Document:

EX-4.2

 

Exhibit 4.2

 

First Supplemental Indenture

between

WACHOVIA CORPORATION

and

U.S. BANK NATIONAL ASSOCIATION

Dated as of February 1, 2006

Supplement to Indenture of Wachovia Corporation

dated as of February 1, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 
	     Section 1.1
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE II GENERAL TERMS AND CONDITIONS OF THE NOTES	 	 	6	 
	 
	 	 	 	 	 	 
	     Section 2.1
	 	Designation, Principal Amount and Authorized Denomination	 	 	6	 
	     Section 2.2
	 	Maturity	 	 	6	 
	     Section 2.3
	 	Form and Payment	 	 	6	 
	     Section 2.4
	 	Notes Held by Collateral Agent and Custodial Agent; Global Notes; Adjustment	 	 	 	 
	 
	 	of Global Notes	 	 	7	 
	     Section 2.5
	 	Interest	 	 	8	 
	     Section 2.6
	 	Redemption of the Notes	 	 	9	 
	     Section 2.7
	 	Notice of Defaults; Amount Payable upon Acceleration	 	 	9	 
	     Section 2.8
	 	Securities Registrar; Paying Agent; Delegation of Trustee Duties	 	 	9	 
	     Section 2.9
	 	Additional Covenants of the Company	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE III REMARKETING AND RATE RESET PROCEDURES	 	 	10	 
	 
	 	 	 	 	 	 
	     Section 3.1
	 	Obligation to Conduct Remarketing and Related Requirements	 	 	10	 
	     Section 3.2
	 	Company Decisions in Connection with Remarketing	 	 	11	 
	     Section 3.3
	 	Reset of Interest Rate in Connection with Remarketings and Related Changes in	 	 	 	 
	 
	 	Terms	 	 	12	 
	     Section 3.4
	 	Early Remarketing	 	 	13	 
	     Section 3.5
	 	Company Announcements	 	 	14	 
	     Section 3.6
	 	Supplemental Indenture	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE IV EXPENSES	 	 	14	 
	 
	 	 	 	 	 	 
	     Section 4.1
	 	Expenses	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE V FORM OF NOTE	 	 	15	 
	 
	 	 	 	 	 	 
	     Section 5.1
	 	Form of Notes	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE VI ORIGINAL ISSUE OF NOTES	 	 	23	 
	 
	 	 	 	 	 	 
	     Section 6.1
	 	Original Issue of Notes	 	 	23	 
	     Section 6.2
	 	Calculation of Original Issue Discount	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE VII SUBORDINATION	 	 	23	 
	 
	 	 	 	 	 	 
	     Section 7.1
	 	Company Election to End Subordination	 	 	23	 
	     Section 7.2
	 	Compliance with Federal Reserve Rules	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE VIII MISCELLANEOUS	 	 	23	 
	 
	 	 	 	 	 	 
	     Section 8.1
	 	Effectiveness	 	 	23	 

Supplemental Indenture

 

 

	 	 	 	 	 	 	 
	     Section 8.2
	 	Successors and Assigns	 	 	24	 
	     Section 8.3
	 	Further Assurances	 	 	24	 
	     Section 8.4
	 	Effect of Recitals	 	 	24	 
	     Section 8.5
	 	Ratification of Indenture	 	 	24	 
	     Section 8.6
	 	Governing Law	 	 	24	 

Supplemental Indenture

-ii- 

 

          First Supplemental Indenture, dated as of February 1, 2006, to an Indenture, dated as
of February 1, 2006, between Wachovia Corporation, a North Carolina corporation (herein
after called the “Company”), having its principal office at 301 South College Street, Charlotte,
North Carolina 28288, and U.S. Bank National Association, a national banking association,
as Trustee (herein after called the “Trustee”).

Recitals of the Company

          The Company and the Trustee entered into an Indenture, dated as of February 1, 2006 (the
“Indenture”).

          Section 9.1 of the Indenture provides that the Indenture may be amended or supplemented
without the consent of any Holder (i) to change or eliminate any of the provisions of the Indenture
in respect of one or more series of Securities, provided that any such change or elimination shall
not apply to any Outstanding Securities, and (ii) to establish the form or terms of Securities of
any series as permitted by Sections 2.1 and 3.1 of the Indenture.

          The Company has delivered to the Trustee an Opinion of Counsel and an Officers’ Certificate
pursuant to Section 1.2 of the Indenture to the effect that all conditions precedent provided for
in the Indenture to the Trustee’s execution and delivery of this First Supplemental Indenture have
been complied with.

          Wachovia Capital Trust III, a Delaware statutory trust (the “Trust”), has offered to the
public its trust preferred securities known as Wachovia Income Trust Securities (the “WITS”), which
are beneficial interests in the Trust, and proposes to invest the proceeds from such offering,
together with the proceeds of the issuance and sale by the Trust to the Company of its Common
Securities (the “Trust Common Securities” and together with the WITS, the “Trust Securities”), in
the Notes (as defined herein).

          The Notes will be subject to Remarketing, in connection with which certain terms of the Notes
may be changed, all in accordance with the procedures to be set forth in a Remarketing Agreement,
dated as of the date hereof (as amended or supplemented from time to time, the “Remarketing
Agreement”), among the Company, U.S. Bank National Association, as property trustee of the Trust,
and Wachovia Securities, LLC, as remarketing agent (including any successor or replacement, the
“Remarketing Agent”).

          The Company has requested that the Trustee execute and deliver this First Supplemental
Indenture and satisfy all requirements necessary to make this First Supplemental Indenture a valid
instrument in accordance with its terms, and to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee, the valid obligations of the Company and all acts and
things necessary have been done and performed to make this First Supplemental Indenture enforceable
in accordance with its terms, and the execution and delivery of this First Supplemental Indenture
has been duly authorized in all respects.

          Now therefore, this First Supplemental Indenture witnesseth: For and in consideration
of the premises and the purchase of the Notes by the Holders thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows:

Supplemental Indenture

 

 

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions.

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

     (a) Terms defined in the Indenture, the Trust Agreement or the Stock Purchase Contract
Agreement have the same meaning when used in this First Supplemental Indenture unless otherwise
specified herein.

     (b) The terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular.

     (c) The words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this First Supplemental Indenture as a whole and not to any particular Article, Section or other
subdivision, and any reference to an Article, Section or other subdivision refers to an Article,
Section or other subdivision of this First Supplemental Indenture.

          “Administrative Trustee” means, in respect of Wachovia Capital Trust III, each individual
identified as an “Administrative Trustee” in the Trust Agreement, solely in such individual’s
capacity as Administrative Trustee of Wachovia Capital Trust III under the Trust Agreement and not
in such individual’s individual capacity, or any successor Administrative Trustee appointed as
therein provided.

          “Collateral Agent” means JPMorgan Chase Bank, National Association, as Collateral Agent under
the Collateral Agreement until a successor Collateral Agent shall have become such pursuant to the
applicable provisions of the Collateral Agreement, and thereafter “Collateral Agent” shall mean the
Person who is then the Collateral Agent thereunder.

          “Commercially Reasonable Efforts” by the Company to sell shares of its common stock or
non-cumulative perpetual preferred stock means commercially reasonable efforts to complete the
offer and sale of shares of its common stock or non-cumulative perpetual preferred stock, as the
case may be, to third parties that are not affiliates of the Company in public offerings or private
placements; provided that the Company shall be deemed to have used such Commercially Reasonable
Efforts if a Market Disruption Event occurs and for so long as it continues regardless of whether
the Company makes any offers or sales during such period.

          “Creditor” has the meaning specified in Section 4.1(b).

          “Custodial Agent” means JPMorgan Chase Bank, National Association, as Custodial Agent under
the Collateral Agreement until a successor Custodial Agent shall have become such pursuant to the
applicable provisions of the Collateral Agreement, and thereafter “Custodial Agent” shall mean the
Person who is then the Custodial Agent thereunder.

          “Early Remarketing” has meaning specified in Section 3.4.

          An “Early Settlement Event” shall be deemed to have occurred if: (i) the Company’s “total
risk-based capital ratio” is less than 10%, (ii) the Company’s “Tier 1 risk-based capital ratio” is
less than 6%, (iii) the Company’s “leverage capital ratio” is less than 4%; (iv) the Federal
Reserve, in its

Supplemental Indenture

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discretion, anticipates that the Company may fail one or more of the capital tests referred to
above in the near term and delivers a notice to the Company so stating; or (v) the Trust is
dissolved pursuant to Section 9.2(c) of the Trust Agreement, where the related Early Settlement
Event in the case of the tests described in each of (i), (ii) and (iii) above will be deemed to
occur on the date the Company files a Form FR Y-9 showing in Schedule HC-R (or successor form) that
the related capital measure has been failed and each such ratio will be determined as required
pursuant to Appendix A to Regulation Y of the Federal Reserve Board, 12 C.F.R. Part 225.

          “Early Termination Event” means the dissolution of the Trust and the distribution of the Notes
held by or on behalf of the Trust to the holders of the Trust Securities in accordance with Section
9.4 of the Trust Agreement.

          “Failed Remarketing” means a Final Remarketing that is not Successful.

          “Final Remarketing” means (i) a Remarketing for a settlement date on March 15, 2012 (or if
such day is not a Business Day, the immediately succeeding Business Day), (ii) in the case of an
Early Remarketing, the fifth scheduled Remarketing or (iii) in the case of an Early Remarketing in
connection with clause (v) of the definition of Early Settlement Event, the first Remarketing.

          “Fixed Rate Reset Cap”, as of any Remarketing Settlement Date, means the prevailing market
yield, as determined by the Remarketing Agent, of the benchmark U.S. treasury security having a
remaining maturity that most closely corresponds to the period from such date until the earliest
date on which the Notes may be redeemed at the option of the Company in the event of a Successful
Remarketing, plus 350 basis points, or 3.50%, per annum.

          “Floating Rate Reset Cap” means 301 basis points, or 3.01%, per annum.

          “First Supplemental Indenture” means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more agreements supplemental hereto entered into
pursuant to the applicable provisions hereof.

          “Global Notes” has the meaning specified in Section 2.4.

          “Interest Payment Date” shall have the meaning specified in Section 5.1.

          “Interest Period” means the period from and including the most recent Interest Payment Date to
which interest has been paid or duly made available for payment (or February 1, 2006 if no interest
has been paid or been duly made available for payment) to, but excluding, the next succeeding
Interest Payment Date or, if earlier, then the Stated Maturity Date of the Notes.

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

     (i) the Company would be required to obtain the consent or approval of its shareholders
or a regulatory body (including, without limitation, any securities exchange) or
governmental authority to issue shares of common stock or perpetual preferred stock and the
Company fails to obtain that consent or approval notwithstanding the Company’s commercially
reasonable efforts to obtain that consent or approval (including, without limitation, the
Company failing to obtain the approval of the Federal Reserve, after having notified the
Federal Reserve and sought such approval in accordance with the terms of the instrument or
instruments under which the relevant securities are to be issued);

Supplemental Indenture

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     (ii) trading in securities generally on the New York Stock Exchange, the American Stock
Exchange, the Nasdaq Stock Market or any other national securities, futures or options
exchange or in the over-the-counter market, or trading in any of the Company’s securities
(or any options or futures contracts related to such securities) on any exchange or in the
over-the-counter market shall have been suspended or the settlement of such trading
generally shall have been materially disrupted or minimum prices shall have been established
on any such exchange or such market by the SEC, by such exchange or by any other regulatory
body or governmental authority having jurisdiction;

     (iii) a banking moratorium shall have been declared by the federal or state authorities
of the United States such that market trading has been disrupted or ceased;

     (iv) a material disruption shall have occurred in commercial banking or securities
settlement or clearance services in the United States such that market trading has been
disrupted or ceased;

     (v) the United States shall have become engaged in hostilities, there shall have been
an escalation in hostilities involving the United States, there shall have been a
declaration of a national emergency or war by the United States or there shall have occurred
any other national or international calamity or crisis such that market trading has been
disrupted or ceased;

     (vi) there shall have occurred such a material adverse change in general domestic or
international economic, political or financial conditions, including without limitation as a
result of terrorist activities, or the effect of international conditions on the financial
markets in the United States shall be such, as to make it, in the Company’s reasonable
judgment, impracticable or inadvisable to proceed with the offer and sale of shares of its
common stock or preferred stock; or

     (vii) an event occurs and is continuing as a result of which the offering document for
such offer and sale of securities would, in the Company’s judgment, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading and either (a) the disclosure of
that event at such time, in the Company’s judgment, is not otherwise required by law and
would have a material adverse effect on the Company’s business or (b) the disclosure relates
to a previously undisclosed proposed or pending material business transaction, the
disclosure of which would impede the Company’s ability to consummate such transaction,
provided that no single suspension period contemplated by this subsection (vii) shall exceed
90 consecutive days and multiple suspension periods contemplated by this subsection (vii)
shall not exceed an aggregate of 180 days in any 360-day period.

          “Notes” has the meaning specified in Section 2.1.

          “Paying Agent”, when used with respect to the Notes, means JPMorgan Chase Bank, National
Association or any other Person authorized by the Company to pay the principal of (and premium, if
any) or interest on any Securities on behalf of the Company.

          “Paying Agent Office” means the office of the applicable Paying Agent at which at any
particular time its corporate agency business shall principally be administered, which office at
the date hereof in the case of JPMorgan Chase Bank, National Association, in its capacity as Paying
Agent under the Indenture, is located at 4 New York Plaza, 15th Floor, New York, New
York 10004; Attention: Worldwide Securities Services.

Supplemental Indenture

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          “Preferred Stock” means the Non-Cumulative Perpetual Class A Preferred Stock, Series I,
$100,000 liquidation preference per share, of the Company.

          “qualified floating rate” has the meaning specified in Section 3.3(a)(iii).

          “Released Note” has the meaning specified in Section 2.4(d).

          “Remarketed Notes” has the meaning specified in Section 2.4(c).

          “Remarketing” means a remarketing of Notes pursuant to Article III and the Remarketing
Agreement.

          “Remarketing Date” means the third Business Day preceding each of February 15, May 15, August
15 and November 15, 2011 and February 15, 2012 until the settlement of a Successful Remarketing, or
if an Early Settlement Event shall have occurred, each of the dates determined in accordance with
Section 3.4.

          “Remarketing Settlement Date” means the third Business Day following the Remarketing Date for
a Successful Remarketing.

          The “Remarketing Value” of each Note will be equal to the present value on the Remarketing
Settlement Date of an amount equal to the principal amount of, plus the interest payable on, such
Note on the next Regular Distribution Date, including any deferred interest, assuming for this
purpose, even if not true, that the interest rate on the Notes remains at the rate in effect
immediately prior to the Remarketing and all accrued and unpaid interest on the Notes is paid in
cash on such date, determined using a discount rate of 4.90% per annum.

          “Reset Rate” means, if the Notes are remarketed as fixed rate notes, the rate of interest on
the Notes, if any, set in a Remarketing, as specified in Section 3.3(a).

          “Reset Spread” means, if the Notes are remarketed as floating rate notes, the spread, if any,
set in a Remarketing, as specified in Section 3.3(a).

          “Responsible Officer” means, when used with respect to JPMorgan Chase Bank, National
Association, in its capacity as Paying Agent, any officer with the Worldwide Securities Services –
Conventional Debt Unit (or any successor unit, department or division of JPMorgan Chase Bank,
National Association) assigned to the Paying Agent Office of JPMorgan Chase Bank, National
Association, in its capacity as Paying Agent, who has direct responsibility for the administration
of the Paying Agent functions of the Indenture and this First Supplemental Indenture.

          “Securities Intermediary” means JPMorgan Chase Bank, National Association, as Securities
Intermediary under the Collateral Agreement until a successor Securities Intermediary shall have
become such pursuant to the applicable provisions of the Collateral Agreement, and thereafter
“Securities Intermediary” shall mean the Person who is then the Securities Intermediary thereunder.

          “Securities Registrar” has the meaning specified in the Indenture.

          “Securities Registrar Office” means the office of the applicable Securities Registrar at which
at any particular time its corporate agency business shall principally be administered, which
office at the date hereof in the case of JPMorgan Chase Bank, National Association, in its capacity
as Securities

Supplemental Indenture

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Registrar under the Indenture, is located at 4 New York Plaza, 15th Floor, New
York, New York 10004; Attention: Worldwide Securities Services.

          “Stated Maturity Date” means March 15, 2042 or such earlier date as may be specified by the
Company following a Remarketing in accordance with Article III.

          “Stock Purchase Contract Agreement” means the Stock Purchase Contract Agreement, dated as of
February 1, 2006, between the Company and the Trust acting through the Property Trustee.

          “Subjected Note” has the meaning specified in Section 2.4(e).

          “Successful” has the meaning specified in Section 3.5(a).

          “Trust Agreement” means the Amended and Restated Trust Agreement, dated as of February 1,
2006, among the Company, as Depositor, the Property Trustee, the Delaware Trustee and the
Administrative Trustees (each as named therein).

          “Unsuccessful” has the meaning specified in Section 3.5(b).

          “Underwriting Agreement” means the Underwriting Agreement, dated January 25, 2006, among the
Trust, the Company and Wachovia Capital Markets, LLC and Goldman, Sachs & Co., as representatives
of the underwriters named therein.

          “WITS” means each of the Normal WITS, the Stripped WITS and the Capital WITS.

          “WITS
Registrar” means “Securities Registrar” as such
term is defined in the Trust Agreement.

ARTICLE II

GENERAL TERMS AND CONDITIONS OF THE NOTES

     Section 2.1 Designation, Principal Amount and Authorized Denomination.

          There is hereby authorized a series of Securities designated the Remarketable Junior
Subordinated Notes due 2042 (the “Notes”), limited in aggregate principal amount to $2,501,000,000,
which amount to be issued shall be as set forth in any written order of the Company for the
authentication and delivery of Notes pursuant to the Indenture. The denominations in which Notes
shall be issuable are $1,000 principal amount and integral multiples thereof.

     Section 2.2 Maturity.

          The Stated Maturity of the Notes will be March 15, 2042, subject to change as provided in
Article III.

     Section 2.3 Form and Payment.

          Except as provided in Section 2.4, the Notes shall be issued in fully registered definitive
form without interest coupons. Principal of and interest on the Notes issued in definitive form
will be payable, the transfer of such Notes will be registrable and such Notes will be exchangeable
for Notes bearing identical terms and provisions and notices and demands to or upon the Company in
respect of the Notes and the Indenture, as supplemented by this First Supplemental Indenture, may
be served at the

Supplemental Indenture

-6-

 

Corporate Trust Office of the Trustee, and the Company appoints the Trustee as its agent for
the foregoing purposes; provided that payment of interest may be made at the option of the Company
by check mailed to the Holder at such address as shall appear in the Securities Register or by wire
transfer in immediately available funds to the bank account number of the Holder specified in
writing by the Holder and entered in the Securities Register by the Securities Registrar.
Notwithstanding the foregoing, so long as the Holder of any Note is the Collateral Agent or the
Custodial Agent, the payment of the principal of and interest (including expenses and taxes of the
Trust set forth in Section 4.1, if any) on such Notes held by the Collateral Agent or the Custodial
Agent will be made at the Paying Agent Office or such place and to such account as may be
designated in writing by the Collateral Agent or the Custodial Agent, as the case may be. The
Notes may be presented for registration of transfer or exchange at the Securities Registrar Office.

     Section 2.4 Notes Held by Collateral Agent and Custodial Agent; Global Notes; Adjustment of
Global Notes.

     (a) The Notes shall be issued initially in fully registered definitive form in the name of the
Collateral Agent and the Custodial Agent, in their respective capacities as such. For so long as
such Notes are held by the Collateral Agent and the Custodial Agent, each such Note shall represent
the principal amount so indicated in the Securities Register; provided that the aggregate principal
amount of all such Notes shall at all times equal the principal amount issued in accordance with
Section 2.1.

     (b) At any time on or after the first to occur of the Remarketing Settlement Date, an Early
Termination Event or the redemption of the Capital WITS by the Trust in exchange for Notes, the
Notes in definitive form may be presented to the Securities Registrar for exchange for one or more
global Notes in an aggregate principal amount equal to the aggregate principal amount of the Notes
so presented (a “Global Note”), to be registered in the name of the Depositary, or its nominee, and
delivered to the Depositary for crediting to the accounts of its participants pursuant to the
instructions of the Administrative Trustees. The Company upon any such presentation shall execute
one or more Global Notes in such aggregate principal amount and deliver the same to the Trustee for
authentication and delivery in accordance with the Indenture. The Trustee, upon receipt of such
Global Notes, together with an Officers’ Certificate requesting authentication, will authenticate
such Global Notes and deliver them to the Securities Registrar, as custodian for the Depositary.
Payments on the Notes issued as Global Notes will be made to the Depositary.

     (c) In the event that (i) any Pledged Notes for which no election has been validly made
pursuant to Section 8.02(a) of the Collateral Agreement are to be released from the Pledge and
transferred to the Remarketing Agent pursuant to Section 8.02(b) of the Collateral Agreement or
(ii) any Notes for which an election has been validly made pursuant to Section 8.03(a) of
the Collateral Agreement are to be delivered to the Remarketing Agent pursuant to Section 8.03(b)
of the Collateral Agreement (collectively, the “Remarketed Notes”), such transfers shall be
evidenced by an endorsement by the Securities Registrar on the Notes held by the Collateral Agent
and the Custodial Agent, respectively, reflecting a reduction in the principal amount of such Notes
equal in amount to the principal amount of the Remarketed Notes in a Successful Remarketing. The
Securities Registrar shall confirm any such reduced principal amount by faxing or otherwise
delivering a photocopy of such endorsement made on the Notes evidencing such reduced principal
amount to the Trustee at the facsimile number or address of the Property Trustee provided for
notices to the Property Trustee in the Collateral Agreement (or at such other facsimile number or
address as the Trustee shall provide to the Securities Registrar). Upon receipt of such
confirmation, the Trustee shall instruct the Securities Registrar to increase the principal amount
of a Global Note in an amount equal to the aggregate principal amount of the Remarketed Notes by an
endorsement made by the Securities Registrar on such Global Note to reflect such increase.

Supplemental Indenture

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     (d) In the event that any Pledged Note is to be released from the Pledge and transferred to
the Custodial Account pursuant to Section 6.02(a) of the Collateral Agreement (a “Released Note”),
as a result of the exchange of Normal WITS and Qualifying Treasury Securities for Stripped WITS and
Capital WITS as provided in said Section 6.02(a) of the Collateral Agreement, such transfer shall
be evidenced by an endorsement by the Collateral Agent or the Securities Registrar on the Note held
by the Collateral Agent reflecting a reduction in the principal amount of such Note equal in amount
to the principal amount of the Released Note. The Collateral Agent shall confirm any such reduced
principal amount by faxing or otherwise delivering a photocopy of such endorsement made on the Note
evidencing such reduced principal amount to the Trustee at the facsimile number or address of the
Trustee provided for notices to the Property Trustee in the Collateral Agreement (or at such other
facsimile number or address as the Property Trustee shall provide to the Collateral Agent). Upon
receipt of such confirmation, the Trustee shall instruct the Custodial Agent or Securities
Registrar to increase the principal amount of the Note held by the Custodial Agent in an amount
equal to such reduced principal amount by an endorsement made by the Custodial Agent or Securities
Registrar on such Note held by the Custodial Agent to reflect such increase.

     (e) In the event that a Note is transferred to the Collateral Account pursuant to Section
6.03(b)(i) of the Collateral Agreement (a “Subjected Note”) in connection with the exchange of
Stripped WITS and Capital WITS for Normal WITS and Qualifying Treasury Securities as provided in
Section 6.03 of the Collateral Agreement, such transfer shall be evidenced by an endorsement by the
Collateral Agent or the Securities Registrar on the Note held by the Collateral Agent reflecting an
increase in the principal amount of such Note equal in amount to the principal amount of such
Subjected Note. The Collateral Agent shall confirm any such increased principal amount by faxing
or otherwise delivering a photocopy of such endorsement made on the Note evidencing such increased
principal amount to the Trustee at the facsimile number or address of the Trustee provided for
notices to the Trustee in the Collateral Agreement (or at such other facsimile number or address as
the Trustee shall provide to the Collateral Agent). Upon receipt of such confirmation, the Trustee
shall instruct the Custodial Agent or the Securities Registrar to decrease the principal amount of
the Note held by the Custodial Agent in an amount equal to such increased principal amount by an
endorsement made by the Custodial Agent or Securities Registrar on such Note held by the Custodial
Agent to reflect such decrease.

     Section 2.5 Interest.

     (a) Each Note will bear interest as provided in the form of Notes set forth in Section 5.1.

     (b) The Company shall have the right to defer the payment of interest on the Notes, as
provided in Section 3.11 of the Indenture, for one or more Extension Periods extending to not later
than the first to occur of a date that is seven years after the commencement of such Extension
Period, or a date that is two years after the latest possible Remarketing Settlement Date. The
Paying Agent shall give notice of the Company’s election to begin or extend any Extension Period to
the Holders of the Outstanding Notes in the form of a notice thereof as shall have been prepared by
the Company and furnished to the Paying Agent.

     (c) If on the Stock Purchase Date the Company has not paid in cash all interest accrued on the
Notes and there is a Failed Remarketing, the Company will pay the Trust such deferred interest on
the Stock Purchase Date in subordinated notes that have a principal amount equal to the aggregate
amount of deferred interest as of the Stock Purchase Date, mature on March 15, 2014, bear interest
at a rate per annum equal to the rate of interest originally in effect on the Notes (subject to
deferral on the same basis as the Notes; provided that the reference in clause (iii)(a)(2) of
Section 3.11 of the Indenture to the

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beginning of the Extension Period shall be deemed to refer to the beginning of the Extension
Period with respect to the Notes), are subordinate and rank junior in right of payment and upon
liquidation to the Company’s obligations to the holders of Senior Debt of the Company on the same
basis as the Notes and are redeemable by the Company at any time or from time to time prior to
their stated maturity at a redemption price equal to the principal amount thereof plus any accrued
and unpaid interest to the date of redemption; provided, further, that the Company shall register
such subordinated notes under the Securities Act prior to the delivery thereof to the Property
Trustee unless they may be so delivered pursuant to an exemption from registration thereunder.

     Section 2.6 Redemption of the Notes.

     (a) The Notes shall not be subject to the right of redemption specified in Section 11.7 of the
Indenture.

     (b) The Company may from time to time redeem Notes, in whole or in part, at any date on or
after March 15, 2015, at a redemption price equal to 100% of the principal amount thereof plus
accrued and unpaid interest, including deferred interest (if any), to the date of redemption, in
accordance with Article XI of the Indenture. In connection with a Remarketing, the Company may
change the date after which it may redeem Notes to a later date or change the redemption price in
accordance with Article III.

     (c) The Notes are not entitled to any sinking fund payments.

     Section 2.7 Notice of Defaults; Amount Payable upon Acceleration.

     So long as any Notes are held by or on behalf of the Trust, the Trustee shall provide to the
holders of the Normal WITS, Trust Common Securities and Capital WITS such notices as it shall from
time to time provide under Section 6.2 of the Indenture. In addition, the Trustee shall provide to
the holders of the Normal WITS, Trust Common Securities and Capital WITS notice of any Event of
Default or event that, with the giving of notice or lapse of time, or both, would become an Event
of Default with respect to the Notes within 30 days after such Event of Default or other event
becomes known to the Trustee.

     Section 2.8 Securities Registrar; Paying Agent; Delegation of Trustee Duties.

     (a) The Company appoints JPMorgan Chase Bank, National Association, as Securities Registrar
and Paying Agent with respect to the Notes for so long as it shall act as Collateral Agent and
Custodial Agent and is the Holder of the Notes in any of such capacities.

     (b) Notwithstanding any provision contained herein, to the extent permitted by applicable law,
the Trustee may delegate its duty to provide such notices and to perform such other duties as may
be required to be provided or performed by the Trustee under the Indenture and this First
Supplemental Indenture, and, to the extent such obligation has been so delegated, the Trustee shall
not be responsible for monitoring the compliance of, nor be liable for the default or misconduct
of, any such designee.

     Section 2.9 Additional Covenants of the Company

     (a) The Company covenants and agrees with each Holder of the Notes that if it defers payment
of interest on any Interest Payment Date on or prior to the Stock Purchase Date, the Company shall
pay such deferred interest only out of the net proceeds of shares of its common stock or
non-cumulative perpetual preferred stock it receives during the 180 days preceding the date of
payment of such deferred interest, that it shall notify the Federal Reserve if this covenant is
applicable, and, subject to

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the approval of the Federal Reserve, that it shall use its Commercially Reasonable Efforts to
sell shares of its common stock or non-cumulative perpetual preferred stock not later than the
termination of such deferral period in an amount so that the net proceeds of such sale, when
applied to such deferred payments of interest, will cause such unpaid deferred interest payments to
be paid in full and (unless the Federal Reserve instructs otherwise) apply the proceeds of such
sale to pay the deferred amounts (provided that the Company shall not in any event be required to
pay interest on the Notes at the time when the payment of such interest would violate the terms of
any securities issued by the Company or any of its subsidiaries or the terms of a contract binding
on the Company or any of its subsidiaries). For the avoidance of doubt, the Company’s failure to
raise sufficient eligible proceeds or its use of other sources to fund such deferred interest
payments, by itself, shall not constitute an Event of Default under the Indenture, as supplemented.

     (b) Notwithstanding Section 2.9(a), if the Company is required to conduct a sale of shares of
its common stock and/or non-cumulative perpetual preferred stock in order to pay amounts due and
payable under any instruments or other securities that rank pari passu as to interest or
distributions with the Notes, then the Company shall apply such proceeds to deferred interest
payments on the Notes, on the one hand, and such other pari passu securities, on the other hand, on
a ratable basis in proportion to the total amounts that are due on the Notes and such securities
before the Company shall be relieved of its obligation to conduct the sale and shares of its common
stock and/or non-cumulative perpetual preferred stock and apply the proceeds thereof to such
securities.

     (c) If the Company issues subordinated notes in respect of deferred interest payments pursuant
to Section 2.5(c), Sections 2.9(a) and (b) will apply to the payment of interest on and principal
of these subordinated notes except that references to termination of the deferral period shall
instead be to the maturity date of these subordinated notes.

     (d) Notwithstanding anything in the Indenture or the Notes, the Company covenants and agrees
with each Holder of the Notes that it shall not incur any additional indebtedness for borrowed
money that by its terms ranks pari passu in all respects with or junior in interest to the Notes
except in compliance with the then applicable regulations and guidelines of the Federal Reserve.

ARTICLE III

REMARKETING AND RATE RESET PROCEDURES

     Section 3.1 Obligation to Conduct Remarketing and Related Requirements.

     (a) The Company and the Property Trustee (on behalf of the Trust) have appointed the
Remarketing Agent and entered into a Remarketing Agreement to effect the Remarketing of the Notes
upon the terms, conditions and other provisions provided therein and in the Trust Agreement and the
Collateral Agreement.

     (b) The Company and the Remarketing Agent have agreed to use commercially reasonable efforts
to effect the Remarketing of the Notes as described in this Article III, and in connection
therewith, the Remarketing Agent will use its commercially reasonable efforts to obtain a price for
all the Remarketed Notes that results in proceeds, net of any remarketing fee, of at least 100% of
their aggregate Remarketing Value. If in the judgment of counsel to the Company, or the
Remarketing Agent it is necessary for a registration statement covering the Notes to have been
filed and have become effective under the Securities Act in order to effect the Remarketing, then
the Company shall (i) use commercially reasonable efforts to ensure that a registration statement
covering the full principal amount of Notes to be

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remarketed shall have become effective in a form that will enable the Remarketing Agent to
rely on it in connection with the Remarketing or (ii) effect such Remarketing pursuant to Rule 144A
(if available) under the Securities Act or another available exemption from the registration
requirements under the Securities Act.

     Section 3.2 Company Decisions in Connection with Remarketing.

          In connection with Remarketings, the Company shall have the right hereunder, subject to
Section 3.3(a), without the consent of any Holder of the Notes, to change certain terms of the
Notes as provided below in this Section 3.2. By not later than the 21st day prior to
each Remarketing Date, the Company will specify the following information or decisions in a notice
to the Remarketing Agent, the Collateral Agent, the Custodial Agent, the Property Trustee (on
behalf of the Trust) and the Trustee (clauses (a) through (e) applying only if the Remarketing is
Successful and clause (f) applying only in the case of a Failed Remarketing):

     (a) whether the Stated Maturity Date will remain at March 15, 2042 or will be changed to an
earlier date (specifying such date if applicable); provided that the Stated Maturity Date may not
be changed to a date earlier than the earlier of (i) March 15, 2015 and (ii) if the Remarketing
Settlement Date occurs during an Extension Period, the seventh anniversary of the first day of such
Extension Period;

     (b) whether to change the date after which the Notes will be redeemable at the Company’s
option and the redemption price or prices; provided that no redemption date for the Notes may be
earlier than the earlier of (i) March 15, 2015 and (ii) if the Remarketing Settlement Date occurs
during an Extension Period, the seventh anniversary of the first day of such Extension Period; and
provided, further, that no redemption price may be less than the principal plus accrued and unpaid
interest (including Additional Interest) on the Notes;

     (c) whether in connection with an Early Remarketing that is not the first scheduled
Remarketing, the Company is exercising its right under Section 7.1 to cause the subordination
provisions in the Indenture to cease to apply to the Notes, if the Remarketing is Successful, from
and after the Remarketing Settlement Date and if so, whether it also elects that the Notes shall no
longer be subject to the interest deferral provisions of Section 3.11 of the Indenture;

     (d) whether the Notes will be remarketed as fixed rate notes or floating rate notes;

     (e) if the Notes will be remarketed as floating rate notes, the applicable index (which must
be a qualified floating rate) and the interest payment dates and manner of calculation of interest
on the Notes, which the Company may change to correspond with the market conventions applicable to
notes bearing interest at rates based on the applicable index; and

     (f) whether following a Failed Remarketing:

     (i) the Stated Maturity Date will remain at March 15, 2042 or will be changed to an
earlier date, which date shall not be earlier than March 15, 2015 (specifying such date if
applicable); and

     (ii) the date after which the Notes will be redeemable at the Company’s option will be
changed (which date shall not be earlier than March 15, 2015) and the redemption price or
prices;

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provided that if the Failed Remarketing occurs during an Extension Period any changed Stated
Maturity Date of the Notes determined pursuant to clause (i) or early redemption date determined
pursuant to clause (ii) may not be earlier than the seventh anniversary of the first day of such
Extension Period.

          Any such elections made by the Company pursuant to clauses (a) through (e) shall, upon
successful completion of a Remarketing, automatically apply and come into effect in respect of the
Notes as of the Remarketing Settlement Date and any such elections made by the Company pursuant to
clause (f) in connection with a Failed Remarketing shall come into effect in respect of the Notes
upon the announcement by the Company that the Final Remarketing is a Failed Remarketing.

     Section 3.3 Reset of Interest Rate in Connection with Remarketings and Related Changes in
Terms.

          (a) As part of and in connection with each Remarketing, the Remarketing Agent shall determine
the Reset Rate or Reset Spread on the Notes, subject to Sections 3.3(b) through (e), pursuant to
the Remarketing Agreement and in accordance with the other provisions of this Article III, that
will apply to all Notes (whether or not sold in the Remarketing) if such Remarketing is Successful
for each Interest Period or portion thereof commencing on or after such Remarketing Settlement
Date, subject to the following provisions and limitations:

     (i) in connection with a Remarketing that is not a Final Remarketing, (A) if the Notes
are remarketed as fixed rate notes, the Reset Rate may not exceed the Fixed Rate Reset Cap
and (B) if the Notes are remarketed as floating rate notes, the Reset Spread may not exceed
the Floating Rate Reset Cap;

     (ii) the interest rate on the Notes may not at any time be less than 0% per annum; and

     (iii) if (A) the interest rate on the Notes is not a fixed rate or a “qualified
floating rate” (as defined in U.S. Treasury regulations section 1.1275-5(b)), (B) interest
on the Notes is not unconditionally payable at intervals of no more than one year through
the remaining term of the Notes, or (C) the redemption price of the Notes is not their
principal amount (disregarding a customary call premium that is fixed or objectively
determinable based on a qualified floating rate), then the Company shall have received a
written opinion of Cadwalader, Wickersham & Taft LLP or other nationally recognized tax
counsel experienced in such matters to the effect that the discussion contained in the
Prospectus under the heading “Certain U.S. Federal Income Tax Consequences” is materially
correct, taking into account all of the terms of the Notes following the Remarketing.

     (b) If the Remarketing has been determined to be Successful in accordance with Section 3.5(a),
by approximately 4:30 P.M., New York City time, on any Remarketing Date, the Remarketing Agent
shall notify the Company, the Collateral Agent, the Custodial Agent, the Property Trustee (on
behalf of the Trust) and the Trustee that the Remarketing was Successful and the Reset Rate or
Reset Spread determined as part of such Remarketing in accordance with this Article III.

     (c) If a Remarketing is Successful, then commencing with the related Remarketing Settlement
Date the interest rate on the Notes shall be reset to the rate determined in accordance with this
Article III pursuant to such Remarketing and the other changes, if any, in the terms of the Notes
as notified by the Company pursuant to Section 3.2, shall become effective in accordance with this
Article III.

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     (d) If a Remarketing other than the Final Remarketing is not Successful:

     (i) no Notes will be sold in such Remarketing;

     (ii) the interest rate will remain unchanged unless and until it is reset pursuant to a
subsequent Remarketing in accordance with this Article III;

     (iii) the other changes, if any, in the terms of the Notes, as notified by the Company
pursuant to Section 3.2, shall not become effective; and

     (iv) the Company and the Remarketing Agent shall attempt another Remarketing on the
next Remarketing Date.

     (e) Upon the occurrence of a Failed Remarketing:

     (i) no Notes will be sold in such Remarketing and no further attempts at Remarketing
shall be made;

     (ii) the interest rate will remain unchanged and the Notes will continue to bear
interest at the interest rate otherwise in effect, payable on the dates set forth in the
Notes, subject to Section 2.5(b);

     (iii) the other changes, if any, in the terms of the Notes as notified by the Company
pursuant to clauses (a) through (e) of the second sentence of Section 3.2, shall not become
effective;

     (iv) the Stated Maturity Date and early redemption date for the Notes will change in
accordance with clause (f) of the second sentence of Section 3.2, as applicable;

     (v) in the case of Notes corresponding to Normal WITS and Trust Common Securities, such
Notes will be applied in satisfaction of the Trust’s obligations under Stock Purchase
Contracts in accordance with the Collateral Agreement; and

     (vi) in the case of Notes corresponding to Capital WITS, such Notes will be returned to
the Custodial Agent in accordance with the Collateral Agreement.

     Section 3.4 Early Remarketing.

          If an Early Settlement Event occurs prior to the Stock Purchase Date, the Remarketing Dates
shall be the third Business Day prior to February 15, May 15, August 15 or November 15, commencing
on the first such date that is at least 30 days after the occurrence of such Early Settlement
Event, and concluding with the earlier to occur of the fifth such date and a Successful
Remarketing; provided that in the case of an Early Settlement Event of the type described in clause
(v) of the definition of such term, there shall be only one Remarketing Date and the Reset Rate or
Reset Spread shall not be subject to the Fixed Rate Reset Cap or Floating Rate Reset Cap, as the
case may be, and if the Remarketing conducted on such date is not Successful, it shall be a Failed
Remarketing and the Stock Purchase Date shall be the next succeeding March 15, June 15, September
15 or December 15 (or if such day is not a Business Day, the next Business Day).

Supplemental Indenture

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     Section 3.5 Company Announcements.

     (a) If by 4:00 P.M., New York City time, on any Remarketing Date the Remarketing Agent has
found buyers for all of the Notes offered in the Remarketing in accordance with this Article III, a
Successful Remarketing shall be deemed to have occurred. In the event of a Successful Remarketing,
the Company shall issue a press release through Bloomberg Business News or other reasonable means
of distribution stating that such Remarketing was Successful and specifying the Reset Rate or Reset
Spread and shall post such information on its website on the World Wide Web.

     (b) If, by 4:00 P.M., New York City time, on any Remarketing Date the Remarketing Agent is
unable to find buyers for all of the Notes offered in such Remarketing, including any Remarketing
that would qualify as a Final Remarketing, in accordance with this Article III, an Unsuccessful
Remarketing shall be deemed to have occurred. In the event of an Unsuccessful Remarketing, the
Company shall issue a press release through Bloomberg Business News or other reasonable means of
distribution stating that such Remarketing was an Unsuccessful Remarketing, and publish such
information on its website on the World Wide Web.

     Section 3.6 Supplemental Indenture.

     Notwithstanding any provision of the Indenture to the contrary, the Company and the Trustee
may enter into a supplemental indenture without the consent of any Holder of the Notes to reflect
any modifications to the terms of the Notes pursuant to the terms of this Article III and to
provide for the exchange of the Notes for Notes in the form reflecting such modifications and
adopted pursuant to such supplemental indenture.

ARTICLE IV

EXPENSES

     Section 4.1 Expenses.

          In connection with the offering, sale and issuance of the Notes to the Trust and in connection
with the sale of the Trust Securities by the Trust, the Company, in its capacity as borrower with
respect to the Notes, shall:

     (a) pay all costs and expenses relating to the offering, sale and issuance of the Notes,
including commissions to the underwriters payable pursuant to the Underwriting Agreement and
compensation of the Trustee under this Indenture in accordance with the provisions of this
Indenture; and

     (b) be responsible for and shall pay all debts and obligations and all costs and expenses of
the Trust (including, but not limited to, costs and expenses relating to the organization,
maintenance and dissolution of the Trust), the offering, sale and issuance of the Trust Securities
(including commissions to the underwriters in connection therewith), the fees and expenses
(including reasonable counsel fees and expenses) of the Property Trustee, the Delaware Trustee, the
Administrative Trustees, the WITS Registrar, and the Paying Agent, the costs and expenses relating
to the operation of the Trust, including, without limitation, costs and expenses of accountants,
attorneys, statistical or bookkeeping services, expenses for printing and engraving and computing
or accounting equipment, paying agent(s), registrar(s), transfer agent(s), duplicating, travel and
telephone and other telecommunications expenses and costs and expenses incurred in connection with
the acquisition, financing, and disposition of Trust assets and the enforcement by the Property
Trustee of the rights of the Holders of the Notes.

Supplemental Indenture

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          The Company’s obligations under this Section 4.1 shall be for the benefit of, and shall be
enforceable by, any person to whom such debts, obligations and costs are owed (a “Creditor”)
whether or not such Creditor has received notice hereof. Any such Creditor may enforce the
Company’s obligations under this Section 4.1 directly against the Company and the Company
irrevocably waives any right or remedy to require that any such Creditor take any action against
the Trust or any other Person before proceeding against the Company. The Company agrees to execute
such additional agreements as may be necessary or desirable in order to give full effect to the
provisions of this Section 4.1.

ARTICLE V

FORM OF NOTE

     Section 5.1 Form of Notes.

          The Notes are to be substantially in the following form and shall bear any legend required by
Section 2.4 of the Indenture and include the Trustee’s certificate of authentication in the form
required by Section 2.5 of the Indenture:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	No.	 	 	 	 	 	 	 	Principal Amount: $	 	 	 
	 	 	 	 	 	 	 

	Issue Date:	 	 	 	 	 	CUSIP No.:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 

Wachovia Corporation

Remarketable Junior Subordinated Note Due 2042

          Wachovia Corporation, a corporation organized and existing under the laws of North
Carolina (hereinafter called the “Company”, which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , or registered assigns, the principal sum of                      Dollars on March
15, 2042 or such earlier date as may be specified by the Company following a Remarketing (such date
is hereinafter referred to as the “Stated Maturity Date”). The Company further promises to pay
interest on said principal sum from February 1, 2006 or from the most recent interest payment date
(each such date, an “Interest Payment Date”) on which interest has been paid or duly provided for
(subject to deferral as set forth herein), semi-annually in arrears on March 15 and September 15 of
each year and on the Stock Purchase Date in the event of a Failed Remarketing if not otherwise an
Interest Payment Date, at the rate of 5.20% per annum (or after the Remarketing Settlement Date at
such rate per annum as may be established in the Remarketing), until the principal hereof shall
have become due and payable, plus Additional Interest, if any, until the principal hereof is paid
or duly provided for or made available for payment. The amount of interest payable for any period
less than a full Interest Period shall be calculated on the basis of a 360-day year consisting of
twelve 30-day months. In the event that any date on which interest is payable on this Note is not
a Business Day, then a payment of the interest payable on such date will be made on the next
succeeding day that is a Business Day (and without any interest or other payment in respect of any
such delay), in each case with the same force and effect as if made on the date the payment was
originally payable. A “Business Day” shall mean any day other than a Saturday, Sunday, or any
other day on which banking institutions and trust companies in New York, New York, Charlotte, North
Carolina or Wilmington, Delaware, are permitted or required by any applicable law to close. The
interest installment so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest installment, which shall be the date that is the last day of the month immediately
preceding the month in which such Interest Payment

Supplemental Indenture

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Date falls (whether or not a Business Day). Any such interest installment not so punctually
paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record
Date and may either be paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes
not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture.

          If the principal amount hereof or any portion of such principal amount is not paid when due
(whether upon acceleration, upon the date set for payment of the Redemption Price or upon the
Stated Maturity Date) or if interest due hereon (or any portion of such interest), is not paid when
due, then in each such case the overdue amount shall, to the extent permitted by law, bear interest
at the rate then borne by this Note for the applicable Interest Period, compounded at the end of
such Interest Period, which interest shall accrue from the date such overdue amount was originally
due to the date payment of such amount, including interest thereon, has been made or duly provided
for. All such interest shall be payable as set forth in the Indenture.

          So long as no Event of Default has occurred and is continuing, the Company shall have the
right at any time during the term of this Note to defer payment of interest on this Note, at any
time or from time to time, for up to 14 consecutive semi-annual Interest Periods (or the equivalent
thereof, if the Interest Periods are not then semi-annual) with respect to each deferral period
(each an “Extension Period”), during which Extension Periods the Company shall have the right to
make partial payments of interest on any Interest Payment Date, and at the end of which the Company
shall pay all interest then accrued and unpaid (together with Additional Interest thereon to the
extent permitted by applicable law); provided that no Extension Period shall extend beyond the
Stated Maturity of the principal of this Note; provided, further, that during any such Extension
Period, the Company shall not, and shall not permit any Subsidiary of the Company to, (i) declare
or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation
payment with respect to, any shares of the Company’s capital stock, (ii) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem any debt security of
the Company that ranks pari passu in all respects with or junior in interest to the Note (except
for partial payments of interest with respect to this Note) or (iii) make any guarantee payments
with respect to any guarantee by the Company of the debt securities of any Subsidiary of the
Company that by their terms rank pari passu in all respects with or junior in interest to this Note
(other than (a) any repurchase, redemption or other acquisition of shares of the Company’s capital
stock in connection with (1) any employment contract, benefit plan or other similar arrangement
with or for the benefit of any one or more employees, officers, directors, consultants or
independent contractors, (2) the satisfaction of the Company’s obligations pursuant to any contract
entered into in the ordinary course prior to the beginning of the Extension Period, (3) a dividend
reinvestment or stockholder purchase plan, or (4) the issuance of the Company’s capital stock, or
securities convertible into or exercisable for such capital stock, as consideration in an
acquisition transaction entered into prior to the applicable Extension Period; (b) any exchange,
redemption or conversion of any class or series of the Company’s capital stock, or the capital
stock of one of its subsidiaries, for any other class or series of the Company’s capital stock, or
any class or series of the Company’s indebtedness for any class or series of its capital stock; (c)
any purchase of fractional interests in shares of the Company’s capital stock pursuant to the
conversion or exchange provisions of such capital stock or the securities being converted or
exchanged; (d) any declaration of a dividend in connection with any rights plan, or the issuance of
rights, stock or other property under any rights plan, or the redemption or repurchase of rights
pursuant thereto; (e) payments under any Wachovia Guarantee executed for the benefit of the holders
of the WITS; or (f) any dividend in the form of stock, warrants, options or other rights where the
dividend stock or stock issuable upon

Supplemental Indenture

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exercise of such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks equally with or junior to such stock). Prior to the termination of
any such Extension Period, the Company may further extend the interest payment period, provided
that no Extension Period shall exceed 14 consecutive semi-annual Interest Periods (or the
equivalent thereof if this Note is not then bearing interest semi-annually) or extend beyond the
Stated Maturity of the principal of this Note. Upon the termination of any such Extension Period
and upon the payment of all accrued and unpaid interest then due, the Company may elect to begin a
new Extension Period, subject to the above requirements. Subject to the last sentence of this
paragraph, no interest shall be due and payable during an Extension Period except at the end
thereof. The Company shall give the Trustee and any Paying Agent notice of its election to begin
or extend any Extension Period at least ten Business Days prior to the date on which interest on
the Notes would be payable but for the election to begin or extend such Extension Period. The
Trustee or its designee shall give notice of the Company’s election to begin or extend any
Extension Period to the Holders of the Notes and to the Administrative Trustees and to the holders
of the Capital WITS, and if such election is made prior to the Stock Purchase Date or, if earlier,
the Remarketing Settlement Date, to the holders of the Normal WITS. If an Extension Period is in
effect on the Stock Purchase Date and there is a Failed Remarketing, then the Company will pay the
Holder the deferred interest on the Stock Purchase Date in subordinated notes that (i) have a
principal amount equal to the aggregate amount of deferred interest as of the Stock Purchase Date,
(ii) mature on March 15, 2014, (iii) bear interest at a rate per annum equal to the rate of
interest originally in effect on the Notes, (iv) are subordinate and rank junior in right of
payment and upon liquidation to all of the Company’s senior debt on the same basis as the Notes and
(v) are redeemable by the Company at any time prior to their stated maturity and the restrictions
set forth in the first sentence of this paragraph shall remain in effect until the Company has paid
in full all amounts outstanding under such notes.

          Payment of the principal of (and premium, if any) and interest on this Note will be made at
the office or agency of the Company maintained for that purpose in the United States, in such coin
or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts; provided that at the option of the Company payment of interest may be
made (i) by check mailed to the address of the Person entitled thereto as such address shall appear
in the Securities Register or (ii) by wire transfer in immediately available funds at such place
and to such account as may be designated by the Person entitled thereto as specified in the
Securities Register in writing not less than 10 days before the date of the interest payment.

          The indebtedness evidenced by this Note is, to the extent provided in the Indenture,
subordinate and junior in right of payment and upon liquidation to the prior payment in full of all
Senior Debt, and this Note is issued subject to the provisions of the Indenture with respect
thereto; provided that the Company may elect in connection with an Early Remarketing that is not
the first scheduled Remarketing (as described on the reverse hereof) at any time effective on or
after the Remarketing Settlement Date, that the indebtedness evidenced by this Note shall cease to
be subordinate and junior in right of payments to the prior payment in full of all Senior Debt.
Each Holder of this Note, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his behalf to take such actions as may be
necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee
his attorney-in-fact for any and all such purposes. Each Holder hereof, by his acceptance hereof,
waives all notice of the acceptance of the subordination provisions contained herein and in the
Indenture by each holder of Senior Debt, whether now outstanding or hereafter incurred, and waives
reliance by each such holder upon said provisions.

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

Supplemental Indenture

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

          In Witness Whereof, the Company has caused this instrument to be duly executed under
its corporate seal.

	 	 	 	 	 	 	 
	 	 	Wachovia Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	[PRESIDENT OR VICE PRESIDENT]	 	 

Attest:

[SECRETARY OR ASSISTANT SECRETARY]

Supplemental Indenture

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(FORM OF REVERSE OF NOTE)

          This Note is one of a duly authorized issue of securities of the Company (herein called the
“Notes”), issued and to be issued in one or more series under an Indenture, dated as of February 1,
2006 (herein called the “Base Indenture”), between the Company and U.S. Bank National Association,
as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Base
Indenture), as amended and supplemented by the First Supplemental Indenture, dated as of February
1, 2006, between the Company and the Trustee (the “First Supplemental Indenture” and, together with
the Indenture, the “Indenture”), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Trustee, the Company and the Holders of the Notes, and of the
terms upon which the Notes are, and are to be, authenticated and delivered. By terms of the
Indenture, the Securities are issuable in series that may vary as to amount, date of maturity, rate
of interest, rank and in other respects provided in the Indenture.

          All terms used in this Note that are defined in the Indenture or in the Amended and Restated
Trust Agreement, dated as of February 1, 2006, as amended (the “Trust Agreement”), for Wachovia
Capital Trust III among Wachovia Corporation, as Depositor, and the Trustees named therein, shall
have the meanings assigned to them in the Indenture or the Trust Agreement, as the case may be.

          The Company may at any time, at its option, on or after March 15, 2015, and subject to the
terms and conditions of Article XI of the Base Indenture, redeem this Note in whole at any time or
in part from time to time, without premium or penalty, at a redemption price equal to 100% of the
principal amount hereof plus accrued and unpaid interest including Additional Interest, if any to
the Redemption Date.

          No sinking fund is provided for the Notes.

          This Note shall be remarketed as provided in the Indenture. In connection therewith, the
Company may change the Stated Maturity Date, the date after which this Note may be redeemed in
whole or in part prior to the Stated Maturity Date at the option of the Company, the rate of
interest payable on this Note, the Interest Payment Dates, the manner of calculating interest on
this Note and certain other provisions of the Notes, all as set forth in the Indenture and without
the consent of any Holder of this Note.

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

          The Indenture permits, with certain exceptions as therein provided, the Company and the
Trustee at any time to enter into a supplemental indenture or indentures for the purpose of
modifying in any manner the rights and obligations of the Company and of the Holders of the Notes,
with the consent of the Holders of not less than a majority in principal amount of the Outstanding
Notes to be affected by such supplemental indenture. The Indenture also contains provisions
permitting Holders of specified percentages in principal amount of the Notes at the time
Outstanding, on behalf of the Holders of all Notes, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.

Supplemental Indenture

-19-

 

          As provided in and subject to the provisions of the Indenture, if an Event of Default with
respect to the Notes at the time Outstanding occurs and is continuing, then and in every such case
the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Notes may
declare the entire principal amount and all accrued but unpaid interest of all the Notes to be due
and payable immediately, by a notice in writing to the Company (and to the Trustee if given by
Holders), provided that, in the case of Notes issued to and held by Wachovia Capital Trust III, or
any trustee thereof or agent therefor, if upon an Event of Default, the Trustee or the Holders of
not less than 25% in principal amount of the Outstanding Notes fails to declare the entire
principal and all accrued but unpaid interest of all the Notes to be immediately due and payable,
the holders of at least 25% in aggregate liquidation amount of the Capital WITS and, if such
declaration occurs prior to the Stock Purchase Date or, if earlier, the Remarketing Settlement
Date, the holders of the Normal WITS then outstanding, acting together as a single class, shall
have such right by a notice in writing to the Company and the Trustee. Upon any such declaration,
such amount of the principal of and the accrued but unpaid interest on all the Notes shall become
immediately due and payable, provided that the payment of principal and interest on the Notes shall
remain subordinated to the extent provided in Article XIII of the Base Indenture except to the
extent otherwise determined in connection with an Early Remarketing. Upon payment (i) of the
amount of principal so declared due and payable and (ii) of interest on any overdue principal and
overdue interest (in each case to the extent that the payment of such interest shall be legally
enforceable), all of the Company’s obligations in respect of the payment of the principal of and
interest (including Additional Interest), if any, on this Note shall terminate.

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

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

          Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee shall treat the Person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

          The Notes are issuable only in registered form without coupons in minimum denominations of
$1,000 and any integral multiples of $1,000 in excess thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate
principal amount of Notes of a different authorized denomination, as requested by the Holder
surrendering the same.

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

Supplemental Indenture

-20-

 

          The Indenture and this Note shall be governed by and construed in accordance with the laws of
the State of New York.

Supplemental Indenture

-21-

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Note to:

 

 

 

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

 

 

 

(Insert address and zip code of assignee)

agent to transfer this Note on the books of the Securities Registrar. The agent may substitute
another to act for him or her.

	 	 	 
	Dated:

	 	Signature:

Signature Guarantee:

(Sign exactly as your name appears on the other side of this Note)

          Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Securities Registrar, which requirements include membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Securities Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

Supplemental Indenture

-22-

 

ARTICLE VI

ORIGINAL ISSUE OF NOTES

Section 6.1 Original Issue of Notes.

          Notes in the aggregate principal amount of $2,501,000,000 may, upon execution of this First
Supplemental Indenture, be executed by the Company and delivered to the Trustee or an
Authenticating Agent for authentication, and the Trustee or an Authenticating Agent shall thereupon
authenticate and deliver said Notes in accordance with a Company Order.

Section 6.2 Calculation of Original Issue Discount.

          If during any calendar year any original issue discount shall have accrued on the Notes, the
Company shall file with each Paying Agent (including the Trustee if it is a Paying Agent) promptly
at the end of each calendar year (i) a written notice specifying the amount of original issue
discount (including daily rates and accrual periods) accrued on Outstanding Securities as of the
end of such year and (ii) such other specific information relating to such original issue discount
as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.

ARTICLE VII

SUBORDINATION

     Section 7.1 Company Election to End Subordination.

          The Company may elect, at any time effective on or after the Remarketing Settlement Date in
connection with an Early Remarketing of the Notes that is not the first scheduled Remarketing, that
its obligations under the Notes shall cease to be subordinated obligations, in which case the
provisions of Article XIII of the Indenture and, if the Company so elects, Section 3.11 of the
Indenture, shall thereafter no longer apply to the Notes. The Company shall give the Trustee and
each Paying Agent notice of any such election not later than the effective time, and shall promptly
issue a press release through Bloomberg Business News or other reasonable means of distribution.

     Section 7.2 Compliance with Federal Reserve Rules.

          The Company shall not incur any additional indebtedness for borrowed money that ranks pari
passu with or junior to the Notes (if then subject to Article XIII of the Indenture), except in
compliance with applicable regulation and guidelines of the Federal Reserve.

ARTICLE VIII

MISCELLANEOUS

     Section 8.1 Effectiveness.

          This First Supplemental Indenture will become effective upon its execution and delivery.

Supplemental Indenture

-23-

 

     Section 8.2 Successors and Assigns.

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

     Section 8.3 Further Assurances.

          The Company will, at its own cost and expense, execute and deliver any documents or
agreements, and take any other actions that the Trustee or its counsel may from time to time
request in order to assure the Trustee of the benefits of the rights granted to the Trustee under
the Indenture, as supplemented and amended by this First Supplemental Indenture.

     Section 8.4 Effect of Recitals.

          The recitals contained herein and in the Notes, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Notes. Neither the
Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company
of the Notes or the proceeds thereof.

     Section 8.5 Ratification of Indenture.

          The Indenture as supplemented by this First Supplemental Indenture, is in all respects
ratified and confirmed, and this First Supplemental Indenture shall be deemed part of the Indenture
in the manner and to the extent herein and therein provided.

     Section 8.6 Governing Law.

          This First Supplemental Indenture and the Notes shall be governed by and construed in
accordance with the laws of the State of New York.

* * * *

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

Supplemental Indenture

-24-

 

          In Witness Whereof, the parties hereto have caused this First Supplemental Indenture
to be duly executed, and their respective corporate seals to be hereunto affixed and attested, all
as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Wachovia Corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ James F. Burr	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Ross E. Jeffries, Jr.	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S. Bank National Association,	 	 
	 	 	 	 	 	 	     as Trustee	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Paul D. Allen	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Paul D. Allen	 	 
	 

	 	 	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Allison D.B. Nadeau	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Supplemental IndentureEX-4.3

 

Exhibit 4.3

 

Stock Purchase Contract Agreement

between

WACHOVIA CORPORATION

and

WACHOVIA CAPITAL TRUST III,

acting through U.S. Bank National Association,

as Property Trustee

Dated as of February 1, 2006

 

 

 

TABLE
OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	 	 
	 
	 	 	 	 
	Section 1.1 Definitions
	 	 	1	 
	Section 1.2 Form of Documents Delivered to Property Trustee
	 	 	6	 
	Section 1.3 Notices
	 	 	6	 
	Section 1.4 Effect of Headings and Table of Contents
	 	 	7	 
	Section 1.5 Successors and Assigns
	 	 	7	 
	Section 1.6 Separability Clause
	 	 	7	 
	Section 1.7 Benefits of Agreement
	 	 	7	 
	Section 1.8 Governing Law; Submission to Jurisdiction
	 	 	7	 
	Section 1.9 Legal Holidays
	 	 	7	 
	Section 1.10 No Waiver
	 	 	8	 
	Section 1.11 No Consent to Assumption
	 	 	8	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	THE STOCK PURCHASE CONTRACTS
	 	 	 	 
	 
	 	 	 	 
	Section 2.1 Issuance of Stock Purchase Contracts; Transferability; Assignment; Amendment
	 	 	8	 
	Section 2.2 Purchase of Preferred Stock; Payment of Purchase Price
	 	 	9	 
	Section 2.3 Issuance of Preferred Stock
	 	 	9	 
	Section 2.4 Termination Event; Notice
	 	 	9	 
	Section 2.5 Charges and Taxes
	 	 	10	 
	Section 2.6 Contract Payments
	 	 	10	 
	Section 2.7 Deferral of Contract Payments
	 	 	13	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	REMEDIES
	 	 	 	 
	 
	 	 	 	 
	Section 3.1 Unconditional Right of the Property Trustee to Receive Contract Payments and
to Purchase Shares of Preferred Stock; Direct Action by Holders of Normal WITS or
Stripped WITS
	 	 	15	 
	Section 3.2 Restoration of Rights and Remedies
	 	 	15	 
	Section 3.3 Rights and Remedies Cumulative
	 	 	15	 
	Section 3.4 Delay or Omission Not Waiver
	 	 	15	 
	Section 3.5 Waiver of Stay or Extension Laws
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IV 
	 	 	 	 
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
	 	 	 	 
	 
	 	 	 	 
	Section 4.1 Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except
under Certain Conditions
	 	 	16	 
	Section 4.2 Rights and Duties of Successor Corporation
	 	 	16	 
	Section 4.3 Officers’ Certificate and Opinion of Counsel Given to Property Trustee
	 	 	17	 

Stock Purchase Contract Agreement

 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE V 
	 	 	 	 
	COVENANTS 
	 	 	 	 
	 
	 	 	 	 
	Section 5.1 Performance under Stock Purchase Contracts
	 	 	17	 
	Section 5.2 Company to Reserve Preferred Stock
	 	 	17	 
	Section 5.3 Covenants as to Preferred Stock
	 	 	17	 
	Section 5.4 Statements of Officers of the Company as to Default
	 	 	17	 

Stock Purchase Contract Agreement

-ii-

 

          Stock Purchase Contract Agreement, dated as of February 1, 2006, between
Wachovia Corporation, a North Carolina corporation (the “Company”), having its principal
office at 301 South College Street, Charlotte, North Carolina 28288, and Wachovia Capital Trust
III, a Delaware statutory trust (the “Trust”), acting through U.S. Bank National
Association, a national banking association, not in its individual capacity but solely as
Property Trustee of the Trust (the “Property Trustee”).

Recitals of the Company

          The Company has duly authorized the execution and delivery of this Agreement.

          All things necessary to make the Stock Purchase Contracts (as defined herein) the valid
obligations of the Company, and to constitute these presents a valid agreement of the Company, in
accordance with its terms, have been done.

          Now therefore, this Stock Purchase Contract Agreement witnesseth:  For and in
consideration of the agreements and obligations set forth herein and for other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, it is mutually agreed as
follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.1 Definitions.

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

     (a) The terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular.

     (b) All accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles, and the term “generally
accepted accounting principles” with respect to any computation required or permitted
hereunder shall mean such accounting principles that are generally accepted at the date or
time of such computation; provided that when two or more principles are so generally
accepted, it shall mean that set of principles consistent with those in use by the Company.

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

     (d) Unless the context otherwise requires, any references to an “Article,” a “Section”
or another subdivision refers to an Article, a Section or another subdivision, as the case
may be, of this Stock Purchase Contract Agreement.

          “Agreement” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more agreements supplemental hereto entered into pursuant to the
applicable provisions hereof.

Stock Purchase Contract Agreement

 

 

          “Bankruptcy Code” means Title 11 of the United States Code, or any other law of the United
States that from time to time provides a uniform system of bankruptcy laws.

          “Base Indenture” means the Indenture, dated as of February 1, 2006, between the Company and
the Trustee.

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

          “Business Day” means any day other than a Saturday, Sunday or any other day on which banking
institutions and trust companies in New York, New York, Charlotte, North Carolina or Wilmington,
Delaware are permitted or required by law or executive order to close.

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Collateral” has the meaning specified in the Collateral Agreement.

          “Collateral Agent” means JPMorgan Chase Bank, National Association, as Collateral Agent under
the Collateral Agreement until a successor Collateral Agent shall have become such pursuant to the
applicable provisions of the Collateral Agreement, and thereafter “Collateral Agent” shall mean the
Person who is then the Collateral Agent thereunder.

          “Collateral Agreement” means the Collateral Agreement, dated as of the date hereof, among the
Company, the Trust (acting through the Property Trustee), the Collateral Agent, the Custodial
Agent, the Securities Intermediary and the Securities Registrar, as amended from time to time.

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

          “Contract Payments” means the payments payable by the Company on the Payment Dates in respect
of each Stock Purchase Contract, at the rate of 0.60% per annum of the Stated Amount of each Stock
Purchase Contract.

          “Custodial Agent” means JPMorgan Chase Bank, National Association, as Custodial Agent under
the Collateral Agreement until a successor Custodial Agent shall have become such pursuant to the
applicable provisions of the Collateral Agreement, and thereafter “Custodial Agent” shall mean the
Person who is then the Custodial Agent thereunder.

          “Deferred Contract Payments” has the meaning specified in Section 2.7(a).

          “Early Settlement Event” has the meaning specified in the First Supplemental Indenture.

          “Failed Remarketing” has the meaning specified in the First Supplemental Indenture.

          “Federal Reserve” means the Board of Governors of the Federal Reserve System, as from time to
time constituted, or if at any time after the execution of this Agreement the Federal Reserve is
not existing and performing the duties now assigned to it, then the bodies performing such duties
at such time, or the Federal Reserve Bank of Richmond, or any successor Federal Reserve Bank having
primary jurisdiction over the Company.

Stock Purchase Contract Agreement

-2-

 

          “First Supplemental Indenture” means the First Supplemental Indenture to the Indenture, dated
as of the date hereof, between the Company and the Trustee, as amended or supplemented from time to
time.

          “Guarantee Agreement” means the Guarantee Agreement between the Company, as Guarantor and U.S.
Bank National Association, as Guarantee Trustee named thereunder, dated as of the date hereof.

          “Holder” means a Holder (as such term is defined in the Trust Agreement) of Normal WITS or
Stripped WITS.

          “Indenture” means the Base Indenture and the First Supplemental Indenture, taken together, as
amended or supplemented from time to time with respect to the Notes.

          “Normal WITS” has the meaning specified in the Trust Agreement.

          “Notes” has the meaning specified in the Trust Agreement.

          “Officers’ Certificate” means a certificate signed by the Chairman of the Board of Directors,
a Vice Chairman of the Board of Directors, the President or a Vice President, and by the Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and delivered to
the Property Trustee.

          “Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company
(and who may be an employee of the Company), and who shall be reasonably acceptable to the Property
Trustee. An Opinion of Counsel may rely on certificates as to matters of fact.

          “Paying Agent” has the meaning specified in the Trust Agreement.

          “Payment Date” means (i) each March 15 and September 15 of each year occurring prior to the
Stock Purchase Date, commencing on March 15, 2006 and (ii) the Stock Purchase Date.

          “Person” means a legal person, including any individual, corporation, estate, partnership,
joint venture, association, joint-stock company, limited liability company, trust, unincorporated
organization or government or any agency or political subdivision thereof or any other entity of
whatever nature.

          “Pledged Notes” has the meaning specified in the Collateral Agreement.

          “Pledged Securities” means the Pledged Notes and the Pledged Treasury Securities.

          “Pledged Treasury Securities” has the meaning specified in the Collateral Agreement.

          “Preferred Stock” means the Non-Cumulative Perpetual Class A Preferred Stock, Series I,
$100,000 liquidation preference per share, of the Company.

          “Proceeds” has the meaning specified in the Collateral Agreement.

          “Property Trustee” means U.S. Bank National Association, not in its individual capacity but
solely as Property Trustee under the Trust Agreement until a successor Property Trustee shall have
become such pursuant to the applicable provisions of the Trust Agreement, and thereafter “Property
Trustee” shall mean the Person who is then Property Trustee thereunder.

Stock Purchase Contract Agreement

-3-

 

          “Qualifying Treasury Securities” has the meaning specified in the Trust Agreement.

          “Remarketing” means a remarketing of Notes pursuant to Article III of the First Supplemental
Indenture.

          “Remarketing Agent” has the meaning specified in the Trust Agreement.

          “Remarketing Agreement” means the Remarketing Agreement, dated as of the date hereof, between
the Company and Wachovia Securities, LLC, as Remarketing Agent.

          “Remarketing Dates” mean the third Business Day prior to each of February 15, 2011, May 15,
2011, August 15, 2011, November 15, 2011 and February 15, 2012, until the settlement of a
Successful Remarketing; provided that following the occurrence of an Early Settlement Event,
Remarketing Dates mean such earlier dates as determined pursuant to Section 3.4 of the First
Supplemental Indenture.

          “Remarketing Settlement Date” means the third Business Day after the Remarketing Date of a
Successful Remarketing.

          “Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each
case as amended from time to time, and the rules and regulations promulgated thereunder.

          “Securities Intermediary” means JPMorgan Chase Bank, National Association, as Securities
Intermediary under the Collateral Agreement until a successor Securities Intermediary shall have
become such pursuant to the applicable provisions of the Collateral Agreement, and thereafter
“Securities Intermediary” shall mean such successor or any subsequent successor who is appointed
pursuant to the Collateral Agreement.

          “Securities Registrar” means JPMorgan Chase Bank, National Association, as Securities
Registrar under the Collateral Agreement until a successor Securities Registrar shall have become
such pursuant to the applicable provisions of the Collateral Agreement, and thereafter “Securities
Registrar” shall mean such successor or any subsequent successor who is appointed pursuant to the
Collateral Agreement.

          “Senior Debt” has the meaning specified in the Base Indenture.

          “Stated Amount” means, with respect to any one Stock Purchase Contract, $100,000.

          “Stock Purchase Contract” means a contract having a Stated Amount of $100,000 obligating (i)
the Company to sell, and the Trust (acting through the Property Trustee) to purchase, one share of
Preferred Stock for $100,000 on the Stock Purchase Date and (ii) the Company to pay Contract
Payments to the Trust, in each case on the terms and subject to the conditions set forth in Article
II and Article V.

          “Stock Purchase Date” means the first to occur of any March 15, June 15, September 15 or
December 15, or if any such day is not a Business Day, the next Business Day, after (i) the
Remarketing Settlement Date or (ii) the Remarketing Date of a Failed Remarketing.

          “Stripped WITS” has the meaning specified in the Trust Agreement.

Stock Purchase Contract Agreement

-4-

 

          “Subordinated Notes” means the subordinated notes of the Company that may be issued to the
Property Trustee as provided in Section 2.7(c).

          “Successful” has the meaning specified in the First Supplemental Indenture.

          “Termination Date” means the date, if any, on which a Termination Event occurs.

          “Termination Event” means the occurrence of any of the following events at any time on or
prior to the Stock Purchase Date:

          (i) a judgment, decree or court order shall have been entered granting relief under the
Bankruptcy Code, adjudicating the Company to be insolvent, or approving as properly filed a
petition seeking reorganization or liquidation of the Company or any other similar applicable
federal or state law and if such judgment, decree or order shall have been entered more than 60
days prior to the Stock Purchase Date, such decree or order shall have continued undischarged and
unstayed for a period of 60 days;

          (ii) a judgment, decree or court order for the appointment of a receiver or liquidator or
trustee or assignee in bankruptcy or insolvency of the Company or of its property, or for the
termination or liquidation of its affairs, shall have been entered and if such judgment, decree or
order shall have been entered more than 60 days prior to the Stock Purchase Date, such judgment,
decree or order shall have continued undischarged and unstayed for a period of 60 days; or

          (iii) the Company shall file a petition for relief under the Bankruptcy Code, or shall consent
to the filing of a bankruptcy proceeding against it, or shall file a petition or answer or consent
seeking reorganization or liquidation under the Bankruptcy Code or any other similar applicable
federal or state law, or shall consent to the filing of any such petition, or shall consent to the
appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of it or
of its property, or shall make an assignment for the benefit of creditors, or shall admit in
writing its inability to pay its debts generally as they become due.

          “Trust” means the Person named as the “Trust” in the first paragraph of this Agreement.

          “Trust Agreement” means the Amended and Restated Trust Agreement, dated as of the date hereof,
among the Company, as depositor, the Property Trustee, the Delaware Trustee and the Administrative
Trustees (each as named therein) and the several Holders (as defined therein).

          “Trustee” means U.S. Bank National Association, a national banking association, solely in its
capacity as trustee pursuant to the Indenture and not in its individual capacity, or its successor
in interest in such capacity, or any successor trustee appointed as provided in the Indenture.

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

          “Wachovia Deposit” means a deposit with Wachovia Bank, N.A. to be made on the Remarketing
Settlement Date and payable on the Stock Purchase Date, with interest at the rate of 4.90% per
annum from and including the date of deposit to but excluding the date of payment, calculated on
the basis of the actual number of days elapsed and a year of 365 days, established in the name of
the Collateral Agent pursuant to an agreement naming the Collateral Agent as customer and providing
that the bank’s jurisdiction for purposes of Article 9 of the Uniform Commercial Code is New York.

Stock Purchase Contract Agreement

-5-

 

          “WITS” has the meaning specified in the Trust Agreement.

Section 1.2 Form of Documents Delivered to Property Trustee.

          (a) In any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or covered by only
one document, but one such Person may certify or give an opinion with respect to some matters and
one or more other such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents. Any certificate or opinion of an officer
of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable
care should know, that the certificate or opinion or representations with respect to the matters
upon which its certificate or opinion is based are erroneous. Any such certificate or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or representations by, an officer or officers of the Company unless such counsel knows, or in the
exercise of reasonable care should know, that the certificate or opinion or representations with
respect to such matters are erroneous.

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

Section 1.3 Notices.

          Any notice or communication is duly given if in writing and delivered in Person or mailed by
first-class mail (registered or certified, return receipt requested), telecopier (with receipt
confirmed) or overnight air courier guaranteeing next day delivery, to the others’ address;
provided that notice shall be deemed given to the Property Trustee only upon receipt thereof:

	 	 	 	 	 
	 	 	If to the Trust or the Property Trustee:
	 
	 	 	 	 
	 

	 	 	 	U.S. Bank National Association,
	 

	 	 	 	          as Property Trustee of
	 

	 	 	 	          Wachovia Capital Trust III
	 

	 	 	 	300 Delaware Avenue, 9th Floor
	 

	 	 	 	Wilmington, DE 19801
	 

	 	 	 	Attention: Corporate Trust Services Division
	 

	 	 	 	Facsimile: 617-603-6683
	 
	 	 	 	 
	 	 	If to the Company:
	 
	 	 	 	 
	 

	 	 	 	Wachovia Corporation
	 

	 	 	 	301 South College Street
	 

	 	 	 	Charlotte, North Carolina 28288
	 

	 	 	 	Attention: General Counsel
	 

	 	 	 	Facsimile: 704-374-3425
	 
	 	 	 	 
	 	 	If to the Collateral Agent:
	 
	 	 	 	 
	 	 	JPMorgan Chase Bank, National Association,

Stock Purchase Contract Agreement

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	 	 	 	          as Collateral Agent
	 

	 	 	 	4 New York Plaza, Floor 15
	 

	 	 	 	New York, New York 10004
	 

	 	 	 	Attention: Worldwide Securities Services
	 

	 	 	 	Facsimile: (212) 623-6167

Section 1.4 Effect of Headings and Table of Contents.

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

Section 1.5 Successors and Assigns.

          All covenants and agreements in this Agreement by the Company and the Trust shall bind their
respective successors and assigns, whether so expressed or not.

Section 1.6 Separability Clause.

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

Section 1.7 Benefits of Agreement.

          Nothing contained in this Agreement, express or implied, shall give to any Person, other than
the parties hereto and their successors hereunder and, to the extent provided hereby, the holders
of Senior Debt and any Paying Agent, any benefits or any legal or equitable right, remedy or claim
under this Agreement.

Section 1.8 Governing Law; Submission to Jurisdiction.

          This Agreement shall be governed by and construed in accordance with the laws of the State of
New York. The Company and the Trust hereby submit to the nonexclusive jurisdiction of the United
States District Court for the Southern District of New York and of any New York state court sitting
in New York County for the purposes of all legal proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby. The Company and the Trust irrevocably waive, to
the fullest extent permitted by applicable law, any objection that they may now or hereafter have
to the laying of the venue of any such proceeding brought in such a court and any claim that any
such proceeding brought in such a court has been brought in an inconvenient forum.

Section 1.9 Legal Holidays.

          (a) In any case where any Payment Date shall not be a Business Day (notwithstanding any other
provision of this Agreement), Contract Payments or other distributions shall not be paid on such
date, but Contract Payments or such other distributions shall be paid on the next succeeding
Business Day with the same force and effect as if made on such Payment Date. No interest shall
accrue or be payable by the Company or to the Property Trustee (on behalf of the Trust) for the
period from and after any such Payment Date.

          (b) In any case where the Stock Purchase Date shall not be a Business Day (notwithstanding any
other provision of this Agreement), the Stock Purchase Contracts shall not be

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performed and shall not be effected on such date, but the Stock Purchase Contracts shall be
performed on the next succeeding Business Day with the same force and effect as if made on such
Stock Purchase Date.

Section 1.10 No Waiver.

          No failure on the part of the Company, the Property Trustee, the Collateral Agent, the
Securities Intermediary or any of their respective agents to exercise, and no course of dealing
with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise by the Company, the Property Trustee,
the Collateral Agent, the Securities Intermediary or any of their respective agents of any right,
power or remedy hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. The remedies herein are cumulative and are not exclusive of any
remedies provided by law.

Section 1.11 No Consent to Assumption.

          The Property Trustee for and on behalf of the Trust hereby expressly withholds any consent to
the assumption under Section 365 of the Bankruptcy Code or otherwise, of the Stock Purchase
Contract by the Company or its trustee, receiver, liquidator or a Person performing similar
functions in the event that the Company becomes the debtor under the Bankruptcy Code or subject to
other similar state or Federal law providing for reorganization or liquidation.

ARTICLE II

THE STOCK PURCHASE CONTRACTS

Section 2.1 Issuance of Stock Purchase Contracts; Transferability; Assignment; Amendment.

          (a) Contemporaneously with the execution and delivery of this Agreement, the Company hereby
issues 25,010 Stock Purchase Contracts having the terms and conditions set forth herein to the
Trust (acting through the Property Trustee), which by its execution and delivery of this Agreement
is entering into and agreeing to be bound by the Stock Purchase Contracts. No certificates will be
issued to evidence the Stock Purchase Contracts.

          (b) To the fullest extent permitted by law, other than a transfer in connection with a merger,
consolidation, amalgamation or replacement of the Trust or any conveyance, transfer or lease by the
Trust of its properties and assets substantially as an entirety to, and the assumption by, a
successor entity pursuant to Section 9.5 of the Trust Agreement, any attempted transfer of the
Stock Purchase Contracts shall be void.

          (c) To the fullest extent permitted by law, any assignment by the Trust of its rights
hereunder, other than an assignment of this Agreement in connection with a merger, consolidation,
amalgamation or replacement of the Trust or any conveyance, transfer or lease by the Trust of its
properties and assets substantially as an entirety to, and the assumption by, a successor entity
pursuant to Section 9.5 of the Trust Agreement, shall be void.

          (d) No amendment, modification or waiver of any provision of this Agreement shall be effective
against either party hereto unless it is duly authorized by resolution of the Board of Directors of
the Company and permitted under Section 6.1 of the Trust Agreement.

Stock Purchase Contract Agreement

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Section 2.2 Purchase of Preferred Stock; Payment of Purchase Price.

          (a) Each Stock Purchase Contract shall obligate the Trust (acting through the Property
Trustee) to purchase, and the Company to sell, on the Stock Purchase Date at a price equal to
$100,000, one share of Preferred Stock, unless a Termination Event shall have occurred.

          (b) If there has been a Successful Remarketing, the Trust will satisfy its obligations under
Section 2.2(a) to pay the purchase price in respect of the Stock Purchase Contracts out of (i) the
Proceeds at maturity of the Pledged Treasury Securities and (ii) to the extent of the excess of the
Purchase Price over the amount of the Proceeds at maturity of the Pledged Treasury Securities, the
Wachovia Deposit; provided that in the event that a receiver has been appointed for the purpose of
liquidating or winding up the affairs of Wachovia Bank, National Association while Wachovia Bank,
National Association is holding the Wachovia Deposit, in lieu of payment of such amount of the
Wachovia Deposit the Trust shall cause the Collateral Agent to assign its rights in the Wachovia
Deposit to the Company on the Stock Purchase Date to the extent of such amount in full satisfaction
of the Trust’s obligation to pay such amount pursuant to this clause (ii).

          (c) If there is a Failed Remarketing, the Collateral Agent for the benefit of the Company
reserves all of its rights as a secured party with respect to the Notes and, subject to applicable
law and Section 2.2(d), may, among other things, (i) retain such Notes or their Proceeds in full
satisfaction of the Trust’s obligations under the Stock Purchase Contracts or (ii) sell such Notes
in one or more public or private sales or otherwise, in order to satisfy the Trust’s obligations
under Section 2.2(a) to pay the purchase price in respect of the Stock Purchase Contracts to the
extent not satisfied out of the Proceeds at maturity of the Pledged Treasury Securities.

          (d) The obligations of the Trust to pay the purchase price in respect of the Stock Purchase
Contracts are non-recourse obligations and are payable solely out of the Proceeds of any Collateral
pledged to secure the obligations of the Trust or assignment of the Wachovia Deposit as set forth
in this Section 2.2, and in no event will the Property Trustee be liable for any deficiency between
the Proceeds of the disposition of Collateral and the purchase price in respect of the Stock
Purchase Contracts.

          (e) The Company shall not be obligated to cause the issuance of any share of Preferred Stock
in respect of a Stock Purchase Contract or deliver any certificates therefor to the Property
Trustee unless the Company shall have received payment for the share of Preferred Stock to be
purchased thereunder in the manner herein set forth.

Section 2.3 Issuance of Preferred Stock.

          Unless a Termination Event shall have occurred, on the Stock Purchase Date upon receipt of the
aggregate purchase price payable on all Stock Purchase Contracts, the Company shall cause to be
issued and deposited with the Property Trustee (or its nominee), one or more certificates
representing newly issued shares of Preferred Stock registered in the name of the Property Trustee
(or its nominee) as custodian for the Trust to which the Trust is entitled hereunder.

Section 2.4 Termination Event; Notice.

          (a) The Stock Purchase Contracts and all obligations and rights of the Company and the Trust
(including the Property Trustee on behalf of the Trust) thereunder, including, without limitation,
the right of the Trust to receive and the obligation of the Company to pay any Contract Payments
(including any accrued and unpaid Contract Payments), and the rights and obligations of the Trust
to

Stock Purchase Contract Agreement

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purchase shares of Preferred Stock, shall immediately and automatically terminate, without the
necessity of any notice or action by the Trust, the Property Trustee or the Company, if a
Termination Event shall have occurred on or prior to the Stock Purchase Date.

          (b) Upon the occurrence of a Termination Event, the Company shall promptly but in no event
later than two Business Days thereafter give written notice to the Property Trustee and the
Collateral Agent of such event.

Section 2.5 Charges and Taxes.

          The Company will pay all stock transfer and similar taxes attributable to the initial issuance
and delivery of the shares of Preferred Stock pursuant to the Stock Purchase Contracts; provided
that the Company shall not be required to pay any such tax or taxes that may be payable in respect
of any issuance of a share of Preferred Stock in a name other than in the name of the Property
Trustee or its nominee, as custodian for the Trust, and the Company shall not be required to issue
or deliver such share certificates unless or until the Person or Persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

Section 2.6 Contract Payments.

          (a) Subject to Section 2.7, the Company shall pay, in arrears on each Payment Date, the
Contract Payments payable in respect of each Stock Purchase Contract
to the Payment Account (as defined in the Trust Agreement). The Contract Payments will be payable by wire transfer to the account designated
by the Property Trustee by a prior written notice to the Company. The Contract Payments will
accrue from and including February 1, 2006 or from and including the most recent Payment Date on
which Contract Payments have been paid or duly provided for (subject to deferral as set forth in
Section 2.7) to but excluding the next succeeding Payment Date. Contract Payments will be
calculated on the basis of a 360-day year consisting of twelve 30-day months.

          (b) The Company’s obligations with respect to Contract Payments, if any, will be subordinated
and junior in right of payment to the Company’s obligations under any Senior Debt to the extent and
in the manner set forth in Sections 2.6(b) through (l).

          (c) In the event of (A) any insolvency, bankruptcy, receivership, liquidation, reorganization,
readjustment, composition or other similar proceeding relating to the Company, its creditors or its
property, (B) any proceeding for the liquidation, dissolution or other winding up of the Company,
voluntary or involuntary, whether or not involving insolvency or bankruptcy proceedings, (C) any
assignment by the Company for the benefit of creditors, or (D) any other marshalling of the assets
of the Company:

     (i) all Senior Debt (including any interest thereon accruing after the commencement of
any such proceedings) shall first be paid in full before any payment or distribution,
whether in cash, securities or other property, shall be made to the Property Trustee in
respect of Contract Payments;

     (ii) any payment or distribution, whether in cash, securities or other property that
would otherwise (but for these subordination provisions) be payable or deliverable in
respect of Contract Payments shall be paid or delivered directly to the holders of Senior
Debt in accordance with the priorities then existing among such holders until all Senior
Debt (including any interest thereon accruing after the commencement of any such
proceedings) shall have been paid in full;

Stock Purchase Contract Agreement

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     (iii) after payment in full of all sums owing with respect to Senior Debt, the Property
Trustee, together with the holders of any obligations of the Company ranking on a parity
with the Contract Payments, shall be entitled to be paid from the remaining assets of the
Company the amounts at the time due and owing on account of unpaid Contract Payments and
interest thereon and such other obligations before any payment or other distribution,
whether in cash, securities or other property, shall be made on account of any capital stock
or any obligations of the Company ranking junior to the Company’s obligations to make
Contract Payments under the Stock Purchase Contracts and such other obligations; and

     (iv) in the event that, notwithstanding the foregoing, any payment or distribution of
any character or any security, whether in cash, securities or other property, shall be
received by the Property Trustee or the Trust in contravention of any of the terms hereof
such payment or distribution or security shall be received in trust for the benefit of, and
shall be paid over or delivered and transferred to, the holders of the Senior Debt at the
time outstanding in accordance with the priorities then existing among such holders for
application to the payment of all Senior Debt remaining unpaid, to the extent necessary to
pay all such Senior Debt in full. In the event of the failure of the Property Trustee or
the Trust to endorse or assign any such payment, distribution or security, each holder of
Senior Debt is hereby irrevocably authorized to endorse or assign the same.

          (d) For purposes of Sections 2.6(b) through (l), the words “cash, securities or other
property” shall not be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other Person provided for by a plan of
reorganization or readjustment, the payment of which is subordinated at least to the extent
provided in Sections 2.6(b) through (l) with respect to such Contract Payments on the Stock
Purchase Contracts to the payment of all Senior Debt that may at the time be outstanding; provided
that (i) the indebtedness or guarantee of indebtedness, as the case may be, that constitutes Senior
Debt is assumed by the Person, if any, resulting from any such reorganization or readjustment, and
(ii) the rights of the holders of the Senior Debt are not, without the consent of each such holder
adversely affected thereby, altered by such reorganization or readjustment.

          (e) Any failure by the Company to make any payment on or perform any other obligation under
Senior Debt, other than any indebtedness incurred by the Company or assumed or guaranteed, directly
or indirectly, by the Company for money borrowed (or any deferral, renewal, extension or refunding
thereof) or any indebtedness or obligation as to which the provisions of Sections 2.6(b) through
(l) shall have been waived by the Company in the instrument or instruments by which the Company
incurred, assumed, guaranteed or otherwise created such indebtedness or obligation, shall not be
deemed a default or event of default if (i) the Company shall be disputing its obligation to make
such payment or perform such obligation and (ii) either (A) no final judgment relating to such
dispute shall have been issued against the Company that is in full force and effect and is not
subject to further review, including a judgment that has become final by reason of the expiration
of the time within which a party may seek further appeal or review, and (B) in the event a judgment
that is subject to further review or appeal has been issued, the Company shall in good faith be
prosecuting an appeal or other proceeding for review and a stay of execution shall have been
obtained pending such appeal or review.

          (f) Subject to the irrevocable payment in full of all Senior Debt, the Property Trustee on
behalf of the Trust shall be subrogated (equally and ratably with the holders of all obligations of
the Company that by their express terms are subordinated to Senior Debt of the Company to the same
extent as payment of the Contract Payments in respect of the Stock Purchase Contracts is
subordinated and that are entitled to like rights of subrogation) to the rights of the holders of
Senior Debt to receive payments or distributions of cash, securities or other property of the
Company applicable to the Senior Debt until all such Contract Payments owing on the Stock Purchase
Contracts shall be paid in full, and as between the

Stock Purchase Contract Agreement

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Company, its creditors other than holders of such Senior Debt and the Property Trustee, no
such payment or distribution made to the holders of Senior Debt by virtue of Sections 2.6(b)
through (l) that otherwise would have been made to the Property Trustee shall be deemed to be a
payment by the Company on account of such Senior Debt, it being understood that the provisions of
Sections 2.6(b) through (l) are and are intended solely for the purpose of defining the relative
rights of the Property Trustee, on the one hand, and the holders of Senior Debt, on the other hand.

          (g) Nothing contained in Sections 2.6(b) through (l) or elsewhere in this Agreement is
intended to or shall impair, as among the Company, its creditors other than the holders of Senior
Debt and the Property Trustee, the obligation of the Company, which is absolute and unconditional,
to pay to the Property Trustee such Contract Payments on the Stock Purchase Contracts as and when
the same shall become due and payable in accordance with their terms, or is intended to or shall
affect the relative rights of the Property Trustee and creditors of the Company other than the
holders of Senior Debt, nor shall anything herein or therein prevent the Property Trustee from
exercising all remedies otherwise permitted by applicable law upon default under this Agreement,
subject to the rights, if any, under Sections 2.6(b) through (l), of the holders of Senior Debt in
respect of cash, securities or other property of the Company received upon the exercise of any such
remedy.

          (h) Upon payment or distribution of assets of the Company referred to in Sections 2.6(b)
through (l), the Property Trustee shall be entitled to rely upon any order or decree made by any
court of competent jurisdiction in which any such dissolution, winding up, liquidation or
reorganization proceeding affecting the affairs of the Company is pending or upon a certificate of
the trustee in bankruptcy, receiver, conservator, assignee for the benefit of creditors,
liquidating trustee or other Person making any payment or distribution, delivered to the Property
Trustee, for the purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Debt and other indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to Sections 2.6(b) through (l).

          (i) The Property Trustee shall be entitled to rely on the delivery to it of a written notice
by a Person representing himself to be a holder of Senior Debt (or a trustee or representative on
behalf of such holder) to establish that such notice has been given by a holder of Senior Debt or a
trustee or representative on behalf of any such holder or holders. In the event that the Property
Trustee determines in good faith that further evidence is required with respect to the right of any
Person as a holder of Senior Debt to participate in any payment or distribution pursuant to Section
2.6(b) through (l), the Property Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Property Trustee as to the amount of Senior Debt held by such
Person, the extent to which such Person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such Person under Sections 2.6(b) through (l), and,
if such evidence is not furnished, the Property Trustee may defer payment to such Person pending
judicial determination as to the right of such Person to receive such payment.

          (j) Nothing contained in Sections 2.6(b) through (l) shall affect the obligations of the
Company to make, or prevent the Company from making, payment of the Contract Payments, except as
otherwise provided in Sections 2.6(b) through (l).

          (k) U.S. Bank National Association, or any successor Property Trustee, in its individual
capacity shall be entitled to all the rights set forth in this Section with respect to any Senior
Debt at the time held by it, to the same extent as any other holder of Senior Debt and nothing in
this Agreement shall deprive U.S. Bank National Association, or any successor Property Trustee of
any of its rights as such holder.

Stock Purchase Contract Agreement

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          (l) No right of any present or future holder of any Senior Debt to enforce the subordination
herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on
the part of the Company or by any noncompliance by the Company with the terms, provisions and
covenants of this Agreement, regardless of any knowledge thereof that any such holder may have or
be otherwise charged with.

          (m) Nothing in this Section 2.6 shall apply to claims of, or payments to, the Property Trustee
under or pursuant to Section 2.6.

          (n) With respect to the holders of Senior Debt, (i) the duties and obligations of the Property
Trustee shall be determined solely by the express provisions of this Agreement; (ii) the Property
Trustee shall not be liable to any such holders if it shall, acting in good faith, mistakenly pay
over or distribute to the Holders or to the Company or any other Person cash, securities or other
property to which any holders of Senior Debt shall be entitled by virtue of this Section 2.6 or
otherwise; (iii) no implied covenants or obligations shall be read into this Agreement against the
Property Trustee; and (iv) the Property Trustee shall not be deemed to be a fiduciary as to such
holders.

          (o) Nothing in this Section 2.6 shall apply to any payment or distribution, whether in cash,
securities or other property, made to, or paid over or distributed by, any Paying Agent in respect
of Contract Payments or otherwise. The Paying Agent shall owe no duty, fiduciary or otherwise, to
any holder of Senior Debt and shall not be liable to any holders of Senior Debt if it shall pay
over or distribute to the Holders or to the Company or any other Person cash, securities or other
property to which any holders of Senior Debt shall otherwise be entitled by virtue of this Section
2.6 or otherwise; and no implied covenants or obligations shall be read into this Agreement against
the Paying Agent.

Section 2.7 Deferral of Contract Payments.

          (a) The Company shall have the right (which will be exercised if so directed by the Federal
Reserve), at any time prior to the Stock Purchase Date, to defer the payment of any or all of the
Contract Payments otherwise payable on any Payment Date, but only if the Company shall give the
Property Trustee and the administrative trustees (with a copy to the Paying Agent) written notice
of its election to defer each such deferred Contract Payment (specifying the amount to be deferred)
at least ten Business Days prior to the earlier of (i) the next succeeding Payment Date or (ii) the
date the Property Trustee and the administrative trustees are required to give notice of any record
date or Payment Date with respect to any class of WITS to the New York Stock Exchange or other
applicable self regulatory organization or to the Holders, but in any event not less than one
Business Day prior to such record date. Any Contract Payments so deferred shall, to the extent
permitted by law, accrue interest thereon at the rate originally applicable to the Notes
(calculated on the same basis as originally applicable to the Notes), compounding on each
succeeding Payment Date, until paid in full (such deferred installments of Contract Payments, if
any, together with the additional Contract Payments, if any, accrued thereon, being referred to
herein as the “Deferred Contract Payments”). Deferred Contract Payments, if any, shall be due on
the next succeeding Payment Date except to the extent that payment is deferred pursuant to this
Section 2.7. No Contract Payments may be deferred to a date that is after the Stock Purchase Date
and no such deferral period may end other than on a Payment Date. If the Stock Purchase Contracts
are terminated upon the occurrence of a Termination Event, the Trust’s right to receive Contract
Payments, if any, and any Deferred Contract Payments, will terminate.

          (b) In the event that the Company elects to defer the payment of Contract Payments on the
Stock Purchase Contracts until a Payment Date prior to the Stock Purchase Date, then all Deferred
Contract Payments, if any, shall be payable to the Property Trustee on behalf of the Trust on such
Payment Date.

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          (c) In the event that the Company elects to defer the payment of Contract Payments on the
Stock Purchase Contracts and such deferral is continuing on the Stock Purchase Date, the Property
Trustee will receive on the Stock Purchase Date in lieu of a cash payment, in addition to the
shares of Preferred Stock to be issued pursuant to Section 2.3, Subordinated Notes that will (i)
have a principal amount equal to the aggregate amount of Deferred Contract Payments at the Stock
Purchase Date, (ii) mature on March 15, 2014, (iii) bear interest at the rate per annum equal to
the originally applicable rate of interest on the Notes (subject to deferral on the same basis as
the Contract Payments; provided that the reference in clause (i)(2) of Section 2.7(d) to the
beginning of the deferral period shall be deemed to refer to the beginning of the deferral period
with respect to the Contract Payments), (iv) be subordinate and rank junior in right of payment to
all of the Company’s Senior Debt on the same basis as the Contract Payments, and (v) be redeemable
at the option of the Company at any time or from time to time prior to their stated maturity at a
redemption price equal to the principal amount thereof plus any accrued and unpaid interest to the
date of redemption; provided that the Company shall register such Subordinated Notes under the
Securities Act prior to the delivery thereof to the Property Trustee unless they may be so
delivered pursuant to an exemption from registration thereunder.

          (d) In the event the Company exercises its option to defer the payment of Contract Payments
then, until the earlier of (x) the Termination Date or (y) the date on which the Company shall have
either paid all Deferred Contract Payments to the Property Trustee in cash or repaid all amounts
outstanding on the Subordinated Notes, the Company shall not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any
shares of its capital stock; (ii) make any payment of principal of or interest or premium, if any,
on or repay, repurchase or redeem any debt security of the Company that ranks pari passu in all
respects with or junior in interest to the Notes (except for partial payments of interest with
respect to the Notes) or (iii) make any guarantee payments with respect to any guarantee by the
Company of the debt securities of any subsidiary of the Company that by its terms ranks pari passu
in all respects with or junior in interest to the Company’s guarantee related to the WITS other
than, in each case:

     (i) any repurchase, redemption or other acquisition of shares of the Company’s capital
stock in connection with (1) any employment contract, benefit plan or other similar
arrangement with or for the benefit of any one or more employees, officers, directors,
consultants or independent contractors, (2) the satisfaction of the Company’s obligations
pursuant to any contract entered into in the ordinary course prior to the beginning of the
deferral period, (3) a dividend reinvestment or stockholder purchase plan, or (4) the
issuance of the Company’s capital stock, or securities convertible into or exercisable for
such capital stock, as consideration in an acquisition transaction entered into prior to the
applicable event of default, default or extension period, as the case may be;

     (ii) any exchange, redemption or conversion of any class or series of the Company’s
capital stock, or the capital stock of one of its subsidiaries, for any other class or
series of the Company’s capital stock, or any class or series of the Company’s indebtedness
for any class or series of its capital stock;

     (iii) any purchase of fractional interests of the Company’s capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security being converted
or exchanged;

     (iv) any declaration of a dividend in connection with any rights plan, or the issuance
of rights, stock or other property under any rights plan, or the redemption or repurchase of
rights pursuant thereto;

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     (v) payments in respect of the Company’s guarantee related to the WITS executed for the
benefit of the Holders of the WITS; or

     (vi) any dividend in the form of stock, warrants, options or other rights where the
dividend stock or 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 equally with or junior
to such stock.

ARTICLE III

REMEDIES

Section 3.1 Unconditional Right of the Property Trustee to Receive Contract Payments and to
Purchase Shares of Preferred Stock; Direct Action by Holders of Normal WITS or Stripped WITS.

          The Property Trustee on behalf of the Trust shall have the right, which is absolute and
unconditional, (i) subject to Article II, to receive each Contract Payment with respect to each
Stock Purchase Contract on the respective Payment Date and (ii) except upon and following a
Termination Event, to purchase one share of Preferred Stock pursuant to such Stock Purchase
Contract and, in each such case, to institute suit for the enforcement of any such right to receive
Contract Payments and the right to purchase such share of Preferred Stock, and such rights shall
not be impaired without its consent. Up to and including the Stock Purchase Date, or the earlier
termination of the Stock Purchase Contracts, any Holder shall have the right, upon default in the
payment of any Contract Payment with respect to any Stock Purchase Contract on the respective
Payment Date (subject to Article II), to institute a suit directly against the Company for
enforcement of payment to such Holder of Contract Payments on Stock Purchase Contracts (or
interests therein) having a stated amount equal to the aggregate Liquidation Amount (as defined in
the Trust Agreement) of the WITS held by such Holder.

Section 3.2 Restoration of Rights and Remedies.

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

Section 3.3 Rights and Remedies Cumulative.

          No right or remedy herein conferred upon or reserved to the Property Trustee is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

Section 3.4 Delay or Omission Not Waiver.

          No delay or omission of the Property Trustee to exercise any right upon a default or remedy
upon a default shall impair any such right or remedy or constitute a waiver of any such right.

Stock Purchase Contract Agreement

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Every right and remedy given by this Article III or by law to the Property Trustee may be
exercised from time to time, and as often as may be deemed expedient, by the Property Trustee.

Section 3.5 Waiver of Stay or Extension Laws.

          The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Agreement; and the Company (to the extent that it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Property Trustee, but
will suffer and permit the execution of every such power as though no such law had been enacted.

ARTICLE IV

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 4.1 Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except under
Certain Conditions.

          The Company covenants that it will not consolidate with, convert into, or merge with and into,
any other entity or sell, assign, transfer, lease or convey all or substantially all of its
properties and assets to any Person or entity, unless:

          (a) the successor shall be a corporation organized and existing under the laws of the United
States of America or a State thereof or the District of Columbia and such corporation shall
expressly assume all the obligations of the Company under the Stock Purchase Contracts, this
Agreement, the Collateral Agreement, the Trust Agreement, the Indenture (including any supplement
thereto), the Guarantee Agreement and the Remarketing Agreement by one or more supplemental
agreements in form reasonably satisfactory to the Property Trustee, executed and delivered to the
Property Trustee by such corporation;

          (b) such successor corporation shall not, immediately after such consolidation, conversion,
merger, sale, assignment, transfer, lease or conveyance, be in default of payment obligations under
the Stock Purchase Contracts, this Agreement, the Collateral Agreement, the Trust Agreement or the
Remarketing Agreement or in material default in the performance of any other covenants under any of
the foregoing agreements; and

          (c) the successor entity shall have reserved sufficient authorized and unissued shares of
preferred stock having substantially the same terms and conditions as the Preferred Stock such that
the Trust will receive, on the Stock Purchase Date, shares of preferred stock having substantially
the same rights as the Preferred Stock that the Trust would have received had such merger,
consolidation or other transaction not occurred.

Section 4.2 Rights and Duties of Successor Corporation.

          In case of any such merger, consolidation, share exchange, sale, assignment, transfer, lease
or conveyance and upon any such assumption by a successor corporation in accordance with Section
4.1, such successor entity shall succeed to and be substituted for the Company with the same effect
as if it had been named herein as the Company.

Stock Purchase Contract Agreement

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Section 4.3 Officers’ Certificate and Opinion of Counsel Given to Property Trustee.

          The Property Trustee, subject to Section 4.1 and Section 4.2, shall receive an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any such merger, consolidation,
share exchange, sale, assignment, transfer, lease or conveyance, and any such assumption, complies
with the provisions of this Article IV and that all conditions precedent to the consummation of any
such merger, consolidation, share exchange, sale, assignment, transfer, lease or conveyance have
been met.

ARTICLE V

COVENANTS

Section 5.1 Performance under Stock Purchase Contracts.

          The Company covenants and agrees for the benefit of the Trust that it will duly and punctually
perform its obligations under the Stock Purchase Contracts in accordance with the terms of the
Stock Purchase Contracts and this Agreement.

Section 5.2 Company to Reserve Preferred Stock.

          The Company shall at all times prior to the Stock Purchase Date reserve and keep available,
free from preemptive rights, out of its authorized but unissued Preferred Stock the full number of
shares of Preferred Stock issuable against tender of payment for such shares of Preferred Stock in
respect of all Stock Purchase Contracts.

Section 5.3 Covenants as to Preferred Stock.

          The Company covenants that all shares of Preferred Stock that may be issued against tender of
payment for such shares of Preferred Stock in respect of any Stock Purchase Contract will, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable.

Section 5.4 Statements of Officers of the Company as to Default.

          The Company will deliver to the Property Trustee, within 120 days after the end of each fiscal
year of the Company ending after the date hereof, an Officers’ Certificate, stating whether or not
to the knowledge of the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions hereof, and if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge.

* * * *

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

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          In Witness Whereof, the parties hereto have caused this Agreement to be duly
executed as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	Wachovia Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James F. Burr	 	 
	 

	 	 	 	 

Name: James F. Burr
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Wachovia Capital Trust III	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	U.S. Bank National Association, not	 	 
	 	 	in its individual capacity but solely as Property Trustee	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Paul D. Allen	 	 
	 

	 	 	 	 

Name: Paul D. Allen
	 	 
	 

	 	 	 	Title: Vice President	 	 

Stock Purchase Contract Agreement

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