Document:

exv10w13

 

EXHIBIT 10.13

GMAC Residential Funding

WAREHOUSING CREDIT AND
SECURITY AGREEMENT

BETWEEN

MUNICIPAL MORTGAGE & EQUITY, LLC,

a Delaware limited liability company (“MMA”)

MUNIMAE TEI HOLDINGS, LLC,

a Maryland limited liability company (“MTEI”),

MIDLAND MORTGAGE INVESTMENT CORPORATION,

a Florida corporation (“Midland Mortgage”),

MMA CONSTRUCTION FINANCE, LLC,

a Maryland limited liability company f/k/a MUNIMAE MIDLAND

CONSTRUCTION FINANCE, LLC (“MMA Construction”), and

MMA CAPITAL CORPORATION, a Michigan corporation f/k/a MIDLAND

CAPITAL CORPORATION (“MMA Capital”),

(MMA, MTEI, Midland Mortgage, MMA CONSTRUCTION and MMA

Capital, collectively, “Borrower”)

AND

RESIDENTIAL FUNDING
CORPORATION, 
a Delaware corporation

Dated as of May 23,
2003

 

 

TABLE OF
CONTENTS

	 	 	 	 	 	 	 	 	 
	1.	 	 THE CREDIT	 	1-1
	

	 	 	1.1.	 	 	The Warehousing Commitment
	 	1-1
	

	 	 	1.2.	 	 	Expiration of Warehousing Commitment
	 	1-1
	

	 	 	1.3.	 	 	Warehousing Note
	 	1-2
	2.	 	PROCEDURES FOR OBTAINING ADVANCES	 	2-1
	

	 	 	2.1.	 	 	Warehousing Advances
	 	2-1
	3.	 	INTEREST, PRINCIPAL AND FEES	 	3-1
	

	 	 	3.1.	 	 	Interest
	 	3-1
	

	 	 	3.2.	 	 	Interest Limitation
	 	3-2
	

	 	 	3.3.	 	 	Principal Payments
	 	3-2
	

	 	 	3.4.	 	 	Buydowns
	 	3-4
	

	 	 	3.5.	 	 	Compensating Balances
	 	3-5
	

	 	 	3.6.	 	 	Non-Usage Fees
	 	3-5
	

	 	 	3.7.	 	 	INTENTIONALLY OMITTED
	 	3-6
	

	 	 	3.8.	 	 	Loan Package Fees
	 	3-6
	

	 	 	3.9.	 	 	Miscellaneous Fees and Charges
	 	3-6
	

	 	 	3.10.	 	 	Extension Fee
	 	3-6
	

	 	 	3.11.	 	 	Overdraft Advances
	 	3-6
	

	 	 	3.12.	 	 	Method of Making Payments
	 	3-6
	4.	 	COLLATERAL	 	4-1
	

	 	 	4.1.	 	 	Grant of Security Interest
	 	4-1
	

	 	 	4.2.	 	 	Maintenance of Collateral Records
	 	4-2
	

	 	 	4.3.	 	 	Limitations on Security Interest in Servicing Income under Fannie
Mae Servicing Contracts
	 	4-3
	

	 	 	4.4.	 	 	Release of Security Interest in Pledged Investments and Pledged
Securities
	 	4-4
	

	 	 	4.5.	 	 	Collection and Servicing Rights
	 	4-5
	

	 	 	4.6.	 	 	Return of Collateral at End of Warehousing Commitment
	 	4-5
	

	 	 	4.7.	 	 	Delivery of Collateral Documents
	 	4-5
	5.	 	CONDITIONS PRECEDENT	 	5-1
	

	 	 	5.1.	 	 	Initial Advance
	 	5-1
	

	 	 	5.2.	 	 	Each Advance
	 	5-4
	

	 	 	5.3.	 	 	New Fannie Mae Master Credit Facility Agreements
	 	5-4
	

	 	 	5.4.	 	 	INTENTIONALLY OMITTED
	 	5-5
	

	 	 	5.5.	 	 	INTENTIONALLY OMITTED
	 	5-5
	

	 	 	5.6.	 	 	Force Majeure
	 	5-5
	6.	 	GENERAL REPRESENTATIONS AND WARRANTIES	 	6-1
	

	 	 	6.1.	 	 	Place of Business
	 	6-1
	

	 	 	6.2.	 	 	Organization; Good Standing; Subsidiaries
	 	6-1
	

	 	 	6.3.	 	 	Authorization and Enforceability
	 	6-1
	

	 	 	6.4.	 	 	Approvals
	 	6-2
	

	 	 	6.5.	 	 	Financial Condition
	 	6-2
	

	 	 	6.6.	 	 	Litigation
	 	6-2
	

	 	 	6.7.	 	 	Compliance with Laws
	 	6-2
	

	 	 	6.8.	 	 	Regulation U
	 	6-3
	

	 	 	6.9.	 	 	Investment Company Act
	 	6-3
	

	 	 	6.10.	 	 	Payment of Taxes
	 	6-3

 

 

	 	 	 	 	 	 	 	 	 
	

	 	 	6.11.	 	 	Agreements
	 	6-3
	

	 	 	6.12.	 	 	Title to Properties
	 	6-3
	

	 	 	6.13.	 	 	ERISA
	 	6-4
	

	 	 	6.14.	 	 	No Retiree Benefits
	 	6-4
	

	 	 	6.15.	 	 	Assumed Names
	 	6-4
	

	 	 	6.16.	 	 	Servicing
	 	6-4
	7.	 	AFFIRMATIVE COVENANTS	 	7-1
	

	 	 	7.1.	 	 	Payment of Obligations	 	7-1
	

	 	 	7.2.	 	 	Financial Statements
	 	7-1
	

	 	 	7.3.	 	 	Other Borrower Reports
	 	7-2
	

	 	 	7.4.	 	 	Maintenance of Existence; Conduct of Business
	 	7-3
	

	 	 	7.5.	 	 	Compliance with Applicable Laws
	 	7-3
	

	 	 	7.6.	 	 	Inspection of Properties and Books; Operational Reviews
	 	7-3
	

	 	 	7.7.	 	 	Notice
	 	7-4
	

	 	 	7.8.	 	 	Payment of Debt, Taxes and Other Obligations
	 	7-4
	

	 	 	7.9.	 	 	Insurance
	 	7-4
	

	 	 	7.10.	 	 	Closing Instructions
	 	7-4
	

	 	 	7.11.	 	 	Subordination of Certain Indebtedness
	 	7-5
	

	 	 	7.12.	 	 	Other Loan Obligations
	 	7-5
	

	 	 	7.13.	 	 	ERISA
	 	7-5
	

	 	 	7.14.	 	 	Use of Proceeds of Warehousing Advances
	 	7-5
	

	 	 	7.15.	 	 	INTENTIONALLY OMITTED
	 	7-5
	8.	 	NEGATIVE COVENANTS	 	8-1
	

	 	 	8.1.	 	 	Contingent Liabilities
	 	8-1
	

	 	 	8.2.	 	 	Pledge of Servicing Contracts
	 	8-1
	

	 	 	8.3.	 	 	Restrictions on Fundamental Changes
	 	8-1
	

	 	 	8.4.	 	 	Deferral of Subordinated Debt
	 	8-1
	

	 	 	8.5.	 	 	Loss of Eligibility
	 	8-1
	

	 	 	8.6.	 	 	Accounting Changes
	 	8-2
	

	 	 	8.7.	 	 	Leverage Ratio
	 	8-2
	

	 	 	8.8.	 	 	Minimum Consolidated Tangible Net Worth
	 	8-2
	

	 	 	8.9.	 	 	Minimum Consolidated Modified Net Worth
	 	8-2
	

	 	 	8.10.	 	 	Ratio of CAD to Annual Debt Payments
	 	8-2
	

	 	 	8.11.	 	 	Distributions to Members
	 	8-2
	

	 	 	8.12.	 	 	Underwriting Guidelines
	 	8-2
	9.	 	SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS
CONCERNING COLLATERAL	 	9-1
	

	 	 	9.1.	 	 	Special Representations and Warranties Concerning Eligibility as
Seller/Servicer of Mortgage Loans
	 	9-1
	

	 	 	9.2.	 	 	Special Representations and Warranties Concerning Warehousing
Collateral
	 	9-1
	

	 	 	9.3.	 	 	Special Affirmative Covenants Concerning Warehousing Collateral
	 	9-3
	

	 	 	9.4.	 	 	Special Negative Covenants Concerning Warehousing Collateral
	 	9-4
	

	 	 	9.5.	 	 	Special Representation and Warranty Concerning Fannie Mae DUS
Program Reserve Requirements
	 	9-4
	

	 	 	9.6.	 	 	Special Representations and Warranties Concerning Special Fannie
Mae Mortgage Loans
	 	9-5
	

	 	 	9.7.	 	 	Special Representations and Warranties Concerning FHA Mortgage
Loans
	 	9-5
	

	 	 	9.8.	 	 	Special Representations and Warranties Concerning Bridge
Mortgage Loans
	 	9-6
	

	 	 	9.9.	 	 	Special Covenants Concerning Special Fannie Mae Mortgage Loans
	 	9-6
	

	 	 	9.10.	 	 	INTENTIONALLY OMITTED
	 	9-6
	10.	 	DEFAULTS; REMEDIES	 	10-1

 

 

	 	 	 	 	 	 	 	 	 
	

	 	 	10.1.	 	 	Events of Default
	 	10-1
	

	 	 	10.2.	 	 	Remedies
	 	10-2
	

	 	 	10.3.	 	 	Application of Proceeds
	 	10-5
	

	 	 	10.4.	 	 	Lender Appointed Attorney-in-Fact
	 	10-5
	

	 	 	10.5.	 	 	Right of Set-Off
	 	10-6
	11.	 	MISCELLANEOUS	 	11-1
	

	 	 	11.1.	 	 	Notices
	 	11-1
	

	 	 	11.2.	 	 	Reimbursement of Expenses; Indemnity
	 	11-1
	

	 	 	11.3.	 	 	Financial Information
	 	11-2
	

	 	 	11.4.	 	 	Terms Binding Upon Successors; Survival of Representations
	 	11-2
	

	 	 	11.5.	 	 	Assignment and Participations
	 	11-2
	

	 	 	11.6.	 	 	Amendments
	 	11-3
	

	 	 	11.7.	 	 	Governing Law
	 	11-3
	

	 	 	11.8.	 	 	Relationship of the Parties
	 	11-3
	

	 	 	11.9.	 	 	Severability
	 	11-4
	

	 	 	11.10.	 	 	Consent to Credit References
	 	11-4
	

	 	 	11.11.	 	 	Counterparts
	 	11-4
	

	 	 	11.12.	 	 	Headings/Captions
	 	11-4
	

	 	 	11.13.	 	 	Entire Agreement
	 	11-4
	

	 	 	11.14.	 	 	Consent to Jurisdiction
	 	11-4
	

	 	 	11.15.	 	 	Waiver of Jury Trial
	 	11-5
	

	 	 	11.16.	 	 	Waiver of Punitive, Consequential, Special or Indirect Damages
	 	11-5
	

	 	 	11.17.	 	 	Confidentiality
	 	11-5
	12.	 	DEFINITIONS	 	12-1
	

	 	 	12.1.	 	 	Defined Terms
	 	12-1
	

	 	 	12.2.	 	 	Other Definitional Provisions; Terms of Construction
	 	12-13

 

 

EXHIBITS

	 	 	 
	 Exhibit A-MF

	 	Request for Warehousing Advance Against Eligible Investments
	 
	 	 
	Exhibit B-MF

	 	Procedures and Documentation for Warehousing Mortgage Loans
	 
	 	 
	 Exhibit B-MF/BL

	 	Procedures and Documentation for
Warehousing Builder Loans
	 
	 	 
	 Exhibit B-MF/BR 

	 	Procedures and Documentation for Warehousing Bridge
Mortgage Loans
	 
	 	 
	 Exhibit B-MF/FHA 

	 	Procedures and Documentation for Warehousing FHA Mortgage
Loans
	 
	 	 
	 Exhibit B-MF/MB

	 	Procedures and Documentation for Warehousing Municipal Bonds
	 
	 	 
	 Exhibit B-MF/SFNMA 

	 	Procedures and Documentation for Warehousing Special Fannie
Mae Mortgage Loans
	 
	 	 
	 Exhibit C

	 	Schedule of Servicing Portfolio
	 
	 	 
	 Exhibit D

	 	Subsidiaries
	 
	 	 
	 Exhibit E

	 	Compliance Certificate
	 
	 	 
	 Exhibit F

	 	Schedule of Lines of Credit
	 
	 	 
	 Exhibit G 

	 	Assumed Names
	 
	 	 
	Exhibit H 

	 	Eligible Investments and Other Assets
	 
	 	 
	 Exhibit I 

	 	Collateral Operations Fee Schedule
	 
	 	 
	 Exhibit J

	 	Terms of Guaranteed Obligations
	 
	 	 
	 Exhibit K

	 	Schedule of Master Credit Facility Agreement

 

 

WAREHOUSING CREDIT AND
SECURITY AGREEMENT

WAREHOUSING CREDIT AND
SECURITY AGREEMENT, dated as of May 23, 2003 between MUNICIPAL
MORTGAGE & EQUITY, LLC, a Delaware limited liability company, (“MMA”), MUNIMAE TEI HOLDINGS,
LLC, a Maryland limited liability company (“MTEI”), MIDLAND MORTGAGE INVESTMENT CORPORATION, a
Florida corporation (“Midland Mortgage”), MMA CONSTRUCTION FINANCE, LLC fka MUNIMAE MIDLAND
CONSTRUCTION FINANCE, LLC, a Maryland limited liability company (“MMA Construction”), and MMA
CAPITAL CORPORATION, a Michigan corporation f/k/a MIDLAND CAPITAL CORPORATION (“MMA Capital”)
(MMA, MTEI, Midland Mortgage, MMA Construction and MMA Capital, collectively, “Borrower”) and
RESIDENTIAL FUNDING CORPORATION, a Delaware corporation
(“Lender”).

	A.  	Borrower has requested certain financing from Lender.
	 
	B.  	Lender has agreed to provide that financing to Borrower
subject to the terms and conditions of this Agreement.
	 
	C.  	Subject to Borrower’s satisfaction of the conditions set forth in Article 5, the
“Closing Date” for the transactions contemplated by this Agreement is May 23, 2003.

NOW, THEREFORE, the parties to this Agreement agree as follows:

	1.  	THE CREDIT
	 
	1.1.  	The Warehousing Commitment

On the terms and subject to the conditions and limitations of this Agreement, including
Exhibit H, Lender agrees to make Warehousing Advances to Borrower from the Closing Date
to the Business Day immediately preceding the Warehousing Commitment Termination Date, during
which period Borrower may borrow, repay and reborrow in accordance with the provisions of this
Agreement. Lender has no obligation to make Warehousing Advances in excess of the Warehousing
Commitment Amount. While a Default or Event of Default exists, Lender may refuse to make any
additional Warehousing Advances to Borrower. All Warehousing Advances under this Agreement
constitute a single indebtedness, and all of the Collateral is security for the Warehousing Note
and for the performance of all of the Obligations. Warehousing Advances will be made either to
MMA, MTEI, Midland Mortgage, MMA Construction or MMA Capital, as requested by either MMA, MTEI,
Midland Mortgage, MMA Construction or MMA Capital, but will be deemed made to or for the benefit
of MMA and the requesting Borrower, and MMA and the requesting Borrower, jointly and severally,
is obligated to repay each Warehousing Advances made under the Warehousing Commitment. With
respect to its obligation to repay Warehousing Advances made to any other Borrower, MMA agrees to
the terms set forth in Exhibit J.

	1.2.  	Expiration of Warehousing Commitment

The Warehousing Commitment expires on the earlier of (the “Warehousing Commitment Termination
Date”): (a) April 30, 2005, as the same may be extended in writing by Lender, in its sole
discretion, unless Borrower notifies Lender that it will not accept such extension, on which date
the Warehousing Commitment will expire of its own term without the necessity of Notice or action
by Lender, and (b) the date the Warehousing Commitment is terminated under Section 10.2.

Page 1-1

Dated: 5/23/2003

Amended: 6/11/2004

 

	1.3.  	Warehousing Note

Warehousing Advances are
evidenced by Borrower’s promissory note, payable to Lender on the
form prescribed by Lender (“Warehousing Note”). The term “Warehousing Note” as used in this
Agreement includes all amendments, restatements, renewals or replacements of the original
Warehousing Note and all substitutions for it. All terms and provisions of the Warehousing Note are
incorporated into this Agreement.

End of Article 1

Page 1-2

Dated: 5/23/2003

Amended: 6/11/2004

 

	2.  	PROCEDURES FOR OBTAINING ADVANCES
	 
	2.1.  	Warehousing Advances

To obtain a Warehousing Advance under this Agreement, Borrower must deliver to Lender a
completed and signed request for a Warehousing Advance on the then current form approved by Lender
(“Warehousing Advance Request”), not later than 1 Business Day before the Business Day on
which Borrower desires the Warehousing Advance. Subject to the delivery of a Warehousing Advance
Request and the satisfaction of the conditions set forth in Sections 5.1 and 5.2, Borrower may
obtain a Warehousing Advance under this Agreement upon compliance with the procedures set forth in
this Section and in the applicable Exhibit B, including delivery to Lender of all required
Collateral Documents. Lender’s current form of Warehousing Advance Request is set forth in
Exhibit A. Upon not less than 3 Business Days’ prior Notice to Borrower, Lender may modify
its form of Warehousing Advance Request, and any other Exhibit or document referred to in this
Section to conform to current legal requirements or Lender practices and, as so modified, those
Exhibits and documents will become part of this Agreement.

End of Article 2

Page 2 -1

Dated: 5/23/2003

Amended: 6/11/2004

 

	3.  	INTEREST, PRINCIPAL AND FEES
	 
	3.1.  	Interest

	3.1(a)	 	Except as otherwise provided in this Section, Borrower must pay interest on the
unpaid amount of each Warehousing Advance from the date the Warehousing Advance is made until
it is paid in full at the Interest Rate specified in
Exhibit H.

	3.1(b)	 	As long as no Default or Event of Default exists, Borrower is entitled to receive a
benefit based on the average monthly Eligible Balances of Borrower maintained at a Designated
Bank. For the purposes of this Section, all Advances will be called “Applicable Advances.”
After the end of each month, Lender will calculate the portion (“Balance Funded
Portion”) of the Applicable Advances that is equal to the lesser of (1) the average
amount of Applicable Advances outstanding during such month or (2) the average amount of
Eligible Balances on deposit in non-interest bearing demand deposit and time deposit accounts
with a Designated Bank during such month. Interest that would otherwise be payable by
Borrower under Exhibit H will be reduced by a “Balance Funding Credit” equal
to:

Balance Funded Portion x
[(IR – BFR) / AB] x ADP,

where
“IR” is the weighted daily average of the Index Rate otherwise applicable under
Exhibit H. “BFR” is the applicable
Balance Funded Rate, “AB” is the Accrual Basis
and “ADP” is the number of days in the month (or other applicable period) for which the
Balance Funding Credit is applicable. The Applicable Advances outstanding during a month
will be allocated to the Balance Funded Portion in the order determined by Lender in its
sole discretion.

If, for any month, a portion of the average amount of Eligible Balances on deposit in
non-interest bearing demand deposit or time deposit accounts remains
(“Remainder”) after
the Balance Funded Portion has been deducted, or Borrower has Eligible Balances on deposit
in interest-bearing demand deposit or time deposit accounts in respect of which Lender has
received a Depository Benefit, Lender will provide a benefit in the form of an
“Earnings Credit” on the Eligible Balances maintained in time deposit accounts with
the Designated Bank, and Lender will provide a benefit in the form of
an “Earnings
Allowance” on the Eligible Balances maintained in demand deposit accounts with the
Designated Bank. Any Earnings Allowance will be used first and any Earnings Credit will be
used second as a credit against Miscellaneous Fees and Charges (including Designated Bank
Charges) and against other fees payable to Lender under this Agreement, including Non-Usage
Fees, and Loan Package Fees, and may be used, at Lender’s option, to reduce accrued
interest. Any Earnings Allowance not used during the month in which the benefit was
received will be accumulated and must be used within 6 months of the month in which the
benefit was received. As long as no Default or Event of Default exists, any Earnings Credit
not used during the month in which the benefit was received will be used to provide a cash
benefit to Borrower. Any Earnings Credit retained by Lender as a result of a Default or
Event of Default will be applied to the payment of Borrower’s Obligations in the order
Lender determines in its sole discretion.

The Balance Funded Portion, the Balance Funding Credit, the Earnings Credit and the
Earnings Allowance for any month will be determined by Lender in its sole discretion and
Lender’s determination of those amounts is conclusive and binding absent manifest error.
In no event will the aggregate amount of the benefits received by Borrower under this
Section exceed the Depository Benefit.

Page 3-1

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	Either party to this Agreement may terminate the benefits provided for in this
Section, in whole or in part, effective immediately upon Notice to the other party, if the
terminating party determines (which determination is conclusive and binding on the other
party, absent manifest error) at any time that any applicable law, rule, regulation, order
or decree or any interpretation or administration of any such law, rule, regulation, order
or decree by any governmental authority charged with its interpretation or administration,
or compliance by such party with any request or directive (whether or not having the force
of law) of any such authority, makes it unlawful or impossible for the party sending the
Notice to continue to offer or receive all or any portion of the benefits provided for in
this Section. No Notice is required for a termination of benefits as a result of a Default
or Event of Default.
	 
	3.1(c)	 	Lender computes interest on the basis of the actual number of days in each month and a
year of 360 days (“Accrual Basis”). Borrower must pay interest monthly in arrears, not later
than 9 days after the date of Lender’s invoice or, if applicable, 2 days after the date of
Lender’s account analysis statement, commencing with the first month following the Closing
Date and on the Warehousing Maturity Date.
	 
	3.1(d)	 	If, for any reason, (1) Borrower repays a Warehousing Advance on the same day that it
was made by Lender or (2) Borrower instructs Lender not to make a previously requested
Warehousing Advance after Lender has reserved funds or made other arrangements necessary to
enable Lender to fund that Warehousing Advance, Borrower agrees to pay to Lender an
administrative fee equal to 1 day of interest on that Warehousing Advance at the rate of
1.50% per annum. Borrower must pay all administrative fees within 9 days after the date of
Lender’s invoice or, if applicable, within 2 days after the date of Lender’s account analysis
statement.
	 
	3.1(e)	 	After an Event of Default occurs and upon Notice to Borrower by Lender, the unpaid
amount of each Warehousing Advance will bear interest at the Default Rate until paid in full.
	 
	3.1(f)	 	Lender will adjust the rates of interest provided for in this Agreement as of the
effective date of each change in the applicable index. Lender’s determination of such rates of
interest as of any date of determination are conclusive and binding, absent manifest error.
	 
	3.2.  	 	Interest Limitation

Lender does not intend, by reason of this Agreement, the Warehousing Note or any other Loan
Document, to receive interest in excess of the amount permitted by applicable law. If Lender
receives any interest in excess of the amount permitted by applicable law, whether by reason of
acceleration of the maturity of this Agreement, the Warehousing Note or otherwise, Lender will
apply the excess to the unpaid principal balance of the Warehousing Advances and not to the
payment of interest. If all Warehousing Advances have been paid in full and the Warehousing
Commitment has expired or has been terminated, Lender will remit any excess to Borrower. This
Section controls every other provision of all agreements between Borrower and Lender and is
binding upon and available to any subsequent holder of the Warehousing Note.

	3.3.  	 	Principal Payments
	 
	3.3(a)	 	Borrower must pay Lender the outstanding principal amount of all Warehousing
Advances on the Warehousing Maturity Date.

Page 3-2

Dated: 5/23/2003

Amended: 6/11/2004

 

	3.3(b)	 	 Except as otherwise provided in Section 3.1, Borrower may prepay any portion of
the Warehousing Advances without premium or penalty at any time.
	 
	3.3(c)	 	Upon telephonic or written Notice to Borrower by Lender, Borrower must pay to Lender,
and Borrower authorizes Lender to cause the Funding Bank to charge Borrower’s Operating
Account for, the amount of any outstanding Warehousing Advance against a specific Pledged
Asset upon the earliest occurrence of any of the following events:

	 	(1)  	For any Pledged Investment, the Warehouse Period elapses.
	 
	 	(2)  	For any Pledged Investment, the Shipped Period elapses.
	 
	 	(3)  	On the date a Warehousing Advance was made if the Pledged Investment to be
funded by that Warehousing Advance is not closed and funded.
	 
	 	(4)  	One (1) Business Day elapses from the date a Warehousing Advance was made
against a Pledged Investment, without receipt of the Collateral Documents
relating to that Pledged Investment required to be delivered on that date.
	 
	 	(5)  	Ten (10) Business Days elapse without the return of a Collateral Document
delivered by Lender to Borrower under a Trust Receipt for correction or
completion.
	 
	 	(6)  	On the date on which a Pledged Investment is determined to have been
originated based on untrue, incomplete or inaccurate information or otherwise to
be subject to fraud, whether or not Borrower had knowledge of the
misrepresentation, incomplete or incorrect information or fraud, on the date on
which Borrower knows, has reason to know, or receives Notice from Lender, that
(A) one or more of the representations and warranties set forth in Article 9 were
inaccurate or incomplete in any material respect on any date when made or
deemed made, or (B) Borrower has failed to perform or comply with any
covenant, term or condition applicable to it set forth in Article 9.
	 
	 	(7)  	On the date the Pledged Investment or a Lien prior to the Mortgage securing
repayment of the Pledged Investment is defaulted and remains in default for a
period of 60 days or more.
	 
	 	(8)  	On the mandatory delivery date of the related Purchase Commitment if the
specific Pledged Investment has not been delivered under the Purchase
Commitment prior to such mandatory delivery date, or on the date the related
Takeout Commitment expires or is terminated.
	 
	 	(9)  	Three (3) Business Days after the date a Pledged Mortgage is rejected for
purchase, financing or refinancing under a Takeout Commitment, unless another
Takeout Commitment satisfying the requirements of this Agreement is provided
within that 3 Business Day period.
	 
	 	(10)  	Upon the sale, other disposition or prepayment of any Pledged Investment or,
with respect to a Pledged Investment included in an Eligible Mortgage Pool,
upon the sale or other disposition of the related Agency Security.
	 
	 	(11)  	With respect to any Pledged Investment, any of the Collateral Documents, upon
examination by Lender, are found not to be in compliance with the requirements
of this Agreement or the related Takeout Commitment.

Page 3-3

Dated: 5/23/2003

Amended: 6/11/2004

 

	(12)	 	 With respect to any Warehousing Advance outstanding against a Pledged
Investment that is not subject to a Purchase Commitment, the date on which the
commitment to provide the permanent financing or Replacement Loan that will
refinance such Warehousing Advance or Pledged Investment shall cease to be in
full force and effect, or the lender shall assert any right not to finance such
Pledged Investment or make such Replacement Loan thereunder.

	3.3(d)	 	In addition to the payments required by this Section 3.3, if the principal amount of any
Pledged Investment is prepaid in whole or in part while a Warehousing Advance is outstanding
against the Pledged Investment, Borrower must pay to Lender, without the necessity of prior
demand or Notice from Lender, and Borrower authorizes Lender to cause the Funding Bank to
charge Borrower’s Operating Account for, the amount of the prepayment, to be applied against
the Warehousing Advance.
	 
	3.3(e)	 	The proceeds of the sale or other disposition of Pledged Assets must be paid directly by
the Investor to the Cash Collateral Account. Borrower must give Notice to Lender in writing
or by telephone (followed promptly by written Notice) of the Pledged Assets for which
proceeds have been received. Upon receipt of Borrower’s Notice, Lender will apply any
proceeds deposited into the Cash Collateral Account to the payment of the Warehousing
Advances related to the Pledged Assets identified by Borrower in its Notice, and those
Pledged Assets will be considered to have been redeemed from pledge. Lender is entitled to
rely upon Borrower’s affirmation that deposits in the Cash Collateral Account represent
payments from Investors for the purchase of the Pledged Assets specified by Borrower in its
Notice. If the payment from an Investor for the purchase of Pledged Assets is less than the
outstanding Warehousing Advances against the Pledged Assets identified by Borrower in its
Notice, Borrower must pay to Lender, and Borrower authorizes Lender to cause the Funding Bank
to charge Borrower’s Operating Account in, an amount equal to that deficiency. As long as no
Default or Event of Default exists, Lender will return to Borrower any excess payment from an
Investor for Pledged Assets.
	 
	3.3(f)	 	Lender reserves the right to revalue any Pledged Investment. Borrower must pay to
Lender, without the necessity of prior demand or Notice from Lender, and Borrower authorizes
Lender to cause the Funding Bank to charge Borrower’s Operating Account for, any amount
required after any such revaluation to reduce the principal amount of the Warehousing Advance
outstanding against the revalued Pledged Investment to an amount equal to the Advance Rate
for the applicable type of Eligible Investment multiplied by the Fair Market Value of the
Pledged Investment.
	 
	3.3(g)	 	Borrower must give Lender Notice not later than 1:00 p.m. on the Business Day immediately
preceding the payment to Lender of proceeds of Pledged Assets or any other payment on the
Obligations if the amount of the payment exceeds $20,000,000. If Lender is unable to reinvest
that payment as a result of Borrower’s failure to provide such Notice, Borrower must pay to
Lender an administrative fee equal to 1 day of interest on the amount of that payment at a
rate of 1.50% per annum. Administrative and other fees are due and payable in the same manner
as interest is due and payable under this Agreement.
	 
	3.4.  	 	Buydowns

Borrower may prepay a portion
of the Warehousing Advances outstanding (a “Buydown”) upon
Notice to Lender not later than (a) 1:00 p.m. on the Business Day immediately preceding the
Business Day on which Borrower desires to make a Buydown in the amount of $10,000,000 or more or
(b) 1:00 p.m. on the Business Day on which Borrower desires to make a Buydown in an

Page 3-4

Dated: 5/23/2003

Amended: 6/11/2004

 

amount less than $10,000,000. Each Buydown must be in an amount not less than $1,000,000 or in
integral multiples of $250,000 in excess of that amount, and Buydowns may not exceed, in the
aggregate, the amount outstanding against Pledged Investments. A Buydown is a reduction in the
aggregate amount of the Warehousing Advances outstanding against Pledged Investments, but does not
represent the prepayment of any particular Warehousing Advance, and does not entitle Borrower to
the release of any Collateral. Lender may apply Buydowns to reduce interest payable by Borrower on
outstanding Warehousing Advances in any order that Lender determines in its sole discretion.
Unless a Default or Event of Default exists, Borrower may reborrow all or any portion of a Buydown
upon Notice to Lender not later than (m) 1:00 p.m. on the Business Day immediately preceding the
Busines Day on which borrower desires to reborrow $10,000,000 or more or (n) 1:00 p.m. on the
Business Day that Borrower desires to reborrow an amount less than $10,000,000. If Lender receives
Buydowns or a combination of Buydowns and payments of Warehousing Advances that exceed the
aggregate principal balance of the Warehousing Advances outstanding Pledged Investments (an
“Excess Buydown”), as long as no Default or Event of Default exists, Lender shall, at the request
of Borrower, re-advance to Borrower all or any portion of an Excess Buydown by causing the Funding
Bank to credit the Operating Account in that amount. Lender has no obligation to pay or otherwise
provide to Borrower any interest, dividends or other benefits on an Excess Buydown.

	3.5.  	Compensating Balances

Borrower shall maintain at a Designated Bank, so long as the Warehousing Commitment is
outstanding, Eligible Balances in an average amount during any Calendar Quarter not less than
$10,000,000 with respect to which Lender receives a Depository Benefit. If, during any Calendar
Quarter or portion thereof while the Warehousing Commitment is outstanding, Borrower shall fail to
maintain the level of balances required hereby, Borrower shall pay Lender a Non-Usage Fee as
calculated in Section 3.6 below for such Calendar Quarter or portion thereof.

	3.6.  	Non-Usage Fees

At the end of each Calendar Quarter during the term of this Agreement, unless Borrower has
satisfied the requirement of Section 3.5 for such Calendar Quarter, Lender will determine the
average usage of the Warehousing Commitment by calculating the arithmetic daily average of the
Warehousing Advances outstanding during such Calendar Quarter
(“Used Portion”). Lender will then
subtract the Used Portion from $12,500,000, and the result, if positive, will be known as the
“Unused Portion”. Borrower agrees to pay to Lender a
fee (“Non-Usage Fee”) in the amount of
0.5% per annum of the Unused Portion during such Calendar Quarter. The Non-Usage Fee is payable
quarterly, in arrears. Lender computes the Non-Usage Fee on the basis of the actual number of days
in each Calendar Quarter and a year of 365 days. Borrower must pay the Non-Usage Fee within 10 days
after the date of Lender’s invoice or account analysis statement. If the date set forth in the
definition of Warehousing Commitment Termination Date occurs on a day other than the last day of a
Calendar Quarter, Borrower must pay the prorated portion of the Non-Usage Fee due from the
beginning of the then current Calendar Quarter to and including that date. Borrower is not entitled
to a reduction in the amount of the Non-Usage Fee if (a) the Warehousing Commitment Amount is
reduced or (b) the Warehousing Commitment is terminated at the request of Borrower or as a result
of an Event of Default. If the Warehousing Commitment terminates at the request of Borrower or as a
result of an Event of Default, Borrower must pay, on the date of termination, a Non-Usage Fee in
the amount of 0.5% per annum of the Warehousing Commitment Amount in effect immediately prior to
the date of termination, for the period from the date of termination to and including the date set
forth in the definition of Warehousing Commitment Termination Date. Lender’s determination of the
Non-Usage Fee for any period is conclusive and binding, absent manifest error.

Page 3-5

Dated: 5/23/2003

Amended: 6/11/2004

 

	3.7.  	INTENTIONALLY OMITTED
	 
	3.8.  	Loan Package Fees

At the time of each Warehousing Advance against an Eligible Investment, Borrower will incur a
loan package fee (“Loan Package Fee”). Borrower must pay all Loan Package Fees in the amount set
forth in Exhibit H within 9 days after the date of Lender’s invoice or, if applicable,
within 2 days after the date of Lender’s account analysis statement.

	3.9.  	Miscellaneous Fees and Charges

Borrower must reimburse Lender for all Miscellaneous Fees and Charges. Borrower must pay all
Miscellaneous Fees and Charges within 9 days after the date of Lender’s invoice or, if applicable,
within 2 days after the date of Lender’s account analysis statement.

	3.10.  	Extension Fee

If Lender, in its sole discretion, elects to extend the Warehouse Period for any Pledged
Investment, Borrower shall pay Lender, on the effective date of such extension, an Extension Fee in
such amount as mutually agreed upon between Lender and Borrower.

	3.11.  	Overdraft Advances

If, under the authorization given by Borrower in the Funding Bank Agreement or pursuant to
this Agreement, Lender debits Borrower’s Operating Account or directs the Funding Bank to honor an
item presented against the Operating Account and that debit or direction results in an overdraft,
Lender may make an additional Warehousing Advance to fund that
overdraft (“Overdraft Advance”).
Borrower must pay (a) the outstanding amount of any Overdraft Advance, within 1 Business Day after
the date of the Overdraft Advance, and (b) interest on the amount of the Overdraft Advance, at a
rate per annum equal to the Bank One Prime Rate plus 2%, within 9 days after the date of Lender’s
invoice or, if applicable, within 2 days after the date of Lender’s account analysis statement.

	3.12.  	 	Method of Making Payments
	 
	3.12(a)	 	 Unless otherwise specified in this Agreement, Borrower must make all payments under
this Agreement to Lender by the close of business on the date when due unless the date is not
a Business Day. If the due date is not a Business Day, payment is due on, and interest will
accrue to, the next Business Day. Borrower must make all payments in United States dollars in
immediately available funds transferred by wire to accounts designated by Lender.
	 
	3.12(b)	 	Borrower authorizes Lender to cause the Funding Bank to charge Borrower’s Operating
Account for any interest or fees due and payable to Lender on or after the 9th day after the
date of Lender’s invoice or, if applicable, on or after the 2nd day after the date of Lender’s
account analysis statement, without the necessity of prior demand or Notice from Lender.
	 
	3.12(c)	 	While a Default or Event of Default exists, Borrower authorizes Lender to cause the
Funding Bank to charge Borrower’s Operating Account for any Obligations due and payable to
Lender, without the necessity of prior demand or Notice from Lender.

Page 3-6

Dated: 5/23/2003

Amended: 6/11/2004

 

End of Article 3

Page 3-7

Dated: 5/23/2003

Amended: 6/11/2004

 

	4.  	COLLATERAL
	 
	4.1.  	Grant of Security Interest

As security for the payment of the Warehousing Note and for the performance of all of
Borrower’s Obligations, Borrower grants a security interest to Lender in all of Borrower’s right,
title and interest in and to the following described property (“Collateral”):

	 	 	 
	4.1 (a)

	 	All amounts advanced by Lender to or for the account of Borrower under this Agreement to
fund a Mortgage Loan until that Mortgage Loan is closed and those funds disbursed.
	 
	 	 
	4.1 (b)

	 	All Mortgage Loans, Municipal Bonds and Builder Loans, including all Mortgage Notes,
Municipal Bonds, Mortgages, Security Agreements, supporting Obligations and Liens evidencing,
constituting, securing or otherwise backing those Mortgage Loans, that are delivered or caused
to be delivered to Lender (including delivery to a third party on behalf of Lender), or that
otherwise come into the possession, custody or control of Lender for the purpose of assignment
or pledge, are otherwise described in any Advance Request, or in respect of which Lender has
made a Warehousing Advance under this Agreement, and, in the event the Release Amount has not
been paid with respect to any Mortgage Loan, Municipal Bond or Builder Loan pledged hereunder,
any Refinancing Loan the proceeds of which are used, in whole or in part, to refinance such
Mortgage Loan, Municipal Bond or Builder Loan, and with respect to Special Fannie Mae Mortgage
Loans, the Mortgage Notes evidencing the Mortgage Loans and all of Borrower’s right, title and
interest in and to the Master Credit Facility Agreement and all Mortgage Notes and other
agreements, documents and instruments executed and delivered in connection with, or otherwise
relating to and referenced in the Master Credit Facility Agreement (collectively, “Pledged
Investments”).
	 
	 	 
	4.1 (c)

	 	All Mortgage-backed Securities that are created in whole or in part on the basis of
Pledged Investments or that are delivered or caused to be delivered to Lender or that
otherwise come into the possession, custody or control of Lender or its agent, bailee or
custodian as assignee, or that are pledged to Lender or, for such purpose are registered by
book-entry in the name of Lender (including registration in the name of a third party on
behalf of Lender), in each case for the purpose of pledge, or in respect of which a
Warehousing Advance has been made by Lender under this Agreement (collectively, “Pledged
Securities”).
	 
	 	 
	4.1 (d)

	 	All private mortgage insurance and all commitments issued by the FHA to insure or
guarantee any Pledged Investment; all Takeout Commitments held by Borrower covering Pledged
Investments or Pledged Securities or proposed Refinancing Loans, and all proceeds from the
sale or refinancing of Pledged Investments or Pledged Securities to Investors pursuant to
those Takeout Commitments; and all personal property, contract rights, servicing rights or
contracts and servicing fees and income or other proceeds, amounts and payments payable to
Borrower as compensation or reimbursement, accounts, payments, intangibles and general
intangibles of every kind relating to Pledged Investments, Pledged Securities, Takeout
Commitments, FHA commitments, private mortgage insurance and commitments, and all other
documents or instruments relating to Pledged Investments and Pledged Securities, including
any interest of Borrower in any fire, casualty or hazard insurance policies and any awards
made by any public body or decreed by any court of competent jurisdiction for a taking or for
degradation of value in any eminent domain proceeding as the same relate to Pledged
Investments.

Page 4-1

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	4.1 (e)

	 	All Servicing Contracts now owned or created or acquired by Borrower after the
date of this Agreement that do not, by their terms, prohibit the creation of a Lien
thereon in favor of Lender (collectively, “Pledged Servicing Contracts”).
	 
	 	 
	4.1 (f)

	 	All rights of Borrower to receive payments under or by virtue of the Servicing Contracts
owned by Borrower, whether as servicing fees, servicing income, damages, amounts payable upon
the cancellation or termination of those Servicing Contracts, interest on the foregoing, or
otherwise (collectively, “Pledged Servicing Payments”) .
	 
	 	 
	4.1 (f)

	 	All agreements under which any Servicing Contract owned by Borrower was acquired or is
sold by Borrower (including the acquisition or sale of a Person that owns the Servicing
Contract), and all documents executed or delivered in connection with that acquisition or
sale (collectively, “Pledged Servicing Acquisition/Disposition Agreements”) .
	 
	 	 
	4.1 (f)

	 	All escrow accounts, documents, instruments, files, surveys, certificates,
correspondence, appraisals, computer programs, tapes, discs, cards, accounting records
(including all information, records, tapes, data, programs, discs and cards necessary or
helpful in the administration or servicing of the Collateral) and other information and data
of Borrower relating to the Collateral.
	 
	 	 
	4.1 (g)

	 	All cash, whether now existing or acquired after the date of this Agreement, delivered
to or otherwise in the possession of Lender or Lender’s agent, bailee or custodian or
designated on the books and records of Borrower as assigned and pledged to Lender, and all
cash deposited in the Cash Collateral Account, the Wire Disbursement Account and the
Operating Account.
	 
	 	 
	4.1 (h)

	 	All Hedging Arrangements related to the Collateral (“Pledged Hedging Arrangements”)
and Borrower’s accounts in which those Hedging Arrangements are held (“Pledged
Hedging Accounts”), including all rights to payment arising under the Pledged Hedging
Arrangements and the Pledged Hedging Accounts, except that Lender’s security interest in the
Pledged Hedging Arrangements and Pledged Hedging Accounts applies only to benefits, including
rights to payment, related to the Collateral.
	 
	 	 
	4.1 (i)

	 	All cash and non-cash proceeds of the Collateral, including all dividends, distributions
and other rights in connection with, and all additions to, modifications of and replacements
for, the Collateral, and all products and proceeds of the Collateral, together with whatever
is receivable or received when the Collateral or proceeds of Collateral are sold, collected,
exchanged or otherwise disposed of, whether such disposition is voluntary or involuntary,
including all rights to payment with respect to any cause of action affecting or relating to
the Collateral or proceeds of Collateral.
	 
	 	 
	4.1 (j)

	 	Lender’s security interest in Borrower’s computer programs, tapes, discs, cards,
accounting records and other information and data (the “Information Collateral”) is solely to
enable Lender to service, and enforce Lender’s security interest in, the remaining
Collateral. Lender shall have no right to sell or otherwise dispose of the Information
Collateral. Borrower shall retain the right to use the Information Collateral to the extent
such use does not interfere with Lender’s use thereof.

	4.2.  	Maintenance of Collateral Records

As long as the Warehousing Commitment is outstanding or there remain any Obligations to be
paid or performed under this Agreement or under any other Loan Document, Borrower must preserve
and maintain, at its chief executive office and principal place of business or in a regional
office approved by Lender, or in the office of a computer service bureau engaged by Borrower

Page 4-2

Dated: 5/23/2003

Amended: 6/11/2004

 

and approved by Lender and, upon request, make available to Lender the originals, or copies in any
case where the originals have been delivered to Lender or to an Investor, of the Mortgage Notes,
Mortgages and Security Agreements included in Pledged Investments, Mortgage-backed Securities
delivered to Lender as Pledged Securities, Takeout Commitments, and all related Mortgage Loan
documents and instruments, and all files, underwriter’s narrative reports, rent rolls, inspection
reports, cost schedules, maps, property photographs, surveys, certificates, correspondence,
appraisals, computer programs, tapes, discs, cards, accounting and financial records and other
information and data relating to the Collateral.

	4.3.  	Limitations on Security Interest in Servicing Income under Fannie Mae Servicing Contracts

Lender has a security interest in all servicing income actually received by Borrower or
Lender with respect to the Mortgage Loans (“Designated Loans”) serviced under any Pledged
Servicing Contracts between Borrower and Fannie Mae (“Fannie Mae Servicing Contracts”),
but not in the Fannie Mae Servicing Contracts or any other income related to the Designated Loans.
Lender’s security interest is subject and subordinate to all rights, remedies, powers and
prerogatives of Fannie Mae under all applicable selling and servicing agreements between Fannie
Mae and Borrower, including the Guides referred to in those selling and servicing agreements
(collectively, the “Fannie Mae Agreements”), including Fannie Mae’s right to terminate
Borrower’s servicing rights with respect to the Designated Loans as provided in the Fannie Mae
Agreements. Without limiting the generality of the foregoing provisions, Lender acknowledges that
Borrower’s interest in the property described in Section 4.1 related to the Designated Loans, and
therefore Lender’s security interest, is subject to the rights of Fannie Mae. Fannie Mae must
approve Lender’s security interest.

Borrower will remain the servicer of the Designated Loans and will continue to service the
Designated Loans in accordance with Fannie Mae requirements. Borrower may not pledge any of its
servicing rights with respect to the Designated Loans to any other Person. Lender has no right to
service the Designated Loans or affect the manner in which Borrower services the Designated Loans.
If Fannie Mae terminates Borrower’s servicing rights with respect to the Designated Loans, this
pledge will automatically terminate and Fannie Mae has no obligation or liability to Lender in
connection with or as a result of such termination.

Upon the occurrence of an Event of Default and the exercise by Lender of its rights under Section
10.2, Lender has the following contractual rights: (a) all servicing fees payable to Borrower with
respect to the Designated Loans must be deposited into lockbox accounts held by Lender and (b)
Lender may, by Notice, direct Borrower to sell the servicing rights to the Designated Loans. In
that event, Borrower must (y) retain a nationally recognized firm that specializes in the sale of
Fannie Mae servicing rights (which firm must be reasonably acceptable to Lender) and (z) sell the
servicing rights to the Designated Loans to another Fannie Mae lender within 120 days of Lender’s
Notice. Any such sale of the servicing rights would be subject to Fannie Mae approval. All
proceeds of the sale of the servicing rights by Borrower under the foregoing procedure will be
applied first to the expenses of the sale, then to any amounts due to Fannie Mae for Borrower
under the Servicing Contracts sold, and then to the outstanding balance of the Obligations (as
provided in Section 10.3), with any remaining balance remitted to Borrower. If Borrower cures all
Events of Default as provided in this Agreement during the sale process, the sale process will
terminate.

Page 4-3

Dated: 5/23/2003

Amended: 6/11/2004

 

	4.4.  	Release of Security Interest in Pledged Investments and Pledged Securities

	 	 	 
	4.4 (a)

	 	Except as provided in Section 4.4 (b), Lender will release its security interest in
the Pledged Investments only against payment to Lender of the Release Amount in connection
with those Pledged Investments. If Pledged Investments are transferred to a pool custodian or
an Investor for inclusion in a Mortgage Pool and Lender’s security interest in the Pledged
Investments included in the Mortgage Pool is not released before the issuance of the related
Mortgage-backed Security, then that Mortgage-backed Security, when issued, is a Pledged
Security, Lender’s security interest continues in the Pledged Investments backing that
Pledged Security and Lender is entitled to possession of the Pledged Security in the manner
provided in this Agreement.
	 
	 	 
	4.4 (b)

	 	If Pledged Investments are transferred to an Approved Custodian and included in an
Eligible Mortgage Pool, Lender’s security interest in the Pledged Investments included in the
Eligible Mortgage Pool will be released upon the delivery of the Agency Security to Lender
(including delivery to or registration in the name of a third party on behalf of Lender) and
that Agency Security is a Pledged Security. Lender’s security interest in that Pledged
Security will be released only against payment to Lender of the Release Amount in connection
with the Mortgage Loans backing that Pledged Security.
	 
	 	 
	4.4 (c)

	 	Lender has the exclusive right to possession of all Pledged Securities or, if Pledged
Securities are issued in book-entry form or issued in certificated form and delivered to a
clearing corporation (as that term is defined in the Uniform Commercial Code of Minnesota) or
its nominee, Lender has the right to have the Pledged Securities registered in the name of a
securities intermediary (as that term is defined in the Uniform Commercial Code of Minnesota)
in an account containing only customer securities and credited to an account of Lender.
Lender has no duty or obligation to deliver Pledged Securities to an Investor or to credit
Pledged Securities to the account of an Investor or an Investor’s designee except against
payment for those Pledged Securities. Borrower acknowledges that Lender may enter into one or
more standing arrangements with securities intermediaries with respect to Pledged Securities
issued in book entry form or issued in certificated form and delivered to a clearing
corporation or its designee, under which the Pledged Securities are registered in the name of
the securities intermediary, and Borrower agrees, upon request of Lender, to execute and
deliver to those securities intermediaries Borrower’s written concurrence in any such
standing arrangements.
	 
	 	 
	4.4 (d)

	 	If no Default or Event of Default occurs, Borrower may redeem a Pledged Investment or
Pledged Security from Lender’s security interest by notifying Lender of its intention to
redeem the Pledged Investment or Pledged Security from pledge and either (1) paying, or
causing an Investor to pay, to Lender, for application as a prepayment on the principal
balance of the Warehousing Note, the Release Amount in connection with the Pledged Investment
or the Pledged Investments backing that Pledged Security, or (2) delivering substitute
Collateral that, in addition to being acceptable to Lender in its sole discretion, will, when
included with the remaining Collateral, result in a Warehousing Collateral Value of all
Collateral held by Lender that is at least equal to the aggregate outstanding Warehousing
Advances.
	 
	 	 
	4.4 (e)

	 	After a Default or Event of Default occurs, Lender may, with no liability to Borrower or
any Person, continue to release its security interest in any Pledged Investment or Pledged
Security against payment of the Release Amount for that Pledged Investment or for the Pledged
Investments backing that Pledged Security.

Page 4-4

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	4.4 (f)

	 	The amount to be paid by Borrower to obtain the release of Lender’s security interest in
a Pledged Investment (“Release Amount”) will be (1) in connection with the sale of a
Pledged Investment by Lender while an Event of Default exists, the amount paid to Lender
in a commercially reasonable disposition of that Pledged Investment and (2) otherwise,
until an Event of Default occurs, the principal amount of the Warehousing Advance
outstanding against the Pledged Investment.

	4.5.  	Collection and Servicing Rights

	 	 	 
	4.5 (a)

	 	If no Event of Default exists, Borrower may service and receive and collect
directly all sums payable to Borrower in respect of the Collateral other than proceeds of any Takeout
Commitment or proceeds of the sale of any Collateral. All proceeds of any Takeout
Commitment or any other sale or refinancing of Collateral must be paid directly to the
Cash Collateral Account for application as provided in this Agreement.
	 
	 	 
	4.5 (b)

	 	After an Event of Default, Lender or its designee is entitled to service and receive and
collect all sums payable to Borrower in respect of the Collateral, and in such case (1) Lender
or its designee in its discretion may, in its own name, in the name of Borrower or otherwise,
demand, sue for, collect or receive any money or property at any time payable or receivable on
account of or in exchange for any of the Collateral, but Lender has no obligation to do so,
(2) Borrower must, if Lender requests it to do so, hold in trust for the benefit of Lender and
immediately pay to Lender at its office designated by Notice, all amounts received by Borrower
upon or in respect of any of the Collateral, advising Lender as to the source of those funds
and (3) all amounts so received and collected by Lender will be held by it as part of the
Collateral.

	4.6.  	Return of Collateral at End of Warehousing Commitment

If (a) the Warehousing Commitment has expired or been terminated, and (b) no Warehousing
Advances, interest or other Obligations are outstanding and unpaid, Lender will release its
security interest and will deliver all Collateral in its possession to Borrower at Borrower’s
expense. Borrower’s acknowledgement or receipt for any Collateral released or delivered to
Borrower under any provision of this Agreement is a complete and full acquittance for the
Collateral so returned, and Lender is discharged from any liability or responsibility for that
Collateral.

	4.7.  	Delivery of Collateral Documents

	 	 	 
	4.7 (a)

	 	Lender may deliver documents relating to the Collateral to Borrower for correction
or completion under a Trust Receipt.
	 
	 	 
	4.7 (b)

	 	If no Event of Default exists, upon delivery by Borrower to Lender of shipping
instructions pursuant to the applicable Exhibit B. Lender will deliver the Mortgage
Notes evidencing Pledged Investments or Pledged Securities, together with all related loan
documents and pool documents previously received by Lender under the requirements of the
applicable Exhibit B, to the designated Investor or Approved Custodian or to another
party designated by Borrower and acceptable to Lender in its sole discretion.
	 
	 	 
	4.7 (c)

	 	If a Default or Event of Default exists, Lender may, without liability to Borrower or
any other Person, continue to deliver Pledged Investments or Pledged Securities, together
with all related loan documents and pool documents in Lender’s possession, to the applicable
Investor, or Approved Custodian or to another party acceptable to Lender in its sole
discretion.

Page 4-5

Dated: 5/23/2003

Amended: 6/11/2004

 

End of Article 4

Page 4-6

Dated: 5/23/2003

Amended: 6/11/2004

 

	5.  	CONDITIONS PRECEDENT
	 
	5.1.  	Initial Advance

Lender’s obligation to make the initial Warehousing Advance is subject to the satisfaction,
in the sole discretion of Lender, of the following conditions precedent:

	 	 
	5.1 (a)

	 	Lender must receive the following, all of which must be satisfactory in form and
content to Lender, in its sole discretion:

	 	(1)  	The Warehousing Note and this Agreement duly executed by Borrower.
	 
	 	(2)  	MMA’s articles of organization, together with all amendments, as certified
by the Secretary of State of Delaware, MMA’s operating agreement, together
with all amendments, certified by the manager of MMA, and certificates of
good standing dated within 30 days of the date of this Agreement, together
with a certification from the Franchise Tax Board or other state tax
authority stating that MMA is in good standing with the Franchise Tax
Board or such state tax authority, if applicable.
	 
	 	(3)  	A resolution, consent or approval of all of the members of MMA authorizing
the execution, delivery and performance of this Agreement and the other
Loan Documents, each Warehousing Advance Request and all other agreements,
instruments or documents to be delivered by MMA under this Agreement.
	 
	 	(4)  	A certificate as to the incumbency and authenticity of the signatures of
the managers of MMA executing this Agreement and the other Loan Documents,
and of the managers and employees of MMA delivering each Warehousing
Advance Request and all other agreements, instruments or documents to be
delivered under this Agreement (Lender being entitled to rely on that
certificate until a new incumbency certificate has been furnished to
Lender).
	 
	 	(5)  	Assumed Name Certificates dated within 90 days of the date of this
Agreement for any assumed name used by MMA in the conduct of its business.
	 
	 	(6)  	MTEI’s articles of organization, together with all amendments, as
certified by the Secretary of State of Maryland, MTEI’s operating
agreement, together with all amendments, certified by the manager of MTEI,
and certificates of good standing dated within 30 days of the date of this
Agreement, together with a certification from the Franchise Tax Board or
other state tax authority stating that MTEI is in good standing with the
Franchise Tax Board or such state tax authority, if applicable.
	 
	 	(7)  	A resolution, consent or approval of all of the members of MTEI
authorizing the execution, delivery and performance of this Agreement and
the other Loan Documents, each Warehousing Advance Request and all other
agreements, instruments or documents to be delivered by MTEI under this
Agreement.
	 
	 	(8)  	A certificate as to the incumbency and authenticity of the signatures of
the managers of MTEI executing this Agreement and the other Loan
Documents, and of the managers and employees of MTEI delivering each
Warehousing Advance Request and all other agreements, instruments or
documents to be

Page 5-1

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	   	delivered under this Agreement (Lender being entitled to
rely on that certificate until a new incumbency certificate has been
furnished to Lender).
	 
	 	(9)  	Assumed Name Certificates dated within 90 days of the date of this
Agreement for any assumed name used by MTEI in the conduct of its
business.
	 
	 	(10)  	Midland Mortgage’s articles of incorporation, together with all
amendments, as certified by the Secretary of State of Florida, Midland
Mortgage’s by-laws, together with all amendments, certified by the
corporate secretary or assistant secretary of Midland Mortgage, or a
certificate of Midland Mortgage stating that that has been no change in
either Borrower’s articles or certificate of incorporation or bylaws since
those delivered in connection with the Existing Agreement and certificates
of good standing dated within 30 days of the date of this Agreement,
together with a certification from the Franchise Tax Board or other state
tax authority stating that Midland Mortgage is in good standing with the
Franchise Tax Board or such state tax authority, if applicable.
	 
	 	(11)  	A resolution of the board of directors of Midland Mortgage authorizing the
execution, delivery and performance of this Agreement and the other Loan
Documents, each Warehousing Advance Request and all other agreements,
instruments or documents to be delivered by Midland Mortgage under this
Agreement.
	 
	 	(12)  	A certificate as to the incumbency and authenticity of the signatures of
the officers of Midland Mortgage executing this Agreement and the other
Loan Documents, and of the officers and employees of Midland Mortgage
delivering each Warehousing Advance Request and all other agreements,
instruments or documents to be delivered under this Agreement (Lender
being entitled to rely on that certificate until a new incumbency
certificate has been furnished to Lender).
	 
	 	(13)  	Assumed Name Certificates dated within 90 days of the date of this
Agreement for any assumed name used by Midland Mortgage in the conduct of
its business.
	 
	 	(14)  	MMA Construction’s articles of organization, together with all amendments,
as certified by the Secretary of State of Maryland, MMA Construction’s
operating agreement, together with all amendments, certified by the
manager of MMA Construction, and certificates of good standing dated
within 30 days of the date of this Agreement, together with a
certification from the Franchise Tax Board or other state tax authority
stating that MMA Construction is in good standing with the Franchise Tax
Board or such state tax authority, if applicable.
	 
	 	(15)  	A resolution, consent or approval of all of the members of MMA
Construction authorizing the execution, delivery and performance of this
Agreement and the other Loan Documents, each Warehousing Advance Request
and all other agreements, instruments or documents to be delivered by MMA
Construction under this Agreement.
	 
	 	(16)  	A certificate as to the incumbency and authenticity of the signatures of
the managers of MMA Construction executing this Agreement and the other
Loan Documents, and of the managers and employees of MMA Construction
delivering each Warehousing Advance Request and all other agreements,
instruments or documents to be delivered under this Agreement (Lender
being entitled to rely on that certificate until a new incumbency
certificate has been furnished to Lender).

Page 5-2

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	(17)  	Assumed Name Certificates dated within 90 days of the date of this
Agreement for any assumed name used by MMA Construction in the conduct of
its business.
	 
	 	(18)  	MMA Capital’s articles of incorporation, together with all amendments, as
certified by the Secretary of State of Michigan, MMA Capital’s by-laws,
together with all amendments, certified by the corporate secretary or
assistant secretary of MMA Capital, and certificates of good standing
dated within 30 days of the date of this Agreement, together with a
certification from the Franchise Tax Board or other state tax authority
stating that MMA Capital is in good standing with the Franchise Tax Board
or such state tax authority, if applicable.
	 
	 	(19)  	A resolution of the board of directors of MMA Capital authorizing the
execution, delivery and performance of this Agreement and the other Loan
Documents, each Warehousing Advance Request and all other agreements,
instruments or documents to be delivered by MMA Capital under this
Agreement.
	 
	 	(20)  	A certificate as to the incumbency and authenticity of the signatures of
the officers of MMA Capital executing this Agreement and the other Loan
Documents, and of the officers and employees of MMA Capital delivering
each Warehousing Advance Request and all other agreements, instruments or
documents to be delivered under this Agreement (Lender being entitled to
rely on that certificate until a new incumbency certificate has been
furnished to Lender).
	 
	 	(21)  	Assumed Name Certificates dated within 90 days of the date of this
Agreement for any assumed name used by MMA Capital in the conduct of its
business.
	 
	 	(22)  	A favorable written opinion of counsel to Borrower, addressed to Lender
and dated as of the date of this Agreement, covering such matters as
Lender may reasonably request.
	 
	 	(23)  	Uniform Commercial Code, tax lien and judgment searches of the appropriate
public records for Borrower that do not disclose the existence of any
prior Lien on the Collateral other than in favor of Lender or as permitted
under this Agreement.
	 
	 	(24)  	Copies of the certificates, documents or other written instruments that
evidence Borrower’s eligibility described in Section 9.1, all in form and
substance satisfactory to Lender.
	 
	 	(25)  	Copies of Borrower’s errors and omissions insurance policy or mortgage
impairment insurance policy, and blanket bond coverage policy, or
certificates in lieu of policies, showing compliance by Borrower as of the
date of this Agreement with the provisions of Section 7.9.
	 
	 	(26)  	A fully-executed Funding Bank Agreement and evidence that all accounts
into which Warehousing Advances will be funded have been established at
the Funding Bank.
	 
	 	(27)  	Receipt by Lender of any fees due on the date of this Agreement.

	 	 
	5.1 (b)

	 	If Borrower is indebted to any of its managers, members or Affiliates or any
director, officer or shareholder of any manager, member or Affiliate of any manager or member,
as of the date of this Agreement, except in the case of Excluded Lines of Credit, the Person

to whom Borrower is indebted must have executed a Subordination of Debt Agreement, on the form
prescribed by Lender; and Lender must have received an

Page 5-3

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 
	

	 	executed copy of that Subordination of Debt Agreement, certified by the corporate
secretary of Borrower to be true and complete and in full force and effect as of the
date of the Warehousing Advance; provided, that no such Subordination of Debt Agreement
shall be required for such indebtedness in an aggregate amount of up to $10,000,000.
	 
	 	 
	5.1 (c)

	 	Borrower must not have incurred any material liabilities, direct or contingent, other than
in the ordinary course of its business, since the Audited Statement Date.
	 
	 	 
	5.2.

	 	Each Advance
	 
	 	 
	Lender’s obligation to make the initial and each subsequent Warehousing Advance is subject
to the satisfaction, as of the date of each Warehousing Advance, of the following additional
conditions precedent:
	 
	 	 
	5.2 (a)

	 	Borrower must have delivered to Lender the Warehousing Advance Request and
Collateral Documents required by, and must have satisfied the procedures set forth in,
Article 2 and the Exhibits described in that Article. All items delivered to Lender must
be satisfactory to Lender in form and content, and Lender may reject any item that does
not satisfy the requirements of this Agreement or of the related Purchase Commitment.
	 
	 	 
	5.2 (b)

	 	Lender must have received evidence satisfactory to it as to the making or continuation of
any book entry or the due filing and recording in all appropriate offices of all financing
statements and other instruments necessary to perfect the security interest of Lender in the
Collateral under the Uniform Commercial Code or other applicable law.
	 
	 	 
	5.2 (c)

	 	The representations and warranties of Borrower contained in Article 6 and Article 9 must
be accurate and complete in all material respects as if made on and as of the date of each
Warehousing Advance.
	 
	 	 
	5.2 (d)

	 	Borrower must have performed all agreements to be performed by it under this
Agreement, and after giving effect to the requested Warehousing Advance, no Default or
Event of Default will exist under this Agreement.
	 
	 	 
	Delivery of an Warehousing Advance Request by Borrower will be deemed a representation by Borrower
that all conditions set forth in this Section have been satisfied as of the date of the
Warehousing Advance. Lender’s determination that any of the foregoing conditions have not been
satisfied shall be binding in the absence of manifest error.
	 
	 	 
	5.3.

	 	New Fannie Mae Master Credit Facility Agreements
	 
	 	 
	With the prior written consent of Lender, Borrower may amend Exhibit K to add a new
Master Credit Facility Agreement. An amendment to Exhibit K is not effective, and Lender
has no obligation to make Warehousing Advances against Special Fannie Mae Mortgage Loans under any
new Master Credit Facility Agreement, until Borrower has satisfied the following conditions
precedent:
	 
	 	 
	5.3 (a)

	 	The representations and warranties of Borrower contained in Article 6 must be accurate
and complete in all material respects as if made on and as of the date of, and after
giving effect to, the amendment to Exhibit K.
	 
	 	 
	5.3 (b)

	 	If requested by Lender, Lender must receive from counsel for Borrower an updated
opinion, in form and substance satisfactory to Lender, addressed to Lender and dated

Page 5-4

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 
	

	 	the date of the amendment to Exhibit K. covering such matters relating to the
Master Credit Facility Agreement and related documents as Lender may reasonably request.
	 
	 	 
	5.4.

	 	INTENTIONALLY OMITTED
	 
	 	 
	5.5.

	 	INTENTIONALLY OMITTED
	 
	 	 
	5.6.

	 	Force Majeure
	 
	 	 
	Notwithstanding Borrower’s satisfaction of the conditions set forth in this Agreement, Lender
has no obligation to make an Warehousing Advance if Lender is prevented from obtaining the funds
necessary to make an Warehousing Advance, or is otherwise prevented from making an Warehousing
Advance as a result of any fire or other casualty, failure of power, strike, lockout or other labor
trouble, banking moratorium, embargo, sabotage, confiscation, condemnation, riot, civil
disturbance, insurrection, act of terrorism, war or other activity of armed forces, act of God or
other similar reason beyond the control of Lender. Lender will make the requested Warehousing
Advance as soon as reasonably possible following the occurrence of such an event.

End of Article 5

Page 5-5

Dated: 5/23/2003

Amended: 6/11/2004

 

	6.  	GENERAL REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Lender, as of the date of this Agreement and as of the
date of each Warehousing Advance Request and the making of each Warehousing Advance, that:

	6.1.  	Place of Business

Borrowers’ chief executive office and principal place of business is 621 East Pratt Street,
3rd Floor, Baltimore, MD, 21202.

	6.2.  	Organization; Good Standing; Subsidiaries

MMA is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Delaware, MTEI is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of Maryland, Midland Mortgage is
a corporation duly organized, validly existing and in good standing under the laws of the State of
Florida, MMA Construction is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Maryland, MMA Capital is a corporation duly organized,
validly existing and in good standing under the laws of the State of Michigan, and each of MMA,
MTI, Midland Mortgage, MMA Construction and MMA Capital has the full legal power and authority to
own its property and to carry on its business as currently conducted. Each of MMA, MTEI and MMA
Construction is duly qualified as a foreign limited liability company and each of Midland Mortgage
and MMA Capital is duly qualified as a foreign corporation, to do business and each of MMA, MTEI,
Midland Mortgage, MMA Construction and MMA Capital is in good standing in each jurisdiction in
which the transaction of their respective business makes qualification necessary, except in
jurisdictions, if any, where a failure to be in good standing has no material adverse effect on
their business, operations, assets or financial condition as a whole. For the purposes of this
Agreement, good standing includes qualification for all licenses and payment of all taxes required
in the jurisdiction of its formation or incorporation and in each jurisdiction in which each
Borrower transacts business. Each Borrower has no Subsidiaries except as set forth on Exhibit
D, which sets forth with respect to each Subsidiary, its name, address, jurisdiction of
organization, each state in which it is qualified to do business, and the percentage ownership of
its membership interests by MMA, MTEI and MMA Construction or its shareholder interests by Midland
Mortgage and MMA Capital. Each of Borrowers’ Subsidiaries is duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization or incorporation, and has
the full legal power and authority to own its property and to carry on its business as currently
conducted.

	6.3.  	Authorization and Enforceability

Each Borrower has the power and authority to execute, deliver and perform this Agreement,
the Warehousing Note and other Loan Documents to which Borrower is party and to make the
borrowings under this Agreement. The execution, delivery and performance by each Borrower of this
Agreement, the Warehousing Note and the other Loan Documents to which Borrower is party and the
making of the borrowings under this Agreement, and the Warehousing Note, have been duly and
validly authorized by all necessary company action on the part of Borrower (none of which actions
has been modified or rescinded, and all of which actions are in full force and effect) and do not
and will not (a) conflict with or violate any provision of law, of any judgments binding upon
Borrower, or of the articles of organization or operating agreement of MMA, MTEI and MMA
Construction or of the articles of incorporation or bylaws of Midland Mortgage and MMA Capital, or
(b) conflict with or result in a breach of, constitute a default or require any consent under, or
result in or require the acceleration of any indebtedness of any Borrower under any agreement,
instrument or indenture to which Borrower is a party or by which Borrower or its property may be

Page 6-1

Dated: 5/23/2003

Amended: 6/11/2004

 

bound or affected, or result in the creation of any Lien upon any property or assets of Borrower
(other than the Lien on the Collateral granted under this Agreement). This Agreement, the
Warehousing Note and the other Loan Documents constitute the legal, valid and binding obligations
of Borrower, enforceable in accordance with their respective terms, except as limited by
bankruptcy, insolvency or other such laws affecting the enforcement of creditors’ rights.

	6.4.  	Approvals

The execution and delivery of this Agreement, the Warehousing Note and the other Loan
Documents and the performance of Borrowers’ obligations under this Agreement, the Warehousing Note
and the other Loan Documents and the validity and enforceability of this Agreement, the
Warehousing Note and the other Loan Documents do not require any license, consent, approval or
other action of any state or federal agency or governmental or regulatory authority other than
those that have been obtained and remain in full force and effect.

	6.5.  	Financial Condition

The consolidated balance sheet of MMA (and its Subsidiaries) and the balance sheet of MuniMae
TE Bond Subsidiary, LLC, as of each Statement Date, and the related statements of income, cash
flows and changes in members’ equity for the fiscal period ended on each Statement Date, furnished
to Lender, fairly present the consolidated financial condition of MMA (and its Subsidiaries) and
MuniMae TE Bond Subsidiary, LLC, respectively, as at that Statement Date and the results of its
operations for the fiscal period ended on that Statement Date. MMA and its Subsidiaries and MuniMae
TE Bond Subsidiary, LLC, each had, on each Statement Date, no known material liabilities, direct or
indirect, fixed or contingent, matured or unmatured, or liabilities for taxes, long-term leases or
unusual forward or long-term commitments not disclosed by, or reserved against in, those financial
statements, and at the present time there are no material unrealized or anticipated losses from any
loans, advances or other commitments of MMA or any Subsidiary except as previously disclosed to
Lender in writing. Those consolidated financial statements were prepared in accordance with GAAP
applied on a consistent basis throughout the periods involved. Since the Audited Statement Date,
there has been no material adverse change in the business, operations, assets or financial
condition of any MMA and its Subsidiaries, taken as a whole, nor is any Borrower aware of any state
of facts that (with or without notice or lapse of time or both) would or could result in any such
material adverse change.

	6.6.  	Litigation

There are no actions, claims, suits or proceedings pending or, to any Borrower’s knowledge,
threatened or reasonably anticipated against or affecting MMA or any Subsidiary in any court or
before any arbitrator or before any government commission, board, bureau or other administrative
agency that, if adversely determined, may reasonably be expected to result in a material adverse
change in the businesses, operations, assets or financial condition of MMA and its Subsidiaries,
taken as a whole, or that would affect the validity or enforceability of this Agreement, the
Warehousing Note or any other Loan Document.

	6.7.  	Compliance with Laws

No Borrower nor any Subsidiary of any Borrower is in violation of any provision of any law,
or of any judgment, award, rule, regulation, order, decree, writ or injunction of any court or
public regulatory body or authority that could result in a material adverse change in Borrowers’
businesses, operations, assets or financial condition as a whole or that would affect the validity
or enforceability of this Agreement, the Warehousing Note or any other Loan Document.

Page 6-2

Dated: 5/23/2003

Amended: 6/11/2004

 

	7.  	AFFIRMATIVE COVENANTS

As long as the Warehousing Commitment is outstanding or there remain any Obligations to be
paid or performed under this Agreement or under any other Loan Document, Borrower must:

	7.1.  	Payment of Obligations

Punctually pay or cause to be paid all Obligations, including the Obligations payable under
this Agreement and under the Warehousing Note, in accordance with their terms.

	7.2.  	Financial Statements

Deliver to Lender:

	 	 	 
	7.2 (a)

	 	As soon as available and in any event within 45 days after the end of each of the first
three fiscal quarters of Borrower during each fiscal year, including the last fiscal quarter
of Borrower’s fiscal year, a consolidated interim statement of income of MMA and its
Subsidiaries, and separate interim statements of income for Midland Mortgage, MMA Capital and
MMA Construction, for that fiscal quarter and the period from the beginning of the fiscal year
to the end of that fiscal quarter, and the related consolidated balance sheets as at the end
of that fiscal quarter, all in reasonable detail, subject, however, to year-end audit
adjustments.
	 
	 	 
	7.2 (b)

	 	As soon as available and in any event within 105 days after the end of each fiscal year
of Borrower, consolidated fiscal year-end statements of income and cash flow of MMA and its
Subsidiaries, and separate fiscal year-end statements of income and cash flow for Midland
Mortgage, MMA Capital and MMA Construction, for that year, and the related balance sheet as of
the end of that year (setting forth in comparative form the corresponding figures for the
preceding fiscal year), all in reasonable detail, and accompanied by (1) an opinion as to
those financial statements in form and prepared by independent certified public accountants of
recognized standing acceptable to Lender, and (2) copies of any management letters, management
reports or other supplementary comments or reports delivered to Borrower, its board of
directors or managing members, as applicable, by its auditors.
	 
	 	 
	7.2 (c)

	 	As soon as available and in any event within 105 days after the end of each fiscal year
of Borrower, annual 10-K statements of each Borrower.
	 
	 	 
	7.2 (d)

	 	As soon as available and in any event within 45 days after the end of each of the first
three fiscal quarters of Borrower during each fiscal year, quarterly 10-Q statements of each
Borrower.
	 
	 	 
	7.2 (e)

	 	As soon as available and in any event within 45 days after the end of each fiscal
quarter of Borrower, including the last fiscal quarter of Borrower’s fiscal year, an interim
statement of income of MuniMae TE Bond Subsidiary LLC (and, if applicable, its Subsidiaries)
for that fiscal quarter and the period from the beginning of the fiscal year to the end of
that fiscal quarter, and the related balance sheet as at the end of that fiscal quarter, all
in reasonable detail, subject, however, to year-end audit adjustments.
	 
	 	 
	7.2 (f)

	 	As soon as available and in any event within 105 days after the end of each fiscal year
of MAHGT, fiscal year-end statements of income, changes in net assets and cash flow of MAHGT
(and, if applicable, MAHGT’s Subsidiaries, on a consolidated basis) for that

Page 7-1

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	

	 	year, and the related balance sheet as of the end of that year (setting forth in
comparative form the corresponding figures for the preceding fiscal year), all in
reasonable detail and accompanied by (1) an opinion as to those financial statements in
form and prepared by independent certified public accountants of recognized standing
acceptable to Lender and (2) any management letters, management reports or other
supplementary comments or reports delivered by those accountants to MAHGT or its board of
directors.
	 
	 	 
	7.2 (g)

	 	Together with each delivery of financial statements required by this Section, a
Compliance Certificate substantially in the form of Exhibit E.
	 
	 	 
	7.2 (h)

	 	Copies of all regular or periodic financial and other reports that MMA files with the
Securities and Exchange Commission or any successor governmental agency or other entity.
	 
	 	 
	7.3.

	 	Other Borrower Reports
	 
	 	 
	Deliver to Lender:
	 
	 	 
	7.3 (a)

	 	As soon as available and in any event within 45 days after the end of each Calendar
Quarter, a consolidated report (“Servicing Portfolio Report”) as of the end of
the Calendar Quarter, as to all Mortgage Loans the servicing rights to which are owned by
Borrower (specified by investor type, recourse and non-recourse) regardless of whether
the Mortgage Loans are Pledged Investments. The Servicing Portfolio Report must indicate
which Mortgage Loans (1) are current and in good standing, (2) are more than 30, 60 or 90
days past due, (3) are the subject of pending bankruptcy or foreclosure proceedings, or
(4) have been converted (through foreclosure or other proceedings in lieu of foreclosure)
into real estate owned by Borrower.
	 
	 	 
	7.3 (b)

	 	As soon as available and in any event within 45 days after the end of each fiscal
quarter in the fiscal year of Borrower, a consolidated loan production report as of the end
of that fiscal quarter, presenting the total dollar volume and the number of Mortgage Loans
originated and closed or purchased during that fiscal quarter and for the fiscal
year-to-date, specified by property type, loan type and Investor to whom each Mortgage Loan
was sold.
	 
	 	 
	7.3 (c)

	 	As soon as available and in any event within 45 days after the end of each fiscal quarter
of Borrower, a mark-to-market value report for all Municipal Bonds owned by any Borrower,
prepared in a manner consistent with market requirements and reasonably satisfactory to
Lender, a status report with respect to each Bridge Loan and Municipal Bond pledged under this
Agreement, and a construction performance report and a supplemental status report with respect
to each Builder Loan pledged under this Agreement, in each case as of the end of the prior
fiscal quarter and in form and substance satisfactory to Lender.
	 
	 	 
	7.3 (d)

	 	A copy of any material change to the Underwriting Guidelines, not fewer than 3 Business
Days prior to the effective date of that change.
	 
	 	 
	7.3 (e)

	 	As soon as available and in any event within 45 days after the end of each Calendar
Quarter, a copy of all changes to the Underwriting Guidelines, and if there have been no
changes, a statement to that effect.

Page 7-2

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	7.3 (f)

	 	Other reports in respect of Pledged Assets, including copies of purchase
confirmations issued by Investors purchasing Pledged Investments from Borrower, in such detail
and at such times as Lender in its discretion may reasonably request.
	 
	 	 
	7.3 (g)

	 	With reasonable promptness, all further information regarding the business, operations,
properties or financial condition of Borrower as Lender may reasonably request, including, to
the extent Borrower is permitted to disclose the same, copies of any audits completed by HUD,
Ginnie Mae, Fannie Mae or Freddie Mac.

	7.4.  	Maintenance of Existence; Conduct of Business

Preserve and maintain the existence of each Borrower, as a limited liability company or a
corporation, in good standing and all of their respective rights, privileges, licenses and
franchises necessary or desirable in the normal conduct of Borrowers’ business, including their
respective eligibility as lender, seller/servicer and issuer described under Section 9.1; except to
the extent otherwise permitted pursuant to Section 8.2, conduct Borrowers’ business in an orderly
and efficient manner; maintain a net worth of acceptable assets as required for maintaining Midland
Mortgage’s eligibility as lender, seller/servicer and issuer described under Section 9.1; and make
no material change in the nature or character of their business, taken as a whole.

	7.5.  	Compliance with Applicable Laws

Comply with the requirements of all applicable laws, rules, regulations and orders of any
governmental authority, a breach of which could result in a material adverse change in Borrowers’
business, operations, assets, or financial condition as a whole or on the enforceability of this
Agreement, the Notes, any other Loan Document or any Collateral, except where contested in good
faith and by appropriate proceedings.

	7.6.  	Inspection of Properties and Books; Operational Reviews

Permit Lender or its authorized representatives (and, at the request of Lender, such request
not to be unreasonably denied, to discuss the business, operations, assets and financial condition
of Borrower and its Subsidiaries with MMA, MTEI and MMA Construction’s managers and other
management officials, Midland Mortgage and MMA Capital’s officers and shareholders, and agents and
employees, and to examine and make copies or extracts of Borrowers’ and their Subsidiaries’ books
of account, all at such reasonable times and upon such reasonable notice as Lender may request.
Provide its accountants with a copy of this Agreement promptly after its execution and authorize
and instruct them to answer candidly all questions that the officers of Lender (or any Participant)
or any authorized representatives may address to them in reference to the financial condition or
affairs of MMA and its Subsidiaries. Borrower may have its representatives in attendance at any
meetings held between the officers or other representatives of Lender (or any Participant) and
Borrower’s accountants under this authorization. Permit Lender (or any Participant) or any
authorized representatives access to Borrower’s premises and records for the purpose of conducting
a review of Borrower’s general mortgage business methods, policies and procedures, auditing its
loan files and reviewing the financial and operational aspects of Borrower’s business. Lender shall
not, unless an Event of Default has occurred and is continuing, conduct more than one full business
review under this Section per annum, but may conduct such collateral-related inspections as it
determines, in its sole judgment, to be appropriate.

Page 7-3

Dated: 5/23/2003

Amended: 6/11/2004

 

	7.7.  	Notice

Give prompt Notice to Lender of (a) any action, suit or proceeding instituted by or against any
Borrower or any of its Subsidiaries in any federal or state court or before any commission or
other regulatory body (federal, state or local, domestic or foreign), which action, suit or
proceeding has at issue in excess of $1,000,000, or any such proceedings threatened against any
Borrower or any of its Subsidiaries in writing containing the details of that action, suit or
proceeding; (b) the filing, recording or assessment of any federal, state or local tax Lien
against any Borrower, or any of its assets or any of its Subsidiaries; (c) an Event of Default;
(d) a Default that continues for more than 4 days; (e) the suspension, revocation or termination
of Midland Mortgage’s eligibility, in any respect, as lender, seller/servicer or issuer as
described under Section 9.1; (f) the transfer, loss, nonrenewal or termination of any Servicing
Contracts to which Borrower is a party, or which is held for the benefit of Borrower, and the
reason for that transfer, loss, nonrenewal or termination if the aggregate principal balance of
Mortgage Loans affected exceeds $30,000,000; (g) any Prohibited Transaction with respect to any
Plan, specifying the nature of the Prohibited Transaction and what action Borrower proposes to
take with respect to it; and (h) any other action, event or condition of any nature that could
lead to or result in a material adverse change in the business, operations, assets or financial
condition of Borrower or any of its Subsidiaries.

	7.8.  	Payment of Debt, Taxes and Other Obligations

Pay, perform and discharge, or cause to be paid, performed and discharged, all of the
obligations and indebtedness of Borrower and its Subsidiaries, all taxes, assessments and
governmental charges or levies imposed upon Borrower or its Subsidiaries or upon their respective
income, receipts or properties before those taxes, assessments and governmental charges or levies
become past due, and all lawful claims for labor, materials and supplies or otherwise that, if
unpaid, could become a Lien or charge upon any of their respective properties or assets. Borrower
and its Subsidiaries are not required to pay, however, any taxes, assessments and governmental
charges or levies or claims for labor, materials or supplies for which Borrower or its Subsidiaries
have obtained an adequate bond or insurance or that are being contested in good faith and by proper
proceedings that are being reasonably and diligently pursued and for which proper reserves have
been created.

	7.9.  	Insurance

Maintain blanket bond coverage and errors and omissions insurance or mortgage impairment
insurance, with such companies and in such amounts as satisfy prevailing requirements applicable
to a lender, seller/servicer and issuer described under Section 9.1, and liability insurance and
fire and other hazard insurance on its properties, in each case with responsible insurance
companies acceptable to Lender, in such amounts and against such risks as is customarily carried
by similar businesses operating in the same location. Copies of such policies must be furnished to
Lender without charge upon request of Lender.

	7.10.  	Closing Instructions

Indemnify and hold Lender harmless from and against any loss, including reasonable attorneys’
fees and costs, attributable to the failure of any title insurance company, agent or attorney to
comply with Borrower’s disbursement or instruction letter relating to any Mortgage Loan. Lender has
the right to pre-approve Borrower’s choice of title insurance company, agent or attorney and
Borrower’s disbursement or instruction letter to them in any case in which Borrower intends to
obtain a Warehousing Advance against the Mortgage Loan prior to Lender’s receipt of all required
Collateral Documents.

Page 7-4

Dated: 5/23/2003

Amended: 6/11/2004

 

	7.11.  	Subordination of Certain Indebtedness

Cause any indebtedness of Borrower to any member, manager or Affiliate or any shareholder,
director or officer of any manager, member or Affiliate of Borrower, which indebtedness has a term
of more than 1 year or is in excess of $25,000, except in the case of Excluded Lines of Credit, to
be subordinated to the Obligations by the execution and delivery to Lender of a Subordination of
Debt Agreement, on the form prescribed by Lender, certified by the corporate secretary of Borrower
to be true and complete and in full force and effect.

	7.12.  	Other Loan Obligations

Promptly notify Lender in writing of a declared default under or the termination,
cancellation, reduction or nonrenewal of any of its other lines of credit or agreements with any
other lender. Exhibit F is a true and complete list of all such lines of credit or
agreements as of the date of this Agreement. Any Borrower must give
Lender Notice within 30 days
after entering into any additional lines of credit or agreements with a facility amount of
$25,000,000 or more.

	7.13.  	ERISA

Maintain (and, if applicable, cause each ERISA Affiliate to maintain) each Plan in compliance
with all material applicable requirements of ERISA and of the Internal Revenue Code and with all
applicable rulings and regulations issued under the provisions of ERISA and of the Internal Revenue
Code, and not (and, if applicable, not permit any ERISA Affiliate to), (a) engage in any
transaction in connection with which Borrower or any ERISA Affiliate would be subject to either a
civil penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by Section 4975 of the
Internal Revenue Code, in either case in an amount exceeding $25,000 or (b) fail to make full
payment when due of all amounts that, under the provisions of any Plan, Borrower or any ERISA
Affiliate is required to pay as contributions to that Plan, or permit to exist any accumulated
funding deficiency (as such term is defined in Section 302 of ERISA and Section 412 of the Internal
Revenue Code), whether or not waived, with respect to any Plan in an aggregate amount exceeding
$25,000.

	7.14.  	Use of Proceeds of Warehousing Advances

Use the proceeds of each Warehousing Advance solely for the purpose of funding or carrying
Eligible Investments and against the pledge of those Eligible Investments as Collateral.

	7.15.  	INTENTIONALLY OMITTED

End of Article 7

Page 7-5

Dated: 5/23/2003

Amended: 6/11/2004

 

	8.  	NEGATIVE COVENANTS

As long as the Warehousing Commitment is outstanding or there remain any Obligations to be
paid or performed, Borrower must not, either directly or indirectly, without the prior written
consent of Lender:

	8.1.  	Contingent Liabilities

Assume, guarantee, endorse or otherwise become contingently liable for the obligation of any
Person, except in the ordinary course of business in accordance with Borrower’s current practices
and disclosed annually (a) in MMA’s annual 10-K statement, or (b) in a written Notice to Lender.

	8.2.  	Pledge of Servicing Contracts

Pledge or grant a security interest in any existing or future Servicing Contracts of any
Borrower other than to Lender, or omit to take any action required to keep all of Borrowers’
Servicing Contracts in full force and effect.

	8.3.  	Restrictions on Fundamental Changes

	 	 	 
	8.3 (a)

	 	Consolidate, merge or enter into any analogous reorganization or transaction with any
Person, unless (a) in the case of MMA, MMA is the surviving entity, or (b) in the case of any
other Borrower, the surviving entity is a Borrower and a wholly-owned Subsidiary of MMA.
	 
	 	 
	8.3 (b)

	 	Liquidate, wind up or dissolve (or suffer any liquidation or dissolution); provided,
that any Borrower other than MMA may be liquidated, wound up or dissolved as long as all
outstanding Advances to such Borrower are assumed, and all outstanding Collateral pledged by
such Borrower is transferred, to another Borrower.
	 
	 	 
	8.3 (c)

	 	Cease actively to engage in the business of originating or acquiring Mortgage Loans or
make any other material change in the nature or scope of the business in which any Borrower
engages as of the date of this Agreement.
	 
	 	 
	8.3 (d)

	 	Sell, assign, lease, convey, transfer or otherwise dispose of (whether in one
transaction or a series of transactions) all or substantially all of the business or assets
of MMA and its Subsidiaries, taken as a whole.

	8.4.  	Deferral of Subordinated Debt

Except as permitted in the Subordination of Debt Agreement related thereto, pay any
Subordinated Debt of Borrower in advance of its stated maturity or, after an Event of Default under
this Agreement has occurred, make any payment of any kind on any Subordinated Debt of Borrower
until all of the Obligations have been paid and performed in full and any applicable preference
period has expired.

	8.5.  	Loss of Eligibility

Take any action that would cause any Borrower to lose all or any part of its status as an
eligible lender, seller/servicer or issuer as described under Section 9.1.

Page 8-1

Dated: 5/23/2003

Amended: 6/11/2004

 

	8.6.  	Accounting Changes

Make, or permit any Subsidiary of any Borrower to make, any significant change in accounting
treatment or reporting practices, except as required by GAAP.

	8.7.  	Leverage Ratio

Permit MMA’s Leverage Ratio at any time to exceed 6 to 1.

	8.8.  	Minimum Consolidated Tangible Net Worth

Permit MMA’s Tangible Net Worth at any time to be less than $325,000,000.

	8.9.  	Minimum Consolidated Modified Net Worth

Permit MMA’s Modified Net Worth at any time to be less than $100,000,000.

	8.10.  	Ratio of CAD to Annual Debt Payments

Permit Borrowers’ ratio of CAD to Annual Debt Payments for any period of four consecutive
fiscal quarters at any time to be less than 1.50 to 1.00.

	8.11.  	Distributions to Members

Make any distributions to MMA’s Members common equity shareholders if an Event of Default
exists or would occur as a result of the distribution.

	8.12.  	Underwriting Guidelines

Borrower will make no material amendment to the Underwriting Guidelines without the prior
written consent of Lender, unless Borrower agrees to amend the Agreement in a manner satisfactory
to Lender to modify the types of Eligible Investments and Servicing Contracts against which
Advances may be outstanding hereunder to reflect such amendment.

End of Article 8

Page 8-2

Dated: 5/23/2003

Amended: 6/11/2004

 

	9.  	SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING
COLLATERAL

	9.1.  	Special Representations and Warranties Concerning Eligibility as
Seller/Servicer of Mortgage Loans

Borrower represents and warrants to Lender, as of the date of this Agreement and as of the
date of each Warehousing Advance Request and the making of each Warehousing Advance, that Midland
Mortgage is approved and qualified and in good standing as a lender, seller/servicer or issuer, as
set forth below, and meets all requirements applicable to its status as:

	 	 	 
	9.1 (a)

	 	A HUD-approved mortgagee, eligible to originate, purchase, hold, sell and service FHA
fully insured Mortgage Loans.
	 
	 	 
	9.1 (b)

	 	A Ginnie Mae-approved seller/servicer of Mortgage Loans and issuer of Mortgage-backed
Securities guaranteed by Ginnie Mae.
	 
	 	 
	9.1 (c)

	 	A Fannie Mae-approved seller/servicer of Mortgage Loans, eligible to originate,
purchase, hold, sell and service Mortgage Loans to be sold to Fannie Mae under the Fannie Mae
DUS Program.
	 
	 	 
	9.1 (d)

	 	A Freddie Mac-approved seller/servicer of Mortgage Loans, eligible to originate,
purchase, hold, sell and service Mortgage Loans to be sold to Freddie Mac under the
Freddie Mac Program Plus program.

	9.2.  	Special Representations and Warranties Concerning Warehousing
Collateral

Borrower represents and warrants to Lender, as of the date of this Agreement and as of the
date of each Warehousing Advance Request and the making of each Warehousing Advance, that:

	 	 	 
	9.2 (a)

	 	Borrower has not selected the Collateral in a manner so as to affect adversely Lender’s
interests.
	 
	 	 
	9.2 (b)

	 	Borrower is the legal and equitable owner and holder, free and clear of all Liens (other
than Liens granted under this Agreement), of the Pledged Investments and the Pledged
Securities. All Pledged Investments, Pledged Securities and related Purchase Commitments have
been duly authorized and validly issued to Borrower, and all of the foregoing items of
Collateral comply with all of the requirements of this Agreement, and have been and will
continue to be validly pledged or assigned to Lender, subject to no other Liens.
	 
	 	 
	9.2 (c)

	 	Borrower has, and will continue to have, the full right, power and authority to pledge
the Collateral pledged and to be pledged by it under this Agreement.
	 
	 	 
	9.2 (d)

	 	Each Mortgage Loan and each related document included in the Pledged Investments (1) has
been duly executed and delivered by the parties to that Mortgage Loan and that related
document, (2) has been made in compliance with all applicable laws, rules and regulations
(including all laws, rules and regulations relating to usury), (3) is and will continue to be
a legal, valid and binding obligation, enforceable in accordance with its terms, without
setoff, counterclaim or defense in favor of the mortgagor under the

Page 9-1

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	

	 	Mortgage Loan or any other obligor on the Mortgage Note and (4) has not been modified,
amended or any requirements of which waived, except in writing that is part of the
Collateral Documents.
	 
	 	 
	9.2 (e)

	 	Each Pledged Investment is secured by a Mortgage on real property and improvements
located in one of the states of the United States or the District of Columbia.
	 
	 	 
	9.2 (f)

	 	Each First Mortgage Loan is secured by a First Mortgage on the real property and
improvements described in or covered by that Mortgage.
	 
	 	 
	9.2 (g)

	 	Each First Mortgage Loan has or will have a title insurance policy, in ALTA form or
equivalent, from a recognized title insurance company, insuring the priority of the Lien of
the Mortgage and meeting the usual requirements of Investors purchasing those Mortgage Loans.
	 
	 	 
	9.2 (h)

	 	Where limited by Exhibit H to Second Mortgage Loans, each Subordinate Mortgage
Loan is secured by a second Lien on the premises described in that Mortgage, and where not so
limited by Exhibit H, each Subordinate Mortgage Loan is secured by a second, third or
fourth Lien, as applicable, on the premises described in that Mortgage.
	 
	 	 
	9.2 (i)

	 	To the extent required by the related Purchase Commitment or by Investors generally for
similar Mortgage Loans, each Subordinate Mortgage Loan has or will have a title insurance
policy, in ALTA form or equivalent, from a recognized title insurance company, insuring the
priority of the Lien of the Mortgage and meeting the usual requirements of Investors
purchasing those Mortgage Loans.
	 
	 	 
	9.2 (j)

	 	Each Mortgage Loan has been evaluated or appraised in accordance with Title XI of
FIRREA.
	 
	 	 
	9.2 (k)

	 	The Mortgage Note for each Pledged Investment is (1) payable or endorsed to the order of
Borrower, (2) an “instrument” within the meaning of Article 9 of the Uniform Commercial Code
of all applicable jurisdictions and (3) is denominated and payable in United States dollars.
	 
	 	 
	9.2 (I)

	 	No payment default has existed for 60 days or more under any Mortgage Loan included in
the Pledged Investments.
	 
	 	 
	9.2 (m)

	 	No party to a Mortgage Loan or any related document is in violation of any applicable
law, rule or regulation that would impair the collectibility of the Mortgage Loan or the
performance by the mortgagor or any other obligor of its obligations under the Mortgage Note
or any related document.
	 
	 	 
	9.2 (n)

	 	All fire and casualty policies covering the real property and improvements encumbered by
each Mortgage included in the Pledged Investments (1) name and will continue to name Borrower
and its successors and assigns as the insured under a standard mortgagee clause, (2) are and
will continue to be in full force and effect and (3) afford and will continue to afford
insurance against fire and such other risks as are usually insured against in the broad form
of extended coverage insurance generally available.
	 
	 	 
	9.2 (o)

	 	Pledged Investments secured by real property and improvements located in a special flood
hazard area designated as such by the Director of the Federal Emergency Management Agency are
and will continue to be covered by special flood insurance under the National Flood Insurance
Program.

Page 9-2

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	9.2 (p)

	 	Each Pledged Investment against which a Warehousing Advance is made on the basis
of a Purchase Commitment or a commitment to finance such Pledged Investment or refinance
the underlying obligation meets all of the requirements of that commitment, and each
Pledged Security against which a Warehousing Advance is outstanding meets all of the
requirements of the related Purchase Commitment.
	 
	 	 
	9.2 (q)

	 	Pledged Investments that are Mortgage Loans intended to be exchanged for Agency
Securities comply or, prior to the issuance of the Agency Securities will comply, with the
requirements of any governmental instrumentality, department or agency issuing or
guaranteeing the Agency Securities.
	 
	 	 
	9.2 (r)

	 	Pledged Investments that are intended to be used in the formation of Mortgage-backed
Securities (other than Agency Securities) comply with the requirements of the issuer of the
Mortgage-backed Securities (or its sponsor) and of the Rating Agencies.
	 
	 	 
	9.2 (s)

	 	Except in the case of Municipal Bonds, none of the Pledged Investments is a graduated
payment Mortgage Loan or has a shared appreciation or other contingent interest feature, and
each Pledged Investment provides for periodic payments of all accrued interest on the
Mortgage Loan on at least a monthly basis.
	 
	 	 
	9.2 (t)

	 	Except in the case of Bridge Mortgage Loans, Borrower nor any of Borrower’s Affiliates
has any ownership interest, right to acquire any ownership interest or equivalent economic
interest in any Multifamily Property or Health Care Facility or Commercial Property securing
a Pledged Loan or the mortgagor under the Pledged Investment or any other obligor on the
Mortgage Note for such Pledged Investment.
	 
	 	 
	9.2 (u)

	 	The original assignments of Mortgage delivered to Lender for each Pledged Investment are
in recordable form and comply with all applicable laws and regulations governing the filing
and recording of such documents.
	 
	 	 
	9.2 (v)

	 	None of the mortgagors, guarantors or other obligors of any Pledged Investment is a
Person named in any Restriction List and to whom the provision of financial services is
prohibited or otherwise restricted by applicable law.

	9.3.  	Special Affirmative Covenants Concerning Warehousing Collateral

As long as the Warehousing Commitment is outstanding or there remain any Obligations to be
paid or performed under this Agreement or under any other Loan Document, Borrower must:

	 	 	 
	9.3 (a)

	 	Warrant and defend the right, title and interest of Lender in and to the Collateral
against
the claims and demands of all Persons.
	 
	 	 
	9.3 (b)

	 	Service or cause to be serviced all Pledged Investments in accordance with the standard
requirements of the issuers of Purchase Commitments covering them and all applicable HUD,
Fannie Mae and Freddie Mac requirements, including taking all actions necessary to enforce the
obligations of the obligors under such Mortgage Loans. Service or cause to be serviced all
Mortgage Loans backing Pledged Securities in accordance with applicable governmental
requirements and requirements of issuers of Purchase Commitments covering them. Hold all
escrow funds collected in respect of Pledged Investments and Mortgage Loans backing Pledged
Securities in trust, without commingling the same with non-custodial funds, and apply them for
the purposes for which those funds were collected.

Page 9-3

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	9.3 (c)

	 	Execute and deliver to Lender with respect to the Collateral those further
instruments of sale, pledge, assignment or transfer, and those powers of attorney, as
required by Lender, and do and perform all matters and things necessary or desirable to be
done or observed, for the purpose of effectively creating, maintaining and preserving the
security and benefits intended to be afforded Lender under this Agreement.
	 
	 	 
	9.3 (d)

	 	Notify Lender within 2 Business Days of any default under, or of the termination of, any
Purchase Commitment relating to any Pledged Investment, Eligible Mortgage Pool, or Pledged
Security.
	 
	 	 
	9.3 (e)

	 	Promptly comply in all respects with the terms and conditions of all Purchase
Commitments, and all extensions, renewals and modifications or substitutions of or to all
Purchase Commitments. Deliver or cause to be delivered to the Investor the Pledged
Investments and Pledged Securities to be sold under each Purchase Commitment not later than
the mandatory delivery date of the Pledged Investments or Pledged Securities under the
Purchase Commitment.
	 
	 	 
	9.3 (f)

	 	Compare the names of every mortgagor, guarantor and other obligor of every Mortgage
Loan, together with appropriate identifying information concerning those Persons obtained by
Borrower, against every Restriction List, and make certain that none of the mortgagors,
guarantors or other obligors of any Mortgage Loan is a Person named in any Restriction List
and to whom the provision of financial services is prohibited or otherwise restricted by
applicable law.
	 
	 	 
	9.3 (g)

	 	Review the Underwriting Guidelines periodically to confirm that those policies and
procedures are being complied with in all material respects and are adequate to meet
Borrower’s business objectives.

	9.4.  	Special Negative Covenants Concerning Warehousing Collateral

As long as the Warehousing Commitment is outstanding or there remain any Obligations to be
paid or performed, Borrower must not, either directly or indirectly, without the prior written
consent of Lender:

	 	 	 
	
9.4 (a)

	 	Amend or modify, or waive any of the terms and conditions of, or settle or compromise
any claim in respect of, any Pledged Investments or Pledged Securities.
	 
	 	 
	9.4 (b)

	 	Sell, transfer or assign, or grant any option with respect to, or pledge (except under
this Agreement and, with respect to each Pledged Investment or Pledged Security, the related
Purchase Commitment) any of the Collateral or any interest in any of the Collateral.
	 
	 	 
	9.4 (c)

	 	Make any compromise, adjustment or settlement in respect of any of the Collateral or
accept other than cash in payment or liquidation of the Collateral.
	 
	 	 
	9.4 (d)

	 	Make any material change in the Underwriting Guidelines and procedures without
providing Notice of that change to Lender pursuant to Section 7.3(d).

	9.5.  	Special Representation and Warranty Concerning Fannie Mae DUS
Program Reserve Requirements

Borrower represents and warrants to Lender, as of the date of this Agreement and as of the
date of each Warehousing Advance Request and the making of each Warehousing Advance, that

Page 9-4

Dated: 5/23/2003

Amended: 6/11/2004

 

Borrower has met the Fannie Mae DUS Program requirements for lender reserves for each Fannie Mae
DUS Mortgage Loan to be funded by a Warehousing Advance.

	9.6.  	Special Representations and Warranties Concerning Special Fannie
Mae Mortgage Loans

Borrower represents and warrants to Lender, as of the date of this Agreement and as of the
date of each Warehousing Advance Request and the making of each Warehousing Advance, that at the
time of any Warehousing Advance against a Special Fannie Mae Mortgage Loan:

	 	 	 
	9.6 (a)

	 	The related Master Credit Facility Agreement and the Mortgage Notes evidencing the
Special Fannie Mae Mortgage Loan are in full force and effect and constitute the legal, valid
and binding obligations of the parties to those agreements and instruments, enforceable
against those parties in accordance with their terms.
	 
	 	 
	9.6 (b)

	 	All of the Mortgages and pledges of Mortgage Notes securing the Special Fannie Mae
Mortgage Loan under the related Master Credit Facility Agreement are in full force and
effect, constitute the legal, valid and binding obligations of the parties to those
agreements and instruments, enforceable against such parties in accordance with their terms,
and, in the case of Mortgages, constitute valid, perfected first priority Liens on the
underlying property, subject only to Liens specified as exceptions in the original title
insurance policy related to each Mortgage, and in the case of pledges of Mortgage Notes,
constitute a valid, perfected first priority Lien on those Mortgage Notes, which is in turn
secured by valid, perfected, first priority Liens on the underlying property, subject only to
Liens specified in the original title insurance policy related to that Mortgage Loan.
	 
	 	 
	9.6 (c)

	 	The Special Fannie Mae Mortgage Loan is or will be fully advanced on the date of the
Warehousing Advance, and Borrower is in compliance with all terms of the related Master
Credit Facility Agreement and the related Special Fannie Mae Pool Purchase Contract.

	9.7.  	Special Representations and Warranties Concerning FHA
Mortgage Loans

Borrower represents and warrants to Lender, as of the date of this Agreement and as of the
date of each Warehousing Advance Request and the making of each Warehousing Advance, that:

	 	 	 
	9.7 (a)

	 	Each FHA Mortgage Loan meets all applicable governmental requirements for such
insurance. Borrower has complied and will continue to comply with all laws, rules and
regulations with respect to the FHA insurance of each FHA Mortgage Loan, and such
insurance is and will continue to be in full force and effect.
	 
	 	 
	9.7 (b)

	 	For FHA Mortgage Loans that will be used to back Ginnie Mae Mortgage-backed Securities,
Borrower has received from Ginnie Mae the Confirmation Notice for Request of Additional
Commitment Authority and the Confirmation Notice for Request of Pool Numbers, and there
remains available under those agreements a commitment on the part of Ginnie Mae sufficient to
permit the issuance of Ginnie Mae Mortgage-backed Securities in an amount at least equal to
the amount of the Pledged Investments designated by Borrower as the Mortgage Loans to be used
to back those Ginnie Mae Mortgage-backed Securities; each of those Confirmation Notices is in
full force and effect; each of those Pledged Investments has been assigned by Borrower to one
of those Pool Numbers and a portion of the available Ginnie Mae Commitment has been allocated
to this Agreement by Borrower, in an amount at least equal to those Pledged

Page 9-5

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	

	 	Investments; and each of those assignments and allocations has been reflected in
the books and records of Borrower.
	 
	 	 
	9.8.

	 	Special Representations and Warranties Concerning Bridge Mortgage Loans
	 
	 	 
	Borrower represents and warrants to Lender, as of the date of this Agreement and as of the
date of each Warehousing Advance Request and the making of each Warehousing Advance, that:
	 
	 	 
	9.8 (a)

	 	 Each Bridge Mortgage Loan is a Mortgage Loan as to which Borrower has conducted its
customary due diligence and review, including review of the financial condition of the
obligor under the related Mortgage Note and inspection of the improved real property subject
to the Mortgage, and such customary due diligence and review have not revealed facts that
would adversely affect collectibility of the Bridge Mortgage Loan.
	 
	 	 
	9.8 (b)

	 	 Each Bridge Mortgage Loan has been underwritten in accordance with standards that comply
generally with the requirements of major investors in permanent Mortgage Loans on Multifamily
Properties or Health Care Facilities, as applicable, in the secondary market or, if
applicable, with FHA standards for fully-insured permanent Mortgage Loans on Multifamily
Properties.
	 
	 	 
	9.8 (c)

	 	 In the case of a Bridge Mortgage Loan, a portion of which will be used to repair or
rehabilitate the improvements to the related real property, the portion of the proceeds,
net of any amounts disbursed at closing to pay for repairs or rehabilitation commenced
before closing, must be deposited at closing into escrow under an escrow agreement with an
escrow agent containing disbursement instructions satisfactory to Lender, in its sole
discretion, and containing terms satisfactory to Lender, in its sole discretion,
permitting Lender to effectuate the assignment of Borrower’s rights under the escrow
agreement to Lender.
	 
	 	 
	9.9.

	 	Special Covenants Concerning Special Fannie Mae Mortgage Loans
	 
	 	 
	As long as the Warehousing Commitment is outstanding or there remain any Obligations to be
paid or performed, Borrower must:
	 
	 	 
	9.9 (a)

	 	 Promptly provide Lender with copies of any amendment, supplement, restatement or
other modification of any Master Credit Facility Agreement, the promissory notes
evidencing the Special Fannie Mae Mortgage Loans made under that agreement or the related
Special Fannie Mae Pool Purchase Contract.
	 
	 	 
	9.9 (b)

	 	 Not amend, restate, renew or replace the Mortgage Notes evidencing a Special Fannie Mae
Mortgage Loan or the related Master Credit Facility Agreement or the related Special Fannie
Mae Pool Purchase Contract, at any time that a Warehousing Advance is outstanding against
that Special Fannie Mae Mortgage Loan.
	 
	 	 
	9.10.

	 	INTENTIONALLY OMITTED

End of Article 9

Page 9-6

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 
	10.

	 	DEFAULTS; REMEDIES
	 
	 	 
	10.1.

	 	Events of Default
	 
	 	 
	The occurrence of any
of the following is an event of default (“Event of Default”):
	 
	 	 
	10.1(a)

	 	Borrower fails to pay the principal of any Warehousing Advance when due, whether at
stated maturity, by acceleration, or otherwise; or fails to pay any installment of interest
on any Warehousing Advance within 9 days after the date of Lender’s invoice or, if
applicable, within 2 days after the date of Lender’s account analysis statement; or fails to
pay, within any applicable grace period, any other amount due under this Agreement or any
other Obligation of Borrower to Lender.
	 
	 	 
	10.1(b)

	 	Borrower or any of its Subsidiaries fails to pay, or defaults in the payment of any
principal or interest on, any other indebtedness or any contingent obligation within any
applicable grace period; breaches or defaults with respect to any other material term of any
other indebtedness or of any loan agreement, mortgage, indenture or other agreement relating
to that indebtedness, if the effect of that breach or default is to cause, or to permit the
holder or holders of that indebtedness (or a trustee on behalf of such holder or holders) to
cause, indebtedness of Borrower or its Subsidiaries in the aggregate amount of $10,000,000 or
more to become or be declared due before its stated maturity (upon the giving or receiving of
notice, lapse of time, both, or otherwise).
	 
	 	 
	10.1(c)

	 	Borrower fails to perform or comply with any term or condition applicable to it
contained in Sections 7.4, 7.14, 8.1, 8.2, 8.3, 8.4, 8.5, 8.6, 8.11 or 8.12; or the earlier
of (i) 60 days after Borrower fails to perform or comply with any term or condition
applicable to it contained in Section 8.7, 8.8, 8.9 or 8.10, or (ii) 10 Business Days after
Borrower provides Lender with financial statements disclosing such failure.
	 
	 	 
	10.1(d)

	 	Any representation or warranty made or deemed made by Borrower under this Agreement, in
any other Loan Document or in any written statement or certificate at any time given by
Borrower, other than the representations and warranties set forth in Article 9 with respect
to specific Pledged Investments, is inaccurate or incomplete in any material respect on the
date as of which it is made or deemed made.
	 
	 	 
	10.1(e)

	 	Borrower defaults in the performance of or compliance with any term contained in this
Agreement or any other Loan Document other than those referred to in Sections 10.1 (a),
10.1(c) or 10.1(d) and such default has not been remedied or waived within 30 days after the
earliest of (1) receipt by Borrower of Notice from Lender of that default, (2) receipt by
Lender of Notice from Borrower of that default or (3) the date Borrower should have notified
Lender of that default under Section 7.7 (c) or 7.7(d).
	 
	 	 
	10.1(f)

	 	An “event of default” (however defined) occurs under any agreement between Borrower and
Lender other than this Agreement and the other Loan Documents.
	 
	 	 
	10.1(g)

	 	A case (whether voluntary or involuntary) is filed by or against Borrower or any
Subsidiary of Borrower under any applicable bankruptcy, insolvency or other similar federal or
state law; or a court of competent jurisdiction appoints a receiver (interim or permanent),
liquidator, sequestrator, trustee, custodian or other officer having similar powers over
Borrower or any Subsidiary of Borrower, or over all or a substantial part of their respective
properties or assets; or Borrower or any Subsidiary of Borrower (1) consents to the
appointment of or possession by a receiver (interim or permanent),

Page 10-1

 

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Amended: 6/11/2004

 

	 	 	 	 	 	 	 
	 	 	liquidator, sequestrator, trustee, custodian or other officer
having similar powers over
Borrower or any Subsidiary of Borrower, or over all or a substantial part of their
respective properties or assets, (2) makes an assignment for the benefit of creditors,
or (3) fails, or admits in writing its inability, to pay its debts as those debts become
due.
	 
	 	 	 	 	 	 
	10.1(h)	 	Borrower fails to perform any contractual obligation to repurchase
 Mortgage Loans, if
such obligations in the aggregate exceed $1,000,000.
	 
	 	 	 	 	 	 
	10.1(i)	 	Any money judgment, writ or warrant of attachment or similar process
involving an amount
in excess of $1,000,000 is entered or filed against Borrower or any of its Subsidiaries or
any of their respective assets and remains undischarged, unvacated, unbonded or unstayed for
a period of 30 days or 5 days before the date of any proposed sale under that money judgment,
writ or warrant of attachment or similar process.
	 
	 	 	 	 	 	 
	10.1(j)	 	Any order, judgment or decree decreeing the dissolution of Borrower is
entered and
remains undischarged or unstayed for a period of 30 days.
	 
	 	 	 	 	 	 
	10.1(k)	 	Borrower affirmatively disavows the Obligations or contests the validity or
enforceability of any Loan Document.
	 
	 	 	 	 	 	 
	10.1(l)	 	Lender’s security interest on any portion of the
Collateral becomes unenforceable or
otherwise impaired, unless all Advances outstanding against the affected Collateral are
repaid within 10 Business Days after the earlier of (i) 60 days after Borrower fails to
perform or comply with any terms or conditions applicable to it contained in Sections 8.7,
8.8, 8.9 or 8.10, or (ii) 10 Business Days after Borrower provides Lender with financial
statements disclosing such failure.
	 
	 	 	 	 	 	 
	10.1(m)	 	A material adverse change occurs in Borrower’s financial
 condition, business,
properties, operations or prospects, or in Borrower’s ability to repay the Obligations.
	 
	 	 	 	 	 	 
	10.1(n)	 	Any Lien for any taxes, assessments or other governmental charges (1) is filed against
Borrower or any of its property, or is otherwise enforced against Borrower or any of its
property, or (2) obtains priority that is equal to or greater than the priority of
Lender’s security interest in any of the Collateral.
	 
	 	 	 	 	 	 
	10.2.	 	Remedies
	 
	 	 	 	 	 	 
	10.2 (a)	 	If an Event of Default described in Section 10.1(g) occurs with respect to Borrower, he
Warehousing Commitment will automatically terminate and the unpaid principal amount of
and accrued interest on the Warehousing Note and all other Obligations will automatically
become due and payable, without presentment, demand or other Notice or requirements of
any kind, all of which Borrower expressly waives.
	 
	 	 	 	 	 	 
	10.2 (b)	 	If any other Event of Default occurs, Lender may, by Notice to Borrower, terminate the
Warehousing Commitment and declare the Obligations to be immediately due and payable.
	 
	 	 	 	 	 	 
	10.2 (c)	 	If any Event of Default occurs, Lender may also take any of the following actions:
	 
	 	 	 	 	 	 
	

	 	 	(1	)	 	Foreclose upon or otherwise enforce its security interest in any Lien on the
Collateral to secure all payments and performance of the Obligations in any manner
permitted by law or provided for in the Loan Documents.

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Amended: 6/11/2004

 

	 	 	 	 	 	 	 
	

	 	 	(2	)	 	Notify all obligors under any of the Collateral that the Collateral has been
assigned to Lender (or to another Person designated by Lender) and that all
payments on that Collateral are to be made directly to Lender (or such other
Person); settle, compromise or release, in whole or in part, any amounts any
obligor or Investor owes on any of the Collateral on terms acceptable to Lender;
enforce payment and prosecute any action or proceeding involving any of the
Collateral; and where any Collateral is in default, foreclose on and enforce any
Liens securing that Collateral in any manner permitted by law and sell any
property acquired as a result of those enforcement actions.
	 
	 	 	 	 	 	 
	

	 	 	(3	)	 	Prepare and submit for filing Uniform Commercial Code amendment statements
evidencing the assignment to Lender or its designee of any Uniform Commercial
Code financing statement filed in connection with any item of Collateral.
	 
	 	 	 	 	 	 
	

	 	 	(4	)	 	Act, or contract with a third party to act, at Borrower’s expense, as
servicer or
subservicer of Collateral requiring servicing, and perform all obligations required
under any Collateral, including Servicing Contracts and Purchase Commitments.
	 
	 	 	 	 	 	 
	

	 	 	(5	)	 	Require Borrower to assemble and make available to Lender the Collateral and
all related books and records at a place designated by Lender.
	 
	 	 	 	 	 	 
	

	 	 	(6	)	 	Enter onto property where any Collateral or related books and records are
located and take possession of those items with or without judicial process; and
obtain access to Borrower’s data processing equipment, computer hardware and
software relating to the Collateral and use all of the foregoing and the
information
contained in the foregoing in any manner Lender deems necessary for the
purpose of effectuating its rights under this Agreement and any other Loan
Document.
	 
	 	 	 	 	 	 
	

	 	 	(7	)	 	Before the disposition of the Collateral, prepare it for disposition in any
manner
and to the extent Lender deems appropriate.
	 
	 	 	 	 	 	 
	

	 	 	(8	)	 	Exercise all rights and remedies of a secured creditor under the Uniform
Commercial Code of Minnesota or other applicable law, including selling or
otherwise disposing of all or any portion of the Collateral at one or more public
or
private sales, whether or not the Collateral is present at the place of sale, for
cash or credit or future delivery, on terms and conditions and in the manner as
Lender may determine, including sale under any applicable Purchase
Commitment. Borrower waives any right it may have to prior notice of the sale of
all or any portion of the Collateral to the extent allowed by applicable law. If
notice is required under applicable law, Lender will give Borrower not less than
10 days’ notice of any public sale or of the date after which any private sale may
be held. Borrower agrees that 10 days’ notice is reasonable notice. Lender may,
without notice or publication, adjourn any public or private sale one or more times
by announcement at the time and place fixed for the sale, and the sale may be
held at any time or place announced at the adjournment. In the case of a sale of
all or any portion of the Collateral on credit or for future delivery, the
Collateral
sold on those terms may be retained by Lender until the purchaser pays the
selling price or takes possession of the Collateral. Lender has no liability to
Borrower if a purchaser fails to pay for or take possession of Collateral sold on
those terms, and in the case of any such failure, Lender may sell the Collateral
again upon notice complying with this Section.

Page 10-3

 

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 	 	 	 	 
	

	 	 	(9	)	 	Instead of or in conjunction with exercising the power of sale authorized by
Section 10.2(c)(8), Lender may proceed by suit at law or in equity to collect all
amounts due on the Collateral, or to foreclose Lender’s Lien on and sell all or any
portion of the Collateral pursuant to a judgment or decree of a court of competent
jurisdiction.
	 
	 	 	 	 	 	 
	

	 	 	(10	)	 	Proceed against Borrower on the Warehousing Note.
	 
	 	 	 	 	 	 
	

	 	 	(11	)	 	Retain all excess proceeds from the sale or other disposition of the
Collateral,
and apply them to the payment of the Obligations under Section 10.3.
	 
	 	 	 	 	 	 
	10.2 (d)	 	Lender will incur no liability as a result of the commercially reasonable sale or other
disposition of all or any portion of the Collateral at any public or private sale or other
disposition. Borrower waives (to the extent permitted by law) any claims it may have against
Lender arising by reason of the fact that the price at which the Collateral may have been
sold at a private sale was less than the price that Lender might have obtained at a public
sale, or was less than the aggregate amount of the outstanding Warehousing Advances, accrued
and unpaid interest on those Warehousing Advances, and unpaid fees, even if Lender accepts
the first offer received and does not offer the Collateral to more than one offeree. Borrower
agrees that any sale of Collateral under the terms of a Purchase Commitment, or any other
disposition of Collateral arranged by Borrower, whether before or after the occurrence of an
Event of Default, will be deemed to have been made in a commercially reasonable manner.
	 
	 	 	 	 	 	 
	10.2 (e)	 	Borrower acknowledges that Mortgage Loans are collateral of a type that is the subject of
widely distributed standard price quotations and that Mortgage-backed Securities are
collateral of a type that is customarily sold on a recognized market. Borrower waives any
right it may have to prior notice of the sale of Pledged Securities, and agrees that Lender
may purchase Pledged Investments and Pledged Securities at a private sale of such Collateral.
	 
	 	 	 	 	 	 
	10.2 (f)	 	Borrower specifically waives and releases (to the extent permitted by law) any equity or
right of redemption, stay or appraisal that Borrower has or may have under any rule of law or
statute now existing or adopted after the date of this Agreement, and any right to require
Lender to (1) proceed against any Person, (2) proceed against or exhaust any of the
Collateral or pursue its rights and remedies against the Collateral in any particular order,
or (3) pursue any other remedy within its power. Lender is not required to take any action to
preserve any rights of Borrower against holders of mortgages having priority to the Lien of
any Mortgage or Security Agreement included in the Collateral or to preserve Borrower’s
rights against other prior parties.
	 
	 	 	 	 	 	 
	10.2 (g)	 	Lender may, but is not obligated to, advance any sums or do any act or thing necessary
to uphold or enforce the Lien and priority of, or the security intended to be afforded by,
any Mortgage or Security Agreement included in the Collateral, including payment of
delinquent taxes or assessments and insurance premiums. All advances, charges, costs and
expenses, including reasonable attorneys’ fees and disbursements, incurred or paid by Lender
in exercising any right, power or remedy conferred by this Agreement, or in the enforcement
of this Agreement, together with interest on those amounts at the Default Rate, from the time
paid by Lender until repaid by Borrower, are deemed to be principal outstanding under this
Agreement and the Warehousing Note.
	 
	 	 	 	 	 	 
	10.2 (h)	 	No failure or delay on the part of Lender to exercise any right, power or remedy
provided in this Agreement or under any other Loan Document, at law or in equity, will
operate as a waiver of that right, power or remedy. No single or partial exercise by Lender
of any

Page 10-4

Dated: 5/23/2003

Amended: 6/11/2004

 

	 	 	 	 	 	 	 
	

	 	 	right, power or remedy provided under this Agreement or any other Loan Document, at law
or in equity, precludes any other or further exercise of that right, power, or remedy by
Lender, or Lender’s exercise of any other right, power or remedy. Without limiting the
foregoing, Borrower waives all defenses based on the statute of limitations to the extent
permitted by law. The remedies provided in this Agreement and the other Loan Documents
are cumulative and are not exclusive of any remedies provided at law or in equity.
	 
	 	 	 	 	 	 	 	 
	10.2 (i)	 	Borrower grants Lender a non-exclusive license or other right to use, without charge,
Borrower’s computer programs, other programs, labels, patents, copyrights, rights of use of
any name, trade secrets, trade names, trademarks, service marks and advertising matter, or
any property of a similar nature, as it pertains to the Collateral, in advertising for sale
and selling any of the Collateral and Borrower’s rights under all licenses and all other
agreements related to the foregoing inure to Lender’s benefit until the Obligations are paid
in full.
	 
	 	 	 	 	 	 	 	 
	10.2 (j)	 	Borrower acknowledges that Borrower and Lender after the date of this Agreement may
enter into Acknowledgement Agreements with Fannie Mae, or another Investor, and that those
Acknowledgment Agreements may contain certain provisions concerning the enforcement by Lender
of its security interest in the Servicing Contracts subject to the Acknowledgement
Agreements. Borrower agrees that the disposition of its rights in any Servicing Contract
pursuant to the terms of an applicable Acknowledgment Agreement will be deemed commercially
reasonable within the meaning of Article 9 of the Uniform Commercial Code of Minnesota.
Borrower waives any clams it might otherwise have against Lender as a result of Lender’s
compliance with the terms of any Acknowledgment Agreement.

10.3. Application of Proceeds

Lender may apply the proceeds of any sale, disposition or other enforcement of Lender’s Lien
on all or any portion of the Collateral to the payment of the Obligations in the order Lender
determines in its sole discretion. From and after the indefeasible payment to Lender of all of the
Obligations, any remaining proceeds of the Collateral will be paid to Borrower, or to its
successors or assigns, or as a court of competent jurisdiction may direct. If the proceeds of any
sale, disposition or other enforcement of the Collateral are insufficient to cover the costs and
expenses of that sale, disposition or other enforcement and payment in full of all Obligations,
Borrower is liable for the deficiency.

10.4. Lender Appointed Attorney-in-Fact

Borrower appoints Lender its attorney-in-fact, with full power of substitution, for the
purpose of carrying out the provisions of this Agreement, the Warehousing Note and the other Loan
Documents and taking any action and executing any instruments that Lender deems necessary or
advisable to accomplish that purpose. Borrower’s appointment of Lender as attorney-in-fact is
irrevocable and coupled with an interest. Without limiting the generality of the foregoing, Lender
may give notice of its Lien on the Collateral to any Person, either in Borrower’s name or in its
own name, endorse all Pledged Investments or Pledged Securities payable to the order of Borrower,
change or cause to be changed the book-entry registration or name of subscriber or Investor on any
Pledged Security, prepare and submit for filing Uniform Commercial Code amendment statements with
respect to any Uniform Commercial Code financing statements filed in connection with any item of
Collateral or receive, endorse and collect all checks made payable to the order of Borrower
representing payment on account of the principal of or interest on, or the proceeds of sale of, any
of the Pledged Investments or Pledged Securities and give full discharge for those transactions.

Page 10-5

 

Dated: 5/23/2003

Amended: 6/11/2004

 

10.5. Right of Set-Off

If Borrower defaults in the payment of any Obligation or in the performance of any of its
duties under the Loan Documents, Lender may, without Notice to or demand on Borrower (which Notice
or demand Borrower expressly waives), set-off, appropriate or apply any property of Borrower held
at any time by Lender, or any indebtedness at any time owed by Lender to or for the account of
Borrower, against the Obligations, whether or not those Obligations have matured.

End of Article 10

Page 10-6

 

Dated: 5/23/2003

Amended: 6/11/2004

 

11. MISCELLANEOUS

11.1. Notices

Except where telephonic or facsimile notice is expressly authorized by this Agreement, all
communications required or permitted to be given or made under this
Agreement (“Notices”) must be
in writing and must be sent by manual delivery, overnight courier or United States mail (postage
prepaid), addressed as follows (or at such other address as may be designated by it in a Notice to
the other):

	 	 	 	 	 
	

	 	If to Borrower:
	 	Municipal Mortgage & Equity, LLC
	

	 	 	 	621 East Pratt Street, 3rd Floor
	

	 	 	 	Baltimore, MD 21202
	

	 	 	 	Attention: Christopher B. Levey, Vice President
	

	 	 	 	Facsimile: (410)727-5387
	 
	 	 	 	 
	

	 	With a copy to:
	 	Midland Mortgage Investment Corporation
	

	 	 	 	33 North Garden Avenue, Suite 1200
	

	 	 	 	Clearwater, FL 33755
	

	 	 	 	Attention: Terry Myers, Vice President
	

	 	 	 	Facsimile: (727) 443-6067
	 
	 	 	 	 
	

	 	If to Lender:
	 	Residential Funding Corporation
	

	 	 	 	7501 Wisconsin Avenue
	

	 	 	 	Bethesda, MD 20814
	

	 	 	 	Attention: Chuck Schweitzer, Director
	

	 	 	 	Facsimile: (301) 215-7212

All periods of Notice will be measured from the date of delivery if delivered manually or by
facsimile, from the first Business Day after the date of sending if sent by overnight courier or
from 4 days after the date of mailing if sent by United States mail, except that Notices to Lender
under Article 2 and Section 3.3(e) shall be deemed to have been given only when actually received
by Lender. Borrower authorizes Lender to accept Borrower’s Warehousing Advance Requests, shipping
requests, wire transfer instructions and security delivery instructions transmitted to Lender by
facsimile and those documents, when transmitted to Lender by facsimile have the same force and
effect as the originals.

11.2. Reimbursement of Expenses; Indemnity

Borrower must: (a) pay Lender a document production fee in connection with the preparation
and negotiation of this Agreement; (b) pay such additional documentation production fees as Lender
may require and all out-of-pocket costs and expenses of Lender, including reasonable fees, service
charges and disbursements of counsel to Lender (including allocated costs of internal counsel), in
connection with the amendment, enforcement and administration of this Agreement, the Warehousing
Note, and other Loan Documents, the making, repayment and payment of interest on the Warehousing
Advances and the payment of all other Obligations under Loan Documents; (c) indemnify, pay, and
hold harmless Lender and any other holder of the Warehousing Note from and against, all present and
future stamp, documentary and other similar taxes with respect to the foregoing matters and save
Lender and any other holder of the Warehousing Note harmless from and against all liabilities with
respect to or resulting from any delay or omission to pay such taxes; and (d) indemnify, pay and
hold harmless Lender and all of its Affiliates, officers, directors, employees or agents and any
subsequent holder of the

Page 11-1

 

Dated: 5/23/2003

Amended: 6/11/2004

 

Warehousing
Note (collectively called the “Indemnitees”) from and against all liabilities,
obligations, losses, damages, penalties, judgments, suits, costs, expenses and disbursements of
every kind or nature (including the reasonable fees and disbursements of counsel to the Indemnitees
(including allocated costs of internal counsel) in connection with any investigative,
administrative or judicial proceeding, whether or not the Indemnitees have been designated as
parties to such proceeding) that may be imposed upon, incurred by or asserted against such
Indemnitees in any manner relating to or arising out of this Agreement, the Warehousing Note, or
any other Loan Document or any of the transactions contemplated by this Agreement, the Warehousing
Note and the other Loan Documents, including against all liabilities, obligations, losses, damages,
penalties, judgments, suits, costs, expenses and disbursements of every kind or nature (including
the reasonable fees and disbursements of counsel to the Indemnitees (including allocated costs of
internal counsel) in connection with any investigative, administrative or judicial proceeding,
whether or not the Indemnitees have been designated as parties to such proceeding) arising from any
breach of Sections 9.2(x) or 9.3(f) or the making of any Mortgage Loan in which any mortgagor,
guarantor or other obligor is a Person named in any Restriction List and to whom the provision of
financial services is prohibited or otherwise restricted by
applicable law (“Indemnified Liabilities”), except that Borrower has no obligation under this Agreement with respect to
Indemnified Liabilities arising from the gross negligence or willful misconduct of any such
Indemnitees. To the extent that the undertaking to indemnify, pay and hold harmless as set forth in
the preceding sentence may be unenforceable because it is violative of any law or public policy,
Borrower must contribute the maximum portion that it is permitted to pay and satisfy under
applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by the
Indemnitees or any of them. The agreement of Borrower contained in this Article survives the
expiration or termination of this Agreement and the payment in full of the Warehousing Note.
Attorneys’ fees and disbursements incurred in enforcing, or on appeal from, a judgment under this
Agreement are recoverable separately from and in addition to any other amount included in such
judgment, and this clause is intended to be severable from the other provisions of this Agreement
and to survive and not be merged into such judgment.

11.3. Financial Information

All financial statements and reports furnished to Lender under this Agreement must be
prepared in accordance with GAAP, applied on a basis consistent with that applied in preparing the
financial statements as at the end of and for Borrower’s most recent fiscal year (except to the
extent otherwise required to conform to good accounting practice).

11.4. Terms Binding Upon Successors; Survival of Representations

The terms and provisions of this Agreement are binding upon and inure to the benefit of
Borrower, Lender and their respective successors and assigns. All of Borrower’s representations,
warranties, covenants and agreements survive the making of any Warehousing Advance, and except
where a longer period is set forth in this Agreement, remain effective for as long as the
Warehousing Commitment is outstanding or there remain any Obligations to be paid or performed.

11.5. Assignment and Participations

This Agreement and the Obligations of Borrower may not be assigned by Borrower. Lender may,
subject to the limitations set forth below, assign or transfer, in whole or in part, any Advances,
together with its corresponding rights under this Agreement and the other Loan Documents, and
further may sell participations in all or any part of any Advances or any other interest in the
Obligations or any of its obligations under this Agreement to another Person. The rights of any
such assignee or participant against Lender in respect of such assignment or participation are
those set forth in the agreement executed by that Lender in favor of the assignee or participant

Page 11-2

 

Dated: 5/23/2003

Amended: 6/11/2004

 

relating thereto, but such assignee or participant shall not become a party to this Agreement.
Lender shall remain solely responsible to Borrower for the performance of its obligations under
the Loan Documents. Lender shall retain all voting rights with respect to the Note, the Advances
hereunder and the Commitments. Borrower shall continue to deal solely and directly with Lender in
connection with Lender’s rights and obligations under the Loan Documents. Notwithstanding the
foregoing, nothing contained herein shall in any manner or to any extent affect the right of
Lender to assign its Notes and its right to receive and retain payments on its Notes provided
Lender remains primarily and directly liable pursuant to the terms and conditions of this
Agreement to keep, observe and perform all of its obligations under this Agreement. Lender may
furnish any information concerning Borrower in its possession from time to time to Affiliates and
to assignees and participants (including prospective assignees and participants) and Borrower
hereby consents to the provision of such information. Without limitation of the exclusive right of
Lender to collect and enforce such Obligations, Borrower agrees that each disposition will give
rise to a debtor-creditor relationship of Borrower to the assignee or participant, and Borrower
authorizes each assignee or participant, upon the occurrence of an Event of Default, to proceed
directly by right of setoff, banker’s lien, or otherwise, against any assets of Borrower which may
be in the hands of such assignee or participant.

11.6. Amendments

Except as otherwise provided in this Agreement, this Agreement may not be amended, modified
or supplemented unless the amendment, modification or supplement is set forth in writing signed by
both Borrower and Lender.

11.7. Governing Law

This Agreement and the other Loan Documents are governed by the laws of the State of
Minnesota, without reference to its principles of conflicts of laws.

11.8. Relationship of the Parties

This Agreement provides for the making and repayment of Warehousing Advances by Lender (in
its capacity as a lender) and Borrower (in its capacity as a borrower), for the payment of interest
on those Warehousing Advances and for the payment of certain fees by Borrower to Lender. The
relationship between Lender and Borrower is limited to that of creditor and secured party on the
part of Lender and of debtor on the part of Borrower. The provisions of this Agreement and the
other Loan Documents for compliance with financial covenants and the delivery of financial
statements and other operating reports are intended solely for the benefit of Lender to protect its
interest as a creditor and secured party. Nothing in this Agreement creates or may be construed as
permitting or obligating Lender to act as a financial or business advisor or consultant to
Borrower, as permitting or obligating Lender to control Borrower or to conduct Borrower’s
operations, as creating any fiduciary obligation on the part of Lender to Borrower, or as creating
any joint venture, agency, partnership or other relationship between Lender and Borrower other than
as explicitly and specifically stated in the Loan Documents. Borrower acknowledges that it has had
the opportunity to obtain the advice of experienced counsel of its own choice in connection with
the negotiation and execution of the Loan Documents and to obtain the advice of that counsel with
respect to all matters contained in the Loan Documents, including the waivers of jury trial and of
punitive, consequential, special or indirect damages contained in Sections 11.15 and 11.16,
respectively. Borrower further acknowledges that it is experienced with respect to financial and
credit matters and has made its own independent decisions to apply to Lender for credit and to
execute and deliver this Agreement.

Page 11-3

 

Dated: 5/23/2003

Amended: 6/11/2004

 

11.9. Severability

If any provision of this Agreement is declared to be illegal or unenforceable in any
respect, that provision is null and void and of no force and effect to the extent of the
illegality or unenforceability, and does not affect the validity or enforceability of any other
provision of the Agreement.

11.10. Consent to Credit References

Borrower consents to the disclosure of information regarding Borrower and its Subsidiaries
and their relationships with Lender to Persons making credit inquiries to Lender. This consent is
revocable by Borrower at any time upon Notice to Lender as provided in Section 11.1.

11.11. Counterparts

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

11.12. Headings/Captions

The captions or headings in this Agreement and the other Loan Documents are for convenience
only and in no way define, limit or describe the scope or intent of any provision of this
Agreement or any other Loan Document.

11.13. Entire Agreement

This Agreement, the Warehousing Note and the other Loan Documents represent the final
agreement among the parties with respect to their subject matter, and may not be contradicted by
evidence of prior or contemporaneous oral agreements among the parties. There are no oral
agreements among the parties with respect to the subject matter of this Agreement, the Warehousing
Note and the other Loan Documents.

11.14. Consent to Jurisdiction

AT THE OPTION OF LENDER, THIS AGREEMENT, THE WAREHOUSING NOTE AND THE OTHER LOAN DOCUMENTS
MAY BE ENFORCED IN ANY STATE OR FEDERAL COURT WITHIN THE STATE OF MINNESOTA. BORROWER CONSENTS TO
THE JURISDICTION AND VENUE OF THOSE COURTS, AND WAIVES ANY OBJECTION TO THE JURISDICTION OR VENUE
OF THOSE COURTS, INCLUDING THE OBJECTION THAT VENUE IN THOSE COURTS IS NOT CONVENIENT. ANY SUCH
SUIT, ACTION OR PROCEEDING MAY BE COMMENCED AND INSTITUTED BY SERVICE OF PROCESS UPON BORROWER BY
FIRST CLASS REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER AT ITS
ADDRESS LAST KNOWN TO LENDER. BORROWER’S CONSENT AND AGREEMENT UNDER THIS SECTION DOES NOT AFFECT
LENDER’S RIGHT TO ACCOMPLISH SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE
LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST BORROWER IN ANY OTHER JURISDICTION OR COURT. IN THE
EVENT BORROWER COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT
THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS, LENDER AT ITS OPTION MAY HAVE THE CASE TRANSFERRED TO A STATE OR FEDERAL COURT
WITHIN THE STATE OF MINNESOTA OR, IF A TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, MAY
HAVE BORROWER’S ACTION DISMISSED WITHOUT PREJUDICE.

Page 11-4

 

Dated: 5/23/2003

Amended: 6/11/2004

 

11.15. Waiver of Jury Trial

BORROWER AND LENDER EACH PROMISES AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE
TRIABLE OF RIGHT BY A JURY, AND FULLY WAIVES ANY RIGHT TO TRIAL BY JURY TO THE EXTENT THAT ANY
SUCH RIGHT NOW EXISTS OR ARISES AFTER THE DATE OF THIS AGREEMENT. THIS WAIVER OF THE RIGHT TO
TRIAL BY JURY IS SEPARATELY GIVEN, KNOWINGLY AND VOLUNTARILY, BY BORROWER AND LENDER, AND IS
INTENDED TO ENCOMPASS EACH INSTANCE AND EACH ISSUE FOR WHICH THE RIGHT TO TRIAL BY JURY WOULD
OTHERWISE APPLY. LENDER AND BORROWER ARE EACH AUTHORIZED AND DIRECTED TO SUBMIT THIS AGREEMENT TO
ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE PARTIES TO THIS AGREEMENT AS
CONCLUSIVE EVIDENCE OF THIS WAIVER OF THE RIGHT TO TRIAL BY JURY. FURTHER, BORROWER AND LENDER
EACH CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF THE OTHER PARTY, INCLUDING THE OTHER PARTY’S
COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, TO ANY OF ITS REPRESENTATIVES OR AGENTS THAT THE
OTHER PARTY WILL NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

11.16. Waiver of Punitive, Consequential, Special or Indirect Damages

BORROWER WAIVES ANY RIGHT IT MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT
DAMAGES FROM LENDER OR ANY OF LENDER’S AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS WITH
RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT
BY BORROWER AGAINST LENDER OR ANY OF LENDER’S AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS
WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT. THIS WAIVER OF THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES IS
KNOWINGLY AND VOLUNTARILY GIVEN BY BORROWER, AND IS INTENDED TO ENCOMPASS EACH INSTANCE AND EACH
ISSUE FOR WHICH THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES WOULD
OTHERWISE APPLY. LENDER IS AUTHORIZED AND DIRECTED TO SUBMIT THIS AGREEMENT TO ANY COURT HAVING
JURISDICTION OVER THE SUBJECT MATTER AND THE PARTIES TO THIS AGREEMENT AS CONCLUSIVE EVIDENCE OF
THIS WAIVER OF THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES.

11.17. Confidentiality

Lender shall use reasonable efforts to assure that information about Borrower and its
operations, affairs and financial condition, not generally disclosed to the public or to trade and
other creditors, which is furnished to Lender pursuant to the provisions hereof is used only for
the purposes of this Agreement and any other relationship between the Lender and Borrower and not
divulged to any Person other than the Lender, its Affiliates and their respective officers,
directors, employees and agents, except: (a) to their attorneys and accountants, (b) in connection
with the enforcement of the rights of Lender hereunder and under the other Loan Documents or
otherwise in connection with applicable litigation, (c) in connection with assignments and
participations and the solicitation of prospective assignees and participants referred to in
Section 11.5 (provided such assignees, participants and prospecting assignees and participants
agree to be bound by this Section 11.17) and (d) as may otherwise be required or requested by any
regulatory authority having jurisdiction over Lender or by any applicable law, rule, regulation or
judicial process, the opinion of Lender’s counsel concerning the making of such disclosure to be
binding on the parties hereto.

Page 11-5

 

Dated: 5/23/2003

Amended: 6/11/2004

 

End of
Article 11

Page 11-6

 

Dated: 5/23/2003

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     12. DEFINITIONS

     12.1. Defined Terms

Capitalized terms defined below or elsewhere in this Agreement have the following meanings
or, as applicable, the meanings given to those terms in Exhibits to
this Agreement:

“Accrual
Basis” has the meaning set forth in Section 3.1
(c).

“Advance Rate” means, with respect to any Eligible Investment, the Advance Rate set forth
in Exhibit H for that type of Eligible Investment.

“Affiliate” means, when used with reference to any Person, (a) each Person that, directly or
indirectly, controls, is controlled by or is under common control with, the Person referred to,
(b) each Person that beneficially owns or holds, directly or indirectly, 5% or more of any class
of voting Equity Interests of the Person referred to, (c) each Person, 5% or more of the voting
Equity Interests of which is beneficially owned or held, directly or indirectly, by the Person
referred to, and (d) each of such Person’s officers, directors, joint venturers and partners. For
these purposes, the term “control” (including the terms “controlled by” and “under common control
with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of the Person in question.

“Agency Security” means a Mortgage-backed Security issued or guaranteed by Fannie Mae,
Freddie Mac or Ginnie Mae.

“Agreement” means this Warehousing Credit and Security Agreement, either as originally
executed or as it may be amended, restated, renewed or replaced.

“Applicable
Advances” has the meaning set forth in Section 3.1
(c).

“Annual Debt Payments” means, as of the last day of any fiscal quarter of any Person, the
sum of (a) the aggregate amount of scheduled principal payments on all Debt during the next 4
fiscal quarters of that Person, (b) the amount of interest expense incurred on all Debt and
deducted in calculating net income for the 4 fiscal quarters of that Person ending on that date,
and (c) the amount of dividends paid as preferred stock that must be deducted as an expense in
calculating net income pursuant to FAS 150 for the 4 fiscal quarters
ending on that date.

“Appraisal” means a certificate of independent certified public accountants or independent
financial consultants of recognized standing selected by Borrower and satisfactory to Lender as to
the Appraisal Value of Borrower’s Servicing Portfolio or the Fannie Mae DUS Servicing Contracts or
Ginnie Mae Servicing Contracts acquired in any Servicing Acquisition. An Appraisal must evaluate
Borrower’s Servicing Portfolio or those Servicing Contracts based upon reasonably determined
categories of the Mortgage Loans and must give effect to any subservicing agreements to which any
Mortgage Loan is or will be subject. Each Appraisal must be in form, substance and detail
satisfactory to Lender.

“Appraisal Value” means, as of any date of determination, the fair market value of
Borrower’s right to service Mortgage Loans under the Servicing Contracts included in Borrower’s
Servicing Portfolio or under the Fannie Mae DUS Servicing Contracts or Ginnie Mae Servicing
Contracts acquired in any Servicing Acquisition. Appraisal Value must be calculated as a
percentage of the unpaid principal amount of each category of Mortgage Loan serviced under those
Servicing Contracts.

Page 12-1

 

Dated: 5/23/2003

Amended: 6/11/2004

 

“Appraised Property Value” means with respect to an interest in real property, the then
current fair market value of the real property and any improvements on it as of recent date
determined in accordance with Title XI of FIRREA by a qualified appraiser who is a member of the
American Institute of Real Estate Appraisers or other group of professional appraisers.

“Approved Custodian” means a pool custodian or other Person that Lender deems acceptable,
in its sole discretion, to hold Mortgage Loans for inclusion in a Mortgage Pool or to hold
Mortgage Loans as agent for an Investor that has issued a Purchase Commitment for those Mortgage
Loans.

“Audited Statement Date” means the date of Borrower’s most recent audited financial
statements (and, if applicable, Borrower’s Subsidiaries, on a consolidated basis) delivered to
Lender under this Agreement.

“Balance Funded Portion” has the meaning set forth in Section 3.1(c).

“Balance Funded Rate” means, for any Warehousing Advance, the Balance Funded Rate
specified for that Warehousing Advance in Exhibit H.

“Balance Funding Credit” has the meaning set forth in Section 3.1(c).

“Bank
One” means Bank One, National Association, or any successor bank.

“Bank One Prime Rate” means, as of any date of determination, the highest prime rate
quoted by Bank One and most recently published by Bloomberg L.P. If the prime rate for Bank One is
not quoted or published for any period, then during that period the term “Bank One Prime Rate”
means the highest prime rate published in the most recent edition of The Wall Street Journal in
its regular column entitled “Money Rates.”

“Borrower” has the meaning set forth in the first paragraph of this Agreement.

“Bridge Loan Approval Request” has the meaning set forth in Section
2.2.

“Bridge Mortgage Loan” has the meaning set
forth in Exhibit H.

“Builder Loan” has the meaning set forth in Exhibit H.

“Business Day” means any day other than Saturday, Sunday or any other day on which
national banking associations are closed for business.

“Buydown” has the meaning set forth in Section 3.6.

“CAD” means for any Person for any period of determination, the consolidated net income or loss of
a Person for such period, determined in accordance with GAAP, plus the sum of (a) aggregate
unrealized losses and amounts reflecting valuation impairments or allowances, in each case arising
out of marking to market the value of bonds and derivative instruments held by such Person and its
subsidiaries and in each case as described in, and valued in accordance with, FAS 140, (b)
extraordinary losses, (c) fees earned in connection with the origination of investments, which fees
are required to be capitalized for such period under GAAP, less the aggregate amount of such fees
previously so capitalized but accreted into income for such period; (d) interest expense on all
Debt and the amount of any dividends paid in respect of preferred stock that must be deducted as an
expense pursuant to FAS 150, and (e) amortization, including, without limitation, amortization of
goodwill and other intangible assets, less the sum of (i) deferred tax benefits (or
expenses) recognized under GAAP but not in determining CAD, (ii)

Page 12-2

 

Dated: 5/23/2003

Amended: 6/11/2004

 

non-cash revenue, including, without limitation, revenue described in FAS 140, (iii)
aggregate unrealized gains and other amounts reflecting increased valuations, in each case arising
out of marking to market the value of bonds and derivative instruments held by such Person and its
Subsidiaries and in each case as described in, and valued in accordance with FAS 140, (iv) any
special distributions made to the equity holders of such Person, other than preferred dividends
paid by MuniMae TE Bond Subsidiary, LLC, (v) extraordinary income or gains, and (vi) all other
non-recurring income, including, without limitation, (1) revenues or proceeds received upon the
sale or other disposition of assets that relate to discontinued operations of such Person and its
Subsidiaries, or (2) premiums received upon prepayment or repayment of bonds or other debentures
held by such Person and its Subsidiaries.

“Calendar Quarter” means the 3 month period beginning on each January 1, April 1, July 1
or October 1.

“Cash Collateral Account” means a demand deposit account maintained at the Funding Bank in
Lender’s name and designated for receipt of the proceeds of the sale or other disposition of
Collateral.

“Closing Date” has the meaning set forth in the Recitals to this
Agreement.

“Collateral” has the meaning set forth in Section 4.1.

“Collateral Documents” means, with respect to each Mortgage Loan, (a) the Mortgage Note,
the Mortgage and all other documents including, if applicable, any Security Agreement, executed in
connection with or relating to the Mortgage Loan; (b) as applicable, the original lender’s ALTA
Policy of Title Insurance or its equivalent, documents evidencing the FHA Commitment to Insure, or
private mortgage insurance, the appraisal, the environmental assessment, the engineering report,
certificates of casualty or hazard insurance, credit information on the maker of the Mortgage
Note; (c) any other document listed in Exhibit B; and (d) any other document that is
customarily desired for inspection or transfer incidental to the purchase of any Mortgage Note by
an Investor or that is customarily executed by the seller of a Mortgage Note to an Investor.

“Committed Purchase Price” means for an Eligible Investment (a) the dollar price as set
forth in the Purchase Commitment or, if the price is not expressed in dollars, the product of the
Mortgage Note Amount multiplied by the price (expressed as a percentage) as set forth in the
Purchase Commitment for the Eligible Investment, or (b) if the Eligible Investment is to be used
to back an Agency Security, an amount equal to the product of the Mortgage Note Amount multiplied
by the price (expressed as a percentage) as set forth in the Purchase Commitment for the Agency
Security.

“Compliance Certificate” means a certificate executed on behalf of Borrower by its manager
having principal financial accounting responsibilities, substantially in the form of Exhibit
E.

“Debt” means (a) all indebtedness or other obligations of a Person (and, if applicable,
that Person’s Subsidiaries, on a consolidated basis) that, in accordance with GAAP, would be
included in determining total liabilities as shown on the liabilities side of a balance sheet of
that Person on the date of determination, plus (b) all indebtedness or other obligations of that
Person (and, if applicable, that Person’s Subsidiaries, on a consolidated basis) for borrowed
money or for the deferred purchase price of property or services. For purposes of calculating a
Person’s Debt, Fannie Mae Loan Loss Reserves and Subordinated Debt not due within 1 year of that
date may be excluded from that Person’s indebtedness.

“Default” means the occurrence of any event or existence of any condition that, but for
the giving of Notice or the lapse of time, would constitute an Event of Default.

Page 12-3

Dated: 5/23/2003

Amended: 6/11/2004

 

“Default Rate” means, for any Warehousing Advance, the Interest Rate applicable to
that Warehousing Advance plus 4% per annum. If no Interest Rate is applicable to a Warehousing
Advance, “Default Rate” means, for that Warehousing Advance, the highest Interest Rate then
applicable to any outstanding Warehousing Advance plus 4% per annum.

“Depository Benefit” means the compensation received by Lender, directly or indirectly, as
a result of Borrower’s maintenance of Eligible Balances with a Designated Bank.

“Designated Bank” means any bank designated by Lender as a Designated Bank, but only for
as long as Lender has an agreement under which Lender receives Depository Benefits from that bank.

“Designated Bank
Charges” means any fees, interest or other charges that would otherwise
be payable to a Designated Bank in connection with Eligible Balances maintained at the Designated
Bank, including deposit insurance premiums, service charges and any other charges that may be
imposed by governmental authorities from time to time.

“Designated Loans” has the meaning set forth in Section
4.3.

“Earnings Allowance” has the meaning set forth in
Section 3.1(b).

“Earnings Credit” has the meaning set
forth in Section 3.1(b).

“Eligible Balances” means all funds of or maintained by Borrower (and, if applicable,
Borrower’s Subsidiaries) in demand deposit or time deposit accounts at a Designated Bank, minus
balances to support float, reserve requirements and any other reductions that may be imposed by
governmental authorities from time to time.

“Eligible
Investment” means a Mortgage Loan, Municipal Bond or Builder Loan that satisfies
the conditions and requirements set forth in Exhibit H.

“Eligible Mortgage
Pool” means a Mortgage Pool for which (a) an Approved Custodian has
issued its initial certification, (b) there exists a Purchase Commitment covering the Agency
Security to be issued on the basis of that certification and (c) the Agency Security will be
delivered to Lender.

“Equity Interests” means all shares, interests, participations or other equivalents,
however, designated, of or in a Person (other than a natural person), whether or not voting,
including common stock, membership interests, warrants, preferred stock, convertible debentures and
all agreements, instruments and documents convertible, in whole or in part, into any one or more of
the foregoing.

“Equity Investment” means any investment that a shareholder, partner or member of a
Mortgage Borrower is required to make in the Mortgage Borrower pursuant to any applicable
agreement providing for such investment.

“ERISA” means the Employee Retirement Income Security Act of 1974 and all rules and regulations
promulgated under that statute, as amended, and any successor statute, rules, and regulations.

“ERISA Affiliate” means any trade or business (whether or not incorporated) that is a
member of a group of which Borrower is a member and that is treated as a single employer under
Section 414 of the Internal Revenue Code.

“Event of Default” means any of the conditions or events set forth in Section 10.1.

Page 12-4

Dated: 5/23/2003

Amended: 6/11/2004

 

“Excess Buydown” has the meaning set forth in Section 3.4.

“Exchange Act” means the Securities Exchange Act of 1934 and all rules and regulations
promulgated under that statute, as amended, and any successor statute, rules, and regulations.

“Exhibit A”
means  Exhibit A, Exhibit A-MF/BR, Exhibit A-TL, Exhibit A-Bonds, as applicable
to the type of Eligible Investment against which an Advance is to be made.

“Exhibit B”
means Exhibit B-MF,  Exhibit B/FHA, Exhibit B/SFNMA, Exhibit B-Bonds, as
applicable to the type of Eligible Investment against which a Warehousing Advance is to be made.

“Excluded Lines of
Credit” means lines of credit extended to one or more Borrowers by
Affiliates and designated as “Excluded Lines of Credit” on
Exhibit F.

“Fair Market Value” means, at any time for an Eligible Investment as of any date of
determination, (a) the Committed Purchase Price if the Eligible Investment is a Mortgage Loan
covered by a Purchase Commitment from Fannie Mae or Freddie Mac or the Eligible Investment is a
Mortgage Loan to be exchanged for an Agency Security and that Agency Security is covered by a
Purchase Commitment from an Investor, (b) the least of the marked-to-market value, adjusted to
reflect changes in interest rates since the most recent report, the outstanding principal balance
or the Appraised Property Value of the related premises, if the Eligible Investment is a Municipal
Bond, or (c) otherwise, the market price for such Eligible Investment, determined by Lender based
on market data for similar Mortgage Loans, Municipal Bonds or Builder Loans and such other
criteria as Lender deems appropriate in its sole discretion.

“Fannie Mae” means Fannie Mae, a corporation created under the laws of the United States,
and any successor corporation or other entity.

“Fannie Mae
Agreements” has the meaning set forth in Section 4.3.

“Fannie Mae DUS
Mortgage Loan” has the meaning specified in
Exhibit H.

“Fannie Mae DUS
Program” means Fannie Mae’s program for the purchase of Mortgage Loans
originated under Fannie Mae’s Delegrated Underwriting and Servicing Guide.

“Fannie Mae Loan Loss
Reserves” means reserves established by Borrower to absorb estimated
future losses related to Fannie Mae DUS Mortgage Loans.

“Fannie Mae Servicing
Contracts” has the meaning set forth in Section 4.3.

“FAS” means a Financial Accounting Standard as published by the Financial Accounting Standards
Board.

“FHA” means the Federal Housing Administration and any successor agency or other entity.

“FHA Construction
Mortgage Loan” has the meaning set forth in Exhibit H.

“FHA Mortgage Loan” means an FHA-insured Mortgage Loan included in the Pledged
Investments.

“FHA Project Mortgage Loan” has the meaning set forth in Exhibit H.

“FICA” means the Federal Insurance Contributions Act and all rules and regulations promulgated
under that statute, as amended, and any successor statute, rules and regulations.

Page 12-5

Dated: 5/23/2003

Amended: 6/11/2004

 

“FIRREA” means the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and all
rules and regulations promulgated under that statute, as amended, and any successor statute,
rules, and regulations.

“First Mortgage” means a Mortgage that constitutes a first Lien on the real property and
improvements described in or covered by that Mortgage.

“First Mortgage Loan” means a Mortgage Loan secured by a First Mortgage.

“Freddie Mac” means Freddie Mac, a corporation created under the laws of the United
States, and any successor corporation or other entity.

“Freddie Mac Mortgage
Loan” has the meaning set forth in Exhibit H.

“Funding Bank” means Bank One or any other bank designated by Lender as a Funding Bank.

“Funding Bank
Agreement” means a letter agreement on the form prescribed by Lender between
the Funding Bank and Borrower authorizing Lender’s access to the Operating Account.

“GAAP” means generally accepted accounting principles set forth in opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public Accountants and in
statements and pronouncements of the Financial Accounting Standards Board, or in opinions,
statements or pronouncements of any other entity approved by a significant segment of the
accounting profession, which are applicable to the circumstances as of the date of determination.

“Ginnie Mae” means the Government National Mortgage Association, an agency of the United
States government, and any successor agency or other entity.

“Health Care
Facility” means a retirement service center, a board and care facility, an
intermediate care facility, a nursing home or a hospital.

“Hedging
Arrangements” means, with respect to any Person, any agreements or other
arrangements (including interest rate swap agreements, interest rate cap agreements and forward
sale agreements) entered into to protect that Person against changes in interest rates or the
market value of assets.

“HUD” means the Department of Housing and Urban Development, and any successor agency or other
entity.

“Indemnified
Liabilities” has the meaning set forth in
Section 11.2.

“Indemnitees” has the meaning set forth in
Section 11.2

“Index Rate” means, for any Warehousing Advance other than a Warehousing Advance for which
interest is calculated by reference to the greater of LIBOR or 2.25%, the Interest Rate specified
for that Warehousing Advance in Exhibit H. For Warehousing Advances for which interest is
calculated by reference to the greater of LIBOR or 2.25%, Index Rate means LIBOR plus the
applicable margin specified in Exhibit H.

“Interest Rate” means, for any Warehousing Advance, the floating rate of interest
specified for that Warehousing Advance in Exhibit H.

Page 12-6

Dated: 5/23/2003

Amended: 6/11/2004

 

“Interim Statement
Date” means the date of the most recent unaudited financial statements
of Borrower (and, if applicable, Borrower’s Subsidiaries, on a consolidated basis) delivered to
Lender under this Agreement.

“Internal Revenue
Code” means the Internal Revenue Code of 1986, Title 26 of the United
States Code, and all rules, regulations and interpretations issued under those statutory
provisions, as amended, and any subsequent or successor federal income tax law or laws, rules,
regulations and interpretations.

“Investment Company Act” means the Investment Company Act of 1940 and all rules and
regulations promulgated under that statute, as amended, and any successor statute, rules, and
regulations.

“Investor” means Fannie Mae, Freddie Mac or a financially responsible private institution that
Lender deems acceptable, in its sole discretion, to issue Purchase Commitments with respect to a
particular category of Eligible Investments.

“Lender” has the meaning set forth in the first paragraph of this Agreement.

“Leverage Ratio” means the ratio of a Person’s consolidated Debt to Tangible Net Worth.
For purposes of calculating a Person’s Leverage Ratio, Debt arising under Hedging Arrangements, to
the extent of assets arising under those Hedging Arrangements, may be excluded from that Person’s
Debt.

“LIBOR” means, for each week, the rate of interest per annum that is equal to the arithmetic mean
of the U.S. Dollar London Interbank Offered Rates for 1 month periods of certain U.S. banks as of
11:00 a.m. (London time) on the first Business Day of each week on which the London Interbank
market is open, as published by Bloomberg L.P. If those interest rates are not offered or
published for any period, then during that period LIBOR means the London Interbank Offered Rate
for 1 month periods as published in The Wall Street Journal in its regular column entitled “Money
Rates” on the first Business Day of each week on which the London Interbank market is open.

“Lien” means any lien, mortgage, deed of trust, pledge, security interest, charge or encumbrance
of any kind (including any conditional sale or other title retention agreement, any lease in the
nature of such an agreement and any agreement to give any security interest).

“Loan Documents” means this Agreement, the Warehousing Note, any agreement of Borrower
relating to Subordinated Debt, and each other document, instrument or agreement executed by
Borrower in connection with any of those documents, instruments and agreements, as originally
executed or as any of the same may be amended, restated, renewed or replaced.

“Loan Package Fee” has the meaning set forth in Section 3.5.

“Loan-to-Value Ratio” means, for any Mortgage Loan, the ratio of (a) the maximum amount
that may be borrowed under the Mortgage Loan (whether or not borrowed) at the time of origination,
plus the Mortgage Note Amounts of all other Mortgage Loans secured by senior or pari passu Liens
on the related Property, to (b) the Appraised Property Value of the related Property.

“Margin Stock” has the meaning assigned to that term in Regulation U of the Board of
Governors of the Federal Reserve System, as amended.

“Master Credit Facility Agreement” means any agreement between Borrower and one or more
mortgagors and (if applicable) other obligors described on Exhibit I (as amended in
accordance

Page 12-7

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with Section 5.3, under which Borrower makes Special Fannie Mae Mortgage Loans to those
mortgagors and other obligors secured by Mortgages on Multifamily Properties, as long as Fannie
Mae has agreed, on terms satisfactory to Lender, to issue an Agency Security in exchange for a
100% participation in each Special Fannie Mae Mortgage Loan.

“Miscellaneous
Fees and Charges” means the miscellaneous fees set forth on Lender’s fee
schedule attached as Exhibit I and all miscellaneous disbursements, charges and expenses
incurred by or on behalf of Lender for the handling and administration of Warehousing Advances and
Collateral, including costs for Uniform Commercial Code, tax lien and judgment searches conducted
by Lender, filing fees, charges for wire transfers and check processing charges, charges for
security delivery fees, charges for overnight delivery of Collateral to Investors, recording fees,
Funding Bank service fees and overdraft charges and Designated Bank Charges. Upon not less than 3
Business Days’ prior Notice to Borrower, Lender may modify Exhibit I and the fees set
forth in it to conform to current Lender practices and, as so modified, the revised Exhibit
I will become part of this Agreement.

“Modified Net Worth” means MMA’s Tangible Net Worth less the amount of MMA’s net
investment in MuniMae TE Bond Subsidiary LLC.

“Mortgage” means a mortgage or deed of trust on real property that, except in the case of an FHA
Construction Mortgage Loan, is improved and substantially completed.

“Mortgage-backed
Securities” means securities that are secured or otherwise backed by
Mortgage Loans.

“Mortgage Borrower” means a borrower of a Mortgage Loan.

“Mortgage Loan” means any loan evidenced by a Mortgage Note and secured by a Mortgage and,
if applicable, a Security Agreement.

“Mortgage Note” means a promissory note secured by one or more Mortgages and, if
applicable, one or more Security Agreements.

“Mortgage Note
Amount” means, as of any date of determination, the then outstanding and
unpaid principal amount of a Mortgage Note (whether or not an additional amount is available to be
drawn under that Mortgage Note).

“Mortgage Pool” means a pool of one or more Pledged Investments on the basis of which a
Mortgage-backed Security is to be issued.

“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001 (a)(3) of
ERISA, to which either Borrower or any ERISA Affiliate of Borrower has any obligation with respect
to its employees.

“Multifamily
Property” means real property that contains or that will contain more than 4
dwelling units.

“Municipal
Bonds” has the meaning set forth in Exhibit H.

“Non-Agency Mortgage
Loan” has the meaning set forth in Exhibit H.

“Non-Usage Fee” has the meaning set forth in Section 3.4.

“Notices” has the meaning set forth in Section 11.1.

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Amended: 6/11/2004

 

“Obligations” means all indebtedness, obligations and liabilities of Borrower to Lender
and Lender’s Subsidiaries (whether now existing or arising after the date of this Agreement,
voluntary or involuntary, joint or several, direct or indirect, absolute or contingent, liquidated
or unliquidated, or decreased or extinguished and later increased and however created or
incurred), including Borrower’s obligations and liabilities to Lender under the Loan Documents and
disbursements made by Lender for Borrower’s account.

“Operating Account” means a demand deposit account maintained at the Funding Bank in
Borrower’s name and designated for funding that portion of each Eligible Investment not funded by
a Warehousing Advance made against that Eligible Investment and for returning any excess payment
from an Investor for a Pledged Investment or Pledged Security.

“Other Fannie Mae Mortgage Loan” has the meaning set forth in
Exhibit H.

“Overdraft Advance” has the meaning set forth in Section
3.7.

 “Parent” means Midland Financial Holdings, Inc..

“Participant”
has the meaning set forth in Section 11.5.

“Person” means and includes natural persons, corporations, limited liability companies, limited
liability partnerships, limited partnerships, general partnerships, joint stock companies, joint
ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or
other organizations, whether or not legal entities, and governments and agencies and political
subdivisions of those governments.

“Plan” means each employee benefit plan (whether in existence on the date of this Agreement or
established after that date), as that term is defined in Section 3 of ERISA, maintained for the
benefit of directors, officers or employees of Borrower or any ERISA Affiliate.

“Pledged Assets” means, collectively, Pledged Investments, Pledged Securities, Pledged
Servicing Acquisition/Disposition Agreements, Pledged Servicing Contracts and Pledged Servicing
Payments.

“Pledged Hedging Accounts” has the meaning set forth in Section 4.1 (j).

“Pledged Hedging Arrangements” has the meaning set forth in Section 4.1
(j).

“Pledged Investments” has the meaning set forth in Section 4.1 (b).

“Pledged Securities” has the meaning set forth in Section 4.1 (c).

“Pledged Servicing Acquisition/Disposition Agreements” has the meaning set forth in
Section 4.1 (g).

“Pledged Servicing Contracts” has the meaning set forth in Section
4.1(e).

“Pledged Servicing Payments” has the meaning set forth in
Section 4.1(f).

“Prohibited Transaction” has the meanings set forth for such term in Section 4975 of the
Internal Revenue Code and Section 406 of ERISA.

“Property” means a Multifamily Property or Health Care Facility securing a Mortgage Loan.

Page 12-9

Dated: 5/23/2003

Amended: 6/11/2004

 

“Purchase Commitment” means a written commitment, in form and substance satisfactory to
Lender, issued in favor of Borrower by an Investor under which that Investor commits to purchase
Mortgage Loans or Mortgage-backed Securities.

“Rating Agency” means any nationally recognized statistical rating organization that in
the ordinary course of its business rates Mortgage-backed Securities.

“Refinancing Loan” means a permanent Mortgage Loan or other financing originated by
Borrower to refinance one or more Pledged Investments.

“Release Amount” has the meaning set forth in Section
4.3(f).

“Remainder” has the meaning set forth in
Section 3.1(c).

“Restriction List” and “Restriction Lists” means each and every list of Persons to
whom the Government of the United States prohibits or otherwise restricts the provision of
financial services. For the purposes of this Agreement, Restriction Lists include the list of
Specifically Designated Nationals and Blocked Persons established pursuant to Executive Order 13224
(September 23, 2001) and maintained by the Office of Foreign Assets Control, U.S. Department of the
Treasury, current as of the day the Restriction List is used for purposes of comparison in
accordance with the requirements of this Agreement.

“Second Mortgage” means a Mortgage that constitutes a second Lien on the real property and
improvements described in or covered by that Mortgage.

“Second Mortgage Loan” means a Mortgage Loan secured by a Second Mortgage.

“Security Agreement” means a security agreement or other agreement that creates a Lien on
personal property, including furniture, fixtures and equipment, to secure repayment of a Mortgage
Loan.

“Servicing Acquisition” means a transaction in which Borrower acquires Fannie Mae DUS
Servicing Contracts or Ginnie Mae Servicing Contracts in a bulk purchase.

“Servicing Acquisition Documents” means, with respect to any Servicing Acquisition, the
Servicing Purchase Agreement and all agreements, documents and instruments executed and delivered
in connection with the Servicing Acquisition.

“Servicing Collateral” means the Collateral described in Section 4.1 (e), and all
Collateral described in Sections 4.1(f) and 4.1(g) that constitutes proceeds of or is related to
that Collateral.

“Servicing Contract” means, with respect to any Person, the arrangement, whether or not in
writing, under which that Person has the right to service Mortgage Loans.

“Servicing Portfolio” means, as to any Person, the unpaid principal balance of Mortgage
Loans serviced by that Person under Servicing Contracts, minus the principal balance of all
Mortgage Loans that are serviced by that Person for others under subservicing arrangements.

“Servicing Portfolio Report” has the meaning set forth in Section 7.3(a).

“Servicing Purchase Agreement” means the principal agreement or agreements pursuant to
which Borrower makes any Servicing Acquisition.

Page 12-10

Dated: 5/23/2003

Amended: 6/11/2004

 

“Shipped Period” means the maximum number of days specified in Exhibit H
during which a Warehousing Advance may remain outstanding against a Pledged Investment that has
been sent to (a) an Investor or a custodian for an Investor for examination and purchase under a
Purchase Commitment, (b) an Approved Custodian for examination and inclusion in an Eligible
Mortgage Pool or (c) a pool custodian for examination and inclusion in a Mortgage Pool.

“Special Fannie Mae Bailee Agreement” means an agreement among Borrower, Lender and Fannie
Mae, on the form prescribed by Lender, with respect to Lender’s security interest in Borrower’s
interest in one or more Mortgage Notes evidencing a Special Fannie Mae Mortgage Loan.

“Special Fannie Mae
Mortgage Loan” has the meaning set forth in Exhibit H.

“Special Fannie Mae Pool Purchase Contract” means an agreement, on terms satisfactory to
Lender, under which Fannie Mae agrees to purchase a 100% participation in Special Fannie Mae
Mortgage Loans in exchange for Agency Securities.

“Statement Date” means the Audited Statement Date or the Interim Statement Date, as
applicable.

“Sublimit” means the aggregate amount of Warehousing Advances (expressed as a dollar amount or as
a percentage of the Warehousing Commitment Amount) that is permitted to be outstanding at any one
time against a specific type of Eligible Investment.

“Subordinated Debt” means (a) all indebtedness of Borrower for borrowed money that is
effectively subordinated in right of payment to all present and future Obligations either (1)
under a Subordination of Debt Agreement on the form prescribed by Lender or (2) otherwise on terms
acceptable to Lender, and (b) solely for purposes of Section 8.4, all indebtedness of Borrower
that is required to be subordinated by Sections 5.1 (b) and 7.11.

“Subordinate Mortgage” means a Mortgage that constitutes a second, third or fourth Lien on
the real property and improvements described in or covered by that Mortgage.

“Subordinate Mortgage Loan” means a Mortgage Loan secured by a Subordinate Mortgage and
(a) in the case of Fannie Mae DUS Mortgage Loans or Other Fannie Mae Mortgage Loans, for which all
prior Mortgage Loans on that Property have been sold to, or are subject to a Purchase Commitment
issued by, Fannie Mae and (b) in the case of Freddie Mac Mortgage Loans, for which all prior
Mortgage Loans on that Property have been sold to, or are subject to a Purchase Commitment issued
by, Freddie Mac.

“Subsidiary” means any corporation, partnership, association or other business entity in which
more than 50% of the shares of stock or other ownership interests having voting power for the
election of directors, managers, trustees or other Persons performing similar functions is at the
time owned or controlled by any Person either directly or indirectly through one or more
Subsidiaries of that Person.

“Takeout Commitment” means, with respect to any Pledged Investment, (a) a Purchase
Commitment, (b) a commitment from a lender, and in form and substance, satisfactory to Lender, to
make a Refinancing Loan, or (c) a forward commitment for the purchase or permanent financing from
an Investor or investment bank, and in form and substance, satisfactory to Lender.

“Tangible Net Worth” means the excess of a Person’s (and, if applicable, that Person’s
Subsidiaries, on a consolidated basis) total assets over total liabilities as of the date of
determination, each determined in accordance with GAAP applied in a manner consistent with

Page 12-11

Dated: 5/23/2003

Amended: 6/11/2004

 

the financial statements referred to in Section 5.1 (a)(6), plus Fannie Mae Loan Loss Reserves
and that portion of Subordinated Debt not due within 1 year of that date. For purposes of
calculating a Person’s Tangible Net Worth, advances or loans to managers, members, employees or
Affiliates, investments in Affiliates other than consolidated Subsidiaries, assets pledged to
secure any liabilities not included in the Debt of that Person, intangible assets, those other
assets that would be deemed by HUD to be non-acceptable in calculating adjusted net worth in
accordance with its requirements in effect as of that date, as those requirements appear in the
“Consolidated Audit Guide for Audits of HUD Programs,” and other assets Lender deems unacceptable,
in its sole discretion, must be excluded from that Person’s total assets.

“Third Party Originated Asset” means a Mortgage Loan, Municipal Bond or Builder Loan
originated and funded by a third party (other than with funds provided by Borrower at closing to
purchase the Mortgage Loan, Municipal Bond or Builder Loan) and subsequently purchased by
Borrower.

“Trust Receipt” means a trust receipt in a form approved by and under which Lender may
deliver any document relating to the Collateral to Borrower for correction or completion.

“Underwriting
Fee” has the meaning set forth in Exhibit H.

“Underwriting Guidelines” means Borrower’s policies and procedures for underwriting
Mortgage Loans and Municipal Bonds secured by Multifamily Properties, Health Care Facilities,
Commercial Properties, Mobile Home Parks or Seniors Housing, and Builder Loans, as in effect on
the date of this Agreement, a copy of which has been provided to and approved by Lender, as the
same may be modified from time to time in accordance with this Agreement.

“Unused Portion” has the meaning set forth in Section
3.4.

“Used Portion” has the meaning set forth in
Section 3.4.

“Warehouse Period” means, for any Eligible Loan, the maximum number of days a Warehousing
Advance against that type of Eligible Loan may remain outstanding as set forth in Exhibit H.

“Warehousing Advance” means a disbursement by Lender under Section
1.1.

“Warehousing Advance Request” has the meaning set forth in
Section 2.1.

“Warehousing Collateral Value” means, as of any date of determination, (a) with respect to
any Eligible Investment, the lesser of (1) the amount of any Warehousing Advance made, or that
could be made, against such Eligible Investment under Exhibit H or (2) an amount equal to
the Advance Rate for the applicable type of Eligible Investment multiplied by the Fair Market
Value of such Eligible Investment; (b) if Eligible Investments have been exchanged for Agency
Securities, the lesser of (1) the amount of any Warehousing Advances outstanding against the
Eligible Investments backing the Agency Securities or (2) an amount equal to the Advance Rates for
the applicable types of Eligible Investments backing the Agency Securities multiplied by the Fair
Market Value of the Agency Securities; and (c) with respect to cash, the amount of the cash.

“Warehousing Commitment” means the obligation of Lender to make Warehousing Advances to
Borrower under Section 1.1.

“Warehousing Commitment Amount” means $200,000,000.

“Warehousing Commitment Termination Date” has the meaning set forth in Section 1.2.

Page 12-12

Dated: 5/23/2003

Amended: 6/11/2004

 

“Warehousing Maturity Date” means the earlier of (a) the date 6 months after the
Warehousing Commitment Termination Date, or (b) the date the Warehousing Advances become due and
payable under Section 10.2.

“Warehousing Note” has the meaning set forth in Section 1.3.

“Wire Disbursement Account” means a demand deposit account maintained at the Funding Bank
in Lender’s name for clearing wire transfers requested by Borrower to fund Warehousing Advances.

	 	 	 
	12.2.

	 	Other Definitional Provisions; Terms of Construction
	 
	 	 
	12.2 (a)

	 	Accounting terms not otherwise defined in this Agreement have the meanings given to
those terms under GAAP.
	 
	 	 
	12.2 (b)

	 	Defined terms may be used in the singular or the plural, as the context requires.
	 
	 	 
	12.2 (c)

	 	All references to time of day mean the then applicable time in Chicago, Illinois, unless
otherwise expressly provided.
	 
	 	 
	12.2 (d)

	 	References to Sections, Exhibits, Schedules and like references are to Sections, Exhibits,
Schedules and the like of this Agreement unless otherwise expressly provided.
	 
	 	 
	12.2 (e)

	 	The words “include,” “includes” and “including” are deemed to be followed by the phrase
“without limitation.”
	 
	 	 
	12.2 (f)

	 	Unless the context in which it is used otherwise clearly requires, the word “or” has the
inclusive meaning represented by the phrase “and/or.”
	 
	 	 
	12.2 (g)

	 	All incorporations by reference of provisions from other agreements are incorporated as
if such provisions were fully set forth into this Agreement, and include all necessary
definitions and related provisions from those other agreements. All provisions from other
agreements incorporated into this Agreement by reference survive any termination of those
other agreements until the Obligations of Borrower under this Agreement and the Warehousing
Note are irrevocably paid in full and the Warehousing Commitment is terminated.
	 
	 	 
	12.2 (h)

	 	All references to the Uniform Commercial Code shall be deemed to be references
to the Uniform Commercial Code in effect on the date of this Agreement in the
applicable jurisdiction.
	 
	 	 
	12.2 (i)

	 	Unless the context in which it is used otherwise clearly requires, all references to
days, weeks and months mean calendar days, weeks and months.

End of Article 12

Page 12-13

Dated: 5/23/2003

Amended: 6/11/2004

 

FOURTH AMENDMENT TO WAREHOUSING CREDIT AND

SECURITY AGREEMENT

FOURTH AMENDMENT TO WAREHOUSING CREDIT AND SECURITY AGREEMENT (this “Amendment”) dated as of
June 11, 2004, between MUNICIPAL MORTGAGE & EQUITY, LLC, a Delaware limited liability company
(“MMA”). MUNIMAE TEI HOLDINGS, LLC, a Maryland limited liability company (“MTEI”). MIDLAND
MORTGAGE INVESTMENT CORPORATION, a Florida corporation (“Midland Mortgage”), MMA CONSTRUCTION
FINANCE, LLC fka MUNIMAE MIDLAND CONSTRUCTION FINANCE, LLC, a Maryland limited liability company
(“MMA Construction”), and MMA CAPITAL CORPORATION, a Michigan corporation f/k/a MIDLAND CAPITAL
CORPORATION (“MMA Capital”) (MMA, MTEI, Midland Mortgage, MMA Construction and MMA Capital,
collectively, “Borrower”) and RESIDENTIAL FUNDING CORPORATION, a Delaware corporation (“Lender”).

	A.  	Borrower and Lender have entered into a revolving mortgage warehousing facility with a
present
Warehousing Commitment Amount of $190,000,000 which is evidenced by a Warehousing
Promissory Note and a Term Loan Promissory Note, each dated May 23, 2003 (collectively, the
“Notes”), and by a Warehousing Credit, Term Loan and Security Agreement dated as of May 23,
2003 (as the same may have been and may be amended or supplemented, the “Agreement”).
	 
	B.  	Borrower and Lender have agreed to increase the Warehousing Commitment Amount, terminate
the Term Loan Commitment, and amend certain other terms of the Agreement, subject to the
terms and conditions of this Amendment.

NOW, THEREFORE, the parties to this Amendment agree as follows:

	1.  	Subject to Borrower’s satisfaction of the conditions set forth in Section 18, the effective
date of
this Amendment is June 1, 2004 (“Effective Date”).
	 
	2.  	Unless otherwise defined in this Amendment, all capitalized terms have the meanings given to
those terms in the Agreement. Defined terms may be used in the singular or the plural, as
the
context requires. The words “include,” “includes” and “including” are deemed to be followed
by
the phrase “without limitation.” Unless the context in which it is used otherwise clearly
requires,
the word “or” has the inclusive meaning represented by the phrase “and/or.” References to
Sections and Exhibits are to Sections and Exhibits of this Amendment unless otherwise
expressly
provided.
	 
	3.  	The Cover Page, Table of Contents, Exhibit List and Preamble are amended and restated in
their
entirety as set forth in the Cover Page, Table of Contents, Exhibit List and Preamble
attached to
this Amendment. All references in the Agreement and other Loan Documents to the Cover Page,
the Table of Contents, Exhibit List and Preamble are deemed to refer to the new Cover Page,
Table of Contents, Exhibit List and Preamble.
	 
	4.  	Article 1 of the Agreement is amended and restated in its entirety as set forth in
Article 1 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
1
(including each and every Section in Article 1) are deemed to refer to the new
Article 1.
	 
	5.  	Article 2 of the Agreement is amended and restated in its entirety as set forth in
Article 2 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
2
(including each and every Section in Article 2) are deemed to refer to the new
Article 2.

Page 1

 

	6.  	Article 3 of the Agreement is amended and restated in its entirety as set forth
in Article 3 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
3
(including each and every Section in Article 3) are deemed to refer to the new
Article 3.
	 
	7.  	Article 4 of the Agreement is amended and restated in its entirety as set forth in
Article 4 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
4
(including each and every Section in Article 4) are deemed to refer to the new
Article 4.
	 
	8.  	Article 5 of the Agreement is amended and restated in its entirety as set forth in
Article 5 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
5
(including each and every Section in Article 5) are deemed to refer to the new
Article 5.
	 
	9.  	Article 6 of the Agreement is amended and restated in its entirety as set forth in
Article 6 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
6
(including each and every Section in Article 6) are deemed to refer to the new
Article 6.
	 
	10.  	Article 7 of the Agreement is amended and restated in its entirety as set forth in
Article 7 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
7
(including each and every Section in Article 7) are deemed to refer to the new
Article 7.
	 
	11.  	Article 8 of the Agreement is amended and restated in its entirety as set forth in
Article 8 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
8
(including each and every Section in Article 8) are deemed to refer to the new
Article 8.
	 
	12.  	Article 9 of the Agreement is amended and restated in its entirety as set forth in
Article 9 attached
to this Amendment. All references in the Agreement and other Loan Documents to Article
9
(including each and every Section in Article 9) are deemed to refer to the new
Article 9.
	 
	13.  	Article 10 of the Agreement is amended and restated in its entirety as set forth in
Article 10
attached to this Amendment. All references in the Agreement and other Loan Documents to
Article 10 (including each and every Section in Article 10) are deemed to
refer to the new Article 10.
	 
	14.  	Article 11 of the Agreement is amended and restated in its entirety as set forth in
Article 11
attached to this Amendment. All references in the Agreement and other Loan Documents to
Article 11 (including each and every Section in Article 11) are deemed to
refer to the new Article 11.
	 
	15.  	Article 12 of the Agreement is amended and restated in its entirety as set forth in
Article 12
attached to this Amendment. All references in the Agreement and other Loan Documents to
Article 12 (including each and every Section in Article 12) are deemed to
refer to the new Article 12.
	 
	16.  	Exhibit H to the Agreement is amended and restated in its entirety as set forth in
Exhibit H to this
Amendment. All references in the Agreement and the other Loan Documents to Exhibit
H are
deemed to refer to the new Exhibit H.
	 
	17.  	As of June 1, 2004, Borrower acknowledges and agrees that the Term Loan Commitment is
terminated and no Term Loan Advances will be made by Lender from and after that date.
	 
	18.  	Borrower must deliver to Lender (a) two executed copies of this Amendment, and (b) a document
production fee.

Page 2

 

	19.  	Borrower represents, warrants and agrees that (a) there exists no Default or Event
of Default
under the Loan Documents, (b) the Loan Documents continue to be the legal, valid and binding
agreements and obligations of Borrower, enforceable in accordance with their terms, as
modified
by this Amendment, (c) Lender is not in default under any of the Loan Documents and Borrower
has no offset or defense to its performance or obligations under any of the Loan Documents,
(d)
except for changes permitted by the terms of the Agreement, Borrower’s representations and
warranties contained in the Loan Documents are true, accurate and complete in all respects
as of
the Effective Date and (e) there has been no material adverse change in Borrower’s financial
condition from the date of the Agreement to the Effective Date.
	 
	20.  	Except as expressly modified, the Agreement is unchanged and remains in full force and
effect,
and Borrower ratifies and reaffirms all of its obligations under the Agreement and the other
Loan
Documents.
	 
	21.  	This Amendment may be executed in any number of counterparts, each of which will be deemed
an original, but all of which shall together constitute but one and the same instrument.

IN WITNESS WHEREOF, Borrower and Lender have caused this Amendment to be duly executed on their
behalf by their duly authorized officers as of the day and year above written.

	 	 	 	 	 
	 	 	MUNICIPAL MORTGAGE & EQUITY, LLC, 
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	

	 	By:	 
	/s/ Gary A. Mentesana
	

	 	 	 	 
	

	 	Its :	 
	Executive Vice President
	 
	 	 	 	 
	 	 	MUNIMAE TEI HOLDINGS, LLC, 
	 	 	a Maryland limited liability company
	 
	 	 	 	 
	

	 	By:
	 	Municipal Mortgage & Equity, LLC, 
	

	 	 	 	a Delaware limited liability company
	

	 	Its:
	 	Sole Member
	 
	 	 	 	 
	

	 	 	By:
	 /s/ Gary A. Mentesana
	

	 	 	 	 
	

	 	 	Its:	 Executive Vice President
	 
	 	 	 	 
	 	 	MIDLAND MORTGAGE INVESTMENT

CORPORATION,
	 	 	a Florida corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Gary A. Mentesana
	

	 	 	 	 
	

	 	Its:
	 	Executive Vice President

Page 3

 

	 	 	 	 	 
	 	 	MMA CONSTRUCTION FINANCE, LLC, a Maryland
	 	 	limited liability company
	 
	 	 	 	 
	

	 	By:
	 	MuniMae Investment Services Corporation,
	

	 	 	 	a Maryland corporation 
	

	 	Its:	 	Sole Member
	 
	 	 	 	 
	

	 	
	By :
	 /s/ Gary A. Mentesana
	

	 	 	 	 
	

	 	
	Its:
	 Executive Vice President
	 
	 	 	 	 
	 	 	MMA CAPITAL CORPORATION, 
a Michigan corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Gary A. Mentesana
	

	 	Its:
	 	Executive Vice President
	 
	 	 	 	 
	 	 	RESIDENTIAL FUNDING CORPORATION,
	 	 	a Delaware corporation
	 
	 	 	 	 
	

	 	By:	 	/s/ Charles E. Schweitzer
	

	 	 	 	 
	

	 	Its :
	 	Director

Page 4exv10w21

 

Exhibit 10.21

 

MIDLAND FINANCIAL HOLDINGS,
INC.,

AS ISSUER

 

AND

 

WILMINGTON TRUST
COMPANY,

AS TRUSTEE

 

INDENTURE

Dated as of May 3, 2004

 

Up to $120,000,000

 

9.5% JUNIOR SUBORDINATED DEBENTURES DUE MAY 3, 2034

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	2
	Section 1.1
	 	Definitions	 	2
	Section 1.2
	 	Compliance Certificates and Opinions	 	9
	Section 1.3
	 	Form of Documents Delivered to Trustee	 	10
	Section 1.4
	 	Acts of Holders; Record Dates	 	10
	Section 1.5
	 	Notices, Etc., to Trustee and the Company	 	11
	Section 1.6
	 	Notice to Holders; Waiver	 	11
	Section 1.7
	 	Effect of Headings and Table of Contents	 	12
	Section 1.8
	 	Successors and Assigns	 	12
	Section 1.9
	 	Separability Clause	 	12
	Section 1.10
	 	Benefits of Indenture	 	12
	Section 1.11
	 	Governing Law	 	12
	Section 1.12
	 	Legal Holidays	 	12
	ARTICLE II
	DEBENTURE FORMS	 	13
	Section 2.1
	 	Forms Generally	 	13
	Section 2.2
	 	Initial Issuance to Property Trustee	 	13
	Section 2.3
	 	Global Debenture	 	13
	ARTICLE III
	THE DEBENTURES	 	14
	Section 3.1
	 	Title and Terms	 	14
	Section 3.2
	 	Denominations	 	15
	Section 3.3
	 	Execution, Authentication, Delivery and Dating	 	16
	Section 3.4
	 	Temporary Debentures	 	16
	Section 3.5
	 	Registration, Registration of Transfer and Exchange	 	16
	Section 3.6
	 	Mutilated, Destroyed, Lost and Stolen Debentures	 	17
	Section 3.7
	 	Payment of Interest; Interest Rights Preserved	 	18
	Section 3.8
	 	Persons Deemed Owners	 	19
	Section 3.9
	 	Cancellation	 	19
	Section 3.10
	 	Right of Set Off	 	19
	Section 3.11
	 	CUSIP Numbers	 	19
	Section 3.12
	 	Paying Agent and Registrar	 	20
	Section 3.13
	 	Calculation of Original Issue Discount	 	20

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE IV
	SATISFACTION AND DISCHARGE	 	20
	Section 4.1
	 	Satisfaction and Discharge of Indenture	 	20
	Section 4.2
	 	Application of Trust Money	 	21
	ARTICLE V
	REMEDIES	 	21
	Section 5.1
	 	Indenture Events of Default	 	21
	Section 5.2
	 	Acceleration of Maturity; Rescission and Annulment	 	22
	Section 5.3
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	23
	Section 5.4
	 	Trustee May File Proofs of Claim	 	23
	Section 5.5
	 	Trustee May Enforce Claims Without Possession of Debentures	 	24
	Section 5.6
	 	Application of Money Collected	 	24
	Section 5.7
	 	Limitation on Suits	 	24
	Section 5.8
	 	Unconditional Right of Holders To Receive Principal and Interest	 	25
	Section 5.9
	 	Restoration of Rights and Remedies	 	25
	Section 5.10
	 	Rights and Remedies Cumulative	 	25
	Section 5.11
	 	Delay or Omission Not Waiver	 	25
	Section 5.12
	 	Control by Holders	 	26
	Section 5.13
	 	Waiver of Past Defaults	 	26
	Section 5.14
	 	Undertaking For Costs	 	26
	Section 5.15
	 	Waiver of Stay or Extension Laws	 	26
	Section 5.16
	 	Enforcement by Holders of Trust Preferred Securities	 	27
	ARTICLE VI
	THE TRUSTEE	 	27
	Section 6.1
	 	Certain Duties and Responsibilities	 	27
	Section 6.2
	 	Notice of Defaults	 	27
	Section 6.3
	 	Certain Rights of Trustee	 	28
	Section 6.4
	 	Not Responsible for Recitals or Issuance of Debentures	 	29
	Section 6.5
	 	May Hold Debentures	 	29
	Section 6.6
	 	Money Held in Trust	 	29
	Section 6.7
	 	Compensation and Reimbursement	 	29
	Section 6.8
	 	Disqualification; Conflicting Interests	 	30
	Section 6.9
	 	Corporate Trustee Required; Eligibility	 	30
	Section 6.10
	 	Resignation and Removal; Appointment of Successor	 	30
	Section 6.11
	 	Acceptance of Appointment by Successor	 	31

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	Section 6.12
	 	Merger, Conversion, Consolidation or Succession to Business	 	31
	Section 6.13
	 	Preferential Collection of Claims Against Company	 	31
	ARTICLE VII
	HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	32
	Section 7.1
	 	Company to Furnish Trustee Names and Addresses of Holders	 	32
	Section 7.2
	 	Preservation of Information; Communications to Holders	 	32
	Section 7.3
	 	Reports by Trustee	 	32
	Section 7.4
	 	Reports by Company	 	32
	ARTICLE VIII
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	33
	Section 8.1
	 	Company May Consolidate, etc., Only on Certain Terms	 	33
	Section 8.2
	 	Successor Substituted	 	33
	ARTICLE IX
	SUPPLEMENTAL INDENTURES	 	34
	Section 9.1
	 	Supplemental Indentures Without Consent of Holders	 	34
	Section 9.2
	 	Supplemental Indentures with Consent of Holders	 	35
	Section 9.3
	 	Execution of Supplemental Indentures	 	36
	Section 9.4
	 	Effect of Supplemental Indentures	 	36
	Section 9.5
	 	Reference in Debentures to Supplemental Indentures	 	36
	ARTICLE X
	COVENANTS; REPRESENTATIONS AND WARRANTIES	 	36
	Section 10.1
	 	Payment of Principal and Interest	 	36
	Section 10.2
	 	Maintenance of Office or Agency	 	36
	Section 10.3
	 	Money for Debenture Payments to Be Held in Trust	 	37
	Section 10.4
	 	Statement by Officers as to Default	 	38
	Section 10.5
	 	Additional Covenants	 	38
	Section 10.6
	 	Payment of Expenses of the Trust	 	39
	ARTICLE XI
	REDEMPTION OF DEBENTURES	 	39
	Section 11.1
	 	Redemption	 	39
	Section 11.2
	 	Applicability of Article	 	40
	Section 11.3
	 	Election to Redeem; Notice to Trustee	 	40
	Section 11.4
	 	Notice of Redemption	 	40
	Section 11.5
	 	Deposit of Redemption Price	 	40
	Section 11.6
	 	Debentures Payable on Redemption Date	 	41
	Section 11.7
	 	No Sinking Fund	 	41

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE XII
	SUBORDINATION OF DEBENTURES	 	41
	Section 12.1
	 	Agreement to Subordinate	 	41
	Section 12.2
	 	Default on Senior Debt	 	42
	Section 12.3
	 	Liquidation; Dissolution; Bankruptcy	 	42
	Section 12.4
	 	Subrogation	 	43
	Section 12.5
	 	Trustee to Effectuate Subordination	 	44
	Section 12.6
	 	Notice by the Company	 	44
	Section 12.7
	 	Rights of the Trustee; Holders of Senior Debt	 	44
	Section 12.8
	 	Subordination May Not Be Impaired	 	45
	Section 12.9
	 	Article Applicable to Paying Agents	 	45
	Section 12.10
	 	Right to Bring Direct Action Subordinate	 	45
	ARTICLE XIII
	IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS	 	45
	Section 13.1
	 	No Recourse	 	45
	Section 13.2
	 	PORTAL Eligibility	 	46
	Section 13.3
	 	Counterparts	 	46

-iv-

 

INDENTURE

     INDENTURE, dated as of May 3, 2004, between Midland Financial Holdings, Inc., a corporation duly
organized and existing under the laws of the State of Florida (the “Company”), having its principal
office at 621 E. Pratt Street, Suite 300, Baltimore, Maryland 21202, and Wilmington Trust Company,
a Delaware-chartered bank and trust company (“Wilmington Trust”), as trustee, having its principal
office at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890 (the
“Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, MFH Financial Trust I, a Delaware statutory trust (the “Trust”) governed by the Amended
and Restated Declaration of Trust dated as of April 28, 2004 (the “Declaration”), by and among the
Company, as sponsor, Mark K. Joseph, Michael L. Falcone and William S. Harrison, as administrative
trustees (the “Administrative Trustees”), and Wilmington Trust as Delaware trustee and property
trustee (the “Property Trustee”), will issue and sell up to 1,200,000 9.5% Trust Preferred
Securities (Liquidation Amount of $100 per Trust Preferred Security) (the “Trust Preferred
Securities”) representing undivided beneficial interests in the assets of the Trust, with a
liquidation amount of $100 per Trust Preferred Security, or up to $120,000,000 in the aggregate;
and

     WHEREAS, the Trust will issue and sell to the Company 100 9.5% Trust Common Securities (Liquidation
Amount of $1.00 per Trust Common Security) (the “Trust Common Securities” and, together with the
Trust Preferred Securities, the “Trust Securities”) representing undivided beneficial interests in
the assets of the Trust, with a liquidation amount of $1 per Trust Common Security, or $100 in the
aggregate; and

     WHEREAS, pursuant to the Declaration, the Trust will use the proceeds from the sale of the Trust
Securities to purchase from the Company the 9.5% Junior Subordinated Debentures Due May 3, 2034
described in this Indenture (the “Debentures”) in an aggregate principal amount of up to $100,000;
and

     WHEREAS, in connection with the issuance and sale by the Trust of the Trust Preferred Securities
and the issuance and sale of the Debentures by the Company to the Trust, the Company is also
executing and delivering a Trust Preferred Securities Guarantee Agreement of even date herewith
(the “MFH Guarantee”);

     WHEREAS, Municipal Mortgage & Equity, LLC, a Maryland limited liability company and the indirect
parent of the Company (“MuniMae”), is also executing and delivering a guarantee agreement of even
date herewith (the “MMA Guarantee”);

     WHEREAS, the Company has duly authorized the creation of the Debentures, this Indenture sets forth
the terms and conditions thereof, and all things necessary to make this Indenture a valid agreement
of the Company, subject to execution and delivery of this Indenture by the Company and the Trustee,
have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Debentures by the Holders (as
defined herein) as provided for herein, it is mutually agreed, for the equal and proportionate
benefit of the Holders, as follows:

 

 

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     Section 1.1          Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

          (a)     capitalized terms used in this Indenture have the respective meanings assigned to
them in this Section 1.1, unless otherwise specified;

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

          (c)     all references in this Indenture to “Articles” and “Sections” and “Annexes” and “Exhibits”
are to Articles and Sections and Annexes and Exhibits to this Indenture unless otherwise specified;

          (d)     a reference to the singular includes the plural and vice versa;

          (e)     all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States; and

          (f)     the words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other subdivision.

     “Act” when used with respect to any Holder has the meaning specified in Section 1.4.

     “Additional Interest” has the meaning specified in Section 3.1.

     “Administrative Trustees” has the meaning specified in the Recitals to this instrument.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of that board.

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

     “Business Day” means any day other than a Saturday, Sunday or day on which banking institutions in
New York City or in Wilmington, Delaware are authorized or required by law to close.

     “Clearing Agency” means an organization registered as a “clearing agency” pursuant to Section 17A
of the Exchange Act that is acting as Depositary for the Debentures and in whose name or in

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the
name of a nominee of that organization shall be registered a Global Debenture under the
circumstances described in Section 2.3.

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

     “Common Stock” means, in the case of a Person that is a corporation, any capital stock of any class
of such Person, and, in the case of any Person that is not a corporation, any equity security of
any class of such Person, in each case which capital stock or equity security has no preference
with respect to dividends or to amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of such Person.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument until a
successor Person shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter “Company” shall mean such successor Person.

     “Company Request” or “Company Order” means a written request or order signed in the name of the
Company by its Chairman of the Board of Directors, its President or a Vice President, and by its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the
Trustee.

     “Corporate Trust Office” means the principal office of the Trustee in Wilmington, Delaware, at
which at any particular time its corporate trust business shall be administered and which at the
date of this Indenture is located at Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890, Attention: Corporate Trust Administration.

     “Debentures” has the meaning specified in the Recitals to this instrument.

     “Declaration” has the meaning specified in the Recitals to this instrument. A copy of the
Declaration is attached to this Indenture as Annex A.

     “Declaration Event of Default” has the meaning specified in the Declaration.

     “Defaulted Interest” has the meaning specified in Section 3.7.

     “Depositary” has the meaning specified in the Declaration.

     “Direct Action” means a proceeding directly instituted by a holder of Trust Preferred Securities to
compel payment to such holder of the principal of or interest on Debentures having a principal
amount equal to the aggregate liquidation amount of the Trust Preferred Securities of such holder
on or after the due date thereof as specified herein, if a Declaration Event of Default has
occurred and is continuing and such event is attributable to the failure of the Company to pay
interest, principal or on the Debentures on the date such interest, principal is otherwise payable
(or in the case of redemption, on the Redemption Date).

     “Dissolution Event” means that, as a result of the occurrence and continuation of a Special Event,
the Trust is to be dissolved in accordance with the Declaration and the Debentures held by the
Property Trustee are to be distributed to the holders of Trust Securities in accordance with the
Declaration.

     “Equity Interest,” in any Person means any and all shares, interest, rights to purchase, warrants,
options, participations or other equivalents of or interest in (however designated) corporate stock
or other equity participations, including partnership interests, whether general or limited, in
such Person, including any Preferred Equity Interests.

-3-

 

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

     “Fiduciary Indemnified Person” has the meaning set forth in Section 6.7(c).

     “Global Debenture” has the meaning specified in Section 2.3.

     “Holder” means a Person in whose name a Debenture is registered in the Register.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are expressly incorporated
into and govern this instrument and any such supplemental indenture, respectively.

     “Indenture Event of Default” has the meaning specified in Section 5.1.

     “Interest Payment Date” has the meaning specified in Section 3.1.

     “Interest Reset Date” means May 5, 2014.

     “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” means that the Administrative Trustees shall have received an opinion of
counsel experienced in practice under the Investment Company Act who is not an employee, officer or
Affiliate of MuniMae that, as a result of (a) 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 thereof or therein, (b) any amendment to, or change in, an interpretation or
application of any such laws or regulations by any legislative body, court, governmental agency or
regulatory authority (including the enactment of any legislation and the publication of any
judicial decision or regulatory determination), (c) any interpretation or pronouncement that
provides for a position with respect to such laws or regulations that differs from the theretofore
generally accepted position or (d) any action taken by any governmental agency or regulatory
authority, which amendment or change is enacted, promulgated, issued or announced or which
interpretation or pronouncement is issued or announced or which action is taken, in each case on or
after the date of original issuance of the Debentures (collectively, “Change in 1940 Act Law”),
there is more than an insubstantial risk that the Company, MuniMae or the Trust is or will be
considered an Investment Company that is required to be registered under the Investment Company
Act.

     “Maturity” when used with respect to any Debenture means the date on which the principal of such
Debenture becomes due and payable as therein or herein provided, whether at the Stated Maturity or
by declaration of acceleration, call for redemption or otherwise.

     “MFH Guarantee” has the meaning specified in the Recitals to this instrument.

     “MMA Guarantee” has the meaning specified in the Recitals to this instrument.

-4-

 

     “MuniMae” shall have the meaning ascribed to such term in the recitals to this Indenture, and shall
include any successor entity in a merger, consolidation or amalgamation, or any assignee of MuniMae
pursuant to the terms of the MMA Guarantee.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board of Directors, the
President or a Vice President of the Company, and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary of the Company, and delivered to the Trustee. One of the
officers signing an Officers’ Certificate given pursuant to Section 10.4 shall be the principal
executive, financial or accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company, and
who shall be acceptable to the Trustee in its reasonable discretion.

     “Outstanding” when used with respect to Debentures means, as of the date of determination, all
Debentures theretofore authenticated and delivered under this Indenture, except:

     (a)     Debentures theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     (b)     Debentures for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any other Paying Agent for the Holders of such
Debentures; and

     (c)     Debentures that have been paid pursuant to Section 3.6 or in exchange for or in lieu of
which other Debentures have been authenticated and delivered pursuant to this Indenture, other than
any such Debentures with respect to which there shall have been presented to the Trustee proof
satisfactory to it that such Debentures are held by a bona fide purchaser in whose
hands such Debentures are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Debentures have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Debentures owned by the Company or any other obligor upon the Debentures or any
Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Debentures that the
Trustee knows to be so owned shall be so disregarded. Debentures so owned that have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee that the pledgee has the right so to act with respect to such Debentures and that the
pledgee is not the Company or any other obligor upon the Debentures or any Affiliate of the Company
or of such other obligor. Upon the written request of the Trustee, the Company shall furnish to
the Trustee promptly an Officers’ Certificate listing and identifying all Debentures, if any, known
by the Company to be owned or held by or for the account of the Company or any other obligor on the
Debentures or any Affiliate of the Company or such obligor, and, subject to the provisions of
Section 6.1, the Trustee shall be entitled to accept such Officers’ Certificate as conclusive
evidence of the facts therein set forth and of the fact that all Debentures not listed therein are
Outstanding for the purpose of any such determination.

     “Paying Agent” means the Trustee or any other Person authorized by the Company to pay the principal
of or interest on any Debentures on behalf of the Company.

-5-

 

     “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.

     “Predecessor Debenture” of any particular Debenture means every previous Debenture evidencing all
or a portion of the same debt as that evidenced by such particular Debenture; and, for the purposes
of this definition, any Debenture authenticated and delivered under Section 3.6 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Debenture shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Debenture.

     “Preferred Equity Interest,” in any Person, means an Equity Interest of any class or classes
(however designated) which is preferred as to the payment of dividends or distribution, or as to
the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over Equity Interests of any other class in such Person.

     “Property Trustee” has the meaning specified in the Recitals to this instrument.

     “pro rata” when used with respect to any payment, distribution or treatment of the Debentures shall
mean pro rata to each Holder of Debentures according to the aggregate principal amount of the
Debentures Outstanding; provided, that in the event any Debentures are held by the Company or any
Affiliate thereof and an Indenture Event of Default has occurred and is continuing, any funds
available for such payment shall first be paid to each Holder of the Debentures (other than the
Company or any Affiliate thereof) pro rata according to the aggregate principal amount of the
Debentures held by each such Holder relative to the aggregate principal amount of all Debentures
Outstanding and held by such Holders, and only after satisfaction of all amounts owed to such
Holders of the Debentures (other than the Company or any Affiliate thereof), any additional funds
available for such payment shall be made to the Company or any Affiliate thereof pro rata according
to the aggregate principal amount of Debentures held by them.

     “Redemption Date” when used with respect to any Debenture to be redeemed means the date fixed for
such redemption by or pursuant to this Indenture.

     “Redemption Price” means 100% of the principal amount of the Debentures to be redeemed plus accrued
and unpaid interest (including any Additional Interest) thereon to the Redemption Date.

     “Redemption Tax Event” means a Tax Event in connection with which (a) the Administrative Trustees
shall have received an opinion of tax counsel experienced in such matters who is not an employee,
officer or Affiliate of MuniMae that, as a result of the Tax Event, there is more than an
insubstantial risk that the Company would be precluded from deducting the interest on the
Debentures for U.S. federal income tax purposes even if the Debentures were distributed to the
holders of the Trust Securities in liquidation of such holders’ interest in the Trust or (b) the
Administrative Trustees shall have been informed by such tax counsel that they are unable to
deliver to the Trust an opinion to the effect that the holders of the Trust Preferred Securities
would not recognize any income, gain or loss for U.S. federal income tax purposes as a result of
such dissolution and distribution of the Debentures.

     “Register” and “Registrar” have the respective meanings specified in Section 3.5.

     “Regular Record Date” has the meaning specified in Section 3.1.

     “Responsible Officer” when used with respect to the Trustee means any vice-president, any assistant
vice-president, the treasurer, any assistant treasurer, any trust officer or assistant trust
officer,

-6-

 

any financial services officer or any other officer in the Corporate Trust Department of
the Trustee customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of that officer’s knowledge of and familiarity with
the particular subject.

     “Rights Plan” means a plan of the Company providing for the issuance by the Company to all holders
of its Common Stock of rights entitling the holders thereof to subscribe for or purchase shares of
Common Stock or any class or series of preferred stock of the Company, which rights (i) are deemed
to be transferred with such shares of Common Stock, (ii) are not exercisable and (iii) are also
issued in respect of future issuances of the Company’s Common Stock, in each case until the
occurrence of a specified event or events.

     “Senior Debt” means (i) the principal, premium, if any, and interest with respect to (A)
indebtedness of the Company for money borrowed and (B) indebtedness evidenced by securities,
debentures, notes, bonds or other similar instruments issued by the Company, including without
limitation, any future indebtedness under any indenture (other than this Indenture) to which the
Company is a party, (ii) all capital lease obligations of the Company, (iii) all obligations of the
Company issued or assumed as the deferred purchase price of property, all conditional sale
obligations of the Company and all obligations of the Company under any title retention agreement
(but excluding trade accounts payable arising in the ordinary course of business), (iv) all
obligations of the Company for the reimbursement of any letter of credit, banker’s acceptance,
security purchase facility, any repurchase agreement or similar arrangement, or under any interest
rate swap or total return swap or other hedging arrangement or any obligation under options or any
similar credit or other transaction, (v) all obligations of the type referred to in clauses (i)
through (iv) above of other Persons for the payment of which the Company is responsible or liable
as obligor, guarantor or otherwise, (vi) all obligations of various classes of existing and future
preferred shares of the Company and all of its subsidiaries, other than the Trust Preferred
Securities and (vii) all obligations of the type referred to in clauses (i) through (vi) above of
other Persons secured by any lien on any property or asset of the
Company (whether or not such obligation is assumed by the Company), except for (1) any such
indebtedness that is by its terms subordinated to or pari passu with the Debentures and (2) any
indebtedness for money borrowed by any of the Company’s Affiliates (but only Affiliates in which
MuniMae and its Subsidiaries own more than 50% of the Equity Interests); in the case of clauses (i)
through (vii) above, whether outstanding at the date of this Indenture or thereafter incurred.
Such Senior Debt shall continue to be Senior Debt and entitled to the benefits of the subordination
provisions hereof irrespective of any amendment, modification or waiver of any term of such Senior
Debt.

     “Special Event” means an Investment Company Event or a Tax Event.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee
pursuant to Section 3.7.

     “Stated Maturity” of the Debentures or any installment of interest thereon means the date specified
herein as the fixed date on which the principal of such Debentures, or the Interest Payment Date on
which such installment of interest, is due and payable.

     “Subsidiary” of any Person means (i) a corporation more than 50% of the outstanding Voting Stock of
which is owned, directly or indirectly, by such Person or by one or more other Subsidiaries of such
Person or by such Person and one or more Subsidiaries thereof or (ii) any other Person (other than
a corporation) with respect to which such Person, or one or more other Subsidiaries of such Person
or such Person and one or more other Subsidiaries thereof, directly or indirectly, has at least a
majority ownership or the power to direct the policies, management and affairs thereof.

-7-

 

     “Tax Event” means that the Administrative Trustees shall have received an opinion of tax counsel
experienced in such matters who is not an employee, officer or Affiliate of MuniMae to the effect
that, as a result of (a) 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, (b) any amendment to, or change in, an interpretation or
application of any such laws or regulations by any legislative body, court, governmental agency or
regulatory authority (including the enactment of any legislation and the publication of any
judicial decision or regulatory determination), (c) any interpretation or pronouncement that
provides for a position with respect to such laws or regulations that differs from the theretofore
generally accepted position, or (d) any action taken by any governmental agency or regulatory
authority, which amendment or change is enacted, promulgated, issued or announced or which
interpretation or pronouncement is issued or announced or which action is taken, in each case on or
after the date of original issuance of the Debentures (collectively, a “Change in Tax Law”), there
is more than an insubstantial risk that (i) the Trust is, or will be within 90 days of the date
thereof, subject to U.S. federal income tax with respect to interest accrued or received on the
Debentures, (ii) the Trust is, or will be within 90 days of the date thereof, subject to more than
a de minimis amount of other taxes, duties or other governmental charges, or (iii) interest payable
by the Company to the Trust on the Debentures is not, or within 90 days of the date thereof will
not be, deductible by the Company for U.S. federal income tax purposes. Notwithstanding anything in
the previous sentence to the contrary, a Tax Event shall not include any Change in Tax Law that
requires the Company for U.S. federal income tax purposes to defer taking a deduction for any
original issue discount that accrues with respect to the Debentures until the interest payment
related to such original issue discount is paid by the Company in money.

     “Trust” has the meaning specified in the Recitals to this instrument.

     “Trust Common Securities” has the meaning specified in the recitals to this Instrument.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument, acting
not individually but solely as trustee under this Indenture, until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall
mean such successor Trustee.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of which
this instrument was executed; provided, however, that in the event the Trust Indenture Act of 1939
is amended after such date, “Trust Indenture Act” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.

     “Trust Preferred Securities Guarantees” means the MFH Guarantee and the MMA Guarantee, considered
together.

     “Trust Preferred Securities” has the meaning specified in the Recitals to this instrument.

     “Trust Preferred Securities Certificate” has the meaning specified in the Declaration.

     “Trust Securities” has the meaning specified in the Recitals to this instrument.

     “U.S. Treasury Rate” means:

	 	(i)  	the yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release designated
“H.15(519)” or any successor publication which is published weekly by the Board of
Governors of the 

-8-

 

	 	   	Federal Reserve System and which established a yield for actively
traded United States treasury securities adjusted to constant maturity under the
caption “Treasury Constant Maturities,” with a maturity (or remaining maturity) closest
to ten years specified on such publication as described above (if no maturity of ten
years is published, yields for the two published maturities most closely corresponding
to such time period shall be determined and the U.S. Treasury Rate shall be
interpolated or extrapolated from such yields on a straight-line basis, rounding to the
nearest month); or

	 	(ii)  	in the event that such yield referred to in paragraph (i) above does not appear
in such statistical release or any such successor during the seven days up to and
including the Interest Reset Date, the yield determined by the Trustee as follows:

	 	(a)  	The Trustee will request the principal New York office of each
of four primary United States government securities dealers to provide a
quotation of the yield it offers for United States treasury notes with a
maturity (or remaining maturity) closest to ten years and determine the average
of such quotations from each of the dealers for each of the days of the week
preceding the Interest Reset Date (rounded, if necessary, to the nearest one
thousandth of a percentage point, 0.0005 being rounded upwards); or
	 
	 	(b)  	if the Trustee is unable to obtain quotation and determine the
yield pursuant to sub-paragraph (ii)(a) above, the Trustee will determine,
based on the quotations from the dealers set forth in sub-paragraph (i)(a)
above (to the extent available), the latest calculable yield (the average of
the available quotations, if more than one) for United States treasury notes
with a maturity (or remaining maturity) closest to five years on the latest
available Business Day prior to the Interest Reset Date (rounded, if necessary,
to the nearest one thousandth of a percentage point 0.0005 being rounded
upwards).

     “Vice President” when used with respect to the Company means any vice president, whether or
not designated by a number or a word or words added before or after the title “vice president.”

     “Voting Stock” of any Person means capital stock or other equity securities of such Person that
ordinarily have voting power for the election of directors (or Persons performing similar
functions) of such Person, whether at all times or only so long as no senior class of securities
has such voting power by reason of any contingency.

     Section 1.2     Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be reasonably requested by the Trustee in connection with such application or
request. Each such certificate or opinion shall be given in the form of an Officer’s Certificate,
if to be given by an officer of the Company, or an Opinion of Counsel, if to be given by counsel,
and shall comply with the applicable provisions of this Indenture.

     Every certificate or opinion with respect to compliance with a condition or covenant provided for
in this Indenture shall include:

          (a)     a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

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          (b)     a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

          (c)     a statement that, in the opinion of each such individual, he has made such examination or
investigation as is necessary to enable him 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 individual, such condition or
covenant has been complied with.

     Section 1.3     Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an officer or officers of
the Company stating that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture, they may, but need
not, be consolidated and form one instrument.

     Section 1.4     Acts of Holders; Record Dates.

          (a)     Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to
Section 6.1) conclusive in favor of the Trustee and the Company, if made in the manner provided in
this Section.

          (b)     The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also

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constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner that the Trustee or the Company, as the case may be, deems
sufficient.

          (c)     The Company may fix any day as the record date for the purpose of determining the Holders
of Outstanding Debentures entitled to give, make or take any request, demand, authorization,
direction, notice, consent, waiver or other action, or to vote on any action, authorized or
permitted to be given or taken by Holders. If not set by the Company prior to the first
solicitation of a Holder made by any Person in respect of any such action, or, in the case of any
such vote, prior to such vote, the record date for any such action or vote shall be the 30th day
(or, if later, the date of the most recent list of Holders required to be provided pursuant to
Section 7.1) prior to such first solicitation or vote, as the case may be. With regard to any
record date, only the Holders on such date (or their duly designated proxies) shall be entitled to
give or take, or vote on, the relevant action.

          (d)     The ownership of Debentures shall be proved by the Register.

          (e)     Any request, demand, authorization, direction, notice, consent, waiver or other action of
the Holder of any Debenture shall bind every future Holder of the same Debenture and the Holder of
every Debenture issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Debenture.

          (f)     Without limiting the foregoing, a Holder entitled hereunder to give or take any such
action with regard to any particular Debenture may do so with regard to all or any part of the
principal amount of such Debenture or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any part of such principal amount.

     Section 1.5     Notices, Etc., to Trustee and the Company.

     Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

          (a)     the Trustee by any Holder, by any holder of Trust Preferred Securities or by the
Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Trustee at its Corporate Trust Office, Attention: Corporate Capital
Markets, or

          (b)     the Company by the Trustee, by any Holder or by any holder of Trust Preferred Securities
shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to the Company addressed to it at the address of
its principal office specified in the first paragraph of this instrument or at any other address
previously furnished in writing to the Trustee by the Company.

     Section 1.6     Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at such Holder’s address as it
appears in the Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders.
Any notice when mailed to a Holder in the aforesaid manner shall be

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conclusively deemed to have
been received by such Holder whether or not actually received by such Holder.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action taken in reliance upon
such waiver.

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

     Section 1.7     Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     Section 1.8     Successors and Assigns.

     This Indenture shall bind the Company’s successors and assigns, whether so expressed or not.

     Section 1.9     Separability Clause.

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

     Section 1.10     Benefits of Indenture.

     Nothing in this Indenture or in the Debentures, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, the holders of Senior Debt, the
holders of Trust Preferred Securities (to the extent provided herein) and the Holders of
Debentures, any benefit or any legal or equitable right, remedy or claim under this Indenture.

     Section 1.11     Governing Law.

     THIS INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF LAWS.

     Section 1.12     Legal Holidays.

     In any case where any Stated Maturity (including any Interest Payment Date) or Redemption Date
of any Debenture shall not be a Business Day, then (notwithstanding any other provision of this
Indenture or of the Debentures) payment of principal of or interest (including any Additional
Interest) on the Debentures need not be made on such date, but may be made on the next succeeding
Business Day (except that, if such Business Day is in the next succeeding calendar year, such
Stated Maturity or Redemption Date, as the case may be, shall be the immediately preceding Business
Day) with the same force and effect as if made on the Stated Maturity or Redemption Date; provided,
that no interest in respect of such payment shall accrue for the period from and after such Stated
Maturity or Redemption Date, as the case may be.

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ARTICLE II

DEBENTURE FORMS

     Section 2.1     Forms Generally.

     The Debentures and the Trustee’s certificates of authentication shall be substantially in the
form of Exhibit A, which is hereby incorporated in and expressly made a part of this Indenture.
The Debentures may have notations, legends or endorsements required by law, agreements to which the
Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in
a form acceptable to the Company). The Company shall furnish any such legend not contained in
Exhibit A to the Trustee in writing. Each Debenture shall be dated the date of its authentication.
The terms and provisions of the Debentures set forth in Exhibit A are part of the terms of this
Indenture and to the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby.

     The definitive Debentures shall be typewritten, printed, lithographed or engraved or produced by
any combination of these methods, if required by the requirements of any securities exchange or
automated quotation system on which the Debentures may be listed or traded on a steel engraved
border or on steel engraved borders, or may be produced in any other manner permitted by the
requirements of any securities exchange or automated quotation system on which the Debentures may
be listed or traded, all as determined by the officers executing such Debentures, as evidenced by
their execution of such Debentures.

     Section 2.2     Initial Issuance to Property Trustee.

     The Debentures initially issued to the Property Trustee of the Trust shall be in the form of
one or more individual certificates in definitive, fully registered form without distribution
coupons.

     Section 2.3     Global Debenture.

          (a)     In connection with a Dissolution Event, the following provisions apply:

                    (i)     The Debentures may be presented to the Trustee by the Property Trustee in exchange for a
global Debenture in an aggregate principal amount equal to the aggregate principal amount of all
outstanding Debentures (a “Global Debenture”) to be registered in the name of the Clearing Agency,
or its nominee, and delivered by the Trustee to the Clearing Agency for crediting to the accounts
of its participants pursuant to the instructions of the Company, following which the Clearing
Agency will act as depositary for the Debentures. The Company, upon any such presentation, shall
execute a Global Debenture in such aggregate principal amount and deliver the same to the Trustee
for authentication and delivery in accordance with this Indenture. Payments on the Debentures
issued as a Global Debenture will be made to the Clearing Agency.

                    (ii)     If any Trust Preferred Securities are held in non book-entry certificated form, the
Debentures may be presented to the Trustee by the Property Trustee and any Trust Preferred
Securities Certificate that represents Trust Preferred Securities other than Trust Preferred
Securities held by the Depositary or its nominee (“Non Book-Entry Trust Preferred Securities”) will
be deemed to represent beneficial interests in Debentures presented to the Trustee by the Property
Trustee having an aggregate principal amount equal to the aggregate liquidation amount of the Non
Book-Entry Trust Preferred Securities until such Non Book-Entry Trust Preferred Securities are
presented to the Registrar for transfer or reissuance at which time such Non Book-Entry Trust
Preferred Securities will be canceled

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and a Debenture, registered in the name of the holder of the
Non Book-Entry Trust Preferred Securities or the transferee of the holder of such Non Book-Entry
Trust Preferred Securities, as the case may be, with an aggregate principal amount equal to the
aggregate liquidation amount of the Non Book-Entry Trust Preferred Securities canceled, will be
executed by the Company and delivered to the Trustee for authentication and delivery in accordance
with this Indenture.

          (b)     Except as provided in (c) below, a Global Debenture may be transferred, in whole but not
in part, only to a nominee of the Clearing Agency (including any successor Clearing Agency selected
or approved by the Company or a nominee of such successor Clearing Agency).

          (c)     If at any time the Clearing Agency notifies the Company that it is unwilling or unable to
continue as depositary or if at any time the Clearing Agency shall no longer be registered or in
good standing under the Exchange Act or other applicable statute or regulation, and a successor
Clearing Agency is not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such condition, as the case may be, the Company will execute, and the
Trustee, upon receipt of a Company Order with respect to authentication and delivery, will
authenticate and deliver the Debentures in accordance with the provisions set forth in this Section
2.3(c) in definitive registered form, in authorized denominations, and in an aggregate principal
amount equal to the principal amount of the Global Debenture in exchange for such Global Debenture.
In addition, the Company may at any time determine that the Debentures shall no longer be
represented by a Global Debenture. In such event the Company will execute, and the Trustee, upon
receipt of an Officers’ Certificate evidencing such determination by the Company and a Company
Order with respect to authentication and delivery, will authenticate and deliver the Debentures in
accordance with the provisions set forth in this Section 2.3(c) in definitive registered form, in
authorized denominations, and in an aggregate principal amount equal to the principal amount of the
Global Debenture in exchange for such Global Debenture. Upon the exchange of the Global Debenture
for such Debentures in definitive registered form, in authorized denominations, the Global
Debenture shall be canceled by the Trustee. Such Debentures in definitive registered form issued
in exchange for the Global Debenture shall be registered in such names and in such authorized
denominations as the Clearing Agency, pursuant to instructions from its direct or indirect
participants or
otherwise, shall instruct the Trustee. The Trustee shall deliver such Debentures to the
Clearing Agency for delivery to the Persons in whose names such Debentures are so registered.

ARTICLE III

THE DEBENTURES

     Section 3.1     Title and Terms.

     The aggregate principal amount of Debentures that may be authenticated and delivered under
this Indenture is limited to the sum of $120,000,100, except for Debentures authenticated and
delivered upon transfer of, or in exchange for, or in lieu of, other Debentures pursuant to Section
3.4, 3.5 or 3.6.

     The Debentures shall be known and designated as the “9.5% Junior Subordinated Debentures Due May 3,
2034” of the Company. The Stated Maturity of the principal of the Debentures shall be May 3, 2034,
and they shall bear interest at the rate of 9.5% per annum from May 3, 2004, and a rate which is
equal to the greater of (a) 9.5% per annum or (b) the rate per annum which is equal to 6.00% plus
the U.S. Treasury Rate on the Interest Reset Date from such date, or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, as the case may be, payable
quarterly, in arrears, on February 3, May 3, August 3 and November 3 (each such date, an “Interest
Payment Date”) of each year, commencing August 3, 2004, until the principal thereof is paid or made
available for payment, and each installment of interest on a Debenture shall be paid (subject to
Section 3.7) to the Person in whose name

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such Debenture (or one or more Predecessor Debentures) is
registered at the close of business on the regular record date (the “Regular Record Date”) for such
installment of interest, which in respect of any Debentures of which the Property Trustee is the
Holder of a Global Debenture shall, except as provided in the following sentence, be the close of
business on the Business Day next preceding the Interest Payment Date for that installment of
interest. Notwithstanding the foregoing sentence, if the Trust Preferred Securities are no longer
in book-entry-only form or, except if the Debentures are held by the Property Trustee, the
Debentures are not represented by a Global Debenture, the Regular Record Date for such installment
of interest shall be the close of business on the 15th day next preceding the Interest Payment Date
for such installment of interest (or if such day is not a Business Day, on the day next preceding
that 15th day that is a Business Day). Interest will compound quarterly and will accrue at the
rate of interest per annum then applicable on any interest installment in arrears.

     The amount of interest payable for any period will be computed on the basis of a 360-day year of
twelve 30-day months. Except as provided in the following sentence, the amount of interest payable
for any period shorter than a full quarterly period for which interest is computed will be computed
on the basis of the actual number of days elapsed per 30-day month. If any Interest Payment Date
is not a Business Day, then payment of the 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 the Interest Payment Date.

     If at any time while the Property Trustee is the Holder of any Debentures, the Trust or the
Property Trustee is required to pay any taxes, duties, assessments or governmental charges of
whatever nature (other than withholding taxes) imposed on the Trust by the United States or any
other taxing authority, then, in any such case, the Company will pay as additional interest
(“Additional Interest”) on the Debentures held by the Property Trustee, such amounts as shall be
required so that the net amounts received and retained by the Trust and the Property Trustee after
paying any such taxes, duties, assessments or other governmental charges will be at least the
amounts the Trust and the Property Trustee would have received had no such taxes, duties,
assessments or other governmental charges been imposed.

     The principal of and interest on the Debentures shall be payable at the office or agency of the
Company in the United States maintained for such purpose under Section 10.2 and at any other office
or agency maintained by the Company for such purpose in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Company payment of any installment of interest may be
made (i) by check mailed to the address of the Person entitled thereto as such address shall appear
in the Register or (ii) by wire transfer in immediately available funds at such place and to such
account as may be designated in writing at least 15 days before the Interest Payment Date for that
installment of interest by the Person entitled thereto.

     The Debentures shall be redeemable as provided in Article XI hereof.

     The Debentures shall be subordinated in right of payment to Senior Debt as provided in Article XII
hereof.

     Section 3.2     Denominations.

     The Debentures shall be issuable only in registered form without coupons and only in
denominations of (a) $100 and integral multiples thereof to the
Company and its Affiliates and (b) $2,000,000 and integral multiples thereof to Persons other than the Company and its Affiliates.

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     Section 3.3     Execution, Authentication, Delivery and Dating.

     The Debentures shall be executed on behalf of the Company by its Chairman of the Board, its
President or one of its Vice Presidents. The signature of any of these officers on the Debentures
may be manual or facsimile. Debentures bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company, notwithstanding
that such individuals or any of them have ceased to hold such offices prior to the authentication
and delivery of such Debentures or did not hold such offices at the date of such Debentures.

     At any time and from time to time after the execution and delivery of this Indenture, the Company
may deliver Debentures executed by the Company to the Trustee for authentication, together with a
Company Order for the authentication and delivery of such Debentures; and the Trustee in accordance
with such Company Order shall authenticate and make available for delivery such Debentures as in
this Indenture provided and not otherwise.

     No Debenture shall be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose unless there appears on such Debenture a certificate of authentication substantially in
the form provided for herein executed by the Trustee by manual signature, and such certificate upon
any Debenture shall be conclusive evidence, and the only evidence, that such Debenture has been
duly authenticated and delivered hereunder.

     Section 3.4     Temporary Debentures.

     Pending the preparation of definitive Debentures, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Debentures that are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Debentures in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as the officers
executing such Debentures may determine, as evidenced by their execution of such Debentures.

     If temporary Debentures are issued, the Company will cause definitive Debentures to be prepared
without unreasonable delay. After the preparation of definitive Debentures, the temporary
Debentures shall be exchangeable for definitive Debentures upon surrender of the temporary
Debentures at any office or agency of the Company designated pursuant to Section 10.2, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Debentures the
Company shall execute and the Trustee shall authenticate and make available for delivery in
exchange therefor a like principal amount of definitive Debentures of authorized denominations.
Until so exchanged the temporary Debentures shall in all respects be entitled to the same benefits
under this Indenture as definitive Debentures.

     Section 3.5     Registration, Registration of Transfer and Exchange.

          (a)     General.

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency designated pursuant to
Section 10.2 being herein sometimes collectively referred to as the “Register”) in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide for the registration
of Debentures and of transfers of Debentures. The Trustee is hereby appointed “Registrar” for the
purpose of registering Debentures and transfers of Debentures as herein provided.

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     Upon surrender for registration of transfer of any Debenture at an office or agency of the Company
designated pursuant to Section 10.2 for such purpose, the Company shall execute, and the Trustee
shall authenticate and deliver, in the name of the designated transferee or transferees, one or
more new Debentures of any authorized denominations and of a like aggregate principal amount.

     At the option of the Holder, Debentures may be exchanged for other Debentures of any authorized
denominations and of a like aggregate principal amount, upon surrender of the Debentures to be
exchanged at such office or agency. Whenever any Debentures are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and make available for delivery, the
Debentures that the Holder making the exchange is entitled to receive.

     All Debentures issued upon any registration of transfer or exchange of Debentures shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Debentures surrendered upon such registration of transfer or exchange.

     Every Debenture presented or surrendered for registration of transfer or for exchange shall (if so
required by the Company or the Trustee) be duly endorsed, or be accompanied by a written instrument
of transfer in form satisfactory to the Company and the Registrar duly executed, by the Holder
thereof or his attorney duly authorized in writing.

     No service charge shall be made for any registration of transfer or exchange of Debentures, but the
Company or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Debentures other than an exchange pursuant to Section 3.4 not involving any
transfer.

          (b)     Transfer Procedures.

     Upon any distribution of the Debentures to the holders of the Trust Preferred Securities in
accordance with the Declaration, the Company and the Trustee shall enter into a supplemental
indenture pursuant to Section 9.1(d) to provide for transfer procedures and restrictions with
respect to the Debentures substantially similar to those contained in the Declaration to the extent
applicable in the circumstances existing at the time of such distribution.

     Section 3.6     Mutilated, Destroyed, Lost and Stolen Debentures.

     If any mutilated Debenture is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Debenture of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of
the destruction, loss or theft of any Debenture and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Debenture has been acquired by a bona
fide purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu
of any such destroyed, lost or stolen Debenture, a new Debenture of like tenor and principal amount
and bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Debenture has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new Debenture, pay such
Debenture.

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     Upon the issuance of any new Debenture under this Section, the Company may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     Every new Debenture issued pursuant to this Section in lieu of any destroyed, lost or stolen
Debenture shall constitute an original additional contractual obligation of the Company, whether or
not the destroyed, lost or stolen Debenture shall be at any time enforceable by anyone, and shall
be entitled to all the benefits of this Indenture equally and proportionately with any and all
other Debentures duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other
rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Debentures.

     Section 3.7     Payment of Interest; Interest Rights Preserved.

     Any installment of interest on any Debenture that is payable, and is punctually paid or duly
provided for, on the Interest Payment Date for that installment of interest shall be paid to the
Person in whose name that Debenture (or one or more Predecessor Debentures) is registered at the
close of business on the Regular Record Date for that installment of interest, except that interest
(including any Additional Interest) payable on the Maturity of the principal of a Debenture shall
be paid to the Person to whom such principal is paid.

     Any installment of interest on any Debenture that is payable, but is not punctually paid or duly
provided for, on the Interest Payment Date for such installment of interest (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the Person in whose name that
Debenture (or one or more Predecessor Debentures) was registered at the close of business on
the Regular Record Date for that installment of interest, and such Defaulted Interest may be paid
by the Company, at its election in each case, as provided in subparagraph (a) or (b) below:

          (a)     The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Debentures (or their respective Predecessor Debentures) are registered at the close
of business on a special record date for the payment of such Defaulted Interest, which shall be
fixed in the following manner (a “Special Record Date”). The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Debenture and the date of
the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this subparagraph provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest, which shall be not more than
15 days and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall
promptly notify the Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, to each Holder at his address as it
appears in the Register, not less than 10 days prior to such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Debentures (or
their respective Predecessor Debentures) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following subparagraph (b).

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          (b)     The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Debentures may be listed or traded, upon such notice as may be required by such
securities exchange or automated quotation system, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this subparagraph, such manner of payment shall be
deemed practicable by the Trustee.

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

     Section 3.8     Persons Deemed Owners.

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

     Section 3.9     Cancellation.

     All Debentures surrendered for payment, redemption or registration of transfer or exchange
shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall
be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation
any Debentures previously authenticated and delivered hereunder that the Company may have
acquired in any manner whatsoever, and all Debentures so delivered shall be promptly canceled by
the Trustee. No Debentures shall be authenticated in lieu of or in exchange for any Debentures
canceled as provided in this Section, except as expressly permitted by this Indenture. All
canceled Debentures held by the Trustee shall be disposed of as directed by a Company Order;
provided, however, that the Trustee shall not be required to destroy the certificates representing
such canceled Debentures.

     Section 3.10     Right of Set Off.

     Notwithstanding anything to the contrary in this Indenture, the Company shall have the right
to set off any payment it is otherwise required to make hereunder to the extent the Company has
theretofore made, or is concurrently on the date of such payment making, a payment under the Trust
Preferred Securities Guarantees.

     Section 3.11     CUSIP Numbers.

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

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     Section 3.12     Paying Agent and Registrar.

     The Trustee will initially act as Paying Agent and Registrar. The Company may change any
Paying Agent, Registrar or co-registrar without prior notice. The Company or any of its Affiliates
may act in any such capacity.

     Section 3.13     Calculation of Original Issue Discount.

     The Company shall file with the Trustee promptly at the end of each calendar year a written
notice specifying the amount of original issue discount, if any (including daily rates and accrual
periods), accrued on Outstanding Debentures as of the end of such year.

ARTICLE IV

SATISFACTION AND DISCHARGE

     Section 4.1     Satisfaction and Discharge of Indenture.

     This Indenture shall cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange of Debentures herein expressly provided for), and the Trustee,
on demand of and at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when (1) either (A) all Debentures theretofore
authenticated and delivered (other than (i) Debentures that have been destroyed, lost or stolen and
that have been replaced or paid as provided in Section 3.6 and (ii) Debentures for whose payment
money has theretofore been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in Section 10.3) have
been delivered to the Trustee for cancellation; or (B) all such Debentures not theretofore
delivered to the Trustee for cancellation have become due and payable, and the Company has
deposited or caused to be deposited with the Trustee funds in trust for the purpose
and in an amount sufficient to pay and discharge the entire indebtedness on such Debentures not
theretofore delivered to the Trustee for cancellation, for principal and interest (including any
Additional Interest) to the date of such deposit (in the case of Debentures that have become due
and payable) or to the Stated Maturity or Redemption Date, as the case may be; (2) the Company has
paid or caused to be paid all other sums payable hereunder by the Company; and (3) the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for or relating to the satisfaction and discharge of this
Indenture have been complied with. Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 6.7 and, if money shall have
been deposited with the Trustee pursuant to subclause (B) of clause (1) of this Section, the
obligations of the Trustee under Section 4.2 and the last paragraph of Section 10.3 shall survive.

     If the Trustee or Paying Agent is unable to apply any amount to pay principal and interest
(including any Additional Interest) on the Debentures at their Stated Maturity or Redemption Date
by reason of any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Debentures shall be revived and reinstated as
though no deposit had occurred pursuant to this Section until such time as the Trustee or Paying
Agent is permitted to apply all such amounts to the payment of the Debentures; provided, however,
that if the Company has made any payment of interest on or principal of any Debentures because of
the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders
of such Debentures to receive such payment from the amounts held by the Trustee or Paying Agent.

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     Section 4.2     Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.3, all money deposited with the
Trustee pursuant to Section 4.1 shall be held in trust and applied by it, in accordance with the
provisions of the Debentures and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal and interest (including any Additional Interest)
for whose payment such money has been deposited with the Trustee.

ARTICLE V

REMEDIES

     Section 5.1     Indenture Events of Default.

     “Indenture Event of Default,” wherever used herein, means any one of the following events that
has occurred and is continuing (whatever the reason for such Indenture Event of Default and whether
it shall be occasioned by the provisions of Article XII or 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)     failure for 30 days to pay interest on the Debentures, including any Additional
Interest in respect thereof, when due;

          (b)     failure to pay principal of the Debentures at Maturity;

          (c)     any failure to observe or perform in any respect any covenant contained in Section 8.1 or
Section 10.5 hereof and any failure by MuniMae to observe or perform in any respect any covenant
contained in Section 5.6 or Section 6.2 of the MMA Guarantee;

          (d)     any failure to observe or perform in any material respect any other covenant contained in
this Indenture, in each such case for 30 days after notice to the Company by the Trustee, or by the
Holders of at least a majority in aggregate principal amount of Outstanding Debentures, specifying
such failure and requiring it be remedied;

          (e)     any failure to observe or perform in any material respect any other covenant contained in
the MMA Guarantee, in each such case for 30 days after notice to MuniMae by the Trustee, or by the
Holders of at least a majority in aggregate principal amount of Outstanding Debentures, specifying
such failure and requiring it be remedied; and

          (f)     entry by a court having jurisdiction in the premises of (A) a decree or order for relief
in respect of the Company and/or MuniMae in an involuntary case or proceeding under any applicable
federal or state bankruptcy, insolvency, reorganization or other similar law or (B) a decree or
order adjudging the Company and/or MuniMae a bankrupt or insolvent, or approving as properly filed
a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the
Company and/or MuniMae under any applicable federal or state law, or appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company
and/or MuniMae or of substantially all of the property of the Company and/or MuniMae, or ordering
the winding up or liquidation of its affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of 60 consecutive
days;

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          (g)     the commencement by the Company and/or MuniMae of a voluntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization or other similar law or of any
other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Company
and/or MuniMae to the entry of a decree or order for relief in respect of itself in an involuntary
case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or
other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against
the Company and/or MuniMae, or the filing by the Company and/or MuniMae of a petition or answer or
consent seeking reorganization or relief under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law, or the consent by the Company and/or MuniMae to
the filing of any such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company
and/or MuniMae or of substantially all of the property of the Company and/or MuniMae, or the making
by the Company and/or MuniMae of an assignment for the benefit of creditors, or the admission by
the Company and/or MuniMae in writing of its inability to pay its debts generally as they become
due, or the taking of corporate action by the Company and/or MuniMae in furtherance of any such
action; or

          (h)     the voluntary or involuntary dissolution, winding up or termination of the Trust, except
in connection with (i) the distribution of Debentures to holders of Trust Preferred Securities in
liquidation of the Trust upon the occurrence of a Dissolution Event or (ii) certain mergers,
consolidations or amalgamations, as permitted under the Declaration.

     Section 5.2     Acceleration of Maturity; Rescission and Annulment.

     If an Indenture Event of Default specified in Section 5.1(e) or Section 5.1(f) occurs, the
principal of all the Debentures and all accrued interest (including any Additional Interest) shall
automatically become immediately due and payable.

     If any other Indenture Event of Default occurs and is continuing, then, and in every such case, the
Trustee or the Holders of at least a majority in principal amount of the Outstanding Debentures may
declare the principal of all the Debentures and any other amounts payable hereunder to be due and
payable immediately, by a notice in writing given to the Company (and to the Trustee if given by
Holders), and upon any such declaration such principal and all accrued interest (including any
Additional Interest) shall become immediately due and payable.

     At any time after such a declaration of acceleration has been made and before a judgment or decree
for payment of the money due has been obtained by the Trustee as provided in this Article
hereinafter, the Holders of a majority in aggregate principal amount of the Outstanding Debentures,
by written notice to the Company and the Trustee, may rescind and annul such declaration and its
consequences if:

          (a)     the Company has paid or deposited with the Trustee a sum sufficient to pay

                    (i)     all overdue interest (including any Additional Interest) on all Debentures,

                    (ii)     the principal of any Debentures that have become due otherwise than by such declaration
of acceleration and interest thereon at the rate borne by the Debentures and

                    (iii)     all sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel; and

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          (b)     all Indenture Events of Default, other than the non-payment of the principal of Debentures
that has become due solely by such declaration of acceleration, have been cured or waived as
provided in Section 5.13.

     No such rescission shall affect any subsequent default or impair any right consequent thereon.

     Section 5.3     Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if:

          (a)     default is made in the payment of any interest (including any Additional Interest) on
any Debenture when such interest becomes due and payable and such default continues for a period of
30 days or

          (b)     default is made in the payment of the principal of any Debenture at the Maturity thereof,

     the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of
such Debentures, the whole amount then due and payable on such Debentures for principal, and
interest (including any Additional Interest) and, to the extent that payment thereof shall be
legally enforceable, interest on any overdue principal and on any overdue interest (including any
Additional Interest), at the rate borne by the Debentures, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

          If an Indenture Event of Default occurs and is continuing, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders by such appropriate
judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper remedy.

     Section 5.4     Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company and/or MuniMae (or any other
obligor upon the Debentures), its property or its creditors, the Trustee shall be entitled and
empowered, by intervention in such proceeding or otherwise, to take any and all actions appropriate
for a Trustee in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.7.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Debentures or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or
similar official and be a member of a creditors or other similar committee.

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     Section 5.5     Trustee May Enforce Claims Without Possession of Debentures.

     All rights of action and claims under this Indenture or the Debentures may be prosecuted and
enforced by the Trustee without the possession of any of the Debentures or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Debentures in
respect of which such judgment has been recovered.

     Section 5.6     Application of Money Collected.

     Subject to Article XII, any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest (including any Additional Interest),
upon presentation of the Debentures and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 6.7;

     SECOND: To the payment of the amounts then due and unpaid for principal of and interest (including
any Additional Interest) on the Debentures in respect of which or for the benefit of which such
money has been collected, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Debentures for principal and interest (including any Additional
Interest), respectively; and

     THIRD: The balance, if any, to the Person or Persons entitled thereto.

     Section 5.7     Limitation on Suits.

     No Holder of any Debenture shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless

          (a)     such Holder has previously given written notice to the Trustee of a continuing
Indenture Event of Default;

          (b)     the Holders of at least a majority in aggregate principal amount of the Outstanding
Debentures shall have made written request to the Trustee to institute proceedings in respect of
such Indenture Event of Default in its own name as Trustee hereunder;

          (c)     such Holder or Holders have offered to the Trustee reasonable indemnity against the costs,
expenses and liabilities to be incurred in compliance with such request;

          (d)     the Trustee for 60 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and

          (e)     no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the Outstanding Debentures;

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     it being understood and intended that no one or more Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all the Holders. The limitations
specified in (a) through (e) above shall not apply to a suit initiated by a Holder of a Debenture
for enforcement of payment of the principal of or interest (including any Additional Interest) on
such Debenture on or after the respective due dates of such payments expressed in such Debenture.

     Section 5.8     Unconditional Right of Holders To Receive Principal and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Debenture shall have
the right, which is absolute and unconditional, to receive payment of the principal of and (subject
to Section 3.7) interest (including any Additional Interest) on such Debenture on the respective
Stated Maturities expressed in such Debenture (or, in the case of redemption, on the Redemption
Date) and to institute suit to compel the Company to make any such payment that is not made when
due, and such right shall not be impaired without the consent of such Holder.

     Section 5.9     Restoration of Rights and Remedies.

     If the Trustee or any Holder or any holder of Trust Preferred Securities has instituted any
proceeding to enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to the Trustee, such
Holder or such holder of Trust Preferred Securities, then and in every such case, subject to any
determination in such proceeding, the Company, MuniMae, the Trustee, the Holders and the holders of
Trust Preferred Securities shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee, the Holders and the holders of
Trust Preferred Securities shall continue as though no such proceeding had been instituted.

     Section 5.10     Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Debentures in the last paragraph of Section 3.6, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

     Section 5.11     Delay or Omission Not Waiver.

     No delay or omission of the Trustee, any Holder or any holder of any Trust Preferred Security
to exercise any right or remedy accruing under this Indenture shall impair any such right or remedy
or constitute a waiver of any Indenture Event of Default or an acquiescence therein. Every right
and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from
time to time, and as often as may be deemed expedient, by the Trustee, the Holders and the holders
of the Trust Preferred Securities, as the case may be.

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     Section 5.12     Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Debentures have the right to
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on the Trustee; provided, that (1) such
direction shall not be in conflict with any rule of law or with this Indenture; (2) the Trustee may
take any other action deemed proper by the Trustee that is not inconsistent with such direction;
and (3) subject to the provisions of Section 6.1, the Trustee shall have the right to decline to
follow such direction if a Responsible Officer or Officers of the Trustee shall, in good faith,
determine that the proceeding so directed would be unjustly prejudicial to the Holders not joining
in any such direction or would involve the Trustee in personal liability.

     Section 5.13     Waiver of Past Defaults.

     Subject to Section 9.2 hereof, the Holders of at least a majority in principal amount of the
Outstanding Debentures may on behalf of the Holders of all the Debentures waive any past default
hereunder and its consequences, except a default (1) in the payment of the principal, or interest
(including any Additional Interest) on any Debenture (unless such default has been cured and a sum
sufficient to pay all matured installments of interest (including any Additional Interest) and
principal due otherwise than by acceleration has been deposited with the Trustee); or (2) in
respect of a covenant or provision hereof which under Article IX cannot be modified or amended
without the consent of the Holder of each Outstanding Debenture affected (which default may be
waived only with the consent of the Holders of all Outstanding Debentures); provided, however, that
if the Debentures are held by the Trust or a trustee of the Trust, such waiver shall not be
effective until the holders of a majority in liquidation amount of Trust Securities shall have
consented to such waiver; provided, further, that if the consent of the Holder of each Outstanding
Debenture is required, such waiver shall not be effective until each holder of the Trust Securities
shall have consented to such waiver.

     Upon any such waiver, such default shall cease to exist, and any Indenture Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

     Section 5.14     Undertaking For Costs.

     In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, that neither this Section nor the Trust Indenture Act shall be deemed to
authorize any court to require such an undertaking or to make such an assessment in any suit
instituted by the Company or the Trustee or in any suit for the enforcement of the right to receive
the principal or interest (including any Additional Interest) on any Debenture.

     Section 5.15     Waiver of Stay or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension of law wherever enacted, now or at any time hereafter in force, that may affect
the covenants or the performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that
it will not hinder, delay or

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impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law had been enacted.

     Section 5.16     Enforcement by Holders of Trust Preferred Securities.

     If the Property Trustee fails to enforce the terms of the Debentures after a holder of Trust
Preferred Securities has made a written request that it do so in accordance with the terms of the
Declaration, such holder of Trust Preferred Securities may, to the fullest extent permitted by
applicable law in view of the rights accorded the holders of Trust Preferred Securities by this
Indenture and the Declaration, institute a legal proceeding against the Company to enforce the
Property Trustee’s rights under the Debentures without first instituting any legal proceeding
against the Property Trustee or any other Person. Notwithstanding the foregoing, if a Declaration
Event of Default has occurred and is continuing and such event is attributable to the failure of
the Company to pay interest (including any Additional Interest), principal on the Debentures on the
date such interest, principal is due (or in the case of redemption on the redemption date), the
Company acknowledges that, in such event, a holder of Trust Preferred Securities may, to the
fullest extent permitted by applicable law in view of the rights accorded the holders of Trust
Preferred Securities by this Indenture and the Declaration, institute a Direct Action for payment
to such holder of the principal, interest then due on Debentures having a principal amount equal to
the aggregate liquidation amount of the Trust Preferred Securities of such holder.

     The Company may not amend the Indenture to remove the foregoing right to bring a Direct Action
without the prior written consent of all the holders of Trust Preferred Securities.
Notwithstanding any payment made to such holder of Trust Preferred Securities by the Company in
connection with a Direct Action, the Company shall remain obligated to pay the principal of and
interest (including any Additional Interest) on the Debentures held by the Trust or the Property
Trustee and the Company shall be subrogated to the rights of the holders of such Trust Preferred
Securities with respect to payments on the Trust Preferred Securities to the extent of any payments
made by the Company to such holder in any Direct Action. The holders of Trust Preferred Securities
will not be able to exercise directly any other remedy available to the Holders of the Debentures.

ARTICLE VI

THE TRUSTEE

     Section 6.1     Certain Duties and Responsibilities.

     The duties and responsibilities of the Trustee shall be as provided by Section 315 of the
Trust Indenture Act, which Section 315 shall apply hereto. Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity against such risk or liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee shall be subject to
the provisions of this Section.

     Section 6.2     Notice of Defaults.

     The Trustee shall give the Holders notice of any default hereunder as and to the extent
provided by Section 315(b) the Trust Indenture Act; provided, however, that in the case of any
default of the character specified in Section 5.1(a), no such notice to Holders shall be given
until at least 30 days after

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the occurrence thereof. For the purpose of this Section, the term
“default” means any event that is, or after notice or lapse of time or both would become, an
Indenture Event of Default.

     Section 6.3     Certain Rights of Trustee.

     Subject to the provisions of Section 6.1:

          (a)     the Trustee may rely and shall be 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 or presented by the proper party or parties;

          (b)     any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;

          (c)     whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officers’ Certificate;

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

          (e)     the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee adequate security and indemnity, reasonably
satisfactory to the Trustee, against the costs, expenses and liabilities that might be incurred by
it in compliance with such request or direction;

          (f)     the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to reasonable examination of the books, records and premises of
the Company, personally or by agent or attorney;

          (g)     the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the 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; and

          (h)     the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by
it in good faith, without negligence or willful misconduct, and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by this Indenture.

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     Section 6.4     Not Responsible for Recitals or Issuance of Debentures.

     The recitals contained herein and in the Debentures, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Debentures. The Trustee shall not be accountable for the
use or application by the Company of the Debentures or the proceeds thereof.

     Section 6.5     May Hold Debentures.

     The Trustee, any Paying Agent, any Registrar or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of Debentures and, subject to
Sections 6.8 and 6.13, may otherwise deal with the Company with the same rights it would have if it
were not Trustee, Paying Agent, Registrar or such other agent.

     Section 6.6     Money Held in Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Company.

     Section 6.7     Compensation and Reimbursement.

     The Company agrees:

          (a)     to pay to the Trustee from time to time such reasonable compensation as the Company
and the Trustee shall from time to time agree in writing for all services rendered by it hereunder;

          (b)     except as otherwise expressly provided herein, to reimburse the Trustee upon its request
for all reasonable expenses, fees, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (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 bad faith; and

          (c)     to indemnify each of the (i) Trustee and any predecessor Trustee, (ii) any Affiliate of
the Trustee or any predecessor Trustee, and (iii) any officer, director, shareholder, member,
partner, employee, representative, custodian, nominee or agent of the Trustee or any
predecessor Trustee (each of the Persons in (i) through (iii), including the Trustee and any
predecessor Trustee in their respective individual and trustee capacities, being referred to as a
“Fiduciary Indemnified Person”) for, and to hold each Fiduciary Indemnified Person harmless
against, any and all loss, liability, claim, action, suit, cost or expense of any kind and nature
whatsoever, including taxes (other than taxes based on the income of such Fiduciary Indemnified
Person), incurred without negligence or bad faith on its part, arising out of or in connection with
the acceptance or administration or the trust or trusts hereunder, including the costs and expenses
(including reasonable legal fees and expenses) of defending itself against or investigating any
claim or liability in connection with the exercise or performance of any of its powers or duties
hereunder. When the Trustee incurs expenses or renders services in connection with an Indenture
Event of Default specified in Section 5.1(e) or Section 5.1(f), the expenses (including the
reasonable legal fees and expenses of its counsel) and the compensation for the services are
intended to constitute expenses of administration under any applicable federal or state bankruptcy,
insolvency or other similar law.

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

     Section 6.8     Disqualification; Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

     Section 6.9     Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder that shall (a) be a corporation organized and
doing business under the laws of the United States of America or of any state or territory or the
District of Columbia, authorized under such laws to exercise corporate trust powers and subject to
supervision or examination by federal, state, territorial or District of Columbia authority, (b) be
a Person that is eligible pursuant to the Trust Indenture Act to act as such, and (c) have a
combined capital and surplus of at least $50,000,000. If such Person publishes reports of condition
at least annually, pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

     Section 6.10     Resignation and Removal; Appointment of Successor.

          (a)     No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee under Section 6.11.

          (b)     The Trustee may resign at any time by giving written notice thereof to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within
60 days after the giving of such notice of removal, the Trustee to be removed may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

          (c)     The Trustee may be removed at any time by Act of the Holders of a majority in principal
amount of the Outstanding Debentures, delivered to the Trustee and to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee
within 60 days after the giving of such notice of resignation, the resigning Trustee may petition
any court of competent jurisdiction for the appointment of a successor Trustee.

          (d)     If at any time: (1) the Trustee shall fail to comply with Section 6.8 after written
request therefor by the Company or by any Holder who has been a bona fide Holder of a Debenture for
at least six months, or (2) the Trustee shall cease to be eligible under Section 6.9 and shall fail
to resign after written request therefor by the Company or by any such Holder, or (3) the Trustee
shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public officer shall take charge or control of
the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, (i) the Company by Board Resolution may remove the Trustee, or
(ii) subject to Section 5.14, any Holder who has been a bona fide Holder of a Debenture for at
least six months may, on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

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          (e)     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee. If, within six months after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of
the Holders of a majority in principal amount of the Outstanding Debentures delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee shall have been so appointed by the Company or
the Holders and accepted appointment in the manner hereinafter provided, any Holder who has been a
bona fide Holder of a Debenture for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the appointment of a successor
Trustee.

          (f)     The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor Trustee to all Holders in the manner provided in Section 1.6. Each
notice shall include the name of the successor Trustee and the address of its Corporate Trust
Office.

     Section 6.11     Acceptance of Appointment by Successor.

     Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; provided, that on request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder. Upon request of any such successor Trustee, the
Company shall execute any and all instruments required to more fully and certainly vest in and
confirm to such successor Trustee all such rights, powers and trusts.

     No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article.

     Section 6.12     Merger, Conversion, Consolidation or Succession to Business.

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation 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. In
case any Debentures shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Debentures so authenticated with the same effect as if
such successor Trustee had itself authenticated such Debentures.

     Section 6.13     Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Debentures), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor).

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ARTICLE VII

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

     Section 7.1     Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee (a) within 14 days after each
record date for payment of interest, a list, in such form as the Trustee may reasonably require, of
the names and addresses of the Holders, as of such record date, and (b) at any other time, within
30 days of receipt by the Trust of a written request for a list of Holders as of a date no more
than 14 days before such list of Holders is given to the Trustee; excluding from any such list
names and addresses received by the Trustee in its capacity as Registrar.

     Section 7.2     Preservation of Information; Communications to Holders.

          (a)     The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 7.1 and the names and addresses of Holders received by the Trustee in its capacity as
Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.1 upon
receipt of a new list so furnished.

          (b)     The rights of Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Debentures, and the corresponding rights and duties of the Trustee,
shall be as provided by Section 312(b) of the Trust Indenture Act.

          (c)     Every Holder of Debentures, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to this Indenture.

     Section 7.3     Reports by Trustee.

          (a)     Within 60 days after December 31 of each year, commencing December 31, 2004, the Trustee
shall transmit by mail to Holders such reports concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act in the manner provided pursuant
thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within 60
days after each May 15 following the date of this Indenture, deliver to Holders a brief
report, dated as of such May 15, that complies with the provisions of such Section 313(a).

     Section 7.4     Reports by Company.

     In order to render the Trust Preferred Securities eligible for resale pursuant to Rule
144A under the Securities Act, while any Trust Preferred Securities remain outstanding, the Company
shall file with the Trustee and will make available, upon request, to any Holder or prospective
purchaser of Trust Preferred Securities information specified in Rule 144A(d)(4), unless the
Company furnishes information to the Commission pursuant to Section 13 or 15(d) of the Exchange
Act. In addition, and unless the Company furnishes information to the Commission pursuant to
Section 13 or 15(d) of the Exchange Act, the Company shall file with the Trustee and make available
to Holders on a reasonably timely basis annual reports containing audited financial statements
certified by the Company’s independent auditors and quarterly unaudited financial statements, in
each case, prepared in accordance with generally accepted accounting principles.

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     Delivery of such reports, information and documents to the Trustee is for informational purposes
only and the Trustee’s receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).

     The Company shall also provide to the Trustee on a timely basis such information as the Trustee
requires to enable the Trustee to prepare and file any form required to be submitted by the Company
with the U.S. Internal Revenue Service and the Holders of the Debentures relating to original issue
discount, including, without limitation, Form 1099-OID or any successor form.

ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     Section 8.1     Company May Consolidate, etc., Only on Certain Terms.

     The Company shall not consolidate with or merge with or into any other Person or, directly or
indirectly, convey, transfer or lease all or substantially all of its properties and assets on a
consolidated basis to any Person, unless:

          (a)     the Person formed by such consolidation or into which the Company is merged or the
Person that acquires by conveyance, transfer or lease, all or substantially all of the properties
and assets of the Company on a consolidated basis shall be a corporation, partnership or trust,
shall be organized and validly existing under the laws of the United States of America, any state
thereof or the District of Columbia and shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, the
due and punctual payment of the principal of and interest (including any Additional Interest) on
all the Debentures and the performance or observance of every covenant of this Indenture on the
part of the Company to be performed or observed;

          (b)     immediately after giving effect to such transaction and treating any indebtedness that
becomes an obligation of the Company or any of its Subsidiaries as a result of such transaction as
having been incurred by the Company or such Subsidiary at the time of such transaction, no
Indenture
Event of Default, and no event that, after notice or lapse of time or both, would become an
Indenture Event of Default, shall have occurred and be continuing; and

          (c)     the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease, and if a
supplemental indenture is required in connection with such transaction, such supplemental
indenture, comply with this Article and that all conditions precedent herein provided for relating
to such transaction have been complied with.

     This Section shall only apply to a merger or consolidation in which the Company is not the
surviving corporation and to conveyances, leases and transfers by the Company as transferor or
lessor.

     Section 8.2     Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company with or into, any other
Person or any conveyance, transfer or lease of all or substantially all the properties and assets
of the

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Company on a consolidated basis in accordance with Section 8.1, the successor Person formed
by such consolidation or into which the Company is merged or to which such conveyance, transfer or
lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor Person had been named as
the Company herein, and thereafter the predecessor Person shall be relieved of all obligations and
covenants under this Indenture and the Debentures.

     Such successor Person may cause to be signed, and may issue either in its own name or in the name
of the Company, any or all of the Debentures issuable hereunder that theretofore shall not have
been signed by the Company and delivered to the Trustee; and, upon the written order of such
successor Person instead of the Company and subject to all the terms, conditions and limitations in
this Indenture prescribed, the Trustee shall authenticate and shall make available for delivery any
Debentures that previously shall have been signed and delivered by the officers of the Company to
the Trustee for authentication pursuant to such provisions and any Debentures that such successor
Person thereafter shall cause to be signed and delivered to the Trustee on its behalf for the
purpose pursuant to such provisions. All the Debentures so issued shall in all respects have the
same legal rank and benefit under this Indenture as the Debentures theretofore or thereafter issued
in accordance with the terms of this Indenture as though all of such Debentures had been issued at
the date of the execution hereof.

     In case of any such consolidation, merger, sale, conveyance or lease, such changes in phraseology
and form may be made in the Debentures thereafter to be issued as may be appropriate.

ARTICLE IX

SUPPLEMENTAL INDENTURES

     Section 9.1     Supplemental Indentures Without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more indentures supplemental
hereto, in form reasonably satisfactory to the Trustee, for any of the following purposes:

          (a)     to evidence the succession of another Person to the Company and the assumption by any
such successor of the covenants of the Company herein and in the Debentures;

          (b)     to add to the covenants of the Company for the benefit of the Holders, or to surrender any
right or power herein conferred upon the Company;

          (c)     to cure any ambiguity, to correct or supplement any provision herein that may be defective
or inconsistent with any other provision herein, or to make any other provisions with respect to
matters or questions arising under this Indenture that shall not be inconsistent with the
provisions of this Indenture; provided, that such action pursuant to this clause shall not
adversely affect the interests of the Holders of the Debentures in any material respect or, so long
as any of the Trust Preferred Securities shall remain outstanding, the holders of the Trust
Preferred Securities (a supplemental indenture specifying procedures to deal with fractional
interests in Debentures in connection with any redemption of fewer than all the outstanding
Debentures will not be deemed to have any such material adverse effect);

          (d)     to make provision for transfer procedures, certification, the form of restricted
securities legends, if any, to be placed on Debentures, and all other matters required pursuant to
Section 3.5(b) or otherwise necessary, desirable or appropriate in connection with the issuance of

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Debentures to holders of Trust Preferred Securities in the event of a distribution of Debentures by
the Trust upon the occurrence of a Dissolution Event; or

          (e)     to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Debentures and to add to or change any of the provisions of this Indenture as
shall be necessary to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, pursuant to the requirements of Section 6.11(b).

     Section 9.2     Supplemental Indentures with Consent of Holders.

     With the consent of the Holders of at least a majority in principal amount of the Outstanding
Debentures, by Act of said Holders delivered to the Company and the Trustee, the Company, when
authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the
Holders under this Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Debenture affected thereby:

          (a)     extend the Stated Maturity of the principal of, or any installment of interest
(including any Additional Interest) on, any Debenture, or reduce the principal amount thereof, or
reduce the rate or extend the time for payment of interest thereon, or change the place of payment
where, or the coin or currency in which, any Debenture or interest thereon is payable, or impair
the right to institute suit for the enforcement of the right to receive any such payment on or
after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date),
or modify the provisions of this Indenture with respect to the subordination of the Debentures in a
manner adverse to the Holders;

          (b)     reduce the percentage in principal amount of the Outstanding Debentures, the consent of
whose Holders is required for any such supplemental indenture, or the consent of whose Holders is
required for any waiver (of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences) provided for in this Indenture; or

          (c)     modify any of the provisions of this Section, Section 5.13 or Section 10.5, except to
increase any such percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding Debenture affected
thereby;

provided, that if the Debentures are held by the Trust or a trustee of the Trust, such
supplemental indenture shall not be effective until the holders of a majority in liquidation amount
of Trust Securities shall have consented to such supplemental indenture; provided, further, that if
the consent of the Holder of each Outstanding Debenture is required, such supplemental indenture
shall not be effective until each holder of the Trust Securities of the Trust shall have consented
to such supplemental indenture.

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

     The Company may, but shall not be obligated to, fix a record date for the purpose of determining
the Persons entitled to consent to any indenture supplemental hereto. If a record date is fixed,
the Holders on such record date, or their duly designated proxies, and only such Persons, shall be
entitled to consent to such supplemental indenture, whether or not such Holders remain Holders
after such record date; provided, that unless such consent shall have become effective by virtue of
the requisite percentage

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having been obtained prior to the date that is 90 days after such record
date, any such consent previously given shall automatically and without further action by any
Holder be canceled and of no further effect.

     Section 9.3     Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture and that all conditions precedent thereto have been met.
The Trustee may, but shall not be obligated to, enter into any such supplemental indenture that
affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

     Section 9.4     Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Debentures theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby. No such supplemental indenture shall directly or
indirectly modify the provisions of Article XII in any manner that might terminate or impair the
rights of the holders of the Senior Debt.

     Section 9.5     Reference in Debentures to Supplemental Indentures.

     Debentures authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Debentures so modified as to conform, in the opinion of the Trustee
and the Company, to any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Debentures.

ARTICLE X

COVENANTS; REPRESENTATIONS AND WARRANTIES

     Section 10.1     Payment of Principal and Interest.

     The Company will duly and punctually pay the principal of and interest (including any
Additional Interest) on the Debentures in accordance with the terms of the Debentures and this
Indenture.

     Section 10.2     Maintenance of Office or Agency.

     The Company will maintain in the United States an office or agency where Debentures may be
presented or surrendered for payment, where Debentures may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in respect of the
Debentures and this Indenture may be served. The Company initially appoints the Trustee, acting
through its Corporate Trust Office, as its agent for said purposes. The Company will give prompt
written notice to the Trustee of any change in the location of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of

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the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and demands.

     The Company may also from time to time designate one or more other offices or agencies in the
United States where the Debentures may be presented or surrendered for any or all such purposes and
may from time to time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in the United States for such purposes. The Company will give prompt written notice to the
Trustee of any such designation or rescission and of any change in the location of any such other
office or agency.

     Section 10.3     Money for Debenture Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent, it will, on or before each due
date of the principal of or interest (including any Additional Interest) on any of the Debentures,
segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay
the principal and interest (including any Additional Interest) so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify
the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents, it will, prior to each due date of the
principal of or interest (including any Additional Interest) on any Debentures, deposit with a
Paying Agent a sum sufficient to pay such amount, such sum to be held as provided by the Trust
Indenture Act, and (unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.

     The Company will cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section, that such Paying Agent will (i) comply with the provisions of the Trust
Indenture Act applicable to it as a Paying Agent all of which provisions shall apply to this
Indenture and (ii) during the continuance of any default by the Company (or any other obligor
upon the Debentures) in the making of any payment in respect of the Debentures, upon the written
request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent as
such.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the
Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the
Trustee upon the same terms as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for
the payment of the principal of or interest (including any Additional Interest) on any Debenture
and remaining unclaimed for two years after such principal or interest has become due and payable
shall (unless otherwise required by mandatory provision of applicable escheat or abandoned or
unclaimed property law) be paid to the Company on Company Request, or if then held by the Company
shall (unless otherwise required by mandatory provision of applicable escheat or abandoned or
unclaimed property law) be discharged from such trust; and the Holder of any such Debenture shall
thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease.

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     Section 10.4     Statement by Officers as to Default.

     The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers’ Certificate covering such fiscal year
stating whether or not, to the best knowledge of the signers thereof, the Company is in default in
the performance and observance of any of the material terms, provisions and conditions of this
Indenture (without regard to any period of grace or requirement of notice provided hereunder) and,
if the Company shall be in default, specifying all such defaults and the nature and status thereof
of which they may have knowledge.

     Section 10.5     Additional Covenants.

          (a)     The Company covenants that so long as the Debentures are outstanding, if at any time (i)
the Debentures are held by the Trust and the Company shall have defaulted with respect to its
payment of any obligations under the Guarantee and such default shall be continuing, (ii) there
shall have occurred and be continuing an Indenture Event of Default or (iii) there shall have
occurred and be continuing an Indenture Event of Default with the giving of notice or the lapse of
time or both, would constitute an Indenture Event of Default, then the Company shall not, and shall
cause each of its Subsidiaries not to,

                    (i)     declare or pay dividends on, or make a distribution with respect to, or redeem or purchase
or acquire, or make a liquidation payment with respect to, any of its capital stock or other equity
securities other than (A) any purchase or acquisition of Common Stock (or Common Stock equivalents)
in connection with the satisfaction by the Company or the Subsidiary of its obligations under any
employee benefit plan or the satisfaction by the Company or the Subsidiary of its obligations
pursuant to any contract or security requiring the Company or the Subsidiary to purchase Common
Stock (or Common Stock equivalents), (B) any purchase of Common Stock (or Common Stock equivalents)
from an officer or employee (or a Person performing similar functions) of the Company or any of its
Subsidiaries upon termination of employment or retirement, (C) as a result of a reclassification of
the capital stock or other equity securities of the Company or any of its Subsidiaries or the
exchange or conversion of one class or series of capital stock or other equity securities for
another class or series of
capital stock or other equity securities of the Company or any of its Subsidiaries, (D) any
dividend or distribution of Common Stock on Common Stock, (E) any purchase of fractional interests
in capital stock or other equity securities of the Company or any of its Subsidiaries pursuant to
the conversion or exchange provisions of such capital stock or other equity security being
converted or exchanged, (F) any declaration or payment of a dividend in connection with the
implementation of a Rights Plan or the redemption or repurchase of any rights distributed pursuant
to a Rights Plan, and (G) any dividend or distribution by a Subsidiary of the Company to the
Company or another Subsidiary of the Company;

                    (ii)     make any payment of principal of, or interest on, or repay, repurchase or redeem, any
debt securities issued by the Company that rank pari passu with or junior to the Debentures; or

                    (iii)     make any guarantee payments with respect to any guarantee (other than the MFH Guarantee)
by the Company of any debt securities of any of its Subsidiaries, if such guarantee ranks pari
passu with or junior to the Debentures.

          (b)     The Company also covenants and agrees that, so long as the Debentures are outstanding and
a Dissolution Event shall not have occurred (i) it shall directly or indirectly maintain 100%
ownership of the Trust Common Securities; provided, however, that any permitted successor of the
Company hereunder may succeed to the Company’s ownership of such Trust Common Securities and (ii)
it shall use its reasonable efforts, consistent with the terms and provisions of the Declaration,
to cause the

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Trust (x) to remain a statutory trust under the laws of the State of Delaware, except
in connection with the distribution of the Debentures to the holders of Trust Securities in
liquidation of the Trust upon the occurrence of a Dissolution Event, or certain mergers,
consolidations or amalgamations, each as permitted by the Declaration, and (y) to otherwise
continue to be classified as a grantor trust for U.S. federal income tax purposes.

     Section 10.6     Payment of Expenses of the Trust.

     In connection with the offering, sale and issuance of the Debentures to the Property Trustee
in connection with the sale of the Trust Securities by the Trust, the Company shall:

          (a)     pay for all costs, fees and expenses of the Trust relating to the offering, sale and
issuance of the Debentures, including compensation of the Trustee under the Indenture in accordance
with the provisions of Section 6.7 of this Indenture;

          (b)     be responsible for and pay for all debts and obligations (other than with respect to the
Trust Securities) of the Trust, pay for all costs and expenses of the Trust (including, but not
limited to, costs and expenses relating to the organization of the Trust, the offering, sale and
issuance of the Trust Securities, the fees and expenses of the Property Trustee, the costs and
expenses relating to the operation of the Trust, including without limitation, costs and expenses
of accountants, attorneys, statistical or bookkeeping services, expenses for printing and engraving
and computing or accounting equipment, paying agent(s), registrar(s), transfer agent(s),
duplicating, travel and telephone and other telecommunications expenses and costs and expenses
incurred in connection with the acquisition, financing, and disposition of Trust assets); and

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

     The obligation of the Company to pay all debts, obligations, costs, fees and expenses of the
Trust (other than with respect to the Trust Securities) shall constitute additional indebtedness
hereunder and shall survive the satisfaction and discharge of this Indenture.

ARTICLE XI

REDEMPTION OF DEBENTURES

     Section 11.1     Redemption.

          (a)     The Debentures may be redeemed, at the election of the Company, in whole or in part, in
cash at the Redemption Price, at any time and from time to time on May 5, 2014. If the Debentures
are redeemed in part, the Debentures to be redeemed shall be selected by the Trustee on a pro rata
basis from the Outstanding Debentures not previously called for redemption.

          (b)     The Debentures may be redeemed, at the election of the Company, in whole (but not in
part), in cash at the Redemption Price, at any time within 90 days following the occurrence and
continuation of a Redemption Tax Event; provided, however, that if at the time, there is available
to the Company the opportunity to eliminate, within such 90-day period, the Redemption Tax Event by
taking some ministerial action, such as filing a form or making an election, or pursuing some other
similar reasonable measure, that in the reasonable judgment of the Company has and will cause no
adverse effect on the Trust, the Holders of the Trust Securities or the Company and will involve no
material cost, then

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the Company shall effect such ministerial action and eliminate such Redemption
Tax Event in lieu of redemption of the Debentures.

     Section 11.2     Applicability of Article.

     Redemption of Debentures at the election of the Company, as permitted by the provisions of
paragraph (a) and (b) of Section 11.1, shall be made in accordance with such provisions and this
Article.

     Section 11.3     Election to Redeem; Notice to Trustee.

     The election of the Company to redeem Debentures pursuant to paragraph (a) or (b) of Section
11.1 shall be evidenced by a Board Resolution. In case of any such elective redemption, the
Company shall fix a Redemption Date complying with any applicable time limitation in Section 11.1
and, at least 30 days and no more than 60 days prior to the Redemption Date so fixed (unless a
shorter notice shall be satisfactory to the Trustee), shall notify the Trustee in writing of such
Redemption Date and of the principal amount of Debentures to be redeemed and shall provide the
Trustee a copy of the notice of redemption to be given to Holders of Debentures to be redeemed
pursuant to Section 11.4 and, in the case of an elective redemption, a copy of the applicable Board
Resolution.

     Section 11.4     Notice of Redemption.

     Notice of redemption shall be given to each Holder of Debentures to be redeemed in the manner
provided in Section 1.6 at least 30 but not more than 60 days prior to the Redemption Date.

     All notices of redemption shall identify the Debentures to be redeemed (including, if relevant,
CUSIP number) and shall state:

          (a)     the Redemption Date,

          (b)     the applicable Redemption Price,

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

          (d)     that on the Redemption Date the Redemption Price will become due and payable upon each
such Debenture to be redeemed and that interest thereon (including any Additional Interest) will
cease to accrue on and after said date, and

          (e)     the place or places where such Debentures are to be surrendered for payment of the
Redemption Price.

     Notice of redemption of Debentures to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company.

     Section 11.5     Deposit of Redemption Price.

     Prior to 10:00 a.m. New York City time on the Redemption Date specified in the notice of
redemption given as provided in Section 11.4, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as

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provided in Section 10.3) an amount of money sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date) accrued interest (including any
Additional Interest) on, all the Debentures that are to be redeemed on that date.

     Section 11.6     Debentures Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Debentures so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date, unless the Company shall default in the payment of the Redemption Price or
accrued interest (including any Additional Interest), such Debentures shall cease to bear interest.
Upon surrender of any such Debenture for redemption in accordance with said notice, such Debenture
shall be paid by the Company (through the Trustee or the Paying Agent) at the Redemption Price,
together with accrued interest (including any Additional Interest) to the Redemption Date;
provided, however, any installment of interest whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Debentures, or one or more Predecessor
Debentures, registered as such at the close of business on the Regular Record Date for such
installment of interest according to the terms and the provisions of Section 3.7.
Upon surrender of any Debenture redeemed in part only, the Company shall execute and the Trustee
shall authenticate and make available for delivery to the Holder thereof, at the expense of the
Company, a new Debenture or Debentures, of authorized denominations, in aggregate principal amount
equal to the unredeemed portion of, and otherwise having the same terms as, the Debenture so
surrendered. If a Global Debenture is so surrendered, such new Debenture will also be a new Global
Debenture.
If any Debenture called for redemption shall not be so paid upon surrender thereof for redemption,
the principal shall, until paid, bear interest from the Redemption Date at the rate borne by the
Debenture.

     Section 11.7     No Sinking Fund.

     The Debentures are not entitled to the benefit of any sinking fund.

ARTICLE XII

SUBORDINATION OF DEBENTURES

     Section 12.1     Agreement to Subordinate.

     The Company covenants and agrees, and each Holder of a Debentures by such Holder’s acceptance
thereof likewise covenants and agrees, that all Debentures shall be issued subject to the
provisions of this Article XII; and each Holder of a Debenture, whether upon original issue or upon
transfer or assignment thereof, accepts and agrees to be bound by such provisions. The obligations
of the Company under the Debentures will constitute unsecured obligations of the Company and will
rank
(i) senior to the Company’s Common Stock and (ii) subordinated and junior in right of payment to
the prior payment in full of all Senior Debt; provided, however, that no provision of this Article
XII shall prevent the occurrence of any default or Indenture Event of Default hereunder.

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     Section 12.2     Default on Senior Debt.

     In the event of any default by the Company in the payment of principal, interest or any other
payment due on any Senior Debt continuing beyond the period of grace, if any, specified in the
instrument evidencing such Senior Debt, unless and until such default shall have been cured or
waived or shall have ceased to exist, and in the event that the maturity of any Senior Debt has
been accelerated because of a default, unless and until all amounts payable with respect to such
accelerated Senior Debt have been paid in full, then no payment shall be made by the Company with
respect to the principal of (including redemption payments, if any) or interest (including any
Additional Interest) on the Debentures.

     In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee when
such payment is prohibited by the preceding paragraph of this Section 12.2, such payment shall be
held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior
Debt or their respective representatives, or to the trustee or trustees under any indenture
pursuant to which any of such Senior Debt may have been issued, as their respective interests may
appear, but only to the extent that the holders of the Senior Debt (or their representative or
representatives or a trustee) notify the Trustee in writing within 90 days of such payment of the
amounts then due and owing on the Senior Debt and only the amounts specified in such notice to the
Trustee shall be paid to the holders of Senior Debt.

     Section 12.3     Liquidation; Dissolution; Bankruptcy.

     Upon any payment by the Company or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any dissolution or winding up
or liquidation or reorganization of the Company, whether voluntary or involuntary, or in
bankruptcy, insolvency, receivership or other proceedings, all principal of, and interest due or to
become due on, all Senior Debt must be paid in full before any payment is made on account of the
principal of, or interest (including any Additional Interest) on, the Debentures; and upon any such
dissolution or winding up or liquidation or reorganization, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in cash, property or
securities, to which the Holders of the Debentures or the Trustee would be entitled, except for the
provisions of this Article XII, shall be paid by the Company or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by
the Holders of the Debentures or by the Trustee under this Indenture if received by them or it,
directly to the holders of Senior Debt (pro rata to such holders on the basis of the respective
amounts of Senior Debt held by such holders, as calculated by the Company) or their representative
or representatives, or to the trustee or trustees under any indenture pursuant to which any
instruments evidencing Senior Debt may have been issued, as their respective interests may appear,
to the extent necessary to pay the Senior Debt in full, in money or money’s worth, after giving
effect to any concurrent payment or distribution to or for the holders of Senior Debt, before any
payment or distribution is made to the Holders of Debentures or to the Trustee. In the event that,
notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, prohibited by the foregoing, shall be received
by the Trustee or the Holders of the Debentures before all Senior Debt is paid in full, or
provision is made for such payment in money in accordance with its terms, such payment or
distribution shall be held in trust for the benefit of and shall be paid over or delivered to the
holders of Senior Debt or their representative or representatives, or to the trustee or trustees
under any indenture pursuant to which any instruments evidencing Senior Debt may have been issued,
as their respective interests may appear, as calculated by the Company, for application to the
payment of all Senior Debt remaining unpaid to the extent necessary to pay such Senior Debt in full
in money in accordance with its terms, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Debt.

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     For purposes of this Article XII, the words, “cash, property or securities” shall not be deemed to
include shares of stock of the Company as reorganized or readjusted, or securities of the Company
or any other corporation provided for by a plan of reorganization or readjustment, the payment of
which is subordinated at least to the extent provided in this Article XII with respect to the
Debentures to the payment of all Senior Debt that may at the time be outstanding; provided, that
(i) such Senior Debt is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment, and (ii) the rights of the holders of such Senior Debt are not,
without the consent of such holders, altered by such reorganization or readjustment. The
consolidation of the Company with, or the merger of the Company with or into, another Person or the
liquidation or dissolution of the Company following the conveyance, transfer or lease of all or
substantially all its properties and assets on a consolidated basis to another Person upon the
terms and conditions provided for in Article VIII hereof shall not be deemed a dissolution, winding
up, liquidation or reorganization for the purposes of this Section 12.3 if such other Person shall,
as a part of such consolidation, merger, conveyance, transfer or lease, comply with the conditions
stated in Article VIII hereof. Nothing in Section 12.2 or in this Section 12.3 shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 6.7 hereof.

     Section 12.4     Subrogation.

     Subject to the payment in full of all Senior Debt, the rights of the Holders of the Debentures
shall be subrogated to the rights of the holders of Senior Debt to receive payments or
distributions of cash, property or securities of the Company, as the case may be, applicable to the
Senior Debt until the principal of and interest (including any Additional Interest) on the
Debentures shall be paid in full; and, for the purposes of such subrogation, no payments or
distributions to the holders of Senior Debt of any cash, property or securities to which the
Holders of the Debentures or the Trustee would be entitled except for the provisions of this
Article XII, and no payment pursuant to the provisions of this Article XII to or for the benefit of
the holders of Senior Debt by Holders of the Debentures or the Trustee, shall, as between the
Company, its creditors other than holders of Senior Debt, and the Holders of the Debentures, be
deemed to be a payment by the
Company to or on account of the Debentures. It is understood that the provisions of this Article
XII are and are intended solely for the purposes of defining the relative rights of the Holders of
the Debentures, on the one hand, and the holders of Senior Debt, on the other hand.

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

     Upon any payment or distribution of assets of the Company referred to in this Article XII, the
Trustee, subject to the provisions of Section 6.3, and the Holders of the Debentures, shall be
entitled to rely upon any order or decree made by any court of competent jurisdiction in which such
dissolution, winding up, liquidation or reorganization proceedings are pending, or a certificate of
the receiver, trustee in bankruptcy, liquidation trustee, agent or other Person making such payment
or distribution, delivered to the Trustee or to the Holders of the Debentures, for the purposes of
ascertaining the Persons entitled to participate in such distribution, the holders of Senior Debt
and other indebtedness of the Company, as the

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case may be, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article XII.

     Section 12.5     Trustee to Effectuate Subordination.

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

     Section 12.6     Notice by the Company.

     The Company shall give prompt written notice to a Responsible Officer of the Trustee of any
fact of which the Company has actual knowledge as a result of which the making of any payment of
monies to or by the Trustee in respect of the Debentures would be prohibited by the provisions of
this Article XII. Notwithstanding the provisions of this Article XII or any other provision of
this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts as a
result of which the making of any payment of monies to or by the Trustee in respect of the
Debentures would be prohibited by the provisions of this Article XII, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof at the Corporate
Trust Office of the Trustee from the Company or a holder or holders of Senior Debt or from any
trustee therefor; and before the receipt of any such written notice, the Trustee, subject to the
provisions of Section 6.3 hereof, shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Trustee shall not have received the notice provided for in
this Section 12.6 at least three Business Days prior to the date upon which by the terms hereof any
money may become payable for any purpose (including, without limitation, the payment of the
principal of, or interest (including any Additional Interest) on any Debenture), then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full power and authority
to receive such money and to apply the same to the purposes for which they were received, and shall
not be affected by any notice to the contrary that may be received by it within three Business Days
prior to such date.

     The Trustee, subject to the provisions of Section 6.3, shall be entitled to rely on the delivery to
it of a written notice by a Person representing himself to be a holder of Senior Debt (or a trustee
on behalf of such holder) to establish that such notice has been given by a holder of Senior Debt
or a trustee on behalf of any such holder or holders. In the event that the Trustee determines in
good faith that further evidence is required with respect to the right of any Person as a holder of
Senior Debt to participate in any payment or distribution pursuant to this Article XII, the Trustee
may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of Senior Debt held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the right of such
Person under this Article XII, and, if such evidence is not furnished, the Trustee may defer any
payment to such Person pending judicial determination as to the right of such Person to receive
such payment.

     Section 12.7     Rights of the Trustee; Holders of Senior Debt.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article XII in respect of any Senior Debt at any time held by it, to the same extent as any other
holder of Senior Debt, and nothing in this Indenture shall deprive the Trustee of any of its rights
as such holder.

     With respect to the holders of Senior Debt of the Company, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set forth in this Article
XII, and no implied covenants or obligations with respect to the holders of Senior Debt shall be
read into this

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Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Debt and, subject to the provisions of Section 6.3, the Trustee shall
not be liable to any holder of Senior Debt if it shall pay over or deliver to Holders of
Debentures, the Company or any other Person money or assets to which any holder of Senior Debt
shall be entitled by virtue of this Article XII or otherwise.

     Section 12.8     Subordination May Not Be Impaired.

     No right of any present or future holder of any Senior Debt to enforce subordination as herein
provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the
part of the Company or by any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless
of any knowledge thereof that any such holder may have or otherwise be charged with.

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

     Section 12.9     Article Applicable to Paying Agents.

     In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article shall in such case
(unless the context otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named
in this Article in addition to or in place of the Trustee.

     Section 12.10     Right to Bring Direct Action Subordinate.

     The right of a holder of Trust Preferred Securities to bring a Direct Action is subordinate
and junior in right of payment to all present and future Senior Debt, and the holder of such Trust
Preferred Securities shall not have by reason of such right any rights greater than the rights the
Holder of Debentures of a principal amount equal to the aggregate liquidation amount of such Trust
Preferred Securities would have by reason of holding such Debentures.

ARTICLE XIII

IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS

     Section 13.1     No Recourse.

     No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any
Debenture, or for any claim based thereon or otherwise in respect thereof, shall be had against any
incorporator, shareholder, officer or director, past, present or future as such, of the Company or
of any predecessor or successor corporation, either directly or through the Company or any

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such
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; it being expressly understood
that this Indenture and the obligations issued hereunder are solely corporate obligations, and that
no such personal liability whatever shall attach to, or is or shall be incurred by, the
incorporators, shareholders, officers or directors as such, of the Company or of any predecessor or
successor corporation, or any of them, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in this
Indenture or in any of the Debentures or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by constitution or
statute, of, and any and all such rights and claims against, every such incorporator, shareholder,
officer or director as such, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or agreements contained in this Indenture or in
any of the Debentures or implied therefrom, are hereby expressly waived and released as a condition
of, and as a consideration for, the execution of this Indenture and the issuance of such
Debentures.

     Section 13.2     PORTAL Eligibility.

     In connection with the distribution of the Debentures to the holders of the Trust Preferred
Securities upon a Dissolution Event, the Company will use its best efforts to have such Debentures
declared eligible for trading on the Private Offerings and Resales through Automated
Linkages System of the National Association of Securities Dealers (“PORTAL”) or on such other
automated quotation system as the Trust Preferred Securities were listed or traded immediately
prior to the distribution of the Debentures.

     Section 13.3     Counterparts.

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

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     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and their
respective corporate seals to be hereunto affixed and attested, all as of the day and year first
above written.

	 	 	 	 	 
	 	MIDLAND FINANCIAL HOLDINGS, INC.

 	 
	 	By:  	                 /s/ William S. Harrison
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY, as trustee

 	 
	 	By:  	                 /s/ Janel R. Havrille
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

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EXHIBIT A

FORM OF DEBENTURE

[FORM OF FACE OF DEBENTURE]

     [IF THE DEBENTURE IS TO BE A GLOBAL DEBENTURE, INSERT — This Debenture is a Global Debenture within
the meaning of the Indenture hereinafter referred to and is registered in the name of [Name of
Clearing Agency] or a nominee of [Name of Clearing Agency] (the “Clearing Agency”). This Debenture
is exchangeable for Debentures registered in the name of a person other than the Clearing Agency or
its nominee only in the limited circumstances described in the Indenture, and no transfer of this
Debenture (other than a transfer of this Debenture as a whole by the Clearing Agency to a nominee
of the Clearing Agency or by a nominee of the Clearing Agency to the Clearing Agency or another
nominee of the Clearing Agency) may be registered except in limited circumstances. Unless this
Debenture is presented by an authorized representative of the Clearing Agency to the issuer or its
agent for registration of transfer, exchange or payment, and any Debenture issued is registered in
the name of the Clearing Agency or such other name as requested by an authorized representative of
the Clearing Agency, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS
WRONGFUL since the registered owner hereof, the Clearing Agency or its nominee, has an interest
herein.]

MIDLAND FINANCIAL HOLDINGS, INC.

9.5% Junior Subordinated Debenture Due May 3, 2034

			
	No. [-]
	 	$[-]

[CUSIP No. [-]]

     Midland Financial Holdings, Inc., a corporation duly organized and existing under the laws of the
State of Maryland (herein called “the Company,” which term includes any successor corporation under
the Indenture hereinafter referred to), for value received, hereby promises to pay to Wilmington
Trust Company, as Property Trustee of MFH Financial Trust I under that certain Amended and Restated
Declaration of Trust, dated as of April 28, 2004 (the “Declaration”), or registered assigns, the
principal sum of [-] Dollars ($[-]) on May 3, 2034.

          Interest Payment Dates: February 3, May 3, August 3 and November 3, commencing August 3,
2004.

          Regular Record Dates: the Regular Record Date for an installment of interest shall be the
close of business on the Business Day next preceding the Interest Payment Date for such installment
of interest. [IF PURSUANT TO THE PROVISIONS OF THE INDENTURE THE DEBENTURES ARE NO LONGER
REPRESENTED BY A GLOBAL DEBENTURE — shall be the close of business on the 15th day next
preceding the Interest Payment Date for such installment of interest.] If any date on which
interest is payable on this Debenture is not a Business Day, then payment of the 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.

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

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

     IN WITNESS WHEREOF, the Company has caused this instrument to be signed manually or by facsimile by
its duly authorized officers.

     Dated: ___, ___.

	 	 	 	 	 
	 	MIDLAND FINANCIAL HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

     TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

     Dated: ___, ___.

	 	 	 	 	 
	     WILMINGTON TRUST COMPANY,

     as Trustee

 	 	 
	     By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 
	 

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[FORM OF REVERSE OF DEBENTURE ]

MIDLAND FINANCIAL HOLDINGS, INC.

9.5% Junior Subordinated Debenture Due May 3, 20341

     (1)     Interest. Midland Financial Holdings, Inc., a Maryland corporation (the “Company”), is
the issuer of this 9.5% Junior Subordinated Debenture Due May 3, 2034 (the “Debenture”) limited in
aggregate principal amount to $120,000,100 issued under the Indenture hereinafter referred to. The
Stated Maturity of the principal of the Debentures shall be May 3, 2034, and they shall bear
interest at the rate of 9.5% per annum from May 3, 2004, and a rate which is equal the greater of
(a) 9.5% per annum or (b) the rate per annum which is equal to 6.00% plus the U.S. Treasury Rate on
the Interest Reset Date from such date, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, as the case may be, payable quarterly, in arrears, on
February 3, May 3, August 3 and November 3 of each year (each day an “Interest Payment Date”),
commencing August 3, 2004.

     The amount of interest payable for any period will be computed on the basis of a 360-day year of
twelve 30-day months. Except as provided in the following sentence, the amount of interest payable
for any period shorter than a full quarterly period for which interest is computed will be computed
on the basis of the actual number of days elapsed per 30-day month. If any date on which interest
is payable on this Debenture is not a Business Day, then payment of the 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.

     (2)     Additional Interest. The Company shall pay to MFH Financial Trust I (and its permitted
successors or assigns under the Declaration) (the “Trust”) such amounts as shall be required so
that the net amounts received and retained by the Trust after paying any taxes, duties, assessments
or other governmental charges of whatever nature (other than withholding taxes) imposed on the
Trust by the United States or any other taxing authority (“Additional Interest”) will be at least
the amounts the Trust would have received had no such taxes, duties, assessment or governmental
charges been imposed.

     (3)     Method of Payment. Any installment of interest on this Debenture that is 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 Debenture (or one or more Predecessor
Debentures) is registered at the close of business on the Regular Record Date for that installment
of interest, except that interest payable on the Stated Maturity of the principal of this Debenture
shall be paid to the Person to whom such principal is paid.

     Any installment of interest on this Debenture that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (“Defaulted Interest”) may either be paid to the Person
in whose name this Debenture (or one or more Predecessor Debentures) is registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest to be
fixed by the Trustee, notice whereof shall be given to the holder of this Debenture at least 10
days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities

	1      All terms used in this Debenture that are defined
in the Indenture referred to herein or in the Declaration shall have the
meanings assigned to them in the Indenture, or if not there defined, in the
Declaration.

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exchange or automated quotation system on
which the Debentures may be listed or traded, and upon such notice as may be required by such
securities exchange or automated quotation system, all as more fully provided in said Indenture.

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

     (4)     Paying Agent and Registrar. The Trustee will initially act as Paying Agent and
Registrar. The Company may change any Paying Agent, Registrar or co-registrar without prior
notice. The Company or any of its Affiliates may act in any such capacity.

     (5)     Indenture. The Company issued the Debentures under an indenture, dated as of May 3,
2004 (the “Indenture”), between the Company and Wilmington Trust Company, as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Trustee, the Company and the
Holders of the Debentures, and of the terms upon which the Debentures are, and are to be,
authenticated and delivered. The terms of the Debentures include those stated in the Indenture and
those made part of the Indenture by the incorporation of specified provisions of the Trust
Indenture Act of 1939 as in force at the date of the Indenture (the “Trust Indenture Act”). The
Debentures are subject to, and qualified by, all such terms, certain of which are summarized
hereon, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of
such terms.

     The Debentures are unsecured general obligations of the Company limited to $120,000,100 in
aggregate principal amount and subordinated in right of payment to all existing and future Senior
Debt of the Company. No reference herein to the Indenture and no provision of this Debenture or of
the Indenture shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and interest on this Debenture at the times, place and rate,
and in the coin or currency, prescribed in the Indenture.

     (6)     Optional Redemption. The Debentures are subject to redemption, at the election of the
Company, in whole or in part, for cash at 100% of the principal amount of the Debentures to be
redeemed plus accrued and unpaid interest thereon, at any time and from time to time on May 5,
2014.

     (7)     Optional Redemption Upon Redemption Tax Event. The Debentures are subject to
redemption, at the election of the Company, in whole (but not in part), for cash at 100% of the
principal amount of the Debentures to be redeemed plus accrued and unpaid interest thereon, at any
time within 90 days following the occurrence and continuation of a Redemption Tax Event.

     (8)     Notice of Redemption. Notice of redemption will be mailed at least 30 but not more
than 60 days before the redemption date to each Holder of the Debentures to be redeemed at such
Holder’s address of record. In the event of a redemption of less than all of the Debentures, the
Debentures will be chosen for redemption by the Trustee in accordance with the Indenture. On and
after the Redemption Date, interest ceases to accrue on the Debentures or portions of them called
for redemption.

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     (9)     Subordination. The payment of the principal of, interest on or any other amounts due
on the Debentures is subordinated in right of payment to all existing and future Senior Debt (as
defined below) of the Company, as described in the Indenture. Each Holder, by accepting a
Debenture, agrees to such subordination and authorizes and directs the Trustee on its behalf to
take such action as may be necessary or appropriate to effectuate the subordination so provided and
appoints the Trustee as its attorney-in-fact for such purpose.

     “Senior Debt” means (i) the principal, premium, if any, and interest with respect to (A)
indebtedness of the Company for money borrowed and (B) indebtedness evidenced by securities,
debentures, notes, bonds or other similar instruments issued by the Company, including without
limitation, any future indebtedness under any indenture (other than this Indenture) to which the
Company is a party, (ii) all capital lease obligations of the Company, (iii) all obligations of the
Company issued or assumed as the deferred purchase price of property, all conditional sale
obligations of the Company and all obligations of the Company under any title retention agreement
(but excluding trade accounts payable arising in the ordinary course of business), (iv) all
obligations of the Company for the reimbursement of any letter of credit, banker’s acceptance,
security purchase facility, any repurchase agreement or similar arrangement, or under any interest
rate swap or total return swap or other hedging arrangement or any obligation under options or any
similar credit or other transaction, (v) all obligations of the type referred to in clauses (i)
through (iv) above of other Persons for the payment of which the Company is responsible or liable
as obligor, guarantor or otherwise, (vi) all obligations of various classes of existing and future
preferred shares of the Company and all of its subsidiaries, other than the Trust Preferred
Securities and (vii) all obligations of the type referred to in clauses (i) through (vi) above of
other Persons secured by any lien on any property or asset of the Company (whether or not such
obligation is assumed by the Company), except for (1) any such indebtedness that is by its terms
subordinated to or pari passu with the Debentures and (2) any indebtedness for money borrowed by
any of the Company’s Affiliates (but only Affiliates in which MuniMae and its Subsidiaries own more
than 50% of the Equity Interests); in the case of clauses (i) through (vii) above, whether
outstanding at the date of this Indenture or thereafter incurred. Such Senior Debt shall continue
to be Senior Debt and entitled to the benefits of the subordination provisions hereof irrespective
of any amendment, modification or waiver of any term of such Senior Debt.

     (10)     Registration, Transfer, Exchange and Denominations. As provided in the Indenture and
subject to certain limitations therein set forth, the transfer of this Debenture is registrable in
the Register, upon surrender of this Debenture for registration of transfer at the office or agency
of the Company in Baltimore, Maryland, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Debentures, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Debentures are issuable only in registered form without coupons in denominations of
(a) $100 and integral multiples thereof to the Company and its Affiliates and (b) $2,000,000 and
integral multiples thereof to Persons other than the Company and its Affiliates. No service
charge shall be made for any such registration of transfer or exchange, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith. Prior to due presentment of this Debenture for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Debenture is registered as the owner hereof for all purposes, whether or not this Debenture be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     (11)     Persons Deemed Owners. Except as provided in Section 4 hereof, the registered Holder
of a Debenture may be treated as its owner for all purposes.

-52-

 

     (12)     Unclaimed Money. If money for the payment of principal or interest remains unclaimed
for two years, the Trustee and the Paying Agent shall pay the money back to the Company at its
written request. After that, Holders of Debentures entitled to the money must look to the Company
for payment unless an abandoned property law designates another Person, and all liability of the
Trustee and such Paying Agent with respect to such money shall cease.

     (13)     Defaults and Remedies. The Debentures shall have the Indenture Events of Default as
set forth in Section 5.1 of the Indenture. Subject to certain limitations in the Indenture, if an
Indenture Event of Default occurs and is continuing, the Trustee by notice to the Company or the
Holders of at least a majority in aggregate principal amount of the then Outstanding Debentures, by
notice to the Company and the Trustee, may declare all the Debentures to be due and payable
immediately.

     The Holders of a majority in principal amount of the Debentures then Outstanding by written notice
to the Trustee may rescind an acceleration and its consequences if the rescission would not
conflict with any judgment or decree and if all existing Indenture Events of Default have been
cured or waived except nonpayment of principal or interest that has become due solely because of
the acceleration. Holders may not enforce the Indenture or the Debentures except as provided in
the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the
then Outstanding Debentures issued under the Indenture may direct the Trustee in its exercise of
any trust or power. The Company must furnish annually compliance certificates to the Trustee.

     (14)     Amendments, Supplements and Waivers. The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights and obligations of
the Company and the rights of the Holders of the Debentures under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount
of the Debentures at the time Outstanding. The Indenture also contains provisions permitting the
Holders of specified percentages in aggregate principal amount of the Debentures at the time
Outstanding, on behalf of the Holders of all the Debentures, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Debenture shall be conclusive and
binding upon such Holder and upon all future Holders of this Debenture and of any Debenture issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Debenture.

     (15)     Trustee Dealings with the Company. The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Debentures and may otherwise deal with the Company or
an Affiliate with the same rights it would have, as if it were not Trustee, subject to certain
limitations provided for in the Indenture and in the Trust Indenture Act. Any Paying Agent,
Registrar or co-registrar may do the same with like rights.

     (16)     No Recourse Against Others. A director, officer, employee or shareholder, as such, of
the Company shall not have any liability for any obligations of the Company under the Debentures or
the Indenture or for any claim based on, in respect of or by reason of such obligations or their
creation. Each Holder of the Debentures by accepting a Debenture waives and releases all such
liability. The waiver and release are part of the consideration for the issue of the Debentures.

     (17)     Governing Law. THE INTERNAL LAWS OF THE STATE OF DELAWARE SHALL GOVERN THE INDENTURE
AND THE DEBENTURES WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

-53-

 

     (18)     Authentication. The Debentures shall not be valid until authenticated by the manual
signature of an authorized officer of the Trustee or an
authenticating agent.

     The Company will furnish to any Holder of the Debentures upon written request and without charge a
copy of the Indenture. Requests may be made to:

Midland Financial Holdings, Inc.

621 E. Pratt Street, Suite 300

Baltimore, Maryland 21202

Attention: Chief Financial Officer

-54-

 

ASSIGNMENT FORM

To assign this Debenture, fill in the form below:

(I) or (we) assign and transfer this Debenture to

______________________________________________________________

(Insert assignee’s social security or taxpayer identification no.)

______________________________________________________________

(Print or type assignee’s name, address and zip code)

______________________________________________________________

______________________________________________________________

______________________________________________________________

and irrevocably appoint _________________________agent to transfer this Debenture on the books of
the Company. The agent may substitute another to act for him.

Your Signature: ___________________________________

(Sign exactly as your name
appears on the other side of this Debenture)

Date: __________________________

Signature Guarantee:* _________________________________________________________________________

* Signature must be guaranteed by a commercial bank, trust company or member firm of The New York
Stock Exchange, Inc.

-55-

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