Document:

exhibit10-2.htm

    AMENDMENT
TO

    EMPLOYMENT
AGREEMENT

    WHEREAS, Kim D. Saunders (the
“Executive”) is a party with M&F Bancorp, Inc. (the “Company”) and Mechanics
and Farmers Bank, a wholly-owned subsidiary of the Company (the “Bank”), to an
Employment Agreement, dated January 12, 2007 (the “Employment
Agreement”);

    WHEREAS,
the Company intends to enter into a letter agreement with the United States
Department of the Treasury (the “UST”) pursuant to which the Company shall issue
shares of preferred stock and the UST shall purchase from the Company the shares
of preferred stock (the “Program”); and

    WHEREAS, it is a condition to
participation in the Program under the Emergency Economic Stabilization Act of
2008, as amended (“EESA”), and rules, regulations, guidance or other
requirements issued thereunder (collectively, along with the EESA, the “EESA
Restrictions”), that (i) employment agreements and other agreements with the
Executive and certain other employees of the Company and the Bank (the “Covered
Employees”) be amended to comply with the EESA Restrictions; and (ii) the
Covered Employees execute a form of waiver (the “Waiver”); and

    WHEREAS,
the Executive intends to execute the Waiver, wherein the Executive: (i)
acknowledges that the EESA Restrictions may require modification of the
employment, compensation, bonus, incentive, severance, retention and other
benefit plans, arrangements, policies and agreements (including so-called
“golden parachute” agreements), whether or not in writing, that the Executive
may have with the Company and the Bank (together, the “Employer”) or in which
the Executive participates as they relate to the period the United States holds
any equity or debt securities of the Company acquired through the Program
(collectively, along with the Employment Agreement, the “Benefit Plans”); (ii)
consents to all such modifications; and (iii) acknowledges and agrees that if
the Employer notifies her in writing that she has received payments in violation
of the EESA Restrictions, she shall repay the aggregate amount of such
payments
to the Employer no later than fifteen (15) business days following her receipt
of such notice;

     

    NOW,
THEREFORE, in consideration of the mutual covenants and obligations set forth
herein, and as consideration for the benefits that the Executive will receive as
a result of the Company’s participation in the Program, the Company, the Bank
and the Executive agree as follows:

     

    
      	
              1.  

            	
              No Golden Parachute
      Payments. The Executive shall not receive any golden parachute
      payment that is prohibited by the EESA
  Restrictions.

            

    

    
      	
              2.  

            	
              Recovery of
      Payments
      in Violation of the EESA Restrictions. If the
      Employer notifies the Executive in writing that she has received payments
      in violation of the EESA Restrictions, the Executive hereby agrees to
      repay the aggregate amount of such payments to the Employer no later than
      fifteen (15) business days following her receipt of such
      notice.

            

    

    
      	
              3.  

            	
              General. The
      Benefit Plans are hereby amended to the extent necessary so as to be
      consistent with the EESA
Restrictions.

            

    

    
      	
              4.  

            	
              Interpretation This Amendment is
      intended to, and shall be interpreted, administered and construed to
      comply with the EESA Restrictions (and, to the maximum extent consistent
      with the preceding, to permit operation of the Benefit Plans in accordance
      with their terms before giving effect to this
  Amendment.)

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        626049v4

      

      
         

        
        

      

      
         

      

    

     

    
      	
              5.  

            	
              Miscellaneous .
      This Amendment shall be effective only so long as the Employer is subject
      to the EESA Restrictions. In the event that the EESA Restrictions cease to
      apply to the Employer, this Amendment shall immediately become null and
      void. Further, to the extent permitted by the EESA Restrictions and
      applicable law, Executive’s benefits under the Employment Agreement shall
      accrue and shall be paid to the Executive at a future date when and if so
      permitted by the EESA Restrictions and applicable law (“Accrued
      Payments”). Any such Accrued Payments will not accrue interest. To the
      extent not subject to federal law, this Amendment will be governed by and
      construed in accordance with the laws of the State of North Carolina. This
      Amendment may be executed in two or more counterparts, each of which will
      be deemed to be an original. Except as amended herein, the Benefit Plans
      shall remain in full force and
effect.

            

    

    IN
WITNESS WHEREOF, the parties hereto have duly executed and delivered this
Amendment to the Employment Agreement as of June 26, 2009.

    

    M&F BANCORP, INC.

                                                     

    By:_______________________________________

    Chairman

    

    

    MECHANICS AND FARMERS
BANK

    

    By:_______________________________________

    Chairman

    

    EXECUTIVE:

    

    __________________________________________

    Kim D. Saunders

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
          626049v4Exhibit 4.7

 

FORM OF

 

AMENDED AND RESTATED

 

DECLARATION OF TRUST

 

UNIONBANCAL FINANCE TRUST [*]

 

DATED AS OF
                  
        ,

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I INTERPRETATION AND DEFINITIONS

  	
  1

  
	
  SECTION 1.1. DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II TRUST INDENTURE ACT

  	
  8

  
	
  SECTION 2.1. TRUST INDENTURE ACT:
  APPLICATION

  	
  8

  
	
  SECTION 2.2. LISTS OF HOLDERS OF
  SECURITIES

  	
  8

  
	
  SECTION 2.3. REPORTS BY THE
  PROPERTY TRUSTEE

  	
  9

  
	
  SECTION 2.4. PERIODIC REPORTS TO
  PROPERTY TRUSTEE

  	
  9

  
	
  SECTION 2.5. EVIDENCE OF COMPLIANCE
  WITH CONDITIONS PRECEDENT

  	
  9

  
	
  SECTION 2.6. EVENTS OF DEFAULT;
  WAIVER

  	
  9

  
	
  SECTION 2.7. EVENT OF DEFAULT;
  NOTICE

  	
  11

  
	
   

  	
   

  
	
  ARTICLE III ORGANIZATION

  	
  11

  
	
  SECTION 3.1. NAME

  	
  11

  
	
  SECTION 3.2. OFFICE

  	
  12

  
	
  SECTION 3.3. PURPOSE

  	
  12

  
	
  SECTION 3.4. AUTHORITY

  	
  12

  
	
  SECTION 3.5. TITLE TO PROPERTY OF
  THE TRUST

  	
  12

  
	
  SECTION 3.6. POWERS AND DUTIES OF
  THE REGULAR TRUSTEES

  	
  12

  
	
  SECTION 3.7. PROHIBITION OF ACTIONS
  BY THE TRUST AND THE TRUSTEES

  	
  15

  
	
  SECTION 3.8. POWERS AND DUTIES OF
  THE PROPERTY TRUSTEE

  	
  16

  
	
  SECTION 3.9. CERTAIN DUTIES AND RESPONSIBILITIES
  OF THE PROPERTY TRUSTEE

  	
  18

  
	
  SECTION 3.10. CERTAIN RIGHTS OF
  PROPERTY TRUSTEE

  	
  20

  
	
  SECTION 3.11. DELAWARE TRUSTEE

  	
  22

  
	
  SECTION 3.12. EXECUTION OF
  DOCUMENTS

  	
  23

  
	
  SECTION 3.13. NOT RESPONSIBLE FOR
  RECITALS OR ISSUANCE OF SECURITIES

  	
  23

  
	
  SECTION 3.14. DURATION OF TRUST

  	
  23

  
	
  SECTION 3.15. MERGERS

  	
  23

  
	
   

  	
   

  
	
  ARTICLE IV SPONSOR

  	
  24

  
	
  SECTION 4.1. SPONSOR’S PURCHASE OF
  COMMON SECURITIES

  	
  24

  
	
  SECTION 4.2. RESPONSIBILITIES OF
  THE SPONSOR

  	
  25

  
	
   

  	
   

  
	
  ARTICLE V TRUSTEES

  	
  25

  
	
  SECTION 5.1. NUMBER OF TRUSTEES

  	
  25

  
	
  SECTION 5.2. DELAWARE TRUSTEE

  	
  26

  
	
  SECTION 5.3. PROPERTY TRUSTEE;
  ELIGIBILITY

  	
  26

  
	
  SECTION 5.4. CERTAIN QUALIFICATIONS
  OF REGULAR TRUSTEES AND DELAWARE TRUSTEE GENERALLY

  	
  27

  
	
  SECTION 5.5. REGULAR TRUSTEES

  	
  27

  

 

i

 

	
  SECTION 5.6. APPOINTMENT, REMOVAL
  AND RESIGNATION OF TRUSTEES

  	
  27

  
	
  SECTION 5.7. VACANCIES AMONG
  TRUSTEES

  	
  28

  
	
  SECTION 5.8. EFFECT OF VACANCIES

  	
  28

  
	
  SECTION 5.9. MEETINGS

  	
  28

  
	
  SECTION 5.10. DELEGATION OF POWER

  	
  29

  
	
  SECTION 5.11. MERGER, CONVERSION,
  CONSOLIDATION OR SUCCESSION TO BUSINESS

  	
  29

  
	
   

  	
   

  
	
  ARTICLE VI DISTRIBUTIONS

  	
  29

  
	
  SECTION 6.1. DISTRIBUTIONS

  	
  29

  
	
   

  	
   

  
	
  ARTICLE VII ISSUANCE OF SECURITIES

  	
  30

  
	
  SECTION 7.1. GENERAL PROVISIONS
  REGARDING SECURITIES

  	
  30

  
	
  SECTION 7.2. SUBORDINATION OF
  COMMON SECURITIES

  	
  30

  
	
  SECTION 7.3. EXECUTION AND
  AUTHENTICATION

  	
  31

  
	
  SECTION 7.4. FORM AND DATING

  	
  31

  
	
  SECTION 7.5. PAYING AGENT

  	
  31

  
	
  SECTION 7.6. PAYING AGENT TO HOLD
  MONEY IN TRUST

  	
  32

  
	
   

  	
   

  
	
  ARTICLE VIII TERMINATION OF TRUST

  	
  33

  
	
  SECTION 8.1. DISSOLUTION AND
  TERMINATION OF TRUST

  	
  33

  
	
   

  	
   

  
	
  ARTICLE IX TRANSFER OF INTERESTS

  	
  34

  
	
  SECTION 9.1. TRANSFER OF SECURITIES

  	
  34

  
	
  SECTION 9.2. TRANSFER OF
  CERTIFICATES

  	
  35

  
	
  SECTION 9.3. DEEMED SECURITY
  HOLDERS

  	
  36

  
	
  SECTION 9.4. BOOK ENTRY INTERESTS

  	
  36

  
	
  SECTION 9.5. NOTICES TO CLEARING
  AGENCY

  	
  37

  
	
  SECTION 9.6. APPOINTMENT OF
  SUCCESSOR CLEARING AGENCY

  	
  37

  
	
  SECTION 9.7. DEFINITIVE PREFERRED
  SECURITY CERTIFICATES UNDER CERTAIN CIRCUMSTANCES

  	
  38

  
	
  SECTION 9.8. MUTILATED, DESTROYED,
  LOST OR STOLEN CERTIFICATES

  	
  38

  
	
   

  	
   

  
	
  ARTICLE X LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR
  OTHERS

  	
  39

  
	
  SECTION 10.1. LIABILITY

  	
  39

  
	
  SECTION 10.2. EXCULPATION

  	
  39

  
	
  SECTION 10.3. FIDUCIARY DUTY

  	
  40

  
	
  SECTION 10.4. INDEMNIFICATION

  	
  41

  
	
  SECTION 10.5. OUTSIDE BUSINESS

  	
  43

  
	
  SECTION 10.6. COMPENSATION; FEES

  	
  44

  
	
   

  	
   

  
	
  ARTICLE XI ACCOUNTING

  	
  44

  
	
  SECTION 11.1. FISCAL YEAR

  	
  44

  
	
  SECTION 11.2. CERTAIN ACCOUNTING
  MATTERS

  	
  44

  
	
  SECTION 11.3. BANKING

  	
  45

  
	
  SECTION 11.4. WITHHOLDING

  	
  45

  

 

ii

 

	
   

  	
   

  
	
  ARTICLE XII AMENDMENTS AND MEETINGS

  	
  45

  
	
  SECTION 12.1. AMENDMENTS

  	
  45

  
	
  SECTION 12.2. MEETINGS OF THE
  HOLDERS OF SECURITIES; ACTION BY WRITTEN CONSENT

  	
  48

  
	
   

  	
   

  
	
  ARTICLE XIII REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE

  	
  49

  
	
  SECTION 13.1. REPRESENTATIONS AND
  WARRANTIES OF PROPERTY TRUSTEE

  	
  49

  
	
  SECTION 13.2. REPRESENTATIONS AND
  WARRANTIES OF DELAWARE TRUSTEE

  	
  50

  
	
   

  	
   

  
	
  ARTICLE XIV MISCELLANEOUS

  	
  51

  
	
  SECTION 14.1. NOTICES

  	
  51

  
	
  SECTION 14.2. GOVERNING LAW

  	
  52

  
	
  SECTION 14.3. INTENTION OF THE
  PARTIES

  	
  52

  
	
  SECTION 14.4. HEADINGS

  	
  53

  
	
  SECTION 14.5. SUCCESSORS AND ASSIGN

  	
  53

  
	
  SECTION 14.6. PARTIAL ENFORCEABILITY

  	
  53

  
	
  SECTION 14.7. COUNTERPARTS

  	
  53

  

 

iii

 

CROSS-REFERENCE TABLE*

 

	
  Section of

  	
   

  	
   

  
	
  Trust Indenture Act

  	
   

  	
   

  
	
  of

  	
   

  	
   

  
	
  of 1939, as amended declaration

  	
   

  	
  Section

  
	
  310(b)

  	
   

  	
  5.3(c) & (d)

  
	
  311(a)

  	
   

  	
  2.2(b)

  
	
  311(b)

  	
   

  	
  2.2(b)

  
	
  312(b)

  	
   

  	
  2.2(b)

  
	
  313

  	
   

  	
  2.3

  
	
  313(d)

  	
   

  	
  2.3

  
	
  314

  	
   

  	
  2.4

  
	
  314(a)

  	
   

  	
  3.6(j)

  
	
  314(c)

  	
   

  	
  2.5

  
	
  316(a)

  	
   

  	
  2.6(a)- (c) &(e)

  
	
  317(b)

  	
   

  	
  7.5

  

 

*                 This Cross-Reference table does not constitute part of
the Declaration and shall not affect the interpretation of any of its terms or
provisions.

 

iv

 

FORM OF

 

AMENDED AND RESTATED

 

DECLARATION OF TRUST

 

OF

 

UNIONBANCAL FINANCE TRUST [*]

 

                           
      ,

 

AMENDED AND RESTATED DECLARATION OF TRUST
(“Declaration”) dated and effective as of
                        
        ,
          , by the Trustees
(as defined herein), the Sponsor (as defined herein) and by the Holders (as
defined herein), from time to time, of undivided beneficial interests in the
assets of the Trust to be issued pursuant to this Declaration.

 

WHEREAS, certain of the Trustees and the
Sponsor established UnionBanCal Finance Trust [*] (the “Trust”), a trust under
the Delaware Statutory Trust Act pursuant to a Declaration of Trust dated as of
November 17, 1998, as amended and restated by the First Amended and
Restated Declaration of Trust dated as of June 4, 2009 (as so amended and
restated, the “Original Declaration”), and a Certificate of Trust filed with
the Secretary of State of the State of Delaware on November 17, 1998, for
the sole purpose of issuing and selling certain securities representing
undivided beneficial interests in the assets of the Trust and investing the
proceeds thereof in certain Debt Securities (as defined herein) of the Debt
Security Issuer (as defined herein) and engaging in only those other activities
necessary, advisable or incidental thereto;

 

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

 

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

 

NOW, THEREFORE, it being the intention of
the parties hereto to continue the Trust as a statutory trust under the
Delaware Statutory Trust Act and that this Declaration constitutes the
governing instrument of such statutory trust, the Trustees declare that all
assets contributed to the Trust will be held in trust for the benefit of the
Holders, from time to time, of the securities representing undivided beneficial
interests in the assets of the Trust issued hereunder, subject to the
provisions of this Declaration.

 

ARTICLE I

INTERPRETATION AND DEFINITIONS

 

SECTION 1.1.  DEFINITIONS.  Unless the context otherwise requires:

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

“90 Day Period” has the meaning specified
in Annex I.

 

“Administrative Action” has the meaning
specified in Annex I.

 

“Affiliate” has the same meaning as given
to that term in Rule 405 of the Securities Act or any successor rule thereunder.

 

“Agent” means any Paying Agent.

 

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

 

“Book Entry Interest” means a beneficial
interest in a Global Certificate, ownership and transfers of which shall be
maintained and made through book entries by a Clearing Agency as described in Section 9.4.

 

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

 

“Certificate” means a Common Security
Certificate or a Preferred Security Certificate.

 

“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 Preferred Securities and in whose name
or in the name of a nominee of that organization shall be registered a Global
Certificate and which shall undertake to effect book entry transfers and
pledges of the Preferred Securities.

 

“Clearing Agency Participant” means a
broker, dealer, bank, other financial institution or other Person for whom from
time to time the Clearing Agency effects book entry transfers and pledges of
securities deposited with the Clearing Agency.

 

“Closing Date” means
                      
      ,
          .

 

2

 

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

 

“Commission” means the Securities and
Exchange Commission.

 

“Common Securities Guarantee” means the
guarantee agreement to be dated as of
                
      ,
             of the
Sponsor in respect of the Common Securities.

 

“Common Security” has the meaning
specified in Section 7.1.

 

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

 

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

 

“Corporate Trust Office” means an office
of the Property Trustee at which the corporate trust business of the Property
Trustee for the purpose of administering this Declaration shall, at any
particular time, be administered, which office at the date of execution of this
Declaration is located at:

 

The Bank of
New York Mellon Trust Company, N.A.

700 South
Flower Street, Suite 500

Los
Angeles, CA  90117

Attn:  Corporate Unit

 

“Coupon Rate” has the meaning specified in
Annex I.

 

“Covered Person” means:  (a) any officer, director, shareholder,
partner, member, representative, employee or agent of (i) the Trust or (ii) the
Trust’s Affiliates; and (b) any Holder of Securities.

 

“Debt Securities” means the series of Debt
Securities to be issued by the Debt Security Issuer under the Indenture to be
held by the Property Trustee, a specimen certificate for such series of Debt
Securities being attached hereto as Exhibit B.

 

“Debt Security Issuer” means UnionBanCal
Corporation, a Delaware corporation, in its capacity as issuer of the Debt
Securities under the Indenture.

 

“Debt Security Trustee” means The Bank of
New York Mellon Trust Company, N.A., as trustee under the Indenture until a
successor is appointed thereunder, and thereafter means such successor trustee.

 

“Declaration” has the meaning set forth in
the recitals.

 

“Definitive Preferred Security
Certificates” has the meaning set forth in Section 9.4.

 

3

 

“Delaware Trustee” has the meaning set
forth in Section 5.1.

 

“Depositary” has
the meaning specified in Annex I.

 

“Distribution” means a distribution
payable to Holders of Securities in accordance with Section 6.1.

 

“DTC” means The Depository Trust Company,
the initial Clearing Agency.

 

“Event of Default” in respect of the
Securities means an Event of Default (as defined in the Indenture) that has
occurred and is continuing in respect of the Debt Securities.

 

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

 

“Extension Period” has the meaning
specified in Annex I.

 

“Fiscal Year” has the meaning set forth in
Section 11.1.

 

“Fiduciary Indemnified Person” has the
meaning set forth in Section 10.4(b).

 

“Global Certificate” has the meaning set
forth in Section 9.4(a).

 

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

 

“Indemnified Person” means each Company
Indemnified Person and each Fiduciary Indemnified Person.

 

“Indenture” means the Indenture dated as
of [  ] between the Debt Security Issuer
and The Bank of New York Mellon Trust Company, N.A., as trustee, or, if amended
or supplemented as provided therein, as so amended or supplemented or both, and
shall include the forms and terms of a particular series of securities
established as contemplated thereunder.

 

“Investment Company” means an investment
company as defined in the Investment Company Act.

 

“Investment Company Act” means the
Investment Company Act of 1940, as amended from time to time, or any successor
legislation.

 

“Investment Company Event” has the meaning
set forth in Annex I hereto.

 

“Legal Action” has the meaning set forth
in Section 3.6(g).

 

“Like Amount” means (1) with respect
to a redemption of Securities having an aggregate liquidation amount equal to
that portion of the principal amount of Debt Securities to be contemporaneously
redeemed in accordance with the Indenture, allocated to the Common Securities
and to the Preferred Securities based upon the relative liquidation amounts of
such classes and (2) with respect to a distribution of Debt Securities to
Holders of Securities in 

 

4

 

connection with a
dissolution or liquidation of the Trust, Debt Securities having an aggregate
principal amount equal to the aggregate liquidation amount of the Securities of
the Holder to whom such Debt Securities are distributed.

 

“Liquidation” has the meaning specified in
Annex I.

 

“Liquidation Distribution” has the meaning
specified in the terms of the Securities as set forth in Annex I.

 

“List of Holders” has the meaning set
forth in Section 2.2(a).

 

“Majority in liquidation amount of the
Securities” means, except as provided in the terms of the Preferred Securities
or by the Trust Indenture Act, Holder(s) of outstanding Securities voting
together as a single class or, as the context may require, Holders of
outstanding Preferred Securities or Holders of outstanding Common Securities
voting separately as a class, who are the record owners of more than 50% of the
aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accumulated and unpaid Distributions
to the date upon which the voting percentages are determined) of all
outstanding Securities of the relevant class.

 

“Ministerial Action” has the meaning set
forth in the terms of the Securities as set forth in Annex I.

 

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

 

(g)                                 a statement that each officer signing the Certificate
has read the covenant or condition and the definitions relating thereto;

 

(h)                                 a brief statement of the nature and scope of the
examination or investigation undertaken by each officer in rendering the
Certificate;

 

(i)                                     a statement that each such officer has made such
examination or investigation as, in such officer’s opinion, is necessary to
enable such officer to express an informed opinion as to whether or not such
covenant or condition has been complied with; and

 

(j)                                     a statement as to whether, in the opinion of each such
officer, such condition or covenant has been complied with.

 

“OID” has the meaning specified in
Annex I.

 

“Option Closing Date” means the date of
closing of any sale of any securities issued pursuant to an over-allotment
option.

 

“Original Declaration” has the meaning set
forth in the recitals.

 

“Paying Agent” has the meaning specified
in Section 7.5.

 

5

 

“Payment Amount” has the meaning set forth
in Section 6.1.

 

“Person” means 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.

 

“Preferred Securities Guarantee” means the
guarantee agreement to be dated as of
                      
      ,             ,
of the Sponsor in respect of the Preferred Securities.

 

“Preferred Security” has the meaning
specified in Section 7.1.

 

“Preferred Security Beneficial Owner”
means, with respect to a Book Entry Interest, a Person who is the beneficial
owner of such Book Entry Interest, as reflected on the books of the Clearing
Agency, or on the books of a Person maintaining an account with such Clearing
Agency (directly as a Clearing Agency Participant or as an indirect
participant, in each case in accordance with the rules of such Clearing
Agency).

 

“Preferred Security Certificate” means a
certificate representing a Preferred Security substantially in the form of Exhibit A-1.

 

“Property Trustee” means the Trustee
meeting the eligibility requirements set forth in Section 5.3.

 

“Property Trustee Account” has the meaning
set forth in Section 3.8(c).

 

“Pro Rata” has the meaning specified in
Annex I.

 

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

 

“Redemption/Distribution Notice” has the
meaning specified in Annex I.

 

“Redemption Price” has the meaning
specified in Annex I.

 

“Regular Trustee” has the meaning set
forth in Section 5.1.

 

“Regulatory Capital Event” has the meaning
specified in Annex I.

 

“Related Party” means, with respect to the
Sponsor, any direct or indirect wholly owned subsidiary of the Sponsor or any
other Person that owns, directly or indirectly, 100% of the outstanding voting
securities of the Sponsor.

 

“Responsible Officer” means, with respect
to the Property Trustee, any officer within the Corporate Trust Office of the
Property Trustee, including any vice president, any assistant vice president,
any assistant treasurer or other officer of the Corporate Trust Office of the
Property 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 

 

6

 

officer to whom
such matter is referred because of that officer’s knowledge of and familiarity
with the particular subject and who shall have direct responsibility for the
administration of this Declaration.

 

“Rule 3a-5” means Rule 3a-5
under the Investment Company Act or any successor rule.

 

“Securities” means the Common Securities
and the Preferred Securities.

 

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

 

“Securities Guarantees” means the Common
Securities Guarantee and the Preferred Securities Guarantee.

 

“Special Event” has the meaning set forth
in Annex I hereto.

 

“Sponsor” or “UNBC” means UnionBanCal
Corporation, a Delaware corporation, or any successor entity in a merger,
consolidation or amalgamation, in its capacity as sponsor of the Trust.

 

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

 

“Successor Delaware Trustee” has the
meaning set forth in Section 5.6(b).

 

“Successor Entity” has the meaning set
forth in Section 3.15(b).

 

“Successor Property Trustee” has the
meaning set forth in Section 3.8(f)(ii).

 

“Successor Securities” has the meaning set
forth in Section 3.15(b).

 

“Super Majority” has the meaning set forth
in Section 2.6(a)(ii).

 

“Tax Event” has the meaning set forth in
Annex I hereto.

 

“Tax Opinion” has the meaning set forth in
Annex I hereto.

 

“Treasury Regulations” means the income
tax regulations, including temporary and proposed regulations, promulgated
under the Code by the United States Treasury.

 

“Trust” has the meaning set forth in the
recitals.

 

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

 

7

 

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

 

“Trust Property” means (i) the Debt
Securities, (ii) any cash on deposit in, or owing to, the Property Trustee
Account and (iii) all proceeds and rights in respect of the foregoing to
be held by the Property Trustee pursuant to the terms of this Declaration for
the benefit of the Holders.

 

“25% in liquidation amount of the
Securities” means, except as provided in the terms of the Preferred Securities
or by the Trust Indenture Act, Holder(s) of outstanding Securities voting
together as a single class or, as the context may require, Holders of
outstanding Preferred Securities or Holders of outstanding Common Securities
voting separately as a class, who are the record owners of 25% or more of the
aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accumulated and unpaid Distributions
to the date upon which the voting percentages are determined) of all
outstanding Securities of the relevant class.

 

“Underwriting Agreement” means the
Underwriting Agreement for the offering and sale of Preferred Securities in the
form of Exhibit C.

 

ARTICLE II

TRUST INDENTURE ACT

 

SECTION 2.1.  TRUST INDENTURE
ACT:  APPLICATION.

 

(a)                                  This Declaration is subject to the provisions of the
Trust Indenture Act that are required to be part of this Declaration and shall,
to the extent applicable, be governed by such provisions.

 

(b)                                 The Property Trustee shall be the only Trustee which
is a Trustee for the purposes of the Trust Indenture Act.

 

(c)                                  If, and to the extent that, any provision of this
Declaration limits, qualifies or conflicts with the duties imposed by
Sections 310 to 317, inclusive, of the Trust Indenture Act, such duties
imposed under the Trust Indenture Act shall control.

 

(d)                                 The application of the Trust Indenture Act to this
Declaration shall not affect the nature of the Securities as equity securities
representing undivided beneficial interests in the assets of the Trust.

 

SECTION 2.2.  LISTS OF
HOLDERS OF SECURITIES.

 

(a)                                  Each of the Sponsor and the Regular Trustees on behalf
of the Trust shall provide the Property Trustee a list in such form as the
Property Trustee may reasonably require of the names and addresses of the
Holders of the Securities (“List of Holders”) as of such record date, (i) within
14 days after each record date for payment of Distributions, PROVIDED
THAT, neither the Sponsor nor the Regular Trustees on behalf of the Trust shall
be obligated to provide such List of Holders at any time the List of Holders
does not differ from the most recent List of 

 

8

 

Holders given to the Property Trustee by
the Sponsor and the Regular Trustees on behalf of the Trust, and (ii) 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 Property Trustee. The Property Trustee shall
preserve, in as current a form as is reasonably practicable, all information
contained in the Lists of Holders given to it or which it receives in the
capacity as Paying Agent (if acting in such capacity), PROVIDED THAT, the
Property Trustee may destroy any List of Holders previously given to it on
receipt of a new List of Holders.

 

(b)                                 The Property Trustee shall comply with its obligations
under Sections 311(a), 311(b) and 312(b) of the Trust Indenture Act.

 

SECTION 2.3.  REPORTS BY THE PROPERTY TRUSTEE.  Within 60 days after May 15 of each
year, the Property Trustee shall provide to the Holders of the Preferred
Securities such reports as are required by Section 313 of the Trust Indenture
Act, if any, in the form and in the manner provided by Section 313 of the
Trust Indenture Act. The Property Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act.

 

SECTION 2.4.  PERIODIC REPORTS TO PROPERTY TRUSTEE.  Each of the Sponsor and the Regular Trustees
on behalf of the Trust shall provide to the Property Trustee such documents,
reports and information as required by Section 314 of the Trust Indenture
Act (if any) and the compliance certificate required by Section 314 of the
Trust Indenture Act in the form, in the manner and at the times required by Section 314
of the Trust Indenture Act.

 

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

 

SECTION 2.5.  EVIDENCE OF COMPLIANCE WITH CONDITIONS
PRECEDENT.  Each of the Sponsor and
the Regular Trustees on behalf of the Trust shall provide to the Property
Trustee such evidence of compliance with any conditions precedent, if any,
provided for in this Declaration that relate to any of the matters set forth in
Section 314(c) of the Trust Indenture Act. Any certificate or opinion
required to be given by an officer pursuant to Section 314(c)(1) of
the Trust Indenture Act may be given in the form of an Officers’ Certificate.

 

SECTION 2.6.  EVENTS OF
DEFAULT; WAIVER.

 

(a)                                  The Holders of a Majority in liquidation amount of
Preferred Securities may by vote on behalf of the Holders of all of the
Preferred Securities, waive any past Event of Default in respect of the
Preferred Securities and its consequences, PROVIDED THAT, if the underlying
Event of Default under the Indenture:

 

(i)                                     is not waivable under the Indenture, the Event of
Default under the Declaration shall also not be waivable; or

 

9

 

(ii)                                  requires the consent or vote of greater than a
majority in principal amount of the Holders of the Debt Securities (a “Super
Majority”) to be waived under the Indenture, the Event of Default under the
Declaration may only be waived by the vote of the Holders of at least the
proportion in liquidation amount of the Preferred Securities that the relevant
Super Majority represents of the aggregate principal amount of the Debt
Securities outstanding.

 

The foregoing provisions of this Section 2.6(a) shall
be in lieu of Section 316(a)(1)(B) of the Trust Indenture Act and
such Section 316(a)(1)(B) of the Trust Indenture Act is hereby
expressly excluded from this Declaration and the Securities, as permitted by
the Trust Indenture Act. Upon such waiver, any such default shall cease to
exist, and any Event of Default with respect to the Preferred Securities
arising therefrom shall be deemed to have been cured, for every purpose of this
Declaration, but no such waiver shall extend to any subsequent or other default
or an Event of Default with respect to the Preferred Securities or impair any
right consequent thereon. Any waiver by the Holders of the Preferred Securities
of an Event of Default with respect to the Preferred Securities shall also be
deemed to constitute a waiver by the Holders of the Common Securities of any
such Event of Default with respect to the Common Securities for all purposes of
this Declaration without any further act, vote, or consent of the Holders of
the Common Securities.

 

(b)                                 The Holders of a Majority in liquidation amount of the
Common Securities may, by vote, on behalf of the Holders of all of the Common
Securities, waive any past Event of Default with respect to the Common
Securities and its consequences, PROVIDED THAT, if the underlying Event of
Default under the Indenture:

 

(i)                                     is not waivable under the Indenture, except where the
Holders of the Common Securities are deemed to have waived such Event of
Default under the Declaration as provided below in this Section 2.6(b),
the Event of Default under the Declaration shall also not be waivable; or

 

(ii)                                  requires the consent or vote of a Super Majority to be
waived, except where the Holders of the Common Securities are deemed to have
waived such Event of Default under the Declaration as provided below in this Section 2.6(b),
the Event of Default under the Declaration may only be waived by the vote of
the Holders of at least the proportion in liquidation amount of the Common
Securities that the relevant Super Majority represents of the aggregate
principal amount of the Debt Securities outstanding;

 

PROVIDED FURTHER, that each Holder of
Common Securities will be deemed to have waived any such Event of Default and
all Events of Default with respect to the Common Securities and its
consequences until all Events of Default with respect to the Preferred
Securities have been cured, waived or otherwise eliminated, and until such
Events of Default have been so cured, waived or otherwise eliminated, the
Property Trustee shall act solely on behalf of the Holders of the Preferred
Securities and only the Holders of the Preferred Securities will have the right
to direct the Property Trustee to act in accordance with the terms of the
Securities. The foregoing provisions of this Section 2.6(b) shall be
in lieu of Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust
Indenture Act and such Sections 316(a)(1)(A) and 316(a)(1)(B) of the
Trust Indenture Act are hereby expressly excluded from this Declaration and the
Securities, as

 

10

 

permitted by the
Trust Indenture Act. Subject to the foregoing provisions of this Section 2.6(b),
upon such waiver, any such default shall cease to exist and any Event of
Default with respect to the Common Securities arising therefrom shall be deemed
to have been cured for every purpose of this Declaration, but no such waiver
shall extend to any subsequent or other default or Event of Default with
respect to the Common Securities or impair any right consequent thereon.

 

(c)                                  A waiver of an Event of Default under the Indenture by
the Property Trustee at the direction of the Holders of the Preferred
Securities, constitutes a waiver of the corresponding Event of Default under
this Declaration. The foregoing provisions of this Section 2.6(c) shall
be in lieu of Section 316(a)(1)(B) of the Trust Indenture Act and
such Section 316(a)(1)(B) of the Trust Indenture Act is hereby
expressly excluded from this Declaration and the Securities, as permitted by
the Trust Indenture Act.

 

SECTION 2.7.  EVENT OF
DEFAULT; NOTICE.

 

(a)                                  The Property Trustee shall, within 90 days after the
occurrence of an Event of Default actually known to a Responsible Officer of
the Property Trustee, transmit by mail, first class postage prepaid, to the
Holders of the Securities, notices of all such defaults with respect to the
Securities unless such defaults have been cured or waived before the giving of
such notice (the term “defaults” for the purposes of this Section 2.7(a) being
hereby defined to be an Event of Default as defined in the Indenture, not
including any periods of grace provided for therein and irrespective of the
giving of any notice provided therein); PROVIDED THAT, except for a default in
the payment of principal of (or premium, if any) or interest on any of the Debt
Securities or in the payment of any sinking fund installment established for
the Debt Securities, the Property Trustee shall be protected in withholding
such notice if and so long as a Responsible Officer of the Property Trustee in
good faith determines that the withholding of such notice is in the interests
of the Holders of the Securities. Any such notice given pursuant to this Section 2.7(a) shall
state that an Event of Default under the Indenture also constitutes an Event of
Default under this Declaration.

 

(b)                                 The Property Trustee shall not be deemed to have
knowledge of any default except:

 

(i)                                     a default under Sections 5.1(a) and 5.1(b) of
the Indenture; or

 

(ii)                                  any default as to which the Property Trustee shall
have received written notice or of which a Responsible Officer of the Property
Trustee charged with the administration of the Declaration shall have actual
knowledge.

 

ARTICLE III

ORGANIZATION

 

SECTION 3.1.  NAME. 
The Trust is named “UnionBanCal Finance Trust [*]” as such name may be
modified from time to time by the Regular Trustees following written notice to
the Holders of Securities and the other Trustees. The Trust’s activities may be
conducted under the name of the Trust or any other name deemed advisable by the
Regular Trustees.

 

11

 

SECTION 3.2.  OFFICE.  The address of the principal office of the
Trust is c/o UnionBanCal Corporation, 400 California Street, San
Francisco, CA, 94104. On at least ten Business Days written notice to the
Holders of Securities, the Regular Trustees may designate another principal
office.

 

SECTION 3.3.  PURPOSE.  The exclusive purposes and functions of the
Trust are (a) to issue and sell Securities and use the proceeds from such
sale to acquire the Debt Securities, and (b) except as otherwise limited
herein, to engage in only those other activities necessary, advisable or
incidental thereto. The Trust shall not borrow money, issue debt or reinvest
proceeds derived from investments, pledge any of its assets, or otherwise
undertake (or permit to be undertaken) any activity that would cause the Trust
not to be classified for United States federal income tax purposes as a grantor
trust.

 

SECTION 3.4.  AUTHORITY.

 

(a)                                  Subject to the limitations provided in this
Declaration and to the specific duties of the Property Trustee and the Sponsor,
the Regular Trustees shall have exclusive and complete authority to carry out
the purposes of the Trust. An action taken by the Regular Trustees in
accordance with their powers shall constitute the act of and serve to bind the Trust
and an action taken by the Property Trustee or the Sponsor on behalf of the
Trust in accordance with its powers shall constitute the act of and serve to
bind the Trust. In dealing with the Trustees or the Sponsor acting on behalf of
the Trust, no person shall be required to inquire into the authority of the
Trustees or the Sponsor to bind the Trust. Persons dealing with the Trust are
entitled to rely conclusively on the power and authority of the Trustees and
the Sponsor as set forth in this Declaration.

 

(b)                                 Except as expressly set forth in this Declaration and
except if a meeting of the Regular Trustees is called with respect to any
matter over which the Regular Trustees have power to act, any power of the
Regular Trustees may be exercised by, or with the consent of, any one such
Regular Trustee.

 

(c)                                  A Regular Trustee may, by power of attorney consistent
with applicable law, delegate to any other natural person over the age of 21
his or her power for the purposes of executing any documents which the Regular
Trustees have power and authority to cause the Trust to execute pursuant to Section 3.6.

 

SECTION 3.5.  TITLE TO PROPERTY OF THE TRUST.  Except as provided in Section 3.8 with
respect to the Debt Securities and the Property Trustee Account or as otherwise
provided in this Declaration, legal title to all assets of the Trust shall be
vested in the Trust. The Holders of Securities shall not have legal title to
any part of the assets of the Trust, but shall have an undivided beneficial
interest in the assets of the Trust.

 

SECTION 3.6.  POWERS AND DUTIES OF THE REGULAR TRUSTEES.  The Regular Trustees shall have the power,
duty and authority to cause the Trust to engage in the following activities:

 

(a)                                  to issue and sell the Securities in accordance with this
Declaration; PROVIDED, HOWEVER, that the Trust may issue no more than one
series of Preferred Securities and no

 

12

 

more than one series of Common Securities,
and PROVIDED FURTHER, that there shall be no interests in the Trust other than
the Securities, and the issuance of Securities shall be limited to a
simultaneous issuance of both Preferred Securities and Common Securities on the
Closing Date and Option Closing Date, if any;

 

(b)                                 in connection with the issue and sale of the
Securities, at the direction of the Sponsor, to:

 

(i)                                     execute and file with the Commission, at such time as
determined by the Sponsor, a registration statement on Form F-3 prepared
by the Sponsor, including any amendments thereto in relation to the Preferred
Securities;

 

(ii)                                  if the Preferred Securities are to be listed on a
stock exchange, to execute and file an application, prepared by the Sponsor, at
such time as determined by the Sponsor, to the New York Stock Exchange or any other
national stock exchange for listing, or quotation on an interdealer quotation
system, of the Preferred Securities;

 

(iii)                               execute and deliver letters, documents, or instruments
with The Depository Trust Company relating to the Preferred Securities;

 

(iv)                              execute and file with the Commission, at such time as
determined by the Sponsor, a registration statement on Form 8-A, including
any amendments thereto, prepared by the Sponsor relating to the registration of
the Preferred Securities under Section 12(b) of the Exchange Act;

 

(v)                                 execute and deliver for and on behalf of the Trust the
Underwriting Agreement and other related agreements providing for the sale of
the Securities;

 

(vi)                              execute and file any documents prepared by the
Sponsor, or take any acts as determined by the Sponsor to be necessary in order
to qualify or register all or part of the Preferred Securities in any State in
which the Sponsor has determined to qualify or register such Preferred
Securities for sale or resale, as the case may be; and

 

(vii)                           take all actions and perform such duties as may be
required of the Regular Trustees to open checking, deposit or similar banking
accounts as may be necessary in connection with the issuance and sale of the
Securities;

 

(c)                                  to acquire the Debt Securities with the proceeds of
the sale of the Preferred Securities and the Common Securities; PROVIDED,
HOWEVER, that the Regular Trustees shall cause legal title to the Debt
Securities to be held of record in the name of the Property Trustee for the benefit
of the Holders of the Preferred Securities and the Holders of Common
Securities;

 

(d)                                 to give the Sponsor and the Property Trustee prompt
written notice of the occurrence of a Special Event; PROVIDED THAT the Regular
Trustees shall consult with the Sponsor and the Property Trustee before taking
or refraining from taking any Ministerial Action in relation to a Special
Event;

 

13

 

(e)                                  to establish a record date with respect to all actions
to be taken hereunder that require a record date be established, including and
with respect to, for the purposes of Section 316 (c) of the Trust
Indenture Act, Distributions, voting rights, redemptions and exchanges, and to
issue relevant notices to the Holders of Preferred Securities and Holders of
Common Securities as to such actions and applicable record dates;

 

(f)                                    to take all actions and perform such duties as may be
required of the Regular Trustees pursuant to the terms of the Securities;

 

(g)                                 to bring or defend, pay, collect, compromise,
arbitrate, resort to legal action, or otherwise adjust claims or demands of or
against the Trust (“Legal Action”), unless pursuant to Section 3.8(e), the
Property Trustee has the exclusive power to bring such Legal Action;

 

(h)                                 to employ or otherwise engage employees and agents
(who may be designated as officers with titles) and managers, contractors,
advisors and consultants, and pay reasonable compensation for such services;

 

(i)                                     to cause the Trust to comply with the Trust’s
obligations under the Trust Indenture Act;

 

(j)                                     to give the certificate required by Section 314(a)(4) of
the Trust Indenture Act to the Property Trustee, which certificate may be
executed by any Regular Trustee;

 

(k)                                  to incur expenses that are necessary or incidental to
carry out any of the purposes of the Trust;

 

(l)                                     to act as, or appoint another Person to act as,
registrar, transfer agent or Paying Agent for the Securities;

 

(m)                               to give prompt written notice to the Holders of the
Securities of any notice received from the Debt Security Issuer of its election
(i) to defer payments of interest on the Debt Securities by extending the
interest payment period under the Indenture or (ii) to shorten the stated
maturity of the Debt Securities pursuant to the Indenture;

 

(n)                                 to execute and deliver all documents or instruments,
perform all duties and powers, and do all things for and on behalf of the Trust
in all matters necessary or incidental to the foregoing;

 

(o)                                 to take all action that may be necessary or
appropriate for the preservation and the continuation of the Trust’s valid
existence, rights, franchises and privileges as a statutory trust under the
laws of the State of Delaware and of each other jurisdiction in which such
existence is necessary to protect the limited liability of the Holders of the
Preferred Securities or to enable the Trust to effect the purposes for which
the Trust was created;

 

(p)                                 to take any action, not inconsistent with this
Declaration or with applicable law, that the Regular Trustees determine in
their discretion to be necessary or desirable in carrying out the activities of
the Trust as set out in this Section 3.6, including, but not limited to:

 

14

 

(i)                                     causing the Trust not to be deemed to be an Investment
Company required to be registered under the Investment Company Act;

 

(ii)                                  causing the Trust to be classified for United States
federal income tax purposes as a grantor trust; and

 

(iii)                               cooperating with the Debt Security Issuer to ensure
that the Debt Securities will be treated as indebtedness of the Debt Security
Issuer for United States federal income tax purposes,

 

PROVIDED THAT such action does not
adversely affect the interests of Holders or vary the terms of the Preferred
Securities;

 

(q)                                 to take all action necessary to cause all applicable
tax returns and tax information reports that are required to be filed with
respect to the Trust to be duly prepared and filed by the Regular Trustees, on
behalf of the Trust;

 

(r)                                    to take all actions and perform such duties as may be
required of the Regular Trustees pursuant to Section 11.2 herein; and

 

(s)                                  to the extent provided in this Declaration, the
winding up of the affairs of and liquidation of the Trust and the preparation,
execution and filing of the Certificate of Cancellation with the Secretary of
State of the State of Delaware.

 

The Regular Trustees must exercise the
powers set forth in this Section 3.6 in a manner that is consistent with
the purposes and functions of the Trust set out in Section 3.3, and the
Regular Trustees shall not take any action that is inconsistent with the
purposes and functions of the Trust set forth in Section 3.3.

 

Subject to this Section  3.6,
the Regular Trustees shall have none of the powers or the authority of the Property
Trustee set forth in Section 3.8.

 

Any expenses incurred by the Regular
Trustees pursuant to this Section 3.6 shall be reimbursed by the Sponsor.

 

The Trust initially appoints the Property
Trustee as transfer agent and registrar for the Preferred Securities.

 

SECTION 3.7.  PROHIBITION OF
ACTIONS BY THE TRUST AND THE TRUSTEES.

 

(a)                                  The Trust shall not, and the Trustees (including the
Property Trustee) shall cause the Trust not to engage in any activity other
than as required or authorized by this Declaration. In particular the Trust
shall not and the Trustees (including the Property Trustee) shall cause the
Trust not to:

 

15

 

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

 

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

 

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

 

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

 

(v)                                 possess any power or otherwise act in such a way as to
vary the Trust assets or the terms of the Securities in any way whatsoever
except as permitted by the terms of this Declaration;

 

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

 

(vii)                           other than as provided in this Declaration or
Annex I hereto, (A) direct the time, method and place of exercising
any trust or power conferred upon the Debt Security Trustee with respect to the
Debt Securities, (B) waive any past default that is not waivable under the
Indenture, (C) exercise any right to rescind or annul any declaration that
the principal of all the Debt Securities shall be due and payable, or (D) consent
to any amendment, modification or termination of the Indenture or the Debt
Securities where such consent shall be required unless the Trust shall have
received an opinion of counsel to the effect that such modification will not
cause more than an insubstantial risk that (x) the Trust will be deemed an
Investment Company required to be registered under the Investment Company Act
or (y) the Trust will not be classified as a grantor trust for United
States federal income tax purposes.

 

SECTION 3.8.  POWERS AND
DUTIES OF THE PROPERTY TRUSTEE.

 

(a)                                  The legal title to the Debt Securities shall be owned
by and held of record in the name of the Property Trustee (acting in such
capacity) for the benefit of the Trust and the Holders of the Securities. The
right, title and interest of the Property Trustee to the Debt Securities shall
vest automatically in each Person who may hereafter be appointed as Property
Trustee in accordance with Section 5.6. Such vesting and cessation of
title shall be effective whether or not conveyancing documents with regard to
the Debt Securities have been executed and delivered.

 

(b)                                 The Property Trustee shall not transfer its right,
title and interest in the Debt Securities to the Regular Trustees or to the
Delaware Trustee (if the Property Trustee does not also act as Delaware
Trustee).

 

(c)                                  The Property Trustee shall:

 

(i)                                     establish and maintain a segregated non-interest
bearing trust account (the “Property Trustee Account”) in the name of and under
the exclusive control of the

 

16

 

Property Trustee on behalf of the Holders of the Securities and, upon the
receipt of payments of funds made in respect of the Debt Securities held by the
Property Trustee (which payments include, but are not limited to, distributions
made pursuant to the Securities Guarantees), deposit such funds into the
Property Trustee Account and make payments to the Holders of the Preferred
Securities and Holders of the Common Securities from the Property Trustee
Account in accordance with Section 6.1. Funds in the Property Trustee
Account shall be held uninvested until disbursed in accordance with this
Declaration. The Property Trustee Account shall be an account that is
maintained with a banking institution the rating on whose long-term unsecured
indebtedness is at least equal to the rating assigned to the Preferred
Securities by a “nationally recognized statistical rating organization,” as
that term is defined for purposes of Rule 436(g)(2) under the
Securities Act;

 

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

 

(iii)                               engage in such ministerial activities as shall be
necessary or appropriate to effect the distribution of the Trust Property in
accordance with the terms of this Declaration; and

 

(iv)                              to the extent provided for in this Declaration, take
such ministerial actions as are necessary in connection with the winding up of
the affairs of and liquidation of the Trust and the preparation, execution and
filing of the Certificate of Cancellation with the Secretary of State of the
State of Delaware.

 

(d)                                 The Property Trustee shall take all actions and
perform such duties as may be specifically required of the Property Trustee
pursuant to the terms of the Securities.

 

(e)                                  The Property Trustee shall take any Legal Action which
arises out of or in connection with, an Event of Default of which a Responsible
Officer of the Property Trustee has actual knowledge, or the Property Trustee’s
duties and obligations under this Declaration or the Trust Indenture Act;
PROVIDED HOWEVER, that if an Event of Default has occurred and is continuing
and such event is attributable to the failure of the Debt Security Issuer to
pay interest or principal on the Debt Securities on the date such interest or
principal is otherwise payable (or in the case of redemption, on the redemption
date), then a Holder of Preferred Securities may directly institute a
proceeding for enforcement of payment to such Holder of the principal of or
interest on the Debt Securities having a principal amount equal to the
aggregate liquidation amount of the Preferred Securities of such Holder (a “Direct
Action”) on or after the respective due date specified in the Debt Securities
and PROVIDED, FURTHER, that if the Property Trustee fails to enforce its rights
under the Debt Securities, any Holder of Preferred Securities may institute a
legal proceeding against any person to enforce the Property Trustee’s rights
under the Debt Securities. In connection with such Direct Action, the rights of
the Holders of the Common Securities will be subrogated to the rights of such
Holder of Preferred Securities to the extent of any payment made by the Debt
Security Issuer to such Holder of Preferred Securities in such Direct Action.
Except as provided in the preceding sentences, the Holders of Preferred

 

17

 

Securities will not be able to exercise
directly any other remedy available to the holders of the Debt Securities.

 

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

 

(i)                                     the Trust has been completely liquidated and the
proceeds of the liquidation distributed to the Holders of Securities pursuant
to the terms of the Securities; or

 

(ii)                                  a successor Property Trustee has been appointed and
has accepted that appointment in accordance with Section 5.6 (a “Successor
Property Trustee”).

 

(g)                                 The Property Trustee shall have the legal power to
exercise all of the rights, powers and privileges of a Holder of Debt
Securities under the Indenture and, if an Event of Default actually known to a
Responsible Officer of the Property Trustee occurs and is continuing, the
Property Trustee shall, for the benefit of Holders of the Securities, enforce
its rights as holder of the Debt Securities subject to the rights of the
Holders pursuant to the terms of such Securities.

 

(h)                                 Subject to this Section 3.8, the Property Trustee
shall have none of the duties, liabilities, powers or the authority of the
Regular Trustees set forth in Section 3.6.

 

The Property Trustee must exercise the
powers set forth in this Section 3.8 in a manner that is consistent with
the purposes and functions of the Trust set out in Section 3.3, and the
Property Trustee shall not take any action that is inconsistent with the
purposes and functions of the Trust set out in Section 3.3.

 

SECTION 3.9.  CERTAIN DUTIES
AND RESPONSIBILITIES OF THE PROPERTY TRUSTEE.

 

(a)                                  The Property Trustee, before the occurrence of any
Event of Default and after the curing or waiving of all Events of Default that
may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Declaration and no implied covenants shall be
read into this Declaration against the Property Trustee. In case an Event of
Default has occurred (that has not been cured or waived pursuant to Section 2.6)
of which a Responsible Officer of the Property Trustee has actual knowledge,
the Property Trustee shall exercise such of the rights and powers vested in it
by this Declaration, and use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs.

 

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

 

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

 

18

 

(A)                              the duties and obligations of the Property Trustee
shall be determined solely by the express provisions of this Declaration and
the Property Trustee shall not be liable except for the performance of such
duties and obligations as are specifically set forth in this Declaration, and
no implied covenants or obligations shall be read into this Declaration against
the Property Trustee; and

 

(B)                                in the absence of bad faith on the part of the
Property Trustee, the Property Trustee may conclusively rely, as to the truth
of the statements and the correctness of the opinions expressed therein, upon
any certificates or opinions furnished to the Property Trustee and conforming
to the requirements of this Declaration; but in the case of any such
certificates or opinions that by any provision hereof are specifically required
to be furnished to the Property Trustee, the Property Trustee shall be under a
duty to examine the same to determine whether or not they conform to the
requirements of this Declaration (but need not confirm or investigate the
accuracy of any mathematical calculations or other facts stated therein);

 

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

 

(iii)                               the Property Trustee shall not be liable with respect
to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of not less than a Majority in liquidation
amount of the Securities relating to the time, method and place of conducting
any proceeding for any remedy available to the Property Trustee, or exercising
any trust or power conferred upon the Property Trustee under this Declaration;

 

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

 

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

 

(vi)                              the Property Trustee shall have no duty or liability
for or with respect to the value, genuineness, existence or sufficiency of the
Debt Securities or the payment of any taxes or assessments levied thereon or in
connection therewith;

 

(vii)                           the Property Trustee shall not be liable for any
interest on any money received by it except as it may otherwise agree in
writing with the Sponsor. Money held

 

19

 

by the Property Trustee need not be segregated from other funds held by it
except in relation to the Property Trustee Account maintained by the Property
Trustee pursuant to Section 3.8(c)(i) and except to the extent
otherwise required by law; and

 

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

 

SECTION 3.10.  CERTAIN RIGHTS
OF PROPERTY TRUSTEE.

 

(a)                                  Subject to the provisions of Section 3.9:

 

(i)                                     the Property Trustee may conclusively rely and shall
be fully protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document (whether in its original or facsimile form) believed by it to
be genuine and to have been signed, sent or presented by the proper party or
parties (and need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein);

 

(ii)                                  any direction or act of the Sponsor or the Regular
Trustees acting on behalf of the Trust contemplated by this Declaration shall
be sufficiently evidenced by an Officers’ Certificate;

 

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

 

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

 

(v)                                 the Property Trustee may consult with counsel of its
selection or other experts and the advice or opinion of such counsel and
experts with respect to legal matters or advice within the scope of such
counsel’s or experts’ area of expertise shall be full and complete
authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in accordance with such advice or
opinion. Such counsel may be counsel to the Sponsor or any of its Affiliates,
and may include any of its employees. The Property Trustee shall have the right
at any time to seek instructions concerning the administration of this
Declaration from any court of competent jurisdiction;

 

(vi)                              the Property Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Declaration at the
request or direction of any Holder,

 

20

 

unless such Holder shall have provided to the Property Trustee security and
indemnity, reasonably satisfactory to the Property Trustee, against the fees,
charges, costs, expenses (including attorneys’ fees and expenses and the
expenses of the Property Trustee’s agents, nominees or custodians) and
liabilities that might be incurred by it in complying with such request or
direction, including such reasonable advances as may be requested by the
Property Trustee PROVIDED, that, nothing contained in this Section 3.10(a)(vi) shall
be taken to (a) require the Holders of Preferred Securities to offer such
indemnity in the event such Holders direct the Property Trustee to take any
action it is empowered to take under this Declaration following an Event of
Default or (b) relieve the Property Trustee, upon the occurrence of an
Event of Default, of its obligation to exercise the rights and powers vested in
it by this Declaration;

 

(vii)                           the Property 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 Property Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit but shall
incur no additional liability of any kind by reason of such inquiry;

 

(viii)                        the Property Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or
through agents, custodians, nominees or attorneys and the Property 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;

 

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

 

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

 

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

 

21

 

(xii)                         the Property Trustee shall not be liable for any
action taken, suffered, or omitted to be taken by it in good faith and
reasonably believed by it to be authorized or within the discretion or rights
or powers conferred upon it by this Declaration;

 

(xiii)                          the Property Trustee shall not be deemed to have
notice of any default or Event of Default unless a Responsible Officer of the
Property Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default or Event of Default is received by the
Property Trustee at the Corporate Trust Office of the Property Trustee, and
such notice references the Preferred Securities and this Declaration;

 

(xiv)                         in the event that direction from the Regular Trustees
is required hereunder, the Property Trustee, at its option, may make
application to the Regular Trustees for written instructions and any such
application shall set forth in writing any action proposed to be taken or
omitted by the Property Trustee under this Declaration and the date on and/or
after which such action shall be taken or such omission shall be
effective.  The Property Trustee shall
not be liable for any action taken by, or omission of, the Property Trustee in
accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than three Business
Days after the date any Regular Trustee actually receives such application,
unless any such Regular Trustee shall have consented in writing to any earlier
date) unless prior to taking any such action (or the effective date in the case
of an omission), the Property Trustee shall have received written instructions
in response to such application providing the directions required to be given
hereunder;

 

(xv)                            in the event that the Property Trustee is also acting
as authenticating agent, Paying Agent, transfer agent or security registrar,
the rights, privileges, immunities, benefits and protections afforded to the
Property Trustee pursuant to this Article  III shall also be afforded to
such authenticating agent, Paying Agent, transfer agent or security registrar
and to each agent, custodian and other Person employed to act hereunder; and

 

(xvi)                         in no event shall the Property Trustee be responsible
or liable for special, indirect or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of
whether the Property Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action.

 

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

 

SECTION 3.11.  DELAWARE TRUSTEE.  Notwithstanding any other provision of this
Declaration other than Section 5.2, the Delaware Trustee shall not be
entitled to exercise any powers, nor shall the Delaware Trustee have any of the
duties and responsibilities of the Regular Trustees, the Property Trustee or
the Trustees generally (except as may be required under the Statutory Trust
Act) described in this Declaration. Except as set forth in Section 5.2, the

 

22

 

Delaware
Trustee shall be a Trustee for the sole and limited purpose of fulfilling the
requirements of Section 3807(a) of the Statutory Trust Act.  No implied covenants or obligations shall be
read into this Declaration against the Delaware Trustee.

 

SECTION 3.12.  EXECUTION OF DOCUMENTS Unless
otherwise determined by the Regular Trustees, and except as otherwise required
by the Statutory Trust Act, any Regular Trustee is authorized to execute on behalf
of the Trust any documents that the Regular Trustees have the power and
authority to execute pursuant to Section 3.6; PROVIDED THAT, the
registration statement referred to in Section 3.6(b)(i), including any
amendments thereto, shall, subject to Section 3.4(c), be signed by all of
the Regular Trustees.

 

SECTION 3.13.  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE
OF SECURITIES.  The recitals
contained in this Declaration and the Securities shall be taken as the
statements of the Sponsor, and the Trustees do not assume any responsibility
for their correctness. The Trustees make no representations as to the value or
condition of the property of the Trust or any part thereof. The Trustees make
no representations as to the validity or sufficiency of this Declaration or the
Securities.

 

SECTION 3.14.  DURATION OF TRUST.  The Trust, unless terminated pursuant to the
provisions of Article VIII hereof, shall have existence for
                  
(    ) years from
                    
      ,
          .

 

SECTION 3.15.  MERGERS.

 

(a)                                  The Trust may not consolidate, amalgamate, merge with
or into, or be replaced by, or convey, transfer or lease its properties and
assets as an entirety or substantially as an entirety to any corporation or
other body, except as described in Section 3.15(b) and (c).

 

(b)                                 The Trust may, with the consent of the Regular
Trustees or, if there are more than two, a majority of the Regular Trustees and
without the consent of the Holders of the Securities, the Delaware Trustee or
the Property Trustee, consolidate, amalgamate, merge with or into, or be
replaced by a trust organized as such under the laws of any State; PROVIDED
that

 

(i)                                     such successor entity (the “Successor Entity”) either:

 

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

 

(B)                                substitutes for the Preferred Securities other
securities having substantially the same terms as the Preferred Securities (the
“Successor Securities”) so long as the Successor Securities rank the same as
the Preferred Securities rank with respect to Distributions and payments upon
liquidation, redemption and otherwise;

 

(ii)                                  the Preferred Securities or any Successor Securities
are listed, or any Successor Securities will be listed upon notification of
issuance, on any national securities exchange or another organization on which
the Preferred Securities are then listed;

 

23

 

(iii)                               the Debt Security Issuer expressly acknowledges a
trustee of the Successor Entity that possesses the same powers and duties as
the Property Trustee as the Holder of the Debt Securities;

 

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

 

(v)                                 such merger, consolidation, amalgamation or
replacement does not adversely affect the rights, preferences and privileges of
the Holders of the Securities (including any Successor Securities) in any
material respect (other than with respect to any dilution of the Holders’
interest in the Successor Entity);

 

(vi)                              such Successor Entity has a purpose substantially
identical to that of the Trust;

 

(vii)                           prior to such merger, consolidation, amalgamation or
replacement, the Sponsor and the Property Trustee have received an opinion of
nationally recognized independent counsel to the Trust experienced in such
matters to the effect that:

 

(A)                              such merger, consolidation, amalgamation or
replacement does not adversely affect the rights, preferences and privileges of
the Holders of the Securities (including any Successor Securities) in any
material respect (other than with respect to any dilution of the Holders’
interest in the Successor Entity); and

 

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

 

(viii)                        the Sponsor guarantees the obligations of the
Successor Entity under the Successor Securities at least to the extent provided
by the Securities Guarantees.

 

(c)                                  Notwithstanding Section 3.15(b), the Trust shall
not, except with the consent of Holders of 100% in liquidation amount of the
Securities, consolidate, amalgamate, merge with or into, or be replaced by any
other entity or permit any other entity to consolidate, amalgamate, merge with
or into, or replace it, if such consolidation, amalgamation, merger or
replacement would cause the Trust or the Successor Entity to be classified as
other than a grantor trust for United States federal income tax purposes.

 

ARTICLE IV

SPONSOR

 

SECTION 4.1.  SPONSOR’S PURCHASE OF COMMON SECURITIES.  On the Closing Date the Sponsor will purchase
all of the Common Securities issued by the Trust, in an amount at least equal
to 3% of the capital of the Trust (including for this purpose the maximum
amount of Preferred Securities, if any, that may be issued on the Option
Closing Date pursuant to the exercise of the over allotment option set forth in
the Underwriting Agreement), at the same time as the Preferred Securities are
sold.

 

24

 

SECTION 4.2.  RESPONSIBILITIES OF THE SPONSOR.  In connection with the issue and sale of the
Preferred Securities, the Sponsor shall have the right and responsibility to
engage in the following activities:

 

(a)                                  prepare for filing by the Trust with the Commission a
registration statement on Form F-3 in relation to the Securities,
including any amendments thereto;

 

(b)                                 if the Preferred Securities are to be listed on a
stock exchange, prepare for execution and filing by the Trust of an
application, prepared by the Sponsor, at such time as determined by the
Sponsor, to the New York Stock Exchange or any other national stock exchange
for listing, or quotation on an interdealer quotation system, of the Preferred
Securities;

 

(c)                                  prepare for execution and filing by the Trust of
documents, or instruments to be delivered to The Depository Trust Company
relating to the Preferred Securities;

 

(d)                                 prepare for execution and filing by the Trust of a
registration statement on Form 8-A, including any amendments thereto,
prepared by the Sponsor relating to the registration of the Preferred
Securities under Section 12(b) of the Exchange Act;

 

(e)                                  determine the States in which to take appropriate
action to qualify or register for sale all or part of the Preferred Securities
and to do any and all such acts, other than actions which must be taken by the
Trust, and advise the Trust of actions it must take, and prepare for execution
and filing any documents to be executed and filed by the Trust, as the Sponsor
deems necessary or advisable in order to comply with the applicable laws of any
such States; and

 

(f)                                    negotiate the terms of, and execute and deliver for
and on behalf of the Trust, the Underwriting Agreement providing for the sale
of the Preferred Securities.

 

ARTICLE V

TRUSTEES

 

SECTION 5.1.  NUMBER OF TRUSTEES.  The number of Trustees initially shall be
five (5), consisting of three (3) Regular Trustees, the Delaware Trustee and
the Property Trustee and:

 

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

 

(b)                                 after the issuance of any Securities, the number of
Trustees may be increased or decreased by vote of the Holders of a majority in
liquidation amount of the Common Securities voting as a class at a meeting of
the Holders of the Common Securities; PROVIDED, HOWEVER, that the number of
Trustees shall in no event be less than two (2); PROVIDED FURTHER, that (i) one
Trustee, in the case of a natural person, shall be a person who is a resident
of the State of Delaware or, if not a natural person, is an entity which has
its principal place of business in the State of Delaware (the “Delaware Trustee”);
(ii) there shall be at least one Trustee who is an employee of, or is
affiliated with, the Sponsor ( a “Regular Trustee”); and (iii) one Trustee
shall be the Property Trustee, and such Trustee may also serve as Delaware
Trustee if it meets the applicable requirements.

 

25

 

SECTION 5.2.  DELAWARE TRUSTEE.  If required by the Statutory Trust Act, one
Trustee shall be:

 

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

 

(b)                                 if not a natural person, an entity which has its
principal place of business in the State of Delaware, and otherwise meets the
requirements of applicable law;

 

PROVIDED THAT, if the Property Trustee has
its principal place of business in the State of Delaware and otherwise meets
the requirements of applicable law, then the Property Trustee shall also be the
Delaware Trustee and Section 3.11 shall have no application.

 

The initial Delaware Trustee shall be: BNY
Mellon Trust of Delaware.

 

SECTION 5.3.  PROPERTY
TRUSTEE; ELIGIBILITY.

 

(a)                                  There shall at all times be one Trustee which shall
act as Property Trustee which shall:

 

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

 

(ii)                                  be a corporation organized and doing business under
the laws of the United States of America or any State or Territory thereof or
of the District of Columbia, or a corporation or Person permitted by the
Commission to act as an institutional trustee under the Trust Indenture Act,
authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least 50 million U.S. dollars
($50,000,000), and subject to supervision or examination by federal, state,
territorial or District of Columbia authority. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of the supervising or examining authority referred to above, then for the
purposes of this Section 5.3(a)(ii), the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published.

 

(b)                                 If at any time the Property Trustee shall cease to be
eligible to so act under Section 5.3(a), the Property Trustee shall
immediately resign in the manner and with the effect set forth in Section 5.6(c).

 

(c)                                  If the Property Trustee has or shall acquire any “conflicting
interest” within the meaning of Section 310(b) of the Trust Indenture
Act, the Property Trustee and the Holder of the Common Securities (as if it
were the obligor referred to in Section 310(b) of the Trust Indenture
Act) shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

 

(d)                                 The Preferred Securities Guarantee shall be deemed to
be specifically described in this Declaration for purposes of clause (i) of the
first provision contained in Section 310(b) of the Trust Indenture
Act.

 

26

 

(e)                                  The initial Property Trustee shall be: The Bank of New
York Mellon Trust Company, N.A.

 

SECTION 5.4.  CERTAIN QUALIFICATIONS OF REGULAR TRUSTEES
AND DELAWARE TRUSTEE GENERALLY.  Each
Regular Trustee and the Delaware Trustee (unless the Property Trustee also acts
as Delaware Trustee) shall be either a natural person who is at least 21 years
of age or a legal entity that shall act through one or more Authorized
Officers.

 

SECTION 5.5.  REGULAR TRUSTEES. (a)                    The initial Regular Trustees shall be:  David I. Matson, David A. Anderson and Morris
W. Hirsch.

 

(b)                                 Except as expressly set forth in this Declaration and
except if a meeting of the Regular Trustees is called with respect to any
matter over which the Regular Trustees have power to act, any power of the
Regular Trustees may be exercised by, or with the consent of, any one such
Regular Trustee.

 

SECTION 5.6.  APPOINTMENT,
REMOVAL AND RESIGNATION OF TRUSTEES.

 

(a)                                  Subject to Section 5.6(b), Trustees may be
appointed or removed without cause at any time:

 

(i)                                     until the issuance of any Securities, by written
instrument executed by the Sponsor; and

 

after the issuance of any Securities, by vote of the Holders of a Majority
in liquidation amount of the Common Securities voting as a class at a meeting
of the Holders of the Common Securities.

 

(b)                                 (i) The Trustee that acts as Property Trustee shall
not be removed in accordance with Section 5.6(a) until a Successor
Property Trustee has been appointed and has accepted such appointment by
written instrument executed by such Successor Property Trustee and delivered to
the Regular Trustees and the Sponsor; and

 

(ii)                                  the Trustee that acts as Delaware Trustee shall not be
removed in accordance with Section 5.6(a) until a successor Trustee
possessing the qualifications to act as Delaware Trustee under
Sections 5.2 and 5.4 (a “Successor Delaware Trustee”) has been appointed
and has accepted such appointment by written instrument executed by such
Successor Delaware Trustee and delivered to the Regular Trustees and the
Sponsor.

 

(c)                                  A Trustee appointed to office shall hold office until
his successor shall have been appointed or until his death, removal or
resignation. Any Trustee may resign from office (without need for prior or
subsequent accounting) by an instrument in writing signed by the Trustee and
delivered to the Sponsor and the Trust, which resignation shall take effect
upon such delivery or upon such later date as is specified therein; PROVIDED,
HOWEVER, that:

 

(i)                                     no such resignation of the Trustee that acts as the
Property Trustee shall be effective:

 

27

 

(A)                              until a Successor Property Trustee has been appointed
and has accepted such appointment by instrument executed by such Successor
Property Trustee and delivered to the Trust, the Sponsor and the resigning
Property Trustee; or

 

(B)                                until the assets of the Trust have been completely
liquidated and the proceeds thereof distributed to the Holders of the
Securities; and

 

(ii)                                  no such resignation of the Trustee that acts as the
Delaware Trustee shall be effective until a Successor Delaware Trustee has been
appointed and has accepted such appointment by instrument executed by such
Successor Delaware Trustee and delivered to the Trust, the Sponsor and the
resigning Delaware Trustee.

 

(d)                                 The Holders of the Common Securities shall use their
best efforts to promptly appoint a Successor Delaware Trustee or Successor
Property Trustee as the case may be if the Property Trustee or the Delaware
Trustee delivers an instrument of resignation in accordance with this Section 5.6.

 

(e)                                  If no Successor Property Trustee or Successor Delaware
Trustee shall have been appointed and accepted appointment as provided in this Section 5.6
within 60 days after delivery of an instrument of resignation or removal,
the Property Trustee or Delaware Trustee resigning or being removed, as applicable,
at the expense of the Sponsor may petition any court of competent jurisdiction
for appointment of a Successor Property Trustee or Successor Delaware Trustee.
Such court may thereupon, after prescribing such notice, if any, as it may deem
proper and prescribe, appoint a Successor Property Trustee or Successor
Delaware Trustee, as the case may be.

 

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

 

SECTION 5.7.  VACANCIES AMONG TRUSTEES.  If a Trustee ceases to hold office for any
reason and the number of Trustees is not reduced pursuant to Section 5.1,
or if the number of Trustees is increased pursuant to Section 5.1, a vacancy
shall occur. A resolution certifying the existence of such vacancy by the
Regular Trustees or, if there are more than two, a majority of the Regular
Trustees shall be conclusive evidence of the existence of such vacancy. The
vacancy shall be filled with a Trustee appointed in accordance with Section 5.6.

 

SECTION 5.8.  EFFECT OF VACANCIES.  The death, resignation, retirement, removal,
bankruptcy, dissolution, liquidation, incompetence or incapacity to perform the
duties of a Trustee shall not operate to dissolve, terminate or annul the
Trust. Whenever a vacancy in the number of Regular Trustees shall occur, until
such vacancy is filled by the appointment of a Regular Trustee in accordance
with Section 5.6, the Regular Trustees in office, regardless of their
number, shall have all the powers granted to the Regular Trustees and shall
discharge all the duties imposed upon the Regular Trustees by this Declaration.

 

SECTION 5.9.  MEETINGS.  If there is more than one Regular Trustee,
meetings of the Regular Trustees shall be held from time to time upon the call
of any Regular Trustee. Regular meetings of the Regular Trustees may be held at
a time and place fixed by resolution of the Regular Trustees. Notice of any
in-person meetings of the Regular Trustees shall be hand

 

28

 

delivered
or otherwise delivered in writing (including by facsimile, with a hard copy by
overnight courier) not less than 48 hours before such meeting. Notice of any
telephonic meetings of the Regular Trustees or any committee thereof shall be
hand delivered or otherwise delivered in writing (including by facsimile, with
a hard copy by overnight courier) not less than 24 hours before a meeting.
Notices shall contain a brief statement of the time, place and anticipated
purposes of the meeting. The presence (whether in person or by telephone) of a
Regular Trustee at a meeting shall constitute a waiver of notice of such
meeting except where a Regular Trustee attends a meeting for the express purpose
of objecting to the transaction of any activity on the ground that the meeting
has not been lawfully called or convened. Unless provided otherwise in this
Declaration, any action of the Regular Trustees may be taken at a meeting by
vote of a majority of the Regular Trustees present (whether in person or by
telephone) and eligible to vote with respect to such matter, provided that a
Quorum is present, or without a meeting by the unanimous written consent of the
Regular Trustees. In the event there is only one Regular Trustee, any and all
action of such Regular Trustee shall be evidenced by a written consent of such
Regular Trustee.

 

SECTION 5.10.  DELEGATION OF POWER.  A Regular Trustee may, by power of attorney
consistent with applicable law, delegate to any other natural person over the
age of 21 his or her power for the purposes of executing any documents
contemplated in Section 3.6, including any registration statement or
amendment thereto filed with the Commission, or making any other governmental
filing.

 

The Regular Trustees shall have power to
delegate from time to time to such of their number or to officers of the Trust
the doing of such things and the execution of such instruments either in the
name of the Trust or the names of the Regular Trustees or otherwise as the
Regular Trustees may deem expedient, to the extent such delegation is not
prohibited by applicable law or contrary to the provisions of the Trust, as set
forth herein.

 

SECTION 5.11.  MERGER, CONVERSION, CONSOLIDATION OR
SUCCESSION TO BUSINESS.  Any Person
into which the Property Trustee or the Delaware Trustee, as the case may be,
may be merged or converted or with which either may be consolidated, or any
Person resulting from any merger, conversion or consolidation to which the
Property Trustee or the Delaware Trustee, as the case may be, shall be a party,
or any Person succeeding to all or substantially all the corporate trust
business of the Property Trustee or the Delaware Trustee, as the case may be,
shall be the successor of the Property Trustee or the Delaware Trustee, as the
case may be, hereunder, provided such Person shall be otherwise qualified and
eligible under this Article, without the execution or filing of any paper or
any further act on the part of any of the parties hereto.

 

ARTICLE VI

DISTRIBUTIONS

 

SECTION 6.1.  DISTRIBUTIONS.  Holders of Securities shall receive
Distributions (as defined herein) in accordance with the applicable terms of
the relevant Holder’s Securities. Distributions shall be made on the Preferred
Securities and the Common Securities in accordance with the preferences set
forth in their respective terms. If and to the extent that the Debt Security
Issuer makes a payment of interest (including Compound Interest (as defined in
the Indenture, if applicable) and Additional Interest (as defined in the
Indenture, if

 

29

 

applicable)),
premium and/or principal on the Debt Securities held by the Property Trustee
(the amount of any such payment being a “Payment Amount”), the Property Trustee
shall and is directed, to the extent funds are available for that purpose, to
make a distribution (a “Distribution”) of the Payment Amount to Holders.

 

ARTICLE VII

ISSUANCE OF SECURITIES

 

SECTION 7.1.  GENERAL
PROVISIONS REGARDING SECURITIES.

 

(a)                                  The Regular Trustees shall on behalf of the Trust
issue one class of preferred securities representing undivided beneficial
interests in the assets of the Trust having such terms as are set forth in
Annex I (the “Preferred Securities”) and one class of common securities
representing undivided beneficial interests in the assets of the Trust having
such terms as are set forth in Annex I (the “Common Securities”). The
Trust shall issue no securities or other interests in the assets of the Trust
other than the Preferred Securities and the Common Securities.  The issuance of the Preferred Securities and
the Common Securities will not be subject to any preemptive rights of any
Person.

 

(b)                                 The consideration received by the Trust for the
issuance of the Securities shall constitute a contribution to the capital of
the Trust and shall not constitute a loan to the Trust.

 

(c)                                  Upon issuance of the Securities as provided in this
Declaration, the Securities so issued shall be deemed to be validly issued,
fully paid and (subject to Section 10.1) non-assessable.

 

(d)                                 Every Person, by virtue of having become a Holder or a
Preferred Security Beneficial Owner in accordance with the terms of this
Declaration, shall be deemed to have expressly assented and agreed to the terms
of, and shall be bound by, this Declaration and the Securities Guarantees, as
applicable.

 

SECTION 7.2.  SUBORDINATION OF COMMON SECURITIES.  Payment of Distributions on, and the
redemption price of the Preferred Securities and Common Securities, as
applicable, will be made PRO RATA based on the liquidation amount of such
Preferred Securities and Common Securities. However, if on any date on which a
Distribution is to be made, or any redemption date, an Event of Default or an
event of default under the Preferred Securities Guarantee has occurred and is
continuing, no payment of any Distribution on, or Redemption Price of, any of
the Common Securities, and no other payment on account of the redemption,
liquidation or other acquisition of such Common Securities shall be made unless
payment in full in cash of all accumulated and unpaid Distributions on all the
outstanding Preferred Securities for all Distribution periods terminating on or
prior thereto, or in the case of payment of the Redemption Price the full
amount of such Redemption Price on all the outstanding Preferred Securities
then called for redemption, shall have been made or provided for, and all funds
available to the Property Trustee shall first be applied to the payment in full
in cash of all Distributions on, or the Redemption Price of, the Preferred
Securities then due and payable.

 

30

 

SECTION 7.3.  EXECUTION AND
AUTHENTICATION.

 

(a)                                  The Certificates shall be signed on behalf of the
Trust by a Regular Trustee. In case any Regular Trustee of the Trust who shall
have signed any of the Securities shall cease to be such Regular Trustee before
the Certificates so signed shall be delivered by the Trust, such Certificates
nevertheless may be delivered as though the person who signed such Certificates
had not ceased to be such Regular Trustee; and any Certificate may be signed on
behalf of the Trust by such persons who, at the actual date of execution of
such Security, shall be the Regular Trustees of the Trust, although at the date
of the execution and delivery of the Declaration any such person was not such a
Regular Trustee.

 

(b)                                 One Regular Trustee shall sign the Certificates for
the Trust by manual or facsimile signature.

 

A Preferred Security shall not be valid
until authenticated by the manual signature of an authorized signatory of the
Property Trustee. The signature shall be conclusive evidence that the Preferred
Security has been authenticated under this Declaration.

 

Upon a written order of the Trust signed
by one Regular Trustee, the Property Trustee shall authenticate the Preferred
Securities for original issue.

 

The Property Trustee may appoint an
authenticating agent acceptable to the Trust to authenticate Preferred
Securities. An authenticating agent may authenticate Preferred Securities
whenever the Property Trustee may do so. Each reference in this Declaration to
authentication by the Property Trustee includes authentication by such agent.
An authenticating agent has the same rights as the Property Trustee to deal
with the Trust, the Sponsor or an Affiliate.

 

SECTION 7.4.  FORM AND DATING.  The Preferred Securities and the Property Trustee’s
certificate of authentication shall be substantially in the form of Exhibit A-1
and the Common Securities shall be substantially in the form of Exhibit A-2,
each of which is hereby incorporated in and expressly made a part of this
Declaration. Certificates may be printed, lithographed or engraved or may be
produced in any other manner as is reasonably acceptable to the Regular
Trustees, as evidenced by their execution thereof. The Securities may have
letters, numbers, notations, other marks of identification or designation or
other changes or additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice and such legends or endorsements required by
law, stock exchange rule and agreements to which the Trust is subject, if
any (provided that any such notation, legend or endorsement is in a form
acceptable to the Trust). The Trust at the direction of the Sponsor shall
furnish any such legend not contained in Exhibit A-1 to the Property
Trustee in writing. Each Preferred Security Certificate shall be dated the date
of its authentication. The terms and provisions of the Securities set forth in
Annex I and the forms of Securities set forth in Exhibits A-1 and A-2
are part of the terms of this Declaration and, to the extent applicable, the
Property Trustee and the Sponsor, by their execution and delivery of this
Declaration, expressly agree to such terms and provisions and to be bound
thereby.

 

SECTION 7.5.  PAYING AGENT.  The Trust shall maintain in the Borough of
Manhattan, City of New York, State of New York, an office or agency where
Preferred

 

31

 

Securities
not held in book-entry only form may be presented for payment (“Paying Agent”).  The Trust may appoint the Paying Agent and
may appoint one or more additional paying agents in such other locations as it
shall determine. The term “Paying Agent” includes any additional paying
agent.  Any such Paying Agent may be
authorized to pay Distributions, redemption payments or Liquidation
Distributions on behalf of the Trust with respect to all Securities and shall
comply with Section 317(b) of the Trust Indenture Act.  The Trust may change any Paying Agent without
prior notice to any Holder. Any Paying Agent may be removed by the Regular
Trustees at any time and a successor Paying Agent may be appointed at any time
by the Regular Trustees.  Any Paying
Agent may resign upon 30 days written notice to the Regular Trustees.  The Trust shall notify the Property Trustee
in writing of the name and address of any Paying Agent not a party to this
Declaration. If the Trust fails to appoint or maintain another entity as Paying
Agent, the Property Trustee shall act as such. The Trust or any of its
Affiliates may act as Paying Agent. The Property Trustee shall initially act as
Paying Agent for the Preferred Securities and the Common Securities.

 

SECTION 7.6.  PAYING AGENT TO
HOLD MONEY IN TRUST.

 

The Trust shall require each Paying Agent
other than the Property Trustee to agree in writing that the Paying Agent will
hold in trust for the benefit of Holders or the Property Trustee all money held
by the Paying Agent for the payment of liquidation amounts or Distributions,
and will notify the Property Trustee if there are insufficient funds for such
purpose.  While any such insufficiency
continues, the Property Trustee may require a Paying Agent to pay all money
held by it to the Property Trustee.  The
Trust at any time may require a Paying Agent to pay all money held by it to the
Property Trustee and to account for any money disbursed by it. Upon payment
over to the Property Trustee, the Paying Agent (if other than the Trust or an
Affiliate of the Trust) shall have no further liability for the money.  If the Trust or the Sponsor or an Affiliate
of the Trust or the Sponsor acts as Paying Agent, it shall segregate and hold
in a separate trust fund for the benefit of the Holders all money held by it as
Paying Agent.

 

SECTION 7.7.  REPLACEMENT SECURITIES.

 

If a Holder claims that a Security owned
by it has been lost, destroyed or wrongfully taken or if such Security is
mutilated and is surrendered to the Trust or in the case of the Preferred
Securities to the Property Trustee, the Trust shall issue and the Property
Trustee shall, upon written order of the Trust, authenticate a replacement
Security if the Property Trustee’s and the Trust’s requirements, as the case
may be, are met.  An indemnity bond must
be provided by the Holder which, in the judgment of the Property Trustee and
the Sponsor, is sufficient to protect the Trustees, the Sponsor, the Trust or
any authenticating agent from any loss which any of them may suffer if a
Security is replaced.  The Trust may
charge such Holder for its expenses in replacing a Security.

 

SECTION 7.8.  OUTSTANDING PREFERRED SECURITIES.

 

The Preferred Securities outstanding at
any time are all the Preferred Securities authenticated by the Property Trustee
except for those cancelled by it, those delivered to it for cancellation, and
those described in this Section as not outstanding.

 

32

 

If a Preferred Security is replaced
pursuant to Section 7.7 hereof, it ceases to be outstanding unless the
Property Trustee receives proof satisfactory to it that the replaced Preferred
Security is held by a bona fide purchaser

 

If Preferred Securities are considered
paid in accordance with the terms of this Declaration, they cease to be
outstanding and Distributions on them shall cease to accumulate.

 

A Preferred Security does not cease to be outstanding
because one of the Trustees, the Sponsor or an Affiliate of the Sponsor holds
the Security.

 

SECTION 7.9.  CANCELLATION.

 

The Trust at any time may deliver
Preferred Securities to the Property Trustee for cancellation.  The Paying Agent shall forward to the
Property Trustee any Preferred Securities surrendered to it.  The Property Trustee shall promptly cancel
all Preferred Securities surrendered and shall dispose of cancelled Preferred
Securities in accordance with its customary procedures unless the Trust
otherwise directs.  The Trust may not
issue new Preferred Securities to replace Preferred Securities that it has paid
or that have been delivered to the Property Trustee for cancellation.

 

ARTICLE VIII

TERMINATION OF TRUST

 

SECTION 8.1.  DISSOLUTION AND
TERMINATION OF TRUST.

 

(a)                                  The Trust shall dissolve:

 

(i)                                     upon the bankruptcy of the Sponsor or the Holder of
the Common Securities;

 

(ii)                                  upon the filing of a certificate of dissolution or its
equivalent with respect to the Sponsor or the Holder of the Common Securities;
or the revocation of the Sponsor’s charter or the charter of the Holder of the
Common Securities and the expiration of 90 days after the date of
revocation without a reinstatement thereof;

 

(iii)                               upon the entry of a decree of judicial dissolution of
the Sponsor, the Trust or the Holder of the Common Securities;

 

(iv)                              when all of the Securities shall have been called for
redemption and the amounts necessary for redemption thereof shall have been
paid to the Holders in accordance with the terms of the Securities;

 

(v)                                 upon the occurrence and continuation of a Special
Event pursuant to which the Trust shall be dissolved in accordance with the
terms of the Securities following which, after satisfaction of liabilities to
creditors of the Trust as provided by applicable law (including, without
limitation, by paying or making reasonable provision to pay all claims and
obligations of the Trust in accordance with Section 3808(e) of the

 

33

 

Statutory Trust Act), all of the Debt Securities held by the Property
Trustee shall be distributed to the Holders of Securities in exchange for all
of the Securities;

 

(vi)                              upon the written direction to the Property Trustee
from the Debt Security Issuer at any time to dissolve the Trust and, after
satisfaction of liabilities to creditors of the Trust as provided by applicable
law (including, without limitation, by paying or making reasonable provision to
pay all claims and obligations of the Trust in accordance with Section 3808(e) of
the Statutory Trust Act), to distribute the Debt Securities to Holders in
exchange for the Securities within 90 days after notice, subject to the
Property Trustee’s and the Regular Trustees’ receipt of an opinion of
nationally recognized independent counsel experienced in such matters to the
effect that the Holders of the Common Securities and Preferred Securities will
not recognize any income, gain or loss for United States federal income tax
purposes as a result of the dissolution of the Trust and such distribution to
Holders;

 

(vii)                           the expiration of the term of the Trust on
                
        ,
          ;

 

(viii)                        before the issuance of any Securities, with the
consent of all of the Regular Trustees and the Sponsor; or

 

(ix)                                with the consent of at least a Majority in liquidation
amount of the Securities, voting together as a single class;

 

provided that, if a claim has been made
under a Securities Guarantee, the Trust shall not dissolve until (x) such
claim has been satisfied and the proceeds therefrom have been distributed to
the Holders or (y) the Debt Securities have been distributed to the
Holders pursuant to Annex I hereof.

 

(b)                                 As soon as is practicable after the occurrence of an
event referred to in Section 8.1(a) and the liquidation of the Trust,
the Regular Trustees shall file a certificate of cancellation with the
Secretary of State of the State of Delaware in accordance with the Statutory
Trust Act.

 

(c)                                  The provisions of Sections 3.9 and 3.10 and Article X
shall survive the termination of the Trust.

 

ARTICLE IX

TRANSFER OF INTERESTS

 

SECTION 9.1.  TRANSFER OF
SECURITIES.

 

(a)                                  Securities may only be transferred, in whole or in
part, in accordance with the terms and conditions set forth in this Declaration
and in the terms of the Securities. Any transfer or purported transfer of any
Security not made in accordance with this Declaration shall be null and void.

 

(b)                                 Subject to this Article IX, Preferred Securities
shall be transferable.

 

34

 

(c)                                  Subject to this Article IX, the Sponsor and any
Related Party may only transfer Common Securities to the Sponsor or a Related
Party of the Sponsor; PROVIDED THAT, any such transfer shall not violate the
Securities Act and is subject to the condition precedent that the transferor
obtain the written opinion of nationally recognized independent counsel
experienced in such matters that such transfer would not cause more than an
insubstantial risk that:

 

(i)                                     the Trust would not be classified for United States
federal income tax purposes as a grantor trust; and

 

(ii)                                  the Trust would be an Investment Company required to
register under the Investment Company Act or the transferee would become an
Investment Company required to register under the Investment Company Act.

 

(d)                                 Each Common Security that bears or is required to bear
the legend set forth in this Section 9.1(d) shall be subject to the
restrictions on transfer provided in the legend set forth in this Section 9.1(d),
unless such restrictions on transfer shall be waived by the written consent of
the Regular Trustees, and the Holder of each such Common Security, by such
Holder’s acceptance thereof, agrees to be bound by such restrictions on
transfer. As used in this Section 9.1(d), the term “transfer” encompasses
any sale, pledge, transfer or other disposition (by operation of law or
otherwise) of any such Common Security.

 

Any certificate evidencing a Common
Security shall bear a legend in substantially the following form, unless
otherwise agreed by the Regular Trustees (with written notice thereof to the
Property Trustee):

 

THE SECURITY EVIDENCED HEREBY HAS NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD UNLESS SUCH OFFER AND
SALE ARE REGISTERED UNDER OR ARE EXEMPT FROM REGISTRATION UNDER THE SECURITIES
ACT.

 

THE TRANSFER OF THE SECURITY
EVIDENCED HEREBY IS ALSO SUBJECT TO THE RESTRICTIONS SET FORTH IN THE DECLARATION REFERRED TO
BELOW.

 

SECTION 9.2.  TRANSFER OF CERTIFICATES.  The Regular Trustees shall provide for the
registration of Certificates and of transfers of Certificates, which will be
effected without charge, but only upon payment in respect of any tax or other
government charges that may be imposed in relation to it. Upon surrender for
registration of transfer of any Certificate, the Regular Trustees shall cause
one or more new Certificates to be issued in the name of the designated
transferee or transferees. Every Certificate surrendered for registration of
transfer shall be accompanied by a written instrument of transfer in form
satisfactory to the Regular Trustees duly executed by the Holder or such Holder’s
attorney duly authorized in writing. Each Certificate surrendered for
registration of transfer shall be canceled by the Regular Trustees. A
transferee of a Certificate shall be entitled to the rights and subject to the
obligations of a Holder hereunder upon the receipt by such transferee of a
Certificate. By acceptance of a Certificate, each transferee shall be deemed to
have agreed to be bound by this Declaration.

 

35

 

SECTION 9.3.  DEEMED SECURITY HOLDERS.  The Trustees may treat the Person in whose
name any Certificate shall be registered on the books and records of the Trust
as the sole holder of such Certificate and of the Securities represented by
such Certificate for purposes of receiving Distributions and for all other
purposes whatsoever and, accordingly, shall not be bound to recognize any
equitable or other claim to or interest in such Certificate or in the
Securities represented by such Certificate on the part of any Person, whether
or not the Trust shall have actual or other notice thereof.

 

SECTION 9.4.  BOOK ENTRY
INTERESTS.

 

(a)                                  So long as Preferred Securities are eligible for
book-entry settlement with the Clearing Agency or unless otherwise required by
law, all Preferred Securities that are so eligible may be represented by one or
more fully registered Preferred Security Certificates (each, a “Global
Certificate”) in global form to be delivered to DTC, the initial Clearing
Agency, by, or on behalf of, the Trust. Such Global Certificates shall
initially be registered on the books and records of the Trust in the name of
Cede & Co., the nominee of DTC, and no Preferred Security Beneficial
Owner will receive a definitive Preferred Security Certificate representing
such Preferred Security Beneficial Owner’s interests in such Global
Certificates, except as provided in Section  9.7 below. The transfer and
exchange of beneficial interests in any such Security in global form shall be
effected through the Clearing Agency in accordance with this Declaration and
the procedures of the Clearing Agency therefor.

 

(b)                                 Except as provided below, beneficial owners of a
Preferred Security in global form shall not be entitled to have certificates
registered in their names, will not receive or be entitled to receive physical
delivery of certificates in definitive form and will not be considered Holders
of such Preferred Security in global form.

 

(c)                                  Any Global Certificate may be endorsed with or have
incorporated in the text thereof such legends or recitals or changes not
inconsistent with the provisions of this Declaration as may be required by the
Clearing Agency, by any national securities exchange or by the National
Association of Securities Dealers, Inc. as may be required to comply with
any applicable law or any regulation thereunder or with the rules and
regulations of any securities exchange or interdealer quotation system upon
which the Preferred Securities may be listed or traded or to conform with any
usage with respect thereto, or to indicate any special limitations or
restrictions to which any particular Preferred Securities are subject.

 

(d)                                 Unless and until definitive, fully registered
Preferred Security Certificates (the “Definitive Preferred Security
Certificates”) have been issued to the Preferred Security Beneficial Owners of
a Preferred Security in global form pursuant to Section 9.7:

 

(i)                                     the provisions of this Section 9.4 shall be in
full force and effect with respect to such Preferred Securities;

 

(ii)                                  the Trust and the Trustees shall be entitled to deal
with the Clearing Agency for all purposes of this Declaration (including the payment
of Distributions on the Global Certificates and receiving approvals, votes or
consents hereunder) as the Holder of such Preferred Securities and the sole
holder of the Global Certificates and

 

36

 

shall have no obligation to the Preferred Security Beneficial Owners of
such Preferred Securities;

 

(iii)                               to the extent that the provisions of this Section 9.4
conflict with any other provisions of this Declaration, the provisions of this Section 9.4
shall control; and

 

(iv)                              the rights of the Preferred Security Beneficial Owners
of Preferred Securities in global form shall be exercised only through the
Clearing Agency and shall be limited to those established by law and agreements
between such Preferred Security Beneficial Owners and the Clearing Agency
and/or the Clearing Agency Participants. The Clearing Agency will make
book-entry transfers among Clearing Agency Participants and receive and
transmit payments of Distributions on the Global Certificates to such Clearing
Agency Participants. DTC will make book entry transfers among the Clearing
Agency Participants, PROVIDED, that solely for the purposes of determining
whether the Holders of the requisite amount of Preferred Securities have voted
on any matter provided for in this Declaration, so long as Definitive Preferred
Security Certificates have not been issued, the Trustees may conclusively rely
on, and shall be protected in relying on, any written instrument (including a
proxy) delivered to the Trustees by the Clearing Agency setting forth the
Preferred Securities Beneficial Owners’ votes or assigning the right to vote on
any matter to any other Persons either in whole or in part.

 

(e)                                  Notwithstanding any other provisions of this
Declaration (other than the provisions set forth in this Section 9.4(e)),
a Preferred Security in global form may not be transferred as a whole except 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 or by the Clearing
Agency or a nominee of the Clearing Agency to a successor Clearing Agency or a
nominee of such successor Clearing Agency.

 

SECTION 9.5.  NOTICES TO CLEARING AGENCY.  Whenever a notice or other communication to
the Preferred Security Holders is required under this Declaration, unless and
until Definitive Preferred Security Certificates shall have been issued to the
Preferred Security Beneficial Owners pursuant to Section 9.7, the Regular
Trustees shall give all such notices and communications specified herein to be
given to the Preferred Security Holders to the Clearing Agency, and shall have
no notice obligations to the Preferred Security Beneficial Owners.

 

SECTION 9.6.  APPOINTMENT OF SUCCESSOR CLEARING AGENCY.  If any Clearing Agency notifies the Trust
that it is unwilling or unable to continue its services as securities
depositary with respect to the Preferred Securities, if such Clearing Agency
ceases to perform such services, or if at any time such Clearing Agency ceases
to be a clearing agency registered as such under the Exchange Act when such
Clearing Agency is required to be so registered to act as such depositary, then
the Regular Trustees may, in their sole discretion, appoint a successor
Clearing Agency with respect to such Preferred Securities.

 

37

 

SECTION 9.7.  DEFINITIVE PREFERRED SECURITY CERTIFICATES
UNDER CERTAIN CIRCUMSTANCES.  If:

 

(a)                                  a Clearing Agency notifies the Trust that it is
unwilling or unable to continue its services as securities depositary with
respect to the Preferred Securities, or if at any time such Clearing Agency
ceases to be a clearing agency registered as such under the Exchange Act when
such Clearing Agency is required to be so registered to act as such depositary
and no successor Clearing Agency shall have been appointed pursuant to Section 9.6
within 90 days of such notification;

 

(b)                                 the Regular Trustees (with the consent of the
Sponsor), in their sole discretion, determine that the Preferred Securities in
global form shall be exchanged for certificated Preferred Securities; or

 

(c)                                  there shall have occurred and be continuing an Event
of Default;

 

then:

 

(i)                                     Definitive Preferred Security Certificates shall be
prepared by the Regular Trustees on behalf of the Trust with respect to such
Preferred Securities; and

 

(ii)                                  upon surrender of the Global Certificates by the
Clearing Agency, accompanied by registration instructions, the Regular Trustees
shall cause Definitive Preferred Security Certificates to be delivered to
Preferred Security Beneficial Owners of such Preferred Securities in accordance
with the instructions of the Clearing Agency. Neither the Trustees nor the
Trust shall be liable for any delay in delivery of such instructions and each
of them may conclusively rely on and shall be protected in relying on, said
instructions of the Clearing Agency. The Definitive Preferred Security
Certificates shall be printed, lithographed or engraved or may be produced in
any other manner as is reasonably acceptable to the Regular Trustees, as
evidenced by their execution thereof, and may have such letters, numbers or
other marks of identification or designation and such legends or endorsements
as the Regular Trustees may deem appropriate, or as may be required to comply
with any law or with any rule or regulation made pursuant thereto or with
any rule or regulation of any stock exchange on which Preferred Securities
may be listed, or to conform to usage.

 

At such time as all interests in a
Preferred Security in global form have been redeemed, exchanged, repurchased or
canceled, such Preferred Security in global form shall be, upon receipt
thereof, canceled by the Trust in accordance with standing procedures and
instructions of the Clearing Agency.

 

SECTION 9.8.  MUTILATED, DESTROYED, LOST OR STOLEN
CERTIFICATES.  If:

 

(a)                                  any mutilated Certificates should be surrendered to
the Regular Trustees, or if the Regular Trustees shall receive evidence to
their satisfaction of the destruction, loss or theft of any Certificate; and

 

(b)                                 there shall be delivered to the Property Trustee or
the Regular Trustees such security or indemnity as may be required by them to
keep each of them harmless,

 

38

 

then:

 

in the absence of notice that such
Certificate shall have been acquired by a bona fide purchaser, the Property
Trustee or any Regular Trustee on behalf of the Trust shall execute and
deliver, in exchange for, or in lieu of, any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like denomination. In connection with
the issuance of any new Certificate under this Section 9.8, the Property
Trustee or the Regular Trustees may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
therewith. Any duplicate Certificate issued pursuant to this Section shall
constitute conclusive evidence of an ownership interest in the relevant
Securities, as if originally issued, whether or not the lost, stolen or
destroyed Certificate shall be found at any time.

 

ARTICLE X

LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES,

TRUSTEES OR OTHERS

 

SECTION 10.1.  LIABILITY.

 

(a)                                  Except as expressly set forth in this Declaration, the
Securities Guarantees and the terms of the Securities, the Sponsor shall not
be:

 

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

 

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

 

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

 

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

 

SECTION 10.2.  EXCULPATION.

 

(a)                                  No Indemnified Person shall be liable, responsible or
accountable in damages or otherwise to the Trust or any Covered Person for any
loss, damage or claim incurred by reason of any act or omission performed or
omitted by such Indemnified Person in good faith on behalf of the Trust and in
a manner such Indemnified Person reasonably believed to be within the scope of
the authority conferred on such Indemnified Person by this Declaration or by
law, except that an Indemnified Person shall be liable for any such loss,
damage or claim incurred by reason of such Indemnified Person’s gross
negligence (or, in the case of the Property Trustee, except as otherwise set
forth in Section 3.9) or willful misconduct with respect to such acts or
omissions.

 

39

 

(b)                                 An Indemnified Person shall be fully protected in
relying in good faith upon the records of the Trust and upon such information,
opinions, reports or statements presented to the Trust by any Person as to
matters the Indemnified Person reasonably believes are within such other Person’s
professional or expert competence and who has been selected with reasonable
care by or on behalf of the Trust, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders of Securities might properly be paid.

 

SECTION 10.3.  FIDUCIARY
DUTY.

 

(a)                                  To the extent that, at law or in equity, an
Indemnified Person has duties (including fiduciary duties) and liabilities
relating thereto to the Trust or to any other Covered Person, an Indemnified
Person acting under this Declaration shall not be liable to the Trust or to any
other Covered Person for its good faith reliance on the provisions of this
Declaration. The provisions of this Declaration, to the extent that they restrict
the duties and liabilities of an Indemnified Person otherwise existing at law
or in equity (other than the duties imposed on the Property Trustee under the
Trust Indenture Act), are agreed by the parties hereto to replace such other
duties and liabilities of such Indemnified Person.

 

(b)                                 Unless otherwise expressly provided herein:

 

(i)                                     whenever a conflict of interest exists or arises
between any Covered Persons; or

 

(ii)                                  whenever this Declaration or any other agreement
contemplated herein or therein provides that an Indemnified Person shall act in
a manner that is, or provides terms that are, fair and reasonable to the Trust
or any Holder of Securities,

 

the Indemnified Person shall resolve such conflict of interest, take such
action or provide such terms, considering in each case the relative interest of
each party (including its own interest) to such conflict, agreement,
transaction or situation and the benefits and burdens relating to such
interests, any customary or accepted industry practices, and any applicable
generally accepted accounting practices or principles. In the absence of bad
faith by the Indemnified Person, the resolution, action or term so made, taken
or provided by the Indemnified Person shall not constitute a breach of this
Declaration or any other agreement contemplated herein or of any duty or
obligation of the Indemnified Person at law or in equity or otherwise.

 

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

 

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

 

40

 

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

 

SECTION 10.4.  INDEMNIFICATION.

 

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

 

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

 

(iii)                               To the extent that a Company Indemnified Person shall
be successful on the merits or otherwise (including dismissal of an action
without prejudice or the settlement of an action without admission of
liability) in defense of any action, suit or proceeding referred to in
paragraphs (i) and (ii) of this Section 10.4(a), or in defense
of any claim, issue or matter therein, he shall be indemnified, to the full
extent permitted by law, against expenses (including attorneys’ fees) actually
and reasonably incurred by him in connection therewith.

 

(iv)                              Any indemnification under paragraphs (i) and (ii) of
this Section 10.4(a) (unless ordered by a court) shall be made by the
Debt Security Issuer only as authorized

 

41

 

in the specific case upon a determination that indemnification of the
Company Indemnified Person is proper in the circumstances because he has met
the applicable standard of conduct set forth in paragraphs (i) or
(ii). Such determination shall be made (1) by the Regular Trustees by a
majority vote of a quorum consisting of such Regular Trustees who were not
parties to such action, suit or proceeding, (2) if such a quorum is not
obtainable, or, even if obtainable, if a quorum of disinterested Regular
Trustees so directs, by independent legal counsel in a written opinion, or (3) by
the Common Security Holder of the Trust.

 

(v)                                 Expenses (including attorneys’ fees) incurred by a
Company Indemnified Person in defending a civil, criminal, administrative or
investigative action, suit or proceeding referred to in paragraphs (i) and
(ii) of this Section 10.4(a) shall be paid by the Debt Security Issuer in
advance of the final disposition of such action, suit or proceeding upon
receipt of an undertaking by or on behalf of such Company Indemnified Person to
repay such amount if it shall ultimately be determined that he is not entitled
to be indemnified by the Debt Security Issuer as authorized in this Section 10.4(a).
Notwithstanding the foregoing, no advance shall be made by the Debt Security
Issuer if a determination is reasonably and promptly made (i) by the
Regular Trustees by a majority vote of a quorum of disinterested Regular
Trustees, (ii) if such a quorum is not obtainable, or, even if obtainable, if a
quorum of disinterested Regular Trustees so directs, by independent legal
counsel in a written opinion or (iii) by the Common Security Holder of the
Trust, that, based upon the facts known to the Regular Trustees, counsel or the
Common Security Holder at the time such determination is made, such Company
Indemnified Person acted in bad faith or in a manner that such person did not
believe to be in or not opposed to the best interests of the Trust, or, with
respect to any criminal proceeding, that such Company Indemnified Person
believed or had reasonable cause to believe his conduct was unlawful. In no
event shall any advance be made in instances where the Regular Trustees,
independent legal counsel or Common Security Holder reasonably determine that such
person deliberately breached his duty to the Trust or its Common or Preferred
Security Holders.

 

(vi)                              The indemnification and advancement of expenses
provided by, or granted pursuant to, the other paragraphs of this Section 10.4(a) shall
not be deemed exclusive of any other rights to which those seeking
indemnification and advancement of expenses may be entitled under any
agreement, vote of shareholders or disinterested directors of the Debt Security
Issuer or Preferred Security Holders of the Trust or otherwise, both as to
action in his official capacity and as to action in another capacity while
holding such office. All rights to indemnification under this Section 10.4(a) shall
be deemed to be provided by a contract between the Debt Security Issuer and
each Company Indemnified Person who serves in such capacity at any time while
this Section 10.4(a) is in effect. Any repeal or modification of this
Section 10.4(a) shall not affect any rights or obligations then
existing.

 

(vii)                           The Debt Security Issuer or the Trust may purchase and
maintain insurance on behalf of any person who is or was a Company Indemnified
Person against any liability asserted against him and incurred by him in any
such capacity, or arising out

 

42

 

of his status as such, whether or not the Debt Security Issuer would have
the power to indemnify him against such liability under the provisions of this Section 10.4(a).

 

(viii)                        For purposes of this Section 10.4(a), references
to “the Trust” shall include, in addition to the resulting or surviving entity,
any constituent entity (including any constituent of a constituent) absorbed in
a consolidation or merger, so that any person who is or was a director,
trustee, officer or employee of such constituent entity, or is or was serving
at the request of such constituent entity as a director, trustee, officer,
employee or agent of another entity, shall stand in the same position under the
provisions of this Section 10.4(a) with respect to the resulting or
surviving entity as he would have with respect to such constituent entity if
its separate existence had continued.

 

(ix)                                The indemnification and advancement of expenses
provided by, or granted pursuant to, this Section 10.4(a) shall,
unless otherwise provided when authorized or ratified, continue as to a person
who has ceased to be a Company Indemnified Person and shall inure to the
benefit of the heirs, executors and administrators of such a person.

 

(b)                                 The Debt Security Issuer agrees to indemnify the (i) Property
Trustee, (ii) the Delaware Trustee, (iii) any Affiliate of the
Property Trustee or the Delaware Trustee, and (iv) any officers,
directors, shareholders, members, partners, employees, representatives,
custodians, nominees or agents of the Property Trustee or the Delaware Trustee
(each of the Persons in (i) through (iv) being referred to as a “Fiduciary
Indemnified Person”) for, and to hold each Fiduciary Indemnified Person
harmless against, any loss, liability or expense incurred without negligence or
willful misconduct 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. The
provisions of this Section 10.4(b) shall survive the satisfaction and
discharge of this Declaration or the resignation or removal of the Property
Trustee or the Delaware Trustee, as the case may be.

 

SECTION 10.5.  OUTSIDE BUSINESS.  Any Covered Person, the Sponsor, the Delaware
Trustee and the Property Trustee may engage in or possess an interest in other
business ventures of any nature or description, independently or with others,
similar or dissimilar to the business of the Trust, and the Trust and the
Holders of Securities shall have no rights by virtue of this Declaration in and
to such independent ventures or the income or profits derived therefrom, and
the pursuit of any such venture, even if competitive with the business of the
Trust, shall not be deemed wrongful or improper. No Covered Person, the
Sponsor, the Delaware Trustee, nor the Property Trustee shall be obligated to
present any particular investment or other opportunity to the Trust even if
such opportunity is of a character that, if presented to the Trust, could be
taken by the Trust, and any Covered Person shall have the right to take for its
own account (individually or as a partner or fiduciary) or to recommend to
others any such particular investment or other opportunity. Any Covered Person,
the Delaware Trustee and the Property Trustee may engage or be interested in
any financial or other transaction with the Sponsor or any Affiliate of the
Sponsor, or may act as depositary for, trustee or agent for, or act on any
committee or body of holders of, securities or other obligations of the Sponsor
or its Affiliates.

 

43

 

SECTION 10.6.  COMPENSATION;
FEES.

 

The Debt Security Issuer agrees:

 

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

 

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

 

The provisions of this Section 10.6
shall survive the dissolution of the Trust and the termination of this
Declaration and the removal or resignation of any Trustee.

 

No Trustee may claim any lien or charge on
any property of the Trust as a result of any amount due pursuant to this Section
10.6.

 

ARTICLE XI

ACCOUNTING

 

SECTION 11.1.  FISCAL YEAR.  The fiscal year (“Fiscal Year”) of the Trust
shall be the same as the fiscal year of the Sponsor, unless another fiscal year
is required by the Code or Treasury regulations promulgated thereunder.

 

SECTION 11.2.  CERTAIN
ACCOUNTING MATTERS.

 

(a)                                  At all times during the existence of the Trust, the
Regular Trustees shall keep, or cause to be kept, full books of account,
records and supporting documents, which shall reflect in detail, each
transaction of the Trust. The books of account shall be maintained on the
accrual method of accounting in compliance with generally accepted accounting
principles, consistently applied. The Trust shall use the accrual method of
accounting for the United States federal income tax purposes. The books of
account and the records of the Trust shall be examined by and reported upon as
of the end of each Fiscal Year of the Trust by a firm of independent certified
public accountants selected by the Regular Trustees.

 

(b)                                 The Sponsor shall cause to be prepared and delivered
to each of the Holders of Securities, within 90 days after the end of each
Fiscal Year of the Sponsor, annual financial statements of the Sponsor,
including a balance sheet of the Sponsor as of the end of such Fiscal Year, and
the related statements of income or loss.

 

(c)                                  The Regular Trustees shall cause to be duly prepared
and delivered to each of the Holders of Securities, any annual United States
federal income tax information statement, required by the Code, containing such
information with regard to the Securities held by each

 

44

 

Holder as is required by the Code and the
Treasury Regulations. Notwithstanding any right under the Code to deliver any
such statement at a later date, the Regular Trustees shall endeavor to deliver
all such statements within 30 days after the end of each Fiscal Year of the
Trust.

 

(d)                                 The Regular Trustees shall cause to be duly prepared
and filed with the appropriate taxing authority, an annual United States
federal income tax return, on a Form 1041 or such other form required by
United States federal income tax law, and any other annual income tax returns
required to be filed by the Regular Trustees on behalf of the Trust with any
state or local taxing authority.

 

SECTION 11.3.  BANKING.  The Trust shall maintain one or more bank
accounts in the name and for the sole benefit of the Trust; PROVIDED, HOWEVER,
that all payments of funds in respect of the Debt Securities held by the
Property Trustee shall be made directly to the Property Trustee Account and no
other funds of the Trust shall be deposited in the Property Trustee Account. The
sole signatories for such accounts shall be designated by the Regular Trustees;
PROVIDED, HOWEVER, that the Property Trustee shall designate the signatories
for the Property Trustee Account.

 

SECTION 11.4.  WITHHOLDING.  The Trust and the Regular Trustees shall
comply with all withholding requirements under United States federal, state and
local law. The Trust shall request, and the Holders shall provide to the Trust,
such forms or certificates as are necessary to establish an exemption from
withholding with respect to each Holder, and any representations and forms as
shall reasonably be requested by the Trust to assist it in determining the
extent of, and in fulfilling, its withholding obligations. The Regular Trustees
shall file required forms with applicable jurisdictions and, unless an
exemption from withholding is properly established by a Holder, shall remit
amounts withheld with respect to the Holder to applicable jurisdictions. To the
extent that the Trust is required to withhold and pay over any amounts to any
authority with respect to distributions or allocations to any Holder, the
amount withheld shall be deemed to be a distribution in the amount of the
withholding to the Holder. In the event of any claimed over-withholding,
Holders shall be limited to an action against the applicable jurisdiction. If
the amount required to be withheld was not withheld from actual Distributions
made, the Trust may reduce subsequent Distributions by the amount of such
withholding. Furthermore, if withholding is imposed on payments of interest on
the Debt Securities, to the extent such withholding is attributable to
ownership by a specific Holder of Preferred Securities, the amount withheld
shall be deemed a distribution in the amount of the withholding to such specific
Holder.

 

ARTICLE XII

AMENDMENTS AND MEETINGS

 

SECTION 12.1.  AMENDMENTS.  Except as otherwise provided in this
Declaration or by any applicable terms of the Securities,

 

(a)                                  this Declaration may only be amended by a written
instrument approved and executed by the Regular Trustees (or, if there are more
than two Regular Trustees a majority of the Regular Trustees) and:

 

45

 

(i)                                     if the amendment affects the rights, powers, duties,
obligations or immunities of the Property Trustee, also by the Property
Trustee; and

 

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

 

(b)                                 no amendment shall be made, and any such purported amendment
shall be void and ineffective:

 

(i)                                     unless, in the case of any proposed amendment, the
Property Trustee and the Delaware Trustee shall have first received an Officers’
Certificate from each of the Trust and the Sponsor that such amendment is permitted
by, and conforms to, the terms of this Declaration (including the terms of the
Securities);

 

(ii)                                  unless, in the case of any proposed amendment which
affects the rights, powers, duties, obligations or immunities of the Property
Trustee, the Property Trustee shall have first received:

 

(A)                              an Officers’ Certificate from each of the Trust and
the Sponsor that such amendment is permitted by, and conforms to, the terms of
this Declaration (including the terms of the Securities); and

 

(B)                                an opinion of counsel (who may be counsel to the
Sponsor or the Trust) that such amendment is permitted by, and conforms to, the
terms of this Declaration (including the terms of the Securities); and

 

(iii)                               to the extent the result of such amendment would be
to:

 

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

 

(B)                                reduce or otherwise adversely affect the powers of the
Property Trustee, unless approved by the Property Trustee; or

 

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

 

(c)                                  at such time after the Trust has issued any Securities
that remain outstanding, any amendment that would (i) adversely affect powers,
preferences or special rights of the Securities whether by way of amendment to
this Declaration or otherwise or (ii) provide for the dissolution, winding
up or termination of the Trust other than pursuant to the terms of this
Declaration, may be effected only with the approval of the Holders of at least
a Majority in liquidation amount of the Securities affected thereby; provided,
that if any amendment or proposal referred to in clause (i) hereof would
adversely affect only the Preferred Securities or the Common Securities, then
only the affected class will be entitled to vote on such amendment or proposal
and such amendment or proposal shall not be effective except with the approval
of a Majority in liquidation amount of such class of Securities;

 

46

 

(d)                                 Section 9.1(c), Section 10.1(c) and
this Section 12.1 shall not be amended without the consent of all of the
Holders of the Securities;

 

(e)                                  Article IV shall not be amended without the
consent of the Holders of a Majority in liquidation amount of the Common
Securities;

 

(f)                                    the rights of the holders of the Common Securities
under Article V to increase or decrease the number of, and appoint and
remove Trustees shall not be amended without the consent of the Holders of a Majority
in liquidation amount of the Common Securities;

 

(g)                                 notwithstanding Section 12.1(c), this Declaration
may be amended from time to time by the Holders of a Majority in liquidation
amount of the Common Securities and the Property Trustee, without the consent
of the Holders of the Preferred Securities to:

 

(i)                                     cure any ambiguity, correct or supplement any
provision in this Declaration that may be defective or inconsistent with any
other provision, or to make any other provisions with respect to matters or
questions arising under this Declaration, which shall not be inconsistent with
the other provisions of this Declaration;

 

(ii)                                  add to the covenants, restrictions or obligations of
the Sponsor; or

 

(iii)                               to modify, eliminate or add to any provisions of this
Declaration to such extent as shall be necessary to ensure that the Trust will
be classified for United States federal income tax purposes as a grantor trust
at all times that any Securities are outstanding or to ensure that the Trust
will not be required to register as an investment company under the Investment
Company Act or to ensure that the Preferred Securities will continue to
constitute Tier I capital for purposes of the capital adequacy guidelines or
policies of the Federal Reserve or its successor;

 

PROVIDED, HOWEVER, such action specified
in this Section 12.1(g) shall not adversely affect in any material
respect the interests of any Holder of Securities; and

 

(h)                                 this Declaration may be amended by the Holders of a
Majority in liquidation amount of the Common Securities and the Property
Trustee if:

 

(i)                                     the Holders of a Majority in liquidation amount of the
Preferred Securities consent to such amendment; and

 

(ii)                                  the Property Trustee and the Regular Trustees have
received an opinion of nationally recognized independent counsel experienced in
such matters to the effect that such amendment or the exercise of any power
granted to the Regular Trustees in accordance with such amendment will not
affect the Trust’s status as a grantor trust for United States federal income
tax purposes or the Trust’s exemption from status as an “investment company”
under the Investment Company Act,

 

PROVIDED, that without the consent of each
Holder of Securities, this Declaration may not be amended to: (x) change
the amount or timing of any Distribution on the Securities or otherwise
adversely affect the amount of any Distribution required to be made in respect
of the

 

47

 

Securities as of a
specified date; or (y) restrict the right of a Holder of Securities to
institute suit for the enforcement of any such payment on or after such date.

 

(i)                                     Any amendments of this Declaration shall become
effective when notice thereof is given to Holders of Securities.

 

SECTION 12.2.  MEETINGS OF
THE HOLDERS OF SECURITIES; ACTION BY WRITTEN CONSENT.

 

(a)                                  Meetings of the Holders of any class of Securities may
be called at any time by the Regular Trustees (or as provided in the terms of
the Securities) to consider and act on any matter on which Holders of such
class of Securities are entitled to act under the terms of this Declaration,
the terms of the Securities or the rules of any stock exchange on which
the Preferred Securities are listed or admitted for trading. The Regular
Trustees shall call a meeting of the Holders of such class if directed to do so
by the Holders of at least 25% in liquidation amount of such class of
Securities. Such direction shall be given by delivering to the Regular Trustees
one or more notices in a writing stating that the signing Holders of Securities
wish to call a meeting and indicating the general or specific purpose for which
the meeting is to be called. Any Holders of Securities calling a meeting shall
specify in writing the Security Certificates held by the Holders of Securities
exercising the right to call a meeting and only those Securities specified
shall be counted for purposes of determining whether the required percentage
set forth in the second sentence of this paragraph has been met.

 

(b)                                 Except to the extent otherwise provided in the terms
of the Securities, the following provisions shall apply to meetings of Holders
of Securities:

 

(i)                                     notice of any such meeting shall be given to all the
Holders of Securities having a right to vote thereat at least 7 days and not
more than 60 days before the date of such meeting. Each such notice will
include a statement setting forth the following information: (i) the date
of such meeting or the date by which such action is to be taken; (ii) a
description of any resolution proposed for adoption at such meeting on which
such Holders are entitled to vote or of such matter upon which written consent
is sought; and (iii) instructions of the delivery of proxies or consents.
Whenever a vote, consent or approval of the Holders of Securities is permitted
or required under this Declaration or the rules of any stock exchange on
which the Preferred Securities are listed or admitted for trading, such vote,
consent or approval may be given at a meeting of the Holders of Securities. Any
action that may be taken at a meeting of the Holders of Securities may be taken
without a meeting if a consent in writing setting forth the action so taken is
signed by the Holders of Securities owning not less than the minimum amount of
Securities in liquidation amount that would be necessary to authorize or take
such action at a meeting at which all Holders of Securities having a right to
vote thereon were present and voting. Prompt notice of the taking of action
without a meeting shall be given to the Holders of Securities entitled to vote
who have not consented in writing. The Regular Trustees may specify that any
written ballot submitted to the Security Holder for the purpose of taking any
action without a meeting shall be returned to the Trust within the time
specified by the Regular Trustees;

 

48

 

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

 

(iii)                               each meeting of the Holders of the Securities shall be
conducted by the Regular Trustees or by such other Person that the Regular
Trustees may designate;

 

(iv)                              unless the Statutory Trust Act, this Declaration, the
terms of the Securities, the Trust Indenture Act or the listing rules of
any stock exchange on which the Preferred Securities are then listed or
trading, otherwise provides, the Regular Trustees, in their sole discretion,
shall establish all other provisions relating to meetings of Holders of
Securities, including notice of the time, place or purpose of any meeting at
which any matter is to be voted on by any Holders of Securities, waiver of any
such notice, action by consent without a meeting, the establishment of a record date, quorum
requirements, voting in person or by proxy or any other matter with respect to
the exercise of any such right to vote; and

 

(v)                                 any Preferred Securities that are owned by the Debt
Security Issuer or any entity directly or indirectly controlling or controlled
by, or under direct or indirect common control with, the Debt Security Issuer
shall not be entitled to vote or consent and shall, for purposes of any vote or
consent, be treated as if such Preferred Securities were not issued and
outstanding.

 

ARTICLE XIII

REPRESENTATIONS OF PROPERTY TRUSTEE AND

DELAWARE TRUSTEE

 

SECTION 13.1.  REPRESENTATIONS AND WARRANTIES OF PROPERTY
TRUSTEE.  The Trustee that acts as
initial Property Trustee represents and warrants to the Trust and to the
Sponsor at the date of this Declaration, and each Successor Property Trustee
represents and warrants, as applicable, to the Trust and the Sponsor at the
time of the Successor Property Trustee’s acceptance of its appointment as
Property Trustee that:

 

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

 

(b)                                 the execution, delivery and performance by the
Property Trustee of this  Declaration has
been duly authorized by all necessary corporate action on the part of the
Property Trustee. This Declaration has been duly executed and delivered by the
Property

 

49

 

Trustee, and it constitutes a legal, valid
and binding obligation of the Property Trustee, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, reorganization,
moratorium, insolvency, and other similar laws affecting creditors’ rights
generally and to general principles of equity and the discretion of the court
(regardless of whether the enforcement of such remedies is considered in a
proceeding in equity or at law);

 

(c)                                  the execution, delivery and performance of this
Declaration by the Property Trustee does not conflict with or constitute a
breach of the charter or by-laws of the Property Trustee; and

 

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

 

SECTION 13.2.  REPRESENTATIONS AND WARRANTIES OF DELAWARE
TRUSTEE.  The Trustee that acts as
initial Delaware Trustee represents and warrants to the Trust and to the
Sponsor at the date of this Declaration, and each Successor Delaware Trustee
represents and warrants to the Trust and the Sponsor at the time of the
Successor Delaware Trustee’s acceptance of its appointment as Delaware Trustee
that:

 

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

 

(b)                                 The execution, delivery and performance by the
Delaware Trustee of this Declaration has been duly authorized by all necessary
corporate action on the part of the Delaware Trustee. This Declaration has been
duly executed and delivered by the Delaware Trustee and it constitutes a legal,
valid and binding obligation of the Delaware Trustee, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, reorganization,
moratorium, insolvency, and other similar laws affecting creditors’ rights
generally and to general principles of equity and the discretion of the court
(regardless of whether the enforcement of such remedies is considered in a
proceeding in equity or at law).

 

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

 

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

 

(e)                                  The execution, delivery and performance of this
Declaration by the Delaware Trustee does not conflict with, or constitute a
breach of, the certificate of incorporation or the by-laws of the Delaware
Trustee.

 

50

 

ARTICLE XIV

MISCELLANEOUS

 

SECTION 14.1.  NOTICES.  All notices provided for in this Declaration
shall be in writing, duly signed by the party giving such notice, and shall be
delivered, telecopied or mailed by first class mail, as follows:

 

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

 

UnionBanCal Finance Trust [*]

c/o UnionBanCal Corporation 

400 California Street

San
Francisco, California 94104 

Attention: General Counsel

 

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

 

DELAWARE TRUSTEE

 

BNY Mellon Trust
of Delaware

100 White Clay
Center

P.O. Box 6998

Route 273

Newark, Delaware
19711

Attention:  Corporate Trust Administration

 

PROPERTY TRUSTEE

 

The Bank of
New York Mellon Trust Company, N.A.

700 South
Flower Street, Suite 500

Los
Angeles, CA  90117

Attn:  Corporate Unit

 

(c)                                  if given to the Property Trustee, at its Corporate
Trust Office’s mailing address set forth below (or such other address as the
Property Trustee may give notice of to the Holders of the Securities).

 

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

 

UnionBanCal Corporation

400 California Street

 

51

 

San Francisco,
California 94104

Attention: General Counsel

 

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

 

With respect to the Trust, the Delaware
Trustee, the Property Trustee and the Holder of the Common Securities, all
notices shall be deemed to have been given when received.  With respect to any other Holder, all notices
shall be deemed to have been given when mailed by first class mail, postage
prepaid.

 

SECTION 14.2.  GOVERNING LAW.  THIS DECLARATION AND THE RIGHTS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY
SUCH LAWS WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS OF THE STATE OF
DELAWARE OR ANY OTHER JURISDICTION THAT WOULD CALL FOR THE APPLICATION OF THE
LAW OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE; PROVIDED, HOWEVER,
THAT THERE SHALL NOT BE APPLICABLE TO THE PARTIES HEREUNDER OR THIS DECLARATION
ANY PROVISION OF THE LAWS (STATUTORY OR COMMON) OF THE STATE OF DELAWARE
PERTAINING TO TRUSTS THAT RELATE TO OR REGULATE, IN A MANNER INCONSISTENT WITH
THE TERMS HEREOF, (A) THE FILING WITH ANY COURT OR GOVERNMENTAL BODY OR
AGENCY OF TRUSTEE ACCOUNTS OR SCHEDULES OF TRUSTEE FEES AND CHARGES, (B) AFFIRMATIVE
REQUIREMENTS TO POST BONDS FOR TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A
TRUST, (C) THE NECESSITY FOR OBTAINING COURT OR OTHER GOVERNMENTAL
APPROVAL CONCERNING THE ACQUISITION, HOLDING OR DISPOSITION OF REAL OR PERSONAL
PROPERTY, (D) FEES OR OTHER SUMS PAYABLE TO TRUSTEES, OFFICERS, AGENTS OR
EMPLOYEES OF A TRUST, (E) THE ALLOCATION OF RECEIPTS AND EXPENDITURES TO
INCOME OR PRINCIPAL, (F) RESTRICTIONS OR LIMITATIONS ON THE PERMISSIBLE
NATURE, AMOUNT OR CONCENTRATION OF TRUST INVESTMENTS OR REQUIREMENTS RELATING
TO THE TITLING, STORAGE OR OTHER MANNER OF HOLDING OR INVESTING TRUST ASSETS OR
(G) THE ESTABLISHMENT OF FIDUCIARY OR OTHER STANDARDS OF RESPONSIBILITY OR
LIMITATIONS ON THE ACTS OR POWERS OF TRUSTEES THAT ARE INCONSISTENT WITH THE
LIMITATIONS OR LIABILITIES OR AUTHORITIES AND POWERS OF THE TRUSTEES HEREUNDER
AS SET FORTH OR REFERENCED IN THIS DECLARATION. 
SECTION 3540 OF TITLE 12 OF THE DELAWARE CODE SHALL NOT APPLY TO
THE TRUST.

 

SECTION 14.3.  INTENTION OF THE PARTIES.  It is the intention of the parties hereto
that the Trust be classified for United States federal income tax purposes as a
grantor trust. The provisions of this Declaration shall be interpreted to
further this intention of the parties.

 

52

 

SECTION 14.4.  HEADINGS.  Headings contained in this Declaration are
inserted for convenience of reference only and do not affect the interpretation
of this Declaration or any provision hereof.

 

SECTION 14.5.  SUCCESSORS AND ASSIGN.  Whenever in this Declaration any of the
parties hereto is named or referred to, the successors and assigns of such
party shall be deemed to be included, and all covenants and agreements in this
Declaration by the Sponsor and the Trustees shall bind and inure to the benefit
of their respective successors and assigns, whether so expressed.

 

SECTION 14.6.  PARTIAL ENFORCEABILITY.  If any provision of this Declaration, or the
application of such provision to any Person or circumstance, shall be held invalid,
the remainder of this Declaration, or the application of such provision to
persons or circumstances other than those to which it is held invalid, shall
not be affected thereby.

 

SECTION 14.7.  COUNTERPARTS.  This Declaration may contain more than one
counterpart of the signature page and this Declaration may be executed by
the affixing of the signature of each of the Trustees to one of such
counterpart signature pages. All of such counterpart signature pages shall
be read as though one, and they shall have the same force and effect as though
all of the signers had signed a single signature page.

 

Section 14.8.  WAIVER OF JURY TRIAL.

 

EACH OF THE PARTIES HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE
DECLARATION.

 

Section 14.9.  FORCE MAJEURE.

 

In no event shall the Property Trustee be
responsible or liable for any failure or delay in the performance of its
obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software or hardware)
services; it being understood that the Property Trustee shall use reasonable
efforts which are consistent with accepted practices in the banking industry to
resume performance as soon as practicable under the circumstances.

 

[Signature page follows]

 

53

 

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

 

	
   

  	
   

  
	
   

  	
  David I. Matson, as Regular Trustee

  
	
   

  	
  Solely as trustee and not in an individual capacity

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  David A. Anderson, as Regular Trustee

  
	
   

  	
  Solely as trustee and not in an individual capacity

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Morris W. Hirsch, as Regular Trustee

  
	
   

  	
  Solely as trustee and not in an individual capacity

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNY MELLON TRUST OF DELAWARE, as Delaware Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as
  Property Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNIONBANCAL CORPORATION, as Sponsor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

54

 

ANNEX I

 

TERMS OF

 

        %
TRUST  PREFERRED SECURITIES

 

          %  COMMON SECURITIES

 

Pursuant to Section 7.1 of the Amended
and Restated Declaration of Trust, dated as of
                        
        ,             
(as amended from time to time, the “Declaration”), the designation, rights,
privileges, restrictions, preferences and other terms and provisions of the Preferred
Securities and the

 

Common Securities are set out below (each
capitalized term used but not defined herein has the meaning set forth in the
Declaration):

 

1.                                       DESIGNATION AND NUMBER.

 

(a)                                  PREFERRED SECURITIES.
                    
Preferred Securities of the Trust
(                    
Preferred Securities if the Underwriter’s over-allotment option is exercised in
full) with an aggregate liquidation amount with respect to the assets of the
Trust of
                            
Dollars
($                    )
(                          
Dollars ($                      )
if the Underwriter’s over-allotment option is exercised in full), and a
liquidation amount with respect to the assets of
$         per Preferred Security, are
hereby designated for the purposes of identification only as “      %
Trust Preferred Securities” (the “Preferred Securities”). The Preferred
Security Certificates evidencing the Preferred Securities shall be
substantially in the form of Exhibit A-1 to the Declaration, with such letters,
numbers, notations, other means of identification or designation or other
changes or additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice and such legends or endorsements required by
law, state exchange rule and agreements to which the Trust is subject, if
any (provided that any such notation, legend or endorsement is in a form
acceptable to the Trust).

 

(b)                                 COMMON SECURITIES.
                
Common Securities of the Trust
(                  
Common Securities if the Underwriter’s over-allotment option is exercised in
full) with an aggregate liquidation amount with respect to the assets of the
Trust of
                          
Dollars
($                  )
(                          
Dollars ($                    )
if the Underwriter’s over-allotment option is exercised in full), and a
liquidation amount with respect to the assets of the Trust of
$         per Common Security, are
hereby designated for the purposes of identification only as “      %
Common
Securities” (the “Common Securities”). The Common Securities Certificates
evidencing the Common Securities shall be in the form of Exhibit A-2 to
the Declaration, with such letters, numbers, notations, other means of
identification or designation or other changes or additions thereto or
deletions therefrom as may be required by ordinary usage, custom or practice
and such legends or endorsements required by law, state exchange rule and
agreements to which the Trust is subject, if any (provided that any such
notation, legend or endorsement is in a form acceptable to the Trust).

 

55

 

2.                                       DISTRIBUTIONS.

 

(a)                                  Distributions payable on each Security will be fixed
at a rate per annum of       % (the “Coupon Rate”)
of the stated liquidation amount of $       per
Security, such rate being the rate of interest payable on the Debt Securities
to be held by the Property Trustee. Distributions in arrears for more than one
quarter will bear interest thereon compounded quarterly at the Coupon Rate (to
the extent permitted by applicable law). The term “Distributions” as used
herein includes such interest payable unless otherwise stated. A Distribution
is payable only to the extent that payments are made in respect of the Debt
Securities held by the Property Trustee and to the extent the Property Trustee
has funds available therefor. The amount of Distributions payable for any
period will be computed for any full quarterly Distribution period on the basis
of a 360-day year of twelve 30-day months, and for any period shorter than a
full quarterly Distribution period for which Distributions are computed,
Distributions will be computed on the basis of the actual number of days
elapsed per 30-day month.

 

(b)                                 Distributions on the Securities will be cumulative,
will accumulate from
                        
        ,             
and will be payable quarterly in arrears, on
              
      ,                   
      ,
                      
         and
                    
       of each year, commencing on
                  
      ,
          , except as
otherwise described below. So long as the Debt Security Issuer shall not be in
default in the payment of interest on the Debt Securities, the Debt Security
Issuer has the right under the Indenture to defer payments of interest on the
Debt Securities by extending the interest payment period from time to time on
the Debt Securities for a period not exceeding 20 consecutive quarters (each an
“Extension Period”), during which Extension Period no interest shall be due and
payable on the Debt Securities, PROVIDED THAT no Extension Period shall last
beyond the date of maturity or any redemption date of the Debt Securities. As a
consequence of such deferral, Distributions will also be deferred. Despite such
deferral, quarterly Distributions will continue to accumulate with interest
thereon (to the extent permitted by applicable law) at the Coupon Rate
compounded quarterly during any such Extension Period. Prior to the termination
of any such Extension Period, the Debt Security Issuer may further extend such
Extension Period; PROVIDED THAT such Extension Period together with all such
previous and further extensions thereof may not exceed 20 consecutive quarters
or extend beyond the maturity or any redemption date of the Debt Securities.
Payments of accumulated Distributions and, to the extent permitted by
applicable law, accrued interest thereon shall be payable on the Distribution
payment date on which the relevant Extension Period terminates and shall be
payable to Holders as they appear on the books and records of the Trust at the
close of business on the record date next preceding such Distribution payment
date. Upon the termination of any Extension Period and the payment of all
amounts then due, the Debt Security Issuer may commence a new Extension Period,
subject to the above requirements. Each Extension Period, if any, will end on
an interest payment date for the Debt Securities; such date will also be a
Distribution payment date for the Securities. In the event that the Debt
Security Issuer exercises its right to defer payment of interest, then during
such Extension Period the Debt Security Issuer shall not (a) declare or
pay dividends on, make distributions with respect to, or redeem, purchase or
acquire, or make a liquidation payment with respect to, any of its capital
stock, or (b) make any payment of interest, principal or premium, if any, on or
repay, repurchase or redeem any debt securities issued by the Debt Security Issuer
(including other junior subordinated debt securities) that rank PARI PASSU with
or junior in interest to the Debt Securities or make any guarantee payments
with respect to the foregoing or with respect to any guarantee by the Debt 

 

56

 

Security Issuer of the debt securities of any subsidiary of the Debt
Security Issuer if such guarantee ranks PARI PASSU with or junior in interest
to the Debt Securities (other than (i) as a result of the exchange,
redemption or conversion of one class or series of the capital stock of the
Debt Security Issuer (or any capital stock of a subsidiary thereof) for another
class or series of the capital stock of the Debt Security Issuer or any class
or series of the indebtedness of the Debt Security Issuer for any class or
series of the capital stock of the Debt Security Issuer, (ii) the purchase
of fractional interests in shares of the capital stock of the Debt Security
Issuer pursuant to the conversion or exchange provisions of such capital stock
or the security being converted into or exchanged for such capital stock, (iii) any
dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of such warrants, options or
other rights is the same stock as that on which the dividend is being paid or
ranks PARI PASSU with or junior to such stock, (iv) any declaration of a
dividend in connection with the implementation of a shareholders’ rights plan,
or the issuance of rights, stock or other property under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto, (v) payments
under the Securities Guarantees or under any similar guarantee of the Debt
Security Issuer for any trust common or trust preferred securities of its
subsidiaries or for any class or series of the capital stock of the Debt
Security Issuer, and (vi) repurchases, redemptions or other acquisitions
of shares of the capital stock of the Debt Security Issuer in connection with (1) any
employment contract, benefit plan or other similar arrangement with or for the
benefit of an one or more employees, officers, directors or consultants, (2) a
dividend reinvestment or shareholder stock purchase plan or (3) the
issuance of capital stock of the Debt Security Issuer (or securities
convertible or exercisable for such capital stock) as consideration in an
acquisition transaction entered into prior to such Extension Period).

 

(c)                                  Distributions on the Preferred Securities will be
payable to the Holders thereof as they appear on the books and records of the
Trust on the relevant record dates. While the Preferred Securities remain in
book-entry only form, the relevant record dates shall be one Business Day prior
to the relevant payment dates which payment dates correspond to the interest
payments dates on the Debt Securities. Subject to any applicable laws and
regulations and the provisions of the Declaration, each such payment in respect
of the Preferred Securities will be made as described under the heading “Book-Entry
Only Issuance The Depository Trust Company” in the Prospectus Supplement dated
                        ,
to the Prospectus dated                         ,
2009, (together, the “PROSPECTUS”) included in the Registration Statement on Form F-3
of the Sponsor, the Debt Security Issuer and the Trust. The relevant record
dates for the Common Securities, and, if the Preferred Securities shall not
continue to remain in book-entry form, the relevant record dates for the
Preferred Securities, shall conform to the rules of any securities
exchange on which the securities are listed and, if none, shall be fifteen days
prior to the relevant payment dates, which payment dates correspond to the
record and interest payment dates on the Debt Securities. The relevant record
dates for the Common Securities shall be the same record dates as for the
Preferred Securities. Distributions payable on any Securities that are not
punctually paid on any Distribution payment date, as a result of the Debt
Security Issuer having failed to make a payment under the Debt Securities, will
cease to be payable to the Person in whose name such Securities are registered
on the
relevant record date, and such defaulted Distribution will instead be payable
to the Person in whose name such Securities are registered on the special
record date or other specified date determined in accordance with the
Indenture. If any date on which Distributions are payable on the Securities is
not a Business Day, then payment of the Distributions payable on such date will
be made on the next succeeding day 

 

57

 

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.

 

(e)                                  In the event that there is any money or other property
held by or for the Trust that is not accounted for hereunder, such property
shall be distributed Pro Rata (as defined herein) among the Holders of the
Securities.

 

3.                                       LIQUIDATION DISTRIBUTION UPON DISSOLUTION.

 

The Debt Security Issuer will have the
right at any time to cause the Trust to be dissolved with the result that,
after satisfaction of liabilities to creditors of the Trust (including, without limitation, by
paying or making reasonable provision to pay all claims and obligations of the
Trust in accordance with Section 3808(e) of the Statutory Trust Act),
a Like Amount of Debt Securities will be
distributed on a Pro Rata basis to the Holders of the Preferred Securities and
the Common Securities in liquidation of such Holders’ interests in the Trust,
within 90 days following notice given to the Holders of the Preferred
Securities, subject to the Regular Trustees’ receipt of an opinion of
nationally recognized independent counsel experienced in such matters to the
effect that the Holders will not recognize any income, gain or loss for United
States federal income tax purposes as a result of the dissolution of the Trust
and such distribution to Holders of Preferred Securities.

 

In the event of any voluntary or
involuntary liquidation, dissolution, winding-up or termination of the Trust
(each a “Liquidation”), the Holders of the Securities on the date of the
Liquidation will be entitled to receive out of the assets of the Trust
available for distribution to Holders of Securities after satisfaction of
liabilities of creditors to creditors of the Trust (including, without limitation, by paying or making
reasonable provision to pay all claims and obligations of the Trust in
accordance with Section 3808(e) of the Statutory Trust Act) an amount equal to the aggregate of the stated
liquidation amount of $     per Security plus accumulated
and unpaid Distributions thereon to the date of payment (such amount being the “Liquidation
Distribution”), unless, in connection with such Liquidation after satisfaction
of liabilities to creditors of the Trust (including, without limitation, by paying or making
reasonable provision to pay all claims and obligations of the Trust in
accordance with Section 3808(e) of the Statutory Trust Act), Debt Securities in an aggregate stated principal
amount equal to the aggregate stated liquidation amount of such Securities,
with an interest rate equal to the Coupon Rate of, and bearing accrued and
unpaid interest in an amount equal to the accumulated and unpaid Distributions
on, such Securities, shall have been distributed on a Pro Rata basis to the
Holders of the Securities in exchange for such Securities.

 

If, upon any such Liquidation, the
Liquidation Distribution can be paid only in part because the Trust has
insufficient assets available to pay in full the aggregate Liquidation
Distribution, then the amounts payable directly by the Trust on the Securities
shall be paid on a Pro Rata basis.

 

If the Debt Securities are distributed to
the Holders of the Securities, pursuant to the terms of the Indenture, the Debt
Security Issuer will use all reasonable best efforts to have the 

 

58

 

Debt Securities
listed on any stock exchange as the Preferred Securities were listed on
immediately prior to the distribution of the Debt Securities.

 

4.                                       REDEMPTION AND DISTRIBUTION.

 

(a)                                  The Debt Securities will mature on
                  
      ,
          , and may be
redeemed, in whole or in part, {at any time on or after
                      
        ,           ,}.
Upon the repayment of the Debt Securities in whole or in part, whether at
maturity, upon redemption or otherwise, the proceeds from such repayment or
payment shall be simultaneously applied to redeem a Like Amount of Securities
at a redemption price per Security equal to the redemption price of the Debt
Securities, together with accumulated and unpaid Distributions thereon to, but
excluding, the date of the redemption, payable in cash (the “Redemption Price”).
Holders and the Property Trustee will be given not less than 30 nor more than
60 days’ notice of such redemption.

 

(b)                                 If fewer than all the outstanding Securities are to be
so redeemed, the Common Securities and the Preferred Securities will be
redeemed Pro Rata and the Preferred Securities to be redeemed will be as
described in Section 4(f) below.

 

(c)                                  If, at any time, a Tax Event, an Investment Company
Event or a Regulatory Capital Event (each, as defined below, a “Special Event”)
shall occur and be continuing, the Debt Security Issuer shall have the right,
subject to the prior approval of the Federal Reserve if such approval is then
required under applicable capital guidelines or policies, upon not less than 30
nor more than 60 days’ notice, to redeem the Debt Securities in whole (not in
part) at a redemption price equal to 100% of the principal amount thereof plus
accrued and unpaid interest thereon, for cash within 90 days following the
occurrence of such Special Event. Following such redemption, a Like Amount of
Securities shall be redeemed by the Trust at the Redemption Price on a Pro Rata
basis;  PROVIDED, HOWEVER, that if at the time there is
available to the Debt Security Issuer or the Trust the opportunity to
eliminate, within such 90 day period, the Special Event by taking some
ministerial action, such as filing a form, making an election or pursuing some
other similar reasonable measure that has no material adverse effect on the
Trust, the Debt Security Issuer, the Sponsor or the Holders of the Securities
(each, a “Ministerial Action”), then the Debt Security Issuer or the Trust
shall pursue such measure in lieu of a redemption.  If the Debt Securities are not redeeemed or
distributed to the Holders of the Securities in liquidation of the Trust, the
Securities shall remain outstanding.

 

“Tax Event” means that the Regular Trustees
shall have received an opinion of nationally recognized independent tax counsel
experienced in such matters (a “Tax Opinion”) to the effect that on or after
                    
      ,
        , as a result of (a) any
amendment to, clarification of, 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 affecting
taxation, (b) any judicial decision, official administrative
pronouncement, ruling, regulatory procedure, notice or announcement, including
any notice or announcement of intent to adopt such procedures or regulations
(an “Administrative Action”) or (c) any amendment to, clarification of, or
change in the official position or the interpretation of such Administrative
Action or judicial decision that differs from the theretofore generally
accepted position, in each case, by any legislative body, court, governmental
authority or regulatory body, irrespective of 

 

59

 

the manner in
which such amendment, clarification, change or Administrative Action is made
known, which amendment, clarification, change or Administrative Action is
effective or such pronouncement or decision is announced, in each case, on or
after,
                
      ,
        , there is the creation by such
amendment, clarification, change or Administrative Action of more than an
insubstantial risk that (i) the Trust is, or will be within 90 days of the
date thereof, subject to United States federal income tax with respect to
income accrued or received on the Debt Securities, (ii) the Trust is, or will be within 90 days of
the date thereof, subject to more than a de minimis amount of taxes (other than
withholding taxes), duties or other governmental charges, or (iii) interest
paid in cash by the Debt Security Issuer to the Trust on the Debt Securities is
not, or within 90 days of the date thereof will not be, deductible, in whole or
in part, by the Debt Security Issuer for United States federal income tax
purposes. Notwithstanding the foregoing, a Tax Event shall not include any
change in tax law that requires the Debt Security Issuer for United States
federal income tax purposes to defer taking a deduction for any original issue
discount (“OID”) that accrues with respect to the Debt Securities until the
interest payment related to such OID is paid by the Debt Security Issuer in
cash; PROVIDED, that such change in tax law does not create more than an
insubstantial risk that the Debt Security Issuer will be prevented from taking
a deduction for OID accruing with respect to the Debt Securities at a date that
is no later than the date the interest payment related to such OID is actually
paid by the Debt Security Issuer in cash.

 

“Investment Company Event” means that the
Regular Trustees shall have received an opinion of nationally recognized
independent counsel experienced in such matters to the effect that, as a result
of the occurrence of a change (including any announced prospective change) in
law or regulation or a written change (including any announced prospective
change) in interpretation or application of law or regulation by any
legislative body, court, governmental agency or regulatory authority on or after
                  
      ,
          , there is more
than an insubstantial risk that the Trust is or will be considered an “investment
company” that is required to be registered under the Investment Company Act of
1940, as amended (the “1940 Act”).

 

“Regulatory Capital Event” means that the
Sponsor shall have received an opinion of nationally recognized independent
counsel experienced in such matters that, as a result of (a) any amendment
to, clarification of or change (including any announced prospective change) in
applicable laws or regulations or official interpretations thereof or policies
with respect thereto or (b) any official administrative pronouncement or
judicial decision interpreting or applying such laws or regulations, which
amendment, clarification, change, pronouncement or decision is announced or is
effective after the date of issuance of the Preferred Securities, there is more
than an insubstantial risk that the Preferred Securities will no longer
constitute Tier I capital of the Sponsor for purposes of the capital adequacy
guidelines or policies of the Federal Reserve or its successor as the Sponsor’s
primary federal banking regulator.

 

After the date fixed by the Regular
Trustees for any distribution of Debt Securities upon dissolution of the Trust:
(i) the Securities will no longer be deemed to be outstanding, (ii) The
Depository Trust Company (the “Depositary”) or its nominee (or any successor
Clearing Agency or its nominee), as the record Holder of the Preferred
Securities held in global form, will receive a registered certificate or
certificates representing the Debt Securities held in global form to be
delivered upon such distribution, and (iii) certificates representing
Securities held in definitive form, except for certificates representing
Preferred Securities held by the Depositary or its 

 

60

 

nominee (or any
successor Clearing Agency or its nominee), will be deemed to represent Debt
Securities having an aggregate principal amount equal to the aggregate stated
liquidation amount of, with an interest rate identical to the Coupon Rate of,
and accrued and unpaid interest (including Compound Interest (as defined in the
Indenture)) equal to accumulated and unpaid Distributions on such Securities
until such certificates are presented to the Debt Security Issuer or its agent
for transfer or reissue.

 

(d)                                 The Trust may not redeem fewer than all the
outstanding Securities unless all accumulated and unpaid Distributions have
been paid on all Securities for all quarterly Distribution periods terminating
on or prior to the date of redemption.

 

(e)                                  (i) Notice of any redemption of, or notice of
distribution of Debt Securities in exchange for, the Securities (a “Redemption/Distribution
Notice”) will be given by the Trust by mail to each Holder of Securities to be
redeemed or exchanged not fewer than 30 nor more than 60 days before the date
fixed for redemption or exchange thereof which, in the case of a redemption,
will be the date fixed for redemption of the Debt Securities. For purposes of
the calculation of the date of redemption or exchange and the dates on which
notices are given pursuant to this Section 4(e), a Redemption/Distribution
Notice shall be deemed to be given on the day such notice is first mailed by
first-class mail, postage prepaid, or by such other means suitable to assure
delivery of such written notice, to Holders of Securities. Each
Redemption/Distribution Notice shall be addressed to the Holders of Securities
at the address of each such Holder appearing in the books and records of the
Trust. No defect in the Redemption/Distribution Notice or in the mailing of
either thereof with respect to any Holder of Securities shall affect the
validity of the redemption or exchange proceedings with respect to any other
Holder of Securities.

 

(ii)                                  In addition to the Redemption/Distribution Notice to
be provided to the Holders of Securities pursuant to clause (i) of this Section 4(e),
the Debt Security Issuer or the Trust shall give public notice of any such
redemption by the issuance of a press release through the services of the Dow
Jones Broad Tape, Reuters News Service and Bloomberg News Service.

 

(f)                                    In the event that fewer than all the outstanding
Securities are to be redeemed, the particular Preferred Securities to be
redeemed shall be selected on a Pro Rata basis not more than 60 days prior to
the redemption date from the outstanding Preferred Securities not previously
called for redemption, by such method as the Property Trustee shall deem fair
and appropriate, or if the Preferred Securities are then held in book-entry
form, in accordance with the Depositary’s customary procedures, it being understood that, in respect of
Preferred Securities registered in the name of and held of record by the
Depositary or its nominee (or any successor Clearing Agency or its nominee) or
any nominee, the distribution of the proceeds of such redemption will be made
to each Clearing Agency Participant (or Person on whose behalf such nominee
holds such securities) in accordance with the procedures applied by such agency
or nominee. The Property Trustee shall promptly notify the securities registrar
for the Securities in writing of the Preferred Securities selected for
redemption.

 

(g)                                 If Securities are to be redeemed and the Trust gives a
Redemption/Distribution Notice, which notice may only be issued for a
redemption if the Debt Securities are redeemed as set out in the Indenture
(which notice will be irrevocable), then (i) with respect to Preferred 

 

61

 

Securities held in
book-entry form by 12:00 noon, New York City time, on the redemption date,
provided that the Debt Security Issuer has paid the Property Trustee a
sufficient amount of cash in connection with the related redemption of the Debt
Securities, the Property Trustee will deposit irrevocably with the Depositary
or its nominee (or successor Clearing Agency or its nominee) funds sufficient
to pay the applicable Redemption Price with respect to such Preferred Securities
and will give the Depository irrevocable instructions and authority to pay the
Redemption Price to the Holders of such Preferred Securities, and (ii) with
respect to Preferred Securities issued in definitive form and Common
Securities, provided that the Debt Security Issuer has paid the Property
Trustee a sufficient amount of cash in connection with the related redemption
of the Debt Securities, the Property Trustee will pay the relevant Redemption
Price to the Holders of such Securities by check mailed to the address of the
relevant Holder appearing on the books and records of the Trust on the
redemption date. If a Redemption/Distribution Notice shall have been given in
connection with a redemption and funds deposited as required, then from and after
the required date of such deposit, distributions will cease to accumulate on
the Securities so called for redemption and all rights of Holders of such
Securities so called for redemption will cease, except the right of the Holders
of such Securities to receive the Redemption Price, but without interest on
such Redemption Price. If any date fixed for redemption of Securities is not a
Business Day, then payment of the Redemption Price payable on such date will be
made on the next succeeding Business Day (and without any interest or other
payment in respect of any such delay) except that, if such Business Day falls
in the next calendar year, such payment will be made on the immediately
preceding Business Day, in each case with the same force and effect as if made
on such date fixed for redemption. If payment of the Redemption Price in
respect of any Securities is improperly withheld or refused and not paid either
by the Property Trustee or by the Sponsor as guarantor pursuant to the relevant
Securities Guarantee, Distributions on such Securities will continue to
accumulate from the original redemption date to the actual date of payment, in
which case the actual payment date will be considered the date fixed for
redemption for purposes of calculating the Redemption Price.

 

Notwithstanding
the foregoing, payment of accrued and unpaid Distributions on the redemption date of the Securities will be subject to the rights of Holders on the
close of business on the relevant record date in respect of a Distribution Date
occurring on or prior to such redemption date.

 

Neither the Regular Trustees nor the Trust
shall be required (i) in the event of any redemption in part, to issue,
register the transfer of or exchange any Securities during a period beginning
at the opening of business 15 days before any selection for redemption of
Securities and ending at the close of business on the earliest date in which
the relevant Redemption/Distribution Notice is deemed to have been given to all
holders of Securities to be so redeemed or (ii) to register the transfer
of or exchange
any Securities selected for redemption, in whole or in part, except for the
unredeemed portion of any Securities being redeemed in part.

 

(h)                                 Redemption/Distribution Notices shall be sent by the
Regular Trustees on behalf of the Trust to (i) in respect of Preferred
Securities held in global form, the Depositary or its nominee (or any successor
Clearing Agency or its nominee), (ii) with respect to Preferred Securities
held in definitive form, to the Holders thereof, and (iii) in respect of
the Common Securities, to the Holders thereof.

 

62

 

(i)           Subject to the foregoing
and applicable law (including, without limitation, United States federal
securities laws), the Sponsor or any of its subsidiaries may at any time and
from time to time purchase outstanding Preferred Securities by tender, in the
open market or otherwise.

 

5.             VOTING AND OTHER RIGHTS - PREFERRED
SECURITIES.

 

(a)           Except as provided under Sections 5(b) and 7
of this Annex I to the Declaration and as otherwise required by law, the
Preferred Securities Guarantee and the Declaration, the Holders of the
Preferred Securities will not have voting rights.

 

(b)           Subject to the requirements set forth
in this paragraph, the Holders of a Majority in liquidation amount of the
Preferred Securities then outstanding, voting separately as a class, may direct
the time, method, and place of conducting any proceeding for any remedy
available to the Property Trustee, or may direct the exercise of any trust or
power conferred upon the Property Trustee under the Declaration, including the
right to direct the Property Trustee, as holder of the Debt Securities, to (i) exercise
the remedies available under the Indenture with respect to the Debt Securities,
(ii) waive any past default and its consequences that are waivable under
the Indenture, (iii) exercise any right to rescind or annul a declaration that the
principal of all the Debt Securities shall be due and payable, or (iv) in
accordance with Section  7 hereof, consent to any amendment,
modification or termination of the Indenture where consent is required,
PROVIDED, HOWEVER, that if an Event of Default under the Indenture has occurred
and is continuing then the holders of 25% of the aggregate liquidation amount
of the Preferred Securities then outstanding may direct the Property Trustee to
declare the principal of and interest on the Debt Securities immediately due
and payable; and PROVIDED, FURTHER, that, where a consent under the Indenture
would require the consent or act of the Holders of greater than a majority of
the Holders in principal amount of Debt Securities then outstanding (a “Super
Majority”) affected thereby, the Property Trustee may only give such consent or
take such action at the written direction of the Holders of at least the
proportion in liquidation amount of the Preferred Securities which the relevant
Super Majority represents of the aggregate principal amount of the Debt
Securities then outstanding. The Property Trustee shall not revoke any action
previously authorized or approved by a vote of the Holders of the Preferred
Securities. Other than with respect to directing the time, method and place of
conducting any remedy available to the Property Trustee as set forth above, the
Property Trustee shall not take any action in accordance with the directions of
the Holders of the Preferred Securities under this paragraph unless the
Property Trustee has obtained an opinion of nationally recognized independent
tax counsel experienced in such matters to the effect that for United States
federal income tax purposes, such action will not cause the Trust to be
classified as other than a grantor trust. If the Property Trustee fails to
enforce its rights under the Debt Securities, any Holder of Preferred
Securities may institute a legal proceeding against any person to enforce the
Property Trustee’s rights under the Debt Securities. If an Event of Default has
occurred and is continuing and such event is attributable to the failure of the
Debt Security Issuer to pay interest or principal on the Debt Securities on the
date such interest or principal is otherwise payable (or in the case of
redemption, on the redemption date), then a Holder of Preferred Securities may
directly institute a proceeding for enforcement of payment to such Holder of
the principal of or interest on the Debt Securities having a principal amount
equal to the aggregate liquidation amount of the Preferred Securities of such
Holder (a “Direct Action”) on or after the respective due date 

 

63

 

specified in the Debt Securities. In connection with
such Direct Action, the rights of the Holders of Common Securities will be
subrogated to the rights of such Holder of Preferred Securities to the extent
of any payment made by the Issuer to such Holder of Preferred Securities in
such Direct Action. Except as provided in the preceding sentences, the Holders
of Preferred Securities will not be able to exercise directly any other remedy
available to the holders of the Debt Securities.

 

The Property
Trustee shall notify all Holders of the Preferred Securities of any notice of
default received from the trustee under the Indenture with respect to the Debt
Securities. Such notice shall state that such event of default also constitutes
an Event of Default under the Declaration.

 

Any approval or
direction of Holders of Preferred Securities may be given at a separate meeting
of Holders of Preferred Securities convened for such purpose, at a meeting of
all of the Holders of Securities in the Trust or pursuant to written consent.
The Regular Trustees will cause a notice of any meeting at which Holders of
Preferred Securities are entitled to vote, or of any matter upon which action
by written consent of such Holders is to be taken, to be mailed to each Holder
of record of Preferred Securities. Each such notice will include a statement
setting forth (i) the date of such meeting or the date by which such
action is to be taken, (ii) a description of any resolution proposed for
adoption at such meeting on which such Holders are entitled to vote or of such
matter upon which written consent is sought and (iii) instructions for the
delivery of proxies or consents.

 

No vote or consent
of the Holders of the Preferred Securities will be required for the Trust to
redeem and cancel Preferred Securities or to distribute the Debt Securities in
accordance with the Declaration and the terms of the Securities.

 

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

 

6.             VOTING RIGHTS - COMMON SECURITIES.

 

(a)           Except as provided under Sections
6(b), 6(c) and 7 of this Annex I of the Declaration and as otherwise
required by law and the Declaration, the Holders of the Common Securities will
not have voting rights.

 

(b)           The Holders of the Common Securities
are entitled, in accordance with Article V of the Declaration, to vote to
appoint, remove or replace any Trustee or to increase or decrease the number of
Trustees.

 

(c)           Subject to Section 2.6 of the
Declaration and only after any Event of Default with respect to the Preferred
Securities has been cured, waived, or otherwise eliminated and subject to the
requirements of the second to last sentence of this paragraph, the Holders of a
Majority in liquidation amount of the Common Securities, voting separately as a
class, may direct the time, method, and place of conducting any proceeding for
any remedy available to the Property Trustee, or exercising any trust or power
conferred upon the Property Trustee under the 

 

64

 

Declaration, including (i) directing the time, method, place of
conducting any proceeding for any remedy available to the Debt Security
Trustee, or exercising any trust or power conferred on the Debt Security
Trustee with respect to the Debt Securities, (ii) waive any past default
and its consequences that are waivable under the Indenture, (iii) exercise
any right to rescind or annul a declaration that the principal of all the Debt
Securities shall be due and payable, PROVIDED THAT, where a consent or action
under the Indenture would require the consent or act of the relevant Super
Majority, the Property Trustee may only give such consent or take such action
at the written direction of the Holders of at least the proportion in
liquidation amount of the Common Securities which the relevant Super Majority
represents of the aggregate principal amount of the Debt Securities
outstanding. The Property Trustee shall not revoke any action previously
authorized or approved by a vote of the Holders of the Preferred Securities.
Other than with respect to directing the time, method and place of conducting
any remedy available to the Property Trustee or the Debt Security Trustee as
set forth above, the Property Trustee shall not take any action in accordance
with the directions of the Holders of the Common Securities under this
paragraph unless the Property Trustee has obtained an opinion of nationally
recognized independent tax counsel experienced in such matters to the effect
that for United States federal income tax purposes, such action will not cause
the Trust to be classified as other than a grantor trust. If the Property
Trustee fails to enforce its rights under the Declaration, any Holder of Common
Securities may institute a legal proceeding directly against any Person to
enforce the Property Trustee’s rights under the Declaration, without first
instituting a legal proceeding against the Property Trustee or any other
Person.

 

Any approval or
direction of Holders of Common Securities may be given at a separate meeting of
Holders of Common Securities convened for such purpose, at a meeting of all of
the Holders of Securities in the Trust or pursuant to written consent. The
Regular Trustees will cause a notice of any meeting at which Holders of Common
Securities are entitled to vote, or of any matter upon which action by written
consent of such Holders is to be taken, to be mailed to each Holder of record
of Common Securities. Each such notice will include a statement setting forth (i) the
date of such meeting or the date by which such action is to be taken, (ii) a
description of any resolution proposed for adoption at such meeting on which
such Holders are entitled to vote or of such matter upon which written consent
is sought and (iii) instructions for the delivery of proxies or consents.

 

No vote or consent
of the Holders of the Common Securities will be required for the Trust to
redeem and cancel Common Securities or to distribute the Debt Securities in
accordance with the Declaration and the terms of the Securities.

 

7.             AMENDMENTS TO DECLARATION AND
INDENTURE.

 

(a)           In addition to any requirements under
Section 12.1 of the Declaration, if any proposed amendment to the
Declaration provides for, or the Regular Trustees otherwise propose to effect, (i) any
action that would adversely affect the powers, preferences or special rights of
the Securities, whether by way of amendment to the Declaration or otherwise, or
(ii) the dissolution, winding-up or termination of the Trust, other than
as described in Section 8.1 of the Declaration, then the Holders of outstanding
Securities voting together as a single class, will be entitled to vote on such
amendment or proposal (but not on any other amendment or proposal) and such
amendment or proposal shall not be effective except with the approval of the
Holders of 

 

65

 

at least a Majority in liquidation amount of the
Securities then outstanding affected thereby; PROVIDED, HOWEVER, if any
amendment or proposal referred to in clause (i) above would adversely
affect only the Preferred Securities or only the Common Securities, then only
the affected class will be entitled to vote on such amendment or proposal and
such amendment or proposal shall not be effective except with the approval of a
Majority in liquidation amount of such class of Securities then outstanding.

 

(b)           In the event the consent of the
Property Trustee as the holder of the Debt Securities is required under the
Indenture with respect to any amendment, modification or termination of the
Indenture or the Debt Securities, the Property Trustee shall request the
written direction of the Holders of the Securities with respect to such
amendment, modification or termination and shall vote with respect to such
amendment, modification or termination as directed by a Majority in liquidation
amount of the Securities then outstanding, voting together as a single class;
PROVIDED, HOWEVER, that where a consent under the Indenture would require the
consent of the relevant Super Majority, the Property Trustee may only give such
consent at the direction of the Holders of at least the proportion in
liquidation amount of the Securities then outstanding, voting together as a
single class, which the relevant Super Majority represents of the aggregate
principal amount of the Debt Securities then outstanding; PROVIDED, FURTHER,
that the Property Trustee shall not take any action in accordance with the
directions of the Holders of the Securities under this Section 7(b) unless
the Property Trustee has obtained an opinion of nationally recognized
independent tax counsel experienced in such matters to the effect that for
United States federal income tax purposes, such action will not cause the Trust
to be classified as other than a grantor trust.

 

8.             PRO RATA.

 

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

 

9.             RANKING.

 

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

 

66

 

10.           ACCEPTANCE OF SECURITIES GUARANTEE
AND INDENTURE.

 

Each Holder of
Preferred Securities and Common Securities, by the acceptance thereof, agrees
to the provisions of the Preferred Securities Guarantee and the Common
Securities Guarantee, respectively, including the subordination provisions therein
and to the provisions of the Indenture.

 

11.           NO PREEMPTIVE RIGHTS.

 

The Holders of the
Securities shall have no preemptive rights to subscribe for any additional
securities.

 

12.           MISCELLANEOUS.

 

These terms
constitute a part of the Declaration. The Sponsor will provide a copy of the
Declaration, the Preferred Securities Guarantee or the Common Securities
Guarantee (as may be appropriate), and the Indenture to a Holder without charge
on written request to the Sponsor at its principal place of business.

 

13.           GOVERNING LAW.

 

These terms and
the rights of the parties hereunder shall be governed by and interpreted in
accordance with the laws of the State of Delaware, and all rights and remedies
shall be governed by such laws without regard to principals of conflict of
laws.

 

67

 

EXHIBIT A-1

 

{FORM OF
PREFERRED SECURITY CERTIFICATE}

 

{IF THE PREFERRED
SECURITY IS TO BE A GLOBAL CERTIFICATE INSERT - THIS PREFERRED SECURITY IS A
GLOBAL CERTIFICATE WITHIN THE MEANING OF THE DECLARATION HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”)
OR A NOMINEE OF THE DEPOSITARY. THIS PREFERRED SECURITY IS EXCHANGEABLE FOR PREFERRED SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE DECLARATION AND NO TRANSFER OF THIS PREFERRED
SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED SECURITY AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR A
NOMINEE OF THE DEPOSITARY TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS
PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE TRUST OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY PREFERRED
SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.}

 

68

 

CERTIFICATE
NUMBER:

 

NUMBER OF
PREFERRED SECURITIES:

 

CUSIP NO.:

 

Certificate
Evidencing Preferred Securities

 

of

 

UnionBanCal
Finance Trust
[*]

 

        %
Trust Preferred Securities

 

(liquidation
amount $       per Trust Preferred Security)

 

UnionBanCal
Finance Trust [*], a statutory trust formed under the laws of the State of
Delaware (the “Trust”), hereby certifies that
                                        
(the “Holder”) is the registered owner of Preferred Securities of the Trust
representing undivided beneficial interests in the assets of the Trust
designated the       % Trust Preferred Securities
(liquidation amount $         per Trust
Preferred Security) (the “Preferred Securities”). The Preferred Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer.

 

The designation,
rights, privileges, restrictions, preferences and other terms and provisions of
the Preferred Securities represented hereby are issued and shall in all
respects be subject to the provisions of the Amended and Restated Declaration
of Trust of the Trust dated as of
                      
      ,           ,
as the same may be amended from time to time (the “Declaration”), including the
designation of the terms of the Preferred Securities as set forth in
Annex I to the Declaration.

 

Capitalized terms
used herein but not defined shall have the meaning given them in the
Declaration. The Holder is entitled to the benefits of the Preferred Securities
Guarantee to the extent provided therein. The Sponsor will provide a copy of
the Declaration, the Preferred Securities Guarantee and the Indenture to the
Holder without charge upon written request to the Trust at the Corporate Trust
Office.

 

Upon receipt of
this certificate, the Holder is bound by the Declaration and the Preferred
Securities Guarantee and is entitled to the benefits thereunder.

 

By acceptance, the
Holder agrees to treat, for United States federal income tax purposes, the Debt
Securities as indebtedness of the Debt Security Issuer and the Preferred Securities
as evidence of indirect beneficial ownership in the Debt Securities.

 

Unless the
Property Trustee’s Certificate of Authentication hereon has been properly
executed, these Preferred Securities shall not be entitled to any benefit under
the Declaration or be valid or obligatory for any purpose.

 

69

 

IN WITNESS
WHEREOF, the Trust has executed this certificate this
         day of
                    ,
          .

 

	
   

  	
  UnionBanCal Finance
  Trust [*]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title: Regular Trustee

  
	
   

  	
  Solely
  as trustee and not in his individual capacity

  

 

70

 

{FORM OF
CERTIFICATE OF AUTHENTICATION}

 

PROPERTY TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: 
                          
        ,

 

The Bank of New York Mellon Trust Company,
N.A.,

as Property Trustee

 

or as Authentication Agent

 

	
  By

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  	
  Authorized Signatory

  

 

71

 

{FORM OF
REVERSE OF SECURITY}

 

Distributions
payable on each Preferred Security will be fixed at a rate per annum of
        % (the “Coupon Rate”) of the
stated liquidation amount of $       per
Preferred Security, such rate being the rate of interest payable on the Debt
Securities to be held by the Property Trustee. Distributions in arrears for
more than one quarter will bear interest thereon compounded quarterly at the Coupon
Rate (to the extent permitted by applicable law). The term “Distributions” as
used herein includes such cash distributions and any such interest payable
unless otherwise stated. A Distribution is payable only to the extent that
payments are made in respect of the Debt Securities held by the Property
Trustee and to the extent the Property Trustee has funds available therefor.
The amount of Distributions payable for any period will be computed for any
full quarterly Distribution period on the basis of a 360-day year of twelve
30-day months, and for any period shorter than a full quarterly Distribution
period for which Distributions are computed, Distributions will be computed on
the basis of the actual number of days elapsed per 30-day month.

 

Except as
otherwise described below, Distributions on the Preferred Securities will be
cumulative, will accumulate from
                    
      ,           
and will be payable quarterly in arrears, on
                
        ,                   
        ,
                  
       and
                
       of each year, commencing on
                
      ,
          
              ,
which payment dates shall correspond to the interest payment dates on the Debt
Securities, to Holders of record at the close of business on the regular record
date for such Distribution which shall be the close of business 15 days prior
to such Distribution payment date unless otherwise provided in the Declaration.
The Debt Security Issuer has the right under the Indenture to defer payments of
interest by extending the interest payment period from time to time on the Debt
Securities for a period not exceeding 20 consecutive quarters (each an “Extension
Period”); PROVIDED THAT no Extension Period shall last beyond the date of the
maturity or any redemption date of the Debt Securities and, as a consequence of
such deferral, Distributions will also be deferred. Despite such deferral,
quarterly Distributions will continue to accumulate with interest thereon (to
the extent permitted by applicable law) at the Coupon Rate compounded quarterly
during any such Extension Period. Prior to the termination of any such
Extension Period, the Debt Security Issuer may further extend such Extension
Period; PROVIDED THAT such Extension Period together with all such previous and
further extensions thereof may not exceed 20 consecutive quarters or extend
beyond the maturity or any redemption date of the Debt Securities. Upon the
termination of any Extension Period and the payment of all amounts then due,
the Debt Security Issuer may commence a new Extension Period, subject to the
above requirements.

 

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

 

72

 

{FORM OF ASSIGNMENT FOR DEFINITIVE
PREFERRED SECURITY}

 

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

 

(Please insert social security or other
taxpayer identification number of assignee.) the within security and hereby
irrevocably constitutes and appoints attorney to transfer the said security on
the books of the Trust, with full power of substitution in the premises.

 

Dated:

 

Signature(s)

 

Signature Guarantee*

 

NOTICE: The above signatures of the holder(s) hereof
must correspond with the name as written upon the face of this Security in
every particular without alteration or enlargement or any change whatever.

 

*                (Signature must be guaranteed by an “eligible guarantor
institution,” that is, a bank, stockbroker, savings and loan association or
credit union meeting the requirements of the Paying Agent, which requirements
include membership or participation in the Securities Transfer Agents Medallion
Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Paying Agent in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.)

 

73

 

SCHEDULE I

 

CHANGES TO NUMBER OF PREFERRED SECURITIES
IN GLOBAL SECURITY

 

	
  Number of Preferred

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Securities by which this

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Global Security Is To Be

  	
   

  	
  Remaining Preferred

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reduced or Increased,

  	
   

  	
  Securities Represented

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  and Reason for

  	
   

  	
  by this

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Reduction or Increase

  	
   

  	
  Global Security

  	
   

  	
  Notation Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

74

 

EXHIBIT A-2

 

{FORM OF COMMON SECURITY CERTIFICATE}

 

THE SECURITY EVIDENCED HEREBY HAS NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD UNLESS SUCH OFFER AND
SALE ARE REGISTERED UNDER OR ARE EXEMPT FROM REGISTRATION UNDER THE SECURITIES
ACT. THE TRANSFER OF THE SECURITY EVIDENCED HEREBY IS ALSO SUBJECT TO THE
RESTRICTIONS SET FORTH IN THE DECLARATION REFERRED TO BELOW.

 

THE TRANSFER OF THE SECURITY
EVIDENCED HEREBY IS ALSO SUBJECT TO THE RESTRICTIONS SET FORTH IN THE
DECLARATION REFERRED TO BELOW.

 

75

 

CERTIFICATE NUMBER:

 

NUMBER OF COMMON SECURITIES:

 

Certificate Evidencing Common Securities

 

of

 

UnionBanCal Finance Trust [*]

 

        %
Common Securities

 

(liquidation amount
$         per Common Security)

 

UnionBanCal Finance Trust [*], a statutory
trust formed under the laws of the State of Delaware (the “Trust”), hereby
certifies that
                                                                                
(the “Holder”) is the registered owner of common securities of the Trust
representing undivided beneficial interests in the assets of the Trust
designated the       % Common Securities
(liquidation amount $         per
Common Security) (the “Common Securities”). The Common Securities are not
transferable except in accordance with Section 9.1 of the Declaration (as
defined below).

 

The designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Common
Securities represented hereby are issued and shall in all respects be subject
to the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of
                    
      ,
          , as the same may
be amended from time to time (the “Declaration”), including the designation of
the terms of the Common Securities as set forth in Annex I to the Declaration.

 

Capitalized terms used herein but not
defined shall have the meaning given them in the Declaration. The Holder is
entitled to the benefits of the Common Securities Guarantee to the extent
provided therein. The Sponsor will provide a copy of the Declaration, the
Common Securities Guarantee and the Indenture to a Holder without charge upon
written request to the Trust at the Corporate Trust Office.

 

Upon receipt of this certificate, the
Holder is bound by the Declaration and the Common Securities Guarantee and is
entitled to the benefits thereunder.

 

By acceptance, the Holder agrees to treat,
for United States federal income tax purposes, the Debt Securities as
indebtedness of the Debt Security Issuer and the Common Securities as evidence
of indirect beneficial ownership in the Debt Securities.

 

76

 

IN WITNESS WHEREOF, the Trust has executed
this certificate this          day of
                ,
          .

 

	
   

  	
  UnionBanCal Finance Trust [*]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title: Regular Trustee

  
	
   

  	
  Solely as trustee and
  not in his individual capacity

  

 

77

 

{FORM OF REVERSE OF SECURITY}

 

Distributions payable on each Common
Security will be fixed at a rate per annum, of
      % (the “Coupon Rate”) of the stated
liquidation amount of $         per
Common Security, such rate being the rate of interest payable on the Debt
Securities to be held by the Property Trustee. Distributions in arrears for
more than one quarter will bear interest thereon compounded quarterly at the
Coupon Rate (to the extent permitted by applicable law). The term “Distributions”
as used herein includes such cash distributions and any such interest payable
unless otherwise stated. A Distribution is payable only to the extent that
payments are made in respect of the Debt Securities held by the Property
Trustee and to the extent the Property Trustee has funds available therefor.
The amount of Distributions payable for any period will be computed for any
full quarterly Distribution period on the basis of a 360-day year of twelve
30-day months, and for any period shorter than a full quarterly Distribution
period for which Distributions are computed, Distributions will be computed on
the basis of the actual number of days elapsed per 30-day month.

 

Except as otherwise described below,
Distributions on the Common Securities will be cumulative, will accumulate from
                    
      ,
         and will be payable quarterly
in arrears, on
              
      ,
                
      ,
              
       and
                
       of each year, commencing on
                  
      ,         ,
which payment dates shall correspond to the interest payment dates on the Debt
Securities, to Holders of record at the close of business on the regular record
date for such Distribution which shall be the close of business 15 days prior
to such Distribution payment date unless otherwise provided in the Declaration.
The Debt Security Issuer has the right under the Indenture to defer payments of
interest by extending the interest payment period from time to time on the Debt
Securities for a period not exceeding 20 consecutive quarters (each an “Extension
Period”), PROVIDED THAT no Extension Period shall last beyond the date of
maturity of the Debt Securities and, as a consequence of such deferral,
Distributions will also be deferred. Despite such deferral, quarterly
Distributions will continue to accumulate with interest thereon (to the extent
permitted by applicable law) at the Coupon Rate compounded quarterly during any
such Extension Period. Prior to the termination of any such Extension Period,
the Debt Security Issuer may further extend such Extension Period; PROVIDED
THAT such Extension Period together with all such previous and further
extensions thereof may not exceed 20 consecutive quarters or extend beyond the
date of maturity of the Debt Securities. Upon the termination of any Extension
Period and the payment of all amounts then due, the Debt Security Issuer may
commence a new Extension Period, subject to the above requirements.

 

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

 

78

 

FORM OF ASSIGNMENT FOR SECURITY
THEREOF

 

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

 

(Please insert social security or other
taxpayer identification number of assignee.)

 

the within security and hereby irrevocably
constitutes and appoints
                                attorney
to transfer the said security on the books of the Trust, with full power of
substitution in the premises.

 

Dated:

 

Signature(s)

 

Signature Guarantee*

 

NOTICE: The above signatures of the holder(s) hereof
must correspond with the name as written upon the face of this Security in
every particular without alteration or enlargement or any change whatever.

 

*                (Signature must be guaranteed by an “eligible
guarantor institution,” that is, a bank, stockbroker, savings and loan
association or credit union meeting the requirements of the Paying Agent, which
requirements include membership or participation in the Securities Transfer
Agents Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Paying Agent in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.)

 

79

 

EXHIBIT B

 

SPECIMEN OF DEBT SECURITY

 

80

 

EXHIBIT C

 

UNDERWRITING AGREEMENT

 

81

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