Document:

Exhibit 10.20

 

AMENDED AND RESTATED DECLARATION

OF TRUST

COMMUNITY (CA) CAPITAL TRUST I

Dated as of March 23, 2000

 

TABLE OF
CONTENTS

	
  

  	
   

  	
  Page

  
	
  ARTICLE I

  INTERPRETATION AND DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  SECTION 1.1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  ORGANIZATION

  
	
   

  	
   

  	
   

  
	
  SECTION 2.1

  	
  Name

  	
  9

  
	
  SECTION 2.2

  	
  Office

  	
  9

  
	
  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

  	
  10

  
	
  SECTION 2.7

  	
  Prohibition of Actions by the Trust and the Trustees

  	
  13

  
	
  SECTION 2.8

  	
  Powers and Duties of the Institutional Trustee

  	
  14

  
	
  SECTION 2.9

  	
  Certain Duties and Responsibilities of the Trustees
  and Administrators

  	
  16

  
	
  SECTION 2.10

  	
  Certain Rights of Institutional Trustee

  	
  17

  
	
  SECTION 2.11

  	
  Delaware Trustee

  	
  20

  
	
  SECTION 2.12

  	
  Execution of Documents

  	
  20

  
	
  SECTION 2.13

  	
  Not Responsible for Recitals or Issuance of
  Securities

  	
  20

  
	
  SECTION 2.14

  	
  Duration of Trust

  	
  20

  
	
  SECTION 2.15

  	
  Mergers

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  SPONSOR

  
	
   

  	
   

  	
   

  
	
  SECTION 3.1

  	
  Sponsor’s Purchase of Common Securities

  	
  22

  
	
  SECTION 3.2

  	
  Responsibilities of the Sponsor

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  TRUSTEES AND ADMINISTRATORS

  
	
   

  	
   

  	
   

  
	
  SECTION 4.1

  	
  Number of Trustees

  	
  23

  
	
  SECTION 4.2

  	
  Delaware Trustee

  	
  23

  
	
  SECTION 4.3

  	
  Institutional Trustee; Eligibility

  	
  23

  
	
  SECTION 4.4

  	
  Certain Qualifications of the Delaware Trustee
  Generally

  	
  24

  
	
  SECTION 4.5

  	
  Administrators

  	
  24

  
	
  SECTION 4.6

  	
  Delaware Trustee

  	
  24

  
	
  SECTION 4.7

  	
  Appointment, Removal and Resignation of Trustees and
  Administrators

  	
  24

  
	
  SECTION 4.8

  	
  Vacancies Among Trustees

  	
  26

  
	
  SECTION 4.9

  	
  Effect of Vacancies

  	
  26

  
	
  SECTION 4.10

  	
  Meetings of the Trustees and the Administrators

  	
  26

  

 

 i
 

 

	
  SECTION 4.11

  	
  Delegation of Power

  	
  27

  
	
  SECTION 4.12

  	
  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 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

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  DISSOLUTION AND TERMINATION OF TRUST

  
	
   

  	
   

  	
   

  
	
  SECTION 7.1

  	
  Dissolution and Termination of Trust

  	
  32

  
	
   

  	
   

  	
   

  

ARTICLE VIII

TRANSFER OF INTERESTS

	
  

  	
   

  	
   

  
	
  SECTION 8.1

  	
  General

  	
  33

  
	
  SECTION 8.2

  	
  Transfer Procedures and Restrictions

  	
  34

  
	
  SECTION 8.3

  	
  Deemed Security Holders

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  LIMITATION OF LIABILITY OF

  HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

  
	
   

  	
   

  	
   

  
	
  SECTION 9.1

  	
  Liability

  	
  36

  
	
  SECTION 9.2

  	
  Exculpation

  	
  37

  
	
  SECTION 9.3

  	
  Fiduciary Duty

  	
  37

  
	
  SECTION 9.4

  	
  Indemnification

  	
  38

  
	
  SECTION 9.5

  	
  Outside Businesses

  	
  40

  
	
  SECTION 9.6

  	
  Compensation; Fee

  	
  41

  

 

 ii
 

 

	
  ARTICLE X

  ACCOUNTING

  
	
   

  	
   

  	
   

  
	
  SECTION 10.1

  	
  Fiscal Year

  	
  41

  
	
  SECTION 10.2

  	
  Certain Accounting Matters

  	
  41

  
	
  SECTION 10.3

  	
  Banking

  	
  42

  
	
  SECTION 10.4

  	
  Withholding

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  AMENDMENTS AND MEETINGS

  
	
   

  	
   

  	
   

  
	
  SECTION 11.1

  	
  Amendments

  	
  43

  
	
  SECTION 11.2

  	
  Meetings of the Holders of Securities; Action by
  Written Consent

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  REPRESENTATIONS OF INSTITUTIONAL

  TRUSTEE AND DELAWARE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  SECTION 12.1

  	
  Representations and Warranties of Institutional
  Trustee

  	
  46

  
	
  SECTION 12.2

  	
  Representations and Warranties of Delaware Trustee

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  SECTION 13.1

  	
  Notices

  	
  48

  
	
  SECTION 13.2

  	
  Governing Law

  	
  49

  
	
  SECTION 13.3

  	
  Intention of the Parties

  	
  49

  
	
  SECTION 13.4

  	
  Headings

  	
  50

  
	
  SECTION 13.5

  	
  Successors and Assigns

  	
  50

  
	
  SECTION 13.6

  	
  Partial Enforceability

  	
  50

  
	
  SECTION 13.7

  	
  Counterparts

  	
  50

  

 

 iii

AMENDED
AND RESTATED DECLARATION OF TRUST

OF

COMMUNITY
(CA) CAPITAL TRUST I

March 23,
2000

AMENDED AND RESTATED DECLARATION OF TRUST (this “Declaration”)
dated and effective as of March 23, 2000, by the Trustees (as defined herein),
the Administrators (as defined herein), the Sponsor (as defined herein) and the
holders, from time to time, of undivided beneficial interests in the Trust (as
defined herein) to be issued pursuant to this Declaration;

WHEREAS, certain of the Trustees, the Administrators
and the Sponsor established Community (CA) Capital Trust I (the “Trust”), a
statutory business trust under the Delaware Business Trust Act pursuant to a
Declaration of Trust dated as of March 7, 2000 (the “Original Declaration”),
and a Certificate of Trust filed with the Secretary of State of the State of
Delaware on March 14, 2000, 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 certain debentures of the Debenture
Issuer (as defined herein);

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

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

NOW, THEREFORE, it being the intention of the parties
hereto to continue the Trust as a statutory business trust under the Business
Trust Act (as defined herein) and that this Declaration constitutes the
governing instrument of such statutory business trust, the Trustees declare
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.

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 have the
respective meanings assigned to them in this Section 1.1;

(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 Thomas E.
Swansen and L. Bruce Mills, Jr., solely in such Person’s capacity as
Administrator of the Trust created and 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.

“Business Day” means any day other than
Saturday, Sunday or any other day on which banking institutions in New York are
permitted or required by any applicable any applicable law to close.

 2
 

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

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

“Capital Security Certificate” means a
Certificate representing a Capital Security substantially in the form of
Exhibit A-l.

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

“Certificate” means any certificate evidencing
Securities.

“Closing Date” has the meaning set forth in the
Placement Agreement.

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

“Commission” means the Securities and Exchange
Commission.

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

“Common Security Certificate” means a
definitive Certificate in fully registered form 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.

“Comparable Treasury Issue” has the meaning set
forth in paragraph 4(a) of Annex I.

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

“Corporate Trust Office” means the office of
the Institutional Trustee at which the corporate trust business of the Institutional
Trustee shall, at any particular time, be principally administered, which
office at the date of execution of this Declaration is located at 101 Barclay
Street, Floor 21 West, New York, NY 10286.

“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 Community Bancorp
Inc., a bank holding company incorporated in Delaware, in its capacity as
issuer of the Debentures under the Indenture.

 3
 

“Debenture Trustee” means The Bank of New York,
as trustee under the Indenture until a successor is appointed thereunder, and
thereafter means such successor trustee.

“Debentures” means the 11% Junior Subordinated
Deferrable Interest Debentures due 2030 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 rate per annum equal to 11%,
compounded semi-annually 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.

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

“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(b) of Annex I.

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

(a) the occurrence of an Indenture Event of Default;

(b) default by the Trust in the payment of any
Redemption Price of any Security when it becomes due and payable;

(c) default in the performance, or breach, in any
material respect, of any covenant or warranty of the Trustees in this
Declaration (other than those specified in clause (b) above) and continuation
of such default or breach for a period of 30 days after there has been given,
by registered or certified mail to the Trustees and to the Sponsor by the
Holders of at least 25% in aggregate liquidation amount of the outstanding
Capital 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

(d) the occurrence of a Bankruptcy Event with respect
to the Institutional Trustee if a successor Institutional Trustee has not been
appointed within 90 days thereof.

 4
 

“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(b) of Annex I.

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

“Fiduciary Indemnified Person” shall mean the
Institutional Trustee, the Delaware Trustee, any Affiliate of the Institutional
Trustee or the Delaware Trustee, and any officers, directors, shareholders,
members, partners, employees, representatives, custodians, nominees or agents
of the Institutional Trustee and the Delaware Trustee.

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

“Guarantee” means the guarantee agreement to be
dated as of March 23, 2000, of the Sponsor in respect of the Capital
Securities.

“Holder” means a Person in whose name a
Certificate representing a Security is registered, such Person being a
beneficial owner within the meaning of the Business Trust Act.

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

“Indenture” means the Indenture dated as of
March 23, 2000, among 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.

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

“interest” means any interest due on the
Debentures, including any Deferred Interest and Defaulted Interest (as each
such term is defined in the Indenture).

“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).

 5
 

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

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

“Majority in liquidation amount of the Securities”
means Holder(s) 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.

“Officers’ Certificates” 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 it in this Declaration shall include:

(a)       a
statement that each officer signing the 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 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 specified 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 in the form
of Exhibit E.

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

“Primary Treasury Dealer” has the meaning set
forth in paragraph 4(a) of Annex I.

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

 6
 

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

“QIB” means a “qualified institutional buyer”
as defined under Rule 144A of the Securities Act.

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

“Quotation Agent” 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.

“Reference Treasury Dealer” has the meaning set
forth in paragraph 4(a) of Annex I.

“Reference Treasury Dealer Quotations” has the
meaning set forth in paragraph 4(a) of Annex I.

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

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

“Responsible Officer” means, with respect to
the Institutional Trustee, any officer within the Corporate Trust Office of the
Institutional Trustee, including any vice-president, any assistant
vice-president, 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.

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

 7
 

“Sponsor” means Community Bancorp Inc., a bank
holding company incorporated in Delaware, or any successor entity in a merger,
consolidation or amalgamation, in its capacity as sponsor of the Trust.

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

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

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

“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 Holder(s) 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.

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

“Treasury Regulations” means the income tax
regulations, including temporary and proposed regulations, promulgated under
the Code by the United States Treasury, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

“Trust Indenture Act” means the Trust Indenture
Act of 1939, as amended.

“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.

 8
 

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

ARTICLE
II

ORGANIZATION

SECTION 2.1 Name. The Trust is named “Community
(CA) Capital Trust I,” as such name may be modified from time to time by the
Administrators following written notice to 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 is 130 W. Fallbrook Street, Fallbrook, California
92028. On ten Business Days written notice to 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 and (c) except as
otherwise limited herein, to engage in only those other activities necessary or
incidental thereto. 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 in accordance with its 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.

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

 9
 

Trustees and the
Administrators shall have the authority to enter into all transactions and
agreements determined by the Trustees 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 and authority to act on behalf of the Trust
with respect to the following matters:

(A)      the
issuance and sale of the Securities;

(B)       to
cause the Trust to enter into, and to execute and deliver on behalf of the
Trust, such agreements as may be necessary or desirable in connection with the
purposes and function of the Trust, including agreements with the Paying Agent;

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

(D)      if and
at such time determined 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;

(E)       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;

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

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

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

(I)        unless
otherwise determined by the Institutional Trustee or the Holders of a Majority
in liquidation amount of the Securities or as otherwise required by the
Business 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;

(J)        the
taking of any action incidental to the foregoing as the Institutional Trustee
may from time to time determine is necessary to give effect

 10
 

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);

(K)      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; and

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

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

(A)      the
establishment of the Property Account;

(B)       the
receipt of the Debentures;

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

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

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

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

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

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

(I)        after
any Event of Default (provided that such Event of Default is not by or
with respect to the Institutional Trustee) the taking of any action incidental
to the foregoing as the Institutional Trustee may from time to time determine
is necessary or advisable to give effect to the terms of this Declaration and
protect and conserve the Trust Property for the benefit of the Holders

 11
 

(without consideration of the effect of any such
action on any particular Holder); and

(J)        to
take all action that may be necessary for the preservation and the continuation
of the Trust’s valid existence, rights, franchises and privileges as a
statutory business trust under the laws of the State of Delaware and of each
other jurisdiction 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.

(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 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 advice to the Trustees of actions they must take
on behalf of the Trust, and the preparation for execution and filing of any
documents to be executed and filed by the Trust or on behalf of the Trust, as
the Sponsor deems necessary or advisable in order to comply with the applicable
laws of any such States in connection with the sale of the Capital Securities;

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

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

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(d)       Notwithstanding
anything herein to the contrary, the Administrators and the Holders of a
Majority in liquidation amount of the Common Securities are authorized and
directed to conduct the affairs of the Trust and to operate the Trust so that
(i) the Trust will not be deemed to be an “investment company” required to be
registered under the Investment Company Act and (ii) the Trust will not fail to
be classified as a grantor trust for United States federal income tax purposes.
The Administrator and the Holders of a Majority in liquidation amount of the
Common Securities shall not take any action inconsistent with the treatment of
the Debentures as indebtedness of the Debenture Issuer for United States
federal income tax purposes. In this connection, the Holders of a Majority in
liquidation amount of the Common Securities are authorized to take any action,
not inconsistent with applicable laws, the Original Declaration or this
Declaration, as amended from time to time, that 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 and neither the
Administrators nor the Holders in accordance with this Declaration.

SECTION 2.7 Prohibition of Actions by the Trust and
the Trustees.

(a)       The
Trust shall not, and the Institutional Trustee 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
shall cause the Trust not to:

(i)        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;

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

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

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

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

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

 13
 

(vii)     other
than as provided in this Declaration (including Annex I), (A) direct the time,
method and place of exercising any trust or power conferred upon the Debenture
Trustee with respect to the Debentures, (B) waive any past default that is
waivable under the Indenture, (C) exercise any right to rescind or annul any
declaration that the principal of all the Debentures shall be due and payable,
or (D) 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 an opinion of counsel to the effect that such modification 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 or to the Delaware Trustee.

(c)       The
Institutional Trustee shall:

(i)        establish
and maintain a segregated non-interest bearing trust account (the “Property
Account”) in the United States (as defined in Treasury Regulations section
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
Holders of Securities upon the occurrence of certain circumstances pursuant to
the terms of the Securities.

 14
 

(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 arises out of or in
connection with an Event of Default of which a Responsible Officer of the
Institutional Trustee has actual knowledge or the Institutional Trustee’s
duties and obligations under this Declaration 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 principal on the Debentures on the date such interest 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 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 so
long as an 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; 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.

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.

 15

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

(a)       The
Institutional Trustee, before the occurrence of any Event of Default 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 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 the Trustees or Administrators to expend or risk
their own funds or otherwise incur any financial liability in the performance
of any of their duties hereunder, or in the exercise of any of their rights or
powers. 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 Administrators shall be subject to the provisions
of this Article. Nothing in this Declaration shall be construed to release an
Administrator or Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct. 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.

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

 16
 

(i)        the
Institutional Trustee shall not be liable for any error or judgment made in
good faith by an Authorized 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, opinion of
counsel, certificate, written representation of a Holder or transferee,
certificate of auditors or any other certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, appraisal, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed, sent or presented by the
proper party or parties;

(b)       if (i)
in performing its duties under this Declaration, the Institutional Trustee is
required to decide between alternative courses of action, (ii) in construing
any of the provisions of this Declaration, the Institutional Trustee finds the
same ambiguous or inconsistent with any other provisions contained herein, or
(iii) the Institutional Trustee is unsure of the application of any provision
of this Declaration, then, except as to any matter as to which the Holders of
Capital Securities are entitled to vote under the terms of this Declaration,
the Institutional Trustee may deliver a notice to the Sponsor requesting the
Sponsor’s opinion as to

 17
 

the course of action to be taken and the Institutional Trustee shall
take such action, or refrain from taking such action, as the Institutional
Trustee shall be directed, in which event the Institutional Trustee shall have
no liability except for its own negligence or willful misconduct;

(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 request and conclusively
rely upon an Officers’ Certificate as to factual matters 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 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 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;

 18
 

(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 Capital Securities, which
instructions may be given only by the Holders of the same proportion in
liquidation amount of the Capital Securities as would be entitled to direct the
Institutional Trustee under the terms of 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;

(1)       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 obtains
actual knowledge of such event or the Institutional Trustee receives written
notice of such event from any Holder;

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

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

SECTION 2.11 Delaware Trustee. Notwithstanding
any other provision of this Declaration other than Section 4.2, the Delaware
Trustee shall not be entitled to exercise any powers, nor shall the Delaware
Trustee have any of the duties and responsibilities of any of the Trustees or
the Administrators described in this Declaration. Except as set forth in
Section 4.2, the Delaware Trustee shall be a Trustee for the sole and limited
purpose of fulfilling the requirements of § 3807 of the Business Trust Act.

 19
 

SECTION 2.12 Execution of Documents. Subject to
the provisions of Section 2.11, unless otherwise determined in writing by the
Institutional Trustee, and except as otherwise required by the Business Trust
Act, the Institutional Trustee, or any one or more of the Administrators, as
the case may be, is authorized to execute on behalf of the Trust any documents
that the Trustees or the Administrators, as the case may be, have the power and
authority to execute pursuant to Section 2.6.

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

SECTION 2.14 Duration of Trust. The Trust,
unless dissolved pursuant to the provisions of Article VII hereof, shall have
existence for fifty-five (55) years from the Closing Date.

SECTION 2.15 Mergers.      (a)     The
Trust may not consolidate, amalgamate, merge with or into, or be replaced by,
or convey, transfer or lease its properties and assets substantially as an
entirety to any corporation or other body, except as described in this Section
2.15(b) and (c).

(b)       The
Trust may, with the consent of the Institutional Trustee and without the
consent of the Delaware Trustee or the Holders of the Capital Securities,
consolidate, amalgamate, merge with or into, or be replaced by 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 respect to Distributions and payments
upon Liquidation, redemption and otherwise;

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

(iii)      the
Capital Securities or any Successor Securities are listed, or any Successor
Securities will be listed 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;

 20
 

(iv)      such
merger, consolidation, amalgamation or replacement does not cause the Capital
Securities (including any Successor Securities) to be downgraded by any
nationally recognized statistical rating organization;

(v)       such
merger, consolidation, amalgamation or replacement 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 or replacement, the Trust has
received an opinion of a nationally recognized independent counsel to the Trust
experienced in such matters to the effect that:

(A)      such
merger, consolidation, amalgamation or replacement 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’ interest in the Successor Entity);

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

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

(viii)    the
Sponsor guarantees the obligations of such Successor Entity under the Successor
Securities at least to the extent provided by the Guarantee; and

(ix)       prior
to such merger, consolidation, amalgamation or replacement, 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 to be replaced by any other entity or permit any other entity
to consolidate, amalgamate, merge with or into, or replace it if such consolidation,
amalgamation, merger or replacement would cause the Trust or Successor Entity
to be classified as other than a grantor trust for United States federal income
tax purposes.

 21
 

ARTICLE III

SPONSOR

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

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

(a)       to
determine the States in which to take appropriate action to qualify or register
for sale 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)       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, if
required ; and

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

ARTICLE IV

TRUSTEES AND
ADMINISTRATORS

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

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

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

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

(a)       a
natural person who is a resident of the State of Delaware; or

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

SECTION 4.3 Institutional Trustee; Eligibility.    (a)    There
shall at all times be one Trustee which shall act as Institutional Trustee
which shall:

(i)        not be
an Affiliate of the Sponsor;

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

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

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

(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 The Bank of New York.

SECTION 4.4 Certain Qualifications of the Delaware
Trustee Generally. The Delaware Trustee shall be a U.S. Person and either a
natural person who is at least 21 years of age or a legal entity that shall act
through one or more Authorized Officers.

SECTION 4.5 Administrators. Each Administrator
shall be a U.S. Person. The initial Administrators shall be Thomas E. Swansen
and L. Bruce Mills, Jr.. There shall at all times be at least one
Administrator.

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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.

SECTION 4.6 Initial Delaware Trustee. The
initial Delaware Trustee shall be The Bank of New York (Delaware).

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

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

Subject to the immediately preceding paragraph, a
Relevant Trustee may resign at any time by giving written notice thereof to the
Holders of the Securities and by appointing a successor Relevant Trustee. Upon
the resignation of the Institutional Trustee, the Institutional Trustee shall
appoint a successor by requesting from each of Bank One Trust Company, NA,
Bankers Trust Company and State Street Bank & Trust Company, its 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
expense and charges (the “Successor Institutional Trustee”). If the
instrument of acceptance by the successor Relevant Trustee required by Section
4.7 shall not have been delivered to the Relevant Trustee within 60 days after
the giving of such notice of resignation or delivery of the instrument of
removal, the Relevant Trustee may petition, at the expense of the Trust, any
Federal, State or District of Columbia court of competent jurisdiction for the
appointment of a successor Relevant Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper, appoint a Relevant
Trustee. The Institutional Trustee shall have no liability for the selection of
such successor pursuant to this Section 4.7.

The Institutional Trustee or the Delaware Trustee, or
both of them, may be removed by the act of the Holders of a Majority in
liquidation amount of the Capital Securities, delivered to the Relevant Trustee
(in its individual capacity and on behalf of the Trust) if an Event of Default
shall have occurred and be continuing. If any Trustee shall be so removed, the
Holders of Capital Securities, by act of the Holders of a Majority in
liquidation amount of the Capital Securities then outstanding delivered to the
Relevant Trustee, shall promptly appoint a successor Relevant Trustee or
Trustees, and such successor Trustee shall comply with the applicable
requirements of this Section 4.7. If no successor Relevant Trustee shall have
been so appointed by the Holders of a Majority in liquidation amount of the
Capital Securities and accepted appointment in the manner required by this
Section 4.7, within 30 days after delivery of an instrument of removal, the
Relevant Trustee or any Holder who has been a Holder of the Securities for at
least six months may, on behalf of himself and all others similarly situated,
petition any Federal, State or District of Columbia court of competent jurisdiction
for the

 24
 

appointment of a successor Relevant Trustee. Such court may thereupon,
after prescribing such notice, if any, as it may deem proper, appoint a
successor Relevant Trust or Trustees.

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 in the manner provided in Section 4.7(b) and shall give
notice to the Sponsor. Each notice shall include the name of the successor
Relevant Trustee and the address of its Corporate Trust Office if it is the
Institutional Trustee.

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

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

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

(d)       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
Holder of the Common Securities.

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

 25
 

Trustees shall be conclusive evidence of the existence of such vacancy.
The vacancy shall be filled with an a Trustee appointed in accordance with
Section 4.7.

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

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

SECTION 4.11 Delegation of Power. (a) Any
Trustee or any Administrator, as the case may be, may, by power of attorney
consistent with applicable law, delegate to any other natural person over the
age of 21 that is a U.S. Person his or her power for the purpose of executing
any documents contemplated in Section 2.6; and

(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 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.

 26
 

SECTION 4.12 Conversion, Consolidation or
Succession to Business. Any Person into which the Institutional Trustee or
the Delaware Trustee, as the case may be, may be merged or converted or with
which either may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Institutional Trustee or the Delaware
Trustee, as the case may be, shall be a party, or any Person succeeding to all
or substantially all the corporate trust business of the Institutional Trustee
or the Delaware Trustee, as the case may be, shall be the successor of the
Institutional Trustee or the Delaware Trustee, as the case may be, hereunder,
provided such Person shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

ARTICLE V

DISTRIBUTIONS

SECTION 5.1 Distributions. 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)
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 for that
purpose, to make a distribution (a “Distribution”) of the Payment Amount
to Holders.

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 substantially in the form of Exhibit A-l representing undivided
beneficial interests in the assets of the Trust having such terms as are set
forth in Annex I (the “Capital Securities”) and one series of common
securities representing undivided beneficial interests in the assets of the
Trust 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

 27
 

Certificates nevertheless may be delivered as though the person who
signed such Certificates had not ceased to be such Administrator; and 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.

(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.

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

SECTION 6.2 Paying Agent, Transfer Agent and
Registrar. The Trust shall maintain in New York, New York, an office or
agency where the Capital Securities may be presented for payment (the “Paying
Agent”), and an office or agency where Securities may be presented for
registration of transfer (the “Transfer Agent”). The Trust shall keep or
cause to be kept at such office or agency 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 or 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. The Administrators may
change any Paying Agent 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 appoint the Institutional Trustee to act as Paying Agent,
Transfer Agent and Registrar for the Capital Securities and the Common
Securities. The Institutional Trustee or any of its Affiliates in the United
States may act as Paying Agent, Transfer Agent or Registrar.

SECTION 6.3 Form and Dating. 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,

 28
 

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 Securities 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-l 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-l and A-2 are part of the terms of this Declaration and to the extent
applicable, the Institutional Trustee, the Delaware Trustee, the Administrators
and the Sponsor, by their execution and delivery of this Declaration, expressly
agree to such terms and provisions and to be bound thereby. Capital Securities
will be issued only in blocks having a stated liquidation amount of not less
than $1,000.

The Capital Securities are being offered and sold by
the Trust pursuant to the Placement Agreement in definitive, registered form
without coupons with the Restricted Securities Legend.

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 their 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 keep 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.

 29

SECTION 6.6 Cancellation. The Administrators at
any time may deliver Securities to the Institutional Trustee 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 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. The Securities shall have no preemptive or similar rights
and when issued and delivered to Holders against payment of the purchase price
therefor 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, 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 at
least 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.

At any time after a declaration of acceleration with
respect to 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 fails to annul any such declaration
and waive such default, the Holders of at least 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)       the
principal of (and premium, if any, 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

 30
 

(D)      all sums
paid or advanced by the Debenture Trustee under the Indenture and the
reasonable compensation, 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 the Debentures that has become due solely by such
acceleration, have been cured or waived as provided in Section 5.07 of the
Indenture.

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

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.

(d)       Except
as otherwise provided in paragraphs (a) and (b) of this Section 6.7, the
Holders of at least 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 Trust Agreement, but no such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent thereon.

 31
 

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 March 8, 2055, the expiration of the term of the Trust;

(ii)       upon 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) upon the filing of a certificate of dissolution or its equivalent with
respect to the Sponsor; 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)      upon
the distribution of the Debentures to the Holders of the Securities, upon
exercise of the right of the Holder of all of the outstanding Common Securities
to dissolve the Trust as provided in Annex I hereto;

(v)       upon
the entry of a decree of judicial dissolution of the 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, including Section 3808 of the Business Trust Act, and subject
to the terms set forth in Annex I, the Institutional Trustee shall terminate
the Trust by filing a certificate of cancellation with the Secretary of State
of the State of Delaware.

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

 32
 

ARTICLE VIII

TRANSFER OF INTERESTS

SECTION 8.1 General. (a) Where Capital
Securities are presented to the Registrar or a co-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 its requirements for such transactions are
met. To permit registrations of transfer 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
Securities. To the fullest extent permitted by applicable law, any transfer or
purported transfer of any Security not made in accordance with this Declaration
shall be null and void and will be deemed to be of no legal effect whatsoever
and any such transferee shall be deemed not to be the holder of such Capital
Securities for any purpose, including but not limited to the receipt of
Distributions on such Capital Securities, and such transferee shall be deemed
to have no interest whatsoever in such Capital Securities.

(d)       The
Registrar shall provide for the registration of Securities and of transfers of
Securities, which will be effected without charge but only upon payment (with
such indemnity as the Registrar may require) in respect of any tax or other
governmental charges that may be imposed in relation to it. Upon surrender for
registration of transfer of any Securities, the Registrar shall cause one or
more new Securities to be issued in the name of the designated transferee or
transferees. 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 6.6. 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)       The
Trust shall not 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

 33
 

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)       General.
(i) The Capital Securities shall bear the Restricted Securities Legend, which
shall not be removed unless there is delivered to the Trust such satisfactory
evidence, which may include an opinion of counsel licensed to practice law in
the State of New York, as may be reasonably required by the Trust, 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 Trust, shall
authenticate and deliver Capital Securities that do not bear the legend.

(b)       Transfer
and Exchange of Capital Securities. 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 of another number, the Registrar shall register the transfer or make
the exchange as requested if its reasonable requirements for such transaction
are met; provided, however, that the Capital Securities
surrendered for registration of transfer or exchange shall be duly endorsed or
accompanied by a written instrument of transfer in form reasonably satisfactory
to the Trust and the Registrar, duly executed by the Holder thereof or his
attorney duly authorized in writing and (i) if such Capital Securities are
being transferred to a QIB, accompanied by a certificate of the transferee
substantially in the form set forth as Exhibit C hereto or (ii) if such Capital
Securities are being transferred otherwise than to a QIB, accompanied by a
certificate of the transferee substantially in the form set forth as Exhibit B
hereto.

(c)       Legend.
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. 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 IT 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 AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a) (1),

 34
 

(2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING
THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF AN “ACCREDITED
INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE
IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (D)
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 (C) OR (D) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE DECLARATION OF
TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST.
THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

(d)       Obligations
with Respect to Transfers and Exchanges of Capital Securities.

(i)        To
permit registrations of transfers and exchanges, the Trust shall execute and
the Institutional Trustee shall authenticate Capital Securities at the
Registrar’s request.

(ii)       Registrations
of transfers or exchanges will be effected without charge, but only upon
payment (with such indemnity as the Registrar or the Sponsor may require) in
respect of any tax or other governmental charge that may be imposed in relation
to it.

(iii)      The
Registrar shall not be required to register the transfer of or exchange of any
Capital Security during a period beginning at the opening of business 15 days
before the day of any selection of any Capital Security for redemption set
forth in the terms 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 Capital Securities to be redeemed.

(iv)      All
Capital Securities 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 Capital
Securities surrendered upon such registration of transfer or exchange.

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.

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ARTICLE IX

LIMITATION OF LIABILITY
OF

HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

SECTION 9.1 Liability. (a) Except as expressly
set forth in this Declaration, the Guarantee and the terms of the Securities,
the Sponsor shall not be:

(i)        personally
liable for the return of any portion of the capital contributions (or any
return thereon) of the Holders of the Securities which shall be made solely
from assets of the Trust; and

(ii)       required
to pay to the Trust or to any Holder of the Securities any deficit upon
dissolution of the Trust or otherwise.

(b)       The
Holder of the Common Securities shall be liable for all of the debts and
obligations of the Trust (other than with respect to the Securities) to the
extent not satisfied out of the Trust’s assets.

(c)       Pursuant
to § 3803(a) of the Business Trust Act, the Holders of the Capital Securities
shall be entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the General Corporation
Law of the State of Delaware.

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 shall be liable for
any such loss, damage or claim incurred by reason of such Indemnified Person’s
negligence or willful misconduct 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.

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

 36
 

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 full 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 he 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 him in
connection with such action, suit or proceeding if he acted in good faith and
in a manner he 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 his 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 he reasonably believed to be in or not opposed to the best
interests of the Trust, and, with respect to any criminal action or proceeding,
had reasonable cause to believe that his conduct was unlawful.

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

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(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, he shall be indemnified, to the
full extent permitted by law, against expenses (including attorneys’ fees and
expenses) actually and reasonably incurred by him 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 he 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 he is not entitled to be
indemnified by the Sponsor as authorized in this Section 9.4(a).
Notwithstanding the foregoing, no advance shall be made by the Sponsor if a
determination is reasonably and promptly made (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 did not believe to be in or not opposed to the best
interests of the Trust, or, with respect to any criminal proceeding, that such
Indemnified Person believed or had reasonable cause to believe his conduct was
unlawful. In no event shall any advance be made in instances where the
Administrators, independent legal counsel or the Common Security Holder
reasonably determine that such Person deliberately breached his duty to the
Trust or its Common or Capital Security Holders.

(vi)      Each
Trustee, at the sole cost and expense of the Sponsor, retains the right to
representation by counsel of its own choosing in any action, suit or any other
proceeding hereunder or against it by relation to the foregoing, without
affecting its right to indemnification hereunder or waiving any rights afforded
to it under this Declaration or applicable law.

 38
 

(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, 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, operation or termination of the Trust, or 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 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 or claim incurred by such Indemnified Person by
reason of gross negligence or willful misconduct 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 his official capacity and as to action in
another capacity while holding such office. All rights to indemnification under
this Section 9.4 shall be deemed to be provided by a contract between the
Sponsor and each Indemnified Person who serves in such capacity at any time
while this Section 9.4 is in effect. Any repeal or modification of this Section
9.4 shall not affect any rights or obligations then existing.

(d)       The
Sponsor or the Trust may purchase and maintain insurance on behalf of any
Person who is or was an Indemnified Person against any liability asserted
against him and incurred by him in any such capacity, or arising out of his
status as such, whether or not the Sponsor would have the power to indemnify
him 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 he 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.

The provisions of this Section shall survive the
termination of this agreement 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

 39
 

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 Securities.

SECTION 9.5 Outside Businesses. Any Covered
Person, the Sponsor, the Delaware Trustee and the Institutional Trustee
(subject to Section 4.3(c)) may engage in or possess an interest in other
business ventures of any nature or description, independently or with others,
similar or dissimilar to the business of the Trust, and the Trust and the
Holders of Securities shall have no rights by virtue of this Declaration in and
to such independent ventures or the income or profits derived therefrom, and
the pursuit of any such venture, even if competitive with the business of the
Trust, shall not be deemed wrongful or improper. None of any Covered Person,
the Sponsor, the Delaware Trustee or the Institutional Trustee shall be
obligated to present any particular investment or other opportunity to the
Trust even if such opportunity is of a character that, if presented to the
Trust, could be taken by the Trust, and any Covered Person, the Sponsor, the
Delaware Trustee and the Institutional Trustee shall have the right to take for
its own account (individually or as a partner or fiduciary) or to recommend to
others any such particular investment or other opportunity. Any Covered Person,
the Delaware Trustee and the Institutional Trustee may engage or be interested
in any financial or other transaction with the Sponsor or any Affiliate of the
Sponsor, or may act as depositary for, trustee or agent for, or act on any
committee or body of holders of, securities or other obligations of the Sponsor
or its Affiliates.

SECTION 9.6 Compensation; Fee. The Sponsor
agrees:

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

(b)       except
as otherwise expressly provided herein, to reimburse the Trustees upon request
for all reasonable 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 as may be
attributable to its negligence or willful misconduct.

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.

No Trustee may claim any lien or charge on any property
of the Trust as a result of any amount due pursuant to this Section 9.6.

 40
 

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 section 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. The books of account and the records of the
Trust shall be examined by and reported upon as of the end of each Fiscal Year
of the Trust by a firm of independent certified public accountants selected by
the Administrators.

(b)       The
Administrators shall cause to be prepared at the principal office of the Trust
in the United States, as defined for purposes of Treasury regulations section
301.7701-7, and delivered to each of the Holders of Securities, within 90 days
after the end of each Fiscal Year of the Trust, annual financial statements of
the Trust, including a balance sheet of the Trust as of the end of such Fiscal
Year, and the related statements of income or loss which shall be examined by
and reported upon by a firm of independent certified public accountants
selected by the Administrators.

(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 section 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)       So long
as the only Holder of the Capital Securities is Regional Diversified Funding
Limited, the Administrators will cause the Sponsor’s reports on Form FR Y-9C,
FR Y-9LP and FR Y-6 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 section 301.7701-7, in the

 41
 

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. The
Institutional Trustee or any Paying Agent shall request, and each Holder shall
provide to the Institutional Trustee or any Paying Agent, such forms or
certificates as are necessary to establish an exemption from withholding with
respect to the Holder, and any representations and forms as shall reasonably be
requested by the Institutional Trustee or any Paying Agent to assist it in
determining the extent of, and in fulfilling, its withholding obligations. 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, and

(ii)       if the
amendment affects the rights, powers, duties, obligations or immunities of the
Delaware Trustee, the Delaware Trustee.

(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

 42
 

(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

(ii)       if the
result of such amendment would be to

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

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

(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 Debentures as “Tier 1 Capital” for purposes of the capital
adequacy guidelines of the Federal Reserve.

(c)       Except
as provided in Section 11.1 (d), (e) or (h), 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 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)       Section
8.1 (b) and 8.1 (c) and this Section 11.1 shall not be amended without the
consent of all of the Holders of the Securities.

(f)        Article
III shall not be amended without the consent of the Holders of a Majority in
liquidation amount of the Common Securities.

(g)       the
rights of the Holders of the Capital Securities 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.

(h)       This
Declaration may be amended by the Institutional Trustee and the Holders of a
Majority in the liquidation amount of the Common Securities without the consent
of the Holders of the Capital Securities to:

(i)        cure
any ambiguity;

 43
 

(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; and

(iv)      modify,
eliminate or add to any provision of this Declaration to such extent as may be
necessary 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) or
(iii) shall adversely affect the powers, preferences or special rights of
Holders of Capital Securities.

SECTION 11.2 Meetings of the Holders of 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 at least 10% in
liquidation amount of such class of Securities. Such direction shall be given
by delivering to the Administrators one or more calls 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

 44
 

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 in liquidation amount that would be necessary to
authorize or take such action at a meeting at which all Holders of the
Securities having a right to vote thereon were present and voting. Prompt
notice of the taking of action without a meeting shall be given to the Holders
of the Securities entitled to vote who have not consented in writing. The
Administrators may specify that any written ballot submitted to the Holders of
the Securities for the purpose of taking any action without a meeting shall be
returned to the Trust within the time specified by the Administrators;

(ii)       each
Holder of a Security may authorize any Person to act for it by proxy on all
matters in which a Holder of Securities is entitled to participate, including
waiving notice of any meeting, or voting or participating at a meeting. No
proxy shall be valid after the expiration of 11 months from the date thereof
unless otherwise provided in the proxy. Every proxy shall be revocable at the
pleasure of the Holder of the Securities executing it. Except as otherwise
provided herein, all matters relating to the giving, voting or validity of
proxies shall be governed by the General Corporation Law of the State of
Delaware relating to proxies, and judicial interpretations thereunder, as if
the Trust were a Delaware corporation and the Holders of the Securities were
stockholders of a Delaware corporation; each meeting of the Holders of the
Securities shall be conducted by the Administrators or by such other Person
that the Administrators may designate; and

(iii)      unless
the Business 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 section
301.7701-7).

ARTICLE XII

REPRESENTATIONS OF
INSTITUTIONAL TRUSTEE 

AND DELAWARE TRUSTEE

SECTION 12.1 Representations and Warranties of Institutional
Trustee. The Trustee that acts as initial Institutional Trustee represents
and warrants to the Trust and to the Sponsor at the date of this Declaration,
and each Successor Institutional Trustee represents and warrants to the Trust
and the Sponsor at the time of the Successor Institutional Trustee’s acceptance
of its appointment as Institutional Trustee, that:

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(a)       the
Institutional Trustee is a banking corporation with trust powers, duly
organized, validly existing and in good standing under the laws of the United
States with trust power and authority to execute and deliver, and to carry out
and perform its obligations under the terms of, this Declaration;

(b)       the
execution, delivery and performance by the Institutional Trustee of this
Declaration has been duly authorized by all necessary corporate action on the
part of the Institutional Trustee. This Declaration has been duly executed and
delivered by the Institutional Trustee, and it 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 (regardless of whether considered
in a proceeding in equity or at law);

(c)       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

(d)       no
consent, approval or authorization of, or registration with or notice to, any
state or federal banking authority is required for the execution, delivery or
performance by the Institutional Trustee of this Declaration.

SECTION 12.2 Representations and Warranties of
Delaware Trustee. The Trustee that acts as initial Delaware Trustee
represents and warrants to the Trust and to the Sponsor at the date of this
Declaration, and each Successor Delaware Trustee represents and warrants to the
Trust and the Sponsor at the time of the Successor Delaware Trustee’s
acceptance of its appointment as Delaware Trustee, that:

(a)       The
Delaware Trustee is duly organized, validly existing and in good standing under
the laws of the State of Delaware, with trust power and authority to execute
and deliver, and to carry out and perform its obligations under the terms of,
this Declaration.

(b)       The
Delaware Trustee has been authorized to perform its obligations under the
Certificate of Trust and this Declaration. This Declaration under Delaware law
constitutes a legal, valid and binding obligation of the Delaware Trustee,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, reorganization, moratorium, insolvency and other similar laws
affecting creditors’ rights generally, and to general principles of equity
(regardless of whether considered in a proceeding in equity or at law).

(c)       No
consent, approval or authorization of, or registration with or notice to, any
state or federal banking authority is required for the execution, delivery or
performance by the Delaware Trustee of this Declaration.

(d)       The
Delaware Trustee is a natural person who is a resident of the State of Delaware
or, if not a natural person, an entity which has its principal place of
business in the

 46
 

State of Delaware and, in either case, a Person that satisfies for the
Trust the requirements of Section 3807 of the Business Trust Act.

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:

Community (CA) Capital Trust I

c/o Community Bancorp Inc.

130 W. Fallbrook Street

Fallbrook, California 92028

Attention: Administrators for Community (CA) Capital Trust I

(b)       if
given to the Delaware Trustee, at the mailing address set forth below (or such
other address as Delaware Trustee may give notice of to the Holders of the
Securities):

The Bank of New York (Delaware) 

White Clay Center, Route 273 

Newark, Delaware 

Attention: Corporate Trust Administration

(c)       if
given to the Institutional Trustee, at the Institutional Trustee’s mailing
address set forth below (or such other address as the Institutional Trustee may
give notice of to the Holders of the Securities):

The Bank of New York

101 Barclay Street, Floor 21W

New York, NY 10286

Attention: Corporate Trust Administration

Telecopy: 212-819-5915

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(d)       if
given to the Holder of the Common Securities, at the mailing address of the
Sponsor set forth below (or such other address as the Holder of the Common
Securities may give notice of to the Trust):

Community Bancorp Inc.

130 W. Fallbrook Street

Fallbrook, California 92028

Attention: Thomas E. Swanson, President and Chief Executive

Officer

(e)       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 of the parties hereunder shall be governed by and interpreted in
accordance with the law of the State of Delaware and all rights and remedies shall
be governed by such laws without regard to the principles of conflict of laws
of the State of Delaware or any other jurisdiction that would call for the
application of the law of any jurisdiction other than the State of Delaware; provided,
however, that there shall not be applicable to the Trust, the Trustees
or this Declaration any provision of the laws (statutory or common) of the
State of Delaware pertaining to trusts that relate to or regulate, in a manner
inconsistent with the terms hereof (a) the filing with any court or
governmental body or agency of trustee accounts or schedules of trustee fees
and charges, (b) affirmative requirements to post bonds for trustees, officers,
agents or employees of a trust, (c) the necessity for obtaining court or other
governmental approval concerning the acquisition, holding or disposition of
real or personal property, (d) fees or other sums payable to trustees,
officers, agents or employees of a trust, (e) the allocation of receipts and
expenditures to income or principal, (f) restrictions or limitations on the
permissible nature, amount or concentration of trust investments or
requirements relating to the titling, storage or other manner of holding or
investing trust assets or (g) the establishment of fiduciary or other standards
of responsibility or limitations on the acts or powers of trustees that are
inconsistent with the limitations or liabilities or authorities and powers of
the Trustees as set forth or referenced in this Declaration. Section 3540 of
Title 12 of the Delaware Code shall not apply to the Trust.

SECTION 13.3 Intention of the Parties. It is
the intention of the parties hereto that the Trust be classified for United
States federal income tax purposes as a grantor trust. The provisions of this
Declaration shall be interpreted to further this intention of the parties.

 48
 

SECTION 13.4 Headings. Headings contained in
this Declaration are inserted for convenience of reference only and do not
affect the interpretation of this Declaration or any provision hereof.

SECTION 13.5 Successors and Assigns. Whenever
in this Declaration any of the parties hereto is named or referred to, the
successors and assigns of such party shall be deemed to be included, and all
covenants and agreements in this Declaration by the Sponsor and the Trustees
shall bind and inure to the benefit of their respective successors and assigns,
whether or not so expressed.

SECTION 13.6 Partial Enforceability. If any
provision of this Declaration, or the application of such provision to any Person
or circumstance, shall be held invalid, the remainder of this Declaration, or
the application of such provision to persons or circumstances other than those
to which it is held invalid, shall not be affected thereby.

SECTION 13.7 Counterparts. This Declaration may
contain more than one counterpart of the signature page and this Declaration
may be executed by the affixing of the signature of each of the Trustees and
Administrators to any of such counterpart signature pages. All of such
counterpart signature pages shall be read as though one, and they shall have
the same force and effect as though all of the signers had signed a single
signature page.

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

	
  

  	
  THE BANK OF NEW
  YORK (DELAWARE)

  as Delaware Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William T. Lewis

  	
   

  
	
   

  	
   

  	
  Name:  WILLIAM
  T. LEWIS, SVP 

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  THE BANK OF NEW
  YORK

  as Institutional Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Annette L. KOS

  	
   

  
	
   

  	
   

  	
  Name: ANNETTE L. KOS 

  
	
   

  	
   

  	
  Title: Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMMUNITY
  BANCORP INC.,

  as Sponsor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Swanson

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMMUNITY (CA) CAPITAL TRUST I

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Swanson

  	
   

  
	
   

  	
   

  	
  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ L. Bruce Mills, Jr.

  	
   

  
	
   

  	
   

  	
  Administrator

  

 

 50

ANNEX I

TERMS OF

FIXED RATE CAPITAL TRUST PASS-THROUGH SECURITIES® (TRUPS®)

Pursuant to Section 6.1
of the Amended and Restated Declaration of Trust, dated as of March 23, 2000
(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.
10,000 Capital Securities of Community (CA) Capital Trust I (the “Trust”), with
an aggregate stated liquidation amount with respect to the assets of the Trust
of Ten Million ($10,000,000) 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 “Fixed Rate Capital Trust
Pass-through Securities”® (the “Capital Securities”). The Capital Security
Certificates evidencing the Capital Securities shall be substantially in the
form of Exhibit A-l 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. 310 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.

2.         Distributions. (a) Distributions payable on each
Security will be payable at an annual rate equal to 11% (the “Coupon Rate”) of
the stated liquidation amount of $1,000 per Security, such 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 semi-annual period will bear interest thereon
compounded semi- annually at the Coupon Rate (to the extent permitted by
applicable law). The term “Distributions” as used herein includes cash
distributions and any such compounded distributions payable 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 available therefor. The amount of
Distributions payable for any period will be computed for any full semi-annual
period on the basis of a 360-day year of twelve 30-day months.

(b)       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, semi-annually in arrears on March 8 and September 8 of each year,
commencing on September 8, 2000 (each, a “Distribution Payment Date”) when, as
and if available for payment. The Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures by extending the
interest payment period for up to 10 consecutive semi-annual periods (each, an “Extension
Period”) at any time and from time to time on the

 I-1
 

Debentures, subject to
the conditions described below, although such interest would continue to accrue
on the Debentures, and interest will accrue on such Deferred Interest at an
annual rate equal to 11%, compounded semi-annually to the extent permitted by
law during any Extension Period. 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; provided, however,
that no Extension Period may extend beyond the Maturity 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 of or interest or
premium, if any, 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 (other than (a)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Debenture Issuer 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, in connection with a dividend reinvestment
or stockholder stock purchase plan or 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 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 10 consecutive semi-annual periods, or
extend beyond the Maturity Date. Upon the termination of any Extension Period
and upon the payment of all Deferred Interest, the Debenture Issuer may
commence a new Extension Period, subject to the foregoing requirements. No
interest or Deferred Interest shall be due and payable during an Extension
Period, except at the end thereof, but each installment of interest that would
otherwise have been due and payable during such Extension Period shall bear
Deferred Interest. If Distributions are deferred, the Distributions due shall
be paid on the date that the related Extension Period terminates, or, if such
date is not a Distribution Payment Date, on the immediately following
Distribution Payment Date, 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
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.

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(c)       Distributions on the Securities will be
payable to the Holders thereof as they appear on the books and records of the
Trust on the relevant record dates. The relevant record dates shall be selected
by the Administrators, which dates shall be 15 days before the relevant payment
dates. 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. If any date on
which Distributions are payable on the Securities is not a Business Day, then
payment of the Distribution payable on such date will 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 is in
the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on such payment date.

(d)       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 on, and having the same
record date as, such Securities, after paying or making reasonable provision to
pay all claims and obligations of the Trust in accordance with Section 3808(e) of
the Business Trust Act, shall be distributed on a Pro Rata basis to the Holders
of the Securities in exchange for such Securities.

The Sponsor, as the
Holder of all of the Common Securities, has the right at any time to 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 the Board of Governors of the
Federal Reserve System (the “Federal Reserve”), if then required under
applicable capital guidelines or policies of the Federal Reserve 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) March 8, 2055, the expiration of the term of the
Trust, (ii) a Bankruptcy Event with respect to the Sponsor, Trust or the

 I-3
 

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) upon the filing of a certificate of dissolution of the Sponsor or upon
revocation of the charter of the Sponsor and the expiration of 90 days after
the date of revocation without a reinstatement thereof, (iv) the distribution
to the Holders of the Securities of the Debentures, upon exercise of the right
of the Holder of all of the outstanding Common Securities to dissolve the Trust
as described above, (v) the entry of a decree of a judicial dissolution of the
Sponsor or the Trust, or (vi) when all of the Securities shall have been called
for redemption and the amounts necessary for redemption thereof shall have been
paid to the Holders in accordance with the terms of the Securities. As soon as
practicable after the dissolution of the Trust and upon completion of the
winding up of the Trust, the Trust shall terminate upon the filing of a certificate
of cancellation with the Secretary of State of the State of Delaware.

If a Liquidation of the
Trust occurs as described in clause (i), (ii), (iii) or (v) in the immediately
preceding paragraph, the Trust shall be liquidated by the Trustees of the Trust
as expeditiously as such Trustees determine to be possible by distributing,
after satisfaction of liabilities to creditors of the Trust, 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 of 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) above 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.

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 Trust 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, and (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.

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4.         Redemption and Distribution.

(a)       The Debentures will mature on March 8,
2030. The Debentures may be redeemed by the Debenture Issuer, in whole or in
part, on any March 8 or September 8 on or after March 8, 2010, at the
Redemption Price, upon not less than 30 days nor more than 60 day’s 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 but not 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 the Federal Reserve, if then required under applicable capital guidelines
or policies of the Federal Reserve.

“Tax Event” means the
receipt by the Debenture Issuer and the Trust of an opinion of counsel
experienced in such matters to the effect that, as a result of any amendment to
or change (including any announced prospective change) in the laws or any
regulations thereunder of the United States or any political subdivision or
taxing authority thereof or therein, or as a result of any official
administrative pronouncement (including any private letter ruling, technical
advice memorandum, field service advice, regulatory procedure, notice or
announcement, including any notice or announcement of intent to adopt such
procedures or regulations (an “Administrative Action”)) or judicial decision
interpreting or applying such laws or regulations, regardless of whether such
Administrative Action or judicial decision is issued to or in connection with a
proceeding involving the Debenture Issuer or the Trust and whether or not
subject to review or appeal, which amendment, clarification, change,
Administrative Action or decision is enacted, promulgated or announced, in each
case on or after the date of 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) 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, duties or other governmental charges.

“Investment Company Event”
means the receipt by the Trust of an opinion of counsel experienced in such
matters to the effect that, as a result of the occurrence of a change in law or
regulation or written change (including any announced prospective change) in
interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority, there is more than an
insubstantial risk that the Trust is or 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 issuance of
the Debentures.

 I-5
 

“Capital Treatment Event”
means the reasonable determination by the Debenture Issuer that, as a result of
the occurrence of any amendment to, or change (including any announced prospective
change) in, the laws of the United States or any political subdivision thereof
or therein, or as the result of 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 issuance of the Debentures, there
is more than an insubstantial risk that the Debenture Issuer will not be
entitled to treat an amount equal to the aggregate Liquidation Amount of the
Debentures as “Tier I Capital” (or the then equivalent thereof) for purposes of
the capital adequacy guidelines of the Federal Reserve, as then in effect and
applicable to the Debenture Issuer; provided, 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.

“Redemption Price” means
the price set forth in the following table for any Redemption Date or Special
Redemption Date that occurs within the twelve-month period beginning in the
relevant year indicated below, expressed in percentage of the principal amount
of the Debt Securities being redeemed:

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2010

  	
   

  	
   

  	
  105.438

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2011

  	
   

  	
   

  	
  104.894

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2012

  	
   

  	
   

  	
  104.350

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2013

  	
   

  	
   

  	
  103.806

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2014

  	
   

  	
   

  	
  103.263

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2015

  	
   

  	
   

  	
  102.719

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2016

  	
   

  	
   

  	
  102.175

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2017

  	
   

  	
   

  	
  101.631

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2018

  	
   

  	
   

  	
  101.088

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2019

  	
   

  	
   

  	
  100.544

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 8, 2020
  and after

  	
   

  	
   

  	
  100.000

  	
   

  

plus accrued and unpaid
interest on such Debentures to the Redemption Date or, in the case of a
redemption due to the occurrence of a Special Event, to the Special Redemption
Date.

 I-6
 

“Special Redemption Price”
means (1) if the Special Redemption Date is before March 8, 2010, the greater
of (a) 100% of the principal amount of the Debentures being redeemed and (b) as
determined by a Quotation Agent, the sum of the present values of scheduled
payments of principal and interest from the Special Redemption Date to March 8,
2010 (the “Remaining Life”) discounted to the Special Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 0.45%, plus, in the case of either (a) or (b),
accrued and unpaid interest on such Debentures to the Special Redemption Date
and (2) if the Special Redemption Date is on or after March 8, 2010, the
Redemption Price for such Special Redemption Date.

“Comparable Treasury Issue”
means with respect to any Special Redemption Date the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
Remaining Life that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the Remaining Life. If no
United States Treasury security has a maturity which is within a period from
three months before to three months after March 8, 2010, the two most closely
corresponding United States Treasury securities shall be used as the Comparable
Treasury Issue, and the Treasury Rate shall be interpolated or extrapolated on
a straight-line basis, rounding to the nearest month using such securities.

“Comparable Treasury
Price” means (a) the average of five Reference Treasury Dealer Quotations for
such Special Redemption Date, after excluding the highest and lowest such
Reference Treasury Dealer Quotations, or (b) if the Quotation Agent obtains fewer
than five such Reference Treasury Dealer Quotations, the average of all such
Quotations.

“Primary Treasury Dealer”
shall mean a primary United States Government securities dealer in New York
City.

“Quotation Agent” means
Salomon Smith Barney, Inc. and its successors; provided, however, that if the
foregoing shall cease to be a primary United States Government securities
dealer in New York City (a “Primary Treasury Dealer”), the Debenture Issuer
shall substitute therefor another Primary Treasury Dealer.

“Redemption Date” shall
mean the date fixed for the redemption of Capital Securities, which shall be
any March 8 or September 8 commencing on March 8, 2010.

“Reference Treasury
Dealer” means (i) the Quotation Agent and (ii) any other Primary Treasury
Dealer selected by the Debenture Trustee after consultation with the Company.

“Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and
any Redemption Date, the average, as determined by the Quotation Agent, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case
as a percentage of its principal amount) quoted in writing to the Debenture
Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on
the third Business Day preceding such Redemption Date.

 I-7
 

“Treasury Rate” means (i)
the yield, under the heading which represents the average for the week
immediately prior to the date of calculation, appearing in the most recently
published statistical release designated H.15 (519) or any successor
publication which is published weekly by the Federal Reserve and which
establishes yields on actively traded United States Treasury securities
adjusted to constant maturity under the caption “Treasury Constant Maturities”,
for the maturity corresponding to the Remaining Life (if no maturity is within
three months before or after the Remaining Life, yields for the two published
maturities most closely corresponding to the Remaining Life shall be determined
and the Treasury Rate shall be interpolated or extrapolated from such yields on
a straight-line basis, rounding to the nearest month) or (ii) if such release
(or any successor release) is not published during the week preceding the
calculation date or does not contain such yields, the rate per annum equal to
the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for
such Special Redemption Date. The Treasury Rate shall be calculated on the
third Business Day preceding the Special Redemption Date.

(b)       Upon the repayment in full at maturity or
redemption in whole or in part of the Debenture (other than following the
distribution of the Debenture 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 Debenture 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 Debenture).

(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 semi-annual Distribution
periods terminating on or before the date of redemption.

(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 Trust. No defect in the
Redemption/Distribution Notice or in the mailing thereof with respect to any

 I-8
 

Holder shall affect the validity of the redemption or exchange
proceedings with respect to any other Holder.

(ii)       In the event that fewer than all the outstanding Securities
are to be redeemed, the Securities to be redeemed shall be redeemed Pro Rata
from each Holder of Capital Securities.

(iii)      If the Securities are to be redeemed and the Trust gives a
Redemption/Distribution Notice, which notice may only be issued if the
Debentures are redeemed as set out in this Section 4 (which notice will be
irrevocable), then, provided that the Institutional Trustee has a sufficient
amount of cash in connection with the related redemption or maturity of the
Debentures, the Institutional Trustee will pay the relevant Redemption Price 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 specified in Section 4(a), but without
interest on such Redemption Price. If any date fixed for redemption of
Securities is not a Business Day, then payment of any such Redemption Price
payable on such date will 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 fixed for redemption. If payment
of the Redemption Price 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. 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 acquirer is not the Holder of the Common Securities or the obligor under
the Indenture, the Sponsor or any

 I-9
 

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 at least 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 Debentures, (ii) waive any past default that is waivable under
the Indenture, or (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 at least
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 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 principal on the Debentures on the date the
interest 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
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 clauses (i), (ii) or (iii) above unless the Institutional

 I-10
 

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 shall request the 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 direction of the Holders of at least
the proportion in liquidation amount of such Trust 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 directions of the Holders of the Securities
unless the Institutional Trustee has obtained an opinion of tax counsel to the
effect that, as a result of such action, the Trust will not be classified as
other than a grantor trust for United States federal income tax purposes.

A waiver of an Indenture
Event of Default will constitute a waiver of the corresponding Event of Default
hereunder. Any required approval or direction of Holders of the Capital
Securities may be given at a separate meeting of Holders of the Capital
Securities convened for such purpose, at a meeting of all of the Holders of the
Securities in the Trust or pursuant to written consent. The Institutional
Trustee will cause a notice of any meeting at which Holders of the Capital
Securities are entitled to vote, or of any matter upon which action by written
consent of such Holders is to be taken, to be mailed to each Holder of record
of the Capital Securities. Each such notice will include a statement setting
forth the following information (i) the date of such meeting or the date by
which such action is to be taken, (ii) a description of any resolution proposed
for adoption at such meeting on which such Holders are entitled to vote or of
such matter upon which written consent is sought and (iii) instructions for the
delivery of proxies or consents. No vote or consent of the Holders of the
Capital Securities will be required for the Trust to redeem and cancel Capital
Securities or to distribute the Debentures in accordance with the Declaration
and the terms of the Securities.

Notwithstanding that
Holders of the Capital Securities are entitled to vote or consent under any of
the circumstances described above, any of the Capital Securities that are owned
by the Sponsor or any Affiliate of the Sponsor shall not entitle the Holder
thereof to vote or consent and shall, for purposes of such vote or consent, be
treated as if such Capital Securities were not outstanding.

In no event will Holders
of the Capital Securities have the right to vote to appoint, remove or replace
the Administrators, which voting rights are vested exclusively in the Sponsor
as the Holder of all of the Common Securities of the Trust. Under certain
circumstances as more fully described in the Declaration, Holders of Capital
Securities have the right to vote to appoint, remove or replace the
Institutional Trustee and the Delaware Trustee.

 I-11
 

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 V 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
conferred on the Debenture Trustee with respect to the Debentures, (ii) waive
any past default and its consequences that is waivable under the Indenture, or
(iii) exercise 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 at least 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 (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.

 I-12
 

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 at least a Majority in liquidation
amount of the Securities, affected thereby; provided, however, if
any amendment or proposal referred to in clause (i) above would adversely
affect only the Capital Securities or only the Common Securities, then only the
affected class will be entitled to vote on such amendment or proposal and such
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 direction
of the Holders of at least 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 a 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

 I-13
 

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 the
rights of the Holders of the Capital Securities with the result that no payment
of any Distribution on, or 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 the full amount of such 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 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 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.

 I-14

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. 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 IT 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 AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF AN “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF
THE SECURITIES ACT, OR (D) 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 (C) OR (D) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN
ACCORDANCE WITH THE DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM
THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER OF THIS SECURITY AGREES THAT IT
WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

IN CONNECTION WITH ANY
TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH
CERTIFICATE AND OTHER INFORMATION MAY BE REQUIRED BY THE DECLARATION TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 A-1-1
 

 

	
  

  	
  Certificate
  Number P-l

  	
  Number of Capital Securities: 10,000

  

 

CUSIP NO                     

Certificate Evidencing Capital Securities

of

Community (CA) Capital Trust I

Fixed Rate Capital Pass-through Securities® (TRUPS®)

(liquidation amount $1,000 per Capital Security)

Community (CA) Capital Trust I, a statutory business
trust created under the laws of the State of Delaware (the “Trust”), hereby
certifies that                     
(the “Holder”) is the registered owner of securities of the Trust representing
undivided beneficial interests in the assets of the Trust, designated the Fixed
Rate Capital Trust Pass-through 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 designation, rights, privileges, restrictions, preferences and other terms
and provisions of the Capital Securities represented hereby are issued pursuant
to, and shall in all respects be subject to, the provisions of the Amended and
Restated Declaration of Trust of the Trust dated as of March 23, 2000, among
Thomas E. Swanson and L. Bruce Mills, Jr., as Administrators, The Bank of New
York (Delaware), as Delaware Trustee, The Bank of New York, as Institutional
Trustee, Community Bancorp Inc., as Sponsor, and the holders from time to time
of undivided beneficial interests in the assets of the Trust, including the
designation of the terms of the Capital Securities as set forth in Annex I to
the Declaration, as the same may be amended from time to time (the
“Declaration”). Capitalized terms used herein but not defined shall have the
meaning given them in the Declaration. The Holder is entitled to the benefits of
the Guarantee to the extent provided therein. The Sponsor will provide a copy
of the Declaration, the Guarantee, and the Indenture to the Holder without
charge upon written request to the Trust at its principal place of business.

Upon receipt 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 construed in
accordance with, the laws of the State of Delaware, without regard to
principles of conflict of laws.

 A-1-2
 

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

	
  

  	
   

  	
  COMMUNITY (CA) CAPITAL TRUST I

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title: Administrator

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:

  	
   

  	
   

  
							

 

 

CERTIFICATE
OF AUTHENTICATION

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

	
  

  	
   

  	
  THE BANK OF NEW
  YORK, as the

  Institutional Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:

  	
   

  	
   

  
						

 

 A-1-3
 

[FORM OF REVERSE
OF SECURITY]

Distributions payable on each Capital Security will be
payable at an annual rate of 11% (the “Coupon Rate”) of the stated liquidation
amount of $1,000 per Capital Security, such 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 a semi-annual period will bear interest thereon compounded
semi-annual at the Coupon Rate (to the extent permitted by applicable law). The
term “Distributions” as used herein includes cash distributions, any such
compounded interest 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 available
therefor. The amount of Distributions payable for any period will be computed
for any full semi-annual Distribution period on the basis of a 360-day year of
twelve 30-day months.

Except as otherwise described below, Distributions on
the Capital Securities will be cumulative, will accrue from the date of
original issuance and will be payable semi-annually in arrears on March 8 and
September 8 of each year, commencing on September 8, 2000. The Debenture Issuer
has the right under the Indenture to defer payments of interest on the
Debentures by extending the interest payment period for up to 10 consecutive
semi-annual periods (each, an “Extension Period”) at any time and from time to
time on the Debentures, subject to the conditions described below, although
such interest would continue to accrue on the Debentures, and Interest will
accrue on such Deferred Interest, at an annual rate equal to 11%, compounded
semi-annually to the extent permitted by law during any Extension Period. 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. 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 10 consecutive
semi-annual periods, or extend beyond the Maturity Date. Upon the termination
of any Extension Period and upon the payment of all Deferred Interest, the
Debenture Issuer may commence a new Extension Period, subject to the foregoing
requirements. No interest or Deferred Interest shall be due and payable during
an Extension Period, except at the end thereof, but each installment of
interest that would otherwise have been due and payable during such Extension
Period shall bear Deferred Interest. If Distributions are deferred, the
Distributions due shall be paid on the date that the related Extension Period
terminates, or, if such date is not a Distribution Payment Date, on the
immediately following Distribution Payment Date, 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 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-1-4
 

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 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-1-5

EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION.

THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED.

	
  

  	
  Certificate Number

  	
  Number of Common Securities: 310

  

 

Certificate Evidencing Common Securities

of

Community (CA) Capital Trust I

Community (CA) Capital Trust I, a statutory business
trust created under the laws of the State of Delaware (the “Trust”), hereby
certifies that [                          ]
(the “Holder”) is the registered owner of common securities of the Trust
representing undivided beneficial interests in the assets of the Trust (the “Common
Securities”). The designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Common Securities represented hereby are
issued pursuant to, and shall in all respects be subject to, the provisions of
the Amended and Restated Declaration of Trust of the Trust dated as of March
23, 2000, among Thomas E. Swanson and L. Bruce Mills, Jr., as Administrators,
The Bank of New York (Delaware), as Delaware Trustee, The Bank of New York, as
Institutional Trustee, Community Bancorp Inc., as Sponsor and the holders from
time to time of undivided beneficial interest 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 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.

As set forth in the Declaration, where an Event of
Default has occurred and 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.

Upon receipt 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.

 A-2-1
 

This Common Security is governed by, and construed in
accordance with, the laws of the State of Delaware, without regard to
principles of conflict of laws.

 A-2-2
 

IN WITNESS WHEREOF, the Trust has executed this
certificate this 23rd day of March, 2000.

	
  

  	
  COMMUNITY (CA) CAPITAL TRUST I

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: Administrator

  

 

 A-2-3
 

[FORM OF REVERSE OF SECURITY]

Distributions payable on each Common Security will be
identical in amount to the Distributions payable on each Capital Security,
which is at an annual rate of 11% (the “Coupon Rate”) of the stated liquidation
amount of $1,000 per Capital Security, such 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 period will bear interest thereon compounded at the Coupon Rate
(to the extent permitted by applicable law). The term “Distributions” as used
herein includes cash distributions, any such compounded distribution 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 available therefor. The amount of Distributions
payable for any period will be computed for any full semi-annual Distribution
period on 360-day year of twelve 30-day months.

Except as otherwise described below, Distributions on
the Common Securities will be cumulative, will accrue from the date of original
issuance and will be payable semi-annually in arrears on March 8 and September
8 of each year, commencing on September 8, 2000. The Debenture Issuer has the
right under the Indenture to defer payments of interest on the Debentures by
extending the interest payment period for up to 10 consecutive semi-annual
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. No Extension Period may end on a
date other than a Distribution Payment Date. During an Extension Period,
interest would continue to accrue on the Debentures, and interest on such
accrued interest (such accrued interest and interest theron referred to herein
as “Deferred Interest”) will accrue at an annual rate equal to 11%, compounded
semi-annually from the date such Deferred Interest would have been payable were
it not for the Extension Period to the extent permitted by law during any
Extension Period. 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.
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 10
consecutive semi-annual periods, or extend beyond the Maturity Date. Upon the
termination of any Extension Period and upon the payment of all Deferred
Interest, the Debenture Issuer may commence a new Extension Period, subject to
the foregoing requirements. No interest or Deferred Interest shall be due and
payable during an Extension Period, except at the end thereof, but each
installment of interest that would otherwise have been due and payable during
such Extension Period shall bear Deferred Interest. If Distributions are
deferred, the Distributions due shall be paid on the date that the related
Extension Period terminates, or, if such date is not a Distribution Payment
Date, on the immediately following Distribution Payment Date, 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 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

 A-2-4
 

limited to payments received from the Debenture Issuer. The payment of
Distributions out of moneys held by the Trust is guaranteed by the Guarantor
pursuant to the Guarantee.

The Common Securities shall be redeemable as provided
in the Declaration.

 A-2-5
 

ASSIGNMENT

FOR VALUE RECEIVED, the
undersigned assigns and transfers this Common Security Certificate to:

 

 

(Insert assignee’s social
security or tax identification number)

 

 

(Insert address and zip
code of assignee), and irrevocably appoints                   
as agent to transfer this Common Security Certificate on the books of the
Trust. The agent may substitute another to act for him or her.

 

	
  

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the other side
  of this Common Security Certificate)

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:(2)

  	
   

  	
   

  
							

 

 

(2)       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-2-6

EXHIBIT B

FORM OF TRANSFEREE CERTIFICATE 

TO BE EXECUTED BY TRANSFEREES OTHER THAN QIBS

                      ,
[    ]

Community Bancorp Inc. 

Community (CA) Capital Trust I 

130 W. Fallbrook Street 

Fallbrook, CA 92028

Re:                    Purchase of $1,000 stated liquidation amount
of Fixed Rate Capital Trust 

Pass-through Securities® (TruPS)® (the “Capital Securities”) of 

Community (CA) Capital Trust I

Ladies and Gentlemen:

In connection with our purchase of the Capital
Securities we confirm that:

1.         We understand that the Capital Securities (including the
guarantee (the “Guarantee”) of Community Bancorp Inc. (the “Company”) executed
in connection therewith) of Community (CA) Capital Trust I (the “Trust”) and
the Fixed Rate Junior Subordinated Deferrable Interest Debentures due 2030 (the
“Subordinated Debt Securities”) of the Company (the Capital Securities, the
Guarantee and the Subordinated Debt Securities together being referred to
herein as “Offered Securities”), have not been registered under the Securities
Act of 1933, as amended (the “Securities Act”), and may not be offered or sold
except as permitted in the following sentence. We agree on our own behalf and
on behalf of any investor account for which we are purchasing the Offered
Securities that, if, we decide to offer, sell or otherwise transfer any such
Offered Securities, such offer, sale or transfer will be made only (a) to The
Trust or the Company, (b) pursuant to Rule 144A under the Securities Act, to a
person we reasonably believe is a qualified institutional buyer under Rule 144A
(a “QIB”) that purchases for its own account or for the account of a QIB and to
whom notice is given that the transfer is being made in reliance on Rule 144A,
(c) to an “accredited investor” with the meaning of subparagraph (a) (1), (2),
(3) or (7) of Rule 501 under the Securities Act that is acquiring Offered
Securities 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 thereof in violation of the Securities
Act, or (d) pursuant to another available exemption from the registration
requirements of the Securities Act, subject in each of the foregoing cases to
any requirements of law that the disposition of our property or compliance with
any applicable state securities laws. The foregoing restrictions on resale will
not apply subsequent to the Resale Restriction Termination Date. If any resale
or other transfer of the Offered Securities is proposed to be made pursuant to
clause (c) or (d) above the transferor shall deliver a letter from the
transferee substantially in the form of this letter to The Bank of New York as
Transfer Agent, which shall provide as applicable, among other things, that the
transferee is an “accredited investor” within the meaning of subparagraph (a)
(1), (2), (3) or (7) of Rule 501 under the Securities Act that is acquiring
such Securities for investment purposes and not for distribution in

 B-1
 

violation of the Securities Act. We acknowledge on our
behalf and on behalf of any investor account for which we are purchasing
Securities that the Trust and the Company reserve the right prior to any offer,
sale or other transfer pursuant to clauses (d) or (e) to require the delivery
of any opinion of counsel, certifications and/or other information satisfactory
to the Trust and the Company. We understand that the certificates for any
Offered Security that we receive will bear a legend substantially to the effect
of the foregoing.

2.         We are an “accredited investor” with the meaning of
subparagraph (a) (1), (2), (3) or (7) of Rule 501 under the Securities Act
purchasing for our own account or for the account of such an “accredited
investor,” and we are acquiring the Offered Securities for the investment purposes
and not with view to, or for offer or sale in connection with, any distribution
in violation of the Securities Act and we have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Offered Securities, and we and any account for
which we are acting are each able to bear the economic risks of our or its
investment.

3.         We are acquiring the Offered Securities
purchased by us for our own account (or for one or more accounts as to each of
which we exercise sole investment discretion and have authority to make, and do
make, the statements contained in this letter) and not with a view to any
distribution of the Offered Securities, subject, nevertheless, to the
understanding that the disposition of our property will at all times be and
remain within our control.

4.         In the event that we purchase any
Capital Securities or any Subordinated Debt Securities, we will acquire such
Capital Securities having an aggregate stated liquidation amount of not less
than $1,000 or such Subordinated Debt Securities having an aggregate principal
amount not less than $1,000, for our own account and for each separate account
for which we are acting.

5.         We acknowledge that we either (A) are
not a fiduciary of a pension, profit- sharing or other employee benefit plan
subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
(a “Plan”), or an entity whose assets include “plan assets” by reason of any
Plan’s investment in the entity and are not purchasing the Offered Securities
on behalf of or with “plan assets” by reason of any Plan’s investment in the
entity and is not purchasing the Offered Securities on behalf of or with “plan
assets” of any Plan or (B) are eligible for the exemptive relief available
under one ore more of the following prohibited transaction class exemptions (“PTCEs”)
issued by the U.S. Department of Labor: PTCE 96-23, 95-60, 91-38, 90-1 or
84-14.

6.         We acknowledge that the Trust and the
Company and others will rely upon the truth and accuracy of the foregoing
acknowledges, representations, warranties and agreements and agree that if any
of the acknowledgments, representations, warranties and agreements deemed to
have been made by our purchase of the Offered Securities are no longer
accurate, we shall promptly notify the Initial Purchasers. If we are acquiring
any Offered Securities as a fiduciary or agent for one or more investor
accounts, we represent that we have sole discretion with respect to each such investor
account and that we have full power to make the foregoing acknowledgments,
representations and agreement on behalf of each such investor account.

 B-2

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Name of
  Purchaser)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

 

Upon transfer of the Offered Securities would be
registered in the name of the new beneficial owner as follows.

	
  Name:

  	
   

  	
   

  
	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  
	
  Taxpayer ID Number:

  	
   

  	
   

  
					

 

 B-3

EXHIBIT C

FORM OF TRANSFEREE CERTIFICATE 

TO BE EXECUTED FOR QIBs

                ,
[     ]

Community Bancorp Inc. 

Community (CA) Capital Trust I 

130 W. Fallbrook Street 

Fallbrook, CA 92028

Re:                     Purchase of $1,000 stated liquidation amount
of Fixed Rate Capital Trust Pass-through Securities® (TRUPS)® (the “Capital Securities”) of 

Community (CA) Capital Trust I

Reference is hereby made to the Amended and Restated
Declaration dated as of March 23, 2000 (the “Declaration”) among Thomas E.
Swanson and L. Bruce Mills, Jr., as Administrators, The Bank of New York
(Delaware), as Delaware Trustee, The Bank of New York, as Institutional
Trustee, Community Bancorp Inc., as Sponsor, and the holders from time to time
of undivided beneficial interest in the assets of Community (CA) Capital Trust
I. Capitalized terms used but not defined herein shall have the meanings given
them in the Declaration.

This letter relates to $[                                    ]
aggregate liquidation amount of Capital Securities which are held in the name
of [name of transferor] (the “Transferor”).

In connection with such request, and in respect to
such Capital Securities, the transferor does hereby certify that such Capital
Securities are being transferred in accordance with (i) the transfer
restrictions set forth in the Capital Securities and (ii) Rule 144A under the
United States Securities Act of 1933, as amended (“Rule 144A”), to a transferee
that the Transferor reasonably believes is purchasing the Capital Securities
for its own account or an account with respect to which the transferee
exercises sole investment discretion and the transferee and any such account is
a “qualified institutional buyer” within the meaning of Rule 144A, in a
transaction meeting the requirements of Rule 144A and in accordance with
applicable securities laws of any state of the United States or any other
jurisdiction.

You are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

 C-1
 

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  (Name of Transferor)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
							

 

 C-2

EXHIBIT D

SPECIMEN OF INITIAL DEBENTURE

 D-1

JUNIOR SUBORDINATED DEBT SECURITY

[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. 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 IT 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 AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH
(a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING
THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF AN “ACCREDITED
INVESTOR, “FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE
IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (D)
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 (C) OR (D) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO ITS
IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE
COMPANY. THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE
FOREGOING RESTRICTIONS.

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATE AND OTHER
INFORMATION MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

11%
Junior Subordinated Debt Security

of

Community
Bancorp, Inc.

Community Bancorp, Inc., a bank holding company
incorporated in Delaware (the “Company”), for value received promises to pay to
The Bank of New York, not in its individual capacity but solely as
Institutional Trustee for Community (CA) Capital Trust I (the “Holder”) or
registered assigns, the principal sum of Ten Million Three Hundred Ten Thousand
Dollars ($10,310,000) on March 8, 2030, and to pay interest on said principal
sum from March 23, 2000, 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, semi-annually (subject to deferral as set forth herein) in
arrears on March 8 and September 8 of each year commencing September 8, 2000,
at an annual rate equal to 11% (the “Interest Rate”) until the principal hereof
shall have become due and payable, and on any over due 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 11% compounded semi-annually. The amount of interest payable on any
Interest Payment Date shall be computed on the basis of a 360-day year of
twelve 30-day months. In the event that any date on which interest is payable
on this Debt Security is not a Business Day, then payment of interest payable
on such date will 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 is in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day, in each case
with the same force and effect as if made on such date. The interest
installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the Person
in whose name this Debt Security (or one or more Predecessor Securities, as defined
in said Indenture) is registered at the close of business on the Record Date
for such interest installment, which shall be the close of business on the 15th
day next preceding such Interest Payment Date. Any such interest installment
not punctually paid or duly provided for shall forthwith cease to be payable to
the registered holders on such Record Date and may be paid to the Person in
whose name this Debt Security (or one or more Predecessor Debt Securities) is
registered at the close of business on a special record date to be fixed by the
Trustee for the payment of such defaulted interest, notice whereof shall be
given to the registered holders of the Debt Securities not less than 10 days
prior to such special record date, all as more fully provided in the Indenture.
The principal of and interest on this Debt Security shall be payable at the
office or agency of the Trustee (or other paying agent appointed by the
Company) maintained for that purpose in any coin or currency of the United
States of America that at the time of payment is legal tender for payment of
public and private debts; provided, however, that payment of
interest may be made at the option of the Company by check mailed to the
registered holder at such address as shall appear in the Debt Security Register
or by wire transfer to an account appropriately designated by the holder
hereof. Notwithstanding the foregoing, so long as the holder of this Debt
Security is the Institutional Trustee, the payment of the principal of and
interest on this Debt Security will be made in immediately available funds at
such place and to such account as may be designated by the Trustee.

So long as no Event of Default has occurred and is
continuing, the Company shall have the right, from time to time, to defer
payments of interest on the Debt Securities by extending the interest payment
period on the Debt Securities at any time and from time to time during the term
of the Debt Securities, for up to 10 consecutive semi-annual periods (each such
extended interest payment period, an “Extension Period”), during which
Extension Period no interest shall be due and payable. During any Extension
Period, interest will continue to accrue on the Debt Securities and interest on
such accrued interest (such accrued interest and interest thereon referred to
herein as “Deferred Interest”) will accrue at the Interest Rate, compounded
semi-annually from the date such Deferred Interest would have been payable were
it not for the Extension Period, both 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 rate 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 interest or
premium, if any, on or repay, repurchase or redeem any debt securities of the
Company that rank pari passu in all
respects with or junior in interest to the Debt Securities (other than (a)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Company 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, in connection with a dividend reinvestment or
stockholder stock purchase plan or in connection with the issuance of capital
stock of the Company (or securities convertible into or exercisable for such
capital stock) as consideration in an acquisition transaction entered into
prior to the applicable Extension Period, (b) as a result of any exchange or
conversion of any class or series of the Company’s capital stock (or any
capital stock of a subsidiary of the Company) for any class or series of the
Company’s capital stock or of any class or series of the Company’s indebtedness
for any class or series of the Company’s capital stock, (c) the purchase of
fractional interests in shares of the Company’s capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged, (d) any declaration of a dividend in connection with
any stockholder’s rights plan, or the issuance of rights, stock or other
property under any stockholder’s rights plan, or the redemption or repurchase
of rights pursuant thereto, or (e) any dividend in the form of stock, warrants,
options or other rights where the dividend stock or the stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari
passu with or junior to such stock). Prior to the termination of any
Extension Period, the Company may further extend such period, provided that
such period together with all such previous and further consecutive extensions
thereof shall not exceed 10 consecutive semi-annual periods, or extend beyond
the Maturity 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 each installment of interest that would otherwise have been due and payable
during such Extension Period shall bear Deferred Interest. The Company must
give the Trustee notice of its election to begin such Extension Period at least
one Business Day prior to the earlier of (i) the date interest on the Debt
Securities would have been payable except for the election to begin

such Extension Period or (ii) the date such interest is payable, but in
any event not less than one Business Day prior to such record date.

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

This Debt Security shall not
be entitled to any benefit under the Indenture hereinafter referred to, 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.

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

	
  

  	
  COMMUNITY BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ L. BRUCE MILLS, JR.

  	
   

  
	
   

  	
   

  	
  Name: L. BRUCE MILLS, JR.

  
	
   

  	
   

  	
  Title: CORPORATE SECRETARY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:  March 23, 2000

  	
   

  	
   

  

 

CERTIFICATE
OF AUTHENTICATION 

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

	
  

  	
  THE BANK OF NEW
  YORK, as the

  Institutional Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Annette L.
  Kos

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  	
   

  

 

[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 March 23, 2000, duly executed and
delivered between the Company and The Bank of New York, 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 (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 8 or September 8 on or after March 8, 2010 (a “Redemption
Date”), at the Redemption Price.

Any redemption pursuant to the preceding paragraph
will be made, subject to the receipt by the Company of prior approval from the
Board of Governors of the Federal Reserve System (the “Federal Reserve”) if
then required under applicable capital guidelines or policies of the Federal
Reserve, 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 prorata or
by lot or by any other method utilized by the Trustee.

“Redemption Price” means the price set forth in the
following table for any Redemption Date or Special Redemption Date that occurs
within the twelve-month period beginning in the relevant year indicated below,
expressed in percentage of the principal amount of the Debt Securities being
redeemed:

 

 

	
  Year Beginning

  	
   

  	
  Percentage

  
	
   

  	
   

  	
   

  
	
  March 8, 2010

  	
   

  	
  105.438

  
	
   

  	
   

  	
   

  
	
  March 8, 2011

  	
   

  	
  104.894

  
	
   

  	
   

  	
   

  
	
  March 8, 2012

  	
   

  	
  104.350

  
	
   

  	
   

  	
   

  
	
  March 8, 2013

  	
   

  	
  103.806

  
	
   

  	
   

  	
   

  
	
  March 8, 2014

  	
   

  	
  103.263

  
	
   

  	
   

  	
   

  
	
  March 8, 2015

  	
   

  	
  102.719

  
	
   

  	
   

  	
   

  
	
  March 8, 2016

  	
   

  	
  102.175

  
	
   

  	
   

  	
   

  
	
  March 8, 2017

  	
   

  	
  101.631

  
	
   

  	
   

  	
   

  
	
  March 8, 2018

  	
   

  	
  101.088

  
	
   

  	
   

  	
   

  
	
  March 8, 2019

  	
   

  	
  100.544

  
	
   

  	
   

  	
   

  
	
  March 8, 2020 and after

  	
   

  	
  100.000

  

 

plus accrued and unpaid interest on such Debentures to
the Redemption Date or in the case of a redemption due to the occurrence of a Special
Event, to the Special Redemption Date.

“Special Redemption Price” means (1) if the Special
Redemption Date is before March 8, 2010, the greater of (a) 100% of the
principal amount of the Debt Securities being redeemed pursuant to Section
10.02 of the Indenture and (b) as determined by a Quotation Agent, the sum of
the present values of scheduled payments of principal and interest over the
Remaining Life of  such Debt
Securities, discounted to the Special Redemption Date on a semi­annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 0.45%, plus, in the case of either (a) or (b), accrued and unpaid
interest on such Debt Securities to the Special Redemption Date and (2) if the
Special Redemption Date is on or after March 8, 2010, the Redemption Price for
such Special Redemption Date.

“Comparable Treasury Issue” mean with respect to any
Special Redemption Date the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the Remaining Life that
would be utilized, at the time of selection and in accordance with customary
financial practice in pricing new issues of corporate debt securities of
comparable maturity to the Remaining Life. If no United States Treasury security
has a maturity which is within a period from three months before to three
months after March 8, 2010, the two most closely corresponding United States
Treasury securities shall be used as the Comparable Treasury Issue, and the
Treasury Rate shall be interpolated or extrapolated on a straight-line basis,
rounding to the nearest month using such securities.

“Comparable Treasury Price” means (a) the average of
five Reference Treasury Dealer Quotations for such Redemption Date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or
(b) if the Trustee obtains fewer than five such Reference Treasury Dealer
Quotations, the average of all such Quotations.

“Primary Treasury Dealer” shall mean a primary United
States Government securities dealer in New York City.

“Quotation Agent” means Salomon Smith Barney, Inc. and
its successors; provided, however, that if the foregoing shall cease to be a
primary United States Government securities dealer in New York City (a “Primary
Treasury Dealer”), the Company shall substitute therefor another Primary
Treasury Dealer.

“Reference Treasury Dealer” means (i) the Quotation
Agent and (ii) any other Primary Treasury Dealer selected by the Trustee after
consultation with the Corporation.

“Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any Special Redemption Date, the
average, as determined by the Trustee, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a

percentage of its principal amount) quoted in writing to the Trustee by
such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third
Business Day preceding such Special Redemption Date.

“Treasury Rate” means (i) the yield, under the heading
which represents the average for the week immediately prior to the date of
calculation, appearing in the most recently published statistical release
designated H.I5 (519) or any successor publication which is published weekly by
the Federal Reserve and which establishes yields on actively traded United
States Treasury securities adjusted to constant maturity under the caption “Treasury
Constant Maturities”, for the maturity corresponding to the Remaining Life (if
no maturity is within three months before or after the Remaining Life, yields
for the two published maturities most closely corresponding to the Remaining
Life shall be determined and the Treasury Rate shall be interpolated or
extrapolated from such yields on a straight-line basis, rounding to the nearest
month) or (ii) if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields,
the rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such  Special
Redemption Date. The Treasury Rate shall be calculated on the third Business
Day preceding the Special Redemption Date.

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

In case an Event of Default, as defined in the
Indenture, shall have occurred and be continuing, the principal of all of the
Debt Securities may be declared due and payable, and upon such declaration of
acceleration shall become due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

The Indenture contains provisions permitting the
Company and the Trustee, with the consent of the holders of not less than a
majority in aggregate principal amount of the Debt Securities at the time
outstanding affected thereby, as specified in the Indenture, to execute
supplemental indentures for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or of modifying in any manner the rights of the holders
of the Debt Securities; provided, however, that no such
supplemental indenture shall, among other things, without the consent of the
holders of each Debt Security then outstanding and affected thereby (i) extend
the fixed maturity of the Debt Securities, or reduce the principal amount
thereof or any redemption premium thereon, or reduce the rate or extend the
time of payment of interest thereon, or make the principal of, or interest or
premium on, the Debt Securities payable in any coin or currency other than that
provided in the Debt Securities, or impair or affect the right of any holder of
Debt Securities to institute suit for the payment thereof, or (ii) reduce the
aforesaid percentage of Debt Securities, the holders of which are required to
consent to any such supplemental indenture. The Indenture also contains
provisions permitting the holders of a majority in aggregate principal amount
of the Debt Securities at the time outstanding affected thereby as provided in
the Indenture, on behalf of all of the holders of the Debt Securities, to waive
any past default in the performance of any of the covenants contained in the
Indenture, or established pursuant to the Indenture, and its

consequences, except a default in the payment of the principal of or
premium, if any, or interest on any of the Debt Securities. Any such consent or
waiver by the registered holder of this Debt Security (unless revoked as
provided in the Indenture) shall be conclusive and binding upon such holder and
upon all future holders and owners of this Debt Security and of any Debt
Security issued in exchange herefor or in place hereof (whether by registration
of transfer or otherwise), irrespective of whether or not any notation of such
consent or waiver is made upon this Debt Security.

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

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

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

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

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

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

THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE
INDENTURE AND THE DEBT SECURITIES, WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES THEREOF.

EXHIBIT E

PLACEMENT AGREEMENT

 E-1

COMMUNITY (CA) CAPITAL TRUST I

$10,000,000 

11% Fixed Rate Capital Trust Pass-Through Securities® (TruPS)®

Fully and Unconditionally Guaranteed as to Distributions

and Other Payments by

Community Bancorp Inc.

PLACEMENT AGREEMENT

New York, New York 

As of March 9, 2000

Salomon Smith Barney Inc.

388 Greenwich Street

New York, New York 10013

 

Ladies
and Gentlemen:

Community Bancorp Inc., a bank holding company
incorporated in Delaware (the “Company”) and Community (CA) Capital Trust I, a
Delaware statutory business trust (the “Trust”), propose, subject to the terms
and conditions stated herein, to issue and sell $10,000,000 of 11% Fixed Rate
Capital Trust Pass-through Securities® of
the Trust, having a stated liquidation amount of $1,000 per capital security (the
“Capital Securities”). Salomon Smith Barney Inc. is acting as the exclusive
agent of the Company and the Trust in connection with the offering of the
Capital Securities.

The Capital Securities will be fully and
unconditionally guaranteed on a subordinated basis by the Company with respect
to distributions and amounts payable upon liquidation, redemption or repayment
(the “Guarantee”) pursuant to the Guarantee Agreement (the “Guarantee Agreement”),
to be dated as of the Closing Date specified in Section 3 hereof and executed
and delivered by the Company and The Bank of New York, as trustee (the “Guarantee
Trustee”), for the benefit of the holders from time to time of the Capital
Securities. The entire proceeds from the sale of the Capital Securities will be
combined with the entire proceeds from the sale by the Trust to the Company of
its common securities (the “Common Securities”), and will be used by the Trust
to purchase $10,310,000 in principal amount of the Fixed Rate Junior
Subordinated Deferrable Interest Debentures due 2030 of the Company (the “Subordinated
Debt Securities”). The Capital Securities and the Common Securities for the
Trust will be issued pursuant to the Amended and Restated Declaration of Trust
(the “Declaration”), to be dated as of the Closing Date among the Company, as
sponsor, the Administrator(s) named therein (the “Administrators”), The Bank of
New York (Delaware), a Delaware corporation (the “Delaware Trustee”), The Bank
of New York (the “Institutional Trustee”), and the holders from time to time of
undivided beneficial interests in the assets of the

Trust. The Subordinated Debt Securities will be issued pursuant to an
Indenture, to be dated as of the Closing Date (the “Indenture”), between the
Company and The Bank of New York, as trustee (the “Indenture Trustee”).

The Capital Securities, the Common Securities and the
Subordinated Debt Securities are collectively referred to herein as the “Securities.”
This Agreement, the Indenture, the Declaration, the Guarantee Agreement and the
Securities are referred to collectively as the “Operative Documents.”
Capitalized terms used herein without definition have the respective meanings
specified in the Declaration.

The Securities have not been and will not be
registered under the Securities Act of 1933, as amended (the “Securities Act”).

1.         Representations
and Warranties. The Company and the Trust jointly and severally represent
and warrant to, and agree with you as set forth below in this Section 1.

(a)       Neither
the Company nor the Trust, nor any of their Affiliates (as defined in Rule
501(b) of Regulation D under the Securities Act (“Regulation D”)), nor any
person acting on its or their behalf has, directly or indirectly, made offers
or sales of any security, or solicited offers to buy any security, under
circumstances that would require the registration of any of the Securities
under the Securities Act.

(b)       Neither
the Company nor the Trust, nor any of their Affiliates, nor any person acting
on its or their behalf has engaged in any form of general solicitation or
general advertising (within the meaning of Regulation D) in connection with any
offer or sale of any of the Securities.

(c)       The
Securities satisfy the eligibility requirements of Rule 144A(d)(3) under the
Securities Act.

(d)       Neither
the Company nor the Trust, nor any of their Affiliates, nor any person acting
on its or their behalf, has engaged or will engage in any directed selling
efforts with respect to the Securities within the meaning of Regulation S.

(e)       Neither
the Company nor the Trust is an “investment company” or an entity “controlled”
by an “investment company,” in each case within the meaning of Section 3(a) of
the Investment Company Act of 1940, as amended (the “Investment Company Act”)
without regard to Section 3(c) of the Investment Company Act.

(f)        Neither
the Company nor the Trust has paid or agreed to pay to any person any
compensation for soliciting another to purchase any of the Securities.

(g)       The
Trust has been duly created and is validly existing in good standing as a
business trust under the Delaware Business Trust Act, 12 Del. C. 3801, et seq.
(the “Business Trust Act”) with the power and authority to own property and to
conduct the business it transacts and proposes to transact and to enter into
and perform its obligations under the Operative Documents. The Trust is duly
qualified to transact business as a foreign entity and is in good standing in
each jurisdiction in which such qualification is necessary, except where the
failure to

 2
 

so qualify or be in good standing would not have a material adverse
effect on such Trust. The Trust is not a party to or otherwise bound by any
agreement other than the Operative Documents. The Trust is and will, under
current law, be classified for federal income tax purposes as a grantor trust
and not as an association taxable as a corporation.

(h)       The
Declaration has been duly authorized by the Company and, on the Closing Date,
will have been duly executed and delivered by the Company and the
Administrators of the relevant Trust, and, assuming due authorization,
execution and delivery by the Delaware Trustee and the Institutional Trustee,
be a valid and binding obligation of the Company and such Administrators,
enforceable against them in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally
and to general principles of equity (“Bankruptcy and Equity”). Each of the
Administrators of the Trust is an employee of the Company and has been duly
authorized by the Company to execute and deliver the Declaration.

(i)        Each
of the Guarantee Agreement and the Indenture has been duly authorized by the
Company and, on the Closing Date will have been duly executed and delivered by
the Company, and, assuming due authorization, execution and delivery by the
Guarantee Trustee, in the case of the Guarantee, and by the Indenture Trustee,
in the case of the Indenture, be a valid and binding obligation of the Company
enforceable against it in accordance with its terms, subject to Bankruptcy and
Equity.

(j)        The
Capital Securities and the Common Securities have been duly authorized by the
Declaration and, when issued and delivered against payment therefore on the
Closing Date to you, in the case of the Capital Securities, and to the Company,
in the case of the Common Securities, will be validly issued and represent
undivided beneficial interests in the assets of the Trust. The issuance of none
of the Capital Securities or the Common Securities is subject to preemptive or
other similar rights. On the Closing Date, all of the issued and outstanding
Common Securities will be directly owned by the Company free and clear of any
pledge, security interest, claim, lien or other encumbrance.

(k)       The
Subordinated Debt Securities have been duly authorized by the Company and, at
the Closing Date, will have been duly executed and delivered to the Indenture
Trustee for authentication in accordance with the Indenture, and, when
authenticated in the manner provided for in the Indenture and delivered against
payment therefore by the Trust, will constitute valid and binding obligations
of the Company entitled to the benefits of the Indenture enforceable against
the Company in accordance with their terms, subject to Bankruptcy and Equity.

(l)        This
Agreement has been duly authorized, executed and delivered by the Company and
the Trust.

(m)      The
Trust is not in violation of the Declaration or any provision of the Business
Trust Act. The execution, delivery and performance of the Operative Documents
to which it is a party by the Company or Trust, and the consummation of the
transactions contemplated herein or therein, will not conflict with or
constitute a breach of, or a default under, or result in the creation or
imposition of any lien, charge or other encumbrance upon any

 3
 

property or assets of the Trust, the Company or any of the Company’s
subsidiaries pursuant to any contract, indenture, mortgage, loan agreement,
note, lease or other instrument to which the Trust, the Company or any of its
subsidiaries is a party or by which it or any of them may be bound, or to which
any of the property or assets of any of them is subject, except for a conflict,
breach, default, lien, charge or encumbrance which could not reasonably be
expected to have an adverse effect on the consummation of the transactions
contemplated herein or therein, nor will such action result in any violation of
the Declaration or the Business Trust Act or require the consent, approval,
authorization or order of any court or governmental agency or body.

(n)       The
Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of Delaware, with all requisite corporate power
and authority to own its properties and conduct the business it transacts and
proposes to transact, and is duly qualified to transact business and is in good
standing as a foreign corporation in each jurisdiction where the nature of its
activities requires such qualification except where the failure of the Company
to be so qualified would not, singly or in the aggregate, have a materially
adverse effect on the condition (financial or otherwise), earnings or business
of the Company and its subsidiaries taken as a whole, whether or not occurring
in the ordinary course of business (a “Material Adverse Effect”).

(o)       Each of
the Company’s significant subsidiaries listed in Exhibit 1 (the “Subsidiaries”)
has been duly incorporated and is validly existing as a corporation in good
standing under the laws of the jurisdiction in which it is chartered or organized,
with all requisite corporate power and authority to own its properties and
conduct the business it transacts and proposes to transact, and is duly
qualified to transact business and is in good standing as a foreign corporation
in each jurisdiction where the nature of its activities requires such
qualification except where the failure of such Subsidiary to be so qualified
would not, singly or in the aggregate, have a Material Adverse Effect.

(p)       The
Company and each of its Subsidiaries have all requisite power and authority,
and all necessary material authorizations, approvals, orders, licenses,
certificates and permits of and from regulatory or governmental officials,
bodies and tribunals, to own or lease their respective properties and to
conduct their respective businesses as now being conducted, and neither the
Company nor any of the Subsidiaries has received any notice of proceedings
relating to the revocation or modification of any such authorizations,
approvals, orders, licenses, certificates or permits which, singly or in the
aggregate, if the failure to be so licensed or approved or if the subject of an
unfavorable decision, ruling or finding, would have a Material Adverse Effect;
and the Company and its Subsidiaries are in compliance with all applicable
laws, rules, regulations and orders and consents, the violation of which would
have a Material Adverse Effect.

(q)       The
audited consolidated financial statements (including the notes thereto) and
schedules of the Company and its consolidated subsidiaries for December 31,
1998 (the “Financial Statements”) and the interim unaudited consolidated
financial statements of the Company and its consolidated subsidiaries for
September 30, 1999 (the “Interim Financial Statements”) provided to you are the
most recent available audited and unaudited consolidated financial statements
of the Company and its consolidated subsidiaries, respectively, and fairly
presents in all material respects, in accordance with generally accepted
accounting principles, the

 4
 

financial position of the Company and its consolidated subsidiaries,
and the results of operations and changes in financial condition as of the
dates and for the periods therein specified, subject, in the case of Interim
Financial Statements, to year-end adjustments. Such consolidated financial
statements and schedules have been prepared in accordance with generally
accepted accounting principles consistently applied throughout the periods
involved (except as otherwise noted therein).

(r)        The
Company’s report on FRY-9C dated December 31, 1999 (the “FRY-9C”) provided to
you is the most recent available such report and the information therein fairly
presents in all material respects the financial position of the Company and its
subsidiaries.

(s)       Since
the respective dates of the Financial Statements, Interim Financial Statements
and the FRY-9C, and since the matters disclosed in the Company’s press releases
of February 23, 2000 and March 7, 2000, there has been no material adverse
change or development with respect to the financial condition or earnings of
the Company and its subsidiaries, taken as a whole.

(t)        Neither
the Company nor any of the Subsidiaries is in violation of its respective
charter or by-laws or similar organizational documents or in default in the performance
or observance of any obligation, agreement, covenant or condition contained in
any contract, indenture, mortgage, loan agreement, note, lease or other
agreement or instrument to which the Company or any of the Subsidiaries is a
party or by which it or any of them may be bound or to which any of the
property or assets of the Company or any of the Subsidiaries is subject, the
effect of which violation or default in performance or observance would have a
Material Adverse Effect.

(u)       The
Company is duly registered as a bank holding company under the Bank Holding
Company Act of 1956, as amended (the “Bank Holding Company Act”), and the
regulations of the Board of Governors of the Federal Reserve System (the “Federal
Reserve”), and the deposit accounts of the Company’s subsidiary banks are
insured by the Federal Deposit Insurance Corporation (“FDIC”) to the fullest
extent permitted by law and the rules and regulations of the FDIC, and no
proceeding for the termination of such insurance are pending or threatened.

2.         Sale
of the Capital Securities. Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
and the Trust jointly and severally hereby appoint you as placement agent (the “Placement
Agent”), and you hereby accept such appointment, to act as the exclusive agent
of the Company and the Trust, in connection with the offering of the Capital
Securities contemplated hereby, for the purpose of soliciting offers and sales
of the Capital Securities.

The Placement Agent shall solicit offers to purchase
Capital Securities in connection with the offering contemplated hereby. The
Placement Agent shall use its best efforts, subject to the terms and conditions
of this Agreement, to procure subscribers for the Capital Securities with an
aggregate stated liquidation amount of $10,000,000 at a purchase price equal to
100% of the stated liquidation amount thereof. The Placement Agent shall not,
in

 5
 

fulfilling its obligations hereunder, act as an underwriter for the
Capital Securities and is in no way obligated, directly or indirectly, to
advance its own funds to purchase any Capital Securities.

If the sale and delivery of the Capital Securities as
provided herein is consummated, the Company will pay to the Placement Agent on
the Closing Date a commission per Capital Security equal to 3% of the stated
liquidation amount thereof. Any payment pursuant to this Section 2 shall be
made by wire transfer in immediately available funds to the U.S. account
designated in writing by the party entitled to receive such payment.

The dividend rate of the Capital Securities, as of the
date hereof, is 11%. Under certain circumstances, the dividend rate of the
Capital Securities may be reduced pursuant to a written agreement between you
and the Company made prior to the Closing Date.

3.         Delivery
and Payment. Delivery of and payment for the Capital Securities shall be
made at 10:00 AM, New York City time, on March 23, 2000, or such later date as
you shall designate, which date and time may be postponed by agreement between
you, on the one hand, and the Company and the Trust, on the other hand (such
date and time of delivery and payment for the Capital Securities being herein
called the “Closing Date”).

Delivery of the Capital Securities shall be made at
such location, and in such names and denominations, as you shall designate at
least one business day in advance of the Closing Date. The Company and the
Trust agree to have the Capital Securities available for inspection and checking
by you in New York, New York, not later than 1:00 PM on the business day prior
to the Closing Date. The closing for the purchase and sale of the Capital
Securities shall occur at the offices of Cleary, Gottlieb, Steen &
Hamilton, One Liberty Plaza, New York, NY 10006, or such other place as the
parties hereto shall agree.

4.         Representations.
You represent to the Company and the Trust that:

(a)       You are
aware that the Securities have not been and will not be registered under the
Securities Act and may not be offered or sold within the United States or to
U.S persons except in accordance with Rule 903 of Regulation S under the
Securities Act or pursuant to an exemption from the registration requirements
of the Securities Act. You will not offer, sell or arrange for the offer or
sale of any Securities to purchasers (“Purchasers”) except in privately
negotiated transactions that will not require registration of the Securities
under the Securities Act. Terms used in the first sentence of this subsection
(a) have the meanings given to them by Regulation S under the Securities Act.

(b)       You
have not offered or sold or and will not arrange for the offer or sale of the
Capital Securities except (i) in an offshore transaction complying with Rule
903 of Regulation S under the Securities Act, (ii) to those you reasonably
believe are qualified institutional buyers (as defined in Rule 144A under the
Securities Act) and that in connection with each such sale, you have taken or
will take reasonable steps to ensure that the purchaser of any Capital
Securities is aware that such sale is being made in reliance on Rule 144A or
(iii) to “accredited investors” (as defined in Rule 501(a)(l), (2), (3) or (7)
of Regulation D) who provide to you and to the Company a letter in the form set
out in the Declaration.

 6
 

(c)       You
represent and agree that you and each of your Affiliates has not entered, and
will not enter into any contractual arrangement with respect to the
distribution of the Securities except with the prior written consent of the Company

(d)       Neither
you, nor any of your Affiliates, nor any person acting on your or their behalf
has engaged, or will engage, in any form of general solicitation or general
advertising (within the meaning of Regulation D) in connection with any offer
or sale of the Securities.

(e)       Neither
you nor any or your Affiliates, nor any person acting on your or their behalf,
has engaged or will engage in any directed selling efforts within the meaning
of Regulation S under the Securities Act with respect to the Securities.

5.         Agreements.
The Company and the Trust agree with the Placement Agent that:

(a)       The
Company and the Trust will arrange for the qualification of the Capital
Securities for sale under the laws of such jurisdictions as you may designate
and will maintain such qualifications in effect so long as required for the
sale of the Capital Securities. The Company or the Trust, as the case may be,
will promptly advise you of the receipt by the Company or the Trust, as the
case may be, of any notification with respect to the suspension of the
qualification of the Capital Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose.

(b)       Neither
the Company nor the Trust will, nor will either of them permit any of its
Affiliates to, resell any Capital Securities that have been acquired by any of
them.

(c)       Neither
the Company nor the Trust will, nor will either of them permit any of its
Affiliates, nor any person acting on its or their behalf, to, directly or
indirectly, make offers or sales of any security, or solicit offers to buy any
security, under circumstances that would require the registration of any of the
Securities under the Securities Act.

(d)       Neither
the Company nor the Trust will, nor will either of them permit any of its
Affiliates, nor any person acting on its or their behalf, to, engage in any
form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with any offer or sale of the any of the
Securities.

(e)       Neither
the Company nor the Trust will, nor will either of them permit any of its
Affiliates, nor any person acting on its or their behalf to engage in any
directed selling efforts within the meaning of Regulation S under the
Securities Act with respect to the Securities.

(f)        So
long as any of the Securities are outstanding and are “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, each of the
Company and the Trust will, during any period in which it is not subject to and
in compliance with Section 13 or 15(d) of the Exchange Act or it is not exempt
from such reporting requirements pursuant to and in compliance with Rule
12g3-2(b) under the Exchange Act, provide to each holder of such restricted
securities and to each prospective purchaser (as designated by such holder) of
such

 7
 

restricted securities, upon the request of such holder or prospective
purchaser, any information required to be provided by Rule 144A(d)(4) under the
Securities Act. This covenant is intended to be for the benefit of the holders,
and the prospective purchasers designated by such holders, from time to time of
such restricted securities. The information provided by the Company and the
Trust pursuant to this Section 5(f) hereof will not, at the date thereof,
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

(g)       Neither
the Company nor the Trust will, until 180 days following the Closing Date,
without your prior written consent, offer, sell, contract to sell, grant any
option to purchase or otherwise dispose of, directly or indirectly, (i) any
Capital Securities or other securities of the Trust other than as contemplated
by this Agreement, (ii) any securities that are substantially similar to the
Securities or (iii) any other securities convertible into, or exercisable or
exchangeable for, any of (i) or (ii), or enter into an agreement, or announce
an intention, to do any of the foregoing.

(h)       The
Company agrees to pay (i) the costs incident to the authorization, issuance,
sale and delivery of the Capital Securities and any taxes payable in that
connection; (ii) the fees and expenses of qualifying the Capital Securities
under the securities laws of the several jurisdictions as provided in Section
5(a); and (iii) the fees and expenses of the Institutional Trustee (as defined
in the Declaration), the Guarantee Trustee and the Indenture Trustee.

6.         Conditions
to Your Obligations. Your obligations to use your best efforts to procure
subscription and payment for the Capital Securities shall be subject to the
accuracy of the representations and warranties on the part of the Company and
the Trust contained herein as of the date and time that this Agreement is
executed (the “Execution Time”) and the Closing Date, to the accuracy of the
statements of the Company and the Trust made in any Capital Securities pursuant
to the provisions hereof, to the performance by the Company and the Trust of
their obligations hereunder and to the following additional conditions:

(a)       The
Company shall have furnished to you the opinion of Reitner & Stuart,
special counsel to the Company, dated the Closing Date, addressed to you to, in
substantially the form set out in Annex A hereto.

(b)       The
Company shall have furnished to you the opinion of Rosenman & Colin, LLP,
special tax counsel to the Company, dated the Closing Date, containing such
assumptions, qualifications and limitations as shall be reasonably acceptable
to you and your counsel to the effect that for U.S. federal income tax
purposes, the Subordinated Debt Securities will constitute indebtedness of the
Company.

(c)       You
shall have received the opinion of Stradley, Ronon, Stevens & Young, LLP,
special Delaware counsel for the Company and the Trust, dated the Closing Date,
addressed to you, in substantially the form set out in Annex B hereto.

 8
 

(d)       You
shall have received the opinion of White & Case, LLP, counsel for the
Guarantee Trustee, the Institutional Trustee and the Indenture Trustee, dated
the Closing Date addressed to you, in substantially the form set out in Annex C
hereto.

(e)       You shall have received the opinion of Richards, Layton &
Finger, counsel for the Delaware Trustee, dated the Closing Date, addressed to
you, in substantially the form set out in Annex D hereto.

(f)        The Company shall have furnished to you a certificate of the
Company, signed by a Vice President and by a Treasurer or Chief Financial
Officer of the Company, dated the Closing Date, to the effect that:

(i)        the
representations and warranties of the Company and the Trust in this Agreement
are true and correct in all material respects on and as of the Closing Date
with the same effect as if made on the Closing Date, and the Company and the
Trust have complied with all the agreements and satisfied all the conditions on
either of their part to be performed or satisfied at or prior to the Closing
Date; and

(ii)       since the date of the most recent financial statements provided
to you and since the matters disclosed in the Company’s press releases of
February 23, 2000 and March 7, 2000, there has been no material adverse change
in the condition (financial or other), earnings, business or properties of the
Company and its subsidiaries, whether or not arising from transactions in the
ordinary course of business.

(g)       Subsequent to the Execution Time there shall not have been any
change, or any development involving a prospective change, in or affecting the
business or properties of the Company and its subsidiaries the effect of which,
is, in your judgment, so material and adverse as to make it impractical or
inadvisable to proceed with the offering or delivery of the Capital Securities.

(h)       Prior to the Closing Date, the Company and the Trust shall
have furnished to you such further information, certificates and documents as
you may reasonably request.

(i)        At the Closing Date, each of the Operative Documents shall
have been duly authorized, executed and delivered by each party thereto, and
copies thereof shall have been delivered to you.

If any of the conditions
specified in this Section 6 shall not have been fulfilled in all material
respects when and as provided in this Agreement, or if any of the opinions,
certificates and documents mentioned above or elsewhere in this Agreement shall
not be in all material respects reasonably satisfactory in form and substance
to you, this Agreement and all your obligations hereunder may be canceled at,
or at any time prior to, the Closing Date by you. Notice of such cancellation
shall be given to the Company and the Trust in writing or by telephone or
telegraph confirmed in writing.

7.         Reimbursement of Your Expenses. If the sale of the
Capital Securities provided for herein is not consummated because any condition
to set forth in Section 6 hereof is not satisfied, because of any termination
pursuant to Section 9 hereof or because of any refusal,

 9
 

inability or failure on the part of the Company or the Trust to perform
any agreement herein or comply with any provision hereof, the Company will
reimburse you upon demand for all out-of-pocket expenses (including reasonable
fees and disbursements of counsel) that shall have been incurred by you in
connection with the proposed offering of the Capital Securities.

8.         Indemnification.
(a) The Company and the Trust agree jointly and severally to indemnify and hold
harmless you and your directors, officers, employees and agents and each person
who controls you within the meaning of either the Securities Act or the
Exchange Act against any and all losses, claims, damages or liabilities, joint
or several, to which they or any of them may become subject under the
Securities Act, the Exchange Act or other Federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained
in any information (whether oral or written) or documents furnished or made
available to you in connection with the transactions contemplated herein, or
arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and agrees to reimburse each such
indemnified party, as incurred, for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action. This indemnity agreement will be in
addition to any liability which the Company or the Trust may otherwise have.

(b)       The
Company agrees to indemnify the Trust against all loss, liability, claim,
damage and expense whatsoever, as due from the Trust under Section 8(a)
hereunder.

(c)       Promptly
after receipt by an indemnified party under this Section 8 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 8,
notify the indemnifying party in writing of the commencement thereof; but the
failure so to notify the indemnifying party (i) will not relieve the
indemnifying party from liability under paragraph (a), above unless and to the
extent that the indemnifying party did not otherwise learn of such action and
such failure results in the forfeiture by the indemnifying party of substantial
rights and defenses and (ii) will not, in any event, relieve the indemnifying
party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) above. The indemnifying
party shall be entitled to appoint counsel of the indemnifying party’s choice
at the indemnifying party’s expense to represent the indemnified party in any
action for which indemnification is sought (in which case the indemnifying
party shall not thereafter be responsible for the fees and expenses of any
separate counsel retained by the indemnified party or parties except as set
forth below); provided, however, that such counsel shall be
satisfactory to the indemnified party. Notwithstanding the indemnifying party’s
election to appoint counsel to represent the indemnified party in an action,
the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest, (ii) the actual or potential
defendants in, or targets of, any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be legal defenses available to it and/or
other indemnified

 10
 

parties which are different from or additional to those available to
the indemnifying party, (iii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of the institution of such action
or (iv) the indemnifying party shall authorize the indemnified party to employ
separate counsel at the expense of the indemnifying party. An indemnifying
party will not, without the prior written consent of the indemnified parties,
settle or compromise or consent to the entry of any judgment with respect to
any pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding.

9.         Termination.
This Agreement shall be subject to termination in the absolute discretion of
you, by notice given to the Company and the Trust prior to delivery of and
payment for the Capital Securities, if prior to such time (i) trading in any of
the Company’s securities shall have been suspended by the Commission or the
National Association of Securities Dealers or trading in securities generally
on the New York Stock Exchange shall have been suspended or limited or minimum
prices shall have been established on such Exchange, (ii) a banking moratorium
shall have been declared either by Federal or California authorities or (iii)
there shall have occurred any outbreak or escalation of hostilities,
declaration by the United States of a national emergency or war or other
calamity or crisis the effect of which on financial markets is such as to make
it, in your judgment, impracticable or inadvisable to proceed with the offering
or delivery of the Capital Securities.

10.       Representations
and Indemnities to Survive. The respective agreements, representations,
warranties, indemnities and other statements of the Company and the Trust or
their respective officers or trustees and of you set forth in or made pursuant
to this Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of you, the Company or the Trust or any of
the officers, directors or trustees, administrators, controlling persons, and
will survive delivery of and payment for the Capital Securities. The provisions
of Sections 7 and 8 hereof shall survive the termination or cancellation of
this Agreement.

11.       Notices.
All communications hereunder will be in writing and effective only on receipt,
and, if sent to you, will be mailed, delivered or telegraphed and confirmed to
at 388 Greenwich Street, New York, New York 10013, attention of the Legal
Department; if sent to the Company or the Trust, will be mailed, delivered or
telegraphed and confirmed to it at 130 W. Fallbrook Street, Fallbrook,
California 92028, Attention: Thomas E. Swanson, President and Chief Executive
Officer.

12.       Successors.
This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers and directors and
controlling persons, and no other person will have any right or obligation
hereunder.

13.       Applicable
Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS
OF LAW.

 11
 

If the foregoing is in accordance with your
understanding of our agreement, please sign and return to us the enclosed
duplicate hereof, whereupon this letter and your acceptance shall represent a
binding agreement among the Company, the Trust and you.

	
  

  	
   

  	
  Very truly yours, 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Community Bancorp Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Swanson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Thomas E. Swanson 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Community (CA) Capital Trust I

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Swanson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Thomas E. Swanson 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Administrator

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ L. Bruce Mills, Jr.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: L. Bruce Mills, Jr. 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Administrator

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The foregoing Agreement is hereby

  confirmed and accepted as of the

  date first above written.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Salomon Smith Barney Inc.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Paul R.
  Bitler

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Paul R.
  Bitler

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  	
   

  	
   

  
								

 

 12
 

SCHEDULE 1

List of Significant Subsidiaries

Fallbrook National Bank

 13

ANNEX A

Pursuant to Section 6(a) of the Placement Agreement,
the special counsel of the Company shall deliver an opinion to the effect that:

(i)        each
of the Company and the Subsidiaries (A) has been duly incorporated and is
validly existing as a corporation in good standing under the laws of the
jurisdiction in which it is chartered or organized, with full corporate power
and authority to own its properties and conduct the business it transacts and
proposes to transact, (B) is duly qualified to do business as a foreign
corporation and is in good standing under the laws of each jurisdiction which
requires such qualification wherein it owns or leases material properties or
conducts material business, except where the failure to be so qualified would
not, singularly or in the aggregate, have a Material Adverse Effect, and (C)
holds all material approvals, authorizations, orders, licenses, certificates
and permits from governmental authorities necessary for the conduct of its
business, except where the failure to hold such approvals, authorizations,
orders, licenses, certificates and/or permits would not, singularly or in the
aggregate, have a Material Adverse Effect;

(ii)       no
consent, approval, authorization or order of any court or governmental agency
or body is required for the consummation of the transactions contemplated
herein or in the Operative Documents, in connection with the solicitation of
the purchase and sale of the Capital Securities by you or the purchase of the
Subordinated Debt Securities by the Trust except such approvals (specified in
such opinion) as have been obtained;

(iii)      neither
the issue and sale of the Capital Securities or the Subordinated Debt
Securities, the execution and delivery of the Operative Documents by the
Company or the Trust and the consummation of any other of the transactions
therein contemplated in any Operative Document nor the fulfillment of the terms
thereof will conflict with, result in a breach or violation of, or constitute a
default under any law or the charter or by-laws of the Company or any of its
Subsidiaries, the terms of any indenture or other agreement or instrument known
to such counsel and to which the Company or any of its Subsidiaries is a party
or bound or any judgment, order, decree, of any court, regulatory body,
administrative agency, governmental body or arbitrator having jurisdiction over
the Company or any of its Subsidiaries, or any provision of applicable law,
known to such counsel to be applicable to the Company or any of its
Subsidiaries, except for such conflicts, breaches, violations or defaults which
are not, in the aggregate, material to the Company and its subsidiaries taken
as a whole and which do not adversely affect the consummation of the
transactions contemplated in this Agreement and the Operative Documents;

(iv)      the
Company is duly registered as a bank holding company under the Bank Holding
Company Act and the regulations thereunder of the Federal Reserve, and the
deposit accounts of the Company’s banking subsidiaries are insured by the FDIC

to the fullest extent permitted by law and the rules and regulations of
the FDIC, and no proceeding for the termination of such insurance are pending
or threatened;

(v)       each of
the Indenture and the Guarantee Agreement has been duly authorized, executed
and delivered by the Company, and (in the case of the Indenture and the
Guarantee, respectively, assuming it is duly authorized, executed and delivered
by the Indenture Trustee and the Guarantee Trustee, respectively) constitutes a
legal, valid and binding instrument of the Company enforceable against the
Company in accordance with its terms, subject to Bankruptcy and Equity; the
Subordinated Debt Securities have been duly and validly authorized and
delivered to the Indenture Trustee for authentication in accordance with the
Indenture, when authenticated in accordance with the provisions of the
Indenture and delivered to and paid for by the relevant Trust, will constitute
legal, valid and binding obligations of the Company entitled to the benefits of
the Indenture and enforceable against the Company in accordance with its terms,
subject to Bankruptcy and Equity;

(vi)      this
Agreement has been duly authorized, executed and delivered by the Company;

(vii)     the
Declaration has been duly authorized, executed and delivered by the Company and
the Trust;

(viii)    this
Agreement has been duly executed and delivered by the Trust;

(ix)       neither
the Company nor the Trust is an “investment company” or an entity “controlled”
by an “investment company,” in each case within the meaning of Section 3(a) of
the Investment Company Act; and

(x)        assuming
the accuracy of the representations and warranties and compliance with the
agreements contained herein, no registration of any of the Securities under the
Securities Act is required for the offer and sale to you of the Capital
Securities in the manner contemplated by this Agreement, and the Indenture, the
Declaration and the Guarantee are not required to be qualified under the Trust
Indenture Act of 1939.

In rendering such opinions, such counsel may (A) state
that its opinion is limited to the laws of New York, the corporate laws of the
State of Delaware and the Federal laws of the United States and (B) rely as to
matters involving the application of laws of any jurisdiction other than New
York and Delaware or the United States, to the extent deemed proper and
specified in such opinion, upon the opinion of other counsel of good standing
believed to be reliable and who are satisfactory to you and as to matters of
fact, to the extent deemed proper, on certificates of responsible officers of
the Company and public officials.

 2

ANNEX B

Pursuant to Section 6(c) of the Placement Agreement,
Richards, Layton & Finger shall deliver an opinion in the following form.

(i)        The
Trust is a duly formed and validly existing statutory business trust in good
standing under the Business Trust Act of the State of Delaware with the
business trust power and authority to enter into and perform its obligations
under this Agreement, the Securities and the Declaration and to own property
and conduct its business as described in the Declaration.

(ii)       Under
the Delaware Business Trust Act and the Declaration, the execution and delivery
by the Trust of this Agreement, and the performance by the Trust of its
obligations hereunder, have been duly authorized by all necessary business
trust action on the part of the Trust.

(iii)      The
Declaration constitutes a valid and binding obligation of the Company and the
Trustees, enforceable against the Company and the Trustees, in accordance with
its terms, subject, as to enforcement, to the effect upon the Declaration of
(a) bankruptcy, insolvency, moratorium, receivership, liquidation, fraudulent
conveyance and transfer, reorganization and other similar laws relating to or
affecting the remedies and rights of creditors, (b) general principles of
equity (regardless of whether considered or applied in a proceeding in equity
or at law), (c) considerations of public policy or the effect of applicable law
relating to fiduciary duties, and (d) principles of course of dealing or course
of performance and standards of good faith, fair dealing, materiality or
reasonableness that may be applied by a court to the exercise of rights or
remedies.

(iv)      The
Common Securities have been duly authorized for issuance by the Trust and upon
issuance and delivery by the Trust to the Company against payment therefor as
described in the Declaration, will be duly and validly issued and will
represent duly issued beneficial interests in the Trust. The issuance of the
Common Securities is not subject to preemptive or other similar rights under
the Declaration or the Business Trust Act; provided, that such counsel may note
that the holders of Common Securities may be required to make payment or
provide indemnity or security as set forth in the Declaration.

(v)       The
Capital Securities have been duly authorized for issuance by the Trust, and,
when issued and delivered against payment therefor as provided herein, will be
duly and validly issued and, subject to the qualifications set forth herein,
fully paid and non-assessable beneficial interests in the Trust; the issuance
of the Capital Securities is not subject to preemptive or other similar rights
under the Declaration or the Business Trust Act; and the holders of the Capital
Securities will be entitled to the same limitation of personal liability extended
to stockholders of private corporations for profit organized under the General
Corporation Law of the State of Delaware; provided that such counsel
need express no opinion as to any holder of a Capital Security that is, was or
becomes a named Trustee of the Trust. Such counsel may note

that the holders of the Capital Securities may be required to make
payment or provide indemnity or security as set forth in the Declaration.

(vi)      The
issuance and sale by the Trust of the Securities, the execution, delivery and
performance by the Trust of the Agreement, the consummation by the Trust of the
transactions contemplated therein and the compliance by the Trust with its
obligations thereunder do not violate (a) any of the provisions of the
Certificate of Trust of the Trust or the Declaration or (b) any Delaware law or
Delaware administrative regulation applicable to the Trust.

(vii)     Assuming
that the Trust derives no income from or connected with sources within the
State of Delaware and has no assets, activities (other than having a Delaware
trustee as required by the Delaware Business Trust Act and the filing of
documents with the Secretary of State of the State of Delaware) or employees in
the State of Delaware, no authorization, approval, consent or order of any Delaware
court or Delaware governmental authority or Delaware agency is required to be
obtained by the Trust solely as a result of the issuance and sale of the
Capital Securities, the consummation by the Trust of the transactions
contemplated herein or the compliance by the Trust with its obligations
hereunder, except such as have been obtained and such as may be required by the
securities laws of the State of Delaware (as to which such counsel need express
no opinion).

(viii)    Assuming
that the Trust derives no income from or connected with sources within the
State of Delaware and has no assets, activities (other than having a Delaware
trustee as required by the Delaware Business Trust Act and the filing of
documents with the Secretary of State of the State of Delaware) or employees in
the State of Delaware, and assuming that the Trust is treated as a grantor
trust for federal income tax purposes and that the holders of the Capital
Securities are viewed for federal income tax purposes as owners of either all of,
or their liquidation and accrued but unpaid share of, the Subordinated Debt
Securities held by the Trust, the holders of Capital Securities (other than
those holders of Capital Securities, or persons who are partners or S
corporation shareholders for federal income tax purposes in such holders of
Capital Securities, who reside or are domiciled in the State of Delaware or who
are otherwise subject to income taxation in the State of Delaware) will have no
liability for income taxes imposed by the State of Delaware solely as a result
of their participation in the Trust, and the Trust will not be liable for any
income tax imposed by the State of Delaware (in rendering the opinion expressed
in this paragraph (viii), such counsel need express no opinion concerning the
securities laws of the State of Delaware).

 2

ANNEX C

Pursuant to Section 6(d) of the Placement Agreement,
White & Case LLP shall deliver an opinion to the effect that:

(i)        The
Bank of New York, is a national banking association with trust powers duly
organized and validly existing in good standing under the laws of the United
States of America with all necessary corporate power and authority to execute,
deliver and carry out and perform its obligations under the terms of the
Guarantee Agreement, the Declaration and the Indenture;

(ii)       the
execution, delivery and performance by The Bank of New York of the Guarantee
Agreement, the Declaration and the Indenture have been duly authorized by all
necessary corporate action on the part of The Bank of New York and each of the
Guarantee Agreement, the Declaration and the Indenture has been duly executed
and delivered by The Bank of New York, and constitutes the legal, valid and
binding obligation of The Bank of New York, enforceable against it in
accordance with its terms (subject to Bankruptcy and Equity);

(iii)      the
execution, delivery and performance of the Guarantee Agreement, the Declaration
and the Indenture by The Bank of New York do not conflict with or constitute a
breach of the charter or by-laws of The Bank of New York; and

(iv)      no
consent, approval or authorization of, or registration with or notice to, any
governmental authority or agency of the United States of America governing the
banking or trust powers of The Bank of New York is required for the execution,
delivery or performance by it of the Guarantee Agreement, the Declaration and
the Indenture.

ANNEX D

Pursuant to Section 6(e) of the Placement Agreement,
Richards, Layton & Finger shall deliver an opinion to the following form.

1.         The Delaware Trustee has been duly incorporated and is
validly existing in good standing as a banking corporation under the laws of
the State of Delaware.

2.         The
Delaware Trustee has the requisite corporate power and authority to execute and
deliver each Declaration of Trust, and has taken all necessary corporate action
to authorize the execution and delivery of each Declaration of Trust.

3.         Neither
the execution, delivery and performance by the Delaware Trustee of each
Declaration of Trust, nor the consummation of any of the transactions by the
Delaware Trustee contemplated thereby, are in violation of the charter or
by-laws of the Delaware Trustee or of any law, governmental rule or regulation
of the State of Delaware or the United States governing the banking or trust
powers of the Delaware Trustee or, to our knowledge, without independent
investigation, of any indenture, mortgage, bank credit agreement, note or bond
purchase agreement, long-term lease, license or other agreement or instrument
to which the Delaware Trustee is a party or by which it is bound or, to our knowledge,
without independent investigation, of any judgment or order applicable to the
Delaware Trustee.

4.         Neither the execution, delivery and performance by the
Delaware Trustee of each Declaration of Trust, nor the consummation of any of
the transactions by the Delaware Trustee contemplated thereby, requires the
consent or approval of, the withholding of objection on the part of, the giving
of notice to, the filing, registration or qualification with, or the taking of
any other action in respect of, any governmental authority or agency of the
State of Delaware or the United States of America governing the banking or
trust powers of the Delaware Trustee, except for the filing of the certificate
of trust for each Trust with the Office of the Secretary of State of the State
of Delaware pursuant to the Delaware Business Trust Act, 12 Del C. §
3801, et  seq.Exhibit 10.21

 

 

GUARANTEE
AGREEMENT

COMMUNITY BANCORP INC.

Dated as of March
23, 2000

Table of Contents

	
  

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I

  DEFINITIONS AND INTERPRETATION

  	
   

  
	
   

  	
   

  
	
  SECTION 1.1 Definitions and Interpretation

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II

  POWERS, DUTIES AND RIGHTS OF

  GUARANTEE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 2.1 Powers and Duties of the Guarantee
  Trustee

  	
  4

  
	
  SECTION 2.2 Certain Rights of Guarantee Trustee

  	
  5

  
	
  SECTION 2.3 Not Responsible for Recitals or Issuance
  of Guarantee

  	
  7

  
	
  SECTION 2.4 Events of Default; Waiver

  	
  7

  
	
  SECTION 2.5 Events of Default; Notice

  	
  8

  
	
   

  	
   

  
	
  ARTICLE III

  GUARANTEE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 3.1 Guarantee Trustee; Eligibility

  	
  8

  
	
  SECTION 3.2 Appointment, Removal and Resignation of
  Guarantee Trustee

  	
  9

  
	
   

  	
   

  
	
  ARTICLE IV

  GUARANTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 4.1 Guarantee

  	
  9

  
	
  SECTION 4.2 Waiver of Notice and Demand

  	
  10

  
	
  SECTION 4.3 Obligations Not Affected

  	
  10

  
	
  SECTION 4.4 Rights of Holders

  	
  11

  
	
  SECTION 4.5 Guarantee of Payment

  	
  11

  
	
  SECTION 4.6 Subrogation

  	
  11

  
	
  SECTION 4.7 Independent Obligations

  	
  12

  
	
  SECTION 4.8 Enforcement by a Beneficiary

  	
  12

  
	
   

  	
   

  
	
  ARTICLE V

  LIMITATION OF TRANSACTIONS; SUBORDINATION

  	
   

  
	
   

  	
   

  
	
  SECTION 5.1 Limitation of Transactions

  	
  12

  
	
  SECTION 5.2 Ranking

  	
  13

  
	
   

  	
   

  
	
  ARTICLE VI

  TERMINATION

  	
   

  
	
   

  	
   

  
	
  SECTION 6.1 Termination

  	
  13

  
	
   

  	
   

  
	
  ARTICLE VII

  INDEMNIFICATION

  	
   

  
	
   

  	
   

  
	
  SECTION 7.1 Exculpation

  	
  13

  
	
  SECTION 7.2 Indemnification

  	
  14

  
	
  SECTION 7.3 Compensation; Reimbursement of Expenses

  	
  15

  

 

 i
 

 

	
  ARTICLE VIII

  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  SECTION 8.1 Successors and Assigns

  	
  15

  
	
  SECTION 8.2 Amendments

  	
  16

  
	
  SECTION 8.3 Notices

  	
  16

  
	
  SECTION 8.4 Benefit

  	
  16

  
	
  SECTION 8.5 Governing Law

  	
  17

  

 

 ii

GUARANTEE
AGREEMENT

This GUARANTEE AGREEMENT (the “Guarantee”), dated as
of March 23, 2000, is executed and delivered by Community Bancorp Inc., a bank
holding company incorporated in Delaware (the “Guarantor”), and The Bank of New
York, as trustee (the “Guarantee Trustee”), for the benefit of the Holders (as
defined herein) from time to time of the Capital Securities (as defined herein)
of Community (CA) Capital Trust I, a Delaware statutory business trust (the “Issuer”).

WHEREAS, pursuant to an Amended and Restated
Declaration of Trust (the “Declaration”), dated as of March 23, 2000, among the
trustees named therein of the Issuer, Community Bancorp, Inc., as sponsor, and
the holders from time to time of undivided beneficial interests in the assets
of the Issuer, the Issuer is issuing on the date hereof securities, having an
aggregate liquidation amount of up to $10,000,000, designated the Fixed Rate
Capital Trust Pass-through Securities® (the “Capital Securities”);

WHEREAS, as incentive for the Holders to purchase the
Capital Securities, the Guarantor desires irrevocably and unconditionally to
agree, to the extent set forth in this Guarantee, to pay to the Holders of
Capital Securities the Guarantee Payments (as defined herein) and to make
certain other payments on the terms and conditions set forth herein; and

NOW, THEREFORE, in consideration of the purchase by
each Holder of the Capital Securities, which purchase the Guarantor hereby
agrees shall benefit the Guarantor, the Guarantor executes and delivers this
Guarantee for the benefit of the Holders.

ARTICLE I

DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation

In this Guarantee, unless the context otherwise
requires:

(a) capitalized terms used in this Guarantee but not
defined in the preamble above have the respective meanings assigned to them in
this Section 1.1;

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

(c) all references to “the Guarantee” or “this
Guarantee” are to this Guarantee as modified, supplemented or amended from time
to time;

(d) all references in this Guarantee to Articles and
Sections are to Articles and Sections of this Guarantee, unless otherwise
specified;

(e) terms defined in the Declaration as at the date of
execution of this Guarantee have the same meanings when used in this Guarantee,
unless otherwise defined in this Guarantee or unless the context otherwise
requires; and

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

 1
 

“Beneficiaries” means any Person to whom the Trust is
or hereafter becomes indebted or liable.

“Corporate Trust Office” means the office of the
Guarantee Trustee at which the corporate trust business of the Guarantee
Trustee shall, at any particular time, be principally administered, which office
at the date of execution of this Guarantee Agreement is located at 101 Barclay
Street, Floor 21W, New York, NY 10286.

“Covered Person” means any Holder of Capital
Securities.

“Debentures” means the junior subordinated debentures
of Community Bancorp, Inc., designated the 11% Junior Subordinated Deferrable
Interest Debentures due 2030, held by the Institutional Trustee (as defined in
the Declaration) of the Issuer.

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

“Event of Default” has the meaning set forth in
Section 2.4.

“Guarantee Payments” means the following payments or
distributions, without duplication, with respect to the Capital Securities, to
the extent not paid or made by the Issuer: (i) any accrued and unpaid
Distributions (as defined in the Declaration) which are required to be paid on
such Capital Securities to the extent the Issuer shall have funds available
therefor, (ii) the Redemption Price (as defined in the Indenture) to the extent
the Issuer has funds available therefor, with respect to any Capital Securities
called for redemption by the Issuer, (iii) the Special Redemption Price (as
defined in the Indenture) to the extent the Issuer has funds available
therefor, with respect to Capital Securities redeemed upon the occurrence of a
Special Event (as defined in the Indenture), and (iv) upon a voluntary or
involuntary liquidation, dissolution, winding-up or termination of the Issuer
(other than in connection with the distribution of Debentures to the Holders of
the Capital Securities in exchange therefor as provided in the Declaration),
the lesser of (a) the aggregate of the liquidation amount and all accrued and
unpaid Distributions on the Capital Securities to the date of payment, to the
extent the Issuer shall have funds available therefor, and (b) the amount of
assets of the Issuer remaining available for distribution to Holders in
liquidation of the Issuer (in either case, the “Liquidation Distribution”).

“Guarantee Trustee” means The Bank of New York, until
a Successor Guarantee Trustee has been appointed and has accepted such
appointment pursuant to the terms of this Guarantee and thereafter means each
such Successor Guarantee Trustee.

“Holder” shall mean any holder, as registered on the
books and records of the Issuer, of any Capital Securities; provided, however,
that, in determining whether the holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder, “Holder”
shall not include the Guarantor or any Affiliate of the Guarantor.

“Indemnified Person” means the Guarantee Trustee, any
Affiliate of the Guarantee Trustee, or any officers, directors, shareholders,
members, partners, employees, representatives, nominees, custodians or agents
of the Guarantee Trustee.

 2
 

“Indenture” means the Indenture dated as of March 23,
2000, between the Guarantor and The Bank of New York, not in its individual
capacity but solely as trustee, and any indenture supplemental thereto pursuant
to which the Debentures are to be issued to the Institutional Trustee of the
Issuer.

“Liquidation Distribution” has the meaning set forth
in the definition of “Guarantee Payments” herein.

“Majority in liquidation amount of the Capital
Securities” means Holder(s) of outstanding Capital Securities, voting together
as a class, but separately from the holders of Common Securities, 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 Capital Securities then outstanding.

“Obligations” means any costs, expenses or liabilities
(but not including liabilities related to taxes) of the Trust, other than
obligations of the Trust to pay to holders of any Trust Securities the amounts
due such holders pursuant to the terms of the Trust Securities.

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

(a) a statement that each officer signing the Officer’s
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
Officer’s 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.

“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.

“Redemption Price” has the meaning set forth in the
definition of “Guarantee Payments” herein.

“Responsible Officer” means, with respect to the
Guarantee Trustee, any officer within the Corporate Trust Office of the
Guarantee Trustee, including any Vice President, Assistant Vice President,
Secretary, Assistant Secretary or any other officer of the Guarantee Trustee
customarily performing functions similar to those performed by any of the above

 3
 

designated officers and also, 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.

“Successor Guarantee Trustee” means a successor
Guarantee Trustee possessing the qualifications to act as Guarantee Trustee
under Section 3.1.

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

ARTICLE
II

POWERS, DUTIES AND RIGHTS OF

GUARANTEE TRUSTEE

SECTION 2.1 Powers and Duties of the Guarantee Trustee

(a) This Guarantee shall be held by the Guarantee
Trustee for the benefit of the Holders of the Capital Securities, and the
Guarantee Trustee shall not transfer this Guarantee to any Person except a
Holder of Capital Securities exercising his or her rights pursuant to Section
4.4(b) or to a Successor Guarantee Trustee on acceptance by such Successor
Guarantee Trustee of its appointment to act as Successor Guarantee Trustee. The
right, title and interest of the Guarantee Trustee shall automatically vest in
any Successor Guarantee Trustee, and such vesting and cessation of title shall
be effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Guarantee Trustee.

(b) If an Event of Default actually known to a
Responsible Officer of the Guarantee Trustee has occurred and is continuing,
the Guarantee Trustee shall enforce this Guarantee for the benefit of the
Holders of the Capital Securities.

(c) The Guarantee Trustee, before the occurrence of
any Event of Default and after curing all Events of Default that may have
occurred, shall undertake to perform only such duties as are specifically set
forth in this Guarantee, and no implied covenants shall be read into this
Guarantee against the Guarantee Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 2.4) and is
actually known to a Responsible Officer of the Guarantee Trustee, the Guarantee
Trustee shall exercise such of the rights and powers vested in it by this
Guarantee, and use the same degree of care and skill in its exercise thereof,
as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs.

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

(i) prior to the occurrence of any Event of Default
and after the curing or waiving of all such Events of Default that may have
occurred:

(A) the duties and obligations of the Guarantee
Trustee shall be determined solely by the express provisions of this Guarantee,
and the

 4
 

Guarantee Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set forth in
this Guarantee, and no implied covenants or obligations shall be read into this
Guarantee against the Guarantee Trustee; and

(B) in the absence of bad faith on the part of the
Guarantee Trustee, the Guarantee 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 Guarantee Trustee and conforming
to the requirements of this Guarantee; but in the case of any such certificates
or opinions furnished to the Guarantee Trustee, the Guarantee Trustee shall be
under a duty to examine the same to determine whether or not they conform to the
requirements of this Guarantee;

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

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

(iv) no provision of this Guarantee shall require the
Guarantee Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers, if the Guarantee Trustee shall have reasonable
grounds for believing that the repayment of such funds is not reasonably
assured to it under the terms of this Guarantee, or security and indemnity,
reasonably satisfactory to the Guarantee Trustee, against such risk or
liability is not reasonably assured to it.

SECTION 2.2 Certain Rights of Guarantee Trustee

(a) Subject to the provisions of Section 2.1:

(i) The Guarantee 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, direction, consent, order, 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.

(ii) Any direction or act of the Guarantor
contemplated by this Guarantee shall be sufficiently evidenced by an Officer’s
Certificate.

 5
 

(iii) Whenever, in the administration of this
Guarantee, the Guarantee Trustee shall deem it desirable that a matter be
proved or established before taking, suffering or omitting any action
hereunder, the Guarantee Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and
conclusively rely upon an Officer’s Certificate of the Guarantor which, upon
receipt of such request, shall be promptly delivered by the Guarantor.

(iv) The Guarantee Trustee shall have no duty to see
to any recording, filing or registration of any instrument (or any rerecording,
refiling or registration thereof).

(v) The Guarantee Trustee may consult with counsel of
its selection, and the advice or opinion of such counsel with respect to legal
matters 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. Such counsel may be counsel to the
Guarantor or any of its Affiliates and may include any of its employees. The
Guarantee Trustee shall have the right at any time to seek instructions
concerning the administration of this Guarantee from any court of competent
jurisdiction.

(vi) The Guarantee Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Guarantee at the request or direction of any Holder, unless such Holder shall
have provided to the Guarantee Trustee such security and indemnity, reasonably
satisfactory to the Guarantee Trustee, against the costs, expenses (including
attorneys’ fees and expenses and the expenses of the Guarantee Trustee’s
agents, nominees or custodians) and liabilities that might be incurred by it in
complying with such request or direction, including such reasonable advances as
may be requested by the Guarantee Trustee; provided, however,
that nothing contained in this Section 2.2(a)(vi) shall be taken to relieve the
Guarantee Trustee, upon the occurrence of an Event of Default, of its
obligation to exercise the rights and powers vested in it by this Guarantee.

(vii) The Guarantee Trustee shall not be bound to make
any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Guarantee Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit.

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

 6
 

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

(x) Whenever in the administration of this Guarantee
the Guarantee Trustee shall deem it desirable to receive instructions with
respect to enforcing any remedy or right or taking any other action hereunder,
the Guarantee Trustee (A) may request instructions from the Holders of a
Majority in liquidation amount of the Capital Securities, (B) may refrain from
enforcing such remedy or right or taking such other action until such
instructions are received, and (C) shall be protected in conclusively relying
on or acting in accordance with such instructions.

(xi) The Guarantee Trustee shall not be liable for any
action taken, suffered, or omitted to be taken 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 Guarantee.

(b) No provision of this Guarantee shall be deemed to
impose any duty or obligation on the Guarantee Trustee to perform any act or
acts or exercise any right, power, duty or obligation conferred or imposed on
it, in any jurisdiction in which it shall be illegal or in which the Guarantee
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 Guarantee Trustee
shall be construed to be a duty.

SECTION 2.3 Not Responsible for Recitals or Issuance of Guarantee

The recitals contained in this Guarantee shall be
taken as the statements of the Guarantor, and the Guarantee Trustee does not
assume any responsibility for their correctness. The Guarantee Trustee makes no
representation as to the validity or sufficiency of this Guarantee.

SECTION 2.4 Events of Default; Waiver

(a) An Event of Default under this Guarantee will
occur upon the failure of the Guarantor to perform any of its payment or other
obligations hereunder.

(b) The Holders of a Majority in liquidation amount of
Capital Securities may, voting or consenting as a class, on behalf of the
Holders of all of the Capital Securities, waive any past Event of Default and
its consequences. Upon such waiver, any such Event of Default shall cease to
exist, and shall be deemed to have been cured, for every purpose of this
Guarantee, but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.

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SECTION 2.5 Events of Default; Notice

(a) The Guarantee Trustee shall, within 90 days after
the occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the Holders of the Capital Securities, notices of all Events of
Default actually known to a Responsible Officer of the Guarantee Trustee,
unless such defaults have been cured before the giving of such notice,
provided, however, that the Guarantee Trustee shall be protected in withholding
such notice if and so long as a Responsible Officer of the Guarantee Trustee in
good faith determines that the withholding of such notice is in the interests
of the Holders of the Capital Securities.

(b) The Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default unless the Guarantee Trustee shall have
received written notice from the Guarantor or a Holder of the Capital
Securities (except in the case of a payment default), or a Responsible Officer
of the Guarantee Trustee charged with the administration of this Guarantee
shall have obtained actual knowledge, thereof.

ARTICLE
III 

GUARANTEE TRUSTEE

SECTION 3.1 Guarantee Trustee; Eligibility

(a) There shall at all times be a Guarantee Trustee
which shall:

(i) not be an Affiliate of the Guarantor; and

(ii) be a corporation organized and doing business
under the laws of the United States of America or any State or Territory
thereof or of the District of Columbia, or Person authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least 50 million U.S. dollars ($50,000,000), and subject to supervision or
examination by Federal, State, Territorial or District of Columbia authority.
If such corporation 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 3.1(a)(ii), the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published.

(b) If at any time the Guarantee Trustee shall cease
to be eligible to so act under Section 3.1(a), the Guarantee Trustee shall
immediately resign in the manner and with the effect set out in Section 3.2(c).

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

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SECTION 3.2 Appointment, Removal and Resignation of Guarantee
Trustee

(a) Subject to Section 3.2(b), the Guarantee Trustee
may be appointed or removed without cause at any time by the Guarantor except
during an Event of Default.

(b) The Guarantee Trustee shall not be removed in
accordance with Section 3.2(a) until a Successor Guarantee Trustee has been
appointed and has accepted such appointment by written instrument executed by
such Successor Guarantee Trustee and delivered to the Guarantor.

(c) The Guarantee Trustee appointed to office shall
hold office until a Successor Guarantee Trustee shall have been appointed or
until its removal or resignation. The Guarantee Trustee may resign from office
(without need for prior or subsequent accounting) by an instrument in writing
executed by the Guarantee Trustee and delivered to the Guarantor, which
resignation shall not take effect until a Successor Guarantee Trustee has been
appointed and has accepted such appointment by an instrument in writing
executed by such Successor Guarantee Trustee and delivered to the Guarantor and
the resigning Guarantee Trustee.

(d) If no Successor Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 3.2 within 60
days after delivery of an instrument of removal or resignation, the Guarantee
Trustee resigning or being removed may petition any court of competent
jurisdiction for appointment of a Successor Guarantee Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper,
appoint a Successor Guarantee Trustee.

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

(f) Upon termination of this Guarantee or removal or
resignation of the Guarantee Trustee pursuant to this Section 3.2, the Guarantor
shall pay to the Guarantee Trustee all amounts owing to the Guarantee Trustee
under Sections 7.2 and 7.3 accrued to the date of such termination, removal or
resignation.

ARTICLE
IV 

GUARANTEE

SECTION 4.1 Guarantee

(a) The Guarantor irrevocably and unconditionally
agrees to pay in full to the Holders the Guarantee Payments (without
duplication of amounts theretofore paid by the Issuer), as and when due,
regardless of any defense (except as defense of payment by the Issuer), right
of set-off or counterclaim that the Issuer may have or assert. The Guarantor’s
obligation to make a Guarantee Payment may be satisfied by direct payment of
the required amounts by the Guarantor to the Holders or by causing the Issuer
to pay such amounts to the Holders.

(b) The Guarantor hereby also agrees to assume any and
all Obligations of the Trust and in the event any such Obligation is not so
assumed, subject to the terms and conditions

 9
 

hereof, the Guarantor hereby irrevocably and unconditionally guarantees
to each Beneficiary the full payment, when and as due, of any and all
obligations to such Beneficiaries. This Agreement is intended to be for the
benefit of, and to be enforceable by, all such Beneficiaries, whether or not
such Beneficiaries have received notice hereof.

SECTION 4.2 Waiver of Notice and Demand

The Guarantor hereby waives notice of acceptance of
this Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.

SECTION 4.3 Obligations Not Affected

The obligations, covenants, agreements and duties of the
Guarantor under this Guarantee shall in no way be affected or impaired by
reason of the happening from time to time of any of the following:

(a) the release or waiver, by operation of law or
otherwise, of the performance or observance by the Issuer of any express or
implied agreement, covenant, term or condition relating to the Capital
Securities to be performed or observed by the Issuer;

(b) the extension of time for the payment by the
Issuer of all or any portion of the Distributions, Redemption Price, Special
Redemption Price, Liquidation Distribution or any other sums payable under the
terms of the Capital Securities or the extension of time for the performance of
any other obligation under, arising out of, or in connection with, the Capital
Securities (other than an extension of time for payment of Distributions,
Redemption Price, Special Redemption Price, Liquidation Distribution or other
sum payable that results from the extension of any interest payment period on
the Debentures or any extension of the maturity date of the Debentures
permitted by the Indenture);

(c) any failure, omission, delay or lack of diligence
on the part of the Holders to enforce, assert or exercise any right, privilege,
power or remedy conferred on the Holders pursuant to the terms of the Capital
Securities, or any action on the part of the Issuer granting indulgence or
extension of any kind;

(d) the voluntary or involuntary liquidation,
dissolution, sale of any collateral, receivership, insolvency, bankruptcy,
assignment for the benefit of creditors, reorganization, arrangement,
composition or readjustment of debt of, or other similar proceedings affecting,
the Issuer or any of the assets of the Issuer;

(e) any invalidity of, or defect or deficiency in, the
Capital Securities;

(f) the settlement or compromise of any obligation
guaranteed hereby or hereby incurred; or

 10
 

(g) any other circumstance whatsoever that might
otherwise constitute a legal or equitable discharge or defense of a guarantor,
it being the intent of this Section 4.3 that the obligations of the Guarantor
hereunder shall be absolute and unconditional under any and all circumstances.

There shall be no obligation of the Holders to give
notice to, or obtain consent of, the Guarantor with respect to the happening of
any of the foregoing.

SECTION 4.4 Rights of Holders

(a) The Holders of a Majority in liquidation amount of
the Capital Securities have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Guarantee Trustee in
respect of this Guarantee or to direct the exercise of any trust or power
conferred upon the Guarantee Trustee under this Guarantee; provided, however,
that (subject to Section 2.1) the Guarantee Trustee shall have the right to
decline to follow any such direction if the Guarantee Trustee shall determine
that the actions so directed would be unjustly prejudicial to the Holders not
taking part in such direction or if the Guarantee Trustee being advised by
counsel determines that the action or proceeding so directed may not lawfully
be taken or if the Guarantor Trustee in good faith by its board of directors or
trustees, executive committees or a trust committee of directors or trustees
and/or Responsible Officers shall determine that the action or proceedings so
directed would involve the Guarantee Trustee in personal liability.

(b) Any Holder of Capital Securities may institute a
legal proceeding directly against the Guarantor to enforce the Guarantee
Trustee’s rights under this Guarantee, without first instituting a legal
proceeding against the Issuer, the Guarantee Trustee or any other Person. The
Guarantor waives any right or remedy to require that any such action be brought
first against the Issuer, the Guarantee Trustee or any other Person before so
proceeding directly against the Guarantor.

SECTION 4.5 Guarantee of Payment

This Guarantee creates a guarantee of payment and not
of collection.

SECTION 4.6 Subrogation

The Guarantor shall be subrogated to all (if any)
rights of the Holders of Capital Securities against the Issuer in respect of
any amounts paid to such Holders by the Guarantor under this Guarantee; provided,
however, that the Guarantor shall not (except to the extent required by
mandatory provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Guarantee, if, after
giving effect to any such payment, any amounts are due and unpaid under this Guarantee.
If any amount shall be paid to the Guarantor in violation of the preceding
sentence, the Guarantor agrees to hold such amount in trust for the Holders and
to pay over such amount to the Holders.

 11
 

SECTION 4.7 Independent Obligations

The Guarantor acknowledges that its obligations
hereunder are independent of the obligations of the Issuer with respect to the
Capital Securities and that the Guarantor shall be liable as principal and as
debtor hereunder to make Guarantee Payments pursuant to the terms of this
Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 4.3 hereof.

SECTION 4.8 Enforcement by a Beneficiary

A Beneficiary may enforce the obligations of the
Guarantor contained in Section 4.1(b) directly against the Guarantor and the
Guarantor waives any right or remedy to require that any action be brought
against the Trust or any other person or entity before preceding against the
Guarantor. The Guarantor shall be subrogated to all rights (if any) of any
Beneficiary against the Trust in respect of any amounts paid to the
Beneficiaries by the Guarantor under this Agreement; provided, however, that
the Guarantor shall not (except to the extent required by mandatory provisions
of law) be entitled to enforce or exercise any rights that it may acquire by
way of subrogation or any indemnity, reimbursement or other agreement, in all
cases as a result of payment under this Agreement, if, after giving effect to
such payment, any amounts are due and unpaid under this Agreement.

ARTICLE V
  LIMITATION OF TRANSACTIONS;
SUBORDINATION

SECTION 5.1 Limitation of Transactions

So long as any Capital Securities remain outstanding,
if (a) there shall have occurred and be continuing an Event of Default or a Declaration
Event of Default or (b) the Guarantor shall have selected an Extension Period
as provided in the Declaration and such period, or any extension thereof, shall
be continuing, then the Guarantor may not (x) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Guarantor’s capital stock or (y) make any payment
of principal of or interest or premium, if any, on or repay, repurchase or
redeem any debt securities of the Guarantor that rank pari passu in all respects with or junior
in interest to the Debentures (other than (i) repurchases, redemptions or other
acquisitions of shares of capital stock of the Guarantor 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, in
connection with a dividend reinvestment or stockholder stock purchase plan or
in connection with the issuance of capital stock of the Guarantor (or
securities convertible into or exercisable for such capital stock) as
consideration in an acquisition transaction entered into prior to occurrence of
the Event of Default or Declaration Event of Default or the applicable
Extension Period, (ii) as a result of any exchange or conversion of any class
or series of the Guarantor’s capital stock (or any capital stock of a
subsidiary of the Guarantor) for any class or series of the Guarantor’s capital
stock or of any class or series of the Guarantor’s indebtedness for any class
or series of the Guarantor’s capital stock, (iii) the purchase of fractional
interests in shares of the Guarantor’s capital stock pursuant to the conversion
or exchange provisions of such capital stock

 12
 

or the security being converted or exchanged, (iv) 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 (v) 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 5.2 Ranking

This Guarantee will constitute an unsecured obligation
of the Guarantor and will rank subordinate and junior in right of payment to
all present and future Senior Indebtedness (as defined in the Indenture) of the
Guarantor. By their acceptance thereof, each Holder of Capital Securities
agrees to the foregoing provisions of this Guarantee and the other terms set
forth herein.

The right of the Guarantor to participate in any
distribution of assets of any of its subsidiaries upon any such subsidiary’s
liquidation or reorganization or otherwise is subject to the prior claims of
creditors of that subsidiary, except to the extent the Guarantor may itself be
recognized as a creditor of that subsidiary. Accordingly, the Guarantor’s
obligations under this Guarantee will be effectively subordinated to all
existing and future liabilities of the Guarantor’s subsidiaries, and claimants
should look only to the assets of the Guarantor for payments thereunder. This
Guarantee does not limit the incurrence or issuance of other secured or
unsecured debt of the Guarantor, including Senior Indebtedness of the
Guarantor, under any indenture that the Guarantor may enter into in the future
or otherwise.

ARTICLE VI

TERMINATION

SECTION 6.1 Termination

This Guarantee shall terminate as to the Capital
Securities (i) upon full payment of the Redemption Price of all Capital
Securities, (ii) upon the distribution of the Debentures to the Holders of all
of the Capital Securities or (iii) upon full payment of the amounts payable in
accordance with the Declaration upon dissolution of the Issuer. This Guarantee
will continue to be effective or will be reinstated, as the case may be, if at
any time any Holder of Capital Securities must restore payment of any sums paid
under the Capital Securities or under this Guarantee.

ARTICLE VII

INDEMNIFICATION

SECTION 7.1 Exculpation

(a) No Indemnified Person shall be liable, responsible
or accountable in damages or otherwise to the Guarantor 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 in accordance
with this Guarantee and in a manner that such Indemnified Person reasonably
believed to be within the scope of the authority conferred

 13
 

on such Indemnified Person by this Guarantee or by law, except that an
Indemnified Person shall be liable for any such loss, damage or claim incurred
by reason of such Indemnified Person’s negligence or willful misconduct 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 Issuer or the Guarantor and upon
such information, opinions, reports or statements presented to the Issuer or
the Guarantor by any Person as to matters the Indemnified Person reasonably
believes are within such other Person’s professional or expert competence and
who, if selected by such Indemnified Person, has been selected with reasonable
care by such Indemnified Person, 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 Capital Securities might properly be paid.

SECTION 7.2 Indemnification

(a) The Guarantor agrees to indemnify each Indemnified
Person for, and to hold each Indemnified Person harmless against, any and all
loss, liability, damage, claim or expense incurred without negligence or willful
misconduct on the part of the Indemnified Person, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses (including reasonable legal fees
and expenses) of the Indemnified Person defending itself against, or
investigating, any claim or liability in connection with the exercise or
performance of any of the Indemnified Person’s powers or duties hereunder. The
obligation to indemnify as set forth in this Section 7.2 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

(b) Promptly after receipt by an Indemnified Person
under this Section 7.2 of notice of the commencement of any action, such
Indemnified Person will, if a claim in respect thereof is to be made against
the Guarantor under this Section 7.2, notify the Guarantor in writing of the
commencement thereof; but the failure so to notify the Guarantor (i) will not
relieve the Guarantor from liability under paragraph (a) above unless and to
the extent that the Guarantor did not otherwise learn of such action and such
failure results in the forfeiture by the Guarantor of substantial rights and
defenses and (ii) will not, in any event, relieve the Guarantor from any obligations
to any Guarantor other than the indemnification obligation provided in
paragraph (a) above. The Guarantor shall be entitled to appoint counsel of the
Guarantor’s choice at the Guarantor’s expense to represent the Indemnified
Person in any action for which indemnification is sought (in which case the
Guarantor shall not thereafter be responsible for the fees and expenses of any
separate counsel retained by the Indemnified Person or Persons except as set
forth below); provided, however, that such counsel shall be
satisfactory to the Indemnified Person. Notwithstanding the Guarantor’s
election to appoint counsel to represent the Guarantor in an action, the
Indemnified Person shall have the right to employ separate counsel (including
local counsel), and the Guarantor shall bear the reasonable fees, costs and
expenses of such separate counsel if (i) the use of counsel chosen by the
Guarantor to represent the Indemnified Person would present such counsel with a
conflict of interest, (ii) the actual or potential defendants in, or targets
of, any such action include both the Indemnified Person and the Guarantor and
the Indemnified Person shall have reasonably concluded that there may be legal

 14
 

defenses available to it and/or other Indemnified Person which are different
from or additional to those available to the Guarantor, (iii) the Guarantor
shall not have employed counsel satisfactory to the Indemnified Person to
represent the Indemnified Person within a reasonable time after notice of the
institution of such action or (iv) the Guarantor shall authorize the
Indemnified Person to employ separate counsel at the expense of the Guarantor.
The Guarantor will not, without the prior written consent of the Indemnified
Persons, settle or compromise or consent to the entry of any judgment with
respect to any pending or threatened claim, action, suit or proceeding in
respect of which indemnification or contribution may be sought hereunder
(whether or not the Indemnified Persons are actual or potential parties to such
claim or action) unless such settlement, compromise or consent includes an
unconditional release of each Indemnified Person from all liability arising out
of such claim, action, suit or proceeding.

SECTION 7.3 Compensation; Reimbursement of Expenses 

The Guarantor agrees:

(a) to pay to the Guarantee Trustee from time to time
such compensation for all services rendered by it hereunder as the parties
shall agree to 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

(b) except as otherwise expressly provided herein, to
reimburse the Guarantee Trustee upon request for all reasonable expenses,
disbursements and advances incurred or made by it in accordance with any provision
of this Guarantee (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or willful misconduct.

The provisions of this Section 7.3 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

ARTICLE
VIII 

MISCELLANEOUS

SECTION 8.1 Successors and Assigns

All guarantees and agreements contained in this
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Capital Securities then outstanding. Except in connection with any
merger or consolidation of the Guarantor with or into another entity or any
sale, transfer or lease of the Guarantor’s assets to another entity, in each
case, to the extent permitted under the Indenture, the Guarantor may not assign
its rights or delegate its obligations under this Guarantee without the prior approval
of the Holders of at least a Majority in liquidation amount of the Capital
Securities.

 15
 

SECTION 8.2 Amendments

Except with respect to any changes that do not
adversely affect the rights of Holders of the Capital Securities in any
material respect (in which case no consent of Holders will be required), this
Guarantee may be amended only with the prior approval of the Holders of not
less than a Majority in liquidation amount of the Capital Securities. The
provisions of the Declaration with respect to amendments thereof apply to the
giving of such approval.

SECTION 8.3 Notices

All notices provided for in this Guarantee shall be in
writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by first class mail, as follows:

(a) If given to the Guarantee Trustee, at the
Guarantee Trustee’s mailing address set forth below (or such other address as
the Guarantee Trustee may give notice of to the Holders of the Capital
Securities):

The Bank of New York

101 Barclay Street, Floor 21W

New York, NY 10286

Attention: Corporate Trust Administration

Telecopy: 212-815-5915

(b) If given to the Guarantor, at the Guarantor’s
mailing address set forth below (or such other address as the Guarantor may
give notice of to the Holders of the Capital Securities and to the Guarantee
Trustee):

Community Bancorp Inc.

130 W. Fallbrook Street

Fallbrook, CA 92028

Attention: Thomas E. Swanson

Telecopy: 760-731-5649

(c) If given to any Holder of the Capital Securities,
at the address set forth on the books and records of the Issuer.

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 8.4 Benefit

This Guarantee is solely for the benefit of the
Holders of the Capital Securities and, subject to Section 2.1(a), is not
separately transferable from the Capital Securities.

 16
 

SECTION 8.5 Governing Law

THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

 17
 

THIS GUARANTEE is executed as of the day and year
first above written.

	
  

  	
  COMMUNITY
  BANCORP INC.,

  as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas E. Swanson

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK,

  as Guarantee Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ANNETTE L. KOS

  	
   

  
	
   

  	
   

  	
  Name: ANNETTE L. KOS 

  
	
   

  	
   

  	
  Title: Assistant Vice President

  

 

 18

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