Document:

exv4w29

 

Exhibit
4.29

EXECUTION

COUNTRYWIDE FINANCIAL CORPORATION

AND

THE BANK OF NEW YORK

as Trustee

SUPPLEMENTAL INDENTURE

Dated as of November 8, 2006

to

JUNIOR SUBORDINATED INDENTURE

Dated as of November 8, 2006

 

 

     SUPPLEMENTAL INDENTURE, dated as of November 8, 2006, between COUNTRYWIDE FINANCIAL
CORPORATION, a Delaware corporation (the “Company”) having its principal office at 4500
Park Granada Blvd., Calabasas, California 91302, and THE BANK OF NEW YORK, a New York banking
corporation, as Trustee (the “Trustee”).

WITNESSETH:

     WHEREAS, the Company and the Trustee have executed and delivered a certain Junior Subordinated
Indenture, dated as of the date hereof (the “Indenture”), providing for the issuance from
time to time of Securities;

     WHEREAS, Section 9.1 of the Indenture provides that a supplemental indenture may be entered
into by the Company and the Trustee without the consent of any Holder of any Securities to
establish the form or terms of Securities of any series as permitted by Sections 2.1 or 3.1 of the
Indenture;

     WHEREAS, pursuant to Sections 2.1 and 3.1 of the Indenture, the Company desires to provide for
the establishment of a new series of Securities under the Indenture, the form of such Securities
and the terms, provisions and conditions thereof to be set forth as provided in the Indenture and
this Supplemental Indenture;

     WHEREAS, the conditions set forth in the Indenture for the execution and delivery of this
Supplemental Indenture have been satisfied; and

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

     NOW, THEREFORE, in consideration of the premises and the purchase of the Securities of the
series established by this Supplemental Indenture by the Holders thereof from time to time on or
after the date hereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all such Holders, that the Indenture is supplemented and amended, to the extent and for
the purposes expressed herein, as follows:

ARTICLE I

DEFINITIONS

     1.1 For all purposes of this Supplemental Indenture, except as otherwise expressly provided or
unless the context otherwise requires, (i) references to any Article, Section or subdivision
thereof are references to an Article, Section or other subdivision of this Supplemental Indenture
and (ii) capitalized terms not otherwise defined herein shall have the meanings set forth in the
Indenture and the following terms used in this Supplemental Indenture have the following respective
meanings:

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     “APM Commencement Date” means, with respect to any Deferral Period, the earlier of (i)
the first Interest Payment Date following the commencement of such Deferral Period on which the
Company pays any current interest on the Subordinated Debentures and (ii) the fifth anniversary of
the commencement of such Deferral Period.

     “APM Period” means, with respect to any Deferral Period, the period commencing on the
APM Commencement Date and ending on the next Interest Payment Date on which the Company has raised
an amount of Eligible Proceeds at least equal to the aggregate amount of accrued and unpaid
deferred interest, including Additional Interest, on the Subordinated Debentures (other than any
interest cancelled pursuant to Section 2.1(i)).

     “Bankruptcy Event” means any of the events set forth in Section 5.1(4) or (5) of the
Indenture.

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

     “Capital Securities” has the meaning set forth in the Trust Agreement.

     “Current Stock Market Price” of the Common Stock on any date shall mean (i) the
closing sale price per share (or if no closing sale price is reported, the average of the bid and
ask prices or, if more than one in either case, the average of the average bid and the average ask
prices) on that date as reported in composite transactions by the New York Stock Exchange or, if
the Common Stock is not then listed on the New York Stock Exchange, as reported by the principal
U.S. securities exchange or The Nasdaq National Market on which the Common Stock is traded or
quoted, (ii) if the Common Stock is not either listed on any U.S. securities exchange or quoted on
The Nasdaq National Market on the relevant date, the last quoted bid price for the Common Stock in
the over-the-counter market on the relevant date as reported by the National Quotation Bureau or
similar organization, or (iii) if the Common Stock is not so quoted, the average of the mid-point
of the last bid and ask prices for the Common Stock on the relevant date from each of at least
three nationally recognized independent investment banking firms selected by the Company for this
purpose.

     “Deferral Period” means each period beginning on an Interest Payment Date with respect
to which the Company elects pursuant to Section 2.1(g) to defer all or part of any interest payment
and ending on the earlier of (i) the tenth anniversary of such Interest Payment Date and (ii) the
next Interest Payment Date on which the Company has paid the deferred amount, all deferred amounts
with respect to any subsequent period and all other accrued interest on the Subordinated
Debentures.

     “Eligible Proceeds” means, with respect to any Interest Payment Date, the net proceeds
(after underwriters’ or placement agents’ fees, commissions or discounts and other expenses
relating to the issuance or sale) the Company has received during the 180-day period prior to such
Interest Payment Date from the issuance or sale of Qualifying Warrants or Preferred Stock up to the
Preferred Stock Issuance Cap to Persons that are not Subsidiaries.

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     “Final Repayment Date” has the meaning set forth in Section 2.1(d)(iii).

     “Interest Payment Date” means a Monthly Interest Payment Date or a Quarterly Interest
Payment Date, as the case may be.

     “Interest Period” means the period from and including any Interest Payment Date (or,
in the case of the first Interest Payment Date, November 8, 2006) to but excluding the next
Interest Payment Date.

     “Market Disruption Event” means the occurrence or existence of any of the following
events or sets of circumstances:

     (a) trading in securities generally on the New York Stock Exchange or any other national
securities exchange or over-the-counter market on which the Common Stock and/or preferred stock of
the Company is then listed or traded shall have been suspended or its settlement generally shall
have been materially disrupted;

     (b) the Company would be required to obtain the consent or approval of its shareholders or a
regulatory body (including, without limitation, any securities exchange) or governmental authority
to issue Qualifying Warrants or Preferred Stock pursuant to Section 2.1(j) or to issue Qualifying
Capital Securities pursuant to Section 2.1(d), as the case may be, and the Company fails to obtain
such consent or approval notwithstanding its commercially reasonable efforts to obtain such consent
or approval (including, without limitation, failing to obtain approval for such issuance if
required from the Federal Reserve after having given notice to the Federal Reserve as required
under Section 2.1(j)); or

     (c) an event occurs and is continuing as a result of which the offering document for the offer
and sale of Qualifying Warrants or Preferred Stock or Qualifying Capital Securities, as the case
may be, would, in the Company’s reasonable judgment, contain an untrue statement of a material fact
or omit to state a material fact required to be stated in such offering document or necessary to
make the statements in such offering document not misleading and either (i) the disclosure of such
event, in the Company’s reasonable judgment, would have a material adverse effect on its business
or (ii) the disclosure relates to a previously undisclosed proposed or pending material business
transaction, the disclosure of which would impede the Company’s ability to consummate such
transaction; provided that one or more events described in this clause (c) shall not constitute a
Market Disruption Event (A) with respect to more than two Quarterly Interest Payment Dates (or
after the Scheduled Maturity, six consecutive Monthly Interest Payment Dates) in any APM Period
with respect to the Company’s obligations pursuant to Section 2.1(j) or (B) with respect to more
than six Monthly Interest Payment Dates (whether or not consecutive) in connection with the
Company’s obligations pursuant to Section 2.1(d).

     “Monthly Interest Payment Date” has the meaning set forth in Section 2.1(e).

     “Preferred Stock” means non-cumulative perpetual preferred stock of the Company.

     “Preferred Stock Issuance Cap” has the meaning set forth in Section 2.1(j)(1).

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     “Qualifying Capital Securities” has the meaning set forth in the Replacement Capital
Covenant.

     “Qualifying Warrants” means net share settled warrants to purchase Common Stock that
(i) have an exercise price per share greater than the Current Stock Market Price as of the date of
issuance thereof and (ii) the Company is not entitled to redeem for cash and the holders of which
are not entitled to require the Company to repurchase for cash in any circumstances.

     “Quarterly Interest Payment Date” has the meaning set forth in Section 2.1(e).

     “Repayment Date” means the Scheduled Maturity Date and each Monthly Interest Payment
Date thereafter until the Company shall have repaid or redeemed all of the Subordinated Debentures.

     “Replacement Capital Covenant” means the Replacement Capital Covenant, dated as of
November 8, 2006, of the Company, as the same may be amended or supplemented from time to time in
accordance with the provisions thereof.

     “Scheduled Maturity Date” has the meaning set forth in Section 2.1(d).

     “Senior Debt” has the meaning set forth in Section 2.1(q).

     “Trust” has the meaning set forth in Section 2.1(a).

     “Trust Agreement” has the meaning set forth in Section 2.1(a).

     “Warrant Issuance Cap” has the meaning set forth in Section 2.1(j)(1).

ARTICLE II

TERMS OF SERIES OF SECURITIES

     2.1. Pursuant to Section 3.1 of the Indenture, there is hereby established a series of
Securities, the terms of which shall be as follows:

     (a) Designation. The Securities of this series shall be known and designated as the
“7% Junior Subordinated Debentures due 2066” of the Company (the “Subordinated
Debentures”). The Subordinated Debentures initially shall be issued to Countrywide Capital V, a
Delaware statutory trust (the “Trust”). The Trust Agreement for the Trust shall be the
Amended and Restated Trust Agreement, dated as of November 8, 2006, among the Company, as
Depositor, The Bank of New York, as Property Trustee, The Bank of New York (Delaware), as Delaware
Trustee, and the Administrative Trustees named therein, as may be amended in accordance with its
terms (the “Trust Agreement”). The Guarantee will be issued pursuant to the Guarantee
Agreement, dated as of November 8, 2006, between the Company and The Bank of New York, as Guarantee
Trustee, as may be amended in accordance with its terms.

     (b) Aggregate Principal Amount. The maximum aggregate principal amount of the
Subordinated Debentures which may be authenticated and delivered under the Indenture and this

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Supplemental Indenture is $1,496,000,000 (except for Subordinated Debentures authenticated and
delivered upon registration of transfer of, or exchange for, or in lieu of, other Subordinated
Debentures pursuant to Section 3.4, 3.5, 3.6, 9.6 or 11.6 of the Indenture and except for any
Subordinated Debentures which, pursuant to the last paragraph of Section 3.3 of the Indenture, are
deemed never to have been authenticated or delivered thereunder); provided, however, that the
authorized aggregate principal amount of the Subordinated Debentures may be increased above such
amount by a Board Resolution to such effect.

     (c) Denominations. The Subordinated Debentures will be issued only in fully
registered form, without coupons, and the authorized denominations of the Subordinated Debentures
shall be $25 principal amount and any integral multiple thereof.

     (d) Scheduled Maturity Date. (i) The principal amount of, and all accrued and unpaid
interest on, the Subordinated Debentures shall be payable in full on November 1, 2036, or if such
day is not a Business Day, the following Business Day (the “Scheduled Maturity Date”);
provided that in the event the Company has delivered an Officers’ Certificate to the Trustee
pursuant to clause (vii) of this Section 2.1(d) in connection with the Scheduled Maturity Date, (A)
the principal amount of Subordinated Debentures payable on the Scheduled Maturity Date, if any,
shall be the principal amount set forth in the notice of repayment accompanying such Officers’
Certificate, (B) such principal amount of Subordinated Debentures shall be repaid on the Scheduled
Maturity Date pursuant to Article III hereof, and (C) subject to clause (ii) of this Section
2.1(d), the remaining Subordinated Debentures shall remain outstanding and shall be payable on the
immediately succeeding Monthly Interest Payment Date or such earlier date on which they are
redeemed pursuant to Section 2.1(l) or shall become due and payable pursuant to Section 5.2 of the
Indenture.

     (ii) In the event the Company has delivered an Officers’ Certificate to the Trustee pursuant
to clause (vii) of this Section 2.1(d) in connection with any Monthly Interest Payment Date, (A)
the principal amount of Subordinated Debentures payable on such Monthly Interest Payment Date shall
be the principal amount set forth in the notice of repayment, if any, accompanying such Officers’
Certificate, (B) such Subordinated Debentures shall be repaid on such Monthly Interest Payment Date
pursuant to Article III, and (C) the remaining Subordinated Debentures shall remain outstanding and
shall be payable on the immediately succeeding Monthly Interest Payment Date or such earlier date
on which it shall become due and payable pursuant to Section 5.2 of the Indenture.

     (iii) The principal of, and all accrued and unpaid interest on, all outstanding Subordinated
Debentures shall be due and payable on November 1, 2066, or if such day is not a Business Day, the
following Business Day (the “Final Repayment Date”).

     (iv) The obligation of the Company to repay the Subordinated Debentures pursuant to this
Section 2.1(d) on any date prior to the Final Repayment Date shall be subject to (A) its
obligations under Article XIII of the Indenture to the holders of Senior Debt, (B) its obligations
under Section 2.1(h) with respect to the payment of deferred interest on the Subordinated
Debentures and (C) the Replacement Capital Covenant.

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     (v) Until the Subordinated Debentures are paid in full, the Company shall use “commercially
reasonable efforts” (as defined in clause (vi) below) subject to a Market Disruption Event:

     (A) to raise sufficient net proceeds from the issuance of Qualifying Capital
Securities during a 180-day period ending on the date, not more than 15 and not less
than 10 Business Days prior to the Scheduled Maturity Date, on which the Company
delivers the notice required by Section 3.1, to permit repayment of the Subordinated
Debentures in full on the Scheduled Maturity Date pursuant to clause (i) of this
Section 2.1(d) and in accordance with the Replacement Capital Covenant; and

     (B) if the Company is unable for any reason to raise sufficient proceeds from
the issuance of Qualifying Capital Securities to permit payment in full on the
Scheduled Maturity Date or any subsequent Monthly Interest Payment Date, during a
30-day period ending not more than 15 and not less than 10 Business Days prior to
each Monthly Interest Payment Date, on which the Company delivers the notice
required by Section 3.1, to raise sufficient net proceeds from the issuance of
Qualifying Capital Securities to permit repayment of the Subordinated Debentures in
full on such date pursuant to clause (ii) of this Section 2.1(d) and in accordance
with the Replacement Capital Covenant; and

the Company shall apply any such net proceeds to the repayment of the Subordinated Debentures as
provided in clause (viii) of this Section 2.1(d).

     (vi) For purposes of this Section 2.1(d), “commercially reasonable efforts” to sell
Qualifying Capital Securities means commercially reasonable efforts to complete the offer and sale
of Qualifying Capital Securities to Persons other than Subsidiaries in public offerings or private
placements. The Company shall not be considered to have made commercially reasonable efforts to
effect a sale of Qualifying Capital Securities if it determines not to pursue or complete such sale
due to pricing, coupon, dividend rate or dilution considerations.

     (vii) The Company shall, if it has not raised sufficient net proceeds from the issuance of
Qualifying Capital Securities pursuant to clause (v) above in connection with any Repayment Date,
deliver an Officers’ Certificate to the Trust (which the Property Trustee shall forward to each
holder of record of Capital Securities) not more than 15 and not less than 10 Business Days in
advance of such Repayment Date stating the amount of net proceeds, if any, raised pursuant to
clause (v) above in connection with such Repayment Date. The Company shall be excused from its
obligation to use commercially reasonable efforts to sell Qualifying Capital Securities pursuant to
clause (v) above if such Officers’ Certificate further certifies that: (A) a Market Disruption
Event was existing during the 180-day period preceding the date of such Officers’ Certificate or,
in the case of any Repayment Date after the Scheduled Maturity Date, the 30-day period preceding
the date of such Officers’ Certificate; and (B) either (1) the Market Disruption Event continued
for the entire 180-day period or 30-day period, as the case may be, or (2) the Market Disruption
Event continued for only part of the period, but the Company was unable after commercially
reasonable efforts to raise sufficient net proceeds during the rest of that period to permit
repayment of the Subordinated Debentures in full. Each Officers’ Certificate delivered

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pursuant to this clause (vii), unless no principal amount of Subordinated Debentures is to be
repaid on the applicable Repayment Date, shall be accompanied by a notice of repayment pursuant to
Section 3.1 setting forth the principal amount of the Subordinated Debentures to be repaid on such
Repayment Date, which amount shall be determined after giving effect to clause (viii) of this
Section 2.1(d).

     (viii) Net proceeds of the issuance of any Qualifying Capital Securities that the Company is
permitted to apply to repayment of the Subordinated Debentures on any Repayment Date will be
applied, first, to pay deferred interest to the extent of Eligible Proceeds raised pursuant
to Section 2.1(j) and not previously applied, second, to pay current interest to the extent
not paid from other sources and, third, to repay the principal of Subordinated Debentures,
subject to a minimum principal amount of $5 million to be repaid on any Repayment Date; provided
that if the Company is obligated to sell Qualifying Capital Securities and apply the net proceeds
to payments of principal of or interest on any outstanding securities in addition to the
Subordinated Debentures, then on any date and for any period the amount of net proceeds received by
the Company from those sales and available for such payments shall be applied to the Subordinated
Debentures and those other securities having the same scheduled maturity date as the Subordinated
Debentures pro rata in accordance with their respective outstanding principal amounts and none of
such net proceeds shall be applied to any other securities having a later scheduled maturity date
until the principal of and all accrued and unpaid interest on the Subordinated Debentures has been
paid in full.

     (e) Rate of Interest. The Subordinated Debentures shall bear interest from and
including November 8, 2006 to but excluding the Scheduled Maturity Date at the rate of 7% per
annum, computed on the basis of a 360-day year comprised of twelve 30-day months. Subject to
Sections 2.1(g), (h) and (i), interest on the Subordinated Debentures shall be payable (i)
quarterly in arrears on February 1, May 1, August 1 and November 1 of each year, commencing on
February 1, 2007, until the Scheduled Maturity Date (each such date, a “Quarterly Interest
Payment Date”) and (ii) thereafter, on the first day of each month, or if such day is not a
Business Day, the following Business Day (and without any interest or other payment in respect of
any such delay) with the same force and effect as if made on such date (each such date, a
“Monthly Interest Payment Date”), in arrears, commencing on December 1, 2036. Any
installment of interest (or portion thereof) deferred in accordance with Section 2.1(g) or
otherwise unpaid shall bear interest, to the extent permitted by law, at the rate of interest then
in effect on the Subordinated Debentures, from the relevant Interest Payment Date, compounded on
each subsequent Interest Payment Date, until paid in accordance with Section 2.1(h) or cancelled in
accordance with Section 2.1(i).

     (f) To Whom Interest Payable. Interest shall be payable to the Person in whose name
the Subordinated Debentures are registered at the close of business on the Regular Record Date next
preceding the Interest Payment Date, except that (i) interest payable on any Subordinated
Debentures pursuant to their repayment in full in accordance with Article III and (ii) interest
payable on the Final Repayment Date shall be paid to the Person to whom principal is paid.

     (g) Option to Defer Interest Payments. Solely for the purposes of the Subordinated
Debentures, the first paragraph of Section 3.11 of the Indenture shall be replaced by the
following: (i) The Company shall have the right, at any time and from time to time prior to the

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Final Repayment Date to defer the payment of interest on the Subordinated Debentures for one
or more consecutive Interest Periods that do not exceed 10 years; provided that no Deferral Period
shall extend beyond the Final Repayment Date or the earlier repayment or redemption in full of the
Subordinated Debentures; provided, further, that if the Company has given notice of its election to
defer interest payments but the Deferral Period has not yet commenced or a Deferral Period is
continuing, or there has occurred any event which the Company has actual knowledge that with the
giving of notice or lapse of time, would become an Event of Default and which the Company has not
take reasonable steps to cure or the Company is in default regarding its payment of any obligation
under the Guarantee, the Company shall not, and shall not permit any Subsidiary, to: (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, (B) other than any repayment of the
Subordinated Debentures pursuant to Section 2.1(d) and, except for any partial payments of deferred
interest that may be made pursuant to Section 2.1(h), make any payment of principal of, or interest
or premium, if any, on, or repay, repurchase or redeem any of the Company’s debt securities that
rank equally with or junior to the Subordinated Debentures or (C) make any guarantee payments with
respect to any guarantee by the Company of the debt securities of any subsidiary if such guarantee
ranks equally with or junior in interest to the Subordinated Debentures (other than (a) dividends
or distributions in the Company’s capital stock, (b) any declaration of a dividend in connection
with the implementation of a Rights Plan or the redemption or repurchase of any rights distributed
pursuant to a Rights Plan, (c) payments under the Guarantee with respect to the Preferred
Securities issued by the Trust, (d) purchases of Common Stock related to the issuance of Common
Stock or rights under any of the Company’s benefit plans for its directors, officers or employees,
related to the issuance of Common Stock or rights under a dividend reinvestment and stock purchase
plan, or related to the issuance of Common Stock (or securities convertible or exchangeable for
Common Stock) as consideration in an acquisition transaction that was entered into prior to the
commencement of the Deferral Period or (e) the purchase of the Company’s capital stock, debt
securities or other securities by any broker-dealer subsidiary of the Company in connection with
its market-making or other secondary market activities). No Deferral Period shall end on a date
other than an Interest Payment Date or the Final Repayment Date.

     (ii) At the end of any Deferral Period, the Company shall pay all deferred interest on the
Subordinated Debentures that has not been cancelled pursuant to Section 2.1(i) (together with
Additional Interest thereon, if any, at the rate specified for the Subordinated Debentures) to the
extent permitted by applicable law, to the Persons in whose names that Securities are registered at
the close of business on the Regular Record Date with respect to the Interest Payment Date at the
end of such Deferral Period.

     (iii) Subject to Section 2.1(r), in the case of any Deferral Period that does not terminate on
or prior to the first anniversary of the commencement of such Deferral Period, the restrictions set
forth in clause (i) above shall continue in effect in respect of any redemption, purchase or
repurchase of securities that rank equally with or junior to the Subordinated Debentures until the
first anniversary of the termination of such Deferral Period.

     (iv) Upon termination of any Deferral Period and upon the payment of all deferred interest and
any Additional Interest then due on any Interest Payment Date that has not been cancelled pursuant
to Section 2.1(i), the Company may elect to begin a new Deferral Period

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pursuant to clause (i) of this Section 2.1(g). No interest shall be due and payable for any
Deferral Period except at the end thereof.

     (v) The Company may elect to pay interest on any Interest Payment Date during any Deferral
Period to the extent permitted by Section 2.1(h).

     (vi) The Company shall give written notice of its election to begin or extend any Deferral
Period (i) if the Property Trustee is not the sole holder or a holder of the Subordinated
Debentures, to the Holders of the Subordinated Debentures and the Trustee at least one Business Day
prior to the Regular Record Date for the next succeeding Interest Payment Date or (ii) if the
Property Trustee is the sole holder of the Subordinated Debentures, at least one Business Day prior
to the earlier of (a) the next Distribution Date (as defined in the Trust Agreement) or (b) the
date the Administrative Trustees are required to give notice to any securities exchange or other
applicable self-regulatory organization or to holders of the Capital Securities of the record date
for such Distribution Date or of such Distribution Date, but in any event not less than one
Business Day prior to such record date.

     (h) Payment of Deferred Interest. The Company will not pay deferred interest on the
Subordinated Debentures (and any Additional Interest thereon) on any Interest Payment Date during
any Deferral Period from any source other than Eligible Proceeds. Notwithstanding the foregoing,
(i) the Company may pay current interest during a Deferral Period from any available funds and (ii)
if the Federal Reserve disapproves of the Company’s sale of Qualifying Warrants or Preferred Stock,
the Company may pay deferred interest on the Subordinated Debentures from any source and if the
Federal Reserve disapproves of the use of proceeds of the Company’s sale of Qualifying Warrants or
Preferred Stock to pay deferred interest on the Subordinated Debentures, the Company may use the
proceeds for other purposes and continue to defer interest on the Subordinated Debentures. To the
extent that the Company applies proceeds from the sale of Qualifying Warrants and Preferred Stock
to pay interest on the Subordinated Debentures, such proceeds shall be allocated first to deferred
payments of interest (including Additional Interest thereon) in chronological order based on the
date each payment was first deferred with payments being allocated first to payments with the
earliest deferral date; provided that no such proceeds will be applied to deferred interest
payments (including Additional Interest thereon) attributable to the first five years of any
Deferral Period to the extent such proceeds exceed the amounts described in clause (1)(i) of
Section 2.1(j) until all other deferred interest payments (and Additional Interest thereon) with
respect to such Deferral Period have been paid in full. The payment of interest from any other
source shall be applied to current or deferred interest as directed by the Company and notified to
the Trustee prior to the applicable Interest Payment Date. To the extent any payment allocable to
any installment of interest (including Additional Interest thereon) is insufficient to pay such
installment in full, such payment shall be applied pro rata to the outstanding Subordinated
Debentures. If the Company has outstanding securities in addition to and that rank equally with
the Subordinated Debentures under which it is obligated to sell Qualifying Warrants or Preferred
Stock and apply the net proceeds to the payment of deferred interest, then on any date and for any
period the amount of net proceeds received by the Company from those sales and available for
payment of the deferred interest shall be applied to the Subordinated Debentures and those other
securities on a pro rata basis in proportion to the total amounts that are due on the Subordinated
Debentures and such other securities, or on such other basis as the Federal Reserve may approve.

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     (i) Cancellation of Deferred Interest. At the expiration of any Deferral Period that
continues for 10 years, if (i) no Event of Default is continuing, (ii) the Company has not, due to
clause (1) of Section 2.1(j), raised sufficient proceeds from the sale of Qualifying Warrants and
Preferred Stock to pay all deferred interest (and Additional Interest thereon) attributable to the
portion of the Deferral Period prior to the APM Commencement Date and (iii) the Company has not
previously cancelled interest pursuant to this Section 2.1(i), the obligation of the Company to pay
any such deferred and unpaid interest (including Additional Amounts thereon) shall be cancelled.

     (j) Alternative Payment Mechanism. Immediately following any APM Commencement Date
and until the termination of the related Deferral Period, the Company shall, unless after notice to
the Federal Reserve and except to the extent that the Federal Reserve shall have disapproved, issue
Qualifying Warrants or Preferred Stock that is subject to a replacement capital covenant similar to
the Replacement Capital Covenant until the Company has raised an amount of Eligible Proceeds at
least equal to the aggregate accrued and unpaid amount of deferred interest on the Subordinated
Debentures (including Additional Interest thereon) and applied such Eligible Proceeds on the next
Interest Payment Date to the payment of deferred interest (including Additional Interest thereon)
in accordance with Section 2.1(h); provided that:

     (1) the foregoing obligations shall not apply to the extent that (i) with respect to
deferred interest (including Additional Interest thereon) attributable to the first five
years of any Deferral Period, the net proceeds of any issuance of Qualifying Warrants
applied to pay interest on the Subordinated Debentures pursuant to this Section 2.1(j),
together with the net proceeds of all prior issuances of Qualifying Warrants applied to
deferred interest attributable to the first five years of any Deferral Period (including
Additional Interest thereon), would exceed an amount equal to 2% of the product of the
average of the Current Stock Market Prices of the Common Stock on the 10 consecutive trading
days ending on the fourth trading day immediately preceding the date of issuance multiplied
by the total number of issued and outstanding shares of Common Stock as of the date of the
Company’s most recent publicly available consolidated financial statements (the “Warrant
Issuance Cap”) or (ii) the net proceeds of any issuance of Preferred Stock so applied to
pay interest on the Subordinated Debentures pursuant to this Section 2.1(j), together with
the net proceeds of all prior issuances of Preferred Stock so applied, would exceed 25% of
the aggregate principal amount of the Subordinated Debentures (the “Preferred Stock
Issuance Cap”).

     (2) the foregoing obligations shall not apply in respect of any Interest Payment Date
if the Company shall have provided to the Trustee (and to the Property Trustee of the Trust
to the extent it is the sole Holder of the Subordinated Debentures) no more than 15 and no
less than 10 Business Days prior to such Interest Payment Date an Officers’ Certificate
stating that (i) a Market Disruption Event was existing after the immediately preceding
Interest Payment Date and (ii) either (A) the Market Disruption Event continued for the
entire period from the Business Day immediately following the preceding Interest Payment
Date to the Business Day immediately preceding the date on which such Officers’ Certificate
is provided or (B) the Market Disruption Event continued for only part of such period but
the Company was unable after commercially

10

 

reasonable efforts to raise sufficient Eligible Proceeds during the rest of that period
to pay all accrued and unpaid interest due on the Interest Payment Date with respect to
which such Officers’ Certificate is being delivered; and

     (3) to the extent that the Company has raised some but not all Eligible Proceeds
necessary to pay all deferred interest (including Additional Interest thereon) on any
Interest Payment Date pursuant to this Section 2.1(j) and subject to the Warrant Issuance
Cap and the Preferred Stock Issuance Cap, such Eligible Proceeds shall be applied in
accordance with Section 2.1(h).

For the avoidance of doubt, once the Company reaches the Warrant Issuance Cap, the Company shall
not be required to issue more Qualifying Warrants with respect to deferred interest attributable to
the first five years of any Deferral Period (including Additional Interest thereon) pursuant to
Section 2.1(j) even if the amount referred to in clause (1)(i) of this Section 2.1(j) subsequently
increases because of a subsequent increase in the sale price of Common Stock or the number of
outstanding shares of Common Stock. The Company shall not be excused from its obligations under
this Section 2.1(j) if it determines not to pursue or complete the sale of Qualifying Warrants or
Preferred Stock due to pricing, dividend rate or dilution considerations.

     (k) Section 3.14 of the Indenture shall not be applicable to the Subordinated Debentures.

     (l) Redemption. Solely for the purposes of the Subordinated Debentures, Section 11.7
of the Indenture shall be replaced by the following:

“The Subordinated Debentures are redeemable (a) in whole or in part, at the option of the Company
at any time, and from time to time, on and after November 1, 2011 at a Redemption Price equal to
100% of the principal amount of such Subordinated Debentures plus accrued and unpaid interest to
the Redemption Date or (b) in whole but not in part, at any time within 90 days after the
occurrence of a Tax Event, Capital Treatment Event or an Investment Company Act Event, at a
Redemption Price equal to 100% of the principal amount of the Subordinated Debentures, in each case
plus accrued and unpaid interest to the Redemption Date. In the event that any date on which any
Redemption Price is payable is not a Business Day, then payment of the Redemption Price payable on
such date shall be made on the next succeeding day that is a Business Day (and without any interest
or other payment in respect of any such delay), 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.”

     (m) Replacement Capital Covenant. The Company shall not modify the Replacement
Capital Covenant to impose additional restrictions on the type or amount of Qualifying Capital
Securities for purposes of determining the extent to which repayment, redemption or repurchase of
the Subordinated Debentures or Capital Securities is permitted, except with the consent of the
holders of a majority by liquidation amount of the Capital Securities or, if the Subordinated
Debentures have been distributed by the Trust, the Holders of a majority by principal amount of the
Subordinated Debentures. Except as aforesaid, the Company may modify the Replacement Capital
Covenant without the consent of the Holders of the Subordinated Debentures.

11

 

     (n) Limitation on Claims in the Event of Bankruptcy, Insolvency or Receivership. Each
Holder, by such Holder’s acceptance of the Subordinated Debentures, agrees that if a Bankruptcy
Event shall occur prior to the redemption or repayment of such Subordinated Debentures, such Holder
shall have no claim for, and thus no right to receive, any interest deferred pursuant to Section
2.1(g) (including Additional Interest thereon) that has not been settled pursuant to the
application of Section 2.1(h) to the extent the amount of such unpaid interest exceeds two years of
accumulated and unpaid interest (including Additional Interest for such two-year period) on such
Holder’s Subordinated Debentures.

     (o) Sinking Fund. The Subordinated Debentures shall not be subject to any sinking
fund or similar provisions.

     (p) Forms. The Subordinated Debentures shall be substantially in the form of Annex A
attached hereto, with such modifications thereto as may be approved by the authorized officer
executing the same.

     (q) Subordination. The subordination provisions of Article XIII of the Indenture
shall apply; provided that for the purposes of the Subordinated Debentures (but not for the
purposes of any other Securities unless specifically set forth in the terms of such Securities),
“Senior Debt” shall mean the principal of (and premium, if any) and interest, if any
(including interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company whether or not such claim for post-petition interest is
allowed in such proceeding), on Debt of the Company (including any Securities other than the
Subordinated Debentures and any guarantee of any Preferred Securities other than the Capital
Securities), whether created, assumed or incurred on or prior to or after the date hereof, unless,
in the instrument creating or evidencing the same or pursuant which the same is outstanding, it is
provided that such obligations are not superior in right of payment to the Subordinated Debentures
or to other Debt which ranks equally with, or subordinated to, the Subordinated Debentures.

     (r) Business Combinations. If the Company engages in any transaction that is subject
to Section 8.1 of the Indenture, where immediately after the consummation of such transaction more
than 50% of the voting stock of the Person formed by such transaction, or the Person that is the
surviving entity of such transaction, or the Person to whom such properties and assets are
conveyed, transferred or leased in such transaction, is owned by the shareholders of the other
party to such transaction, then Sections 2.1(h) and (j) shall not apply to any interest on the
Subordinated Debentures that is deferred and unpaid as of the date of consummation of the business
combination and with respect to any Deferral Period that is terminated on the next Interest Payment
Date following the date of consummation of such transaction, clause (iii) of Section 2.1(g) shall
not apply

     (s) Event of Default. For purposes of the Subordinated Debentures, Section 5.1(2) of
the Indenture is deleted in its entirety and replaced with the following:

     “default in the payment in full of interest upon any Security of that series, including
any Additional Interest in respect thereof but not including interest cancelled pursuant to
the terms of such Security, if any, for a period of 30 days after the conclusion of a
Deferral Period that continues for 10 years; or”.

12

 

ARTICLE III

REPAYMENT OF THE DEBENTURES

     3.1. Repayment. The Company shall, not more than 15 nor less than 10 Business Days
prior to each Repayment Date (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee of the principal amount of Subordinated Debentures to be repaid on such date pursuant
to Section 2.1(d).

     3.2. Selection of Securities to be Repaid. If less than all the Subordinated
Debentures are to be repaid on any Repayment Date (unless such repayment affects only a single
Subordinated Debenture), the particular Subordinated Debentures to be repaid shall be selected not
more than 60 days prior to such Repayment Date by the Trustee, from the Outstanding Subordinated
Debentures not previously repaid or called for redemption, by lot or such other method as the
Trustee shall deem fair and appropriate and which may provide for the selection for redemption of a
portion of the principal amount of any Subordinated Debenture, provided that the portion of the
principal amount of any Subordinated Debenture not repaid shall be in an authorized denomination
(which shall not be less than the minimum authorized denomination) for such Subordinated Debenture.

     The Trustee shall promptly notify the Company in writing of the Subordinated Debentures
selected for partial repayment and the principal amount thereof to be repaid. For all purposes
hereof, unless the context otherwise requires, all provisions relating to the repayment of
Subordinated Debentures shall relate, in the case of any Subordinated Debenture repaid or to be
repaid only in part, to the portion of the principal amount of such Subordinated Debenture which
has been or is to be repaid. If the Company shall so direct, Subordinated Debentures registered in
the name of the Company, any Affiliate or any Subsidiary thereof (other than the Trust) shall not
be included in the Subordinated Debentures selected for repayment.

     3.3. Notice of Repayment. Notice of repayment shall be given by first-class mail,
postage prepaid, mailed not earlier than the 15th day, and not later than the 10th day, prior to
the Repayment Date, to each Holder of Securities to be repaid, at the address of such Holder as it
appears in the Securities Register.

     Each notice of repayment shall identify the Subordinated Debentures to be repaid (including
CUSIP number, if a CUSIP number has been assigned to the Subordinated Debentures) and shall state:

     (a) the Repayment Date;

     (b) if less than all Outstanding Subordinated Debentures are to be repaid, the identification
(and, in the case of partial repayment, the respective principal amounts) of the particular
Subordinated Debentures to be redeemed;

     (d) that on the Repayment Date, the principal amount of the Subordinated Debentures to be
repaid will become due and payable upon each such Subordinated Debenture or portion thereof, and
that interest thereon, if any, shall cease to accrue on and after said date; and

13

 

     (e) the place or places where such Subordinated Debentures are to be surrendered for payment
of the principal amount thereof.

     Notice of repayment shall be given by the Company or, at the Company’s request, by the Trustee
in the name and at the expense of the Company and shall be irrevocable. The notice if mailed in
the manner herein provided shall be conclusively presumed to have been duly given, whether or not
the Holder receives such notice. In any case, a failure to give such notice by mail or any defect
in the notice to the Holder of any Subordinated Debenture designated for repayment as a whole or in
part shall not affect the validity of the proceedings for the repayment of any other Subordinated
Debenture.

     3.4. Deposit of Repayment Amount. Prior to 10:00 a.m. New York City time on the
Repayment Date specified in the notice of repayment given as provided in Section 3.3, the Company
will deposit with the Trustee or with one or more Paying Agents (or if the Company is acting as its
own Paying Agent, the Company will segregate and hold in trust as provided in Section 10.3 of the
Indenture) an amount of money sufficient to pay the principal amount of, and any accrued interest
(including Additional Interest) on, all the Subordinated Debentures which are to be repaid on that
date.

     3.5. Payment of Subordinated Debentures Called for Redemption. If any notice of
repayment has been given as provided in Section 3.3, the Subordinated Debentures or portion of the
Subordinated Debentures with respect to which such notice has been given shall become due and
payable on the date and at the place or places stated in such notice. On presentation and
surrender of such Subordinated Debentures at a Place of Payment in said notice specified, the said
securities or the specified portions thereof shall be paid by the Company at their principal
amount, together with accrued interest (including any Additional Interest) to the Repayment Date;
provided, that installments of interest whose Stated Maturity is on or prior to the Repayment Date
will be payable to the Holders of such Subordinated Debentures, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record Dates according to
their terms and the provisions of Section 3.7 of the Indenture.

     Upon presentation of any Subordinated Debenture repaid 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 Subordinated Debenture or Subordinated Debentures, of authorized
denominations, in aggregate principal amount equal to the portion of the Subordinated Debenture not
repaid and so presented and having the same Original Issue Date, Stated Maturity and terms. If a
Global Security is so surrendered, such new Security will also be a new Global Security.

     If any Subordinated Debenture called for repayment shall not be so paid upon surrender
thereof, the principal of such Subordinated Debenture shall, until paid, bear interest from the
Repayment Date at the rate prescribed therefore in the Subordinated Debenture.

14

 

ARTICLE IV

MISCELLANEOUS

     4.1. If any provision of this Supplemental Indenture limits, qualifies or conflicts with the
duties imposed by any of Sections 310 to 317, inclusive, of the Trust Indenture Act of 1939 through
operation of Section 318(c) thereof, such imposed duties shall control.

     4.2. The Article headings herein are for convenience only and shall not affect the
construction hereof.

     4.3. All covenants and agreements in this Supplemental Indenture by the Company shall bind its
successors and assigns, whether so expressed or not.

     4.4. In case any provision of this Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     4.5. Nothing in this Supplemental Indenture is intended to or shall provide any rights to any
parties other than those expressly contemplated by this Supplemental Indenture.

     4.6. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

     4.7. The Trustee makes no representations as to the validity or sufficiency of this
Supplemental Indenture. The recitals and statements herein are deemed to be those of the Company
and not of the Trustee.

* * * *

15

 

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

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

	 	 	 	 	 
	 	COUNTRYWIDE FINANCIAL CORPORATION

 	 
	 	By:  	/s/
Jennifer S. Sandefur
 	 
	 	 	Name:  	Jennifer S. Sandefur 	 
	 	 	Title:  	Senior Managing Director and Treasurer 	 
	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By:  	/s/
Stacey B. Poindexter 	 
	 	 	Name:  	Stacey B. Poindexter 	 
	 	 	Title:  	Assistant Vice President 	 

16

 

	 	 	 	 	 

Annex A – Form of Subordinated Debenture

A-1exv4w30

 

EXHIBIT 4.30

COUNTRYWIDE FINANCIAL CORPORATION

7% JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES

			
	 	 	 
	No.
	 	$                    

     COUNTRYWIDE FINANCIAL CORPORATION, a corporation organized and existing under the laws of the
state of Delaware (hereinafter called the “Company,” which term includes any successor corporation
under the Indenture hereinafter referred to), for value received, hereby promises to pay to
Countrywide Capital V, or its registered assigns, the principal sum of                     
on November 1, 2036 (the “Scheduled Maturity Date”); provided that such principal amount may be due
and payable at such later date as provided in the Indenture; provided, further, that the principal
amount of, and all accrued and unpaid interest on, this Security shall be payable in full on
November 1, 2066 (the “Final Repayment Date”), in all cases subject to the limitations described in
the Indenture. The Company further promises to pay interest, at the rate of 7% per annum, on said
principal sum from November 8, 2006, or from the most recent interest payment date (each such date,
an “Interest Payment Date”) on which interest has been paid or duly provided for, quarterly
(subject to deferral as set forth in the Indenture) on February 1, May 1, August 1 and November 1
of each year, beginning February 1, 2007, in arrears, until the Scheduled Maturity Date and,
thereafter, on the first day of each month, in arrears, beginning December 1, 2036. Any
installment of interest (or portion thereof) deferred in accordance with the Indenture or otherwise
unpaid shall bear interest, to the extent permitted by law, at the rate of interest then in effect
on this Security, from the relevant Interest Payment Date, compounded on each subsequent Interest
Payment Date, until paid or cancelled in accordance with the Indenture.

     The amount of interest payable for any period shall be computed on the basis of twelve 30-day
months and a 360-day year. In the event that any date on which interest is payable on this
Security is not a Business Day, then a payment of the interest payable on such date shall be made
on the next succeeding day which is a Business Day (and without any interest or other payment in
respect of any such delay) with the same force and effect as if made on such date. A “Business
Day” shall mean any day other than a Saturday, Sunday or other day on which banking institutions in
The City of New York are authorized or required by law or executive order to remain closed, or a
day on which the Corporate Trust Office of the Trustee or the corporate trust office of the
Property Trustee under the Trust Agreement hereinafter referred to for Countrywide Capital V, is
closed for business. Except as otherwise provided in the Indenture, an interest installment so
payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided
in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date next preceding the
Interest Payment Date. Any such interest installment not so punctually paid or duly provided for
shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than

 

 

10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Securities of this series may be listed or traded, and upon such notice as may be
required by such exchange or self-regulatory organization, all as more fully provided in the
Indenture.

     Payment of principal of (and premium, if any) and interest on this Security will be made at
the office or agency of the Company maintained for that purpose in the United States, in such coin
or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that at the option of the Company payment of
interest may be made (i) by check mailed to the address of the Person entitled thereto as such
address shall appear in the Securities Register or (ii) by wire transfer in immediately available
funds at such place and to such account as may be designated in writing at least 15 days before the
relevant Interest Payment Date by the Person entitled thereto as specified in the Securities
Register.

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

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

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

2

 

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

	 	 	 	 	 
	 	COUNTRYWIDE FINANCIAL CORPORATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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

Dated:

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

3

 

	 	 	 	 	 

Reverse of Security.

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under a Junior Subordinated
Indenture, dated as of November 8, 2006, as amended and supplemented by the First Supplemental
Indenture thereto, dated as of November 8, 2006 (collectively referred to herein as, the
“Indenture”), between the Company and The Bank of New York, as Trustee (herein called the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Trustee, the Company and the
Holders of the Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on the face hereof.

     Capitalized terms used in this Security and not otherwise defined herein shall have the
respective meanings set forth in the Indenture, unless such term is used expressly with reference
to the Amended and Restated Trust Agreement, dated as of November 8, 2006, as amended (the “Trust
Agreement”), for Countrywide Capital V, among Countrywide Financial Corporation, as Depositor, and
the Trustees named therein, in which case such term shall have the meaning assigned to it in the
Trust Agreement.

     The Company may at any time and from time to time, at its option, on or after November 1,
2011, and subject to the terms and conditions of Article XI of the Indenture, redeem this Security
in whole or in part, without premium or penalty, at a redemption price equal to 100% of the
principal amount thereof plus accrued and unpaid interest thereon.

     The Company may, at its option, at any time within 90 days of the occurrence of a Tax Event,
Capital Treatment Event or Investment Company Act Event, redeem this Security, in whole but not in
part, subject to the provisions of Section 11.7 and the other provisions of Article XI of the
Indenture, at a redemption price equal to 100% of the principal amount thereof plus accrued and
unpaid interest to the Redemption Date.

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

     The Indenture contains provisions for satisfaction and discharge of the entire indebtedness of
this Security upon compliance by the Company with certain conditions set forth in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the Company and the
Trustee at any time to enter into a supplemental indenture or indentures for the purpose of
modifying in any manner the rights and obligations of the Company and of the Holders of the
Securities, with the consent of the Holders of not less than a

4

 

majority in principal amount of the Outstanding Securities of each series to be affected by
such supplemental indenture. The Indenture also contains provisions permitting Holders of specified
percentages in principal amount of the Outstanding Securities of any series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the
Company with certain provisions of the Indenture and certain past defaults under the Indenture and
their consequences.

     Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon
such Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, if an Event of Default
specified in Section 5.1(2) of the Indenture with respect to the Securities of this series at the
time Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders
of not less than 25% in principal amount of the Outstanding Securities of this series may declare
the principal amount of all the Securities of this series to be due and payable immediately, by a
notice in writing to the Company (and to the Trustee if given by Holders), provided that, in the
case of the Securities of this series issued to a Trust, if upon an Event of Default specified in
Section 5.1(2) of the Indenture, the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Securities of this series fails to declare the principal of all the
Securities of this series to be immediately due and payable, the holders of at least 25% in
aggregate Liquidation Amount (as defined in the Trust Agreement) of the Preferred Securities issued
by such Trust then outstanding shall have such right by a notice in writing to the Company and the
Trustee; and upon any such declaration the principal amount of (or a specified portion thereof) and
the accrued interest (including Additional Interest) on all the Securities of this series shall
become immediately due and payable, provided that the payment of principal and interest on such
Securities shall remain subordinated to the extent provided in Article XIII of the Indenture. If
an Event of Default specified in Section 5.1(4) or 5.1(5) of the Indenture with respect to
Securities of this series at the time Outstanding occurs, the principal amount of all the
Securities of this series shall automatically, and without any declaration or other action on the
part of the Trustee or any Holder, become immediately due and payable. In case of any other Event
of Default, Holders shall have no right to declare the principal amount of the Securities of this
series to be immediately due any payable.

     Each Holder, by such Holder’s acceptance hereof, agrees that if a Bankruptcy Event shall occur
prior to the redemption or repayment of this Security, such Holder shall have no claim for, and
thus no right to receive, any interest deferred pursuant to the Indenture (including Additional
Interest thereon) that has not been paid out of the proceeds of the issuance of certain securities
in accordance with the Indenture to the extent the amount of such interest exceeds two years of
accumulated and unpaid interest (including Additional Interest thereon) on this Security. In
addition, at the expiration of any Deferral Period that continues for 10 years, in certain
circumstances set forth in the Indenture the obligation of the Company to pay deferred interest
(including Additional

5

 

Interest thereon) with respect to certain Interest Payment Dates during such portion of the
Deferral Period shall be permanently cancelled.

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

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Securities Register, upon surrender of this
Security for registration of transfer at the office or agency of the Company maintained under
Section 10.2 of the Indenture duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Securities Registrar duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this
series, of authorized denominations and for the same aggregate principal amount, shall be issued to
the designated transferee or transferees. No service charge shall be made for any such registration
of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for the purpose of receiving payment of principal of and
(subject to Section 3.7 of the Indenture) any interest hereon and for all other purposes
whatsoever, whether or not this Security be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $25 principal amount and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of the same series of any
authorized denomination, as requested by the Holder surrendering the same.

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

THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

6

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