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Exhibit 4.8    
    

EXECUTION COPY  

IMPAC
MORTGAGE HOLDINGS, INC.

as Issuer 

INDENTURE

Dated
as of October 18, 2005 

WILMINGTON
TRUST COMPANY

as Trustee 

FIXED/FLOATING
RATE JUNIOR SUBORDINATED DEBT SECURITIES DUE 2035 

 
 
 

TABLE OF CONTENTS    
    

	 
	 
	 	Page

	Parties	 	1
	Recitals	 	1
	Authorization of Indenture	 	1
	Compliance with Legal Requirements	 	1
	Purpose of and Consideration for Indenture	 	1
	

ARTICLE I

DEFINITIONS	
 	

 
	

Section 1.01.	

Definitions	
 	

1
	

ARTICLE II

DEBT SECURITIES	
 	

 
	

Section 2.01.	

Authentication and Dating	
 	

6
	Section 2.02.	Form of Trustee's Certificate of Authentication	 	6
	Section 2.03.	Form and Denomination of Debt Securities	 	6
	Section 2.04.	Execution of Debt Securities	 	7
	Section 2.05.	Exchange and Registration of Transfer of Debt Securities	 	7
	Section 2.06.	Mutilated, Destroyed, Lost or Stolen Debt Securities	 	9
	Section 2.07.	Temporary Debt Securities	 	10
	Section 2.08.	Payment of Interest	 	10
	Section 2.09.	Cancellation of Debt Securities Paid, etc	 	12
	Section 2.10.	Computation of Interest	 	12
	Section 2.11.	Extension of Interest Payment Period	 	13
	Section 2.12.	CUSIP Numbers	 	14
	

ARTICLE III

PARTICULAR COVENANTS OF THE COMPANY	
 	

 
	

Section 3.01.	

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

14
	Section 3.02.	Offices for Notices and Payments, etc	 	14
	Section 3.03.	Appointments to Fill Vacancies in Trustee's Office	 	15
	Section 3.04.	Provision as to Paying Agent	 	15
	Section 3.05.	Certificate to Trustee	 	16
	Section 3.06.	Additional Amounts	 	16
	Section 3.07.	Compliance with Consolidation Provisions	 	16
	Section 3.08.	Limitation on Dividends	 	16
	Section 3.09.	Covenants as to the Trust	 	17
	Section 3.10.	Covenant as to REIT Status	 	17
	

ARTICLE IV

LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE	
 	

 
	

Section 4.01.	

Securityholders' Lists	
 	

17
	Section 4.02.	Preservation and Disclosure of Lists	 	18
	Section 4.03.	Financial and Other Information	 	19
	 	 	 	 

i

 

	

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT	
 	

 
	

Section 5.01.	

Events of Default	
 	

19
	Section 5.02.	Payment of Debt Securities on Default; Suit Therefor	 	20
	Section 5.03.	Application of Moneys Collected by Trustee	 	22
	Section 5.04.	Proceedings by Securityholders	 	22
	Section 5.05.	Proceedings by Trustee	 	22
	Section 5.06.	Remedies Cumulative and Continuing	 	22
	Section 5.07.	Direction of Proceedings and Waiver of Defaults by Majority of Securityholders	 	23
	Section 5.08.	Notice of Defaults	 	23
	Section 5.09.	Undertaking to Pay Costs	 	24
	

ARTICLE VI

CONCERNING THE TRUSTEE	
 	

 
	

Section 6.01.	

Duties and Responsibilities of Trustee	
 	

24
	Section 6.02.	Reliance on Documents, Opinions, etc	 	25
	Section 6.03.	No Responsibility for Recitals, etc	 	26
	Section 6.04.	Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own Debt Securities	 	26
	Section 6.05.	Moneys to be Held in Trust	 	26
	Section 6.06.	Compensation and Expenses of Trustee	 	26
	Section 6.07.	Officers' Certificate as Evidence	 	27
	Section 6.08.	Eligibility of Trustee	 	27
	Section 6.09.	Resignation or Removal of Trustee	 	27
	Section 6.10.	Acceptance by Successor Trustee	 	28
	Section 6.11.	Succession by Merger, etc	 	29
	Section 6.12.	Authenticating Agents	 	30
	

ARTICLE VII

CONCERNING THE SECURITYHOLDERS	
 	

 
	

Section 7.01.	

Action by Securityholders	
 	

30
	Section 7.02.	Proof of Execution by Securityholders	 	31
	Section 7.03.	Who Are Deemed Absolute Owners	 	31
	Section 7.04.	Debt Securities Owned by Company Deemed Not Outstanding	 	32
	Section 7.05.	Revocation of Consents; Future Securityholders Bound	 	32
	

ARTICLE VIII

SECURITYHOLDERS' MEETINGS	
 	

 
	

Section 8.01.	

Purposes of Meetings	
 	

32
	Section 8.02.	Call of Meetings by Trustee	 	33
	Section 8.03.	Call of Meetings by Company or Securityholders	 	33
	Section 8.04.	Qualifications for Voting	 	33
	Section 8.05.	Regulations	 	33
	Section 8.06.	Voting	 	34
	Section 8.07.	Quorum; Actions	 	34
	 	 	 	 

ii

 

	

ARTICLE IX

SUPPLEMENTAL INDENTURES	
 	

 
	

Section 9.01.	

Supplemental Indentures without Consent of Securityholders	
 	

35
	Section 9.02.	Supplemental Indentures with Consent of Securityholders	 	36
	Section 9.03.	Effect of Supplemental Indentures	 	37
	Section 9.04.	Notation on Debt Securities	 	37
	Section 9.05.	Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee	 	37
	

ARTICLE X

REDEMPTION OF DEBT SECURITIES	
 	

 
	

Section 10.01.	

Optional Redemption	
 	

37
	Section 10.02.	Special Event Redemption	 	37
	Section 10.03.	Notice of Redemption; Selection of Debt Securities	 	37
	Section 10.04.	Payment of Debt Securities Called for Redemption	 	38
	

ARTICLE XI

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE	
 	

 
	

Section 11.01.	

Company May Consolidate, etc., on Certain Terms	
 	

38
	Section 11.02.	Successor Entity to be Substituted	 	39
	Section 11.03.	Opinion of Counsel to be Given to Trustee	 	39
	

ARTICLE XII

SATISFACTION AND DISCHARGE OF INDENTURE	
 	

 
	

Section 12.01.	

Discharge of Indenture	
 	

39
	Section 12.02.	Deposited Moneys to be Held in Trust by Trustee	 	40
	Section 12.03.	Paying Agent to Repay Moneys Held	 	40
	Section 12.04.	Return of Unclaimed Moneys	 	40
	

ARTICLE XIII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	
 	

 
	

Section 13.01.	

Indenture and Debt Securities Solely Corporate Obligations	
 	

41
	

ARTICLE XIV

MISCELLANEOUS PROVISIONS	
 	

 
	

Section 14.01.	

Successors	
 	

41
	Section 14.02.	Official Acts by Successor Entity	 	41
	Section 14.03.	Surrender of Company Powers	 	41
	Section 14.04.	Addresses for Notices, etc	 	41
	Section 14.05.	Governing Law	 	42
	Section 14.06.	Evidence of Compliance with Conditions Precedent	 	42
	Section 14.07.	Non-Business Days	 	42
	Section 14.08.	Table of Contents, Headings, etc	 	42
	Section 14.09.	Execution in Counterparts	 	42
	Section 14.10.	Severability	 	43
	Section 14.11.	Assignment	 	43
	Section 14.12.	Acknowledgment of Rights	 	43
	 	 	 	 

iii

 

	

ARTICLE XV

SUBORDINATION OF DEBT SECURITIES	
 	

 
	

Section 15.01.	

Agreement to Subordinate	
 	

43
	Section 15.02.	Default on Senior Indebtedness	 	44
	Section 15.03.	Liquidation; Dissolution; Bankruptcy	 	44
	Section 15.04.	Subrogation	 	45
	Section 15.05.	Trustee to Effectuate Subordination	 	46
	Section 15.06.	Notice by the Company	 	46
	Section 15.07.	Rights of the Trustee; Holders of Senior Indebtedness	 	46
	Section 15.08.	Subordination May Not Be Impaired	 	47

   

	EXHIBITS
 
	 

	EXHIBIT A	FORM OF DEBT SECURITY

iv

  

        THIS INDENTURE, dated as of October 18, 2005, between Impac Mortgage Holdings, Inc., a Maryland corporation (hereinafter sometimes called the "Company"), and Wilmington
Trust Company, a Delaware banking corporation with its principal place of business in the State of Delaware, as trustee (hereinafter sometimes called the "Trustee"). 

W I T N E S S E T H: 

        WHEREAS,
for its lawful corporate purposes, the Company has duly authorized the issuance of its Fixed/Floating Rate Junior Subordinated Debt Securities due 2035 (the "Debt Securities")
under this Indenture and to provide, among other things, for the execution and authentication, delivery and administration thereof, the Company has duly authorized the execution of this Indenture. 

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

 
 

ARTICLE I    
    
    DEFINITIONS    
    

 
 
        Section 1.01.    Definitions.     

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

        "Additional Amounts": has the meaning set forth in Section 3.06. 

        "Additional Provisions": has the meaning set forth in Section 15.01. 

        "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 Wilmington, Delaware,
New York City or Newport Beach, California 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 "TruPS®"
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 

1

 

liquidation,
redemption and otherwise are subordinated to the rights of holders of such Capital Securities. 

        "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. 

        "Clearstream": means Citibank, N.A., as operator of Clearstream Banking, société anonyme. 

        "Code": has the meaning set forth in Section 4.03. 

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

        "Company": means Impac Mortgage Holdings, Inc., a Maryland corporation, 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 October 18, 2005, 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. 

        "Euroclear": Euroclear Bank S.A./N.V. as operator and depository of the Euroclear system. 

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

        "Exchange Act": means the Securities Exchange Act of 1934, as amended. 

        "Extension Period": has the meaning set forth in Section 2.11. 

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

        "Institutional Trustee": has the meaning set forth in the Declaration. 

        "Interest Payment Date": means April 30, July 30, October 30 and January 30 of each year, commencing on
January 30, 2006, during the term of this Indenture. 

        "Interest Period": has the meaning set forth in Section 2.08. 

        "Interest Rate": means (i) prior to July 30, 2010, a per annum rate of interest equal to 8.55% and (ii) from
and including July 30, 2010, a per annum rate of interest, reset quarterly, equal to LIBOR, as determined on the LIBOR Determination Date for such Interest Period, plus 3.75%. 

        "Investment Company Event": means the receipt by the Company of an Opinion of Counsel experienced in such matters to the effect
that, as a result of 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 

2

 

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 stated amount of $1,000 per Trust Security. 

        "Maturity Date": means July 30, 2035. 

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

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

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

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

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

3

 

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

        "Redemption Date": has the meaning set forth in Section 10.01. 

        "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 or, in the case of redemption at full maturity, the Maturity Date, or, in the case of a redemption due to the occurrence of a Special Event, to the Special
Redemption Date if such Special Redemption Date is on or after July 30, 2010. 

        "Regulation S Transferee": means a non-U.S. Person acquiring Debt Securities in accordance with
Regulation S under the Securities Act. 

        "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. 

        "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
("guarantees"); 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, except that
Senior Indebtedness does not include obligations in respect of (1) any indebtedness issued under this Indenture, and (2) any indebtedness or any guarantee that is by its terms
subordinated to or pari passu with the Debt Securities; including, without limitation, the debt securities of the Company issued under the following
Indentures (x) the Amended and Restated Indenture, dated September 16, 2005, between the Company and JPMorgan Chase Bank, National Association, as trustee, (y) the Indenture,
dated April 22, 2005, between the Company and Wilmington Trust Company, as trustee, and (z) the Indenture, dated May 20, 2005, between the Company and JPMorgan Chase Bank,
National Association, as trustee. 

4

 

        "Special Event": means either a Tax Event or an Investment Company Event. 

        "Special Redemption Date": has the meaning set forth in Section 10.02. 

        "Special Redemption Price": means (i) if the Special Redemption Date is prior to July 30, 2010, 107.5% of the
principal amount of the Debt Securities being redeemed pursuant to Section 10.02 plus accrued and unpaid interest on such Debt Securities to the Special Redemption Date and (ii) if the
Special Redemption Date is on or after July 30, 2010, the Redemption Price for such Special Redemption Date. 

        "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 opinion, subject to United States federal income tax with respect to income received or accrued on the Debt Securities; (ii) 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 Impac Capital Trust #4, the Delaware statutory trust, or any other similar trust created for the purpose of issuing
Capital Securities in connection with the issuance of Debt Securities under this Indenture, of which the Company is the sponsor. 

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

        "Trust Securities": means Common Securities and Capital Securities of Impac Capital Trust #4. 

        "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. 

5

 

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

 
 

ARTICLE II    
    
    DEBT SECURITIES    
    

 
 
        SECTION 2.01.    Authentication and Dating.     

        Upon
the execution and delivery of this Indenture, or from time to time thereafter, Debt Securities in an aggregate principal amount not in excess of $20,620,000 may be executed and
delivered by the Company to the Trustee for authentication, and the Trustee shall thereupon authenticate and make available for delivery said Debt Securities to or upon the written order of the
Company, signed by its Chairman of the Board of Directors, Vice Chairman, President or Chief Financial Officer or one of its Vice Presidents, without any further action by the Company hereunder. In
authenticating such Debt Securities, and accepting the additional responsibilities under this Indenture in relation to such Debt Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.01) shall be fully protected in relying upon a copy of any Board Resolution or Board Resolutions relating thereto and, if applicable, an appropriate record of any action taken
pursuant to such resolution, in each case certified by the Secretary or an Assistant Secretary or other officers with appropriate delegated authority of the Company as the case may be. 

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

        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. 

        Wilmington
Trust Company, not in its individual capacity but solely as trustee 

	 	By	    
 Authorized Officer

	 

 
 

           SECTION 2.03.    Form and Denomination of Debt Securities.     

        Subject
to Section 2.05, 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. 

6

  

 
 

           SECTION 2.04.    Execution of Debt Securities.     

        The
Debt Securities shall be signed in the name and on behalf of the Company by the manual or facsimile signature of its Chairman of the Board of Directors, Vice Chairman, President or
Chief Financial Officer or one of its Executive Vice Presidents, Senior Vice Presidents or Vice Presidents, 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 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. 

7

 

        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. 

        Upon
the request of the Initial Purchaser (as defined in the Declaration) the Company shall provide for the Debt Securities to be transferred and held through the facilities of The
Depository Trust Company, the Euroclear, Clearstream or similar book-entry systems for holders and transferees who are qualified institutional buyers for purposes of Rule 144A under
the Securities Act or Regulation S Transferees or, consistent with an opinion of counsel, other holders or transferees. The Company shall cause appropriate revisions to the form of Debt
Securities necessary to facilitate book-entry transfers and holding. 

        Notwithstanding
the foregoing, Debt Securities may not be transferred except in compliance with the restricted securities legend set forth below (subject to the preceding paragraph),
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 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. 

8

 

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. 

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 REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE INDENTURE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 

THIS
SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN 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. 

 
 

           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 

9

 

every
case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of such Debt Security and of
the ownership thereof. 

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

10

 

Payment
Date or, in the case of the last interest period, the Redemption Date, Special Redemption Date or Maturity Date, as applicable (each such period an "Interest Period"), on the principal
thereof, on any overdue principal and (to the extent that payment of such interest is enforceable under applicable law) on Deferred Interest and on any overdue installment of interest (including
Defaulted Interest), payable (subject to the provisions of Article XV) on each Interest Payment Date commencing on January 30, 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 or the Special Redemption Date, as the case may be, 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 prior to such Interest Payment Date, interest on such Debt Security will be paid
upon presentation and surrender of such Debt Security. 

        Any
interest on any Debt Security, other than Deferred Interest, that is payable, but is not punctually paid or duly provided for by the Company, on any Interest Payment Date (herein
called "Defaulted Interest") shall forthwith cease to be payable to the 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 herein shall mean the fifteenth day prior to an 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 carried by such other Debt Security. 

11

 

 
 

           SECTION 2.09.    Cancellation of Debt Securities Paid, etc.     

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

 
 

          SECTION 2.10.    Computation of Interest.     

        (a)   The
amount of interest payable for each Interest Period will be computed as follows: (i) for each Interest Period up to and including the Interest Period
ending on July 29, 2010, on the basis of a 360-day year consisting of twelve 30-day months, and (ii) for each subsequent Interest Period, on the basis of a
360-day year and the actual number of days elapsed in the relevant Interest Period. 

        (b)   LIBOR
for a given Interest 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 April 30, July 30,
October 30 and January 30), as the case may be, immediately prior to the commencement of such Interest Period (each such day, a "LIBOR Determination Date"), LIBOR shall equal the rate,
as obtained by the Calculation Agent, for three-month U.S. Dollar deposits in Europe which appears on Telerate Page 3750 (as defined in the International Swaps and Derivatives Association, Inc.
1991 Interest Rate and Currency Exchange Definitions) or such other page as may replace such Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date, as reported by
Bloomberg Financial Markets Commodities News. "LIBOR Business Day" means any day that is not a Saturday, Sunday or other day on which commercial banking institutions in New York, New York or
Wilmington, Delaware are authorized or obligated by law or executive order to be closed. If such rate is superseded on Telerate Page 3750 by a corrected rate before 12:00 noon (London time) on the
same LIBOR Determination Date, the corrected rate as so substituted will be the applicable LIBOR for that LIBOR Determination Date. 

        (2)   If,
on any LIBOR Determination Date, such rate does not appear on Telerate Page 3750 as reported by Bloomberg Financial Markets Commodities News or such other page as
may replace such Telerate Page 3750, the Calculation Agent shall determine the arithmetic mean of the offered quotations of the Reference Banks (as defined below) to leading banks in the London
interbank market for three-month U.S. Dollar deposits in Europe (in an amount determined by the Calculation Agent) by reference to requests for quotations as of approximately 11:00 a.m. (London
time) on 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 provides 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 

12

 

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 such Interest Period
shall be LIBOR in effect for the immediately preceding Interest Period. 

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

        (d)   On
each LIBOR Determination Date, the Calculation Agent shall notify, in writing, the Company and the Paying Agent of the applicable Interest Rate in effect for the
related Interest Payment Date. 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. 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. 

 
 

           SECTION 2.11.    Extension of Interest Payment Period.     

        So
long as no Event of Default has occurred and is continuing, the Company shall have the right, from time to time and without causing an Event of Default, to defer payments of interest
on the Debt Securities by extending the interest payment period on the Debt Securities at any time and from time to time during the term of the Debt Securities, for up to twenty consecutive quarterly
periods (each such extended interest payment period, an "Extension Period"), during which Extension Period no interest shall 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 in effect for 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 interest or Deferred Interest shall be due and payable during an Extension Period, except at the end thereof. 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 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 or Special
Redemption Date. The deferral of the payment of interest during an Extension Period shall not defer the payment of any Additional Amounts that may be due and payable. Upon the termination of any
Extension Period and upon the payment of all Deferred Interest, the Company may commence a new Extension Period, subject to the foregoing requirements. The Company must give the Trustee notice of its
election to begin any Extension Period at least one Business Day prior to the regular record date related to the date such interest would otherwise be next payable. The Company must give the Trustee
notice of its election to extend any Extension Period at 

13

 

least
one Business Day prior to the regular record date related to the next succeeding date on which interest on the Debt Securities would have been payable except for the election to extend such
existing 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. 

 
 

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. 

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

        (c)   As
of the date of this Indenture, the Company 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. 

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

 
 

           SECTION 3.02.    Offices for Notices and Payments, etc.     

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

14

  

        In addition to any such office or agency, the Company may from time to time designate one or more offices or agencies outside Wilmington, Delaware or Newport Beach, California where the
Debt Securities may be presented for registration of transfer and for exchange in the manner provided in this Indenture, and the Company may from time to time rescind such designation, as the Company
may deem desirable or expedient; provided, however, that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain any such office or agency in Wilmington, Delaware or in Newport Beach, California 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 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"). 

15

 

 
 

           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. 

 
 

           SECTION 3.06.    Additional Amounts.     

        If
and for so long as the Trust is the holder of all Debt Securities and is subject to or otherwise required to pay, or is required to withhold from distributions to holders of Trust
Securities, any additional taxes (including withholding taxes), duties, assessments or other governmental charges as a result of a Tax Event, the Company will pay such additional amounts (the
"Additional Amounts") on the Debt Securities 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 on distributions to holders of Trust Securities), 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 interest on the Debt Securities, such mention shall be deemed to include mention of payments of the Additional Amounts provided for in this paragraph to the extent that, in such
context, Additional Amounts are, were or would be payable in respect thereof pursuant to the provisions of this paragraph and express mention of the payment of Additional Amounts (if applicable) in
any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made,  provided, however, that the deferral of the payment of interest during an Extension Period pursuant to
Section 2.11 shall not defer the payment of any Additional Amounts that may be due and payable. 

 
 

          SECTION 3.07.    Compliance with Consolidation Provisions.     

        The
Company will not, while any of the Debt Securities remain outstanding, consolidate with, or merge into any other Person, or merge into itself, or sell or convey all or substantially
all of its property 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 occurred and be continuing an Event of Default, (ii) the Company shall be in default with respect to its payment of any
obligations or (iii) the Company shall have given notice of its election to defer payments of interest on the Debt Securities by extending the interest payment period as provided herein and
such period, or any extension thereof, shall have commenced and be continuing, then the Company may not (A) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or
make a liquidation payment with respect to, any of the Company's capital stock 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 (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company (I) in connection with any employment contract, benefit plan or other similar 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 

16

 

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

 
 

          SECTION 3.09.    Covenants as to the Trust.     

        For
so long as such Trust Securities remain outstanding, the Company shall maintain, directly or indirectly, 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 (a) to cause the Trust 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 cause the Trust 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. 

 
 

           SECTION 3.10.    Covenant as to REIT Status.     

        The
Company will use its reasonable efforts to meet the requirements to qualify as a real estate investment trust (a "REIT") under Sections 856 through 860 of the Internal Revenue Code
of 1986, as amended, effective for the taxable year ending December 31, 2005 and succeeding taxable years for so long as the judgment of the Company's board of directors is that the Company
should maintain its status as a REIT. 

 
 

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 

        (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. 

17

 

 
 

          SECTION 4.02.    Preservation and Disclosure of Lists.     

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

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

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

        (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). 

18

 

 
 

           SECTION 4.03.    Financial and Other Information.     

        If
at any time the Trust ceases to exist for whatever reason or is no longer the holder of the Debt Securities, the Company shall: 

        (a)   deliver
to each Securityholder either (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 90 days after the filing of each Form 10-K and within 30 days after the filing of each
Form 10-Q, or (2) if the Company is at any time neither subject to Section 13 or 15(d) of the Exchange Act nor exempt from reporting pursuant to
Rule 12g3-2(b) thereunder, the information required to be provided by Rule 144A(d)(4) under the Securities Act; and 

        (b)   prepare
and deliver to each Securityholder, within 30 days after the end of the fiscal year of the Company, Form 1099 or such other annual U.S. federal
income tax information statement required by the Code, containing such information with regard to the Debt Securities held by such Securityholder as is required by the Code and the income tax
regulations of the U.S. Treasury thereunder. 

 
 

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)   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 

        (b)   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 

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

        (d)   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 an optional or Special Event redemption in accordance with Article X of this Indenture, by declaration of acceleration pursuant to this Section 5.01 or
otherwise; or 

        (e)   the
Company defaults in the performance of, or breaches, any of its covenants or agreements in Section 3.06, 3.07, 3.08, 3.09 or 3.10 of this Indenture (other
than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of
90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the holders of 

19

 

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 

        (f)    the
Trust shall have voluntarily or involuntarily liquidated, dissolved, wound-up its business or otherwise terminated its existence except in connection
with (1) the distribution of the 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 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 Securityholders), may declare the entire principal of the Debt Securities and the 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. 

        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 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, then and in 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. 

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

 
 

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

        The
Company covenants that upon the occurrence of either (i) an Event of Default pursuant to clause 5.01(c) or 5.01(d) and upon demand of the Trustee, which,
notwithstanding any other provision of this Indenture, the Trustee is hereby authorized to and shall make within one Business Day of acquiring knowledge of such Event of Default, or (ii) an
Event of Default pursuant to clause 5.01(e) caused by the breach of any of the covenants or agreements in Section 3.08, 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 and any 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 and counsel, and 

20

 

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 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 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. 

21

 

 
 

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

        Notwithstanding
any other provisions in this Indenture, 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 

22

 

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. 

 
 

           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 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 (subject to the provisions of Section 6.01) the Trustee shall have the
right to decline to follow any such direction if the Trustee shall
determine that the action so directed would be unjustly prejudicial to the holders not taking part in such direction or if the Trustee being advised by counsel determines that the action or proceeding
so directed may not lawfully be taken or if a Responsible Officer of the Trustee shall determine that the action or proceedings so directed would involve the Trustee in personal liability. Prior to
any declaration accelerating 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 such trust, such waiver or modification to such waiver shall not be effective
until the holders of a majority in liquidation preference of the Trust Securities 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 shall not be effective until each holder of the Trust Securities shall have consented to such waiver. Upon any such waiver, the default covered thereby shall be deemed to be cured for all
purposes of this Indenture and the Company, the Trustee and the holders of the Debt Securities shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other default or Event of Default or impair any right consequent thereon. Whenever any default or Event of Default hereunder shall have been waived as permitted by this
Section 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 appear upon the Debt Security Register, notice of all defaults with respect to the Debt Securities 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) and (e) of Section 5.01, and, with the exception of Section 5.01(e) 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. 

23

  

 
 

          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
outstanding, or 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. 

 
 

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: 

        (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 

24

 

the
time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; and 

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

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

 
 

          SECTION 6.02.    Reliance on Documents, Opinions, etc.     

        Except
as otherwise provided in Section 6.01: 

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

        (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 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 

25

 

Indenture,
the Trustee may require reasonable indemnity against such expense or liability as a condition to so proceeding; and 

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

 
 

           SECTION 6.03.    No Responsibility for Recitals, etc.     

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

        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 or bad faith. The Company also covenants to indemnify each of the Trustee (including in its individual capacity) and any predecessor Trustee (and its officers, agents, directors and
employees) for, and to hold it harmless against, any and all loss, damage, claim, liability or expense including taxes (other than taxes based on the income of the Trustee), except to the extent such
loss, damage, claim, liability or expense results from the negligence, willful misconduct or bad faith of such indemnitee, arising out of or in connection with the acceptance or administration of this
Trust, including the costs and expenses of defending itself 

26

 

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 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 (a), (b) 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. 

 
 

          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 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 or
bad faith on the part of
the Trustee, shall be full warrant to the Trustee for any action taken or omitted by it under the provisions of this Indenture upon the faith thereof. 

 
 

           SECTION 6.08.    Eligibility of Trustee.     

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

        (a)   The
Trustee, or any trustee or trustees hereafter appointed, may at any time resign by giving written notice of such resignation to the Company and by mailing notice
thereof, at the Company's 

27

 

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

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

        (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 

        (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 and appointment of a successor Trustee pursuant to any of the provisions of this Section 6.09 shall become effective
upon acceptance of appointment by the successor Trustee as provided in Section 6.10. 

 
 

           SECTION 6.10.    Acceptance by Successor Trustee.     

        Any
successor Trustee appointed as provided in Section 6.09 shall execute, acknowledge and deliver to the Company and to its predecessor Trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the retiring Trustee shall become effective and 

28

 

such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations with respect to the Debt Securities of its predecessor
hereunder, with like effect as if originally named as Trustee herein; but, nevertheless, on the written request of the Company or of the successor Trustee, the Trustee ceasing to act shall, upon
payment of the amounts then due it pursuant to the provisions of Section 6.06, execute and deliver an instrument transferring to such successor Trustee all the rights and powers of the Trustee
so ceasing to act and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. In addition, 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 Debt Securities and
trusts 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. Any Trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by such Trustee to secure any amounts then due it pursuant to the provisions of Section 6.06. 

        No
successor Trustee shall accept appointment as provided in this Section 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 be liable for the acts or omissions of any successor Trustee hereunder. 

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

 
 

          SECTION 6.11.    Succession by Merger, etc.     

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

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

29

 

 
 

          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 corporation organized and doing business under the laws
of the United States or of any state thereof or of the District of Columbia authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of at least $50,000,000 and
being subject to supervision or examination by federal, state or District of Columbia authority. If such corporation publishes reports of condition at least annually pursuant to law or the
requirements of such authority, then for the purposes of this Section 6.12 the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect herein specified in this Section. 

        Any
corporation into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, consolidation or
conversion to which any Authenticating Agent shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of any Authenticating Agent, shall be the
successor of such Authenticating Agent hereunder, if such successor corporation is otherwise eligible under this Section 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. 

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

 
 

ARTICLE VII    
    
    CONCERNING THE SECURITYHOLDERS    
    

 
 
        SECTION 7.01.    Action by Securityholders.     

        Whenever
in this Indenture it is provided that the holders of a specified percentage in aggregate principal amount of the Debt Securities 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 

30

 

evidenced
(a) by any instrument or any number of instruments of similar tenor executed by such Securityholders 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 (c) by a
combination of such instrument or instruments and any such record of such a meeting of such Securityholders, 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 if
made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be reasonably 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. 

31

  

 
 

           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 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 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 

32

 

        (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 New York, New York,
Wilmington, Delaware, or Newport Beach, California as the Trustee shall determine. Notice of every meeting of the Securityholders, setting forth the time and the place of such meeting and in general
terms the action proposed to be taken at such meeting, shall be mailed to holders of Debt Securities affected at their addresses as they shall appear on the Debt Securities Register. Such notice shall
be mailed not less than 20 nor more than 180 days prior to the date fixed for the meeting. 

 
 

           SECTION 8.03.    Call of Meetings by Company or Securityholders.     

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

33

 

other
Securityholders. Any meeting of Securityholders duly called pursuant to the provisions of Section 8.02 or 8.03 may be adjourned from time to time by a majority of those present, whether
or not constituting a quorum, and the meeting may be held as so adjourned without further notice. 

 
 

           SECTION 8.06.    Voting.     

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

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

 
 

           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 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. 

34

 

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

 
 

ARTICLE IX    
    
    SUPPLEMENTAL INDENTURES    
    

 
 
        SECTION 9.01.    Supplemental Indentures Without Consent of Securityholders.     

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

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

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

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

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

35

 

        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 (voting as a class), the Company, when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act, then in effect, applicable to indentures qualified thereunder) for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of the Debt
Securities; provided, however, that no such supplemental indenture shall without such consent of the
holders of each Debt Security then outstanding and affected thereby (i) extend the fixed maturity of any Debt Security, or reduce the principal amount thereof or any premium thereon, or reduce
the rate or extend the time of payment of interest thereon, or reduce any amount payable on redemption thereof or make the principal thereof or any interest or premium thereon payable in any coin or
currency other than that provided in the Debt Securities, 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 preference of the Trust 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 Trust 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 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. 

36

 

 
 

           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 DEBT SECURITIES    
    

 
 
        SECTION 10.01.    Optional Redemption.     

        At
any time the Company shall have the right, to redeem the Debt Securities, in whole or in part, on any Interest Payment Date on or after July 30, 2010 (the "Redemption Date"),
at the Redemption Price. 

 
 

           SECTION 10.02.    Special Event Redemption.     

        If
a Special Event shall occur and be continuing, the Company shall have the right to redeem the Debt Securities, in whole but not in part, at any time within 90 days following
the occurrence of such Special Event (the "Special Redemption Date"), at the Special Redemption Price. 

 
 

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

        In
case the Company shall desire to exercise the right to redeem all, or, as the case may be, any part of the Debt Securities, it shall fix a date for redemption and shall mail 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. 

37

 

        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 at which Debt Securities
are to be redeemed or an estimate thereof, 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 accrued interest to the date fixed for redemption. 

        The
Company will give the Trustee notice not less than 30 nor more than 60 days prior to the redemption date as to the Redemption Price or Special Redemption Price (as the case
may be) at which the Debt Securities are to be redeemed, and the aggregate principal amount of Debt Securities to be redeemed and the Trustee shall select, in such manner as in its sole discretion it
shall deem appropriate and fair, the Debt Securities or portions thereof (in integral multiples of $1,000) to be redeemed. 

 
 

           SECTION 10.04.    Payment of Debt Securities Called for Redemption.     

        If
notice of redemption has been given as provided in Section 10.03, the Debt Securities or portions of Debt Securities with respect to which such notice has been given shall
become due and payable on the 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 or Special
Redemption Price (as the case may be), and on and after said Redemption Date or the Special Redemption Date (unless the Company shall default in the payment of the Redemption Price or Special
Redemption Price (as the case may be) for such Debt Securities) 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 or Special Redemption Price (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 the property or capital stock of the Company or its successor or successors as an entirety, 

38

 

or
substantially as an entirety, 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, upon any such consolidation,
merger (where the Company is not the surviving corporation), sale, conveyance, transfer or other disposition, the due and punctual payment of all payments due on all of the Debt Securities in
accordance with their terms, according to their tenor, and the due and punctual performance and observance of all the covenants and conditions of this Indenture to be kept or performed by the Company,
shall be expressly assumed by supplemental indenture reasonably satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the
Company shall have been merged, or by the entity which shall have acquired such property or capital stock and after giving effect to 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 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. 

 
 

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 

39

 

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. 

 
 

           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. 

40

  

 
 

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. 

 
 

          SECTION 14.02.    Official Acts by Successor Entity.     

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

 
 

          SECTION 14.03.    Surrender of Company Powers.     

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

 
 

          SECTION 14.04.    Addresses for Notices, etc.     

        Any
notice or demand which by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the Securityholders on the Company may be given or
served in writing by being deposited postage prepaid by registered or certified mail in a post office letter box addressed (until another address is filed by the Company with the Trustee for such
purpose) to the Company at: 

Impac
Mortgage Holdings, Inc.

1401 Dove Street

Newport Beach, California, 92660

Attention: Gretchen Verdugo 

41

 

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

Wilmington
Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-0001

Attention: Corporate Trust Administrator 

 
 

           SECTION 14.05.    Governing Law.     

        This
Indenture and each Debt Security shall be deemed to be a contract made under the law of the State of New York, and for all purposes shall be governed by and construed in accordance
with the law of said State, without regard to conflict of laws principles thereof. 

 
 

           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 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; (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.     

        In
any case where the date of payment of interest on or principal of the Debt Securities is not a Business Day, the payment of such interest on or principal of the Debt Securities need
not be made on such date but may be made on the next succeeding Business Day, with the same force and effect as if made on the date of payment, except if such Business Day is in the next succeeding
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. 

42

 

 
 

           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. 

 
 

           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 to a direct or indirect wholly owned Subsidiary
of the Company, provided, that, subject to Article XI, 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. 

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

43

 

 
 

           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. 

        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. 

44

 

        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 or transfer 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. 

        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 

45

 

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 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 

46

 

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, 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. 

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

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

	 	 	Impac Mortgage Holdings, Inc.
	

 	
 	

 	

 	

 
	 	 	By	/s/  GRETCHEN VERDUGO      

	 	 	 	Name:	Gretchen Verdugo
	 	 	 	Title:	EVP/Chief Accounting Officer
	

 	
 	

 	

 	

 
	 	 	Wilmington Trust Company, as Trustee
	

 	
 	

 	

 	

 
	 	 	By:	/s/  MICHELE C. HARRA      

	 	 	 	Name:	Michele C. Harra
	 	 	 	Title:	Financial Services Officer

47

  

EXHIBIT A  

 
 

FORM OF FIXED/FLOATING RATE JUNIOR SUBORDINATED DEBT SECURITY DUE 2035    
    

[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 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. 

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 

A-1

 

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 REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND
OTHER INFORMATION AS MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 

THIS
SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN 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. 

A-2

 
Fixed/Floating
Rate Junior Subordinated Debt Security due 2035 

of

Impac
Mortgage Holdings, Inc. 

        Impac
Mortgage Holdings, Inc., a Maryland corporation (the "Company"), for value received promises to pay to Wilmington Trust Company, not in its individual capacity but solely as
Institutional Trustee for Impac Capital Trust #4, a Delaware statutory trust (the "Holder"), or registered assigns, the principal sum of Twenty Million Six-Hundred Twenty Thousand Dollars
($20,620,000) on July 30, 2035 and to pay interest on said principal sum from October 18, 2005, 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 April 30, July 30, October 30, and January 30 of
each year commencing on January 30, 2006, (1) until July 30, 2010, at a fixed rate per annum equal to 8.55%, and (2) from and including July 30, 2010 at a variable
per annum rate, reset quarterly, equal to LIBOR (as defined in the Indenture) plus 3.75% (the "Interest Rate"), 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 (1) for each Interest Period up to and
including the Interest Period ending on July 29, 2010, on the basis of a 360-day year consisting of twelve 30-day months, and (2) for each subsequent Interest
Period, on the basis of a 360-day year and the actual number of days elapsed in the relevant Interest Period. In
the event that any date on which the principal or interest is payable on this Debt Security is not a Business Day, then payment payable on such date will be made on the next succeeding day that is a
Business Day, except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and
effect as if made on such date. 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 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 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, the payment of the principal of and interest on this Debt
Security will be made in immediately available funds at such place and to such account as may be designated by the Trustee. 

        So
long as no Event of Default has occurred and is continuing, the Company shall have the right, from time to time and without causing an Event of Default, to defer payments of interest
on the Debt Securities by extending the interest payment period on the Debt Securities at any time and from time to time during the term of the Debt Securities, for up to 20 consecutive quarterly
periods (each such extended interest payment period, an "Extension Period"), during which Extension Period no interest 

A-3

 

shall
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 in effect for each 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 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 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 (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 or conversion of any class or series of the Company's capital stock (or any
capital stock of a subsidiary of the Company) for any class or series of the Company's capital stock or of any class or series of the Company's indebtedness for any class or series of the Company's
capital stock, (c) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being
converted or exchanged, (d) any declaration of a dividend in connection with any stockholder's rights plan, or the issuance of rights, stock or other property under any stockholder's rights
plan, or the redemption or repurchase of rights pursuant thereto, or (e) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to
such stock). Prior to the termination of any Extension Period, the Company may further extend such period, provided, that such period together with all
such previous and further consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date, Redemption Date 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 deferral of the payment of interest during an Extension Period shall not defer the payment of any Additional Amounts that may
be due and payable. The Company must give the Trustee notice of its election to begin such Extension Period at least one Business Day prior to the earlier of (i) the next succeeding date on
which interest on the Debt Securities would have been payable except for the election to begin such Extension Period or (ii) the date such interest is payable, but in any event not later than
the related regular record date. 

        The
indebtedness evidenced by this Debt Security is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior
Indebtedness, 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 

A-4

 

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. 

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

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

A-5

 

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

	 	 	Impac Mortgage Holdings, Inc.
	

 	
 	

 	

 	

 
	 	 	By:	    

	 	 	 	Name:	 
	 	 	 	Title:	 
	

Dated: October 18, 2005	
 	

 	

 	

 

CERTIFICATE OF AUTHENTICATION 

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

	 	 	Wilmington Trust Company, not in its individual

capacity but solely as the Trustee
	

 	
 	

 	

 
	 	 	By:	    
 Authorized Officer
	

Dated: October 18, 2005	
 	

 	

 

A-6

  

 
 

[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
October 18, 2005, duly executed and delivered between the Company and Wilmington Trust Company, as Trustee (the "Trustee"), to which Indenture and all indentures supplemental thereto reference
is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Debt Securities (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 or an Investment Company Event (each a "Special Event"), this Debt Security may become due and payable, in whole but not in part, at
any time, within 90 days following the occurrence of such Tax Event or Investment Company 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 Interest Payment Date on or after July 30, 2010 (a "Redemption Date"), at the
Redemption Price. 

        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 or, in the
case of a redemption due to the occurrence of a Special Event, to the Special Redemption Date if such Special Redemption Date is on or after July 30, 2010. 

        "Special
Redemption Price" means (1) if the Special Redemption Date is before July 30, 2010, 107.5% of the principal amount of the Debt Securities being redeemed pursuant
to Section 10.02 of the Indenture plus accrued and unpaid interest on such Debt Securities to the Special Redemption Date and (2) if the Special Redemption Date is on or after
July 30, 2010, the Redemption Price for such Special Redemption Date. 

        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
case an Event of Default, as defined in the Indenture, shall have occurred and be continuing, the principal of all of the Debt Securities may be declared due and payable, and upon
such declaration of acceleration shall become due and payable, 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) extend the fixed maturity of the Debt Securities, or reduce the principal amount thereof or any redemption premium
thereon, or reduce the rate or extend the time of payment of interest thereon, or make payments due on the Debt Securities payable in any coin or currency other than that provided in the Debt
Securities, 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 

-i-

 

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 default in payments due on any of the Debt Securities. 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. 

        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 Wilmington, Delaware 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 or on account of the principal hereof and interest due hereon 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, the
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. 

-ii-

QuickLinks

Exhibit 4.8

TABLE OF CONTENTS

ARTICLE I DEFINITIONS

Section 1.01. Definitions.

ARTICLE II DEBT SECURITIES

SECTION 2.01. Authentication and Dating.

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

SECTION 2.03. Form and Denomination of Debt Securities.

SECTION 2.04. Execution of Debt Securities.

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

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

SECTION 2.07. Temporary Debt Securities.

SECTION 2.08. Payment of Interest.

SECTION 2.09. Cancellation of Debt Securities Paid, etc.

SECTION 2.10. Computation of Interest.

SECTION 2.11. Extension of Interest Payment Period.

SECTION 2.12. CUSIP Numbers.

ARTICLE III PARTICULAR COVENANTS OF THE COMPANY

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

SECTION 3.02. Offices for Notices and Payments, etc.

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

SECTION 3.04. Provision as to Paying Agent.

SECTION 3.05. Certificate to Trustee.

SECTION 3.06. Additional Amounts.

SECTION 3.07. Compliance with Consolidation Provisions.

SECTION 3.08. Limitation on Dividends.

SECTION 3.09. Covenants as to the Trust.

SECTION 3.10. Covenant as to REIT Status.

ARTICLE IV LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION 4.01. Securityholders' Lists.

SECTION 4.02. Preservation and Disclosure of Lists.

SECTION 4.03. Financial and Other Information.

ARTICLE V REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

SECTION 5.01. Events of Default.

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

SECTION 5.03. Application of Moneys Collected by Trustee.

SECTION 5.04. Proceedings by Securityholders.

SECTION 5.05. Proceedings by Trustee.

SECTION 5.06. Remedies Cumulative and Continuing.

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

SECTION 5.08. Notice of Defaults.

SECTION 5.09. Undertaking to Pay Costs.

ARTICLE VI CONCERNING THE TRUSTEE

SECTION 6.01. Duties and Responsibilities of Trustee.

SECTION 6.02. Reliance on Documents, Opinions, etc.

SECTION 6.03. No Responsibility for Recitals, etc.

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

SECTION 6.05. Moneys to be Held in Trust.

SECTION 6.06. Compensation and Expenses of Trustee.

SECTION 6.07. Officers' Certificate as Evidence.

SECTION 6.08. Eligibility of Trustee.

SECTION 6.09. Resignation or Removal of Trustee.

SECTION 6.10. Acceptance by Successor Trustee.

SECTION 6.11. Succession by Merger, etc.

SECTION 6.12. Authenticating Agents.

ARTICLE VII CONCERNING THE SECURITYHOLDERS

SECTION 7.01. Action by Securityholders.

SECTION 7.02. Proof of Execution by Securityholders.

SECTION 7.03. Who Are Deemed Absolute Owners.

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

SECTION 7.05. Revocation of Consents; Future Securityholders Bound.

ARTICLE VIII SECURITYHOLDERS' MEETINGS

SECTION 8.01. Purposes of Meetings.

SECTION 8.02. Call of Meetings by Trustee.

SECTION 8.03. Call of Meetings by Company or Securityholders.

SECTION 8.04. Qualifications for Voting.

SECTION 8.05. Regulations.

SECTION 8.06. Voting.

SECTION 8.07. Quorum; Actions.

ARTICLE IX SUPPLEMENTAL INDENTURES

SECTION 9.01. Supplemental Indentures Without Consent of Securityholders.

SECTION 9.02. Supplemental Indentures with Consent of Securityholders.

SECTION 9.03. Effect of Supplemental Indentures.

SECTION 9.04. Notation on Debt Securities.

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

ARTICLE X REDEMPTION OF DEBT SECURITIES

SECTION 10.01. Optional Redemption.

SECTION 10.02. Special Event Redemption.

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

SECTION 10.04. Payment of Debt Securities Called for Redemption.

ARTICLE XI CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

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

SECTION 11.02. Successor Entity to be Substituted.

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

ARTICLE XII SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 12.01. Discharge of Indenture.

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

SECTION 12.03. Paying Agent to Repay Moneys Held.

SECTION 12.04. Return of Unclaimed Moneys.

ARTICLE XIII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 13.01. Indenture and Debt Securities Solely Corporate Obligations.

ARTICLE XIV MISCELLANEOUS PROVISIONS

SECTION 14.01. Successors.

SECTION 14.02. Official Acts by Successor Entity.

SECTION 14.03. Surrender of Company Powers.

SECTION 14.04. Addresses for Notices, etc.

SECTION 14.05. Governing Law.

SECTION 14.06. Evidence of Compliance with Conditions Precedent.

SECTION 14.07. Non-Business Days.

SECTION 14.08. Table of Contents, Headings, etc.

SECTION 14.09. Execution in Counterparts.

SECTION 14.10. Severability.

SECTION 14.11. Assignment.

SECTION 14.12. Acknowledgment of Rights.

ARTICLE XV SUBORDINATION OF DEBT SECURITIES

SECTION 15.01. Agreement to Subordinate.

SECTION 15.02. Default on Senior Indebtedness.

SECTION 15.03. Liquidation; Dissolution; Bankruptcy.

SECTION 15.04. Subrogation.

SECTION 15.05. Trustee to Effectuate Subordination.

SECTION 15.06. Notice by the Company.

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

SECTION 15.08. Subordination May Not Be Impaired.

FORM OF FIXED/FLOATING RATE JUNIOR SUBORDINATED DEBT SECURITY DUE 2035

[FORM OF REVERSE OF SECURITY]QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.9    
    

 
 

IMPAC FUNDING CORPORATION
  2006 AMENDED AND RESTATED
  DEFERRED COMPENSATION PLAN    
    

 
  ARTICLE I    
    
    INTRODUCTION    
    

 
 
        1.1    Purpose.     The purpose of this Plan is to enable the Sponsor and Affiliated Companies to provide a
competitive tax-deferred capital accumulation vehicle in order
to attract and retain key management. 

 
 

           1.2    Effective Date and Term.     This Plan is effective as of February 1, 2000 (the "Effective
Date"), unless otherwise expressly provided herein. This amendment and restatement of the
Plan is effective as of January 1, 2005. 

 
 

           1.3    Participation.     Participation in this Plan is open only to employees of the Sponsor or any
Affiliated Company who meet the requirements specified in Section 4.1 of the
Plan and who are selected for participation in the Plan by the Committee. Participation in this Plan by any such employees, and the payment of any benefits under this Plan to any such employee, shall
be governed by the terms of this Plan and by the terms of the Participation Agreement entered into with respect to this Plan by the Company and such employee pursuant to Section 1.4 hereof. 

 
 

           1.4    Participation Agreement.     As a condition to the commencement of participation in this Plan, each
employee approved for participation must enter into an agreement covering such employee's
participation (a "Participation Agreement") which agreement shall be executed by the Sponsor and such employee and, if such employee is employed by an Affiliated Company, such Affiliated Company. Each
Participation Agreement shall include such terms and conditions related to the employee's participation in the Plan as the Committee may deem appropriate. 

 
 

           1.5    Applicability of ERISA.     This Plan is intended to be a "top-hat" plan—that is, an unfunded
plan maintained primarily for the purpose of providing deferred
compensation to a select group of management or highly compensated employees within the meaning of ERISA. As such, the Plan is exempt from the participation and vesting requirements of Part 2
of Title I of ERISA, the funding requirements of Part 3 of Title I of ERISA, and the fiduciary responsibility provisions of Part 4 of Title I of ERISA. 

 
 

ARTICLE II    
    
    DEFINITIONS    
    

 
 
        2.1    Account.     "Account" shall mean one of the separate Accounts maintained by the Committee pursuant to the
provisions of Section 5.1. 

 
 

          2.2    Active Participant.     "Active Participant" shall mean a Participant whose participation in this Plan
has been approved pursuant to the provisions of Section 1.3, who has entered
into a Participation Agreement pursuant to the provisions of Section 1.4, and whose active participation in the Plan has not been terminated pursuant to the provisions of Section 3.5. 

 
 

           2.3    Affiliated Company.     "Affiliated Company" shall mean any of the following affiliates of the
Sponsor which the Board expressly designates as having the status of an Affiliated Company
for purpose of this Plan: (a) any corporation which is included in a controlled group of corporations, within the meaning of Section 414(b) of the Code, of which controlled group
the Sponsor is also a member; (b) any trade or business which is under common control with the Sponsor within the meaning of Section 414(c) of the Code; (c) any service
organization that is included in an affiliated service group, within the meaning of Section 414(m) of the Code, of which affiliated service group the Sponsor is also a member; (d) any
other entity required to be aggregated with the Sponsor pursuant to 

 

regulations
promulgated under Section 414(o) of the Code and (e) any other entity or entities which are designated by the Board as Affiliates as listed on Exhibit A hereto and
which adopt this Plan. 

 
 

           2.4    Beneficiary.     "Beneficiary" shall mean, with respect to any Participant, the person or persons
and/or entity or entities designated or deemed designated by the Participant
pursuant to Section 12.1 hereof to receive such Participant's Distributable Benefit payable under the Plan following such Participant's death. 

 
 

          2.5    Board; Board of Directors.     "Board" and "Board of Directors" shall mean the board of directors
of the Sponsor. 

 
 

           2.6    Bonuses.     "Bonuses" shall mean bonus compensation which a Participant is entitled to receive from
the Company, including but not limited to bonus compensation based on the
performance of Sponsor and certain affiliates of Sponsor, such as bonuses to which a Participant may be entitled under an incentive plan. Bonuses shall not include any amounts not currently includible
in such Participant's gross income by reason of Code Section 402(e)(3) and/or Code Section 125. Effective as of July 1, 2003, Bonuses shall include "Dividend Equivalency
Rights" actually paid during the Plan Year, which are amounts paid in the form of cash pursuant to certain Participants' employment contracts. 

 
 

           2.7    Bonus Deferrals.     "Bonus Deferrals" shall mean Bonuses deferred at the election of the Participant
pursuant to a Compensation Deferral Agreement under the provisions of
Article IV. 

 
 

          2.8    Code.     "Code" shall mean the Internal Revenue Code of 1986, as amended. 

 
 

           2.9    Commissions.     "Commissions" shall mean fees paid to salespersons as compensation for their
services as specified by the Company on its payroll records, provided that a
substantial portion of the services provided consist of the direct sale of a product or service to the Company's customers, the compensation consists of either a portion of the purchase price or an
amount calculated solely by reference to the volume of sales, and payment of the compensation is contingent on the employer receiving payment from an unrelated customer for the product or services.
Commissions shall not include any amounts not currently includible in such Participant's gross income by reason of Code Section 402(e)(3) and/or Code Section 125. Commissions are
deemed earned by the Participant in the Participant's taxable year in which the customer remits payment (upon which the commission is derived) to the Company. 

 
 

           2.10    Commission Deferrals.     "Commission Deferrals" shall mean Commissions deferred at the election of
the Participant pursuant to a Compensation Deferral Agreement under the provisions of
Article IV. 

 
 

           2.11    Committee.     "Committee" shall mean, as of any date of reference, the committee, if any, then
authorized and appointed to administer this Plan as set forth in
Section 3.1 hereof. 

 
 

           2.12    Company.     "Company" shall mean the Sponsor or an Affiliated Company. A reference to the term
"Company" shall be deemed to be (a) a reference to the Sponsor with
respect to Participants who are employees of the Sponsor and (b) a reference to an Affiliated Company with respect to Participants who are employees of such Affiliated Company. 

 
 

           2.13    Compensation.     "Compensation" shall mean the aggregate of Salary, and Bonuses and Commissions,
including any amounts not currently includible in such Participant's taxable
income by reason of Code Section 402 or Code Section 125. Compensation that is attributable to services performed during the final payroll period of a Participant's taxable year that is
paid in the subsequent taxable year is deemed to have been earned in the subsequent taxable year. 

2

 

 
 

           2.14    Compensation Deferrals.     "Compensation Deferrals" shall mean the Compensation amounts deferred at
the election of the Participant pursuant to a Compensation Deferral Agreement under the
provisions of Article IV (including Bonus Deferrals, Salary Deferral and Commission Deferrals). 

 
 

          2.15    Compensation Deferral Agreement.     "Compensation Deferral Agreement" shall mean the agreement
entered into by a Participant to defer Compensation pursuant to the provisions of Sections 4.2. 

 
 

           2.16    Disability.     "Disability" is deemed to exist, with respect to a Participant, if and when, as a
result of injury or sickness, the Participant is determined by the Social
Security Administration to be totally disabled and qualifies for disability benefits under the Social Security Act as in effect on the date the Participant suffers the Disability. 

 
 

           2.17    Distributable Benefit.     "Distributable Benefit" shall mean the vested interest of a Participant
in his or her Account, which is determined and distributable to the Participant in
accordance with the provisions of Articles V, VI, VIII and XI. 

 
 

           2.18    Early Retirement.     "Early Retirement" shall mean retirement from service for the Sponsor and all
Affiliates on or after the date that the sum of the Participant's age plus Years of
Service equals or exceeds 65. 

 
 

           2.19    Effective Date.     "Effective Date" shall mean February 1, 2000 and, as to this 2006 Amendment
and Restatement, the effective date shall be January 1, 2005. Except as
otherwise provided below, the provisions of this amendment and restatement shall apply only to benefits and contributions which accrued on or after December 31, 2004 and applicable earnings
thereon. Except as other provided below, amounts which had accrued and were vested on December 31, 2004 shall be subject only to the provisions of the Plan which were in effect on
October 1, 2004. 

 
 

          2.20    ERISA.     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended.

 
 

           2.21    Investment.     "Investment" shall mean the one or more funds under one or more variable life
insurance contracts or one or more mutual funds (or any other investment) deemed
suitable by the Committee for purposes of determining the investment experience adjustments that shall be made to a Participant's Account pursuant to the provisions of Section 5.4. 

 
 

           2.22    Normal Retirement.     "Normal Retirement" shall mean retirement from service for the Sponsor and
all Affiliates on or after the date that the Participant attains age 65. 

 
 

          2.23    Participant.     "Participant" shall mean any employee of the Company who is selected and approved
for participation in this Plan as provided in Section 1.3 hereof and who
has executed a Participation Agreement as required under Section 1.4 hereof. 

 
 

           2.24    Plan Year.     "Plan Year" shall mean January 1 through December 31, provided, however,
that the initial Plan Year shall be the period from February 1, 2000
until December 31, 2000. 

 
 

          2.25    Salary.     "Salary" shall mean, with respect to any Participant, the base salary which such
Participant is entitled to receive from the Company, excluding any amounts not
currently includible in such Participant's gross income by reason of Code Section 402(e)(3) and/or Code Section 125. Salary shall not include any Bonuses or Commissions which a
Participant is entitled to receive from the Company. 

 
 

           2.26    Salary Deferrals.     "Salary Deferrals" shall mean Salary amounts deferred at the election of the
Participant pursuant to a Compensation Deferral Agreement under the provisions of
Article IV. 

 
 

           2.27    Section 409A.     "Section 409A" shall mean Section 409A of the Code, as the same may
be amended from time to time, and any successor statute thereto. References to
Section 409A or any 

3

 

requirement
under Section 409A, as the same may be interpreted, construed or applied to this Plan at any particular time, shall be deemed to mean and include, to the extent then applicable and
then in force and effect (but not to the extent overruled, limited or superseded), published guidance, regulations, notices, rulings and similar announcements issued by the Internal Revenue Service or
by the Secretary of the Treasury under or interpreting Section 409A, decisions by any court of competent jurisdiction involving a Participant or a beneficiary and any closing agreement made
under section 7121 of the Code that is approved by the Internal Revenue Service and involves a Participant, all as determined by the Committee in good faith, which determination may (but shall
not be required to) be made in reliance on the advice of such tax counsel or other tax professional(s) with whom the Committee from time to time may elect to consult with respect to any such matter. 

 
 

          2.28    Sponsor.     "Sponsor" shall Impac Funding Corporation, a California corporation. 

 
 

           2.29    Termination.     "Termination" shall mean the voluntary or involuntary termination of a
Participant's employment with the Sponsor and all Affiliated Companies for any reason
(including Disability or death). A leave of absence shall not constitute a termination unless (i) the period of the leave exceeds 6 months and (ii) the Participant has no
continued right to employment (either by contract or by operation of law). 

 
 

           2.30    Valuation Date.     "Valuation Date" shall mean the last of each calendar quarter which is also a
business day, as of which the fair market value of Participants' Accounts shall be
determined. 

 
 

           2.31    Year of Service.     "Year of Service" shall mean any completed 12 month Period of Service
including periods prior to the Effective Date. A Period of Service begins on the date
an employee first performs an hour of service and ends on the date his or her employment ends. Employment ends on the date that the employee quits, retires, is discharged, dies or (if earlier) the
first anniversary of his or her absence for any other reason. Any Period of Service less than 12 months shall be disregarded. 

 
 

ARTICLE III    
    
    ADMINISTRATION OF THE PLAN    
    

 
 
        3.1    Administration By Committee.     This Plan shall be administered by a committee composed of at least
four (4) individuals appointed from time to time by the Board (the "Committee");
provided, however, that if the Board does not appoint a committee, the Board shall constitute the Committee. Any member of the Board or the Committee may be a Participant in this Plan, provided,
however, that any action to be taken by the Board or Committee solely with respect to the particular interest in this Plan of a Board or Committee member who is also a Participant in this Plan shall
be taken by the remaining members of the Board or Committee. Notwithstanding the foregoing, in the event of a Change in Control of the Sponsor, the members of the Committee shall be elected pursuant
to a majority vote of the Participants. Each Participant shall have one vote in any such election, regardless of the value of their Accounts. An election to appoint new Committee members following a
Change in Control of the Sponsor shall be held by the Committee within 60 days of the date of such Change in Control pursuant to procedures established by the Committee. At a minimum, such
procedures shall provide that Participants shall have the right to submit written nominations of one or more persons to serve on the new Committee and all Participants shall be provided with written
notice of any such election at their last known residence at least 30 days before the date of the election. 

 
 

           3.2    Board and Committee Authority; Rules and Regulations.     The Committee shall have discretionary
authority to (a) make, amend, interpret and enforce all appropriate rules and regulations for the administration of
the Plan, and (b) decide or resolve, in its discretion, any and all questions, including interpretations of the Plan, as may arise in connection with the Plan. The Committee shall have
authority to take or approve, in its discretion, all such actions in relation to the Plan (including, without limitation, actions described in the preceding sentence) as may be taken or approved by
the 

4

 

Board;
provided, however, that, except as provided in Section 8.2, the Committee shall have no authority to (a) amend, suspend or terminate the Plan or (b) to designate or remove
a Company from the list of Affiliates authorized to participate in the Plan. Notwithstanding the foregoing, but subject to the provisions of Section 8.2, the Board may, by written notice to the
Committee, withdraw all or any part of the Committee's authority at any time, in which case such withdrawn authority shall immediately revest in the Board. The decision or action of the Committee in
respect of any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final,
conclusive and binding upon all persons having any interest in the Plan. 

 
 

           3.3    Appointment of Agents.     In the administration of the Plan, the Board and/or the Committee may from
the to time employ agents (which may include officers and/or employees of the Sponsor
or any Affiliated Company) and delegate to them such administrative duties as it sees fit and may from time to time consult with counsel who may be counsel to the Sponsor or any Affiliated Company. 

 
 

           3.4    Reports.     Within a reasonable amount of time following each calendar quarter, the Committee shall
cause to be given to each Participant a statement showing the dollar
amount of his or her Account under the Plan as of the end of such calendar quarter. 

 
 

           3.5    Termination of Active Participation.     In the event that the Committee determines that a
Participant's employment performance is no longer at a level which merits continued active participation in the
Plan, the Committee may terminate such Participant's active participation in the Plan (without necessarily terminating such Participant's employment) as of the date specified by the Committee. After
the effective date of a Participant's termination of active participation in the Plan, such Participant shall not be eligible to make Compensation Deferrals under the Plan nor shall such Participant
be entitled to have credited to his or her Account Compensation Deferrals pursuant to the provisions of Section 5.2; nevertheless, such a Participant shall be entitled to have his or her
Account adjusted as provided in Section 5.3 hereof. 

 
 

          3.6    Leave of Absence.     In the event the Participant takes a leave of absence from active employment
with the Sponsor and all Affiliated Companies, the Committee shall determine, in its
discretion, whether such leave of absence shall be deemed to constitute, a Termination for purposes of the Plan. 

5

  

 
 

ARTICLE IV    
    
    COMPENSATION DEFERRALS
  AND COMPANY CONTRIBUTIONS    
    

 
 
        4.1    Eligibility to Make Compensation Deferrals.     Subject to the limitations of this Article IV, each
employee who, as of the last day of the Plan Year immediately preceding the Plan Year for which an
eligibility determination is being made (the "Determination Date"), is expected to meet at least one of the following requirements in the following Plan Year, shall be eligible to enter into a
Compensation Deferral Agreement to make Compensation Deferrals and become a Participant, effective as of first day of the following Plan Year, (or for new employees, and only in their first year of
employment, effective as of the first day of the month following such employee's completion of one month of employment with the Company): 

	(a)
	The
employee is designated as, and performs the functions of an officer of the Company having the rank of at least a Vice President and the employee's annual base salary as of the
Determination Date was at least the greater of: (i) $80,000 or (ii) the amount specified in Section 414(q)(1)(B)(i) of the Internal Revenue Code; or

	(b)
	The
employee is designated as, and performs the functions of an officer of the Company having the rank of at least a Vice President and the employee's Compensation actually received
in the calendar year ending on the Determination Date was at least the greater of: (i) $80,000 or (ii) the amount specified in Section 414(q)(1)(B)(i) of the Internal
Revenue Code. 

 
 

           4.2    Election to Make Compensation Deferrals.     

        (a)    Salary Deferrals.    Each Active Participant who desires to make Salary Deferrals for a Plan Year shall enter
into a Compensation Deferral Agreement for such year specifying the amount of Salary for such year to be deferred (stated in terms of a whole percentage of Salary not to exceed 50%) and such other
information as the Committee shall determine. The amount of Salary Deferrals elected for a Plan Year shall not be less than 5% of Salary. 

        (b)    Monthly Bonus/Commission Deferrals.    Each Active Participant who desires to make Deferrals of monthly Bonuses
or Commissions for a Plan Year shall enter into a Compensation Deferral Agreement for such year specifying the amount of monthly Bonuses or Commissions for such year to be deferred (stated after in
terms of a whole percentage of Bonus or Commission Deferrals not to exceed 100%) and such other information as the Committee shall determine. The amount of monthly Bonus or Commission Deferrals
elected for a Plan Year shall not be less than 5% of monthly Bonuses or Commissions. 

        (c)    Quarterly Bonus/Commission Deferrals.    Each Active Participant who desires to make Deferrals of quarterly
Bonuses or Commissions for a Plan Year shall enter into a Compensation Deferral Agreement for such year specifying the amount of quarterly Bonuses or Commissions for such year to be deferred (stated
in terms of a whole percentage not to exceed 100%) and such other information as the Committee shall determine. The amount of quarterly Bonus or Commission Deferrals elected for a Plan Year shall not
be less than 5% of quarterly Bonuses or Commissions. 

        (d)    Annual Bonus/Commission Deferrals.    Each Active Participant who desires to make Deferrals of annual Bonuses
or Commissions for a Plan Year shall enter into a Compensation Deferral Agreement for such year specifying the amount of annual Bonuses or Commissions for such year to be deferred (stated in terms of
a whole percentage not to exceed 100%) and such other information as the Committee shall determine. The amount of annual Bonus or Commission Deferrals elected for a Plan Year shall not be less than 5%
of annual Bonuses or Commissions. 

8

 

        (e)    Procedures.    Except as provided in subsection (f) regarding performance based compensation, a
Compensation Deferral Agreement under this Section 4.2 shall not be effective unless it is executed by the Participant and returned to the Committee before the first day of the first Plan Year
with respect to which the Agreement relates, or for new employees, and only during their first year of employment, before the date that is 30 days after first date on which the Participant
becomes eligible to participate in the Plan. Once executed, a Compensation Deferral Agreement shall remain in effect for all subsequent Plan Years unless revoked or modified in writing by the
Participant before the first day of the Plan Year for which the revocation or modification is to take effect. An election to make Compensation Deferrals for a Plan Year (including a failure to revoke
or modify a prior election in a timely manner), shall be irrevocable after the beginning of the Plan Year with respect to which the election relates. A Participant's failure to revoke or modify his
original deferral election in writing before the first day of the following Plan Year shall constitute a waiver by the Participant of the Participant's right to elect a
different deferral amount and shall constitute an election to make deferrals as previously elected and shall apply as of the new Plan Year. A Participant shall commence participation in the Plan on
the first day of the month following the month in which the Participant completes all enrollment requirements, including timely submission of all required enrollment documents. If a Participant fails
to meet all such requirements within the 30 day period described above, that Participant shall not be eligible to participate in the Plan until the first day of the Plan Year following the
delivery to and acceptance by the Committee (or its designee) of the required documents. In the event that a Bonus constitutes performance-based compensation based on services performed over a period
of at least 12 months, the election to defer such Bonus must be made no later than 6 months before the end of the period. 

        (f)    Performance Based Compensation.    In the event that Compensation constitutes performance-based compensation as
defined in Code Section 409A and the regulations thereunder, and provided that such Compensation is based on services performed over a period of at least 12 months, the election to defer
such Bonus must be made no later than 6 months before the end of the service period. 

 
 

           4.3    Continuing Participation.     Once an employee becomes eligible to participate in the Plan, the
employee shall continue to be eligible to participate in the Plan until eligibility for
participation is terminated as provided in Section 3.5. 

 
 

           4.4    No Deferrals After a Termination.     No Compensation Deferrals shall be made after a Participant
terminates employment with the Company. 

 
 

           4.5    Spousal Consent.     Compensation Deferrals under this Article IV shall not be subject to the
consent of the Participant's spouse, if any. 

 
 

          4.6    Withholding.     For each Plan Year in which a Participant elects to make a Deferral, the
Participant's employer shall ratably withhold, from that portion of the Participant's
wages, salary, bonus or other compensation that is not being deferred, the Participant's share of taxes under the Federal Insurance Contributions Act and the Federal Unemployment Tax Act ("FICA/FUTA
Taxes") and any other taxes on deferred amounts which may be required or appropriate. If necessary, the Committee shall reduce the Deferral amount in order to comply with this paragraph. In addition,
as Account balances become vested, to the extent that such amounts are subject to FICA/FUTA Taxes or any other taxes, the Participant's employer shall withhold from the Participant's wages, salary,
bonus or other compensation for the year in which such vesting occurs the Participant's share of FlCA/FUTA taxes and such other taxes on the amounts that have vested in such year, all to the extent
necessary and appropriate to satisfy such tax obligations. If necessary, the Committee shall reduce the Deferral amount for the year in which FICA/FUTA or other taxes must be paid in order to comply
with this paragraph. 

9

 

 
 

           4.7    Company Contributions.     Each participating Company may, in its sole discretion, make a Company
Contribution to the Plan in such amount as the Company, in its sole discretion determines.
Company Contributions shall be allocated among the Accounts of Participants as specified by each Company in its sole discretion. 

 
 

           4.8    Special Provisions for 2000 Salary Deferrals.     Notwithstanding the requirement of Section 4.2
that elections to defer Compensation must be made before the first day of the Plan Year, Participants shall
be permitted to make Compensation Deferrals for the period beginning on February 1, 2000 and continuing through December 31, 2000 (the "2000 Deferral Period") pursuant to this
Section 4.8. A Compensation Deferral Agreement under this Section 4.8 shall not be effective unless it is executed by the Participant and returned to the Committee before
January 25, 2000. A Participant's election to make Compensation Deferrals for the 2000 Deferral Period shall be irrevocable after January 25, 2000. 

 
 

ARTICLE V    
    
    ACCOUNTS; VALUATION OF ACCOUNTS; VESTING    
    

 
 
        5.1    Separate Accounts for Participants.     The Committee shall have the responsibility to keep separate
Accounts for each Participant in accordance with the provisions of this Article V reflecting
amounts credited to the Participant under the Plan (subject to the restrictions set forth in Section 9.1 below). Each Participant's Account shall represent a book reserve in the name of the
Participant. 

 
 

           5.2    Crediting of Compensation Deferrals to Participants' Accounts.     All Compensation Deferrals and all
Company Contributions and all deemed earnings thereon made for a particular year shall be credited to separate Accounts (the
"Compensation Deferral Account" and the "Company Contribution Account") for each Participant by whom such deferrals are made. All amounts which were vested as of December 31, 2004 and all
deemed earnings thereon shall be allocated to separate sub-accounts (the "Grandfathered Compensation Deferral Account" and the "Grandfathered Company Contribution Account"). 

 
 

           5.3    Adjustments for Investment Experience.     Each Participant's Account(s) shall be adjusted as of each
Valuation Date. The adjustments made shall be those adjustments reflecting income, gains and losses
that would have been made to the Participant's Account(s) had the dollar value of the Account been invested in the Investments selected by the Participant pursuant to the provisions of
Section 5.4. 

 
 

          5.4    Designation of Investments.     For purposes of determining the adjustments for investment experience
set forth in Section 5.3 above, the dollar value of each Participant's Account(s)
shall be deemed to be invested in accordance with the Participant's investment designation in one or more Investments established by the Committee pursuant to rules established by the Committee. The
Committee may, at its discretion, establish alternative Investments or eliminate any previously established Investments at any time and from time to time. In accordance with rules established by the
Committee, each Participant may elect the Investment in which his or her Account is deemed invested. 

 
 

           5.5    Valuation of Accounts.     A Participant's Account(s) under the Plan shall be valued by the Committee
as of each Valuation Date. A Participant's Account(s) shall be calculated by starting
with the balance of the Account as of the prior Valuation Date (assuming a $0 balance for the initial Valuation Date) and by (a) adding to the Participant's Account those amounts, if any,
credited to the Account of such Participant under Section 5.2 above since the last Valuation date, (b) making the adjustments to such Participant's Account set forth in
Section 5.3 above since the last Valuation Date, and (c) subtracting the aggregate amount of distributions or withdrawals made since the last Valuation Date to or with respect to such
Participant. 

10

 

 
 

           5.6    Vesting of Accounts.     Participant Accounts shall vest in accordance with the following provisions:

        (a)    Compensation Deferrals Account.    A Participant shall be fully vested at all times in the amount of their
Compensation Deferrals Account and Grandfathered Compensation Deferral Account. 

        (b)    Company Contributions Account.    A Participant's Company Contributions Account and Grandfathered Company
Contributions Account shall become fully vested upon the Participant's Early Retirement, Normal Retirement, death or Disability while employed by the Company or upon a Change in Control as defined in
Article XI. In addition, a Participant's Company Contributions Account and Grandfathered Company Contributions Account shall become vested in accordance with the following schedule: 

	Years of Participation
 
	 	Vested Percentage
	 
	Less than 3	 	0	%
	3 or more	 	100	%

        (c)    Year of Participation.    For purposes of this Section 5.6(b), a "Year of Participation" shall be
defined as a twelve consecutive month period beginning on the date that the Company Contribution is approved by the Board of Directors of the Company electing to make a Company Contribution and ending
on the anniversary of such date. No credit shall be given for partial years of participation. 

 
 

          5.7    Forfeitures.     Any amounts not vested at the time of a Participant's Termination or upon termination
of the Plan as provided in Section 8.1 shall be forfeited. 

11

  

 
 

ARTICLE VI    
    
    BENEFITS    
    

 
 
        6.1    Eligibility.     Any Participant who incurs any Termination shall receive his or her Distributable Benefit
in an amount equal to the vested balance of the Participant's Accounts
as of the Valuation Date immediately following such Termination. Except as otherwise provided in Article XI hereof, a Participant's Distributable Benefit shall be paid at the times and in the
amounts specified in this Article VI. A Participant's Distributable Benefit shall be paid (or commenced to be paid) within 30 days after the Valuation Date following such Termination (and such
30 day period shall be extended, in the case of Disability, by such reasonable period of time as the Committee may require to confirm the existence of such Disability) or as soon as practicable
thereafter. 

 
 

           6.2    Form of Plan Benefit.     Any Participant or Beneficiary who is entitled to receive his or her
Distributable Benefit shall receive such Benefit in the form of a lump sum payment unless
(a) the value of the Participant's Accounts exceeds $100,000 in the aggregate, and (b) the Participant elects in accordance with the provisions of Section 6.3 to have his or her
Distributable Benefit paid in substantially equal annual payments payable over fifteen (15) years. In the event a Participant elects to have his or her Distributable Benefit paid in
substantially equal annual payments, the investment experience adjustments set forth in Section 5.3 shall continue to be made to the Participant's Account until the final payment is made to the
Participant, reducing his or her Account balance to zero. 

 
 

           6.3    Election of Form of Benefit.     A Participant shall elect the form in which his or her Distributable
Benefit will be paid in the event the Participant's Benefit exceeds $100,000 and the
Participant has experienced a Termination on account of Early Retirement, Normal Retirement, or Disability in his or her Participation Agreements. Except to the extent that the Participant executes a
new Participation Agreement (which shall be applicable only to amounts deferred in the calendar year following the year in which such new Participation Agreement is entered into), qualifies for a
Hardship Withdrawal as provided in Section 6.4 or elects to further defer a distribution as provided in Section 6.9 of the Plan, the Participant's election as to the timing and form of
distribution that is made on the Participant's Participation Agreement shall apply to all subsequent Compensation Deferrals (other than elections to receive Short-Term Payouts, as provided
in Section 6.5 of the Plan, which shall apply only to the amounts specifically provided for in a Participant's Participation Agreement) and shall be irrevocable once made. 

 
 

           6.4    Hardship Withdrawals.     A Participant may withdraw from his or her Compensation Deferral Account or
Grandfathered Compensation Deferral Account any Participant Deferrals previously made,
but only if the Committee determines that the Participant has an unforeseeable emergency and that a withdrawal is reasonably necessary in order to satisfy the emergency need. 

        (a)   An
"unforeseeable emergency," as used in this Section 6.4, shall mean severe financial hardship to the Participant resulting from a sudden and unexpected illness
or accident of the Participant or a spouse or dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant's property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. 

        (b)   The
determination as to whether a withdrawal is reasonably necessary to satisfy an unforeseeable emergency need is to be made on the basis of all relevant facts and
circumstances. However, a withdrawal shall be necessary in order to satisfy immediate and heavy financial need only if: 

        (i)    The
amount of the withdrawal is not in excess of the amount required to relieve the emergency need or in excess of the amount that such need could not be satisfied from
other sources that are reasonably available to the Participant. The amount of any hardship 

14

 

withdrawal
may include any amounts necessary to pay federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution. 

        (ii)   The
Participant submits a signed statement to the Committee, on which the Committee can reasonably rely, to the extent that the need cannot be relieved: 

        (I)   Through
reimbursement or compensation by insurance or otherwise; 

        (II)  By
reasonable liquidation of the Participant's assets, to the extent such liquidation would not itself cause an immediate and heavy financial need; 

        (III) By
cessation of deferrals under the Sponsor's Retirement Savings Plan; or 

        (IV) By
other withdrawals, distributions or nontaxable loans from any plan maintained by the Company or any other employer, or by borrowing from commercial sources on
reasonable commercial terms. 

        (iii)  A
Participant's resources shall be deemed to include those assets of his or her spouse and minor children that are reasonably available to the Participant. 

        (iv)  A
Participant who makes a hardship withdrawal pursuant to this Section 6.4 shall not be eligible to make Compensation Deferrals for the taxable year of the
Participant immediately following the taxable year of such hardship withdrawal. 

 
 

           6.5    Short Term Pay-Outs.     A Participant may designate in advance on his or her Compensation Deferral
Agreement the time and amount of one or more withdrawals of Compensation Deferrals
(plus, for elections made on or after July 1, 2003, any investment earnings thereon, if so elected) from his or her Account, subject to the following rules: (a) A Participant may
designate a time for withdrawal not earlier than two years after the year that Compensation was deferred under such Compensation Deferral Agreement which otherwise would have been paid absent the
deferral election (such amount to be designated as payable after 2, 3, 5 or 10 years); and (b) such election shall be irrevocable. Notwithstanding a Participant's election to receive a
Short Term Pay-Out in a particular dollar amount, the maximum amount payable as a Short Term Pay-Out shall be limited to the lesser of (a) the account balance of the
Participant's Compensation Deferrals Account and Grandfathered Compensation Deferrals Account or (b) the dollar value of the Compensation Deferrals with respect to the Plan Year for which the
Deferral was elected, each determined as of the Valuation Date preceding the payment of such Short Term Pay-Out. 

 
 

           6.6    Disputes.     In the event of a dispute between a Participant and the Company concerning the amount
of the Participant's Distributable Benefit, the claims procedures and
mandatory arbitration provisions of Article VII shall apply. 

 
 

          6.7    Lump Sum Payment of Withdrawals.     All Short Term Pay-Outs shall be paid to Participants as soon as
reasonably practicable following the approval by the Committee of a properly
completed withdrawal request. All Short Term Pay-Outs shall be made in a single lump sum payment in cash. 

 
 

          6.8    Termination of Plan.     Upon a termination of the Plan pursuant to Section 8.1 or
Section 8.2, all Distributable Benefits shall be paid to Participants (including
Participants receiving installment payments), in the form and at the times provided in this Plan. Except in the case of a Change in Control, a complete termination of all defined contribution
non-qualified deferred compensation plans or the dissolution or bankruptcy of the Company (all as provided in Treasury Regulations under Code Section 409A), payments may not be
accelerated upon termination of the Plan. Payments accelerated due to termination of the Plan on account of a Change in Control must be made within the period that begins 30 days before and
ends 12 months following the date of the Change in Control. 

 
 

           6.9    Subsequent Elections.     Participants may elect to change the date or form of a payment previously
elected provided that (i) such election will not take effect until at least
12 months after the 

15

 

date
on which the election is made, (ii) the first payment with respect to which such election is made must be at least 5 years from the date the payment otherwise would have been made
and (iii) any election related to a payment to be made at a specified time must be made at least 12 months prior to the date of the first scheduled payment. For purposes of the
foregoing, to the extent permitted under Section 409A of the Code and the regulations thereunder, any distribution payment that a Participant elects to receive in a series of equal
installments, rather than in a lump sum payment, shall be treated as a single payment as of the date of the first payment in such series. This provision shall not apply to amounts allocated to a
Participant's Grandfathered Compensation Deferral Account. Such amounts remain subject to the provisions of the Plan as in effect on October 1, 2004. 

 
 

          6.10    Acceleration of Payments.     Except as provided in paragraph 6.8 and paragraphs (a)
through (e) of this Section 6.10, the Plan does not permit the acceleration of the
time or schedule of any payment under the Plan: 

        (a)    Conflicts of interest.    The Plan does permit such acceleration of the time or schedule of a payment under the
Plan as may be necessary to comply with a certificate of divestiture (as defined in Code Section 1043(b)(2)). 

        (b)    Small amounts.    The Plan does permit the acceleration of the time or schedule of a payment to a Participant
under the Plan, provided that (i) the payment accompanies the termination of the entirety of the Participant's interest in the Plan; (ii) the payment is made on or before the later of
(A) December 31 of the calendar year in which occurs the Participant's separation from service from the Company and all Affiliated Companies or (B) the date that is
21/2 months after the Participant's separation from service from the Company and all Affiliated Companies; and (iii) the payment is not greater than $10,000. 

        (c)    Payment of employment taxes.    The Plan does permit the acceleration of the time or schedule of a payment in
the discretion of the Committee to pay the Federal Insurance Contributions Act (FICA) tax imposed under section 3101 and section 3121(v)(2) on compensation deferred under the plan (the
FICA Amount). Additionally, the Plan does permit the acceleration of the time or schedule of a payment to pay the income tax at source on wages imposed under section 3401 on the FICA Amount,
and to pay the additional income tax at source on wages attributable to the pyramiding section 3401 wages and taxes. However, the total payment under this acceleration provision must not exceed
the aggregate of the FICA Amount, and the income tax withholding related to such FICA amount. 

        (d)    Domestic relations order.    The Plan does not permit acceleration of the time or schedule of a payment under
the Plan to Alternate Payees under domestic relations orders. Alternate Payees are entitled to distributions of Plan benefits only at the same time and in the same manner as the Participant. 

        (e)    Payment of income taxes.    The Plan does permit acceleration of the time or schedule of a payment to a
Participant at any time the Plan fails to meet the requirements of section 4094 and these regulations. Such payment may not exceed the amount required to be included in income as a result of
the failure to comply with the requirements of section 409A and the regulations. 

 
 

           6.11    Payments to Key Employees.     If the Company's stock is publicly traded on an established
securities market or otherwise, benefit payments that are payable to a Participant who is a Key
Employee on account of separation from service shall be delayed for a period of 6 months. For purposes of this paragraph, a Participant shall be considered a Key Employee for the
12 month period that begins on April 1 and ends on March 31 of each year, provided that the Participant was considered to be a Key Employee (as defined in Section 416(i) of
the Code), as of the immediately preceding December 31, based on the 12 month period ending on such December 31. In the event that 

16

 

the
Participant is receiving or entitled to receive a distribution in the form of installment payments, such amounts shall be accumulated and then paid at the expiration of the six-month
period. 

 
 

          6.12    Delay of Payments by Company.     Notwithstanding anything to the contrary, in accordance with
Treasury Regulations under Section 409A of the Code, the Company shall delay payments or
temporarily cease distributions to the extent that such payments would reasonably be expected to (a) not be deductible to the Company under the limitations imposed by Section 162(m) of
the Code; (b) violate any securities or other applicable law; (c) violate any covenant or condition of another agreement of the Company, such as a loan condition or covenant; or
(d) as otherwise provided in Treasury Regulations under Section 409A of the Code. Any such delay shall be permissible only to the minimum extent required and such payments shall resume
as of the date specified in the regulations. 

 
 

ARTICLE VII    
    
    APPLICATION FOR BENEFITS    
    

 
 
        7.1    Initial Application.     In order for a Participant to receive or commence receiving his or her
Distributable Benefit, such Participant (or, in the case of a Participant who incurs a
Termination by reason of death, the Participant's Beneficiary) must file a written application for such Plan benefit (an "Initial Application for Benefits") with the Committee. The Initial
Application for Benefits shall contain at least the following information: 

        (a)   The
Participant's name; 

        (b)   The
Participant's date of Termination and the reason for such Termination (that is, whether such Termination is on account of the Participant's death, Disability or
Retirement); 

        (c)   A
brief statement setting forth the basis (with references to pertinent Plan provisions where applicable) of the Participant's claim for his or her Distributable
Benefit; and 

        (d)   Such
other documents and information as the Committee may reasonably require. 

Notwithstanding
the foregoing, if the Committee determines, based on such evidence as it deems appropriate, that a Participant has incurred Termination (or that the Plan has been terminated) and that
such Participant (or other person claiming benefits with respect to such Participant) would be entitled, but for the failure to file an application for benefits, to commence receiving benefit payments
under this Plan, then the Committee may, in its discretion, deem an application for such benefits to have been filed. 

 
 

           7.2    Action on Applications.     At such time as the Committee receives any Initial Application for
Benefits (hereinafter shall be referred to as a "Claim," and the person filing any Claim shall
be referred to hereinafter as a "Claimant"), the Committee shall review the Claim, together with other pertinent information (including any additional information the Committee may reasonably request
from the Claimant), and shall allow or deny the Claim. The Committee shall provide written notice to the Claimant of the Committee's decision to allow or deny the Claim (a "Notice or Action on Claim")
within 60 days after the Committee receives the Claim. If the Claim is denied, the Notice of Action on Claim shall include the following information: 

        (a)   The
specific reasons for the denial; 

        (b)   Specific
reference to pertinent Plan provisions on which the denial is based; 

        (c)   If
applicable, a description of any additional information or material necessary to perfect the Claim, and an explanation of why such information or material is
necessary; and 

        (d)   An
explanation of the claims review procedure. 

17

 

 
 

          7.4    Review Procedure.     

        (a)   A
Claimant is entitled to request the Committee to review any denial by the Committee of his or her Claim. The request for review must be submitted in writing to the
Committee within 60 days after the date the Notice of Action on Claim is deemed given pursuant to Section 12.6 hereof. If the Claimant fails to make a timely request for review, the
Claim will be deemed conclusively to be denied. The Claimant or his or her representative shall be entitled to review all pertinent documents and to submit relevant issues and comments to the
Committee in writing. 

        (b)   The
Committee shall review the Claim and shall render the final decision to allow or deny the Claim. The Committee shall give written notice of its decision to the
Claimant within 60 days after it receives the written request for review. If the Claim is denied, such written notice shall recite the facts on which the Committee based its decision as well as
its reasons therefore, with specific reference to pertinent Plan provisions where applicable. 

 
 

          7.5    Mandatory Arbitration.     Following exhaustion of all administrative remedies as described in
Sections 7.1-7.4, above, in the event of any unresolved dispute under the
provisions of this Plan, such dispute shall be submitted to arbitration in accordance with the provisions of Section 12.12 of the Plan. 

 
 

          7.6    Claims By Representative.     In the event that any person who is entitled (or required) to
file a Claim under this Article VII is deceased or is mentally or physically
incapacitated in a manner that prevents such person from filing such Claim, then such Claim may be filed by another person on behalf of such Claimant, subject to such other person's providing to the
Committee or Committee, as applicable, reasonable verification of such other person's authorization to act on the Claimant's behalf. 

18

  

 
 

ARTICLE VIII    
    
    CHANGES TO THE PLAN    
    

 
 
        8.1    Termination, Suspension or Amendment of Plan by Board.     Subject to the provisions of Section 8.2 and
Code Section 409A, the Board may, in its sole discretion, terminate or suspend this Plan at any time or
from time to time, in whole or in part, and, except as otherwise provided by the Board, no further Compensation Deferrals or Company Contributions shall be credited to Participants' Accounts as of the
date of such termination or suspension. Subject to the provisions of Section 8.3, the Board may amend this Plan at any time or from time to time, and any amendment may provide benefits
different in kind and/or amount from those herein set forth. Notwithstanding the foregoing, in the case of any termination, suspension or amendment of this Plan, such termination, suspension or
amendment shall not adversely affect (a) the Account balance of any such Participant as of the effective date of such termination, suspension or amendment, (b) the Participant's right to
the investment experience adjustments after any suspension or amendment pursuant to the provisions of Section 5.3, (c) the Participant's right to investment experience adjustments after
termination of the Plan, up to and including the effective date of such termination, pursuant to the provisions of Section 5.3, or (d) the right or ability of any such Participant (and,
if applicable, such Participant's Beneficiary) to receive his or her vested Distributable Benefit in accordance with the terms of this Plan as in effect immediately prior to such termination,
suspension or amendment. Any termination, suspension or amendment of this Plan by the Board shall be binding on each Affiliated Company, without further action by any such Affiliated Company. 

 
 

           8.2    Termination of Plan Upon a Change in Control.     Notwithstanding the provisions of Section 8.1
of the Plan, upon the occurrence of a Change in Control, the Committee may, in its sole discretion, elect to
terminate all or a portion of this Plan, in which case no further Compensation Deferrals or Company Contributions shall be credited to Participants' Accounts as of the date of such termination and
benefits shall be paid out as soon as practicable thereafter as provided in Section 6.8. In the case of any termination of the Plan by the Committee, such termination shall not adversely affect
(a) the Account balance of any such Participant as of the effective date of such termination, (b) the Participant's right to investment experience adjustments after termination of the
Plan, up to and including the effective date of such termination, pursuant to the provisions of Section 5.3, or (c) subject to the provisions of Section 6.8, the right or ability
of any such Participant (and, if applicable, such Participant's Beneficiary) to receive his or her vested Distributable Benefit in accordance with the terms of this Plan as in effect immediately prior
to such termination. Any termination of this Plan by the Committee pursuant to this Section 8.2 shall be binding on each Affiliated Company, without further action by any such Affiliated
Company. 

 
 

           8.3    Amendment of Plan Following a Change in Control.     Notwithstanding the provisions of
Section 8.1 of the Plan, upon the occurrence of a Change in Control of the Sponsor, if the Committee does not terminate
the Plan as provided in Section 8.2, the Plan shall continue in force as provided in Section 12.4; provided, however, that for a period of 24 months following the date of a Change
in Control of the Sponsor, no amendment to the Plan shall be effective unless such amendment is (a) consented to in writing by a majority of Plan Participants pursuant to procedures established
by the Committee or (b) required to comply with Section 409A of the Internal Revenue Code and the regulations thereunder. 

 
 

ARTICLE IX    
    
    FUNDING    
    

 
 
        9.1    In General.     Benefits under this Plan shall be payable solely from the general assets of the Sponsor (and,
 with respect to any Participant who is an employee of an Affiliated
Company, also from the general assets of such Affiliated Company), and no person shall be entitled to look to any other 

21

 

source
for payment of such benefits. The Sponsor (and, if applicable, any Affiliated Company) shall have and possess all title to, and beneficial interest in, any and all funds or reserves maintained
or held by the Sponsor (or such Affiliated Company) on account of any obligation to pay benefits as required this Plan, whether or not earmarked as a fund or reserve for such purpose; any such funds,
other property or reserves shall be subject to the claims of the creditors of the Sponsor (or such Affiliated Company), and the provisions of this Plan are not intended to create, and shall not be
interpreted as vesting, in any Participant, Beneficiary or other person, any right to or beneficial interest in any such funds, other property or reserves. Nothing in this Section 9.1 shall be
construed or interpreted as prohibiting or restricting the establishment of a grantor trust (within the mean of Code Section 671) from which benefits under this Plan may be payable, so long as
such trust or contract does not cause the plan to be funded for purposes of Sections 201(a), 301(a) (3) or 401(a) (1) of ERISA. 

 
 

           9.2    Establishment of Rabbi Trust.     The Sponsor has established (or will establish) a trust ("Trust")
substantially in the form attached hereto as Exhibit B for the purpose of funding
benefits under this Plan as provided in this Article IX and for the purpose of paying the reasonable legal and administration fees and expenses incurred by Participants and their Beneficiaries
in connection with lawsuits, actions or other proceedings brought by such persons to enforce their rights under the Plan. 

 
 

           9.3    Funding of Rabbi Trust.     Subject to the amendment or termination of this Plan and the restrictions
set forth in Section 9.1, the Company shall contribute to the Trust, on behalf of
each Participant, the amount of Compensation Deferrals made by such Participant and the amount of any Company Contribution allocated to such Participant's Account. Amounts corresponding to Salary
Deferrals for each payroll period shall be contributed to the Trust as soon as reasonably practicable following the end of such payroll period. Bonus Deferrals for a Plan Year shall be contributed to
the Trust as soon as reasonably practicable following the date on which such Bonus amounts otherwise would have been paid to the Participant. 

 
 

ARTICLE X    
    
    AFFILIATED COMPANIES    
    

 
 
        10.1    Affiliated Company Participation.     The Board of Directors may revoke or modify an Affiliated Company's
participation in this Plan at any time and for any or no reason, or terminate this Plan with
respect to such Affiliated Company's employees and Participants, subject to the provisions of Section 8.1 concerning changes in the Plan. 

 
 

           10.2    Adoption Agreement.     Any Affiliated Company participating in the Plan shall adopt the Plan and
shall agree to be bound by the terms and conditions of the Plan and any future changes
made by the Board to the Plan. 

 
 

ARTICLE XI    
    
    CHANGE IN CONTROL    
    

 
 
        11.1    Change in Control.     As used in this Plan, "Change in Control" shall mean the following and shall be
deemed to occur with respect to each respective Company that is a corporation (and
shall be referred to herein as the "Corporation") if any of the following events occur: a change in the ownership of the corporation, a change in the effective control of the corporation, or a change
in the ownership of a substantial portion of the assets of the corporation. 

        (a)    Change in the ownership of a corporation.    A change in the ownership of a corporation occurs on the date that
any one person, or more than one person acting as a group (as defined in Section (d)), other than other than any person who was the beneficial owners of securities of such corporation as of
January 1, 2005, acquire ownership of stock of the corporation that, together with stock held by such
person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation. 

22

  

        (b)    Change in the effective control of the corporation.    A change in the effective control of a corporation
occurs on the date that either— 

        (i)    Any
one person, or more than one person acting as a group (as determined under Section (d), acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing 35% or more of the total voting power of the stock of such corporation; or 

        (ii)   a
majority of members of the corporation's board of directors is replaced during any 12-month period by directors whose appointment or election is not
endorsed by a majority of the members of the corporation's board of directors prior to the date of the appointment or election, provided that for purposes of this Section (ii) the term
corporation refers solely to the relevant corporation identified in Section (e) for which no other corporation is a majority shareholder for purposes of that Section. 

A
change in effective control also may occur in any transaction in which either of the two corporations involved in the transaction has a Change in Control event under Section (a) or (c). If
any one person, or more than one person acting as a group, is considered to effectively control a corporation, the acquisition of additional control of the corporation by the same person or persons is
not considered to cause a change in the effective control of the corporation (or to cause a change in the ownership of the corporation) within the meaning of Section (a). 

        (c)    Change in the ownership of a substantial portion of a corporation's assets.    A change in the ownership of a
substantial portion of a corporation's assets occurs on the date that any one person, or more than one person acting as a group (as determined in Section (d), acquires (or has acquired during
the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than
40% of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the
assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. There is no Change in Control under this
Section (c) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer, as provided in this Section (c).
A transfer of assets by a corporation is not treated as a change in the ownership of such assets if the assets are transferred to— 

        (i)    A
shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock; 

        (ii)   An
entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the corporation; 

        (iii)  A
person, or more than one person acting as a group, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of
the corporation; or 

        (iv)  An
entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a person described in Section (iii). 

For
purposes of this Section (c) and except as otherwise provided, a person's status is determined immediately after the transfer of the assets. 

        (d)    Persons acting as a group.    Persons will not be considered to be acting as a group solely because they
purchase assets or own stock of the same corporation at the same time, or as a result of the same public offering. However, persons will be considered to be acting as a group if they 

23

 

are
owners of a corporation that enters into a merger, consolidation, purchase or acquisition of assets or stock or similar business transaction with the corporation. 

        (i)    For
purposes of Section (a), if a person, including an entity or entity shareholder, owns stock in both corporations that enter into a merger, consolidation,
purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation prior to the transaction giving rise to the
change and not with respect to the ownership interest in the other corporation. 

        (ii)   For
purposes of Sections (b) and (c), if a person, including an entity or entity shareholder, owns stock in both corporations that enter into a merger,
consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only to the extent of the
ownership of assets of that corporation or with respect to stock ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the
other corporation. 

        (e)    Construction.    To constitute a Change in Control as to a Plan Participant, the relevant event described in
Sections (a), (b) or (c) above must relate to (i) the corporation for whom the Participant is performing services at the time of the event, (ii) the corporation that is liable for
the payment of the deferred compensation (or all corporations liable for the payment if more than one corporation is liable), or (iii) a corporation that is a majority shareholder of a
corporation identified in (i) or (ii), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a
corporation identified in (i) or (ii). For purposes of this Article 11, Code Sections 409A and 318(a) apply to determine stock ownership and the definition of Change in Control. 

 
 

ARTICLE XII    
    
    MISCELLANEOUS PROVISIONS    
    

 
 
        12.1    Designation of Beneficiary.     A Participant shall be entitled to designate one or more individuals or
entities (including a trust or trusts), in any combination, as his or her "Beneficiary" or
"Beneficiaries" to receive any Plan benefit payments to which such Participant is entitled as of, or by reason of, his or her death; provided, however, that the designation of any individual or entity
other than the Participant's spouse shall be effective only with the consent of the Participant's spouse. Any such designation may be made or changed at any time prior to the Participant's death by
written notice filed with the Committee, with such written notice to be in such form and contain such information as the Committee may from time to time determine. In the event that (a) a
Beneficiary designation is not on file or is not effective at the date of a Participant's death, (b) no Beneficiary survives the Participant, or (c) no Beneficiary is living at the time
any payment becomes payable under this Plan, then, for purposes of making any further payment of any unpaid benefits under the Plan, such Participant's Beneficiary or Beneficiaries shall be deemed to
be the Participant's estate. A Beneficiary entitled to receive any Plan Benefit payments pursuant to this Section 12.1 shall receive such payments at the time(s) and in the manner elected by
the Participant in his or her Participation Agreement. 

 
 

           12.2    Payments During Incapacity.     The Committee shall have no duty or obligation to determine the
competence or capacity of any Participant or Beneficiary. However, in the event that the Committee
is made aware that a Participant (or Beneficiary) is under mental or physical incapacity at the time of any payment to be made to such Participant (or Beneficiary) pursuant to this Plan, any such
payment may be made to the conservator or other legally appointed personal representative having authority over and responsibility for the person or estate of such Participant (or Beneficiary), as the
case may be, and for purposes of such payment references in this Plan to the Participant (or Beneficiary) shall mean and refer to such conservator or other personal representative of the person or 

24

 

estate
of the Participant (or Beneficiary), any such payment may be made to any person or institution that has apparent responsibility for the person and/or estate of the Participant (or Beneficiary)
as determined by the Committee. Any payment made in accordance with the provisions of this Section 12.2 to a person or institution other than the Participant (or Beneficiary) shall be deemed
for all purposes of this Plan as the equivalent of a payment to such Participant (or Beneficiary), and the Company shall have no further obligation or responsibility with respect to such payment. 

 
 

           12.3    Prohibition Against Assignment.     Except as otherwise expressly provided in Section 12.1 and
Section 12.2 hereof, the rights, interests and benefits of a Participant under this Plan
(a) may not be sold, assigned, transferred, pledged, hypothecated, gifted, bequeathed or otherwise disposed of to any other party by such Participant or any Beneficiary, executor,
administrator, heir, distribute or other person claiming under such Participant, and (b) shall not be subject to execution, attachment or similar process. Any attempted sale, assignment,
transfer, pledge, hypothecation, gift, bequest or other disposition of such rights, interests or benefits contrary to the foregoing provisions of this Section 12.3 shall be null and void and
without effect. 

 
 

          12.4    Assumption of Plan.     The Company expressly agrees that it shall not merge or consolidate into or
with another corporation, or sell substantially all of its assets to another
corporation, firm or person until such corporation, firm or person expressly agrees in writing to assume and discharge the duties and obligations of the Company under this Plan. The powers, duties,
rights and obligations of the Company under this Plan may be assigned (i) to any company into which the Company may be merged, or with which it may be consolidated, or (ii) to any
company resulting from any merger, reorganization or consolidation to which the Company is a party, or (iii) to any company to which the business of the Company may be transferred, to the
extent affected Participants transfer their employment to such company. If such an assignment occurs, the successor-in-interest to the Company shall assume the powers, duties,
rights and obligations of the Company in writing. 

 
 

           12.5    Binding Effect.     The provisions of this Plan shall be binding upon the Sponsor, the Participants,
all Affiliated Companies employing any Participants, and any
successor-in-interest, beneficiary, heir or personal representative to the Sponsor, any Participant or any such Affiliated Company. 

 
 

          12.6    No Right to Employment.     This Plan is voluntary on the part of the Sponsor and its Affiliated
Companies, and shall not be deemed to constitute an employment contract between any
Participant and the Sponsor or any Affiliated Company, nor shall the adoption or existence of the Plan or any provision contained in the Plan be deemed to be a required condition of the employment of
any Participant. Nothing contained in this Plan shall be deemed to give any Participant the right to continued employment with the Sponsor or any Affiliated Company, and the Sponsor and its Affiliated
Companies may terminate any Participant at any time, in which case the Participant's rights arising under this Plan shall be only those expressly provided under the terms of this Plan. 

 
 

           12.7    Notices.     All notices, requests, or other communications (hereinafter collectively referred to as
"Notices") required or permitted to be given hereunder or which are given
with respect to this Plan 

25

 

shall
be in writing and may be personally delivered, or may be sent by United States registered mail, postage prepaid, return receipt requested and addressed as follows: 

	To the Sponsor,

and Affiliated Company

or the Committee at:	 	Impac Funding Corporation

1401 Dove Street

Newport Beach, CA 92660	 	 
	

To Participant at:	
 	

The Participant's residential

mailing address as reflected

in the Sponsor's or Affiliated

Company's employment records	
 	

 

A
Notice which is delivered personally shall be deemed given as of the date of personal delivery, and a Notice mailed as provided herein shall be deemed given on the date received. Any Participant may
change his or her address for purposes of Notices hereunder pursuant to a Notice to the Committee, given as provided herein, advising the Committee of such change. The Sponsor, any Affiliated Company
and/or the Committee may at any time change its address for purposes of Notices hereunder pursuant to a Notice to all affected Participants, given as provided herein, advising such Participants of
such change. Notwithstanding the foregoing, the Committee may specify that any election, form, designation, agreement or communication by a Participant under the Plan shall be made or submitted online
at a site on the World Wide Web designated for such purpose, or by other reasonable electronic means to which Participants have reasonable access. 

 
 

           12.8    Governing Law.     This Plan shall be governed by, interpreted under and construed and enforced in
accordance with the internal laws, and not the laws pertaining to conflicts or
choice of laws, of the State of California applicable to agreements made and to be performed wholly within the State of California. 

 
 

           12.9    Titles and Headings; Gender of Terms.     Article and Section headings herein are for reference
purposes only and shall not be deemed to be part of the substance of this Plan or in any way to enlarge or
limit the meaning or interpretation of any provision in this Plan. Use in this Plan of the masculine, feminine or neuter gender shall be deemed to include each of the omitted genders if the context so
requires. 

 
 

           12.10    Severability.     In the event that any provision of this Plan is found to be invalid or otherwise
unenforceable by a court or other tribunal of competent jurisdiction, such
invalidity or unenforceability shall not be construed as rendering any other provision contained herein invalid or unenforceable, and all such other provisions shall be given full force and effect to
the same extent as though the invalid and unenforceable provision was not contained herein. 

 
 

           12.11    Tax Effect of Plan.     Neither the Sponsor nor any Affiliated Company warrants any tax benefit or
any financial benefit under this Plan. Without limiting the foregoing, the Sponsor and
each Affiliated Company and their directors, officers, employees and agents shall be held harmless by the Participant from, and shall not be subject to any liability on account of, any Federal or
State tax consequences or any consequences under ERISA of any determination as to the amount of plan 

26

 

benefits
to be paid, the method by which plan benefits are paid, the persons to whom plan benefits are paid, or the commencement or termination of the payment of plan benefits. 

 
 

           12.12    Mandatory Arbitration.     In the event of any unresolved dispute between a Participant or
Beneficiary and the Company or the Trustee regarding this Plan following completion of the claims
review process, such dispute shall be submitted to arbitration in accordance with the rules and regulations of the American Arbitration Association for the arbitration of employee benefit plan claim
disputes (including the rules contained therein for the selection of an arbitrator who is familiar with employee benefit plans). The written determination of the arbitrator shall be final, binding and
conclusive on the Parties and judgment on the award rendered by the arbitrator may be entered by any court having jurisdiction thereof. The prevailing party or parties of any arbitration of legal or
equitable proceeding shall be entitled to have and recover his or their attorney's fees, costs and expenses as determined by the arbitrator. 

 
 

           12.13    Illegal Provisions.     The Company intends that this Plan will be established, construed,
administered and applied in compliance with Section 409A of the Internal Revenue Code,
and if any provision of this Plan is determined by the Committee to be in violation of such requirements, or if any provision of this Plan shall be held illegal or invalid for any other reason, the
illegality or invalidity shall not affect the remaining parts of this Plan, but this Plan shall, to the extent possible, be construed and enforced in compliance with Section 409A of the Code
and other legal requirements or, if that is not possible, as if the illegal or violating provisions were invalid and had never been included in the Plan. 

        IN
WITNESS WHEREOF, the Sponsor has caused this Plan to be executed by its duly authorized officer effective as of the Effective Date hereof. 

	 	 	IMPAC FUNDING CORPORATION
	

 	
 	

 	

 
	 	 	By:	/s/  RICHARD J. JOHNSON      

	 	 	Title:	EVP CFO

27

QuickLinks

Exhibit 10.9

IMPAC FUNDING CORPORATION 2006 AMENDED AND RESTATED DEFERRED COMPENSATION PLAN

ARTICLE I INTRODUCTION

1.1 Purpose.

1.2 Effective Date and Term.

1.3 Participation.

1.4 Participation Agreement.

1.5 Applicability of ERISA.

ARTICLE II DEFINITIONS

2.1 Account.

2.2 Active Participant.

2.3 Affiliated Company.

2.4 Beneficiary.

2.5 Board; Board of Directors.

2.6 Bonuses.

2.7 Bonus Deferrals.

2.8 Code.

2.9 Commissions.

2.10 Commission Deferrals.

2.11 Committee.

2.12 Company.

2.13 Compensation.

2.14 Compensation Deferrals.

2.15 Compensation Deferral Agreement.

2.16 Disability.

2.17 Distributable Benefit.

2.18 Early Retirement.

2.19 Effective Date.

2.20 ERISA.

2.21 Investment.

2.22 Normal Retirement.

2.23 Participant.

2.24 Plan Year.

2.25 Salary.

2.26 Salary Deferrals.

2.27 Section 409A.

2.28 Sponsor.

2.29 Termination.

2.30 Valuation Date.

2.31 Year of Service.

ARTICLE III ADMINISTRATION OF THE PLAN

3.1 Administration By Committee.

3.2 Board and Committee Authority; Rules and Regulations.

3.3 Appointment of Agents.

3.4 Reports.

3.5 Termination of Active Participation.

3.6 Leave of Absence.

ARTICLE IV COMPENSATION DEFERRALS AND COMPANY CONTRIBUTIONS

4.1 Eligibility to Make Compensation Deferrals.

4.2 Election to Make Compensation Deferrals.

4.3 Continuing Participation.

4.4 No Deferrals After a Termination.

4.5 Spousal Consent.

4.6 Withholding.

4.7 Company Contributions.

4.8 Special Provisions for 2000 Salary Deferrals.

ARTICLE V ACCOUNTS; VALUATION OF ACCOUNTS; VESTING

5.1 Separate Accounts for Participants.

5.2 Crediting of Compensation Deferrals to Participants' Accounts.

5.3 Adjustments for Investment Experience.

5.4 Designation of Investments.

5.5 Valuation of Accounts.

5.6 Vesting of Accounts.

5.7 Forfeitures.

ARTICLE VI BENEFITS

6.1 Eligibility.

6.2 Form of Plan Benefit.

6.3 Election of Form of Benefit.

6.4 Hardship Withdrawals.

6.5 Short Term Pay-Outs.

6.6 Disputes.

6.7 Lump Sum Payment of Withdrawals.

6.8 Termination of Plan.

6.9 Subsequent Elections.

6.10 Acceleration of Payments.

6.11 Payments to Key Employees.

6.12 Delay of Payments by Company.

ARTICLE VII APPLICATION FOR BENEFITS

7.1 Initial Application.

7.2 Action on Applications.

7.4 Review Procedure.

7.5 Mandatory Arbitration.

7.6 Claims By Representative.

ARTICLE VIII CHANGES TO THE PLAN

8.1 Termination, Suspension or Amendment of Plan by Board.

8.2 Termination of Plan Upon a Change in Control.

8.3 Amendment of Plan Following a Change in Control.

ARTICLE IX FUNDING

9.1 In General.

9.2 Establishment of Rabbi Trust.

9.3 Funding of Rabbi Trust.

ARTICLE X AFFILIATED COMPANIES

10.1 Affiliated Company Participation.

10.2 Adoption Agreement.

ARTICLE XI CHANGE IN CONTROL

11.1 Change in Control.

ARTICLE XII MISCELLANEOUS PROVISIONS

12.1 Designation of Beneficiary.

12.2 Payments During Incapacity.

12.3 Prohibition Against Assignment.

12.4 Assumption of Plan.

12.5 Binding Effect.

12.6 No Right to Employment.

12.7 Notices.

12.8 Governing Law.

12.9 Titles and Headings; Gender of Terms.

12.10 Severability.

12.11 Tax Effect of Plan.

12.12 Mandatory Arbitration.

12.13 Illegal Provisions.

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