Document:

exv4w1

Exhibit 4.1

 

INDENTURE

by and between

FLAGSTAR BANCORP, INC.,

as Company

and

WILMINGTON TRUST COMPANY,

as Trustee

Convertible Junior Subordinated Debt Securities

Due September 15, 2039

Dated as of June 30, 2009

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	DEBT SECURITIES
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Authentication and Dating
	 	 	9	 
	Section 2.02. Form of Trustee’s Certificate of Authentication
	 	 	10	 
	Section 2.03. Form and Denomination of Debt Securities
	 	 	10	 
	Section 2.04. Execution of Debt Securities
	 	 	11	 
	Section 2.05. Exchange and Registration of Transfer of Debt Securities
	 	 	11	 
	Section 2.06. Mutilated, Destroyed, Lost or Stolen Debt Securities
	 	 	14	 
	Section 2.07. Temporary Debt Securities
	 	 	15	 
	Section 2.08. Payment of Interest and Additional Interest
	 	 	15	 
	Section 2.09. Cancellation of Debt Securities Paid, Etc
	 	 	17	 
	Section 2.10. Computation of Interest
	 	 	17	 
	Section 2.11. Extension of Payment Period
	 	 	17	 
	Section 2.12. CUSIP Numbers
	 	 	18	 
	Section 2.13. Income Tax Certification
	 	 	18	 
	Section 2.14. Conversion of Debt Securities
	 	 	19	 
	Section 2.15. Global Debt Securities
	 	 	25	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	PARTICULAR COVENANTS OF THE COMPANY
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Payment of Principal, Premium and Interest; Agreed
Treatment of the Debt Securities
	 	 	26	 
	Section 3.02. Offices for Notices and Payments, Etc
	 	 	27	 
	Section 3.03. Appointments to Fill Vacancies in Trustee’s Office
	 	 	27	 
	Section 3.04. Provision as to Paying Agent
	 	 	27	 
	Section 3.05. Certificate to Trustee
	 	 	28	 
	Section 3.06. Additional Interest
	 	 	28	 
	Section 3.07. Compliance With Consolidation Provisions
	 	 	29	 
	Section 3.08. Limitation on Dividends
	 	 	29	 
	Section 3.09. Covenants as to the Trust
	 	 	30	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Securityholders’ Lists
	 	 	30	 
	Section 4.02. Preservation and Disclosure of Lists
	 	 	30	 
	Section 4.03. Financial and Other Information
	 	 	32	 

 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE V
	 	 	 	 
	REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Events of Default
	 	 	32	 
	Section 5.02. Payment of Debt Securities on Default; Suit Therefor
	 	 	34	 
	Section 5.03. Application of Moneys Collected by Trustee
	 	 	36	 
	Section 5.04. Proceedings by Securityholders
	 	 	36	 
	Section 5.05. Proceedings by Trustee
	 	 	37	 
	Section 5.06. Remedies Cumulative and Continuing; Delay or Omission Not a Waiver
	 	 	37	 
	Section 5.07. Direction of Proceedings and Waiver of Defaults by Majority of
Securityholders
	 	 	37	 
	Section 5.08. Notice of Defaults
	 	 	38	 
	Section 5.09. Undertaking To Pay Costs
	 	 	39	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	CONCERNING THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Duties and Responsibilities of Trustee
	 	 	39	 
	Section 6.02. Reliance on Documents, Opinions, Etc
	 	 	40	 
	Section 6.03. No Responsibility for Recitals, Etc
	 	 	41	 
	Section 6.04. Trustee, Authenticating Agent, Paying Agents,
Transfer Agents or Registrar May Own Debt
Securities
	 	 	42	 
	Section 6.05. Moneys To Be Held in Trust
	 	 	42	 
	Section 6.06. Compensation and Expenses of Trustee
	 	 	42	 
	Section 6.07. Officers’ Certificate as Evidence
	 	 	43	 
	Section 6.08. Eligibility of Trustee
	 	 	43	 
	Section 6.09. Resignation or Removal of Trustee
	 	 	44	 
	Section 6.10. Acceptance by Successor Trustee
	 	 	45	 
	Section 6.11. Succession by Merger, Etc
	 	 	46	 
	Section 6.12. Authenticating Agents
	 	 	46	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	CONCERNING THE SECURITYHOLDERS
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Action by Securityholders
	 	 	47	 
	Section 7.02. Proof of Execution by Securityholders
	 	 	48	 
	Section 7.03. Who Are Deemed Absolute Owners
	 	 	48	 
	Section 7.04. Debt Securities Owned by Company Deemed Not Outstanding
	 	 	49	 
	Section 7.05. Revocation of Consents; Future Holders Bound
	 	 	49	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	SECURITYHOLDERS’ MEETINGS
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Purposes of Meetings
	 	 	49	 
	Section 8.02. Call of Meetings by Trustee
	 	 	50	 
	Section 8.03. Call of Meetings by Company or Securityholders
	 	 	50	 
	Section 8.04. Qualifications for Voting
	 	 	50	 

ii

 

	 	 	 	 	 
	 	 	Page
	Section 8.05. Regulations
	 	 	50	 
	Section 8.06. Voting
	 	 	51	 
	Section 8.07. Quorum; Actions
	 	 	51	 
	Section 8.08. Written Consent Without a Meeting
	 	 	52	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Supplemental Indentures Without Consent of Securityholders
	 	 	52	 
	Section 9.02. Supplemental Indentures With Consent of Securityholders
	 	 	54	 
	Section 9.03. Effect of Supplemental Indentures
	 	 	55	 
	Section 9.04. Notation on Debt Securities
	 	 	55	 
	Section 9.05. Evidence of Compliance of Supplemental Indenture To Be Furnished to Trustee
	 	 	55	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	REDEMPTION OF SECURITIES
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. Optional Redemption
	 	 	56	 
	Section 10.02. Special Event Redemption
	 	 	56	 
	Section 10.03. Notice of Redemption; Selection of Debt Securities
	 	 	56	 
	Section 10.04. Payment of Debt Securities Called for Redemption
	 	 	57	 
	 
	 	 	 	 
	ARTICLE XI
	 	 	 	 
	CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. Company May Consolidate, etc. On Certain Terms
	 	 	57	 
	Section 11.02. Successor Entity To Be Substituted
	 	 	58	 
	Section 11.03. Opinion of Counsel To Be Given to Trustee
	 	 	58	 
	 
	 	 	 	 
	ARTICLE XII
	 	 	 	 
	SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	 	 
	 
	 	 	 	 
	Section 12.01. Discharge of Indenture
	 	 	58	 
	Section 12.02. Deposited Moneys To Be Held in Trust by Trustee
	 	 	59	 
	Section 12.03. Paying Agent To Repay Moneys Held
	 	 	59	 
	Section 12.04. Return of Unclaimed Moneys
	 	 	59	 
	 
	 	 	 	 
	ARTICLE XIII
	 	 	 	 
	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	 	 	 	 
	 
	 	 	 	 
	Section 13.01. Indenture and Debt Securities Solely Corporate Obligations 
	 	 	60	 
	 
	 	 	 	 
	ARTICLE XIV
	 	 	 	 
	MISCELLANEOUS PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	Section 14.01. Successors
	 	 	60	 
	Section 14.02. Official Acts by Successor Entity
	 	 	60	 

iii

 

	 	 	 	 	 
	 	 	Page
	Section 14.03. Surrender of Company Powers
	 	 	60	 
	Section 14.04. Addresses for Notices, Etc
	 	 	60	 
	Section 14.05. Governing Law
	 	 	61	 
	Section 14.06. Evidence of Compliance With Conditions Precedent
	 	 	61	 
	Section 14.07. Non-Business Days
	 	 	61	 
	Section 14.08. Table of Contents, Headings, Etc
	 	 	62	 
	Section 14.09. Execution in Counterparts
	 	 	62	 
	Section 14.10. Separability
	 	 	62	 
	Section 14.11. Assignment
	 	 	62	 
	Section 14.12. Acknowledgment of Rights
	 	 	62	 
	 
	 	 	 	 
	ARTICLE XV
	 	 	 	 
	SUBORDINATION OF DEBT SECURITIES
	 	 	 	 
	 
	 	 	 	 
	Section 15.01. Agreement To Subordinate
	 	 	63	 
	Section 15.02. Default on Senior Indebtedness
	 	 	63	 
	Section 15.03. Liquidation, Dissolution, Bankruptcy
	 	 	63	 
	Section 15.04. Subrogation
	 	 	65	 
	Section 15.05. Trustee To Effectuate Subordination
	 	 	65	 
	Section 15.06. Notice by the Company
	 	 	66	 
	Section 15.07. Rights of the Trustee; Holders of Senior Indebtedness
	 	 	66	 
	Section 15.08. Subordination May Not Be Impaired
	 	 	67	 
	 
	 	 	 	 
	EXHIBIT A FORM OF CONVERTIBLE JUNIOR SUBORDINATED DEBT SECURITY DUE SEPTEMBER 15, 2039
	 	 	A-1	 
	 
	 	 	 	 
	EXHIBIT B FORM OF CERTIFICATE TO TRUSTEE
	 	 	1	 

iv

 

     THIS INDENTURE, dated as of June 30, 2009, by and between FLAGSTAR BANCORP, INC., a savings
and loan holding company incorporated in Michigan (the “Company”), and WILMINGTON TRUST COMPANY, a
Delaware banking corporation, as trustee (the “Trustee”).

W I T N E S S E T H :

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of
its Convertible Junior Subordinated Debt Securities due September 15, 2039 (the “Debt Securities”)
under this Indenture to provide, among other things, for the execution and authentication, delivery
and administration thereof, and the Company has duly authorized the execution of this Indenture;
and

     WHEREAS, all acts and things necessary to make this Indenture a valid agreement according to
its terms, have been done and performed;

     NOW, THEREFORE, This Indenture Witnesseth:

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

ARTICLE I

DEFINITIONS

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

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

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

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

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

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

 

 

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

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

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

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

     “Capital Treatment Event” means the receipt by the Company and the Trust of an Opinion of
Counsel experienced in such matters to the effect that, as a result of (a) the occurrence of any
amendment to, or change (including any announced prospective change) in, the laws, rules or
regulations of the United States or any political subdivision thereof or therein, or any rules,
guidelines or policies of any applicable regulatory authority for the Company or (b) any official
or administrative pronouncement or action or decision interpreting or applying such laws, rules or
regulations, which amendment or change is effective or which pronouncement, action or decision is
announced on or after the date of original issuance of the Debt Securities, that there is more than
an insubstantial risk that the Company is not or within 90 days of the date of such opinion will
not, be entitled to treat an amount equal to the aggregate Liquidation Amount of the Capital
Securities as “Tier 1 Capital” (or its then equivalent) for purposes of the capital adequacy
guidelines of the Federal Reserve or OTS, as applicable (or any successor regulatory authority with
jurisdiction over bank, savings and loan or financial holding companies), as then in effect and
applicable to the Company; provided, however, that the inability of the Company to treat all or any
portion of the Liquidation Amount of the Capital Securities as Tier l Capital shall not constitute
the basis for a Capital Treatment Event, if such inability results from the Company having
cumulative preferred stock, minority interests in consolidated subsidiaries, or any other class of
security or interest which the Federal Reserve or OTS, as applicable, may now or hereafter accord
Tier 1 Capital treatment in excess of the amount which may now or hereafter qualify for treatment
as Tier 1 Capital under applicable capital adequacy guidelines; provided further, however, that the
distribution of the Debt Securities in connection with the liquidation of the Trust by the Company
shall not in and of itself constitute a Capital Treatment Event unless such liquidation shall have
occurred in connection with a Tax Event or an Investment Company Event.

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

2

 

     “Closing Price” means, with respect to the Common Stock on any date of determination, the
closing sale price or, if no closing sale price is reported, the last reported sale price of the
shares of the Common Stock on the NYSE on such date. If the Common Stock is not traded on the NYSE
on any date of determination, the Closing Price of the Common Stock on such date of determination
means the closing sale price as reported in the composite transactions for the principal U.S.
national or regional securities exchange on which the Common Stock is so listed or quoted, or, if
no closing sale price is reported, the last reported sale price on the principal U.S. national or
regional securities exchange on which the Common Stock is so listed or quoted, or if the Common
Stock is not so listed or quoted on a U.S. national or regional securities exchange, the last
quoted bid price for the Common Stock in the over-the-counter market as reported by Pink Sheets LLC
or similar organization, or, if that bid price is not available, the market price of the Common
Stock on that date as determined by a nationally recognized independent investment banking firm
retained by the Corporation for this purpose. For purposes of this Indenture, all references herein
to the “Closing Price” and “last reported sale price” of the Common Stock on the NYSE shall be such
closing sale price and last reported sale price as reflected on the website of the NYSE
(http://www.nyse.com) and as reported by Bloomberg Professional Service; provided that in the event
that there is a discrepancy between the closing sale price or last reported sale price as reflected
on the website of the NYSE and as reported by Bloomberg Professional Service, the closing sale
price and last reported sale price on the website of the NYSE shall govern. If the date of
determination is not a Trading Day, then such determination shall be made as of the last Trading
Day prior to such date.

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

     “Common Stock” means the common stock, $0.01 par value per share, of the Company.

     “Company” means Flagstar Bancorp, Inc., a savings and loan holding company incorporated in
Michigan, and, subject to the provisions of Article XI, shall include its successors and assigns.

     “Conversion Agent” means the Person appointed to act on behalf of the Holders and
Securityholders in effecting the conversion of Debt Securities and/or Capital Securities to Common
Stock as and in the manner set forth in the Declaration and this Indenture.

     “Conversion Date” has the meaning set forth in Section 2.14.

     “Conversion Price” has the meaning set forth in Section 2.14.

     “Conversion Request” means the irrevocable request to be given by a Trust Securities Holder to
the Conversion Agent in compliance with the Declaration directing the Conversion Agent to convert
such Capital Securities into Debt Securities and to convert such Debt Securities into Common Stock
on behalf of such Trust Securities Holder.

3

 

     “Current Market Price” means, on any date, the average of the daily Closing Price per share of
the Common Stock on each of the five (5) consecutive Trading Days preceding the earlier of the day
before the date in question and the day before the Ex-Date with respect to the issuance or
distribution giving rise to an adjustment to the Conversion Price pursuant to Section 2.14.

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

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

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

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

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

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

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

     “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. The initial Depositary if
Global Debt Securities are issued will be DTC.

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

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

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

     “Ex-Date” means, with respect to any issuance or distribution, the first date on which the
Common Stock or other securities trade without the right to receive the issuance or distribution
giving rise to an adjustment to the Conversion Price pursuant to Section 2.14.

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

     “Federal Reserve” means the Board of Governors of the Federal Reserve System, or its
designated district bank, as applicable, and any successor federal agency that is primarily
responsible for regulating the activities of bank holding companies.

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

4

 

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

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

     “Interest Payment Date” means March 15, June 15, September 15 and December 15 of each year
during the term of this Indenture, or if such day is not a Business Day, then the next succeeding
Business Day (it being understood that interest accrues for any such non-Business Day but such
interest will be paid on the next Interest Payment Date), commencing on September 15, 2009.

     “Interest Rate” means 10.00% per annum.

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

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

     “Maturity Date” means September 15, 2039.

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

     “NYSE” means The New York Stock Exchange.

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

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

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

5

 

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

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

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

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

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

     “Payment Period” means (a) with respect to the first Interest Payment Date, the period
beginning on (and including) the date of original issuance and ending on (but excluding) the
Interest Payment Date on September 15, 2009; (b) with respect to each successive Interest Payment
Date, the period beginning on (and including) the preceding Interest Payment Date and ending on
(but excluding) such current Interest Payment Date or, in the case of the last Payment Period, the
Redemption Date, Special Redemption Date or Maturity Date, as the case may be.

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

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

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

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

6

 

     “Redemption Notice” has the meaning set forth in Section 10.03.

     “Redemption Price” means 100% of the principal amount of the Debt Securities being redeemed,
plus accrued and unpaid interest (including any Deferred Interest) on such Debt Securities to the
Redemption Date.

     “Redemption/Distribution Notice” has the meaning set forth in the Declaration.

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

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

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

     “Senior Indebtedness” means, with respect to the Company, (a) the principal, premium, if any,
and interest in respect of (i) indebtedness of the Company for all borrowed and purchased money;
and (ii) indebtedness evidenced by securities, debentures, notes, bonds or other similar
instruments issued by the Company; (b) all capital lease obligations of the Company; (c) all
obligations of the Company issued or assumed as the deferred purchase price of property, all
conditional sale obligations of the Company and all obligations of the Company under any title
retention agreement; (d) all obligations of the Company for the reimbursement of any letter of
credit, any banker’s acceptance, any security purchase facility, any repurchase agreement or
similar arrangement, any interest rate swap, any other hedging arrangement, any obligation under
options or any similar credit or other transaction; (e) all obligations of the Company associated
with derivative products such as interest and foreign exchange rate contracts, commodity contracts,
and similar arrangements; (f) all obligations of the type referred to in clauses (a) – (e) above of
other Persons for the payment of which the Company is responsible or liable as obligor, guarantor
or otherwise, including, without limitation, similar obligations arising from off-balance sheet
guarantees and direct credit substitutes; and (g) all obligations of the type referred to in
clauses (a) – (f) above of other Persons secured by any lien on any property or asset of the
Company (whether or not such obligation is assumed by the Company), whether incurred on or prior to
the date of this Indenture or thereafter incurred. Notwithstanding the foregoing, “Senior
Indebtedness” shall not include (A) Debt Securities issued pursuant to this Indenture and
guarantees in respect of such Debt Securities; (B) trade accounts payable of the Company arising in
the ordinary course of business (such trade accounts payable being pari passu in right of payment
to the Debt Securities); (C) other obligations with respect to which in the instrument creating or
evidencing the same or pursuant to which the same is outstanding it is provided that such
obligations are pari passu, junior or otherwise not superior in right of payment to the Debt

7

 

Securities; or (D) any debt securities issued to any trust other than the Trust (or a trustee
of such trust) that is a financing vehicle of the Company (a “financing entity”), in connection
with the issuance by such financing entity of equity or other securities in transactions
substantially similar in structure to the transactions contemplated hereunder and in the
Declaration, (E) any guarantees of the Company in respect of the equity or other securities of any
financing entity referred to in clause (D) above or (F) any other instruments classified as
subordinated or pari passu to the Debt Securities by the Federal Reserve or OTS from time to time
hereafter. Senior Indebtedness shall continue to be Senior Indebtedness and be entitled to the
subordination provisions irrespective of any amendment, modification or waiver of any term of such
Senior Indebtedness.

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

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

     “Special Redemption Price” means 100% of the principal amount of the Debt Securities being
redeemed, plus accrued and unpaid interest (including any Deferred Interest) on such Debt
Securities to the Special Redemption Date.

     “Stock Price” shall mean, as determined by the Company in the manner set forth in Section
2.14, the product of 90% and the volume-weighted average Closing Price of the Common Stock for the
period from February 1, 2009 to April 1, 2010; provided, that the Stock Price shall be no less than
$0.80 and no greater than $2.00.

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

     “Tax Event” means the receipt by the Company and the Trust of an Opinion of Counsel
experienced in such matters to the effect that, as a result of any amendment to or change
(including any announced prospective change) in the laws or any regulations thereunder of the
United States or any political subdivision or taxing authority thereof or therein, or as a result
of any official administrative pronouncement (including any private letter ruling, technical advice
memorandum, field service advice, regulatory procedure, notice or announcement, including any
notice or announcement of intent to adopt such procedures or regulations) (an “Administrative
Action”) or judicial decision interpreting or applying such laws or regulations, regardless of
whether such Administrative Action or judicial decision is issued to or in connection with a

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proceeding involving the Company or the Trust and whether or not subject to review or appeal,
which amendment, clarification, change, Administrative Action or decision is enacted, promulgated
or announced, in each case on or after the date of original issuance of the Debt Securities, there
is more than an insubstantial risk that: (a) the Trust is, or will be within 90 days of the date of
such opinion, subject to United States federal income tax with respect to income received or
accrued on the Debt Securities; (b) interest payable by the Company on the Debt Securities is not,
or within 90 days of the date of such opinion, will not be, deductible by the Company, in whole or
in part, for United States federal income tax purposes; or (c) the Trust is, or will be within
90 days of the date of such opinion, subject to or otherwise required to pay, or required to
withhold from distributions to holders of Trust Securities, more than a de minimis amount of other
taxes (including withholding taxes), duties, assessments or other governmental charges.

     “Trading Day” means a day on which the shares of Common Stock: (a) are not suspended from
trading on any national or regional securities exchange or association or over-the-counter market
at the close of business; and (b) have traded at least once on the national or regional securities
exchange or association or over-the-counter market that is the primary market for the trading of
the Common Stock.

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

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

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

     “Trust Securities Holder,” “Holder of Trust Securities,” or other similar terms, has the
meaning given the term “Holder” in the Declaration.

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

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

ARTICLE II

DEBT SECURITIES

     Section 2.01. Authentication and Dating. Upon the execution and delivery of this Indenture,
or from time to time thereafter, Debt Securities in an aggregate principal amount not in excess of
$51,547,000 may be executed and delivered by the Company to the Trustee for authentication, and the
Trustee, upon receipt of a written authentication order from the Company, shall thereupon
authenticate and make available for delivery said Debt Securities to or upon the written order of
the Company, signed by its Chairman of the Board of Directors, Chief Executive

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Officer, Vice Chairman, President or Chief Financial Officer or one of its Vice Presidents
without any further action by the Company hereunder. Notwithstanding anything to the contrary
contained herein, the Trustee shall be fully protected in relying upon the aforementioned
authentication order and written order in authenticating and delivering said Debt Securities. In
authenticating such Debt Securities, and accepting the additional responsibilities under this
Indenture in relation to such Debt Securities, the Trustee shall be entitled to receive, and
(subject to Section 6.01) shall be fully protected in relying upon a copy of any Board Resolution
or Board Resolutions relating thereto and, if applicable, an appropriate record of any action taken
pursuant to such resolution, in each case certified by the Secretary or an Assistant Secretary or
other officers with appropriate delegated authority of the Company, as the case may be.

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

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

     Section 2.02. Form of Trustee’s Certificate of Authentication. The Trustee’s certificate of
authentication on all Debt Securities shall be in substantially the following form:

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

	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY, not in its individual

capacity but solely as Trustee
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

     Section 2.03. Form and Denomination of Debt Securities. The Debt Securities shall be
substantially in the form of Exhibit A attached hereto. The Debt Securities shall be in
registered, certificated form without coupons and in minimum denominations of $100,000 and any
multiple of $1,000 in excess thereof. Any attempted transfer of the Debt Securities in a block
having an aggregate principal amount of less than $100,000 face amount shall be deemed to be void
and of no legal effect whatsoever. Any such purported transferee shall be deemed not to be a
holder of such Debt Securities for any purpose, including, but not limited to, the receipt of
payments on such Debt Securities, and such purported transferee shall be deemed to have no interest
whatsoever in such Debt Securities. The Debt Securities shall be numbered, lettered, or otherwise
distinguished in such manner or in accordance with such plans as the officers

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executing the same may determine with the approval of the Trustee as evidenced by the
execution and authentication thereof.

     Section 2.04. Execution of Debt Securities. The Debt Securities shall be signed in the name
and on behalf of the Company by the manual or facsimile signature of any of its Chairman of the
Board of Directors, Chief Executive Officer, Vice Chairman, President or Chief Financial Officer or
one of its Executive Vice Presidents, Senior Vice Presidents or Vice Presidents, under its
corporate seal (if legally required), which may be affixed thereto or printed, engraved or
otherwise reproduced thereon, by facsimile or otherwise, and which need not be attested. Only such
Debt Securities as shall bear thereon a certificate of authentication substantially in the form
herein before recited, executed by the Trustee or the Authenticating Agent by the manual signature
of an authorized officer, shall be entitled to the benefits of this Indenture or be valid or
obligatory for any purpose. Such certificate by the Trustee or the Authenticating Agent upon any
Debt Security executed by the Company shall be conclusive evidence that the Debt Security so
authenticated has been duly authenticated and delivered hereunder and that the Securityholder is
entitled to the benefits of this Indenture.

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

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

     Section 2.05. Exchange and Registration of Transfer of Debt Securities. The Trustee is
initially appointed by the Company to serve as “Debt Security Registrar.” The Trustee shall cause
to be kept, at the office or agency maintained for the purpose of registration of transfer and for
exchange as provided in Section 3.02, a register (the “Debt Security Register”) for the Debt
Securities issued hereunder in which, subject to such reasonable regulations as it may prescribe,
the Debt Security Registrar shall provide for the registration and transfer of all Debt Securities
as provided in this Article II. Such register shall be in written form or in any other form
capable of being converted into written form within a reasonable time.

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

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Debt Security for a like aggregate principal amount. Registration or registration of transfer
of any Debt Security by the Trustee or by any agent of the Company appointed pursuant to
Section 3.02, and delivery of such Debt Security, shall be deemed to complete the registration or
registration of transfer of such Debt Security.

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

     Neither the Trustee nor the Debt Security Registrar shall be responsible for ascertaining
whether any transfer hereunder complies with the registration provisions of or any exemptions from
the Securities Act (under and as defined in the Declaration), applicable state securities laws or
the applicable laws of any other jurisdiction, ERISA, the United States Internal Revenue Code of
1986, as amended, or the Investment Company Act (under and as defined in the Declaration).

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

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

     Notwithstanding anything herein to the contrary, Debt Securities may not be transferred except
in compliance with the restricted securities legend set forth below, unless otherwise determined by
the Company, upon the advice of counsel, in accordance with applicable law, which legend shall be
placed on each Debt Security:

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER
THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (C) TO A “NON U.S. PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO
REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE

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REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING
OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE
SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN “ACCREDITED INVESTOR,” FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE
INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE HOLDER OF THIS SECURITY BY ITS
ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

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

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

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

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

     THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

     Section 2.06. Mutilated, Destroyed, Lost or Stolen Debt Securities. In case any Debt
Security shall become mutilated or be destroyed, lost or stolen, the Company shall execute, and
upon its written request the Trustee shall authenticate and deliver, a new Debt Security bearing a
number not contemporaneously outstanding, in exchange and substitution for the mutilated Debt
Security, or in lieu of and in substitution for the Debt Security so destroyed, lost or stolen. In
every case the applicant for a substituted Debt Security shall furnish to the Company and the
Trustee such security or indemnity as may be required by them to save each of them harmless, and,
in every case of destruction, loss or theft, the applicant shall also furnish to the Company and
the Trustee evidence to their satisfaction of the destruction, loss or theft of such Debt Security
and of the ownership thereof.

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

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     Every substituted Debt Security issued pursuant to the provisions of this Section 2.06 by
virtue of the fact that any such Debt Security is destroyed, lost or stolen shall constitute an
additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Debt
Security shall be found at any time, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Debt Securities duly issued hereunder. All Debt
Securities shall be held and owned upon the express condition that, to the extent permitted by
applicable law, the foregoing provisions are exclusive with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Debt Securities and shall preclude any and all other rights
or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with
respect to the replacement or payment of negotiable instruments or other securities without their
surrender.

     Section 2.07. Temporary Debt Securities. Pending the preparation of definitive Debt
Securities, the Company may execute and the Trustee shall authenticate and make available for
delivery temporary Debt Securities that are typed, printed or lithographed. Temporary Debt
Securities shall be issuable in any authorized denomination, and substantially in the form of the
definitive Debt Securities in lieu of which they are issued but with such omissions, insertions and
variations as may be appropriate for temporary Debt Securities, all as may be determined by the
Company. Every such temporary Debt Security shall be executed by the Company and be authenticated
by the Trustee upon the same conditions and in substantially the same manner, and with the same
effect, as the definitive Debt Securities. Without unreasonable delay the Company will execute and
deliver to the Trustee or the Authenticating Agent definitive Debt Securities and thereupon any or
all temporary Debt Securities may be surrendered in exchange therefor, at the Principal Office of
the Trustee or at any office or agency maintained by the Company for such purpose as provided in
Section 3.02, and the Trustee or the Authenticating Agent shall authenticate and make available for
delivery in exchange for such temporary Debt Securities a like aggregate principal amount of such
definitive Debt Securities. Such exchange shall be made by the Company at its own expense and
without any charge therefor except that in case of any such exchange involving a registration of
transfer the Company may require payment of a sum sufficient to cover any tax, fee, or other
governmental charge that may be imposed in relation thereto. Until so exchanged, the temporary
Debt Securities shall in all respects be entitled to the same benefits under this Indenture as
definitive Debt Securities authenticated and delivered hereunder.

     Section 2.08. Payment of Interest and Additional Interest. Interest at the Interest Rate and
any Deferred Interest on any Debt 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 said Debt Security (or
one or more Predecessor Securities) is registered at the close of business on the regular record
date for such interest installment except that interest and any Deferred Interest payable on the
Maturity Date, the Redemption Date (to the extent redeemed) or the Special Redemption Date shall be
paid to the Person to whom principal is paid. In the event that any Debt Security or portion
thereof is called for redemption and the redemption date is subsequent to a regular record date
with respect to any Interest Payment Date and either on or prior to such Interest Payment Date,
interest on such Debt Security will be paid upon presentation and surrender of such Debt Security.

15

 

     Each Debt Security shall bear interest from the date of original issuance at the Interest
Rate, applied to the principal amount thereof, until the principal thereof becomes due and payable,
and on any overdue principal and to the extent that payment of such interest is enforceable under
applicable law (without duplication) on any overdue installment of interest (including Deferred
Interest) at the Interest Rate, compounded quarterly. Interest shall be payable (subject to any
relevant Extension Period) quarterly in arrears on each Interest Payment Date with the first
installment of interest to be paid on the Interest Payment Date on September 15, 2009.

     Any interest on any Debt Security, other than Deferred Interest, that is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the registered Securityholder on the relevant
regular record date by virtue of having been such Securityholder; and such Defaulted Interest shall
be paid by the Company to the Persons in whose names such Debt Securities (or their respective
Predecessor Securities) are registered at the close of business on a special record date for the
payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall
notify the Trustee in writing at least 25 days prior to the date of the proposed payment of the
amount of Defaulted Interest proposed to be paid on each such Debt Security and the date of the
proposed payment, and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements reasonably satisfactory to the Trustee for such deposit prior to the date
of the proposed payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest which shall not be more
than fifteen nor less than the Business Day prior to the date of the proposed payment and not less
than 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 Securityholder at
its address as it appears in the Debt Security Register, not less than 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 mailed as aforesaid, such Defaulted Interest shall be paid to the
Persons in whose names such Debt Securities (or their respective Predecessor Securities) are
registered on such special record date and shall be no longer payable.

     The Company may make payment of any Deferred Interest on any Debt Securities in any other
lawful manner after notice given by the Company to the Trustee of the proposed payment method;
provided, however, the Trustee in its sole discretion deems such payment method to be practical.

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

     The term “regular record date” as used in this Indenture shall mean the close of business on
the Business Day preceding the applicable Interest Payment Date.

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

     Section 2.09. Cancellation of Debt Securities Paid, Etc. All Debt Securities surrendered for
the purpose of payment, redemption, exchange or registration of transfer, shall, if surrendered to
the Company or any Paying Agent, be surrendered to the Trustee and promptly canceled by it, or, if
surrendered to the Trustee or any Authenticating Agent, shall be promptly canceled by it, and no
Debt Securities shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. The Trustee shall dispose of or destroy all canceled Debt Securities
in accordance with its customary practices unless the Company otherwise directs the Trustee in
writing, in which case the Trustee shall dispose of such Debt Securities as directed by the
Company. If the Company shall acquire any of the Debt Securities, however, such acquisition shall
not operate as a redemption or satisfaction of the indebtedness represented by such Debt Securities
unless and until the same are surrendered to the Trustee for cancellation.

     Section 2.10. Computation of Interest. The amount of interest payable for each Payment
Period will be calculated by applying the Interest Rate to the principal amount outstanding at the
commencement of the Payment Period on the basis of a 360-day year consisting of twelve 30-day
months; provided, however, that upon the occurrence of a Special Event Redemption
pursuant to Section 10.02 the amounts payable pursuant to this Indenture shall be calculated as set
forth in the definition of Special Redemption Price. All percentages resulting from any
calculations on the Debt Securities will be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded
upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)), and all dollar
amounts used in or resulting from such calculation will be rounded to the nearest cent (with
one-half cent being rounded upward).

     The Interest Rate for any Payment Period will at no time be higher than the maximum rate then
permitted by New York law as the same may be modified by United States law.

     Subject to the corrective rights set forth above, all certificates, communications, opinions,
determinations, calculations, quotations and decisions given, expressed, made or obtained for the
purposes of the provisions relating to the payment and calculation of interest on the Debt
Securities and distributions on the Capital Securities by the Trustee or the Institutional Trustee
will (in the absence of willful default, bad faith and manifest error) be final, conclusive and
binding on the Trust, the Company and all of the Securityholders and the Capital Securities, and no
liability shall (in the absence of willful default, bad faith or manifest error) attach to the
Trustee or the Institutional Trustee in connection with the exercise or non-exercise by either of
them or their respective powers, duties and discretion.

     Section 2.11. Extension of Payment Period. So long as no Event of Default pursuant to
paragraphs (c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred and is continuing,
the Company shall have the right under the Indenture, from time to time and without causing an
Event of Default, to defer payments of interest on the Debt Securities by extending the Payment

17

 

Period on the Debt Securities at any time and from time to time during the term of the Debt
Securities, for up to twenty consecutive quarterly periods (each such extended Payment Period, an
“Extension Period”), during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). No Extension Period may end on a date other than
an Interest Payment Date. During any Extension Period, interest will continue to accrue on the
Debt Securities, and interest on such accrued interest (such accrued interest and interest thereon
referred to herein as “Deferred Interest”) will accrue at an annual rate equal to the Interest Rate
applicable during such Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent permitted by law. No
interest or Deferred Interest shall be due and payable during an Extension Period, except at the
end thereof. At the end of any such Extension Period the Company shall pay all Deferred Interest
then accrued and unpaid on the Debt Securities; provided, however, that no Extension Period may
extend beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption
Date; and provided further, however, that during any such Extension Period, the Company shall be
subject to the restrictions set forth in Section 3.08 of this Indenture. Prior to the termination
of any Extension Period, the Company may further extend such period; provided that such period
together with all such previous and further consecutive extensions thereof shall not exceed 20
consecutive quarterly periods, or extend beyond the Maturity Date, Redemption Date (to the extent
redeemed) or Special Redemption Date. Upon the termination of any Extension Period and upon the
payment of all Deferred Interest, the Company may commence a new Extension Period, subject to the
foregoing requirements. No interest or Deferred Interest shall be due and payable during an
Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each
installment of interest that would otherwise have been due and payable during such Extension Period
until such installment is paid. The Company must give the Trustee notice of its election to begin
any Extension Period or extend an Extension Period (“Notice”) not later than the related regular
record date for the relevant Interest Payment Date. The Notice shall describe, in reasonable
detail, why the Company has elected to begin an Extension Period. The Notice shall acknowledge and
affirm the Company’s understanding that it is prohibited from issuing dividends and other
distributions during the Extension Period. Upon receipt of the Notice, the Placement Agent shall
have the right, at its sole discretion, to disclose the name of the Company, the fact that the
Company has elected to begin an Extension Period and other information that such Placement Agent,
at its sole discretion, deems relevant to the Company’s election to begin an Extension Period. The
Trustee shall give notice of the Company’s election to begin a new Extension Period to the
Securityholders.

     Section 2.12. CUSIP Numbers. The Company in issuing the Debt Securities may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of
redemption as a convenience to Securityholders; provided, however, that any such notice may state
that no representation is made as to the correctness of such numbers either as printed on the Debt
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Debt Securities, and any such redemption shall not
be affected by any defect in or omission of such numbers. The Company will promptly notify the
Trustee in writing of any change in the CUSIP numbers.

     Section 2.13. Income Tax Certification. As a condition to the payment of any principal of or
interest on the Debt Securities without the imposition of withholding tax, the

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Trustee shall
require the previous delivery of properly completed and signed applicable U.S. federal income
tax certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor form)
in the case of a person that is a “United States person” within the meaning of Section 7701 (a)(30)
of the Code (under and as defined in the Declaration) or an Internal Revenue Service Form W-8 (or
applicable successor form) in the case of a person that is not a “United States person” within the
meaning of Section 7701(a)(30) of the Code, and any other certification acceptable to it to enable
the Trustee or any Paying Agent to determine their respective duties and liabilities with respect
to any taxes or other charges that they may be required to pay, deduct or withhold in respect of
such Debt Securities.

     Section 2.14. Conversion of Debt Securities. Subject to and upon compliance with the
provisions of this Section, the Debt Securities are convertible into Common Stock of the Company.
In the event that holders of Capital Securities exercise the right to convert all or any portion of
the Capital Securities for Debt Securities, the Conversion Agent shall convert such Debt Securities
into shares of Common Stock in the manner described herein and subject to the following terms and
conditions:

     (a) The Debt Securities are convertible solely on April 1, 2010 into fully paid,
validly issued and nonassessable shares of Common Stock pursuant to a Capital Securities
Holder’s direction to the Conversion Agent, subject to the terms of the Declaration, to
exchange all or a portion of the principal of Capital Securities held by such Capital
Securities Holder in accordance with the provisions of Section 2.14(b), for a portion of the
Debt Securities theretofore held by the Trust on the basis of one Trust Security per $1,000
principal amount of Debt Securities, and convert such amount of Debt Securities as promptly
as practicable thereafter (and in any event within two Business Days of the filing with the
Conversion Agent of the certificate required by Section 2.14(f) hereof) into fully paid and
nonassessable shares of Common Stock, equal to the aggregate face amount of Capital
Securities being exchanged divided by the Stock Price, as adjusted pursuant to this Section
2.14 (the “Conversion Price”). The Conversion Agent may conclusively rely upon the
determination of the Conversion Price by the Company.

     (b) To convert all or a portion of the Debt Securities, a Capital Securities Holder
shall deliver to the Conversion Agent and to the Company a Conversion Request which shall
specify the requested date of conversion (which date must be April 1, 2010) (the “Conversion
Date”) which shall be delivered no later than the Business Day prior to the Conversion Date.
The conversion of Capital Securities to Debt Securities shall occur in accordance with the
terms of the Declaration and as promptly as practicable thereafter (and in any event within
two Business Days of the filing with the Conversion Agent of the certificate required by
Section 2.14(f) hereof), the Conversion Agent shall convert such Debt Securities, on behalf
of such Capital Securities Holder, into Common Stock based on Conversion Price. The
Conversion Agent shall notify the Institutional Trustee, on behalf of the Trust, of the
Capital Securities Holder’s election to exchange Capital Securities for a portion of the
Debt Securities held by the Trust, and the Institutional Trustee, on behalf of the Trust,
shall, as promptly as practicable upon the receipt of such notice (and in any event within
two Business Days of the filing with the Conversion Agent of the certificate required by
Section 2.14(f) hereof), deliver to the Conversion

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Agent the appropriate principal amount of Debt Securities for exchange in accordance
with this Section 2.14. So long as any Capital Securities are outstanding, the Trust shall
not convert any Debt Securities into shares of Common Stock except pursuant to a Conversion
Request delivered to the Conversion Agent by a holder of Capital Securities.

     (i) Except as provided in Section 2.14(b)(ii) or (iii) below, a Capital
Securities Holder who converts Debt Securities on or prior to a record date shall be
entitled to receive, on the next Interest Payment Date, a payment equal to the
amount of all accrued and unpaid interest on such converted Debt Securities,
accruing through, but excluding, the date of such conversion.

     (ii) Except as provided in Section 2.14(b)(iii) below with respect to
conversion of Debt Securities after a Redemption/Distribution Notice has been given,
if any Debt Securities are converted during an Extension Period, subject to and as
provided in the Declaration, a Capital Securities Holder may elect to (A) convert
all or any part of the accrued and unpaid interest on the converted Debt Securities
into shares of Common Stock on the Conversion Date in an amount equal to such
accrued and unpaid interest divided by the Conversion Price; provided, that such
election would not cause the Company to be in violation of applicable rules of the
NYSE; or (B) receive such accrued and unpaid interest on the converted Debt
Securities up to, but excluding the Conversion Date (including Deferred Interest
thereon, if any, to the extent permitted by applicable laws, rules or regulations)
on the Interest Payment Date upon which such Extension Period ends. In the event
that the Holder does not elect either clause (A) or (B) above in the Conversion
Request, the Holder shall be deemed to have elected clause (B).

     (iii) If a Redemption/Distribution Notice is mailed or otherwise given to
Holders, then, if any Holder converts any Debt Securities on any date on or after
the date on which such Redemption/Distribution Notice is mailed or otherwise given,
such converting Holder shall be entitled to receive on the Conversion Date or as
promptly as practicable thereafter (and in any event within three Business Days of
the Conversion Date), all accrued and unpaid interest on such converted Debt
Securities (including Deferred Interest thereon, if any, to the extent permitted by
applicable laws, rules or regulations) through, but excluding, the date of such
conversion.

     (iv) If any Debt Security called for redemption is converted, any money
deposited with the Trustee or with any Paying Agent or so segregated and held in
trust for the redemption of such Debt Security shall (subject to any right of the
Capital Securities Holder) be paid to the Company upon Company Request or, if then
held by the Company, shall be discharged from such trust.

(c) Subject to any right of the holder of such Debt Security or any Predecessor
Security to receive interest as provided in Section 2.14(b), the Company’s delivery upon
conversion of the fixed number of shares of Common Stock into which the Debt Securities and
accrued and unpaid interest, if applicable, are convertible (together with

20

 

the cash payment, if any, in lieu of fractional shares) shall be deemed to satisfy the
Company’s obligation to pay the principal amount at maturity of the portion of Debt
Securities so converted and any unpaid interest (including Additional Interest, if any)
accrued on such Debt Securities from the time of such conversion, and such Debt Securities
shall be extinguished.

     No fractional shares of Common Stock shall be issued as a result of conversion, but in
lieu thereof, the Company shall pay to the Conversion Agent a cash adjustment in an amount
equal to the same fraction of the Conversion Price, and the Conversion Agent in turn shall
make such payment, if any, to the Capital Securities Holder so converted.

     In the event of the conversion of any Debt Security in part only, a new Debt Security
or Debt Securities for the unconverted portion thereof shall be issued in the name of the
Securityholder thereof upon the cancellation thereof in accordance with Section 2.05.

     In effecting the conversion transactions described in this Section, the Conversion
Agent is acting as agent of the Capital Securities Holders (in the exchange of Capital
Securities for Debt Securities) and as agent of the Securityholders (in the conversion of
Debt Securities into Common Stock), as the case may be, directing it to effect such
conversion transactions. The Conversion Agent is hereby authorized (a) to exchange Capital
Securities for Debt Securities held by the Trust from time to time in connection with the
conversion of such Capital Securities in accordance with this Section 2.14, and (b) to
automatically convert all or a portion of the Debt Securities into Common Stock and
thereupon to deliver such shares of Common Stock in accordance with the provisions of this
Section 2.14 and the Declaration and to deliver to the Trust a new Debt Security or Debt
Securities for any resulting unconverted principal amount.

     (d) The Conversion Price shall be subject to adjustment (without duplication) from time
to time as follows:

     (i) While any of the Debt Securities are outstanding, in case the (A) the
Company shall pay a dividend or make a distribution with respect to its Common Stock
in shares of Common Stock; (B) the Company or any of its subsidiaries subdivides,
splits or combines its outstanding shares of Common Stock; (C) the Company or any of
its subsidiaries issues to all holders of the shares of Common Stock (and does not
make the equivalent issuance to the Holders of the Debt Securities) rights or
warrants (other than rights or warrants issued pursuant to a dividend reinvestment
plan or share purchase plan or other similar plans) entitling them, for a period of
up to 180 days (or any shorter period) from the date of issuance of such rights or
warrants, to subscribe for or purchase shares of Common Stock at less than the
Current Market Price on the date fixed for the determination of stockholders
entitled to receive such rights or warrants; or (D) the Company or any of its
subsidiaries successfully completes a tender or exchange offer for the Common Stock
(and does not make the equivalent offer to the Holders of the Debt Securities) where
the cash and the value of any other consideration included in the payment per share
of the Common Stock exceeds

21

 

the Closing Price per share of the Common Stock on the Trading Day immediately
succeeding the expiration of the tender or exchange offer, then the Conversion Price
shall be equitably adjusted giving appropriate cumulative effect to the action or
actions set forth in (A) through (D) above as reasonably agreed by the Company and
the Holders of the Capital Securities on the Conversion Date in the manner described
in Section 2.14(f). An adjustment made pursuant to this Section 2.14(d)(i) shall
become effective on the Conversion Date; provided, however, that in the event that
such action described in (A) through (D) above is not effected, the Conversion Price
shall again be adjusted to be the Conversion Price which would then be in effect but
for such proposed transaction. If, as a result of an adjustment made pursuant to
this Section 2.14(d)(i), the holder of any Debt Security thereafter surrendered for
conversion shall become entitled to receive shares of two or more classes or series
of capital stock of the Company, the Board of Directors (whose determination shall
be conclusive and shall be described in a Board Resolution filed with the Trustee)
shall determine the allocation of the adjusted Conversion Price between or among
shares of such classes or series of capital stock.

     (ii) To the extent that the Company has a rights plan in effect with respect to
the Common Stock on the Conversion Date, upon conversion of any of the Debt
Securities, Holders will receive, in addition to the shares of Common Stock, the
rights under the rights plan, unless, prior to the Conversion Date, the rights have
separated from the shares of Common Stock, in which case the Conversion Price will
be adjusted at the time of separation as if the Company had made a distribution to
all holders of the Common Stock as described in clause (i) above, subject to
readjustment in the event of the expiration, termination or redemption of such
rights.

     (iii) The Company may make such decrease in the Conversion Price, in addition
to that required by Section 2.14(d)(i) and (ii), as it considers to be advisable to
avoid or diminish any income tax to holders of Common Stock or rights to purchase
Common Stock resulting from any dividend or distribution of stock (or rights to
acquire stock) or from any event treated as such for income tax purposes.

     (e) In the event that the Company shall be a party to any transaction, including,
without limitation, (i) recapitalization or reclassification of the Common Stock (other than
a change in par value), or from par value to no par value, or from no par value to par
value, or as a result of a subdivision or combination of the Common Stock); or (ii) any
compulsory share exchange, in each case pursuant to which the Common Stock is converted into
the right to receive other securities, cash or other property, then lawful provision shall
be made as part of the terms of such transaction whereby the holder of each Debt Security
then outstanding shall have the right thereafter to convert each Debt Security only into the
kind and amount of securities, cash or other property, receivable upon consummation of such
transaction by a holder of the number of shares of Common Stock of the Company into which
such Debt Security could have been converted immediately prior to such transaction.

22

 

     The Company or the Person formed by such consolidation or resulting from such merger or
which acquired such assets or which acquires the shares of the Company, as the case may be,
shall make provision in its certificate or articles of incorporation or other constituent
document to establish such right. Such certificate or articles of incorporation or other
constituent document shall provide for adjustments which, for events subsequent to the
effective date of such certificate or articles of incorporation or other constituent
document, shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section 2.14. The above provisions shall similarly apply to successive
transactions of the foregoing type.

     (f) On the Conversion Date, the Company shall compute the adjusted Conversion Price and
shall prepare a certificate signed by the Chairman of the Board, President, Chief Executive
Officer, Chief Financial Officer or Vice President of the Company and by its Chief Financial
Officer, Treasurer or an Assistant Treasurer of the Company setting forth the adjusted
Conversion Price and showing in reasonable detail the facts upon which such adjustment is
based (including, without limitation, describing the adjustments, if any, that were made
with respect to the Stock Price and all the components of that definition, and the facts
upon which such adjustments were based). Upon approval of such certificate by the Holders
of at least a majority in liquidation amount of the Capital Securities being converted, the
certificate shall forthwith be filed with the Trustee, the Conversion Agent and the transfer
agent for the Trust Securities and the Debt Securities and notice stating that the
Conversion Price has been adjusted and setting forth the adjusted Conversion Price shall as
soon as practicable be mailed by the Company to all record Trust Securities Holders and
Securityholders at their last addresses as they appear upon the stock transfer books of the
Company and the Trust.

     (g) In case:

     (i) the Company shall authorize a tender or exchange offer that would require
an adjustment pursuant to Section 2.14(d)(i);

     (ii) of any reclassification of Common Stock (other than a subdivision or
combination of the outstanding Common Stock, or a change in par value, or from par
value to no par value, or from no par value to par value) or any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or other
property; or

     (iii) of the voluntary or involuntary dissolution, liquidation or winding up of
the Company;

then the Company shall (1) if any Trust Securities are outstanding, cause to be filed with
the transfer agent for the Trust Securities, and shall cause to be mailed to the Trust
Securities Holders, at their last addresses as they shall appear upon the Security Register
of the Trust; or (2) shall cause to be mailed to all Securityholders at their last addresses
as they shall appear in the Security Register, at least 15 days prior to the applicable
record or effective date hereinafter specified, a notice stating the date on which such
reclassification, consolidation, merger, sale, transfer, share exchange, dissolution,

23

 

liquidation or winding up is expected to become effective, and the date as of which it is
expected that holders of Common Stock of record shall be entitled to exchange their shares
of Common Stock for securities, cash or other property deliverable upon such
reclassification, transfer, share exchange, dissolution, liquidation or winding up (but no
failure to mail such notice or any defect therein or in the mailing thereof shall affect the
validity of the corporate action required to be specified in such notice).

     (h) Notwithstanding anything to the contrary contained herein, the Conversion Price
shall not be adjusted:

     (A) if Holders may participate in the transaction that would otherwise
give rise to an adjustment, as a result of holding the Debt Securities,
without having to convert the Debt Securities, as if they held the full
number of shares of Common Stock into which a Debt Security may then be
converted;

     (B) upon the issuance of any shares of Common Stock pursuant to any
present or future plan providing for the reinvestment of dividends or
interest payable on the Company’s securities and the investment of
additional optional amounts in shares of Common Stock under any plan;

     (C) upon the issuance of any shares of Common Stock or rights or
warrants to purchase those shares pursuant to any present or future
employee, director or consultant benefit plan or program of or assumed by
the Company or any of its subsidiaries;

     (D) upon the issuance of any shares of Common Stock pursuant to any
employee benefit plan or program of the Company or any option, warrant,
right or exercisable, exchangeable or convertible security outstanding as of
the date the Debt Securities were first issued and not substantially amended
thereafter;

     (E) for a change in the par value or no par value of Common Stock; or

     (F) in the case of the issuance of any stock (or debentures convertible
into or exchangeable for stock) of the Company except as specifically
described in this Section 2.14.

     (i) Neither the Trustee nor any Conversion Agent shall at any time be under any duty or
responsibility to any Securityholder to determine whether any facts exist which may require
any adjustment of the Conversion Price, or with respect to the nature or extent of any such
adjustment when made, or with respect to the method employed, herein or in any supplemental
indenture provided to be employed, in making the same. Neither the Trustee nor any
Conversion Agent shall be accountable with respect to the validity or value (or the kind of
account) of any shares of Common Stock or of any securities or property, which may at any
time be issued or delivered upon the conversion of any Debt Security; and neither the
Trustee nor any Conversion Agent makes any

24

 

representation with respect thereto. Neither the Trustee nor any Conversion Agent
shall be responsible for any failure of the Company to make any cash payment or to issue,
transfer or deliver any shares of Common Stock or stock certificates or other securities or
property upon the surrender of any Debt Security for the purpose of conversion, or, except
as expressly herein provided, to comply with any of the covenants of the Company contained
in Article III or this Section 2.14.

     (j) The Company shall at all times reserve and keep available out of its authorized and
unissued Common Stock, solely for issuance upon the conversion of the Debt Securities, free
from any preemptive or other similar rights, such number of such shares of Common Stock as
shall from time to time be issuable upon the conversion of all of the Debt Securities then
outstanding. Notwithstanding the foregoing, the Company shall be entitled to deliver, upon
conversion of Debt Securities, shares of Common Stock reacquired and held in the treasury of
the Company (in lieu of the issuance of authorized and unissued shares of Common Stock), so
long as any such treasury shares are free and clear of all liens, charges, security
interests or encumbrances. Any shares of Common Stock issued upon conversion of the Debt
Securities shall be duly authorized, validly issued, fully paid and nonassessable. Each of
the Company and the Trust shall prepare and shall use its best efforts to obtain and keep in
force such governmental or regulatory permits or other authorizations as may be required by
law, and shall comply with all applicable requirements as to registration or qualification
of the Common Stock issuable upon conversion of Debt Securities (and all requirements to
list such Common Stock on any national securities exchange or quotation system that are at
the time applicable), to enable the Company lawfully to issue Common Stock to the
Securityholders upon such conversion.

     (k) The Company shall pay any and all taxes that may be payable in respect of the
issuance or delivery of shares of Common Stock on conversion of Debt Securities. The
Company shall not, however, be required to pay any tax that may be payable in respect of any
transfer involved in the issuance and delivery of shares of Common Stock in a name other
than that in which the Capital Securities so converted were registered, and no such issue or
delivery shall be made unless and until the Person requesting such issue has paid to the
Company the amount of any such tax or has established to the satisfaction of the Company
that such tax has been paid.

     (l) Nothing in the preceding Section 2.14(k) shall limit the requirement of the Company
to withhold taxes pursuant to the terms of the Debt Securities or as otherwise set forth in
this Indenture or otherwise require the Trustee or the Company to pay any amounts on account
of such withholding.

     Section 2.15. Global Debt Securities. The Debt Securities will initially be issued in the
form of one or more definitive Debt Securities. Solely upon the election of the holder of
Outstanding Debt Securities, which election need not be in writing, the definitive Debt Securities
owned by such holder shall be exchanged for Debt Securities issued in the form of one or more
Global Debt Securities registered in the name of the Depositary or its nominee. Each Global
Debenture issued under this Indenture shall be registered in the name of the Depositary designated
by the Company for such Global Debt Security or a nominee thereof and delivered to

25

 

such Depositary or a nominee thereof or custodian therefor, and each such Global Debt Security
shall constitute a single Debt Security for all purposes of this Indenture. The Company agrees to
cause this Indenture to be amended to include the terms applicable to such Global Debt Securities
at the time of such election by the Securityholder.

ARTICLE III

PARTICULAR COVENANTS OF THE COMPANY

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

     (a) The Company covenants and agrees that it will duly and punctually pay or cause to
be paid the principal of and premium, if any, and interest and any Additional Interest and
other payments on the Debt Securities at the place, at the respective times and in the
manner provided in this Indenture and the Debt Securities. At the option of the Company,
each installment of interest on the Debt Securities may be paid (i) by mailing checks for
such interest payable to the order of the Securityholders entitled thereto as they appear on
the Debt Security Register if a request for a wire transfer has not been received by the
Company; or (ii) by wire transfer to any account with a banking institution located in the
United States designated in writing by such Securityholders to the Paying Agent no later
than the related record date. Notwithstanding the foregoing, so long as the holder of any
Debt Security is the Institutional Trustee, the payment of the principal of and interest on
such Debt Security will be made in immediately available funds at such place and to such
account as may be designated by the Institutional Trustee.

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

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

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

26

 

any, or interest on, or repurchase or redeem, any of its debt securities that rank pari
passu in all respects with (or junior in interest to) the Debt Securities.

     Section 3.02. Offices for Notices and Payments, Etc. So long as any of the Debt Securities
remain outstanding, the Company will maintain an office or agency where the Debt Securities may be
presented for payment, an office or agency where the Debt Securities may be presented for
registration of transfer and for exchange as provided in this Indenture and an office or agency
where notices and demands to or upon the Company in respect of the Debt Securities or of this
Indenture may be served. The Company will give to the Trustee written notice of the location of
any such office or agency and of any change of location thereof. Until otherwise designated from
time to time by the Company in a notice to the Trustee, or specified as contemplated by
Section 2.05, such office or agency for all of the above purposes shall be the office or agency of
the Trustee at the address set forth in Section 14.04. In case the Company shall fail to maintain
any such office or agency, or shall fail to give such notice of the location or of any change in
the location thereof, presentations and demands may be made and notices may be served at the
Principal Office of the Trustee.

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

     Section 3.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 6.09, a Trustee, so that there shall at all times be a Trustee hereunder.

     Section 3.04. Provision as to Paying Agent.

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

     (i) that it will hold all sums held by it as such agent for the payment of the
principal of and premium, if any, or interest, if any, on the Debt Securities
(whether such sums have been paid to it by the Company or by any other obligor on
the Debt Securities) in trust for the benefit of the Securityholders;

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

27

 

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

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

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

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

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

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

     Section 3.05. Certificate to Trustee. The Company will deliver to the Trustee on or before
120 days after the end of each fiscal year, so long as Debt Securities are outstanding hereunder, a
Certificate stating that in the course of the performance by the signers of their duties as
officers of the Company they would normally have knowledge of any default by the Company in the
performance of any covenants of the Company contained herein, stating whether or not they have
knowledge of any such default and, if so, specifying each such default of which the signers have
knowledge and the nature and status thereof. A form of such Certificate is attached hereto as
Exhibit B.

     Section 3.06. Additional Interest. If and for so long as the Trust is the holder of all Debt
Securities and the Trust is subject to or otherwise required to pay, or is required to withhold
from distributions to holders of Trust Securities, any additional taxes (including withholding

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

     Section 3.07. Compliance With Consolidation Provisions. The Company will not, while any of
the Debt Securities remain outstanding, consolidate with, or merge into any other Person, or merge
into itself, or sell, convey, transfer or otherwise dispose of all or substantially all of its
property or capital stock to any other Person unless the provisions of Article XI hereof are
complied with.

     Section 3.08. Limitation on Dividends. If Debt Securities are initially issued to the Trust
or a trustee of such Trust in connection with the issuance of Trust Securities by the Trust
(regardless of whether Debt Securities continue to be held by such Trust) and (a) there shall have
occurred and be continuing an Event of Default; (b) the Company shall be in default with respect to
its payment of any obligations under the Capital Securities Guarantee; or (c) the Company shall
have given notice of its election to defer payments of interest on the Debt Securities by extending
the Payment Period as provided herein and such 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 of the Company’s
capital stock; or (ii) make any payment of principal of or interest or premium, if any, on or
repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects
with or junior in interest to the Debt Securities or (iii) make any payment under any guarantees of
the Company that rank pari passu in all respects with or junior in interest to the Capital
Securities Guarantee (other than (A) repurchases, redemptions or other acquisitions of shares of
capital stock of the Company (I) in connection with any employment contract, benefit plan or other
similar arrangement with or for the benefit of one or more employees, officers, directors or
consultants, (II) in connection with a dividend reinvestment or stockholder stock purchase plan or
(III) in connection with the issuance of capital stock of the Company (or securities convertible
into or exercisable for such capital stock), as consideration in an acquisition transaction entered
into prior to the occurrence of (i), (ii) or (iii) above, (B) as a result of any exchange,
reclassification, combination or conversion of any class or series of the Company’s capital stock

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(or any capital stock of a subsidiary of the Company) for any class or series of the Company’s
capital stock or of any class or series of the Company’s indebtedness for any class or series of
the Company’s capital stock, (C) the purchase of fractional interests in shares of the Company’s
capital stock pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, (D) any declaration of a dividend in connection with any
stockholder’s rights plan, or the issuance of rights, stock or other property under any
stockholder’s rights plan, or the redemption or repurchase of rights pursuant thereto, or (E) any
dividend in the form of stock, warrants, options or other rights where the dividend stock or the
stock issuable upon exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari passu with or junior to such stock and any cash
payments in lieu of fractional shares issued in connection therewith; or (F) payments under the
Capital Securities Guarantee).

     Section 3.09. Covenants as to the Trust. For so long as the Trust Securities remain
outstanding, the Company shall maintain 100% ownership of the Common Securities; provided, however,
that any permitted successor of the Company under this Indenture that is a U.S. Person may succeed
to the Company’s ownership of such Common Securities. The Company, as owner of the Common
Securities, shall use commercially reasonable efforts to except in connection with a distribution
of Debt Securities to the holders of Trust Securities in liquidation of the Trust, the redemption
of all of the Trust Securities or certain mergers, consolidations or amalgamations, each as
permitted by the Declaration, cause the Trust (a) to remain a statutory trust, (b) to otherwise
continue to be classified as a grantor trust for United States federal income tax purposes, and (c)
to cause each holder of Trust Securities to be treated as owning an undivided beneficial interest
in the Debt Securities.

ARTICLE IV

SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE

TRUSTEE

     Section 4.01. Securityholders’ Lists. The Company covenants and agrees that it will furnish
or cause to be furnished to the Trustee:

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

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

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

     Section 4.02. Preservation and Disclosure of Lists.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the Securityholders (1)

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contained in the most recent list furnished to it as provided in Section 4.01, or (2)
received by it in the capacity of Debt Security Registrar (if so acting) hereunder. The
Trustee may destroy any list furnished to it as provided in Section 4.01 upon receipt of a
new list so furnished.

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

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

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

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

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

     Section 4.03. Financial and Other Information. The Company shall deliver to each
Securityholder (1) each Report on Form 10-K and Form 10-Q prepared by the Company and filed with
the Securities and Exchange Commission in accordance with the Exchange Act within 7 days after the
filing thereof, (2) if the Company is not then (y) subject to Section 13 or 15(d) of the Exchange
Act or (z) exempt from reporting pursuant to Rule 12g3-2(b) thereunder, the Company shall be
required to provide within 45 days of the end of each calendar quarterly period and 90 days after
the end of each calendar year, the information required to be provided by Rule 144A(d)(4) under the
Securities Act and (3) within 30 days after the end of the fiscal year of the Company, Form 1099 or
such other annual U.S. federal income tax information statement required by the Code containing
such information with regard to the Debt Securities held by such Securityholder as is required by
the Code and the income tax regulations of the U.S. Treasury thereunder.

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF

DEFAULT

     Section 5.01. Events of Default. “Event of Default,” wherever used herein, means 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) the Company defaults in the payment of any interest upon any Debt Security when it
becomes due and payable (unless the Company has elected and may defer interest payments
pursuant to Section 2.11), and continuance of such default for a period of 30 days; for the
avoidance of doubt, an extension of any Payment Period by the Company in accordance with
Section 2.11 of this Indenture shall not constitute a default under this clause 5.01(a); or

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

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

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     (d) the Company defaults in the performance of, or breaches, any of its covenants or
agreements in Sections 3.06, 3.07, 3.08 or 3.09 of this Indenture (other than a covenant or
agreement a default in whose performance or whose breach is elsewhere in this Section
specifically dealt with), and continuance of such default or breach for a period of 60 days
after there has been given, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the holders of at least 25% in aggregate principal
amount of the outstanding Debt Securities, a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or

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

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

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

     If an Event of Default specified under clause (c) of this Section 5.01 occurs and is
continuing with respect to the Debt Securities, then, and in each and every such case, unless the
principal of the Debt Securities shall have already become due and payable, either the Trustee or
the holders of not less than 25% in aggregate principal amount of the Debt Securities then
outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal of the Debt Securities and any premium and
interest accrued, but unpaid, thereon, if any, to be due and payable immediately, and upon any such
declaration the same shall become immediately due and payable. If an Event of Default specified
under clause (e), (f) or (g) of this Section 5.01 occurs and is continuing with respect to the Debt
Securities, then, and in each and every such case, the entire principal amount of the Debt
Securities and any premium and interest accrued, but unpaid, thereon shall ipso facto become
immediately due and payable without further action. Notwithstanding anything to the contrary in
this Section 5.01, if at any time during the period in which this Indenture remains in force and
effect, the Company ceases or elects to cease to be subject to the supervision and

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regulations of the Federal Reserve, OTS, OCC or similar regulatory authority overseeing bank,
thrift, savings and loan or financial holding companies or similar institutions requiring
specifications for the treatment of capital similar in nature to the capital adequacy guidelines
under the Federal Reserve rules and regulations, then the first sentence of this paragraph shall be
deemed to include clauses (a), (b) and (d) under this Section 5.01 as an Event of Default resulting
in an acceleration of payment of the Debt Securities to the same extent as provided herein for
clause (c).

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

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

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

     Section 5.02. Payment of Debt Securities on Default; Suit Therefor. The Company covenants
that upon the occurrence of an Event of Default pursuant to paragraphs (c), (e), (f) or

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(g) of Section 5.01, and upon demand of the Trustee, the Company will pay to the Trustee, for
the benefit of the Securityholders, the whole amount that then shall have become due and payable on
all Debt Securities including Deferred Interest accrued on the Debt Securities (to the extent that
payment of such interest is enforceable under applicable law and, if the Debt Securities are held
by the Trust or a trustee of such Trust, without duplication of any other amounts paid by the Trust
or a trustee in respect thereof); and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including a reasonable compensation to
the Trustee, its agents, attorneys and counsel, and any other amounts due to the Trustee under
Section 6.06. In case the Company shall fail forthwith to pay such amounts upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to
institute any actions or proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may
enforce any such judgment or final decree against the Company or any other obligor on such Debt
Securities and collect in the manner provided by law out of the property of the Company or any
other obligor on such Debt Securities wherever situated the moneys adjudged or decreed to be
payable.

     In case there shall be pending proceedings for the bankruptcy or for the reorganization of the
Company or any other obligor on the Debt Securities under Bankruptcy Law, or in case a receiver or
trustee shall have been appointed for the property of the Company or such other obligor, or in the
case of any other similar judicial proceedings relative to the Company or other obligor upon the
Debt Securities, or to the creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Debt Securities shall then be due and payable as
therein expressed or by declaration of acceleration or otherwise and irrespective of whether the
Trustee shall have made any demand pursuant to the provisions of this Section 5.02, shall be
entitled and empowered, by intervention in such proceedings or otherwise:

     (a) to file and prove a claim or claims for the whole amount of principal and interest
owing and unpaid in respect of the Debt Securities;

     (b) in case of any judicial proceedings, to file such proofs of claim and other papers
or documents as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for reasonable compensation to the Trustee and each predecessor
Trustee, and their respective agents, attorneys and counsel, and for reimbursement of all
other amounts due to the Trustee under Section 6.06), and of the Securityholders allowed in
such judicial proceedings relative to the Company or any other obligor on the Debt
Securities, or to the creditors or property of the Company or such other obligor, unless
prohibited by applicable law and regulations, to vote on behalf of the Securityholders in
any election of a trustee or a standby trustee in arrangement, reorganization, liquidation
or other bankruptcy or insolvency proceedings or Person performing similar functions in
comparable proceedings;

     (c) to collect and receive any moneys or other property payable or deliverable on any
such claims; and

     (d) to distribute the same after the deduction of its charges and expenses.

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

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

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

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

     Section 5.03. Application of Moneys Collected by Trustee. Any moneys collected by the
Trustee or otherwise distributed pursuant to this Article V shall be applied in the following
order, at the date or dates specified pursuant hereto for the payment of such moneys, upon
presentation of the several Debt Securities in respect of which moneys have been collected, and
stamping thereon the payment, if only partially paid, and upon surrender thereof if fully paid:

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

     SECOND, to the payment of all Senior Indebtedness of the Company if and to the extent
required by Article XV;

     THIRD, to the payment of the amounts then due and unpaid upon Debt Securities for
principal (and premium, if any), and interest on the Debt Securities, in respect of which or
for the benefit of which money has been collected, ratably, without preference or priority
of any kind, according to the amounts due on such Debt Securities; and

     FOURTH, the balance, if any, to the Company.

     Section 5.04. Proceedings by Securityholders. No Securityholder shall have any right to
institute any suit, action or proceeding for any remedy hereunder, unless such Securityholder
previously shall have given to the Trustee written notice of an Event of Default with respect to
the Debt Securities and unless the holders of not less than 25% in aggregate principal amount of

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the Debt Securities then outstanding shall have given the Trustee a written request to
institute such action, suit or proceeding and shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities to be incurred thereby, and
the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have
failed to institute any such action, suit or proceeding; provided, that no Securityholder shall
have any right to prejudice the rights of any other Securityholder, obtain priority or preference
over any other such Securityholder or enforce any right under this Indenture except in the manner
herein provided and for the equal, ratable and common benefit of all Securityholders.

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

     Section 5.05. Proceedings by Trustee. In case of an Event of Default hereunder the Trustee
may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by
such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any of such rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to
enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

     Section 5.06. Remedies Cumulative and Continuing; Delay or Omission Not a Waiver. Except as
otherwise provided in Section 2.06, all powers and remedies given by this Article V to the Trustee
or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not
exclusive of any other powers and remedies available to the Trustee or the Securityholders, by
judicial proceedings or otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture or otherwise established with respect to the Debt
Securities, and no delay or omission of the Trustee or of any Securityholder to exercise any right,
remedy or power accruing upon any Event of Default occurring and continuing as aforesaid shall
impair any such right, remedy or power, or shall be construed to be a waiver of any such default or
an acquiescence therein; and, subject to the provisions of Section 5.04, every power and remedy
given by this Article V or by law to the Trustee or to the Securityholders may be exercised from
time to time, and as often as shall be deemed expedient, by the Trustee (in accordance with its
duties under Section 6.01) or by the Securityholders.

     Section 5.07. Direction of Proceedings and Waiver of Defaults by Majority of Securityholders.
The holders of a majority in aggregate principal amount of the Debt Securities affected (voting as
one class) at the time outstanding and, if the Debt Securities are held by the Trust or a trustee
of the Trust, the holders of a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust shall have the right to direct the time, method, and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred
on the Trustee with respect to such Debt Securities; provided, however,

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that if the Debt Securities are held by the Trust or a trustee of the Trust, such time, method
and place or such exercise, as the case may be, may not be so directed until the holders of a
majority in aggregate liquidation amount of the outstanding Capital Securities of the Trust shall
have directed such time, method and place or such exercise, as the case may be; provided, further,
however, that (subject to the provisions of Section 6.01) the Trustee shall have the right to
decline to follow any such direction if the Trustee shall determine that the action so directed
would be unjustly prejudicial to the holders not taking part in such direction or if the Trustee
being advised by counsel determines that the action or proceeding so directed may not lawfully be
taken or if a Responsible Officer of the Trustee shall determine that the action or proceedings so
directed would involve the Trustee in personal liability.

     Prior to any declaration of acceleration, or ipso facto acceleration, of the maturity of the
Debt Securities, the holders of a majority in aggregate principal amount of the Debt Securities at
the time outstanding may on behalf of the holders of all of the Debt Securities waive (or modify
any previously granted waiver of) any past default or Event of Default, and its consequences,
except a default (a) in the payment of principal of, premium, if any, or interest on any of the
Debt Securities; (b) in respect of covenants or provisions hereof which cannot be modified or
amended without the consent of the Securityholder affected; or (c) in respect of the covenants
contained in Section 3.09; provided, however, that if the Debt Securities are held by the Trust or
a trustee of the Trust, such waiver or modification to such waiver shall not be effective until the
holders of a majority in Liquidation Amount of the Trust Securities of the Trust shall have
consented to such waiver or modification to such waiver; provided, further, that if the consent of
the holder of each outstanding Debt Security is required, such waiver or modification to such
waiver shall not be effective until each holder of the outstanding Capital Securities of the Trust
shall have consented to such waiver or modification to such waiver. Upon any such waiver or
modification to such waiver, the Default or Event of Default covered thereby shall be deemed to be
cured for all purposes of this Indenture and the Company, the Trustee and the Securityholders shall
be restored to their former positions and rights hereunder, respectively; but no such waiver or
modification to such waiver shall extend to any subsequent or other Default or Event of Default or
impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall have
been waived as permitted by this Section, said Default or Event of Default shall for all purposes
of the Debt Securities and this Indenture be deemed to have been cured and to be not continuing.

     Section 5.08. Notice of Defaults. The Trustee shall, within 30 days after the actual
knowledge (through written notice or otherwise) by a Responsible Officer of the Trustee of the
occurrence of a Default with respect to the Debt Securities, mail to all Securityholders, as the
names and addresses of such Securityholders appear upon the Debt Security Register, notice of all
Defaults with respect to the Debt Securities known to the Trustee, unless such defaults shall have
been cured before the giving of such notice (the term “defaults” for the purpose of this Section
5.08 being hereby defined to be the events specified in Sections 5.01(a), (b), (c), (d), (e), (f)
and (g) including periods of grace, if any, provided for therein); provided, however, that, except
in the case of default in the payment of the principal of, premium, if any, or interest on any of
the Debt Securities, the Trustee shall be protected in withholding such notice if and so long as a
Responsible Officer of the Trustee in good faith determines that the withholding of such notice is
in the interests of the Securityholders.

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

ARTICLE VI

CONCERNING THE TRUSTEE

     Section 6.01. Duties and Responsibilities of Trustee. With respect to the Securityholders
issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the
Debt Securities and after the curing or waiving of all Events of Default which may have occurred,
with respect to the Debt Securities, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants shall be read into this
Indenture against the Trustee. In case an Event of Default with respect to the Debt Securities has
occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the conduct of such person’s
own affairs.

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

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

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

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

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

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

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

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

     None of the provisions contained in this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if there is ground for believing that the
repayment of such funds or liability is not assured to it under the terms of this Indenture or
indemnity satisfactory to the Trustee against such risk is not reasonably assured to it.

     Any of the rights, protections and indemnities that the Trustee is entitled to under this
Indenture shall extend to the Trustee in each other role as the Trustee may serve hereunder.

     Section 6.02. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section
6.01:

     (a) the Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, bond, note, debenture, or other paper or document

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believed by it in good faith to be genuine and to have been signed or presented by the
proper party or parties;

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

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

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

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

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

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

     Section 6.03. No Responsibility for Recitals, Etc. The recitals contained herein and in the
Debt Securities (except in the certificate of authentication of the Trustee or the

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

     Section 6.04. Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar May
Own Debt Securities. The Trustee or any Authenticating Agent or any Paying Agent or any transfer
agent or any Debt Security Registrar, in its individual or any other capacity, may become the owner
or pledgee of Debt Securities and may otherwise deal with the Company or an affiliate of the
Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, transfer agent or Debt Security Registrar.

     Section 6.05. Moneys To Be Held in Trust. Subject to the provisions of Section 12.04, all
moneys received by the Trustee or any Paying Agent shall, until used or applied as herein provided,
be held in trust for the purpose for which they were received, but need not be segregated from
other funds except to the extent required by law. The Trustee and any Paying Agent shall be under
no liability for interest on any money received by it hereunder except as otherwise agreed in
writing with the Company. So long as no Event of Default shall have occurred and be continuing,
all interest allowed on any such moneys, if any, shall be paid from time to time to the Company
upon the written order of the Company, signed by the Chairman of the Board of Directors, the Chief
Executive Officer, the President, the Chief Financial Officer, the Chief Operating Officer, a Vice
President, the Treasurer or an Assistant Treasurer of the Company.

     Section 6.06. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
from time to time, and the Trustee shall be entitled to, such compensation as shall be agreed to in
writing between the Company (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) and the Company further covenants and
agrees to pay or reimburse the Trustee upon its written request for all documented reasonable
expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the reasonable expenses and
disbursements of its counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence, willful misconduct or bad faith.
For purposes of clarification, this Section 6.06 does not contemplate the payment by the Company
of acceptance or annual administration fees owing to the Trustee pursuant to the services to be
provided by the Trustee under this Indenture or the fees and expenses of the Trustee’s counsel in
connection with the closing of the transactions contemplated by this Indenture. The Company also
covenants to indemnify each of the Trustee or any predecessor Trustee (and its officers, agents,
directors and employees) for, and to hold it harmless against, any and all loss, damage, claim,
liability or expense including taxes (other than taxes based on the income of the Trustee) incurred
without negligence, willful misconduct or bad faith on the part of the Trustee and arising out of
or in connection with the acceptance or administration of this Trust, including the costs and
expenses of defending itself against any claim of liability. The obligations of the Company under
this Section 6.06 to

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compensate and indemnify the Trustee and to pay or reimburse the Trustee for documented
expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such
additional indebtedness shall be secured by a lien prior to that of the Debt Securities upon all
property and funds held or collected by the Trustee as such, except funds held in trust for the
benefit of the holders of particular Debt Securities.

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

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

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

     Section 6.07. Officers’ Certificate as Evidence. Except as otherwise provided in
Sections 6.01 and 6.02, whenever in the administration of the provisions of this Indenture the
Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking
or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence, willful misconduct or bad faith on the
part of the Trustee, be deemed to be conclusively proved and established by an Officers’
Certificate delivered to the Trustee, and such certificate, in the absence of negligence, willful
misconduct or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any
action taken or omitted by it under the provisions of this Indenture upon the faith thereof.

     Section 6.08. Eligibility of Trustee. The Trustee hereunder shall at all times be a U.S.
Person that is a corporation, trust company or national banking association organized and doing
business under the laws of the United States of America or any state or territory thereof or of the
District of Columbia or a corporation or other Person authorized under such laws to exercise
corporate trust powers, having (or whose obligations under this Indenture are guaranteed by an
affiliate having) a combined capital and surplus of at least $50,000,000 U.S. and subject to
supervision or examination by federal, state, territorial or District of Columbia authority. If
such corporation, trust company or national banking association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 6.08 the combined capital and surplus of such
corporation, trust company or national banking association shall be deemed to be its combined
capital and surplus as set forth in its most recent records of condition so published.

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

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

     If the Trustee has or shall acquire any “conflicting interest” within the meaning of § 310(b)
of the Trust Indenture Act of 1939, the Trustee shall either eliminate such interest or resign, to
the extent and in the manner provided by, and subject to this Indenture.

     Section 6.09. Resignation or Removal of Trustee.

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

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

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

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

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

then, in any such case, the Company may remove the Trustee and appoint a successor
Trustee by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the Trustee

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so removed and one copy to the successor Trustee, or, subject to the provisions of
Section 5.09, if no successor Trustee shall have been so appointed and have accepted
appointment within 30 days of the occurrence of any of clauses (i), (ii) or (iii)
above, any Securityholder who has been a bona fide holder of a Debt Security or Debt
Securities for at least six months may, on behalf of himself or herself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe, remove
the Trustee and appoint a successor Trustee.

     (c) Upon prior written notice to the Company and the Trustee, the holders of a majority
in aggregate principal amount of the Debt Securities at the time outstanding may at any time
remove the Trustee and nominate a successor Trustee, which shall be deemed appointed as
successor Trustee unless within 10 Business Days after such nomination the Company objects
thereto, in which case, or in the case of a failure by such Securityholders to nominate a
successor Trustee, the Trustee so removed or any Securityholder, upon the terms and
conditions and otherwise as in Section 6.09(a) above, provided, may petition any court of
competent jurisdiction for an appointment of a successor.

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

     Section 6.10. Acceptance by Successor Trustee. Any successor Trustee appointed as provided
in Section 6.09 shall execute, acknowledge and deliver to the Company and to its predecessor
Trustee an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, duties and
obligations with respect to the Debt Securities of its predecessor hereunder, with like effect as
if originally named as Trustee herein; but, nevertheless, on the written request of the Company or
of the successor Trustee, the Trustee ceasing to act shall, upon payment of any amounts then due it
pursuant to the provisions of Section 6.06, execute and deliver an instrument transferring to such
successor Trustee all the rights and powers of the Trustee so ceasing to act and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such retiring Trustee
thereunder. Upon reasonable request of any such successor Trustee, the Company shall execute any
and all instruments in writing for more fully and certainly vesting in and confirming to such
successor Trustee all such rights and powers. Any Trustee ceasing to act shall, nevertheless,
retain a lien upon all property or funds held or collected by such Trustee to secure any amounts
then due it pursuant to the provisions of Section 6.06.

     If a successor Trustee is appointed, the Company, the retiring Trustee and the successor
Trustee shall execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Debt Securities as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor Trustee, and shall add to or
change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the

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administration of the Trust hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and that each such Trustee shall be Trustee of a trust or trusts hereunder separate and
apart from any trust or trusts hereunder administered by any other such Trustee.

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

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

     Upon acceptance of appointment by a successor Trustee as provided in this Section 6.10, the
Company shall mail notice of the succession of such Trustee hereunder to the Securityholders at
their addresses as they shall appear on the Debt Security Register. If the Company fails to mail
such notice within 10 Business Days after the acceptance of appointment by the successor Trustee,
the successor Trustee shall cause such notice to be mailed at the expense of the Company.

     Section 6.11. Succession by Merger, Etc. Any Person into which the Trustee may be merged or
converted or with which it may be consolidated, or any Person resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any Person succeeding to all or
substantially all of the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder without the execution or filing of any paper or any further act on the part of
any of the parties hereto; provided, that such Person shall be otherwise eligible and qualified
under this Article.

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

     Section 6.12. Authenticating Agents. There may be one or more Authenticating Agents
appointed by the Trustee upon the request of the Company with power to act on its behalf and
subject to its direction in the authentication and delivery of Debt Securities issued upon exchange
or registration of transfer thereof as fully to all intents and purposes as though any such
Authenticating Agent had been expressly authorized to authenticate and deliver Debt Securities;
provided, however, that the Trustee shall have no liability to the Company for any acts or
omissions of the Authenticating Agent with respect to the authentication and delivery of Debt
Securities. Any such Authenticating Agent shall at all times be a Person organized and doing

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

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

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

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

ARTICLE VII

CONCERNING THE SECURITYHOLDERS

     Section 7.01. Action by Securityholders. Whenever in this Indenture it is provided that the
holders of a specified percentage in aggregate principal amount of the Debt Securities or aggregate
Liquidation Amount of the Capital Securities may take any action (including the making of any
demand or request, the giving of any notice, consent or waiver or the taking of

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any other action) the fact that at the time of taking any such action the holders of such
specified percentage have joined therein may be evidenced (a) by any instrument or any number of
instruments of similar tenor executed by such Securityholders or holders of Capital Securities, as
the case may be, in person or by agent or proxy appointed in writing, (b) by the record of such
Securityholders voting in favor thereof at any meeting of such Securityholders duly called and held
in accordance with the provisions of Article VIII or of such holders of Capital Securities duly
called and held in accordance with the provisions of the Declaration, (c) by a combination of such
instrument or instruments and any such record of such a meeting of such Securityholders or holders
of Capital Securities, as the case may be, or (d) by any other method the Trustee deems
satisfactory.

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

     Section 7.02. Proof of Execution by Securityholders. Subject to the provisions of
Sections 6.01, 6.02 and 8.05, proof of the execution of any instrument by a Securityholder or such
Securityholder’s agent or proxy shall be sufficient if made in accordance with such reasonable
rules and regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee. The ownership of Debt Securities shall be proved by the Debt Security
Register or by a certificate of the Debt Security Registrar. The Trustee may require such
additional proof of any matter referred to in this Section as it shall deem necessary.

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

     Section 7.03. Who Are Deemed Absolute Owners. Prior to due presentment for registration of
transfer of any Debt Security, the Company, the Trustee, any Authenticating Agent, any Paying
Agent, any transfer agent and any Debt Security Registrar may deem the Person in whose name such
Debt Security shall be registered upon the Debt Security Register to be, and may treat such Person
as, the absolute owner of such Debt Security (whether or not such Debt Security shall be overdue)
for the purpose of receiving payment of or on account of the principal of, premium, if any, and
interest on such Debt Security and for all other purposes; and neither the Company nor the Trustee
nor any Authenticating Agent nor any Paying Agent nor

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any transfer agent nor any Debt Security Registrar shall be affected by any notice to the
contrary. All such payments so made to any Securityholder for the time being or upon such
Securityholder’s order shall be valid, and, to the extent of the sum or sums so paid, effectual to
satisfy and discharge the liability for moneys payable upon any such Debt Security.

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

     Section 7.05. Revocation of Consents; Future Holders Bound. At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 7.01, of the taking of any action by
the holders of the percentage in aggregate principal amount of the Debt Securities specified in
this Indenture in connection with such action, any Securityholder (in cases where no record date
has been set pursuant to Section 7.01) or any holder as of an applicable record date (in cases
where a record date has been set pursuant to Section 7.01) of a Debt Security (or any Debt Security
issued in whole or in part in exchange or substitution therefor) the serial number of which is
shown by the evidence to be included in the Debt Securities the holders of which have consented to
such action may, by filing written notice with the Trustee at the Principal Office of the Trustee
and upon proof of holding as provided in Section 7.02, revoke such action so far as concerns such
Debt Security (or so far as concerns the principal amount represented by any exchanged or
substituted Debt Security). Except as aforesaid any such action taken by the holder of any Debt
Security shall be conclusive and binding upon such Securityholder and upon all future holders and
owners of such Debt Security, and of any Debt Security issued in exchange or substitution therefor
or on registration of transfer thereof, irrespective of whether or not any notation in regard
thereto is made upon such Debt Security or any Debt Security issued in exchange or substitution
therefor.

ARTICLE VIII

SECURITYHOLDERS’ MEETINGS

     Section 8.01. Purposes of Meetings. A meeting of Securityholders may be called at any time
and from time to time pursuant to the provisions of this Article VIII for any of the following
purposes:

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

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

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

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

     Section 8.02. Call of Meetings by Trustee. The Trustee may at any time call a meeting of
Securityholders to take any action specified in Section 8.01, to be held at such time and at such
place as the Trustee shall determine. Notice of every meeting of the Securityholders, setting
forth the time and the place of such meeting and in general terms the action proposed to be taken
at such meeting, shall be mailed to Securityholders affected at their addresses as they shall
appear on the Debt Securities Register and, if the Company is not a Securityholder, to the Company.
Such notice shall be mailed not less than 20 nor more than 180 days prior to the date fixed for
the meeting.

     Section 8.03. Call of Meetings by Company or Securityholders. In case at any time the
Company pursuant to a Board Resolution, or the holders of at least 10% in aggregate principal
amount of the Debt Securities, as the case may be, then outstanding, shall have requested the
Trustee to call a meeting of Securityholders, by written request setting forth in reasonable detail
the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of
such meeting within 20 days after receipt of such request, then the Company or such Securityholders
may determine the time and the place for such meeting and may call such meeting to take any action
authorized in Section 8.01, by mailing notice thereof as provided in Section 8.02.

     Section 8.04. Qualifications for Voting. To be entitled to vote at any meeting of
Securityholders a Person shall (a) be a holder of one or more Debt Securities with respect to which
the meeting is being held; or (b) a Person appointed by an instrument in writing as proxy by a
holder of one or more such Debt Securities. The only Persons who shall be entitled to be present
or to speak at any meeting of Securityholders shall be the Persons entitled to vote at such meeting
and their counsel and any representatives of the Trustee and its counsel and any representatives of
the Company and its counsel.

     Section 8.05. Regulations. Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any meeting of
Securityholders, in regard to proof of the holding of Debt Securities and of the appointment of
proxies, and in regard to the appointment and duties of inspectors of votes, the submission and

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examination of proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall deem appropriate.

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

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

     Section 8.06. Voting. The vote upon any resolution submitted to any meeting of
Securityholders with respect to which such meeting is being held shall be by written ballots on
which shall be subscribed the signatures of such Securityholders or of their representatives by
proxy and the serial number or numbers of the Debt Securities held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes
cast at the meeting for or against any resolution and who shall make and file with the secretary of
the meeting their verified written reports in triplicate of all votes cast at the meeting. A
record in duplicate of the proceedings of each meeting of Securityholders shall be prepared by the
secretary of the meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons
having knowledge of the facts setting forth a copy of the notice of the meeting and showing that
said notice was mailed as provided in Section 8.02. The record shall show the serial numbers of
the Debt Securities voting in favor of or against any resolution. The record shall be signed and
verified by the affidavits of the permanent chairman and secretary of the meeting and one of the
duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting. Any record so
signed and verified shall be conclusive evidence of the matters therein stated.

     Section 8.07. Quorum; Actions. The Persons entitled to vote a majority in principal amount
of the Debt Securities then outstanding shall constitute a quorum for a meeting of Securityholders;
provided, however, that if any action is to be taken at such meeting with respect to a consent,
waiver, request, demand, notice, authorization, direction or other action that may be given by the
holders of not less than a specified percentage in principal amount of the Debt Securities then
outstanding, the Persons holding or representing such specified percentage in principal amount of
the Debt Securities then outstanding will constitute a quorum. In the absence of a quorum within
30 minutes of the time appointed for any such meeting, the meeting

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shall, if convened at the request of Securityholders, be dissolved. In any other case the
meeting may be adjourned for a period of not less than 10 days as determined by the permanent
chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at
any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not
less than 10 days as determined by the permanent chairman of the meeting prior to the adjournment
of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as
provided in Section 8.02, except that such notice need be given only once not less than five days
prior to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of
an adjourned meeting shall state expressly the percentage, as provided above, of the principal
amount of the Debt Securities then outstanding which shall constitute a quorum.

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

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

     Section 8.08. Written Consent Without a Meeting. Whenever under this Indenture,
Securityholders are required or permitted to take any action by vote, such action may be taken
without a meeting on written consent, setting forth the action so taken. No consent shall be
effective to take the action referred to therein unless, within sixty days of the earliest dated
consent delivered in the manner required by this paragraph to the Trustee, written consents signed
by a sufficient number of Securityholders entitled to vote thereon to take action are delivered to
the Trustee at its Principal Office. Delivery made to the Trustee at its Principal Office, shall
be by hand or by certificated or registered mail, return receipt requested. Written consent thus
given by the Securityholders of such number of Debt Securities as is required hereunder, shall have
the same effect as a valid vote of Securityholders of such number of Debt Securities.

ARTICLE IX

SUPPLEMENTAL INDENTURES

     Section 9.01. Supplemental Indentures Without Consent of Securityholders. The Company, when
authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into
an indenture or indentures supplemental hereto, without the consent of the Securityholders, for one
or more of the following purposes:

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

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

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

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

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

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

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

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     (h) to provide for the issuance of Global Debt Securities in place of definitive Debt
Securities and the designation of the Global Debt Securities for trading in the Private
Offering, Resales and Trading through the Automatic Linkages system if available; or

     (i) to permit the qualification hereof and thereof under the Trust Indenture Act or any
similar federal statute hereafter in effect or to permit the qualification of the Capital
Securities for sale under the securities laws of the United States of America or any of the
states of the United States of America, and, if they so determine, to add to this Indenture
such other terms, conditions and provisions as may be permitted or required by said Trust
Indenture Act or similar federal statute.

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

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

     Section 9.02. Supplemental Indentures With Consent of Securityholders. With the consent
(evidenced as provided in Section 7.01) of the holders of not less than a majority in aggregate
principal amount of the Debt Securities at the time outstanding affected by such supplemental
indenture (voting as a class), the Company, when authorized by a Board Resolution, and the Trustee
may from time to time and at any time enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying in any manner the
rights of the Securityholders; provided, however, that no such supplemental indenture shall without
the consent of the holders of each Debt Security then outstanding and affected thereby (i) change
the Maturity Date of any Debt Security, or reduce the principal amount thereof or any premium
thereon, or reduce the rate (or manner of calculation of the rate) or extend the time of payment of
interest thereon, or reduce (other than as a result of the maturity or earlier redemption of any
such Debt Security in accordance with the terms of this Indenture and such Debt Security) or
increase the aggregate principal amount of Debt Securities then outstanding, or change any of the
redemption provisions, or make the principal thereof or any interest or premium thereon payable in
any coin or currency other than United States Dollars, or impair or affect the right of any
Securityholder to institute suit for payment thereof or impair the right of repayment, if any, at
the option of the Securityholder, or (ii) reduce the aforesaid percentage of Debt Securities the
holders of which are required to consent to any such supplemental indenture; and provided further,
that if the Debt Securities are held by the Trust or a trustee of such trust, such supplemental
indenture shall not be effective until the holders of a majority in Liquidation Amount of the
outstanding Capital Securities shall have consented to such supplemental indenture; provided
further, however, that if the consent of the Securityholder of each outstanding Debt Security is
required, such supplemental indenture shall not be effective

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until each holder of the outstanding Capital Securities shall have consented to such
supplemental indenture.

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

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

     It shall not be necessary for the consent of the Securityholders under this Section 9.02 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof.

     Section 9.03. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture pursuant to the provisions of this Article IX, this Indenture shall be and be deemed to
be modified and amended in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the Company and the
Securityholders shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

     Section 9.04. Notation on Debt Securities. Debt Securities authenticated and delivered after
the execution of any supplemental indenture pursuant to the provisions of this Article IX may bear
a notation as to any matter provided for in such supplemental indenture. If the Company or the
Trustee shall so determine, new Debt Securities so modified as to conform, in the opinion of the
Board of Directors of the Company, to any modification of this Indenture contained in any such
supplemental indenture may be prepared and executed by the Company, authenticated by the Trustee or
the Authenticating Agent and delivered in exchange for the Debt Securities then outstanding.

     Section 9.05. Evidence of Compliance of Supplemental Indenture To Be Furnished to Trustee.
The Trustee, subject to the provisions of Sections 6.01 and 6.02, shall, in addition to the
documents required by Section 14.06, receive an Officers’ Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant hereto complies with the
requirements of this Article IX. The Trustee shall receive an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this

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Article IX is authorized or permitted by, and conforms to, the terms of this Article IX and
that it is proper for the Trustee under the provisions of this Article IX to join in the execution
thereof.

ARTICLE X

REDEMPTION OF SECURITIES

     Section 10.01. Optional Redemption. At any time the Company shall have the right, subject to
the receipt by the Company of prior approval from any regulatory authority with jurisdiction over
the Company if such approval is then required under applicable capital guidelines or policies of
such regulatory authority, to redeem the Debt Securities, in whole or (provided that all accrued
and unpaid interest has been paid on all Debt Securities for all Payment Periods terminating on or
prior to such date) from time to time in part, on January 31, 2011 and any March 15, June 15,
September 15 or December 15 on or after January 31, 2011 (each a “Redemption Date”), at the
Redemption Price.

     Section 10.02. Special Event Redemption. If a Special Event shall occur and be continuing,
the Company shall have the right (subject to the receipt by the Company of prior approval from any
regulatory authority with jurisdiction over the Company if such approval is then required under
applicable capital guidelines or policies of such regulatory authority) to redeem the Debt
Securities in whole or in part, at any time within 90 days following the occurrence of such Special
Event (the “Special Redemption Date”) at the Special Redemption Price.

     Section 10.03. Notice of Redemption; Selection of Debt Securities. In case the Company shall
desire to exercise the right to redeem all, or, as the case may be, any part of the Debt
Securities, it shall fix a date for redemption and shall mail, or cause the Trustee to mail (at the
expense of the Company) a notice of such redemption (“Redemption Notice”) at least 30 and not more
than 60 days prior to the date fixed for redemption to the Securityholders so to be redeemed as a
whole or in part at their last addresses as the same appear on the Debt Security Register. Such
mailing shall be by first-class mail. The notice if mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the Securityholder receives such
notice. In any case, failure to give such notice by mail or any defect in the notice to the holder
of any Debt Security designated for redemption as a whole or in part shall not affect the validity
of the proceedings for the redemption of any other Debt Security.

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

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surrender of such Debt Security, a new Debt Security or Debt Securities in principal amount
equal to the unredeemed portion thereof will be issued.

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

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

     Section 10.04. Payment of Debt Securities Called for Redemption. If notice of redemption has
been given as provided in Section 10.03, the Debt Securities or portions of Debt Securities with
respect to which such notice has been given shall become due and payable on the Redemption Date or
the Special Redemption Date (as the case may be) and at the place or places stated in such notice
at the applicable redemption price, together with interest accrued to the date fixed for
redemption, and on and after said Redemption Date or the Special Redemption Date (unless the
Company shall default in the payment of such Debt Securities at the redemption price, together with
unpaid interest accrued thereon to said date) interest on the Debt Securities or portions of Debt
Securities so called for redemption shall cease to accrue. On presentation and surrender of such
Debt Securities at a place of payment specified in said notice, such Debt Securities or the
specified portions thereof shall be paid and redeemed by the Company at the applicable redemption
price, together with unpaid interest accrued thereon to the Redemption Date or the Special
Redemption Date (as the case may be).

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

ARTICLE XI

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

     Section 11.01. Company May Consolidate, etc. On Certain Terms. Nothing contained in this
Indenture or in the Debt Securities shall prevent any consolidation or merger of the Company with
or into any other Person (whether or not affiliated with the Company) or successive consolidations
or mergers in which the Company or its successor or successors shall be a party or parties, or
shall prevent any sale, conveyance, transfer or other disposition of all or substantially all of
the property or capital stock of the Company or its successor or successors, to any other Person
(whether or not affiliated with the Company, or its successor or successors) authorized to acquire
and operate the same; provided, however, that the Company hereby

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covenants and agrees that, upon any such consolidation, merger (where the Company is not the
surviving corporation), sale, conveyance, transfer or other disposition, the due and punctual
payment of the principal of (and premium, if any) and interest on all of the Debt Securities in
accordance with their terms, according to their tenor, and the due and punctual performance and
observance of all the covenants and conditions of this Indenture to be kept or performed by the
Company, shall be expressly assumed by supplemental indenture satisfactory in form to the Trustee
in its reasonable determination executed and delivered to the Trustee by the entity formed by such
consolidation, or into which the Company shall have been merged, or by the entity which shall have
acquired such property.

     Section 11.02. Successor Entity To Be Substituted. In case of any such consolidation,
merger, sale, conveyance, transfer or other disposition contemplated in Section 11.01 and upon the
assumption by the successor entity, by supplemental indenture, executed and delivered to the
Trustee and reasonably satisfactory in form to the Trustee, of the due and punctual payment of the
principal of and premium, if any, and interest on all of the Debt Securities and the due and
punctual performance and observance of all of the covenants and conditions of this Indenture to be
performed or observed by the Company, such successor entity shall succeed to and be substituted for
the Company, with the same effect as if it had been named herein as the Company, and thereupon the
predecessor entity shall be relieved of any further liability or obligation hereunder or upon the
Debt Securities. Such successor entity thereupon may cause to be signed, and may issue in its own
name or in the name of the Company, any or all of the Debt Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the Trustee or the
Authenticating Agent; and, upon the order of such successor entity instead of the Company and
subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee or
the Authenticating Agent shall authenticate and deliver any Debt Securities which previously shall
have been signed and delivered by the officers of the Company, to the Trustee or the Authenticating
Agent for authentication, and any Debt Securities which such successor entity thereafter shall
cause to be signed and delivered to the Trustee or the Authenticating Agent for that purpose. All
the Debt Securities so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Debt Securities theretofore or thereafter issued in accordance with the terms of
this Indenture as though all of such Debt Securities had been issued at the date of the execution
hereof.

     Section 11.03. Opinion of Counsel To Be Given to Trustee. The Trustee, subject to the
provisions of Sections 6.01 and 6.02, shall receive, in addition to the Opinion of Counsel required
by Section 9.05, an Opinion of Counsel as conclusive evidence that any consolidation, merger, sale,
conveyance, transfer or other disposition, and any assumption, permitted or required by the terms
of this Article XI complies with the provisions of this Article XI.

ARTICLE XII

SATISFACTION AND DISCHARGE OF INDENTURE

     Section 12.01. Discharge of Indenture. When the Company shall deliver to the Trustee for
cancellation all Debt Securities theretofore authenticated (other than any Debt Securities which
shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in
Section 2.06) and not theretofore canceled, or all the Debt Securities not theretofore

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canceled or delivered to the Trustee for cancellation shall have become due and payable, or
are by their terms to become due and payable within one year or are to be called for redemption
within one year under arrangements satisfactory to the Trustee for the giving of notice of
redemption, and the Company shall deposit with the Trustee, in trust, funds, which shall be
immediately due and payable, sufficient to pay at maturity or upon redemption all of the Debt
Securities (other than any Debt Securities which shall have been destroyed, lost or stolen and
which shall have been replaced or paid as provided in Section 2.06) not theretofore canceled or
delivered to the Trustee for cancellation, including principal and premium, if any, and interest
due or to become due to such date of maturity or redemption date, as the case may be, but
excluding, however, the amount of any moneys for the payment of principal of, and premium, if any,
or interest on the Debt Securities (a) theretofore repaid to the Company in accordance with the
provisions of Section 12.04; or (b) paid to any state or to the District of Columbia pursuant to
its unclaimed property or similar laws, and if in the case of either clause (a) or (b) the Company
shall also pay or cause to be paid all other sums payable hereunder by the Company, then this
Indenture shall cease to be of further effect except for the provisions of Sections 2.05, 2.06,
2.08, 3.01, 3.02, 3.04, 6.06, 6.08, 6.09 and 12.04 hereof shall survive until such Debt Securities
shall mature or are redeemed, as the case may be, and are paid in full. Thereafter, Sections 6.06
and 12.04 shall survive, and the Trustee, on demand of the Company accompanied by an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of this Indenture have been complied with, and at
the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of
and discharging this Indenture. The Company agrees to reimburse the Trustee for any costs or
expenses thereafter reasonably and properly incurred by the Trustee in connection with this
Indenture or the Debt Securities.

     Section 12.02. Deposited Moneys To Be Held in Trust by Trustee. Subject to the provisions of
Section 12.04, all moneys deposited with the Trustee pursuant to Section 12.01 shall be held in
trust in a non-interest bearing account and applied by it to the payment, either directly or
through any Paying Agent (including the Company if acting as its own Paying Agent), to the holders
of the particular Debt Securities for the payment of which such moneys have been deposited with the
Trustee, of all sums due and to become due thereon for principal, and premium, if any, and
interest.

     Section 12.03. Paying Agent To Repay Moneys Held. Upon the satisfaction and discharge of
this Indenture all moneys then held by any Paying Agent of the Debt Securities (other than the
Trustee) shall, upon demand of the Company, be repaid to the Company or paid to the Trustee, and
thereupon such Paying Agent shall be released from all further liability with respect to such
moneys.

     Section 12.04. Return of Unclaimed Moneys. Any moneys deposited with or paid to the Trustee
or any Paying Agent for payment of the principal of, and premium, if any, or interest on Debt
Securities and not applied but remaining unclaimed by the Securityholders for two years after the
date upon which the principal of, and premium, if any, or interest on such Debt Securities, as the
case may be, shall have become due and payable, shall, subject to applicable escheatment laws, be
repaid to the Company by the Trustee or such Paying Agent on written demand; and the holder of any
of the Debt Securities shall thereafter look only to the Company

59

 

for any payment which such Securityholder may be entitled to collect, and all liability of the
Trustee or such Paying Agent with respect to such moneys shall thereupon cease.

ARTICLE XIII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND

DIRECTORS

     Section 13.01. Indenture and Debt Securities Solely Corporate Obligations. No recourse for
the payment of the principal of or premium, if any, or interest on any Debt Security, or for any
claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in this Indenture or in any supplemental indenture, or in any
such Debt Security, or because of the creation of any indebtedness represented thereby, shall be
had against any incorporator, stockholder, employee, officer, director or agent, as such, past,
present or future, of the Company or of any predecessor or successor Person of the Company, either
directly or through the Company or any successor Person of the Company, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, it being expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this Indenture and the
issue of the Debt Securities.

ARTICLE XIV

MISCELLANEOUS PROVISIONS

     Section 14.01. Successors. All the covenants, stipulations, promises and agreements of the
Company in this Indenture shall bind its successors and assigns whether so expressed or not.

     Section 14.02. Official Acts by Successor Entity. Any act or proceeding by any provision of
this Indenture authorized or required to be done or performed by any board, committee or officer of
the Company shall and may be done and performed with like force and effect by the like board,
committee, officer or other authorized Person of any entity that shall at the time be the lawful
successor of the Company.

     Section 14.03. Surrender of Company Powers. The Company by instrument in writing executed by
authority of at least two-thirds of its Board of Directors and delivered to the Trustee may
surrender any of the powers reserved to the Company and thereupon such power so surrendered shall
terminate both as to the Company, and as to any permitted successor.

     Section 14.04. Addresses for Notices, Etc. Any notice, consent, direction, request,
authorization, waiver or demand which by any provision of this Indenture is required or permitted
to be given, made, furnished or served by the Trustee or by the Securityholders on or to the
Company may be given or served in writing, duly signed by the party giving such notice, and shall
be delivered by facsimile (which shall be followed by notice delivered or mailed by first class
mail) or mailed by first class mail to the Company at:

Flagstar Bancorp, Inc.

5151 Corporate Drive

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Troy, Michigan 48098

Attention: Paul D. Borja

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

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Attention: Corporate Trust Administration

Facsimile: (302) 636-4140

     Any notice, consent, direction, request, authorization, waiver or demand on or to any
Securityholder shall be deemed to have been sufficiently given or made, for all purposes, if given
or made in writing at the address set forth in the Debt Security Register.

     Section 14.05. Governing Law. This Indenture and each Debt Security shall each be governed
by the law of the State of New York, and for all purposes shall be governed by and construed in
accordance with the law of said State, without regard to conflict of laws principles thereof, other
than Section 5-1401 of the New York General Obligations Law.

     Section 14.06. Evidence of Compliance With Conditions Precedent. Upon any application or
demand by the Company to the Trustee to take any action under any of the provisions of this
Indenture, the Company shall furnish to the Trustee an Officers’ Certificate stating that in the
opinion of the signers all conditions precedent, if any, provided for in this Indenture relating to
the proposed action have been complied with and an Opinion of Counsel stating that, in the opinion
of such counsel, all such conditions precedent have been complied with (except that no such Opinion
of Counsel is required to be furnished to the Trustee in connection with the authentication and
issuance of Debt Securities issued on the date of this Indenture).

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

     Section 14.07. Non-Business Days. Notwithstanding anything to the contrary contained herein,
if any Interest Payment Date, other than on the Maturity Date, any Redemption Date or the Special
Redemption Date, falls on a day that is not a Business Day, then any interest payable

61

 

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

     Section 14.08. Table of Contents, Headings, Etc. The table of contents and the titles and
headings of the articles and sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way modify or restrict any
of the terms or provisions hereof.

     Section 14.09. Execution in Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument. A counterpart signed and transmitted electronically or by
facsimile shall be treated as an original.

     Section 14.10. Separability. In case any one or more of the provisions contained in this
Indenture or in the Debt Securities shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any
other provisions of this Indenture or of such Debt Securities, but this Indenture and such Debt
Securities shall be construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

     Section 14.11. Assignment. Subject to Article XI, the Company will have the right at all
times to assign any of its rights or obligations under this Indenture and the Debt Securities to a
direct or indirect wholly owned Subsidiary of the Company; provided, however, that, in the event of
any such assignment, the Company will remain liable for all such obligations. Subject to the
foregoing, this Indenture is binding upon and inures to the benefit of the parties hereto and their
respective successors and assigns. This Indenture may not otherwise be assigned by the parties
hereto.

     Section 14.12. Acknowledgment of Rights. The Company agrees that, with respect to any Debt
Securities held by the Trust or the Institutional Trustee of the Trust, if the Institutional
Trustee of the Trust fails to enforce its rights under this Indenture as the Securityholder held as
the assets of such Trust after the holders of a majority in Liquidation Amount of the Capital
Securities of such Trust have so directed in writing such Institutional Trustee, a holder of record
of such Capital Securities may, to the fullest extent permitted by law, institute legal proceedings
directly against the Company to enforce such Institutional Trustee’s rights under this Indenture
without first instituting any legal proceedings against such Institutional Trustee or any other
Person. Notwithstanding the foregoing, if an Event of Default has occurred and is continuing and
such event is attributable to the failure of the Company to pay interest (or premium, if any) or
principal on the Debt Securities on the date such interest (or premium, if any) or principal is
otherwise due and payable (or in the case of redemption, on the redemption date), the Company
agrees that a holder of record of Capital Securities of the Trust may directly institute a
proceeding against the Company for enforcement of payment to such holder directly of the

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principal of (or premium, if any) or interest on the Debt Securities having an aggregate
principal amount equal to the aggregate Liquidation Amount of the Capital Securities of such holder
on or after the respective due date specified in the Debt Securities.

ARTICLE XV

SUBORDINATION OF DEBT SECURITIES

     Section 15.01. Agreement To Subordinate. The Company covenants and agrees, and each holder
of Debt Securities issued hereunder and under any supplemental indenture (the “Additional
Provisions”) by such Securityholder’s acceptance thereof likewise covenants and agrees, that all
Debt Securities shall be issued subject to the provisions of this Article XV; and each
Securityholder, whether upon original issue or upon transfer or assignment thereof, accepts and
agrees to be bound by such provisions.

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

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

     Section 15.02. Default on Senior Indebtedness. In the event and during the continuation of
any default by the Company in the payment of principal, premium, interest or any other payment due
on any Senior Indebtedness of the Company following any applicable grace period, or in the event
that the maturity of any Senior Indebtedness of the Company has been accelerated because of a
default and such acceleration has not been rescinded or canceled and such Senior Indebtedness has
not been paid in full, then, in either case, no payment shall be made by the Company with respect
to the principal (including redemption) of, or premium, if any, or interest on the Debt Securities.

     In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee
when such payment is prohibited by the preceding paragraph of this Section 15.02, such payment
shall, subject to Section 15.07, be held in trust for the benefit of, and shall be paid over or
delivered to, the holders of Senior Indebtedness or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have
been issued, as their respective interests may appear, but only to the extent that the holders of
the Senior Indebtedness (or their representative or representatives or a trustee) notify the
Trustee in writing within 90 days of such payment of the amounts then due and owing on the Senior
Indebtedness and only the amounts specified in such notice to the Trustee shall be paid to the
holders of Senior Indebtedness.

     Section 15.03. Liquidation, Dissolution, Bankruptcy. Upon any payment by the Company or
distribution of assets of the Company of any kind or character, whether in cash, property or
securities, to creditors upon any dissolution or winding-up or liquidation or

63

 

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

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

     For purposes of this Article XV, the words “cash, property or securities” shall not be deemed
to include shares of stock of the Company as reorganized or readjusted, or securities of the
Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article XV with respect to
the Debt Securities to the payment of all Senior Indebtedness, that may at the time be outstanding;
provided that (a) such Senior Indebtedness is assumed by the new corporation, if any, resulting
from any such reorganization or readjustment; and (b) the rights of the holders of such Senior
Indebtedness are not, without the consent of such holders, altered by such reorganization or
readjustment. The consolidation of the Company with, or the merger of the Company into, another
corporation or the liquidation or dissolution of the Company following the conveyance, transfer or
other disposition of its property as an entirety, or substantially as an entirety, to another
corporation upon the terms and conditions provided for in Article XI of this Indenture shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section if
such other corporation shall, as a part of such consolidation, merger, conveyance or transfer,
comply with the conditions stated in Article XI of this Indenture.

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Nothing in Section 15.02 or in this Section shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 6.06 of this Indenture.

     Section 15.04. Subrogation. Subject to the payment in full of all Senior Indebtedness, the
Securityholders shall be subrogated to the rights of the holders of such Senior Indebtedness to
receive payments or distributions of cash, property or securities of the Company, applicable to
such Senior Indebtedness until the principal of (and premium, if any) and interest on the Debt
Securities shall be paid in full. For the purposes of such subrogation, no payments or
distributions to the holders of such Senior Indebtedness of any cash, property or securities to
which the Securityholders or the Trustee would be entitled except for the provisions of this
Article XV, and no payment over pursuant to the provisions of this Article XV to or for the benefit
of the holders of such Senior Indebtedness by Securityholders or the Trustee, shall, as between the
Company, its creditors other than holders of Senior Indebtedness of the Company, and the
Securityholders be deemed to be a payment or distribution by the Company to or on account of such
Senior Indebtedness. It is understood that the provisions of this Article XV are and are intended
solely for the purposes of defining the relative rights of the Securityholders, on the one hand,
and the holders of such Senior Indebtedness, on the other hand.

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

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

     Section 15.05. Trustee To Effectuate Subordination. Each Securityholder by such
Securityholder’s acceptance thereof authorizes and directs the Trustee on such Securityholder’s
behalf to take such action as may be necessary or appropriate to effectuate the subordination
provided in this Article XV and appoints the Trustee such Securityholder’s attorney-in-fact for any
and all such purposes.

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     Section 15.06. Notice by the Company. The Company shall give prompt written notice to a
Responsible Officer of the Trustee at the Principal Office of the Trustee of any fact known to the
Company that would prohibit the making of any payment of moneys to or by the Trustee in respect of
the Debt Securities pursuant to the provisions of this Article XV. Notwithstanding the provisions
of this Article XV or any other provision of this Indenture or any Additional Provisions, the
Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the
making of any payment of moneys to or by the Trustee in respect of the Debt Securities pursuant to
the provisions of this Article XV, unless and until a Responsible Officer of the Trustee at the
Principal Office of the Trustee shall have received written notice thereof from the Company or a
holder or holders of Senior Indebtedness or from any trustee therefor; and before the receipt of
any such written notice, the Trustee, subject to the provisions of Article VI of this Indenture,
shall be entitled in all respects to assume that no such facts exist; provided, however, that if
the Trustee shall not have received the notice provided for in this Section at least two Business
Days prior to the date upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (or premium, if any) or interest on
any Debt Security), then, anything herein contained to the contrary notwithstanding, the Trustee
shall have full power and authority to receive such money and to apply the same to the purposes for
which they were received, and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date.

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

     Section 15.07. Rights of the Trustee; Holders of Senior Indebtedness. The Trustee in its
individual capacity shall be entitled to all the rights set forth in this Article XV in respect of
any Senior Indebtedness at any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture or any Additional Provisions shall deprive the Trustee
of any of its rights as such holder.

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

66

 

to Securityholders, the Company or any other Person money or assets to which any holder of
such Senior Indebtedness shall be entitled by virtue of this Article XV or otherwise.

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

     Section 15.08. Subordination May Not Be Impaired. No right of any present or future holder
of any Senior Indebtedness of the Company to enforce subordination as herein provided shall at any
time in any way be prejudiced or impaired by any act or failure to act on the part of the Company,
or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the
Company, with the terms, provisions and covenants of this Indenture, regardless of any knowledge
thereof that any such holder may have or otherwise be charged with.

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

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

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

	 	 	 	 	 	 	 
	 	 	FLAGSTAR BANCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	Paul D. Borja
 

	 	 
	 	 	Name Paul D. Borja	 	 
	 	 	Title Exec VP / CFO	 	 
	 
	 	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	JCM
 

	 	 
	 	 	Name J. Christopher Murphy	 	 
	 	 	Title Financial Services Officer	 	 

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EXHIBIT A

FORM OF CONVERTIBLE JUNIOR SUBORDINATED

DEBT SECURITY DUE SEPTEMBER 15, 2039

[FORM OF FACE OF SECURITY]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF
THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO A “NON U.S.
PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO REGULATION S UNDER THE SECURITIES
ACT, (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a)
(1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE
SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN “ACCREDITED INVESTOR,”
FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE
INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

 

 

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

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

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS
THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A PRINCIPAL
AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF
THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT

A-2

 

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

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

A-3

 

Form of Convertible Junior Subordinated Debt Security due September 15, 2039

of

Flagstar Bancorp, Inc.

     Flagstar Bancorp, Inc., a savings and loan holding company incorporated in Michigan (the
“Company” which term includes any successor Person under the Indenture hereinafter referred to),
for value received promises to pay to Wilmington Trust Company, not in its individual capacity but
solely as Institutional Trustee for Flagstar Statutory Trust XI, a Delaware statutory trust (the
“Securityholder”) or registered assigns, the principal sum of $51,547,000 on September 15, 2039,
and to pay interest on said principal sum from June 30, 2009, 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 March 15, June 15, September 15 and December 15 of each year (or
if such day is not a Business Day, the next succeeding Business Day), commencing September 15, 2009
(each such date, an “Interest Payment Date”), at a fixed per annum rate equal to 10% (the “Interest
Rate”) (provided, however, that the Interest Rate for any Payment Period may not exceed the highest
rate permitted by New York law, as the same may be modified by United States law of general
applicability) until the principal hereof shall have become due and payable, and on any overdue
principal and (without duplication and to the extent that payment of such interest is enforceable
under applicable law) on any overdue installment of interest at an annual rate equal to the
Interest Rate in effect for each such Payment Period compounded quarterly.

     The amount of interest payable for any period will be computed on the basis of a 360-day year
consisting of twelve 30-day months. Notwithstanding anything to the contrary contained herein, if
any Interest Payment Date, other than on the Maturity Date, any Redemption Date (to the extent
redeemed) or the Special Redemption Date, falls on a day that is not a Business Day, then any
interest payable will be paid on, and such Interest Payment Date will be moved to, the next
succeeding Business Day, and additional interest will accrue for each day that such payment is
delayed as a result thereof. If the Maturity Date, Redemption Date or Special Redemption Date
falls on a day that is not a Business Day, then the principal, premium, if any, and/or interest
payable on such date will be paid on the next succeeding Business Day, and no additional interest
will accrue (except that, if such Business Day falls in the next calendar year, such payment will
be made on the immediately preceding Business Day). The interest installment so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Debt Security (or one or more Predecessor
Securities, as defined in said Indenture) is registered at the close of business on the regular
record date for such interest installment, except that interest and any Deferred Interest payable
on the Maturity Date shall be paid to the Person to whom principal is paid. Any such interest
installment not so punctually paid or duly provided for shall forthwith cease to be payable to the
Securityholder on such regular record date and may be paid to the Person in whose name this Debt
Security (or one or more Predecessor Debt Securities) is registered at the close of business on a
special record date to be fixed by the Trustee for the payment of such defaulted interest, notice
whereof shall be given to the registered Securityholders not less than 10 days prior to such
special record date, all as more fully provided in the Indenture.

A-4

 

     The principal of and interest on this Debt Security shall be payable at the office or agency
of the Trustee (or other Paying Agent appointed by the Company) maintained for that purpose in any
coin or currency of the United States of America that at the time of payment is legal tender for
payment of public and private debts; provided, however, that payment of interest may be made at the
option of the Company by check mailed to the registered Securityholder at such address as shall
appear in the Debt Security Register if a request for a wire transfer by such holder has not been
received by the Company or by wire transfer of immediately available funds to an account
appropriately designated by the holder hereof. Notwithstanding the foregoing, so long as the
holder of this Debt Security is the Institutional Trustee, payment of the principal of and premium,
if any, and interest on this Debt Security shall be made in immediately available funds at such
place and to such account as may be designated by the Institutional Trustee. All payments in
respect of this Debt Security shall be payable in any coin or currency of the United States of
America that at the time of payment is legal tender for payment of public and private debts.

     Upon submission of Notice (as defined in the Indenture) and so long as no Event of Default
pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred and is
continuing, the Company shall have the right under the Indenture, from time to time and without
causing an Event of Default, to defer payments of interest on the Debt Securities by extending the
Payment Period on the Debt Securities at any time and from time to time during the term of the Debt
Securities, for up to 20 consecutive quarterly periods (each such extended Payment Period, an
“Extension Period”), during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). During any Extension Period, interest will
continue to accrue on the Debt Securities, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as “Deferred Interest”) will accrue at an annual
rate equal to the Interest Rate applicable during such Extension Period, compounded quarterly from
the date such Deferred Interest would have been payable were it not for the Extension Period, to
the extent permitted by law. No Extension Period may end on a date other than an Interest Payment
Date.

     At the end of any such Extension Period the Company shall pay all Deferred Interest then
accrued and unpaid on the Debt Securities; provided, however, that no Extension Period may extend
beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption Date; and
provided, further, however, during any such Extension Period, the Company shall not engage in any
of the activities or transactions described on the reverse side hereof and in the Indenture. Prior
to the termination of any Extension Period, the Company may further extend such Extension Period;
provided that such period together with all such previous and further consecutive extensions
thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date,
Redemption Date (to the extent redeemed) or Special Redemption Date. Upon the termination of any
Extension Period and upon the payment of all Deferred Interest, the Company may commence a new
Extension Period, subject to the foregoing requirements. No interest or Deferred Interest shall be
due and payable during an Extension Period, except at the end thereof, but Deferred Interest shall
accrue upon each installment of interest that would otherwise have been due and payable during such
Extension Period until such installment is paid. The Company must give the Trustee notice of its
election to begin any Extension Period or extend an Extension Period (“Notice”) not later than the
related regular record date for the relevant Interest Payment Date. The Notice shall describe why
the Company

A-5

 

has elected to begin an Extension Period. The Notice shall acknowledge and affirm the
Company’s understanding that it is prohibited from issuing dividends and other distributions during
the Extension Period. Upon receipt of the Notice, the Placement Agent shall have the right, at its
sole discretion, to disclose the name of the Company, the fact that the Company has elected to
begin an Extension Period and other information that such Placement Agent, at its sole discretion,
deems relevant to the Company’s election to begin an Extension Period. The Trustee shall give
notice of the Company’s election to begin a new Extension Period to the Securityholders.

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

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

     The Debt Securities are subject to redemption as described in more detail on the reverse side
hereof and are convertible at the option of the Securityholder into shares of Common Stock of the
Company in accordance with the provisions of Section 2.14 of the Indenture.

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

A-6

 

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

	 	 	 	 	 	 	 
	 	 	FLAGSTAR BANCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By

	 	 	 	  
	 

	 	Name

	 	 	 	  
	 

	 	Title	 	 	 	 

A-7

 

CERTIFICATE OF AUTHENTICATION

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

Dated:                                         

	 	 	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By

	 	 	 	  
	 

	 	Name

	 	 	 	  
	 

	 	Title	 	 	 	 

A-8

 

[FORM OF REVERSE OF DEBT SECURITY]

     This Debt Security is one of a duly authorized series of Debt Securities of the Company, all
issued or to be issued pursuant to an Indenture (the “Indenture”), dated as of June 30, 2009, duly
executed and delivered between the Company and Wilmington Trust Company, as Trustee (the
“Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made for
a description of the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company and the holders of the Debt Securities (referred to herein as the “Debt
Securities”) of which this Debt Security is a part. The summary of the terms of this Debt Security
contained herein does not purport to be complete and is qualified by reference to the Indenture.
The Debt Securities are limited in aggregate principal amount as specified in the Indenture.

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

     The Company shall also have the right to redeem this Debt Security at the option of the
Company, in whole or in part, on January 31, 2011 and on any March 15, June 15, September 15 or
December 15 on or after January 31, 2011 (each a “Redemption Date”), at the Redemption Price.

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

     “Redemption Price” means 100% of the principal amount of the Debt Securities being redeemed,
plus accrued and unpaid interest (including any Deferred Interest) on such Debt Securities to the
Redemption Date.

     “Special Redemption Price” means 100% of the principal amount of the Debt Securities being
redeemed, plus accrued and unpaid interest (including any Deferred Interest) on such Debt
Securities to the Special Redemption Date.

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

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

A-9

 

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the holders of not less than a majority in aggregate principal amount of the Debt Securities at the
time outstanding affected thereby, as specified in the Indenture, to execute supplemental
indentures for the purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of the Indenture or of any supplemental indenture or of modifying in any manner
the rights of the Securityholders; provided, however, that no such supplemental indenture shall,
among other things, without the consent of the holders of each Debt Security then outstanding and
affected thereby (i) change the Maturity Date of any Debt Security, or reduce the principal amount
thereof or any redemption premium thereon, or reduce the rate (or manner of calculation of the
rate) or extend the time of payment of interest thereon, or reduce (other than as a result of the
maturity or earlier redemption of any such Debt Security in accordance with the terms of the
Indenture and such Debt Security) or increase the aggregate principal amount of Debt Securities
then outstanding, or change any of the redemption provisions, or make the principal thereof or any
interest or premium thereon payable in any coin or currency other than United States Dollars, or
impair or affect the right of any Securityholder to institute suit for the payment thereof, or (ii)
reduce the aforesaid percentage of Debt Securities, the holders of which are required to consent to
any such supplemental indenture.

     The Indenture also contains provisions permitting the holders of a majority in aggregate
principal amount of the Debt Securities at the time outstanding on behalf of all of the
Securityholders, to waive (or modify any previously granted waiver of) any past default in the
performance of any of the covenants contained in the Indenture, or established pursuant to the
Indenture, and its consequences, except (a) a default in payments due in respect of any of the Debt
Securities, (b) in respect of covenants or provisions of the Indenture which cannot be modified or
amended without the consent of the holder of each Debt Security affected, or (c) in respect of the
covenants of the Company relating to its ownership of Common Securities of the Trust. Any such
consent or waiver by the registered holder of this Debt Security (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such Securityholder and upon all future holders and
owners of this Debt Security and of any Debt Security issued in exchange herefor or in place hereof
(whether by registration of transfer or otherwise), irrespective of whether or not any notation of
such consent or waiver is made upon this Debt Security.

     The Debt Securities shall be convertible into Common Stock of the Company in accordance with
the provisions of Section 2.14 of the Indenture.

     No reference herein to the Indenture and no provision of this Debt Security or of the
Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of and premium, if any, and interest, including Deferred Interest, on this
Debt Security at the time and place and at the rate and in the money herein prescribed.

     The Company has agreed that if Debt Securities are initially issued to the Trust or a trustee
of such Trust in connection with the issuance of Trust Securities by the Trust (regardless of
whether Debt Securities continue to be held by such Trust) and (a) there shall have occurred and be
continuing an Event of Default; (b) the Company shall be in default with respect to its payment of
any obligations under the Capital Securities Guarantee; or (c) the Company shall have given notice
of its election to defer payments of interest on the Debt Securities by extending

A-10

 

the Payment Period as provided herein and such 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 of the Company’s
capital stock; or (ii) make any payment of principal of or interest or premium, if any, on or
repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects
with or junior in interest to the Debt Securities or (iii) make any payment under any guarantees of
the Company that rank pari passu in all respects with or junior in interest to the Capital
Securities Guarantee (other than (A) repurchases, redemptions or other acquisitions of shares of
capital stock of the Company (I) in connection with any employment contract, benefit plan or other
similar arrangement with or for the benefit of one or more employees, officers, directors or
consultants, (II) in connection with a dividend reinvestment or stockholder stock purchase plan or
(III) in connection with the issuance of capital stock of the Company (or securities convertible
into or exercisable for such capital stock), as consideration in an acquisition transaction entered
into prior to the occurrence of (i), (ii) or (iii) above, (B) as a result of any exchange,
reclassification, combination or conversion of any class or series of the Company’s capital stock
(or any capital stock of a subsidiary of the Company) for any class or series of the Company’s
capital stock or of any class or series of the Company’s indebtedness for any class or series of
the Company’s capital stock, (C) the purchase of fractional interests in shares of the Company’s
capital stock pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, (D) any declaration of a dividend in connection with any
stockholder’s rights plan, or the issuance of rights, stock or other property under any
stockholder’s rights plan, or the redemption or repurchase of rights pursuant thereto, or (E) any
dividend in the form of stock, warrants, options or other rights where the dividend stock or the
stock issuable upon exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari passu with or junior to such stock and any cash
payments in lieu of fractional shares issued in connection therewith; or (F) payments under the
Capital Securities Guarantee).

     As provided in the Indenture and subject to the transfer restrictions and limitations as may
be contained herein and therein from time to time, this Debt Security is transferable by the
registered holder hereof on the Debt Security Register of the Company, upon surrender of this Debt
Security. Upon due presentment for registration of transfer of any Debt Security at the Principal
Office of the Trustee or at any office or agency of the Trustee maintained for such purpose as
provided in Section 3.02 of the Indenture, the Company shall execute, the Company or the Trustee
shall register and the Trustee or the Authenticating Agent shall authenticate and make available
for delivery in the name of the transferee or transferees a new Debt Security for a like aggregate
principal amount. All Debt Securities presented for registration of transfer or for exchange or
payment shall (if so required by the Company or the Trustee or the Authenticating Agent) be duly
endorsed by, or be accompanied by a written instrument or instruments of transfer in form
satisfactory to, the Company and the Trustee or the Authenticating Agent duly executed by the
registered holder hereof or such Securityholder’s attorney duly authorized in writing. No service
charge shall be made for any exchange or registration of transfer of Debt Securities, but the
Company or the Trustee may require payment of a sum sufficient to cover any tax, fee or other
governmental charge that may be imposed in connection therewith.

     Prior to due presentment for registration of transfer of this Debt Security, the Company, the
Trustee, any Authenticating Agent, any Paying Agent, any transfer agent and the Debt

A-11

 

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

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

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

     Capitalized terms used and not defined in this Debt Security shall have the meanings assigned
in the Indenture dated as of the date of original issuance of this Debt Security between the
Trustee and the Company.

     THE INDENTURE AND THE DEBT SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

A-12

 

EXHIBIT B

FORM OF CERTIFICATE TO TRUSTEE

     Pursuant to Section 3.05 of the Indenture between Flagstar Bancorp, Inc., as the Company (the
“Company”), and Wilmington Trust Company, as Trustee, dated as of June 30, 2009 (the “Indenture”),
the undersigned hereby certifies as follows:

     1. In my capacity as an officer of the Company, I would normally have knowledge of any default
by the Company during the last fiscal year in the performance of any covenants of the Company
contained in the Indenture.

     2. To my knowledge, the Company is not in default in the performance of any covenants
contained in the Indenture, or, alternatively: I am aware of the default(s) in the performance of
covenants in the Indentures, as specified below.

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

     IN WITNESS WHEREOF, the undersigned has executed this Certificate.

     Date:                    ,         

	 	 	 	 	 	 	 
	 

	 	By

	 	 	 	  
	 

	 	Name

	 	 	 	  
	 

	 	Titleexv4w2

Exhibit 4.2

AMENDED AND RESTATED DECLARATION

OF TRUST

FLAGSTAR STATUTORY TRUST XI

Dated as of June 30, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I

	INTERPRETATION AND DEFINITIONS

	 
	 	 	 	 
	SECTION 1.1. Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II

	ORGANIZATION

	 
	 	 	 	 
	SECTION 2.1. Name
	 	 	10	 
	SECTION 2.2. Office
	 	 	10	 
	SECTION 2.3. Purpose
	 	 	10	 
	SECTION 2.4. Authority
	 	 	10	 
	SECTION 2.5. Title to Property of the Trust
	 	 	10	 
	SECTION 2.6. Powers and Duties of the Trustees and the Administrators
	 	 	11	 
	SECTION 2.7. Prohibition of Actions by the Trust and the Trustees
	 	 	16	 
	SECTION 2.8. Powers and Duties of the Institutional Trustee
	 	 	16	 
	SECTION 2.9. Certain Duties and Responsibilities of the Trustees and the Administrators
	 	 	18	 
	SECTION 2.10. Certain Rights of Institutional Trustee
	 	 	20	 
	SECTION 2.11. Delaware Trustee
	 	 	22	 
	SECTION 2.12. Execution of Documents
	 	 	23	 
	SECTION 2.13. Not Responsible for Recitals or Issuance of Securities
	 	 	23	 
	SECTION 2.14. Duration of Trust
	 	 	23	 
	SECTION 2.15. Mergers
	 	 	23	 
	 
	 	 	 	 
	ARTICLE III

	SPONSOR

	 
	 	 	 	 
	SECTION 3.1. Sponsor’s Purchase of Common Securities
	 	 	25	 
	SECTION 3.2. Responsibilities of the Sponsor
	 	 	25	 
	SECTION 3.3. Expenses
	 	 	25	 
	SECTION 3.4. Right to Proceed
	 	 	26	 
	 
	 	 	 	 
	ARTICLE IV

	TRUSTEES AND ADMINISTRATORS

	 
	 	 	 	 
	SECTION 4.1. Number of Trustees
	 	 	26	 
	SECTION 4.2. Delaware Trustee
	 	 	27	 
	SECTION 4.3. Institutional Trustee; Eligibility
	 	 	27	 

-i-

 

	 	 	 	 	 
	 	 	Page
	SECTION 4.4. [Reserved]
	 	 	27	 
	SECTION 4.5. Administrators
	 	 	28	 
	SECTION 4.6. [Reserved]
	 	 	28	 
	SECTION 4.7. Appointment, Removal and Resignation of the Trustees and the Administrators
	 	 	28	 
	SECTION 4.8. Vacancies Among Trustees
	 	 	30	 
	SECTION 4.9. Effect of Vacancies
	 	 	30	 
	SECTION 4.10. Meetings of the Trustees and the Administrators
	 	 	30	 
	SECTION 4.11. Delegation of Power
	 	 	31	 
	SECTION 4.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	31	 
	 
	 	 	 	 
	ARTICLE V

	DISTRIBUTIONS

	 
	 	 	 	 
	SECTION 5.1. Distributions
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VI

	ISSUANCE OF SECURITIES

	 
	 	 	 	 
	SECTION 6.1. General Provisions Regarding Securities
	 	 	32	 
	SECTION 6.2. Paying Agent, Transfer Agent and Registrar
	 	 	33	 
	SECTION 6.3. Form and Dating
	 	 	33	 
	SECTION 6.4. Book-Entry Capital Securities
	 	 	34	 
	SECTION 6.5. Mutilated, Destroyed, Lost or Stolen Certificates
	 	 	36	 
	SECTION 6.6. Temporary Securities
	 	 	36	 
	SECTION 6.7. Cancellation
	 	 	36	 
	SECTION 6.8. Rights of Holders; Waivers of Past Defaults
	 	 	37	 
	 
	 	 	 	 
	ARTICLE VII

	DISSOLUTION AND TERMINATION OF TRUST

	 
	 	 	 	 
	SECTION 7.1. Dissolution and Termination of Trust
	 	 	39	 
	 
	 	 	 	 
	ARTICLE VIII

	TRANSFER OF INTERESTS

	 
	 	 	 	 
	SECTION 8.1. General
	 	 	40	 
	SECTION 8.2. Transfer Procedures and Restrictions
	 	 	41	 
	SECTION 8.3. Deemed Security Holders
	 	 	44	 
	 
	 	 	 	 
	ARTICLE IX

	LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

	 
	 	 	 	 
	SECTION 9.1. Liability
	 	 	44	 

-ii-

 

	 	 	 	 	 
	 	 	Page
	SECTION 9.2. Exculpation
	 	 	45	 
	SECTION 9.3. Fiduciary Duty
	 	 	45	 
	SECTION 9.4. Indemnification
	 	 	46	 
	SECTION 9.5. Outside Businesses
	 	 	49	 
	SECTION 9.6. Compensation; Fee
	 	 	49	 
	 
	 	 	 	 
	ARTICLE X

	ACCOUNTING

	 
	 	 	 	 
	SECTION 10.1. Fiscal Year
	 	 	50	 
	SECTION 10.2. Certain Accounting Matters
	 	 	50	 
	SECTION 10.3. Banking
	 	 	51	 
	SECTION 10.4. Withholding
	 	 	51	 
	 
	 	 	 	 
	ARTICLE XI

	AMENDMENTS AND MEETINGS

	 
	 	 	 	 
	SECTION 11.1. Amendments
	 	 	52	 
	SECTION 11.2. Meetings of the Holders of the Securities; Action by Written Consent
	 	 	54	 
	 
	 	 	 	 
	ARTICLE XII

	REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

	 
	 	 	 	 
	SECTION 12.1. Representations and Warranties of Institutional Trustee
	 	 	55	 
	SECTION 12.2. Representations and Warranties of Delaware Trustee
	 	 	56	 
	SECTION 12.3. Representations and Warranties of the Sponsor
	 	 	57	 
	 
	 	 	 	 
	ARTICLE XIII

	MISCELLANEOUS

	 
	 	 	 	 
	SECTION 13.1. Notices
	 	 	58	 
	SECTION 13.2. Governing Law
	 	 	59	 
	SECTION 13.3. Intention of the Parties
	 	 	59	 
	SECTION 13.4. Headings
	 	 	60	 
	SECTION 13.5. Successors and Assigns
	 	 	60	 
	SECTION 13.6. Partial Enforceability
	 	 	60	 
	SECTION 13.7. Counterparts
	 	 	60	 

-iii-

 

TABLE OF CONTENTS

(continued)

Page

	 	 	 	 
	ANNEXES AND EXHIBITS

	 
	 
	 	 
	ANNEX I

	 	Terms of TP Securities and Common Securities	I-1
	 
	 	 
	EXHIBIT A-1

	 	Form of Capital Security Certificate	A-1-1
	EXHIBIT A-2

	 	Form of Common Security Certificate	A-2-1

-iv-

 

AMENDED AND RESTATED DECLARATION OF TRUST

OF

FLAGSTAR STATUTORY TRUST XI

June 30, 2009

     AMENDED AND RESTATED DECLARATION OF TRUST (this “Declaration”), dated and effective as of June
30, 2009, by the Trustees (as defined herein), the Administrators (as defined herein), the Sponsor
(as defined herein) and the holders from time to time of undivided beneficial interests in the
assets of the Trust (as defined herein) to be issued pursuant to this Declaration.

     WHEREAS, the Delaware Trustee and the Sponsor established Flagstar Statutory Trust XI (the
“Trust”), a statutory trust under the Statutory Trust Act (as defined herein), pursuant to a
Declaration of Trust, dated as of March 18, 2009 (the “Original Declaration”), and a Certificate of
Trust filed with the Secretary of State of the State of Delaware on March18, 2009, for the sole
purpose of issuing and selling certain securities representing undivided beneficial interests in
the assets of the Trust and investing the proceeds thereof in the Debentures (as defined herein) of
the Debenture Issuer (as defined herein) in connection with the issuance of the Capital Securities
(as defined herein);

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

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

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

ARTICLE I

INTERPRETATION AND DEFINITIONS

     SECTION 1.1. Definitions. Unless the context otherwise requires:

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

 

 

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

          (c) all references to “the Declaration” or “this Declaration” are to this Declaration as
modified, supplemented or amended from time to time, including any Annexes and Exhibits hereto;

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

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

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

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

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

     “Administrators” means each of Mark T. Hammond and Paul D. Borja, solely in such Person’s
capacity as Administrator of the Trust continued hereunder and not in such Person’s individual
capacity, or such Administrator’s successor in interest in such capacity, or any successor
appointed as herein provided.

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

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

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

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

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

          (b) such Person commences a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, consents to the entry of an

2

 

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

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

     “Business Day” means any day other than Saturday, Sunday or any other day on which banking
institutions in Wilmington, Delaware or New York City or the city of the Corporate Trust Office are
permitted or required by any applicable law or executive order to close.

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

     “Capital Securities Purchase Agreement” means the Capital Securities Purchase Agreement among
the Trust, the Sponsor and the Purchaser purchasing Capital Securities pursuant thereto.

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

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

     “Certificate” means any certificate evidencing Securities.

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

     “Closing Date” has the meaning set forth in the Capital Securities Purchase Agreement.

     “Closing Price” means, with respect to the Common Stock on any date of determination, the
closing sale price or, if no closing sale price is reported, the last reported sale price of the
shares of the Common Stock on the NYSE on such date. If the Common Stock is not traded on the NYSE
on any date of determination, the Closing Price of the Common Stock on such date of determination
means the closing sale price as reported in the composite transactions for the principal U.S.
national or regional securities exchange on which the Common Stock is so listed or quoted, or, if
no closing sale price is reported, the last reported sale price on the principal U.S. national or
regional securities exchange on which the Common Stock is so listed or quoted, or if the Common
Stock is not so listed or quoted on a U.S. national or regional securities exchange, the last
quoted bid price for the Common Stock in the over-the-counter market as reported by Pink Sheets LLC
or similar organization, or, if that bid price is not available, the market price of the Common
Stock on that date as determined by a nationally recognized independent investment banking firm
retained by the Corporation for this purpose. For purposes of this Indenture, all references herein
to the “Closing Price” and “last reported sale price” of the Common Stock on the NYSE shall be such
closing sale price and last reported sale price as reflected on the website of the NYSE
(http://www.nyse.com) and as reported by Bloomberg Professional Service; provided that in the event
that there is a discrepancy between the closing sale price or last reported sale price as reflected
on the website of the NYSE and as reported by

3

 

Bloomberg Professional Service, the closing sale price and last reported sale price on the
website of the NYSE shall govern. If the date of determination is not a Trading Day, then such
determination shall be made as of the last Trading Day prior to such date.

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

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

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

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

     “Common Stock” means the common stock, par value $0.01 per share, of the Sponsor.

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

     “Conversion Agent” has the meaning set forth in Section 7 of Annex I.

     “Conversion Date” has the meaning set forth in Section 7 of Annex I.

     “Conversion Price” has the meaning set forth in Section 7 of Annex I.

     “Conversion Request” has the meaning set forth in Section 7 of Annex I.

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

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

     “Creditor” has the meaning set forth in Section 3.3.

     “Debenture Issuer” means Flagstar Bancorp, Inc., a savings and loan holding company
incorporated in Michigan, in its capacity as issuer of the Debentures under the Indenture.

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

4

 

     “Debentures” means the Convertible Junior Subordinated Debt Securities due September 15, 2039
to be issued by the Debenture Issuer under the Indenture.

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

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

     “Depositary” means an organization registered as a clearing agency under the Exchange Act that
is designated as Depositary by the Sponsor or any successor thereto. The initial Depositary if
Book-Entry Capital Securities are issued will be DTC.

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

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

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

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

     “Distribution Period” means (a) with respect to the initial Distribution Period, the period
beginning on the original date of issuance of the Securities, to, but excluding, the next
succeeding Distribution Payment Date; (b) with respect to the last Distribution Period, the period
beginning on (and including) the preceding Distribution Payment Date and ending on the Redemption
Date, Special Redemption Date or Maturity Date (each as defined in the Indenture), as the case may
be, for the related Debentures; and (c) with respect to any other Distribution Period, the period
beginning on (and including) the preceding Distribution Payment Date and ending on (but excluding)
such Distribution Payment Date.

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

     “DTC” means the Depository Trust Company or any successor thereto.

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

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

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

5

 

     “Fiduciary Indemnified Person” shall mean each of the Institutional Trustee (including in its
individual capacity), the Delaware Trustee (including in its individual capacity), any Affiliate of
the Institutional Trustee or the Delaware Trustee, and any officers, directors, shareholders,
members, partners, employees, representatives, custodians, nominees or agents of the Institutional
Trustee or the Delaware Trustee.

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

     “Global Capital Security” means a Capital Securities Certificate evidencing ownership of
Book-Entry Capital Securities.

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

     “Guarantor” means the Sponsor.

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

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

     “Indenture” means the Indenture, dated as of the Closing Date, between the Debenture Issuer
and the Debenture Trustee, and any indenture supplemental thereto pursuant to which the Debentures
are to be issued, as such Indenture and any supplemental indenture may be amended, supplemented or
otherwise modified from time to time.

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

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

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

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

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

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

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

     “Majority in liquidation amount of the Securities” means Holders of outstanding Securities
voting together as a single class or, as the context may require, Holders of outstanding Capital
Securities or Holders of outstanding Common Securities voting separately as a class,

6

 

who are the record owners of more than 50% of the aggregate liquidation amount (including the
stated amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined) of all outstanding
Securities of the relevant class.

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

     “NYSE” means The New York Stock Exchange.

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

          (a) a statement that each officer signing the Officers’ Certificate has read the covenant or
condition and the definitions relating thereto;

          (b) a brief statement of the nature and scope of the examination or investigation undertaken
by each officer in rendering the Officers’ Certificate;

          (c) a statement that each such officer has made such examination or investigation as, in such
officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether
or not such covenant or condition has been complied with; and

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

     “Owner” means each Person who is the beneficial owner of Book-Entry Capital Securities as
reflected in the records of the Depositary or, if a Depositary Participant is not the beneficial
owner, then the beneficial owner as reflected in the records of the Depositary Participant.

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

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

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

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

     “Purchaser” means MP Thrift Investments L.P. a Delaware limited partnership.

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

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

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

7

 

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

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

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

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

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

     “Relevant Trustee” has the meaning set forth in Section 4.7(a).

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

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

     “Rule 144A” means Rule 144A promulgated under the Securities Act, as amended from time to
time, or any successor legislation.

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

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

     “Securities” means the Common Securities and the Capital Securities, as applicable.

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

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

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

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

     “Sponsor” means Flagstar Bancorp, Inc., a savings and loan holding company that is a U.S.
Person incorporated in Michigan, or any successor entity in a merger, consolidation or amalgamation
that is a U.S. Person, in its capacity as sponsor of the Trust.

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

8

 

     “Successor Delaware Trustee” has the meaning set forth in Section 4.7(e).

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

     “Successor Institutional Trustee” has the meaning set forth in Section 4.7(b).

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

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

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

     “Temporary Securities” has the meaning set forth in Section 6.6.

     “10% in liquidation amount of the Securities” means Holders of outstanding Securities voting
together as a single class or, as the context may require, Holders of outstanding Capital
Securities or Holders of outstanding Common Securities voting separately as a class, who are the
record owners of 10% or more of the aggregate liquidation amount (including the stated amount that
would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to the
date upon which the voting percentages are determined) of all outstanding Securities of the
relevant class.

     “Trading Day” means a day on which the shares of Common Stock: (a) are not suspended from
trading on any national or regional securities exchange or association or over-the-counter market
at the close of business; and (b) have traded at least once on the national or regional securities
exchange or association or over-the-counter market that is the primary market for the trading of
the Common Stock.

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

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

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

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

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

9

 

ARTICLE II

ORGANIZATION

     SECTION 2.1. Name. The Trust is continued hereby and shall be known as “Flagstar
Statutory Trust XI,” as such name may be modified from time to time by the Administrators following
written notice to the Institutional Trustee and the Holders of the Securities. The Trust’s
activities may be conducted under the name of the Trust or any other name deemed advisable by the
Administrators.

     SECTION 2.2. Office. The address of the principal office of the Trust, which shall be
in a state of the United States or the District of Columbia, is 5151 Corporate Drive, Troy,
Michigan 48098. On at least ten Business Days’ written notice to the Institutional Trustee and the
Holders of the Securities, the Administrators may designate another principal office, which shall
be in a state of the United States or the District of Columbia.

     SECTION 2.3. Purpose. The exclusive purposes and functions of the Trust are (a) to
issue and sell the Securities representing undivided beneficial interests in the assets of the
Trust, (b) to invest the gross proceeds from such sale to acquire the Debentures, (c) to facilitate
direct investment in the assets of the Trust through issuance of the Common Securities and the
Capital Securities and (d) except as otherwise limited herein, to engage in only those other
activities necessary or incidental thereto, including, without limitation, those activities
specified in this Declaration. The Trust shall not borrow money, issue debt or reinvest proceeds
derived from investments, pledge any of its assets, or otherwise undertake (or permit to be
undertaken) any activity that would cause the Trust not to be classified for United States federal
income tax purposes as a grantor trust.

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

     SECTION 2.5. Title to Property of the Trust. Except as provided in Section 2.6(g) and
Section 2.8 with respect to the Debentures and the Property Account or as otherwise provided in
this Declaration, legal title to all assets of the Trust shall be vested in the Trust. The Holders
shall not have legal title to any part of the assets of the Trust, but shall have an undivided
beneficial interest in the assets of the Trust.

10

 

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

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

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

     (A) the issuance and sale of the Securities;

     (B) to acquire the Debentures with the proceeds of the sale of the
Securities; provided, however, that the Administrators shall cause legal
title to the Debentures to be held of record in the name of the
Institutional Trustee for the benefit of the Holders;

     (C) to cause the Trust to enter into, and to execute, deliver and
perform on behalf of the Trust, such agreements as may be necessary or
desirable in connection with the purposes and function of the Trust,
including agreements with the Paying Agent, a Debenture subscription or
purchase agreement between the Trust and the Sponsor and a Common Securities
subscription or purchase agreement between the Trust and the Sponsor;

     (D) ensuring compliance with the Securities Act and applicable state
securities or blue sky laws;

     (E) if and at such time determined solely by the Sponsor at the request
of the Holders, to provide for the issuance of Book-Entry Capital Securities
in place of definitive Capital Securities Certificates and, in this regard,
assisting in the designation of the Capital Securities for trading in the
Private Offering, Resales and Trading through the Automatic Linkages
(“PORTAL”) system if available; to cause the Trust to enter into, and to
execute and deliver on behalf of the Trust, such agreements as may be
necessary or desirable in connection with the purposes and function of the
Trust, including agreements with the Paying Agent;

     (F) the sending of notices (other than notices of default) and other
information regarding the Securities and the Debentures to the Holders in
accordance with this Declaration, including notice of any notice received
from the Debenture Issuer of its election to defer payments

11

 

of interest on the Debentures by extending the interest payment period
under the Indenture;

     (G) the appointment of, or the consent to the appointment of, a Paying
Agent, Transfer Agent and Registrar in accordance with this Declaration,
which appointment or consent shall not be unreasonably withheld or delayed;

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

     (I) execution and delivery of closing certificates pursuant to the
Capital Securities Purchase Agreement and the application for a taxpayer
identification number;

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

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

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

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

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

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

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

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

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

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

     (A) the establishment of the Property Account;

     (B) the receipt of the Debentures;

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

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

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

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

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

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

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

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     (J) to take all action that may be necessary or appropriate for the
preservation and the continuation of the Trust’s valid existence, rights,
franchises and privileges as a statutory trust under the laws of the State
of Delaware, including, without limitation, actions to protect the limited
liability of the Holders of the Capital Securities or to enable the Trust to
effect the purposes for which the Trust was created;

     (K) to undertake any actions set forth in Section 317(a) of the Trust
Indenture Act; and

     (L) at the direction of the Administrators, providing for the issuance
of Book-Entry Capital Securities in place of definitive Capital Securities
Certificates and assisting in the designation of the Capital Securities for
trading in the PORTAL system if available.

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

          (b) So long as this Declaration remains in effect, the Trust (or the Trustees or
Administrators acting on behalf of the Trust) shall not undertake any business, activities or
transaction except as expressly provided herein or contemplated hereby. In particular, neither the
Trustees nor the Administrators may cause the Trust to (i) acquire any investments or engage in any
activities not authorized by this Declaration, (ii) sell, assign, transfer, exchange, mortgage,
pledge, set-off or otherwise dispose of any of the Trust Property or interests therein, including
to Holders, except as expressly provided herein, (iii) take any action that would reasonably be
expected (x) to cause the Trust to fail or cease to qualify as a “grantor trust” for United States
federal income tax purposes, or (y) to require the Trust to register as an Investment Company under
the Investment Company Act, (iv) incur any indebtedness for borrowed money or issue any other debt
or (v) take or consent to any action that would result in the placement of a lien on any of the
Trust Property. The Institutional Trustee shall, at the sole cost and expense of the Trust, defend
all claims and demands of all Persons at any time claiming any lien on any of the Trust Property
adverse to the interest of the Trust or the Holders in their capacity as Holders.

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

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

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

     (iii) the negotiation of the terms of, and the execution and delivery of, the
Capital Securities Purchase Agreement providing for the sale of the Capital
Securities; and

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

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

          (e) All expenses incurred by the Administrators or the Trustees pursuant to this Section 2.6
shall be reimbursed by the Sponsor, and the Trustees and the Administrators shall have no
obligations with respect to such expenses (for purposes of clarification, this section does not
contemplate the payment by the Sponsor of acceptance or annual administration fees owing to the
Trustees under this Declaration or the fees and expenses of the Trustees’ counsel in connection
with the closing of the transactions contemplated by this Declaration).

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

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

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

     SECTION 2.7. Prohibition of Actions by the Trust and the Trustees. The Trust shall
not, and the Institutional Trustee and the Administrators shall not, and the Administrators shall
cause the Trust not to, engage in any activity other than as required or authorized by this
Declaration. In particular, the Trust shall not, and the Institutional Trustee and the
Administrators shall not cause the Trust to:

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

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

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

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

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

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

          (g) carry on any “trade or business” as that phrase is used in the Code; or

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

     SECTION 2.8. Powers and Duties of the Institutional Trustee.

          (a) The legal title to the Debentures shall be owned by and held of record in the name of the
Institutional Trustee in trust for the benefit of the Trust and the Holders of the Securities. The
right, title and interest of the Institutional Trustee to the Debentures shall vest

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automatically in each Person who may hereafter be appointed as Institutional Trustee in
accordance with Section 4.7. Such vesting and cessation of title shall be effective whether or not
conveyancing documents with regard to the Debentures have been executed and delivered.

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

          (c) The Institutional Trustee shall:

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

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

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

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

          (e) The Institutional Trustee may bring or defend, pay, collect, compromise, arbitrate, resort
to legal action with respect to, or otherwise adjust claims or demands of or against, the Trust
which arises out of or in connection with an Event of Default of which a Responsible Officer of the
Institutional Trustee has actual knowledge or the Institutional Trustee’s duties and obligations
under this Declaration; provided, however, that if an Event of Default has occurred
and is continuing and such event is attributable to the failure of the Debenture Issuer to pay
interest or premium, if any, on or principal of the Debentures on the date such interest, premium,
if any, or principal is otherwise payable (or in the case of redemption, on the Redemption Date or
the Special Redemption Date, as applicable), then a Holder of the Capital Securities may directly
institute a proceeding for enforcement of payment to such Holder of the principal of or premium, if
any, or interest on the Debentures having a principal amount equal to the aggregate liquidation
amount of the Capital Securities of such Holder (a “Direct Action”) on or after the respective due
date specified in the Debentures. In connection with such

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Direct Action, the rights of the Holders of the Common Securities will be subrogated to the
rights of such Holder of the Capital Securities to the extent of any payment made by the Debenture
Issuer to such Holder of the Capital Securities in such Direct Action; provided,
however, that a Holder of the Common Securities may exercise such right of subrogation so
long as no Event of Default with respect to the Capital Securities has occurred and is continuing.

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

     (i) the Trust has been completely liquidated and the proceeds of the
liquidation distributed to the Holders of the Securities pursuant to the terms of
the Securities and this Declaration (including Annex I) and the certificate of
cancellation referenced in Section 7.1(b) has been filed; or

     (ii) a Successor Institutional Trustee has been appointed and has accepted that
appointment in accordance with Section 4.7.

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

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

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

          (a) The Institutional Trustee, before the occurrence of any Event of Default and after the
curing or waiving of all such Events of Default that may have occurred, shall undertake to perform
only such duties as are specifically set forth in this Declaration and no implied covenants shall
be read into this Declaration against the Institutional Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 6.8), the Institutional Trustee
shall exercise such of the rights and powers vested in it by this Declaration, and use the same
degree of care and skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

          (b) The duties and responsibilities of the Trustees and the Administrators shall be as
provided by this Declaration. Notwithstanding the foregoing, no provision of this Declaration
shall require any Trustee or Administrator to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity satisfactory to it against such risk or liability is not reasonably
assured to it. Whether or not therein expressly so provided, every provision of this Declaration
relating to the conduct or affecting the liability of or affording protection to the Trustees or
the Administrators shall be subject to the provisions of this Article. Nothing in this

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Declaration shall be construed to release a Trustee from liability for its own negligent
action, its own negligent failure to act, or its own willful misconduct or bad faith. Nothing in
this Declaration shall be construed to release an Administrator from liability for its own gross
negligent action, its own gross negligent failure to act, or its own willful misconduct or bad
faith. To the extent that, at law or in equity, a Trustee or an Administrator has duties
(including fiduciary duties) to the Trust or to the Holders, such Trustee’s or Administrator’s
duties may be restricted or eliminated by provisions in this Declaration, except that this
Declaration may not eliminate the implied contractual covenant of good faith and fair dealing. A
Trustee or Administrator shall not be liable to the Trust or any Holder or another Person that is
party to or is otherwise bound by this Declaration for breach of fiduciary duty for such Trustee’s
or Administrator’s good faith reliance on the provisions of this Declaration. The provisions of
this Declaration, to the extent that they restrict or eliminate the duties (including fiduciary
duties) and liabilities of the Trustees or the Administrators otherwise existing at law or in
equity, are agreed by the Sponsor and the Holders to replace such other duties and liabilities of
the Trustees or the Administrators, as the case may be, except that no provision of this
Declaration may limit or eliminate liability for any act or omission that constitutes a bad faith
violation of the implied contractual covenant of good faith and fair dealing.

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

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

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

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

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

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

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

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

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

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

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

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          (d) whenever in the administration of this Declaration, the Institutional Trustee shall deem
it desirable that a matter be proved or established before undertaking, suffering or omitting any
action hereunder, the Institutional Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and conclusively rely upon an
Officers’ Certificate which, upon receipt of such request, shall be promptly delivered by the
Sponsor or the Administrators;

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

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

          (g) the Institutional Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Declaration at the request or direction of any of the Holders pursuant
to this Declaration, unless such Holders shall have offered to the Institutional Trustee security
or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might
be incurred by it in compliance with such request or direction; provided, that nothing
contained in this Section 2.10(g) shall be taken to relieve the Institutional Trustee, upon the
occurrence of an Event of Default that has not been cured or waived, of its obligation to exercise
the rights and powers vested in it by this Declaration, and use the same degree of care and skill
in their exercise, as a prudent person would exercise or use under the circumstances in the conduct
of his or her own affairs;

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

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

          (j) whenever in the administration of this Declaration the Institutional Trustee shall deem it
desirable to receive instructions with respect to enforcing any remedy or right or taking any other
action hereunder, the Institutional Trustee (i) may request instructions from the Holders of the
Common Securities and/or the Capital Securities (whichever class of securities is effected
thereby), which instructions may be given only by the Holders of the same proportion in liquidation
amount of each affected class of securities providing such instructions as would be

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entitled to direct the Institutional Trustee under the terms of the Common Securities and the
Capital Securities in respect of such remedy, right or action, (ii) may refrain from enforcing such
remedy or right or taking such other action until such instructions are received, and (iii) shall
be fully protected in acting in accordance with such instructions;

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

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

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

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

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

          (p) any right, protection or indemnity that the Institutional Trustee is entitled to under
this Declaration shall extend to the Institutional Trustee in each other role in which it may serve
hereunder.

     SECTION 2.11. Delaware Trustee. Notwithstanding any other provision of this
Declaration other than Section 4.2, the Delaware Trustee shall not be entitled to exercise any
powers, nor shall the Delaware Trustee have any of the duties and responsibilities of any of the
Trustees or the Administrators described in this Declaration (except as may be required under the
Statutory Trust Act). Except as set forth in Section 4.2, the Delaware Trustee shall be a Trustee

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for the sole and limited purpose of fulfilling the requirements of § 3807 of the Statutory
Trust Act and receiving service of process upon the Trust in the State of Delaware.

     SECTION 2.12. Execution of Documents. Unless otherwise determined in writing by the
Institutional Trustee, and except as otherwise required by the Statutory Trust Act, the
Institutional Trustee, or any one or more of the Administrators, as the case may be, is authorized
to execute and deliver on behalf of the Trust any documents, agreements, instruments or
certificates that the Trustees or the Administrators, as the case may be, have the power and
authority to execute pursuant to Section 2.6.

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

     SECTION 2.14. Duration of Trust. The Trust, unless dissolved pursuant to the
provisions of Article VII hereof, shall have existence for thirty-five (35) years from the Closing
Date.

     SECTION 2.15. Mergers.

          (a) The Trust may not consolidate, amalgamate, merge with or into, or be replaced by, or
convey, transfer or lease its properties and assets substantially as an entirety to any corporation
or other Person, except as described in this Section 2.15 and except with respect to the
liquidation of the Trust and the distribution of Debentures to Holders of Securities pursuant to
Section 7.1(a)(iv) of this Declaration or Section 3 of Annex I.

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

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

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

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

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

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

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

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

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

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

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

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

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

24

 

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

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

          (c) Notwithstanding Section 2.15(b), the Trust shall not, except with the consent of Holders
of 100% in liquidation amount of the Securities, consolidate, amalgamate, merge with or into, or be
replaced by, or convey, transfer or lease its properties and assets as an entirety or substantially
as an entirety to, any other Person or permit any other Person to consolidate, amalgamate, merge
with or into, or replace it if such consolidation, amalgamation, merger, replacement, conveyance,
transfer or lease would cause the Trust or Successor Entity to be classified as other than a
grantor trust for United States federal income tax purposes.

ARTICLE III

SPONSOR

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

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

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

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

     SECTION 3.3. Expenses. In connection with the offering, sale and issuance of the
Debentures to the Trust and in connection with the sale of the Securities by the Trust, the
Sponsor, in its capacity as Debenture Issuer, shall:

          (a) pay all reasonable costs and expenses owing to the Debenture Trustee pursuant to Section
6.06 of the Indenture;

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          (b) be responsible for and shall pay all debts and obligations (other than with respect to the
Securities) and all costs and expenses of the Trust, the offering, sale and issuance of the
Securities, the costs and expenses (including reasonable counsel fees and expenses) of the
Institutional Trustee and the Administrators, the costs and expenses relating to the operation of
the Trust, including, without limitation, costs and expenses of accountants, attorneys, statistical
or bookkeeping services, expenses for printing and engraving and computing or accounting equipment,
Paying Agents, Registrars, Transfer Agents, duplicating, travel and telephone and other
telecommunications expenses and costs and expenses incurred in connection with the acquisition,
financing, and disposition of Trust assets and the enforcement by the Institutional Trustee of the
rights of the Holders (for purposes of clarification, this Section does not contemplate the payment
by the Sponsor of acceptance or annual administration fees owing to the Trustees pursuant to the
services to be provided by the Trustees under this Declaration or the fees and expenses of the
Trustees’ counsel in connection with the closing of the transactions contemplated by this
Declaration); and

          (c) pay any and all taxes (other than United States withholding taxes attributable to the
Trust or its assets) and all liabilities, costs and expenses with respect to such taxes of the
Trust.

     The Sponsor’s obligations under this Section shall be for the benefit of, and shall be
enforceable by, any Person to whom such debts, obligations, costs, expenses and taxes are owed (a
“Creditor”) whether or not such Creditor has received notice hereof. Any such Creditor may enforce
the Sponsor’s obligations under this Section directly against the Sponsor and the Sponsor
irrevocably waives any right or remedy to require that any such Creditor take any action against
the Trust or any other Person before proceeding against the Sponsor. The Sponsor agrees to execute
such additional agreements as may be necessary or desirable in order to give full effect to the
provisions of this Section.

     SECTION 3.4. Right to Proceed. The Sponsor acknowledges the rights of Holders to
institute a Direct Action as set forth in Section 2.8(e).

ARTICLE IV

TRUSTEES AND ADMINISTRATORS

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

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

          (b) after the issuance of any Securities, the number of Trustees may be increased or decreased
by vote of the Holder of a Majority in liquidation amount of the Common Securities voting as a
class at a meeting of the Holder of the Common Securities; provided, however, that
there shall be a Delaware Trustee if required by Section 4.2; and there shall always be one Trustee
who shall be the Institutional Trustee, and such Trustee may also serve as Delaware Trustee if it
meets the applicable requirements, in which case Section 2.11 shall have no application to such
entity in its capacity as Institutional Trustee.

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

          (a) a natural person at least 21 years of age who is a resident of the State of Delaware; or

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

          (c) The initial Delaware Trustee shall be Wilmington Trust Company.

     SECTION 4.3. Institutional Trustee; Eligibility.

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

     (i) not be an Affiliate of the Sponsor;

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

     (iii) be a banking corporation, trust company or national association organized
and doing business under the laws of the United States of America or any state
thereof or of the District of Columbia and authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least fifty
million U.S. dollars ($50,000,000), and subject to supervision or examination by
federal, state or District of Columbia authority. If such corporation, trust
company or national association publishes reports of condition at least annually,
pursuant to law or to the requirements of the supervising or examining authority
referred to above, then for the purposes of this Section 4.3(a)(iii), the combined
capital and surplus of such corporation, trust company or national association shall
be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published.

          (b) If at any time the Institutional Trustee shall cease to be eligible to so act under
Section 4.3(a), the Institutional Trustee shall immediately resign in the manner and with the
effect set forth in Section 4.7.

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

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

     SECTION 4.4. [Reserved].

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     SECTION 4.5. Administrators. Each Administrator shall be a U.S. Person and a natural
person 21 years or older or, if not a natural person, an entity which is organized under the laws
of the United States or any state thereof or the District of Columbia, and authorized to bind the
Sponsor. The initial Administrators shall be Mark T. Hammond and Paul D. Borja. There shall at
all times be at least one Administrator. Except where a requirement for action by a specific
number of Administrators is expressly set forth in this Declaration and except with respect to any
action the taking of which is the subject of a meeting of the Administrators, any action required
or permitted to be taken by the Administrators may be taken by, and any power of the Administrators
may be exercised by, or with the consent of, any one such Administrator acting alone.

     SECTION 4.6. [Reserved].

     SECTION 4.7. Appointment, Removal and Resignation of the Trustees and the
Administrators.

          (a) No resignation or removal of any Trustee (the “Relevant Trustee”) and no appointment of a
successor Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable requirements of this Section
4.7.

          (b) Subject to Section 4.7(a), a Relevant Trustee may resign at any time by giving written
notice thereof to the Holders of the Securities and by appointing a successor Relevant Trustee,
except in the case of the Delaware Trustee’s successor which shall be appointed by Holders of a
Majority in liquidation amount of the Common Securities. Upon the resignation of the Institutional
Trustee, the Institutional Trustee shall appoint a successor by requesting from at least three
Persons meeting the eligibility requirements their expenses and charges to serve as the successor
Institutional Trustee on a form provided by the Administrators, and selecting the Person who agrees
to the lowest reasonable expense and charges (the “Successor Institutional Trustee”). If the
instrument of acceptance by the successor Relevant Trustee required by this Section 4.7 shall not
have been delivered to the Relevant Trustee within 60 days after the giving of such notice of
resignation or delivery of the instrument of removal, the Relevant Trustee may petition, at the
expense of the Trust, any federal, state or District of Columbia court of competent jurisdiction
for the appointment of a successor Relevant Trustee. Such court may thereupon, after prescribing
such notice, if any, as it may deem proper, appoint a Relevant Trustee. The Institutional Trustee
shall have no liability for the selection of such successor pursuant to this Section 4.7.

          (c) Unless an Event of Default shall have occurred and be continuing, any Trustee may be
removed at any time by an act of the Holders of a Majority in liquidation amount of the Common
Securities. If any Trustee shall be so removed, the Holders of the Common Securities, by act of
the Holders of a Majority in liquidation amount of the Common Securities delivered to the Relevant
Trustee, shall promptly appoint a successor Relevant Trustee, and such successor Trustee shall
comply with the applicable requirements of this Section 4.7. If an Event of Default shall have
occurred and be continuing, the Institutional Trustee or the Delaware Trustee, or both of them, may
be removed by the act of the Holders of a Majority in liquidation amount of the Capital Securities,
delivered to the Relevant Trustee (in its individual capacity and

28

 

on behalf of the Trust). If any Trustee shall be so removed, the Holders of Capital
Securities, by act of the Holders of a Majority in liquidation amount of the Capital Securities
then outstanding delivered to the Relevant Trustee, shall promptly appoint a successor Relevant
Trustee or Trustees, and such successor Trustee shall comply with the applicable requirements of
this Section 4.7. If no successor Relevant Trustee shall have been so appointed by the Holders of
a Majority in liquidation amount of the Capital Securities and accepted appointment in the manner
required by this Section 4.7 within 30 days after delivery of an instrument of removal, the
Relevant Trustee or any Holder who has been a Holder of the Securities for at least six months may,
on behalf of himself and all others similarly situated, petition any federal, state or District of
Columbia court of competent jurisdiction for the appointment of a successor Relevant Trustee. Such
court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a
successor Relevant Trustee or Trustees.

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

          (e) Notwithstanding the foregoing or any other provision of this Declaration, in the event a
Delaware Trustee who is a natural person dies or is adjudged by a court to have become incompetent
or incapacitated, the vacancy created by such death, incompetence or incapacity may be filled by
the Institutional Trustee (provided the Institutional Trustee satisfies the requirements of a
Delaware Trustee as set forth in Section 4.2) following the procedures in this Section 4.7 (with
the successor being a Person who satisfies the eligibility requirement for a Delaware Trustee set
forth in this Declaration) (the “Successor Delaware Trustee”).

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

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

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

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

     SECTION 4.8. Vacancies Among Trustees. If a Trustee ceases to hold office for any
reason and the number of Trustees is not reduced pursuant to Section 4.1, or if the number of
Trustees is increased pursuant to Section 4.1, a vacancy shall occur. A resolution certifying the
existence of such vacancy by the Trustees or, if there are more than two, a majority of the
Trustees shall be conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a Trustee appointed in accordance with Section 4.7.

     SECTION 4.9. Effect of Vacancies. The death, resignation, retirement, removal,
bankruptcy, dissolution, liquidation, incompetence or incapacity to perform the duties of a Trustee
shall not operate to dissolve, terminate or annul the Trust or terminate this Declaration.
Whenever a vacancy in the number of Trustees shall occur, until such vacancy is filled by the
appointment of a Trustee in accordance with Section 4.7, the Institutional Trustee shall have all
the powers granted to the Trustees and shall discharge all the duties imposed upon the Trustees by
this Declaration.

     SECTION 4.10. Meetings of the Trustees and the Administrators. Meetings of the
Trustees or the Administrators shall be held from time to time upon the call of any Trustee or
Administrator, as applicable. Regular meetings of the Trustees and the Administrators,
respectively, may be in person in the United States or by telephone, at a place (if applicable) and
time fixed by resolution of the Trustees or the Administrators, as applicable. Notice of any
in-person meetings of the Trustees or the Administrators shall be hand delivered or otherwise
delivered in writing (including by facsimile, with a hard copy by overnight courier) not less than
48 hours before such meeting. Notice of any telephonic meetings of the Trustees or the
Administrators or any committee thereof shall be hand delivered or otherwise delivered in writing
(including by facsimile, with a hard copy by overnight courier) not less than 24 hours before a
meeting. Notices shall contain a brief statement of the time, place and anticipated purposes of
the meeting. The presence (whether in person or by telephone) of a Trustee or an Administrator, as
the case may be, at a meeting shall constitute a waiver of notice of such meeting except where a
Trustee or an Administrator, as the case may be, attends a meeting for the express purpose of
objecting to the transaction of any activity on the grounds that the meeting has not been lawfully
called or convened. Unless provided otherwise in this Declaration, any action of the Trustees or
the Administrators, as the case may be, may be taken at a meeting by vote of a majority of the
Trustees or the Administrators present (whether in person or by telephone) and eligible to vote
with respect to such matter; provided, that, in the case of the Administrators, a Quorum is
present, or without a meeting by the unanimous written consent of

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the Trustees or the Administrators, as the case may be. Meetings of the Trustees and the
Administrators together shall be held from time to time upon the call of any Trustee or
Administrator.

     SECTION 4.11. Delegation of Power.

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

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

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

     SECTION 4.12. Merger, Conversion, Consolidation or Succession to Business.

          Any Person into which the Institutional Trustee or the Delaware Trustee, as the case may be,
may be merged or converted or with which either may be consolidated, or any Person resulting from
any merger, conversion or consolidation to which the Institutional Trustee or the Delaware Trustee,
as the case may be, shall be a party, or any Person succeeding to all or substantially all the
corporate trust business of the Institutional Trustee or the Delaware Trustee, as the case may be,
shall be the successor of the Institutional Trustee or the Delaware Trustee, as the case may be,
hereunder, without the execution or filing of any paper or any further act on the part of any of
the parties hereto, provided such Person shall be otherwise qualified and eligible under this
Article and, provided, further, that such Person shall file an amendment to the Certificate of
Trust with the Secretary of State of the State of Delaware as contemplated in Section 4.7(i).

ARTICLE V

DISTRIBUTIONS

     SECTION 5.1. Distributions.

          (a) Holders shall receive Distributions in accordance with the applicable terms of the
relevant Holder’s Securities. Distributions shall be made on the Capital Securities and the Common
Securities in accordance with the preferences set forth in their respective terms. If and to the
extent that the Debenture Issuer makes a payment of interest (including any Additional Interest or
Deferred Interest) or premium, if any, on and/or principal on the Debentures held by the
Institutional Trustee (the amount of any such payment being a “Payment

31

 

Amount”), the Institutional Trustee shall and is directed, to the extent funds are available
in the Property Account for that purpose, to make a distribution (a “Distribution”) of the Payment
Amount to Holders. For the avoidance of doubt, funds in the Property Account shall not be
distributed to Holders to the extent of any taxes payable by the Trust, in the case of withholding
taxes, as determined by the Institutional Trustee or any Paying Agent and, in the case of taxes
other than withholding tax taxes, as determined by the Administrators in a written notice to the
Institutional Trustee.

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

ARTICLE VI

ISSUANCE OF SECURITIES

     SECTION 6.1. General Provisions Regarding Securities.

          (a) The Administrators shall on behalf of the Trust issue one series of capital securities,
evidenced by a certificate substantially in the form of Exhibit A-1, representing undivided
beneficial interests in the assets of the Trust and having such terms as are set forth in Annex I
(the “Capital Securities”), and one series of common securities, evidenced by a certificate
substantially in the form of Exhibit A-2, representing undivided beneficial interests in the assets
of the Trust and having such terms as are set forth in Annex I (the “Common Securities”). The
Trust shall issue no securities or other interests in the assets of the Trust other than the
Capital Securities and the Common Securities. The Capital Securities rank pari passu to, and
payment thereon shall be made Pro Rata with, the Common Securities except that, where an Event of
Default has occurred and is continuing, the rights of Holders of the Common Securities to payment
in respect of Distributions and payments upon liquidation, redemption and otherwise are
subordinated to the rights to payment of the Holders of the Capital Securities as set forth in
Annex I.

          (b) The Certificates shall be signed on behalf of the Trust by one or more Administrators.
Such signature shall be the facsimile or manual signature of any Administrator. In case any
Administrator of the Trust who shall have signed any of the Securities shall cease to be such
Administrator before the Certificates so signed shall be delivered by the Trust, such Certificates
nevertheless may be delivered as though the person who signed such Certificates had not ceased to
be such Administrator. Any Certificate may be signed on behalf of the Trust by such person who, at
the actual date of execution of such Security, shall be an Administrator of the Trust, although at
the date of the execution and delivery of this Declaration any such person

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was not such an Administrator. A Capital Security shall not be valid until authenticated by
the manual signature of an Authorized Officer of the Institutional Trustee. Such signature shall
be conclusive evidence that the Capital Security has been authenticated under this Declaration.
Upon written order of the Trust signed by one Administrator, the Institutional Trustee shall
authenticate the Capital Securities for original issue. The Institutional Trustee may appoint an
authenticating agent that is a U.S. Person acceptable to the Trust to authenticate the Capital
Securities. A Common Security need not be so authenticated and shall be valid upon execution by
one or more Administrators.

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

          (d) Upon issuance of the Securities as provided in this Declaration, the Securities so issued
shall be deemed to be validly issued, fully paid and, except as provided in Section 9.1(b) with
respect to the Common Securities, non-assessable, and each Holder thereof shall be entitled to the
benefits provided by this Declaration.

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

     SECTION 6.2. Paying Agent, Transfer Agent and Registrar. The Trust shall maintain an
office or agency where the Securities may be presented for payment (the “Paying Agent”), and an
office or agency where Securities may be presented for registration of transfer or exchange (the
“Transfer Agent”). The Trust hereby appoints the Institutional Trustee as Paying Agent and
Transfer Agent at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-1600.
The Trust shall also keep or cause to be kept a register for the purpose of registering Securities
and transfers and exchanges of Securities, such register to be held by a registrar (the
“Registrar”). The Administrators may appoint the Paying Agent, the Registrar and the Transfer
Agent, and may appoint one or more additional Paying Agents, one or more co-Registrars, or one or
more co-Transfer Agents in such other locations as it shall determine. The term “Paying Agent”
includes any additional Paying Agent, the term “Registrar” includes any additional Registrar or
co-Registrar and the term “Transfer Agent” includes any additional Transfer Agent or co-Transfer
Agent. The Administrators may change any Paying Agent, Transfer Agent or Registrar at any time
without prior notice to any Holder. The Administrators shall notify the Institutional Trustee of
the name and address of any Paying Agent, Transfer Agent and Registrar not a party to this
Declaration. The Administrators hereby initially appoint the Institutional Trustee to act as
Registrar for the Capital Securities and the Common Securities at its Corporate Trust Office. The
Institutional Trustee or any of its Affiliates in the United States may act as Paying Agent,
Transfer Agent or Registrar.

     SECTION 6.3. Form and Dating.

          (a) The Capital Securities and the Institutional Trustee’s certificate of authentication
thereon shall be substantially in the form of Exhibit A-1, and the Common Securities shall be
substantially in the form of Exhibit A-2, each of which is hereby incorporated

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

          (b) The Capital Securities initially issued shall be issued in the form of one or more
definitive Capital Securities Certificates. The Common Securities initially issued shall be issued
in the form of one or more definitive Common Securities Certificates.

     SECTION 6.4. Book-Entry Capital Securities. This Section 6.4 shall be inapplicable
until such time as the Sponsor determines at the request of the Holders, to provide for the
issuance of Book-Entry Capital Securities.

          (a) A Global Capital Security may be exchanged, in whole or in part, for definitive Capital
Securities Certificates registered in the names of Owners only if such exchange complies with
Article VIII and (i) the Depositary advises the Administrators and the Institutional Trustee in
writing that the Depositary is no longer willing or able properly to discharge its responsibilities
with respect to the Global Capital Security, and no qualified successor is appointed by the
Administrators within ninety (90) days of receipt of such notice, (ii) the Depositary ceases to be
a clearing agency registered under the Exchange Act and the Administrators fail to appoint a
qualified successor within ninety (90) days of obtaining knowledge of such event, (iii) the
Administrators at their option advise the Institutional Trustee in writing that the Trust elects to
terminate the book-entry system through the Depositary or (iv) an Indenture Event of Default has
occurred and is continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii)
or (iv) above, the Administrators shall notify the Depositary and instruct the Depositary to notify
all Owners of Book-Entry Capital Securities and the Institutional Trustee of the occurrence of such
event and of the availability of definitive Capital Securities Certificates to Owners of the
Capital Securities requesting the same. Upon the issuance of definitive Capital Securities
Certificates, the Administrators and the Institutional Trustee shall recognize the Holders of the
definitive Capital Securities Certificates as Holders. Notwithstanding the foregoing, if an Owner
of a beneficial interest in a Global Capital Security wishes at any time to transfer an interest in
such Global Capital Security to a Person other than a QIB, such transfer shall be effected, subject
to the Applicable Depository Procedures, in accordance with the provisions of this Section 6.4 and
Article VIII, and the transferee shall receive a definitive Capital Securities Certificate in
connection with such transfer. A holder of a definitive Capital Securities Certificate that is a
QIB may upon request, and in accordance with

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the provisions of this Section 6.4 and Article VIII, exchange such definitive Capital
Securities Certificate for a beneficial interest in a Global Capital Security.

          (b) If any Global Capital Security is to be exchanged for definitive Capital Securities
Certificates or canceled in part, or if any definitive Capital Securities Certificate is to be
exchanged in whole or in part for any Global Capital Security, then either (i) such Global Capital
Security shall be so surrendered for exchange or cancellation as provided in this Section 6.4 and
Article VIII or (ii) the aggregate liquidation amount represented by such Global Capital Security
shall be reduced, subject to Section 6.3, or increased by an amount equal to the liquidation amount
represented by that portion of the Global Capital Security to be so exchanged or canceled, or equal
to the liquidation amount represented by such definitive Capital Securities Certificates to be so
exchanged for any Global Capital Security, as the case may be, by means of an appropriate
adjustment made on the records of the Securities Registrar, whereupon the Institutional 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 to the Administrators or the Registrar of any Global Capital Security or Securities by
the Depositary, accompanied by registration instructions, the Administrators, or any one of them,
shall execute the definitive Capital Securities Certificates in accordance with the instructions of
the Depositary. None of the Registrar, Administrators, or the Institutional Trustee shall 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.

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

          (d) The Depositary or its nominee, as registered owner of a Global Capital Security, shall be
the Holder of such Global Capital Security for all purposes under this Declaration and the Global
Capital Security, and Owners with respect to a Global Capital Security shall hold such interests
pursuant to the Applicable Depositary Procedures. The Registrar, the Administrators and the
Institutional Trustee shall be entitled to deal with the Depositary for all purposes of this
Declaration relating to the Global Capital Securities (including the payment of the liquidation
amount of and Distributions on the Book-Entry Capital Securities represented thereby and the giving
of instructions or directions by Owners of Book-Entry Capital Securities represented thereby and
the giving of notices) as the sole Holder of the Book-Entry Capital Securities represented thereby
and shall have no obligations to the Owners thereof. None of the Administrators, the Institutional
Trustee nor the Registrar shall have any liability in respect of any transfers effected by the
Depositary.

          (e) The rights of the Owners of the Book-Entry Capital Securities shall be exercised only
through the Depositary and shall be limited to those established by law, the Applicable Depositary
Procedures and agreements between such Owners and the Depositary and/or the Depositary
Participants; provided, solely for the purpose of determining whether the Holders of the requisite
amount of Capital Securities have voted on any matter provided for in this Declaration, to the
extent that Capital Securities are represented by a Global Capital

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Security, the Administrators and the Institutional Trustee may conclusively rely on, and shall
be fully protected in relying on, any written instrument (including a proxy) delivered to the
Institutional Trustee by the Depositary setting forth the Owners’ votes or assigning the right to
vote on any matter to any other Persons either in whole or in part. To the extent that Capital
Securities are represented by a Global Capital Security, the initial Depositary will make
book-entry transfers among the Depositary Participants and receive and transmit payments on the
Capital Securities that are represented by a Global Capital Security to such Depositary
Participants, and none of the Sponsor, the Administrators or the Institutional Trustee shall have
any responsibility or obligation with respect thereto.

          (f) To the extent that a notice or other communication to the Holders is required under this
Declaration, at such time as and for so long as Capital Securities are represented by a Global
Capital Security, the Administrator and the Institutional Trustee shall give all such notices and
communications to the Depositary, and shall have no obligations to the Owners.

     SECTION 6.5. Mutilated, Destroyed, Lost or Stolen Certificates. If: (a) any
mutilated Certificates should be surrendered to the Registrar, or if the Registrar shall receive
evidence to its satisfaction of the destruction, loss or theft of any Certificate; and (b) there
shall be delivered to the Registrar, the Administrators and the Institutional Trustee such security
or indemnity as may be required by them to hold each of them harmless; then, in the absence of
notice that such Certificate shall have been acquired by a protected purchaser, an Administrator on
behalf of the Trust shall execute (and in the case of a Capital Security Certificate, the
Institutional Trustee shall authenticate) and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like denomination. In
connection with the issuance of any new Certificate under this Section 6.5, the Registrar or the
Administrators may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith. Any duplicate Certificate issued pursuant to
this Section shall constitute conclusive evidence of an ownership interest in the relevant
Securities, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall
be found at any time.

     SECTION 6.6. Temporary Securities. Until definitive Securities are ready for
delivery, the Administrators may prepare and, in the case of the Capital Securities, the
Institutional Trustee shall authenticate, “Temporary Securities.” Temporary Securities shall be
substantially in form of definitive Securities but may have variations that the Administrators
consider appropriate for temporary Securities. Without unreasonable delay, the Administrators
shall prepare and, in the case of the Capital Securities, the Institutional Trustee shall
authenticate definitive Securities in exchange for temporary Securities.

     SECTION 6.7. Cancellation. The Administrators at any time may deliver Securities to
the Registrar for cancellation. The Registrar shall forward to the Institutional Trustee any
Securities surrendered to it for registration of transfer, redemption or payment. The
Institutional Trustee shall promptly cancel all Securities surrendered for registration of
transfer, payment, replacement or cancellation and shall dispose of such canceled Securities in
accordance with its standard procedures or otherwise as the Administrators direct. The
Administrators may not issue new Securities to replace Securities that have been paid or, except
for Securities surrendered for

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purposes of transfer or exchange, that have been delivered to the Institutional Trustee for
cancellation.

     SECTION 6.8. Rights of Holders; Waivers of Past Defaults.

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

          (b) For so long as any Capital Securities remain outstanding, if, upon an Indenture Event of
Default under paragraphs (c), (e), (f) or (g) of Section 5.01 of the Indenture, the Debenture
Trustee fails or the holders of not less than 25% in principal amount of the outstanding Debentures
fail to declare the principal of all of the Debentures to be immediately due and payable, the
Holders of not less than a Majority in liquidation amount of the Capital Securities then
outstanding shall have the right to make such declaration by a notice in writing to the
Institutional Trustee, the Sponsor and the Debenture Trustee.

          (c) Upon an Indenture Event of Default under paragraphs (c), (e), (f) or (g) of Section 5.01
of the Indenture at any time after a declaration of acceleration of maturity of the Debentures has
been made and before a judgment or decree for payment of the money due has been obtained by the
Debenture Trustee as provided in the Indenture, if the Institutional Trustee, subject to the
provisions hereof, fails to annul any such declaration and waive such default, the Holders of not
less than a Majority in liquidation amount of the Capital Securities, by written notice to the
Institutional Trustee, the Sponsor and the Debenture Trustee, may rescind and annul such
declaration and its consequences if:

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

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

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

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

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

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

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

          (e) Upon receipt by the Institutional Trustee of written notice declaring such an
acceleration, or rescission and annulment thereof, by Holders of any part of the Capital
Securities, a record date shall be established for determining Holders of outstanding Capital
Securities entitled to join in such notice, which record date shall be at the close of business on
the day the Institutional Trustee receives such notice. The Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to join in such notice, whether
or not such Holders remain Holders after such record date; provided, that, unless such declaration
of acceleration, or rescission and annulment, as the case may be, shall have become effective by
virtue of the requisite percentage having joined in such notice prior to the day that is 90 days
after such record date, such notice of declaration of acceleration, or rescission and annulment, as
the case may be, shall automatically and without further action by any Holder be canceled and of no
further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from
giving, after expiration of such 90-day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is identical to a
written notice that has been canceled pursuant to the proviso to the preceding sentence, in which
event a new record date shall be established pursuant to the provisions of this Section 6.8.

          (f) Except as otherwise provided in this Section 6.8, the Holders of not less than a Majority
in liquidation amount of the Capital Securities may, on behalf of the Holders of all the Capital
Securities, waive any past default or Event of Default and its consequences. Upon such waiver, any
such default or Event of Default shall cease to exist, and any default or Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Declaration, but no such
waiver shall extend to any subsequent or other default or Event of Default or impair any right
consequent thereon.

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ARTICLE VII

DISSOLUTION AND TERMINATION OF TRUST

     SECTION 7.1. Dissolution and Termination of Trust.

          (a) The Trust shall dissolve on the first to occur of

     (i) unless earlier dissolved, on September 15, 2044, the expiration of the term
of the Trust;

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

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

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

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

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

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

     (viii) when all of the Securities shall have been surrendered for conversion,
including conversation (or the payment of) of any Deferred Interest, and the Common
Stock issuable to the Holders upon such conversion (or the cash upon payment of any
Deferred Interest, if applicable) shall have been delivered.

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

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

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ARTICLE VIII

TRANSFER OF INTERESTS

     SECTION 8.1. General.

          (a) Subject to Section 8.1(c), when Capital Securities are presented to the Registrar with a
request to register a transfer or to exchange them for an equal number of Capital Securities
represented by different Certificates, the Registrar shall register the transfer or make the
exchange if the requirements provided for herein for such transactions are met. To permit
registrations of transfers and exchanges, the Trust shall issue and the Institutional Trustee shall
authenticate Capital Securities at the Registrar’s request.

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

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

          (d) The Registrar shall provide for the registration of Securities and of transfers of
Securities, which will be effected without charge but only upon payment (with such indemnity as the
Registrar may require) in respect of any tax or other governmental charges that may be imposed in
relation to it. Upon surrender for registration of transfer of any Securities, the Registrar shall
cause one or more new Securities to be issued in the name of the designated transferee or
transferees. Any Security issued upon any registration of transfer or exchange pursuant to the
terms of this Declaration shall evidence the same Security and shall be entitled to the same
benefits under this Declaration as the Security surrendered upon such registration of transfer or
exchange. Every Security surrendered for registration of transfer shall be accompanied by a
written instrument of transfer in form satisfactory to the Registrar duly executed by the Holder or
such Holder’s attorney duly authorized in writing. Each Security surrendered for registration of
transfer shall be canceled by the Institutional Trustee pursuant to Section 6.7. A transferee of a
Security shall be entitled to the rights and subject to the obligations of a Holder hereunder upon
the receipt by such transferee of a Security. By acceptance of a Security, each transferee shall
be deemed to have agreed to be bound by this Declaration.

          (e) Neither the Trust nor the Registrar shall be required (i) to issue, register the transfer
of, or exchange any Securities during a period beginning at the opening of business 15 days before
the day of any selection of Securities for redemption and ending at the close of

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business on the earliest date on which the relevant notice of redemption is deemed to have
been given to all Holders of the Securities to be redeemed, or (ii) to register the transfer or
exchange of any Security so selected for redemption in whole or in part, except the unredeemed
portion of any Security being redeemed in part.

     SECTION 8.2. Transfer Procedures and Restrictions.

          (a) The Capital Securities shall bear the Restricted Securities Legend (as defined below),
which shall not be removed unless there is delivered to the Trust such satisfactory evidence, which
may include an opinion of counsel reasonably acceptable to the Administrators and the Institutional
Trustee, as may be reasonably required by the Trust or the Institutional Trustee, that neither the
legend nor the restrictions on transfer set forth therein are required to ensure that transfers
thereof comply with the provisions of the Securities Act or that such Securities are not
“restricted” within the meaning of Rule 144 under the Securities Act. Upon provision of such
satisfactory evidence, the Institutional Trustee, at the written direction of the Administrators,
shall authenticate and deliver Capital Securities that do not bear the Restricted Securities Legend
(other than the legend contemplated by Section 8.2(c).

          (b) When Capital Securities are presented to the Registrar (x) to register the transfer of
such Capital Securities, or (y) to exchange such Capital Securities for an equal number of Capital
Securities represented by different Certificates, the Registrar shall register the transfer or make
the exchange as requested if its reasonable requirements for such transaction are met;
provided, however, that the Capital Securities surrendered for registration of
transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in
form reasonably satisfactory to the Administrators, the Institutional Trustee and the Registrar,
duly executed by the Holder thereof or his attorney duly authorized in writing. To permit
registration of transfers and exchanges, the Trust shall execute and the Institutional Trustee
shall authenticate Capital Securities at the Registrar’s request.

          (c) Except as permitted by Section 8.2(a), each Capital Security shall bear a legend (the
“Restricted Securities Legend”) in substantially the following form (the first two legends to be
included solely with respect to Book-Entry Capital Securities) and a Capital Security shall not be
transferred except in compliance with such legend, unless otherwise determined by the Sponsor, upon
advice of counsel, in accordance with applicable law:

     [FOR BOOK-ENTRY CAPITAL SECURITIES ONLY] [THIS CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY
WITHIN THE MEANING OF THE DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS CAPITAL SECURITY IS EXCHANGEABLE FOR
CAPITAL SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION, AND NO TRANSFER OF THIS CAPITAL SECURITY (OTHER
THAN A TRANSFER OF THIS CAPITAL 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.]

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     [FOR BOOK-ENTRY CAPITAL SECURITIES ONLY] [UNLESS THIS CAPITAL SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO FLAGSTAR STATUTORY TRUST XI OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.]

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER
THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE DEBENTURE ISSUER OR THE TRUST, (B) PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (C) TO A “NON U.S. PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO
REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH
(a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR
ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE DEBENTURE ISSUER’S AND THE TRUST’S RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE
AMENDED AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE
ISSUER OR THE TRUST. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL
COMPLY WITH THE FOREGOING RESTRICTIONS.

     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT
IT IS NOT AN EMPLOYEE BENEFIT,

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

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

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

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

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such purported transferee shall be deemed to have no interest whatsoever in such Capital
Securities.

          (e) Neither the Institutional Trustee nor the 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.

     SECTION 8.3. Deemed Security Holders.

     The Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or the
Registrar may treat the Person in whose name any Certificate shall be registered on the books and
records of the Trust as the sole holder of such Certificate and of the Securities represented by
such Certificate for purposes of receiving Distributions and for all other purposes whatsoever and,
accordingly, shall not be bound to recognize any equitable or other claim to or interest in such
Certificate or in the Securities represented by such Certificate on the part of any Person, whether
or not the Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or the
Registrar shall have actual or other notice thereof.

ARTICLE IX

LIMITATION OF LIABILITY OF HOLDERS

OF SECURITIES, TRUSTEES OR OTHERS

     SECTION 9.1. Liability.

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

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

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

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

          (c) Except to the extent provided in Section 9.1(b), and pursuant to § 3803(a) of the
Statutory Trust Act, the Holders of the Securities shall be entitled to the same limitation of
personal liability extended to stockholders of private corporations for profit organized under the
General Corporation Law of the State of Delaware, except as otherwise specifically set forth
herein.

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     SECTION 9.2. Exculpation.

          (a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise
to the Trust or any Covered Person for any loss, damage or claim incurred by reason of any act or
omission performed or omitted by such Indemnified Person in good faith on behalf of the Trust and
in a manner such Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Declaration or by law, except that an Indemnified
Person (other than an Administrator) shall be liable for any such loss, damage or claim incurred by
reason of such Indemnified Person’s negligence or willful misconduct or bad faith with respect to
such acts or omissions and except that an Administrator shall be liable for any such loss, damage
or claim incurred by reason of such Administrator’s gross negligence or willful misconduct or bad
faith with respect to such acts or omissions.

          (b) An Indemnified Person shall be fully protected in relying in good faith upon the records
of the Trust and upon such information, opinions, reports or statements presented to the Trust by
any Person as to matters the Indemnified Person reasonably believes are within such other Person’s
professional or expert competence and, if selected by such Indemnified Person, has been selected by
such Indemnified Person with reasonable care by or on behalf of the Trust, including information,
opinions, reports or statements as to the value and amount of the assets, liabilities, profits,
losses or any other facts pertinent to the existence and amount of assets from which Distributions
to Holders of Securities might properly be paid.

          (c) It is expressly understood and agreed by the parties hereto that insofar as any document,
agreement or certificate is executed on behalf of the Trust by any Trustee (i) such document,
agreement or certificate is executed and delivered by such Trustee, not in its individual capacity,
but solely as Trustee under this Declaration in the exercise of the powers and authority conferred
and vested in it, (ii) each of the representations, undertakings and agreements made on the part of
the Trust is made and intended not as representations, warranties, covenants, undertakings and
agreements by any Trustee in its individual capacity, but is made and intended for the purpose of
binding only the Trust and (iii) under no circumstances shall any Trustee in its individual
capacity be personally liable for the payment of any indebtedness or expenses of the Trust or be
liable for the breach or failure of any obligation, representation, warranty or covenant made or
undertaken by the Trust under this Declaration or any other document, agreement or certificate.

     SECTION 9.3. Fiduciary Duty.

          (a) To the extent that, at law or in equity, an Indemnified Person has duties (including
fiduciary duties) and liabilities relating thereto to the Trust or to any other Covered Person, an
Indemnified Person acting under this Declaration shall not be liable to the Trust or to any other
Covered Person for its good faith reliance on the provisions of this Declaration. The provisions
of this Declaration, to the extent that they restrict or eliminate the duties (including fiduciary
duties) and liabilities of an Indemnified Person otherwise existing at law or in equity, are agreed
by the parties hereto to replace such other duties and liabilities of the Indemnified Person. It
is expressly understood by all parties hereto that there are no implied duties (including fiduciary
duties), obligations or liabilities of any Indemnified Person under this Agreement or

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with respect to the Trust, and any such implied duties, obligations or liabilities are hereby
expressly eliminated.

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

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

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

     SECTION 9.4. Indemnification.

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

     (ii) The Sponsor shall indemnify, to the fullest extent permitted by law, any
Indemnified Person who was or is a party or is threatened to be made a party to any
threatened, pending or completed action or suit by or in the right of the Trust to
procure a judgment in its favor arising out of or in connection with the acceptance
or administration of this Declaration by reason of the fact that such Person is or
was an Indemnified Person against expenses (including reasonable attorneys’ fees and
expenses) actually and reasonably incurred by such Person in connection with the
defense or settlement of such action or suit if such Person

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acted in good faith and in a manner such Person reasonably believed to be in or
not opposed to the best interests of the Trust and except that no such
indemnification shall be made in respect of any claim, issue or matter as to which
such Indemnified Person shall have been adjudged to be liable to the Trust, unless
and only to the extent that the Court of Chancery of Delaware or the court in which
such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such
Person is fairly and reasonably entitled to indemnity for such expenses which such
Court of Chancery or such other court shall deem proper.

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

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

     (v) To the fullest extent permitted by law, expenses (including reasonable
attorneys’ fees and expenses) incurred by an Indemnified Person in defending a
civil, criminal, administrative or investigative action, suit or proceeding referred
to in paragraphs (i) and (ii) of this Section 9.4(a) shall be paid by the Sponsor in
advance of the final disposition of such action, suit or proceeding upon receipt of
an undertaking by or on behalf of such Indemnified Person to repay such amount if it
shall ultimately be determined that such Person is not entitled to be indemnified by
the Sponsor as authorized in this Section 9.4(a). Notwithstanding the foregoing, no
advance shall be made by the Sponsor if a determination is reasonably and promptly
made (1) in the case of a Company Indemnified Person (A) by the Administrators by a
majority vote of a Quorum of disinterested Administrators, (B) if such a Quorum is
not obtainable, or, even if obtainable, if a Quorum of disinterested Administrators
so directs, by independent legal counsel in a written opinion or (C) by the Common
Security Holder of the Trust, that, based upon the facts known to the
Administrators, counsel or the Common Security Holder at the time such determination
is made, such Indemnified Person acted in bad faith or in a manner that such Person
either

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believed to be opposed to or did not believe to be in the best interests of the
Trust, or, with respect to any criminal proceeding, that such Indemnified Person
believed or had reasonable cause to believe such conduct was unlawful, or (2) in the
case of a Fiduciary Indemnified Person, by independent legal counsel in a written
opinion that, based upon the facts known to the counsel at the time such
determination is made, such Indemnified Person acted in bad faith or in a manner
that such Indemnified Person either believed to be opposed to or did not believe to
be in the best interests of the Trust, or, with respect to any criminal proceeding,
that such Indemnified Person believed or had reasonable cause to believe such
conduct was unlawful. In no event shall any advance be made (i) to a Company
Indemnified Person in instances where the Administrators, independent legal counsel
or the Common Security Holder reasonably determine that such Person deliberately
breached such Person’s duty to the Trust or its Common or Capital Security Holders
or (ii) to a Fiduciary Indemnified Person in instances where independent legal
counsel promptly and reasonably determines in a written opinion that such Person
deliberately breached such Person’s duty to the Trust or its Common or Capital
Security Holders.

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

          (c) The indemnification and advancement of expenses provided by, or granted pursuant to, the
other paragraphs of this Section 9.4 shall not be deemed exclusive of any other rights to which
those seeking indemnification and advancement of expenses may be entitled under any agreement, vote
of stockholders or disinterested directors of the Sponsor or Capital Security Holders of the Trust
or otherwise, both as to action in such Person’s official capacity and as to action in another
capacity while holding such office. All rights to indemnification under this Section 9.4 shall be
deemed to be provided by a contract between the Sponsor and each Indemnified Person who serves in
such capacity at any time while this Section 9.4 is in effect. Any repeal or modification of this
Section 9.4 shall not affect any rights or obligations then existing.

          (d) The Sponsor or the Trust may purchase and maintain insurance on behalf of any Person who
is or was an Indemnified Person against any liability asserted against such Person and incurred by
such Person in any such capacity, or arising out of such Person’s status as such, whether or not
the Sponsor would have the power to indemnify such Person against such liability under the
provisions of this Section 9.4.

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          (e) For purposes of this Section 9.4, references to “the Trust” shall include, in addition to
the resulting or surviving entity, any constituent entity (including any constituent of a
constituent) absorbed in a consolidation or merger, so that any Person who is or was a director,
trustee, officer or employee of such constituent entity, or is or was serving at the request of
such constituent entity as a director, trustee, officer, employee or agent of another entity, shall
stand in the same position under the provisions of this Section 9.4 with respect to the resulting
or surviving entity as such Person would have with respect to such constituent entity if its
separate existence had continued.

          (f) The indemnification and advancement of expenses provided by, or granted pursuant to, this
Section 9.4 shall, unless otherwise provided when authorized or ratified, continue as to a Person
who has ceased to be an Indemnified Person and shall inure to the benefit of the heirs, executors
and administrators of such a Person.

          (g) The provisions of this Section 9.4 shall survive the termination of this Declaration or
the earlier resignation or removal of the Institutional Trustee. The obligations of the Sponsor
under this Section 9.4 to compensate and indemnify the Trustees and to pay or reimburse the
Trustees for expenses, disbursements and advances shall constitute additional indebtedness
hereunder. Such additional indebtedness shall be secured by a lien prior to that of the Securities
upon all property and funds held or collected by the Trustees as such, except funds held in trust
for the benefit of the holders of particular Capital Securities, provided, that the Sponsor
is the holder of the Common Securities.

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

     SECTION 9.6. Compensation; Fee.

          (a) The Sponsor agrees:

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

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time to time (which compensation shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust); and

     (ii) except as otherwise expressly provided herein or as may be agreed in
writing in a separate agreement between the Institutional Trustee and the Sponsor,
to reimburse the Trustees upon request for all reasonable, documented expenses,
disbursements and advances incurred or made by the Trustees in accordance with any
provision of this Declaration (including the reasonable compensation and the
expenses and disbursements of their respective agents and counsel), except any such
expense, disbursement or advance attributable to their negligence or willful
misconduct.

For purposes of clarification, this Section 9.6 does not contemplate the payment by the Sponsor of
acceptance or annual administration fees owing to the Trustees under this Declaration or the fees
and expenses of the Trustees’ counsel in connection with the closing of the transactions
contemplated by this Declaration.

          (b) The provisions of this Section 9.6 shall survive the dissolution of the Trust and the
termination of this Declaration and the removal or resignation of any Trustee.

          (c) No Trustee may claim any lien or charge on any property of the Trust (including any Trust
Property) as a result of any amount due pursuant to this Section 9.6.

ARTICLE X

ACCOUNTING

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

     SECTION 10.2. Certain Accounting Matters.

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

          (b) The Administrators shall either (i) cause each Form 10-K and Form 10-Q prepared by the
Sponsor and filed with the Commission in accordance with the Exchange Act to be delivered directly
to each Holder of Securities, within 90 days after the filing of each Form 10-K and within 30 days
after the filing of each Form 10-Q or (ii) cause to be prepared at the principal office of the
Trust in the United States, as defined for purposes of Treasury Regulations § 301.7701-7, and
delivered directly to each of the Holders of Securities, within 90 days after the end of each
Fiscal Year of the Trust, annual financial statements of the Trust, including a balance sheet of
the Trust as of the end of such Fiscal Year, and the related statements of income or loss.

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

          (d) The Administrators shall cause to be duly prepared in the United States, as defined for
purposes of Treasury Regulations 

§ 301.7701-7, and filed an annual United States federal income tax
return on a Form 1041 or such other form required by United States federal income tax law, and any
other annual income tax returns required to be filed by the Administrators on behalf of the Trust
with any state or local taxing authority.

          (e) The Administrators will cause the Sponsor’s reports on Form H-b(11) to be delivered to the
Holder promptly following their filing with the Office of Thrift Supervision (“OTS”).

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

     SECTION 10.4. Withholding. The Institutional Trustee or any Paying Agent and the
Administrators shall comply with all withholding requirements under United States federal, state
and local law. As a condition to the payment of any principal of or interest on any Debenture
without the imposition of withholding tax, the Institutional Trustee or any Paying Agent shall
require the previous delivery of properly completed and signed applicable U.S. federal income tax
certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor form) in
the case of a person that is a “United States person” within the meaning of Section 7701(a)(30) of
the Code or an Internal Revenue Service Form W-8 (or applicable successor form) in the case of a
person that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code)
and any other certification acceptable to it to enable the Institutional Trustee or any Paying
Agent and the Trustee to determine their respective duties and liabilities with respect to any
taxes or other charges that they may be required to pay, deduct or withhold in respect of such
Debenture or the holder of such Debenture under any present or future law or regulation of the
United States or any political subdivision thereof or taxing authority therein or to comply with
any reporting or other requirements under any such law or regulation. The Administrators shall
file required forms with applicable jurisdictions and, unless an exemption from withholding is
properly established by a Holder, shall remit amounts withheld with respect to the Holder to
applicable jurisdictions. To the extent that the Institutional Trustee or any Paying Agent is
required to withhold and pay over any amounts to any authority with respect to distributions or
allocations to any Holder, the amount withheld shall be deemed to be a Distribution to the Holder
in the amount of the withholding. In the event of any claimed over-withholding, Holders shall be
limited to an action against the applicable jurisdiction. If the

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amount required to be withheld was not withheld from actual Distributions made, the
Institutional Trustee or any Paying Agent may reduce subsequent Distributions by the amount of such
withholding.

ARTICLE XI

AMENDMENTS AND MEETINGS

     SECTION 11.1. Amendments.

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

     (i) the Institutional Trustee,

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

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

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

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

     (i) unless the Institutional Trustee shall have first received

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

     (B) an opinion of counsel (who may be counsel to the Sponsor or the
Trust) that such amendment is permitted by, and conforms to, the terms of
this Declaration (including the terms of the Securities) and that all
conditions precedent to the execution and delivery of such amendment have
been satisfied; or

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

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

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

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

     (D) cause the Debenture Issuer to be unable to treat an amount equal to
the Liquidation Amount of the Capital Securities as “Tier 1 Capital” for
purposes of the capital adequacy guidelines of the Federal Reserve or OTS,
as applicable (or any successor regulatory authority with jurisdiction over
the Debenture Issuer).

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

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

          (e) Sections 9.1(b) and 9.1(c) and this Section 11.1 shall not be amended without the consent
of all of the Holders of the Securities. Article III shall not be amended without the consent of
the Holders of a Majority in liquidation amount of the Common Securities.

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

          (g) Subject to Section 11.1(a), this Declaration may be modified, amended or supplemented by
the Institutional Trustee and the Holder of a Majority in liquidation amount of the Common
Securities without the consent of the Holders of the Capital Securities to:

     (i) cure any ambiguity;

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

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

     (iv) modify, eliminate or add to any provision of this Declaration to such
extent as may be necessary or desirable, including, without limitation, to ensure
that the Trust will be classified for United States federal income tax purposes at
all times as a grantor trust and will not be required to register as an Investment
Company under the Investment Company Act (including without

53

 

limitation to conform to any change in Rule 3a-5, Rule 3a-7 or any other
applicable rule under the Investment Company Act or written change in interpretation
or application thereof by any legislative body, court, government agency or
regulatory authority) which amendment does not have a material adverse effect on the
rights, preferences or privileges of the Holders of Securities;

     (v) provide for the issuance of Book-Entry Capital Securities in place of
definitive Capital Securities Certificates and the designation of the Capital
Securities for trading in the PORTAL system if available; or

     (vi) permit the qualification hereof and thereof under the Trust Indenture Act
or any similar federal statute hereafter in effect or to permit the qualification of
the Capital Securities for sale under the securities laws of the United States of
America or any of the states of the United States of America, and, if they so
determine, to add to this Declaration such other terms, conditions and provisions as
may be permitted or required by said Trust Indenture Act or similar federal statute;

provided, however, that no such modification, elimination or addition referred to
in clauses (i), (ii), (iii), (iv), (v) or (vi) shall adversely affect in any material respect the
powers, preferences or rights of Holders of Capital Securities.

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

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

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

     (i) notice of any such meeting shall be given to all the Holders of the
Securities having a right to vote thereat at least 7 days and not more than 60 days
before the date of such meeting. Whenever a vote, consent or approval of the
Holders of the Securities is permitted or required under this Declaration or the
rules of any stock exchange on which the Capital Securities are listed or admitted
for trading, if any, such vote, consent or approval may be given at a meeting of

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

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

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

ARTICLE XII

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE

AND DELAWARE TRUSTEE

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

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

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

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

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

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

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

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

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

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

56

 

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

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

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

          (f) if the Delaware Trustee is a natural person, he or she is a resident of the State of
Delaware.

     SECTION 12.3. Representations and Warranties of the Sponsor. The Sponsor represents
and warrants to the Trust, the initial Institutional Trustee and the initial Delaware Trustee at
the date of this Declaration that:

          (a) The Sponsor has been duly incorporated and is an existing corporation in good standing
under the laws of the State of Michigan.

          (b) The execution, delivery and performance of this Declaration by the Sponsor and the
consummation of the transactions contemplated hereby have been duly authorized by the Board of
Directors with respect to the Sponsor.

          (c) This Declaration has been duly and validly executed and delivered by the Sponsor and,
assuming due authorization, execution and delivery by the other parties hereto, is a valid and
binding obligation of the Sponsor enforceable against the Sponsor in accordance with its terms
(except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer and similar laws of general applicability relating to or affecting
creditors’ rights or by general equity principles).

          (d) No other corporate proceedings are necessary for the execution and delivery by the Sponsor
of this Declaration, the performance by it of its obligations hereunder or the consummation by it
of the transactions contemplated hereby, subject, in the case of the authorization of the shares of
Common Stock issuable upon conversion of the Capital Securities, the receipt of stockholder
approval to increase the number of authorized shares of Common Stock of the Sponsor.

          (e) No consent, approval or authorization of, or registration with or notice to, any court,
regulatory body, administrative agency or other governmental agency or body is required for the
execution, delivery or performance by the Sponsor of this Declaration, except for compliance with
the state securities laws and federal securities laws applicable to the offering of the Capital
Securities and such consents, approvals, authorizations or other orders as have been obtained and
are in full force and effect; and

57

 

          (f) The execution, delivery and performance of this Declaration by the Sponsor does not
conflict with or constitute a breach of the Certificate of Incorporation or Bylaws of the Sponsor.

ARTICLE XIII

MISCELLANEOUS

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

          (a) if given to the Trust, in care of the Administrators at the Trust’s mailing address set
forth below (or such other address as the Trust may give notice of to the Holders of the
Securities):

Flagstar Statutory Trust XI

c/o Flagstar Bancorp, Inc.

5151 Corporate Drive

Troy, Michigan 48098

Attention: Paul D. Borja

Telecopy: (248) 312-6833

Telephone: (248) 312-5580

          (b) if given to the Delaware Trustee, at the mailing address set forth below (or such other
address as the Delaware Trustee may give notice of to the Holders of the Securities):

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Attn: Corporate Trust Administration

Facsimile: (302) 636-4140

Telephone:

          (c) if given to the Institutional Trustee, at the Institutional Trustee’s mailing address set
forth below (or such other address as the Institutional Trustee may give notice of to the Holders
of the Securities):

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Wilmington Trust Company

Rodney Square North, 1100 North Market Street, Wilmington, Delaware

19890-1600

Attn: Corporate Trust Administration

Facsimile: (302) 636-4140

Telephone:

          (d) if given to the Holder of the Common Securities, at the mailing address of the Sponsor set
forth below (or such other address as the Holder of the Common Securities may give notice of to the
Trust):

Flagstar Bancorp, Inc.

5151 Corporate Drive

Troy, Michigan 48098

Attention: Paul D. Borja

Telecopy: (248) 312-6833

Telephone: (248) 312-5580

          (e) if given to the Conversion Agent, at the mailing address of the Conversion Agent set forth
below (or such other address as the Conversion Agent may give notice of to the Trust):

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Attn: Corporate Trust Administration

Facsimile: (302) 636-4140

Telephone:

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

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

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

     SECTION 13.3. Intention of the Parties. It is the intention of the parties hereto
that the Trust be classified for United States federal income tax purposes as a grantor trust. The
provisions of this Declaration shall be interpreted to further this intention of the parties.

59

 

     SECTION 13.4. Headings. Headings contained in this Declaration are inserted for
convenience of reference only and do not affect the interpretation of this Declaration or any
provision hereof.

     SECTION 13.5. Successors and Assigns. Whenever in this Declaration any of the
parties hereto is named or referred to, the successors and assigns of such party shall be deemed to
be included, and all covenants and agreements in this Declaration by the Sponsor and the Trustees
shall bind and inure to the benefit of their respective successors and assigns, whether or not so
expressed.

     SECTION 13.6. Partial Enforceability. If any provision of this Declaration, or the
application of such provision to any Person or circumstance, shall be held invalid, the remainder
of this Declaration, or the application of such provision to persons or circumstances other than
those to which it is held invalid, shall not be affected thereby.

     SECTION 13.7. Counterparts. This Declaration may contain more than one counterpart
of the signature page and this Declaration may be executed by the affixing of the signature of each
of the Trustees and Administrators to any of such counterpart signature pages. All of such
counterpart signature pages shall be read as though one, and they shall have the same force and
effect as though all of the signers had signed a single signature page. A counterpart signed and
transmitted electronically or by facsimile shall be treated as an original.

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

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY,

as Delaware Trustee

 	 
	 	By:  	JCM
 	 
	 	 	Name:  	J. Christopher Murphy 	 
	 	 	Title:  	Financial Services Officer 	 

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY, as Institutional

Trustee

 	 
	 	By:  	JCM
 	 
	 	 	Name:  	J. Christopher Murphy 	 
	 	 	Title:  	Financial Services Officer 	 

	 	 	 	 	 
	 	FLAGSTAR BANCORP, INC.,

     as Sponsor

 	 
	 	By:  	Paul D. Borja
 	 
	 	 	Name:  	Paul D. Borja 	 
	 	 	Title:  	Exec VP /CFO 	 

	 	 	 	 	 
	 	 	 
	 	/s/ Mark T. Hammond
 	 
	 	Name:  	Mark T.  Hammond 	 
	 	Administrator 	 

	 	 	 	 	 
	 	 	 
	 	                                                  /s/ Paul D. Borja
 	 
	 	Name:  	Paul D. Borja 	 
	 	Administrator 	 
	 

 

 

ANNEX I

TERMS OF

CAPITAL SECURITIES AND

COMMON SECURITIES

     Pursuant to Section 6.1 of the Amended and Restated Declaration of Trust, dated as of June 30,
2009 (as amended from time to time, the “Declaration”), the designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Capital Securities and the Common
Securities are set out below (each capitalized term used but not defined herein has the meaning set
forth in the Declaration):

     1. Designation and Number.

     (a) Capital Securities. 50,000 Convertible Capital Securities of Flagstar Statutory Trust XI
(the “Trust”), with an aggregate stated liquidation amount with respect to the assets of the Trust
of Fifty Million Dollars ($50,000,000) and a stated liquidation amount with respect to the assets
of the Trust of $1,000 per Capital Security, are hereby designated for the purposes of
identification only as the “Capital Securities.” The Capital Security Certificates evidencing the
Capital Securities shall be substantially in the form of Exhibit A-1 to the Declaration, with such
changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom
or practice or to conform to the rules of any stock exchange on which the Capital Securities are
listed, if any.

     (a) Common Securities. 1,547 Common Securities of the Trust (the “Common Securities”) will be
evidenced by Common Security Certificates substantially in the form of Exhibit A-2 to the
Declaration, with such changes and additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice. The Common Securities will have an aggregate stated
liquidation amount with respect to the assets of the Trust of One Million Five Hundred Forty-Seven
Thousand Dollars ($1,547,000) and a stated liquidation amount with respect to the assets of the
Trust of $1,000 per Common Security.

     2. Distributions.

     (a) Distributions payable on each Security will be payable at a fixed per annum rate of
interest equal to 10% (the “Distribution Rate”) of the stated liquidation amount of $1,000 per
Security (provided, however, that the Distribution Rate for any Distribution Period may not exceed
the highest rate permitted by New York law, as the same may be modified by United States law of
general applicability), such Distribution Rate being the rate of interest payable on the Debentures
to be held by the Institutional Trustee. Except as set forth below in respect of an Extension
Period, Distributions in arrears for more than one quarterly period will bear interest thereon
compounded quarterly at the Distribution Rate (to the extent permitted by applicable law). The
term “Distributions” as used herein includes cash distributions, any such compounded distributions
and any Additional Interest payable on the Debentures unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures held by the
Institutional Trustee and to the extent the Institutional Trustee has funds legally available in
the Property Account therefor. The amount of Distributions payable for any

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Distribution Period will be computed for any full quarterly Distribution Period on the basis
of a 360-day year consisting of twelve 30 day months; provided, however, that upon the occurrence
of a Special Event redemption pursuant to Section 4(a) below the amounts payable pursuant to this
Declaration shall be calculated as set forth in the definition of Special Redemption Price.

     (b) [Reserved]

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

     (d) The Sponsor shall, from time to time, provide any necessary information to the Paying
Agent relating to any original issue discount and interest on the Securities that is included in
any payment and reportable for taxable income calculation purposes.

     (e) Distributions on the Securities will be cumulative, will accrue from the date of original
issuance, and will be payable, subject to extension of Distribution Periods as described herein,
quarterly in arrears on March 15, June 15, September 15 and December 15 of each year (or, if such
day is not a Business Day, then the next succeeding Business Day), commencing September 15, 2009
(each, a “Distribution Payment Date”). Subject to prior submission of Notice (as defined in the
Indenture), and so long as no Event of Default pursuant to paragraphs (c), (e), (f) or (g) of
Section 5.01 of the Indenture has occurred and is continuing, the Debenture Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending the interest
distribution period for up to 20 consecutive quarterly periods (each, an “Extension Period”) at any
time and from time to time on the Debentures, subject to the conditions described below, during
which Extension Period no interest shall be due and payable (except any Additional Interest that
may be due and payable). During any Extension Period, interest will continue to accrue on the
Debentures, and interest on such accrued interest (such accrued interest and interest thereon
referred to herein as “Deferred Interest”) will accrue at an annual rate equal to the Distribution
Rate, compounded quarterly from the date such Deferred Interest would have been payable were it not
for the Extension Period, to the extent permitted by law. No Extension Period may end on a date
other than a Distribution Payment Date. At the end of any such Extension Period, the Debenture
Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures; provided,
however, that no Extension Period may extend beyond the Maturity Date, Redemption Date (to
the extent redeemed) or Special Redemption Date; and provided, further, that,
during any such Extension Period, the Debenture Issuer may not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any
of the Debenture Issuer’s capital stock or (ii) make any payment of principal or premium or
interest on or repay, repurchase or redeem any debt securities of the Debenture Issuer that rank
pari passu in all respects with or junior in interest to the Debentures or (iii) make any payment
under any guarantees of the Debenture Issuer that rank in all respects pari passu with or junior in
interest to the Guarantee (other than, with respect to clauses (i), (ii) or (iii) above, (a)
repurchases, redemptions or other acquisitions of shares of capital stock of the Debenture Issuer
(A) in connection with any employment contract, benefit plan or other similar arrangement with or
for the benefit of one or more employees, officers,

I-2

 

directors or consultants, (B) in connection with a dividend reinvestment or stockholder stock
purchase plan or (C) in connection with the issuance of capital stock of the Debenture Issuer (or
securities convertible into or exercisable for such capital stock), as consideration in an
acquisition transaction entered into prior to the applicable Extension Period, (b) as a result of
any exchange, reclassification, combination or conversion of any class or series of the Debenture
Issuer’s capital stock (or any capital stock of a subsidiary of the Debenture Issuer) for any class
or series of the Debenture Issuer’s capital stock or of any class or series of the Debenture
Issuer’s indebtedness for any class or series of the Debenture Issuer’s capital stock, (c) the
purchase of fractional interests in shares of the Debenture Issuer’s capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being converted or
exchanged, (d) any declaration of a dividend in connection with any stockholder’s rights plan, or
the issuance of rights, stock or other property under any stockholder’s rights plan, or the
redemption or repurchase of rights pursuant thereto, (e) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the dividend is being
paid or ranks pari passu with or junior to such stock and any cash payments in lieu of fractional
shares issued in connection therewith; (f) payments under the Guarantee; or (g) payments of
Deferred Interest in connection with the conversion of Capital Securities pursuant to Section 7(b)
below. Prior to the termination of any Extension Period, the Debenture Issuer may further extend
such period; provided, that such period together with all such previous and further
consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond
the Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption Date. Upon the
termination of any Extension Period and upon the payment of all Deferred Interest, the Debenture
Issuer may commence a new Extension Period, subject to the foregoing requirements. No interest or
Deferred Interest shall be due and payable during an Extension Period, except at the end thereof,
but Deferred Interest shall accrue upon each installment of interest that would otherwise have been
due and payable during such Extension Period until such installment is paid. If Distributions are
deferred, the Distributions due shall be paid on the date that the related Extension Period
terminates to Holders of the Securities as they appear on the books and records of the Trust on
the record date immediately preceding such date. Distributions on the Securities must be paid on
the dates payable (after giving effect to any Extension Period) to the extent that the Trust has
funds legally available for the payment of such distributions in the Property Account of the Trust.
The Trust’s funds available for Distribution to the Holders of the Securities will be limited to
payments received from the Debenture Issuer. The payment of Distributions out of moneys held by
the Trust is guaranteed by the Guarantor pursuant to the Guarantee.

     (f) Distributions on the Securities will be payable to the Holders thereof as they appear on
the books and records of the Registrar on the relevant record dates. The relevant record dates
shall be the Business Day before the relevant Distribution Payment Date. Distributions payable on
any Securities that are not punctually paid on any Distribution Payment Date, as a result of the
Debenture Issuer having failed to make a payment under the Debentures, as the case may be, when due
(taking into account any Extension Period), will cease to be payable to the Person in whose name
such Securities are registered on the relevant record date, and such defaulted Distribution will
instead be payable to the Person in whose name such Securities are registered on the special record
date or other specified date determined in accordance with the Indenture. Notwithstanding anything
to the contrary contained herein, if

I-3

 

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

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

     3. Liquidation Distribution Upon Dissolution. In the event of the voluntary or
involuntary liquidation, dissolution, winding-up or termination of the Trust (each, a
“Liquidation”) other than in connection with a redemption of the Debentures, the Holders of the
Securities will be entitled to receive out of the assets of the Trust available for distribution to
Holders of the Securities, after satisfaction of liabilities to creditors of the Trust (to the
extent not satisfied by the Debenture Issuer), distributions equal to the aggregate of the stated
liquidation amount of $1,000 per Security plus accrued and unpaid Distributions thereon to the date
of payment (such amount being the “Liquidation Distribution”), unless in connection with such
Liquidation, the Debentures in an aggregate stated principal amount equal to the aggregate stated
liquidation amount of such Securities, with an interest rate equal to the Distribution Rate of, and
bearing accrued and unpaid interest in an amount equal to the accrued and unpaid Distributions on,
and having the same record date as, such Securities, after paying or making reasonable provision to
pay all claims and obligations of the Trust in accordance with Section 3808(e) of the Statutory
Trust Act, shall be distributed on a Pro Rata basis to the Holders of the Securities in exchange
for such Securities.

     The Sponsor, as the Holder of all of the Common Securities, has the right at any time to, upon
receipt of an opinion of nationally recognized tax counsel that Holders will not recognize any gain
or loss for United States federal income tax purposes as a result of the distribution of the
Debentures, dissolve the Trust (including without limitation upon the occurrence of a Tax Event, an
Investment Company Event or a Capital Treatment Event), subject to the receipt by the Debenture
Issuer of prior approval from any regulatory authority having jurisdiction over the Sponsor that is
primarily responsible for regulating the activities of the Sponsor if such approval is then
required under applicable capital guidelines or policies of such regulatory authority, and, after
satisfaction of liabilities to creditors of the Trust, cause the Debentures to be distributed to
the Holders of the Securities on a Pro Rata basis in accordance with the aggregate stated
liquidation amount thereof.

     The Trust shall dissolve on the first to occur of (i) September 15, 2044, the expiration of
the term of the Trust, (ii) a Bankruptcy Event with respect to the Sponsor, the Trust or the
Debenture Issuer, (iii) (other than in connection with a merger, consolidation or similar
transaction not prohibited by the Indenture, this Declaration or the Guarantee, as the case may be)
the filing of a certificate of dissolution or its equivalent with respect to the Sponsor or upon

I-4

 

the revocation of the charter of the Sponsor and the expiration of 90 days after the date of
revocation without a reinstatement thereof, (iv) the distribution to the Holders of the Securities
of the Debentures, upon exercise of the right of the Holder of all of the outstanding Common
Securities to dissolve the Trust as described above, (v) the entry of a decree of a judicial
dissolution of the Sponsor or the Trust, or (vi) when all of the Securities shall have been called
for redemption and the amounts necessary for redemption thereof shall have been paid to the Holders
in accordance with the terms of the Securities. As soon as practicable after the dissolution of
the Trust and upon completion of the winding up of the Trust, the Trust shall terminate upon the
filing of a certificate of cancellation with the Secretary of State of the State of Delaware.

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

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

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

     After the date for any distribution of the Debentures upon dissolution of the Trust, (i) the
Securities of the Trust will be deemed to be no longer outstanding, (ii) upon surrender of a
Holder’s Securities certificate, such Holder of the Securities will receive a certificate
representing the Debentures to be delivered upon such distribution; (iii) any certificates
representing the Capital Securities will be deemed to represent undivided beneficial interests in
such of the Debentures as have an aggregate principal amount equal to the aggregate stated
liquidation amount of, with an interest rate identical to the Distribution Rate of, and bearing
accrued and unpaid interest equal to accrued and unpaid distributions on, the Securities until such
certificates are presented to the Debenture Issuer or its agent for transfer or reissuance (and
until such certificates are so surrendered, no payments of interest or principal shall be made to

I-5

 

Holders of Securities in respect of any payments due and payable under the Debentures) and
(iv) all rights of Holders of Securities under the Capital Securities or the Common Securities, as
applicable, shall cease, except the right of such Holders to receive Debentures upon surrender of
certificates representing such Securities.

     4. Redemption and Distribution.

     (a) The Debentures will mature on September 15, 2039. The Debentures may be redeemed by the
Debenture Issuer, in whole or in part, on January 31, 2011 and any March 15, June 15, September 15
or December 15 on or after January 31, 2011 at the Redemption Price, upon not less than 30 nor more
than 60 days’ notice to Holders of such Debentures. In addition, upon the occurrence and
continuation of a Tax Event, an Investment Company Event or a Capital Treatment Event, the
Debentures may be redeemed by the Debenture Issuer in whole or in part, at any time within 90 days
following the occurrence of such Tax Event, Investment Company Event or Capital Treatment Event, as
the case may be (the “Special Redemption Date”), at the Special Redemption Price, upon not less
than 30 nor more than 60 days’ notice to Holders of the Debentures so long as such Tax Event,
Investment Company Event or Capital Treatment Event, as the case may be, is continuing. In each
case, the right of the Debenture Issuer to redeem the Debentures is subject to the Debenture Issuer
having received prior approval from any regulatory authority having jurisdiction over the Debenture
Issuer, if such approval is then required under applicable capital guidelines or policies of such
regulatory authority.

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

I-6

 

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

     “Redemption Date” means the date fixed for the redemption of Capital Securities, which shall
be January 31, 2011 or any March 15, June 15, September 15 or December 15 on or after January 31,
2011.

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

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

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

     “Tax Event” means the receipt by the Debenture Issuer and the Trust of an opinion of counsel
experienced in such matters to the effect that, as a result of any amendment to or change
(including any announced prospective change) in the laws or any regulations thereunder of the
United States or any political subdivision or taxing authority thereof or therein, or as a result
of any official administrative pronouncement (including any private letter ruling, technical advice
memorandum, field service advice, regulatory procedure, notice or announcement including any notice
or announcement of intent to adopt such procedures or regulations) (an “Administrative Action”) or
judicial decision interpreting or applying such laws or regulations, regardless of whether such
Administrative Action or judicial decision is issued to or in connection with a proceeding
involving the Debenture Issuer or the Trust and whether or not subject to review or appeal, which
amendment, clarification, change, Administrative Action or decision is enacted, promulgated or
announced, in each case on or after the date of original issuance of the Debentures, there is more
than an insubstantial risk that: (i) the Trust is, or will be within 90 days of the date of such
opinion, subject to United States federal income tax with respect to income received or accrued on
the Debentures; (ii) if the Debenture Issuer is organized and existing under the laws of the United
States or any state thereof or the District of Columbia, interest payable by the Debenture Issuer
on the Debentures is not, or within 90 days of the date of such opinion, will not be, deductible by
the Debenture Issuer, in whole or in part, for United States federal income tax purposes; or (iii)
the Trust is, or will be within 90 days of the date of such opinion, subject to more than a de
minimis amount of other taxes (including withholding taxes), duties, assessments or other
governmental charges.

     (b) Upon the repayment in full at maturity or redemption in whole or in part of the Debentures
(other than following the distribution of the Debentures to the Holders of the

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Securities), the proceeds from such repayment or payment shall concurrently be applied to
redeem Pro Rata at the applicable Redemption Price, Securities having an aggregate liquidation
amount equal to the aggregate principal amount of the Debentures so repaid or redeemed;
provided, however, that holders of such Securities shall be given not less than 30
nor more than 60 days’ notice of such redemption (other than at the scheduled maturity of the
Debentures).

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

     (d) The Trust may not redeem fewer than all the outstanding Capital Securities unless all
accrued and unpaid Distributions have been paid on all Capital Securities for all quarterly
Distribution periods terminating on or before the date of redemption; provided, that if the Sponsor
redeems any part of the Debentures, the Trust must simultaneously redeem an equal portion of the
Capital Securities.

     (e) Redemption or Distribution Procedures.

     (i) Notice of any redemption of, or notice of distribution of the Debentures in
exchange for, the Securities (a “Redemption/Distribution Notice”) will be given by
the Trust by mail to each Holder of Securities to be redeemed or exchanged not fewer
than 30 nor more than 60 days before the date fixed for redemption or exchange
thereof which, in the case of a redemption, will be the date fixed for redemption of
the Debentures. For purposes of the calculation of the date of redemption or
exchange and the dates on which notices are given pursuant to this Section 4(e)(i),
a Redemption/Distribution Notice shall be deemed to be given on the day such notice
is first mailed by first-class mail, postage prepaid, to Holders of such Securities.
Each Redemption/Distribution Notice shall be addressed to the Holders of such
Securities at the address of each such Holder appearing on the books and records of
the Registrar. No defect in the Redemption/Distribution Notice or in the mailing
thereof with respect to any Holder shall affect the validity of the redemption or
exchange proceedings with respect to any other Holder.

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

     (iii) If the Securities are to be redeemed and the Trust gives a
Redemption/Distribution Notice, which notice may only be issued if the Debentures
are redeemed as set out in this Section 4 (which notice will be irrevocable), then,
provided, that the Institutional Trustee has a sufficient amount of cash in
connection with the related redemption or maturity of the Debentures, the
Institutional Trustee will pay, to the extent available therefor, the relevant
Redemption Price or Special Redemption Price, as applicable, to the Holders of such
Securities, upon surrender of such Holder’s Securities, by check mailed to the
address of each such Holder appearing on the books and records of the Trust

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on the Redemption Date or Special Redemption Date, as applicable. If a
Redemption/Distribution Notice shall have been given and funds deposited as
required, then immediately prior to the close of business on the date of such
deposit, Distributions will cease to accrue on the Securities so called for
redemption and all rights of Holders of such Securities so called for redemption
will cease, except the right of the Holders of such Securities to receive the
applicable Redemption Price or Special Redemption Price, as applicable, specified in

Section 4(a). If any date fixed for redemption of Securities is not a Business Day,
then payment of any such Redemption Price or Special Redemption Price, as
applicable, payable on such date will be made on the next succeeding day that is a
Business Day except that, if such Business Day falls in the next calendar year, such
payment will be made on the immediately preceding Business Day, in each case with
the same force and effect as if made on such date fixed for redemption. If payment
of the Redemption Price or Special Redemption Price, as applicable, in respect of
any Securities is improperly withheld or refused and not paid either by the Trust or
by the Debenture Issuer as guarantor pursuant to the Guarantee, Distributions on
such Securities will continue to accrue at the Distribution Rate from the original
Redemption Date or Special Redemption Date, as applicable, to the actual date of
payment, in which case the actual payment date will be considered the date fixed for
redemption for purposes of calculating the Redemption Price or Special Redemption
Price, as applicable. In the event of any redemption of the Capital Securities
issued by the Trust in part, the Trust shall not be required to (i) issue, register
the transfer of or exchange any Security during a period beginning at the opening of
business 15 days before any selection for redemption of the Capital Securities and
ending at the close of business on the earliest date on which the relevant notice of
redemption is deemed to have been given to all Holders of the Capital Securities to
be so redeemed or (ii) register the transfer of or exchange any Capital Securities
so selected for redemption, in whole or in part, except for the unredeemed portion
of any Capital Securities being redeemed in part.

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

     (v) Subject to the foregoing and applicable law (including, without limitation,
United States federal securities laws), the Sponsor or any of its subsidiaries may
at any time and from time to time purchase outstanding Capital Securities by tender,
in the open market or by private agreement.

     5. Voting Rights — Capital Securities.

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

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

     In the event the consent of the Institutional Trustee, as the holder of the Debentures is
required under the Indenture with respect to any amendment, modification or termination of the
Indenture, the Institutional Trustee may request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination and shall vote with

I-10

 

respect to such amendment, modification or termination as directed by a Majority in
liquidation amount of the Securities voting together as a single class; provided,
however, that where a consent under the Indenture would require the consent of a Super
Majority, the Institutional Trustee may only give such consent at the written direction of the
Holders of not less than the proportion in liquidation amount of such Securities outstanding which
the relevant Super Majority represents of the aggregate principal amount of the Debentures
outstanding. The Institutional Trustee shall not take any such action in accordance with the
written directions of the Holders of the Securities unless the Institutional Trustee has obtained
an opinion of tax counsel to the effect that, as a result of such action, the Trust will not be
classified as other than a grantor trust for United States federal income tax purposes.

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

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

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

     6. Voting Rights — Common Securities.

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

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

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     (c) Subject to Section 6.8 of the Declaration and only after each Event of Default (if any)
with respect to the Capital Securities has been cured, waived or otherwise eliminated and subject
to the requirements of the second to last sentence of this paragraph, the Holders of a Majority in
liquidation amount of the Common Securities, voting separately as a class, may direct the time,
method, and place of conducting any proceeding for any remedy available to the Institutional
Trustee, or exercising any trust or power conferred upon the Institutional Trustee under the
Declaration, including (i) directing the time, method, place of conducting any proceeding for any
remedy available to the Debenture Trustee, or exercising any trust or power conferred on the
Debenture Trustee with respect to the Debentures, (ii) waiving any past default and its
consequences that is waivable under the Indenture, or (iii) exercising any right to rescind or
annul a declaration that the principal of all the Debentures shall be due and payable, provided,
however, that, where a consent or action under the Indenture would require a Super Majority, the
Institutional Trustee may only give such consent or take such action at the written direction of
the Holders of not less than the proportion in liquidation amount of the Common Securities which
the relevant Super Majority represents of the aggregate principal amount of the Debentures
outstanding. Notwithstanding this Section 6(c), the Institutional Trustee shall not revoke any
action previously authorized or approved by a vote or consent of the Holders of the Capital
Securities. Other than with respect to directing the time, method and place of conducting any
proceeding for any remedy available to the Institutional Trustee or the Debenture Trustee as set
forth above, the Institutional Trustee shall not take any action described in clause (i), (ii) or
(iii) above, unless the Institutional Trustee has obtained an opinion of tax counsel to the effect
that for the purposes of United States federal income tax the Trust will not be classified as other
than a grantor trust on account of such action. If the Institutional Trustee fails to enforce its
rights under the Declaration, to the fullest extent permitted by law any Holder of the Common
Securities may institute a legal proceeding directly against any Person to enforce the
Institutional Trustee’s rights under the Declaration, without first instituting a legal proceeding
against the Institutional Trustee or any other Person.

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

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

     7. Conversion Rights. Except as otherwise provided in Section 7(d) below, Holders of
Capital Securities shall have the right solely on April 1, 2010, to cause the Conversion Agent to
convert Capital Securities, in whole or in part, in accordance with the terms of the Declaration
and the Indenture, on behalf of the converting Holders, into Debentures, which Debentures shall

I-12

 

be converted into shares of Common Stock in the manner described herein and in the Indenture
on and subject to the following terms and conditions:

     (a) The Capital Securities are convertible into Debentures which will be convertible into
fully paid and nonassessable shares of Common Stock pursuant to the Holder’s direction to the
Conversion Agent to convert such Capital Securities for a portion of the Debentures theretofore
held by the Trust on the basis of one Capital Security per $1,000 principal amount of Debentures,
and convert such amount of Debentures as promptly as practicable thereafter (and in any event
within two Business Days of the filing with the Conversion Agent of the certificate required by
Section 2.14(f) of the Indenture), into fully paid and nonassessable shares of Common Stock, the
number of shares of Common Stock to be issued equal to the aggregate face amount of Securities
being exchanged divided by the Stock Price (as hereafter defined), subject to adjustment as
described in Section 2.14(d) of the Indenture (the “Conversion Price”). The Conversion Agent may
conclusively rely upon the determination of the Conversion Price by the Company. The “Stock Price”
shall mean, as determined by the Company in accordance with the requirements of the Indenture, the
product of 90% and the volume-weighted average Closing Price of the Common Stock for the period
from February 1, 2009 to April 1, 2010; provided, that the Stock Price shall be no less than $0.80
and no greater than $2.00. Nothing contained herein shall prohibit a Holder from converting
Securities into Common Stock during a Extension Period.

     (b) To convert all or any portion of the Capital Securities into Debentures and to
subsequently convert the Debentures into Common Stock, the Holder shall submit to the Conversion
Agent and to the Sponsor at the office designated therefor a request to convert Securities on
behalf of such Holder which shall be irrevocable except as provided in this Section 7(b) (the
“Conversion Request”), together, if the Securities are in certificated form, with the certificates
representing such Securities, duly endorsed or assigned to the Company or in blank. The Conversion
Request (A) shall set forth the principal amount of the Securities to be converted, and the name or
names, if other than the Holder, in which the shares of Common Stock should be issued; (B) shall
set forth the date of the requested conversion (which date must be April 1, 2010) (the “Conversion
Date”) which Conversion Request shall be delivered no later than the Business Day prior to the
Conversion Date, with the converted Common Stock to be delivered within the time period specified
in Section 7(b)(v) below; (C) may make the election described in Section 7(b)(ii) below; and (D)
shall direct the Conversion Agent (1) to convert such Capital Securities into a portion of the
Debentures held by the Trust (at the rate of exchange specified in the preceding paragraph), and
(2) to as promptly as practicable thereafter (and in any event within two Business Days of the
filing with the Conversion Agent of the certificate required by Section 2.14(f) of the Indenture)
convert such Debentures, on behalf of such Holder, into Common Stock at the Conversion Price. The
Conversion Agent shall notify the Trust of the Holder’s election to convert Capital Securities into
a portion of the Debentures held by the Trust, and the Institutional Trustee on behalf of the Trust
shall, upon receipt of such notice, deliver to the Conversion Agent the appropriate principal
amount of Debentures for conversion in accordance with this section. The Conversion Agent shall
thereupon notify the Sponsor of the Holder’s election to convert such Debentures into shares of
Common Stock. So long as any Securities are outstanding, the Trust shall not convert any
Debentures into shares of Common Stock except pursuant to a Conversion Request delivered to the
Conversion Agent by a holder of Capital Securities.

I-13

 

     (i) Except as provided in Section 7(b)(i) or 7(b)(iii) below, a Holder of
Capital Securities who converts Securities on or prior to a record date shall be
entitled to receive, on the next Distribution Payment Date, a distribution equal to
the amount of all accrued and unpaid Distributions on such converted Capital
Securities, accruing through, but excluding, the date of such conversion.

     (ii) Except as provided in Section 7(b)(iii) below with respect to conversion
of Capital Securities after a Redemption/Distribution Notice has been given, if any
Securities are converted during an Extension Period, the Holder may elect in the
Conversion Request to (x) convert all or any part of the accrued and unpaid
Distributions on the converted Securities into shares of Common Stock on the
Conversion Date in an amount equal to such accrued and unpaid interest divided by
the Conversion Price, provided that such election would not cause Sponsor to be in
violation of applicable NYSE rules or (y) receive such accrued and unpaid
Distributions on the converted Securities up to, but excluding the Conversion Date,
(including Deferred Interest thereon, if any, to the extent permitted by applicable
laws, rules or regulations) on the Distribution Payment Date upon which such
Extension Period ends. In the event that the Holder does not elect either (x) or
(y) in the Conversion Request, the Holder shall be deemed to have elected (y).

     (iii) If a Redemption/Distribution Notice is mailed or otherwise given to
Holders, then, if any Holder converts any Securities on any date on or after the
date on which such Redemption/Distribution Notice is mailed or otherwise given, such
converting Holder shall be entitled to receive on the Conversion Date or as promptly
as practicable thereafter (and in any event within three Business Days of the
Conversion Date), all accrued and unpaid Distributions on such converted Securities
(including Deferred Interest thereon, if any, to the extent permitted by applicable
laws, rules or regulations) through, but excluding, the date of such conversion.

     (iv) The Sponsor shall make no payment or allowance for distributions on the
            shares of Common Stock issued upon such conversion, except to the extent that such
            shares of Common Stock are held of record on the record date for any such
distributions or as otherwise provided in Section 2.14(d) of the Indenture.
Securities shall be deemed to have been converted and the person entitled to receive
such Common Stock shall be treated as record holder thereof immediately prior to
5:00 p.m., Eastern Time, on the Conversion Date. The Person or Persons entitled to
receive Common Stock issuable upon conversion of the Securities shall be treated for
all purposes as the record holder or holders of such Common Stock at such time.

     (v) As promptly as practicable on or after the Conversion Date (and in any
event within two Business Days of the filing with the Conversion Agent of the
certificate required by Section 2.14(f) of the Indenture), the Sponsor shall issue
and deliver at the office of the Conversion Agent a certificate or certificates for
the number of full shares of Common Stock, or Debentures issuable upon such

I-14

 

conversion, or in the case of Common Stock, other written evidence thereof if
the Common Stock ownership is accounted for in a book entry system, together with
the cash payment, if any, in lieu of any fraction of any share, to the Person or
Persons entitled to receive the same, unless otherwise directed by the Holder in the
Conversion Request, and the Conversion Agent shall distribute such certificate(s) or
other written evidence and cash to such Person or Persons. Certificates (with or
without legends, as appropriate) for Common Stock may be transmitted by the Sponsor
and/or the Conversion Agent to the Holder by crediting the account of the Holder’s
prime broker or custodian with Depository Trust Company as directed by such Holder.
The Conversion Agent shall have two Business Days following receipt of any such
certificate or certificates of Common Stock to deliver the same to Holders.

     (c) After April 1, 2010, the conversion rights of holders of the Debentures to convert the
Debentures into Common Stock shall automatically terminate, and the rights of Holders of the
Securities to convert the Securities into Common Stock pursuant to this Section 7 will likewise
terminate.

     (d) Each Holder of a Capital Security, by acceptance thereof, appoints Wilmington Trust
Company as conversion agent (the “Conversion Agent”) for the purpose of effecting the conversion of
Securities and conversion of Debentures in accordance with this Section and the Indenture. In
effecting the conversion transactions described in this Section, the Conversion Agent shall be
acting as agent of the Holders of Securities directing it to effect such transactions. The
Conversion Agent is hereby authorized (i) to convert Securities into Debentures held by the Trust
in connection with the conversion of such Securities in accordance with this Section and, (ii) to
convert all or a portion of the Debentures into Common Stock and thereupon to deliver such shares
of Common Stock in accordance with the provisions of this Section and to deliver to the Trust a new
Debenture for any resulting unconverted principal amount.

     (e) No fractional shares of Common Stock will be issued as a result of conversion, but in lieu
thereof, such fractional interest will be paid in cash (based on the Conversion Price) by the
Sponsor to the Trust, which in turn will make such payment to the Holder or Holders of Securities
so converted.

     (f) The Sponsor shall at all times reserve and keep available out of its authorized and
unissued Common Stock, solely for issuance upon the conversion of the Debentures, free from any
preemptive or other similar rights, such number of such shares of Common Stock as shall from time
to time be issuable upon the conversion of all of the Debentures then outstanding. Notwithstanding
the foregoing, the Sponsor shall be entitled to deliver, upon conversion of Debentures, shares of
Common Stock reacquired and held in the treasury of the Sponsor (in lieu of the issuance of
authorized and unissued shares of Common Stock), so long as any such treasury shares are free and
clear of all liens, charges, security interests or encumbrances. Any shares of Common Stock issued
upon conversion of the Debentures shall be duly authorized, validly issued, fully paid and
nonassessable. The Trust shall deliver the shares of Common Stock received upon conversion of the
Debentures to the converting Holder free and clear of all liens, charges, security interests and
encumbrances, except for United States withholding taxes. Each of the Sponsor and the Trust shall
prepare and shall use its best efforts to obtain and keep in

I-15

 

force such governmental or regulatory permits or other authorizations as may be required by
law, and shall comply with all applicable requirements as to registration or qualification of the
Common Stock issuable upon conversion of Debentures (and all requirements to list such Common Stock
on any national securities exchange or quotation system that are at the time applicable), to enable
the Sponsor lawfully to issue Common Stock to the Trust upon conversion of the Debentures and to
enable the Trust lawfully to deliver Common Stock to each Holder upon such conversion.

     (g) The Sponsor shall pay any and all taxes that may be payable in respect of the issuance or
delivery of shares of Common Stock on conversion of Debentures and the delivery of shares of Common
Stock by the Trust to the Holder upon conversion. The Sponsor shall not, however, be required to
pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of
shares of Common Stock in a name other than that in which the Securities so converted were
registered, and no such issue or delivery shall be made unless and until the Person requesting such
issue has paid to the Trust the amount of any such tax or has established to the satisfaction of
the Trust that such tax has been paid.

     (h) Nothing in the preceding subsection (g) shall limit the requirement of the Trust to
withhold taxes pursuant to the terms of the Securities or as set forth in this Declaration or
otherwise require the Institutional Trustee or the Trust to pay any amounts on account of such
withholding.

     (i) On or after April 2, 2010, Holders of Capital Securities shall have registration rights
with respect to the Capital Securities and the Common Stock issued upon conversion of Debentures,
as set forth in Section 4.7 of the Investment Agreement dated as of December 17, 2008 between the
Company and the original Holder, as if such Capital Securities and Common Stock were “Registrable
Securities” thereunder. In connection therewith, Holders of Capital Securities shall have the
right to request the Sponsor to provide for the exchange of definitive Capital Securities
Certificates for Book-Entry Capital Securities, the designation of the Capital Securities for
trading in the PORTAL system if available and to make any amendments to this Declaration or the
Capital Securities required under the Trust Indenture Act in connection therewith.

     8. Amendments to Declaration and Indenture.

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

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amendment or proposal shall not be effective except with the approval of a Majority in
liquidation amount of such class of Securities.

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

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

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

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

     10. Ranking. The Capital Securities rank pari passu with, and payment thereon shall
be made Pro Rata with, the Common Securities except that, where an Event of Default has occurred
and is continuing, the rights of Holders of the Common Securities to receive payment of
Distributions and payments upon liquidation, redemption and otherwise are subordinated to the
rights of the Holders of the Capital Securities with the result that no payment of any

I-17

 

Distribution on, or Redemption Price or Special Redemption Price of, any Common Security, and
no other payment on account of redemption, liquidation or other acquisition of Common Securities,
shall be made unless payment in full in cash of all accumulated and unpaid Distributions on all
outstanding Capital Securities for all distribution periods terminating on or prior thereto, or in
the case of payment of the Redemption Price or Special Redemption Price the full amount of such
Redemption Price or the Special Redemption Price on all outstanding Capital Securities then called
for redemption, shall have been made or provided for, and all funds immediately available to the
Institutional Trustee shall first be applied to the payment in full in cash of all Distributions
on, or the Redemption Price or the Special Redemption Price of, the Capital Securities then due and
payable.

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

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

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

I-18

 

EXHIBIT A-1

FORM OF CONVERTIBLE CAPITAL SECURITY CERTIFICATE

[FORM OF FACE OF SECURITY]

     [FOR BOOK-ENTRY CAPITAL SECURITIES ONLY] [THIS CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY
WITHIN THE MEANING OF THE DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS CAPITAL SECURITY IS EXCHANGEABLE FOR
CAPITAL SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION, AND NO TRANSFER OF THIS CAPITAL SECURITY (OTHER
THAN A TRANSFER OF THIS CAPITAL 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.

     [FOR BOOK-ENTRY CAPITAL SECURITIES ONLY] [UNLESS THIS CAPITAL SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO FLAGSTAR STATUTORY TRUST XI OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.]

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER
THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE DEBENTURE ISSUER OR THE TRUST, (B) PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (C) TO A “NON U.S. PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO
REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED

 

 

INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
“ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
DEBENTURE ISSUER’S AND THE TRUST’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF
TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

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

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

A-1-2

 

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

A-1-3

 

			
	Certificate Number   [P-001]
	 	Number of Capital Securities:             

[CUSIP No.                                        ]

Certificate Evidencing Convertible Capital Securities

of

Flagstar Statutory Trust XI

(liquidation amount $1,000 per Capital Security)

     Flagstar Statutory Trust XI, a statutory trust created under the laws of the State of Delaware
(the “Trust”), hereby certifies that [                    ] (the “Holder”), is the registered owner of                     
capital securities of the Trust representing undivided beneficial interests in the assets of the
Trust (liquidation amount $1,000 per Capital Security) (the “Capital Securities”). Subject to the
Declaration (as defined below), the Capital Securities are transferable on the books and records of
the Trust, in person or by a duly authorized attorney, upon surrender of this Certificate duly
endorsed and in proper form for transfer. The Capital Securities represented hereby are issued
pursuant to, and the designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Capital Securities shall in all respects be subject to, the provisions of the
Amended and Restated Declaration of Trust of the Trust, dated as of June 30, 2009, among Mark T.
Hammond and Paul D. Borja, as Administrators, Wilmington Trust Company, as Delaware Trustee,
Wilmington Trust Company, as Institutional Trustee, Flagstar Bancorp, Inc., as Sponsor, and the
holders from time to time of undivided beneficial interests in the assets of the Trust, including
the designation of the terms of the Capital Securities as set forth in Annex I to the Declaration,
as the same may be amended from time to time (the “Declaration”). Capitalized terms used herein
but not defined shall have the meaning given them in the Declaration. The Holder is entitled to
the benefits of the Guarantee to the extent provided therein. The Sponsor will provide a copy of
the Declaration, the Guarantee, and the Indenture to the Holder without charge upon written request
to the Sponsor at its principal place of business.

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

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

     This Capital Security is governed by, and shall be construed in accordance with, the laws of
the State of Delaware, without regard to principles of conflict of laws.

A-1-4

 

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

	 	 	 	 	 
	 	FLAGSTAR STATUTORY TRUST XI

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Administrator 	 
	 
	 	Dated:  	 	 

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY, not in its 

individual
capacity but solely as Institutional Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 
	 	Dated:  	 	 

A-1-5

 

[FORM OF REVERSE OF SECURITY]

     Distributions payable on each Capital Security will be payable at a fixed per annum rate of
interest, equal to 10% (the “Distribution Rate”) of the stated liquidation amount of $1,000 per
Capital Security (provided, however, that the Distribution Rate for any Distribution Period may not
exceed the highest rate permitted by New York law, as the same may be modified by United States law
of general applicability), such Distribution Rate being the rate of interest payable on the
Debentures to be held by the Institutional Trustee. Distributions in arrears for more than one
quarterly period will bear interest thereon compounded quarterly at the Distribution Rate for each
such quarterly period (to the extent permitted by applicable law). The term “Distributions” as
used herein includes cash distributions, any such compounded distributions and any Additional
Interest payable on the Debentures unless otherwise stated. A Distribution is payable only to the
extent that payments are made in respect of the Debentures held by the Institutional Trustee and to
the extent the Institutional Trustee has funds legally available in the Property Account therefor.
The amount of Distributions payable for any period shall be computed for any full quarterly
Distribution period on the basis of a 360-day year consisting of twelve 30 day months.

     Except as otherwise described below, Distributions on the Capital Securities will be
cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears
on March 15, June 15, September 15 and December 15 of each year or, if any such day is not a
Business Day, then the next succeeding Business Day, commencing on September 15, 2009 (each, a
“Distribution Payment Date”). Subject to prior submission of Notice (as defined in the Indenture),
and so long as no Event of Default pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of
the Indenture has occurred and is continuing, the Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures by extending the interest distribution
period for up to 20 consecutive quarterly periods (each, an “Extension Period”) at any time and
from time to time on the Debentures, subject to the conditions described below, during which
Extension Period no interest shall be due and payable (except any Additional Interest that may be
due and payable). During any Extension Period, interest will continue to accrue on the Debentures,
and interest on such accrued interest (such accrued interest and interest thereon referred to
herein as “Deferred Interest”) will accrue at an annual rate equal to the Distribution Rate in
effect for each such Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent permitted by law. No
Extension Period may end on a date other than a Distribution Payment Date. At the end of any such
Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on
the Debentures; provided, however, that no Extension Period may extend beyond the
Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption Date. Prior to the
termination of any Extension Period, the Debenture Issuer may further extend such period;
provided, that such period together with all such previous and further consecutive
extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity
Date, Redemption Date (to the extent redeemed) or Special Redemption Date. Upon the termination of
any Extension Period and upon the payment of all Deferred Interest, the Debenture Issuer may
commence a new Extension Period, subject to the foregoing requirements. No interest or Deferred
Interest (except any Additional Amounts that may be due and payable) shall be due and payable
during an Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each
installment of

A-1-6

 

interest that would otherwise have been due and payable during such Extension Period until
such installment is paid. If Distributions are deferred, the Distributions due shall be paid on
the date that the related Extension Period terminates to Holders of the Securities as they appear
on the books and records of the Trust on the record date immediately preceding such date.
Distributions on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds legally available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds available for Distribution
to the Holders of the Securities will be limited to payments received from the Debenture Issuer.
The payment of Distributions out of moneys held by the Trust is guaranteed by the Guarantor
pursuant to the Guarantee.

     The Capital Securities shall be redeemable and convertible into Common Stock of the Sponsor as
provided in the Declaration.

A-1-7

 

ASSIGNMENT

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

	 	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

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

	 	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

(Insert address and zip code of assignee),

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

Date:                                         

Signature:                                         

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

Signature Guarantee:1                                         

 

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

 

 

EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

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

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

A-2-1

 

			
	 	 	 
	Certificate Number   [C-001]
	 	Number of Common Securities:      

Certificate Evidencing Common Securities

of

Flagstar Statutory Trust XI

     Flagstar Statutory Trust XI, a statutory trust created under the laws of the State of Delaware
(the “Trust”), hereby certifies that Flagstar Bancorp, Inc. (the “Holder”) is the registered owner
of ___ common securities of the Trust representing undivided beneficial interests in the assets of
the Trust (liquidation amount $1,000 per Common Security) (the “Common Securities”). The Common
Securities represented hereby are issued pursuant to, and the designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Common Securities shall in all
respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the
Trust, dated as of June 30, 2009, among Mark T. Hammond and Paul D. Borja, as Administrators,
Wilmington Trust Company, as Delaware Trustee, Wilmington Trust Company, as Institutional Trustee,
the Holder, as Sponsor, and the holders from time to time of undivided beneficial interests in the
assets of the Trust, including the designation of the terms of the Common Securities as set forth
in Annex I to the Declaration, as the same may be amended from time to time (the “Declaration”).
Capitalized terms used herein but not defined shall have the meaning given them in the Declaration.
The Sponsor will provide a copy of the Declaration and the Indenture to the Holder without charge
upon written request to the Sponsor at its principal place of business.

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

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

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

     This Common Security is governed by, and shall be construed in accordance with, the laws of
the State of Delaware, without regard to principles of conflict of laws.

A-2-2

 

     IN WITNESS WHEREOF, the Trust has executed this certificate as of this                      day of
                                        , 2009.

	 	 	 	 	 
	 	FLAGSTAR STATUTORY TRUST XI

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Administrator 	 
	 

A-2-3

 

[FORM OF REVERSE OF SECURITY]

     Distributions payable on each Common Security will be identical in amount to the Distributions
payable on each Capital Security, which is at a fixed per annum rate of interest equal to 10% (the
“Distribution Rate”) of the stated liquidation amount of $1,000 per Capital Security (provided,
however, that the Distribution Rate for any Distribution Period may not exceed the highest rate
permitted by New York law, as the same may be modified by United States law of general
applicability), such Distribution Rate being the rate of interest payable on the Debentures to be
held by the Institutional Trustee. Distributions in arrears for more than one quarterly period
will bear interest thereon compounded quarterly at the Distribution Rate for each such quarterly
period (to the extent permitted by applicable law). The term “Distributions” as used herein
includes cash distributions, any such compounded distributions and any Additional Interest payable
on the Debentures unless otherwise stated. A Distribution is payable only to the extent that
payments are made in respect of the Debentures held by the Institutional Trustee and to the extent
the Institutional Trustee has funds legally available in the Property Account therefor. The amount
of Distributions payable for any period shall be computed for any full quarterly Distribution
Period on the basis of a 360-day year consisting of twelve 30 day months.

     Except as otherwise described below, Distributions on the Common Securities will be
cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears
on March 15, June 15, September 15 and December 15 of each year or if any such day is not a
Business Day, then the next succeeding Business Day, commencing on September 15, 2009 (each, a
“Distribution Payment Date”). Subject to prior submission of Notice (as defined in the Indenture),
and so long as no Event of Default pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of
the Indenture has occurred and is continuing, the Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures by extending the interest distribution
period for up to 20 consecutive quarterly periods (each, an “Extension Period”) at any time and
from time to time on the Debentures, subject to the conditions described below, during which
Extension Period no interest shall be due and payable (except any Additional Interest that may be
due and payable). During any Extension Period, interest will continue to accrue on the Debentures,
and interest on such accrued interest (such accrued interest and interest thereon referred to
herein as “Deferred Interest”) will accrue at an annual rate equal to the Distribution Rate in
effect for each such Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent permitted by law. No
Extension Period may end on a date other than a Distribution Payment Date. At the end of any such
Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on
the Debentures; provided, however, that no Extension Period may extend beyond the Maturity Date,
Redemption Date (to the extent redeemed) or Special Redemption Date. Prior to the termination of
any Extension Period, the Debenture Issuer may further extend such period, provided, that such
period together with all such previous and further consecutive extensions thereof shall not exceed
20 consecutive quarterly periods, or extend beyond the Maturity Date, Redemption Date (to the
extent redeemed) or Special Redemption Date. Upon the termination of any Extension Period and upon
the payment of all Deferred Interest, the Debenture Issuer may commence a new Extension Period,
subject to the foregoing requirements. No interest or Deferred Interest (except any Additional
Interest that may be due and payable) shall be due and payable during an Extension

A-2-4

 

Period, except at the end thereof, but Deferred Interest shall accrue upon each installment of
interest that would otherwise have been due and payable during such Extension Period until such
installment is paid. If Distributions are deferred, the Distributions due shall be paid on the
date that the related Extension Period terminates to Holders of the Securities as they appear on
the books and records of the Trust on the record date immediately preceding such date.

     Distributions on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds legally available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds legally available for
Distribution to the Holders of the Securities will be limited to payments received from the
Debenture Issuer. The payment of Distributions out of moneys held by the Trust is guaranteed by
the Guarantor pursuant to the Guarantee.

     The Common Securities shall be redeemable as provided in the Declaration.

A-2-5

 

ASSIGNMENT

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

	 	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

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

	 	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

(Insert address and zip code of assignee),

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

Date:                                         

Signature:                                         

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

Signature Guarantee:1                                         

 

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

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