Document:

Exhibit 10.1

 Exhibit 10.1 
 EXECUTION COPY 
  

			
	 Friedman, Billings, Ramsey Group, Inc.
 FBR
TRS Holdings, Inc.
 1001 Nineteenth Street North
 Arlington, VA 22209
	 	 Forest Holdings LLC
 Forest Holdings (ERISA)
LLC
 c/o Crestview Capital Partners, L.P.
 667
Madison Avenue
 New York, NY 10021

  

			
		
	1. Introduction	  	This letter (the “Letter Agreement”) confirms our agreement with respect to the transaction among Friedman, Billings, Ramsey Group, Inc. (“FBR Group”), FBR TRS Holdings,
Inc. (“FBR TRS”), FBR Capital Markets Corporation (“FBR” or the “Company”), Forest Holdings (ERISA) LLC (“Crestview ERISA”) and Forest Holdings LLC (“Crestview LLC” and together with Crestview ERISA,
“Crestview”) and certain related matters. This Letter Agreement will be a binding agreement when signed by each of FBR Group, FBR TRS, FBR and Crestview. In connection with the execution of this Letter Agreement, Crestview Capital
Partners, L.P. is delivering an equity commitment letter to each of Crestview ERISA and Crestview LLC with respect to the investment of the Invested Capital (as defined below) and the Company shall be entitled to rely on such
letter.
		
	2. Purchaser	  	Crestview LLC and Crestview ERISA or their affiliates (collectively, “Purchaser”).
		
	3. Transaction	  	 At the Closing (as defined below), the Purchaser will invest $100 million (as such amount may be increased pursuant to the following sentence, the
“Invested Capital”) in the Company in connection with a broader equity capital transaction described in Annex A (the “Transaction”). Purchaser shall have the right to increase the amount of Invested Capital proportionately if the
Transaction (excluding the Invested Capital) raises more than $300 million. The Purchaser will acquire common shares (the “Shares”) of the Company at a price of $17.50 per share or, if lower, at the price per Share in connection with the
Transaction (the “Purchase Price”). The Shares acquired by Purchaser with the Invested Capital (including Shares issued in respect of, in exchange for or in substitution of such Shares by reason of any reorganization, recapitalization,
stock dividend, stock split or any similar change in the capital structure of the Company (a “Reorganization”)) are referred to herein as “Original Shares”.
  
 At the Closing, the Purchaser will be granted options to buy, free and clear of all liens and
encumbrances (other than the agreements described below) 2.68 million Shares (the “Options”) from FBR. The Options will be exercisable at a price of $20.00 per share (which price shall be subject to proportional reduction in the event the
Purchase Price is less than $17.50 per Share), will contain a cashless exercise provision and will have a six-year expiration. The exercise price of the Options will be reduced from time to time pursuant to a methodology to be agreed to reflect
dividends paid by the Company (or the Company can pay an amount equal to the dividends on the Options on an as-converted basis which (along with interest earned thereon) will be held in trust until exercise of such Options) and will contain other
customary anti-dilution adjustments for stock splits, combinations and the like and for issuances below the then-current exercise price of the Options.
  
 The FBR Group and FBR will work in good faith toward the success of the Transaction. Purchaser shall cooperate with FBR Group and FBR in connection with the Transaction
as reasonably requested by FBR Group and FBR.

			
		
	4. Conditions Precedent	  	 The investment of the Invested Capital and the issuance of the Options (the “Closing”) will be conditioned on the following:

 
 1. The completion (contemporaneous or immediately prior) of the Transaction as described in Annex
A.
  
 2. Clearance under or early termination of the Hart-Scott Rodino (“HSR”)
waiting period, if applicable. The Parties will make all required HSR filings promptly but in any event by 4 p.m. on Friday June 23, 2006, and will request early termination of the waiting period. If the Closing occurs before this condition is
satisfied, Purchaser will acquire at the Closing as many Shares as it is legally able to without requiring HSR clearance, and the remainder as soon as practicable after satisfaction of this condition.

		
	5. Definitive Agreements	  	 Upon the Closing, the parties will execute one or more agreements reflecting the following provisions:
  
 1) Board of directors.
  
 (i) The board of directors of the Company (the “Board”) will initially
consist of nine members (it being understood that it may take some time following the Closing until all of the members of the Board (other than the Crestview designees who will be appointed at the Closing) are selected and appointed): (1) one
director nominated by Crestview ERISA and one director nominated by Crestview LLC; (2) three directors nominated by FBR TRS and (3) four directors who are independent (within the meaning of the rules promulgated by the SEC and the exchange on which
the Shares are listed). Each of the initial independent directors shall be selected by FBR TRS and shall be reasonably acceptable to Purchaser. Any party may remove and replace any or all of its designees, and FBR TRS shall have the right to remove
and replace (with respect to replacement, after consultation with Purchaser) any or all of the independent directors, in each case, at any time, and all parties shall cooperate in facilitating such action. The definitive agreements will provide that
for so long as Crestview has the right to designate one director to the Board pursuant to this Section 5(1), FBR TRS may not act to remove a director nominated by Crestview except for cause (which will be defined to include serious matters such as
conviction of a felony) and in that event the relevant Crestview entity may nominate a replacement for the director so removed.
  
 (ii) Independent directors shall be paid compensation as set by the Board and all directors shall be entitled to reimbursement of their expenses of
service.
  
 (iii) For so long as Crestview has the right to designate
one director to the Board pursuant to this Section 5(1), in the event of a vacancy created by the departure (for any reason, including removal) of an independent director, FBR TRS shall select a replacement independent director who shall be
reasonably acceptable to Crestview, provided that if FBR TRS and Crestview are unable to agree on the replacement independent director, FBR TRS shall have the right to designate the replacement independent director to serve until such time as FBR
TRS and Crestview can agree on a permanent replacement. If FBR TRS and Crestview are unable to agree on a permanent replacement director within 45 days, the remaining permanent independent directors, if any, shall select the permanent replacement
independent director after consultation with both parties.
  
 (iv) For
so long as Crestview has the right to designate one director to the Board pursuant to this Section 5(1), each committee of the Board, to the extent permitted by applicable law, rule or regulation, shall have as a member at least one Purchaser
designee and one FBR TRS designee and if not permitted by applicable law, rule or regulation, such designee(s) shall be entitled to observer status.
  
 (v) If Purchaser sells, transfers or otherwise disposes of greater than (1) 33 1/3% of its Original Shares, Crestview LLC shall no longer be entitled
to designate 1 director and (2) 66 2/3% of its Original Shares, Crestview ERISA shall no longer be entitled to designate 1 director, and upon either of the foregoing, the applicable Purchaser’s designee shall be replaced by an additional
independent director nominated by FBR TRS, in the case of (1) above only, reasonably acceptable to Purchaser. From and after such time as Purchaser shall no longer own at least 66 2/3% of its Original Shares, (i) Purchaser shall have no further
approval rights with respect to independent directors and (ii) Crestview ERISA shall have customary “soft” management rights for ERISA purposes.
  

  

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		  	 (vi) If FBR TRS sells, transfers or otherwise disposes of greater than 50% of its Shares (measured as of the Closing but
including Shares issued in respect of, in exchange for or in substitution of such Shares by reason of any Reorganization), FBR TRS shall no longer have the rights described above to select the independent directors. FBR TRS shall retain the right to
nominate three directors unless both (i) FBR TRS sells, transfers or otherwise disposes of greater than 50% of its Shares (measured as of the Closing but including Shares issued in respect of, in exchange for or in substitution of such Shares by
reason of any Reorganization) and (ii) none of Eric F. Billings, Richard J. Hendrix or J. Rock Tonkel, Jr. remains with the Company in a senior executive position.
  
 (vii) Each of Purchaser and FBR TRS (and their respective affiliates) shall vote all of the Shares under their control to implement the
foregoing.
  
 (viii) For so long as Purchaser has the right to
designate one director to the Board pursuant to this Section 5(1), Purchaser shall have the right to designate one of such directors (or another representative reasonably acceptable to FBR TRS) to sit on the board of directors of all subsidiaries of
the Company other than the direct and indirect subsidiaries of the Company that are registered investment advisers (provided that if that would cause a violation of any applicable law, rule or regulation, such person shall only have observer rights
on such board).
  
 (ix) The parties acknowledge that when the Company
becomes a public company, it will have to comply with securities laws and exchange listing requirements, and they will cooperate in good faith to ensure that it does so comply consistent with the provisions of this Letter Agreement.
  
 2) Affiliate Transactions. Transactions, agreements or arrangements
(including amendments, waivers or terminations of agreements or arrangements) between FBR, on the one hand, and FBR Group and its affiliates, on the other hand, shall require approval by a majority of the Board, other than the FBR TRS designees (in
other words, the Crestview designees and the independent directors).
  
 3) Transfer Restrictions. Each of FBR TRS and Purchaser will agree not to sell any of their Shares for 12 months after the Closing (for avoidance of doubt this shall not restrict a merger or other business combination involving the
Company). Following the lock-up period, (i) FBR TRS shall have a right of first offer in the event Purchaser intends to sell any Shares (other than in a public offering, pursuant to Rule 144 (except in a privately negotiated transaction in which the
counterparty is known) or to certain permitted transferees), and (ii) if Purchaser intends to sell Shares to any of the Restricted Entities for the account of such Restricted Entity as principal in a privately negotiated transaction (that is, in
which the counterparty is known to be a Restricted Entity), FBR TRS shall have a right of first refusal to purchase such Shares, and if FBR TRS (or one of its affiliates) does not exercise that right within 10 business days of receipt of written
notice including, in the case of clause (i) the purchase price and in the case of clause (ii) all of the material terms of the proposed sale, Purchaser may proceed with the sale on terms that are in the aggregate no less favorable to Purchaser than
those set forth in such notice. Except as provided herein, each of Purchaser and FBR Group (and their respective affiliates) may sell its shares subject to compliance with securities laws. “Restricted Entities” means the entities set forth
on Annex B plus up to five additional entities proposed by FBR TRS prior to the Closing so long as such persons are reasonably acceptable to Purchaser. The rights of Purchaser provided herein (other than rights that flow to a buyer in its capacity
of the owner of Shares, such as the right to vote and receive dividends declared) are personal to Purchaser and will not pass to any acquiror of Purchaser’s Shares. In the event FBR TRS sells or otherwise transfers Shares representing at least
a 10% interest in the Company to any one party or group, FBR TRS will require such person or group to be bound by the obligations of FBR TRS set forth in Section 5(1) of this Letter Agreement to vote for and otherwise support the provisions of
Section 5(1) for the benefit of Purchaser.
  

  

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		  	 4) General liquidity rights. The definitive agreements will provide for customary tag-along sale rights. Purchaser
shall also have customary demand and piggyback registration rights to be reasonably agreed but in no event less favorable to Purchaser than the registration rights given to FBR TRS and the purchasers in the Transaction; provided that Purchaser shall
have demand registration rights for 2 underwritten offerings. The definitive agreements will provide for customary legends and investment representations.
  
 5) Disclosure obligations. The parties shall have reasonable rights to review in advance and comment on all public disclosures relating to this
Letter Agreement, the documents referred to herein and the transactions and arrangements contemplated hereby and thereby in any offering document relating to the Transaction and in any other public statement (including in any document furnished to
the SEC) made regarding this Letter Agreement, the documents referred to herein and the transactions and arrangements contemplated hereby and thereby.
  
 6) Placement and strategic advisory fees. In exchange for its ongoing strategic value, advice, and assistance, an affiliate of the Purchaser
(to be designated by Purchaser) shall receive an initial placement fee equal to 7% of Invested Capital, and an affiliate of the Purchaser will receive an annual strategic advisory fee of $1 million (plus reimbursement of reasonable out-of-pocket
expenses), thereafter as long as Purchaser owns at least 50% of its Original Shares. FBR shall reimburse Purchaser for its actual, documented out-of-pocket expenses incurred in connection with the transactions contemplated by this Letter Agreement,
up to a maximum of $2 million.
  
 7) Other Provisions. As long
as Purchaser owns any Original Shares, (i) Purchaser will have customary preemptive rights to enable Purchaser to remain at the ownership level reflected by its Shares acquired pursuant to this Letter Agreement (including any shares acquired through
the exercise of its Options) with respect to new issuances of Company securities (except for stock and option grants to Company directors and employees), which shall be equivalent to (and no less favorable to Purchaser than) the preemptive rights
granted to FBR TRS or its affiliates and (ii) Purchaser shall also have customary information rights.
  
 8) Term. Unless otherwise provided herein or therein, the agreements providing the rights and obligations specified in this Letter Agreement
shall expire at such time as Purchaser ceases to own less than 1% of the Original Shares, provided that such termination shall not affect any Options that are then in effect pursuant to Section 3 above

		
	6. Governing Law	  	 This Letter Agreement will be governed by New York law without regard to the conflicts of law rules of such jurisdiction. This Letter Agreement may be executed in
one or more counterparts and all such counterparts taken together shall constitute one and the same instrument.

		
	7. Representations and
Warranties	  	 Each of FBR Group, FBR TRS and the Company, on the one hand, and Crestview, on the other side, represents and warrants to the other on the date
hereof and on the date of Closing as follows:
  
 1. It is an entity duly organized and
validly existing and in good standing under the laws of the its jurisdiction of formation, with requisite power and authority to execute and deliver this Letter Agreement, and to consummate the transactions contemplated hereby;
  
 2. The execution, delivery and performance by it of this Letter Agreement, and the consummation by it
of the transactions contemplated hereby and compliance by it with the terms and provisions hereunder will not conflict with, or result in any breach of or constitute a default under (nor constitute any event which with notice, lapse of time, or both
would constitute a breach of, or default under), (i) any provision of its charter documents, (ii) any provision of any contract, license, indenture, mortgage, deed of trust, bank loan or credit agreement or other agreement or instrument to which it
is a party or by which it or its properties may be bound or affected, or (iii) any federal, state, local or foreign law, regulation or rule or any decree, judgment, permit or order applicable to it, except in the case of clauses (ii) or (iii) for
such conflicts, breaches or defaults which have been validly waived or would not reasonably be expected to have a material adverse effect on it or result in the creation or imposition of any material lien, charge, claim or encumbrance upon any of
its property or assets.
  
 3. This Agreement has been duly authorized, executed and
delivered by it and is enforceable in accordance with its terms, except in each case as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, and by general principles of
equity, and except to the extent that the indemnification provisions hereof or thereof may be limited by federal or state securities laws and public policy considerations in respect thereof.
  
 .

  

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		  	 In addition, Purchaser shall be entitled to rely on the Company’s representations and warranties set forth in Section 4 of the Purchaser
Placement Agreement (in the form attached hereto as Annex C), which are hereby incorporated by reference herein and which shall be made by the Company to the Purchaser by officer’s certificate on the date of, and as a condition to, the Closing;
provided, however, that the references in the Purchaser Placement Agreement to “this Agreement,” the “Transaction Agreements,” “the transactions contemplated by this Agreement or the Transaction
Agreements,” “Shares” and other terms relating to the Transaction shall be deemed references to this Letter Agreement, the agreements described in this Letter Agreement, the transactions contemplated hereby and thereby,
the Shares acquired hereunder or, with respect to other terms, their equivalents hereunder, as applicable. Purchaser shall have customary contractual indemnification rights with respect to losses or damages suffered by Purchaser as a result of a
breach by the Company of its representations and warranties; provided that (i) such indemnification shall be subject to a $25 million deductible and (ii) Purchaser’s rights to indemnification shall terminate at such time as Purchaser’s
shares are covered by an effective registration statement filed with the Securities and Exchange Commission.
  

	8. Miscellaneous	  	 FBR Group and Crestview agree to use their reasonable best efforts to complete definitive agreements with respect to the transactions described in
this Letter Agreement by the Closing Date. For the avoidance of doubt, in the event such definitive agreements are not entered into by the Closing, this Letter Agreement shall, automatically and without any further act being required, be deemed to
be the definitive documentation upon which such transactions will be consummated.
  
 If
and to the extent any provisions of the proposed articles of incorporation or bylaws or agreements of the Company to be entered in to in connection with the Company’s formation and the Transaction are inconsistent with the terms of this Letter
Agreement, appropriate changes or references shall be made thereto or therein, as appropriate, to ensure that the terms of this Letter Agreement shall control and that the articles of incorporation and bylaws of the Company shall not be inconsistent
with the terms hereof.
  
 FBR Group hereby agrees that it will cause FBR TRS (and its
permitted assignees) to perform its obligations under this Letter Agreement.
  
 The term
of this Letter Agreement shall be as set forth in Annex A.
  
 FBR Group and FBR TRS may
assign their rights and obligations hereunder only in connection with the right of first offer and right of first refusal described above, and then only to another affiliate of FBR Group; provided that no such assignment shall relieve FBR Group or
FBR TRS of its obligations or liabilities hereunder. If FBR Group or FBR TRS (or any of their assignees) transfers Shares to its affiliates, such affiliates shall become bound by all the provisions of this Letter Agreement pursuant to an agreement
reasonably satisfactory to Crestview.

  

 5 

 This Letter Agreement is accepted and agreed to on the terms set forth above as of this 22nd day of June, 2006:

 Forest Holdings LLC 
 By: Crestview Capital Partners, L.P., as Member 
 By: Crestview Partners, L.P., its General Partner

 By: Crestview, L.L.C., its General Partner 
  

	By:	/s/ Barry S. Volpert  

 Name: Barry S. Volpert 
 Title: Chairman and CEO 
 Forest Holdings (ERISA) LLC 
 By: Crestview Capital Partners (ERISA), L.P., as Member 
 By: Crestview Partners, L.P., its General Partner 
 By: Crestview, L.L.C., its General Partner 
  

	By:	/s/ Barry S. Volpert  

 Name: Barry S. Volpert 
 Title: Chairman and CEO 
 Friedman Billings
Ramsey Group, Inc. 
  

	By:	/s/ Eric F. Billings  

 Name: Eric F. Billings 
 Title: Chief Executive Officer 
 FBR TRS
Holdings, Inc. 
  

	By:	/s/ Eric F. Billings  

 Name: Eric F. Billings 
 Title: Chief Executive Officer 
 FBR Capital
Markets Corporation 
  

	By:	/s/ Eric F. Billings  

 Name: Eric F. Billings 
 Title: Chief Executive OfficerForm of FIrst Supplemental Indenture

 Exhibit 4.2 
 FIRST SUPPLEMENTAL INDENTURE 
 BETWEEN 
 DOMINION RESOURCES, INC. 
 AND 
 JPMORGAN CHASE BANK, N.A. 
 DATED AS
OF JUNE 1, 2006 
 2006 SERIES A ENHANCED JUNIOR SUBORDINATED NOTES 
 DUE JUNE 30, 2066 

 TABLE OF CONTENTS 
  

					
	ARTICLE I DEFINITIONS	  	2
			
	1.1	  	Definition of Terms	  	2
		
	ARTICLE II GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED NOTES	  	6
			
	2.1	  	Designation and Principal Amount	  	6
			
	2.2	  	Stated Maturity	  	6
			
	2.3	  	Form and Payment; Minimum Transfer Restriction	  	6
			
	2.4	  	Exchange and Registration of Transfer of Junior Subordinated Notes; Restrictions on Transfers; Depositary	  	7
			
	2.5	  	Interest	  	8
			
	2.6	  	Events of Default	  	9
		
	ARTICLE III REDEMPTION OF THE JUNIOR SUBORDINATED NOTES	  	9
			
	3.1	  	Tax Event Redemption	  	9
			
	3.2	  	Optional Redemption by Company	  	9
			
	3.3	  	Notice of Redemption	  	10
		
	ARTICLE IV OPTION TO DEFER INTEREST PAYMENTS	  	10
			
	4.1	  	Option to Defer Interest Payments	  	10
			
	4.2	  	Notice of Extension	  	11
		
	ARTICLE V EXPENSES	  	11
			
	5.1	  	Payment of Expenses	  	11
			
	5.2	  	Payment Upon Resignation or Removal	  	11
		
	ARTICLE VI FORM OF JUNIOR SUBORDINATED NOTE	  	11
			
	6.1	  	Form of Junior Subordinated Note	  	11
		
	ARTICLE VII ORIGINAL ISSUE OF JUNIOR SUBORDINATED NOTES	  	12
			
	7.1	  	Original Issue of Junior Subordinated Notes	  	12
		
	ARTICLE VIII MISCELLANEOUS	  	12
			
	8.1	  	Ratification of Indenture; First Supplemental Indenture Controls	  	12
			
	8.2	  	Trustee Not Responsible for Recitals	  	12
			
	8.3	  	Governing Law	  	12
			
	8.4	  	Separability	  	12
			
	8.5	  	Counterparts	  	12
		
	EXHIBIT A	  	14

  

 i 

 FIRST SUPPLEMENTAL INDENTURE 
 THIS FIRST SUPPLEMENTAL INDENTURE, dated as of June 1, 2006 (the “First Supplemental Indenture”), is between DOMINION RESOURCES,
INC., a Virginia corporation (the “Company”), and JPMORGAN CHASE BANK, N.A., as trustee (the “Trustee”) under the Junior Subordinated Indenture II, dated as of June 1, 2006, between the Company and the Trustee (the
“Base Indenture” and, together with this First Supplemental Indenture, the “Indenture”). 
 WHEREAS, the Company
executed and delivered the Base Indenture to the Trustee to provide for the future issuance of the Company’s unsecured junior subordinated notes (the “Notes”) to be issued from time to time in one or more series as might be determined
by the Company under the Indenture, in an unlimited aggregate principal amount which may be authenticated and delivered as provided in the Base Indenture; 
 WHEREAS, pursuant to the terms of the Base Indenture, the Company desires to provide for the establishment of a series of its Notes, to be known as its 2006 Series A Enhanced Junior Subordinated Notes due
June 30, 2066 (the “Junior Subordinated Notes”), the form and substance of such Junior Subordinated Notes and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this First Supplemental
Indenture; 
 WHEREAS, the Company desires that this series of Junior Subordinated Notes be originally issued on June 23, 2006
pursuant to the Indenture and sold pursuant to the Underwriting Agreement (as defined below); 
 WHEREAS, the Company has offered to
the purchasers (the “Underwriters”) named in Schedule I to the Underwriting Agreement, dated June 20, 2006 (the “Underwriting Agreement”), between the Underwriters and the Company $300,000,000 aggregate principal amount of
its Junior Subordinated Notes; and 
 WHEREAS, the Company has requested that the Trustee execute and deliver this First Supplemental
Indenture and all requirements necessary to make this First Supplemental Indenture a valid instrument in accordance with its terms, and to make the Junior Subordinated Notes, when executed by the Company and authenticated and delivered by the
Trustee, the valid obligations of the Company, have been performed, and the execution and delivery of this First Supplemental Indenture has been duly authorized in all respects; 
 NOW, THEREFORE, in consideration of the purchase and acceptance of the Junior Subordinated Notes by the holders, and for the purpose of setting
forth, as provided in the Base Indenture, the form and substance of the Junior Subordinated Notes and the terms, provisions and conditions thereof, the Company covenants and agrees with the Trustee as follows: 

 ARTICLE I 
 DEFINITIONS 
 1.1 Definition of Terms. For all purposes of this First Supplemental Indenture,
except as otherwise expressly provided or unless the context otherwise requires: 
 (a) the terms not otherwise defined herein
which are defined in the Base Indenture have the same meanings when used in this First Supplemental Indenture; 
 (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) all other terms used herein which are defined in the Trust Indenture Act of 1939, as amended, whether directly or by reference therein, have the meanings assigned to them therein; 
 (d) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles in the United States of America, and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder shall mean such accounting
principles as are generally accepted in the United States of America at the date 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; 
 (e) a reference to a Section or Article is to a Section or Article of this First Supplemental Indenture unless
otherwise stated; 
 (f) 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; 
 (g) headings are for convenience of reference only and do not affect interpretation; 
 “Additional
Interest” has the meaning specified in Section 2.5. 
 “Calculation Agent” means JPMorgan Chase Bank,
N.A., or its successor appointed by the Company, acting as calculation agent. 
 “Comparable Treasury Issue” means,
with respect to any redemption date, the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the time period from the redemption date to June 30, 2016 that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities with a term to maturity comparable to such time period. If no United States Treasury security has a maturity which is within a period
from three months before to three months after June 30, 2016, the two most closely corresponding United States Treasury securities shall be used as the Comparable Treasury Issue, and the Treasury Rate shall be interpolated or extrapolated on a
straight-line basis, rounding to the nearest month using such securities. 
  

 2 

 “Comparable Treasury Price” means, with respect to any redemption date,
(A) the average, after excluding the highest and lowest such Reference Treasury Dealer Quotations, of up to five Reference Treasury Dealer Quotations for such redemption date, or (B) if the Quotation Agent obtains fewer than five such
Reference Treasury Dealer Quotations, the average of all such Quotations. 
 “Coupon Rate” has the meaning specified
in Section 2.5(a). 
 “Definitive Note Certificates” means Notes issued in definitive, fully registered form.

 “Fixed Coupon Rate” has the meaning specified in Section 2.5(a). 
 “Floating Coupon Rate” has the meaning specified in Section 2.5(a). 
 “Fixed Rate Period” has the meaning specified in Section 2.5(a). 
 “Floating Rate Period” has the meaning specified in Section 2.5(a). 
 “Global Note” has the meaning specified in Section 2.4(a). 
 “Interest Payment Date” has the meaning specified in Section 2.5. 
 “Junior Subordinated Notes” has the meaning specified in the second recital to this First Supplemental Indenture. 
 “LIBOR Business Day” means any Business Day on which dealings in deposits in U.S. Dollars are transacted in the London
Inter-Bank Market. 
 “LIBOR Interest Determination Date” means the second LIBOR Business Day preceding each LIBOR
Rate Reset Date. 
 “LIBOR Rate Reset Date” means, subject to Section 2.5(b), the 30th day of the months of
March, June, September and December of each year commencing on June 30, 2016. 
 “Notes” has the meaning
specified in the first recital to this First Supplemental Indenture. 
 “Optional Deferral Period” has the meaning
specified in Section 4.1. 
 “Optional Redemption Price” has the meaning specified in Section 3.2.

 “Primary Treasury Dealer” has the meaning specified in the definition of Quotation Agent below. 
  

 3 

 “Quotation Agent” means one of Goldman, Sachs & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, Lehman Brothers Inc., and their respective successors as selected by the Company; provided, however, that if all of these firms cease to be a primary United States Government securities dealer in New
York City (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer as Quotation Agent. 
 “Record Date” has the meaning specified in Section 2.5(a). 
 “Reference Treasury Dealer”
means (i) Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Lehman Brothers Inc. and their respective successors; provided, however, that if any of these firms shall cease to be a Primary Treasury
Dealer, the Company shall substitute another Primary Treasury Dealer for that firm; and (ii) up to two other Primary Treasury Dealers selected by the Company. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the
average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer
at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date. 
 “Stated Maturity” has
the meaning specified in Section 2.2. 
 “Tax Event” means the receipt by the Company of an opinion of
independent tax counsel experienced in such matters (“Tax Event Opinion”), to the effect that, as a result of (a) any amendment to, change in or announced prospective change in the laws (or any regulations thereunder) of the United
States or any political subdivision or taxing authority thereof or therein, or (b) any official administrative written decision, pronouncement or action, or judicial decision interpreting or applying such laws or regulations, which amendment or
change is effective or which proposed change, pronouncement, decision or action is announced on or after the date of original issuance of the Junior Subordinated Notes, there is more than an insubstantial risk that interest payable by the Company on
the Junior Subordinated Notes is not or within 90 days of the date of such opinion, will not be deductible, in whole or in part, by the Company for United States federal income tax purposes. 
 “Tax Event Make-Whole Amount” means an amount equal to the greater of (i) 100% of the principal amount of the Junior
Subordinated Notes or (ii) as determined by a Quotation Agent as of the redemption date, the sum of the present value of each scheduled payment of interest on the Junior Subordinated Notes from the redemption date to June 30, 2016 and the
present value of the principal amount of the Junior Subordinated Notes assuming, solely for purposes of this calculation, a scheduled payment of such principal on June 30, 2016, discounted to the redemption date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Rate plus 50 basis points. 
 “Tax Event Opinion” has the meaning specified in the definition of Tax Event above. 
 “Tax Event
Redemption Price” means the Tax Event Make-Whole Amount. 
  

 4 

 “Telerate Page 3750” means the display designated as “Telerate page
3750” on Moneyline Telerate, Inc. (or such other page as may replace “Telerate page 3750” on such service) or such other service displaying the London Inter-Bank offered rates of major banks, as may replace Moneyline Telerate, Inc.

 “Three-Month LIBOR Rate” means the rate determined in accordance with the following provisions: 
 (1) On the LIBOR Interest Determination Date, the Calculation Agent or its affiliate will determine the Three-Month LIBOR Rate which shall
be the rate for deposits in U.S. Dollars having a three-month maturity which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on the LIBOR Interest Determination Date. 
 (2) If no rate appears on Telerate Page 3750 on the LIBOR Interest Determination Date, the Calculation Agent or its affiliate will request
the principal London offices of four major reference banks in the London Inter-Bank Market, to provide it with their offered quotations for deposits in U.S. Dollars for the period of three months, commencing on the applicable LIBOR Rate Reset Date,
to prime banks in the London Inter-Bank Market at approximately 11:00 a.m., London time, on that LIBOR Interest Determination Date and in a principal amount that is representative for a single transaction in U.S. Dollars in that market at that time.
If at least two quotations are provided, then the Three-Month LIBOR Rate will be the average (rounded, if necessary, to the nearest one hundredth (0.01) of a percent) of those quotations. If fewer than two quotations are provided, then the
Three-Month LIBOR Rate will be the average (rounded, if necessary, to the nearest one hundredth (0.01) of a percent) of the rates quoted at approximately 11:00 a.m., New York City time, on the LIBOR Interest Determination Date by three major banks
in New York City selected by the Calculation Agent or its affiliate for loans in U.S. Dollars to leading European banks, having a three-month maturity and in a principal amount that is representative for a single transaction in U.S. Dollars in that
market at that time. If the banks selected by the Calculation Agent or its affiliate are not providing quotations in the manner described by this paragraph, the rate for the quarterly interest period following the LIBOR Interest Determination Date
will be the rate in effect on that LIBOR Interest Determination Date. 
 “Treasury Rate” means (i) the yield,
under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Federal
Reserve and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the time period from the redemption
date to June 30, 2016, (if no maturity is within three months before or after such time period, yields for the two published maturities most closely corresponding to such time period shall be determined by the Quotation Agent and the Treasury
Rate shall be interpolated or extrapolated from such yields on a straight-line basis, rounding to the nearest month) or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not
contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to
the Comparable Treasury Price for such redemption date. The Treasury Rate shall be calculated on the third Business Day preceding the redemption date. 
  

 5 

 “Underwriters” has the meaning specified in the fourth recital to this First
Supplemental Indenture. 
 “Underwriting Agreement” has the meaning specified in the fourth recital to this First
Supplemental Indenture. 
 ARTICLE II 
 GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED NOTES 
 2.1 Designation and Principal
Amount. There is hereby authorized a new series of Notes, to be designated the “2006 Series A Enhanced Junior Subordinated Notes due June 30, 2066,” in the initial aggregate principal amount of $300,000,000, which amount shall be
set forth in any written orders of the Company for the authentication and delivery of Junior Subordinated Notes pursuant to Section 2.1 of the Base Indenture and Section 7.1 hereof. Additional Junior Subordinated Notes without limitation
as to amount, and without the consent of the holders of the then Outstanding Junior Subordinated Notes, may also be authenticated and delivered in the manner provided in Section 2.1 of the Base Indenture. Any such additional Junior Subordinated
Notes will have the same Stated Maturity and other terms as those initially issued and shall be consolidated with and part of the same series of Notes as the Junior Subordinated Notes initially issued under this First Supplemental Indenture.

 2.2 Stated Maturity. The Stated Maturity of the Junior Subordinated Notes is June 30, 2066, which may not be shortened or
extended. 
 2.3 Form and Payment; Minimum Transfer Restriction. 
 (a) The Junior Subordinated Notes shall be issued in fully registered definitive form without coupons in minimum denominations of $1,000
and integral multiples of $1,000 in excess thereof. Principal and interest on the Junior Subordinated Notes will be payable, the transfer of such Junior Subordinated Notes will be registrable and such Junior Subordinated Notes will be exchangeable
for Junior Subordinated Notes bearing identical terms and provisions at the principal office of the Trustee; provided, however, that payment of interest may be made at the option of the Company by check mailed to the Person entitled thereto at such
address as shall appear in the Register or by transfer to an account maintained by the Person entitled thereto as specified in the Register, provided that proper transfer instructions have been received by the Paying Agent by the Record Date. The
Register for the Junior Subordinated Notes shall be kept at the principal office of the Trustee, and the Trustee is hereby appointed registrar and Paying Agent for the Junior Subordinated Notes. 
 (b) The Junior Subordinated Notes may be transferred or exchanged only in minimum denominations of $1,000 and integral multiples of $1,000
in excess thereof, and any attempted transfer, sale or other disposition of Junior Subordinated Notes in a denomination of less than $1,000 shall be deemed to be void and of no legal effect whatsoever. Any such transferee shall be deemed not to be
the holder of such Junior Subordinated Notes for any purpose, including but not limited to the receipt of payments in respect of such Junior Subordinated Notes and such transferee shall be deemed to have no interest whatsoever in such Junior
Subordinated Notes. 
  

 6 

 2.4 Exchange and Registration of Transfer of Junior Subordinated Notes; Restrictions on Transfers;
Depositary. The Junior Subordinated Notes will be issued to the holders in accordance with the following procedures: 
 (a) So long as Junior Subordinated Notes are eligible for book-entry settlement with the Depositary, or unless required by law, all Junior Subordinated Notes that are so eligible will be represented by one or more Junior Subordinated Notes
in global form (a “Global Note”) registered in the name of the Depositary or the nominee of the Depositary. Except as provided in Section 2.4(c) below, beneficial owners of a Global Note shall not be entitled to have Definitive Note
Certificates registered in their names, will not receive or be entitled to receive physical delivery of Definitive Note Certificates and will not be registered holders of such Global Notes. 
 (b) The transfer and exchange of beneficial interests in Global Notes shall be effected through the Depositary in accordance with the
Indenture and the procedures and standing instructions of the Depositary and the Trustee shall make appropriate endorsements to reflect increases or decreases in principal amounts of such Global Notes. 
 (c) Notwithstanding any other provisions of the Indenture (other than the provisions set forth in this Section 2.4(c)), a Global Note
may not be exchanged in whole or in part for Junior Subordinated Notes registered, and no transfer of a Global Note may be registered, in the name of any person other than the Depositary or a nominee thereof unless (i) such Depositary
(A) has notified the Company that it is unwilling or unable to continue as Depositary for such Global Note or (B) has ceased to be a clearing agency registered as such under the Exchange Act and no successor Depositary has been appointed
by the Company within 90 days after its receipt of such notice or its becoming aware of such ineligibility, (ii) there shall have occurred and be continuing an Event of Default, or any event which after notice or lapse of time or both would be
an Event of Default under the Indenture, with respect to such Note, or (iii) the Company, in its sole discretion and subject to the procedures of the Depositary, instructs the Trustee to exchange such Global Note for a Junior Subordinated Note
that is not a Global Note (in which case such exchange (subject to such procedures) shall be effected by the Trustee). 
 The
Depositary shall be a clearing agency registered under the Exchange Act. The Company initially appoints The Depository Trust Company to act as Depositary with respect to the Global Notes. Initially, the Global Notes shall be registered in the name
of Cede & Co., as the nominee of the Depositary, and deposited with the Trustee as custodian for Cede & Co. 
 Definitive Junior Subordinated Notes issued in exchange for all or a part of a Global Note pursuant to this Section 2.4(c) shall be registered in such names and in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such definitive Junior Subordinated Notes to the person in whose names such definitive
Junior Subordinated Notes are so registered. 
 So long as Junior Subordinated Notes are represented by one or more Global
Notes, (i) the registrar for the Junior Subordinated Notes and the Trustee shall be entitled to deal with the clearing agency for all purposes of the Indenture relating to such Global Notes as the 

  

 7 

 
sole holder of the Junior Subordinated Notes evidenced by such Global Notes and shall have no obligations to the holders of beneficial interests in such
Global Notes; and (ii) the rights of the holders of beneficial interests in such Global Notes shall be exercised only through the clearing agency and shall be limited to those established by law and agreements between such holders and the
clearing agency and/or the participants in the clearing agency. 
 At such time as all interests in a Global Note have been
paid, redeemed, exchanged, repurchased or canceled, such Global Note shall be, upon receipt thereof, canceled by the Trustee in accordance with standing procedures and instructions of the Depositary. At any time prior to such cancellation, if any
interest in a Global Note is exchanged for definitive Junior Subordinated Notes, redeemed by the Company pursuant to Article III or canceled, or transferred for part of a Global Note, the principal amount of such Global Note shall, in accordance
with the standing procedures and instructions of the Depositary be reduced or increased, as the case may be, and an endorsement shall be made on such Global Note by, or at the direction of, the Trustee to reflect such reduction or increase.

 2.5 Interest. 
 (a) Each Junior Subordinated Note will bear interest at (i) the rate of 7.50% per annum (the “Fixed Coupon Rate”) until June 30, 2016 (the “Fixed Rate Period”), and (ii) the Three-Month LIBOR Rate
plus 2.825% per annum, reset quarterly on the LIBOR Rate Reset Dates (the “Floating Coupon Rate” and, together with the Fixed Coupon Rate, the “Coupon Rate”), from June 30, 2016 up to, but not including, the Stated
Maturity (the “Floating Rate Period”), and will bear interest on any overdue principal at the then prevailing Coupon Rate and (to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of
interest at the then prevailing Coupon Rate (“Additional Interest”), compounded semi-annually for the Fixed Rate Period and quarterly for the Floating Rate Period, payable (subject to the provisions of Article IV) semi-annually in arrears
on the 30th day of June and December of each year during the Fixed Rate Period and quarterly in arrears on the 30th
day of March, June, September and December of each year during the Floating Rate Period (each, an “Interest Payment Date”), commencing on December 30, 2006 for the Fixed Rate Period and September 30, 2016 for the Floating Rate
Period to the Person in whose name such Junior Subordinated Note is registered, subject to certain exceptions, at the close of business on the Record Date next preceding such Interest Payment Date. The “Record Date” for payment of interest
will be the Business Day next preceding the Interest Payment Date, unless such Junior Subordinated Note is registered to a holder other than the Depositary or a nominee of the Depositary, in which case the Record Date for payment of interest will be
the fifteenth calendar day preceding the applicable Interest Payment Date, whether or not a Business Day. 
 (b) During the
Fixed Rate Period, the amount of interest payable for any period will be computed on the basis of a 360-day year of twelve 30-day months, and during the Floating Rate Period, the amount of interest payable for any period will be computed on the
basis of the actual number of days in the relevant period divided by 360. During the Fixed Rate Period, if an Interest Payment Date, redemption date or the Stated Maturity of the Junior Subordinated Notes falls on a day that is not a Business Day,
the payment of interest and principal will be made on the next succeeding Business Day, and no interest on such payment will accrue for the period from and after the Interest Payment Date, redemption date or the Stated 

  

 8 

 
Maturity, as applicable. During the Floating Rate Period, if any Interest Payment Date, other than a redemption date or the Stated Maturity of the Junior
Subordinated Notes, falls on a day that is not a Business Day, the Interest Payment Date will be postponed to the next day that is a Business Day, except that if that Business Day is in the next succeeding calendar month, the Interest Payment Date
will be the immediately preceding Business Day. Also, if a redemption date or the Stated Maturity of the Junior Subordinated Notes falls on a day that is not a Business Day, the payment of interest and principal will be made on the next succeeding
Business Day, and no interest on such payment will accrue for the period from and after a redemption date or the Stated Maturity. During the Floating Rate Period, if any LIBOR Rate Reset Date falls on a day that is not a Business Day, the LIBOR Rate
Reset Date will be postponed to the next day that is a Business Day, except that if that Business Day is in the next succeeding calendar month, the LIBOR Rate Reset Date will be the immediately preceding Business Day. During the Floating Rate
Period, the interest rate in effect on any LIBOR Rate Reset Date will be the applicable rate as reset on that date and the interest rate applicable to any other day will be the interest rate as reset on the immediately preceding LIBOR Rate Reset
Date. 
 2.6 Events of Default. An Event of Default as defined in the Indenture shall be an Event of Default with respect to the
Junior Subordinated Notes provided that the nonpayment of interest for so long as and to the extent that interest is permitted to be deferred pursuant to Article IV herein shall not be deemed to be a default in the payment of interest for the
purposes of Article VI of the Base Indenture and shall not otherwise be deemed an Event of Default with respect to the Junior Subordinated Notes. For the avoidance of doubt, and without prejudice to any other remedies that may be available to the
Trustee or the holders of the Junior Subordinated Notes, no breach by the Company of any covenant or obligation under the Indenture or the terms of the Junior Subordinated Notes shall be an Event of Default except those that are specifically
identified as an Event of Default under the Indenture. 
 ARTICLE III 
 REDEMPTION OF THE JUNIOR SUBORDINATED NOTES 
 3.1 Tax Event Redemption.
If a Tax Event shall occur and be continuing, the Company may redeem the Junior Subordinated Notes within 90 days after the occurrence of that Tax Event, in whole but not in part, before June 30, 2016, at the Tax Event Redemption Price plus
accrued and unpaid interest thereon, if any, to but excluding the redemption date. The Tax Event Redemption Price shall be paid prior to 2:30 p.m., New York City time, on the date of such redemption, provided that the Company shall deposit with the
Trustee an amount sufficient to pay the Tax Event Redemption Price by 11:00 a.m., New York City time, on the date such Tax Event Redemption Price is to be paid. The Company will notify the Trustee of the amount of the Tax Event Redemption Price
promptly after the calculation thereof, and the Trustee will not be responsible for such calculation. 
 3.2 Optional Redemption by
Company. The Company shall have the option to redeem the Junior Subordinated Notes at any time, in whole or in part, at 100% of their principal amount (the “Optional Redemption Price”) plus accrued and unpaid interest thereon, if any,
to but excluding the redemption date on one or more occasions on or after June 30, 2016. The Optional Redemption Price shall be paid prior to 2:30 p.m., New York City time, on the date of 

  

 9 

 
such redemption, provided that the Company shall deposit with the Trustee an amount sufficient to pay the Optional Redemption Price by 11:00 a.m., New
York City time, on the date such Optional Redemption Price is to be paid. 
 3.3 Notice of Redemption. Subject to Article III of the
Base Indenture, notice of any redemption pursuant to this Article III will be mailed at least 20 days but not more than 60 days before the redemption date to each holder of Junior Subordinated Notes to be redeemed at such holder’s registered
address. Unless the Company defaults in payment of the applicable redemption price, on and after the redemption date interest shall cease to accrue on such Junior Subordinated Notes called for redemption. 
 ARTICLE IV 
 OPTION TO DEFER INTEREST
PAYMENTS 
 4.1 Option to Defer Interest Payments. At the Company’s option, it may, on one or more occasions, defer payment
of all or part of the current and accrued interest otherwise due on the Junior Subordinated Notes for a period of up to 10 consecutive years (each period, commencing on the date that the first such interest payment would otherwise have been made, an
“Optional Deferral Period”). A deferral of interest payments may not extend beyond the Stated Maturity of the Junior Subordinated Notes, and the Company may not begin a new Optional Deferral Period until it has paid all accrued interest on
the Junior Subordinated Notes from the previous Optional Deferral Period. 
 Any deferred interest on the Junior Subordinated
Notes will accrue Additional Interest at a rate equal to the Coupon Rate then applicable to the Junior Subordinated Notes, to the extent permitted by applicable law. Once the Company pays all deferred interest payments on the Junior Subordinated
Notes, including any Additional Interest accrued on the deferred interest, it shall be entitled to again defer interest payments on the Junior Subordinated Notes as described above, but not beyond the Stated Maturity of the Junior Subordinated
Notes. 
 Unless the Company has paid all accrued and payable interest on the Junior Subordinated Notes, it will not and its
Subsidiaries shall not do any of the following: 
  

	 	•	 	declare or pay any dividends or distributions, or redeem, purchase, acquire, or make a liquidation payment on any of the Company’s capital stock; 

  

	 	•	 	make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any of its debt securities that rank on a parity with or junior to the Junior
Subordinated Notes (including debt securities of other series issued under the Base Indenture); or 

  

	 	•	 	make any guarantee payments on any guarantee of debt securities if the guarantee ranks on a parity with or junior to the Junior Subordinated Notes. 

  

 10 

 However, at any time, including during an Optional Deferral Period, the Company may:

  

	 	•	 	pay stock dividends or distributions in additional shares of its capital stock; 

  

	 	•	 	declare or pay a dividend in connection with the implementation of a shareholders’ rights plan, or issue stock under such a plan or repurchase such rights; and

  

	 	•	 	purchase common stock for issuance pursuant to any employee benefit plans or dividend reinvestment and direct stock purchase plans. 

 4.2 Notice of Extension. The Company shall give the Trustee written notice of any optional deferral of interest at least 10 Business Days and not
more than 60 Business Days prior to the applicable Interest Payment Date. The Trustee shall forward such notice promptly to each holder of record of Junior Subordinated Notes. 
 ARTICLE V 
 EXPENSES 
 5.1 Payment of Expenses. In connection with the offering, sale and issuance of the Junior Subordinated Notes, the Company shall: 
 (a) pay all costs and expenses relating to the offering, sale and issuance of the Junior Subordinated Notes, including commissions to the
Underwriters payable pursuant to the Underwriting Agreement and compensation of the Trustee under the Indenture in accordance with the provisions of Section 7.6 of the Base Indenture; and 
 (b) be primarily liable for any indemnification obligations arising with respect to the Underwriting Agreement. 
 5.2 Payment Upon Resignation or Removal. Upon termination of this First Supplemental Indenture or the Base Indenture or the removal or resignation
of the Trustee pursuant to Section 7.10 of the Base Indenture, the Company shall pay to the Trustee all amounts owed to it under Section 7.6 of the Base Indenture accrued to the date of such termination, removal or resignation. 

ARTICLE VI 
 FORM OF JUNIOR
SUBORDINATED NOTE 
 6.1 Form of Junior Subordinated Note. The Junior Subordinated Notes and the Trustee’s Certificate of
Authentication to be endorsed thereon are to be substantially in the form attached hereto as Exhibit A. 
  

 11 

 ARTICLE VII 
 ORIGINAL ISSUE OF JUNIOR SUBORDINATED NOTES 
 7.1 Original Issue of Junior Subordinated Notes.
Junior Subordinated Notes in the initial aggregate principal amount of up to $300,000,000 may be executed by the Company and delivered to the Trustee for authentication by it, and the Trustee shall thereupon authenticate and deliver said Junior
Subordinated Notes to or upon the written order of the Company, signed by any Officer of the Company, without any further corporate action by the Company. Additional Junior Subordinated Notes without limitation as to amount, and without the consent
of the holders the then Outstanding Junior Subordinated Notes, may also be authenticated and delivered in the manner provided in Section 2.1 of the Base Indenture. Any such additional Junior Subordinated Notes will have the same Stated Maturity
and other terms as those initially issued and shall be consolidated with and part of the same series of Notes as the Junior Subordinated Notes initially issued under this First Supplemental Indenture. 
 ARTICLE VIII 
 MISCELLANEOUS

 8.1 Ratification of Indenture; First Supplemental Indenture Controls. The Base 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 Base Indenture in the manner and to the extent herein and therein provided. The provisions of this First
Supplemental Indenture shall supersede the provisions of the Base Indenture to the extent the Base Indenture is inconsistent herewith. 
 8.2 Trustee Not Responsible for Recitals. The recitals herein contained are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this First Supplemental Indenture. 
 8.3 Governing Law. This First Supplemental Indenture and each
Junior Subordinated Note shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be governed by and construed in accordance with the laws of said State, without regard to the conflicts of
law principles thereof. 
 8.4 Separability. In case any one or more of the provisions contained in this First Supplemental Indenture
or in the Junior Subordinated Notes shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this First Supplemental Indenture or of
the Junior Subordinated Notes, but this First Supplemental Indenture and the Junior Subordinated Notes shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein. 
 8.5 Counterparts. This First Supplemental Indenture may be executed in any number of counterparts each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument. 
  

 12 

 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed
as of the date first above written. 
  

			
	DOMINION RESOURCES, INC.
		
	By:	 	  
		 	 Name:

		 	 Title:

	
	 JPMORGAN CHASE BANK N.A.,
 as Trustee

		
	By:	 	  
		 	 Name:

		 	 Title:

  

 13 

 EXHIBIT A 
 (FORM OF FACE OF JUNIOR SUBORDINATED NOTE) 
 [THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS NOTE IS EXCHANGEABLE FOR JUNIOR SUBORDINATED NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF
THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.]* 
 [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF [CEDE & CO.] OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO [CEDE & CO.], ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, [CEDE & CO.], HAS AN INTEREST HEREIN.]* 
 THE NOTES EVIDENCED HEREBY WILL BE ISSUED, AND MAY BE TRANSFERRED, ONLY IN BLOCKS HAVING A PRINCIPAL AMOUNT OF NOT LESS THAN $1,000. ANY TRANSFER, SALE
OR OTHER DISPOSITION OF SUCH NOTES IN A BLOCK HAVING A PRINCIPAL AMOUNT OF LESS THAN $1,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH NOTES FOR ANY PURPOSE,
INCLUDING BUT NOT LIMITED TO THE RECEIPT OF PAYMENTS IN RESPECT OF SUCH NOTES, AND SUCH TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH NOTES. 

	*	Insert in Global Notes. 

 DOMINION RESOURCES, INC. 
  

 [Up to]*
$                     
 2006 SERIES A ENHANCED JUNIOR SUBORDINATED 
 NOTE DUE JUNE 30, 2066 
 Dated:                      

 

			
	NUMBER             	  	[CUSIP NO:             ]

 Registered Holder: 
 DOMINION RESOURCES, INC., a corporation duly organized and existing under the laws of the Commonwealth of Virginia (herein referred to as the “Company,” which term includes any successor corporation under
the Indenture hereinafter referred to), for value received, hereby promises to pay to the Registered Holder named above, the principal sum [of
                    Dollars]**[specified in the Schedule annexed hereto]*** on June 30, 2066 (the “Stated
Maturity”), in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debt. The Company further promises to pay to the registered Holder of this note (the
“Note”) as hereinafter provided (a) interest on said principal sum (subject to deferral as set forth herein) at the rate of 7.50% per annum, in like coin or currency, semi-annually in arrears on the 30th day of June and December until June 30, 2016 and at the rate per annum equal to the Three-Month LIBOR Rate plus 2.825%
(determined in the manner set forth in the First Supplemental Indenture hereinafter referred to), reset quarterly on the LIBOR Rate Reset Dates, in like coin or currency, quarterly in arrears on the 30th day of March, June, September and December (each an “Interest Payment Date”) commencing December 30, 2006 in the first instance and
September 30, 2016 in the second instance, from the Interest Payment Date next preceding the date hereof to which interest has been paid or duly provided for (unless (i) no interest has yet been paid or duly provided for on this Note, in
which case from June 23, 2006, or (ii) the date hereof is before an Interest Payment Date but after the related Record Date (as defined below), in which case from such following Interest Payment Date; provided, however, that if the Company
shall default in payment of the interest due on such following Interest Payment Date, then from the next preceding Interest Payment Date to which interest has been paid or duly provided for or if no interest has yet been paid or duly provided for on
this Note, in which case from June 23, 2006), until the principal hereof is paid or duly provided for, plus (b) Additional Interest, as defined in 
  

	*	Insert in Global Notes. 

  

	**	Insert in Notes other than Global Notes. 

  

	***	Insert in Global Notes. 

  

 A-2 

 
the Indenture, to the extent permitted by applicable law, on any interest payment that is not made on the applicable Interest Payment Date, which shall
accrue at the then prevailing rate per annum borne by this Note, compounded semi-annually or quarterly, as applicable. 
 The interest so
payable will, subject to certain exceptions provided in the Indenture hereinafter referred to, be paid to the person in whose name this Note is registered at the close of business on the Record Date next preceding such Interest Payment Date. The
Record Date shall be the Business Day next preceding the Interest Payment Date, unless this Note is registered to a holder other than The Depository Trust Company or a nominee of The Depository Trust Company, in which case the Record Date will be
the fifteenth calendar day preceding such Interest Payment Date whether or not a Business Day. This Note may be presented for payment of principal and interest at the principal corporate trust office of JPMorgan Chase Bank, N.A., as paying agent for
the Company, maintained for that purpose in the Borough of Manhattan, The City of New York; provided, however, that payment of interest may be made at the option of the Company (i) by check mailed to such address of the person entitled thereto
as the address shall appear on the Register of the Notes or (ii) by transfer to an account maintained by the Person entitled thereto as specified in the Register, provided that proper transfer instructions have been received by the Record Date.
While this Note bears interest at a fixed rate, interest on this Note will be computed on the basis of a 360-day year of twelve 30-day months, and while this Note bears interest at the Three-Month LIBOR Rate, the amount of interest payable on this
Note for any period will be computed on the basis of the actual number of days in the relevant period divided by 360. 
 At the
Company’s option, it may, on one or more occasions, defer payment of all or part of the current and accrued interest otherwise due on the Junior Subordinated Notes for a period of up to 10 consecutive years (each period, commencing on the date
that the first such interest payment would otherwise have been made, an “Optional Deferral Period”). A deferral of interest payments may not extend beyond the Stated Maturity of the Junior Subordinated Notes, and the Company may not begin
a new Optional Deferral Period until it has paid all accrued interest on the Junior Subordinated Notes from the previous Optional Deferral Period. 
 Any deferred interest on the Junior Subordinated Notes will accrue Additional Interest at a rate equal to the Coupon Rate then applicable to the Junior Subordinated Notes, to the extent permitted by applicable law. Once the Company pays all
deferred interest payments on the Junior Subordinated Notes, including any Additional Interest accrued on the deferred interest, it shall be entitled to again defer interest payments on the Junior Subordinated Notes as described above, but not
beyond the Stated Maturity of the Junior Subordinated Notes. 
 Unless the Company has paid all accrued and payable interest on the Junior
Subordinated Notes, it will not and its Subsidiaries shall not do any of the following: 
  

	 	•	 	declare or pay any dividends or distributions, or redeem, purchase, acquire, or make a liquidation payment on any of the Company’s capital stock; 

  

	 	•	 	 make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any of its debt securities that rank on a parity with or 

  

 A-3 

	 	 
junior to the Junior Subordinated Notes (including debt securities of other series issued under the Base Indenture); or 

  

	 	•	 	make any guarantee payments on any guarantee of debt securities if the guarantee ranks on a parity with or junior to the Junior Subordinated Notes. 

 However, at any time, including during an Optional Deferral Period, the Company may: 
  

	 	•	 	pay stock dividends or distributions in additional shares of its capital stock; 

  

	 	•	 	declare or pay a dividend in connection with the implementation of a shareholders’ rights plan, or issue stock under such a plan or repurchase such rights; and

  

	 	•	 	purchase common stock for issuance pursuant to any employee benefit plans or dividend reinvestment and direct stock purchase plans. 

 The Company shall give the Trustee written notice of any optional deferral of interest at least 10 Business Days and not more than 60 Business Days prior
to the applicable Interest Payment Date. The Trustee shall forward such notice promptly to each holder of record of Junior Subordinated Notes. 
 This Note is issued pursuant to the Junior Subordinated Indenture II, dated as of June 1, 2006, between the Company, as issuer, and JPMorgan Chase Bank, N.A., a national banking association, as trustee, as supplemented by a First
Supplemental Indenture dated as of June 1, 2006 (as so supplemented and as further supplemented or amended from time to time, the “Indenture”). Reference is made to the Indenture for a description of the respective rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders (the word “Holder” or “Holders” meaning the registered holder or registered holders) of the Notes. Capitalized terms used herein
but not defined herein shall have the respective meanings assigned thereto in the Indenture. 
 The Notes of this series shall have an
initial aggregate principal amount of Three Hundred Million Dollars ($300,000,000). 
 The Notes evidenced by this Certificate may be
transferred or exchanged only in minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof, and any attempted transfer, sale or other disposition of Notes in a denomination of less than $1,000 shall be deemed to be void and
of no legal effect whatsoever. 
 The indebtedness of the Company evidenced by this Note, including the principal hereof and interest hereon,
is, to the extent and in the manner set forth in the Indenture, subordinate and junior in right of payment to the Company’s obligations to Holders of Priority Indebtedness of the Company and each Holder of this Note, by acceptance hereof,
agrees to and shall be bound by such provisions of the Indenture and all other provisions of the Indenture. 
 This Note shall not be valid
or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by or on behalf of the Trustee under the Indenture. 
  

 A-4 

 IN WITNESS WHEREOF, DOMINION RESOURCES, INC. has caused this instrument to be duly executed. 

 

									
	Dated:	 		 	 DOMINION RESOURCES, INC.

					
		 		 		 	 By:
	 	  
		 		 		 		 	 Name:

		 		 		 		 	 Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities, of the series designated herein, referred to in the within-mentioned Indenture. 
  

			
	 JPMORGAN CHASE BANK, N.A., as Trustee

		
	 By:
	 	  
		 	 Authorized Officer

  

 A-5 

 REVERSE OF NOTE 
 As provided in and subject to the provisions in the Indenture, the Company shall have the option to redeem the Notes of this series at any time on or after June 30, 2016, in whole or in part, at the Optional
Redemption Price plus accrued and unpaid interest thereon, if any, to but excluding the redemption date. In addition, if a Tax Event shall occur and be continuing, the Company may redeem the Notes of this series within 90 days after the occurrence
of that Tax Event, in whole but not in part, before June 30, 2016, at the Tax Event Redemption Price plus accrued and unpaid interest thereon, if any, to but excluding the redemption date. 
 In the case an Event of Default, as defined in the Indenture, shall have occurred and be continuing, the principal of all of the Notes of this series may
be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 
 Any consent or waiver by the Holder of this Note given as provided in the Indenture (unless effectively revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued in exchange, registration of transfer, or otherwise in lieu hereof irrespective of whether any notation of such consent or waiver is made upon this Note or such other Notes. 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 interest on this Note, at the places, at the respective times, at the
rates 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 may be registered on the Register of the Notes of this series upon surrender of this Note for registration of transfer at the offices maintained by the Company or its agent for such purpose, duly endorsed by the Holder
hereof or his attorney duly authorized in writing, 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, but
without payment of any charge other than a sum sufficient to reimburse the Company for any tax or other governmental charge incident thereto. Upon any such registration of transfer, a new Note or Notes of authorized denomination or denominations for
the same aggregate principal amount will be issued to the transferee in exchange herefor. 
 Prior to due presentment for registration of
transfer of this Note, the Company, the Trustee, and any agent of the Company or the Trustee may deem and treat the person in whose name this Note shall be registered upon the Register of the Notes of this series as the absolute owner of this Note
(whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon) for the purpose of receiving payment of or on account of the principal hereof and, subject to the provisions on the face hereof,
interest due hereon and for all other purposes; and neither the Company nor the Trustee nor any such agent shall be affected by any notice to the contrary. 
 No recourse shall be had for the payment of the principal of or interest on this Note, or for any claim based hereon or otherwise in respect hereof, or based on or in respect of the 

  

 A-6 

 
Indenture or any indenture supplemental thereto, against any stockholder, officer, director or employee, as such, past, present or future, of the Company or
of any successor corporation, either directly or through the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof
and as a part of the consideration for the issue hereof, expressly waived and released. 
 The Company and, by acceptance of this Note or a
beneficial interest in this Note, each holder hereof and any person acquiring a beneficial interest herein, agree that for United States federal, state and local tax purposes it is intended that this Note constitute indebtedness. 
 This Note shall be deemed to be a contract made under the laws of the State of New York (without regard to conflicts of laws principles thereof) and for
all purposes shall be governed by, and construed in accordance with, the laws of said State. 
  

 A-7 

	
	 FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .
	(please insert Social Security or other identifying number of assignee)
	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .
	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .
	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .

 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 the within Note and all rights thereunder, hereby irrevocably constituting and appointing 

	
	
	
	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .
	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .
	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .
	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .
	
	                                      
                                        
                                        
                                        
                                        
                                        
                  .

 agent to transfer said Note on the books of the Company, with full power of
substitution in the premises. 
 Dated:
                                 ,
         
  

	
	
	   
	

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

 A-8 

 [FORM OF SCHEDULE FOR ENDORSEMENTS ON GLOBAL NOTES TO REFLECT 
 CHANGES IN PRINCIPAL AMOUNT]* 
 The initial principal amount of this Note is:
$                         
 Changes to Principal Amount of Global Note 
  

							
	 Date
	  	 Principal Amount by which this
 Note is to be Decreased or
 Increased and the Reason for the
 Decrease or Increase
	  	 Remaining
 Principal Amount
 of this Note
	  	 Signature of
 Authorized
 Officer of Trustee

		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

	*	Insert Schedule in Global Notes. 

  

 A-9

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