Document:

exv10w3

 

Exhibit 10.3

 

 

 

 

 

THE CORPORATE EXECUTIVE BOARD

DEFERRED COMPENSATION PLAN, AS AMENDED

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	ARTICLE I TITLE AND DEFINITIONS	 	 	1	 
	 
	 	1.1	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II PARTICIPATION	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III DEFERRAL ELECTIONS	 	 	5	 
	 
	 	3.1	 	Elections to Defer Compensation	 	 	5	 
	 
	 	3.2	 	Investment Elections	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV DEFERRAL ACCOUNTS AND TRUST FUNDING	 	 	7	 
	 
	 	4.1	 	Deferral Accounts	 	 	7	 
	 
	 	4.2	 	Company Contribution Account	 	 	7	 
	 
	 	4.3	 	Trust Funding	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V VESTING	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI DISTRIBUTIONS	 	 	9	 
	 
	 	6.1	 	Distribution of Deferred Compensation and Discretionary Company	 	 	 	 
	 
	 	 	 	Contributions	 	 	9	 
	 
	 	6.2	 	Reserved	 	 	10	 
	 
	 	6.3	 	Hardship Distribution	 	 	10	 
	 
	 	6.4	 	Inability to Locate Participant	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII ADMINISTRATION	 	 	11	 
	 
	 	7.1	 	Committee	 	 	11	 
	 
	 	7.2	 	Committee Action	 	 	11	 
	 
	 	7.3	 	Powers and Duties of the Committee	 	 	11	 
	 
	 	7.4	 	Construction and Interpretation	 	 	12	 
	 
	 	7.5	 	Information	 	 	12	 
	 
	 	7.6	 	Compensation, Expenses and Indemnity	 	 	12	 
	 
	 	7.7	 	Quarterly Statements	 	 	12	 
	 
	 	7.8	 	Disputes	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII MISCELLANEOUS	 	 	14	 
	 
	 	8.1	 	Unsecured General Creditor	 	 	14	 
	 
	 	8.2	 	Restriction Against Assignment	 	 	14	 
	 
	 	8.3	 	Withholding	 	 	14	 
	 
	 	8.4	 	Amendment, Modification, Suspension or Termination	 	 	15	 
	 
	 	8.5	 	Governing Law	 	 	15	 
	 
	 	8.6	 	Receipt or Release	 	 	15	 
	 
	 	8.7	 	Payments on Behalf of Persons Under Incapacity	 	 	16	 
	 
	 	8.8	 	Limitation of Rights and Employment Relationship	 	 	16	 
	 
	 	8.9	 	Headings	 	 	16	 

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THE CORPORATE EXECUTIVE BOARD

DEFERRED COMPENSATION PLAN

          The Corporate Executive Board Company (the “Company”) has determined that it is in the best
interests of the Company to establish The Corporate Executive Board Deferred Compensation Plan (the
“Plan”) for a select group of management or highly compensated employees in order to serve as a
vehicle for attracting, incentivizing, and retaining high quality executive employees. The Plan
was originally adopted as of the Effective Date and has been subsequently amended, effective as of
January 1, 2006, to read as follows:

ARTICLE I

TITLE AND DEFINITIONS

	 	1.1	 	Definitions.

          Whenever the following words and phrases are used in this Plan, with the first letter
capitalized, they shall have the meanings specified below.

          (a) “Account” or “Accounts” shall mean all of such accounts as are specifically authorized for
inclusion in this Plan.

          (b) “Base Salary” shall mean a Participant’s annual base salary and such commissions and
bonuses as may be designated as deferrable as Base Salary by the Committee and which do not
otherwise meet the definition of Incentive Compensation. Base Salary shall exclude all other
bonus, incentive and all other remuneration for services rendered to Company and shall be
determined prior to reduction for any salary contributions to a plan established pursuant to
Sections 125, 132 or 401(k) of the Code. In the case of a Participant who is a member of the Board
of Directors, the term “Base Salary” shall also include any director fees or director retainers
otherwise payable to such Participant.

          (c) “Beneficiary” or “Beneficiaries” shall mean the person or persons, including a trustee,
personal representative or other fiduciary, last designated in writing by a Participant in
accordance with procedures established by the Committee to receive the benefits specified hereunder
in the event of the Participant’s death. No beneficiary designation shall become effective until
it is filed with the Committee. Any designation shall be revocable at any time through a written
instrument filed by the Participant with the Committee with or without the consent of the previous
Beneficiary. No designation of a Beneficiary other than the Participant’s spouse shall be valid
unless consented to in writing by such spouse. If there is no such designation or if there is no
surviving designated Beneficiary, then the Participant’s surviving spouse shall be the Beneficiary.
If there is no surviving spouse to receive any benefits payable in accordance with the preceding
sentence, the Participant’s estate, as represented by the duly appointed and currently acting
personal representative of the Participant’s estate (which shall include either the Participant’s
probate estate or living trust) shall be the Beneficiary. In any case

 

 

where there is no such personal representative of the Participant’s estate duly appointed and
acting in that capacity within ninety (90) days after the Participant’s death (or such extended
period as the Committee determines is reasonably necessary to allow such personal representative to
be appointed, but not to exceed one hundred eighty (180) days after the Participant’s death), then
Beneficiary shall mean the person or persons who can verify by affidavit or court order to the
satisfaction of the Committee that they are legally entitled to receive the benefits specified
hereunder. In the event any amount is payable under the Plan to a minor, payment shall not be made
to the minor, but instead be paid (a) to that person’s living parent(s) to act as custodian, (b) if
that person’s parents are then divorced, and one parent is the sole custodial parent, to such
custodial parent, or (c) if no parent of that person is then living, to a custodian selected by the
Committee to hold the funds for the minor under the Uniform Transfers or Gifts to Minors Act in
effect in the jurisdiction in which the minor resides. If no parent is living and the Committee
decides not to select another custodian to hold the funds for the minor, then payment shall be made
to the duly appointed and currently acting guardian of the estate for the minor or, if no guardian
of the estate for the minor is duly appointed and currently acting within sixty (60) days after the
date the amount becomes payable, payment shall be deposited with the court having jurisdiction over
the estate of the minor. Payment by Company pursuant to any unrevoked Beneficiary designation, or
to the Participant’s estate if no such designation exists, of all benefits owed hereunder shall
terminate any and all liability of Company.

          (d) “Board of Directors” or “Board” shall mean the Board of Directors of Company.

          (e) [Reserved]

          (f) “Code” shall mean the Internal Revenue Code of 1986, as amended.

          (g) “Committee” shall mean the Compensation Committee of the Board, which shall administer the
Plan in accordance with Article VII.

          (h) “Company” shall mean The Corporate Executive Board Company.

          (i) “Company Contribution Account” shall mean the bookkeeping account maintained by the
Committee for each Participant that is credited with an amount equal to the Participant’s Company
Discretionary Contribution Amount, if any, and Company Matching Contribution Amount, if any, and
earnings and losses on such amounts pursuant to Section 4.2.

          (j) “Company Discretionary Contribution Amount” shall mean such discretionary amount if
contributed by the Company for a Participant for a Plan Year. Such amount may differ from
Participant to Participant in amount, including no contribution and including differences expressed
as different percentages of Compensation.

          (k) “Company Matching Contribution Amount” shall mean such amount, if any, contributed by the
Company for each Participant for a Plan Year. Such amount may differ from Participant to
Participant in amount, including no contribution and including differences expressed as different
percentages of Compensation.

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          (l) “Compensation” shall mean Base Salary, Incentive Compensation and Ad Hoc Awards.

          (m) “Deferral Account” shall mean the bookkeeping account maintained by the Committee for each
Participant that is credited with amounts equal to (1) the portion of the Participant’s
Compensation that he or she elects to defer, and (2) earnings and losses pursuant to Section 4.1.

          (n) “Disabled” or “Disability” shall mean the Participant is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, receiving income
replacement benefits for a period of not less than three months under a disability program covering
employees of the Company. The Committee shall determine whether or not a Participant has become
Disabled for purposes of the Plan.

          (o) “Distributable Amount” shall mean the vested balance in the Participant’s Deferral Account
and Company Contribution Account.

          (p) “Effective Date” shall be July 1, 2005

          (q) “Eligible Employee” shall mean (i) those employees who job titles are listed in Exhibit A
attached hereto and (ii) any outside director of the Company.

          (r) “Fund” or “Funds” shall mean one or more of the investment funds selected by the Committee
pursuant to Section 3.2(b).

          (s) “Hardship Distribution” shall mean a severe financial hardship to the Participant
resulting from an unforeseeable emergency. An unforeseeable emergency shall mean a severe
financial hardship to the Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as defined in Section 152(a) of the Code) 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. The
circumstances that would constitute an unforseeable emergency will depend upon the facts of each
case, but, in any case, a Hardship Distribution may not be made to the extent that such hardship is
or may be relieved (i) through reimbursement or compensation by insurance or otherwise, (ii) by
liquidation of the Participant’s assets, to the extent the liquidation of assets would not itself
cause severe financial hardship, or (iii) by cessation of deferrals under this Plan.

          (t) “Incentive Compensation” shall mean such bonuses and/or commissions as may be designated
as deferrable as Incentive Compensation by the Committee and which are based on services performed
for the Company over a period of at least twelve (12) months and which meet the requirements of
“performance-based compensation” as defined in Section 409A(a)(4)(B)(iii) of the Code.

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          (u) “Initial Election Period” shall mean the thirty (30) day period prior to the Effective
Date of the Plan, or the thirty (30) day period following the time an employee shall first be
designated by the Company as an Eligible Employee.

          (v) “Interest Rate” shall mean, for each Fund, an amount equal to the net gain or loss on the
assets of such Fund determined on a daily basis.

          (w) “Key Employee” shall mean those employees defined under Section 416(i) of the Code without
regard to paragraph (5) thereof.

          (x) “Participant” shall mean any Eligible Employee who becomes a Participant in this Plan in
accordance with Article II.

          (y) “Payment Date” shall be the date selected by the Participant to receive or to commence
receipt of benefits under the Plan, subject to the rules set forth under the Plan or the date on
which the rules of the Plan otherwise provide for a payment to the Participant or the Participant’s
Beneficiary.

          (z) “Plan” shall be The Corporate Executive Board Deferred Compensation Plan.

          (aa) “Plan Year” shall be January 1 to December 31. The first Plan Year shall be July 1, 2005
to December 31, 2005.

          (bb) “Scheduled Withdrawal Date” shall mean the distribution date elected by the Participant
for an in-service withdrawal of amounts from the Participant’s Accounts which were deferred in a
given Plan Year, and earnings and losses attributable thereto, as set forth on the election form
for such Plan Year.

          (cc) “Trust” shall mean the grantor trust initially established between the Company and First
American Trust, FSB.

          (dd) “Trustee” shall mean First American Trust, FSB.

          (ee) “Ad Hoc Award” shall mean an award in cash or property that is subject to a forfeiture
condition requiring the continued performance of services for a period of at least twelve (12)
months from the date of grant and is also subject to the initial election rules set forth in
Section 3.1(d).

ARTICLE II

PARTICIPATION

          An Eligible Employee shall become a Participant in the Plan by completing certain electronic
enrollment procedures, including any required insurance applications.

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ARTICLE III

DEFERRAL ELECTIONS

	 	3.1	 	Elections to Defer Compensation.

          (a) Initial Election Period. Subject to the provisions of Article II, each Eligible
Employee may elect to defer Compensation by filing with the Committee an election that conforms to
the requirements of this Section 3.1, following certain electronic election procedures established
by the Committee, no later than the last day of his or her Initial Election Period.

          (b) General Rule. The amount of Compensation which an Eligible Employee may elect to
defer is such Compensation earned on or after the time at which the Eligible Employee elects to
defer in accordance with Sections 1.1(u) and 3.1(a) and shall be a percentage which shall not
exceed One Hundred Percent (100%) of the Eligible Employee’s Compensation, provided that the total
amount deferred by a Participant shall be limited in any calendar year, if necessary, by the
amounts needed to satisfy Social Security Tax (including Medicare), income tax and employee benefit
plan withholding requirements all as determined in the sole and absolute discretion of the
Committee. The minimum contribution which may be made in any Plan Year by an Eligible Employee
shall not be less than Five Thousand Dollars ($5,000), provided such minimum contribution can be
satisfied from any element of Compensation. Notwithstanding the previous sentence, the minimum
contribution shall be reduced for the first Plan Year to the amount of Three Thousand Dollars
($3,000).

          (c) Duration of Compensation Deferral Election. In the case of an Eligible Employee
who first becomes eligible to participate in the Plan as of the Effective Date, such Eligible
Employee’s initial election to defer Compensation must be prior to the Effective Date and is to be
effective with respect to Compensation earned after such deferral election is processed. Such
election shall be irrevocable for a Plan Year and shall continue in effect unless and until
modified for subsequent Plan Years. The Committee may, in its discretion and on a year by year
basis, permit a Participant to make separate elections in respect of (i) the component of Base
Salary which does not consist of bonus and/or commissions and (ii) the component of Base Salary
which does consist of bonus and/or commissions. A Participant may increase, decrease or terminate
a deferral election with respect to Base Salary for any subsequent Plan Year by filing a new
election not less than fifteen (15) days prior to the beginning of the next calendar year. A
Participant may increase, decrease or terminate a deferral election with respect to Incentive
Compensation for any subsequent Plan Year by filing a new election within such time frame as may be
determined by the Committee but which shall in no event be less than six months prior to the end of
twelve (12) month performance period on which such Incentive Compensation is based. In the case of
an employee who becomes an Eligible Employee after the Effective Date, such Eligible Employee shall
have thirty (30) days after the date he or she has become an Eligible Employee to make an Initial
Election with respect to Compensation. Such election shall be for the remainder of the Plan Year,
in the event the Plan Year has commenced. In the event that an election which is made in respect
of a Plan Year covers a component of Base Salary which is earned in part during such Plan Year and
in part during the immediately

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succeeding Plan Year, such election shall not apply to any portion of such component of Base
Salary at the time such component of Base Salary becomes otherwise payable in such immediately
succeeding Plan Year. Instead, any deferral relating to such component of Base Salary must instead
be made (i) through a separate election during the calendar year preceding the calendar year in
which such component of Base Salary otherwise becomes payable or (ii) through a continuation of the
original election into such subsequent Plan Year through a failure to modify or revoke such
original election.

          (d) Elections other than Elections during the Initial Election Period. Subject to the
limitations of Section 3.1(b) above, any Eligible Employee who has terminated a prior Compensation
deferral election may elect to again defer Compensation, by filing an election, on a form provided
by the Committee, to defer Compensation as described in Sections 3.1(b) and 3.1(c) above. An
election to defer Compensation must be filed in a timely manner in accordance with Section 3.1(c).

          (e) Elections to defer Ad Hoc Awards. Notwithstanding any other provision set forth
in this Section 3.1 to the contrary, any Eligible Employee may elect to defer an Ad Hoc Award
pursuant to certain procedures established by the Committee so long as the initial election is made
no later than thirty (30) days after the date of grant of the Ad Hoc Award. Pursuant to the
definition of Ad Hoc Award, the election must be made at least twelve (12) months before the
Eligible Employee has earned a nonforfeitable right to any portion of such Ad Hoc Award.

	 	3.2	 	Investment Elections.

          (a) At the time of making the deferral elections described in Section 3.1, the Participant
shall designate, on a form provided by the Committee, the types of investment funds in which the
Participant’s Account will be deemed to be invested for purposes of determining the amount of
earnings to be credited to that Account. In making the designation pursuant to this Section 3.2,
the Participant may specify that all or any percentage of his or her Account be deemed to be
invested, in whole percentage increments, in one or more of the types of investment funds provided
under the Plan as communicated from time to time by the Committee. A Participant may change the
designation made under this Section 3.2 by filing an election, on a form provided by the Committee,
which change shall be made effective as soon as reasonably practicable after receipt by the
Committee of such form. If a Participant fails to elect a type of fund under this Section 3.2, he
or she shall be deemed to have elected the money market type of investment fund.

          (b) Although the Participant may designate the type of investment funds used to measure the
earnings or losses to be credited to the Participant’s Accounts, the Committee shall have the right
to change the range and type of available investment funds for these purposes at any time and from
time to time. The Committee shall select from time to time, in its sole and absolute discretion,
commercially available investments of each of the types communicated by the Committee to the
Participant pursuant to Section 3.2(a) above to be the Funds. The Interest Rate of each such
commercially available investment fund shall be used to determine the amount of earnings or losses
to be credited to Participant’s Account under Article IV.

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ARTICLE IV

DEFERRAL ACCOUNTS AND TRUST FUNDING

	 	4.1	 	Deferral Accounts.

          The Committee shall establish and maintain a Deferral Account for each Participant under the
Plan. Each Participant’s Deferral Account shall be further divided into separate subaccounts
(“investment fund subaccounts”), each of which corresponds to an investment fund elected by the
Participant pursuant to Section 3.2(a). A Participant’s Deferral Account shall be credited as
follows:

          (a) As soon as administratively feasible after amounts are withheld and deferred from a
Participant’s Compensation, the Committee shall credit the investment fund subaccounts of the
Participant’s Deferral Account with an amount equal to Compensation deferred by the Participant in
accordance with the Participant’s election under Section 3.2(a); that is, the portion of the
Participant’s deferred Compensation that the Participant has elected to be deemed to be invested in
a certain type of investment fund shall be credited to the investment fund subaccount corresponding
to that investment fund;

          (b) Each business day, each investment fund subaccount of a Participant’s Deferral Account
shall be credited with earnings or losses in an amount equal to that determined by multiplying the
balance credited to such investment fund subaccount as of the prior day plus contributions credited
that day to the investment fund subaccount minus withdrawals debited that day to the investment
fund subaccount by the Interest Rate for the corresponding fund selected by the Company pursuant to
Section 3.2(b).

          (c) In the event that a Participant elects for a given Plan Year’s deferral of Compensation to
have a Scheduled Withdrawal Date, all amounts attributed to the deferral of Compensation for such
Plan Year shall be accounted for in a manner which allows separate accounting for the deferral of
Compensation and investment gains and losses associated with such Plan Year’s deferral of
Compensation.

	 	4.2	 	Company Contribution Account.

          If the Company elects to credit a Company Discretionary Contribution Amount or a Company
Matching Contribution Amount on behalf of a Participant, the Committee shall establish and maintain
a Company Contribution Account for such Participant. Each Participant’s Company Contribution
Account shall be further divided into separate investment fund subaccounts corresponding to the
investment fund elected by the Participant for the purpose of determining the earnings or losses to
be credited under the Participant’s Company Contribution Account pursuant to Section 3.2(a). A
Participant’s Company Contribution Account shall be credited as follows:

          (a) As soon as administratively feasible after a Company Discretionary Contribution Amount or
Company Matching Contribution Amount is contributed by the

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Company, the Committee shall credit the investment fund subaccounts of the Participant’s
Company Contribution Account with an amount equal to the Company Discretionary Contribution Amount,
if any, applicable to that Participant, that is, the proportion of the Company Discretionary
Contribution Amount, if any, or Company Matching Contribution Amount, if any, which the Participant
elected to be deemed to be invested in a certain type of investment fund shall be credited to the
corresponding investment fund subaccount; and

          (b) Each business day, each investment fund subaccount of a Participant’s Company Contribution
Account shall be credited with earnings or losses in an amount equal to that determined by
multiplying the balance credited to such investment fund subaccount as of the prior day plus
contributions credited that day to the investment fund subaccount minus withdrawals debited that
day to the investment fund subaccount by the Interest Rate for the corresponding Fund selected by
the Company pursuant to Section 3.2(b).

	 	4.3	 	Trust Funding.

          The Company has created a Trust with First American Trust, FSB as the Trustee. The Company
shall contribute to the Trust (1) an amount equal to the amount deferred by each Participant; (2)
the aggregate amount of any Company Discretionary Contribution Amounts; and (3) the aggregate
amount of any Company Matching Contribution Amounts.

          Although the principal of the Trust and any earnings thereon shall be held separate and apart
from other funds of Company and shall be used exclusively for the uses and purposes of Plan
Participants and Beneficiaries as set forth therein, neither the Participants nor their
Beneficiaries shall have any preferred claim on, or any beneficial ownership in, any assets of the
Trust prior to the time such assets are paid to the Participants or Beneficiaries as benefits and
all rights created under this Plan shall be unsecured contractual rights of Plan Participants and
Beneficiaries against the Company. Any assets held in the Trust will be subject to the claims of
Company’s general creditors under federal and state law in the event of insolvency as defined in
Section 3.1 of the Trust.

ARTICLE V

VESTING

          A Participant shall be 100% vested in any Base Salary deferred under this Plan. A Participant
shall be vested in accordance with the specific governing vesting schedule with respect to any
Incentive Compensation, Company Discretionary Contribution Amount and Company Matching Contribution
Amount announced at the time such contributions, if any, are made by the Company. A Participant
shall be vested in accordance with the specific governing vesting schedule with respect to any Ad
Hoc Awards announced at the time such Awards, if any, are made by the Company.

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ARTICLE VI

DISTRIBUTIONS

	 	6.1	 	Distribution of Deferred Compensation and Discretionary Company
Contributions.

          (a) Distribution Not Due To Scheduled Withdrawal Date. Except for Participants who
are Key Employees pursuant to Section 1.1(w), in the case of a Participant who terminates
employment with the Company for any reason other than death and who has an Account balance of Five
Thousand Dollars ($5,000) or more, the Distributable Amount shall be paid to the Participant in the
form of a lump sum payment on the Participant’s Payment Date. An optional form of benefit may be
elected by the Participant, on the form provided by Company, during his or her Initial Election
Period (subject to subsequent amendments as discussed in the next paragraph). Except for
Participants who are Key Employees pursuant to Section 1.1(w), the optional form of benefits shall
be substantially equal annual installments over a period not to exceed fifteen (15) years beginning
on the Participant’s Payment Date.

               In the case of a Participant who terminates employment with Company, who is not a Key Employee
under Section 1.1(w), and has an Account balance of less than Five Thousand Dollars ($5,000), the
Distributable Amount shall be paid to the Participant in a lump sum distribution on the
Participant’s Payment Date.

               In the case of a Participant who terminates employment with the Company for any reason other
than death and who is a Key Employee under Section 1.1(w), the Distributable Amount under this
Section 6.1(a) shall be paid or payments shall commence to the Participant no sooner than six (6)
months following the date from which such Participant terminates employment with the Company. This
six (6) month restriction shall not apply to a termination of employment due to death.

               The Participant’s Account shall continue to be credited with earnings pursuant to Section 4.1
of the Plan until all amounts credited to his or her Account under the Plan have been distributed.

          (b) Distribution Due To Scheduled Withdrawal Date. In the case of a Participant who
has elected a Scheduled Withdrawal Date for a distribution while still in the employ of the
Company, such Participant shall receive his or her Distributable Amount, but only with respect to
those deferrals of Compensation, vested Matching Contribution Amounts, if any, and vested Company
Discretionary Contribution Amounts, if any, and earnings on such deferrals of Compensation,
Matching Contribution Amounts and Company Discretionary Contribution Amounts as shall have been
elected by the Participant to be subject to the Scheduled Withdrawal Date in accordance with
Section 1.1(bb) of the Plan. A Participant’s Scheduled Withdrawal Date with respect to deferrals
of Compensation, Matching Contribution Amounts and Company Discretionary Contribution Amounts
deferred in a given Plan Year can be no earlier than two (2) years from the last day of the Plan
Year for which the deferrals of Compensation, Matching Contribution Amounts and Company
Discretionary Contribution Amounts are made.

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Participants may elect to have such amounts paid in the form of a lump sum distribution or
annual installments not to exceed five (5) years. Such lump sum distribution will be paid or such
installments will commence in March of the year specified. A Participant may extend the Scheduled
Withdrawal Date for any Plan Year, provided such extension occurs at least one (1) year before the
Scheduled Withdrawal Date and provided that the first payment with respect to which such election
is made is deferred for a period of not less than five (5) years from the date such payment would
otherwise have commenced or have been made. In the event a Participant terminates employment with
Company prior to a Scheduled Withdrawal Date, other than by reason of death or Disability the
portion of the Participant’s Account associated with a Scheduled Withdrawal Date, which has not
occurred prior to such termination, shall be distributed pursuant to the form of benefit elected
under Section 6.1(a) for distributions not due to a Scheduled Withdrawal Date. Finally, if a
Participant Account balance associated with a Scheduled Withdrawal Date is less than Five Thousand
Dollars ($5,000) as of the Scheduled Withdrawal Date, such amount shall be paid to the Participant
(and after his or her death to his or her Beneficiary) in a lump sum distribution on the Scheduled
Withdrawal Date.

          (c) Distribution for Termination of Employment due to Death or Disability. In the
case of a Participant who dies or who becomes Disabled while employed by the Company, his or her
vested balance in his or her Account shall be paid as soon as practicable to his or her Beneficiary
(in the case of death) or to the Participant (in the case of Disability) in a lump sum payment,
less any applicable withholding.

          (d) Post-Termination Death Benefit. In the event a Participant dies after his or her
termination of employment and still has a vested balance in his or her Account, the vested balance
of such Account shall be paid as soon as practicable to the Participant’s Beneficiary in a lump sum
payment, less any applicable withholding.

	 	6.2	 	[Reserved.]
	 
	 	6.3	 	Hardship Distribution.

          A Participant shall be permitted to elect a Hardship Distribution from his or her vested
Accounts in accordance with Section 1.1(s) of the Plan prior to the Payment Date, subject to the
following restrictions:

          (a) The election to take a Hardship Distribution shall be made by filing a form provided by
and filed with Committee prior to the end of any calendar month.

          (b) The Committee shall have made a determination that the requested distribution constitutes
a Hardship Distribution in accordance with Section 1.1(s) of the Plan.

          (c) The amount determined by the Committee as a Hardship Distribution shall be paid in a
single cash lump sum as soon as practicable after the end of the calendar month in which the
Hardship Distribution election is made and approved by the Committee.

	 	6.4	 	Inability to Locate Participant.

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          In the event that the Committee is unable to locate a Participant or Beneficiary within two
years following the required Payment Date, the amount allocated to the Participant’s Deferral
Account shall be forfeited. If, after such forfeiture, the Participant or Beneficiary later claims
such benefit, such benefit shall be reinstated without interest or earnings.

ARTICLE VII

ADMINISTRATION

	 	7.1	 	Committee.

          The members of the Committee shall consist of the members of the Compensation Committee of the
Board of Directors, as such Compensation Committee may be constituted from time to time.

	 	7.2	 	Committee Action.

          The Committee shall act at meetings by affirmative vote of a majority of the members of the
Committee. Any action permitted to be taken at a meeting may be taken without a meeting if, prior
to such action, a written consent to the action is signed by all members of the Committee and such
written consent is filed with the minutes of the proceedings of the Committee. A member of the
Committee shall not vote or act upon any matter which relates solely to himself or herself as a
Participant. The Chair or any other member or members of the Committee designated by the Chair may
execute any certificate or other written direction on behalf of the Committee.

	 	7.3	 	Powers and Duties of the Committee.

          (a) The Committee, on behalf of the Participants and their Beneficiaries, shall enforce the
Plan in accordance with its terms, shall be charged with the general administration of the Plan,
and shall have all powers necessary to accomplish its purposes, including, but not by way of
limitation, the following:

               (1) To select the Funds in accordance with Section 3.2(b) hereof;

               (2) To construe and interpret the terms and provisions of this Plan, including any ambiguity;

               (3) To compute and certify to the amount and kind of benefits payable to Participants and
their Beneficiaries;

               (4) To maintain all records that may be necessary for the administration of the Plan;

               (5) To provide for the disclosure of all information and the filing or provision of all
reports and statements to Participants, Beneficiaries or governmental agencies as shall be required
by law;

-11-

 

               (6) To make and publish such rules for the regulation of the Plan and procedures for the
administration of the Plan as are not inconsistent with the terms hereof;

               (7) To appoint a Plan administrator or any other agent, and to delegate to them such powers
and duties in connection with the administration of the Plan as the Committee may from time to time
prescribe; and

               (8) To take all actions necessary for the administration of the Plan, including determining
whether to hold or discontinue the Policies.

	 	7.4	 	Construction and Interpretation.

          The Committee shall have full discretion to construe and interpret the terms and provisions of
this Plan, which interpretations or construction shall be final and binding on all parties,
including but not limited to the Company and any Participant or Beneficiary. The Committee shall
administer such terms and provisions in a uniform and nondiscriminatory manner and in full
accordance with any and all laws applicable to the Plan.

	 	7.5	 	Information.

          To enable the Committee to perform its functions, the Company shall supply full and timely
information to the Committee on all matters relating to the Compensation of all Participants, their
death or other events which cause termination of their participation in this Plan, and such other
pertinent facts as the Committee may require.

	 	7.6	 	Compensation, Expenses and Indemnity.

          (a) The members of the Committee shall serve without compensation for their services
hereunder.

          (b) The Committee is authorized at the expense of the Company to employ such legal counsel as
it may deem advisable to assist in the performance of its duties hereunder. Expenses and fees in
connection with the administration of the Plan shall be paid by the Company.

          (c) To the extent permitted by applicable state law, the Company shall indemnify and hold
harmless the Committee and each member thereof, the Board of Directors and any delegate of the
Committee who is an employee of the Company against any and all expenses, liabilities and claims,
including legal fees to defend against such liabilities and claims arising out of their discharge
in good faith of responsibilities under or incident to the Plan, other than expenses and
liabilities arising out of willful misconduct. This indemnity shall not preclude such further
indemnities as may be available under insurance purchased by the Company or provided by the Company
under any bylaw, agreement or otherwise, as such indemnities are permitted under state law.

	 	7.7	 	Quarterly Statements.

-12-

 

          Under procedures established by the Committee, a Participant shall have access to an
electronic statement with respect to such Participant’s Accounts on a quarterly basis.

	 	7.8	 	Disputes.

          (a) Claim.

          A person who believes that he or she is being denied a benefit to which he or she is entitled
under this Plan (hereinafter referred to as “Claimant”) must file a written request for such
benefit with the Committee, setting forth his or her claim. The request must be addressed to the
Chair of the Committee.

          (b) Claim Decision.

          Upon receipt of a claim, the Committee shall advise the Claimant that a reply will be
forthcoming within ninety (90) days and shall, in fact, deliver such reply within such period. The
Committee may, however, extend the reply period for an additional ninety (90) days for special
circumstances.

          If the claim is denied in whole or in part, the Committee shall inform the Claimant in
writing, using language calculated to be understood by the Claimant, setting forth: (A) the
specified reason or reasons for such denial; (B) the specific reference to pertinent provisions of
this Plan on which such denial is based; (C) a description of any additional material or
information necessary for the Claimant to perfect his or her claim and an explanation of why such
material or such information is necessary; (D) appropriate information as to the steps to be taken
if the Claimant wishes to submit the claim for review; and (E) the time limits for requesting a
review under subsection (c).

          (c) Request For Review.

          Within sixty (60) days after the receipt by the Claimant of the written opinion described
above, the Claimant may request in writing that the Committee review its prior determination. Such
request must be addressed to the Chair of the Committee. The Claimant or his or her duly
authorized representative may, but need not, review the pertinent documents and submit issues and
comments in writing for consideration by the Committee. If the Claimant does not request a review
within such sixty (60) day period, he or she shall be barred and estopped from challenging the
Committee’s determination.

          (d) Review of Decision.

          Within sixty (60) days after the Committee’s receipt of a request for review, after
considering all materials presented by the Claimant, the Committee will inform the Participant in
writing, in a manner calculated to be understood by the Claimant, the decision setting forth the
specific reasons for the decision containing specific references to the pertinent provisions of
this Plan on which the decision is based. If special circumstances require that the sixty (60)
day time period be extended, the Committee will so notify the Claimant and will render the decision
as

-13-

 

soon as possible, but no later than one hundred twenty (120) days after receipt of the request
for review.

ARTICLE VIII

MISCELLANEOUS

	 	8.1	 	Unsecured General Creditor.

          Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or
equitable rights, claims, or interest in any specific property or assets of the Company. No assets
of the Company shall be held in any way as collateral security for the fulfilling of the
obligations of the Company under this Plan. Any and all of the Company’s assets shall be, and
remain, the general unpledged, unrestricted assets of the Company. The Company’s obligation under
the Plan shall be merely that of an unfunded and unsecured promise of the Company to pay money in
the future, and the rights of the Participants and Beneficiaries shall be no greater than those of
unsecured general creditors. It is the intention of the Company that this Plan be unfunded for
purposes of the Code and for purposes of Title 1 of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”).

	 	8.2	 	Restriction Against Assignment.

          The Committee shall cause all amounts payable hereunder to be paid only to the person or
persons designated by the Plan and not to any other person or corporation. No part of a
Participant’s Accounts shall be liable for the debts, contracts, or engagements of any Participant,
his or her Beneficiary, or successors in interest, nor shall a Participant’s Accounts be subject to
execution by levy, attachment, or garnishment or by any other legal or equitable proceeding, nor
shall any such person have any right to alienate, anticipate, sell, transfer, commute, pledge,
encumber, or assign any benefits or payments hereunder in any manner whatsoever. If any
Participant, Beneficiary or successor in interest is adjudicated bankrupt or purports to
anticipate, alienate, sell, transfer, commute, assign, pledge, encumber or charge any distribution
or payment from the Plan, voluntarily or involuntarily, the Committee, in its discretion, may
cancel such distribution or payment (or any part thereof) to or for the benefit of such
Participant, Beneficiary or successor in interest in such manner as the Committee shall direct.

	 	8.3	 	Withholding.

          The Committee shall cause to be deducted from each payment made under the Plan or any other
Compensation payable to the Participant (or Beneficiary) all taxes which are required to be
withheld by the Company in respect to such payment or this Plan. The Committee shall have the
right to reduce any payment (or compensation) by the amount of cash sufficient to provide the
amount of said taxes.

-14-

 

	 	8.4	 	Amendment, Modification, Suspension or Termination.

          The Committee may amend, modify, suspend or terminate the Plan in whole or in part, except
that no amendment, modification, suspension or termination shall have any retroactive effect to
reduce any amounts allocated to a Participant’s Accounts. In addition, no amendment may be made to
the Plan to increase or mandate Company Discretionary Contribution Amounts and/or Company Matching
Contribution Amounts absent approval by the Board. In the event that this Plan is terminated due
to a “Change in Control,” the amounts allocated to a Participant’s Accounts shall be distributed to
the Participant in a lump sum within thirty (30) days following the date of termination of the
Plan. For these purposes, the term “Change in Control” shall mean either: (a) the “acquisition”
by a “person” or “group” (as those terms are used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and the rules promulgated thereunder), other
than by Permitted Holders, of beneficial ownership (as defined in Exchange Act Rule 13d-3) directly
or indirectly, of any securities of the Company or any successor of the Company immediately after
which such person or group owns securities representing more than fifty percent (50%) of the total
fair market value or the combined voting power of the Company or any successor of the Company; (b)
within any twelve (12) month period, the individuals who were directors of the Company as of July
1, 2005 (the “Incumbent Directors”) ceasing for any reason other than death or disability to
constitute at least a majority of the Board of Directors of the Company, provided that any director
who was not a director as of July 1, 2005 shall be deemed to be an Incumbent Director if such
director was appointed or elected to the Board of Directors of the Company by, or on the
recommendation or approval of, at least a majority of directors who then qualified as Incumbent
Directors, provided further that any director appointed or elected to the Board of Directors of the
Company to avoid or settle a threatened or actual proxy contest shall in no event be deemed to be
an Incumbent Director; (c) approval by the stockholders of the Company of any merger, consolidation
or reorganization involving the Company, unless either (A) the stockholders of the Company
immediately before such merger, consolidation or reorganization own, directly or indirectly
immediately following such merger, consolidation or reorganization, at least fifty percent (50%) of
the combined voting power of the company(ies) resulting from such merger, consolidation or
reorganization in substantially the same proportion as their ownership immediately before such
merger, consolidation or reorganization, or (B) the stockholders of the Company immediately after
such merger, consolidation or reorganization include Permitted Holders; (d) approval by the
stockholders of the Company of a transfer of fifty percent (50%) or more of the assets of the
Company, unless the person to which such transfer is made is either (A) a Subsidiary of the
Company, (B) wholly owned by all of the stockholders of the Company, or (C) wholly owned by
Permitted Holders; or (e) approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.

	 	8.5	 	Governing Law.

          This Plan shall be construed, governed and administered in accordance with the laws of the
State of Delaware, except where pre-empted by federal law.

	 	8.6	 	Receipt or Release.

-15-

 

          Any payment to a Participant or the Participant’s Beneficiary in accordance with the
provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims against
the Committee and the Company. The Committee may require such Participant or Beneficiary, as a
condition precedent to such payment, to execute a receipt and release to such effect.

	 	8.7	 	Payments on Behalf of Persons Under Incapacity.

          In the event that any amount becomes payable under the Plan to a person who, in the sole
judgment of the Committee, is considered by reason of physical or mental condition to be unable to
give a valid receipt therefore, the Committee may direct that such payment be made to any person
found by the Committee, in its sole judgment, to have assumed the care of such person. Any payment
made pursuant to such determination shall constitute a full release and discharge of the Committee
and the Company.

	 	8.8	 	Limitation of Rights and Employment Relationship

          Neither the establishment of the Plan and Trust nor any modification thereof, nor the creating
of any fund or account, nor the payment of any benefits shall be construed as giving to any
Participant, or Beneficiary or other person any legal or equitable right against the Company or the
trustee of the Trust except as provided in the Plan and Trust; and in no event shall the terms of
employment of any Employee or Participant be modified or in any way be affected by the provisions
of the Plan and Trust.

	 	8.9	 	Headings.

          Headings and subheadings in this Plan are inserted for convenience of reference only and are
not to be considered in the construction of the provisions hereof.

-16-

 

EXHIBIT A

          Effective July 1, 2005, employees with job titles of Senior Director, Practice Manager or
above shall be eligible to participate in the Plan.

A-1exv4w15

 

Exhibit 4.15

EXECUTION

VERSION

JUNIOR SUBORDINATED INDENTURE

among

CAPITALSOURCE FINANCE LLC,

as Issuer,

CAPITALSOURCE INC.,

as Guarantor,

and

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Trustee

 

Dated as of February 22, 2006

 

 

 

TABLE
OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION	 	 	1	 
	Section 1.1	 	Definitions
	 	 	1	 
	Section 1.2	 	Compliance Certificate and Opinions
	 	 	10	 
	Section 1.3	 	Forms of
Documents Delivered to Trustee
	 	 	11	 
	Section 1.4	 	Acts of Holders
	 	 	12	 
	Section 1.5	 	Notices, Etc. to Trustee and Company
	 	 	13	 
	Section 1.6	 	Notice to Holders; Waiver
	 	 	14	 
	Section 1.7	 	Effect of Headings and Table of Contents
	 	 	14	 
	Section 1.8	 	Successors and Assigns
	 	 	14	 
	Section 1.9	 	Separability
	 	 	15	 
	Section 1.10	 	Benefits of Indenture
	 	 	15	 
	Section 1.11	 	Governing Law
	 	 	15	 
	Section 1.12	 	Submission to Jurisdiction
	 	 	15	 
	Section 1.13	 	Non-Business Days
	 	 	15	 
	Section 1.14	 	Counterparts
	 	 	16	 
	Section 1.15	 	No Personal Liability
	 	 	16	 
	ARTICLE II SECURITY FORMS	 	 	16	 
	Section 2.1	 	Form of Security
	 	 	16	 
	Section 2.2	 	Restrictive Legend
	 	 	22	 
	Section 2.3	 	Form of Trustee’s Certificate of Authentication
	 	 	24	 
	Section 2.4	 	Temporary Securities
	 	 	24	 
	Section 2.5	 	Definitive Securities
	 	 	25	 
	ARTICLE III THE SECURITIES	 	 	25	 
	Section 3.1	 	Payment of Principal and Interest
	 	 	25	 
	Section 3.2	 	Denominations
	 	 	27	 
	Section 3.3	 	Execution, Authentication, Delivery and Dating
	 	 	27	 
	Section 3.4	 	Global Securities
	 	 	28	 
	Section 3.5	 	Registration, Transfer and Exchange Generally
	 	 	30	 
	Section 3.6	 	Mutilated, Destroyed, Lost and Stolen Securities
	 	 	32	 
	Section 3.7	 	Persons Deemed Owners
	 	 	33	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Section 3.8	 	Cancellation 
	 	 	33	 
	Section 3.9	 	Deferrals of Interest Payment Dates 
	 	 	33	 
	 Section 3.10	 	Agreed Tax Treatment
	 	 	34	 
	 Section 3.11	 	CUSIP Numbers 
	 	 	34	 
	ARTICLE IV SATISFACTION AND DISCHARGE	 	 	34	 
	Section 4.1	 	Satisfaction and Discharge of Indenture
	 	 	34	 
	Section 4.2	 	Application of Trust Money 
	 	 	36	 
	ARTICLE V REMEDIES	 	 	36	 
	Section 5.1	 	Events of Default 
	 	 	36	 
	Section 5.2	 	Acceleration of Maturity; Rescission and Annulment 
	 	 	37	 
	Section 5.3	 	Collection of Indebtedness and Suits for Enforcement by
Trustee
	 	 	38	 
	Section 5.4	 	Trustee May File Proofs of Claim 
	 	 	39	 
	Section 5.5	 	Trustee May Enforce Claim Without Possession of Securities 
	 	 	39	 
	Section 5.6	 	Application of Money Collected 
	 	 	40	 
	Section 5.7	 	Limitation on Suits 
	 	 	40	 
	Section 5.8	 	Unconditional Right of Holders to Receive Principal,
Premium, if any, and Interest; Direct Action by Holders of
Preferred Securities 
	 	 	41	 
	Section 5.9	 	Restoration of Rights and Remedies 
	 	 	41	 
	 Section 5.10	 	Rights and Remedies Cumulative 
	 	 	41	 
	 Section 5.11	 	Delay or Omission Not Waiver 
	 	 	41	 
	 Section 5.12	 	Control by Holders 
	 	 	42	 
	 Section 5.13	 	Waiver of Past Defaults 
	 	 	42	 
	 Section 5.14	 	Undertaking for Costs 
	 	 	43	 
	 Section 5.15	 	Waiver of Usury, Stay or Extension Laws 
	 	 	43	 
	ARTICLE VI THE TRUSTEE	 	 	43	 
	Section 6.1	 	Corporate Trustee Required 
	 	 	43	 
	Section 6.2	 	Certain Duties and Responsibilities 
	 	 	44	 
	Section 6.3	 	Notice of Defaults 
	 	 	45	 
	Section 6.4	 	Certain Rights of Trustee 
	 	 	46	 
	Section 6.5	 	May Hold Securities 
	 	 	48	 
	Section 6.6	 	Compensation; Reimbursement; Indemnity 
	 	 	48	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Section 6.7	 	Resignation and Removal; Appointment of Successor 
	 	 	49	 
	Section 6.8	 	Acceptance of Appointment by Successor 
	 	 	50	 
	Section 6.9	 	Merger, Conversion, Consolidation or Succession to
Business 
	 	 	50	 
	 Section 6.10	 	Not Responsible for Recitals or Issuance of Securities 
	 	 	50	 
	 Section 6.11	 	Appointment of Authenticating Agent 
	 	 	51	 
	ARTICLE VII HOLDER’S LISTS AND REPORTS BY COMPANY	 	 	52	 
	Section 7.1	 	Company to Furnish Trustee Names and Addresses of
Holders 
	 	 	52	 
	Section 7.2	 	Preservation of Information, Communications to Holders 
	 	 	52	 
	Section 7.3	 	Reports by Company and Guarantor 
	 	 	53	 
	ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 	54	 
	Section 8.1	 	Company and Guarantor May Consolidate, Etc., Only on
Certain Terms 
	 	 	54	 
	Section 8.2	 	Successor Company or Guarantor Substituted 
	 	 	55	 
	ARTICLE IX            SUPPLEMENTAL INDENTURES	 	 	56	 
	Section 9.1	 	Supplemental Indentures without Consent of Holders 
	 	 	56	 
	Section 9.2	 	Supplemental Indentures with Consent of Holders 
	 	 	56	 
	Section 9.3	 	Execution of Supplemental Indentures 
	 	 	57	 
	Section 9.4	 	Effect of Supplemental Indentures
	 	 	58	 
	Section 9.5	 	Reference in Securities to Supplemental Indentures 
	 	 	58	 
	ARTICLE X COVENANTS	 	 	58	 
	Section 10.1	 	Payment of Principal, Premium, if any, and Interest 
	 	 	58	 
	Section 10.2	 	Money for Security Payments to be Held in Trust 
	 	 	58	 
	Section 10.3	 	Statement as to Compliance 
	 	 	59	 
	Section 10.4	 	Calculation Agent
	 	 	60	 
	Section 10.5	 	Additional Tax Sums 
	 	 	60	 
	Section 10.6	 	Additional Covenants 
	 	 	61	 
	Section 10.7	 	Waiver of Covenants 
	 	 	63	 
	Section 10.8	 	Treatment of Securities 
	 	 	63	 
	Section 10.9	 	Limitation on Issuance of Securities 
	 	 	63	 
	ARTICLE XI REDEMPTION OF SECURITIES	 	 	63	 
	Section 11.1	 	Optional Redemption 
	 	 	63	 

iii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Section 11.2	 	Special Event Redemption 
	 	 	63	 
	Section 11.3	 	Election to Redeem; Notice to Trustee 
	 	 	64	 
	Section 11.4	 	Selection of Securities to be Redeemed 
	 	 	64	 
	Section 11.5	 	Notice of Redemption 
	 	 	64	 
	Section 11.6	 	Deposit of Redemption Price 
	 	 	65	 
	Section 11.7	 	Payment of Securities Called for Redemption 
	 	 	65	 
	ARTICLE XII SUBORDINATION OF SECURITIES	 	 	66	 
	Section 12.1	 	Securities Subordinate to Senior Debt 
	 	 	66	 
	Section 12.2	 	No Payment When Senior Debt of the Company in Default;
Payment Over of Proceeds Upon Dissolution, Etc 
	 	 	66	 
	Section 12.3	 	Payment Permitted if No Default 
	 	 	68	 
	Section 12.4	 	Subrogation to Rights of Holders of Senior Debt of the
Company 
	 	 	68	 
	Section 12.5	 	Provisions Solely to Define Relative Rights 
	 	 	68	 
	Section 12.6	 	Trustee to Effectuate Subordination 
	 	 	69	 
	Section 12.7	 	No Waiver of Subordination Provisions 
	 	 	69	 
	Section 12.8	 	Notice to Trustee 
	 	 	69	 
	Section 12.9	 	Reliance on Judicial Order or Certificate of Liquidating
Agent 
	 	 	70	 
	Section 12.10	 	Trustee Not Fiduciary for Holders of Senior Debt 
	 	 	70	 
	Section 12.11	 	Rights of Trustee as Holder of Senior Debt of the
Company; Preservation of Trustee’s Rights 
	 	 	71	 
	Section 12.12	 	Article Applicable to Paying Agents 
	 	 	71	 
	ARTICLE XIII GUARANTEE	 	 	71	 
	Section 13.1	 	The Guarantee 
	 	 	71	 
	Section 13.2	 	Guarantee Unconditional, etc 
	 	 	71	 
	Section 13.3	 	Reinstatement 
	 	 	72	 
	Section 13.4	 	Subrogation 
	 	 	72	 
	ARTICLE XIV SUBORDINATION OF GUARANTEE	 	 	72	 
	Section 14.1	 	Securities Subordinate to Senior Debt of the Guarantor 
	 	 	72	 
	Section 14.2	 	No Payment When Senior Debt of the Guarantor in
Default; Payment Over of Proceeds Upon Dissolution, Etc 
	 	 	72	 
	Section 14.3	 	Payment Permitted if No Default 
	 	 	74	 

iv

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Section 14.4	 	Subrogation to Rights of Holders of Senior Debt of the Guarantor
	 	 	74	 
	Section 14.5	 	Provisions Solely to Define Relative Rights 
	 	 	75	 
	Section 14.6	 	Trustee to Effectuate Subordination 
	 	 	75	 
	Section 14.7	 	No Waiver of Subordination Provisions 
	 	 	75	 
	Section 14.8	 	Notice to Trustee 
	 	 	76	 
	Section 14.9	 	Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	76	 
	 Section 14.10	 	Trustee Not Fiduciary for Holders of Senior Debt of the Guarantor
	 	 	77	 
	 Section 14.11	 	Rights of Trustee as Holder of Senior Debt of the Guarantor;
Preservation of Trustee’s Rights 
	 	 	77	 
	 Section 14.12	 	Article Applicable to Paying Agents 
	 	 	77	 

SCHEDULE AND EXHIBIT

					
	Schedule A

	 	-
	 	Determination of LIBOR
	Exhibit A

	 	-
	 	Form of Officer’s Financial Certificate
	Exhibit B

	 	-
	 	Form of Officer’s Certificate pursuant to Section 10.3

v

 

JUNIOR SUBORDINATED INDENTURE

     This JUNIOR SUBORDINATED INDENTURE, dated as of February 22, 2006, is among CapitalSource Finance
LLC, a Delaware limited liability company (the “Company”), CapitalSource Inc., a Delaware
corporation (the “Guarantor”) and JPMorgan Chase Bank, National Association, a national banking
association, as Trustee (in such capacity, the “Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company has duly authorized the execution and delivery of this Indenture to provide
for the issuance of its junior subordinated notes (the “Securities”) issued to evidence a loan made
to the Company of the proceeds from the issuance by CapitalSource Trust Preferred Securities
2006-1, a Delaware statutory trust (the “Trust”), of undivided preferred beneficial interests in
the assets of the Trust (the “Preferred Securities”) and undivided common beneficial interests in
the assets of the Trust (the “Common Securities” and, collectively with the Preferred
Securities, the “Trust Securities”), and to provide the terms and conditions upon which the
Securities are to be authenticated, issued and delivered; and the Guarantor has duly authorized the
issuance of its guarantee of the Securities (the “Guarantee”) under this Indenture; and

     WHEREAS, all things necessary to make this Indenture a valid agreement of the Company and the
Guarantor, in accordance with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders thereof,
it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the
Securities, as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     Section 1.1 Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

     (a) the terms defined in this Article I have the meanings assigned to them in this
Article I;

     (b) the words “include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”;

     (c) all accounting terms used but not defined herein have the meanings assigned to
them in accordance with GAAP;

 

 

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

     (e) the
words “hereby,” “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;

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

     (g) the masculine, feminine or neuter genders used herein shall include the masculine,
feminine and neuter genders.

     “Act” when used with respect to any Holder, has the meaning specified in Section 1.4(a).

     “Additional Interest” means the interest, if any, that shall accrue on any amounts payable
on the Securities, the payment of which has not been made on the applicable Interest Payment Date
and which shall accrue at the rate per annum specified or determined as specified in such Security,
in each case to the extent legally enforceable.

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

     “Additional Taxes” means taxes, duties or other governmental charges imposed on the Trust
as a result of a Tax Event (which, for the sake of clarity, does not include amounts required to be
deducted or withheld by the Trust from payments made by the Trust to or for the benefit of the
Holder of, or any Person that acquires a beneficial interest in, the Securities).

     “Administrative Trustee” means, with respect to the Trust, each Person identified as an
“Administrative Trustee” in the Trust Agreement, solely in his or her capacity as an Administrative
Trustee of the Trust under the Trust Agreement and not in his or her individual capacity, or his or
her successor in interest in such capacity, or any successor Administrative Trustee appointed as
therein provided.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control,” when used with respect to any specified Person, means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

     “Applicable Depositary Procedures” means, with respect to any transfer or transaction
involving a Global Security or beneficial interest therein, the rules and procedures of the
Depositary for such Security, in each case to the extent applicable to such transaction and as in
effect from time to time.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section
6.11 to act on behalf of the Trustee to authenticate the Securities.

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     “Board of Directors” means the board of directors of the Company or the Guarantor, or other
body with analogous authority with respect to the Company or the Guarantor, as the context
requires, or any duly authorized committee of that board.

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

     “Business
Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which banking
institutions in the City of New York are authorized or required by law or executive order to remain
closed or (iii) a day on which the Corporate Trust Office of the Trustee is closed for business.

     “Calculation Agent” has the meaning specified in Section 10.4(a).

     “Code” means the Internal Revenue Code of 1986 or any successor statute thereto, in each case as
amended from time to time.

     “Commission” has the meaning specified in Section 7.3(c).

     “Common
Securities” has the meaning specified in the first recital
of this Indenture.

     “Company” means the Person named as the “Company” in the first paragraph of this Indenture until a
successor Person shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter “Company” shall mean such successor Person.

     “Company Request” and “Company Order” mean, respectively, the written request or order
signed in the name of the Company by its Chairman of the Board of Directors, its Vice Chairman of
the Board of Directors, its Chief Executive Officer, President or a Senior Vice President, and by
its Chief Financial Officer, its Chief Accounting Officer, its Treasurer, an Assistant Treasurer,
its Secretary or an Assistant Secretary, and delivered to the Trustee; provided, however,
that only one such officer shall be required to sign any Company Order for the authentication and
delivery of any Securities.

     “Corporate Trust Office” means the principal office of the Trustee at which at any
particular time its corporate trust business shall be administered, which office at the
date of this Indenture is located at 600 Travis, 50th Floor, Houston, Texas 77002 Attn: Worldwide
Securities Services—CapitalSource Trust Preferred Securities 2006-1.

     “Debt” means, with respect to any Person, whether recourse is to all or a portion of the assets of
such Person, whether currently existing or hereafter incurred and whether or not contingent and
without duplication, (i) every obligation of such Person for money borrowed; (ii) every obligation
of such Person evidenced by bonds, debentures, notes or other similar instruments, including
obligations incurred in connection with the acquisition of property, assets or businesses; (iii)
every reimbursement obligation of such Person with respect to letters of credit, bankers’
acceptances or similar facilities issued for the account of such Person; (iv) every obligation of
such Person issued or assumed as the deferred purchase price of property or

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services (but excluding trade accounts payable or other accrued liabilities arising in the ordinary
course of business); (v) every capital lease obligation of such Person; (vi) all indebtedness of
such Person, whether incurred on or prior to the date of this Indenture or thereafter incurred, for
claims in respect of derivative products, including interest rate, foreign exchange rate and
commodity forward contracts, options and swaps and similar arrangements; (vii) every obligation of
the type referred to in clauses (i) through (vi) of another Person and all dividends of another
Person the payment of which, in either case, such Person has guaranteed or is responsible or liable
for, directly or indirectly, as obligor or otherwise; and (viii) any renewals, extensions,
refundings, amendments or modifications of any obligation of the types referred to in clauses (i)
through (vii).

     “Defaulted Interest” has the meaning specified in Section 3.1(c).

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

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

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

     “Distributions” means amounts payable in respect of the Trust Securities as provided in the Trust
Agreement and referred to therein as “Distributions.”

     “Dollar” or “$” means the currency of the United States of America that, as at the time of payment,
is legal tender for the payment of public and private debts.

     “DTC” means The Depository Trust Company, a New York corporation, or any successor thereto.

     “EDGAR” has the meaning specified in Section 7.3(c).

     “Equity Interests” means (a) the partnership interests (both common and preferred partnership
interests) in a partnership (whether general or limited), (b) the membership interests in a limited
liability company (both common and preferred membership interests) and (c) the shares or stock
interest (both common stock and preferred stock) in a corporation.

     “ERISA” means the Employee Retirement Income Security Act of 1974 or any successor statute thereto,
in each case as amended from time to time.

     “Event of Default” has the meaning specified in Section 5.1.

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

     “Expiration Date” has the meaning specified in Section 1.4(h).

     “Extension Period” has the
meaning specified in Section 3.9.

     “Fixed Rate Period” shall have the meaning in the form of Security set forth in Section
2.1.

     “GAAP” means United States generally accepted accounting principles, consistently applied, from
time to time in effect.

     “Global Security” means a Security that evidences all or part of the Securities, the ownership and
transfers of which shall be made through book entries by a Depositary.

     “Government Obligation” means (a) any security that is (i) a direct obligation of the
United States of America of which the full faith and credit of the United States of America is
pledged or (ii) an obligation of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America or the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of America, which, in either
case of clause (i) or (ii), is not callable or redeemable at the option of the issuer thereof, and
(b) any depositary receipt issued by a “bank” (as defined in Section 3(a)(2) of the Securities Act)
as custodian with respect to any Government Obligation that is specified in clause (a) above and
held by such bank for the account of the holder of such depositary receipt, or with respect to any
specific payment of principal of or interest on any Government Obligation that is so specified and
held; provided, that (except as required by law) such custodian is not authorized to make
any deduction from the amount payable to the holder of such depositary receipt from any amount
received by the custodian in respect of the Government Obligation or the specific payment of
principal or interest evidenced by such depositary receipt.

     “Guarantee” has the meaning specified in the first recital of this Indenture.

     “Guarantor” means the Person named as the “Guarantor” in the first paragraph of this Indenture
until a successor corporation shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Guarantor” shall mean such successor corporation.

     “Holder” means a Person in whose name a Security is registered in the Securities Register.

     “Indenture” means this Junior Subordinated Indenture as originally executed or as it may from time
to time be amended or supplemented by one or more amendments or indentures supplemental hereto
entered into pursuant to the applicable provisions hereof.

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

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     “Investment Company Act” means the Investment Company Act of 1940 or any successor statute
thereto, in each case as amended from time to time.

     “Investment Company Event” means the receipt by the Company of an Opinion of Counsel
experienced in such matters to the effect that, as a result of the occurrence of a change in law or
regulation (including any announced prospective change) or a 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 ninety (90) days
of the date of such opinion will be, considered an “investment company” that is required to be
registered under the Investment Company Act, which change or prospective change becomes effective
or would become effective, as the case may be, on or after the date of the issuance of the
Securities.

     “LIBOR” has the meaning specified in
Schedule A.

     “LIBOR Business Day” has the meaning
specified in Schedule A.

     “LIBOR Determination Date” has the meaning specified in
Schedule A.

     “Liquidation Amount” has the meaning specified in the Trust Agreement.

     “Maturity,” when used with respect to any Security, means the date on which the
principal of such Security or any installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of acceleration, call for
redemption or otherwise.

     “Notice of Default” means a written notice of the kind specified in Section 5.1(c).

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a Vice
Chairman of the Board, the Chief Executive Officer, the President or a Vice President, and by the
Chief Financial Officer, the Chief Accounting Officer, the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary, of the Company or the Guarantor, as the context requires, and
delivered to the Trustee.

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

     “Optional Redemption Price” has the meaning set forth in Section 11.1.

     “Original Issue
Date” means the date of original issuance of each Security.

     “Outstanding” means, when used in reference to any Securities, as of the date of determination, all
Securities theretofore authenticated and delivered under this Indenture, except:

     (i) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

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     (ii) Securities for whose payment or redemption money in the necessary amount has been theretofore
deposited with the Trustee or any Paying Agent (other than the Company or the Guarantor) in trust
or set aside and segregated in trust by the Company or the Guarantor (if the Company, the Guarantor
and/or their respective Affiliates shall act as Paying Agent) for the Holders of such Securities;
provided, that if the Company or the Guarantor is acting as Paying Agent, Securities for
which payment or redemption money has been so deposited in trust with the Paying Agent shall be
considered to remain Outstanding until such time as such payment or redemption money has actually
been paid in full to the Holders of such Securities; provided, further, that, if such
Securities are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made; and

     (iii) Securities that have been paid or in substitution for or in lieu of which other Securities
have been authenticated and delivered pursuant to the provisions of this Indenture, unless proof
satisfactory to the Trustee is presented that any such Securities are held by Holders in whose
hands such Securities are valid, binding and legal obligations of the Company;

provided, that in determining whether the Holders of the requisite principal amount of
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Securities owned by the Company, the Guarantor or any other obligor upon the
Securities or any Affiliate of the Company, the Guarantor or such other obligor shall be
disregarded and deemed not to be Outstanding unless the Company shall hold all Outstanding
Securities, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Securities that a
Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Company, the Guarantor or any other obligor upon
the Securities or any Affiliate of the Company, the Guarantor or such other obligor.
Notwithstanding anything herein to the contrary, Securities initially issued to the Trust that are
owned by the Trust shall be deemed to be Outstanding notwithstanding the ownership by the Company
or an Affiliate of any beneficial interest in the Trust.

       “Paving Agent” means the Trustee or any Person authorized by the Company to pay the principal of or
any premium or interest on, or other amounts in respect of, any Securities on behalf of the
Company.

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

       “Place of Payment” means, with respect to the Securities, the Corporate Trust Office of the
Trustee.

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     “Predecessor Security” of any particular Security means every previous Security evidencing
all or a portion of the same debt as that evidenced by such particular Security. For the purposes
of this definition, any security authenticated and delivered under Section 3.6 in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Security.

     “Preferred Securities” has the meaning specified in the first recital of this Indenture.

     “Proceeding” has the meaning specified in Section 12.2(b).

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

     “Purchase Agreement” means the Preferred Securities Purchase Agreement, dated as of the
date hereof, among the Company, the Guarantor, the Trust and Kodiak Warehouse LLC.

     “Redemption Date” means, when used with respect to any Security to be redeemed, the date
fixed for such redemption by or pursuant to this Indenture.

     “Redemption Price” means, when used with respect to any Security to be redeemed, in whole
or in part, the Special Redemption Price or the Optional Redemption Price, as applicable, at which
such Security or portion thereof is to be redeemed as fixed by or pursuant to this Indenture.

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

     “Regular Record Date” for the interest payable on any Interest Payment Date with respect to
the Securities means the date that is fifteen (15) days preceding such Interest Payment Date
(whether or not a Business Day).

     “Responsible Officer” means, when used with respect to the Trustee, any officer in the
Worldwide Securities Services department of the Trustee having direct responsibility for the
administration of this Indenture and also means, with respect to a particular corporate trust
matter, any other officer of the Trustee to whom such matter is referred because of that officer’s
knowledge of and familiarity with the particular subject.

     “Rights Plan” means a plan of the Company providing for the issuance by the Company to all holders
of its common Equity Interests of rights entitling the holders thereof to subscribe for or purchase
shares or units of any class or series of Equity Interests in the Company which rights (i) are
deemed to be transferred with such Equity Interests and (ii) are also issued in respect of future
issuances of such Equity Interests, in each case until the occurrence of a specified event or
events.

     “Securities” or “Security” means any debt securities or debt security, as the case may be,
authenticated and delivered under this Indenture.

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

     “Securities Register” and “Securities Registrar” have the respective meanings
specified in Section 3.5(a).

     “Senior Debt” means the principal of and any premium and interest on (including interest
accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the
Company or the Guarantor, as the context requires, whether or not such claim for post-petition
interest is allowed in such proceeding) all Debt of the Company or the Guarantor, as the context
requires, whether incurred on or prior to the date of this Indenture or thereafter incurred, unless
it is provided in the instrument creating or evidencing such Debt or pursuant to which such Debt is
outstanding, that such obligations are not superior in right of payment to the Securities issued
under this Indenture; provided, that Senior Debt shall not be deemed
to include any other Debt (and guarantees, if any, in respect of such Debt) issued to any trust
other than the Trust (or a trustee of any such trust), partnership or other entity affiliated with
the Company or the Guarantor that is a financing vehicle of the Company or the Guarantor (a
“financing entity”) in connection with the issuance by such financing entity of equity
securities or other securities pursuant to an instrument that ranks pari passu with or junior in
right of payment to this Indenture.

     “Special Event” means the occurrence of an Investment Company Event or a Tax Event.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.1(c).

     “Special Redemption Price” has the meaning set forth in Section 11.2.

     “Stated
Maturity” means April 30, 2036.

     “Subsidiary” means a Person more than fifty percent (50%) of the outstanding voting stock or other
voting interests of which is owned, directly or indirectly, by the Company or by one or more other
Subsidiaries, or by the Company and one or more other Subsidiaries. For purposes of this
definition, “voting stock” means stock that ordinarily has voting power for the election of
directors, whether at all times or only so long as no senior class of stock has such voting power
by reason of any contingency.

     “Tax 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) 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 (b) any judicial decision or any official
administrative pronouncement (including any private letter ruling, technical advice memorandum or
field service advice) or regulatory procedure, including any notice or announcement of intent to
adopt any such pronouncement or procedure (an “Administrative Action”), regardless of
whether such judicial decision or Administrative Action 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, change, judicial decision or Administrative Action is enacted, promulgated or announced,
in each case, on or after the date of issuance of the

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Securities, there is more than an insubstantial risk that (i) the Trust is, or will be within
ninety (90) days of the date of such opinion, subject to United States federal income tax with
respect to income received or accrued on the Securities, (ii) interest payable by the Company on
the Securities is not, or within ninety (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 ninety (90) days of the date of such opinion, subject to more
than a de minimis amount of other taxes, duties or other governmental charges.

     “Trust” has the meaning specified in the first recital of this Indenture.

     “Trust Agreement” means the Amended and Restated Trust Agreement executed and delivered by
the Company, the Guarantor, the Property Trustee, the Delaware Trustee and the Administrative
Trustees named therein, contemporaneously with the execution and delivery of this Indenture, for
the benefit of the holders of the Trust Securities, as amended or supplemented from time to time.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture, solely
in its capacity as such and not in its individual capacity, until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and, thereafter, “Trustee”
shall mean or include each Person who is then a Trustee hereunder.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 or any successor statute
thereto, in each case as amended from time to time.

     “Trust Securities” has the meaning specified in the first recital of this Indenture.

     Section 1.2 Compliance Certificate and Opinions.

     (a) Upon any application or request by the Company or the Guarantor to the Trustee to take
any action under any provision of this Indenture, the Company or the Guarantor shall, if requested
by the Trustee, furnish to the Trustee an Officers’ Certificate stating that all conditions
precedent (including covenants compliance with which constitutes a condition 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
(including covenants compliance with which constitutes a condition precedent), if any, have been
complied with, except that, in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of this Indenture relating
to such particular application or request, no additional certificate or opinion need be furnished.

     (b) Every certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than the certificate provided pursuant to Section
10.3) shall include:

     (i) a statement by each individual signing such certificate or opinion that such individual
has read such condition or covenant and the definitions herein relating thereto;

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     (ii) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions of such individual contained in such certificate or opinion are
based;

     (iii) a statement that, in the opinion of such individual, 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 condition or covenant has been complied with; and

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

     Section 1.3 Forms of Documents Delivered to Trustee.

     (a) In any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or covered by only
one document, but one such Person may certify or give an opinion with respect to some matters and
one or more other such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

     (b) Any certificate or opinion of an officer of the Company or the Guarantor may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or representations by,
counsel, unless such officer knows, or after reasonable inquiry should know, that the certificate
or opinion or representations with respect to matters upon which his or her certificate or opinion
is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company or the Guarantor stating that the information with respect to such factual
matters is in the possession of the Company or the Guarantor, unless such counsel knows that the
certificate or opinion or representations with respect to such matters are erroneous.

     (c) Where any Person is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

     (d) Whenever, subsequent to the receipt by the Trustee of any Board Resolution, Officers’
Certificate, Opinion of Counsel or other document or instrument, a clerical, typographical
or other inadvertent or unintentional error or omission shall be discovered therein, a new document
or instrument may be substituted therefor in corrected form with the same force and effect as if
originally received in the corrected form and, irrespective of the date or dates of the actual
execution and/or delivery thereof, such substitute document or instrument shall be deemed to have
been executed and/or delivered as of the date or dates required with respect to the document or
instrument for which it is substituted. Without limiting the generality of the foregoing, any
Securities issued under the authority of such defective document or instrument shall nevertheless
be the valid obligations of the Company entitled to the benefits of this Indenture equally and
ratably with all other Outstanding Securities.

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     Section 1.4 Acts of Holders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given to or taken by Holders may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such
Holders in person or by an agent thereof duly appointed in writing and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments
(including any appointment of an agent) is or are delivered to the Trustee and, where it is hereby
expressly required, to the Company or the Guarantor. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the
Holders signing such instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this Indenture and
conclusive in favor of the Trustee and the Company or the Guarantor, if made in the manner provided
in this Section 1.4.

     (b) The fact and date of the execution by any Person of any such instrument or writing may
be proved by the affidavit of a witness of such execution or by the certificate of any notary
public or other officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him or her the execution thereof.
Where such execution is by a Person acting in other than his or her individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his or her authority. The fact
and date of the execution by any Person of any such instrument or writing, or the authority of the
Person executing the same, may also be proved in any other manner that the Trustee deems sufficient
and in accordance with such reasonable rules as the Trustee may determine.

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

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

     (e) Without limiting the foregoing, a Holder entitled to take any action hereunder with
regard to any particular Security may do so with regard to all or any part of the principal amount
of such Security or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.

     (f) Except as set forth in paragraph (g) of this Section 1.4, the Company may set
any day as a record date for the purpose of determining the Holders of Outstanding Securities
entitled to give, make or take any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted by this Indenture to be given, made or taken by
Holders of Securities. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities on such record date, and no other Holders, shall be entitled to take the
relevant action, whether or not such Holders remain Holders after such record date;
provided, that no such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date by Holders

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of the requisite principal amount of Outstanding Securities on such record date. Nothing in
this paragraph shall be construed to prevent the Company from setting a new record date for any
action for which a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person be canceled and of
no effect). Promptly after any record date is set pursuant to this paragraph, the Company, at its
own expense, shall cause notice of such record date, the proposed action by Holders and the
applicable Expiration Date to be given to the Trustee in writing and to each Holder of Securities
in the manner set forth in Section 1.6.

     (g) The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities entitled to join in the giving or making of (i) any Notice of Default, (ii)
any declaration of acceleration or rescission or annulment thereof referred to in Section
5.2, (iii) any request to institute proceedings referred to in Section 5.7(b) or (iv)
any direction referred to in Section 5.12. If any record date is set pursuant to this
paragraph, the Holders of Outstanding Securities on such record date, and no other Holders, shall
be entitled to join in such notice, declaration, request or direction, whether or not such Holders
remain Holders after such record date; provided, that no such action shall be effective
hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite
principal amount of Outstanding Securities on such record date. Nothing in this paragraph shall be
construed to prevent the Trustee from setting a new record date for any action for which a record
date has previously been set pursuant to this paragraph (whereupon the record date previously set
shall automatically and with no action by any Person be canceled and of no effect). Promptly after
any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall
cause notice of such record date, the proposed action by Holders and the applicable Expiration Date
to be given to the Company in writing and to each Holder of Securities in the manner set forth in
Section 1.6.

     (h) With respect to any record date set pursuant to paragraph (f) or (g) of this Section
1.4, the party hereto that sets such record date may designate any day as the “Expiration Date”
and from time to time may change the Expiration Date to any earlier or later day; provided,
that no such change shall be effective unless notice of the proposed new Expiration Date is given
to the other party hereto in writing, and to each Holder of Securities in the manner set forth in
Section 1.6, on or prior to the existing Expiration Date. If an Expiration Date is not
designated with respect to any record date set pursuant to this Section 1.4, the party
hereto that set such record date shall be deemed to have initially designated the ninetieth (90th)
day after such record date as the Expiration Date with respect thereto, subject to its right to
change the Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no
Expiration Date shall be later than the one hundred eightieth (180th) day after the applicable
record date.

     Section 1.5 Notices, Etc. to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent, waiver, Act of Holders, or other
document provided or permitted by this Indenture to be made upon, given or furnished to, or filed
with:

13

 

     (a) the Trustee by any Holder, any holder of Preferred Securities, the Company or the
Guarantor shall be sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Trustee at its Corporate Trust Office; or

     (b) the Company or the Guarantor by the Trustee, any Holder or any holder of Preferred
Securities shall be sufficient for every purpose hereunder if in writing and mailed, first class,
postage prepaid, to the Company addressed to it at c/o CapitalSource Inc., 4445 Willard Avenue,
12th Floor, Chevy Chase, Maryland 20815, Attn: Director of Treasury, with a copy to the Chief Legal
Officer, or at any other address previously furnished in writing to the Trustee by the Company, or
to the Guarantor addressed to it at 4445 Willard Avenue, 12th Floor, Chevy Chase, Maryland 20815,
Attn: Director of Treasury, with a copy to the Chief Legal Officer, or at any other address
previously furnished in writing to the Trustee by the Guarantor.

     Section 1.6 Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed, first class, postage
prepaid, to each Holder affected by such event to the address of such Holder as it appears in the
Securities Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. If, by reason of the suspension of or
irregularities in regular mail service or for any other reason, it shall be impossible or
impracticable to mail notice of any event to Holders when said notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such notice as shall be
satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect
in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either before or after the
event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall
be filed with the Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

     Section 1.7 Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction of this Indenture.

     Section 1.8 Successors and Assigns.

     This Indenture shall be binding upon and shall inure to the benefit of any successor to the
Company, the Guarantor and the Trustee, including any successor by operation of law.
Except in connection with a transaction involving the Company that is permitted under Article
VIII and pursuant to which the assignee agrees in writing to perform the Company’s obligations
hereunder, the Company shall not assign its obligations hereunder.

14

 

     Section 1.9 Separability.

     If any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby, and there shall be deemed substituted for the provision
at issue a valid, legal and enforceable provision as similar as possible to the provision at
issue.

     Section 1.10 Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors and assigns, the holders of Senior Debt, the
Holders of the Securities and, to the extent expressly provided in
Sections 5.2, 5.8, 5.9,
5.11, 5.13, 9.2 and 10.7, the holders of Preferred Securities, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

     Section 1.11 Governing Law.

     This Indenture and the rights and obligations of each of the Holders, the Company, the
Guarantor and the Trustee shall be construed and enforced in accordance with and governed by the
laws of the State of New York without reference to its conflict of laws provisions (other than
Section 5-1401 of the General Obligations Law).

     Section 1.12 Submission to Jurisdiction.

     ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING
OUT OF THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW YORK, IN AND
FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW
YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS
INDENTURE, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR
LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE.

     Section 1.13 Non-Business Days.

     If any Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be
a Business Day, then (notwithstanding any other provision of this Indenture or the Securities)
payment of interest, premium, if any, or principal or other amounts in respect of such Security
shall not be made on such date, but shall be made on the next succeeding Business Day (and no
interest shall accrue in respect of the amounts whose payment is so delayed for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be, until
such next succeeding Business Day) except that, if such Business Day falls in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business Day, in each case
with the same force and effect as if made on the Interest Payment Date or Redemption Date or at the
Stated Maturity.

15

 

     Section 1.14 Counterparts.

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

     Section 1.15 No Personal Liability.

     It is understood and agreed that no promoter, as such, or any past, present or future
shareholder, member, partner, officer, director or trustee, as such, of the Company or any
Guarantor or of any successor thereof, either directly or through the Company or any Guarantor or
any successor thereof, in its individual capacity, shall have any personal liability under or upon
any obligation, covenant or agreement contained in this Indenture, in any Security or coupon
appertaining thereto, or because of any indebtedness evidenced thereby, as a result of acting on
behalf of the Company or the Guarantor, as the case may be, pursuant to and consistent with the
terms of this Indenture and any applicable fiduciary duties of such persons in their official, and
not their individual, capacities; and all such personal liability of such Persons, in their
individual capacity, being expressly waived and released by the acceptance of the Securities by
the Holders thereof and as part of the consideration for the issue of the Securities.

ARTICLE II

SECURITY FORMS

     Section 2.1 Form of Security.

     Any Security issued hereunder shall be in substantially the following form:

CapitalSource Finance LLC

Junior Subordinated Note due 2036

			
	No.                                         
	 	$                                         

     CapitalSource Finance LLC, a limited liability company organized and existing under the laws
of Delaware (hereinafter called the “Company,” which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to
[                                        ], or registered assigns, the principal sum of [principal amount] Dollars
($[                                        ]) [IF THE SECURITY IS A GLOBAL SECURITY, THEN INSERT: or
such other principal amount represented hereby as may be set forth in the records of the
Securities Registrar hereinafter referred to in accordance with the Indenture] on April 30, 2036.
The Company further promises to pay interest on said principal sum from February 22, 2006, or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
quarterly (subject to deferral as set forth herein) in arrears on January 30, April 30, July 30
and October 30 of each year, commencing April 30, 2006, or if any such day is not a Business Day,
on the next succeeding Business Day (and no interest shall accrue in respect of the

16

 

amounts whose payment is so delayed for the period from and after such Interest Payment
Date until such next succeeding Business Day), except that, if such Business Day falls in the next
succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in
each case, with the same force and effect as if made on the Interest Payment Date, at a fixed rate
equal to 6.964% per annum through the Interest Payment Date in
April 2011 (“Fixed Rate Period”)
and thereafter at a variable rate, reset quarterly, equal to LIBOR plus 1.95% per annum, together
with Additional Tax Sums, if any, as provided in Section 10.5 of the Indenture, until the
principal hereof is paid or duly provided for or made available for payment; provided,
that any overdue principal, premium, if any, or Additional Tax Sums and any overdue
installment of interest shall bear Additional Interest at a fixed rate equal to 6.964% through the
interest payment date in April 2011 and thereafter at a variable rate, reset quarterly, equal to
LIBOR plus 1.95% per annum (to the extent that the payment of such interest shall be legally
enforceable), compounded quarterly, from and including the dates such amounts are due to but
excluding the dates such amounts are paid or made available for payment, and such interest shall
be payable on demand.

     During the Fixed Rate Period, the amount of interest payable for any interest period shall be
computed on the basis of a three hundred sixty (360)-day year of twelve (12) thirty (30)-day months
and the amount payable for any partial period shall be computed on the basis of the actual number
of days elapsed in a three hundred sixty (360)-day year of twelve (12) thirty (30)-day months. Upon
expiration of the Fixed Rate Period, the amount of interest payable for any interest period will be
computed on the basis of a three hundred sixty (360)-day year and the actual number of days elapsed
in the relevant interest period. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date shall, as provided in the Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest installment. Any such interest not so punctually paid
or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date
and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities not less than ten (10) days prior to such Special Record Date, or be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities exchange or
automated quotation system on which the Securities may be listed, traded or quoted and upon such
notice as may be required by such exchange or automated quotation system, all as more fully
provided in the Indenture.

     So long as no Event of Default has occurred and is continuing, the Company shall have the
right, at any time and from time to time during the term of this Security, to defer the payment of
interest on this Security for a period of up to four (4) consecutive quarterly interest payment
periods (each such period, an “Extension Period”), during which Extension Period(s), no interest
shall be due and payable (except any Additional Tax Sums that may be due and payable). No
Extension Period shall end on a date other than an Interest Payment Date, and no Extension Period
shall extend beyond the Stated Maturity of the principal of this Security. No interest shall be
due and payable during an Extension Period (except any Additional Tax Sums that may be due and
payable), except at the end thereof, but each installment of interest that would otherwise have
been due and payable during such Extension Period shall bear Additional Interest (to the extent
payment of such interest would be legally enforceable) at a fixed rate equal to 6.964% per

17

 

annum through the Interest Payment Date in April 2011 and thereafter at a variable rate per annum,
reset quarterly, equal to LIBOR plus 1.95% per annum, compounded quarterly, from and including the
dates on which amounts would have otherwise been due and payable to but excluding the dates such
amounts paid or made available for payment. At the end of any such Extension Period, the Company
shall pay all interest then accrued and unpaid on this Security, together with such Additional
Interest. Prior to the termination of any such Extension Period, the Company may further defer the
payment of interest; provided, that (i) all such previous and further extensions comprising
such Extension Period do not exceed four (4) quarterly interest payment periods, (ii) no Extension
Period shall end on a date other than an Interest Payment Date and (iii) no Extension Period shall
extend beyond the Stated Maturity of the principal of this Security. Upon the termination of any
such Extension Period and upon the payment of all accrued and unpaid interest and any Additional
Interest then due on any Interest Payment Date, the Company may elect to begin a new Extension
Period; provided, that (i) such Extension Period does not exceed four (4) quarterly
interest payment periods, (ii) no Extension Period shall end on a date other than an Interest
Payment Date, (iii) no Extension Period shall extend beyond the Stated Maturity of the principal of
this Security and (iv) no Event of Default has occurred and is continuing. The Company shall give
(i) the Holder of this Security, (ii) the Trustee, (iii) the Property Trustee and (iv) any
beneficial owner of the Preferred Securities reasonably identified to the Company (which
identification may be made either by such beneficial owner or by the Purchaser) written notice of
its election to begin any such Extension Period no later than the close of business on the
fifteenth (15th) Business Day prior to the next succeeding Interest Payment Date on which interest
on this Security would be payable but for such deferral.

     During any such Extension Period or an Event of Default, the Company shall not (i) declare or
pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment
with respect to, any Equity Interests of the Company, (ii) vote in favor of or permit or otherwise
allow any of its Subsidiaries to declare or pay any dividends or distributions on, or redeem,
purchase, acquire or make a liquidation payment with respect to or otherwise retire, any preferred
Equity Interests of such Subsidiaries or other Equity Interests entitling the holders thereof to a
stated rate of return (for the avoidance of doubt, whether such preferred Equity Interests are
perpetual or otherwise), or (iii) make any payment of principal of or any 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 this Security (other than (a) repurchases, redemptions
or other acquisitions of Equity Interests of the Company in connection with (1) any employment
contract, benefit plan or other similar arrangement with or for the benefit of any one or more
employees, officers, directors or consultants, (2) a dividend reinvestment or Equity Interests
purchase plan or (3) the issuance of Equity Interests of the Company (or securities convertible
into or exercisable for such Equity Interests) as consideration in an acquisition transaction
entered into prior to the applicable Event of Default or Extension Period, (b) as a result of an
exchange or conversion of any class or series of the Company’s Equity Interests (or any Equity
Interests of a Subsidiary of the Company) for any class or series of the Company’s Equity
Interests or of any class or series of the Company’s indebtedness for any class or series of the
Company’s Equity Interests, (c) the purchase of fractional interests in Equity Interests of the
Company pursuant to the conversion or exchange provisions of such Equity Interest or the security
being converted or exchanged, (d) any declaration of a dividend in connection with any Rights
Plan, the issuance of rights, Equity Interests or other property under any Rights Plan, or the
redemption or repurchase of rights pursuant thereto or (e) any dividend in

18

 

the form of Equity Interests, warrants, options or other rights where the dividend interest or the
interest issuable upon exercise of such warrants, options or other rights is the same interest as
that on which the dividend is being paid or ranks pari passu with or junior to such interest).

     Payment of principal of, premium, if any, and interest on this Security shall be made in such
coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payments of principal, premium, if any, and interest due at
the Maturity of this Security shall be made at the Place of Payment upon surrender of such
Securities to the Paying Agent, and payments of interest shall be made, subject to such surrender
where applicable, by wire transfer at such place and to such account at a banking institution in
the United States as may be designated in writing to the Paying Agent at least ten (10) Business
Days prior to the date for payment by the Person entitled thereto unless proper written transfer
instructions have not been received by the relevant record date, in which case such payments shall
be made by check mailed to the address of such Person as such address shall appear in the Security
Register. Notwithstanding the foregoing, so long as the Holder of this Security is the Property
Trustee, payment of principal of, premium, if any, and interest (including any overdue installment
of interest and Additional Tax Sums, if any) on this Security will be made at such place and to
such account as may be designated by the Property Trustee.

     The indebtedness evidenced by this 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 Debt of the
Company, and this Security is issued subject to the provisions of the Indenture with respect
thereto. Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by
such provisions, (b) authorizes and directs the Trustee on his, her or its behalf to take such
actions as may be necessary or appropriate to effectuate the subordination so provided and (c)
appoints the Trustee his, her or its attorney-in-fact for any and all such purposes. Each Holder
hereof, by his, her or its acceptance hereof, waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of Senior Debt of the
Company, whether now outstanding or hereafter incurred, and waives reliance by each such holder
upon said provisions.

     This Security shall be entitled to the benefit of the guarantee of CapitalSource Inc., the
“Guarantor,” which term includes any successor permitted under the Indenture) as specified in the
Indenture (the “Guarantee”). The obligations of the Guarantor under the Guarantee are, to the
extent provided in the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Debt of the Guarantor. Each Holder of this Security, by accepting the same,
(a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on his,
her or its behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination of the Guarantee so provided and (c) appoints the Trustee his, her or
its attorney-in-fact for any and all such purposes. Each Holder of this Security, by his, her or
its acceptance hereof, hereby waives all notice of the subordination provisions relating to the
Guarantee contained herein and in the Indenture by each holder of Senior Debt of the Guarantor,
whether now outstanding or hereafter incurred, and waives reliance by each such Holder upon said
provisions.

19

 

     Unless the certificate of authentication hereon has been executed by the Trustee by manual
signature, this Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

[FORM OF REVERSE OF SECURITY]

     This Security is one of a duly authorized issue of securities of the Company (the
“Securities”) issued under the Junior Subordinated Indenture, dated as of February 22, 2006 (the
“Indenture”), among the Company, Guarantor and JPMorgan Chase Bank, National Association, as
Trustee (in such capacity, the “Trustee,” which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Guarantor, the Trustee, the Holders of the Securities, the holders of Senior Debt
and the holders of the Preferred Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered.

     All terms used in this Security that are defined in the Indenture or in the Amended and
Restated Trust Agreement, dated as of February 22, 2006 (as modified, amended or supplemented from
time to time, the “Trust Agreement”), relating to the CapitalSource Trust Preferred Securities
2006-1 (the “Trust”) among the Company, as Depositor, the Guarantor, the Trustees named therein
and the Holders from time to time of the Trust Securities issued pursuant thereto, shall have the
meanings assigned to them in the Indenture or the Trust Agreement, as the case may be.

     The Company may, on any Interest Payment Date, at its option, upon not less than thirty (30)
days’ nor more than sixty (60) days’ written notice to the Holders of the Securities (unless a
shorter notice period shall be satisfactory to the Trustee) on or after April 30, 2011 and subject
to the terms and conditions of Article XI of the Indenture, redeem this Security in whole at any
time or in part from time to time at a Redemption Price equal to one hundred percent (100%) of the
principal amount hereof, together, in the case of any such redemption, with accrued interest,
including any Additional Interest, to but excluding the date fixed as the Redemption Date.

     In addition, prior to April 30, 2011, upon the occurrence and during the continuation of a
Special Event, the Company may, at its option, upon not less than thirty (30) days’ nor more than
sixty (60) days’ written notice to the Holders of the Securities (unless a shorter notice period
shall be satisfactory to the Trustee), redeem this Security, in whole but not in part and subject
to the terms and conditions of Article XI of the Indenture, at a Redemption Price equal to one
hundred percent (100.0%) of the principal amount hereof, together, in the case of any such
redemption, with accrued interest, including any Additional Interest, to but excluding the date
fixed as the Redemption Date.

     In the event of redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof. If less than all the Securities are to be redeemed, the particular Securities to be
redeemed shall be selected not more than sixty (60) days prior to the Redemption Date by the
Trustee from the Outstanding Securities not previously called for redemption, by such method as

20

 

the Trustee shall deem fair and appropriate and which may provide for the selection for redemption
of a portion of the principal amount of any Security.

     The Indenture permits, with certain exceptions as therein provided, the Company, the
Guarantor and the Trustee at any time to enter into a supplemental indenture or indentures for the
purpose of modifying in any manner the rights and obligations of the Company, the Guarantor and of
the Holders of the Securities, with the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities. The Indenture also contains provisions permitting
Holders of specified percentages in principal amount of the Securities, on behalf of the Holders
of all Securities, to waive compliance by the Company or the Guarantor with certain provisions of
the Indenture and certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium, if any, and interest, including any Additional Interest (to the
extent legally enforceable), on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is restricted to transfers to “Qualified Purchasers” (as such term is
defined in the Investment Company Act of 1940, as amended) and is registrable in the Securities
Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company maintained for such purpose, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Securities Registrar and duly executed by,
the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more
new Securities, of like tenor, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

     The Securities are issuable only in registered form without coupons in minimum denominations
of $100,000 and any integral multiple of $1,000 in excess thereof. As provided in the Indenture
and subject to certain limitations therein set forth, Securities are exchangeable for a like
aggregate principal amount of Securities and of like tenor of a different authorized denomination,
as requested by the Holder surrendering the same.

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

     The Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and none of the Company, the Guarantor, the
Trustee and any such agent shall be affected by notice to the contrary.

21

 

     The Company and, by its acceptance of this Security or a beneficial interest herein, the
Holder of, and any Person that acquires a beneficial interest in, this Security agree that, for
United States federal, state and local tax purposes, it is intended that this Security constitute
indebtedness.

     This Security shall be construed and enforced in accordance with and governed by the laws of
the State of New York without reference to its conflict of laws provisions (other than Section
5-1401 of the General Obligations Law).

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
on this               
       day of        
                                 ,  
                    .

	 	 	 	 	 	 	 
	 	 	CapitalSource Finance LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

     Section 2.2 Restrictive Legend.

     (a) Any Security issued hereunder shall bear a legend in substantially the following
form:

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

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

22

 

AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]

THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND SUCH
SECURITIES, AND ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY
SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE RELYING ON THE EXEMPTION
FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES
ACT.

THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE COMPANY
THAT (A) SUCH SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE COMPANY
OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS DEFINED IN
SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED), AND (B) THE HOLDER WILL
NOTIFY ANY PURCHASER OF ANY SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A)
ABOVE.

THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE PRINCIPAL
AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF
SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN
$100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL
EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE
DEEMED NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES.

THE HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO
AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, 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”), OR SIMILAR LAW (EACH A
“PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE
“PLAN

23

 

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. ANY
PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT 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.”

     (b) The above legends shall not be removed from any Security unless there is delivered to the
Company satisfactory evidence, which may include an Opinion of Counsel, as may be reasonably
required to ensure that any future transfers thereof may be made without restriction under or
violation of the provisions of the Securities Act and other applicable law. Upon provision of such
satisfactory evidence, the Company shall execute and deliver to the Trustee, and the Trustee shall
deliver, upon receipt of a Company Order directing it to do so, a Security that does not bear the
legend.

     Section 2.3 Form of Trustee’s Certificate of Authentication.

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

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

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	JPMorgan Chase Bank, National Association,

not in its individual capacity, but solely as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 	 	Authenticating Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 	 	Authorized Signatory	 	 

     Section 2.4 Temporary Securities.

     (a) Pending the preparation of definitive Securities, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities that are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any denomination,
substantially of the tenor of the definitive Securities in lieu of which they are issued and
with
such appropriate insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as evidenced by their execution of such Securities.

     (b) If temporary Securities are issued, the Company will cause definitive Securities to
be prepared without unreasonable delay. After the preparation of definitive Securities, the

24

 

temporary Securities shall be exchangeable for definitive Securities upon surrender of the
temporary Securities at the office or agency of the Company designated for that purpose without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor one or
more definitive Securities of any authorized denominations having the same Original Issue Date and
Stated Maturity and having the same terms as such temporary Securities. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture
as definitive Securities.

     Section 2.5 Definitive Securities.

     The Securities issued on the Original Issue Date shall be in definitive form. The definitive
Securities shall be printed, lithographed or engraved, or produced by any combination of these
methods, if required by any securities exchange on which the Securities may be listed, on a steel
engraved border or steel engraved borders or may be produced in any other manner permitted by the
rules of any securities exchange on which the Securities may be listed, all as determined by the
officers executing such Securities, as evidenced by their execution of such Securities.

ARTICLE III

THE SECURITIES

     Section Section 3.1 Payment of Principal and Interest.

     (a) The unpaid principal amount of the Securities shall bear interest at a fixed rate
equal to 6.964% per annum through the Interest Payment Date in April 2011 and thereafter at a
variable rate equal to LIBOR plus 1.95% per annum until paid or duly provided for, such
interest
to accrue from the Original Issue Date or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, and any overdue principal, premium, if any, or
Additional Tax Sums and any overdue installment of interest shall bear Additional Interest at
a fixed rate equal to 6.964% per annum through the Interest Payment Date in April 2011 and
thereafter at a variable rate, reset quarterly, equal to LIBOR plus 1.95% per annum (to the
extent
that payment of such interest shall be legally enforceable), compounded quarterly, from and
including the dates such amounts are due to but excluding the dates such amounts they are paid
or funds for the payment thereof are made available for payment.

     (b) Interest and Additional Interest on any Security that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the close of
business
on the Regular Record Date for such interest, except that interest and any Additional Interest
payable on the Stated Maturity (or any date of principal repayment upon early maturity) of the
principal of a Security or on a Redemption Date shall be paid to the Person to whom principal
is
paid. The initial payment of interest on any Security that is issued between a Regular Record
Date and the related Interest Payment Date shall be payable as provided in such Security.

25

 

     (c) Any interest on any Security that is due and payable, but is not timely paid or
duly
provided for, on any Interest Payment Date for Securities (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 may
be paid by the Company, at its election in each case, as provided in paragraph (i) or (ii) below:

    (i) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the 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
(a “Special Record Date”), which shall be fixed in the following manner. At least thirty
(30) days prior to the date of the proposed payment, the Company shall notify the Trustee
in writing of the amount of Defaulted Interest proposed to be paid on each 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 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. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest, which
shall be not more than fifteen (15) days and not less than ten (10) days prior to the date
of the proposed payment and not less than ten (10) 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 Holder of a Security at the address of
such Holder as it appears in the Securities Register not less than ten (10) days prior to
such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid
to the Persons in whose names the Securities (or their respective Predecessor Securities)
are registered on such Special Record Date; or

    (ii) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange or automated quotation
system on which the Securities may be listed, traded or quoted and, upon such notice as may
be required by such exchange or automated quotation system (or by the Trustee if the
Securities are not listed), if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such payment shall be deemed practicable by the
Trustee.

     (d) Payments of interest on the Securities shall include interest accrued to but
excluding the respective Interest Payment Dates. During the Fixed Rate Period, the amount of
interest payable for any interest period shall be computed on the basis of a three hundred
sixty
(360)-day year of twelve (12) thirty (30)-day months and the amount payable for any partial
period shall be computed on the basis of the actual number of days elapsed in a three hundred
sixty (360)-day year of twelve (12) thirty (30)-day months. Upon expiration of the Fixed Rate
Period, the amount of interest payable for any interest period will be computed on the basis
of a

26

 

three hundred sixty (360)-day year and the actual number of days elapsed in the relevant
interest period.

     (e) Payment of principal of, premium, if any, and interest on the Securities shall be
made in such coin or currency of the United States of America as at the time of payment is
legal
tender for payment of public and private debts. Payments of principal, premium, if any, and
interest due at the Maturity of such Securities shall be made at the Place of Payment upon
surrender of such Securities to the Paying Agent and payments of interest shall be made,
subject
to such surrender where applicable, by wire transfer at such place and to such account at a
banking institution in the United States as may be designated in writing to the Paying Agent
at
least ten (10) Business Days prior to the date for payment by the Person entitled thereto
unless
proper written transfer instructions have not been received by the relevant record date, in
which
case such payments shall be made by check mailed to the address of such Person as such address
shall appear in the Security Register. Notwithstanding the foregoing, so long as the holder of
the
Securities is the Property Trustee, the payment of principal of, premium, if any, and interest
(including any overdue installment of interest and Additional Tax Sums, if any) on the
Securities
will be made at such place and to such account as may be designated by the Property Trustee.

     (f) The parties hereto acknowledge and agree that the holders of the Preferred
Securities have certain rights to direct the Company to modify the Interest Payment Dates and
corresponding Redemption Date and Stated Maturity of the Securities or a portion of the
Securities pursuant to the Purchase Agreement. In the event any such modifications are made to
the Securities or a portion of the Securities, appropriate changes to the form of Security set
forth
in Article II hereof shall be made prior to the issuance and authentication of new or
replacement
Securities. Any such modification of the Interest Payment Date and corresponding Redemption
Date and Stated Maturity with respect to any Securities or tranche of Securities shall not
require
or be subject to the consent of the Trustee. All reasonable expenses in connection with such
modification shall be paid by the holders of the Preferred Securities.

     (g) Subject to the foregoing provisions of this Section 3.1, each Security delivered
under this Indenture upon transfer of or in exchange for or in lieu of any other Security
shall
carry the rights to interest accrued and unpaid, and to accrue, that were carried by such
other
Security.

     Section 3.2 Denominations.

     The Securities shall be in registered form without coupons and shall be issuable in minimum
denominations of $100,000 and any integral multiple of $1,000 in excess thereof.

     Section 3.3 Execution, Authentication, Delivery and Dating.

     (a) At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities in an aggregate principal amount (including all then Outstanding
Securities) not in excess of Fifty-One Million Five Hundred Forty-Five Thousand Dollars
($51,545,000) executed by the Company to the Trustee for authentication, together with a Company
Order for the authentication and delivery of such Securities, and the Trustee in accordance with
the Company Order shall authenticate and deliver such Securities. In

27

 

authenticating such Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to receive, and shall be
fully protected in relying upon:

    (i) a copy of any Board Resolution relating thereto; and

    (ii) an Opinion of Counsel stating that: (1) such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute, and the Indenture
constitutes, valid and legally binding obligations of the Company, each enforceable in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles; (2) the Securities have been
duly authorized and executed by the Company and have been delivered to the Trustee for
authentication in accordance with this Indenture; (3) the Securities are not required to be
registered under the Securities Act; and (4) the Indenture is not required to be qualified
under the Trust Indenture Act.

     (b) The Securities shall be executed on behalf of the Company by its Chairman of the
Board, its Vice Chairman of the Board, its Chief Executive Officer, its President or one of
its
Vice Presidents. The signature of any of these officers on the Securities may be manual or
facsimile. Securities bearing the manual or facsimile signatures of individuals who were at
any
time the proper officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such Securities.

     (c) No Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose, unless there appears on such Security a certificate of
authentication
substantially in the form provided for herein executed by the Trustee by the manual signature
of
one of its authorized signatories, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been authenticated and
delivered hereunder but never issued and sold by the Company, and the Company shall have
delivered such Security to the Trustee for cancellation as provided in Section 3.8,
for all
purposes of this Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this Indenture.

     (d) Each Security shall be dated the date of its authentication.

     Section 3.4 Global Securities.

     (a) Upon the election of the Holder after the Original Issue Date, which election need not be
in writing, the Securities owned by such Holder shall be issued in the form of one or more Global
Securities registered in the name of the Depositary or its nominee. Each Global Security issued
under this Indenture shall be registered in the name of the Depositary designated by the Company
for such Global Security or a nominee thereof and delivered to such Depositary or a

28

 

nominee thereof or custodian therefor, and each such Global Security shall constitute a single
Security for all purposes of this Indenture.

     (b) Notwithstanding any other provision in this Indenture, no Global Security may be
exchanged in whole or in part for registered Securities, and no transfer of a Global Security
in
whole or in part may be registered, in the name of any Person other than the Depositary for
such
Global Security or a nominee thereof unless (i) such Depositary advises the Trustee and the
Company in writing that such Depositary is no longer willing or able to properly discharge its
responsibilities as Depositary with respect to such Global Security, and no qualified
successor is
appointed by the Company within ninety (90) days of receipt by the Company of such notice,
(ii)
such Depositary ceases to be a clearing agency registered under the Exchange Act and no
successor is appointed by the Company within ninety (90) days after obtaining knowledge of
such event, (iii) the Company executes and delivers to the Trustee a Company Order stating
that
the Company elects to terminate the book-entry system through the Depositary or (iv) an Event
of Default shall have occurred and be continuing. Upon the occurrence of any event specified
in
clause (i), (ii), (iii) or (iv) above in this Section 3.4(b), the Trustee shall notify
the Depositary
and instruct the Depositary to notify all owners of beneficial interests in such Global
Security of
the occurrence of such event and of the availability of Securities to such owners of
beneficial
interests requesting the same. The Trustee may conclusively rely, and be protected in
relying,
upon the written identification of the owners of beneficial interests furnished by the
Depositary,
and shall not be liable for any delay resulting from a delay by the Depositary. Upon the
issuance
of such Securities and the registration in the Securities Register of such Securities in the
names
of the Holders of the beneficial interests therein, the Trustees shall recognize such holders
of
beneficial interests as Holders.

     (c) If any Global Security is to be exchanged for other Securities or canceled in part,
or if another Security is to be exchanged in whole or in part for a beneficial interest in any
Global Security, then either (i) such Global Security shall be so surrendered for exchange or
cancellation as provided in this Article III or (ii) the principal amount thereof
shall be reduced or
increased by an amount equal to (x) the portion thereof to be so exchanged or canceled or (y)
the
principal amount of such other Security to be so exchanged for a beneficial interest therein,
as
the case may be, by means of an appropriate adjustment made on the records of the Securities
Registrar, whereupon the Trustee, in accordance with the Applicable Depositary Procedures,
shall instruct the Depositary or its authorized representative to make a corresponding
adjustment
to its records. Upon any such surrender or adjustment of a Global Security by the Depositary,
accompanied by registration instructions, the Company shall execute and the Trustee shall
authenticate and deliver any Securities issuable in exchange for such Global Security (or any
portion thereof) in accordance with the instructions of the Depositary. The Trustee shall not
be
liable for any delay in delivery of such instructions and may conclusively rely on, and shall
be
fully protected in relying on, such instructions.

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

29

 

     (e) Securities distributed to holders of Book-Entry Preferred Securities (as defined
in the Trust Agreement) upon the dissolution of the Trust shall be distributed in the form of one
or more Global Securities registered in the name of a Depositary or its nominee, and deposited with
the Securities Registrar, as custodian for such Depositary, or with such Depositary, for credit by
the Depositary to the respective accounts of the beneficial owners of the Securities represented
thereby (or such other accounts as they may direct). Securities distributed to holders of Preferred
Securities other than Book-Entry Preferred Securities upon the dissolution of the Trust shall not
be issued in the form of a Global Security or any other form intended to facilitate book-entry
trading in beneficial interests in such Securities.

     (f) The Depositary or its nominee, as the registered owner of a Global Security, shall be the
Holder of such Global Security for all purposes under this Indenture and the Securities, and owners
of beneficial interests in a Global Security shall hold such interests pursuant to the Applicable
Depositary Procedures. Accordingly, any such owner’s beneficial interest in a Global Security
shall be shown only on, and the transfer of such interest shall be effected only through, records
maintained by the Depositary or its nominee or its Depositary Participants. The Securities
Registrar and the Trustee shall be entitled to deal with the Depositary for all purposes of this
Indenture relating to a Global Security (including the payment of principal and interest thereon
and the giving of instructions or directions by owners of beneficial interests therein and the
giving of notices) as the sole Holder of the Security and shall have no obligations to the owners
of beneficial interests therein. Neither the Trustee nor the Securities Registrar shall have any
liability in respect of any transfers effected by the Depositary.

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

     (h) No holder of any beneficial interest in any Global Security held on its behalf by a
Depositary shall have any rights under this Indenture with respect to such Global Security, and
such Depositary may be treated by the Company, the Guarantor, the Trustee and any agent of the
Company, the Guarantor or the Trustee as the owner of such Global Security for all purposes
whatsoever. None of the Company, the Guarantor, the Trustee and any agent of the Company, the
Guarantor or the Trustee will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests of a Global Security or
maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the Guarantor, the Trustee
or any agent of the Company, the Guarantor or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by a Depositary or impair, as between a
Depositary and such holders of beneficial interests, the operation of customary practices governing
the exercise of the rights of the Depositary (or its nominee) as Holder of any Security.

     Section 3.5 Registration, Transfer and Exchange Generally.

     (a) The Trustee shall cause to be kept at the Corporate Trust Office a register (the
“Securities Register”) in which the registrar and transfer agent with respect to the Securities
(the “Securities Registrar”), subject to such reasonable regulations as it may prescribe, shall
provide

30

 

for the registration of Securities and of transfers and exchanges of Securities. The Trustee shall
at all times also be the Securities Registrar. The provisions of Article VI shall apply to
the Trustee in its role as Securities Registrar.

     (b) Subject to compliance with Section 2.2(b), upon surrender for registration of
transfer of any Security at the offices or agencies of the Company designated for that purpose the
Company shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of any authorized denominations of
like tenor and aggregate principal amount.

     (c) At the option of the Holder, Securities may be exchanged for other Securities of any
authorized denominations, of like tenor and aggregate principal amount, upon surrender of the
Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the
Securities that the Holder making the exchange is entitled to receive.

     (d) All Securities issued upon any transfer or exchange of Securities shall be the valid
obligations of the Company, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such transfer or exchange.

     (e) Every Security presented or surrendered for transfer or exchange shall (if so required by
the Company or the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer
in form satisfactory to the Company and the Securities Registrar, duly executed by the Holder
thereof or such Holder’s attorney duly authorized in writing.

     (f) No service charge shall be made to a Holder for any transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of Securities.

     (g) Neither the Company nor the Trustee shall be required pursuant to the provisions of this
Section 3.5: (i) to issue, register the transfer of or exchange any Security during a
period beginning at the opening of business fifteen (15) days before the day of selection for
redemption of Securities pursuant to Article XI and ending at the close of business on the
day of mailing of the notice of redemption or (ii) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except, in the case of any such Security
to be redeemed in part, any portion thereof not to be redeemed.

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

     (i) The Securities may only be transferred to a “Qualified Purchaser” as such term is defined
in Section 2(a)(51) of the Investment Company Act.

31

 

     (j) Neither the Trustee nor the Securities Registrar shall be responsible for ascertaining
whether any transfer hereunder complies with the registration provisions of or any exemptions from
the Securities Act, applicable state securities laws or the applicable laws of any other
jurisdiction, ERISA, the Code or the Investment Company Act; provided, that if a
certificate is specifically required by the express terms of this Section 3.5 to be
delivered to the Trustee or the Securities Registrar by a Holder or transferee of a Security, the
Trustee and the Securities Registrar shall be under a duty to receive and examine the same to
determine whether or not the certificate substantially conforms on its face to the requirements of
this Indenture and shall promptly notify the party delivering the same if such certificate does
not comply with such terms.

     Section 3.6 Mutilated, Destroyed, Lost and Stolen Securities.

     (a) If any mutilated Security is surrendered to the Trustee together with such security or
indemnity as may be required by the Company or the Trustee to save each of them harmless, the
Company shall execute and upon receipt thereof the Trustee shall authenticate and deliver in
exchange therefor a new Security of like tenor and aggregate principal amount and bearing a number
not contemporaneously outstanding.

     (b) If there shall be delivered to the Company and the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity
as may be required by them to save each of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company
shall execute and upon its written request the Trustee shall authenticate and deliver, in lieu of
any such destroyed, lost or stolen Security, a new Security of like tenor and aggregate principal
amount as such destroyed, lost or stolen Security, and bearing a number not contemporaneously
outstanding.

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

     (d) Upon the issuance of any new Security under this Section 3.6, 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 (including the fees and expenses of the Trustee)
connected therewith.

     (e) Every new Security issued pursuant to this Section 3.6 in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

     (f) The provisions of this Section 3.6 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities.

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     Section 3.7 Persons Deemed Owners.

     The Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor or the
Trustee shall treat the Person in whose name any Security is registered as the owner of such
Security for the purpose of receiving payment of principal of and any interest on such Security
and for all other purposes whatsoever, and none of the Company, the Guarantor, the Trustee and any
agent of the Company, the Guarantor or the Trustee shall be affected by notice to the contrary.

     Section 3.8 Cancellation.

     All Securities surrendered for payment, redemption, transfer or exchange shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee, and any such
Securities and Securities surrendered directly to the Trustee for any such purpose shall be
promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder that the Company may have acquired in
any manner whatsoever, and all Securities so delivered shall be promptly canceled by the Trustee.
No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as
provided in this Section 3.8, except as expressly permitted by this Indenture. All
canceled Securities shall be retained or disposed of by the Trustee in accordance with its
customary practices and the Trustee shall deliver to the Company a certificate of such
disposition.

     Section 3.9 Deferrals of Interest Payment Dates.

     (a) So long as no Event of Default has occurred and is continuing, the Company shall have the
right, at any time and from time to time during the term of the Securities, to defer the payment of
interest on the Securities for a period of up to four (4) consecutive quarterly interest payment
periods (each such period, an “Extension Period”), during which Extension Period(s), no interest
shall be due and payable (except any Additional Tax Sums that may be due and payable). No Extension
Period shall end on a date other than an Interest Payment Date, and no Extension Period shall
extend beyond the Stated Maturity of the principal of the Securities. No interest shall be due and
payable during an Extension Period (except any Additional Tax Sums that may be due and payable),
except at the end thereof, but each installment of interest that would otherwise have been due and
payable during such Extension Period shall bear Additional Interest (to the extent payment of such
interest would be legally enforceable) at a fixed rate equal to 6.964% per annum through the
Interest Payment Date in April 2011 and thereafter at a variable rate per annum, reset quarterly,
equal to LIBOR plus 1.95%, compounded quarterly, from and including the dates on which amounts
would have otherwise been due and payable to but excluding the dates such amounts are paid or made
available for payment. At the end of any such Extension Period, the Company shall pay all interest
then accrued and unpaid on the Securities, together with such Additional Interest. Prior to the
termination of any such Extension Period, the Company may further defer the payment of interest;
provided, that (i) all such previous and further extensions comprising such Extension
Period do not exceed four (4) quarterly interest payment periods, (ii) no Extension Period shall
end on a date other than an Interest Payment Date and (iii) no Extension Period shall extend beyond
the Stated Maturity of the principal of the Securities. Upon the termination of any such Extension
Period and upon the

33

 

payment of all accrued and unpaid interest and any Additional Interest then due on any Interest
Payment Date, the Company may elect to begin a new Extension Period; provided, that (i)
such Extension Period does not exceed four (4) quarterly interest payment periods, (ii) no
Extension Period shall end on a date other than an Interest Payment Date, (iii) no Extension
Period shall extend beyond the Stated Maturity of the principal of the Securities and (iv) no
Event of Default has occurred and is continuing. The Company shall give (i) the Holder of the
Securities, (ii) the Trustee, (iii) the Property Trustee and (iv) any beneficial owner of the
Preferred Securities reasonably identified to the Company (which identification may be made either
by such beneficial owner or by the Placement Agent or the Purchaser) written notice of its
election to begin any such Extension Period no later than the close of business on the fifteenth
(15th) Business Day prior to the next succeeding Interest Payment Date on which interest on the
Securities would be payable but for such deferral.

     (b) In connection with any such Extension Period, the Company shall be subject to the
restrictions set forth in Section 10.6(a).

     Section 3.10 Agreed Tax Treatment.

     Each Security issued hereunder shall provide that the Company and, by its acceptance or
acquisition of a Security or a beneficial interest therein, the Holder of, and any Person that
acquires a direct or indirect beneficial interest in, such Security, intend and agree to treat
such Security as indebtedness of the Company for United States federal, state and local tax
purposes and to treat the Preferred Securities (including but not limited to all payments and
proceeds with respect to the Preferred Securities) as an undivided beneficial ownership interest
in the Securities (and any other Trust property) (and payments and proceeds therefrom,
respectively) for United States federal, state and local tax purposes. The provisions of this
Indenture shall be interpreted to further this intention and agreement of the parties.

     Section 3.11 CUSIP Numbers.

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

ARTICLE IV

SATISFACTION AND DISCHARGE

     Section 4.1 Satisfaction and Discharge of Indenture.

     This Indenture shall, upon Company Request, cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein expressly provided
for and as otherwise provided in this Section 4.1) and the Trustee, on demand of and at

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the expense of the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

     (a) either

    (i) all Securities theretofore authenticated and delivered (other than (A) Securities
that have been mutilated, destroyed, lost or stolen and that have been replaced or paid as
provided in Section 3.6 and (B) Securities for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust as provided in
Section 10.2)
have been delivered to the Trustee for cancellation; or

    (ii) all such Securities not theretofore delivered to the Trustee for
cancellation

      (A) have become due and payable; or

      (B) will become due and payable at their Stated Maturity within one (1) year of
the date of deposit; or

      (C) are to be called for redemption within one (1) year under
arrangements satisfactory to the Trustee for the giving of notice of redemption by
the Trustee in the name, and at the expense, of the Company;

and the Company, in the case of subclause (ii)(A), (B) or (C) above, has deposited or caused
to be deposited with the Trustee as trust funds in trust for such purpose (x) an amount in
the currency or currencies in which the Securities are payable, (y) Government Obligations
which through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than the due date of any payment, money
in an amount or (z) a combination thereof, in each case sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge the entire indebtedness
on such Securities not theretofore delivered to the Trustee for cancellation, for principal
and any premium and interest (including any Additional Interest) to the date of such deposit
(in the case of Securities that have become due and payable) or to the Stated Maturity (or
any date of principal repayment upon early maturity) or Redemption Date, as the case may be;

     (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
and

     (c) the Company has delivered to the Trustee 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.

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company
to the Trustee under Section 6.6, the obligations of the Company to any Authenticating
Agent under Section 6.11 and, if money shall have been deposited with the Trustee pursuant
to

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subclause (a)(ii) of this
Section 4.1, the obligations of the Trustee under Section
4.2 and Section 10.2(e) shall survive.

     Section 4.2
Application of Trust Money.

     Subject to the provisions of Section 10.2(e), all money deposited with the Trustee
pursuant to Section 4.1 shall be held in trust and applied by the Trustee, in accordance
with the provisions of the Securities and this Indenture, to the payment in accordance with
Section 3.1, either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the
principal and any premium and interest (including any Additional Interest) for the payment of
which such money or obligations have been deposited with or received by the Trustee. Moneys held
by the Trustee under this Section 4.2 shall not be subject to the claims of holders of
Senior Debt under Article XII.

ARTICLE V

REMEDIES

     Section 5.1
 Events of Default.

     “Event of Default” means, wherever used herein with respect to the Securities, any one of the
following events (whatever the reason for such Event of Default and whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or governmental body):

     (a) default in the payment of any interest upon any Security, including any Additional
Interest in respect thereof, when it becomes due and payable, and continuance of such default for a
period of thirty (30) days (subject to the deferral of any due date in the case of an Extension
Period); or

     (b) default in the payment of the principal of or any premium on any Security at its Maturity;
or

     (c) default in the performance, or breach, of any covenant or warranty of the Company or the
Guarantor in this Indenture and continuance of such default or breach for a period of thirty (30)
days after there has been given, by registered or certified mail, to the Company and the Guarantor
by the Trustee or to the Company or the Guarantor and the Trustee by the Holders of at least
twenty-five percent (25%) in aggregate principal amount of the Outstanding 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 (a
“Notice of Default”); or

     (d) the entry by a court having jurisdiction in the premises of a decree or order adjudging
the Company or the Guarantor a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect of the Company or
the Guarantor under any applicable federal or state bankruptcy, insolvency,

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reorganization or other similar law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or the Guarantor or of any
substantial part of its property, or ordering the winding up or liquidation of its affairs, and
the continuance of any such decree or order for relief or any such other decree or order unstayed
and in effect for a period of sixty (60) consecutive days; or

     (e) the institution by the Company or the Guarantor of proceedings to be adjudicated a
bankrupt or insolvent, or the consent by the Company or the Guarantor to the institution of
bankruptcy or insolvency proceedings against it, or the filing by the Company or the Guarantor of a
petition or answer or consent seeking reorganization or relief under any applicable federal or
state bankruptcy, insolvency, reorganization or other similar law, or the consent by it to the
filing of such petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or the
Guarantor or of any substantial part of their respective property, or the making by the Company or
the Guarantor of an assignment for the benefit of creditors, or the admission by the Company or the
Guarantor in writing of its inability to pay its debts generally as they become due and its
willingness to be adjudicated a bankrupt or insolvent, or the taking of corporate action by the
Company or the Guarantor in furtherance of any such action; 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 Securities to holders of the Preferred Securities in liquidation of their interests in the
Trust, (2) the redemption of all of the outstanding Preferred Securities or (3) certain mergers,
consolidations or amalgamations, each as and to the extent permitted by the Trust Agreement; or

     (g) the Guarantee shall cease to be in full force and effect or the Guarantor shall, in
writing to the Trustee, to a Holder or a holder of the Preferred Securities or to any governmental
agency or regulatory authority, deny or disaffirm its obligations under the Guarantee.

     Section 5.2
 Acceleration of Maturity; Rescission and Annulment.

     (a) If an Event of Default occurs and is continuing, then and in every such case the Trustee
or the Holders of not less than twenty-five percent (25%) in aggregate principal amount of the
Outstanding Securities may declare the principal amount of all the Securities to be immediately due
and payable, by a notice in writing to the Company and the Guarantor (and to the Trustee if given
by Holders); provided, that if, upon an Event of Default, the Trustee or the Holders of not
less than twenty-five percent (25%) in principal amount of the Outstanding Securities fail to
declare the principal of all the Outstanding Securities to be immediately due and payable, the
holders of at least twenty-five percent (25%) in aggregate Liquidation Amount of the Preferred
Securities then outstanding shall have the right to make such declaration by a notice in writing to
the Property Trustee, the Company, the Guarantor and the Trustee; and upon any such declaration the
principal amount of and the accrued interest (including any Additional Interest) on all the
Securities shall become immediately due and payable.

     (b) At any time after such a declaration of acceleration with respect to Securities has been
made and before a judgment or decree for payment of the money due has been obtained by the Trustee
as hereinafter provided in this Article V, the Holders of a majority in aggregate

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principal amount of the Outstanding Securities, by written notice to the Trustee, or the
holders of a majority in aggregate Liquidation Amount of the Preferred Securities then
outstanding, by written notice to the Property Trustee, the Company, the Guarantor and the
Trustee, may rescind and annul such declaration and its consequences if:

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

      (A) all overdue installments of interest on all Securities;

      (B) any accrued Additional Interest on all Securities;

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

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

    (ii) all Events of Default with respect to Securities, other than the
nonpayment of the principal of Securities that has become due solely by such acceleration,
have been cured or waived as provided in Section 5.13;

provided, that if the Holders of such Securities fail to rescind and annul such declaration
and waive such default, the holders of not less than a majority in aggregate Liquidation Amount of
the Preferred Securities then outstanding shall also have the right to rescind and annul such
declaration and its consequences by written notice to the Property Trustee, the Company, the
Guarantor and the Trustee, subject to the satisfaction of the conditions set forth in paragraph (b)
of this Section 5.2. No such rescission shall affect any subsequent default or impair any
right consequent thereon.

     Section 5.3
 Collection of Indebtedness and Suits for Enforcement by
Trustee.

     (a) Each of the Company and the Guarantor covenants that if:

    (i) default is made in the payment of any installment of interest (including any
Additional Interest) on any Security when such interest becomes due and payable and such
default continues for a period of thirty (30) days; or

    (ii) default is made in the payment of the principal of and any premium on any
Security at the Maturity thereof;

the Company and the Guarantor will, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Holders of such Securities, the whole amount then due and payable on such

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Securities for principal and any premium and interest (including any Additional Interest) and, in
addition thereto, all amounts owing the Trustee under
Section 6.6.

     (b) If the Company or the Guarantor fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding
for the collection of the sums so due and unpaid, and may prosecute such proceeding to judgment or
final decree, and may enforce the same against the Company, the Guarantor or any other obligor upon
such Securities and collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Company, the Guarantor or any other obligor upon the Securities,
wherever situated.

     (c) If an Event of Default with respect to Securities occurs and is continuing, the Trustee
may in its discretion proceed to protect and enforce its rights and the rights of the Holders of
Securities by such appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.

     Section 5.4
 Trustee May File Proofs of Claim.

     In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or similar judicial proceeding relative to the Company or the Guarantor (or
any other obligor upon the Securities), its property or its creditors, the Trustee shall be
entitled and empowered, by intervention in such proceeding or otherwise, to take any and all
actions authorized hereunder in order to have claims of the Holders and the Trustee allowed in any
such proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder 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
Holders, to first pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts owing the
Trustee, any predecessor Trustee and other Persons under Section
6.6.

     Section 5.5
Trustee May Enforce Claim Without Possession of Securities.

     All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, subject
to Article XII and after provision for the payment of all the amounts owing the Trustee,
any predecessor Trustee and other Persons under Section 6.6, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been recovered.

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     Section 5.6
 Application of Money Collected.

     Any money or property collected or to be applied by the Trustee with respect to the
Securities pursuant to this Article V shall be applied in the following order, at the date
or dates fixed by the Trustee and, in case of the distribution of such money or property on
account of principal or any premium or interest (including any Additional Interest), upon
presentation of the Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee, any predecessor Trustee and other
Persons under Section 6.6;

     SECOND: To the payment of all Senior Debt of the Company if and to the extent required by
Article XII or by Article XIV;

     THIRD: Subject to Article XII and Article XIV, to the payment of the amounts
then due and unpaid upon the Securities for principal and any premium and interest (including any
Additional Interest) in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on the Securities for principal and any premium and interest (including any Additional
Interest), respectively; and

     FOURTH: The balance, if any, to the Person or Persons entitled thereto.

     Section 5.7 Limitation on Suits.

     Subject to Section 5.8, no Holder of any Securities shall have any right to institute
any proceeding, judicial or otherwise, with respect to this Indenture or for the appointment of a
custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar official) or
for any other remedy hereunder, unless:

     (a) such Holder has previously given written notice to the Trustee of a continuing Event of
Default with respect to the Securities;

     (b) the Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder;

     (c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs,
expenses and liabilities to be incurred in compliance with such request;

     (d) the Trustee after its receipt of such notice, request and offer of indemnity has failed to
institute any such proceeding for sixty (60) days; and

     (e) no direction inconsistent with such written request has been given to the Trustee during
such sixty (60)-day period by the Holders of a majority in aggregate principal amount of the
Outstanding Securities;

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it being understood and intended that no one or more of such Holders shall have any right in
any manner whatever by virtue of, or by availing itself of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other Holders of Securities, or to obtain or to
seek to obtain priority or preference over any other of such Holders or to enforce any right under
this Indenture, except in the manner herein provided and for the equal and ratable benefit of all
such Holders.

     Section 5.8 Unconditional Right of Holders to Receive Principal, Premium, if any, and
Interest; Direct Action by Holders of Preferred Securities.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and premium,
if any, on such Security at its Maturity and payment of interest (including any Additional
Interest) on such Security when due and payable and to institute suit for the enforcement of any
such payment, and such right shall not be impaired without the consent of such Holder. Any
registered holder of the Preferred Securities shall have the right, upon the occurrence of an Event
of Default described in Section 5.1(a) or
Section 5.1(b), to institute a suit
directly against the Company or the Guarantor for enforcement of payment to such holder of
principal of, premium, if any, and interest (including any Additional Interest) on the Securities
having a principal amount equal to the aggregate Liquidation Amount of the Preferred Securities
held by such holder.

     Section 
5.9 Restoration of Rights and Remedies.

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

     Section 5.10
 Rights and Remedies Cumulative.

     Except
 as otherwise provided in Section 3.6(f), no right or remedy herein conferred
upon or reserved to the Trustee or the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

     Section 5.11
 Delay or Omission Not Waiver.

     No delay or omission of the Trustee, any Holder of any Securities or any holder of any
Preferred Security to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article V or by law to the Trustee or to the
Holders and the right and remedy given to the holders of Preferred Securities by Section

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5.8 may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee, the Holders or the holders of Preferred Securities, as the case may be.

     Section 5.12
Control by Holders.

     The Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities (or, as the case may be, the holders of a majority in aggregate Liquidation Amount of
the Preferred Securities then 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; provided, that:

     (a) such direction shall not be in conflict with any rule of law or with this Indenture;

     (b) the Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction; and

     (c) subject
 to the provisions of Section 6.2, the Trustee shall have the right to decline to
follow such direction if a Responsible Officer or Officers of the Trustee shall, in good faith,
reasonably determine that the proceeding so directed would be unjustly prejudicial to the Holders
not joining in any such direction or would involve the Trustee in personal liability.

     Section 5.13
 Waiver of Past Defaults.

     (a) The Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities or the holders of not less than a majority in aggregate Liquidation Amount of the
Preferred Securities then outstanding may waive any past Event of Default hereunder and its
consequences except an Event of Default:

    (i) in the payment of the principal of, premium, if any, or interest (including any
Additional Interest) on any Outstanding Security (unless such Event of Default has been
cured and the Company or the Guarantor has paid to or deposited with the Trustee a sum
sufficient to pay all installments of interest (including any Additional Interest) due and
past due and all principal of and premium, if any, on all Securities due otherwise than by
acceleration); or

    (ii) in respect of a covenant or provision hereof that under Article IX cannot
be modified or amended without the consent of each Holder of any Outstanding Security.

     (b) Any such waiver shall be deemed to be on behalf of the Holders of all the Outstanding
Securities or, in the case of a waiver by holders of Preferred Securities issued by such Trust, by
all holders of Preferred Securities.

     (c) Upon any such waiver, such Event of Default shall cease to exist and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Event of Default or impair any right consequent
thereon.

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     Section 5.14
 Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Security by his or her 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; provided, however, that the provisions of this Section
5.14 shall not apply to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than ten percent (10%) in aggregate
principal amount of the Outstanding Securities, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of or premium, if any, on the Security after the
Stated Maturity or any interest (including any Additional Interest) on any Security after it is
due and payable.

     Section 5.15
Waiver of Usury, Stay or Extension Laws.

     Each of the Company and the Guarantor covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any usury, stay or extension law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this Indenture; and each
of the Company and the Guarantor (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

ARTICLE VI

THE TRUSTEE

     Section 6.1
 Corporate Trustee Required.

     There shall at all times be a Trustee hereunder with respect to the Securities. JPMorgan Chase
Bank, National Association is hereby appointed Trustee under this Indenture, and JPMorgan Chase
Bank, National Association hereby accepts such appointment. The Trustee shall be a corporation or
national banking association organized and doing business under the laws of the United States or of
any state thereof, authorized to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000, subject to supervision or examination by federal or state
authority and having an office within the United States. If such entity publishes reports of
condition at least annually, pursuant to law or to the requirements of such supervising or
examining authority, then, for the purposes of this
Section 6.1, the combined capital and
surplus of such entity shall be deemed to be its combined capital and surplus as set forth in its
most recent report of condition so published. If at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 6.1, it shall resign immediately in the
manner and with the effect hereinafter specified in this
Article VI.

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     Section 6.2
Certain Duties and
Responsibilities.

     Except during the continuance of an
Event of Default:

    (i) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

    (ii)
in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of
this Indenture; provided, that in the case of any such certificates or opinions
that 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
substantially conform on their face to the requirements of this Indenture.

     (b) If an Event of Default known to the Trustee has occurred and is continuing, the Trustee
shall, prior to the receipt of directions, if any, from the Holders of at least a majority in
aggregate principal amount of the Outstanding Securities (or, if applicable, from the holders of at
least a majority in aggregate Liquidation Amount of the Preferred Securities then outstanding),
exercise such of the rights and powers vested in it by this Indenture, and use the same degree of
care and skill in its exercise, as a prudent person would exercise or use under the circumstances
in the conduct of such person’s own affairs.

     (c) Notwithstanding the foregoing, no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it. Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the
provisions of this Section 6.2.
To the extent that, at law or in equity, the Trustee has duties and liabilities relating to the
Holders, the Trustee shall not be liable to any Holder or any holder of Preferred Securities for
the Trustee’s good faith reliance on the provisions of this Indenture. The provisions of this
Indenture, to the extent that they restrict the duties and liabilities of the Trustee otherwise
existing at law or in equity, are agreed by the Company and the Holders and the holders of
Preferred Securities to replace such other duties and liabilities of the Trustee.

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

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

    (ii) 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 Holders of at least a

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majority in aggregate principal amount of the Outstanding Securities (or such other
percentage as may be required by the terms hereof) (or, as the case may be, the holders of
a majority in aggregate Liquidation Amount of the Preferred Securities then outstanding)
relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee under this Indenture; and

     (iii) the Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed in writing with the Company and money held by the
Trustee in trust hereunder need not be segregated from other funds except to the extent
required by law.

     (e) If at any time the Trustee hereunder is not the same Person as the Property Trustee under
the Trust Agreement:

     (i) whenever a reference is made herein to the dissolution, termination or liquidation
of the Trust, the Trustee shall be entitled to assume that no such dissolution, termination
or liquidation has occurred so long as the Securities are or continue to be registered in
the name of such Property Trustee, and the Trustee shall be charged with notice or
knowledge of such dissolution, termination or liquidation only upon written notice thereof
given to the Trustee by the Depositor under the Trust Agreement; and

     (ii) the Trustee shall not be charged with notice or knowledge that any Person is a
holder of Preferred Securities or Common Securities issued by the Trust or whether any
group of holders of Preferred Securities constitutes any specified percentage of all
outstanding Preferred Securities for any purpose under this Indenture, unless and until the
Trustee is furnished with a list of holders by such Property Trustee and the aggregate
Liquidation Amount of the Preferred Securities then outstanding. The Trustee may
conclusively rely and shall be protected in relying on such list.

     (f) Notwithstanding Section 1.10, the Trustee shall not, and shall not be deemed to,
owe any fiduciary duty to the holders of any of the Trust Securities issued by the Trust and shall
not be liable to any such holder (other than for the willful misconduct or negligence of the
Trustee) if the Trustee in good faith (i) pays over or distributes to a registered Holder of the
Securities or to the Company, the Guarantor or to any other Person, cash, property or securities to
which such holders of such Trust Securities shall be entitled or (ii) takes any action or omits to
take any action at the request of the Holder of such Securities. Nothing in this paragraph shall
affect the obligation of any other such Person to hold such payment for the benefit of, and to pay
such amount over to, such holders of Preferred Securities or Common Securities or their
representatives.

     Section 6.3 Notice of Defaults.

     Within ninety (90) days after the occurrence of any default actually known to the Trustee, the
Trustee shall give the Holders notice of such default unless such default shall have been cured or
waived; provided, that except in the case of a default in the payment of the principal of
or any premium or interest on any Securities, the Trustee shall be fully protected in withholding
the notice if and so long as the board of directors, the executive committee or a trust committee

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of directors and/or Responsible Officers of the Trustee in good faith determines that
withholding the notice is in the interest of Holders of Securities;
and provided, further,
that in the case of any default of the character specified in Section 5.1(c), no such
notice to Holders shall be given until at least thirty (30) days after the occurrence thereof. For
the purpose of this Section 6.3, the term
“default” means any event which is, or after
notice or lapse of time or both would become, an Event of Default.

     Section 6.4 Certain Rights of Trustee.

     Subject
to the provisions of Section 6.2:

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

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

     (c) any request or direction of the Company shall be sufficiently evidenced by a Company
Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced
by a Board Resolution;

     (d) the Trustee may consult with counsel (which counsel may be counsel to the Trustee, the
Company, the Guarantor or any of their Affiliates, and may include any of its employees) and the
advice of such counsel or any 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
reliance thereon;

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders or any holder of Preferred
Securities pursuant to this Indenture, unless such Holders (or such holders of Preferred
Securities) shall have offered to the Trustee security or indemnity reasonably satisfactory to it
against the costs, expenses (including reasonable attorneys’ fees and expenses) and liabilities
that

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might be incurred by it in compliance with such request or direction, including reasonable
advances as may be requested by the Trustee;

     (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, direction,
consent, order, bond, indenture, note or other paper or document, but the Trustee in its discretion
may make such inquiry or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company and the Guarantor, personally or by agent or attorney;

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

     (h) whenever in the administration of this Indenture the Trustee shall deem it desirable to
receive instructions with respect to enforcing any remedy or right or taking any other action with
respect to enforcing any remedy or right hereunder, the Trustees (i) may request instructions from
the Holders (which instructions may only be given by the Holders of the same aggregate principal
amount of Outstanding Securities as would be entitled to direct the Trustee under this Indenture
in respect of such remedy, right or action), (ii) may refrain from enforcing such remedy or right
or taking such action until such instructions are received and (iii) shall be protected in acting
in accordance with such instructions;

     (i) except as otherwise expressly provided by this Indenture, the Trustee shall not be under
any obligation to take any action that is discretionary under the provisions of this Indenture;

     (j) without prejudice to any other rights available to the Trustee under applicable law, when
the Trustee incurs expenses or renders services in connection with any bankruptcy, insolvency or
other proceeding referred to in clauses (d) or (e) of the definition of Event of Default specified
in Section 5.1, such expenses (including legal fees and expenses of its agents and counsel)
and the compensation for such services are intended to constitute expenses of administration under
any bankruptcy laws or law relating to creditors rights generally;

     (k) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, conclusively rely upon an Officers’ Certificate addressing such matter, which, upon
receipt of such request, shall be promptly delivered by the Company or the Guarantor;

     (l) the Trustee shall not be charged with knowledge of any Event of Default unless either (i)
a Responsible Officer of the Trustee shall have actual knowledge or (ii) the Trustee shall have
received written notice thereof from the Company, the Guarantor or a Holder; and

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     (m) in the event that the Trustee is also acting as Paying Agent, Authenticating Agent or
Securities Registrar hereunder, the rights and protections afforded to the Trustee pursuant to
this Article VI shall also be afforded such Paying Agent, Authenticating Agent or
Securities Registrar.

     Section 6.5 May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Securities Registrar or any
other agent of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with the Company and the Guarantor with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Securities
Registrar or such other agent.

     Section 6.6 Compensation; Reimbursement; Indemnity.

     (a) The Company agrees:

     (i) to pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder in such amounts as the Company and the Trustee shall agree from
time to time (which compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);

     (ii) to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with any provision
of this Indenture (including the reasonable compensation and the expenses and disbursements
of its agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence, bad faith or willful misconduct; and

     (iii) to the fullest extent permitted by applicable law, to indemnify the Trustee and
its Affiliates, and their officers, directors, shareholders, agents, representatives and
employees for, and to hold them harmless against, any loss, damage, liability, tax (other
than income, franchise or other taxes imposed on amounts paid pursuant to clause (i) or
(ii) of this Section 6.6(a)), penalty, expense or claim of any kind or nature
whatsoever incurred without negligence, bad faith or willful misconduct on its part arising
out of or in connection with the acceptance or administration of this trust or the
performance of the Trustee’s duties hereunder, including the costs and expenses of
defending itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder.

     (b) To secure the Company’s payment obligations in this Section 6.6, the Company
hereby grants and pledges to the Trustee and the Trustee shall have a lien prior to the Securities
on all money or property held or collected by the Trustee, other than money or property held in
trust to pay principal and interest on particular Securities. Such lien shall survive the
satisfaction and discharge of this Indenture or the resignation or removal of the Trustee.

     (c) The obligations of the Company and the Guarantor under this Section 6.6 shall
survive the satisfaction and discharge of this Indenture and the earlier resignation or removal of
the Trustee.

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     (d) In no event shall the Trustee be liable for any indirect, special, punitive or
consequential loss or damage of any kind whatsoever, including, but not limited to, lost profits,
even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the
form of action.

     (e) In no event shall the Trustee be liable for any failure or delay in the performance of its
obligations hereunder because of circumstances beyond its control, including, but not limited to,
acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo,
government action, including any laws, ordinances, regulations, governmental action or the like
which delay, restrict or prohibit the providing of the services contemplated by this Indenture.

     Section 6.7 Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article VI shall become effective until the acceptance of appointment by
the successor Trustee under Section 6.8.

     (b) The Trustee may resign at any time by giving written notice thereof to the Company.

     (c) Unless an Event of Default shall have occurred and be continuing, the Trustee may be
removed at any time by the Company by a Board Resolution. If an Event of Default shall have
occurred and be continuing, the Trustee may be removed by Act of the Holders of a majority in
aggregate principal amount of the Outstanding Securities, delivered to the Trustee and to the
Company and the Guarantor.

     (d) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any reason, at a time when no Event of Default shall have
occurred and be continuing, the Company, by a Board Resolution, shall promptly appoint a successor
Trustee, and such successor Trustee and the retiring Trustee shall comply with the applicable
requirements of Section 6.8. If the Trustee shall resign, be removed or become incapable
of acting, or if a vacancy shall occur in the office of Trustee for any reason, at a time when an
Event of Default shall have occurred and be continuing, the Holders, by Act of the Holders of a
majority in aggregate principal amount of the Outstanding Securities, shall promptly appoint a
successor Trustee, and such successor Trustee and the retiring Trustee shall comply with the
applicable requirements of Section 6.8. If no successor Trustee shall have been so appointed by the
Company or the Holders and accepted appointment within sixty (60) days after the giving of a notice
of resignation by the Trustee or the removal of the Trustee in the manner required by Section
6.8, any Holder who has been a bona fide Holder of a Security for at least six (6) months may,
on behalf of such Holder and all others similarly situated, and any resigning Trustee may, at the
expense of the Company, petition any court of competent jurisdiction for the appointment of a
successor Trustee.

     (e) The Company shall give notice to all Holders in the manner provided in Section 1.6
of each resignation and each removal of the Trustee and each appointment of a successor

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Trustee. Each notice shall include the name of the successor Trustee and the address of its
Corporate Trust Office.

     Section 6.8 Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Trustee, each successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; provided, that, on the request of the Company or the successor Trustee, such
retiring Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee
and shall duly assign, transfer and deliver to such successor Trustee all property and money held
by such retiring Trustee hereunder.

     (b) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
rights, powers and trusts referred to in paragraph (a) of this Section 6.8.

     (c) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article VI.

     Section 6.9 Merger, Conversion, Consolidation or Succession to Business.

     Any Person into which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate
trust business of the Trustee, shall be the successor of the Trustee hereunder, without the
execution or filing of any paper or any further act on the part of any of the parties hereto;
provided, that such Person shall be otherwise qualified and eligible under this
Article VI. In case any Securities shall have been authenticated, but not delivered, by
the Trustee then in office, any successor by merger, conversion or consolidation or as otherwise
provided above in this Section 6.9 to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated, and in case any Securities shall not
have been authenticated, any successor to the Trustee may authenticate such Securities either in
the name of any predecessor Trustee or in the name of such successor Trustee, and in all cases the
certificate of authentication shall have the full force which it is provided anywhere in the
Securities or in this Indenture that the certificate of the Trustee shall have.

     Section 6.10 Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company or the Guarantor, and neither the
Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or of the Securities.
Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by
the Company of the Securities or the proceeds thereof.

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     Section 6.11 Appointment of Authenticating Agent.

     (a) The Trustee may appoint an Authenticating Agent or Agents with respect to the Securities,
which shall be authorized to act on behalf of the Trustee to authenticate Securities issued upon
original issue and upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 3.6, and Securities so authenticated shall be entitled to the benefits
of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all
times be an entity organized and doing business under the laws of the United States of America, or
of any State or Territory thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by federal or state authority. If such Authenticating Agent
publishes reports of condition at least annually pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section 6.11 the combined
capital and surplus of such Authenticating Agent 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 6.11, such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section 6.11.

     (b) Any Person into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger, conversion or consolidation to which
such Authenticating Agent shall be a party, or any Person succeeding to all or substantially all of
the corporate trust business of an Authenticating Agent shall be the successor Authenticating Agent
hereunder; provided, that such Person shall be otherwise eligible under this Section
6.11, without the execution or filing of any paper or any further act on the part of the
Trustee or the Authenticating Agent.

     (c) An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof 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 such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this
Section 6.11, the Trustee may appoint a successor Authenticating Agent eligible under the
provisions of this Section 6.11, which shall be acceptable to the Company, and shall give
notice of such appointment to all Holders. Any successor Authenticating Agent upon acceptance of
its appointment hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an Authenticating Agent.

     (d) The Company and the Guarantor agree to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section 6.11 in such amounts as the
Company and the Authenticating Agent shall agree from time to time.

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     (e) If an appointment of an Authenticating Agent is made pursuant to this Section
6.11, the Securities may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternative certificate of authentication in the following form:

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

Dated:

	 	 	 	 	 
	 	 	JPMorgan Chase Bank, National Association,
	 	 	not in its individual capacity, but solely as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authenticating Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

ARTICLE VII

HOLDER’S LISTS AND REPORTS BY COMPANY

     Section 7.1 Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee:

     (a) semiannually, on or before June 30 and December 31 of each year, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders as of a date not more
than fifteen (15) days prior to the delivery thereof; and

     (b) at such other times as the Trustee may request in writing, within thirty (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 fifteen (15) days prior to the time such list is furnished;

in each case to the extent such information is in the possession or control of the Company and has
not otherwise been received by the Trustee in its capacity as Securities Registrar.

     Section 7.2 Preservation of Information, Communications to Holders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 7.1 and the names and addresses of Holders received by the Trustee in its capacity
as Securities Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.1 upon receipt of a new list so furnished.

     (b) The rights of Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and privileges of the Trustee,
shall be as provided in the Trust Indenture Act.

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     (c) Every Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them
shall be held accountable by reason of the disclosure of information as to the names and addresses
of the Holders made pursuant to the Trust Indenture Act.

     Section 7.3 Reports by Company and Guarantor.

     (a) The Company shall furnish to the Holders and to prospective purchasers of Securities, upon
their request, the information required to be furnished pursuant to Rule 144A(d)(4) under the
Securities Act. The delivery requirement set forth in the preceding sentence may be satisfied by
compliance with Section 7.3(b).

     (b) The Guarantor shall furnish to each of (i) if the Trustee is not also the Property
Trustee, the Trustee, (ii) the Holders and to subsequent holders of Securities, (iii) the Purchaser
and (iv) any beneficial owner of the Securities reasonably identified to the Guarantor (which
identification may be made either by such beneficial owner or by the Purchaser) and (v) any
designee of (i), (ii), (iii) or (iv) above, a duly completed and executed officer’s financial
certificate substantially and substantively in the form attached hereto as Exhibit A,
including the financial statements referenced in such Exhibit, which certificate and financial
statements shall be so furnished by the Guarantor not later than forty-five (45) days after the end
of each of the first three (3) fiscal quarters of each fiscal year of the Guarantor and not later
than ninety (90) days after the end of each fiscal year of the Guarantor, or, if applicable, such
shorter respective periods as may then be required by the Commission for the filing by the
Guarantor of quarterly reports on Form 10-Q and annual reports on Form 10-K. The delivery
requirements under this Section 7.3(b) may be satisfied by compliance with Section 8.16(b)
of the Trust Agreement.

     (c) If the Company and/or the Guarantor intends to file its annual and quarterly information
with the Securities and Exchange Commission (the “Commission”) in electronic form pursuant to
Regulation S-T of the Commission using the Commission’s Electronic Data Gathering, Analysis and
Retrieval (“EDGAR”) system, the Company and/or the Guarantor shall notify the Trustee in the manner
prescribed herein of each such annual and quarterly filing. The Trustee is hereby authorized and
directed to access the EDGAR system for purposes of retrieving the financial information so filed.
Compliance with the foregoing shall constitute delivery by the Company and/or the Guarantor of its
financial statements to the Trustee in compliance with the provisions of Section 314(a) of the
Trust Indenture Act, if applicable. The Trustee shall have no duty to search for or obtain any
electronic or other filings that the Company or the Guarantor makes with the Commission, regardless
of whether such filings are periodic, supplemental or otherwise. Delivery of reports, information
and documents to the Trustee pursuant to this Section 7.3(c) shall be solely for purposes
of compliance with this Section 7.3(c) and, if applicable, with Section 314(a) of the Trust
Indenture Act, but shall not relieve the Company or the Guarantor of the requirement to deliver the
certificate referred to in Section 7.3(b). The Trustee’s receipt of such reports,
information and documents shall not constitute notice to it of the content thereof or any matter
determinable from the content thereof, including the Company’s and/or the Guarantor’s compliance
with any of its covenants hereunder, as to which the Trustee is entitled to rely upon Officers’
Certificates.

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ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     Section 8.1 Company and Guarantor May Consolidate, Etc., Only on Certain Terms.

     (a) The Company shall not consolidate with or merge into any other Person or convey, transfer
or lease its properties and assets substantially as an entirety to any Person, and no Person shall
consolidate with or merge into the Company or convey, transfer or lease its properties and assets
substantially as an entirety to the Company, unless:

     (i) if the Company shall consolidate with or merge into another Person or convey,
transfer or lease its properties and assets substantially as an entirety to any Person, the
entity formed by such consolidation or into which the Company is merged or the Person that
acquires by conveyance or transfer, or that leases, the properties and assets of the
Company substantially as an entirety shall be an entity organized and existing under the
laws of the United States of America or any State or Territory thereof or the District of
Columbia and shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form reasonably satisfactory to the Trustee, the due and
punctual payment of the principal of and any premium and interest (including any Additional
Interest) on all the Securities and the performance of every covenant of this Indenture on
the part of the Company to be performed or observed;

     (ii) immediately after giving effect to such transaction, no Event of Default, and no
event that, after notice or lapse of time, or both, would constitute an Event of Default,
shall have happened and be continuing; and

     (iii) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease
and, if a supplemental indenture is required in connection with such transaction, any such
supplemental indenture, comply with this Article VIII and that all conditions
precedent herein provided for relating to such transaction have been complied with; and the
Trustee may rely upon such Officers’ Certificate and Opinion of Counsel as conclusive
evidence that such transaction complies with this Section 8.1 (a).

     (b) The Guarantor shall not consolidate with or merge into any other Person or convey,
transfer or lease its properties and assets substantially as an entirety to any Person, and no
Person shall consolidate with or merge into the Guarantor or convey, transfer or lease its
properties and assets substantially as an entirety to the Guarantor, unless:

     (i) if the Guarantor shall consolidate with or merge into another Person or convey,
transfer or lease its properties and assets substantially as an entirety to any Person, the
entity formed by such consolidation or into which the Guarantor is merged or the Person
that acquires by conveyance or transfer, or that leases, the properties and assets of the
Guarantor substantially as an entirety shall be an entity organized and existing under the
laws of the United States of America or any State or Territory thereof or the District of
Columbia and shall expressly assume, by an indenture supplemental

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hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the
Trustee, the due and punctual payment of the principal of and any premium and interest
(including any Additional Interest) on all the Securities and the performance of every
covenant of this Indenture on the part of the Guarantor to be performed or observed;

     (ii) immediately after giving effect to such transaction, no Event of Default, and no
event that, after notice or lapse of time, or both, would constitute an Event of Default,
shall have happened and be continuing; and

     (iii) the Guarantor has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or
lease and, if a supplemental indenture is required in connection with such transaction, any
such supplemental indenture, comply with this Article VIII and that all conditions
precedent herein provided for relating to such transaction have been complied with; and the
Trustee may rely upon such Officers’ Certificate and Opinion of Counsel as conclusive
evidence that such transaction complies with this
Section 8.1(b).

     Section 8.2 Successor Company or Guarantor Substituted.

     (a) Upon any consolidation or merger by the Company or the Guarantor with or into any other
Person, or any conveyance, transfer or lease by the Company or the Guarantor of its respective
properties and assets substantially as an entirety to any Person in accordance with Section
8.1 and the execution and delivery to the Trustee of any supplemental indenture described in
Section 8.1, the successor entity formed by such consolidation or into which the Company or
the Guarantor is merged or to which such conveyance, transfer or lease is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company or the Guarantor, as
the case may be, under this Indenture with the same effect as if such successor Person had been
named as the Company or the Guarantor herein; and in the event of any such conveyance or transfer,
following the execution and delivery of such supplemental indenture, the Company or the Guarantor
shall be discharged from all obligations and covenants under the Indenture and the Securities.

     (b) Such successor Person to the Company may cause to be executed, and may issue either in its
own name or in the name of the Company, any or all of the Securities issuable hereunder that
theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the
order of such successor Person instead of the Company and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities that previously shall have been signed and delivered by the officers of the Company to
the Trustee for authentication, and any Securities that such successor Person thereafter shall
cause to be executed and delivered to the Trustee on its behalf. All the Securities so issued shall
in all respects have the same legal rank and benefit under this Indenture as the Securities
theretofore or thereafter issued in accordance with the terms of this Indenture.

     (c) In case of any such consolidation, merger, sale, conveyance or lease, such changes in
phraseology and form may be made in the Securities thereafter to be issued as may be appropriate to
reflect such occurrence.

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ARTICLE IX

SUPPLEMENTAL INDENTURES

     Section 9.1 Supplemental Indentures without Consent of Holders.

     Without the consent of any Holders, the Company and the Guarantor, when authorized by a Board
Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form reasonably satisfactory to the Trustee, for any of the
following purposes:

     (a) to evidence the succession of another Person to the Company or the Guarantor, and the
assumption by any such successor of the covenants of the Company or the Guarantor herein and in the
Securities; or

     (b) to evidence and provide for the acceptance of appointment hereunder by a successor
trustee; or

     (c) to cure any ambiguity, to correct or supplement any provision herein that may be defective
or inconsistent with any other provision herein, or to make or amend any other provisions with
respect to matters or questions arising under this Indenture, which shall not be inconsistent with
the other provisions of this Indenture; provided, that such action pursuant to this clause
(c) shall not be effected unless the Company and/or the Guarantor has delivered a written notice of
such amendment to the Holders at least twenty (20) days prior to the effective date of such
amendment; provided, further, that such action pursuant to this clause (c) shall
not adversely affect in any material respect the interests of any Holders or the holders of the
Preferred Securities; or

     (d) to comply with the rules and regulations of any securities exchange or automated quotation
system on which any of the Securities may be listed, traded or quoted; or

     (e) to add to the covenants, restrictions or obligations of the Company or the Guarantor or to
add to the Events of Default; provided, that such action pursuant to this clause (e) shall
not adversely affect in any material respect the interests of any Holders or the holders of the
Preferred Securities; or

     (f) to modify, eliminate or add to any provisions of the Indenture or the Securities to such
extent as shall be necessary to ensure that the Securities are treated as indebtedness of the
Company for United States federal income tax purposes; provided, that such action pursuant
to this clause (f) shall not adversely affect in any material respect the interests of any Holders
or the holders of the Preferred Securities.

     Section 9.2 Supplemental Indentures with Consent of Holders.

     (a) Subject to Section 9.1, with the consent of the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities, by Act of said Holders
delivered to the Company, the Guarantor and the Trustee, the Company and the Guarantor, when
authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental

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hereto for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of
Securities under this Indenture; provided, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Security:

     (i) change the Stated Maturity of the principal or any premium of any Security or
change the date of payment of any installment of interest (including any Additional
Interest) on any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof or change the place of payment
where, or the coin or currency in which, any Security or interest thereon is payable, or
restrict or impair the right to institute suit for the enforcement of any such payment on
or after such date; or

     (ii) reduce the percentage in aggregate principal amount of the Outstanding
Securities, the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver of compliance with any provision
of this Indenture or of defaults hereunder and their consequences provided for in this
Indenture; or

     (iii) modify any of the provisions of this Section 9.2, Section 5.13
or Section 10.7, except to increase any percentage in aggregate principal amount of
the Outstanding Securities, the consent of whose Holders is required for any reason, or to
provide that certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Security;

provided, further, that, so long as any Preferred Securities remain outstanding, no
amendment under this Section 9.2 shall be effective until the holders of a majority in
Liquidation Amount of the Preferred Securities then outstanding shall have consented to such
amendment; and provided, further, that if the consent of the Holder of each
Outstanding Security is required for any amendment under this Indenture, such amendment shall not
be effective until the holder of each Preferred Security then outstanding shall have consented to
such amendment.

     (b) It shall not be necessary for any Act of Holders under this Section 9.2 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such Act shall approve the substance thereof.

     Section 9.3 Execution of Supplemental Indentures.

     In executing or accepting the additional trusts created by any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and shall be fully protected in conclusively
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture, and that all conditions
precedent herein provided for relating to such action have been complied with. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture that affects the
Trustee’s own rights, duties, indemnities or immunities under this Indenture or otherwise. Copies
of the final form of each supplemental indenture shall be delivered by the Trustee at the expense
of the

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Company to each Holder, and, if the Trustee is the Property Trustee, to each holder of Preferred
Securities, promptly after the execution thereof.

     Section 9.4 Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article IX, this
Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a
part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.

     Section 9.5 Reference in Securities to Supplemental Indentures.

     Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and shall if required by the Company, bear a notation in
form approved by the Company as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities so modified as to conform, in the opinion of the
Company, to any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities.

ARTICLE X

COVENANTS

     Section 10.1 Payment of Principal, Premium, if any,
and Interest.

     The Company covenants and agrees for the benefit of the Holders of the Securities that it
will duly and punctually pay the principal of and any premium and interest (including any
Additional Interest) on the Securities in accordance with the terms of the Securities and this
Indenture.

     Section 10.2 Money for Security Payments to be Held in Trust.

     (a) If the Company shall at any time act as its own Paying Agent with respect to the
Securities, it will, on or before each due date of the principal of and any premium or interest
(including any Additional Interest) on the Securities, segregate and hold in trust for the benefit
of the Persons entitled thereto a sum sufficient to pay the principal and any premium or interest
(including Additional Interest) so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided, and will promptly notify the Trustee in writing of its
failure so to act.

     (b) Whenever the Company shall have one or more Paying Agents, it will, prior to 10:00 A.M.,
New York City time, on each due date of the principal of and any premium or interest (including any
Additional Interest) on any Securities, deposit with a Paying Agent a sum sufficient to pay such
amount, such sum to be held as provided in the Trust Indenture Act and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of its failure so to act.

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     (c) The Company will cause each Paying Agent for the Securities other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section 10.2, that such Paying Agent will (i)
comply with the provisions of this Indenture and the Trust Indenture Act applicable to it as a
Paying Agent and (ii) during the continuance of any default by the Company (or any other obligor
upon the Securities) in the making of any payment in respect of the Securities, upon the written
request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent
for payment in respect of the Securities.

     (d) The Company may at any time, for the purpose of obtaining the satisfaction and discharge
of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to
pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be
held by the Trustee upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent
shall be released from all further liability with respect to such money.

     (e) Any money deposited with the Trustee or any Paying Agent, or then held by the Company in
trust for the payment of the principal of and any premium or interest (including any Additional
Interest) on any Security and remaining unclaimed for two (2) years after such principal and any
premium or interest has become due and payable shall (unless otherwise required by mandatory
provision of applicable escheat or abandoned or unclaimed property law) be paid on Company Request
to the Company, or (if then held by the Company) shall (unless otherwise required by mandatory
provision of applicable escheat or abandoned or unclaimed property law) be discharged from such
trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look
only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, that the Trustee or such Paying Agent, before being required to make any
such repayment, may at the expense of the Company cause to be published once, in a newspaper
published in the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than thirty (30) days
from the date of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

     Section 10.3 Statement as to Compliance.

     The Company and the Guarantor shall deliver to the Trustee, within one hundred twenty (120)
days after the end of each fiscal year of the Company and the Guarantor ending after the date
hereof, an Officers’ Certificate (substantially in the form attached hereto as Exhibit B) covering
the preceding calendar year, stating whether or not to the knowledge of the signers thereof the
Company or the Guarantor is in default in the performance or observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of grace or requirement
of notice provided hereunder), and if the Company or the Guarantor shall be in default, specifying
all such defaults and the nature and status thereof of which they may have knowledge. The delivery
requirements of this Section 10.3 may be satisfied by compliance with Section 8.16(a) of
the Trust Agreement.

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     Section 10.4 Calculation Agent.

     (a) The Company hereby agrees that for so long as any of the Securities remain Outstanding,
there will at all times be an agent appointed to calculate LIBOR in respect of each Interest
Payment Date in accordance with the terms of Schedule A (the “Calculation Agent”). The
Company has initially appointed the Property Trustee as Calculation Agent for purposes of
determining LIBOR for each Interest Payment Date. The Calculation Agent may be removed by the
Company at any time. Notwithstanding the foregoing, so long as the Property Trustee holds any of
the Securities, the Calculation Agent shall be the Property Trustee. If the Calculation Agent is
unable or unwilling to act as such or is removed by the Company, the Company will promptly appoint
as a replacement Calculation Agent the London office of a leading bank which is engaged in
transactions in three (3) month Eurodollar deposits in the international Eurodollar market and
which does not control or is not controlled by or under common control with the Company or its
Affiliates. The Calculation Agent may not resign its duties without a successor having been duly
appointed.

     (b) The Calculation Agent shall be required to agree that, as soon as possible after 11:00
A.M. (London time) on each LIBOR Determination Date (as defined in Schedule A), but in no
event later than 11:00 A.M. (London time) on the Business Day immediately following each LIBOR
Determination Date, the Calculation Agent will calculate the interest rate (the interest payment
shall be rounded to the nearest cent, with half a cent being rounded upwards) for the related
Interest Payment Date, and will communicate such rate and amount to the Company, the Trustee, the
Property Trustee (if the Property Trustee is not the Calculation Agent), each Paying Agent and the
Depositary. The Calculation Agent will also specify to the Company the quotations upon which the
foregoing rates and amounts are based and, in any event, the Calculation Agent shall notify the
Company before 5:00 P.M. (London time) on each LIBOR Determination Date that either: (i) it has
determined or is in the process of determining the foregoing rates and amounts or (ii) it has not
determined and is not in the process of determining the foregoing rates and amounts, together with
its reasons therefor. The Calculation Agent’s determination of the foregoing rates and amounts for
any Interest Payment Date will (in the absence of manifest error) be final and binding upon all
parties. For the sole purpose of calculating the interest rate for
the Securities, “Business Day”
shall be defined as any day on which dealings in deposits in Dollars are transacted in the London
interbank market.

     Section 10.5
Additional Tax Sums.

     So long as no Event of Default has occurred and is continuing, if (a) the Trust is the Holder
of all of the Outstanding Securities and (b) a Tax Event described in clause (i) or (iii) in the
definition of Tax Event specified in Section 1.1 has occurred and is continuing, the
Company shall pay to the Trust (and its permitted successors or assigns under the Trust Agreement)
for so long as the Trust (or its permitted successor or assignee) is the registered holder of the
Outstanding Securities, such amounts as may be necessary in order that the amount of Distributions
(including any Additional Interest Amount (as defined in the Trust Agreement)) then due and payable
by the Trust on the Preferred Securities and Common Securities that at any time remain outstanding
in accordance with the terms thereof shall not be reduced as a result of any Additional Taxes
arising from such Tax Event (additional such amounts payable by the Company to the Trust, the
“Additional Tax Sums”). Whenever in this Indenture or the Securities

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there is a reference in any context to the payment of principal of, premium, if any, or interest
on the Securities, such mention shall be deemed to include mention of the payments of the
Additional Tax Sums provided for in this Section 10.5 to the extent that, in such context,
Additional Tax Sums are, were or would be payable in respect thereof pursuant to the provisions of
this Section 10.5 and express mention of the payment of Additional Tax Sums (if
applicable) in any provisions hereof shall not be construed as excluding Additional Tax Sums in
those provisions hereof where such express mention is not made; provided, that the
deferral of the payment of interest pursuant to Section 3.9 on the Securities shall not
defer the payment of any Additional Tax Sums that may be due and payable.

     Section 10.6 Additional Covenants.

     (a) The Company covenants and agrees with each Holder of Securities that if an Event of
Default shall have occurred and be continuing or the Company shall have given notice of its
election to begin an Extension Period with respect to the Securities and shall not have rescinded
such notice, or such Extension Period, or any extension thereof, shall be continuing, then the
Company shall not (i) declare or pay any dividends or distributions on, or redeem, purchase,
acquire or make a liquidation payment with respect to, any Equity Interests of the Company, (ii)
vote in favor of or permit or otherwise allow any of its Subsidiaries to declare or pay any
dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with
respect to or otherwise retire, any preferred Equity Interests of such Subsidiaries or other Equity
Interests entitling the holders thereof to a stated rate of return (for the avoidance of doubt,
whether such preferred Equity Interests are perpetual or otherwise), or (iii) make any payment of
principal of or any 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
Securities (other than (A) repurchases, redemptions or other acquisitions of Equity Interests of
the Company in connection with any employment contract, benefit plan or other similar arrangement
with or for the benefit of any one or more employees, officers, directors or consultants, in
connection with a dividend reinvestment or Equity Interest purchase plan or in connection with the
issuance of Equity Interests in the Company (or securities convertible into or exercisable for such
Equity Interests) as consideration in an acquisition transaction entered into prior to the
applicable Event of Default or Extension Period, (B) as a result of an exchange, conversion,
reclassification or combination of any class or series of the Company’s Equity Interests (or any
Equity Interests in a Subsidiary of the Company) for any class or series of the Company’s Equity
Interests or of any class or series of the Company’s indebtedness for any class or series of the
Company’s Equity Interests, (C) the purchase of fractional interests in the Equity Interests of the
Company pursuant to the conversion or exchange provisions of such Equity Interests or the security
being converted or exchanged, (D) any declaration of a dividend in connection with any Rights Plan,
the issuance of rights, Equity Interests or other property under any Rights Plan or the redemption
or repurchase of rights pursuant thereto or (E) any dividend in the form of Equity Interests,
warrants, options or other rights where the dividend interest or the interest issuable upon
exercise of such warrants, options or other rights is the same interest as that on which the
dividend is being paid or ranks pari passu with or junior to such interest).

     (b) The Guarantor agrees with each holder of Securities that, if an Event of Default shall
have occurred and be continuing or the Company shall have given notice of its election to begin an
Extension Period with respect to the Securities and shall not have rescinded such notice,

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or such Extension Period, or any extension thereof, shall be continuing, then the Guarantor shall
not and shall not permit the Company to (i) declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment with respect to, any of its respective
Equity Interests, (ii) vote in favor of or permit or otherwise allow any of its Subsidiaries to
declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to or otherwise retire, any preferred Equity Interests of such
Subsidiaries or other Equity Interests entitling the holders thereof to a stated rate of return
(for the avoidance of doubt, whether such preferred Equity Interests are perpetual or otherwise),
or (iii) make any payment or principal of or any interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Company or the Guarantor that rank pari passu in
all respects with or junior in interest to the Securities (other than (A) repurchases, redemptions
or other acquisitions of Equity Interests of the Company or the Guarantor by either the Company or
the Guarantor in connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of any one or more employees, officers, directors or
consultants, in connection with a dividend reinvestment or Equity Interests purchase plan or in
connection with the issuance of Equity Interests of the Company or the Guarantor (or securities
convertible into or exercisable for such Equity Interests) as consideration in an acquisition
transaction entered into prior to the occurrence of the applicable Event of Default or Extension
Period, (B) as a result of an exchange or conversion of any class or series of the Company’s or
the Guarantor’s Equity Interests (or any Equity Interests in a Subsidiary of either the Company or
the Guarantor) for any class or series of the Company’s or the Guarantor’s indebtedness for any
class or series of the Company’s or the Guarantor’s Equity Interests, (C) the purchase of
fractional interests in the Company’s or the Guarantor’s Equity Interests pursuant to the
conversion or exchange provisions of such Equity Interests or the security being converted or
exchanged, (D) any declaration of a dividend in connection with any rights plan, the issuance of
rights, Equity Interests or other property under any rights plan or the redemption or repurchase
of rights pursuant thereto or (E) any dividend in the form of Equity Interests, warrants, options
or other rights where the dividend interest or the interest issuable upon exercise of such
warrants, options or other rights is the same interest as that on which the dividend is being paid
or ranks pari passu with or junior to such interest).

     (c) The Company also covenants with each Holder of Securities (i) to hold, directly or
indirectly, one hundred percent (100%) of the Common Securities of the Trust; provided,
that any permitted successor of the Company hereunder may succeed to the Company’s ownership of
such Common Securities, (ii) as holder of such Common Securities, not to voluntarily dissolve,
wind-up or liquidate the Trust other than (A) in connection with a distribution of the Securities
to the holders of the Preferred Securities in liquidation of the Trust or (B) in connection with
certain mergers, consolidations or amalgamations permitted by the Trust Agreement and (iii) to use
its reasonable commercial efforts, consistent with the terms and provisions of the Trust Agreement,
to cause the Trust to continue to be taxable as a grantor trust and not as a corporation for United
States federal income tax purposes.

     (d) The Guarantor also agrees to use commercially reasonable efforts to meet the requirements
to qualify, effective for the fiscal year ending December 31, 2006 and all future fiscal years, as
a real estate investment trust under the Code.

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     Section 10.7 Waiver of Covenants.

     The Company may omit in any particular instance to comply with any covenant or condition
contained in Section 10.6 if, before or after the time for such compliance, the Holders of
at least a majority in aggregate principal amount of the Outstanding Securities shall, by Act of
such Holders, and at least a majority of the aggregate Liquidation Amount of the Preferred
Securities then outstanding, by consent of such holders, either waive such compliance in such
instance or generally waive compliance with such covenant or condition, but no such waiver shall
extend to or affect such covenant or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company in respect of any such
covenant or condition shall remain in full force and effect.

     Section 10.8 Treatment of Securities.

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

     Section 10.9 Limitation on Issuance of Securities.

     Each of the Company and the Guarantor covenants and agrees with each Holder of Securities that
neither the Company nor the Guarantor will, until one hundred eighty (180) days following the date
of this Indenture, offer, sell, contract to sell, grant any option to purchase or otherwise dispose
of, directly or indirectly, (i) any Securities or (ii) any securities convertible into, or
exercisable or exchangeable for, any Securities.

ARTICLE XI

REDEMPTION OF SECURITIES

     Section 11.1 Optional Redemption.

     The Company may, at its option, on any Interest Payment Date, on or after April 30, 2011,
redeem the Securities in whole at any time or in part from time to time, at a Redemption Price
equal to one hundred percent (100%) of the principal amount thereof (or of the redeemed portion
thereof, as applicable), together, in the case of any such redemption, with accrued and unpaid
interest, including any Additional Interest, to but excluding the date fixed as the Redemption
Date (the “Optional Redemption Price”).

     Section 11.2 Special Event Redemption.

     Prior to April 30, 2011, upon the occurrence and during the continuation of a Special Event,
the Company may, at its option, redeem the Securities, in whole but not in part, at a Redemption
Price equal to one hundred percent (100.0%) of the principal amount thereof,

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together, in the case of any such redemption, with accrued and unpaid interest, including any
Additional Interest, to but excluding the date fixed as the
Redemption Date (the “Special
Redemption Price”).

     Section 11.3 Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities, in whole or in part, shall be evidenced
by or pursuant to a Board Resolution. In case of any redemption at the election of the Company, the
Company shall, not less than forty-five (45) days and not more than seventy-five (75) days prior to
the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee and the Property Trustee under the Trust Agreement in writing of such date and of the
principal amount of the Securities to be redeemed and provide the additional information required
to be included in the notice or notices contemplated by Section 11.5. In the case of any
redemption of Securities, in whole or in part, (a) prior to the expiration of any restriction on
such redemption provided in this Indenture or the Securities or (b) pursuant to an election of the
Company which is subject to a condition specified in this Indenture or the Securities, the Company
shall furnish the Trustee with an Officers’ Certificate and an Opinion of Counsel evidencing
compliance with such restriction or condition.

     Section 11.4
Selection of Securities to be Redeemed.

     (a) If less than all the Securities are to be redeemed, the particular Securities to be
redeemed shall be selected and redeemed on a pro rata basis not more than sixty (60) days prior to
the Redemption Date by the Trustee from the Outstanding Securities not previously called for
redemption; provided, that the unredeemed portion of the principal amount of any Security
shall be in an authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.

     (b) The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed. For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Securities shall relate, in the case of any Security
redeemed or to be redeemed only in part, to the portion of the principal amount of such Security
that has been or is to be redeemed.

     (c) The provisions of paragraphs (a) and (b) of this Section 11.4 shall not apply with
respect to any redemption affecting only a single Security, whether such Security is to be redeemed
in whole or in part. In the case of any such redemption in part, the unredeemed portion of the
principal amount of the Security shall be in an authorized denomination (which shall not be less
than the minimum authorized denomination) for such Security.

     Section 11.5 Notice of Redemption.

     (a) Notice of redemption shall be given not later than the thirtieth (30th) day, and not
earlier than the sixtieth (60th) day, prior to the Redemption Date to each Holder of Securities to
be redeemed, in whole or in part (unless a shorter notice shall be satisfactory to the Property
Trustee under the Trust Agreement).

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     (b) With respect to Securities to be redeemed, in whole or in part, each notice of redemption
shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price or, if the Redemption Price cannot be calculated prior to
the time the notice is required to be sent, the estimate of the Redemption Price, as
calculated by the Company, together with a statement that it is an estimate and that the
actual Redemption Price will be calculated on the fifth Business Day prior to the
Redemption Date (and if an estimate is provided, a further notice shall be sent of the
actual Redemption Price on the date that such Redemption Price is calculated);

     (iii) if less than all Outstanding Securities are to be redeemed, the identification
(and, in the case of partial redemption, the respective principal amounts) of the amount of
and particular Securities to be redeemed;

     (iv) that on the Redemption Date, the Redemption Price will become due and payable
upon each such Security or portion thereof, and that any interest (including any Additional
Interest) on such Security or such portion, as the case may be, shall cease to accrue on
and after said date; and

     (v) the place or places where such Securities are to be surrendered for payment of the
Redemption Price.

     (c) Notice of redemption of Securities to be redeemed, in whole or in part, at the election of
the Company shall be given by the Company or, at the Company’s request, by the Trustee in the name
and at the expense of the Company and shall be irrevocable. The notice if mailed in the manner
provided above shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. In any case, a failure to give such notice by mail or any defect in the
notice to the Holder of any Security designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Security:

     Section 11.6 Deposit of Redemption Price.

     Prior to 10:00 A.M., New York City time, on the Redemption Date specified in the notice of
redemption given as provided in Section 11.5, the Company will deposit with the Trustee or
with one or more Paying Agents (or if the Company is acting as its own Paying Agent, the Company
will segregate and hold in trust as provided in Section 10.2) an amount of money
sufficient to pay the Redemption Price of, and any accrued interest (including any Additional
Interest) on, all the Securities (or portions thereof) that are to be redeemed on that date.

     Section 11.7 Payment of Securities Called for Redemption.

     (a) If any notice of redemption has been given as provided in Section 11.5, the
Securities or portion of Securities with respect to which such notice has been given shall become
due and payable on the date and at the place or places stated in such notice at the applicable
Redemption Price. On presentation and surrender of such Securities at a Place of Payment

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specified in such notice, the Securities or the specified portions thereof shall be paid and
redeemed by the Company at the applicable Redemption Price.

     (b) Upon presentation of any Security redeemed in part only, the Company shall execute and the
Trustee shall authenticate and deliver to the Holder thereof, at the expense of the Company, a new
Security or Securities, of authorized denominations, in aggregate principal amount equal to the
unredeemed portion of the Security so presented and having the same Original Issue Date, Stated
Maturity and terms.

     (c) If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal of and any premium on such Security shall, until paid, bear interest from
and including the Redemption Date at the rate prescribed therefor in the Security.

ARTICLE XII

SUBORDINATION OF SECURITIES

     Section 12.1 Securities Subordinate to Senior Debt.

     The Company covenants and agrees, and each Holder of a Security, by its acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this
Article XII, the payment of the principal of and any premium and interest (including any
Additional Interest) on each and all of the Securities is hereby expressly made subordinate and
subject in right of payment to the prior payment in full of all Senior Debt of the Company.

     Section 12.2 No Payment When Senior Debt of the Company in Default; Payment Over of
Proceeds Upon Dissolution, Etc.

     (a) In the event and during the continuation of any default by the Company in the payment of
any principal of premium, if any, or interest on any Senior Debt of the Company (following any
grace period, if applicable) when the same becomes due and payable, whether at maturity or at a
date fixed for prepayment or by declaration of acceleration or otherwise, then, upon written notice
of such default to the Company by the holders of such Senior Debt of the Company or any trustee
therefor, unless and until such default shall have been cured or waived or shall have ceased to
exist, no direct or indirect payment (in cash, property, securities, by set-off or otherwise)
shall be made or agreed to be made on account of the principal of or any premium or interest
(including any Additional Interest) on any of the Securities, or in respect of any redemption,
repayment, retirement, purchase or other acquisition of any of the Securities.

     (b) In the event of a bankruptcy, insolvency or other proceeding described in clause (d) or
(e) of the definition of Event of Default specified in Section 5.1 (each such event, if
any, herein sometimes referred to as a“Proceeding”),all Senior Debt of the Company (including any
interest thereon accruing after the commencement of any such proceedings) shall first be paid in
full before any payment or distribution, whether in cash, securities or other property, shall be
made to any Holder of any of the Securities on account thereof. Any payment or distribution,
whether in cash, securities or other property (other than securities of the Company or any other
entity provided for by a plan of reorganization or readjustment the payment of which is
subordinate, at least to the extent provided in these subordination provisions with respect to the

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indebtedness evidenced by the Securities, to the payment of all Senior Debt of the Company at the
time outstanding and to any securities issued in respect thereof under any such plan of
reorganization or readjustment), which would otherwise (but for these subordination provisions) be
payable or deliverable in respect of the Securities shall be paid or delivered directly to the
holders of Senior Debt of the Company in accordance with the priorities then existing among such
holders until all Senior Debt of the Company (including any interest thereon accruing after the
commencement of any Proceeding) shall have been paid in full.

     (c) In the event of any Proceeding, after payment in full of all sums owing with respect to
Senior Debt of the Company, the Holders of the Securities, together with the holders of any
obligations of the Company ranking on a parity with the Securities, shall be entitled to be paid
from the remaining assets of the Company the amounts at the time due and owing on account of unpaid
principal of and any premium and interest (including any Additional Interest) on the Securities and
such other obligations before any payment or other distribution, whether in cash, property or
otherwise, shall be made on account of any Equity Interests or any obligations of the Company
ranking junior to the Securities and such other obligations. If, notwithstanding the foregoing, any
payment or distribution of any character or any security, whether in cash, securities or other
property (other than securities of the Company or any other entity provided for by a plan of
reorganization or readjustment the payment of which is subordinate, at least to the extent provided
in these subordination provisions with respect to the indebtedness evidenced by the Securities, to
the payment of all Senior Debt of the Company at the time outstanding and to any securities issued
in respect thereof under any such plan of reorganization or readjustment) shall be received by the
Trustee or any Holder in contravention of any of the terms hereof and before all Senior Debt of the
Company shall have been paid in full, such payment or distribution or security shall be received in
trust for the benefit of, and shall be paid over or delivered and transferred to, the holders of
the Senior Debt of the Company at the time outstanding in accordance with the priorities then
existing among such holders for application to the payment of all Senior Debt of the Company
remaining unpaid, to the extent necessary to pay all such Senior Debt of the Company (including any
interest thereon accruing after the commencement of any Proceeding) in full. In the event of the
failure of the Trustee or any Holder to endorse or assign any such payment, distribution or
security, each holder of Senior Debt of the Company is hereby irrevocably authorized to endorse or
assign the same.

     (d) The Trustee and the Holders, at the expense of the Company, shall take such reasonable
action (including the delivery of this Indenture to an agent for any holders of Senior Debt of the
Company or consent to the filing of a financing statement with respect hereto) as may, in the
opinion of counsel designated by the holders of a majority in principal amount of the Senior Debt
of the Company at the time outstanding, be necessary or appropriate to assure the effectiveness of
the subordination effected by these provisions.

     (e) The provisions of this Section 12.2 shall not impair any rights, interests,
remedies or powers of any secured creditor of the Company in respect of any security interest the
creation of which is not prohibited by the provisions of this Indenture.

     (f) The securing of any obligations of the Company, otherwise ranking on a parity with the
Securities or ranking junior to the Securities, shall not be deemed to prevent such

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obligations from constituting, respectively, obligations ranking on a parity with the Securities
or ranking junior to the Securities.

     Section 12.3 Payment Permitted if No Default.

     Nothing contained in this Article XII or elsewhere in this Indenture or in any of the
Securities shall prevent (a) the Company, at any time, except during the pendency of the
conditions described in paragraph (a) of Section 12.2 or of any Proceeding referred to in
Section 12.2, from making payments at any time of principal of, premium, if any, or
interest (including any Additional Interest) on the Securities or (b) the application by the
Trustee of any moneys deposited with it hereunder to the payment of or on account of the principal
of, premium, if any, or interest (including any Additional Interest) on the Securities or the
retention of such payment by the Holders, if, at the time of such application by the Trustee, it
did not have knowledge (in accordance with Section 12.8) that such payment would have been
prohibited by the provisions of this Article XII, except as provided in Section
12.8.

     Section 12.4 Subrogation to Rights of Holders of Senior Debt of the Company.

     Subject to the payment in full of all amounts due or to become due on all Senior Debt of the
Company, or the provision for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Debt of the Company, the Holders of the Securities shall be
subrogated to the extent of the payments or distributions made to the holders of such Senior Debt
of the Company pursuant to the provisions of this Article XII (equally and ratably with the
holders of all indebtedness of the Company that by its express terms is subordinated to Senior Debt
of the Company to substantially the same extent as the Securities are subordinated to the Senior
Debt of the Company and is entitled to like rights of subrogation by reason of any payments or
distributions made to holders of such Senior Debt of the Company) to the rights of the holders of
such Senior Debt of the Company to receive payments and distributions of cash, property and
securities applicable to the Senior Debt of the Company until the principal of and any premium and
interest (including any Additional Interest) on the Securities shall be paid in full. For purposes
of such subrogation, no payments or distributions to the holders of the Senior Debt of the Company
of any cash, property or securities to which the Holders of the Securities or the Trustee would be
entitled except for the provisions of this Article XII, and no payments made pursuant to
the provisions of this Article XII to the holders of Senior Debt of the Company by Holders
of the Securities or the Trustee, shall, as among the Company, its creditors other than holders of
Senior Debt of the Company, and the Holders of the Securities, be deemed to be a payment or
distribution by the Company to or on account of the Senior Debt of the Company.

     Section 12.5 Provisions Solely to Define Relative Rights.

     The provisions of this Article XII are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities on the one hand and the holders of
Senior Debt of the Company on the other hand. Nothing contained in this Article XII or
elsewhere in this Indenture or in the Securities is intended to or shall (a) impair, as between
the Company and the Holders of the Securities, the obligations of the Company, which are absolute
and unconditional, to pay to the Holders of the Securities the principal of and any premium and
interest (including any Additional Interest) on the Securities as and when the same shall become
due and payable in

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accordance with their terms, (b) affect the relative rights against the Company of the Holders of
the Securities and creditors of the Company other than their rights in relation to the holders of
Senior Debt of the Company or (c) prevent the Trustee or the Holder of any Security (or to the
extent expressly provided herein, the holder of any Preferred Security) from exercising all
remedies otherwise permitted by applicable law upon default under this Indenture, including filing
and voting claims in any Proceeding, subject to the rights, if any, under this Article XII
of the holders of Senior Debt of the Company to receive cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder.

     Section 12.6 Trustee to Effectuate Subordination.

     Each Holder of a Security by his, her or its acceptance thereof authorizes and directs the
Trustee on his, her or its behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination provided in this Article XII and appoints the
Trustee his, her or its attorney-in-fact for any and all such purposes.

     Section 12.7 No Waiver of Subordination Provisions.

     (a) No right of any present or future holder of any Senior Debt 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 be otherwise
charged with.

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

     Section 12.8 Notice to Trustee.

     (a) The Company shall give prompt written notice to a Responsible Officer of the Trustee of
any fact known to the Company that would prohibit the making of any payment to or by the Trustee in
respect of the Securities. Notwithstanding the provisions of this Article XII or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment to or by the Trustee in respect of the
Securities, unless and until a Responsible Officer of the Trustee shall have

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received written notice thereof from the Company or a holder of Senior Debt of the Company
or from any trustee, agent or representative therefor; provided, that if the Trustee shall
not have received the notice provided for in this Section 12.8 at least two Business Days
prior to the date upon which by the terms hereof any monies may become payable for any purpose
(including, the payment of the principal of and any premium on or interest (including any
Additional Interest) on any Security), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such monies and to
apply the same to the purpose 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.

     (b) The Trustee shall be entitled to rely on the delivery to it of a written notice by a
Person representing himself, herself or itself to be a holder of Senior Debt of the Company (or a
trustee, agent, representative or attorney-in-fact therefor) to establish that such notice has
been given by a holder of Senior Debt of the Company (or a trustee, agent, representative or
attorney-in-fact therefor). 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 Senior Debt of the
Company to participate in any payment or distribution pursuant to this Article XII, the
Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Senior Debt of the Company 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 XII, 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 12.9 Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets of the Company referred to in this Article
XII, the Trustee and the Holders of the Securities shall be entitled to conclusively rely upon
any order or decree entered by any court of competent jurisdiction in which such Proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating trustee, custodian,
assignee for the benefit of creditors, agent or other Person making such payment or distribution,
delivered to the Trustee or to the Holders of Securities, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of the Senior Debt of
the Company 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 XII.

     Section 12.10 Trustee Not Fiduciary for Holders of Senior Debt.

     The Trustee, in its capacity as trustee under this Indenture, shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt of the Company and shall not be liable to any such
holders if it shall in good faith mistakenly pay over or distribute to Holders of Securities or to
the Company or to any other Person cash, property or securities to which any holders of Senior Debt
of the Company shall be entitled by virtue of this Article XII or otherwise.

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     Section 12.11 Rights of Trustee as Holder of Senior Debt of the Company; Preservation of
Trustee’s Rights.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article XII with respect to any Senior Debt of the Company that may at any time be held by
it, to the same extent as any other holder of Senior Debt of the Company, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder.

     Section 12.12 Article Applicable to Paving Agents.

     If at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article XII shall
in such case (unless the context otherwise requires) be construed as extending to and including
such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent
were named in this Article XII in addition to or in place of the Trustee;
provided, that Sections 12.8 and 12.11 shall not apply to the Company or
any Affiliate of the Company if the Company or such Affiliate acts as Paying Agent.

ARTICLE XIII

GUARANTEE

     Section 13.1 The Guarantee.

     The Guarantor hereby fully, unconditionally and irrevocably guarantees to each holder of a
Security authenticated and delivered by the Trustee the due and punctual payment of the principal
of and premium, if any, and interest (including Additional Amounts) on such Security, when and as
the same shall become due and payable, whether at maturity, by acceleration, upon redemption or
otherwise, in accordance with the terms of such Security and this Indenture, as well as the due
and punctual performance of all other obligations contained in the Securities and this Indenture.
In case of the failure of the Company to punctually pay its obligations on any Security, the
Guarantor hereby agrees to cause any such payment to be made punctually when and as the same shall
become due and payable, whether at maturity, by acceleration, upon redemption or otherwise, and as
if such payment were made by the Company.

     Section 13.2 Guarantee Unconditional, etc.

     The Guarantor hereby agrees that it shall be liable as principal and as debtor hereunder with
respect to its obligations under this Article. This Article creates a guarantee of payment and not
of collection on the part of the Guarantor. The Guarantor’s obligations hereunder shall be
absolute, irrevocable and unconditional, irrespective of, and shall be unaffected by, any
invalidity, irregularity or unenforceability of any Security or this Indenture, any failure to
enforce the provisions of any Security or this Indenture, or any waiver, modification, consent or
indulgence granted with respect thereto by the holder of such Security or the Trustee, the recovery
of any judgment against the Company or any action to enforce the same, or any other circumstances
which may otherwise constitute a legal or equitable discharge of a surety or guarantor. The
Guarantor hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of merger, insolvency or bankruptcy of the Company, any right

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to require a proceeding first against the Company, protest or notice with respect to any such
Security or the indebtedness evidenced thereby and all demands whatsoever, and covenants that this
Guarantee will not be discharged except by payment in full of the principal of and premium, if any,
and interest (including Additional Amounts) on the Securities and the complete performance of all
other obligations contained in the Securities and this Indenture. The Guarantor further agrees, to
the fullest extent that it lawfully may do so, that, as between the Guarantor, on the one hand, and
the Holders and the Trustee, on the other hand, the maturity of the Securities shall or may, as the
case may be, be accelerated as provided in this Indenture for purposes of the Guarantor’s
obligations under this Guarantee, notwithstanding any stay, injunction or prohibition existing
under any bankruptcy, insolvency, reorganization or other similar law of any jurisdiction
preventing such acceleration in respect of the obligations guaranteed hereby.

     Section 13.3 Reinstatement.

     This Guarantee shall continue to be effective or be reinstated, as the case may be, if at any
time a payment in respect of any Security, in whole or in part, is rescinded or must otherwise be
restored to the Company or the Guarantor upon the bankruptcy, liquidation or reorganization of the
Company or otherwise.

     Section 13.4 Subrogation.

     The Guarantor shall be subrogated to all rights of the holder of any Security against the
Company in respect of any amounts paid to such holder by the Guarantor pursuant to the provisions
of this Guarantee; provided, however, that the Guarantor shall not be entitled to enforce,
or to receive any payments arising out of or based upon, such right of subrogation as a result of
payment under this Guarantee, if, after giving effect to any such payment, any amounts are due and
unpaid under this Guarantee. If any amount shall be paid to the Guarantor in violation of the
preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay
such amount to the Holders.

ARTICLE XIV

SUBORDINATION OF GUARANTEE

     Section 14.1 Securities Subordinate to Senior Debt of the Guarantor.

     The Guarantor covenants and agrees, and each Holder of a Security, by its acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this
Article XIV, the payment of the principal of and any premium and interest (including any
Additional Interest) on each and all of the Securities is hereby expressly made subordinate and
subject in right of payment to the prior payment in full of all Senior Debt of the Guarantor.

     Section 14.2 No Payment When Senior Debt of the Guarantor in Default; Payment Over of
Proceeds Upon Dissolution, Etc.

     (a) In the event and during the continuation of any default by the Guarantor in the payment
of any principal of or any premium or interest on any Senior Debt of the Guarantor

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(following any grace period, if applicable) when the same becomes due and payable, whether
at maturity or at a date fixed for prepayment or by declaration of acceleration or otherwise,
then, upon written notice of such default to the Guarantor by the holders of such Senior Debt of
the Guarantor or any trustee therefor, unless and until such default shall have been cured or
waived or shall have ceased to exist, no direct or indirect payment (in cash, property,
securities, by set-off or otherwise) shall be made or agreed to be made on account of the
principal of or any premium or interest (including any Additional Interest) on any of the
Securities, or in respect of any redemption, repayment, retirement, purchase or other acquisition
of any of the Securities.

     (b) In the event of a Proceeding, all Senior Debt of the Guarantor (including any
interest thereon accruing after the commencement of any such proceedings) shall first be paid
in full before any payment or distribution, whether in cash, securities or other property, shall
be made to any Holder of any of the Securities on account thereof. Any payment or distribution,
whether in cash, securities or other property (other than securities of the Guarantor or any
other entity provided for by a plan of reorganization or readjustment the payment of which is
subordinate, at least to the extent provided in these subordination provisions with respect to
the indebtedness evidenced by the Securities, to the payment of all Senior Debt of the Guarantor
at the time outstanding and to any securities issued in respect thereof under any such plan of
reorganization or readjustment), which would otherwise (but for these subordination
provisions) be payable or deliverable in respect of the Securities shall be paid or delivered directly to
the holders of Senior Debt of the Guarantor in accordance with the priorities then existing among
such holders until all Senior Debt of the Guarantor (including any interest thereon accruing
after the commencement of any Proceeding) shall have been paid in full.

     (c) In the event of any Proceeding, after payment in full of all sums owing with
respect to Senior Debt of the Guarantor, the Holders of the Securities, together with the
holders of any obligations of the Guarantor ranking on a parity with the Securities, shall be entitled
to be paid from the remaining assets of the Guarantor the amounts at the time due and owing on
account of unpaid principal of and any premium and interest (including any Additional
Interest) on the Securities and such other obligations before any payment or other distribution, whether
in cash, property or otherwise, shall be made on account of any Equity Interests or any
obligations of the Guarantor ranking junior to the Securities and such other obligations. If,
notwithstanding the foregoing, any payment or distribution of any character or any security, whether in cash,
securities or other property (other than securities of the Guarantor or any other entity
provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least
to the extent provided in these subordination provisions with respect to the indebtedness
evidenced by the Securities, to the payment of all Senior Debt of the Guarantor at the time outstanding
and to any securities issued in respect thereof under any such plan of reorganization or
readjustment) shall be received by the Trustee or any Holder in contravention of any of the terms hereof and
before all Senior Debt of the Guarantor shall have been paid in full, such payment or
distribution or security shall be received in trust for the benefit of, and shall be paid over or delivered
and transferred to, the holders of the Senior Debt of the Guarantor at the time outstanding in
accordance with the priorities then existing among such holders for application to the payment
of all Senior Debt of the Guarantor remaining unpaid, to the extent necessary to pay all such
Senior Debt of the Guarantor (including any interest thereon accruing after the commencement of any
Proceeding) in full. In the event of the failure of the Trustee or any Holder to endorse or
assign

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any such payment, distribution or security, each holder of Senior Debt of the Guarantor is hereby
irrevocably authorized to endorse or assign the same.

     (d) The Trustee and the Holders, at the expense of the Guarantor, shall take such
reasonable action (including the delivery of this Indenture to an agent for any holders of
Senior Debt of the Guarantor or consent to the filing of a financing statement with respect hereto)
as may, in the opinion of counsel designated by the holders of a majority in principal amount of
the Senior Debt of the Guarantor at the time outstanding, be necessary or appropriate to assure
the effectiveness of the subordination effected by these provisions.

     (e) The provisions of this Section 14.2 shall not impair any rights, interests,
remedies or powers of any secured creditor of the Guarantor in respect of any security interest the
creation of which is not prohibited by the provisions of this Indenture.

     (f) The securing of any obligations of the Guarantor, otherwise ranking on a parity
with the Securities or ranking junior to the Securities, shall not be deemed to prevent such
obligations from constituting, respectively, obligations ranking on a parity with the
Securities or ranking junior to the Securities.

     Section 14.3 Payment Permitted if No Default.

     Nothing contained in this Article XIV or elsewhere in this Indenture or in any of the
Securities shall prevent (a) the Guarantor, at any time, except during the pendency of the
conditions described in paragraph (a) of  Section 14.2 or of any Proceeding referred to in
Section 14.2, from making payments at any time of principal of and any premium or interest
(including any Additional Interest) on the Securities or (b) the application by the Trustee of any
moneys deposited with it hereunder to the payment of or on account of the principal of and any
premium or interest (including any Additional Interest) on the Securities or the retention of such
payment by the Holders, if, at the time of such application by the Trustee, it did not have
knowledge (in accordance with Section 14.8) that such payment would have been prohibited
by the provisions of this Article XIV, except as provided in Section 14.8.

     Section 14.4 Subrogation to Rights of Holders of Senior Debt of the Guarantor.

     Subject to the payment in full of all amounts due or to become due on all Senior Debt of the
Guarantor, or the provision for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Debt of the Guarantor, the Holders of the Securities shall be
subrogated to the extent of the payments or distributions made to the holders of such Senior Debt
of the Guarantor pursuant to the provisions of this Article XIV (equally and ratably with
the holders of all indebtedness of the Guarantor that by its express terms is subordinated to
Senior Debt of the Guarantor to substantially the same extent as the Securities are subordinated to
the Senior Debt of the Guarantor and is entitled to like rights of subrogation by reason of any
payments or distributions made to holders of such Senior Debt of the Guarantor) to the rights of
the holders of such Senior Debt of the Guarantor to receive payments and distributions of cash,
property and securities applicable to the Senior Debt of the Guarantor until the principal of and
any premium and interest (including any Additional Interest) on the Securities shall be paid in
full. For purposes of such subrogation, no payments or distributions to the holders of the Senior

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Debt of the Guarantor of any cash, property or securities to which the Holders of the Securities
or the Trustee would be entitled except for the provisions of this Article XIV, and no
payments made pursuant to the provisions of this Article XIV to the holders of Senior Debt
of the Guarantor by Holders of the Securities or the Trustee, shall, as among the Guarantor, its
creditors other than holders of Senior Debt of the Guarantor, and the Holders of the Securities,
be deemed to be a payment or distribution by the Guarantor to or on account of the Senior Debt of
the Guarantor.

     Section 14.5 Provisions Solely to Define Relative Rights.

     The provisions of this Article XIV are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities on the one hand and the holders of
Senior Debt of the Guarantor on the other hand. Nothing contained in this Article XIV or
elsewhere in this Indenture or in the Securities is intended to or shall (a) impair, as between the
Guarantor and the Holders of the Securities, the obligations of the Guarantor, which are absolute
and unconditional, to pay to the Holders of the Securities the principal of and any premium and
interest (including any Additional Interest) on the Securities as and when the same shall become
due and payable in accordance with their terms, (b) affect the relative rights against the
Guarantor of the Holders of the Securities and creditors of the Guarantor other than their rights
in relation to the holders of Senior Debt of the Guarantor or (c) prevent the Trustee or the Holder
of any Security (or to the extent expressly provided herein, the holder of any Preferred Security)
from exercising all remedies otherwise permitted by applicable law upon default under this
Indenture, including filing and voting claims in any Proceeding, subject to the rights, if any,
under this Article XIV of the holders of Senior Debt of the Guarantor to receive cash,
property and securities otherwise payable or deliverable to the Trustee or such Holder.

     Section 14.6 Trustee to Effectuate Subordination.

     Each Holder of a Security by his, her or its acceptance thereof authorizes and directs the
Trustee on his, her or its behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination provided in this Article XIV and appoints the
Trustee his, her or its attorney-in-fact for any and all such purposes.

     Section 14.7 No Waiver of Subordination Provisions.

     (a) No right of any present or future holder of any Senior Debt of the Guarantor 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 Guarantor or by any act or failure to act, in
good faith, by any such holder, or by any noncompliance by the Guarantor with the terms, provisions
and covenants of this Indenture, regardless of any knowledge thereof that any such holder may
have or be otherwise charged with.

     (b) Without
in any way limiting the generality of paragraph (a) of this Section 14.7,
the holders of Senior Debt of the Guarantor may, at any time and from to time, without the
consent of or notice to the Trustee or the Holders of the Securities, without incurring
responsibility to such Holders of the Securities and without impairing or releasing the

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subordination provided in this Article XIV or the obligations hereunder of such Holders of
the Securities to the holders of Senior Debt of the Guarantor, do any one or more of the
following:

     (i) change the manner, place or terms of payment or extend the time of payment of, or
renew or alter, Senior Debt of the Guarantor, or otherwise amend or supplement in any
manner Senior Debt of the Guarantor or any instrument evidencing the same or any agreement
under which Senior Debt of the Guarantor is outstanding, (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing Senior Debt of
the Guarantor, (iii) release any Person liable in any manner for the payment of Senior Debt
of the Guarantor and (iv) exercise or refrain from exercising any rights against the
Guarantor and any other Person.

     Section 14.8 Notice to Trustee.

     (a) The Guarantor shall give prompt written notice to a Responsible Officer of the
Trustee of any fact known to the Guarantor that would prohibit the making of any payment to or
by the Trustee in respect of the Securities. Notwithstanding the provisions of this
Article XIV or
any other provision of this Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts that would prohibit the making of any payment to or by the Trustee in
respect of the Securities, unless and until a Responsible Officer of the Trustee shall have
received written notice thereof from the Guarantor or a holder of Senior Debt of the Guarantor
or from any trustee, agent or representative therefor; provided, that if the Trustee
shall not have received the notice provided for in this Section 14.8 at least two Business Days prior
to the date upon which by the terms hereof any monies may become payable for any purpose (including, the
payment of the principal of and any premium on or interest (including any Additional Interest)
on any Security), then, anything herein contained to the contrary notwithstanding, the Trustee
shall have full power and authority to receive such monies and to apply the same to the
purpose 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.

     (b) The Trustee shall be entitled to rely on the delivery to it of a written notice by a
Person representing himself, herself or itself to be a holder of Senior Debt of the Guarantor
(or a trustee, agent, representative or attorney-in-fact therefor) to establish that such notice has
been given by a holder of Senior Debt of the Guarantor (or a trustee, agent, representative or
attorney- in-fact therefor). 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 Senior Debt of the Guarantor
to participate in any payment or distribution pursuant to this Article XIV, the Trustee
may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Senior Debt of the Guarantor 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 XIV, 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 14.9 Reliance on Judicial Order or Certificate of Liquidating Agent.

76

 

     Upon any payment or distribution of assets of the Guarantor referred to in this Article
XIV, the Trustee and the Holders of the Securities shall be entitled to conclusively rely upon
any order or decree entered by any court of competent jurisdiction in which such Proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating trustee, custodian,
assignee for the benefit of creditors, agent or other Person making such payment or distribution,
delivered to the Trustee or to the Holders of Securities, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of the Senior Debt of
the Guarantor and other indebtedness of the Guarantor, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article XIV.

     Section 14.10 Trustee Not Fiduciary for Holders of Senior Debt of the Guarantor.

     The Trustee, in its capacity as trustee under this Indenture, shall not owe or be deemed to
owe any fiduciary duty to the holders of Senior Debt of the Guarantor and shall not be liable to
any such holders if it shall in good faith mistakenly pay over or distribute to Holders of
Securities or to the Guarantor or to any other Person cash, property or securities to which any
holders of Senior Debt of the Guarantor shall be entitled by virtue of this Article XIV or
otherwise.

     Section 14.11 Rights of Trustee as Holder of Senior Debt of the Guarantor; Preservation
of Trustee’s Rights.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article XIV with respect to any Senior Debt of the Guarantor that may at any time be held
by it, to the same extent as any other holder of Senior Debt of the Guarantor, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder.

     Section 14.12 Article Applicable to Paying Agents.

     If at any time any Paying Agent other than the Trustee shall have been appointed by the
Guarantor and be then acting hereunder, the term “Trustee” as used in this Article XIV shall in
such case (unless the context otherwise requires) be construed as extending to and including such
Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article XIV in addition to or in place of the Trustee; provided,
that Sections 14.8 and 14.11 shall not apply to the Guarantor or any Affiliate of
the Guarantor if the Guarantor or such Affiliate acts as Paying Agent.

[signature page follows]

77

 

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

	 	 	 	 	 	 	 
	 	 	CAPITALSOURCE FINANCE LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas A. Fink	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas A. Fink	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CAPITALSOURCE INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven A. Museles	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Steven A. Museles	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL

ASSOCIATION, as Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Maria D. Calzado	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	MARIA D. CALZADO	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

 

 

Schedule A

DETERMINATION OF LIBOR

     With
respect to the Securities, the London interbank offered rate (“LIBOR”) shall be
determined by the Calculation Agent in accordance with the following provisions (in each case
rounded to the nearest .000001%):

(1) On the second LIBOR Business Day (as defined below) prior to an Interest Payment Date
(except with respect to the first interest payment period, such date shall be February 20, 2006)
(each such day, a “LIBOR Determination Date”), LIBOR for any given security shall for the
following interest payment period equal the rate, as obtained by the Calculation Agent from
Bloomberg Financial Markets Commodities News, for three (3)-month Eurodollar deposits that
appears on Dow Jones Telerate Page 3750 (as defined in the International Swaps and Derivatives
Association, Inc. 2000 Interest Rate and Currency Exchange Definitions, as the same may be
amended from time to time), or such other page as may replace such Page 3750 (as any such
replacement may be amended from time to time), as of 11:00 A.M. (London time) on such
LIBOR Determination Date.

(2) If, on any LIBOR Determination Date, such rate does not appear on Dow Jones Telerate
Page 3750 or such other page as may replace such Page 3750, the Calculation Agent shall
determine the arithmetic mean of the offered quotations of the Reference Banks (as defined
below) to leading banks in the London interbank market for three (3)-month Eurodollar deposits
in an amount determined by the Calculation Agent by reference to requests for quotations as of
approximately 11:00 A.M. (London time) on the LIBOR Determination Date made by the
Calculation Agent to the Reference Banks. If, on any LIBOR Determination Date, at least two of
the Reference Banks provide such quotations, LIBOR shall equal such arithmetic mean of such
quotations. If, on any LIBOR Determination Date, only one or none of the Reference Banks
provide such quotations, LIBOR shall be deemed to be the arithmetic mean of the offered
quotations that leading banks in the City of New York selected by the Calculation Agent are
quoting on the relevant LIBOR Determination Date for three (3)-month Eurodollar deposits in an
amount determined by the Calculation Agent by reference to the principal London offices of
leading banks in the London interbank market; provided, that if the Calculation Agent is
required but is unable to determine a rate in accordance with at least one of the procedures provided
above or adequate and fair means do not exist for ascertaining the applicable interest rate on the
basis set forth above (due to changes arising in the interbank Eurocurrency market or otherwise),
then the Securities shall not bear interest in respect of LIBOR but shall instead bear interest
with reference to a floating rate equal to the Base Rate (as defined below).

(3) As used herein: “Reference Banks” means four (4) major banks in the London interbank
market selected by the Calculation Agent; “LIBOR Business Day” means a day on which
commercial banks are open for business (including dealings in foreign exchange and foreign
currency deposits) in London; “Base Rate” on any day shall equal the greater of the arithmetic
mean of (i) the “prime rate” for dollar denominated loans quoted by leading banks in the City of
New York selected by the Calculation Agent and (ii) the Federal Funds Rate (as defined below)
plus 0.50% per annum; and the “Federal Funds Rate” on any day equals the rate per annum
equal to the weighted average (rounded upwards to the nearest 0.000001) of the rate on overnight
federal funds transactions with members of the Federal Reserve System only arranged by federal
funds brokers, as published as of such day by the Federal Reserve Bank of New York.

Schedule A-l

 

 

Exhibit A

FORM OF OFFICER’S FINANCIAL CERTIFICATE

     The undersigned, the [Chief Financial Officer/Chief Accounting Officer/Treasurer/Assistant
Treasurer/ Secretary/Assistant Secretary, Chairman/Vice Chairman/Chief Executive Officer/
President/Vice President] hereby certifies, pursuant to Section 7.3(b) of the Junior Subordinated
Indenture, dated as of February 22, 2006 (the “Indenture”),among CapitalSource Finance LLC (the
“Company”), CapitalSource Inc. (the “Guarantor”) and JPMorgan Chase Bank, National Association, as
trustee, that, as of [date], [year], the Guarantor had the following ratios and balances on a
consolidated basis:

As of [Quarterly/Annual Financial Date], 20[___]

	 	 	 	 	 
	Senior
secured indebtedness for borrowed money (“Debt”)
	 	$	—	 
	 
	 	 	 	 
	Senior unsecured Debt
	 	$	—	 
	 
	 	 	 	 
	Subordinated Debt
	 	$	—	 
	 
	 	 	 	 
	Total Debt
	 	$	—	 
	 
	 	 	 	 
	 Ratio of
(x) senior secured and unsecured Debt to (y) total debt
	 	 	—	%

[FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial
statements (including the balance sheet, income statement and statement of cash flows, and
notes thereto, together with the report of the independent accountants thereon) of the
Guarantor and its consolidated subsidiaries for the three (3) years ended [date], 20[___].]

[FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and
consolidating financial statements (including the balance sheet and income statement) of
the Guarantor and its consolidated subsidiaries for the fiscal quarter ended [date], 20[___].]

     The financial statements fairly present in all material respects, in accordance with
U.S. generally accepted accounting principles (“GAAP”), the financial position of the Guarantor
and its consolidated subsidiaries, and the results of operations and changes in financial
condition as of the date, and for the [quarter] [annual] period ended [date], 20[___], and such financial
statements have been prepared in accordance with GAAP consistently applied throughout the period
involved (expect as otherwise noted therein).

A-1

 

     IN WITNESS WHEREOF, the undersigned has executed this Officer’s Financial
Certificate as of this                      day of                                          , 20[___].

	 	 	 	 	 
	 	 	CAPITALSOURCE INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	CapitalSource Inc.
	 

	 	 	 	4445 Willard Avenue, 12th Floor
	 

	 	 	 	Chevy Chase, Maryland 20815
	 

	 	 	 	(301) 841-2700

A-2

 

Exhibit B

FORM OF

OFFICERS’ CERTIFICATE

PURSUANT TO

SECTION 10.3

     Pursuant to Section 10.3 of the Junior Subordinated Indenture, dated as of February 22,
2006 (as modified, supplemented or amended from time to time, the “Indenture”) among CapitalSource
Finance LLC, a Delaware limited liability company (the “Company”), CapitalSource Inc., a Delaware
corporation (the “Guarantor”), and JPMorgan Chase Bank, National Association, as Trustee, each of
the undersigned hereby certifies that, to the knowledge of the undersigned, neither the Company nor
the Guarantor is not in default in the performance or observance of any of the terms, provisions
and conditions of the Indenture (without regard to any period of grace or requirement of notice
provided under the Indenture) for the fiscal period ending on [date], [year] [, except as follows:
specify each such default and the nature and status thereof].

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

[signatures page follows]

B-1

 

     IN WITNESS WHEREOF, the undersigned have executed this Officers’ Certificate as of                     , 20___.

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	[Must be the Chief Executive Officer, the President or a Senior
Vice President] of
CapitalSource Finance LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	[Must be the Chief Financial Officer, the Chief Accounting
Officer, the Treasurer or an Assistant Treasurer] of Capital Source
Finance LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	[Must be the Chief Executive officer, the President or a Senior
Vice President] of
CapitalSource Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	[Must be the Chief Financial Officer, Chief Accounting
Officer, the Treasurer or an Assistant Treasurer] of
CapitalSource Inc.

B-2

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