other steps required to keep
the contested taxes from becoming a Lien upon any of the Collateral; and (d) maintains adequate
reserves therefore in conformity with GAAP.

     2.21 Compliance with Laws. Borrower represents and warrants that it has complied in
all material respects with all provisions of all applicable laws and regulations, including those
relating to Borrower’s ownership of real or personal property, the conduct and licensing of
Borrower’s business, the payment and withholding of taxes, ERISA and other employee matters, safety
and environmental matters.

     2.22 Negative Covenants. Without the prior written consent of Ex-Im Bank and Lender,
Borrower shall not: (a) merge, consolidate or otherwise combine with any other Person; (b) acquire
all or substantially all of the assets or
capital stock of any other Person; (c) sell, lease, transfer, convey, assign or otherwise
dispose of any of its assets, except for the sale of Inventory in the ordinary course of business
and the disposition of obsolete equipment in the ordinary course of business; (d) create any Lien
on the Collateral except for Permitted Liens; (e) make any material changes in its organizational
structure or identity; or (f) enter into any agreement to do any of the foregoing.

     2.23 Cross Default. Borrower shall be deemed in default under the Loan Facility if
Borrower fails to pay when due any amount payable to Lender under any loan or other credit
accommodations to Borrower whether or not guaranteed by Ex-Im Bank.

     2.24 Munitions List. If any of the Items are articles, services, or related technical
data that are listed on the United States Munitions List (part 121 of title 22 of the Code of
Federal Regulations), Borrower shall send a written notice promptly, but in any event within five
(5) Business Days, of Borrower learning thereof to Lender describing the Items(s) and the
corresponding invoice amount.

     2.25 Suspension and Debarment, etc. On the date of this Agreement neither Borrower
nor its Principals are (a) debarred, suspended, proposed for debarment with a final determination

22

 

still pending, declared ineligible or voluntarily excluded (as such terms are defined under any of
the Debarment Regulations referred to below) from participating in procurement or nonprocurement
transactions with any United States federal government department or agency pursuant to any of the
Debarment Regulations or (b) indicted, convicted or had a civil judgment rendered against Borrower
or any of its Principals for any of the offenses listed in any of the Debarment Regulations.
Unless authorized by Ex-Im Bank, Borrower will not knowingly enter into any transactions in
connection with the Items with any person who is debarred, suspended, declared ineligible or
voluntarily excluded from participation in procurement or nonprocurement transactions with any
United States federal government department or agency pursuant to any of the Debarment Regulations.
Borrower will provide immediate written notice to Lender if at any time it learns that the
certification set forth in this Section 2.24 was erroneous when made or has become erroneous by
reason of changed circumstances.

ARTICLE III

RIGHTS AND REMEDIES

     3.01 Indemnification. Upon Ex-Im Bank’s payment of a Claim to Lender in connection
with the Loan Facility pursuant to the Master Guarantee Agreement, Ex-Im Bank may assume all rights
and remedies of Lender under the Loan Documents and may enforce any such rights or remedies against
Borrower, the Collateral and any Guarantors. Borrower shall hold Ex-Im Bank and Lender harmless
from and indemnify them against any and all liabilities, damages, claims, costs and losses incurred
or suffered by either of them resulting from (a) any materially incorrect certification or
statement knowingly made by Borrower or its agent to Ex-Im Bank or Lender in connection with the
Loan Facility, this Agreement, the Loan Authorization Agreement or any other Loan Documents or (b)
any material breach by Borrower of the terms and conditions of this Agreement, the Loan
Authorization Agreement or any of the other Loan Documents. Borrower also acknowledges
that any statement, certification or representation made by Borrower in connection with the
Loan Facility is subject to the penalties provided in Article 18 U.S.C. Section 1001.

     3.02 Liens. Borrower agrees that any and all Liens granted by it to Lender are also
hereby granted to Ex-Im Bank to secure Borrower’s obligation, however arising, to reimburse Ex-Im
Bank for any payments made by Ex-Im Bank pursuant to the Master Guarantee Agreement. Lender is
authorized to apply the proceeds of, and recoveries from, any property subject to such Liens to the
satisfaction of Loan Facility Obligations in accordance with the terms of any agreement between
Lender and Ex-Im Bank.

23

 

ARTICLE IV

MISCELLANEOUS

     4.01 Governing Law. This Agreement and the obligations arising under this Agreement
shall be governed by, and construed in accordance with, the law of the state governing the Loan
Agreement.

     4.02 Notification. All notices required by this Agreement shall be given in the
manner and to the parties provided for in the Loan Agreement.

     4.03 Partial Invalidity. If at any time any of the provisions of this Agreement
becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither
the legality, the validity nor the enforceability of the remaining provisions hereof shall in any
way be affected or impaired.

     4.04 Waiver of Jury Trial. BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT, PROCEEDING
OR OTHER LITIGATION BROUGHT TO RESOLVE ANY DISPUTE ARISING UNDER, ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT, THE LOAN AUTHORIZATION AGREEMENT, ANY LOAN DOCUMENT, OR ANY OTHER AGREEMENT,
DOCUMENT OR INSTRUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OR OMISSIONS OF
LENDER, EX-IM BANK, OR ANY OTHER PERSON, RELATING TO THIS AGREEMENT, THE LOAN AUTHORIZATION
AGREEMENT OR ANY OTHER LOAN DOCUMENT.

     4.05 Consequential Damages. Neither Ex-Im Bank, Lender nor any agent or attorney for
any of them shall be liable to Borrower for consequential damages arising from any breach of
contract, tort or other wrong relating to the establishment, administration or collection of the
Loan Facility Obligations.

24

 

     IN WITNESS WHEREOF, Borrower has caused this Agreement to be duly executed as of the                     
day of                     , 200_.

	 	 	 	 	 
	Iridex Corporation 

(Name of Borrower)
	 	 
	By:	 	/s/ James Mackaness	 	 
	 	 

(Signature)            
	 	 
	 	 	 	 	 
	Name:	 	James Mackaness	 	 
	 	 	 	 	 
	Title:	 	CFO	 	 

ACKNOWLEDGED:

	 	 	 	 	 
	Wells Fargo Bank N.A. Wells Fargo Business Credit 

(Name of Lender)
	 	 
	By:	 	/s/ Jorge Visitacion	 	 
	 	 

(Signature)            
	 	 
	 	 	 	 	 
	Name:	 	Jorge Visitacion	 	 
	 	 	 	 	 
	Title:	 	AVP + Relationship Manager	 	 

25

 

CONSENT OF GUARANTORS

     Each of the undersigned as a Guarantor of the obligations of Borrower to the Lender executing
the foregoing Agreement hereby agrees that the foregoing Agreement, each of their respective
Guarantee Agreements and each other Loan Documents may be assigned to the Export-Import Bank of the
United States.

	 	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 

ANNEXES:

	 	 	 
	Annex A

	 	- Loan Authorization Agreement, Fast Track Loan Authorization Agreement or Loan Authorization Notice, as
  applicable
	 
	 	 
	Annex B

	 	- Economic Impact Certification

26

 

ANNEX B

Economic Impact Certification

I am making this Economic Impact Certification on behalf of                                          (the
“Borrower”) pursuant to Section 2.14(b) of the Borrower Agreement applicable to the Borrower’s Loan
Facility. All capitalized terms not otherwise defined in this Certification are as defined in the
Borrower Agreement.

I hereby certify that:

o No Items listed in Section 4.A.(1.) of the Loan Authorization Agreement applicable to the
Borrower’s Loan Facility are Capital Goods.

o No Items being added to Section 4.A.(1.) of the Loan Authorization Agreement in amending such
document are Capital Goods.

o The Items listed below are Capital Goods. In accordance with Section 2.14(a) of the Borrower
Agreement, the Borrower has either conducted its own analysis or obtained an Economic Impact
Approval concluding that such Items do not require any restrictions. The Economic Impact Approval
or Borrower’s analysis supporting this conclusion is attached.

o The Items listed below are Capital Goods. In accordance with Section 2.14(a) of the Borrower
Agreement, the Borrower has either conducted its own analysis or obtained an Economic Impact
Approval that identifies certain restrictions. The Borrower shall abide by the terms of such
restrictions throughout the term of the Loan Facility. The Economic Impact Approval or Borrower’s
analysis enumerating the restrictions is attached.

I certify that I am authorized to sign this Certification on behalf of the Borrowers.

	 	 	 
	 

	 	Date:
	 

Name:

	 	 
	Title:
	 	 

27exv4w5

 

Exhibit 4.5
 

CAPITAL CORP OF THE WEST,

as Company

INDENTURE

Dated as of June 23, 2006

U.S. BANK NATIONAL ASSOCIATION,

As Trustee

JUNIOR SUBORDINATED DEBT SECURITIES

Due September 15, 2036

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	1	 
	ARTICLE II
	 	 	 	 
	DEBT SECURITIES
	 	 	 	 
	SECTION 2.01. Authentication and Dating
	 	 	8	 
	SECTION 2.02. Form of Trustee’s Certificate of Authentication
	 	 	9	 
	SECTION 2.03. Form and Denomination of Debt Securities
	 	 	9	 
	SECTION 2.04. Execution of Debt Securities
	 	 	9	 
	SECTION 2.05. Exchange and Registration of Transfer of Debt Securities
	 	 	10	 
	SECTION 2.06. Mutilated, Destroyed, Lost or Stolen Debt Securities
	 	 	13	 
	SECTION 2.07. Temporary Debt Securities
	 	 	14	 
	SECTION 2.08. Payment of Interest 
	 	 	14	 
	SECTION
2.09. Cancellation of Debt Securities Paid, etc. 
	 	 	15	 
	SECTION 2.10. Computation of Interest 
	 	 	16	 
	SECTION 2.11. Extension of Interest Payment Period 
	 	 	17	 
	SECTION 2.12. CUSIP Numbers 
	 	 	18	 
	SECTION 2.13. Income Tax Certification 
	 	 	19	 
	ARTICLE III
	 	 	 	 
	PARTICULAR COVENANTS OF THE COMPANY
	 	 	 	 
	SECTION 3.01. Payment of Principal, Premium and Interest; Agreed
Treatment of the Debt Securities 
	 	 	19	 
	SECTION
3.02. Offices for Notices and Payments, etc. 
	 	 	20	 
	SECTION 3.03. Appointments to Fill Vacancies in Trustee’s Office 
	 	 	20	 
	SECTION 3.04. Provision as to Paying Agent 
	 	 	20	 
	SECTION 3.05. Certificate to Trustee 
	 	 	21	 
	SECTION 3.06. Additional Interest 
	 	 	22	 
	SECTION 3.07. Compliance with Consolidation Provisions 
	 	 	22	 
	SECTION 3.08. Limitation on Dividends 
	 	 	22	 
	SECTION 3.09. Covenants as to the Trust 
	 	 	23	 
	ARTICLE IV
	 	 	 	 
	LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	 	 	 
	SECTION 4.01. Securityholders’ Lists
	 	 	23	 

-i-

 

TABLE OF CONTENTS

(CONTINUED)

	 	 	 	 	 
	 	 	Page	 
	SECTION 4.02. Preservation and Disclosure of Lists 
	 	 	24	 
	SECTION 4.03. Financial and Other Information 
	 	 	25	 
	ARTICLE V
	 	 	 	 
	REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

	SECTION 5.01. Events of Default 
	 	 	25	 
	SECTION 5.02. Payment of Debt Securities on Default; Suit Therefor 
	 	 	28	 
	SECTION 5.03. Application of Moneys Collected by Trustee 
	 	 	29	 
	SECTION 5.04. Proceedings by Securityholders 
	 	 	29	 
	SECTION 5.05. Proceedings by Trustee 
	 	 	30	 
	SECTION 5.06. Remedies Cumulative and Continuing 
	 	 	30	 
	SECTION 5.07. Direction of Proceedings and Waiver of Defaults by Majority
of Securityholders 
	 	 	31	 
	SECTION 5.08. Notice of Defaults 
	 	 	31	 
	SECTION 5.09. Undertaking to Pay Costs 
	 	 	32	 
	ARTICLE VI
	 	 	 	 
	CONCERNING THE TRUSTEE
	 	 	 	 
	SECTION 6.01. Duties and Responsibilities of Trustee 
	 	 	32	 
	SECTION 6.02. Reliance on Documents, Opinions, etc. 
	 	 	34	 
	SECTION
6.03. No Responsibility for Recitals, etc.
	 	 	35	 
	SECTION 6.04. Trustee, Authenticating Agent, Paying Agents, Transfer
Agents or Registrar May Own Debt Securities 
	 	 	35	 
	SECTION 6.05. Moneys to be Held in Trust 
	 	 	35	 
	SECTION 6.06. Compensation and Expenses of Trustee 
	 	 	35	 
	SECTION 6.07. Officers’ Certificate as Evidence 
	 	 	36	 
	SECTION 6.08. Eligibility of Trustee 
	 	 	36	 
	SECTION 6.09. Resignation or Removal of Trustee, Calculation Agent,
Paying Agent or Debt Security Registrar 
	 	 	37	 
	SECTION 6.10. Acceptance by Successor 
	 	 	38	 
	SECTION 6.11. Succession by Merger, etc. 
	 	 	39	 
	SECTION 6.12. Authenticating Agents 
	 	 	40	 

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TABLE OF CONTENTS

(CONTINUED)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VII
	 	 	 	 
	CONCERNING THE SECURITYHOLDERS
	 	 	 	 
	SECTION 7.01. Action by Securityholders 
	 	 	41	 
	SECTION 7.02. Proof of Execution by Securityholders 
	 	 	41	 
	SECTION 7.03. Who Are Deemed Absolute Owners 
	 	 	42	 
	SECTION 7.04. Debt Securities Owned by Company Deemed Not Outstanding 
	 	 	42	 
	SECTION 7.05. Revocation of Consents; Future Securityholders Bound 
	 	 	42	 
	ARTICLE VIII
	 	 	 	 
	SECURITYHOLDERS’ MEETINGS
	 	 	 	 
	SECTION 8.01. Purposes of Meetings 
	 	 	43	 
	SECTION 8.02. Call of Meetings by Trustee 
	 	 	43	 
	SECTION 8.03. Call of Meetings by Company or Securityholders 
	 	 	44	 
	SECTION 8.04. Qualifications for Voting Covenants as to the Trust 
	 	 	44	 
	SECTION 8.05. Regulations 
	 	 	44	 
	SECTION 8.06. Voting 
	 	 	45	 
	SECTION 8.07. Quorum; Actions 
	 	 	45	 
	SECTION 8.08. Written Consent Without a Meeting 
	 	 	46	 
	ARTICLE IX
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	SECTION 9.01. Supplemental Indentures without Consent of Securityholders
	 	 	46	 
	SECTION 9.02. Supplemental Indentures with Consent of Securityholders
	 	 	47	 
	SECTION 9.03. Effect of Supplemental Indentures
	 	 	49	 
	SECTION 9.04. Notation on Debt Securities
	 	 	49	 
	SECTION 9.05. Evidence of Compliance of Supplemental Indenture to be furnished to Trustee
	 	 	49	 
	ARTICLE X
	 	 	 	 
	REDEMPTION OF SECURITIES
	 	 	 	 
	SECTION 10.01. Optional Redemption 
	 	 	49	 
	SECTION 10.02. Special Event Redemption 
	 	 	50	 
	SECTION 10.03. Notice of Redemption; Selection of Debt Securities 
	 	 	50	 
	SECTION 10.04. Payment of Debt Securities Called for Redemption 
	 	 	51	 
	ARTICLE XI
	 	 	 	 
	CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	 	 	 	 
	SECTION 11.01. Company May Consolidate, etc., on Certain Terms 
	 	 	51	 
	SECTION 11.02. Successor Entity to be Substituted 
	 	 	52	 

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TABLE OF CONTENTS

(CONTINUED)

	 	 	 	 	 
	 	 	Page	 
	SECTION 11.03. Opinion of Counsel to be Given to Trustee 
	 	 	52	 
	ARTICLE XII
	 	 	 	 
	SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	 	 
	SECTION 12.01. Discharge of Indenture 
	 	 	53	 
	SECTION 12.02. Deposited Moneys to be Held in Trust by Trustee 
	 	 	53	 
	SECTION 12.03. Paying Agent to Repay Moneys Held 
	 	 	54	 
	SECTION 12.04. Return of Unclaimed Moneys 
	 	 	54	 
	ARTICLE XIII
	 	 	 	 
	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	 	 	 	 
	SECTION 13.01. Indenture and Debt Securities Solely Corporate Obligations
	 	 	54	 
	ARTICLE XIV
	 	 	 	 
	MISCELLANEOUS PROVISIONS
	 	 	 	 
	SECTION 14.01. Successors 
	 	 	54	 
	SECTION 14.02. Official Acts by Successor Entity 
	 	 	55	 
	SECTION 14.03. Surrender of Company Powers 
	 	 	55	 
	SECTION
14.04. Addresses for Notices, etc. 
	 	 	55	 
	SECTION 14.05. Governing Law 
	 	 	55	 
	SECTION 14.06. Evidence of Compliance with Conditions Precedent 
	 	 	55	 
	SECTION 14.07. Non-Business Days 
	 	 	56	 
	SECTION
14.08. Table of Contents, Headings, etc. 
	 	 	56	 
	SECTION 14.09. Execution in Counterparts 
	 	 	56	 
	SECTION 14.10. Severability 
	 	 	56	 
	SECTION 14.11. Assignment 
	 	 	57	 
	SECTION 14.12. Acknowledgment of Rights 
	 	 	57	 
	ARTICLE XV
	 	 	 	 
	SUBORDINATION OF DEBT SECURITIES
	 	 	 	 
	SECTION 15.01. Agreement to Subordinate 
	 	 	57	 
	SECTION 15.02. Default on Senior Indebtedness 
	 	 	58	 
	SECTION 15.03. Liquidation; Dissolution; Bankruptcy 
	 	 	58	 
	SECTION 15.04. Subrogation 
	 	 	59	 
	SECTION 15.05. Trustee to Effectuate Subordination 
	 	 	60	 
	SECTION 15.06. Notice by the Company 
	 	 	60	 

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(CONTINUED)

	 	 	 	 	 
	 	 	Page	 
	SECTION 15.07. Rights of the Trustee, Holders of Senior Indebtedness 
	 	 	61	 
	SECTION 15.08. Subordination May Not Be Impaired 
	 	 	61	 
	 
	EXHIBITS
	 	 	 	 
	 
	EXHIBIT A            FORM OF DEBT SECURITY
	 	 	 	 

-v-

 

          THIS INDENTURE, dated as of June 23, 2006, between Capital Corp of the West, a bank holding company
incorporated in California (hereinafter sometimes called the “Company”), and U.S. Bank National
Association as trustee (hereinafter sometimes called the “Trustee”).

W I T N E S S E T H:

          WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of its
Junior Subordinated Debt Securities due September 15, 2036 (the “Debt Securities”) under this
Indenture and to provide, among other things, for the execution and
authentication, delivery and administration thereof, the Company has duly authorized the execution
of this Indenture.

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

ARTICLE I

DEFINITIONS

     SECTION 1.01. Definitions.

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

          “Additional Interest” shall have the meaning set forth in Section 3.06.

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

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

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

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

 

 

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

          “Business Day” means any day other than a Saturday, Sunday or any other day on which banking
institutions in Boston, Massachusetts, New York City or the city of the Principal Office of the
Trustee or the Company are permitted or required by any applicable law or executive order to close.

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

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

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

          “Capital Treatment Event” means, if the Company is organized and existing under the laws of the
United States or any state thereof or the District of Columbia, the receipt by the Company and the
Trust of an Opinion of Counsel experienced in such matters to the effect that, as a result of (a)
any amendment to, or change in, the laws, rules or regulations of the United States or any
political subdivision thereof or therein, or any rules, guidelines or policies of any applicable
regulatory authority for the Company 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 Debt Securities, there is more than an insubstantial risk that, within 90 days of
the receipt of such opinion, the aggregate Liquidation Amount of the Capital Securities will not be
eligible to be treated by the Company as “Tier 1 Capital” (or the then equivalent thereof) for
purposes of the capital adequacy guidelines of the Federal Reserve (or any successor regulatory
authority with jurisdiction over bank or financial holding companies), as then in effect and
applicable to the Company (or if the Company is not a bank holding company, such guidelines applied
to the Company as if the Company were subject to such guidelines); provided, however, that the
inability of the Company to treat all or any portion of the aggregate Liquidation Amount of the
Capital Securities as Tier 1 Capital shall not constitute the basis for a Capital Treatment Event,
if such inability results from the Company having cumulative preferred stock, minority interests in
consolidated subsidiaries, or any other class of security or interest which the Federal Reserve or
OTS, as applicable, may now or hereafter accord Tier 1 Capital treatment in excess of the amount
which may now or hereafter qualify for treatment as Tier 1 Capital under applicable capital
adequacy guidelines; provided further, however, that the distribution of the Debt Securities in
connection with the liquidation of

-2-

 

the Trust by the Company shall not in and of itself constitute a Capital Treatment Event unless
such liquidation shall have occurred in connection with a Tax Event or an Investment Company Event.

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

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

          “Company” means Capital Corp of the West, a bank holding company incorporated in California, and,
subject to the provisions of Article XI, shall include its successors and assigns.

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

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

          “Declaration” means the Amended and Restated Declaration of Trust of the Trust dated as of June 23,
2006, as amended or supplemented from time to time.

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

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

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

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

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

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

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

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

          “Initial Purchaser” means the initial purchaser of the Capital Securities.

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

          “Interest Payment Date” means March 15, June 15, September 15 and December 15 of each year,
commencing on September 15, 2006, during the term of this Indenture.

          “Interest Payment Period” means the period from and including an Interest Payment Date, or in the
case of the first Interest Payment Period, the original date of issuance of the Debt Securities,
to, but excluding, the next succeeding Interest Payment Date or, in the case of the last Interest
Payment Period, the Redemption Date, Special Redemption Date or Maturity Date, as the case may be.

          “Interest Rate” means, with respect to any Interest Payment Period, a per annum rate of interest,
equal to LIBOR, as determined on the LIBOR Determination Date for such Interest Payment Date, plus
1.59%; provided, however, that the Interest Rate for any Interest Payment Period may not exceed the
highest rate permitted by New York law, as the same may be modified by United States law of general
applicability.

          “Investment Company Event” means the receipt by the Company and the Trust of an Opinion of Counsel
experienced in such matters to the effect that, as a result of a change in law or regulation or
written change in interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority, there is more than an insubstantial risk that
the Trust is or, within 90 days of the date of such opinion will be, considered an “investment
company” that is required to be registered under the Investment
Company Act of 1940, as amended, which change or prospective change becomes effective or would
become effective, as the case may be, on or after the date of the original issuance of the Debt
Securities.

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

          “LIBOR
Banking Day” has the meaning set forth in Section 2.10(b)(1).

          “LIBOR Business Day” has the meaning set forth in Section 2.10(b)(1).

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

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

          “Maturity Date” means September 15, 2036.

          “Notice” has the meaning set forth in Section 2.11.

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

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

          “OTS” means the Office of Thrift Supervision and any successor federal agency that is primarily
responsible for regulating the activities of savings and loan holding companies.

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

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

          (b)
Debt Securities, or portions thereof, for the payment or redemption of which moneys in the
necessary amount shall have been deposited in trust with the Trustee or with any Paying Agent
(other than the Company) or shall have been set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent); provided, that, if such Debt Securities, or
portions thereof, are to be redeemed prior to maturity thereof, notice of such redemption shall
have been given as provided in Articles X and XIV or provision satisfactory to the Trustee shall
have been made for giving such notice; and

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

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

          “Person” means any individual, corporation, limited liability company, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or government or any agency or
political subdivision thereof.

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

          “Principal Office of the Trustee” means the office of the Trustee, at which at any particular time
its corporate trust business shall be principally administered, which at all times shall be located
within the United States and at the time of the execution of this Indenture shall be One Federal
Street, 3rd Floor, Boston, Massachusetts 02110.

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

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          “Redemption Price” means 100% of the principal amount of the Debt Securities being redeemed plus
accrued and unpaid interest on such Debt Securities to the Redemption Date.

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

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

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

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

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

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

          “Special Redemption Price” means, with respect to the redemption of any Debt Security following a
Special Event, an amount in cash equal to 103.525% of the principal amount of Debt Securities to be
redeemed prior to September 15, 2007 and thereafter equal to the percentage of the principal amount
of the Debt Securities that is specified below for the Special Redemption Date plus, in each case,
unpaid interest accrued thereon to the Special
Redemption Date:

	 	 	 
	 	 	 
	Special Redemption During the	 	 
	12-Month Period Beginning September 15 	 	Percentage of Principal Amount
	2007
	 	103.140%
	2008
	 	102.355%
	2009
	 	101.570%
	2010
	 	100.785%
	2011 and thereafter
	 	100.000%

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

          “Tax Event” means the receipt by the Company and the Trust of an Opinion of Counsel experienced in
such matters to the effect that, as a result of any amendment to or change (including any announced
prospective change) in the laws or any regulations thereunder of the United States or any political
subdivision or taxing authority thereof or therein, or as a result of any official administrative
pronouncement (including any private letter ruling, technical advice memorandum, regulatory
procedure, notice or announcement (an “Administrative Action”)) or judicial decision interpreting
or applying such laws or regulations, regardless of whether such Administrative Action or judicial
decision is issued to or in connection with a proceeding involving the Company or the Trust and
whether or not subject to review or appeal, which amendment, clarification, change, Administrative
Action or decision is enacted, promulgated or announced, in each case on or after the date of
original issuance of the Debt Securities, there is more than an insubstantial risk that: (i) the
Trust is, or will be within 90 days of the date of such

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

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

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

          “Trust Securities” means Common Securities and Capital Securities of County Statutory Trust III.

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

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

          “U.S. Person” has the meaning given to United States Person as set forth in Section 7701(a)(30) of
the Internal Revenue Code of 1986, as amended.

ARTICLE II

DEBT SECURITIES

     SECTION 2.01. Authentication and Dating.

          Upon the execution and delivery of this Indenture, or from time to time thereafter, Debt Securities
in an aggregate principal amount not in excess of $15,464,000 may be executed and delivered by the
Company to the Trustee for authentication, and the Trustee shall thereupon authenticate and make
available for delivery said Debt Securities to or upon the written order of the Company, signed by
its Chairman of the Board of Directors, Vice Chairman, President or Chief Financial Officer or one
of its Vice Presidents, without any further action by the Company hereunder. In authenticating such
Debt Securities, and accepting the additional responsibilities under this Indenture in relation to
such Debt Securities, the Trustee shall be entitled to receive, and (subject to Section 6.01) shall
be fully protected in relying upon a copy of any Board Resolution or Board Resolutions relating
thereto and, if applicable, an appropriate record of any action taken pursuant to such resolution,
in each case certified by the Secretary or an Assistant Secretary or other officers with
appropriate delegated authority of the Company as the case may be.

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          The Trustee shall have the right to decline to authenticate and deliver any Debt Securities under
this Section if the Trustee, being advised by counsel, determines that such action may not lawfully
be taken or if a Responsible Officer of the Trustee in good faith shall determine that such action
would expose the Trustee to personal liability to existing Securityholders. The Trustee shall also
be entitled to receive an opinion of counsel to the effect that (1) all conditions precedent to the
execution, delivery and authentication of the Securities have been complied with; (2) the
Securities are not required to be registered under the Securities Act; and (3) the Indenture is not
required to be qualified under the Trust Indenture Act.

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

     SECTION 2.02. Form of Trustee’s Certificate of Authentication.

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

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

          U.S. Bank National Association, not in its individual capacity but solely as Trustee

	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

     SECTION 2.03. Form and Denomination of Debt Securities.

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

     SECTION 2.04. Execution of Debt Securities.

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

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conclusive evidence that the Debt Security so authenticated has been duly authenticated and
delivered hereunder and that the holder is entitled to the benefits of this Indenture.

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

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

     SECTION 2.05. Exchange and Registration of Transfer of Debt Securities.

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

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

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

          Neither the Trustee nor the Debt Security Registrar shall be responsible for ascertaining whether
any transfer hereunder complies with the registration provisions of or any

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exemptions from the Securities Act (under and as defined in the Declaration), applicable state
securities laws or the applicable laws of any other jurisdiction, ERISA, the United States Internal
Revenue Code of 1986, as amended, or the Investment Company Act (under and as defined in the
Declaration).

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

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

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

          THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY
NOR ANY INTEREST OR. PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER
OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY
ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM
NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO A “NON U.S.
PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO REGULATION S UNDER THE SECURITIES ACT, (D)
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) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY 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, OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH
THE INDENTURE, A COPY OF WHICH MAY BE

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OBTAINED FROM THE COMPANY. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL
COMPLY WITH THE FOREGOING RESTRICTIONS.

          THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS AND WARRANTS THAT IT WILL
NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS SECURITY UNLESS SUCH TRANSACTIONS ARE IN
COMPLIANCE WITH THE SECURITIES ACT OR AN APPLICABLE EXEMPTION THEREFROM.

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

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

          THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A PRINCIPAL 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 PRINCIPAL 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

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THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS
SECURITY.

          THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF
THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION. THIS OBLIGATION IS
SUBORDINATED TO THE CLAIMS OF DEPOSITORS AND THE
CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY, IS INELIGIBLE AS COLLATERAL FOR A LOAN BY
THE COMPANY OR ANY OF ITS SUBSIDIARIES
AND IS NOT SECURED.

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

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

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

          Every substituted Debt Security issued pursuant to the provisions of this Section
2.06 by virtue of the fact that any such Debt Security is destroyed, lost or stolen shall
constitute an additional contractual obligation of the Company, whether or not the destroyed, lost
or stolen Debt Security shall be found at any time, and shall be entitled to all the benefits of
this Indenture equally and proportionately with any and all other Debt Securities duly issued
hereunder. All Debt Securities shall be held and owned upon the express condition that, to the
extent permitted by applicable law, the foregoing provisions are exclusive with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Debt Securities and shall preclude
any and all other rights or remedies notwithstanding any law or statute existing or hereafter
enacted to the

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contrary with respect to the replacement or payment of negotiable instruments or other securities
without their surrender.

     SECTION 2.07. Temporary Debt Securities.

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

     SECTION 2.08. Payment of Interest.

          Each Debt Security will bear interest at the then applicable Interest Rate from and including each
Interest Payment Date or, in the case of the first Interest Payment Period, the original date of
issuance of such Debt Security to, but excluding, the next succeeding Interest Payment Date or, in
the case of the last Interest Payment Period, the Redemption Date, Special Redemption Date or
Maturity Date, as applicable, on the principal thereof, on any overdue principal and (to the extent
that payment of such interest is enforceable under applicable law) on Deferred Interest and on any
overdue installment of interest (including Defaulted Interest), payable (subject to the provisions
of Article XII) on each Interest Payment Date commencing on September 15, 2006. Interest and any
Deferred Interest on any Debt Security that is payable, and is punctually paid or duly provided for
by the Company, on any Interest Payment Date shall be paid to the Person in whose name said Debt
Security (or one or more Predecessor Securities) is registered at the close of business on the
regular record date for such interest installment, except that interest and any Deferred Interest
payable on the Maturity Date, the Redemption Date (to the extent redeemed) or the Special
Redemption Date, shall be paid to the Person to whom principal is paid. In the event that any Debt
Security or portion thereof is called for redemption and the redemption date is subsequent to a
regular record date with respect to any Interest Payment Date and either on or prior to such
Interest Payment Date, interest on such Debt Security will be paid upon presentation and surrender
of such Debt Security.

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

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

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

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

     SECTION 2.09. Cancellation of Debt Securities Paid, etc.

          All Debt Securities surrendered for the purpose of payment, redemption, exchange or registration of
transfer, shall, if surrendered to the Company or any Paying Agent, be surrendered to the Trustee
and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled by it,
and no Debt Securities shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. The Trustee shall dispose of all canceled Debt Securities in
accordance with its customary practices, unless the Company

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otherwise directs the Trustee in writing, in which case the Trustee shall dispose of such Debt
Securities as directed by the Company. If the Company shall acquire any of the Debt Securities,
however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness
represented by such Debt Securities unless and until the same are surrendered to the Trustee for
cancellation.

     SECTION 2.10. Computation of Interest.

          (a) The amount of interest payable for any Interest Payment Period will be computed on the basis of a
360-day year and the actual number of days elapsed in the relevant interest period; provided,
however, that upon the occurrence of a Special Event Redemption pursuant to Section 10.02 the
amounts payable pursuant to this Indenture shall be calculated as set forth in the definition of
Special Redemption Price.

          (b) LIBOR, for any Interest Payment Period, shall be determined by the Calculation Agent 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 March 15, June 15,
September 15 and December 15 (or, with respect to the first Interest Payment Period, on June 21,
2006) (each such day, a “LIBOR Determination Date” for the following Interest Payment Period), the
Calculation Agent shall obtain the rate for three-month U.S. Dollar deposits in Europe, which
appears on Telerate Page 3750 (as defined in the International Swaps and Derivatives Association,
Inc. 2000 Interest Rate and Currency Exchange Definitions) or such other page as may replace such
Telerate Page 3750 on the Moneyline Telerate, Inc. service (or such other service or services as
may be nominated by the British Banker’s Association as the information vendor for the purpose of
displaying London Interbank offered rates for U.S. dollar deposits), as of 11:00 a.m. (London time)
on such LIBOR Determination Date, and the rate so obtained shall be LIBOR for such Interest Payment
Period. “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 Boston, Massachusetts 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 the same LIBOR Determination Date, the
corrected rate as so substituted will be LIBOR for that Interest Payment Period.

     (2)
If, on any LIBOR Determination Date, such rate does not appear on Telerate Page 3750 or such other
page as may replace such Telerate Page 3750 on the Moneyline Telerate, Inc. service (or such other
service or services as may be nominated by the British Banker’s Association as the information
vendor for the purpose of displaying London Interbank offered rates for U.S. dollar deposits), the
Calculation Agent shall determine the arithmetic mean of the offered quotations of the Reference
Banks (as defined below) to leading banks in the

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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 the LIBOR Determination Date made by the Calculation Agent to the Reference Banks.
If, on
any LIBOR Determination Date, at least two of the Reference Banks provide such quotations, LIBOR
shall equal the arithmetic mean of such quotations. If, on any 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 the relevant LIBOR Determination Date for three-month U.S.
Dollar deposits in Europe at approximately 11:00 a.m. (London time) (in an amount determined by the
Calculation Agent). As used herein, “Reference Banks” means four major banks in the London
Interbank market selected by the Calculation Agent.

     (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 the applicable Interest Payment Period shall
be LIBOR in effect for the immediately preceding Interest Payment Period.

          (c) All percentages resulting from any calculations on the Debt Securities will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of
a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or
..0987655)), and all dollar amounts used in or resulting from such calculation will be rounded to
the nearest cent (with one-half cent being rounded upward).

          (d) As soon as practicable following each LIBOR Determination Date, but in no event later than the
30th day following such LIBOR Determination Date, the Calculation Agent shall notify, in writing,
the Company and the Paying Agent of the applicable Interest Rate in effect for the related Interest
Payment Period. The Calculation Agent shall, upon the request of the holder of any Debt Securities,
provide the Interest Rate then in effect. All calculations made by the Calculation Agent in the
absence of manifest error shall be conclusive for all purposes and binding on the Company and the
Holders of the Debt Securities. Any error in a calculation of the Interest Rate by the Calculation
Agent may be corrected at any time by the delivery of notice of such corrected Interest Rate as
provided above. The Paying Agent shall be entitled to rely on information received from the
Calculation Agent or the Company as to the Interest Rate. The Company shall, from time to time,
provide any necessary information to the Paying Agent relating to any original issue discount and
interest on the Debt Securities that is included in any payment and reportable for taxable income
calculation purposes. Failure to notify the Company, or the Paying Agent of the applicable Interest
Rate shall not affect the obligation of the Company to make payment on Debentures at such Interest
Rate.

     SECTION 2.11. Extension of Interest Payment Period.

          As long as it is acting in good faith, and so long as no Event of Default pursuant
to paragraphs (c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred and is continuing
the Company shall have the right, from time to time and without causing an Event of Default, to

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defer payments of interest on the Debt Securities by extending the interest distribution period on
the Debt Securities at any time and from time to time during the term of the Debt Securities, for
up to twenty consecutive quarterly periods (each such extended interest distribution period, an
“Extension Period”), during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). No Extension Period may end on a date other than
an Interest Payment Date. During any Extension Period, interest will continue to accrue on the Debt
Securities, and interest on such accrued interest (such accrued interest and interest thereon
referred to herein as “Deferred Interest”) will accrue at an annual rate equal to the Interest Rate
applicable during such Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent permitted by law. At
the end of any such Extension Period the Company shall pay all Deferred Interest then accrued and
unpaid on the Debt Securities; provided, however, that no Extension Period may extend beyond the
Maturity Date, Redemption Date (to the extent redeemed) or Special
Redemption Date; and provided
further, however, that during any such Extension Period, the Company shall be subject to the
restrictions set forth in Section 3.08 of this Indenture. Prior to the termination of any Extension
Period, the Company may further extend such period, provided, that such period together with all
such previous and further consecutive extensions thereof shall not exceed twenty consecutive
quarterly periods, or extend beyond the Maturity Date, Redemption Date (to the extent redeemed) or
Special Redemption Date. Upon the termination of any Extension Period and upon the payment of all
Deferred Interest, the Company may commence a new Extension Period, subject to the foregoing
requirements. No interest or Deferred Interest 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. The Company must give the Trustee notice of its election to begin any Extension Period or
extend an Extension Period (“Notice”) not later than the related regular record date for the
relevant Interest Payment Date. The Notice shall describe, in reasonable detail, why the Company
has elected to begin an Extension Period. The Notice shall acknowledge and affirm the Company’s
understanding that it is prohibited from issuing dividends and other distributions during the
Extension Period. Upon receipt of the Notice, an Initial Purchaser shall have the right, at its
sole discretion, to disclose the name of the Company, the fact that the Company has elected to
begin an Extension Period and other information that such Initial Purchaser, at its sole
discretion, deems relevant to the Company’s election to begin an Extension Period. The Trustee
shall give notice of the Company’s election to begin a new Extension Period to the Securityholders.

     SECTION 2.12. CUSIP Numbers.

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

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     SECTION 2.13. Income Tax Certification.

          As a condition to the payment of any principal of or interest on the Debt Securities without the
imposition of withholding tax, the Trustee shall require
the previous delivery of properly completed and signed applicable U.S. federal income tax
certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor form) in
the case of a person that is a “United States person” within the meaning of Section 7701 (a)(30) of
the Code (under and as defined in the Declaration) or an Internal Revenue Service Form W-8 (or
applicable successor form) in the case of a person that is not a “United States person” within the
meaning of Section 7701(a)(30) of the Code, and any other certification acceptable to it to enable
the Trustee or any Paying Agent to determine their respective duties and liabilities with respect
to any taxes or other charges that they may be required to pay, deduct or withhold in respect of
such Debt Securities.

ARTICLE III

PARTICULAR COVENANTS OF THE COMPANY

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

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

          (b) The Company and each of the Holders will treat the Debt Securities as indebtedness, and the
amounts, other than payments of principal, payable in respect of the principal amount of such Debt
Securities as interest, for all U.S. federal income tax purposes. All payments in respect of the
Securities will be made free and clear of U.S. withholding tax to any beneficial owner thereof that
has provided (i) an Internal Revenue Service Form W-9 or W-8BEN (or any substitute or successor
form) establishing its U.S. or non-U.S, status for U.S. federal income tax purposes, or and
establishing a complete exemption from U.S. withholding tax, or (ii) any other applicable form
establishing a complete exemption from U.S. withholding tax.

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

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

     SECTION 3.02. Offices for Notices and Payments, etc.

          So long as any of the Debt Securities remain outstanding, the Company will maintain in New York,
New York an office or agency where the Debt Securities may be presented for payment, an office or
agency where the Debt Securities may be presented for registration of transfer and for exchange as
provided in this Indenture and an office or agency where notices and demands to or upon the Company
in respect of the Debt Securities or of this Indenture may be served. The Company hereby appoints
the Trustee at U.S. Bank National Association, 100 Wall Street,
19th Floor, New York, New York
10005, Attention: Corporate Trust Services — County Statutory Trust III as such office or agency.
In case the Company shall fail to maintain any such office or agency in New York, New York or shall
fail to give such notice of the location or of any change in the location thereof, presentations
and demands may be made and notices may be served at the Principal Office of the Trustee.

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

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

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

     SECTION 3.04. Provision as to Paying Agent.

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

     (1) that it will hold all sums held by it as such agent for the payment of all payments due on the
Debt Securities (whether such sums have been paid to it

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by the Company or by any other obligor on the Debt Securities) in trust for the benefit of the
holders of the Debt Securities;

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

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

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

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

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

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

          (e) The Company hereby initially appoints the Trustee to act as Paying Agent (the “Paying Agent”).

     SECTION 3.05. Certificate to Trustee.

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

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     SECTION 3.06. Additional Interest.

          If and for so long as the Trust is the holder of all Debt Securities and is subject to or otherwise
required to pay, or is required to withhold from distributions to holders of Trust Securities, any
additional taxes (including withholding taxes), duties, assessments or other governmental charges
as a result of a Tax Event, the Company will pay such additional amounts (the “Additional
Interest”) on the Debt Securities as shall be required so that the net amounts received and
retained by the Trust for distribution to holders of Trust Securities after paying all taxes
(including withholding taxes), duties, assessments or other governmental charges will be equal to
the amounts the Trust would have received and retained for distribution to holders of Trust
Securities after paying all taxes (including withholding taxes on distributions to holders of Trust
Securities), duties, assessments or other governmental charges if no such additional taxes, duties,
assessments or other governmental charges had been imposed. Whenever in this Indenture or the Debt
Securities there is a reference in any context to the payment of principal of or premium, if any,
or interest on the Debt Securities, such mention shall be deemed to include mention of payments of
the Additional Interest provided for in this paragraph to the extent that, in such context,
Additional Interest is, was or would be payable in respect thereof pursuant to the provisions of
this paragraph and express mention of the payment of Additional Interest (if applicable) in any
provisions hereof shall not be construed as excluding Additional Interest in those provisions
hereof where such express mention is not made; provided, however, that, notwithstanding anything to
the contrary contained in this Indenture or any Debt Security, the deferral of the payment of
interest during an Extension Period pursuant to Section 2.11 shall not defer the payment of any
Additional Interest that may be due and payable.

     SECTION 3.07. Compliance with Consolidation Provisions.

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

     SECTION 3.08. Limitation on Dividends.

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

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

     SECTION 3.09. Covenants as to the Trust.

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

ARTICLE IV

LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

     SECTION 4.01. Securityholders’ Lists.

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

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

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

except that no such lists need be furnished under this Section 4.01 so long as the Trustee is in
possession thereof by reason of its acting as Debt Security registrar.

     SECTION 4.02. Preservation and Disclosure of Lists.

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

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

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

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

          If the Company shall elect not to afford such applicants access to such information, the Trustee
shall, upon the written request of such applicants, mail to each Securityholder of Debt Securities
whose name and address appear in the information preserved at the time by the Trustee in accordance
with the provisions of subsection (a) of this Section 4.02 a copy of the form of proxy or other
communication which is specified in such request with reasonable promptness after a tender to the
Trustee of the material to be mailed and of payment, or provision for the payment, of the
reasonable expenses of mailing, unless within five days after such tender, the Trustee shall mail
to such applicants, and file with the Securities and Exchange Commission, if permitted or required
by applicable law, together with a copy of the material to be mailed, a written statement of the
Company to the effect that such mailing would be contrary to the best interests of the holders of
all Debt Securities, as the
case may be, or would be in violation of applicable law. Such written statement shall specify the
basis of such opinion. If said

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Commission, as permitted or required by applicable law, after opportunity for a heating upon the
objections specified in the written statement so filed, shall enter an order refusing to sustain
any of such objections or if, after the entry of an order sustaining one or more of such
objections, said Commission shall find, after notice and opportunity for hearing, that all the
objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail
copies of such material to all such Securityholders with reasonable promptness after the entry of
such order and the renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

          (c) Each and every holder of Debt Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any Paying Agent shall be held
accountable by reason of the disclosure of any such information as to the names and addresses of
the holders of Debt Securities in accordance with the provisions of subsection (b) of this Section
4.02, regardless of the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request made under said
subsection (b).

     SECTION 4.03. Financial and Other Information.

          The Company shall deliver to each Securityholder (1) each Report on Form 10-K and Form 10-Q
prepared by the Company and filed with the Securities and Exchange Commission in accordance with
the Exchange Act within 7 days after the filing thereof, (2) if the Company 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 Company shall be required to provide within 45 days of the end of each calendar
quarterly period and 90 days after the end of each calendar year, the information required to be
provided by Rule 144A(d)(4) under the Securities Act and (3) within 30 days after the end
of the fiscal year of the Company, Form 1099 or such other annual U.S. federal income tax
information statement required by the Code containing such information with regard to the Debt
Securities held by such holder as is required by the Code and the income tax regulations of the
U.S. Treasury thereunder.

          The Company will cause copies of its regulatory reports to be delivered to the Holder promptly
following their filing with the Federal Reserve.

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF
DEFAULT

     SECTION 5.01. Events of Default.

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

          (a) the Company defaults in the payment of any interest upon any Debt Security when it becomes due
and payable (unless the Company has elected and may defer interest payments pursuant to Section
2.11), and continuance of such default for a period of 30 days; for the avoidance of doubt, an
extension of any interest distribution period by the Company

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in accordance with Section 2.11 of this Indenture shall not constitute a default under this clause
5.01(a); or

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

          (c)
the Company defaults in the payment of any interest upon any Debt Security when it becomes due
and payable following the nonpayment of any such interest for 20 or more consecutive quarterly
periods; or

          (d)
the Company defaults in the performance of, or breaches, any of its covenants or agreements in
Sections 3.06, 3.07, 3.08 or 3.09 of this Indenture (other than a covenant or agreement a default
in whose performance or whose breach is elsewhere in this Section specifically dealt with), and
continuance of such default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by
the holders of not less than 25% in aggregate principal amount of the outstanding Debt Securities,
a written notice specifying such default or breach and requiring it to be remedied and stating that
such notice is a “Notice of Default” hereunder; or

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

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

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

          If an Event of Default specified under clause (c) of this Section 5.01 occurs and is continuing
with respect to the Debt Securities, then, and in each and every such case, unless the principal of
the Debt Securities shall have already become due and payable, either the Trustee or the holders of
not less than 25% in aggregate principal amount of the Debt Securities then outstanding hereunder,
by notice in writing to the Company (and to the Trustee if given by

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Securityholders), may declare the entire principal of the Debt Securities and any premium and
interest accrued, but unpaid, thereon, if any, to be due and payable immediately, and upon any such
declaration the same shall become immediately due and payable. If an Event of Default specified
under clause (e) or (f) of this Section 5.01 occurs, then, in each and every such case, the entire
principal amount of the Debt Securities and any premium and interest accrued, but unpaid, thereon
shall ipso facto become immediately due and payable without further action. Notwithstanding
anything to the contrary in this Section 5.01, if at any time during the period in which this
Indenture remains in force and effect, the Company ceases or elects to cease to be subject to the
supervision and regulations of the Federal Reserve, OTS, OCC or similar regulatory authority
overseeing bank, thrift, savings and loan or financial holding companies or similar institutions
requiring specifications for the treatment of capital similar in nature to the capital adequacy
guidelines under the Federal Reserve rules and regulations, then the first sentence of this
paragraph shall be deemed to include clauses (a), (b) and (d) under this Section
5.01 as an Event of Default resulting in an acceleration of payment of the Debt Securities to the
same extent as provided herein for clause (c).

          With respect to clause (d) of this Section 5.01, the Company agrees that in the event of a breach
by the Company of its covenants or agreements mentioned therein, any remedy at law or in damages
may prove inadequate and therefore the Company agrees that the Trustee shall be entitled to
injunctive relief against the Company in the event of any breach or threatened breach by the
Company, in addition to any other relief (including damages) available to the Trustee under this
Indenture or under law.

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

          In case the Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such rescission or

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annulment or for any other reason or shall have been determined adversely to the Trustee, then and
in every such case the Company, the Trustee and the holders of the Debt Securities shall be
restored respectively to their several positions and rights hereunder, and all rights, remedies and
powers of the Company, the Trustee and the holders of the Debt Securities shall continue as though
no such proceeding had been taken.

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

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

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

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is hereby authorized by each of the Securityholders to make such payments to the Trustee, and, in
the event that the Trustee shall consent to the making of such payments directly to the
Securityholders, to pay to the Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Trustee, each predecessor Trustee and their respective agents, attorneys and
counsel, and all other amounts due to the Trustee under Section 6.06.

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

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

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

     SECTION 5.03. Application of Moneys Collected by Trustee.

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

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

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

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

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

     SECTION 5.04. Proceedings by Securityholders.

          No holder of any Debt Security shall have any right to institute any suit, action or proceeding for
any remedy hereunder, unless such holder previously shall have given to the

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

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

     SECTION 5.05. Proceedings by Trustee.

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

     SECTION 5.06. Remedies Cumulative and Continuing.

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

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

          The holders of a majority in aggregate principal amount of the Debt Securities affected (voting as
one class) at the time outstanding and, if the Debt Securities are held by the Trust or a trustee
of the Trust, the holders of a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to such Debt Securities; provided, however, that if the Debt Securities
are held by the Trust or a trustee of the Trust, such time, method and place or such exercise, as
the case may be, may not be so directed until the holders of a majority in aggregate liquidation
amount of the outstanding Capital Securities of the Trust shall have directed such time, method and
place or such exercise, as the case may be; provided, further, that (subject to the provisions of
Section 6.01) the Trustee shall have the fight to decline to follow any such direction if the
Trustee being advised by counsel shall determine that the action so directed would be unjustly
prejudicial to the holders not taking part in such direction or if the Trustee being advised by
counsel determines that the action or proceeding so directed may not lawfully be taken or if a
Responsible Officer of the Trustee shall determine that the action or proceedings so directed would
involve the Trustee in personal liability. Prior to any declaration
of acceleration, or ipso facto
acceleration, of the maturity of the Debt Securities, the holders of a majority in aggregate
principal amount of the Debt Securities at the time outstanding may on behalf of the holders of all
of the Debt Securities waive (or modify any previously granted waiver of) any past default or Event
of Default and its consequences, except a default (a) in the payment of principal of, premium, if
any, or interest on any of the Debt Securities, (b) in respect of covenants or provisions hereof
which cannot be modified or amended without the consent of the holder of each Debt Security
affected, or (c) in respect of the covenants contained in Section 3.09; provided, however, that if
the Debt Securities are held by the Trust or a trustee of the Trust, such waiver or modification to
such waiver shall not be effective until the holders of a majority in Liquidation Amount of the
Trust Securities of the Trust shall have consented to such waiver or modification to such waiver;
provided, further, that if the consent of the holder of each
outstanding Debt Security is required, such waiver or modification to such waiver shall not be
effective until each holder of the outstanding Capital Securities of the Trust shall have consented
to such waiver or modification to such waiver. Upon any such waiver or modification to such waiver,
the Default or Event of Default covered thereby shall be deemed to be cured for all purposes of
this Indenture and the Company, the Trustee and the holders of the Debt Securities shall be
restored to their former positions and fights hereunder, respectively; but no such waiver or
modification to such waiver shall extend to any subsequent or other Default or Event of Default or
impair any fight consequent thereon. Whenever any Default or Event of Default hereunder shall have
been waived as permitted by this Section 5.07, said Default or Event of Default shall for all
purposes of the Debt Securities and this Indenture be deemed to have been cured and to be not
continuing.

     SECTION 5.08. Notice of Defaults.

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

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appear upon the Debt Security Register, notice of all Defaults with respect to the Debt Securities
actually known to the Trustee, unless such defaults shall have been cured before the giving of such
notice (the term “defaults” for the purpose of this Section 5.08 being hereby defined to be the
events specified in subsections (a), (b), (c), (d), (e), (f) and (g) of Section 5.01, not including
periods of grace, if any, provided for therein); provided, that, except in the case of default in
the payment of the principal of, premium, if any, or interest on any of the Debt Securities, the
Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of
the Trustee in good faith determines that the withholding of such notice is in the interests of the
Securityholders.

     SECTION 5.09. Undertaking to Pay Costs.

          All parties to this Indenture agree, and each holder of any Debt Security by such holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in
any suit for the enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any
party litigant in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section 5.09 shall not apply to
any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding in the aggregate more than 10% in principal amount of the Debt Securities
(or, if such Debt Securities are held by the Trust or a trustee of the Trust, more than 10% in
liquidation amount of the outstanding Capital Securities), to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or premium, if any) or
interest on any Debt Security against the Company on or after the same shall have become due and
payable, or to any suit instituted in accordance with Section 14.12.

ARTICLE VI

CONCERNING THE TRUSTEE

     SECTION 6.01. Duties and Responsibilities of Trustee.

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

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

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

          (1)
the duties and obligations of the Trustee with respect to the Debt Securities shall be
determined solely by the express provisions of this Indenture, and the Trustee shall not be liable
except for the performance of such duties and obligations with respect to the Debt Securities as
are specifically set forth in this Indenture, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

          (2)
in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but, in the case of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine
the same to determine whether or not they conform on their face to the requirements of this
Indenture;

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

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

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

          (e)
in the absence of bad faith on the part of the Trustee, the Trustee may seek and rely on reasonable
instructions from the Company.

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

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     SECTION 6.02. Reliance on Documents, Opinions, etc.

          Except as otherwise provided in Section 6.01:

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

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

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

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

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

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

          (g)
the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents (including any Authenticating

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Agent) or
attorneys, and the Trustee shall not be responsible for any misconduct or negligence on
the part of any such agent or attorney appointed by it with due care.

     SECTION 6.03. No Responsibility for Recitals, etc.

          The recitals contained herein and in the Debt Securities (except in the certificate of
authentication of the Trustee or the Authenticating Agent) shall be taken as the statements of the
Company and the Trustee and the Authenticating Agent assume no responsibility for the correctness
of the same. The Trustee and the Authenticating Agent make no representations as to the validity or
sufficiency of this Indenture or of the Debt Securities. The Trustee and the Authenticating Agent
shall not be accountable for the use or application by the Company of any Debt Securities or the
proceeds of any Debt Securities authenticated and delivered by the Trustee or the Authenticating
Agent in conformity with the provisions of this Indenture.

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

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

     SECTION 6.05. Moneys to be Held in Trust.

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

     SECTION 6.06. Compensation and Expenses of Trustee.

          Other than as provided in the Fee Agreement of even date herewith between Cohen Bros. & Company,
the Trustee, and the Company, the Company covenants and agrees to pay to the Trustee from time to
time, and the Trustee shall be entitled to, such compensation as shall be agreed to in writing
between the Company and the Trustee (which shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust), and the Company will pay or reimburse the
Trustee upon its written request for all documented reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the reasonable expenses and disbursements of its counsel
and of all Persons not regularly in its employ) except any such expense, disbursement or advance
that arises from its negligence, willful misconduct or bad faith. The Company also covenants to
indemnify each of the Trustee (including in its individual capacity) and any predecessor Trustee
(and its officers, agents,

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directors and employees) for, and to hold it harmless against, any and all loss, damage, claim,
liability or expense including taxes (other than taxes based on the income of the Trustee), except
to the extent such loss, damage, claim, liability or expense results from the negligence, willful
misconduct or bad faith of such indemnitee, arising out of or in connection with the acceptance or
administration of this Trust, including the costs and expenses of defending itself against any
claim or liability in the premises. The obligations of the Company under this Section 6.06 to
compensate and indemnify the Trustee and to pay or reimburse the Trustee for documented expenses,
disbursements and advances shall constitute additional indebtedness hereunder. Such additional
indebtedness shall be secured by (and the Company hereby grants and pledges to the Trustee) a lien
prior to that of the Debt Securities upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of the holders of particular Debt Securities.

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

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

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

     SECTION 6.07. Officers’ Certificate as Evidence.

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

     SECTION 6.08. Eligibility of Trustee.

          The Trustee hereunder shall at all times be a U.S. Person that is a banking corporation or national
association organized and doing business under the laws of the United States of America or any
state thereof or of the District of Columbia and authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least fifty million U.S. dollars
($50,000,000) and subject to supervision or examination by federal, state, or

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District of Columbia authority. If such corporation or national association publishes reports of
condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section 6.08 the combined capital and surplus of
such
corporation or national association shall be deemed to be its combined capital and surplus as set
forth in its most recent records of condition so published.

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

          In case at any time the Trustee shall cease to be eligible in accordance with the provisions of
this Section 6.08, the Trustee shall resign immediately in the manner and with the effect specified
in Section 6.09.

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

     SECTION 6.09. Resignation or Removal of Trustee, Calculation Agent, Paying Agent or Debt
Security Registrar.

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

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

          (1)
the Trustee shall fail to comply with the provisions of the last paragraph of Section 6.08
after written request therefor by the Company or by any Securityholder who has been a bona fide
holder of a Debt Security or Debt Securities for at least six months,

          (2)
the Trustee shall cease to be eligible in accordance with the provisions of Section 6.08 and shall
fail to resign after written request therefor by the Company or by any such Securityholder, or

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          (3)
the Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,

     then, in any such case, the Company may remove the Trustee and appoint a successor Trustee by
written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor Trustee, or,
subject to the provisions of Section 5.09, if no successor Trustee shall have been so appointed and
have accepted appointment within 30 days of the occurrence of any of (1),
(2) or (3) above, any Securityholder who has been a bona fide holder of a Debt Security or Debt
Securities for at least six months may, on behalf of himself or herself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee. Such court may thereupon, after such notice, if any, as it may
deem proper and prescribe, remove the Trustee and appoint a successor Trustee.

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

          (d)
Any resignation or removal of the Trustee, the Calculation Agent, the Paying Agent and any
Debt Security Registrar and appointment of a successor pursuant to any of the provisions of this
Section 6.09 shall become effective upon acceptance of appointment by the successor as provided in
Section 6.10.

     SECTION 6.10. Acceptance by Successor.

          Any successor Trustee, Calculation Agent, Paying Agent or Debt Security Registrar appointed as
provided in Section 6.09 shall execute, acknowledge and deliver to the Company and to its
predecessor an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the retiring party shall become effective and such successor, without any further act,
deed or conveyance, shall become vested with all the rights, powers, duties and obligations with
respect to the Debt Securities of its predecessor hereunder, with like effect as if originally
named herein; but, nevertheless, on the written request of the Company or of the successor, the
party ceasing to act shall, upon payment of the amounts then due it pursuant to the provisions of
Section 6.06, execute and deliver an instrument transferring to such successor all the rights and
powers of the party so ceasing to act and shall duly assign, transfer and deliver to such successor
all property and money held by such retiring party hereunder. Upon reasonable request of any such
successor, the Company shall execute any and all insmmaents in writing for more fully and certainly
vesting in and confirming to such successor all such rights and powers. Any party ceasing to act
shall, nevertheless, retain a lien

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upon all property or funds held or collected to secure any amounts then due it pursuant to the
provisions of Section 6.06.

          If a successor Trustee is appointed, the Company, the retiring Trustee and the successor Trustee
shall execute and deliver an indenture supplemental hereto which shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of
the retiring Trustee with respect to the Debt Securities as to which the predecessor Trustee is not
retiring shall continue to be vested in the predecessor Trustee, and shall add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the Trust hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be Trustee of a trust or trusts hereunder separate and apart
from any trust or trusts hereunder administered by any other such Trustee.

          No successor Trustee shall accept appointment as provided in this Section 6.10 unless at the time
of such acceptance such successor Trustee shall be eligible and qualified under the provisions of
Section 6.08.

          In no event shall a retiring Trustee, Calculation Agent, Paying Agent or Debt Security Registrar be
liable for the acts or omissions of any successor hereunder.

          Upon acceptance of appointment by a successor Trustee, Calculation Agent, Paying Agent or Debt
Security Registrar as provided in this Section 6.10, the Company shall mail notice of the
succession to the holders of Debt Securities at their addresses as they shall appear on the Debt
Security Register. If the Company fails to mail such notice within ten Business Days after the
acceptance of appointment by the successor, the successor shall cause such notice to be mailed at
the expense of the Company.

     SECTION 6.11. Succession by Merger, etc.

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

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

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predecessor Trustee or authenticate Debt Securities in the name of any predecessor Trustee shall
apply only to its successor or successors by merger, conversion or consolidation.

     SECTION 6.12. Authenticating Agents.

          There may be one or more Authenticating Agents appointed by the Trustee upon the request of the
Company with power to act on its behalf and subject to its direction in the authentication and
delivery of Debt Securities issued upon exchange or registration of transfer thereof as fully to
all intents and purposes as though any such Authenticating Agent had been expressly authorized to
authenticate and deliver Debt Securities; provided, that the Trustee shall have no liability to the
Company for any acts or omissions of the Authenticating Agent with respect to the authentication
and delivery of Debt Securities. Any such Authenticating Agent shall at all times be a Person
organized and doing business under the laws of the United States or of any state or territory
thereof or of the District of Columbia authorized under such laws to act as Authenticating Agent,
having a combined capital and surplus of at least $50,000,000 and being subject to supervision or
examination by federal, state, territorial or District of Columbia authority. If such Person
publishes reports of condition at least annually pursuant to law or the requirements of such
authority, then for the purposes of this Section 6.12 the combined capital and surplus of such
Person shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, it shall resign immediately in the manner and
with the effect herein specified in this Section.

          Any Person into which any Authenticating Agent may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, consolidation or conversion to which any
Authenticating Agent shall be a party, or any Person succeeding to all or substantially all of the
corporate trust business of any Authenticating Agent, shall be the successor of such Authenticating
Agent hereunder, if such successor Person is otherwise eligible under this Section 6.12 without the
execution or filing of any paper or any further act on the part of the parties hereto or such
Authenticating Agent.

          Any Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of any Authenticating
Agent with respect to the Debt Securities by giving written notice of termination to such
Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent shall cease to be eligible under this
Section 6.12, the Trustee may, and upon the request of the Company shall, promptly appoint a
successor Authenticating Agent eligible under this Section 6.12, shall give written notice of such
appointment to the Company and shall mail notice of such appointment to all holders of Debt
Securities as the names and addresses of such holders appear on the Debt Security Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested
with all rights, powers, duties and responsibilities with respect to the Debt Securities of its
predecessor hereunder, with like effect as if originally named as Authenticating Agent herein.

          Other than as provided in the Fee Agreement of even date herewith between Cohen Bros. & Company,
the Company, and the Trustee, the Company agrees to pay to any

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Authenticating Agent from time to time reasonable compensation for its services. Any Authenticating
Agent shall have no responsibility or liability for any action taken by it as such in accordance
with the directions of the Trustee and shall receive such reasonable indemnity as it may require
against the costs, expenses and liabilities incurred in furtherance of its duties under this
Section 6.12.

ARTICLE VII

CONCERNING THE SECURITYHOLDERS

     SECTION 7.01. Action by Security,holders.

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

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

     SECTION 7.02. Proof of Execution by Securityholders.

          Subject to the provisions of Sections 6.01, 6.02 and 8.05, proof of the execution of any instrument
by a Securityholder or such Securityholder’s agent or proxy shall be sufficient

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if made in accordance with such reasonable rules and regulations as may be prescribed by the
Trustee or in such manner as shall be satisfactory to the Trustee. The ownership of Debt Securities
shall be proved by the Debt Security Register or by a certificate of the Debt Security Registrar.
The Trustee may require such additional proof of any matter referred to in this Section as it shall
deem necessary.

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

     SECTION 7.03. Who Are Deemed Absolute Owners.

          Prior to due presentment for registration of transfer of any Debt Security, the Company, the
Trustee, any Authenticating Agent, any Paying Agent, any transfer agent and any Debt Security
registrar may deem the Person in whose name such Debt Security shall be registered upon the Debt
Security Register to be, and may treat such Person as, the absolute owner of such Debt Security
(whether or not such Debt Security shall be overdue) for the purpose of receiving payment of or on
account of the principal of, premium, if any, and interest on such Debt Security and for all other
purposes; and neither the Company nor the Trustee nor any Authenticating Agent nor any Paying Agent
nor any transfer agent nor any Debt Security registrar shall be affected by any notice to the
contrary. All such payments so made to any holder for the time being or upon such holder’s order
shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge
the liability for moneys payable upon any such Debt Security.

     SECTION 7.04. Debt Securities Owned by Company Deemed Not Outstanding.

          In determining whether the holders of the requisite aggregate principal amount of Debt Securities
have concurred in any direction, consent or waiver under this Indenture, Debt Securities which are
owned by the Company or any other obligor on the Debt Securities or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the Company
(other than the Trust) or any other obligor on the Debt Securities shall be disregarded and deemed
not to be outstanding for the purpose of any such determination; provided, that for the purposes of
determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver, only Debt Securities which a Responsible Officer of the Trustee actually knows are so owned
shall be so disregarded. Debt Securities so owned which have been pledged in good faith may be
regarded as outstanding for the purposes of this Section 7.04 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right to vote such Debt Securities and that the pledgee
is not the Company or any such other obligor or Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any such other
obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the
advice of counsel shall be full protection to the Trustee.

     SECTION 7.05. Revocation of Consents; Future Securityholders Bound.

          At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 7.01, of
the taking of any action by the holders of the percentage in aggregate principal amount of the Debt
Securities specified in this Indenture in connection with such action, any

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

ARTICLE VIII

SECURITYHOLDERS’ MEETINGS

     SECTION 8.01. Purposes of Meetings.

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

          (a)
to give any notice to the Company or to the Trustee, or to give any directions to the Trustee, or
to consent to the waiving of any default hereunder and its consequences, or to take any other
action authorized to be taken by Securityholders pursuant to any of the provisions of Article V;

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

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

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

     SECTION 8.02. Call of Meetings by Trustee.

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

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     SECTION 8.03. Call of Meetings by Company or Securityholders.

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

     SECTION 8.04. Qualifications for Voting.

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

     SECTION 8.05. Regulations.

          Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Securityholders, in regard to proof of the
holding of Debt Securities and of the appointment of proxies, and in regard to the appointment and
duties of inspectors of votes, the submission and examination of proxies, certificates and other
evidence of the right to vote, and such other matters concerning the conduct of the meeting as it
shall deem appropriate.

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

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

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     SECTION 8.06. Voting.

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

     SECTION 8.07. Quorum; Actions.

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

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

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Indenture expressly provides may be given by the holders of not less than a specified percentage in
outstanding principal amount of the Debt Securities may be adopted at a meeting or an adjourned
meeting duly reconvened and at which a quorum is present as aforesaid only by the affirmative vote
of the holders of not less than such specified percentage in outstanding principal amount of the
Debt Securities.

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

     SECTION 8.08. Written Consent Without a Meeting.

          Whenever under this Indenture, Securityholders are required or permitted to take any action by
vote, such action may be taken without a meeting on written consent, setting forth the action so
taken, signed by the Securityholders of all outstanding Debt Securities entitled to vote thereon.
No consent shall be effective to take the action referred to therein unless, within sixty days of
the earliest dated consent delivered in the manner required by this paragraph to the Trustee,
written consents signed by a sufficient number of Securityholders to take action are delivered to
the Trustee at its Principal Office. Delivery made to the Trustee at its Principal Office, shall be
by hand or by certificated or registered mail, return receipt requested. Written consent thus given
by the Securityholders of such number of Debt Securities as is required hereunder, shall have the
same effect as a valid vote of Securityholders of such number of Debt Securities.

ARTICLE IX

SUPPLEMENTAL INDENTURES

     SECTION 9.01. Supplemental Indentures without Consent of Securityholders.

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

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

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

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immediate enforcement upon such default or may limit the remedies available to the Trustee upon
such default;

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

          (d)
to add to, delete from, or revise the terms of Debt Securities, including, without limitation,
any terms relating to the issuance, exchange, registration or transfer of Debt Securities,
including to provide for transfer procedures and restrictions substantially similar to those
applicable to the Capital Securities, as required by Section 2.05 (for purposes of assuring that no
registration of Debt Securities is required under the Securities Act of 1933, as amended);
provided, that any such action shall not adversely affect the interests of the holders of the Debt
Securities then outstanding (it being understood, for purposes of this proviso, that transfer
restrictions on Debt Securities substantially similar to those applicable to Capital Securities
shall not be deemed to adversely affect the holders of the Debt Securities);

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

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

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

          The Trustee is hereby authorized to join with the Company in the execution of any such supplemental
indenture, to make any further appropriate agreements and stipulations which may be therein
contained and to accept the conveyance, transfer and assignment of any property thereunder, but the
Trustee shall not be obligated to, but may in its discretion, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

          Any supplemental indenture authorized by the provisions of this Section 9.01 may be executed by the
Company and the Trustee without the consent of the holders of any of the Debt Securities at the
time outstanding, notwithstanding any of the provisions of Section 9.02.

     SECTION 9.02. Supplemental Indentures with Consent of Securityholders.

          With the consent (evidenced as provided in Section 7.01) of the holders of not less than a majority
in aggregate principal amount of the Debt Securities at the time outstanding affected by such
supplemental indenture, the Company, when authorized by a Board Resolution,

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

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

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

          It shall not be necessary for the consent of the Securityholders under this Section

9.02 to approve the particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof.

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     SECTION 9.03. Effect of Supplemental Indentures.

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

     SECTION 9.04. Notation on Debt Securities.

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

     SECTION 9.05. Evidence of Compliance of Supplemental Indenture to be furnished to Trustee.

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

ARTICLE X

REDEMPTION OF SECURITIES

     SECTION 10.01. Optional Redemption.

          At any time the Company shall have the right, subject to the receipt by the Company of prior
approval from any regulatory authority with jurisdiction over the Company if such approval is then
required under applicable capital guidelines or policies of such regulatory authority, to redeem
the Debt Securities, in whole or (provided that all accrued and unpaid interest has been paid on
all Debt Securities for all Interest Payment Periods terminating on or prior to such date) from
time to time in part, on any March 15, June 15, September 15 or December 15 on or after September
15, 2011 (the “Redemption Date”), at the Redemption Price.

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     SECTION 10.02. Special Event Redemption.

          If a Special Event shall occur and be continuing, the Company shall have the right, subject to the
receipt by the Company of prior approval from any regulatory authority with jurisdiction over the
Company if such approval is then required under applicable capital guidelines or policies of such
regulatory authority, to redeem the Debt Securities, in whole or in part, at any time within 90
days following the occurrence of such Special Event (the “Special Redemption Date”), at the Special
Redemption Price.

     SECTION 10.03. Notice of Redemption; Selection of Debt Securities.

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

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

          Prior to 10:00 a.m. New York City time on the Redemption Date or the Special Redemption Date
specified in the notice of redemption given as provided in this Section, the Company will deposit
with the Trustee or with one or more Paying Agents an amount of money sufficient to redeem on the
redemption date all the Debt Securities so called for redemption at the appropriate redemption
price, together with unpaid interest accrued to such date.

          The Company will give the Trustee notice not less than 45 nor more than 60 days prior to the
Redemption Date as to the Redemption Price at which the Debt Securities are to be redeemed and the
aggregate principal amount of Debt Securities to be redeemed and the Trustee shall select, in such
manner as in its sole discretion it shall deem appropriate and fair, the Debt Securities or
portions thereof (in integral multiples of $1,000) to be redeemed.

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     SECTION 10.04. Payment of Debt Securities Called for Redemption.

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

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

ARTICLE XI

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

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

          Nothing contained in this Indenture or in the Debt Securities shall prevent any consolidation or
merger of the Company with or into any other corporation or corporations (whether or not affiliated
with the Company) or successive consolidations or mergers in which the Company or its successor or
successors, shall be a party or parties, or shall prevent any sale, conveyance, transfer or other
disposition of all or substantially all of the property or capital stock of the Company or its
successor or successors, to any other corporation (whether or not affiliated with the Company, or
its successor or successors) authorized to acquire and operate the same; provided, however, that
the Company hereby covenants and agrees that, (i) upon any such consolidation, merger (where the
Company is not the surviving corporation), sale, conveyance, transfer or other disposition, the
successor entity shall be a corporation organized and existing under the laws of the United States
or any state thereof or the District of Columbia (unless such corporation has (1) agreed to make
all payments due in respect of the Debt Securities or, if outstanding, the Capital Securities and
Capital Securities Guarantee without withholding or deduction for, or on account of, any taxes,
duties, assessments or other governmental charges under the laws or regulations of the jurisdiction
of organization or residence (for tax purposes) of such corporation or any political subdivision or
taxing authority thereof or therein unless required by applicable law, in which case such
corporation shall have agreed to pay such additional amounts as shall be required so that the net
amounts received and retained by the holders of such Debt Securities or Capital Securities, as the
case may be, after payment of all taxes (including withholding taxes), duties, assessments or other
governmental charges, will be

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equal to the amounts that such holders would have received and retained had no such taxes
(including withholding taxes), duties, assessments or other governmental charges been imposed,
(2) irrevocably and unconditionally consented and submitted to the jurisdiction of any United
States federal court or New York state court, in each case located in The City of New York, Borough
of Manhattan, in respect of any action, suit or proceeding against it arising out of or in
connection with this Indenture, the Debt Securities, the Capital Securities Guarantee or the
Declaration and irrevocably and unconditionally waived, to the fullest extent permitted by law, any
objection to the laying of venue in any such court or that any such action, suit or proceeding has
been brought in an inconvenient forum and (3) irrevocably appointed an agent in The City of New
York for service of process in any action, suit or proceeding referred to in clause (2) above) and
such corporation expressly assumes all of the obligations of the Company under the Debt Securities,
this Indenture, the Capital Securities Guarantee and the Declaration and (ii) after giving effect
to any such consolidation, merger, sale, conveyance, transfer or other disposition, no Default or
Event of Default shall have occurred and be continuing.

     SECTION 11.02. Successor Entity to be Substituted.

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

     SECTION 11.03. Opinion of Counsel to be Given to Trustee.

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

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ARTICLE XII

SATISFACTION AND DISCHARGE OF INDENTURE

     SECTION 12.01. Discharge of Indenture.

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

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

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

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     SECTION 12.03. Paying Agent to Repay Moneys Held.

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

     SECTION 12.04. Return of Unclaimed Moneys.

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

ARTICLE XIII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

     SECTION 13.01. Indenture and Debt Securities Solely Corporate Obligations.

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

ARTICLE XIV

MISCELLANEOUS PROVISIONS

     SECTION 14.01. Successors.

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

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     SECTION 14.02. Official Acts by Successor Entity.

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

     SECTION 14.03. Surrender of Company Powers.

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

     SECTION 14.04. Addresses for Notices, etc.

          Any notice or demand which by any provision of this Indenture is required or permitted to be given
or served by the Trustee or by the Securityholders on the Company may be given or served in
writing, duly signed by the party giving such notice, and shall be delivered, by facsimile (which
shall be followed by notice delivered or mailed by first class mail) or mailed by first class mail
to the Company at:

Capital Corp of the West

550 West Main Street

Merced, California 95340

Attention: Janey Cabral

          Any notice, direction, request or demand by any Securityholder or the Company to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made
in writing at the office of U.S. Bank National Association at:

One
Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attn: Corporate Trust Services — County Statutory Trust III

     SECTION
14.05. Governing Law.

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

     SECTION 14.06. Evidence of Compliance with Conditions Precedent.

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

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

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

     SECTION 14.07. Non-Business Days.

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

     SECTION 14.08. Table of Contents, Headings, etc.

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

     SECTION 14.09. Execution in Counterparts.

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

     SECTION 14.10. Severability.

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

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     SECTION 14.11. Assignment.

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

     SECTION 14.12. Acknowledgment of Rights.

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

ARTICLE XV

SUBORDINATION OF DEBT SECURITIES

     SECTION 15.01. Agreement to Subordinate.

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

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

incurred.

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

     SECTION 15.02. Default on Senior Indebtedness.

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

          In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee when
such payment is prohibited by the preceding paragraph of this Section 15.02, such payment shall,
subject to Section 15.06, be held in trust for the benefit of, and shall be paid over or delivered
to, the holders of Senior Indebtedness or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Senior Indebtedness may have been
issued, as their respective interests may appear, but only to the extent that the holders of the
Senior Indebtedness (or their representative or representatives or a trustee) notify the Trustee in
writing within 90 days of such payment of the amounts then due and owing on the Senior Indebtedness
and only the amounts specified in such notice to the Trustee shall be paid to the holders of Senior
Indebtedness.

     SECTION 15.03. Liquidation; Dissolution; Bankruptcy.

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

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

          For purposes of this Article XV, the words “cash, property or securities” shall not be deemed to
include shares of stock of the Company as reorganized or readjusted, or securities of the Company
or any other corporation provided for by a plan of reorganization or readjustment, the payment of
which is subordinated at least to the extent provided in this Article XV with respect to the Debt
Securities to the payment of all Senior Indebtedness of the Company, that may at the time be
outstanding, provided, that (a) such Senior Indebtedness is assumed by the new corporation, if any,
resulting from any such reorganization or readjustment, and (b) the rights of the holders of such
Senior Indebtedness are not, without the consent of such holders, altered by such reorganization or
readjustment. The consolidation of the Company with, or the merger of the Company into, another
corporation or the liquidation or dissolution of the Company following the conveyance, transfer or
other disposition of its property as an entirety, or substantially as an entirety, to another
corporation upon the terms and conditions provided for in Article XI of this Indenture shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section
15.03 if such other corporation shall, as a part of such consolidation, merger, conveyance or
transfer, comply with the conditions stated in Article XI of this Indenture. Nothing in Section
15.02 or in this Section 15.03 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.06 of this Indenture.

     SECTION 15.04. Subrogation.

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

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

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

     SECTION 15.05. Trustee to Effectuate Subordination.

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

     SECTION 15.06. Notice by the Company.

          The Company shall give prompt written notice to a Responsible Officer of the Trustee at the
Principal Office of the Trustee of any fact known to the Company that would prohibit the making of
any payment of moneys to or by the Trustee in respect of the Debt Securities pursuant to the
provisions of this Article XV. Notwithstanding the provisions of this Article XV or any other
provision of this Indenture or any Additional Provisions, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any payment of moneys to
or by the Trustee in respect of the Debt Securities pursuant to the provisions of this Article XV,
unless and until a Responsible Officer of the Trustee at the Principal Office of the Trustee shall
have received written notice thereof from the Company or a holder or holders of Senior Indebtedness
or from any trustee therefor; and before the receipt of any such written notice, the Trustee,
subject to the provisions of Article VI of this Indenture, shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall not have received the
notice provided for in this Section 15.06 at least two Business Days prior to the date upon which
by the terms hereof any money may become payable for any

-60-

 

purpose (including, without limitation, the payment of the principal of (or premium, if any) or
interest on any Debt Security), then, anything herein contained to the contrary notwithstanding,
the Trustee shall have full power and authority to receive such money and to apply the same to the
purposes for which they were received, and shall not be affected by any notice to the contrary that
may be received by it within two Business Days prior to such date.

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

     SECTION 15.07. Rights of the Trustee, Holders of Senior Indebtedness.

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

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

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

     SECTION 15.08. Subordination May Not Be Impaired.

          No right of any present or future holder of any Senior Indebtedness of the Company to enforce
subordination as herein provided shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of the Company, or by any act or failure to act, in good faith, by
any such holder, or by any noncompliance by the Company, with the terms,

-61-

 

provisions and covenants of this Indenture, regardless of any knowledge thereof that any such
holder may have or otherwise be charged with.

          Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness of the Company may, at any time and from time to time, without the consent of or
notice to the Trustee or the Securityholders, without incurring responsibility to the
Securityholders and without impairing or releasing the subordination provided in this Article XV or
the obligations hereunder of the holders of the Debt Securities to the holders of such Senior
Indebtedness, do any one or more of the following: (a) change the manner, place or terms of payment
or extend the time of payment of, or renew or alter, such Senior Indebtedness, or otherwise amend
or supplement in any manner such Senior Indebtedness or any instrument evidencing the same or any
agreement under which such Senior Indebtedness is outstanding;

(b) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise
securing such Senior Indebtedness; (c) release any Person liable in any manner for the collection
of such Senior Indebtedness; and (d) exercise or refrain from exercising any rights against the
Company, and any other Person.

          U.S. Bank National Association, in its capacity as Trustee, hereby accepts the trusts in this
Indenture declared and provided, upon the terms and conditions herein above set forth.

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

	 	 	 	 	 	 	 
	 	 	Capital Corp of the West	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Hawken
 

	 	 
	 

	 	Name:
	 	Thomas Hawken
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	President/ CEO	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. Bank National Association, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Paul D. Allen	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Paul D. Allen	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

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EXHIBIT A

FORM OF JUNIOR SUBORDINATED DEBT SECURITY

DUE 2036

[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 BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (C) TO A “NON U.S. PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO
REGULATION S UNDER THE SECURITIES ACT, (D) 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) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY 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, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY
BE OBTAINED FROM THE COMPANY. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT
WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS AND WARRANTS THAT IT WILL
NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS SECURITY UNLESS SUCH TRANSACTIONS ARE IN
COMPLIANCE WITH THE SECURITIES ACT OR AN APPLICABLE EXEMPTION THEREFROM.

A-1

 

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

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

     THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A PRINCIPAL 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 PRINCIPAL 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 FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON
THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS
SECURITY.

     THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF
THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION. THIS OBLIGATION IS
SUBORDINATED TO THE CLAIMS OF DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE
COMPANY, IS INELIGIBLE AS COLLATERAL

A-2

 

FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES AND IS NOT SECURED.

A-3

 

Form of Junior Subordinated Debt Security due 2036

of

Capital Corp of the West

     Capital Corp of the West, a bank holding company incorporated in California (the “Company”), for
value received promises to pay to U.S. Bank National Association, not in its individual capacity
but solely as Institutional Trustee for County Statutory Trust III, a Connecticut statutory trust
(the “Holder”), or registered assigns, the principal sum of Fifteen Million Four Hundred Sixty Four
Thousand Dollars on September 15, 2036 and to pay interest on said principal sum from June 23,
2006, or from the most recent interest payment date (each such date, an “Interest Payment Date”) to
which interest has been paid or duly provided for, quarterly (subject to deferral as set forth
herein) in arrears on March 15, June 15, September 15 and December 15 of each year commencing
September 15, 2006, at a variable per annum rate equal to LIBOR (as defined in the Indenture) plus
1.59% (the “Interest Rate”) (provided, however, that the Interest Rate for any Interest Payment
Period may not exceed the highest rate permitted by New York law, as the same may be modified by
United States law of general applicability) until the principal hereof shall have become due and
payable, and on any overdue principal and (without duplication and to the extent that payment of
such interest is enforceable under applicable law) on any overdue installment of interest at an
annual rate equal to the Interest Rate in effect for each such Extension Period compounded
quarterly. The amount of interest payable on any Interest Payment Date shall be computed on the
basis of a 360-day year and the actual number of days elapsed in the relevant interest period.
Notwithstanding anything to the contrary contained herein, if any Interest Payment Date, other than
on the Maturity Date, any Redemption Date or the Special Redemption Date, falls on a day that is
not a Business Day, then any interest payable will be paid on, and such Interest Payment Date will
be moved to, the next succeeding Business Day, and additional interest will accrue for each day
that such payment is delayed as a result thereof. If the Maturity Date, any Redemption Date or the
Special Redemption Date falls on a day that is not a Business Day, then the principal, premium, if
any, and/or interest payable on such date will be paid on the next succeeding Business Day, and no
additional interest will accrue in respect of such payment made on such next succeeding Business
Day (except that, if such Business Day falls in the next calendar year, such payment will be made
on the immediately preceding Business Day). The interest installment so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid
to the Person in whose name this Debt Security (or one or more Predecessor Securities, as defined
in said Indenture) is registered at the close of business on the regular record date for such
interest installment, except that interest and any Deferred Interest payable on the Maturity Date
shall be paid to the Person to whom principal is paid. Any such interest installment not punctually
paid or duly provided for shall forthwith cease to be payable to the registered holders on such
regular record date and may be paid to the Person in whose name this Debt Security (or one or more
Predecessor Debt Securities) is registered at the close of business on a special record date to be
fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be given to
the registered holders of the Debt Securities not less than 10 days prior to such special record
date, all as more fully provided in the Indenture. The principal of and interest on this Debt
Security shall be payable at the office or agency of the Trustee (or other Paying Agent appointed
by the Company) maintained for that purpose in any coin or

A-4

 

currency of the United States of America that at the time of payment is legal tender for payment of
public and private debts; provided, however, that payment of interest may be made at the option of
the Company by check mailed to the registered holder at such address as shall appear in the Debt
Security Register or by wire transfer of immediately available funds to an account appropriately
designated by the holder hereof. Notwithstanding the foregoing, so long as the holder of this Debt
Security is the Institutional Trustee, payment .of the principal of and premium, if any, and
interest on this Debt Security shall be made in immediately available funds when due at such place
and to such account as may be designated by the Institutional Trustee. All payments in respect of
this Debt Security shall be payable in any coin or currency of the United States of America that at
the time of payment is legal tender for payment of public and private debts.

     Upon submission of Notice (as defined in the Indenture) and so long as no Event of Default pursuant
to paragraphs (c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred and is continuing
the Company shall have the right, from time to time and without causing an Event of Default, to
defer payments of interest on the Debt Securities by extending the interest distribution period on
the Debt Securities at any time and from time to time during the term of the Debt Securities, for
up to 20 consecutive quarterly periods (each such extended interest distribution period, an
“Extension Period”), during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). During any Extension Period, interest will
continue to accrue on the Debt Securities, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as “Deferred Interest”) will accrue at an annual
rate equal to the Interest Rate applicable during such Extension Period, compounded quarterly from
the date such Deferred Interest would have been payable were it not for the Extension Period, to
the extent permitted by law. No Extension Period may end on a date other than an Interest Payment
Date. At the end of any such Extension Period the Company shall pay all Deferred Interest then
accrued and unpaid on the Debt Securities; provided, however, that no Extension Period may extend
beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption Date; and
provided, further, however, during any such Extension Period, the Company may not (i) declare or
pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Company’s capital stock or (ii) make any payment of principal of or
premium, if any, or interest on or repay, repurchase or redeem any debt securities of the Company
that rank pari passu in all respects with or junior in interest to the Debt Securities or (iii)
make any payment under any guarantees of the Company that rank in all respects pari passu with or
junior in respect to the Capital Securities Guarantee (other than (a) repurchases, redemptions or
other acquisitions of shares of capital stock of the Company (A) in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of one or more
employees, officers, directors or consultants, (B) in connection with a dividend reinvestment or
stockholder stock purchase plan or (C) in connection with the issuance of capital stock of the
Company (or securities convertible into or exercisable for such capital stock), as consideration in
an acquisition transaction entered into prior to the applicable Extension Period, (b) as a result
of any exchange, reclassification, combination or conversion of any class or series of the
Company’s capital stock (or any capital stock of a subsidiary of the Company) for any class or
series of the Company’s capital stock or of any class or series of the Company’s indebtedness for
any class or series of the Company’s capital stock, (c) the purchase of fractional interests in
shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such

A-5

 

capital stock or the security being converted or exchanged, (d) any declaration of a dividend in
connection with any stockholder’s rights plan, or the issuance of rights, stock or other property
under any stockholder’s rights plan, or the redemption or repurchase of rights pursuant thereto, or
(e) any dividend in the form of stock, warrants, options or other rights where the dividend stock
or the stock issuable upon exercise of such warrants, options or other rights is the same stock as
that on which the dividend is being paid or ranks pari passu with or junior to such stock). Prior
to the termination of any Extension Period, the Company may further extend such Extension Period;
provided, that no Extension Period (including all previous and further consecutive extensions that
are part of such Extension Period) shall exceed 20 consecutive quarterly periods, or extend beyond
the Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption Date. Upon the
termination of any Extension Period and upon the payment of all Deferred Interest, the Company may
commence a new Extension Period, subject to the foregoing requirements. No interest or Deferred
Interest 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. The Company must give the
Trustee notice of its election to begin any Extension Period or extend an Extension Period
(“Notice”) not later than the related regular record date for the relevant Interest Payment Date.
The Notice shall describe why the Company has elected to begin an Extension Period. The Notice
shall acknowledge and affirm the Company’s understanding that it is prohibited from issuing
dividends and other distributions during the Extension Period. Upon receipt of the Notice, an
Initial Purchaser shall have the right, at its sole discretion, to disclose the name of the
Company, the fact that the Company has elected to begin an Extension Period and other information
that such Initial Purchaser, at its sole discretion, deems relevant to the Company’s election to
begin an Extension Period. The Trustee shall give notice of the Company’s election to begin a new
Extension Period to the Securityholders.

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

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

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

A-6

 

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

A-7

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Capital Corp of the West	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Dated:
                    , 2006

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	U.S. Bank National Association, not in its	 	 
	 	 	individual capacity but solely as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

Dated:                     ,
2006

A-8

 

[FORM OF REVERSE OF SECURITY]

     This Debt Security is one of a duly authorized series of Debt Securities of the Company, all
issued or to be issued pursuant to an Indenture (the “Indenture”), dated as of June 23, 2006, duly
executed and delivered between the Company and U.S. Bank National Association, as Trustee (the
“Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made
for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the holders of the Debt Securities (referred to herein
as the “Debt Securities”) of which this Debt Security is a part. The summary of the terms of this
Debt Security contained herein does not purport to be complete and is qualified by reference to
the Indenture.

     Upon the occurrence and continuation of a Tax Event, an Investment Company Event or a Capital
Treatment Event (each a “Special Event”), this Debt Security may become due and payable, in whole
or in part, at any time, within 90 days following the occurrence of such Tax Event, Investment
Company Event or Capital Treatment Event (the “Special Redemption Date”), as the case may be, at
the Special Redemption Price.

     The Company shall also have the right to redeem this Debt Security at the option of the
Company, in whole or in part, on any March 15, June 15, September 15 or December 15 on or after
September 15, 2011 (a “Redemption Date”), at the Redemption Price.

     Any redemption pursuant to either of the two preceding paragraphs will be made, subject to
the receipt by the Company of prior approval from any regulatory authority with jurisdiction over
the Company if such approval is then required under applicable capital guidelines or policies of
such regulatory authority, upon not less than 30 days’ nor more than 60 days’ notice. If the Debt
Securities are only partially redeemed by the Company, the Debt Securities will be redeemed
pro rata or by lot or by any other method utilized by the Trustee.

     “Redemption Price” means 100% of the principal amount of the Debt Securities being redeemed
plus accrued and unpaid interest on such Debt Securities to the Redemption Date.

     “Special Redemption Price” means, with respect to the redemption of any Debt Security
following a Special Event, an amount in cash equal to 103.525% of the principal amount of Debt
Securities to be redeemed prior to September 15, 2007 and thereafter equal to the percentage of the
principal amount of the Debt Securities that is specified below for the Special Redemption Date
plus, in each case, unpaid interest accrued thereon to the Special Redemption Date:

	 	 	 
	Special Redemption During the	 	 
	12-Month Period Beginning September 15	 	Percentage of Principal Amount
	2007
	 	103.140%
	2008
	 	102.355%
	2009
	 	101.570%
	2010
	 	100.785%
	2011 and thereafter
	 	100.000%

A-9

 

     In the event of redemption of this Debt Security in part only, a new Debt Security or Debt
Securities for the unredeemed portion hereof will be issued in the name of the holder hereof upon
the cancellation hereof.

     In certain cases where an Event of Default pursuant to paragraphs (c), (e), (f) or (g) of
Section 5.01 of the Indenture, shall have occurred and be continuing, the principal of all of the
Debt Securities may be declared, and, in certain cases, shall ipso facto become, due and payable,
and upon such declaration of acceleration shall become due and payable, in each case, in the
manner, with the effect and subject to the conditions provided in the Indenture.

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

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

A-10

 

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

     Prior to due presentment for registration of transfer of this Debt Security, the Company, the
Trustee, any Authenticating Agent, any Paying Agent, any transfer agent and the Debt Security
Registrar may deem and treat the registered holder hereof as the absolute owner hereof (whether or
not this Debt Security shall be overdue and notwithstanding any notice of ownership or writing
hereon) for the purpose of receiving payment of the principal of and premium, if any, and interest
on this Debt Security and for all other purposes, and neither the Company nor the Trustee nor any
Authenticating Agent nor any Paying Agent nor any transfer agent nor any Debt Security Registrar
shall be affected by any notice to the contrary.

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

     The Debt Securities are issuable only in registered certificated form without coupons. As
provided in the Indenture and subject to certain limitations herein and therein set forth, Debt
Securities are exchangeable for a like aggregate principal amount of Debt Securities of a
different authorized denomination, as requested by the holder surrendering the same.

     All terms used in this Debt Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THE DEBT SECURITIES, WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW).

A-11

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