Document:

exv4w2

 

Exhibit 4.2

[FACE OF CERTIFICATE]

	 	 	 
	Number

	 	Shares

SOVEREIGN BANCORP, INC.

INCORPORATED UNDER THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA

SERIES C NON-CUMULATIVE PERPETUAL PREFERRED STOCK

THIS CERTIFIES THAT                                                             
                                                            
 is the owner of                                    
                                                                                
shares of the SERIES C NON-CUMULATIVE PERPETUAL PREFERRED STOCK of
SOVEREIGN BANCORP, INC., fully paid and non-assessable, transferable only on the books of the
Corporation in person or by Attorney upon surrender of this Certificate properly endorsed.

The Corporation will furnish to any shareholder upon request and without charge, a full or summary
statement of the designations, voting rights, preferences, limitations and special rights of the
shares of each class authorized to be issued.

IN WITNESS WHEREOF, the said Corporation has caused this Certificate to be signed by its duly
authorized officers and its Corporate Seal to be hereunto affixed this                      day of                      A.D.
                    .

	 	 	 	 	 
	 

	 	 

	 	 

 

[REVERSE OF CERTIFICATE]

     The following abbreviations, when used in the inscription on the face of this certificate, shall be
construed as though they were written out in full according to applicable laws or regulations:

	 	 	 	 	 
	     TEN COM

	 	— as tenants in common
	 	UNIF GIFT MIN ACT —           Custodian            under
	     TEN ENT

	 	— as tenants by the entireties
	 	(Cust)           (Minor)
	     JT TEN

	 	— as joint tenants with right of survivorship
	 	Uniform Gifts to Minors Act_______
	 

	 	  and not as tenants in common
	 	(State)
	Additional abbreviations may also be used though not in the above list.

For Value
Received, ___ hereby sell, assign and transfer unto

Please insert social security or other identifying number of assignee

	 	 	 	 	 
	 	 	 	 	 
	 	 
	 	 	 
	 	 	 	 	 

 

 

Shares
represented by the within Certificate and do hereby irrevocably
constitute and appoint
                                                                             Attorney to transfer the said
Shares on the books of the within named Corporation with full power of substitution in the
premises.

          Dated                                         

                In the presence of

	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 
	 	 

NOTICE. The signature of this assignment must correspond with the name as written upon the face of
the certificate, in every particular, without alteration or enlargement or any change
whatever.exv4w3

 

Exhibit 4.3

 

DEPOSIT AGREEMENT

among

SOVEREIGN BANCORP, INC.,

MELLON INVESTOR SERVICES LLC

as Depositary,

and

THE HOLDERS FROM TIME TO TIME OF

THE DEPOSITARY RECEIPTS DESCRIBED HEREIN

Dated as of May 1, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I

	DEFINED TERMS

	 
	 	 	 	 	 	 
	Section 1.1
	 	 Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II

	FORM OF RECEIPTS, DEPOSIT OF SERIES C PREFERRED STOCK, EXECUTION AND

	DELIVERY, TRANSFER, SURRENDER AND REDEMPTION OF RECEIPTS

	 
	 	 	 	 	 	 
	Section 2.1
	 	Form and Transfer of Receipts	 	 	3	 
	Section 2.2
	 	Deposit of Series C Preferred Stock; Execution and Delivery of Receipts in Respect Thereof	 	 	5	 
	Section 2.3
	 	Registration of Transfer of Receipts	 	 	6	 
	Section 2.4
	 	Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of Series C Preferred Stock	 	 	6	 
	Section 2.5
	 	Limitations on Execution and Delivery, Transfer, Surrender and Exchange of Receipts	 	 	7	 
	Section 2.6
	 	Lost Receipts, etc	 	 	8	 
	Section 2.7
	 	Cancellation and Destruction of Surrendered Receipts	 	 	8	 
	Section 2.8
	 	Redemption of Series C Preferred Stock	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE III

	CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE CORPORATION

	 
	 	 	 	 	 	 
	Section 3.1
	 	Filing Proofs, Certificates and Other Information	 	 	11	 
	Section 3.2
	 	Payment of Taxes or Other Governmental Charges	 	 	11	 
	Section 3.3
	 	Warranty as to Series C Preferred Stock	 	 	11	 
	Section 3.4
	 	Warranty as to Receipts	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	THE DEPOSITED SECURITIES; NOTICES

	 
	 	 	 	 	 	 
	Section 4.1
	 	Cash Distributions	 	 	12	 
	Section 4.2
	 	Distributions Other than Cash, Rights, Preferences or Privileges	 	 	12	 
	Section 4.3
	 	Subscription Rights, Preferences or Privileges	 	 	13	 
	Section 4.4
	 	Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts	 	 	15	 
	Section 4.5
	 	Voting Rights	 	 	15	 
	Section 4.6
	 	Changes Affecting Deposited Securities and Reclassifications, Recapitalizations, etc	 	 	16	 
	Section 4.7
	 	Delivery of Reports	 	 	17	 
	Section 4.8
	 	Lists of Receipt Holders	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE V

	THE DEPOSITARY, THE DEPOSITARY’S AGENTS, THE REGISTRAR AND THE

	CORPORATION

(i)

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 5.1
	 	Maintenance of Offices, Agencies and Transfer Books by the Depositary; Registrar	 	 	17	 
	Section 5.2
	 	Prevention of or Delay in Performance by the Depositary, the Depositary’s Agents, the Registrar or the Corporation	 	 	18	 
	Section 5.3
	 	Obligations of the Depositary, the Depositary’s Agents, the Registrar and the Corporation	 	 	19	 
	Section 5.4
	 	Resignation and Removal of the Depositary; Appointment of Successor Depositary	 	 	21	 
	Section 5.5
	 	Corporate Notices and Reports	 	 	22	 
	Section 5.6
	 	Indemnification by the Corporation	 	 	23	 
	Section 5.7
	 	Fees, Charges and Expenses	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	AMENDMENT AND TERMINATION

	 
	 	 	 	 	 	 
	Section 6.1
	 	Amendment	 	 	24	 
	Section 6.2
	 	Termination	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	MISCELLANEOUS

	 
	 	 	 	 	 	 
	Section 7.1
	 	Counterparts	 	 	25	 
	Section 7.2
	 	Exclusive Benefit of Parties	 	 	25	 
	Section 7.3
	 	Invalidity of Provisions	 	 	25	 
	Section 7.4
	 	Notices	 	 	25	 
	Section 7.5
	 	Depositary’s Agents	 	 	27	 
	Section 7.6
	 	Appointment of Registrar, Dividend Disbursing Agent and Redemption Agent in Respect of the Series C Preferred Stock	 	 	27	 
	Section 7.7
	 	Appointment of Calculation Agent	 	 	28	 
	Section 7.8
	 	Holders of Receipts Are Parties	 	 	28	 
	Section 7.9
	 	Governing Law	 	 	28	 
	Section 7.10
	 	Inspection of Deposit Agreement	 	 	28	 
	Section 7.11
	 	Headings	 	 	28	 

(ii)

 

     DEPOSIT AGREEMENT (this “Agreement”) dated as of May 1, 2006, among (i) Sovereign
Bancorp, Inc., a Pennsylvania corporation (the “Corporation”), (ii) Mellon Investor Services LLC
and (iii) the Holders from time to time of the Receipts described herein.

     WHEREAS, it is desired to provide, as hereinafter set forth in this Deposit Agreement, for the
deposit of shares of Series C Preferred Stock of the Corporation from time to time with the
Depositary for the purposes set forth in this Deposit Agreement and for the issuance hereunder of
Receipts evidencing Depositary Shares in respect of the Series C Preferred Stock so deposited; and

     WHEREAS, the Receipts are to be substantially in the form of Exhibit A annexed hereto, with
appropriate insertions, modifications and omissions, as hereinafter provided in this Deposit
Agreement;

     NOW, THEREFORE, in consideration of the premises, the parties hereto agree as follows:

ARTICLE I

DEFINED TERMS

     Section 1.1 Definitions. The following definitions shall for all purposes, unless
otherwise indicated, apply to the respective terms used in this Deposit Agreement:

     “Certificate” shall mean the relevant Statement With Respect To Shares filed with the
Secretary of State of the Commonwealth of Pennsylvania establishing the Series C Preferred Stock as
a series of preferred stock of the Corporation.

     “Corporation” shall mean Sovereign Bancorp, Inc., a Pennsylvania corporation, and its
successors.

     “Deposit Agreement” shall mean this Deposit Agreement, as amended or supplemented from time to
time in accordance with the terms hereof.

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     “Depositary” shall mean Mellon Investor Services LLC, and any successor as Depositary
hereunder.

     “Depositary Shares” shall mean the depositary shares, each representing one-one thousandth
(1/1,000 th) of one share of the Series C Preferred Stock, evidenced by a Receipt.

     “Depositary’s Agent” shall mean an agent appointed by the Depositary pursuant to Section 7.5.

     “Depositary’s Office” shall mean the office of the Depositary designated, at any particular
time, for administration of services it is to provide under this Agreement.

     “Person” shall mean any individual, firm, corporation, partnership, limited liability company,
limited partnership or other entity, and shall include any successor (by merger or otherwise) of
such entity.

     “Officer’s Certificate” means a certificate in substantially the form set forth as Exhibit B
hereto, which is signed by an officer of the Corporation and which shall include the terms and
conditions of the Series C Preferred Stock to be issued by the Corporation and deposited with the
Depositary from time to time in accordance with the terms hereof.

     “Receipt” shall mean one of the depositary receipts issued hereunder, substantially in the
form set forth as Exhibit A hereto, whether in definitive or temporary form, and evidencing the
number of Depositary Shares with respect to the Series C Preferred Stock held of record by the
Record Holder of such Depositary Shares.

     “Record Holder” or “Holder” as applied to a Receipt shall mean the person in whose name such
Receipt is registered on the books of the Depositary maintained for such purpose.

     “Registrar” shall mean the Depositary or such other successor bank or trust company which
shall be appointed by the Corporation to register ownership and transfers of Receipts as herein
provided and if a successor Registrar shall be so appointed, references herein

2

 

to “the books” of or maintained by the Depositary shall be deemed, as applicable, to refer as
well to the register maintained by such Registrar for such purpose.

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Series C Preferred Stock” shall mean the shares of the Corporation’s Series C Non-Cumulative
Perpetual Preferred Stock, no par value, with a liquidation preference of $25,000 per share,
designated in the Certificate and described in the Officer’s Certificate delivered pursuant to
Section 2.2 hereof.

ARTICLE II

FORM OF RECEIPTS, DEPOSIT OF SERIES C PREFERRED STOCK, EXECUTION AND

DELIVERY, TRANSFER, SURRENDER AND REDEMPTION OF RECEIPTS

     Section 2.1 Form and Transfer of Receipts. The definitive Receipts shall be
substantially in the form set forth in Exhibit A annexed to this Agreement, with appropriate
insertions, modifications and omissions, as hereinafter provided and shall be engraved or otherwise
prepared so as to comply with the applicable rules of the New York Stock Exchange. Pending the
preparation of definitive Receipts, the Depositary, upon the written order of the Corporation,
delivered in compliance with Section 2.2, shall execute and deliver temporary Receipts which may be
printed, lithographed, typewritten, mimeographed or otherwise substantially of the tenor of the
definitive Receipts in lieu of which they are issued and with such appropriate insertions,
omissions, substitutions and other variations as the persons executing such Receipts may determine,
as evidenced by their execution of such Receipts. If temporary Receipts are issued, the
Corporation and the Depositary will cause definitive Receipts to be prepared without unreasonable
delay. After the preparation of definitive Receipts, the temporary Receipts shall be exchangeable
for definitive Receipts upon surrender of the temporary Receipts at an office described in the
penultimate paragraph of Section 2.2, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Receipts, the Depositary shall execute and deliver in
exchange therefor definitive Receipts representing the same number of Depositary Shares as
represented by the surrendered temporary Receipt or Receipts. Such exchange shall be made at the
Corporation’s expense and without any charge therefor. Until so

3

 

exchanged, the temporary Receipts shall in all respects be entitled to the same benefits under
this Agreement as definitive Receipts.

     Receipts shall be executed by the Depositary by the manual signature of a duly authorized
officer of the Depositary; provided, that such signature may be a facsimile if a Registrar for the
Receipts (other than the Depositary) shall have been appointed and such Receipts are countersigned
by manual signature by a duly authorized officer of the Registrar. No Receipt shall be entitled to
any benefits under this Deposit Agreement or be valid or obligatory for any purpose unless it shall
have been executed manually by a duly authorized officer of the Depositary or, if a Registrar for
the Receipts (other than the Depositary) shall have been appointed, by manual or facsimile
signature of a duly authorized officer of the Depositary and countersigned by manual signature by a
duly authorized officer of such Registrar. The Depositary shall record on its books each Receipt
so signed and delivered as hereinafter provided.

     Receipts shall be in denominations of any number of whole Depositary Shares.

     Receipts may be endorsed with or have incorporated in the text thereof such legends or
recitals or changes not inconsistent with the provisions of this Deposit Agreement all as may be
required by the Depositary and approved by the Corporation or required to comply with any
applicable law or any regulation thereunder or with the rules and regulations of any securities
exchange upon which the Series C Preferred Stock, the Depositary Shares or the Receipts may be
listed or to conform with any usage with respect thereto, or to indicate any special limitations or
restrictions to which any particular Receipts are subject.

     Title to Depositary Shares evidenced by a Receipt which is properly endorsed or accompanied by
a properly executed instrument of transfer, shall be transferable by delivery with the same effect
as in the case of a negotiable instrument; provided, however, that until transfer of any particular
Receipt shall be registered on the books of the Depositary as provided in Section 2.3, the
Depositary may, notwithstanding any notice to the contrary, treat the Record Holder thereof at such
time as the absolute owner thereof for the purpose of determining the

4

 

person entitled to distributions of dividends or other distributions or to any notice provided
for in this Deposit Agreement and for all other purposes.

     Section 2.2 Deposit of Series C Preferred Stock; Execution and Delivery of Receipts in
Respect Thereof. Subject to the terms and conditions of this Deposit Agreement, the
Corporation may from time to time deposit shares of Series C Preferred Stock under this Deposit
Agreement by delivery to the Depositary of a certificate or certificates for such shares of Series
C Preferred Stock to be deposited, properly endorsed or accompanied, if required by the Depositary,
by a duly executed instrument of transfer or endorsement, in form satisfactory to the Depositary,
together with all such certifications as may be required by the Depositary in accordance with the
provisions of this Deposit Agreement and an executed Officer’s Certificate attaching the
Certificate and all other information required to be set forth therein, and together with a written
order of the Corporation directing the Depositary to execute and deliver to, or upon the written
order of, the person or persons stated in such order a Receipt or Receipts evidencing in the
aggregate the number of Depositary Shares representing such deposited Series C Preferred Stock.
Each Officer’s Certificate delivered to the Depositary in accordance with the terms of this Deposit
Agreement shall be deemed to be incorporated into this Deposit Agreement and shall be binding on
the Corporation, the Depositary and the Holders of Receipts to which such Officer’s Certificate
relates.

     The Series C Preferred Stock that is deposited shall be held by the Depositary at the
Depositary’s Office or at such other place or places as the Depositary shall determine. The
Depositary shall not lend any Series C Preferred Stock deposited hereunder.

     Upon receipt by the Depositary of a certificate or certificates for Series C Preferred Stock
deposited in accordance with the provisions of this Section, together with the other documents
required as above specified, and upon recordation of the Series C Preferred Stock on the books of
the Corporation (or its duly appointed transfer agent) in the name of the Depositary or its
nominee, the Depositary, subject to the terms and conditions of this Deposit Agreement, shall
execute and deliver to or upon the order of the person or persons named in the written order
delivered to the Depositary referred to in the first paragraph of this Section, a

5

 

Receipt or Receipts evidencing in the aggregate the number of Depositary Shares representing
the Series C Preferred Stock so deposited and registered in such name or names as may be requested
by such person or persons. The Depositary shall execute and deliver such Receipt or Receipts at
the Depositary’s Office or such other offices, if any, as the Depositary may designate. Delivery
at other offices shall be at the risk and expense of the person requesting such delivery.

     Section 2.3 Registration of Transfer of Receipts. Subject to the terms and conditions
of this Deposit Agreement, the Depositary shall register on its books from time to time transfers
of Receipts upon any surrender thereof by the Holder in person or by duly authorized attorney,
properly endorsed or accompanied by a properly executed instrument of transfer. Thereupon, the
Depositary shall execute a new Receipt or Receipts evidencing the same aggregate number of
Depositary Shares as those evidenced by the Receipt or Receipts surrendered and deliver such new
Receipt or Receipts to or upon the order of the person entitled thereto.

     Section 2.4 Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal
of Series C Preferred Stock. Upon surrender of a Receipt or Receipts at the Depositary’s
Office or at such other offices as it may designate for the purpose of effecting a split-up or
combination of such Receipt or Receipts, and subject to the terms and conditions of this Deposit
Agreement, the Depositary shall execute a new Receipt or Receipts in the authorized denomination or
denominations requested, evidencing the aggregate number of Depositary Shares evidenced by the
Receipt or Receipts surrendered, and shall deliver such new Receipt or Receipts to or upon the
order of the Holder of the Receipt or Receipts so surrendered.

     Any Holder of a Receipt or Receipts may withdraw the number of whole shares of Series C
Preferred Stock and all money and other property, if any, represented thereby by surrendering such
Receipt or Receipts at the Depositary’s Office or at such other offices as the Depositary may
designate for such withdrawals. Thereafter, without unreasonable delay, the Depositary shall
deliver to such Holder, or to the person or persons designated by such Holder as hereinafter
provided, the number of whole shares of Series C Preferred Stock and all money and other property,
if any, represented by the Receipt or Receipts so surrendered for withdrawal, but

6

 

Holders of such whole shares of Series C Preferred Stock will not thereafter be entitled to
deposit such Series C Preferred Stock hereunder or to receive a Receipt evidencing Depositary
Shares therefor. If a Receipt delivered by the Holder to the Depositary in connection with such
withdrawal shall evidence a number of Depositary Shares in excess of the number of Depositary
Shares representing the number of whole shares of Series C Preferred Stock, Depositary shall at the
same time, in addition to such number of whole shares of Series C Preferred Stock and such money
and other property, if any, to be so withdrawn, deliver to such Holder, or subject to Section 2.3
upon his order, a new Receipt evidencing such excess number of Depositary Shares.

     In no event will fractional shares of Series C Preferred Stock (or any cash payment in lieu
thereof) be delivered by the Depositary. Delivery of the Series C Preferred Stock and money and
other property, if any, being withdrawn may be made by the delivery of such certificates, documents
of title and other instruments as the Depositary may deem appropriate.

     If the Series C Preferred Stock and the money and other property, if any, being withdrawn are
to be delivered to a person or persons other than the Record Holder of the related Receipt or
Receipts being surrendered for withdrawal of such Series C Preferred Stock, such Holder shall
execute and deliver to the Depositary a written order so directing the Depositary and the
Depositary may require that the Receipt or Receipts surrendered by such Holder for withdrawal of
such shares of Series C Preferred Stock be properly endorsed in blank or accompanied by a properly
executed instrument of transfer in blank.

     Delivery of the Series C Preferred Stock and the money and other property, if any, represented
by Receipts surrendered for withdrawal shall be made by the Depositary at the Depositary’s Office,
except that, at the request, risk and expense of the Holder surrendering such Receipt or Receipts
and for the account of the Holder thereof, such delivery may be made at such other place as may be
designated by such Holder.

     Section 2.5 Limitations on Execution and Delivery, Transfer, Surrender and Exchange of
Receipts. As a condition precedent to the execution and delivery, registration of transfer,
split-up, combination, surrender or exchange of any Receipt, the Depositary, any of the

7

 

Depositary’s Agents or the Corporation may require payment to it of a sum sufficient for the
payment (or, in the event that the Depositary or the Corporation shall have made such payment, the
reimbursement to it) of any charges or expenses payable by the Holder of a Receipt pursuant to
Section 5.7, may require the production of evidence satisfactory to it as to the identity and
genuineness of any signature, and may also require compliance with such regulations, if any, as the
Depositary or the Corporation may establish consistent with the provisions of this Deposit
Agreement and/or applicable law.

     The deposit of the Series C Preferred Stock may be refused, the delivery of Receipts against
Series C Preferred Stock may be suspended, the registration of transfer of Receipts may be refused
and the registration of transfer, surrender or exchange of outstanding Receipts may be suspended
(i) during any period when the register of stockholders of the Corporation is closed or (ii) if any
such action is deemed necessary or advisable by the Depositary, any of the Depositary’s Agents or
the Corporation at any time or from time to time because of any requirement of law or of any
government or governmental body or commission or under any provision of this Deposit Agreement.

     Section 2.6 Lost Receipts, etc. In case any Receipt shall be mutilated, destroyed,
lost or stolen, the Depositary in its discretion may execute and deliver a Receipt of like form and
tenor in exchange and substitution for such mutilated Receipt, or in lieu of and in substitution
for such destroyed, lost or stolen Receipt, upon (i) the filing by the Holder thereof with the
Depositary of evidence satisfactory to the Depositary of such destruction or loss or theft of such
Receipt, of the authenticity thereof and of his or her ownership thereof and (ii) the Holder
thereof furnishing of the Depositary with reasonable indemnification satisfactory to the Depositary
and the Corporation.

     Section 2.7 Cancellation and Destruction of Surrendered Receipts. Receipts
surrendered to the Depositary or any Depositary’s Agent shall be cancelled by the Depositary.
Except as prohibited by applicable law or regulation, the Depositary is authorized and directed to
destroy all Receipts so cancelled.

8

 

     Section 2.8 Redemption of Series C Preferred Stock. Whenever the Corporation shall be
permitted and shall elect to redeem shares of Series C Preferred Stock in accordance with the terms
of the Certificate, it shall (unless otherwise agreed to in writing with the Depositary) give or
cause to be given to the Depositary, not less than 30 days and not more than 60 days prior to the
Redemption Date (as defined below), notice of the date of such proposed redemption of Series C
Preferred Stock and of the number of such shares held by the Depositary to be so redeemed and the
applicable redemption price, which notice shall be accompanied by a certificate from the
Corporation stating that such redemption of Series C Preferred Stock is in accordance with the
provisions of the Certificate. On the date of such redemption, provided that the Corporation shall
then have paid or caused to be paid in full to the Depositary the redemption price of the Series C
Preferred Stock to be redeemed, plus an amount equal to any declared and unpaid dividends thereon
to the date fixed for redemption, in accordance with the provisions of the Certificate, the
Depositary shall redeem the number of Depositary Shares representing such Series C Preferred Stock.
The Depositary shall mail or cause to be mailed notice of the Corporation’s redemption of Series C
Preferred Stock and the proposed simultaneous redemption of the number of Depositary Shares
representing the Series C Preferred Stock to be redeemed by first-class mail, postage prepaid, not
less than 30 days and not more than 60 days prior to the date fixed for redemption of such Series C
Preferred Stock and Depositary Shares (the “Redemption Date”), to the Record Holders of the
Receipts evidencing the Depositary Shares to be so redeemed at their respective last addresses as
they appear on the records of the Depositary; but neither failure to mail any such notice of
redemption of Depositary Shares to one or more such Holders nor any defect in any notice of
redemption of Depositary Shares to one or more such Holders shall affect the sufficiency of the
proceedings for redemption as to the other Holders. Each such notice shall be prepared by the
Corporation and shall state: (i) the Redemption Date; (ii) the number of Depositary Shares to be
redeemed and, if less than all the Depositary Shares held by any such Holder are to be redeemed,
the number of such Depositary Shares held by such Holder to be so redeemed; (iii) the redemption
price; (iv) the place or places where Receipts evidencing such Depositary Shares are to be
surrendered for payment of the redemption price; and (v) that dividends in respect of the Series C
Preferred Stock represented by such Depositary Shares to be redeemed will cease to accrue on such
Redemption Date. In case less than all the

9

 

outstanding Depositary Shares are to be redeemed, the Depositary Shares to be so redeemed
shall be selected by the Depositary pro rata or in such other manner as determined by the
Depositary to be equitable. In any such case, the Depositary Shares will be redeemed in increments
of one thousand (1,000) shares and any multiple thereof.

     Notice having been mailed by the Depositary as aforesaid, from and after the Redemption Date
(unless the Corporation shall have failed to provide the funds necessary to redeem the Series C
Preferred Stock evidenced by the Depositary Shares called for redemption) (i) dividends on the
shares of Series C Preferred Stock so called for Redemption shall cease to accrue from and after
such date, (ii) the Depositary Shares being redeemed from such proceeds shall be deemed no longer
to be outstanding, (iii) all rights of the Holders of Receipts evidencing such Depositary Shares
(except the right to receive the redemption price) shall, to the extent of such Depositary Shares,
cease and terminate, and (iv) upon surrender in accordance with such redemption notice of the
Receipts evidencing any such Depositary Shares called for redemption (properly endorsed or assigned
for transfer, if the Depositary or applicable law shall so require), such Depositary Shares shall
be redeemed by the Depositary at a redemption price per Depositary Share equal to one-one
thousandth of the redemption price per share of Series C Preferred Stock so redeemed plus all money
and other property, if any, represented by such Depositary Shares, including all amounts paid by
the Corporation in respect of dividends which on the Redemption Date have been declared on the
shares of Series C Preferred Stock to be so redeemed and have not therefore been paid.

     If fewer than all of the Depositary Shares evidenced by a Receipt are called for redemption,
the Depositary will deliver to the Holder of such Receipt upon its surrender to the Depositary,
together with the redemption payment, a new Receipt evidencing the Depositary Shares evidenced by
such prior Receipt and not called for redemption.

10

 

ARTICLE III

CERTAIN OBLIGATIONS OF

HOLDERS OF RECEIPTS AND THE CORPORATION

     Section 3.1 Filing Proofs, Certificates and Other Information. Any Holder of a
Receipt may be required from time to time to file such proof of residence, or other matters or
other information, to execute such certificates and to make such representations and warranties as
the Depositary or the Corporation may reasonably deem necessary or proper. The Depositary or the
Corporation may withhold the delivery, or delay the registration of transfer or redemption, of any
Receipt or the withdrawal of the Series C Preferred Stock represented by the Depositary Shares and
evidenced by a Receipt or the distribution of any dividend or other distribution or the sale of any
rights or of the proceeds thereof until such proof or other information is filed or such
certificates are executed or such representations and warranties are made.

     Section 3.2 Payment of Taxes or Other Governmental Charges. Holders of Receipts shall
be obligated to make payments to the Depositary of certain charges and expenses, as provided in
Section 5.7. Registration of transfer of any Receipt or any withdrawal of Series C Preferred Stock
and all money or other property, if any, represented by the Depositary Shares evidenced by such
Receipt may be refused until any such payment due is made, and any dividends, interest payments or
other distributions may be withheld or any part of or all the Series C Preferred Stock or other
property represented by the Depositary Shares evidenced by such Receipt and not theretofore sold
may be sold for the account of the Holder thereof (after attempting by reasonable means to notify
such Holder prior to such sale), and such dividends, interest payments or other distributions or
the proceeds of any such sale may be applied to any payment of such charges or expenses, the Holder
of such Receipt remaining liable for any deficiency.

     Section 3.3 Warranty as to Series C Preferred Stock. The Corporation hereby
represents and warrants that the Series C Preferred Stock, when issued, will be duly authorized,
validly issued, fully paid and nonassessable. Such representation and warranty shall survive the
deposit of the Series C Preferred Stock and the issuance of the related Receipts.

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     Section 3.4 Warranty as to Receipts. The Corporation hereby represents and warrants
that the Receipts, when issued, will represent legal and valid interests in the Series C Preferred
Stock. Such representation and warranty shall survive the deposit of the Series C Preferred Stock
and the issuance of the Receipts.

ARTICLE IV

THE DEPOSITED SECURITIES; NOTICES

     Section 4.1 Cash Distributions. Whenever the Depositary shall receive any cash
dividend or other cash distribution on the Series C Preferred Stock, the Depositary shall, subject
to Sections 3.1 and 3.2, distribute to Record Holders of Receipts on the record date fixed pursuant
to Section 4.4 such amounts of such dividend or distribution as are, as nearly as practicable, in
proportion to the respective numbers of Depositary Shares evidenced by the Receipts held by such
Holders; provided, however, that in case the Corporation or the Depositary shall be required to
withhold and shall withhold from any cash dividend or other cash distribution in respect of the
Series C Preferred Stock an amount on account of taxes, the amount made available for distribution
or distributed in respect of Depositary Shares shall be reduced accordingly. The Depositary shall
distribute or make available for distribution, as the case may be, only such amount, however, as
can be distributed without attributing to any Holder of Receipts a fraction of one cent, and any
balance not so distributable shall be held by the Depositary (without liability for interest
thereon) and shall be added to and be treated as part of the next sum received by the Depositary
for distribution to Record Holders of Receipts then outstanding. Each Holder of a Receipt shall
provide the Depositary with its certified tax identification number on a properly completed Form
W-8 or W-9, as may be applicable. Each Holder of a Receipt acknowledges that, in the event of
non-compliance with the preceding sentence, the Internal Revenue Code of 1986, as amended, may
require withholding by the Depositary of a portion of any of the distributions to be made
hereunder.

     Section 4.2 Distributions Other than Cash, Rights, Preferences or Privileges.
Whenever the Depositary shall receive any distribution other than cash, rights, preferences or
privileges upon the Series C Preferred Stock, the Depositary shall, subject to Sections 3.1 and

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3.2, distribute to Record Holders of Receipts on the record date fixed pursuant to Section 4.4
such amounts of the securities or property received by it as are, as nearly as practicable, in
proportion to the respective numbers of Depositary Shares evidenced by such Receipts held by such
Holders, in any manner that the Depositary may deem equitable and practicable for accomplishing
such distribution. If in the opinion of the Depositary such distribution cannot be made
proportionately among such Record Holders, or if for any other reason (including any requirement
that the Corporation or the Depositary withhold an amount on account of taxes) the Depositary
deems, after consultation with the Corporation, such distribution not to be feasible, the
Depositary may, with the approval of the Corporation, adopt such method as it deems equitable and
practicable for the purpose of effecting such distribution, including the sale (at public or
private sale) of the securities or property thus received, or any part thereof, in a commercially
reasonable manner. The net proceeds of any such sale shall, subject to Sections 3.1 and 3.2, be
distributed or made available for distribution, as the case may be, by the Depositary to Record
Holders of Receipts as provided by Section 4.1 in the case of a distribution received in cash. The
Corporation shall not make any distribution of such securities or property to the Depositary and
the Depositary shall not make any distribution of such securities or property to the Holders of
Receipts unless the Corporation shall have provided an opinion of counsel stating that such
securities or property have been registered under the Securities Act or do not need to be
registered in connection with such distributions.

     Section 4.3 Subscription Rights, Preferences or Privileges. If the Corporation shall
at any time offer or cause to be offered to the persons in whose names the Series C Preferred Stock
is recorded on the books of the Corporation any rights, preferences or privileges to subscribe for
or to purchase any securities or any rights, preferences or privileges of any other nature, such
rights, preferences or privileges shall in each such instance be made available by the Depositary
to the Record Holders of Receipts in such manner as the Depositary may determine, either by the
issue to such Record Holders of warrants representing such rights, preferences or privileges or by
such other method as may be approved by the Depositary in its discretion with the approval of the
Corporation; provided, however, that (i) if at the time of issue or offer of any such rights,
preferences or privileges the Depositary determines that it is not lawful or (after

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consultation with the Corporation) not feasible to make such rights, preferences or privileges
available to Holders of Receipts by the issue of warrants or otherwise, or (ii) if and to the
extent so instructed by Holders of Receipts who do not desire to exercise such rights, preferences
or privileges, then the Depositary, in its discretion (with approval of the Corporation, in any
case where the Depositary has determined that it is not feasible to make such rights, preferences
or privileges available), may, if applicable laws or the terms of such rights, preferences or
privileges permit such transfer, sell such rights, preferences or privileges at public or private
sale, at such place or places and upon such terms as it may deem proper. The net proceeds of any
such sale shall, subject to Sections 3.1 and 3.2, be distributed by the Depositary to the Record
Holders of Receipts entitled thereto as provided by Section 4.1 in the case of a distribution
received in cash.

     The Corporation shall notify the Depositary whether registration under the Securities Act of
the securities to which any rights, preferences or privileges relate is required in order for
Holders of Receipts to be offered or sold the securities to which such rights, preferences or
privileges relate, and the Corporation agrees with the Depositary that it will file promptly a
registration statement pursuant to the Securities Act with respect to such rights, preferences or
privileges and securities and use its best efforts and take all steps available to it to cause such
registration statement to become effective sufficiently in advance of the expiration of such
rights, preferences or privileges to enable such Holders to exercise such rights, preferences or
privileges. In no event shall the Depositary make available to the Holders of Receipts any right,
preference or privilege to subscribe for or to purchase any securities unless and until such
registration statement shall have become effective, or the Corporation shall have provided to the
Depositary an opinion of counsel to the effect that the offering and sale of such securities to the
Holders are exempt from registration under the provisions of the Securities Act.

     The Corporation shall notify the Depositary whether any other action under the laws of any
jurisdiction or any governmental or administrative authorization, consent or permit is required in
order for such rights, preferences or privileges to be made available to Holders of Receipts, and
the Corporation agrees with the Depositary that the Corporation will use its reasonable best
efforts to take such action or obtain such authorization, consent or permit

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sufficiently in advance of the expiration of such rights, preferences or privileges to enable
such Holders to exercise such rights, preferences or privileges.

     Section 4.4 Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts.
Whenever any cash dividend or other cash distribution shall become payable or any distribution
other than cash shall be made, or if rights, preferences or privileges shall at any time be
offered, with respect to the Series C Preferred Stock, or whenever the Depositary shall receive
notice of any meeting at which holders of the Series C Preferred Stock are entitled to vote or of
which holders of the Series C Preferred Stock are entitled to notice, or whenever the Depositary
and the Corporation shall decide it is appropriate, the Depositary shall in each such instance fix
a record date (which shall be the same date as the record date fixed by the Corporation with
respect to or otherwise in accordance with the terms of the Series C Preferred Stock) for the
determination of the Holders of Receipts who shall be entitled to receive such dividend,
distribution, rights, preferences or privileges or the net proceeds of the sale thereof, or to give
instructions for the exercise of voting rights at any such meeting, or who shall be entitled to
notice of such meeting or for any other appropriate reasons.

     Section 4.5 Voting Rights. Subject to the provisions of the Certificate, upon receipt
of notice of any meeting at which the holders of the Series C Preferred Stock are entitled to vote,
the Depositary shall, as soon as practicable thereafter, mail to the Record Holders of Receipts a
notice prepared by the Corporation which shall contain (i) such information as is contained in such
notice of meeting and (ii) a statement that the Holders may, subject to any applicable
restrictions, instruct the Depositary as to the exercise of the voting rights pertaining to the
amount of Series C Preferred Stock represented by their respective Depositary Shares (including an
express indication that instructions may be given to the Depositary to give a discretionary proxy
to a person designated by the Corporation) and a brief statement as to the manner in which such
instructions may be given. Upon the written request of the Holders of Receipts on the relevant
record date, the Depositary shall endeavor insofar as practicable to vote or cause to be voted, in
accordance with the instructions set forth in such requests, the maximum number of whole shares of
Series C Preferred Stock represented by the Depositary Shares evidenced by all Receipts as to which
any particular voting instructions are received. The

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Corporation hereby agrees to take all reasonable action which may be deemed necessary by the
Depositary in order to enable the Depositary to vote such Series C Preferred Stock or cause such
Series C Preferred Stock to be voted. In the absence of specific instructions from Holders of
Receipts, the Depositary will vote the Series C Preferred Stock represented by the Depositary
Shares evidenced by the Receipts of such Holders proportionately with votes cast pursuant to
instructions received from the other Holders.

     Section 4.6 Changes Affecting Deposited Securities and Reclassifications,
Recapitalizations, etc. Upon any change in par or stated value, split-up, combination or any
other reclassification of the Series C Preferred Stock, subject to the provisions of the
Certificate, or upon any recapitalization, reorganization, merger or consolidation affecting the
Corporation or to which it is a party, the Depositary may in its discretion with the approval of,
and shall upon the instructions of, the Corporation, and (in either case) in such manner as the
Depositary may deem equitable, (i) make such adjustments as are certified by the Corporation in the
fraction of an interest represented by one Depositary Share in one share of Series C Preferred
Stock and in the ratio of the redemption price per Depositary Share to the redemption price per
share of Series C Preferred Stock, in each case as may be necessary fully to reflect the effects of
such change in par or stated value, split-up, combination or other reclassification of the Series C
Preferred Stock, or of such recapitalization, reorganization, merger or consolidation and (ii)
treat any securities which shall be received by the Depositary in exchange for or upon conversion
of or in respect of the Series C Preferred Stock as new deposited securities so received in
exchange for or upon conversion or in respect of such Series C Preferred Stock. In any such case
the Depositary may in its discretion, with the approval of the Corporation, execute and deliver
additional Receipts or may call for the surrender of all outstanding Receipts to be exchanged for
new Receipts specifically describing such new deposited securities. Anything to the contrary
herein notwithstanding, Holders of Receipts shall have the right from and after the effective date
of any such change in par or stated value, split-up, combination or other reclassification of the
Series C Preferred Stock or any such recapitalization, reorganization, merger or consolidation to
surrender such Receipts to the Depositary with instructions to convert, exchange or surrender the
Series C Preferred Stock represented thereby only into or for, as the case may be, the kind and
amount of

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shares and other securities and property and cash into which the Series C Preferred Stock
represented by such Receipts might have been converted or for which such Series C Preferred Stock
might have been exchanged or surrendered immediately prior to the effective date of such
transaction.

     Section 4.7 Delivery of Reports. The Depositary shall furnish to Holders of Receipts
any reports and communications received from the Corporation which is received by the Depositary
and which the Corporation is required to furnish to the holders of the Series C Preferred Stock.

     Section 4.8 Lists of Receipt Holders. Reasonably promptly upon request from time to
time by the Corporation, at the sole expense of the Corporation, the Depositary shall furnish to it
a list, as of the most recent practicable date, of the names, addresses and holdings of Depositary
Shares of all registered Holders of Receipts.

ARTICLE V

THE DEPOSITARY, THE DEPOSITARY’S

AGENTS, THE REGISTRAR AND THE CORPORATION

     Section 5.1 Maintenance of Offices, Agencies and Transfer Books by the Depositary;
Registrar. Upon execution of this Deposit Agreement, the Depositary shall maintain at the
Depositary’s Office, facilities for the execution and delivery, registration and registration of
transfer, surrender and exchange of Receipts, and at the offices of the Depositary’s Agents, if
any, facilities for the delivery, registration of transfer, surrender and exchange of Receipts, all
in accordance with the provisions of this Deposit Agreement. The Corporation shall provide to the
Depositary such documents as are listed in Schedule 1 attached hereto.

     The Depositary shall keep books at the Depositary’s Office for the registration and
registration of transfer of Receipts, which books at all reasonable times shall be open for
inspection by the Record Holders of Receipts; provided that any such Holder requesting to exercise
such right shall certify to the Depositary that such inspection shall be for a proper

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purpose reasonably related to such person’s interest as an owner of Depositary Shares
evidenced by the Receipts.

     The Depositary may close such books, at any time or from time to time, when deemed expedient
by it in connection with the performance of its duties hereunder.

     The Depositary may, with the approval of the Corporation, appoint a Registrar for registration
of the Receipts or the Depositary Shares evidenced thereby. If the Receipts or the Depositary
Shares evidenced thereby or the Series C Preferred Stock represented by such Depositary Shares
shall be listed on one or more national securities exchanges, the Depositary will appoint a
Registrar (acceptable to the Corporation) for registration of the Receipts or Depositary Shares in
accordance with any requirements of such exchange. Such Registrar (which may be the Depositary if
so permitted by the requirements of any such exchange) may be removed and a substitute registrar
appointed by the Depositary upon the request or with the approval of the Corporation. If the
Receipts, Depositary Shares or Series C Preferred Stock are listed on one or more other securities
exchanges, the Depositary will, at the request of the Corporation, arrange such facilities for the
delivery, registration, registration of transfer, surrender and exchange of the Receipts,
Depositary Shares or Series C Preferred Stock as may be required by law or regulations of the
applicable securities exchange.

     Section 5.2 Prevention of or Delay in Performance by the Depositary, the Depositary’s
Agents, the Registrar or the Corporation. Neither the Depositary nor any Depositary’s Agent
nor any Registrar nor the Corporation shall incur any liability to any Holder of a Receipt if by
reason of any provision of any present or future law, or regulation thereunder, of the United
States of America or of any other governmental authority or, in the case of the Depositary, the
Depositary’s Agent or the Registrar, by reason of any provision, present or future, of the
Corporation’s Articles of Incorporation (including the Certificate) or by reason of any act of God
or war or other circumstance beyond the control of the relevant party, the Depositary, the
Depositary’s Agent, the Registrar or the Corporation shall be prevented or forbidden from, or
subjected to any penalty on account of, doing or performing any act or thing which the terms of
this Deposit Agreement provide shall be done or performed; nor shall the

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Depositary, any Depositary’s Agent, any Registrar or the Corporation incur liability to any
Holder of a Receipt (i) by reason of any nonperformance or delay, caused as aforesaid, in the
performance of any act or thing which the terms of this Deposit Agreement shall provide shall or
may be done or performed, or (ii) by reason of any exercise of, or failure to exercise, any
discretion provided for in this Deposit Agreement except as otherwise explicitly set forth in this
Deposit Agreement.

     Section 5.3 Obligations of the Depositary, the Depositary’s Agents, the Registrar and the
Corporation. Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the
Corporation assumes any obligation or shall be subject to any liability under this Deposit
Agreement to Holders of Receipts or any other Person other than for its negligence, willful
misconduct or bad faith (each as determined by the final, non-appealable order of a court of
competent jurisdiction). Notwithstanding anything in this Agreement to the contrary, neither the
Depositary, nor the Depositary’s Agent nor any Registrar nor the Corporation shall be liable in any
event for special, punitive, incidental, indirect or consequential losses or damages of any kind
whatsoever (including but not limited to lost profits) even if it has been advised of the
likelihood of such loss or damage. Notwithstanding anything in this Agreement to the contrary, the
Depositary’s liability under this Agreement will be limited to the amount of fees paid the
Depositary pursuant hereto. The provisions of this paragraph shall survive the termination of this
Agreement and/or the replacement of the Depositary.

     Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the Corporation shall
be under any obligation to appear in, prosecute or defend any action, suit or other proceeding in
respect of the Series C Preferred Stock, the Depositary Shares or the Receipts which in its opinion
may involve it in expense or liability unless indemnity satisfactory to it against all expense and
liability be furnished as often as may be required. The provisions of this paragraph shall survive
the termination of this Agreement and/or the replacement of the Depositary.

     Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the Corporation shall
be liable for any action or any failure to act by it in reliance upon the advice or

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opinion of legal counsel or accountants of its own selection, which legal counsel or
accountants may be counsel or accountants, respectively, to one or more of the parties to this
Agreement, or information from any person presenting Series C Preferred Stock for deposit, any
Holder of a Receipt or any other person believed by it in good faith to be competent to give such
information. The Depositary, any Depositary’s Agent, any Registrar and the Corporation may each
rely and shall each be protected in acting upon or omitting to act upon any written notice,
request, direction or other document believed by it to be genuine and to have been signed or
presented by the proper party or parties. The Depositary will indemnify the Corporation against
any liability which may directly arise out of acts performed or omitted by the Depositary due to
its negligence, willful misconduct or bad faith (each as determined by the final, non-appealable
order of a court of competent jurisdiction). The provisions of this paragraph shall survive the
termination of this Agreement and/or the replacement of the Depositary.

     The Depositary shall not be responsible for any failure to carry out any instruction to vote
any of the shares of Series C Preferred Stock or for the manner or effect of any such vote made, as
long as any such action or non-action is not taken in bad faith (as determined by the final,
non-appealable order of a court of competent jurisdiction). The Depositary undertakes, and any
Registrar shall be required to undertake, to perform such duties and only such duties as are
expressly and specifically set forth in this Agreement, and no implied covenants or obligations
shall be read into this Agreement against the Depositary or any Registrar.

     The Depositary, the Depositary’s Agents, and any Registrar may own and deal in any class of
securities of the Corporation and its affiliates and in Receipts. The Depositary may also act as
transfer agent or registrar of any of the securities of the Corporation and its affiliates.

     Notwithstanding anything herein to the contrary, no provision of this Agreement shall require
the Depositary to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of its rights if there shall be
reasonable grounds for believing that repayment of such funds or adequate indemnification against
such risk or liability is not reasonably assured to it.

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     The Depositary shall not be under any liability for interest on any monies at any time
received by it pursuant to any of the provisions of this Agreement or of the Receipts, the
Depositary Shares or the Series C Preferred Stock nor shall it be obligated to segregate such
monies from other monies held by it, except as required by law. The Depositary shall not be
responsible for advancing funds on behalf of the Corporation and shall have no duty or obligation
to make any payments if it has not timely received sufficient funds to make timely payments.

     In the event the Depositary believes any ambiguity or uncertainty exists hereunder or in any
notice, instruction, direction, request or other communication, paper or document received by the
Depositary hereunder, or in the administration of any of the provisions of this Agreement, the
Depositary shall deem it necessary or desirable that a matter be proved or established prior to
taking, omitting or suffering to take any action hereunder, the Depositary may, in its sole
discretion upon written notice to the Corporation, refrain from taking any action and shall be
fully protected and shall not be liable in any way to the Corporation, any Holders of Receipts or
any other person or entity for refraining from taking such action, unless the Depositary receives
written instructions or a certificate signed by the Corporation which eliminates such ambiguity or
uncertainty to the satisfaction of the Depositary or which proves or establishes the applicable
matter to the satisfaction of the Depositary.

     Section 5.4 Resignation and Removal of the Depositary; Appointment of Successor
Depositary. The Depositary may at any time resign as Depositary hereunder by delivering notice
of its election to do so to the Corporation, such resignation to take effect upon the appointment
of a successor Depositary and its acceptance of such appointment as hereinafter provided.

     The Depositary may at any time be removed by the Corporation by notice of such removal
delivered to the Depositary, such removal to take effect upon the appointment of a successor
Depositary hereunder and its acceptance of such appointment as hereinafter provided.

     In case at any time the Depositary acting hereunder shall resign or be removed, the
Corporation shall, within 60 days after the delivery of the notice of resignation or removal, as

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the case may be, appoint a successor Depositary, which shall be a Person which is, or is the
affiliate of another Person that is, authorized under the laws of the United States of America or
under one or more states of the United States of America to exercise corporate trust or banking
powers, having its principal office in the United States of America and having a combined capital
and surplus of at least $50,000,000. If no successor Depositary shall have been so appointed and
have accepted appointment within 60 days after delivery of such notice, the resigning or removed
Depositary may petition any court of competent jurisdiction for the appointment of a successor
Depositary. Every successor Depositary shall execute and deliver to its predecessor and to the
Corporation an instrument in writing accepting its appointment hereunder, and thereupon such
successor Depositary, without any further act or deed, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor and for all purposes shall be the
Depositary under this Deposit Agreement, and such predecessor, upon payment of all sums due it and
on the written request of the Corporation, shall promptly execute and deliver an instrument
transferring to such successor all rights and powers of such predecessor hereunder, shall duly
assign, transfer and deliver all right, title and interest in the Series C Preferred Stock and any
moneys or property held hereunder to such successor, and shall deliver to such successor a list of
the Record Holders of all outstanding Receipts and such records, books and other information in its
possession relating thereto. Any successor Depositary shall promptly mail notice of its
appointment to the Record Holders of Receipts.

     Any Person into or with which the Depositary may be merged, consolidated or converted shall be
the successor of the Depositary without the execution or filing of any document or any further act,
and notice thereof shall not be required hereunder. Such successor Depositary may authenticate the
Receipts in the name of the predecessor Depositary or its own name as successor Depositary. Such
successors must satisfy the requirements of a successor Depositary as described above.

     Section 5.5 Corporate Notices and Reports. The Corporation agrees that it will
deliver to the Depositary, and the Depositary will, promptly after receipt thereof, transmit to the
Record Holders of Receipts, in each case at the addresses recorded in the Depositary’s books,
copies of all notices and reports (including without limitation financial statements) required by

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law, by the rules of any national securities exchange upon which the Series C Preferred Stock,
the Depositary Shares or the Receipts are listed or by the Corporation’s Restated Certificate of
Incorporation (including the Certificate), to be furnished to the Record Holders of Receipts. Such
transmission will be at the Corporation’s expense and the Corporation will provide the Depositary
with such number of copies of such documents as the Depositary may reasonably request. In
addition, the Depositary will transmit to the Record Holders of Receipts at the Corporation’s
expense such other documents as may be requested by the Corporation.

     Section 5.6 Indemnification by the Corporation. Notwithstanding Section 5.3 to the
contrary, the Corporation shall indemnify the Depositary, any Depositary’s Agent and any Registrar
(including each of their officers, directors, agents and employees) against, and hold each of them
harmless from, any loss, damage, cost, penalty, liability or expense (including the reasonable
costs and expenses of defending itself) which may arise out of acts performed, suffered or omitted
to be taken in connection with this Agreement and the Receipts by the Depositary, any Registrar or
any of their respective agents (including any Depositary’s Agent) and any transactions or documents
contemplated hereby, except for any liability arising out of negligence, willful misconduct or bad
faith (each as determined by the final, non-appealable order of a court of competent jurisdiction)
on the respective parts of any such person or persons. The obligations of the Corporation set
forth in this Section 5.6 shall survive any succession of any Depositary, Registrar or Depositary’s
Agent.

     Section 5.7 Fees, Charges and Expenses. The Corporation agrees to promptly compensate
the Depositary hereunder, in accordance with fee schedule listed in Schedule 2 attached hereto (the
“Fees”). The Fees may be adjusted annually. The Corporation also agrees to reimburse the
Depositary for its reasonable out-of-pocket expenses (including reasonable counsel fees and
expenses) incurred by the Depositary without negligence, willful misconduct or bad faith (each as
determined by the final, non-appealable order of a court of competent jurisdiction) on its part (or
on the part of any agent or Depositary Agent) in connection with the services rendered by it (or
such agent or Depositary Agent) hereunder. The Corporation shall pay all charges of the Depositary
in connection with the initial deposit of the Series C Preferred Stock and the initial issuance of
the Depositary Shares, all withdrawals of shares of Series C

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Preferred Stock by owners of Depositary Shares, and any redemption or exchange of the Series C
Preferred Stock at the option of the Corporation. The Corporation shall pay all transfer and other
taxes and governmental charges arising solely from the existence of the depositary arrangements.
All other transfer and other taxes and governmental charges shall be at the expense of Holders of
Depositary Shares evidenced by Receipts. If, at the request of a Holder of Receipts, the
Depositary incurs charges or expenses for which the Corporation is not otherwise liable hereunder,
such Holder will be liable for such charges and expenses; provided, however, that the Depositary
may, at its sole option, require a Holder of a Receipt to prepay the Depositary any charge or
expense the Depositary has been asked to incur at the request of such Holder of Receipts. The
Depositary shall present its statement for charges and expenses to the Corporation at such
intervals as the Corporation and the Depositary may agree.

ARTICLE VI

AMENDMENT AND TERMINATION

     Section 6.1 Amendment. The form of the Receipts and any provisions of this Deposit
Agreement may at any time and from time to time be amended by agreement between the Corporation and
the Depositary in any respect which they may deem necessary or desirable; provided, however, that
no such amendment which shall materially and adversely alter the rights of the Holders of Receipts
shall be effective against the Holders of Receipts unless such amendment shall have been approved
by the Holders of Receipts representing in the aggregate at least a two-thirds majority of the
Depositary Shares then outstanding. Every Holder of an outstanding Receipt at the time any such
amendment becomes effective shall be deemed, by continuing to hold such Receipt, to consent and
agree to such amendment and to be bound by the Depositary Agreement as amended thereby. In no
event shall any amendment impair the right, subject to the provisions of Sections 2.5 and 2.6 and
Article III, of any owner of Depositary Shares to surrender any Receipt evidencing such Depositary
Shares to the Depositary with instructions to deliver to the Holder the Series C Preferred Stock
and all money and other property, if any, represented thereby, except in order to comply with
mandatory provisions of applicable law or the rules and regulations of any governmental body,
agency or commission, or applicable securities exchange.

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     Section 6.2 Termination. This Agreement may be terminated by the Corporation or the
Depositary only if (i) all outstanding Depositary Shares issued hereunder have been redeemed
pursuant to Section 2.8, (ii) there shall have been made a final distribution in respect of the
Series C Preferred Stock in connection with any liquidation, dissolution or winding up of the
Corporation and such distribution shall have been distributed to the Holders of Receipts
representing Depositary Shares pursuant to Section 4.1 or 4.2, as applicable or (iii) upon the
consent of Holders of Receipts representing in the aggregate not less than two-thirds of the
Depositary Shares outstanding.

     Upon the termination of this Deposit Agreement, the Corporation shall be discharged from all
obligations under this Deposit Agreement except for its obligations to the Depositary, any
Depositary’s Agent and any Registrar under Sections 5.6 and 5.7.

ARTICLE VII

MISCELLANEOUS

     Section 7.1 Counterparts. This Deposit Agreement may be executed in any number of
counterparts, and by each of the parties hereto on separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed an original, but all such
counterparts taken together shall constitute one and the same instrument.

     Section 7.2 Exclusive Benefit of Parties. This Deposit Agreement is for the exclusive
benefit of the parties hereto, and their respective successors hereunder, and shall not be deemed
to give any legal or equitable right, remedy or claim to any other person whatsoever.

     Section 7.3 Invalidity of Provisions. In case any one or more of the provisions
contained in this Deposit Agreement or in the Receipts should be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
contained herein or therein shall in no way be affected, prejudiced or disturbed thereby.

     Section 7.4 Notices. Any and all notices to be given to the Corporation hereunder or
under the Receipts shall be in writing and shall be deemed to have been duly given if

25

 

personally delivered or sent by mail, or facsimile transmission or electronic mail, confirmed
by letter, addressed to the Corporation at

Sovereign Bancorp, Inc.

1130 Berkshire Blvd.

Wyomissing, PA 19610

Attention: Stacey Weikel and Matt Jozwiak

Facsimile No.: (610) 320-8448

or at any other addresses of which the Corporation shall have notified the Depositary in writing.

     Any and all notices to be given to the Depositary hereunder or under the Receipts shall be in
writing and shall be deemed to have been duly given if personally delivered or sent by mail, or by
facsimile transmission confirmed by letter, addressed to the Depositary at the Depositary’s Office
at

Mellon Investor Services LLC

Suite 2122, One Mellon Center

500 Grant Street

Pittsburgh, PA 15258-0001

Attention: Relationship Manager

with a copy to (which copy shall not constitute notice):

Mellon Investor Services LLC

Newport Office Center VII

480 Washington Blvd.

Jersey City, New Jersey 07310

Attention: General Counsel

     or at any other address of which the Depositary shall have notified the Corporation in writing.

     Any and all notices to be given to any Record Holder of a Receipt hereunder or under the
Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or
sent by mail or facsimile transmission confirmed by letter, addressed to such Record Holder at the
address of such Record Holder as it appears on the books of the Depositary, or if

26

 

such Holder shall have timely filed with the Depositary a written request that notices
intended for such Holder be mailed to some other address, at the address designated in such
request.

     Delivery of a notice sent by mail or by facsimile transmission shall be deemed to be effected
at the time when a duly addressed letter containing the same (or a confirmation thereof in the case
of a facsimile transmission) is deposited, postage prepaid, in a post office letter box. The
Depositary or the Corporation may, however, act upon any facsimile transmission received by it from
the other or from any Holder of a Receipt, notwithstanding that such facsimile transmission shall
not subsequently be confirmed by letter or as aforesaid.

     Section 7.5 Depositary’s Agents. The Depositary may from time to time appoint agents
(each a “Depositary’s Agent,” and collectively the “Depositary’s Agents” ) to act in a ministerial
respect for the Depositary for the purposes of this Deposit Agreement and may at any time appoint
additional Depositary’s Agents and vary or terminate the appointment of such Depositary’s Agents.
The Depositary will promptly notify the Corporation of any such action. The Depositary will not be
liable and shall not be answerable or accountable for any act, omission, default, neglect or
misconduct of any Depositary Agent or for any loss to the Corporation or any other Person resulting
from any such act, omission, default, neglect or misconduct absent negligence, bad faith or willful
misconduct by the Depositary in the selection and continued employment thereof (which negligence,
bad faith or willful misconduct must be determined by a final, non-appealable order, judgment,
decree or ruling of a court of competent jurisdiction). The provisions of the preceding sentence
shall survive the termination of this Agreement and/or the appointment of a successor Depositary.

     Section 7.6 Appointment of Registrar, Dividend Disbursing Agent and Redemption Agent in
Respect of the Series C Preferred Stock. Unless otherwise set forth on the Officer’s
Certificate delivered pursuant to Section 2.2 hereof, the Corporation hereby appoints Mellon
Investor Services LLC as registrar, dividend disbursing agent and redemption agent in respect of
the Series C Preferred Stock deposited with the Depositary hereunder, and Mellon Investor Services
LLC hereby accepts such appointments. With respect to the appointments of Mellon Investor Services
LLC as registrar, dividend disbursing agent and redemption agent in

27

 

respect of the Series C Preferred Stock, each of the Corporation and Mellon Investor Services
LLC, in their respective capacities under such appointments, shall be entitled to the same rights,
indemnities, immunities and benefits as the Corporation and Depositary hereunder, respectively, as
if explicitly named in each such provision.

     Section 7.7 Appointment of Calculation Agent. Intentionally omitted.

     Section 7.8 Holders of Receipts Are Parties. The Holders of Receipts from time to
time shall be parties to this Deposit Agreement and shall be bound by all of the terms and
conditions hereof and of the Receipts and of the Officer’s Certificate by acceptance of delivery
thereof.

     Section 7.9 Governing Law. This Deposit Agreement and the Receipts of each series and
all rights hereunder and thereunder and provisions hereof and thereof shall be governed by, and
construed in accordance with, the laws of the Commonwealth of Pennsylvania without giving effect to
applicable conflicts of law principles; provided, however, that all provisions regarding the
rights, duties, responsibilities and obligations of the Depositary shall be governed by and
construed in accordance with the laws of the State of New York applicable to contracts made and to
be performed entirely within such State.

     Section 7.10 Inspection of Deposit Agreement. Copies of this Deposit Agreement shall
be filed with the Depositary and the Depositary’s Agents and shall be open to inspection during
business hours at the Depositary’s Office and the respective offices of the Depositary’s Agents, if
any, by any Holder of a Receipt.

     Section 7.11 Headings. The headings of articles and sections in this Deposit
Agreement and in the form of the Receipt set forth in Exhibit A hereto have been inserted for
convenience only and are not to be regarded as a part of this Deposit Agreement or the Receipts or
to have any bearing upon the meaning or interpretation of any provision contained herein or in the
Receipts.

 

 

     IN WITNESS WHEREOF, the Corporation and the Depositary have duly executed this
Agreement as of the day and year first above set forth, and all Holders of Receipts shall become
parties hereto by and upon acceptance by them of delivery of Receipts issued in accordance with the
terms hereof.

	 	 	 	 	 	 	 	 	 
	 	 	SOVEREIGN BANCORP, INC.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas R. Brugger	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Thomas R. Brugger	 	 
	 

	 	 	 	Title:	 	Treasurer and Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attested by:	 	/s/ John R. Merva	 	 
	 

	 	 	 	 	 	 

Name:  John R. Merva
	 	 
	 

	 	 	 	 	 	Title:   Assistant Secretary	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	MELLON INVESTOR SERVICES LLC.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Cynthia Pacolay	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Cynthia Pacolay	 	 
	 

	 	 	 	Title:	 	Client Relationship Executive	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attested by:	 	/s/ Rita A. Swartz	 	 
	 

	 	 	 	 	 	 

Name:  Rita A. Swartz
	 	 
	 

	 	 	 	 	 	Title:    Client
Relationship Executive	 	 

 

 

Exhibit A

[FORM OF FACE OF RECEIPT]

Unless this receipt is presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to Sovereign Bancorp, Inc., a Pennsylvania corporation (“Sovereign”),
or its agent for registration of transfer, exchange, or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

	 	 	 
	                                         DEPOSITARY SHARES

	 	DR                     

DEPOSITARY RECEIPT FOR DEPOSITARY SHARES, EACH

REPRESENTING ONE-ONE THOUSANDTH (1/1000) OF ONE SHARE OF

SERIES C NON-CUMULATIVE PERPETUAL PREFERRED STOCK,

OF

SOVEREIGN BANCORP, INC.

A CORPORATION INCORPORATED UNDER THE LAWS

OF THE COMMONWEALTH OF PENNSYLVANIA

CUSIP             

SEE REVERSE FOR CERTAIN DEFINITIONS

     Mellon Investor Services LLC, as Depositary (the “Depositary”), hereby certifies that Cede &
Co. is the registered owner of                      DEPOSITARY SHARES (“Depositary Shares”), each Depositary
Share representing one-thousandth (1/1000th) of one share of Series C Non-Cumulative Perpetual
Preferred Stock, liquidation preference $25,000 per share, no par value per share (the “Series C
Preferred Stock”), of Sovereign on deposit with the Depositary, subject to the terms and entitled
to the benefits of the Deposit Agreement dated as of May 1, 2006 (the “Deposit Agreement”), among
Sovereign, the Depositary and the Holders from time to time of the Depositary Receipts. By
accepting this Depositary Receipt, the Holder hereof becomes a party to and agrees to be bound by
all the terms and conditions of the Deposit Agreement. This Depositary Receipt shall not be valid
or obligatory for any purpose or entitled to any benefits under the Deposit Agreement unless it
shall have been executed by the Depositary by the manual signature of a duly authorized officer or,
if executed in facsimile by the Depositary, countersigned by a Registrar in respect of the
Depositary Receipts by the manual signature of a duly authorized officer thereof.

	 	 	 	 	 
	Dated:	 	 
	 
	 	 	 	 
	Mellon Investor Services LLC, Depositary	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Officer
	 	 

 

 

[FORM OF REVERSE OF RECEIPT]

SOVEREIGN BANCORP, INC.

     SOVEREIGN WILL FURNISH WITHOUT CHARGE TO EACH RECEIPTHOLDER WHO SO REQUESTS A COPY OF THE
DEPOSIT AGREEMENT AND A COPY OR SUMMARY OF THE STATEMENT WITH RESPECT TO SHARES OF THE SERIES C
NON-CUMULATIVE PERPETUAL PREFERRED STOCK OF SOVEREIGN. ANY SUCH REQUEST IS TO BE ADDRESSED TO THE
DEPOSITARY NAMED ON THE FACE OF THIS RECEIPT.

     Sovereign will furnish without charge to each receiptholder who so requests the powers,
designations, preferences and relative, participating, optional or other special rights of each
class of stock or series thereof of Sovereign, and the qualifications, limitations or restrictions
of such preferences and/or rights. Such request may be made to Sovereign or to the Registrar.

EXPLANATION OF ABBREVIATIONS

     The following abbreviations when used in the form of ownership on the face of this certificate
shall be construed as though they were written out in full according to applicable laws or
regulations. Abbreviations in addition to those appearing below may be used.

	 	 	 	 	 	 	 
	Abbreviation	 	Equivalent Phrase	 	Abbreviation	 	Equivalent Phrase
	JT TEN

	 	As joint tenants,
with right of
survivorship and
not as tenants in
common
	 	TEN BY ENT
	 	As tenants by the entireties
	 
	 	 	 	 	 	 
	TEN IN COM

	 	As tenants in common
	 	UNIF GIFT MIN ACT
	 	Uniform Gifts to Minors Act

	 	 	 	 	 	 	 	 	 	 	 
	Abbreviation	 	Equivalent Word	 	Abbreviation	 	Equivalent Word	 	Abbreviation	 	Equivalent Word
	ADM

	 	Administrator(s),

Administratrix
	 	EX
	 	Executor(s),

Executrix
	 	PAR
	 	Paragraph
	AGMT

	 	Agreement
	 	FBO
	 	For the benefit of
	 	PL
	 	Public Law
	ART

	 	Article
	 	FDN
	 	Foundation
	 	TR
	 	(As) trustee(s),

for, of
	CH

	 	Chapter
	 	GDN
	 	Guardian(s)
	 	U
	 	Under
	CUST

	 	Custodian for
	 	GDNSHP
	 	Guardianship
	 	UA
	 	Under agreement
	DEC

	 	Declaration
	 	MIN
	 	Minor(s)
	 	UW
	 	Under will of, Of

will of, Under last

will & testament
	EST

	 	Estate, of Estate of	 	 	 	 	 	 	 	 

     For value received,                                          hereby sell(s), assign(s) and
transfer(s) unto                                                              

 

 

                                                            (INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE)

                                                                  (PRINT OR TYPEWRITE NAME AND ADDRESS
INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

                                              (                    ) Depositary Shares represented by the within Receipt, and do(es) hereby
irrevocably constitute and appoint                      Attorney to transfer the said Depositary Shares on
the books of the within named Depositary with full power of substitution in the premises.

	 	 	 
	Dated:                                         

	 	NOTICE: The signature to the assignment must correspond with the name as
written upon the face of this Receipt in every particular, without alteration or enlargement
or any change whatsoever.

SIGNATURE GUARANTEED

NOTICE: If applicable, the signature(s) should be guaranteed by an eligible guarantor institution

(banks, stockbrokers, savings and loan associations, and credit unions with membership in an

approved signature guarantee medallion program), pursuant to Rule 17Ad-15 under the Securities

Exchange Act of 1934

 

 

Exhibit B

FORM OF OFFICERS’ CERTIFICATE

     I,                                          ,                                          of Sovereign Bancorp, Inc. (the “Corporation”), hereby certify,
without personal liability, on behalf of the Corporation that pursuant to the terms of the
Statement With Respect to Shares filed with the Secretary of State of the Commonwealth of
Pennsylvania on May 1, 2006 (the “Statement”), and pursuant to resolutions adopted by the Pricing
Committee of the Board of Directors of the Corporation (the “Committee”) on April 26, 2006, the
Corporation has established the Series C Preferred Stock which the Corporation desires to deposit
with the Depositary for the purposes of being subject to the terms and conditions of the Deposit
Agreement, dated as of May 1, 2006, by and among the Corporation, Mellon Investor Services LLC and
the Holders of Receipts issued thereunder from time to time (the “Deposit Agreement”). In
connection therewith, the Committee has authorized the terms and conditions with respect to the
Series C Preferred Stock as described in the Statement attached as Annex A hereto. Any terms of the
Series C Preferred Stock that are not so described in the Statement and any terms of the Receipts
representing such Series C Preferred Stock that are not described in the Deposit Agreement are
described below:

	 	 	 
	Aggregate Number of shares of Series C Preferred Stock issued on the day hereof:

	 	 
	 
	 	 
	CUSIP Number for Receipt:
	 	 
	 
	 	 
	Denomination of Depositary Share per share of Series C Preferred Stock (if
different than 1/1000th of a share of Series B Preferred Stock):
	 	 
	 
	 	 
	Redemption Provisions (if different than as set forth in the Deposit Agreement

or the Statement):
	 	 
	 
	 	 
	Name of Global Receipt Depositary (if other than Mellon Investor Services, LLC):
	 	 
	 
	 	 
	Name of Registrar with Respect to the Receipts (if other than Mellon Investor
Services, LLC):
	 	 
	 
	 	 
	Name of Registrar, Dividend Disbursing Agent, and Redemption Agent with
Respect to the Series C Preferred Stock (if other than Mellon Investor
Services, LLC):
	 	 
	 
	 	 
	Special terms and conditions:
	 	 
	 
	 	 
	Closing date:
	 	 

 

 

     All capitalized terms used but not defined herein shall have such meaning as ascribed thereto
in the Deposit Agreement.

     IN WITNESS WHEREOF, the undersigned has executed this Officers’ Certificate on behalf of the
Company as of the date first set forth above.

	 	 	 
	 

	 	 
	 

	 	Name:
	 

	 	Title:

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