Document:

Exhibit
10.9

 

 

CHINO COMMERCIAL
BANCORP,

as Company

 

 

INDENTURE

Dated as of October 27, 2006

 

U.S. BANK NATIONAL
ASSOCIATION,

As Trustee

 

JUNIOR
SUBORDINATED DEBT SECURITIES

Due December 15,
2036

 

table of contents

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  

  	
   

  	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS

  	
   

  	
   

  
	
  SECTION 1.01.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
  DEBT SECURITIES

  	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  Authentication and Dating

  	
   

  	
  8

  
	
  SECTION 2.02.

  	
   

  	
  Form of Trustee’s Certificate of Authentication

  	
   

  	
  9

  
	
  SECTION 2.03.

  	
   

  	
  Form and Denomination of Debt Securities

  	
   

  	
  9

  
	
  SECTION 2.04.

  	
   

  	
  Execution of Debt Securities

  	
   

  	
  10

  
	
  SECTION 2.05.

  	
   

  	
  Exchange and Registration of Transfer of Debt
  Securities

  	
   

  	
  10

  
	
  SECTION 2.06.

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Debt Securities

  	
   

  	
  13

  
	
  SECTION 2.07.

  	
   

  	
  Temporary Debt Securities

  	
   

  	
  14

  
	
  SECTION 2.08.

  	
   

  	
  Payment of Interest

  	
   

  	
  14

  
	
  SECTION 2.09.

  	
   

  	
  Cancellation of Debt Securities Paid, etc.

  	
   

  	
  16

  
	
  SECTION 2.10.

  	
   

  	
  Computation of Interest

  	
   

  	
  16

  
	
  SECTION 2.11.

  	
   

  	
  Extension of Interest Payment Period

  	
   

  	
  18

  
	
  SECTION 2.12.

  	
   

  	
  CUSIP Numbers

  	
   

  	
  19

  
	
  SECTION 2.13.

  	
   

  	
  Income Tax Certification

  	
   

  	
  19

  
	
   

  	
   

  	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
  PARTICULAR
  COVENANTS OF THE COMPANY

  	
   

  	
   

  
	
  SECTION 3.01.

  	
   

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

  	
   

  	
  19

  
	
  SECTION 3.02.

  	
   

  	
  Offices for Notices and Payments, etc.

  	
   

  	
  20

  
	
  SECTION 3.03.

  	
   

  	
  Appointments to Fill Vacancies in Trustee’s Office

  	
   

  	
  21

  
	
  SECTION 3.04.

  	
   

  	
  Provision as to Paying Agent

  	
   

  	
  21

  
	
  SECTION 3.05.

  	
   

  	
  Certificate to Trustee

  	
   

  	
  22

  
	
  SECTION 3.06.

  	
   

  	
  Additional Interest

  	
   

  	
  22

  
	
  SECTION 3.07.

  	
   

  	
  Compliance with Consolidation Provisions

  	
   

  	
  22

  
	
  SECTION 3.08.

  	
   

  	
  Limitation on Dividends

  	
   

  	
  23

  
	
  SECTION 3.09.

  	
   

  	
  Covenants as to the Trust

  	
   

  	
  23

  

 i
 

 

 

	
  

  	
   

  	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
  LISTS AND
  REPORTS BY THE COMPANY AND THE TRUSTEE

  	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  Securityholders’ Lists

  	
   

  	
  24

  
	
  SECTION 4.02.

  	
   

  	
  Preservation and Disclosure of Lists

  	
   

  	
  24

  
	
  SECTION 4.03.

  	
   

  	
  Financial and Other Information

  	
   

  	
  25

  
	
   

  	
   

  	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
  REMEDIES OF THE
  TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  Events of Default

  	
   

  	
  26

  
	
  SECTION 5.02.

  	
   

  	
  Payment of Debt Securities on Default; Suit Therefor

  	
   

  	
  28

  
	
  SECTION 5.03.

  	
   

  	
  Application of Moneys Collected by Trustee

  	
   

  	
  29

  
	
  SECTION 5.04.

  	
   

  	
  Proceedings by Securityholders

  	
   

  	
  30

  
	
  SECTION 5.05.

  	
   

  	
  Proceedings by Trustee

  	
   

  	
  30

  
	
  SECTION 5.06.

  	
   

  	
  Remedies Cumulative and Continuing

  	
   

  	
  31

  
	
  SECTION 5.07.

  	
   

  	
  Direction of Proceedings and Waiver of Defaults by
  Majority of Securityholders

  	
   

  	
  31

  
	
  SECTION 5.08.

  	
   

  	
  Notice of Defaults

  	
   

  	
  32

  
	
  SECTION 5.09.

  	
   

  	
  Undertaking to Pay Costs

  	
   

  	
  32

  
	
   

  	
   

  	
  ARTICLE VI

  	
   

  	
   

  
	
   

  	
   

  	
  CONCERNING THE
  TRUSTEE

  	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  Duties and Responsibilities of Trustee

  	
   

  	
  33

  
	
  SECTION 6.02.

  	
   

  	
  Reliance on Documents, Opinions, etc.

  	
   

  	
  34

  
	
  SECTION 6.03.

  	
   

  	
  No Responsibility for Recitals, etc.

  	
   

  	
  35

  
	
  SECTION 6.04.

  	
   

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

  	
   

  	
  35

  
	
  SECTION 6.05.

  	
   

  	
  Moneys to be Held in Trust

  	
   

  	
  35

  
	
  SECTION 6.06.

  	
   

  	
  Compensation and Expenses of Trustee

  	
   

  	
  36

  
	
  SECTION 6.07.

  	
   

  	
  Officers’ Certificate as Evidence

  	
   

  	
  37

  
	
  SECTION 6.08.

  	
   

  	
  Eligibility of Trustee

  	
   

  	
  37

  
	
  SECTION 6.09.

  	
   

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

  	
   

  	
  37

  
	
  SECTION 6.10.

  	
   

  	
  Acceptance by Successor

  	
   

  	
  39

  

 ii
 

 

 

	
  SECTION 6.11.

  	
   

  	
  Succession by Merger, etc.

  	
   

  	
  40

  
	
  SECTION 6.12.

  	
   

  	
  Authenticating Agents

  	
   

  	
  40

  
	
   

  	
   

  	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
  CONCERNING THE
  SECURITYHOLDERS

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  Action by Securityholders

  	
   

  	
  41

  
	
  SECTION 7.02.

  	
   

  	
  Proof of Execution by Securityholders

  	
   

  	
  42

  
	
  SECTION 7.03.

  	
   

  	
  Who Are Deemed Absolute Owners

  	
   

  	
  42

  
	
  SECTION 7.04.

  	
   

  	
  Debt Securities Owned by Company Deemed Not
  Outstanding

  	
   

  	
  42

  
	
  SECTION 7.05.

  	
   

  	
  Revocation of Consents; Future Securityholders Bound

  	
   

  	
  43

  
	
   

  	
   

  	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
   

  	
  SECURITYHOLDERS’
  MEETINGS

  	
   

  	
   

  
	
  SECTION 8.01.

  	
   

  	
  Purposes of Meetings

  	
   

  	
  43

  
	
  SECTION 8.02.

  	
   

  	
  Call of Meetings by Trustee

  	
   

  	
  44

  
	
  SECTION 8.03.

  	
   

  	
  Call of Meetings by Company or Securityholders

  	
   

  	
  44

  
	
  SECTION 8.04.

  	
   

  	
  Qualifications for Voting

  	
   

  	
  44

  
	
  SECTION 8.05.

  	
   

  	
  Regulations

  	
   

  	
  44

  
	
  SECTION 8.06.

  	
   

  	
  Voting

  	
   

  	
  45

  
	
  SECTION 8.07.

  	
   

  	
  Quorum; Actions

  	
   

  	
  45

  
	
  SECTION 8.08.

  	
   

  	
  Written Consent Without a Meeting

  	
   

  	
  46

  
	
   

  	
   

  	
  ARTICLE IX

  	
   

  	
   

  
	
   

  	
   

  	
  SUPPLEMENTAL
  INDENTURES

  	
   

  	
   

  
	
  SECTION 9.01.

  	
   

  	
  Supplemental Indentures without Consent of
  Securityholders

  	
   

  	
  47

  
	
  SECTION 9.02.

  	
   

  	
  Supplemental Indentures with Consent of
  Securityholders

  	
   

  	
  48

  
	
  SECTION 9.03.

  	
   

  	
  Effect of Supplemental Indentures

  	
   

  	
  49

  
	
  SECTION 9.04.

  	
   

  	
  Notation on Debt Securities

  	
   

  	
  49

  
	
  SECTION 9.05.

  	
   

  	
  Evidence of Compliance of Supplemental Indenture to
  be furnished to Trustee

  	
   

  	
  49

  
	
   

  	
   

  	
  ARTICLE X

  	
   

  	
   

  
	
   

  	
   

  	
  REDEMPTION OF
  SECURITIES

  	
   

  	
   

  
	
  SECTION 10.01.

  	
   

  	
  Optional Redemption

  	
   

  	
  50

  
	
  SECTION 10.02.

  	
   

  	
  Special Event Redemption

  	
   

  	
  50

  

 iii
 

 

 

	
  SECTION 10.03.

  	
   

  	
  Notice of Redemption; Selection of Debt Securities

  	
   

  	
  50

  
	
  SECTION 10.04.

  	
   

  	
  Payment of Debt Securities Called for Redemption

  	
   

  	
  51

  
	
   

  	
   

  	
  ARTICLE XI

  	
   

  	
   

  
	
   

  	
   

  	
  CONSOLIDATION,
  MERGER, SALE, CONVEYANCE AND LEASE

  	
   

  	
   

  
	
  SECTION 11.01.

  	
   

  	
  Company May Consolidate, etc., on Certain Terms

  	
   

  	
  51

  
	
  SECTION 11.02.

  	
   

  	
  Successor Entity to be Substituted

  	
   

  	
  52

  
	
  SECTION 11.03.

  	
   

  	
  Opinion of Counsel to be Given to Trustee

  	
   

  	
  53

  
	
   

  	
   

  	
  ARTICLE XII

  	
   

  	
   

  
	
   

  	
   

  	
  SATISFACTION AND
  DISCHARGE OF INDENTURE

  	
   

  	
   

  
	
  SECTION 12.01.

  	
   

  	
  Discharge of Indenture

  	
   

  	
  53

  
	
  SECTION 12.02.

  	
   

  	
  Deposited Moneys to be Held in Trust by Trustee

  	
   

  	
  54

  
	
  SECTION 12.03.

  	
   

  	
  Paying Agent to Repay Moneys Held

  	
   

  	
  54

  
	
  SECTION 12.04.

  	
   

  	
  Return of Unclaimed Moneys

  	
   

  	
  54

  
	
   

  	
   

  	
  ARTICLE XIII

  	
   

  	
   

  
	
   

  	
   

  	
  IMMUNITY OF
  INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
   

  	
   

  
	
  SECTION 13.01.

  	
   

  	
  Indenture and Debt Securities Solely Corporate
  Obligations

  	
   

  	
  54

  
	
   

  	
   

  	
  ARTICLE XIV

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS
  PROVISIONS

  	
   

  	
   

  
	
  SECTION 14.01.

  	
   

  	
  Successors

  	
   

  	
  55

  
	
  SECTION 14.02.

  	
   

  	
  Official Acts by Successor Entity

  	
   

  	
  55

  
	
  SECTION 14.03.

  	
   

  	
  Surrender of Company Powers

  	
   

  	
  55

  
	
  SECTION 14.04.

  	
   

  	
  Addresses for Notices, etc.

  	
   

  	
  55

  
	
  SECTION 14.05.

  	
   

  	
  Governing Law

  	
   

  	
  56

  
	
  SECTION 14.06.

  	
   

  	
  Evidence of Compliance with Conditions Precedent

  	
   

  	
  56

  
	
  SECTION 14.07.

  	
   

  	
  Non-Business Days

  	
   

  	
  56

  
	
  SECTION 14.08.

  	
   

  	
  Table of Contents, Headings, etc.

  	
   

  	
  56

  
	
  SECTION 14.09.

  	
   

  	
  Execution in Counterparts

  	
   

  	
  57

  
	
  SECTION 14.10.

  	
   

  	
  Severability

  	
   

  	
  57

  
	
  SECTION 14.11.

  	
   

  	
  Assignment

  	
   

  	
  57

  
	
  SECTION 14.12.

  	
   

  	
  Acknowledgment of Rights

  	
   

  	
  57

  

 iv
 

 

 

	
  

  	
   

  	
  ARTICLE XV

  	
   

  	
   

  
	
   

  	
   

  	
  SUBORDINATION OF
  DEBT SECURITIES

  	
   

  	
   

  
	
  SECTION 15.01.

  	
   

  	
  Agreement to Subordinate

  	
   

  	
  58

  
	
  SECTION 15.02.

  	
   

  	
  Default on Senior Indebtedness

  	
   

  	
  58

  
	
  SECTION 15.03.

  	
   

  	
  Liquidation; Dissolution; Bankruptcy

  	
   

  	
  58

  
	
  SECTION 15.04.

  	
   

  	
  Subrogation

  	
   

  	
  60

  
	
  SECTION 15.05.

  	
   

  	
  Trustee to Effectuate Subordination

  	
   

  	
  61

  
	
  SECTION 15.06.

  	
   

  	
  Notice by the Company

  	
   

  	
  61

  
	
  SECTION 15.07.

  	
   

  	
  Rights of the Trustee, Holders of Senior
  Indebtedness

  	
   

  	
  61

  
	
  SECTION 15.08.

  	
   

  	
  Subordination May Not Be Impaired

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  FORM OF DEBT SECURITY

  	
   

  	
   

  

 

 v

THIS
INDENTURE, dated as of October 27, 2006, between Chino Commercial Bancorp, a
bank holding company incorporated in California (hereinafter sometimes called
the “Company”), and U.S. Bank National Association as trustee (hereinafter
sometimes called the “Trustee”).

W I T N E S S E T H:

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

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

ARTICLE
I

DEFINITIONS

SECTION 1.01. Definitions.

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

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

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

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

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

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

 

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

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

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

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

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

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

 2
 

 

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

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

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

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

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

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

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

“Declaration” means the
Amended and Restated Declaration of Trust of the Trust dated as of October 27,
2006, as amended or supplemented from time to time.

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

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

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

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

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

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

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

“Fixed Rate” means a per
annum rate of interest, equal to 6.795% commencing October 27, 2006.

 3
 

 

“Fixed Rate Period” has
the meaning assigned to it in Section 2.10(a).

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

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

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

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

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

“Interest Rate” means the
Fixed Rate and Variable Rate, as applicable.

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

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

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

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

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

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

“Maturity Date” means
December 15, 2036.

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

“Officers’ Certificate”
means a certificate signed by the Chairman of the Board, the Vice Chairman, the
President or any Vice President, and by the Chief Financial Officer, the
Treasurer, an Assistant Treasurer, the Comptroller, an Assistant Comptroller,
the Secretary or an 

 4
 

 

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.

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

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

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

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

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

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

“Placement Agent” means
Cohen & Company.

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

“Principal Office of the
Trustee” means the office of the Trustee, at which at any particular time its
corporate trust business shall be principally administered, which at all times 

 5
 

 

shall be located within
the United States and at the time of the execution of this Indenture shall be
One Federal Street, 3rd Floor, Boston, Massachusetts 02110.

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

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

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

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

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

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

 6
 

 

equity or other securities in transactions
substantially similar in structure to the transactions contemplated hereunder
and in the Declaration, (B) any guarantees of the Company in respect of the
equity or other securities of any financing entity referred to in clause (A)
above or (C) any other instruments classified as subordinated or pari passu to the Debt Securities by the Federal Reserve
from time to time hereafter.

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

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

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

	
  Special Redemption During
  the

  12-Month Period Beginning December 15

  	
   

  	
  Percentage of Principal Amount

  
	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  103.140%

  
	
  2008

  	
   

  	
  102.355%

  
	
  2009

  	
   

  	
  101.570%

  
	
  2010

  	
   

  	
  100.785%

  
	
  2011 and thereafter

  	
   

  	
  100.000%

  

 

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

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

 7
 

 

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

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

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

“Trust Securities” means
Common Securities and Capital Securities of Chino Statutory Trust I.

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

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

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

“Variable Rate” means a
per annum rate of interest, equal to LIBOR plus 1.68%, as determined on the
LIBOR Determination Date preceding each Interest Payment Date, reset quarterly,
commencing upon expiration of the Fixed Rate Period.

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 $3,093,000
may be executed and delivered by the Company to the Trustee for authentication,
and the Trustee shall thereupon authenticate and make available for delivery
said Debt Securities to or upon the written order of 

 8
 

 

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

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

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

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

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

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

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

	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

SECTION 2.03. Form
and Denomination of Debt Securities.

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

 9
 

 

SECTION 2.04. Execution
of Debt Securities.

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

 10
 

 

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

All
Debt Securities presented for registration of transfer or for exchange or
payment shall (if so required by the Company or the Trustee or the
Authenticating Agent) be duly endorsed by, or be accompanied by, a written
instrument or instruments of transfer in form satisfactory to the Company and
either the Trustee or the Authenticating Agent duly executed by, the
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
the foregoing, Debt Securities may not be transferred except in compliance with
the restricted securities legend set forth below, unless otherwise determined
by the Company in accordance with applicable law, which legend shall be placed
on each Debt Security:

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

 11
 

 

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

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

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 

 12
 

 

406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE
IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

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

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

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

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

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

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

 13
 

 

if the applicant for such payment shall furnish to the
Company and the Trustee such security or indemnity as may be required by them
to save each of them harmless and, in case of destruction, loss or theft,
evidence satisfactory to the Company and to the Trustee of the destruction,
loss or theft of such Security and of the ownership thereof.

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

SECTION 2.07. Temporary
Debt Securities.

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

SECTION 2.08. Payment
of Interest.

During
the Fixed Rate Period, each Debt Security will bear interest at the Fixed Rate.
Thereafter, each Debt Security will bear interest at the then applicable
Variable Rate from and including each Interest Payment Date or, in the case of
the first Interest Payment Period, the original date of issuance of such Debt
Security to, but excluding, the next succeeding Interest Payment Date or, in
the case of the last Interest Payment Period, the Redemption Date, Special 

 14
 

 

Redemption Date or Maturity Date, as applicable, on
the principal thereof, on any overdue principal and (to the extent that payment
of such interest is enforceable under applicable law) on Deferred Interest and
on any overdue installment of interest (including Defaulted Interest), payable on
each Interest Payment Date commencing on December 15, 2011. Interest and any
Deferred Interest on any Debt Security that is payable, and is punctually paid
or duly provided for by the Company, on any Interest Payment Date shall be paid
to the Person in whose name said Debt Security (or one or more Predecessor
Securities) is registered at the close of business on the regular record date
for such interest installment, except that interest and any Deferred Interest
payable on the Maturity Date, the Redemption Date (to the extent redeemed) or
the Special Redemption Date shall be paid to the Person to whom principal is
paid. In the event that any Debt Security or portion thereof is called for
redemption and the redemption date is subsequent to a regular record date with
respect to any Interest Payment Date and either on or prior to such Interest
Payment Date, interest on such Debt Security will be paid upon presentation and
surrender of such Debt Security.

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

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

 15

 

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

Subject
to the foregoing provisions of this Section, each Debt Security delivered under
this Indenture upon registration of transfer of or in exchange for or in lieu
of any other Debt Security shall carry the rights to interest accrued and
unpaid, and to accrue, that were 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, shall be promptly canceled by it, and no Debt
Securities shall be issued in lieu thereof except as expressly permitted by any
of the provisions of this Indenture. The Trustee shall dispose of all canceled
Debt Securities in accordance with its customary practices, unless the Company
otherwise directs the Trustee in writing, in which case the Trustee shall
dispose of such Debt Securities as directed by the Company. If the Company
shall acquire any of the Debt Securities, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Debt Securities unless and until the same are surrendered to the Trustee for
cancellation.

SECTION 2.10. Computation
of Interest.

(a)           From October 27, 2006 until December
15, 2011 (the “Fixed Rate Period”), the interest shall be computed on the basis
of a 360-day year of twelve 30-day months and the amount payable for any
partial period shall be computed on the basis of the number of days elapsed in
a 360-day year of twelve 30-day months. Upon expiration of the Fixed Rate
Period, the amount of interest payable for any Interest Payment Period will be
computed on the basis of a 360-day year and the actual number of days elapsed
in the relevant interest period; provided, however, that upon the
occurrence of a Special Event Redemption pursuant to Section 10.02 the amounts
payable pursuant to this Indenture shall be calculated as set forth in the
definition of Special Redemption Price.

(b)           Upon expiration of the Fixed Rate
Period, LIBOR, for any Interest Payment Period, shall be determined by the
Calculation Agent in accordance with the following provisions:

(1)           On the second LIBOR Business Day
(provided, that on such day commercial banks are open for business (including
dealings in foreign currency deposits) in London (a “LIBOR Banking Day”), and
otherwise the next preceding LIBOR Business Day that is also a LIBOR Banking
Day) prior to March 15, June 15, September 15 and December 15 (or, with respect
to the first Interest Payment Period upon expiration of the Fixed Rate Period,
on December 15, 2011)  (each such day, a “LIBOR
Determination Date” for the following Interest Payment Period), the Calculation
Agent shall obtain the rate for three-month U.S. Dollar deposits in Europe,
which appears on Telerate Page 3750 (as defined in the 

 16
 

 

International Swaps and
Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange
Definitions) or such other page as may replace such Telerate Page 3750 on the
Moneyline Telerate, Inc. service (or such other service or services as may be
nominated by the British Banker’s Association as the information vendor for the
purpose of displaying London Interbank offered rates for U.S. dollar deposits),
as of 11:00 a.m. (London time) on such LIBOR Determination Date, and the rate
so obtained shall be LIBOR for such Interest Payment Period. “LIBOR Business
Day” means any day that is not a Saturday, Sunday or other day on which
commercial banking institutions in The City of New York or Boston,
Massachusetts are authorized or obligated by law or executive order to be
closed. If such rate is superseded on Telerate Page 3750 by a corrected rate
before 12:00 noon (London time) on the same LIBOR Determination Date, the
corrected rate as so substituted will be LIBOR for that Interest Payment
Period.

(2)           If, on any LIBOR Determination Date,
such rate does not appear on Telerate Page 3750 or such other page as may
replace such Telerate Page 3750 on the Moneyline Telerate, Inc. service (or
such other service or services as may be nominated by the British Banker’s
Association as the information vendor for the purpose of displaying London
Interbank offered rates for U.S. dollar deposits), the Calculation Agent shall
determine the arithmetic mean of the offered quotations of the Reference Banks
(as defined below) to leading banks in the London Interbank market for
three-month U.S. Dollar deposits in Europe (in an amount determined by the
Calculation Agent) by reference to requests for quotations as of approximately
11:00 a.m. (London time) on the LIBOR Determination Date made by the
Calculation Agent to the Reference Banks. If, on any LIBOR Determination Date,
at least two of the Reference Banks provide such quotations, LIBOR shall equal the
arithmetic mean of such quotations. If, on any LIBOR Determination Date, only
one or none of the Reference Banks provide such a quotation, LIBOR shall be
deemed to be the arithmetic mean of the offered quotations that at least two
leading banks in the City of New York (as selected by the Calculation Agent)
are quoting on the relevant LIBOR Determination Date for three-month U.S.
Dollar deposits in Europe at approximately 11:00 a.m. (London time) (in an
amount determined by the Calculation Agent). As used herein, “Reference Banks”
means four major banks in the London Interbank market selected by the
Calculation Agent.

(3)           If the Calculation Agent is required
but is unable to determine a rate in accordance with at least one of the
procedures provided above, LIBOR for the applicable Interest Payment Period
shall be LIBOR in effect for the immediately preceding Interest Payment Period.

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

 17
 

 

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

SECTION 2.11. Extension
of Interest Payment Period.

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

 18
 

 

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

SECTION 2.13. Income
Tax Certification.

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

ARTICLE
III

PARTICULAR COVENANTS OF THE COMPANY

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

(a)           The Company covenants and agrees that
it will duly and punctually pay or cause to be paid all payments due on the
Debt Securities at the place, at the respective times and in the manner
provided in this Indenture and the Debt Securities. At the option of the
Company, each installment of interest on the Debt Securities may be paid (i) by
mailing checks for such interest payable to the order of the Securityholders
entitled thereto as they appear on the Debt Security Register or (ii) by wire
transfer to any account with a banking institution located in the 

 19
 

 

United States designated by such Securityholders to
the Paying Agent no later than the related record date. Notwithstanding
anything to the contrary contained in this Indenture or any Debt Security, if
the Trust or the Trustee of the Trust is the holder of any Debt Security, then
all payments in respect of such Debt Security shall be made by the Company in
immediately available funds when due.

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

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

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

SECTION 3.02. Offices
for Notices and Payments, etc.

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

In
addition to any such office or agency, the Company may from time to time
designate one or more other offices or agencies where the Debt Securities may
be presented for registration of transfer and for exchange in the manner
provided in this Indenture, and the 

 20
 

 

Company may from time to time rescind such
designation, as the Company may deem desirable or expedient; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain any such office or agency in New York, New York
for the purposes above mentioned. The Company will give to the Trustee prompt
written notice of any such designation or rescission thereof.

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

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

SECTION 3.04. Provision
as to Paying Agent.

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

(1)           that it will hold all sums held by it
as such agent for the payment of all payments due on the Debt Securities
(whether such sums have been paid to it by the Company or by any other obligor
on the Debt Securities) in trust for the benefit of the Securityholders;

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

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

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

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

(c)           Anything in this Section 3.04 to the
contrary notwithstanding, the Company may, at any time, for the purpose of
obtaining a satisfaction and discharge with respect to the Debt Securities, or
for any other reason, pay, or direct any Paying Agent to pay to the 

 21
 

 

Trustee all sums held in trust by the Company or any
such Paying Agent, such sums to be held by the Trustee upon the same terms and
conditions herein contained.

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

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

SECTION 3.05. Certificate
to Trustee.

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

SECTION 3.06. Additional
Interest.

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

SECTION 3.07. Compliance
with Consolidation Provisions.

The
Company will not, while any of the Debt Securities remain outstanding,
consolidate with, or merge into any other Person, or merge into itself, or
sell, convey, transfer or 

 22
 

 

otherwise dispose of all or substantially all of its
property or capital stock to any other Person unless the provisions of Article
XI hereof are complied with.

SECTION 3.08. Limitation
on Dividends.

If
Debt Securities are initially issued to the Trust or a trustee of such Trust in
connection with the issuance of Trust Securities by the Trust (regardless of
whether Debt Securities continue to be held by such Trust) and (i) there shall
have occurred and be continuing an Event of Default, (ii) the Company shall be
in default with respect to its payment of any obligations under the Capital
Securities Guarantee or (iii) the Company shall have given notice of its
election to defer payments of interest on the Debt Securities by extending the
interest distribution period as provided herein and such period, or any
extension thereof, shall have commenced and be continuing, then the Company may
not (A) declare or pay any dividends or distributions on, or redeem, purchase, acquire,
or make a liquidation payment with respect to, any of the Company’s capital
stock or (B) make any payment of principal of or interest or premium, if any,
on or repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects with or junior in interest to the
Debt Securities or (C) make any payment under any guarantees of the Company
that rank pari passu in all
respects with or junior in interest to the Capital Securities Guarantee (other
than (a) repurchases, redemptions or other acquisitions of shares of capital
stock of the Company (I) in connection with any employment contract, benefit
plan or other similar arrangement with or for the benefit of one or more
employees, officers, directors or consultants, (II) in connection with a
dividend reinvestment or stockholder stock purchase plan or (III) in connection
with the issuance of capital stock of the Company (or securities convertible
into or exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the occurrence of (i), (ii)
or (iii) above, (b) as a result of any exchange, reclassification, combination
or conversion of any class or series of the Company’s capital stock (or any
capital stock of a subsidiary of the Company) for any class or series of the
Company’s capital stock or of any class or series of the Company’s indebtedness
for any class or series of the Company’s capital stock, (c) the purchase of
fractional interests in shares of the Company’s capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged, (d) any declaration of a dividend in connection with
any stockholder’s rights plan, or the issuance of rights, stock or other
property under any stockholder’s rights plan, or the redemption or repurchase
of rights pursuant thereto, or (e) any dividend in the form of stock, warrants,
options or other rights where the dividend stock or the stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari passu with
or junior to such stock).

SECTION 3.09. Covenants
as to the Trust.

For so
long as such Trust Securities remain outstanding, the Company shall maintain
100% ownership of the Common Securities; provided, however, that
any permitted successor of the Company under this Indenture that is a U.S.
Person may succeed to the Company’s ownership of such Common Securities. The
Company, as owner of the Common Securities, shall use commercially reasonable
efforts to cause the Trust (a) to remain a statutory trust, except in
connection with a distribution of Debt Securities to the holders of Trust
Securities in liquidation of the Trust, the redemption of all of the Trust Securities
or certain mergers, consolidations or amalgamations, each as permitted by the
Declaration, (b) to otherwise continue 

 23
 

 

to be classified as a grantor trust for United States
federal income tax purposes and (c) to cause each holder of Trust Securities to
be treated as owning an undivided beneficial interest in the Debt Securities.

ARTICLE
IV

LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION 4.01. Securityholders’
Lists.

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

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

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

(2)           inform such applicants as to the
approximate number of Securityholders whose names and addresses appear in the
information preserved at the time by the Trustee in accordance with the
provisions of subsection (a) of 

 24
 

 

this Section 4.02, and as to the approximate cost of mailing to such
Securityholders the form of proxy or other communication, if any, specified in
such application.

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

(c)           Each and every 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 subsection (b) of
this Section 4.02, regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under said subsection (b).

SECTION 4.03. Financial
and Other Information.

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

 25
 

 

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

ARTICLE
V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

SECTION 5.01. Events
of Default.

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

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

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

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

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

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

(f)            the Company shall commence a
voluntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, shall consent to the entry of an order for relief
in an involuntary case under any such law, or shall consent to the appointment
of or taking possession by a receiver, liquidator, assignee, trustee,
custodian, 

 26
 

 

sequestrator (or other similar official) of the
Company or of any substantial part of its property, or shall make any general
assignment for the benefit of creditors, or shall fail generally to pay its
debts as they become due; or

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

If an
Event of Default specified under clause (c) of this Section 5.01 occurs and is
continuing with respect to the Debt Securities, then, and in each and every
such case, unless the principal of the Debt Securities shall have already
become due and payable, either the Trustee or the holders of not less than 25%
in aggregate principal amount of the Debt Securities then outstanding
hereunder, by notice in writing to the Company (and to the Trustee if given by
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, then, in each and every such case, the
entire principal amount of the Debt Securities and any premium and interest
accrued, but unpaid, thereon shall ipso
facto become immediately due and payable without further action.
Notwithstanding anything to the contrary in this Section 5.01, if at any time
during the period in which this Indenture remains in force and effect, the
Company ceases or elects to cease to be subject to the supervision and
regulations of the Federal Reserve, OTS, OCC or similar regulatory authority
overseeing bank, thrift, savings and loan or financial holding companies or
similar institutions requiring specifications for the treatment of capital
similar in nature to the capital adequacy guidelines under the Federal Reserve
rules and regulations, then the first sentence of this paragraph shall be
deemed to include clauses (a), (b) and (d) under this Section 5.01 as an Event
of Default resulting in an acceleration of payment of the Debt Securities to
the same extent as provided herein for clause (c).

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

The
foregoing provisions, however, are subject to the condition that if, at any
time after the principal of the Debt Securities shall have been so declared due
and payable, and before any judgment or decree for the payment of the moneys
due shall have been obtained or entered as hereinafter provided, (i) the
Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Debt Securities and all payments
on the Debt Securities which shall have become due otherwise than by
acceleration (with interest upon all such payments and Deferred Interest, to
the extent permitted by law) and

 27
 

 

such amount as shall be sufficient to cover reasonable
compensation to the Trustee and each predecessor Trustee, their respective
agents, attorneys and counsel, and all other amounts due to the Trustee
pursuant to Section 6.06, if any, and (ii) all Events of Default under this
Indenture, other than the non-payment of the payments on Debt Securities which
shall have become due by acceleration, shall have been cured, waived or
otherwise remedied as provided herein, and in each and every such case the
holders of a majority in aggregate principal amount of the Debt Securities then
outstanding, by written notice to the Company and to the Trustee, may waive all
defaults and rescind and annul such declaration and its consequences, but no
such waiver or rescission and annulment shall extend to or shall affect any
subsequent default or shall impair any right consequent thereon; provided,
however, that if the Debt Securities are held by the Trust or a trustee of the
Trust, such waiver or rescission and annulment shall not be effective until the
holders of a majority in aggregate liquidation amount of the outstanding
Capital Securities of the Trust shall have consented to such waiver or
rescission and annulment.

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

 28
 

 

provisions of this Section 5.02, shall be entitled and
empowered, by intervention in such proceedings or otherwise, to file and prove
a claim or claims for the whole amount of principal and interest owing and
unpaid in respect of the Debt Securities and, in case of any judicial
proceedings, to file such proofs of claim and other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee (including
any claim for reasonable compensation to the Trustee and each predecessor Trustee,
and their respective agents, attorneys and counsel, and for reimbursement of
all other amounts due to the Trustee under Section 6.06) and of the
Securityholders allowed in such judicial proceedings relative to the Company or
any other obligor on the Debt Securities, or to the creditors or property of
the Company or such other obligor, unless prohibited by applicable law and
regulations, to vote on behalf of the 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, and to collect and receive any moneys or
other property payable or deliverable on any such claims, and to distribute the
same after the deduction of its charges and expenses; and any receiver,
assignee or trustee in bankruptcy or reorganization is hereby authorized by
each of the Securityholders to make such payments to the Trustee, and, in the
event that the Trustee shall consent to the making of such payments directly to
the Securityholders, to pay to the Trustee such amounts as shall be sufficient
to cover reasonable compensation to the Trustee, each predecessor Trustee and
their respective agents, attorneys and counsel, and all other amounts due to
the Trustee under Section 6.06.

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

All
rights of action and of asserting claims under this Indenture, or under any of
the Debt Securities, may be enforced by the Trustee without the possession of
any of the Debt Securities, or the production thereof at any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment shall be for the ratable benefit of the
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 shall be applied in the following order, at the
date or dates specified pursuant hereto for the distribution of such moneys,
upon presentation of the several Debt Securities in respect of which moneys
have been collected, and stamping thereon the payment, if only partially paid,
and upon surrender thereof if fully paid:

 29
 

 

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

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

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

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

SECTION 5.04. Proceedings
by Securityholders.

No
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 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.

 30
 

 

SECTION 5.06. Remedies
Cumulative and Continuing.

Except
as otherwise provided in Section 2.06, all powers and remedies given by this
Article V to the Trustee or to the Securityholders shall, to the extent
permitted by law, be deemed cumulative and not exclusive of any other powers
and remedies available to the Trustee or the 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 or power accruing upon any Event of
Default occurring and continuing as aforesaid shall impair any such right or
power, or shall be construed to be a waiver of any such default or an
acquiescence therein; and, subject to the provisions of Section 5.04, every
power and remedy given by this Article V or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

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

The
holders of a majority in aggregate principal amount of the Debt Securities
affected (voting as one class) at the time outstanding and, if the Debt
Securities are held by the Trust or a trustee of the Trust, the holders of a
majority in aggregate liquidation amount of the outstanding Capital Securities
of the Trust shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee with respect to such
Debt Securities; provided, however, that if the Debt Securities
are held by the Trust or a trustee of the Trust, such time, method and place or
such exercise, as the case may be, may not be so directed until the holders of
a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust shall have directed such time, method and place or such
exercise, as the case may be; provided, further, that (subject to the
provisions of Section 6.01) the Trustee shall have the right to decline to
follow any such direction if the Trustee being advised by counsel shall
determine that the action so directed would be unjustly prejudicial to the
holders not taking part in such direction or if the Trustee being advised by
counsel determines that the action or proceeding so directed may not lawfully
be taken or if a Responsible Officer of the Trustee shall determine that the
action or proceedings so directed would involve the Trustee in personal
liability. Prior to any declaration of acceleration, or ipso facto
acceleration, of the maturity of the Debt Securities, the holders of a majority
in aggregate principal amount of the Debt Securities at the time outstanding
may on behalf of the holders of all of the Debt Securities waive (or modify any
previously granted waiver of) any past default or Event of Default and its consequences,
except a default (a) in the payment of principal of, premium, if any, or
interest on any of the Debt Securities, (b) in respect of covenants or
provisions hereof which cannot be modified or amended without the consent of
the holder of each Debt Security affected, or (c) in respect of the covenants
contained in Section 3.09; provided, however, that if the Debt
Securities are held by the Trust or a trustee of the Trust, such waiver or
modification to such waiver shall not be effective until the holders of a
majority in Liquidation Amount of the Trust Securities of the Trust shall have
consented to such waiver or modification to such waiver; provided, further,
that if the consent of the holder of each outstanding Debt Security is
required, such waiver or modification to such waiver shall not be effective
until each holder of the outstanding Capital Securities of the Trust shall have
consented

 31
 

 

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 5.07,
said Default or Event of Default shall for all purposes of the Debt Securities
and this Indenture be deemed to have been cured and to be not continuing.

SECTION 5.08. Notice
of Defaults.

The
Trustee shall, within 90 days after a Responsible Officer of the Trustee shall
have actual knowledge or received written notice of the occurrence of a Default
with respect to the Debt Securities, mail to all Securityholders, as the names
and addresses of such Securityholders appear upon the Debt Security Register,
notice of all Defaults with respect to the Debt Securities actually known to
the Trustee, unless such defaults shall have been cured before the giving of
such notice (the term “defaults” for the purpose of this Section 5.08 being
hereby defined to be the events specified in subsections (a), (b), (c), (d),
(e), (f) and (g) of Section 5.01, not including periods of grace, if any,
provided for therein); provided, that, except in the case of default in
the payment of the principal of, premium, if any, or interest on any of the
Debt Securities, the Trustee shall be protected in withholding such notice if
and so long as a Responsible Officer of the Trustee in good faith determines
that the withholding of such notice is in the interests of the Securityholders.

SECTION 5.09. Undertaking
to Pay Costs.

All
parties to this Indenture agree, and each 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;
but the provisions of this Section 5.09 shall not apply to any suit instituted
by the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding in the aggregate more than 10% in principal amount of
the Debt Securities (or, if such Debt Securities are held by the Trust or a
trustee of the Trust, more than 10% in liquidation amount of the outstanding
Capital Securities), to any suit instituted by any Securityholder for the
enforcement of the payment of the principal of (or premium, if any) or interest
on any Debt Security against the Company on or after the same shall have become
due and payable, or to any suit instituted in accordance with Section 14.12.

 32

 

ARTICLE VI

CONCERNING THE TRUSTEE

SECTION 6.01. Duties
and Responsibilities of Trustee.

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

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

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

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

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

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

(c)           the Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith, in
accordance with the direction of the Securityholders pursuant to Section 5.07,
relating to 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;

 33
 

 

(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.

SECTION 6.02. Reliance
on Documents, Opinions, etc.

Except
as otherwise provided in Section 6.01:

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

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

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

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

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

 34
 

 

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

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

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

SECTION 6.05. Moneys
to be Held in Trust.

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

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the Company, signed by the Chairman of the Board of
Directors, the President, the Chief Operating Officer, a Vice President, the
Treasurer or an Assistant Treasurer of the Company.

SECTION 6.06. Compensation
and Expenses of Trustee.

Other
than as provided in the Fee Agreement of even date herewith between Cohen &
Company, the Trustee and the Company, the Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, such
compensation as shall be agreed to in writing between the Company and the
Trustee (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust), and the Company will pay or
reimburse the Trustee upon its written request for all documented reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the reasonable expenses and disbursements of its
counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance that arises from its negligence, willful
misconduct or bad faith. The Company also covenants to indemnify each of the
Trustee (including in its individual capacity) and any predecessor Trustee (and
its officers, agents, directors and employees) for, and to hold it harmless
against, any and all loss, damage, claim, liability or expense including taxes
(other than taxes based on the income of the Trustee), except to the extent
such loss, damage, claim, liability or expense results from the negligence,
willful misconduct or bad faith of such indemnitee, arising out of or in
connection with the acceptance or administration of this Trust, including the
costs and expenses of defending itself against any claim or liability in the
premises. The obligations of the Company under this Section 6.06 to compensate
and indemnify the Trustee and to pay or reimburse the Trustee for documented
expenses, disbursements and advances shall constitute additional indebtedness
hereunder. Such additional indebtedness shall be secured by (and the Company hereby
grants and pledges to the Trustee) a lien prior to that of the Debt Securities
upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the benefit of the holders of particular Debt
Securities.

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

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

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

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SECTION 6.07. Officers’
Certificate as Evidence.

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

SECTION 6.08. Eligibility
of Trustee.

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

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

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

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

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

(a)           The Trustee, or any trustee or
trustees hereafter appointed, the Calculation Agent, the Paying Agent and any
Debt Security Registrar may at any time resign by giving written notice of such
resignation to the Company and by mailing notice thereof, at the Company’s
expense, to the 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 or successors by written instrument, in
duplicate, executed by order of its Board of Directors, one copy of which
instrument shall be delivered to the resigning party and 

 37
 

 

one copy to the successor. If no successor shall have
been so appointed and have accepted appointment within 30 days after the
mailing of such notice of resignation to the affected Securityholders, the
resigning party may petition any court of competent jurisdiction for the
appointment of a successor, or any Securityholder who has been a bona fide
holder of a Debt Security or Debt Securities for at least six months may,
subject to the provisions of Section 5.09, on behalf of himself or herself and
all others similarly situated, petition any such court for the appointment of a
successor. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, appoint a successor.

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

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

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

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

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

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

(d)           Any resignation or removal of the
Trustee, the Calculation Agent, the Paying Agent and any Debt Security
Registrar and appointment of a successor pursuant to any of

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the provisions of this Section 6.09 shall become
effective upon acceptance of appointment by the successor as provided in Section
6.10.

SECTION 6.10. Acceptance
by Successor.

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

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

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

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

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

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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, that the Trustee shall
have no liability to the Company for any acts or omissions of the
Authenticating Agent with respect to the authentication and delivery of Debt
Securities. Any such Authenticating Agent shall at all times be a Person
organized and doing business under the laws of the United States or of any
state or territory thereof or of the District of Columbia authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
at least $50,000,000 and being subject to supervision or examination by
federal, state, territorial or District of Columbia authority. If such Person
publishes reports of condition at least annually pursuant to law or the
requirements of such authority, then for the purposes of this Section 6.12 the
combined capital and surplus of such Person shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect herein specified in this Section.

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

 40
 

 

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.

Other
than as provided in the Fee Agreement of even date herewith between Cohen &
Company, the Company and the Trustee, 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 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 any other action), the fact that at the time of taking any such
action the holders of such specified percentage have joined therein may be
evidenced (a) by any instrument or any number of instruments of similar tenor
executed by such Securityholders or holders of Capital Securities, as the case
may be, in person or by agent or proxy appointed in writing, or (b) by the
record of such 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, or (c) by a combination of
such instrument or instruments and any such record of such a meeting of such
Securityholders or holders of Capital Securities, as the case may be, or (d) by
any other method the Trustee deems satisfactory.

If the
Company shall solicit from the Securityholders any request, demand,
authorization, direction, notice, consent, waiver or other action or revocation
of the same, the

 41
 

 

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 holders 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 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

 42
 

 

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

SECTION 7.05. Revocation
of Consents; Future Securityholders Bound.

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

(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;

 43
 

 

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

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

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

SECTION 8.02. Call
of Meetings by Trustee.

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

SECTION 8.03. Call
of Meetings by Company or Securityholders.

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

SECTION 8.04. Qualifications
for Voting.

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

SECTION 8.05. Regulations.

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

 44
 

 

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 outstanding principal amount of the Debt
Securities shall constitute a quorum for a meeting of Securityholders; provided,
however, that if any action is to be taken at such meeting with respect
to a consent, waiver, request, demand, notice, authorization, direction or
other action which may be given by the holders of not

 45
 

 

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

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

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, signed by the Securityholders of all
outstanding Debt Securities entitled to vote thereon. No consent shall be
effective to take the action referred to therein unless, within sixty days of the
earliest dated consent delivered in the manner required by this paragraph to
the Trustee, written consents signed by a sufficient number of Securityholders
to take action are delivered to the Trustee at its Principal Office. Delivery
made to the Trustee at its Principal Office, shall be by hand or by
certificated or registered mail, return receipt requested. Written consent thus
given by the Securityholders of such number of Debt Securities as is required
hereunder, shall have the same effect as a valid vote of Securityholders of
such number of Debt Securities.

 46

 

ARTICLE IX

SUPPLEMENTAL
INDENTURES

SECTION 9.01. Supplemental Indentures without Consent of
Securityholders.

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

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

(b)           to add to the covenants of the
Company such further covenants, restrictions or conditions for the protection
of the 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 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 of 1933, as amended); provided, that any such action shall
not adversely affect the interests of the holders of the Debt Securities then
outstanding (it being understood, for purposes of this proviso, that transfer
restrictions on Debt Securities substantially similar to those applicable to
Capital Securities shall not be deemed to adversely affect the
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, pursuant to the requirements of
Section 6.10;

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

 47
 

 

(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.

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

Upon the request of the Company accompanied by a Board
Resolution authorizing the execution of any such supplemental indenture, and
upon the filing with the

 48
 

 

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

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

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

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 Article IX

 49
 

 

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

ARTICLE X

REDEMPTION
OF SECURITIES

SECTION 10.01. Optional Redemption.

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

SECTION 10.02. Special Event Redemption.

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

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

In
case the Company shall desire to exercise the right to redeem all, or, as the
case may be, any part of the Debt Securities, it shall fix a date for
redemption and shall mail, or cause the Trustee to mail (at the expense of the
Company) a notice of such redemption at least 30 and not more than 60 days
prior to the date fixed for redemption to the 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

 50
 

 

thereof to be redeemed and shall state that on and
after the date fixed for redemption, upon surrender of such Debt Security, a
new Debt Security or Debt Securities in principal amount equal to the
unredeemed portion thereof will be issued.

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

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

SECTION 10.04. Payment of Debt Securities Called for
Redemption.

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

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

ARTICLE XI

CONSOLIDATION,
MERGER, SALE, CONVEYANCE AND LEASE

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

Nothing contained in this Indenture or in the Debt
Securities shall prevent any consolidation or merger of the Company with or
into any other corporation or corporations (whether or not affiliated with the
Company) or successive consolidations or mergers in which the Company or its
successor or successors shall be a party or parties, or shall prevent any sale,
conveyance, transfer or other disposition of all or substantially all of the
property or capital stock

 51
 

 

of the Company or its successor or successors to any
other corporation (whether or not affiliated with the Company, or its successor
or successors) authorized to acquire and operate the same; provided, however,
that the Company hereby covenants and agrees that, (i) upon any such
consolidation, merger (where the Company is not the surviving corporation),
sale, conveyance, transfer or other disposition, the successor entity shall be
a corporation organized and existing under the laws of the United States or any
state thereof or the District of Columbia (unless such corporation has (1)
agreed to make all payments due in respect of the Debt Securities or, if
outstanding, the Capital Securities and Capital Securities Guarantee without
withholding or deduction for, or on account of, any taxes, duties, assessments
or other governmental charges under the laws or regulations of the jurisdiction
of organization or residence (for tax purposes) of such corporation or any
political subdivision or taxing authority thereof or therein unless required by
applicable law, in which case such corporation shall have agreed to pay such
additional amounts as shall be required so that the net amounts received and
retained by the Securityholders or holders of Capital Securities, as the case
may be, after payment of all taxes (including withholding taxes), duties,
assessments or other governmental charges, will be equal to the amounts that
such Securityholders or holders of Capital Securities would have received and
retained had no such taxes (including withholding taxes), duties, assessments
or other governmental charges been imposed, (2) irrevocably and unconditionally
consented and submitted to the jurisdiction of any United States federal court
or New York state court, in each case located in The City of New York, Borough
of Manhattan, in respect of any action, suit or proceeding against it arising
out of or in connection with this Indenture, the Debt Securities, the Capital
Securities Guarantee or the Declaration and irrevocably and unconditionally
waived, to the fullest extent permitted by law, any objection to the laying of
venue in any such court or that any such action, suit or proceeding has been
brought in an inconvenient forum and (3) irrevocably appointed an agent in The
City of New York for service of process in any action, suit or proceeding
referred to in clause (2) above) and such corporation expressly assumes all of
the obligations of the Company under the Debt Securities, this Indenture, the
Capital Securities Guarantee and the Declaration and (ii) after giving effect
to any such consolidation, merger, sale, conveyance, transfer or other
disposition, no Default or Event of Default shall have occurred and be
continuing.

SECTION 11.02. Successor Entity to be Substituted.

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

 52
 

 

Agent shall authenticate and deliver any Debt
Securities which previously shall have been signed and delivered by the
officers of the Company, to the Trustee or the Authenticating Agent for
authentication, and any Debt Securities which such successor entity thereafter
shall cause to be signed and delivered to the Trustee or the Authenticating
Agent for that purpose. All the Debt Securities so issued shall in all respects
have the same legal rank and benefit under this Indenture as the Debt
Securities theretofore or thereafter issued in accordance with the terms of
this Indenture as though all of such Debt Securities had been issued at the
date of the execution hereof.

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

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

ARTICLE XII

SATISFACTION
AND DISCHARGE OF INDENTURE

SECTION 12.01. Discharge of Indenture.

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

 53
 

 

the cost and expense of the Company, shall execute
proper instruments acknowledging satisfaction of and discharging this
Indenture, the Company, however, hereby agreeing to reimburse the Trustee for
any costs or expenses thereafter reasonably and properly incurred by the
Trustee in connection with this Indenture or the Debt Securities.

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

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

SECTION 12.03. Paying Agent to Repay Moneys Held.

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

SECTION 12.04. Return of Unclaimed Moneys.

Any
moneys deposited with or paid to the Trustee or any Paying Agent for payment of
the principal of, and premium, if any, or interest on Debt Securities and not
applied but remaining unclaimed by the 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 be
repaid to the Company by the Trustee or such Paying Agent on written demand;
and the holder of any of the Debt Securities shall thereafter look only to the
Company for any payment which such 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, officer, director, employee or agent, as such, past, present or
future, of the Company or of any predecessor or successor corporation of the
Company, either directly or through the Company or any successor corporation of
the Company, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise; it being
expressly

 54
 

 

understood that all such liability is hereby expressly
waived and released as a condition of, and as a consideration for, the
execution of this Indenture and the issue of the Debt Securities.

ARTICLE XIV

MISCELLANEOUS
PROVISIONS

SECTION 14.01. Successors.

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

SECTION 14.02. Official Acts by Successor Entity.

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

SECTION 14.03. Surrender of Company Powers.

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

SECTION 14.04. Addresses for Notices, etc.

Any
notice or demand which by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the Securityholders on the
Company may be given or served in writing, 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:

Chino Commercial
Bancorp

14345 Pipeline
Avenue

Chino, California
91710

Attention: Dann H. Bowman

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

One Federal
Street, 3rd Floor

Boston, Massachusetts 02110

Attn: Corporate Trust Services – Chino Statutory Trust I

 55
 

 

SECTION 14.05. Governing Law.

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

SECTION 14.06. Evidence of Compliance with Conditions
Precedent.

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

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

SECTION 14.07. Non-Business Days.

Notwithstanding
anything to the contrary contained herein, if any Interest Payment Date, other
than on the Maturity Date, any Redemption Date or the Special Redemption Date,
falls on a day that is not a Business Day, then any interest payable will be
paid on, and such Interest Payment Date will be moved to, the next succeeding
Business Day, and additional interest will accrue for each day that such
payment is delayed as a result thereof. If the Maturity Date, 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.

 56
 

 

SECTION 14.09. Execution in Counterparts.

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

SECTION 14.10. Severability.

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

SECTION 14.11. Assignment.

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

SECTION 14.12. Acknowledgment of Rights.

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

 57
 

 

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
payments due on the Debt Securities.

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

SECTION 15.03. Liquidation; Dissolution; Bankruptcy.

Upon any payment by the Company or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, to creditors upon any dissolution or winding-up or liquidation or
reorganization of the Company, whether voluntary or involuntary or

 58
 

 

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

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

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

 59
 

 

Article XI of this Indenture. Nothing in Section
15.02 or in this Section 15.03 shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 6.06 of this Indenture.

SECTION 15.04. Subrogation.

Subject
to the payment in full of all Senior Indebtedness of the Company, the
Securityholders shall be subrogated to the rights of the holders of such Senior
Indebtedness to receive payments or distributions of cash, property or
securities of the Company applicable to such Senior Indebtedness until all
payments due on the Debt Securities shall be paid in full; and, for the
purposes of such subrogation, no payments or distributions to the holders of
such Senior Indebtedness of any cash, property or securities to which the Securityholders
or the Trustee would be entitled except for the provisions of this Article XV,
and no payment over pursuant to the provisions of this Article XV to or for the
benefit of the holders of such Senior Indebtedness by Securityholders or the
Trustee, shall, as between the Company, its creditors other than holders of
Senior Indebtedness of the Company, and the 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 all payments on the
Debt Securities as and when the same shall become due and payable in accordance
with their terms, or is intended to or shall affect the relative rights of the
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.

 60
 

 

SECTION 15.05. Trustee to Effectuate Subordination.

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

SECTION 15.06. Notice by the Company.

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

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

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

The Trustee in its individual capacity shall be
entitled to all the rights set forth in this Article XV in respect of any
Senior Indebtedness at any time held by it, to the same extent as

 61
 

 

any other holder of Senior Indebtedness, and nothing
in this Indenture or any Additional Provisions shall deprive the Trustee of any
of its rights as such holder.

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

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

SECTION 15.08. Subordination May Not Be Impaired.

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

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

 62

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.

	
  

  	
  Chino Commercial Bancorp

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dann H. Bowman

  
	
   

  	
  Name:

  	
  Dann H. Bowman

  
	
   

  	
  Title:

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. Bank National Association, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Paul D. Allen

  
	
   

  	
  Name:

  	
  Paul D. Allen

  
	
   

  	
  Title:

  	
  Vice President

  

 

EXHIBIT A

FORM OF JUNIOR SUBORDINATED
DEBT SECURITY

DUE 2036

[FORM OF FACE
OF SECURITY]

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

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

 A-1
 

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

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

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

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

 A-2
 

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

 A-3
 

Form of Junior Subordinated Debt Security due 2036

of

Chino Commercial
Bancorp

Chino Commercial
Bancorp, a bank holding company incorporated in California (the “Company”), for
value received promises to pay to U.S. Bank National Association, not in its
individual capacity but solely as Institutional Trustee for Chino Statutory
Trust I, a Connecticut statutory trust (the “Securityholder”), or registered
assigns, the principal sum of Three Million Ninety Three Thousand Dollars on
December 15, 2036 and to pay interest on said principal sum from October 27,
2006, or from the most recent interest payment date (each such date, an “Interest
Payment Date”) to which interest has been paid or duly provided for, quarterly
(subject to deferral as set forth herein) in arrears on March 15, June 15,
September 15 and December 15 of each year commencing December 15, 2006, at the
rate of 6.795% (the “Fixed Rate”) per annum until December 15, 2011 (the “Fixed
Rate Period”) and thereafter at a variable per annum rate equal to LIBOR (as
defined in the Indenture) plus 1.68% (the “Variable Rate” and together with the
Fixed Rate the “Interest Rate”) (provided, however, that the Interest Rate for
any Interest Payment Period may not exceed the highest rate permitted by New
York law, as the same may be modified by United States law of general
applicability) until the principal hereof shall have become due and payable,
and on any overdue principal and (without duplication and to the extent that
payment of such interest is enforceable under applicable law) on any overdue
installment of interest at an annual rate equal to the Interest Rate in effect
for each such Extension Period compounded quarterly. The amount of interest
payable on any Interest Payment Date shall be computed during the Fixed Rate
Period on the basis of a 360-day year of twelve 30-day months and the amount
payable for any partial period shall be computed on the basis of the number of
days elapsed in a 360-day year of twelve 30-day months, and thereafter on the
basis of a 360-day year and the actual number of days elapsed in the relevant
interest period. Notwithstanding anything to the contrary contained herein, if
any Interest Payment Date, other than on the Maturity Date, any Redemption Date
(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
no 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 punctually paid or duly provided for shall
forthwith cease to be payable to the registered Securityholders 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

 A-4
 

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

Upon
submission of Notice (as defined in the Indenture) and so long as no Event of
Default pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of the
Indenture has occurred and is continuing, the Company shall have the right
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 interest
distribution period on the Debt Securities at any time and from time to time
during the term of the Debt Securities, for up to 20 consecutive quarterly
periods (each such extended interest distribution period, an “Extension Period”),
during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). During any Extension Period,
interest will continue to accrue on the Debt Securities, and interest on such
accrued interest (such accrued interest and interest thereon referred to herein
as “Deferred Interest”) will accrue at an annual rate equal to the Interest
Rate applicable during such Extension Period, compounded quarterly from the
date such Deferred Interest would have been payable were it not for the
Extension Period, to the extent permitted by law. No Extension Period may end
on a date other than an Interest Payment Date. At the end of any such Extension
Period the Company shall pay all Deferred Interest then accrued and unpaid on
the Debt Securities; provided, however, that no Extension Period
may extend beyond the Maturity Date, Redemption Date (to the extent redeemed)
or Special Redemption Date; and provided, further, however,
during any such Extension Period, the Company may not (i) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of the Company’s capital stock or (ii)
make any payment of principal of or premium, if any, or interest on or repay,
repurchase or redeem any debt securities of the Company that rank pari passu in
all respects with or junior in interest to the Debt Securities or (iii) make
any payment under any guarantees of the Company that rank in all respects pari passu with or junior in respect to
the Capital Securities Guarantee (other than (a) repurchases, redemptions or
other acquisitions of shares of capital stock of the Company (A) in connection
with any employment contract, benefit plan or other similar arrangement with or
for the benefit of one or more employees, officers, directors or consultants,
(B) in connection with a dividend reinvestment or stockholder stock purchase
plan or (C) in connection with the issuance of capital stock of the Company (or
securities convertible into or exercisable for such capital stock), as
consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of any exchange, reclassification,
combination or conversion of any class or series of the Company’s capital stock
(or any capital stock of a subsidiary of the Company) for any class or

 A-5
 

series of the Company’s capital stock or of any class
or series of the Company’s indebtedness for any class or series of the Company’s
capital stock, (c) the purchase of fractional interests in shares of the
Company’s capital stock pursuant to the conversion or exchange provisions of
such capital stock or the security being converted or exchanged, (d) any
declaration of a dividend in connection with any stockholder’s rights plan, or
the issuance of rights, stock or other property under any stockholder’s rights
plan, or the redemption or repurchase of rights pursuant thereto, or (e) any
dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of such warrants, options or
other rights is the same stock as that on which the dividend is being paid or
ranks pari passu with or junior to such
stock). Prior to the termination of any Extension Period, the Company may
further extend such Extension Period; provided, that no Extension Period
(including all previous and further consecutive extensions that are part of
such Extension Period) shall exceed 20 consecutive quarterly periods, or extend
beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special
Redemption Date. Upon the termination of any Extension Period and upon the
payment of all Deferred Interest, the Company may commence a new Extension
Period, subject to the foregoing requirements. No interest or Deferred Interest
shall be due and payable during an Extension Period, except at the end thereof,
but Deferred Interest shall accrue upon each installment of interest that would
otherwise have been due and payable during such Extension Period until such
installment is paid. The Company must give the Trustee notice of its election
to begin any Extension Period or extend an Extension Period (“Notice”) not
later than the related regular record date for the relevant Interest Payment
Date. The Notice shall describe why the Company has elected to begin an
Extension Period. The Notice shall acknowledge and affirm the Company’s
understanding that it is prohibited from issuing dividends and other
distributions during the Extension Period. Upon receipt of the Notice, 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.

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

 A-6
 

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

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

 A-7
 

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

	
  

  	
  Chino Commercial Bancorp

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

Dated:                           ,
2006

 

CERTIFICATE OF
AUTHENTICATION

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

	
  

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

Dated:                           ,
2006

 

 A-8
 

[FORM OF REVERSE
OF SECURITY]

This Debt Security
is one of a duly authorized series of Debt Securities of the Company, all issued
or to be issued pursuant to an Indenture (the “Indenture”), dated as of October
27, 2006, duly executed and delivered between the Company and U.S. Bank
National Association, as Trustee (the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the holders of the Debt Securities
(referred to herein as the “Debt Securities”) of which this Debt Security is a
part. The summary of the terms of this Debt Security contained herein does not
purport to be complete and is qualified by reference to the Indenture.

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

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

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

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

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

	
  Special Redemption During the

  12-Month Period Beginning December 15

  	
   

  	
  Percentage of Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
   

  	
  103.140

  	
  %

  	
   

  
	
  2008

  	
   

  	
   

  	
  102.355

  	
  %

  	
   

  
	
  2009

  	
   

  	
   

  	
  101.570

  	
  %

  	
   

  
	
  2010

  	
   

  	
   

  	
  100.785

  	
  %

  	
   

  
	
  2011 and
  thereafter

  	
   

  	
   

  	
  100.000

  	
  %

  	
   

  

 

 A-9
 

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

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 that of the United States that at the time of payment is legal
tender for payment of public and private debts, or impair or affect the right
of any 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 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.

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

 A-10
 

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

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

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

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

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

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

 A-11Exhibit
10.10

AMENDED AND RESTATED DECLARATION

OF TRUST

CHINO STATUTORY TRUST I

Dated as of October 27, 2006

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
   

  
	
  INTERPRETATION
  AND DEFINITIONS

  	
   

  	
   

  
	
  SECTION 1.1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  ARTICLE II

  	
   

  	
   

  
	
  ORGANIZATION

  	
   

  	
   

  
	
  SECTION 2.1.

  	
   

  	
  Name

  	
   

  	
  8

  
	
  SECTION 2.2.

  	
   

  	
  Office

  	
   

  	
  8

  
	
  SECTION 2.3.

  	
   

  	
  Purpose

  	
   

  	
  9

  
	
  SECTION 2.4.

  	
   

  	
  Authority

  	
   

  	
  9

  
	
  SECTION 2.5.

  	
   

  	
  Title to Property of the Trust

  	
   

  	
  9

  
	
  SECTION 2.6.

  	
   

  	
  Powers and Duties of the Trustees and the
  Administrators

  	
   

  	
  9

  
	
  SECTION 2.7.

  	
   

  	
  Prohibition of Actions by the Trust and the Trustees

  	
   

  	
  14

  
	
  SECTION 2.8.

  	
   

  	
  Powers and Duties of the Institutional Trustee

  	
   

  	
  15

  
	
  SECTION 2.9.

  	
   

  	
  Certain Duties and Responsibilities of the Trustees
  and the Administrators

  	
   

  	
  16

  
	
  SECTION 2.10.

  	
   

  	
  Certain Rights of Institutional Trustee

  	
   

  	
  18

  
	
  SECTION 2.11.

  	
   

  	
  Execution of Documents

  	
   

  	
  20

  
	
  SECTION 2.12.

  	
   

  	
  Not Responsible for Recitals or Issuance of
  Securities

  	
   

  	
  21

  
	
  SECTION 2.13.

  	
   

  	
  Duration of Trust

  	
   

  	
  21

  
	
  SECTION 2.14.

  	
   

  	
  Mergers

  	
   

  	
  21

  
	
  ARTICLE III

  	
   

  	
   

  
	
  SPONSOR

  	
   

  	
   

  
	
  SECTION 3.1.

  	
   

  	
  Sponsor’s Purchase of Common Securities

  	
   

  	
  23

  
	
  SECTION 3.2.

  	
   

  	
  Responsibilities of the Sponsor

  	
   

  	
  23

  
	
  ARTICLE IV

  	
   

  	
   

  
	
  TRUSTEES AND
  ADMINISTRATORS

  	
   

  	
   

  
	
  SECTION 4.1.

  	
   

  	
  Number of Trustees

  	
   

  	
  23

  
	
  SECTION 4.2.

  	
   

  	
  Institutional Trustee; Eligibility

  	
   

  	
  24

  
	
  SECTION 4.3.

  	
   

  	
  Administrators

  	
   

  	
  24

  
	
  SECTION 4.4.

  	
   

  	
  Appointment, Removal and Resignation of the Trustees
  and the Administrators

  	
   

  	
  24

  
	
  SECTION 4.5.

  	
   

  	
  Vacancies Among Trustees

  	
   

  	
  26

  

 

 i
 

 

 

	
  SECTION 4.6.

  	
   

  	
  Effect of Vacancies

  	
   

  	
  26

  
	
  SECTION 4.7.

  	
   

  	
  Meetings of the Trustees and the Administrators

  	
   

  	
  26

  
	
  SECTION 4.8.

  	
   

  	
  Delegation of Power

  	
   

  	
  27

  
	
  SECTION 4.9.

  	
   

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
   

  	
  27

  
	
  ARTICLE V

  	
   

  	
   

  
	
  DISTRIBUTIONS

  	
   

  	
   

  
	
  SECTION 5.1.

  	
   

  	
  Distributions

  	
   

  	
  27

  
	
  ARTICLE VI

  	
   

  	
   

  
	
  ISSUANCE OF
  SECURITIES

  	
   

  	
   

  
	
  SECTION 6.1.

  	
   

  	
  General Provisions Regarding Securities

  	
   

  	
  28

  
	
  SECTION 6.2.

  	
   

  	
  Paying Agent, Transfer Agent, Calculation Agent and
  Registrar

  	
   

  	
  29

  
	
  SECTION 6.3.

  	
   

  	
  Form and Dating

  	
   

  	
  29

  
	
  SECTION 6.4.

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Certificates

  	
   

  	
  30

  
	
  SECTION 6.5.

  	
   

  	
  Temporary Securities

  	
   

  	
  30

  
	
  SECTION 6.6.

  	
   

  	
  Cancellation

  	
   

  	
  30

  
	
  SECTION 6.7.

  	
   

  	
  Rights of Holders; Waivers of Past Defaults

  	
   

  	
  31

  
	
  ARTICLE VII

  	
   

  	
   

  
	
  DISSOLUTION AND
  TERMINATION OF TRUST

  	
   

  	
   

  
	
  SECTION 7.1.

  	
   

  	
  Dissolution and Termination of Trust

  	
   

  	
  33

  
	
  ARTICLE VIII

  	
   

  	
   

  
	
  TRANSFER OF
  INTERESTS

  	
   

  	
   

  
	
  SECTION 8.1.

  	
   

  	
  General

  	
   

  	
  34

  
	
  SECTION 8.2.

  	
   

  	
  Transfer Procedures and Restrictions

  	
   

  	
  35

  
	
  SECTION 8.3.

  	
   

  	
  Deemed Security Holders

  	
   

  	
  38

  
	
  ARTICLE IX

  	
   

  	
   

  
	
  LIMITATION OF
  LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

  	
   

  	
   

  
	
  SECTION 9.1.

  	
   

  	
  Liability

  	
   

  	
  38

  
	
  SECTION 9.2.

  	
   

  	
  Exculpation

  	
   

  	
  38

  
	
  SECTION 9.3.

  	
   

  	
  Fiduciary Duty

  	
   

  	
  39

  
	
  SECTION 9.4.

  	
   

  	
  Indemnification

  	
   

  	
  40

  
	
  SECTION 9.5.

  	
   

  	
  Outside Businesses

  	
   

  	
  43

  
	
  SECTION 9.6.

  	
   

  	
  Compensation; Fee

  	
   

  	
  43

  

 

 ii
 

 

 

	
  ARTICLE X

  	
   

  	
   

  
	
  ACCOUNTING

  	
   

  	
   

  
	
  SECTION 10.1.

  	
   

  	
  Fiscal Year

  	
   

  	
  43

  
	
  SECTION 10.2.

  	
   

  	
  Certain Accounting Matters

  	
   

  	
  44

  
	
  SECTION 10.3.

  	
   

  	
  Banking

  	
   

  	
  44

  
	
  SECTION 10.4.

  	
   

  	
  Withholding

  	
   

  	
  44

  
	
  ARTICLE XI

  	
   

  	
   

  
	
  AMENDMENTS AND
  MEETINGS

  	
   

  	
   

  
	
  SECTION 11.1.

  	
   

  	
  Amendments

  	
   

  	
  45

  
	
  SECTION 11.2.

  	
   

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

  	
   

  	
  47

  
	
  ARTICLE XII

  	
   

  	
   

  
	
  REPRESENTATIONS OF
  INSTITUTIONAL TRUSTEE

  	
   

  	
   

  
	
  SECTION 12.1.

  	
   

  	
  Representations and Warranties of Institutional
  Trustee

  	
   

  	
  48

  
	
  ARTICLE XIII

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  
	
  SECTION 13.1.

  	
   

  	
  Notices

  	
   

  	
  49

  
	
  SECTION 13.2.

  	
   

  	
  Governing Law

  	
   

  	
  51

  
	
  SECTION 13.3.

  	
   

  	
  Submission to Jurisdiction

  	
   

  	
  51

  
	
  SECTION 13.4.

  	
   

  	
  Intention of the Parties

  	
   

  	
  51

  
	
  SECTION 13.5.

  	
   

  	
  Headings

  	
   

  	
  51

  
	
  SECTION 13.6.

  	
   

  	
  Successors and Assigns

  	
   

  	
  51

  
	
  SECTION 13.7.

  	
   

  	
  Partial Enforceability

  	
   

  	
  52

  
	
  SECTION 13.8.

  	
   

  	
  Counterparts

  	
   

  	
  52

  

 

 iii
 

 

 

ANNEXES AND
EXHIBITS

	
  ANNEX I

  	
   

  	
  Terms of TP Securities and Common Securities

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
   

  	
  Form of Capital Security Certificate

  
	
  EXHIBIT A-2

  	
   

  	
  Form of Common Security Certificate

  

 

 iv

AMENDED AND RESTATED DECLARATION OF TRUST

OF

CHINO STATUTORY TRUST I

October 27, 2006

AMENDED
AND RESTATED DECLARATION OF TRUST (this “Declaration”), dated and effective as
of October 27, 2006, by the Trustee (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 Trustee, the Administrators and the Sponsor established Chino Statutory
Trust I (the “Trust”), a statutory trust under the Statutory Trust Act (as
defined herein), pursuant to a Declaration of Trust, dated as of October 25,
2006 (the “Original Declaration”), and a Certificate of Trust filed with the
Secretary of State of the State of Connecticut on October 25, 2006, 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,
the Trustee, 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;

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

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

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

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

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

“Administrators”
means each of Dann H. Bowman and Sandra Pender, 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.

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

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

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

(b)           such Person commences a voluntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, consents to the entry of an order for relief in an
involuntary case under any such law, or consents to the appointment of or
taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of such Person 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.

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“Business
Day” means any day other than Saturday, Sunday or any other day on which
banking institutions in Boston, Massachusetts 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.

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

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

“Capital
Securities Purchase Agreement” means the Capital Securities Purchase Agreement
dated as of October 25, 2006 among the Trust, the Sponsor and U.S. Bank
National Association.

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

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

“Certificate”
means any certificate evidencing Securities.

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

“Closing
Date” means the date of execution and delivery of this Declaration.

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

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

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

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

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

“Corporate
Trust Office” means the office of the Institutional Trustee at which 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 225 Asylum Street, 23rd Floor, Hartford, Connecticut 06103, Attn:
Corporate Trust Services – Chino Statutory Trust I.

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

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“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.

“Debenture
Issuer” means Chino Commercial Bancorp, a bank holding company incorporated in
California, in its capacity as issuer of the Debentures under the Indenture.

“Debenture
Trustee” means U.S. Bank National Association, not in its individual capacity
but solely as trustee under the Indenture until a successor is appointed
thereunder, and thereafter means such successor trustee.

“Debentures”
means the Junior Subordinated Debt Securities due December 15, 2036 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 Coupon
Rate applicable during such Extension Period, compounded quarterly from the
date on which such Deferred Interest would otherwise have been due and payable
until paid or made available for payment.

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

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

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

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

“Distribution
Payment Period” means the period from and including a Distribution Payment
Date, or in the case of the first Distribution Payment Period, the original
date of issuance of the Securities, to, but excluding, the next succeeding
Distribution Payment Date or, in the case of the last Distribution Payment
Period, the Redemption Date, Special Redemption Date or Maturity Date (each as
defined in the Indenture), as the case may be, for the related Debentures.

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

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

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

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

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

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

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

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

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

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

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

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

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

“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 paragraph 4(a) of Annex I.

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

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

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

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

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

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

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

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

“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.

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

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

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

“Placement
Agreement” means the Placement Agreement relating to the offering and sale of
Capital Securities.

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

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

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

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

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“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 paragraph 4(a) of Annex I.

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

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

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

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

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

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

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

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

“Securities”
means the Common Securities and the Capital Securities, 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 paragraph 4(a) of Annex I.

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

“Sponsor”
means Chino Commercial Bancorp, a bank holding company that is a U.S. Person
incorporated in California, 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 615 of Title 34 of the Connecticut General Statutes,
34 C.G.S. § 500 et  seq., as it may be amended from time to
time, or any successor legislation.

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

“Successor
Institutional Trustee” has the meaning set forth in Section 4.4(b).

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

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

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

“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.

“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.

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

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

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

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

ARTICLE II

ORGANIZATION

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

SECTION 2.2. Office.
The address of the principal office of the Trust, which shall be in a state of
the United States or the District of Columbia, is 225 Asylum Street, 23rd Floor, Hartford, Connecticut 06103, Attention:
Corporate

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Trust Services - Chino
Statutory Trust I. On ten Business Days’ written notice to the Institutional
Trustee and the Holders of the Securities, the Administrators may designate
another principal office, which shall be in a state of the United States or the
District of Columbia.

SECTION 2.3. Purpose.
The exclusive purposes and functions of the Trust are (a) to issue and sell the
Securities representing undivided beneficial interests in the assets of the
Trust, (b) to invest the gross proceeds from such sale 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 incidental thereto that are deemed necessary or advisable by the
Institutional Trustee, including, without limitation, those activities
specified in this Declaration. The Trust shall not borrow money, issue debt or
reinvest proceeds derived from investments, pledge any of its assets, or
otherwise undertake (or permit to be undertaken) any activity that would cause
the Trust not to be classified for United States federal income tax purposes as
a grantor trust.

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

SECTION 2.5. Title
to Property of the Trust. Except as provided in Section 2.6(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.

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

(a)           The Trustees and the Administrators
shall conduct the affairs of the Trust in accordance with the terms of this
Declaration. Subject to the limitations set forth in paragraph (b) of this
Section, and in accordance with the following provisions (i) and (ii), the

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

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

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

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

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

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(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 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 Placement Agreement and the Capital Securities
Purchase Agreement related thereto, 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;

(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 Connecticut) 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.

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(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;

(I)            after any Event of Default (of which
the Institutional Trustee has knowledge (as provided in Section 2.10(m)
hereof)) (provided, that such Event of Default is not by or with respect
to the Institutional Trustee), the taking of any action 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);

(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 Connecticut to protect the limited liability of the
Holders of the Capital Securities or to enable the Trust to effect the purposes
for which the Trust was created; and

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

(iii)          The Institutional Trustee shall have
the power and authority, and is hereby authorized, to act on behalf of the Trust
with respect to any of the duties,

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

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

(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 Administrators 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;
and

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

(d)           Notwithstanding anything herein to
the contrary, the Administrators, the Institutional Trustee and the Holders of
a Majority in liquidation amount of the Common Securities are authorized and
directed to conduct the affairs of the Trust and to operate the Trust so that
(i) the Trust will not be deemed to be an Investment Company (in the case of
the

 13
 

 

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

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

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

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

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

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

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

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

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

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

 14
 

 

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

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

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

SECTION 2.8. Powers
and Duties of the Institutional Trustee.

(a)           The legal title to the Debentures
shall be owned by and held of record in the name of the Institutional Trustee
in trust for the benefit of the Trust. The right, title and interest of the
Institutional Trustee to the Debentures shall vest automatically in each Person
who may hereafter be appointed as Institutional Trustee in accordance with
Section 4.7. 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.

(c)           The Institutional Trustee shall:

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

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

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

 15
 

 

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 (a “Legal
Action”) which arise out of or in connection with an Event of Default of which
a Responsible Officer of the Institutional Trustee has actual knowledge or the
Institutional Trustee’s duties and obligations under this Declaration or the
Trust Indenture Act; provided, however, that if an Event of
Default has occurred and is continuing and such event is attributable to the
failure of the Debenture Issuer to pay interest or premium, if any, on or
principal of the Debentures on the date such interest, premium, if any, or
principal is otherwise payable (or in the case of redemption, on the redemption
date), 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 Direct Action, the rights of the Holders of
the Common Securities will be subrogated to the rights of such Holder of the
Capital Securities to the extent of any payment made by the Debenture Issuer to
such Holder of the Capital Securities in such Direct Action; provided, however,
that a Holder of the Common Securities may exercise such right of subrogation
only if no Event of Default with respect to the Capital Securities has occurred
and is continuing.

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

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

 16
 

 

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

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

(b)           The duties and responsibilities of
the Trustees and the Administrators shall be as provided by this Declaration
and, in the case of the Institutional Trustee, by the Trust Indenture Act.
Notwithstanding the foregoing, no provision of this Declaration shall require
any Trustee or Administrator to expend or risk its own funds or otherwise incur
any financial liability in the performance of any of its duties hereunder, or
in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risk or liability is not reasonably assured to
it. Whether or not therein expressly so provided, every provision of this
Declaration relating to the conduct or affecting the liability of or affording
protection to the Trustees or the Administrators shall be subject to the
provisions of this Article. Nothing in this Declaration shall be construed to
release a Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct or bad faith. Nothing
in this Declaration shall be construed to release an Administrator from
liability for its own gross negligent action, its own gross negligent failure
to act, or its own willful misconduct or bad faith. To the extent that, at law
or in equity, a Trustee or an Administrator has duties and liabilities relating
to the Trust or to the Holders, such Trustee or Administrator shall not be
liable to the Trust or to any Holder for such Trustee’s or Administrator’s good
faith reliance on the provisions of this Declaration. The provisions of this
Declaration, to the extent that they restrict the duties and liabilities of the
Administrators or the Trustees otherwise existing at law or in equity, are
agreed by the Sponsor and the Holders to replace such other duties and liabilities
of the Administrators or the Trustees.

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

 17
 

 

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

(i)            the Institutional Trustee shall not
be liable for any error or judgment made in good faith by 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;

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

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

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

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

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

 18
 

 

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

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

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

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

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

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

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

 19
 

 

Institutional Trustee may make such further inquiry or
investigation into such facts or matters as it may see fit;

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

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

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

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

(m)          the Institutional Trustee shall not be
charged with knowledge of an Event of Default unless a Responsible Officer of
the Institutional Trustee has actual knowledge of such event or the
Institutional Trustee receives written notice of such event from any Holder,
except 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

 20
 

 

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.

SECTION 2.11. 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 2.12. 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 2.13. 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 2.14. Mergers.

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

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

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

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

(B)           substitutes for the Securities other
securities having substantially the same terms as the Securities (the “Successor
Securities”) so that the Successor Securities rank the same as the Securities
rank with

 21
 

 

respect to Distributions
and payments upon Liquidation, redemption and otherwise;

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

(iii)          the Capital Securities or any
Successor Securities (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;

 22
 

 

(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, and in reliance on Section 6 of the Placement Agreement, 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, if applicable, 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;

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

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

 23

 

ARTICLE IV

TRUSTEES AND ADMINISTRATORS

SECTION 4.1. Number of
Trustees. The number of Trustees initially shall be one, 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 always be one Trustee who shall be the
Institutional Trustee.

SECTION 4.2. 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
or national association organized and doing business under the laws of the
United States of America or any state thereof or of the District of Columbia
and authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least fifty million U.S. dollars
($50,000,000), and subject to supervision or examination by federal, state or District
of Columbia authority. If such corporation or national association publishes
reports of condition at least annually, pursuant to law or to the requirements
of the supervising or examining authority referred to above, then for the
purposes of this Section 4.3(a)(iii), the combined capital and surplus of such
corporation or national association shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published.

(b)           If at any time the
Institutional Trustee shall cease to be eligible to so act under Section
4.2(a), the Institutional Trustee shall immediately resign in the manner and
with the effect set forth in Section 4.5.

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

(d)           The initial
Institutional Trustee shall be U.S. Bank National Association.

 24
 

 

SECTION 4.3. Administrators.
Each Administrator shall be a U.S. Person.

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

SECTION 4.4. Appointment,
Removal and Resignation of the Trustees and the Administrators.

(a)           No resignation or
removal of any 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 4.4.

(b)           Subject to Section
4.4(a), a Trustee may resign at any time by giving written notice thereof to
the Holders of the Securities and by appointing a successor Trustee. Upon the
resignation of the Institutional Trustee, the Institutional Trustee shall
appoint a successor by requesting from at least three Persons meeting the
eligibility requirements their expenses and charges to serve as the successor
Institutional Trustee on a form provided by the Administrators, and selecting
the Person who agrees to the lowest reasonable expense and charges (the “Successor
Institutional Trustee”). If the instrument of acceptance by the successor
Trustee required by this Section 4.4 shall not have been delivered to the
Trustee within 60 days after the giving of such notice of resignation or
delivery of the instrument of removal, the 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 Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint
a Trustee. The Institutional Trustee shall have no liability for the selection
of such successor pursuant to this Section 4.4.

(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 Trustee, shall promptly appoint a
successor Trustee, and such successor Trustee shall comply with the applicable
requirements of this Section 4.4. If an Event of Default shall have occurred
and be continuing, the Institutional Trustee may be removed by the act of the Holders
of a Majority in liquidation amount of the Capital Securities, delivered to the
Trustee (in its individual capacity and on behalf of the Trust). If any Trustee
shall be so removed, the Holders of Capital Securities, by act of the Holders
of a Majority in liquidation amount of the Capital Securities then outstanding
delivered to the Trustee, shall promptly appoint a successor Trustee or
Trustees, and such successor Trustee shall comply with the applicable
requirements of this Section 4.4. If no successor 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 4.4
within 30 days after delivery of an instrument of removal, the

 25
 

 

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 Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a successor 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 Trustee and the address of its
Corporate Trust Office if it is the Institutional Trustee.

(e)           In case of the
appointment hereunder of a successor Trustee, the retiring Trustee and each
successor Trustee with respect to the Securities shall execute and deliver an
amendment hereto wherein each successor 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 Trustee all the
rights, powers, trusts and duties of the retiring 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 Trustee, it being understood that
nothing herein or in such amendment shall constitute such Trustees co-trustees
and upon the execution and delivery of such amendment the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on request of the Trust or any successor Trustee,
such retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all Trust Property, all proceeds thereof and money held by such retiring
Trustee hereunder with respect to the Securities and the Trust subject to the
payment of all unpaid fees, expenses and indemnities of such retiring Trustee.

(f)            No Institutional
Trustee shall be liable for the acts or omissions to act of any Successor
Institutional Trustee.

(g)           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.

SECTION 4.5. 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
4.4.

SECTION 4.6. 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

 26
 

 

Trustees shall occur, until such vacancy is filled by
the appointment of a Trustee in accordance with Section 4.4, 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 4.7. Meetings of the Trustees and the
Administrators. Meetings of the Trustees or the Administrators shall be
held from time to time upon the call of any Trustee or Administrator, as
applicable. Regular meetings of the Trustees and the Administrators,
respectively, may be in person in the United States or by telephone, at a place
(if applicable) and time fixed by resolution of the Trustees or the
Administrators, as applicable. Notice of any in-person meetings of the Trustees
or the Administrators shall be hand delivered or otherwise delivered in writing
(including by facsimile, with a hard copy by overnight courier) not less than
48 hours before such meeting. Notice of any telephonic meetings of the Trustees
or the Administrators or any committee thereof shall be hand delivered or
otherwise delivered in writing (including by facsimile, with a hard copy by
overnight courier) not less than 24 hours before a meeting. Notices shall
contain a brief statement of the time, place and anticipated purposes of the
meeting. The presence (whether in person or by telephone) of a Trustee or an
Administrator, as the case may be, at a meeting shall constitute a waiver of
notice of such meeting except where a Trustee or an Administrator, as the case
may be, attends a meeting for the express purpose of objecting to the
transaction of any activity on the ground that the meeting has not been
lawfully called or convened. Unless provided otherwise in this Declaration, any
action of the Trustees or the Administrators, as the case may be, may be taken
at a meeting by vote of a majority of the Trustees or the Administrators
present (whether in person or by telephone) and eligible to vote with respect
to such matter; provided, that, in the case of the Administrators, a
Quorum is present, or without a meeting by the unanimous written consent of the
Trustees or the Administrators, as the case may be. Meetings of the Trustees
and the Administrators together shall be held from time to time upon the call
of any Trustee or Administrator.

SECTION 4.8. 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 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.

 27
 

 

SECTION 4.9. Merger, Conversion, Consolidation or
Succession to Business.

Any Person into which the Institutional 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
Institutional Trustee shall be a party, or any Person succeeding to all or
substantially all the corporate trust business of the Institutional Trustee
shall be the successor of the Institutional Trustee 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.

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 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

 28
 

 

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 and payment thereon shall be
made Pro Rata with the Common Securities except that, where an Event of Default
has occurred and is continuing, the rights of Holders of the Common Securities
to payment in respect of Distributions and payments upon liquidation,
redemption and otherwise are subordinated to the rights to payment of the
Holders of the Capital Securities.

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

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

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

(a)           The Trust shall
maintain in New York, New York, 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 Trustee hereby appoints the Institutional Trustee as Paying Agent
and Transfer 

 29
 

 

Agent at U.S. Bank
National Association, 100 Wall Street, 19th Floor, New York, New York 10005,
Attn: Corporate Trust Services – Chino Statutory Trust I. 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.

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

SECTION 6.3. Form and
Dating.

(a)           The Capital Securities
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
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 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
sold by the Trust to the initial purchasers pursuant to the Placement Agreement
and the Capital Securities Purchase Agreement shall be issued in definitive
form, registered in the name of the Holder thereof, without coupons and with
the Restricted Securities Legend.

 30
 

 

SECTION 6.4. 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 bona fide purchaser, an Administrator
on behalf of the Trust shall execute (and in the case of a Capital Security
Certificate, the Institutional Trustee shall authenticate) and deliver, 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 6.4, 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 6.5. 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 6.6. 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 that have been delivered to the Institutional
Trustee for cancellation.

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

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

 31
 

 

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

(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

 32
 

 

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 6.7.

(f)            Except as otherwise
provided in this Section 6.7, 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.

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 December 15, 2041, 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;

 33
 

 

(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; or

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

(b)           As soon as is
practicable after the occurrence of an event referred to in Section 7.1(a), and
after satisfaction of liabilities to creditors of the Trust as required by
applicable law, and subject to the terms set forth in Annex I, the
Institutional Trustee, when notified in writing 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 Connecticut in
accordance with Section 34-503 of the Statutory Trust Act.

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

ARTICLE VIII

TRANSFER OF INTERESTS

SECTION 8.1. General.

(a)           Subject to Section 6.4
and 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

 34
 

 

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. 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 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(d)).

(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

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reasonably satisfactory
to the Administrators, the Institutional Trustee and the Registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing.

(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:

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

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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 THE CERTIFICATE 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

 37
 

 

purported transferee shall be deemed not to be a
Holder of such Capital Securities for any purpose, including, but not limited
to, the receipt of Distributions on such Capital Securities, and such purported
transferee shall be deemed to have no interest whatsoever in such Capital
Securities.

(e)           Each party hereto
understands and hereby agrees that the initial purchaser is intended solely to
be an interim holder of the Capital Securities and is purchasing such
securities to facilitate consummation of the transactions contemplated herein
and in the documents ancillary hereto. Notwithstanding any provision in this
Declaration to the contrary, the initial purchaser shall have the right upon
notice (a “Transfer Notice”) to the Institutional Trustee and the Sponsor to
transfer title in and to the Capital Securities; provided the initial purchaser
shall take reasonable steps to ensure that such transfer is exempt from
registration under the Securities Act of 1933, as amended, and rules
promulgated thereunder. Any Transfer Notice delivered to the Institutional
Trustee and Sponsor pursuant to the preceding sentence shall indicate the
aggregate liquidation amount of Capital Securities being transferred, the name
and address of the transferee thereof (the “Transferee”) and the date of such
transfer. Notwithstanding any provision in this Declaration to the contrary,
the transfer by the initial purchaser of title in and to the Capital Securities
pursuant to a Transfer Notice shall not be subject to any requirement relating
to Opinions of Counsel, Certificates of Transfer or any other Opinion or
Certificate applicable to transfers hereunder and relating to Capital
Securities.

(f)            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:

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(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 § 34-523(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 Connecticut Business Corporation Act, Chapter 601 of the
Connecticut General Statutes, Section 33-600 et  seq., except as
otherwise specifically set forth herein.

SECTION 9.2. Exculpation.

(a)           No Indemnified Person
shall be liable, responsible or accountable in damages or otherwise to the
Trust or any Covered Person for any loss, damage or claim incurred by reason of
any act or omission performed or omitted by such Indemnified Person in good
faith on behalf of the Trust and in a manner such Indemnified Person reasonably
believed to be within the scope of the authority conferred on such Indemnified
Person by this Declaration or by law, except that an Indemnified Person (other
than an Administrator) shall be liable for any such loss, damage or claim
incurred by reason of such Indemnified Person’s negligence 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

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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 the duties and liabilities of an Indemnified Person
otherwise existing at law or in equity (other than the duties imposed on the
Institutional Trustee under the Trust Indenture Act), are agreed by the parties
hereto to replace such other duties and liabilities of the Indemnified Person.

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

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

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

SECTION 9.4. Indemnification.

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

 40
 

 

interests of the Trust,
and, with respect to any criminal action or proceeding, had reasonable cause to
believe that such conduct was unlawful.

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

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

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

(v)           To the fullest extent permitted
by law, expenses (including attorneys’ fees and expenses) incurred by an
Indemnified Person in defending a civil, criminal, administrative or
investigative action, suit or proceeding referred to in paragraphs (i) and (ii)
of this Section 9.4(a) shall be paid by the Sponsor in advance of the final
disposition of such action, suit or proceeding upon receipt of an undertaking
by or on behalf of such Indemnified Person to repay such amount if it shall
ultimately be determined that such Person is not entitled to be indemnified by
the Sponsor as authorized in this Section 9.4(a). Notwithstanding

 41
 

 

the foregoing, no advance
shall be made by the Sponsor if a determination is reasonably and promptly made
(1) in the case of a Company Indemnified Person (A) by the Administrators by a
majority vote of a Quorum of disinterested Administrators, (B) if such a Quorum
is not obtainable, or, even if obtainable, if a Quorum of disinterested
Administrators so directs, by independent legal counsel in a written opinion or
(C) by the Common Security Holder of the Trust, that, based upon the facts
known to the Administrators, counsel or the Common Security Holder at the time
such determination is made, such Indemnified Person acted in bad faith or in a
manner that such Person either believed to be opposed to or did not believe to
be in the best interests of the Trust, or, with respect to any criminal
proceeding, that such Indemnified Person believed or had reasonable cause to
believe such conduct was unlawful, or (2) in the case of a Fiduciary
Indemnified Person, by independent legal counsel in a written opinion that,
based upon the facts known to the counsel at the time such determination is
made, such Indemnified Person acted in bad faith or in a manner that such
Indemnified Person either believed to be opposed to or did not believe to be in
the best interests of the Trust, or, with respect to any criminal proceeding,
that such Indemnified Person believed or had reasonable cause to believe such
conduct was unlawful. In no event shall any advance be made (i) to a Company
Indemnified Person in instances where the Administrators, independent legal
counsel or the Common Security Holder reasonably determine that such Person
deliberately breached such Person’s duty to the Trust or its Common or Capital
Security Holders or (ii) to a Fiduciary Indemnified Person in instances where
independent legal counsel promptly and reasonably determines in a written
opinion that such Person deliberately breached such Person’s duty to the Trust
or its Common or Capital Security Holders.

(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.

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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.

(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 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 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 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 and the Institutional Trustee may engage or

 43
 

 

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)           Subject to the
provisions set forth in the Fee Agreement between the Institutional Trustee,
Cohen & Company and the Company of even date herewith, the Sponsor agrees:

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

(ii)           except as otherwise
expressly provided herein, to reimburse 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.

(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.

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

 44
 

 

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.

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

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

(e)           The Administrators will
cause the Sponsor’s regulatory reports to be delivered to the Holder promptly
following their filing with the Federal Reserve.

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 Debt Security 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 Debt Security or the
holder of such Debt Security 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

 45
 

 

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 overwithholding, Holders shall be limited to an action
against the applicable jurisdiction. If the amount required to be withheld was
not withheld from actual Distributions made, the Institutional Trustee or any
Paying Agent may reduce subsequent Distributions by the amount of such withholding.

ARTICLE XI

AMENDMENTS AND MEETINGS

SECTION 11.1. Amendments.

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

(i)            the Institutional
Trustee,

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

(iii)          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

 46
 

 

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

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

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

(D)          cause the Debenture
Issuer to be unable to treat an amount equal to the Liquidation Amount of the
Capital Securities as “Tier 1 Capital” for purposes of the capital adequacy
guidelines of (x) the Federal Reserve (or, if the Debenture Issuer is not
a bank holding company, such guidelines or policies applied to the Debenture
Issuer as if the Debenture Issuer were subject to such guidelines of policies)
or of (y) any other regulatory authority having 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 (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.

(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 amended 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; or

 47
 

 

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

provided,
however, that no such modification, elimination or addition referred to
in clauses (i), (ii), (iii) or (iv) shall adversely affect 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 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

 48
 

 

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 Connecticut relating
to proxies, and judicial interpretations thereunder, as if the Trust were a
Connecticut corporation and the Holders of the Securities were stockholders of
a Connecticut 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

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:

(a)           the Institutional
Trustee is a banking corporation or national association with trust powers,
duly organized, validly existing and in good standing under the laws of the
State of New York 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;

 49
 

 

(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 Connecticut 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.

ARTICLE XIII

MISCELLANEOUS

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

(a)           if given to the Trust,
in care of the Administrators at the Trust’s mailing address set forth below
(or such other address as the Trust may give notice of to the Holders of the
Securities):

Chino Statutory Trust I

c/o Chino Commercial Bancorp

14345 Pipeline Avenue

Chino, California 91710

Attention: Dann H. Bowman

Telecopy: (909) 465-1279

Telephone: (909) 393-8880

(b)           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):

 50
 

 

U.S. Bank National Association

225 Asylum Street, 23rd Floor

Hartford, CT 06103

Attention:  Corporate Trust Services

Chino Statutory Trust I

With a copy to:

U.S. Bank National
Association

One Federal Street, 3rd Floor

Boston, MA 02110

Telecopy: (617) 603-6683

Telephone: (617) 603-6549

(c)           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):

Chino Commercial Bancorp

14345 Pipeline Avenue

Chino, California 91710

Attention: Dann H. Bowman

Telecopy: (909) 465-1279

Telephone: (909) 393-8880

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

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

SECTION 13.2. Governing Law. This Declaration and the
rights and obligations of the parties hereunder shall be governed by and
interpreted in accordance with the law of the State of Connecticut 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 Connecticut or any other
jurisdiction that would call for the application of the law of any jurisdiction
other than the State of Connecticut.

SECTION 13.3. Submission to Jurisdiction.

(a)           Each of the parties
hereto agrees that any suit, action or proceeding arising out of or based upon
this Declaration, or the transactions contemplated hereby, may be instituted in
any of the courts of the State of New York located in the Borough of Manhattan,
City and

 51
 

 

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

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

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

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

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

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

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

SECTION 13.8. Counterparts. This Declaration may
contain more than one counterpart of the signature page and this Declaration
may be executed by the affixing of the signature of each of the Trustees and
Administrators to any of such counterpart signature pages. All of such
counterpart signature pages shall be read as though one, and they shall have
the

 52
 

 

same force and effect as though all of the signers had
signed a single signature page.

 53

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

	
  

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as Institutional
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Paul D. Allen

  
	
   

  	
   

  	
  Name:

  	
  Paul D. Allen

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CHINO COMMERCIAL BANCORP,

  
	
   

  	
  as Sponsor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dann H. Bowman

  
	
   

  	
   

  	
  Name:

  	
  Dann H. Bowman

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CHINO STATUTORY TRUST I

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dann H. Bowman

  
	
   

  	
   

  	
  Name:

  	
  Dann H. Bowman

  
	
   

  	
   

  	
  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Sandra Pender

  
	
   

  	
   

  	
  Name:

  	
  Sandra Pender

  
	
   

  	
   

  	
  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 October
27, 2006 (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. 3,000 Capital
Securities of Chino Statutory Trust I (the “Trust”), with an aggregate stated
liquidation amount with respect to the assets of the Trust of Three Million
Dollars ($3,000,000) 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 “TP Securities” (the “Capital Securities”).
The Capital Security Certificates evidencing the Capital Securities shall be
substantially in the form of Exhibit A-1 to the Declaration, with such changes
and additions thereto or deletions therefrom as may be required by ordinary
usage, custom or practice or to conform to the rules of any stock exchange on
which the Capital Securities are listed, if any.

(b)           Common Securities. 93 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 Ninety Three Thousand Dollars ($93,000) 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 rate of 6.795% (the “Fixed Rate”) per annum
from October 27, 2006 until December 15, 2011 (the “Fixed Rate Period”) and
thereafter at a variable per annum rate of interest, reset quarterly, equal to
LIBOR, as determined on the LIBOR Determination Date for such Distribution
Payment Period, plus 1.68% (the “Variable Rate” and together with the Fixed
Rate, the “Coupon Rate”) of the stated liquidation amount of $1,000 per
Security (provided, however, that the Coupon Rate for any Distribution 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), such Coupon
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 applicable Coupon 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

 A-I-1
 

 

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. During the Fixed Rate Period, the amount of
Distributions payable for any Distribution Payment Period will be computed for
any full quarterly Distribution Payment Period on the basis of a 360-day year
of twelve 30-day months and the amount payable for any partial period shall be
computed on the basis of the number of days elapsed in a 360-day year of twelve
30-day months. Upon expiration of the Fixed Rate Period, Distributions will be
computed on the basis of a 360-day year and the actual number of days elapsed
in the relevant Distribution period; provided, however, that upon the
occurrence of a Special Event redemption pursuant to paragraph 4(a) below the
amounts payable pursuant to this Declaration shall be calculated as set forth
in the definition of Special Redemption Price.

(b)           Upon expiration of the Fixed Rate
Period, LIBOR shall be determined by the Calculation Agent in accordance with
the following provisions:

(1)           On the second LIBOR Business Day (provided,
that on such day commercial banks are open for business (including dealings in
foreign currency deposits) in London (a “LIBOR Banking Day”), and otherwise the
next preceding LIBOR Business Day that is also a LIBOR Banking Day) prior to
March 15, June 15, September 15 and December 15 (or, with respect to the first
Distribution Payment Period after the expiration of the Fixed Rate Period, on
December 15, 2011), (each such day, a “LIBOR Determination Date”) for such
Distribution Payment Period), the Calculation Agent shall obtain the rate for
three-month U.S. Dollar deposits in Europe, which appears on Telerate Page 3750
(as defined in the International Swaps and Derivatives Association, Inc. 2000
Interest Rate and Currency Exchange Definitions) or such other page as may
replace such Telerate Page 3750 on the Moneyline Telerate, Inc. service (or
such other service or services as may be nominated by the British Banker’s
Association as the information vendor for the purpose of displaying London
interbank offered rates for U.S. dollar deposits), as of 11:00 a.m. (London
time) on such LIBOR Determination Date, and the rate so obtained shall be LIBOR
for such Distribution Payment Period. “LIBOR Business Day” means any day that
is not a Saturday, Sunday or other day on which commercial banking institutions
in The City of New York or Boston, Massachusetts are authorized or obligated by
law or executive order to be closed. If such rate is superseded on Telerate
Page 3750 by a corrected rate before 12:00 noon (London time) on the same LIBOR
Determination Date, the corrected rate as so substituted will be the applicable
LIBOR for that Distribution Payment Period.

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

 A-I-2
 

 

London Interbank market
for three-month U.S. Dollar deposits in Europe (in an amount determined by the
Calculation Agent) by reference to requests for quotations as of approximately
11:00 a.m. (London time) on the LIBOR Determination Date made by the
Calculation Agent to the Reference Banks. If, on any LIBOR Determination Date,
at least two of the Reference Banks provide such quotations, LIBOR shall equal
the arithmetic mean of such quotations. If, on any LIBOR Determination Date,
only one or none of the Reference Banks provide such a quotation, LIBOR shall
be deemed to be the arithmetic mean of the offered quotations that at least two
leading banks in the City of New York (as selected by the Calculation Agent)
are quoting on the relevant LIBOR Determination Date for three-month U.S.
Dollar deposits in Europe at approximately 11:00 a.m. (London time) (in an
amount determined by the Calculation Agent). As used herein, “Reference Banks”
means four major banks in the London Interbank market selected by the
Calculation Agent.

(3)           If the Calculation Agent is required
but is unable to determine a rate in accordance with at least one of the
procedures provided above, LIBOR for the applicable Distribution Payment Period
shall be LIBOR in effect for the immediately preceding Distribution Payment
Period.

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

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

(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 payment periods as described
herein, quarterly in arrears on March 15, June 15, September 15 and December 15
of each year, commencing December 15, 2006 (each, a “Distribution Payment Date”).
Subject to prior submission of Notice (as defined in the Indenture), and so
long as no Event of Default

 A-I-3
 

 

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 Coupon 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; 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 (a)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Debenture Issuer (A) in connection with any employment contract, benefit
plan or other similar arrangement with or for the benefit of one or more employees,
officers, directors or consultants, (B) in connection with a dividend
reinvestment or stockholder stock purchase plan or (C) in connection with the
issuance of capital stock of the Debenture Issuer (or securities convertible
into or exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a
result of any exchange, 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, or (e) any
dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of such warrants, options or
other rights is the same stock as that on which the dividend is being paid or
ranks pari passu with or junior
to such stock. Prior to the termination of any Extension Period, the 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

 A-I-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 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
15 days 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 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 no 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 Coupon Rate of, and bearing accrued and unpaid interest in an
amount equal to the accrued and unpaid Distributions

 A-I-5
 

 

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 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 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) December 15, 2041, 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 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 Connecticut.

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 Trust, to the Holders of the
Securities on a Pro Rata basis, the Debentures, and such distribution occurs.

 A-I-6
 

 

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) 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 Holders of Securities in
respect of any payments due and payable under the Debentures) and (iii) 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
December 15, 2036. The Debentures may be redeemed by the Debenture Issuer, in
whole or in part, on any March 15, June 15, September 15 or December 15 on or
after December 15, 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.

“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

 A-I-7
 

 

memorandum, regulatory procedure, notice or
announcement) (an “Administrative Action”) or judicial decision interpreting or
applying such laws or regulations, regardless of whether such Administrative
Action or judicial decision is issued to or in connection with a proceeding
involving the Debenture Issuer or the Trust and whether or not subject to
review or appeal, which amendment, clarification, change, Administrative Action
or decision is enacted, promulgated or announced, in each case on or after the
date of original issuance of the Debentures, there is more than an
insubstantial risk that: (i) the Trust is, or will be within 90 days of the
date of such opinion, subject to United States federal income tax with respect
to income received or accrued on the Debentures; (ii) if the Debenture Issuer
is organized 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.

“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.

“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 any successor regulatory authority with jurisdiction over bank or financial
holding companies), as then in effect and applicable to the Debenture Issuer
(or if the Debenture Issuer is not a bank holding company, such guidelines
applied to the Debenture Issuer as if the Debenture Issuer were subject to such
guidelines); 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

 A-I-8
 

 

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.

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

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

	
  Special Redemption During the

  12-Month Period Beginning December 15

  	
   

  	
  Percentage of Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  103.140%

  	
   

  
	
  2008

  	
   

  	
  102.355%

  	
   

  
	
  2009

  	
   

  	
  101.570%

  	
   

  
	
  2010

  	
   

  	
  100.785%

  	
   

  
	
  2011 and thereafter

  	
   

  	
  100.000%

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

“Redemption
Date” means the date fixed for the redemption of Capital Securities, which
shall be any March 15, June 15, September 15 or December 15 on or after
December 15, 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.

(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 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.

 A-I-9
 

 

(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, with respect to
Book-Entry Capital Securities, on the Redemption Date or Special Redemption
Date, as applicable, irrevocably deposit with the Depositary for such
Book-Entry Capital Securities, to the extent available therefor, funds
sufficient to pay the relevant Redemption Price or Special Redemption Price, as
applicable, and will give such Depositary irrevocable instructions and
authority to pay the Redemption Price or Special Redemption Price, as
applicable, to the Owners of the Capital Securities. With respect to Capital
Securities that are not Book-Entry Capital Securities, 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 by check mailed to the address of each such Holder appearing on the
books and records of the Trust on the redemption date. 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

 A-I-10
 

 

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 then applicable rate from the original redemption date 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 Administrators on behalf of the Trust (A) in respect of the
Capital Securities, to the Holders thereof, and (B) in respect of the Common
Securities, to the Holder thereof.

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

5.             Voting Rights - Capital Securities.

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

(b)           Subject to the requirements of
obtaining a tax opinion by the Institutional Trustee in certain circumstances
set forth in the last sentence of this paragraph, the Holders of a Majority in
liquidation amount of the Capital Securities, voting separately as a class,
have the right to direct the time, method, and place of conducting any
proceeding for any remedy available to the Institutional Trustee, or exercising
any trust or power conferred upon the Institutional Trustee under the
Declaration, including 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

 A-I-11
 

 

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), 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 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

 A-I-12
 

 

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.

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.

(c)           Subject to Section 6.7 of the
Declaration and only after each Event of Default (if any) with respect to the
Capital Securities has been cured, waived or otherwise eliminated and subject
to the requirements of the second to last sentence of this paragraph, the
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

 A-I-13
 

 

conferred on the Debenture Trustee with respect to the
Debentures, (ii) waiving any past default and its consequences that are
waivable under the Indenture, or (iii) exercising any right to rescind or annul
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.             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 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

 A-I-14
 

 

only the affected 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 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.

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

9.             Ranking. The Capital Securities rank pari passu
with, and payment thereon shall be made Pro Rata with, the Common Securities
except that, where an Event of Default has occurred and is continuing, the
rights of Holders of the Common Securities to receive payment of Distributions
and payments upon liquidation, redemption and otherwise are subordinated to

 A-I-15
 

 

the rights of the Holders of the Capital Securities
with the result that no payment of any 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.

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

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

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

 A-I-16

 

EXHIBIT A-1

FORM OF CAPITAL SECURITY CERTIFICATE

[FORM OF FACE OF SECURITY]

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. THE HOLDER OF THIS SECURITY 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 AGREES, REPRESENTS AND WARRANTS
THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS SECURITY UNLESS
SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT OR AN APPLICABLE
EXEMPTION THEREFROM.

 A-1-1
 

 

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

IN
CONNECTION WITH ANY TRANSFER, THE HOLDER OF THE CERTIFICATE 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.

 A-1-2
 

 

 

	
  Certificate Number      [P-001]

  	
  Number of Capital
  Securities:  3,000

  

 

Certificate Evidencing Capital Securities

of

Chino Statutory Trust I

TP Securities

(liquidation amount $1,000 per Capital Security)

Chino
Statutory Trust I, a statutory trust created under the laws of the State of
Connecticut (the “Trust”), hereby certifies that Embassy & Co. (the “Holder”),
is the registered owner of 3,000 capital securities of the Trust representing
undivided beneficial interests in the assets of the Trust, designated the TP
Securities (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 October 27, 2006, among Dann H.
Bowman and Sandra Pender, as Administrators, U.S. Bank National Association, as
Institutional Trustee, Chino Commercial Bancorp, 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 Connecticut, without regard to principles of conflict of
laws.

 A-1-3
 

 

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

	
  

  	
  Chino Statutory Trust I

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:    Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  
					

 

CERTIFICATE OF AUTHENTICATION

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

	
  

  	
  U.S. BANK NATIONAL ASSOCIATION, not

  in its individual capacity but solely as

  Institutional Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  

 

 A-1-4
 

 

[FORM OF REVERSE OF SECURITY]

Distributions
payable on each Capital Security will be payable at a fixed rate of 6.795% (the
“Fixed Rate”) per annum from October 27, 2006 until December 15, 2011 (the “Fixed
Rate Period”) and thereafter at a variable per annum rate of interest, reset
quarterly, equal to LIBOR (as defined in the Declaration) plus 1.68% (the “Variable
Rate”) (the “Coupon Rate” is defined to include the Fixed Rate and Variable
Rate, as applicable) of the stated liquidation amount of $1,000 per Capital
Security (provided, however, that the Coupon Rate for any Distribution 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), such Coupon 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 then applicable
Coupon 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. During the Fixed Rate
Period, the amount of Distributions payable for any Distribution Payment Period
shall be computed for any full quarterly Distribution Payment Period on the
basis of a 360-day year of twelve 30-day months and the amount payable for any
partial period shall be computed on the basis of the number of days elapsed in
a 360-day year of twelve 30-day months. Upon expiration of the Fixed Rate
Period, distributions shall be computed on the basis of a 360-day year and the
actual number of days elapsed in the relevant Distribution Payment Period.

Except
as otherwise described below, Distributions on the Capital Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on March 15, June 15, September 15 and December 15 of each
year, commencing on December 15, 2006 (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 Coupon 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

 A-1-5
 

 

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 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 as provided in the Declaration.

 A-1-6
 

 

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.

 A-1-7

 

 

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: 93

  

 

Certificate Evidencing Common Securities

of

Chino Statutory Trust I

Chino
Statutory Trust I, a statutory trust created under the laws of the State of
Connecticut (the “Trust”), hereby certifies that Chino Commercial Bancorp (the “Holder”)
is the registered owner of 93 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 October 27,
2006, among Dann H. Bowman and Sandra Pender, as Administrators, U.S. Bank
National Association, 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 Connecticut, 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                    ,
2006.

	
  

  	
  Chino Statutory Trust I

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Administrator

  
					

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[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 rate of
6.795% (the “Fixed Rate”) per annum from October 27, 2006 until December 15,
2011 (the “Fixed Rate Period”) and thereafter at a variable per annum rate of
interest, reset quarterly, equal to LIBOR (as defined in the Declaration) plus
1.68% (the “Variable Rate”) (the “Coupon Rate” is defined to include the Fixed
Rate and Variable Rate, as applicable) of the stated liquidation amount of
$1,000 per Capital Security (provided, however, that the Coupon Rate for any
Distribution 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), such Coupon 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 then applicable Coupon 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. During the Fixed Rate Period, the amount of Distributions payable for
any Distribution Payment Period shall be computed for any full quarterly
Distribution Payment Period on the basis of a 360-day year of twelve 30-day
months and the amount payable for any partial period shall be computed on the
basis of the number of days elapsed in a 360-day year of twelve 30-day months.
Upon expiration of the Fixed Rate Period, distributions shall be computed on
the basis of a 360-day year and the actual number of days elapsed in the
relevant Distribution Payment Period.

Except as otherwise described below, Distributions on
the Common Securities will be cumulative, will accrue from the date of original
issuance and will be payable quarterly in arrears on March 15, June 15,
September 15 and December 15 of each year, commencing on December 15, 2006
(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 Coupon 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

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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 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.

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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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