Document:

THE HOLDER (AS DEFINED BELOW) OF THIS PURCHASE OPTION, BY ITS ACCEPTANCE HEREOF,
AGREES THAT IT WILL NOT SELL,  TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS
HEREIN  PROVIDED,  AND THE HOLDER OF THIS PURCHASE OPTION FURTHER AGREES THAT IT
WILL NOT SELL, TRANSFER,  ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR
A PERIOD OF ONE YEAR  FOLLOWING THE EFFECTIVE  DATE (AS DEFINED BELOW) TO ANYONE
OTHER THAN (I)  SANDLER  O'NEILL &  PARTNERS,  L.P.  ("SANDLER  O'NEILL")  OR AN
UNDERWRITER  OR A SELECTED  DEALER IN  CONNECTION  WITH THE OFFERING (AS DEFINED
BELOW), OR (II) A BONA FIDE OFFICER OR PARTNER OF SANDLER O'NEILL OR OF ANY SUCH
UNDERWRITER OR SELECTED DEALER.

THIS  PURCHASE  OPTION  IS NOT  EXERCISABLE  PRIOR  TO  THE  LATER  OF  (I)  THE
ACQUISITION BY WESTERN UNITED  FINANCIAL  CORPORATION  (THE "COMPANY") OF ONE OR
MORE BANKS,  THRIFTS AND THEIR RESPECTIVE  HOLDING  COMPANIES  THROUGH A MERGER,
CAPITAL STOCK EXCHANGE, ASSET ACQUISITION, EXCHANGEABLE SHARE TRANSACTION, STOCK
PURCHASE OR OTHER SIMILAR BUSINESS  COMBINATION (A "BUSINESS  COMBINATION")  AND
(II) _______________, 2008 [ONE YEAR FROM THE EFFECTIVE DATE OF THE REGISTRATION
STATEMENT] (THE "EXERCISE DATE"). VOID AFTER 5:00 P.M. NEW YORK CITY LOCAL TIME,
__________________, 2011 [FOUR YEARS FROM THE EFFECTIVE DATE OF THE REGISTRATION
STATEMENT].

                              UNIT PURCHASE OPTION

                               FOR THE PURCHASE OF

                                  312,500 UNITS

                                       OF

                      WESTERN UNITED FINANCIAL CORPORATION

1. PURCHASE OPTION.

            THIS CERTIFIES  THAT, in  consideration  of $100.00 duly paid to the
Company by or on behalf of , as registered  owner of this  Purchase  Option (the
"HOLDER"),  the  Holder is  entitled,  at any time or from time to time upon the
later  of  the  consummation  by  the  Company  of a  Business  Combination  and
____________,  2008  [ONE  YEAR  FROM  THE  EFFECTIVE  DATE OF THE  REGISTRATION
STATEMENT] (the "COMMENCEMENT  DATE"), and at or before 5:00 p.m., New York City
local time, ____________,  2011 (the "EXPIRATION DATE") (four (4) years from the
effective  date  (the  "EFFECTIVE  DATE")  of the  registration  statement  (the
"REGISTRATION  STATEMENT") pursuant to which units (the "UNITS") of the Company,
each Unit  consisting  of one share of common  stock of the  Company,  par value
$0.01 per share (the "COMMON STOCK"), and one warrant (a "WARRANT")  exercisable
for one  share  of  Common  Stock,  are  offered  for  sale to the  public  (the
"OFFERING")),  but not thereafter,  to subscribe for,  purchase and receive,  in
whole or in part, up to  three-hundred  twelve  thousand five hundred  (312,500)
Units.  Each  Warrant is the same as the  warrants  included  in the Units being
registered  for sale to the  public by way of the  Registration  Statement  (the
"PUBLIC  WARRANTS"),  except that the exercise price of the Warrant is $7.50 per
share.  The form of Warrant is attached  hereto as Exhibit A. If the  Expiration
Date is a day on which banking institutions are authorized by law to close, then
this Purchase  Option may be exercised on the next  succeeding  day which is not
such a day, in accordance with the terms herein. During the period ending on the
Expiration  Date, the Company agrees not to take any action that would terminate
the

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Purchase  Option.  This Purchase  Option is initially  exercisable at $10.00 per
Unit so purchased;  provided,  however,  that upon the  occurrence of any of the
events  specified  in  Section 2 hereof,  the rights  granted  by this  Purchase
Option,  including  the  exercise  price per Unit and the  number of Units  (and
shares of Common Stock and Warrants) to be received upon such exercise, shall be
adjusted as therein specified.  The term "EXERCISE PRICE" shall mean the initial
exercise price or the adjusted exercise price, depending on the context.

2. ADJUSTMENTS.

            2.1  ADJUSTMENTS  TO EXERCISE  PRICE AND NUMBER OF  SECURITIES.  The
Exercise Price and the number of Units  underlying the Purchase  Option shall be
subject to adjustment from time to time as hereinafter set forth:

                  2.1.1 STOCK  DIVIDENDS - SPLIT-UPS.  If after the date hereof,
and subject to the  provisions of Section 2.3 below,  the number of  outstanding
shares of Common  Stock is increased  by a stock  dividend  payable in shares of
Common Stock or by a split-up of shares of Common Stock or other similar  event,
then,  on the  effective  date  thereof,  the  number of shares of Common  Stock
underlying  each of the  Units  purchasable  hereunder  shall  be  increased  in
proportion to such increase in outstanding  shares.  In such case, the number of
shares of Common Stock,  and the exercise price applicable  thereto,  underlying
the  Warrants  underlying  each of the  Units  purchasable  hereunder  shall  be
adjusted in  accordance  with the terms of the  Warrants.  For  example,  if the
Company  declares a two-for-one  stock dividend and at the time of such dividend
this  Purchase  Option is for the  purchase of one Unit at $10.00 per whole Unit
(each Warrant  underlying  the Units is exercisable  for $7.50 per share),  upon
effectiveness  of the dividend,  this Purchase  Option will be adjusted to allow
for the purchase of one Unit at $10.00 per Unit,  each Unit entitling the holder
to receive two shares of Common Stock and two Warrants (each Warrant exercisable
for $3.75 per share).

                  2.1.2  EXTRAORDINARY  DIVIDEND.  If the  Company,  at any time
while this Purchase Option is outstanding and unexpired, shall pay a dividend or
make a distribution in cash, securities or other assets to the holders of Common
Stock,  other than (i) as  described  in Sections  2.1.1,  2.1.3 or 2.1.4,  (ii)
regular  quarterly or other  periodic  dividends,  (iii) in connection  with the
conversion  rights of the  holders  of Common  Stock  upon  consummation  of the
Company's initial Business Combination, or (iv) in connection with the Company's
liquidation and the  distribution of its assets upon its failure to consummate a
Business Combination (any such non-excluded event being referred to herein as an
"EXTRAORDINARY DIVIDEND"), then the Exercise Price shall be decreased, effective
immediately  after the effective  date of such  Extraordinary  Dividend,  by the
amount of cash  and/or the fair market  value (as  determined  by the  Company's
Board of  Directors,  in good faith) of any  securities  or other assets paid on
each share of Common Stock in respect of such Extraordinary Dividend.

                  2.1.3  AGGREGATION  OF SHARES.  If after the date hereof,  and
subject to the  provisions of Section 2.3, the number of  outstanding  shares of
Common Stock is decreased by a consolidation, combination or reclassification of
shares of Common Stock or other  similar  event,  then,  on the  effective  date
thereof,  the  number of shares of  Common  Stock  underlying  each of the Units
purchasable  hereunder  shall be decreased  in  proportion  to such  decrease in
outstanding  shares. In such case, the number of shares of Common Stock, and the
exercise price applicable  thereto,  underlying the Warrants  underlying each of
the Units  purchasable  hereunder shall be adjusted in accordance with the terms
of the Warrants.

                  2.1.4 REPLACEMENT OF SECURITIES UPON  REORGANIZATION,  ETC. In
case of any  reclassification  or  reorganization  of the outstanding  shares of
Common  Stock other than a change  covered by Section  2.1.1 or 2.1.2  hereof or
that solely affects the par value of such shares of

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Common Stock, or in the case of any merger or  consolidation of the Company with
or into another  corporation  (other than a consolidation or merger in which the
Company  is  the  continuing  corporation  and  that  does  not  result  in  any
reclassification  or reorganization of the outstanding  shares of Common Stock),
or in the case of any sale or conveyance to another corporation or entity of the
property  of the  Company as an  entirety  or  substantially  as an  entirety in
connection  with which the  Company is  dissolved,  the Holder of this  Purchase
Option shall have the right  thereafter  (until the  expiration  of the right of
exercise of this Purchase Option) to receive upon the exercise  hereof,  for the
same aggregate Exercise Price payable hereunder immediately prior to such event,
the  kind and  amount  of  shares  of stock  or  other  securities  or  property
(including cash) receivable upon such reclassification,  reorganization,  merger
or consolidation,  or upon a dissolution following any such sale or transfer, by
a holder of the number of shares of Common Stock of the Company  obtainable upon
exercise of this Purchase Option and the underlying  Warrants  immediately prior
to such event; and if any reclassification also results in a change in shares of
Common Stock covered by Section 2.1.1 or 2.1.2,  then such  adjustment  shall be
made pursuant to Sections 2.1.1, 2.1.2 and this Section 2.1.4. The provisions of
this  Section  2.1.4  shall  similarly  apply to  successive  reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

                  2.1.5  CHANGES  IN  FORM  OF  PURCHASE  OPTION.  This  form of
Purchase  Option  need not be changed  because of any  change  pursuant  to this
Section,  and  Purchase  Options  issued  after  such  change may state the same
Exercise  Price  and the same  number  of Units as are  stated  in the  Purchase
Options  initially  issued  pursuant  to  this  form  of  Purchase  Option.  The
acceptance  by any Holder of the issuance of new Purchase  Options  reflecting a
required  or  permissive  change  shall not be deemed to waive any  rights to an
adjustment occurring after the Commencement Date or the computation thereof.

                  2.1.6 ADJUSTMENTS OF WARRANTS.  To the extent the price of the
Warrants is lowered  pursuant to Section 3.1 of that certain Warrant  Agreement,
dated as of  ________________,  2006,  between the Company and Wells Fargo Bank,
N.A.  (the  "WARRANT  AGREEMENT"),  the  price of the  Warrants  underlying  the
Purchase Option shall be reduced on identical terms,  subject to any limitations
and conditions that may be imposed by NASD Corporate Financing Rule 2710 and any
such  reduction must remain in effect for at least twenty (20) business days. To
the extent the duration of the  Warrants is extended  pursuant to Section 3.2 of
the Warrant  Agreement,  the  duration of the Warrants  underlying  the Purchase
Option shall be extended on identical terms, subject to any limitations that may
be imposed by NASD Corporate Financing Rule 2710.

            2.2 SUBSTITUTE  PURCHASE OPTION. In case of any consolidation of the
Company  with,  or merger of the Company  with,  or merger of the Company  into,
another  corporation (other than a consolidation or merger which does not result
in  any  reclassification  or  change  of the  outstanding  Common  Stock),  the
corporation  formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental  Purchase Option  providing that the Holder shall have
the right  thereafter  (until the stated  expiration of such Purchase Option) to
receive, upon exercise of such Purchase Option, the kind and amount of shares of
stock and other  securities and property  receivable upon such  consolidation or
merger,  by a holder of the number of shares of Common  Stock of the Company for
which such Purchase Option might have been exercised  immediately  prior to such
consolidation, merger, sale or transfer. Such supplemental Purchase Option shall
provide for adjustments which shall be identical to the adjustments  provided in
Section  2.  The  above  provision  of this  Section  shall  similarly  apply to
successive consolidations or mergers.

            2.3  ELIMINATION OF FRACTIONAL  INTERESTS.  The Company shall not be
required to issue certificates  representing fractions of shares of Common Stock
or Warrants upon the exercise of the Purchase  Option,  nor shall it be required
to issue scrip or pay cash in lieu of any fractional

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interests,  it being the intent of the  parties  that all  fractional  interests
shall be  eliminated  by rounding any fraction up to the nearest whole number of
Warrants, shares of Common Stock or other securities, properties or rights.

3. EXERCISE.

            3.1 EXERCISE  FORM. In order to exercise this Purchase  Option,  the
exercise form attached hereto must be duly executed,  completed and delivered to
the  Company,  together  with this  Purchase  Option and payment of the Exercise
Price for the Units being  purchased  payable in cash or by  certified  check or
official bank check. If the subscription  rights represented hereby shall not be
exercised at or before the Expiration  Date,  this Purchase  Option shall become
and be void without further force or effect,  and all rights  represented hereby
shall cease and expire.

            3.2 CASHLESS EXERCISE.

                  3.2.1  DETERMINATION OF AMOUNT.  In lieu of the payment of the
Exercise Price  multiplied by the number of Units for which this Purchase Option
is  exercisable  (and in lieu of being  entitled  to  receive  Common  Stock and
Warrants) in the manner required by Section 3.1, the Holder shall have the right
(but not the obligation) to convert any  exercisable but unexercised  portion of
this Purchase Option into Units ("CONVERSION  RIGHT") as follows:  upon exercise
of the  Conversion  Right,  the  Company  shall  deliver to the Holder  (without
payment by the Holder of any of the Exercise Price in cash) that number of Units
(or that number of shares of Common Stock and Warrants comprising that number of
Units)  equal to the  quotient  obtained by  dividing  (x) the Value (as defined
below) of the portion of the Purchase  Option being converted by (y) the Current
Market  Value (as defined  below).  The  "VALUE" of the portion of the  Purchase
Option being  converted shall equal the remainder  derived from  subtracting (a)
(i) the Exercise  Price  multiplied by (ii) the number of Units  underlying  the
portion of this  Purchase  Option being  converted  from (b) the Current  Market
Value of a Unit multiplied by the number of Units  underlying the portion of the
Purchase Option being converted. As used herein, the term "CURRENT MARKET VALUE"
per Unit at any date means:  (A) in the event that  neither the Units nor Public
Warrants are still  trading,  the  remainder  derived from  subtracting  (x) the
exercise  price of the  Warrants  multiplied  by the  number of shares of Common
Stock  issuable upon exercise of the Warrants  underlying  one Unit from (y) (i)
the Current  Market Price of the Common Stock  multiplied  by (ii) the number of
shares of Common Stock  underlying  one Unit,  which shall include the shares of
Common Stock  underlying  the Warrants  included in such Unit;  (B) in the event
that the Units,  Common Stock and Public Warrants are still trading,  (i) if the
Units are  listed on a  national  securities  exchange  or quoted on the  Nasdaq
National Market, Nasdaq SmallCap Market or NASD OTC Bulletin Board (or successor
exchange),  the last sale price of the Units in the principal trading market for
the Units as reported by the  exchange,  Nasdaq or the NASD, as the case may be,
on the last trading day preceding the date in question; or (ii) if the Units are
not listed on a national  securities  exchange or quoted on the Nasdaq  National
Market,  Nasdaq  SmallCap  Market or the NASD OTC Bulletin  Board (or  successor
exchange),  but is traded in the residual  over-the-counter  market, the closing
bid price for Units on the last trading day  preceding  the date in question for
which such quotations are reported by the Pink Sheets,  LLC or similar publisher
of such  quotations;  and (C) in the event that the Units are not still  trading
but the Common Stock and Public Warrants underlying the Units are still trading,
the Current Market Price of the Common Stock plus the product of (x) the Current
Market Price of the Public Warrants and (y) the number of shares of Common Stock
underlying the Warrants  included in one Unit. The "CURRENT  MARKET PRICE" shall
mean (i) if the Common Stock (or Public Warrants,  as the case may be) is listed
on a  national  securities  exchange  or quoted on the Nasdaq  National  Market,
Nasdaq SmallCap Market or NASD OTC Bulletin Board (or successor  exchange),  the
last sale  price of the  Common  Stock (or  Public  Warrants)  in the  principal
trading  market for the Common Stock as reported by the exchange,  Nasdaq or the
NASD,  as the  case  may be,  on the  last  trading  day  preceding  the date in
question; (ii) if the Common Stock (or

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Public  Warrants,  as the case may be) is not  listed on a  national  securities
exchange or quoted on the Nasdaq National Market,  Nasdaq SmallCap Market or the
NASD OTC Bulletin Board (or successor  exchange),  but is traded in the residual
over-the-counter  market,  the closing bid price for the Common Stock (or Public
Warrants) on the last trading day  preceding the date in question for which such
quotations  are  reported by the Pink Sheets,  LLC or similar  publisher of such
quotations;  and (iii) if the fair market  value of the Common  Stock  cannot be
determined  pursuant  to clause  (i) or (ii)  above,  such price as the Board of
Directors of the Company shall determine, in good faith. In the event the Public
Warrants  have  expired  and are no  longer  exercisable,  no  "Value"  shall be
attributed to the Warrants underlying this Purchase Option. Additionally, in the
event that this  Purchase  Option is exercised  pursuant to this Section 3.2 and
the Public  Warrants  are still  trading,  the  "Value"  shall be reduced by the
difference  between the Warrant  Exercise  Price and the  exercise  price of the
Public  Warrants  multiplied  by the  number of  Warrants  underlying  the Units
included in the portion of this Purchase Option being converted.

                  3.2.2 MECHANICS OF CASHLESS  EXERCISE.  The cashless  exercise
right  described  in this  Section 3.2 (the  "CASHLESS  EXERCISE  RIGHT") may be
exercised by the Holder on any business  day on or after the  Commencement  Date
and not later than the Expiration  Date by delivering  the Purchase  Option with
the duly  executed  exercise  form  attached  hereto with the cashless  exercise
section  completed to the Company,  exercising  the Cashless  Exercise Right and
specifying  the total number of Units the Holder will purchase  pursuant to such
Cashless Exercise Right.

4. TRANSFER.

            4.1 GENERAL RESTRICTIONS. The Holder of this Purchase Option, by its
acceptance hereof,  agrees that it will not sell,  transfer,  assign,  pledge or
hypothecate,  or enter into any  hedging,  short sale,  derivative,  put or call
transaction  that would result in the effective  economic  disposition  of, this
Purchase  Option for a period of one year following the Effective Date to anyone
other  than (i)  Sandler  O'Neill  or an  underwriter  or a  selected  dealer in
connection with the Offering,  or (ii) a bona fide officer or partner of Sandler
O'Neill or of any such  underwriter or selected  dealer.  On and after the first
anniversary  of the Effective  Date,  transfers to others may be made subject to
compliance with or exemptions from applicable  securities laws. In order to make
any permitted assignment,  the Holder must deliver to the Company the assignment
form  attached  hereto duly executed and  completed,  together with the Purchase
Option  and  payment  of all  transfer  taxes,  if any,  payable  in  connection
therewith.  The  Company  shall  within five (5)  business  days  transfer  this
Purchase  Option on the books of the Company and shall execute and deliver a new
Purchase  Option  of  like  tenor  to  the  appropriate   assignee(s)  expressly
evidencing  the right to  purchase  the  aggregate  number of Units  purchasable
hereunder  or such portion of such number as shall be  contemplated  by any such
assignment.

            4.2  RESTRICTIONS  IMPOSED BY THE ACT. The  securities  evidenced by
this Purchase  Option shall not be transferred  unless and until (i) the Company
has  received an opinion of counsel for the Holder  that the  securities  may be
transferred  pursuant to an exemption from registration under the Securities Act
of 1933,  as amended  (the "ACT") and  applicable  state  securities  laws,  the
availability  of which is  established  to the  reasonable  satisfaction  of the
Company (the  Company  hereby  agreeing  that the opinion of Jenkens & Gilchrist
shall be deemed satisfactory  evidence of the availability of an exemption),  or
(ii) a registration statement or a post-effective  amendment to the Registration
Statement relating to such securities has been filed by the Company and declared
effective by the  Securities  and Exchange  Commission  (the  "COMMISSION")  and
compliance with applicable state securities law has been established.

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<PAGE>

5. NEW PURCHASE OPTIONS TO BE ISSUED.

            5.1 PARTIAL  EXERCISE OR TRANSFER.  Subject to the  restrictions  in
Section 4 hereof,  this Purchase Option may be exercised or assigned in whole or
in part.  In the event of the exercise or assignment  hereof in part only,  upon
surrender  of this  Purchase  Option for  cancellation,  together  with the duly
executed  exercise or assignment  form and funds  sufficient to pay any Exercise
Price and/or transfer tax, the Company shall cause to be delivered to the Holder
without  charge a new Purchase  Option of like tenor to this Purchase  Option in
the name of the Holder evidencing the right of the Holder to purchase the number
of Units  purchasable  hereunder as to which this  Purchase  Option has not been
exercised or assigned.

            5.2 LOST  CERTIFICATE.  Upon  receipt  by the  Company  of  evidence
satisfactory  to it of the  loss,  theft,  destruction  or  mutilation  of  this
Purchase Option and of reasonably satisfactory indemnification or the posting of
a bond,  the Company  shall  execute and deliver a new  Purchase  Option of like
tenor and date. Any such new Purchase  Option executed and delivered as a result
of such loss,  theft,  mutilation or destruction  shall  constitute a substitute
contractual obligation on the part of the Company.

6. REGISTRATION RIGHTS.

            6.1 DEMAND REGISTRATION.

                  6.1.1  GRANT  OF  RIGHT.  Upon  written  demand  (the  "DEMAND
NOTICE") of the  Holder(s) of at least 51% in interest of the  Purchase  Options
and/or the  underlying  Units and/or the  underlying  securities  (the "MAJORITY
HOLDERS"),  the Company agrees to register (the "DEMAND REGISTRATION") under the
Act on one  occasion,  all of the  Purchase  Options  requested  by the Majority
Holders in the Demand Notice and all of the securities  underlying such Purchase
Options,  including  the Units,  the Common  Stock,  the Warrants and the Common
Stock  underlying the Warrants  (collectively,  the  "REGISTRABLE  SECURITIES").
Within sixty (60) days after receipt of the Demand Notice, the Company will file
a registration  statement for use in an offering of the  Registrable  Securities
from  time-to-time or a post-effective  amendment to the Registration  Statement
covering all of the  Registrable  Securities that will permit an offering of the
Registrable  Securities from time-to-time and use its reasonable efforts to have
such registration  statement or post-effective  amendment  declared effective as
soon as possible thereafter. The demand for registration may be made at any time
during a period of five (5) years  beginning on the Effective  Date.  The Demand
Notice shall specify the intended  method(s) of  distribution of the Registrable
Securities.  The Company  will notify all  holders of  Purchase  Options  and/or
Registrable  Securities  of the  receipt of such Demand  Notice.  Each holder of
Registrable  Securities  who wishes to include all or a portion of such holder's
Registrable  Securities in the Demand  Registration  (each such holder including
shares of Registrable  Securities in such  registration,  a "DEMANDING  HOLDER")
shall so notify the Company within ten (10) days after the receipt by the holder
of the notice from the Company.  Upon any such request,  the  Demanding  Holders
shall be entitled to have their  Registrable  Securities  included in the Demand
Registration, subject to any reductions pursuant to Section 6.1.4.

                  6.1.2 EFFECTIVE REGISTRATION. A registration will not count as
a Demand Registration until the registration statement filed with the Commission
with respect to such Demand  Registration  has been  declared  effective and the
Company has complied with all of its obligations under this Purchase Option with
respect thereto;  provided,  however, that if, after such registration statement
has been declared effective,  the offering of Registrable Securities pursuant to
a Demand  Registration is interfered with by any stop order or injunction of the
Commission or any other governmental agency or court, the registration statement
with respect to such Demand Registration will

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<PAGE>

be deemed not to have been declared  effective  unless and until such stop order
or injunction is removed, rescinded or otherwise terminated.

                  6.1.3 UNDERWRITTEN  OFFERING. If the Majority Holders so elect
and such  holders  so advise  the  Company  as part of the  Demand  Notice,  the
offering of all or any portion of the  Registrable  Securities  pursuant to such
Demand  Registration  shall be in the  form of one  underwritten  offering.  All
Demanding  Holders  proposing  to  distribute  their  securities   through  such
underwriting  shall enter into an underwriting  agreement in customary form with
the underwriter or underwriters  selected for such  underwriting by the Majority
Holders, which underwriter or underwriters shall be reasonably acceptable to the
Company.

                  6.1.4  REDUCTION OF OFFERING.  If the managing  underwriter or
underwriters for a Demand  Registration  that is to be an underwritten  offering
advises the Company and the Demanding  Holders in writing that the dollar amount
or amount of Registrable  Securities which the Demanding  Holders desire to sell
pursuant to the underwritten  offering,  taken together with all other shares of
Common  Stock or other  securities  which the  Company  desires  to sell and the
shares of Common Stock or other securities, if any, as to which registration has
been requested pursuant to written  contractual  piggy-back  registration rights
held by other  securityholders  of the Company  who desire to sell,  exceeds the
maximum dollar amount or maximum  number of securities  that can be sold in such
offering without  adversely  affecting the proposed  offering price, the timing,
the  distribution  method or the  probability  of success of such offering (such
maximum  dollar  amount or maximum  number of  securities,  as  applicable,  the
"MAXIMUM  NUMBER  OF  SECURITIES"),  then  the  Company  shall  include  in such
registration:   (i)  first,  the  Registrable  Securities  as  to  which  Demand
Registration  has  been  requested  by  the  Demanding   Holders  that  want  to
participate  in such  underwritten  offering  (pro rata in  accordance  with the
number of shares  that  each such  Person  has  requested  be  included  in such
registration,  regardless of the number of shares held by each such Person (such
proportion  is  referred  to herein  as "PRO  RATA"))  that can be sold  without
exceeding the Maximum Number Of Securities;  (ii) second, to the extent that the
Maximum  Number Of Securities  has not been reached  under the foregoing  clause
(i), the shares of Common Stock or other  securities that the Company desires to
sell that can be sold without exceeding the Maximum Number Of Securities;  (iii)
third,  to the extent that the Maximum Number Of Securities has not been reached
under the  foregoing  clauses (i) and (ii),  the shares of Common Stock or other
securities  registrable  pursuant  to  the  terms  of  the  Registration  Rights
Agreement between the Company and the initial investors in the Company, dated as
of _________,  2007 (the  "REGISTRATION  RIGHTS  AGREEMENT" and such registrable
securities, the "INVESTOR SECURITIES") as to which "PIGGY-BACK" registration has
been  requested  by the  holders  thereof,  pro rata,  that can be sold  without
exceeding the Maximum Number Of Securities;  and (iv) fourth, to the extent that
the Maximum  Number Of  Securities  have not been  reached  under the  foregoing
clauses (i), (ii), and (iii), the shares of Common Stock or other securities for
the account of other persons that the Company is obligated to register  pursuant
to  written  contractual  arrangements  with such  persons  and that can be sold
without exceeding the Maximum Number Of Securities.

                  6.1.5   WITHDRAWAL.   If   a   majority-in-interest,   on   an
as-converted to Common Stock basis, of the Demanding  Holders  disapprove of the
terms  of  any  underwriting  or are  not  entitled  to  include  all  of  their
Registrable  Securities  in  any  offering,  such  majority-in-interest  of  the
Demanding  Holders may elect to withdraw  from such  offering by giving  written
notice to the Company and the  underwriter or  underwriters  of their request to
withdraw prior to the effectiveness of the registration statement filed with the
Commission with respect to such Demand Registration.

                  6.1.6  TERMS.  The  Company  shall bear all fees and  expenses
attendant to registering the Registrable  Securities,  including the expenses of
one legal counsel  selected by the Holders to represent them in connection  with
the sale of the Registrable Securities, but the Holders shall pay any

                                       7
<PAGE>

and all  underwriting  commissions.  The  Company  agrees to use its  reasonable
efforts to qualify or register the Registrable  Securities in such states as are
reasonably requested by the Majority Holder(s);  provided,  however,  that in no
event shall the Company be required to register the Registrable  Securities in a
state in which such registration  would cause (i) the Company to be obligated to
qualify to do business in such state,  or would  subject the Company to taxation
as a  foreign  corporation  doing  business  in such  jurisdiction  or (ii)  the
principal  stockholders of the Company to be obligated to escrow their shares of
capital stock of the Company.  The Company shall use its  reasonable  efforts to
cause any registration  statement or post-effective  amendment filed pursuant to
the demand rights  granted under  Section  6.1.1 to remain  effective  until the
earlier of (a) the time all Registrable  Securities covered by such registration
statement or  post-effective  amendment have been disposed of in accordance with
the intended  method(s) of disposition  set forth in the Demand Notice,  and (b)
the  expiration of the Warrants in accordance  with the terms and  conditions of
the Warrant Agreement.

                  6.1.7  PERMITTED  DELAYS.  The  Company  shall be  entitled to
postpone the filing of a registration statement under this Section 6.1 if (a) at
any time prior to the filing of the registration statement,  the Company's Board
of  Directors  determines,  in its  good  faith  business  judgment,  that  such
registration  and offering would  materially and adversely affect any financing,
acquisition,  corporate  reorganization or other material transaction  involving
the  Company,  and (b) the Company  delivers to the  Demanding  Holders  written
notice  thereof  within  ten (10)  business  days of the  date of the  Company's
receipt of the Demand Notice;  provided that such period of postponement may not
exceed 45 days.

            6.2 PIGGY-BACK REGISTRATION.

                  6.2.1 PIGGY-BACK  RIGHTS.  If at any time during the seven (7)
year period  commencing  on the  Effective  Date the Company  proposes to file a
registration  statement  under the Act with  respect  to an  offering  of equity
securities,  or securities or other obligations exercisable or exchangeable for,
or  convertible  into,  equity  securities,  by the  Company for its own account
and/or  for  stockholders  of  the  Company  for  their  account  (other  than a
registration  statement on Form S-4 or S-8 (or any  successor  or  substantially
similar  form),  or in  connection  with (i) an  employee  stock  option,  stock
purchase or compensation  plan or securities  issued or issuable pursuant to any
such plan, (ii) a dividend  reinvestment  plan or (iii) an offering of debt that
is convertible  into equity  securities of the Company),  then the Company shall
(x) give written notice of such filing to the holders of Registrable Securities,
which notice shall  describe the amount and type of securities to be included in
such  offering,  the  intended  method(s) of  distribution,  and the name of the
proposed managing underwriter or underwriters,  if any, of the offering, and (y)
offer to the holders of Registrable Securities in such notice the opportunity to
register  the sale of such number of shares of  Registrable  Securities  as such
holders may request in writing  within five (5) days  following  receipt of such
notice (a "PIGGY-BACK  REGISTRATION").  The Company shall cause such Registrable
Securities  to be included  in such  registration  and shall use its  reasonable
efforts  to  cause  the  managing  underwriter  or  underwriters  of a  proposed
underwritten  offering  to permit the  Registrable  Securities  requested  to be
included in a Piggy-Back  Registration  on the same terms and  conditions as any
similar securities of the Company and to permit the sale or other disposition of
such  Registrable  Securities  in  accordance  with the  intended  method(s)  of
distribution  thereof.  All  holders  of  Registrable  Securities  proposing  to
distribute their securities  through a Piggy-Back  Registration that involves an
underwriter  or  underwriters  shall  enter into an  underwriting  agreement  in
customary form with the underwriter or underwriters selected for such Piggy-Back
Registration.

                  6.2.2  REDUCTION OF OFFERING.  If the managing  underwriter or
underwriters  for a  Piggy-Back  Registration  that  is  to  be an  underwritten
offering  advises  the  Company and the  holders of  Registrable  Securities  in
writing that the dollar amount or amount of securities which the Company desires
to sell,  taken together with securities,  if any, as to which  registration has
been

                                       8
<PAGE>

demanded  pursuant to written  contractual  arrangements with persons other than
the holders of Registrable  Securities hereunder,  the Registrable Securities as
to which  registration  has been  requested  under  this  Section  6.2,  and the
securities,  if any, as to which registration has been requested pursuant to the
written contractual piggy-back  registration rights of other stockholders of the
Company,  exceeds  the Maximum  Number Of  Securities,  then the  Company  shall
include in any such registration:

                  (a)  If the  registration  is  undertaken  for  the  Company's
account:  (i) first,  the shares of Common  Stock or other  securities  that the
Company desires to sell that can be sold without exceeding the Maximum Number Of
Securities; (ii) second, to the extent that the Maximum Number Of Securities has
not been reached under the  foregoing  clause (i), the shares of Common Stock or
other  securities,  if any,  comprised of  Registrable  Securities  and Investor
Securities,  as to  which  registration  has  been  requested  pursuant  to  the
applicable written contractual  piggy-back  registration rights of such security
holders,  pro rata,  that can be sold without  exceeding  the Maximum  Number Of
Securities; and (iii) third, to the extent that the Maximum Number Of Securities
has not been reached  under the  foregoing  clauses (i) and (ii),  the shares of
Common  Stock or other  securities  for the  account of other  persons  that the
Company is  obligated  to register  pursuant to written  contractual  piggy-back
registration rights with such persons and that can be sold without exceeding the
Maximum Number Of Securities;

                  (b) If the registration is a "demand" registration  undertaken
at the demand of holders of Investor Securities, (i) first, the shares of Common
Stock or other  securities for the account of the demanding  persons,  Pro Rata,
that can be sold  without  exceeding  the  Maximum  Number Of  Securities;  (ii)
second, to the extent that the Maximum Number Of Securities has not been reached
under the foregoing  clause (i), the shares of Common Stock or other  securities
that the Company desires to sell that can be sold without  exceeding the Maximum
Number Of  Securities;  (iii)  third,  to the extent that the Maximum  Number Of
Securities  has not been reached under the foregoing  clauses (i) and (ii),  the
shares of Registrable  Securities,  pro rata, as to which  registration has been
requested  pursuant to the terms hereof,  that can be sold without exceeding the
Maximum  Number Of Securities;  and (iv) fourth,  to the extent that the Maximum
Number Of Securities has not been reached under the foregoing  clauses (i), (ii)
and (iii),  the shares of Common  Stock or other  securities  for the account of
other  persons  that the Company is  obligated  to register  pursuant to written
contractual  arrangements with such persons,  that can be sold without exceeding
the Maximum Number Of Securities; and

                  (c) If the registration is a "demand" registration  undertaken
at the demand of persons other than either the holders of Registrable Securities
or of  Investor  Securities,  (i)  first,  the  shares of Common  Stock or other
securities  for the account of the  demanding  persons  that can be sold without
exceeding the Maximum Number Of Securities;  (ii) second, to the extent that the
Maximum  Number Of Securities  has not been reached  under the foregoing  clause
(i), the shares of Common Stock or other  securities that the Company desires to
sell that can be sold without exceeding the Maximum Number Of Securities;  (iii)
third,  to the extent that the Maximum Number Of Securities has not been reached
under the  foregoing  clauses  (i) and (ii),  collectively  the shares of Common
Stock or other  securities  comprised  of  Registrable  Securities  and Investor
Securities,  pro rata, as to which  registration has been requested  pursuant to
the terms hereof and of the Registration Rights Agreement,  as applicable,  that
can be sold without exceeding the Maximum Number Of Securities; and (iv) fourth,
to the extent that the Maximum  Number Of Securities  has not been reached under
the foregoing  clauses (i), (ii) and (iii),  the shares of Common Stock or other
securities  for the account of other  persons  that the Company is  obligated to
register pursuant to written  contractual  arrangements with such persons,  that
can be sold without exceeding the Maximum Number Of Securities.

                  6.2.3  WITHDRAWAL.  Any holder of  Registrable  Securities may
elect to withdraw such holder's request for inclusion of Registrable  Securities
in any Piggy-Back  Registration  by giving written notice to the Company of such
request to withdraw prior to the effectiveness of the

                                       9
<PAGE>

registration statement.  The Company (whether on its own determination or as the
result  of  a  withdrawal  by  persons  making  a  demand  pursuant  to  written
contractual obligations) may withdraw (or postpone the filing of) a registration
statement at any time prior to the effectiveness of the registration  statement.
Notwithstanding any such withdrawal, the Company shall pay all expenses incurred
by the holders of  Registrable  Securities  in connection  with such  Piggy-Back
Registration as provided in Section 6.2.4.

                  6.2.4  TERMS.  The  Company  shall bear all fees and  expenses
attendant to registering the Registrable  Securities,  including the expenses of
one legal counsel  selected by the Holders to represent them in connection  with
the sale of the  Registrable  Securities  but the Holders  shall pay any and all
underwriting  commissions  related  to the  Registrable  Securities.  During the
period in which the Purchase  Option is  exercisable,  the notice required under
Section  6.2.1 to the Holders  shall  continue  to be given for each  applicable
registration  statement  filed  by the  Company  until  such  time as all of the
Registrable Securities have been registered and sold.

            6.3 GENERAL TERMS.

                  6.3.1   INDEMNIFICATION.   The  Company  shall  indemnify  the
Holder(s) of the Registrable  Securities to be sold pursuant to any registration
statement  hereunder and each person,  if any, who controls such Holders  within
the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange
Act of 1934, as amended (the "EXCHANGE ACT"),  against all loss, claim,  damage,
expense  or  liability  (including  all  reasonable  attorneys'  fees and  other
expenses  reasonably  incurred in investigating,  preparing or defending against
litigation, commenced or threatened, or any claim whatsoever whether arising out
of any action between the underwriter and the Company or between the underwriter
and any third party or otherwise) to which any of them may become  subject under
the Act,  the  Exchange  Act or  otherwise,  arising,  in each  case,  from such
registration  statement  but only to the same extent and with the same effect as
the  provisions  pursuant  to which the  Company  has  agreed to  indemnify  the
underwriters  contained in Section 8 of the Underwriting  Agreement  between the
Company,  Sandler  O'Neill and the other  underwriters  named  therein dated the
Effective Date. The Holder(s) of the Registrable  Securities to be sold pursuant
to  such  registration  statement,  and  their  successors  and  assigns,  shall
severally,  and not jointly,  indemnify the Company,  its officers and directors
and each person,  if any, who controls the Company within the meaning of Section
15 of the Act or Section  20(a) of the Exchange  Act,  against all loss,  claim,
damage, expense or liability (including all reasonable attorneys' fees and other
expenses  reasonably  incurred in investigating,  preparing or defending against
any claim  whatsoever)  to which  they may  become  subject  under the Act,  the
Exchange Act or otherwise, arising from information furnished by or on behalf of
such Holders, or their successors or assigns, in writing, for specific inclusion
in such  registration  statement  to the same extent and with the same effect as
the provisions contained in Section 8 of the Underwriting  Agreement pursuant to
which the underwriters have agreed to indemnify the Company.

                  6.3.2 EXERCISE OF PURCHASE OPTIONS.  Nothing contained in this
Purchase  Option shall be construed as requiring the Holder(s) to exercise their
Purchase  Options or the Warrants  underlying such Purchase  Options prior to or
after the initial  filing of any  registration  statement  or the  effectiveness
thereof.

                  6.3.3  DOCUMENTS  DELIVERED TO HOLDERS.  If such  registration
includes an  underwritten  public  offering,  the  Company  shall  deliver  such
documents and certificates as may be reasonably  requested by the  participating
Holders and the managing  underwriters,  including customary opinions of counsel
and  "cold  comfort"  letters  as may be  reasonably  required  pursuant  to the
underwriting agreement relating thereto. The Company shall also deliver promptly
to the Holders  participating in the offering the  correspondence  and memoranda
described below and copies of all correspondence  between the Commission and the
Company, its counsel or auditors and all memoranda

                                       10
<PAGE>

relating to  discussions  with the  Commission  or its staff with respect to the
registration  statement  and permit the Holders to do such  investigation,  upon
reasonable advance notice,  with respect to information  contained in or omitted
from the registration  statement as it deems reasonably necessary to comply with
applicable  securities  laws or rules of the National  Association of Securities
Dealers,  Inc.  ("NASD").  Such  investigation  shall  include  access to books,
records and properties and  opportunities to discuss the business of the Company
with its officers and independent auditors, all to such reasonable extent and at
such reasonable times and as often as the Holders shall reasonably request.  The
Company shall not be required to disclose any confidential  information or other
records to the Holders,  or to any other  person,  until and unless such persons
shall have  entered  into  reasonable  confidentiality  agreements  (in form and
substance reasonably  satisfactory to the Company) with the Company with respect
thereto.

                  6.3.4 UNDERWRITING AGREEMENT.  The Company shall enter into an
underwriting  agreement  with  the  managing  underwriter(s),  if any,  selected
pursuant to Section 6.1.3.  Such agreement  shall be reasonably  satisfactory in
form and  substance to the Company,  each Holder party thereto and such managing
underwriters,  and shall contain such representations,  warranties and covenants
by the Company and such other terms as are  customarily  contained in agreements
of that type used by the managing underwriter. Each Holder intending to register
securities  pursuant  to this  Section  6 shall  be  party  to any  underwriting
agreement  relating to an underwritten  sale of its  Registrable  Securities and
may, at its option, require that any or all the representations,  warranties and
covenants of the Company to or for the benefit of such  underwriters  shall also
be made to and for the benefit of such Holders. Such Holders shall agree to such
representations,  warranties,  covenants and  indemnification  and  contribution
obligations for selling stockholders as are customarily  contained in agreements
of that type used by the  managing  underwriter.  Further,  such  Holders  shall
execute  appropriate  custody  agreements and otherwise  cooperate  fully in the
preparation of the  registration  statement and other documents  relating to any
offering  in which they  include  securities  pursuant  to this  Section 6. Each
Holder shall also furnish to the Company such information  regarding itself, the
Registrable  Securities  held by it, and the intended  method of  disposition of
such  securities as shall be reasonably  required to effect the  registration of
the Registrable Securities.

                  6.3.5 RULE 144 SALE.  Notwithstanding  anything  contained  in
this Section 6 to the contrary, the Company shall have no obligation pursuant to
Sections 6.1 or 6.2 for the  registration of Registrable  Securities held by any
Holder (i) where such Holder would then be entitled to sell under Rule 144 under
the Act ("RULE  144")  within  any  three-month  period  (or such  other  period
prescribed  under Rule 144 as may be provided by  amendment  thereof) all of the
Registrable  Securities  then held by such Holder,  and (ii) where the number of
Registrable  Securities  held by such  Holder is within the  volume  limitations
under  paragraph (e) of Rule 144 (calculated as if such Holder were an affiliate
within the meaning of Rule 144).

                  6.3.6 SUPPLEMENTAL  PROSPECTUS.  Each Holder agrees, that upon
receipt of any notice from the Company of the happening of any event as a result
of which the  prospectus  included  in the  registration  statement,  as then in
effect,  includes  an untrue  statement  of a material  fact or omits to state a
material fact required to be stated  therein or necessary to make the statements
therein not misleading in light of the circumstances then existing,  such Holder
will immediately  discontinue  disposition of Registrable Securities pursuant to
the  registration  statement  covering such  Registrable  Securities  until such
Holder's receipt of the copies of a supplemental or amended prospectus,  and, if
so desired by the  Company,  such  Holder  shall  deliver to the Company (at the
expense of the Company) or destroy (and deliver to the Company a certificate  of
such  destruction)  all copies,  other than  permanent  file copies then in such
Holder's  possession,  of the prospectus  covering such  Registrable  Securities
current at the time of receipt of such notice.

                                       11
<PAGE>

7.  RESERVATION  AND LISTING.  The Company  shall at all times  reserve and keep
available out of its authorized  shares of Common Stock,  solely for the purpose
of issuance upon exercise of the Purchase Options or the Warrants underlying the
Purchase  Option,  such  number of shares of Common  Stock or other  securities,
properties or rights as shall be issuable upon the exercise thereof. The Company
covenants and agrees that, upon exercise of the Purchase  Options and payment of
the Exercise  Price  therefor,  all shares of Common Stock and other  securities
issuable upon such  exercise  shall be duly and validly  issued,  fully paid and
non-assessable  and not subject to  preemptive  rights of any  stockholder.  The
Company  further  covenants  and  agrees  that  upon  exercise  of the  Warrants
underlying the Purchase  Options and payment of the respective  Warrant exercise
price therefor,  all shares of Common Stock and other  securities  issuable upon
such exercise shall be duly and validly  issued,  fully paid and  non-assessable
and not subject to preemptive rights of any stockholder. As long as the Purchase
Options shall be  outstanding,  the Company shall use its reasonable  efforts to
cause all (i) Units and shares of Common  Stock  issuable  upon  exercise of the
Purchase  Options,  (ii) Warrants issuable upon exercise of the Purchase Options
and (iii) shares of Common Stock issuable upon exercise of the Warrants included
in the Units issuable upon exercise of the Purchase Option to be listed (subject
to official  notice of issuance) on all securities  exchanges (or, if applicable
on the Nasdaq  National  Market,  SmallCap  Market,  OTC  Bulletin  Board or any
successor  trading  market) on which the Units,  the Common  Stock or the Public
Warrants  issued to the public in connection  herewith may then be listed and/or
quoted.

8. CERTAIN NOTICE REQUIREMENTS.

            8.1  HOLDERS  RIGHT  TO  RECEIVE  NOTICE.  Nothing  herein  shall be
construed  as  conferring  upon the  Holders  the right to vote or  consent as a
stockholder for the election of directors or any other matter,  or as having any
rights  whatsoever as a stockholder  of the Company.  If,  however,  at any time
prior to the expiration of the Purchase  Options and their exercise,  any of the
events  described  in  Section  8.2 shall  occur,  then,  in one or more of said
events,  the Company  shall give written  notice of such event at least ten (10)
days  prior to the  date  fixed as a  record  date or the  date of  closing  the
transfer  books  for the  determination  of the  stockholders  entitled  to such
dividend,  distribution,  conversion or exchange of  securities or  subscription
rights, or entitled to vote on such proposed dissolution,  liquidation,  winding
up or sale.  Such  notice  shall  specify  such  record  date or the date of the
closing  of the  transfer  books,  as  the  case  may  be.  Notwithstanding  the
foregoing,  the Company shall deliver to each Holder a copy of each notice given
to the other stockholders of the Company at the same time and in the same manner
that such notice is given to the stockholders.

            8.2 EVENTS REQUIRING  NOTICE.  The Company shall be required to give
the notice described in this Section 8 upon one or more of the following events:
(i) if the  Company  shall take a record of the  holders of its shares of Common
Stock for the purpose of  entitling  them to receive a dividend or  distribution
payable  otherwise  than in cash,  or a cash  dividend or  distribution  payable
otherwise  than  out of  retained  earnings,  as  indicated  by  the  accounting
treatment of such dividend or distribution on the books of the Company,  or (ii)
the Company  shall offer to all the holders of its Common  Stock any  additional
shares  of  capital  stock of the  Company  or  securities  convertible  into or
exchangeable for shares of capital stock of the Company, or any option, right or
warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up
of the Company (other than in connection  with a  consolidation  or merger) or a
sale of all or substantially  all of its property,  assets and business shall be
proposed.

            8.3 NOTICE OF CHANGE IN EXERCISE PRICE. The Company shall,  promptly
after an event  requiring a change in the Exercise  Price  pursuant to Section 2
hereof,  send  notice to the  Holders  of such  event  and  change  (the  "PRICE
NOTICE").  The Price Notice shall  describe the event causing the change and the
method of calculating  same and shall be certified as being true and accurate by
the Company's Chief Financial Officer.

                                       12
<PAGE>

            8.4  TRANSMITTAL  OF NOTICES.  All notices,  requests,  consents and
other communications under this Purchase Option shall be in writing and shall be
deemed to have been duly made when hand  delivered,  or mailed by United  States
postal  service,  express  mail  or  private  courier  service:  (i)  if to  the
registered Holder of the Purchase Option, to the address of such Holder as shown
on the books of the Company, or (ii) if to the Company, to the following address
or to such other address as the Company may designate by notice to the Holders:

         Western United Financial Corporation
         70 South Lake Avenue, Suite 900
         Pasadena, California 91101
         Attn: V. Charles Jackson

         with a copy to:

         Skadden, Arps, Slate, Meagher & Flom LLP
         300 South Grand Avenue, Suite 3400
         Los Angeles, California 90071
         Attn: Gregg A. Noel, Esq.
               Casey Fleck, Esq.

9. MISCELLANEOUS.

            9.1  AMENDMENTS.  The  Company may from time to time  supplement  or
amend this Purchase  Option  without the approval of any of the Holders in order
to cure any ambiguity,  to correct or supplement any provision  contained herein
that may be defective or inconsistent  with any other provisions  herein,  or to
make any other  provisions in regard to matters or questions  arising  hereunder
that the Company may deem  necessary or desirable  and that the Company,  in the
exercise  of  reasonable  judgment,  determines  that it  shall  not  materially
adversely  affect  the  interest  of the  Holders.  All other  modifications  or
amendments shall require the written consent of the Majority Holders.

            9.2 HEADINGS. The headings contained herein are for the sole purpose
of  convenience  of  reference,  and shall  not in any way  limit or affect  the
meaning or  interpretation  of any of the terms or  provisions  of this Purchase
Option.

            9.3  ENTIRE  AGREEMENT.  This  Purchase  Option  (together  with the
Warrant  Agreement  and the  other  agreements  and  documents  being  delivered
pursuant to or in connection with this Purchase  Option)  constitutes the entire
agreement of the parties hereto with respect to the subject  matter hereof,  and
supersedes all prior  agreements  and  understandings  of the parties,  oral and
written, with respect to the subject matter hereof.

            9.4 BINDING  EFFECT.  This Purchase Option shall inure solely to the
benefit of and shall be binding  upon,  the  Holder  and the  Company  and their
permitted assignees,  respective  successors,  legal representative and assigns,
and no other  person  shall have or be  construed to have any legal or equitable
right,  remedy or claim  under or in  respect  of or by virtue of this  Purchase
Option or any provisions herein contained.

            9.5 GOVERNING LAW; SUBMISSION TO JURISDICTION.  This Purchase Option
shall be governed by, and construed in accordance with, the laws of the State of
New York applicable to contracts  executed in and to be performed in that State,
including,  without  limitation,  Sections  5-1401  and  5-1402  of the New York
General  Obligations  Law and the New York Civil Practice Laws and Rules 327(b).
The Company hereby agrees that any action, proceeding or claim against it

                                       13
<PAGE>

arising  out of or relating  in any way to this  Agreement  shall be brought and
enforced  in the courts of the State of New York or the United  States  District
Court for the  Southern  District of New York,  and  irrevocably  submit to such
jurisdiction,  which jurisdiction shall be exclusive.  The Company hereby waives
any objection to such exclusive  jurisdiction  and that such courts represent an
inconvenient  forum. Any process or summons to be served upon the Company may be
served by  transmitting a copy thereof by registered or certified  mail,  return
receipt requested,  postage prepaid, addressed to it at the address set forth in
Section 8 hereof.  Such mailing  shall be deemed  personal  service and shall be
legal and  binding  upon the  Company in any action,  proceeding  or claim.  The
Company and the Holder agree that the  prevailing  party(ies) in any such action
shall be entitled to recover  from the other  party(ies)  all of its  reasonable
attorneys,  fees and  expenses  relating  to such  action or  proceeding  and/or
incurred in connection with the preparation therefor.

            9.6 WAIVER,  ETC. The failure of the Company or the Holder to at any
time enforce any of the  provisions of this Purchase  Option shall not be deemed
or construed to be a waiver of any such provision,  nor to in any way affect the
validity of this  Purchase  Option or any  provision  hereof or the right of the
Company or any Holder to  thereafter  enforce  each and every  provision of this
Purchase Option. No waiver of any breach,  non-compliance or  non-fulfillment of
any of the  provisions  of this  Purchase  Option shall be effective  unless set
forth in a written  instrument  executed by the party or parties against whom or
which  enforcement  of such waiver is sought;  and no waiver of any such breach,
non-compliance or non-fulfillment shall be construed or deemed to be a waiver of
any other or subsequent breach or non-compliance.

            9.7 EXECUTION IN COUNTERPARTS.  This Purchase Option may be executed
in one or more  counterparts,  and by the different  parties  hereto in separate
counterparts,  each of which shall be deemed to be an original, but all of which
taken together shall  constitute  one and the same  agreement,  and shall become
effective when one or more  counterparts  has been signed by each of the parties
hereto and delivered to each of the other parties hereto.

            9.8 UNDERLYING WARRANTS. At any time after exercise by the Holder of
this  Purchase  Option,  the Holder may exchange  its Warrants  (with an initial
exercise price of $7.50) for Public Warrants (with an initial  exercise price of
$6.00) upon payment to the Company of the difference  between the exercise price
of its Warrant and the exercise  price of the Public  Warrants.  Any such Public
Warrants and the Common Stock  underlying such Public Warrants shall  constitute
Registrable Securities.

            IN WITNESS  WHEREOF,  the Company has caused this Purchase Option to
be signed by its duly authorized officer as of the  _______________  day of ___,
2007.

                                            WESTERN UNITED FINANCIAL CORPORATION

                                            By:_________________________________
                                            Name: V. Charles Jackson
                                            Title: Chief Executive Officer

                                       14
                             [Unit Purchase Option]
<PAGE>

FORM TO BE USED TO EXERCISE PURCHASE OPTION:

Western United Financial Corporation
70 South Lake Avenue, Suite 900
Pasadena, California  91101
Attn: V. Charles Jackson

Date: __________________, 200__

            The  undersigned  hereby  elects  irrevocably  to exercise  all or a
portion of the within  Purchase  Option and to  purchase  _____ Units of Western
United Financial  Corporation and hereby makes payment of $________ (at the rate
of  $_________  per unit) in payment of the  Exercise  Price  pursuant  thereto.
Please issue the Common Stock and Warrants as to which this  Purchase  Option is
exercised in accordance with the instructions given below.

            or

            The  undersigned  hereby elects  irrevocably to convert its right to
purchase _____ Units  purchasable  under the within Purchase Option by surrender
of the unexercised portion of the attached Purchase Option (with a "VALUE" based
of $_______ based on a "MARKET  PRICE" of $______).  Please issue the securities
comprising the Units as to which this Purchase Option is exercised in accordance
with the instructions given below.

                                          ______________________________________
                                          NOTICE The  signature to this exercise
                                          notice must  correspond  with the name
                                          as  written   upon  the  face  of  the
                                          purchase  option in every  particular,
                                          without  alteration or  enlargement or
                                          any change whatever.

Signature(s) Guaranteed:

--------------------------------------------------------------------------------
THE  SIGNATURE(S)  SHOULD BE  GUARANTEED  BY AN ELIGIBLE  GUARANTOR  INSTITUTION
(BANKS,  STOCKBROKERS,  SAVINGS  AND LOAN  ASSOCIATIONS  AND CREDIT  UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE  GUARANTEE  MEDALLION  PROGRAM,  PURSUANT TO
SECURITIES AND EXCHANGE COMMISSION RULE 17Ad-15).

                   INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name
         -----------------------------------------------------------------------
                                 (Print in Block Letters)
Address
         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

<PAGE>

FORM TO BE USED TO ASSIGN PURCHASE OPTION:

                                   ASSIGNMENT

              (To be executed by the registered Holder to effect a
                    transfer of the within Purchase Option):

            FOR VALUE RECEIVED,  _____________________  does hereby sell, assign
and transfer unto _________________ the right to purchase ________________ Units
of Western United Financial  Corporation (the "COMPANY") evidenced by the within
Purchase Option and does hereby  authorize the Company to transfer such right on
the books of the Company.

Dated: __________ __, 200_

                                          ______________________________________
                                                       Signature

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

Signature(s) Guaranteed:

--------------------------------------------------------------------------------
THE  SIGNATURE(S)  SHOULD BE  GUARANTEED  BY AN ELIGIBLE  GUARANTOR  INSTITUTION
(BANKS,  STOCKBROKERS,  SAVINGS  AND LOAN  ASSOCIATIONS  AND CREDIT  UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE  GUARANTEE  MEDALLION  PROGRAM,  PURSUANT TO
SECURITIES AND EXCHANGE COMMISSION RULE 17Ad-15).

<PAGE>

                                    EXHIBIT A
                                 FORM OF WARRANTREGISTRATION RIGHTS AGREEMENT

            THIS REGISTRATION RIGHTS AGREEMENT is entered into as of
___________, 2007, by and among Western United Financial Corporation, a Delaware
corporation (the "Company"), and the undersigned Investors listed on the
signature page hereto (each, an "Investor" and collectively, the "Investors").

            WHEREAS, as of the date hereof the Investors (other than Western
United Funding, LLC) collectively hold all of the issued and outstanding
securities of the Company (together with the Offering Shares (as defined below),
the "Investor Shares");

            WHEREAS, Western United Funding, LLC, a Delaware limited liability
company, is being offered 200,000 shares of Common Stock (the "Offering Shares")
in the Company's initial public offering of securities; and

            WHEREAS, the Investors and the Company desire to enter into this
Agreement to provide the Investors with certain rights relating to the
registration of the Investor Shares.

            NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

      1. DEFINITIONS. The following capitalized terms used herein have the
following meanings:

            "AGREEMENT" means this Agreement, as amended, restated,
supplemented, or otherwise modified from time to time.

            "BOARD" means the board of directors of the Company.

            "BUSINESS COMBINATION" means the acquisition by the Company of one
or more banks, thrifts and their respective holding companies and other
financial services organizations through a merger, capital stock exchange, asset
acquisition, exchangeable share transaction, stock purchase or other similar
business combination having collectively a fair market value (as calculated in
accordance with the requirements set forth below) of at least 80% of the
Company's net assets at the time of the acquisition.

            "COMMISSION" means the Securities and Exchange Commission, or any
other federal agency then administering the Securities Act or the Exchange Act.

            "COMMON STOCK" means the common stock, par value $0.01 per share, of
the Company.

            "COMPANY" is defined in the preamble to this Agreement.

            "DEMAND REGISTRATION" is defined in Section 2.1.1.

            "DEMANDING HOLDER" is defined in Section 2.1.1.

            "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder,
all as the same shall be in effect at the time.

            "FORM S-3" is defined in Section 2.3.

                                       1
<PAGE>

            "INDEMNIFIED PARTY" is defined in Section 4.3.

            "INDEMNIFYING PARTY" is defined in Section 4.3.

            "INVESTOR" is defined in the preamble to this Agreement.

            "INVESTOR INDEMNIFIED PARTY" is defined in Section 4.1.

            "INVESTOR SHARES" is defined in the recitals to this Agreement.

            "MAXIMUM NUMBER OF SECURITIES" is defined in Section 2.1.4.

            "NOTICES" is defined in Section 6.3.

            "OFFERING SHARES" is defined in the recitals to this Agreement.

            "OPTION SECURITIES" is defined in Section 2.1.4.

            "PERSON" means an individual, a partnership, a limited liability
company, a joint venture, a corporation, a trust, an unincorporated
organization, a government or any department or agency thereof or any entity
similar to any of the foregoing.

            "PIGGY-BACK REGISTRATION" is defined in Section 2.2.1.

            "PRO RATA" is defined in Section 2.1.4.

            "REGISTER," "REGISTERED" and "REGISTRATION" mean a registration
effected by preparing and filing a registration statement or similar document in
compliance with the requirements of the Securities Act, and such registration
statement becoming effective.

            "REGISTRABLE SECURITIES" mean the Investor Shares owned or held by
the Investors. Registrable Securities include any warrants, shares of capital
stock or other securities of the Company issued as a dividend or other
distribution with respect to or in exchange for or in replacement of Registrable
Securities. As to any particular Registrable Securities, such securities shall
cease to be Registrable Securities when: (a) a Registration Statement with
respect to the sale of such securities shall have become effective under the
Securities Act and such securities shall have been sold, transferred, disposed
of or exchanged in accordance with such Registration Statement; (b) such
securities shall have been otherwise transferred, new certificates for them not
bearing a legend restricting further transfer shall have been delivered by the
Company and subsequent public distribution of them shall not require
registration under the Securities Act; (c) such securities shall have ceased to
be outstanding; or (d) all such Registrable Securities held by the Investor may
be sold in a single transaction without registration in compliance with Rule
144(k).

            "REGISTRATION STATEMENT" means a registration statement filed by the
Company with the Commission in compliance with the Securities Act for a public
offering and sale of Common Stock or other securities of the Company (other than
a registration statement on Form S-4 or S-8 (or any successor or substantially
similar form), or in connection with (i) an employee stock option, stock
purchase or compensation plan or securities issued or issuable pursuant to any
such plan, (ii) a dividend reinvestment plan or (iii) an offering of debt that
is convertible into equity securities of the Company).

                                       2
<PAGE>

            "RELEASE DATE" means the first anniversary of the consummation of a
Business Combination.

            "SANDLER O'NEILL" means Sandler O'Neill & Partners, L.P.

            "SECURITIES ACT" means the Securities Act of 1933, as amended, and
the rules and regulations of the Commission promulgated thereunder, all as the
same shall be in effect at the time.

            "UNDERWRITER" means a securities dealer who purchases any
Registrable Securities as principal in an underwritten offering and not as part
of such dealer's market-making activities.

            "UNIT PURCHASE OPTION" is defined in Section 2.1.4.

      2. REGISTRATION RIGHTS.

            2.1 DEMAND REGISTRATION.

                  2.1.1 REQUEST FOR REGISTRATION. At any time commencing two (2)
months prior to the Release Date, and from time to time thereafter, the holders
of a majority-in-interest of the Registrable Securities, on an as-converted to
Common Stock basis, held by the Investors or the permitted transferees of the
Investors may make a written demand for registration under the Securities Act of
all or part of their Registrable Securities (a "Demand Registration"). Any
demand for a Demand Registration shall specify the number of shares of
Registrable Securities proposed to be sold and the intended method(s) of
distribution thereof. The Company will notify all holders of Registrable
Securities of the demand, and each holder of Registrable Securities who wishes
to include all or a portion of such holder's Registrable Securities in the
Demand Registration (each such holder including shares of Registrable Securities
in such registration, a "Demanding Holder") shall so notify the Company in
writing within ten (10) days after the receipt by the holder of the notice from
the Company. Upon any such request, the Demanding Holders shall be entitled to
have their Registrable Securities included in the Demand Registration, subject
to Sections 2.1.3, 2.1.4, 3.4 and the provisos set forth in Section 3.1.1. The
Company shall not be obligated to effect more than an aggregate of two (2)
Demand Registrations under this Section 2.1.1 in respect of Registrable
Securities.

                  2.1.2 EFFECTIVE REGISTRATION. A registration will not count as
a Demand Registration until the Registration Statement filed with the Commission
with respect to such Demand Registration has been declared effective and the
Company has complied with all of its material obligations under this Agreement
with respect thereto; provided, however, that if, after such Registration
Statement has been declared effective, the offering of Registrable Securities
pursuant to a Demand Registration is interfered with by any stop order or
injunction of the Commission or any other governmental agency or court, the
Registration Statement with respect to such Demand Registration will be deemed
not to have been declared effective unless and until such stop order or
injunction is removed, rescinded or otherwise terminated; provided, further,
that the Company shall not be obligated to file a second Registration Statement
until a Registration Statement that has been filed is counted as a Demand
Registration or is terminated.

                  2.1.3 UNDERWRITTEN OFFERING. If a majority-in-interest, on an
as-converted to Common Stock basis, of the Demanding Holders so elects and such
holders so advise the Company as part of their written demand for a Demand
Registration, the offering of such Registrable Securities pursuant to such
Demand Registration shall be in the form of an underwritten offering. In such
event, the right of any holder to include its Registrable Securities in such
registration shall be conditioned upon such holder's participation in such
underwriting and the inclusion of such holder's Registrable Securities in the

                                       3
<PAGE>

underwriting to the extent provided herein. All Demanding Holders proposing to
distribute their securities through such underwriting shall enter into an
underwriting agreement in customary form with the Underwriter or Underwriters
selected for such underwriting by a majority-in-interest, on an as-converted to
Common Stock basis, of the Demanding Holders, which Underwriter or Underwriters
shall be reasonably acceptable to the Company.

                  2.1.4 REDUCTION OF OFFERING. If the managing Underwriter or
Underwriters for a Demand Registration that is to be an underwritten offering
advises the Company and the Demanding Holders in writing that the dollar amount
or amount of Registrable Securities which the Demanding Holders desire to sell,
taken together with all other shares of Common Stock or other securities which
the Company desires to sell and the shares of Common Stock or other securities,
if any, as to which registration has been requested pursuant to written
contractual piggy-back registration rights held by other stockholders of the
Company who desire to sell, exceeds the maximum dollar amount or maximum number
of securities that can be sold in such offering without adversely affecting the
proposed offering price, the timing, the distribution method, or the probability
of success of such offering (such maximum dollar amount or maximum number of
securities, as applicable, the "Maximum Number of Securities"), then the Company
shall include in such registration: (i) first, the Registrable Securities as to
which Demand Registration has been requested by the Demanding Holders (pro rata
in accordance with the number of shares that each such Person has requested be
included in such registration, regardless of the number of shares held by each
such Person (such proportion is referred to herein as "Pro Rata")) that can be
sold without exceeding the Maximum Number of Securities; (ii) second, to the
extent that the Maximum Number of Securities has not been reached under the
foregoing clause (i), the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum Number of
Securities; (iii) third, to the extent that the Maximum Number of Securities has
not been reached under the foregoing clauses (i) and (ii), the shares of Common
Stock or other securities registrable pursuant to the terms of the Unit Purchase
Option issued to Sandler O'Neill or its designees in connection with the
Company's initial public offering (the "Unit Purchase Option" and such
registrable securities, the "Option Securities") as to which "piggy-back"
registration has been requested by the holders thereof, Pro Rata, that can be
sold without exceeding the Maximum Number of Securities; and (iv) fourth, to the
extent that the Maximum Number of Securities has not been reached under the
foregoing clauses (i), (ii), and (iii), the shares of Common Stock or other
securities for the account of other Persons that the Company is obligated to
register pursuant to written contractual arrangements with such Persons and that
can be sold without exceeding the Maximum Number of Securities.

                  2.1.5 WITHDRAWAL. If a majority-in-interest, on an
as-converted to Common Stock basis, of the Demanding Holders disapproves of the
terms of any underwriting or are not entitled to include all of their
Registrable Securities in any offering, such majority-in-interest of the
Demanding Holders may elect to withdraw from such offering by giving written
notice to the Company and the Underwriter or Underwriters of their request to
withdraw prior to the effectiveness of the Registration Statement filed with the
Commission with respect to such Demand Registration.

                  2.1.6 PERMITTED DELAYS. The Company shall be entitled to
postpone the filing of any Registration Statement under this Section 2.1, if (a)
at any time prior to the filing of such Registration Statement the Board
determines, in its good faith business judgment, that such registration and
offering would materially and adversely affect any financing, acquisition,
corporate reorganization, or other material transaction involving the Company,
and (b) the Company delivers to the Demanding Holders written notice thereof
within ten (10) business days of the date of receipt of such request for Demand
Registration; provided that all such periods of postponement may not exceed 45
days during any 365-day period.

                                       4
<PAGE>

            2.2 PIGGY-BACK REGISTRATION.

                  2.2.1 PIGGY-BACK RIGHTS. If at any time after the Release
Date, the Company proposes to file a Registration Statement under the Securities
Act with respect to an offering of equity securities, or securities or other
obligations exercisable or exchangeable for, or convertible into, equity
securities, by the Company for its own account and/or for stockholders of the
Company for their account, then the Company shall (x) give written notice of
such filing to the holders of Registrable Securities, which notice shall
describe the amount and type of securities to be included in such offering, the
intended method(s) of distribution, and the name of the proposed managing
Underwriter or Underwriters, if any, of the offering, and (y) offer to the
holders of Registrable Securities in such notice the opportunity to register the
sale of such number of shares of Registrable Securities as such holders may
request in writing within five (5) days following receipt of such notice (a
"Piggy-Back Registration"). The Company shall cause such Registrable Securities
to be included in such registration and shall use reasonable efforts to cause
the managing Underwriter or Underwriters of a proposed underwritten offering to
permit the Registrable Securities requested to be included in a Piggy-Back
Registration on the same terms and conditions as any similar securities of the
Company and to permit the sale or other disposition of such Registrable
Securities in accordance with the intended method(s) of distribution thereof.
All holders of Registrable Securities proposing to distribute their securities
through a Piggy-Back Registration that involves an Underwriter or Underwriters
shall enter into an underwriting agreement in customary form with the
Underwriter or Underwriters selected for such Piggy-Back Registration.

                  2.2.2 REDUCTION OF OFFERING. If the managing Underwriter or
Underwriters for a Piggy-Back Registration that is to be an underwritten
offering advises the Company and the holders of Registrable Securities in
writing that the dollar amount or number of shares of Common Stock or other
securities which the Company desires to sell, taken together with shares of
Common Stock or other securities, if any, as to which registration has been
demanded pursuant to written contractual arrangements with Persons other than
the holders of Registrable Securities hereunder, the Registrable Securities as
to which registration has been requested under this Section 2.2, and the shares
of Common Stock or other securities, if any, as to which registration has been
requested pursuant to the written contractual piggy-back registration rights of
other stockholders of the Company, exceeds the Maximum Number of Securities,
then the Company shall include in any such registration:

                        (a) If the registration is undertaken for the Company's
account: (i) first, the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum Number of
Securities; (ii) second, to the extent that the Maximum Number of Securities has
not been reached under the foregoing clause (i), the shares of Common Stock or
other securities, if any, comprised of Registrable Securities and Option
Securities, as to which registration has been requested pursuant to the
applicable written contractual piggy-back registration rights of such security
holders, Pro Rata, that can be sold without exceeding the Maximum Number of
Securities; and (iii) third, to the extent that the Maximum Number of Securities
has not been reached under the foregoing clauses (i) and (ii), the shares of
Common Stock or other securities for the account of other Persons that the
Company is obligated to register pursuant to written contractual piggy-back
registration rights with such Persons and that can be sold without exceeding the
Maximum Number of Securities;

                        (b) If the registration is a "demand" registration
undertaken at the demand of holders of Option Securities, (i) first, the shares
of Common Stock or other securities for the account of the demanding Persons,
Pro Rata, that can be sold without exceeding the Maximum Number of Securities;
(ii) second, to the extent that the Maximum Number of Securities has not been
reached under the foregoing clause (i), the shares of Common Stock or other
securities that the Company desires to sell that can be sold without exceeding
the Maximum Number of Securities; (iii) third, to the extent that the Maximum
Number of Securities has not been reached under the foregoing clauses (i) and
(ii), the shares

                                       5
<PAGE>

of Registrable Securities, Pro Rata, as to which registration has been requested
pursuant to the terms hereof, that can be sold without exceeding the Maximum
Number of Securities; and (iv) fourth, to the extent that the Maximum Number of
Securities has not been reached under the foregoing clauses (i), (ii) and (iii),
the shares of Common Stock or other securities for the account of other Persons
that the Company is obligated to register pursuant to written contractual
arrangements with such Persons, that can be sold without exceeding the Maximum
Number of Securities; and

                        (c) If the registration is a "demand" registration
undertaken at the demand of Persons other than either the holders of Registrable
Securities or of Option Securities, (i) first, the shares of Common Stock or
other securities for the account of the demanding Persons that can be sold
without exceeding the Maximum Number of Securities; (ii) second, to the extent
that the Maximum Number of Securities has not been reached under the foregoing
clause (i), the shares of Common Stock or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of
Securities; (iii) third, to the extent that the Maximum Number of Securities has
not been reached under the foregoing clauses (i) and (ii), collectively the
shares of Common Stock or other securities comprised of Registrable Securities
and Option Securities, Pro Rata, as to which registration has been requested
pursuant to the terms hereof and of the Unit Purchase Option, as applicable,
that can be sold without exceeding the Maximum Number of Securities; and (iv)
fourth, to the extent that the Maximum Number of Securities has not been reached
under the foregoing clauses (i), (ii) and (iii), the shares of Common Stock or
other securities for the account of other Persons that the Company is obligated
to register pursuant to written contractual arrangements with such Persons, that
can be sold without exceeding the Maximum Number of Securities.

                  2.2.3 WITHDRAWAL. Any holder of Registrable Securities may
elect to withdraw such holder's request for inclusion of Registrable Securities
in any Piggy-Back Registration by giving written notice to the Company of such
request to withdraw prior to the effectiveness of the Registration Statement.
The Company (whether on its own determination or as the result of a withdrawal
by Persons making a demand pursuant to written contractual obligations) may
withdraw (or postpone the filing of) a registration statement at any time prior
to the effectiveness of the Registration Statement. Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the holders of
Registrable securities in connection with such Piggy-Back Registration as
provided in Section 3.3.

            2.3 REGISTRATIONS ON FORM S-3. The holders of Registrable Securities
may at any time and from time to time, request in writing that the Company
register the resale of any or all of such Registrable Securities on Form S-3 or
any similar short-form registration which may be available at such time ("Form
S-3"); provided, however, that the Company shall not be obligated to effect such
request through an underwritten offering. Upon receipt of such written request,
the Company will give written notice of the proposed registration to all other
holders of Registrable Securities, and, as soon as practicable thereafter,
effect the registration of all or such portion of such holder's or holders'
Registrable Securities as are specified in such request, together with all or
such portion of the Registrable Securities or other securities of the Company,
if any, of any other holder or holders joining in such request as are specified
in a written request given within fifteen (15) days after receipt of such
written notice from the Company; provided, however, that the Company shall not
be obligated to effect any such registration pursuant to this Section 2.3: (i)
if Form S-3 is not available for such offering; or (ii) if the holders of the
Registrable Securities, together with the holders of any other securities of the
Company entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at any aggregate price to the
public of less than $500,000. Registrations effected pursuant to this Section
2.3 shall not be counted as Demand Registrations effected pursuant to Section
2.1.

                                       6
<PAGE>

      3. REGISTRATION PROCEDURES.

            3.1 FILINGS; INFORMATION. Whenever the Company is required to effect
the registration of any Registrable Securities pursuant to Section 2, the
Company shall use its reasonable efforts to effect the registration and sale of
such Registrable Securities in accordance with the intended method(s) of
distribution thereof as expeditiously as reasonably practicable, and in
connection with any such request:

                  3.1.1 FILING REGISTRATION STATEMENT. The Company shall, as
expeditiously as reasonably possible and in any event within sixty (60) days
after receipt of a request for a Demand Registration pursuant to Section 2.1,
prepare and file with the Commission a Registration Statement on any form for
which the Company then qualifies or which counsel for the Company shall deem
appropriate and which form shall be available for the sale of all Registrable
Securities to be registered thereunder in accordance with the intended method(s)
of distribution thereof, and shall use reasonable efforts to cause such
Registration Statement to become and remain effective for the period required by
Section 3.1.3; provided, however, that the Company shall have the right to defer
any Demand Registration for up to 45 days, if the Company shall furnish to the
holders a certificate signed by the Chief Executive Officer or Chief Financial
Officer of the Company stating that, in the good faith judgment of the Board, it
would be materially detrimental to the Company and its stockholders for such
Registration Statement to be effected at such time; provided further, however,
that the Company shall not have the right to exercise the right set forth in the
immediately preceding proviso more than once in any 365-day period in respect of
a Demand Registration hereunder.

                  3.1.2 COPIES. The Company shall upon request, prior to filing
a Registration Statement or prospectus in respect of Registrable Securities, or
any amendment or supplement thereto, furnish without charge to the holders of
Registrable Securities included in such registration, and such holders' legal
counsel, copies of such Registration Statement as proposed to be filed, each
amendment and supplement to such Registration Statement (in each case including
all exhibits thereto and documents incorporated by reference therein), the
prospectus included in such Registration Statement (including each preliminary
prospectus), and such other documents as the holders of Registrable Securities
included in such registration or legal counsel for any such holders may request
in order to facilitate the disposition of the Registrable Securities owned by
such holders.

                  3.1.3 AMENDMENTS AND SUPPLEMENTS. The Company shall prepare
and file with the Commission such amendments, including post-effective
amendments, and supplements to such Registration Statement and the prospectus
used in connection therewith as may be necessary to keep such Registration
Statement effective and in compliance with the provisions of the Securities Act
until all Registrable Securities and other securities covered by such
Registration Statement have been disposed of in accordance with the intended
method(s) of distribution set forth in such Registration Statement (which period
shall not exceed the sum of one hundred eighty (180) days plus any period during
which any such disposition is interfered with by any stop order or injunction of
the Commission or any governmental agency or court).

                  3.1.4 NOTIFICATION. After the filing of a Registration
Statement, the Company shall promptly, and in no event more than two (2)
business days after such filing, notify the holders of Registrable Securities
included in such Registration Statement of such filing, and shall further notify
such holders within two (2) business days of the occurrence of any of the
following: (i) when such Registration Statement becomes effective; (ii) when any
post-effective amendment to such Registration Statement becomes effective; (iii)
the issuance or threatened issuance by the Commission of any stop order (and the
Company shall take all reasonable actions required to prevent the entry of such
stop order or to remove it if entered); and (iv) any request by the Commission
for any amendment or supplement to such

                                       7
<PAGE>

Registration Statement or any prospectus relating thereto or for additional
information or of the occurrence of an event requiring the preparation of a
supplement or amendment to such prospectus so that, as thereafter delivered to
the purchasers of the securities covered by such Registration Statement, such
prospectus will not contain an untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and promptly make available to the holders of
Registrable Securities included in such Registration Statement any such
supplement or amendment.

                  3.1.5 STATE SECURITIES LAWS COMPLIANCE. The Company shall use
its reasonable efforts to (i) register or qualify the Registrable Securities
covered by the Registration Statement under such securities or "blue sky" laws
of such jurisdictions in the United States as the holders of Registrable
Securities included in such Registration Statement (in light of their intended
plan of distribution) may request and (ii) take such action necessary to cause
such Registrable Securities covered by the Registration Statement to be
registered with or approved by such other governmental authorities as may be
necessary by virtue of the business and operations of the Company and do any and
all other acts and things that may be necessary or advisable to enable the
holders of Registrable Securities included in such Registration Statement to
consummate the disposition of such Registrable Securities in such jurisdictions;
provided, however, that the Company shall not be required to qualify generally
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this paragraph or subject itself to taxation in any such
jurisdiction.

                  3.1.6 AGREEMENTS FOR DISPOSITION. The Company shall enter into
customary agreements (including, if applicable, an underwriting agreement in
customary form) and take such other actions as are reasonably required in order
to expedite or facilitate the disposition of such Registrable Securities. The
representations, warranties and covenants of the Company in any underwriting
agreement which are made to or for the benefit of any Underwriters, to the
extent applicable, shall also be made to and for the benefit of the holders of
Registrable Securities included in such registration statement. Such holders
shall agree to such representations, warranties, covenants and indemnification
and contribution obligations for selling stockholders as are customarily
contained in agreements of that type used by the Underwriters.

                  3.1.7 COOPERATION. The principal executive officer of the
Company, the principal financial officer of the Company, the principal
accounting officer of the Company and all other officers and members of the
management of the Company shall cooperate in any offering of Registrable
Securities hereunder, which cooperation shall include, without limitation, the
preparation of the Registration Statement with respect to such offering and all
other offering materials and related documents, and participation in meetings
with Underwriters, attorneys, accountants and potential investors.

                  3.1.8 RECORDS. The Company shall make available for inspection
by the holders of Registrable Securities included in a Registration Statement,
any Underwriter participating in any disposition pursuant to such Registration
Statement and any attorney, accountant or other professional retained by any
holder of Registrable Securities included in such Registration Statement or any
Underwriter, all financial and other records, pertinent corporate documents and
properties of the Company, as shall be necessary to enable them to exercise
their due diligence responsibility, and cause the Company's officers, directors
and employees to supply all information requested by any of them in connection
with such Registration Statement.

                  3.1.9 OPINIONS AND COMFORT LETTERS. If a Registration
Statement in respect of Registrable Securities includes an underwritten public
offering, the Company shall furnish such documents and certificates as may be
reasonably requested by the participating holders and the managing

                                       8
<PAGE>

underwriters, including customary opinions of counsel and "cold comfort" letters
as may be reasonably required pursuant to the underwriting agreement relating
thereto. In the event no legal opinion is delivered to any Underwriter, the
Company shall furnish to each holder of Registrable Securities included in such
Registration Statement, at any time that such holder elects to use a prospectus,
an letter of counsel to the Company to the effect that the Registration
Statement containing such prospectus has been declared effective and that no
stop order is in effect.

                  3.1.10 EARNINGS STATEMENT. The Company shall comply with all
applicable rules and regulations of the Commission and the Securities Act, and
make available to its stockholders, as soon as practicable, an earnings
statement covering a period of twelve (12) months, beginning within three (3)
months after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act
and Rule 158 thereunder.

                  3.1.11 LISTING. The Company shall use its reasonable efforts
to cause all Registrable Securities included in any registration to be listed on
such exchanges or otherwise designated for trading in the same manner as similar
securities issued by the Company are then listed or designated or, if no such
similar securities are then listed or designated, in a manner satisfactory to
the majority-in-interest, on an as-converted to Common Stock basis, of the
holders of Registrable Securities included in such registration.

            3.2 OBLIGATION TO SUSPEND DISTRIBUTION. Upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
3.1.4(iv), or, in the case of a resale registration on Form S-3 pursuant to
Section 2.3 hereof, upon any suspension by the Company, pursuant to a written
insider trading compliance program adopted by the Board, of the ability of all
"insiders" covered by such program to transact in the Company's securities
because of the existence of material non-public information, each holder of
Registrable Securities included in any registration shall immediately
discontinue disposition of such Registrable Securities pursuant to the
Registration Statement covering such Registrable Securities until such holder
receives the supplemented or amended prospectus contemplated by Section
3.1.4(iv) or the restriction on the ability of "insiders" to transact in the
Company's securities is removed, as applicable, and, if so directed by the
Company, each such holder will deliver to the Company all copies, other than
permanent file copies then in such holder's possession, of the most recent
prospectus covering such Registrable Securities at the time of receipt of such
notice.

            3.3 REGISTRATION EXPENSES. The Company shall bear all costs and
expenses incurred in connection with any Demand Registration pursuant to Section
2.1, any Piggy-Back Registration pursuant to Section 2.2, and any registration
on Form S-3 effected pursuant to Section 2.3, and all expenses incurred in
performing or complying with its other obligations under this Agreement, whether
or not the Registration Statement becomes effective, including, without
limitation: (i) all registration and filing fees; (ii) fees and expenses of
compliance with securities or "blue sky" laws (including fees and disbursements
of counsel in connection with blue sky qualifications of the Registrable
Securities); (iii) printing expenses; (iv) the Company's internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees); (v) the fees and expenses incurred in connection with the listing of
the Registrable Securities as required by Section 3.1.11; (vi) National
Association of Securities Dealers, Inc. fees; (vii) fees and disbursements of
counsel for the Company and fees and expenses for independent certified public
accountants retained by the Company (including the expenses or costs associated
with the delivery of any opinions or comfort letters requested pursuant to
Section 3.1.9); (viii) the fees and expenses of any special experts retained by
the Company in connection with such registration and (ix) the fees and expenses
of one legal counsel selected by the holders of a majority-in-interest, on an
as-converted to Common Stock basis, of the Registrable Securities included in
such registration. The Company shall have no obligation to pay any underwriting
discounts or selling

                                       9
<PAGE>

commissions attributable to the Registrable Securities being sold by the holders
thereof, which underwriting discounts or selling commissions shall be borne by
such holders. Additionally, in an underwritten offering, all selling
stockholders and the Company shall bear the reimbursable expenses of the
underwriter, if any, pro rata in proportion to the respective amount of shares
each is selling in such offering.

            3.4 INFORMATION. The holders of Registrable Securities shall provide
such information as may reasonably be requested by the Company, or the managing
Underwriter, if any, in connection with the preparation of any Registration
Statement, including amendments and supplements thereto, in order to effect the
registration of any Registrable Securities under the Securities Act pursuant to
Section 2 and in connection with the Company's obligation to comply with federal
and applicable state securities laws.

      4. INDEMNIFICATION AND CONTRIBUTION.

            4.1 INDEMNIFICATION BY THE COMPANY. The Company agrees to indemnify
and hold harmless each Investor and each other holder of Registrable Securities,
and each of their respective officers, employees, affiliates, directors,
partners, members, attorneys and agents, and each Person, if any, who controls
(within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act) an Investor and each other holder of Registrable Securities (each,
an "Investor Indemnified Party"), from and against any expenses, losses,
judgments, claims, damages or liabilities, whether joint or several, arising out
of or based upon any untrue statement (or allegedly untrue statement) of a
material fact contained in any Registration Statement under which the sale of
such Registrable Securities was registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to such Registration
Statement, or arising out of or based upon any omission (or alleged omission) to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, or any violation by the Company of the
Securities Act or any rule or regulation promulgated thereunder applicable to
the Company and relating to action or inaction required of the Company in
connection with any such registration; and the Company shall promptly reimburse
the Investor Indemnified Party for any legal and any other expenses reasonably
incurred by such Investor Indemnified Party in connection with investigating and
defending any such expense, lose, judgment, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such expense, loss, claim, damage or liability arises out of or
is based upon any untrue statement or allegedly untrue statement or omission or
alleged omission made in such Registration Statement, preliminary prospectus,
final prospectus, or summary prospectus, or any such amendment or supplement, in
reliance upon and in conformity with information furnished to the Company, in
writing, by such selling holder expressly for use therein. The Company also
shall indemnify any Underwriter of the Registrable Securities, their officers,
affiliates, directors, partners, members and agents and each Person who controls
such Underwriter on substantially the same basis as that of the indemnification
provided above in this Section 4.1.

            4.2 INDEMNIFICATION BY HOLDERS OF REGISTRABLE SECURITIES. Each
selling holder of Registrable Securities will, in the event that any
registration is being effected under the Securities Act pursuant to this
Agreement of any Registrable Securities held by such selling holder, indemnify
and hold harmless the Company, each of its directors and officers and each
underwriter (if any), and each other selling holder and each other Person, if
any, who controls another selling holder or such underwriter within the meaning
of the Securities Act, against any losses, claims, judgments, damages or
liabilities, whether joint or several, insofar as such losses, claims,
judgments, damages or liabilities (or actions in respect thereof) arise out of
or are based upon any untrue statement or allegedly untrue statement of a
material fact contained in any Registration Statement under which the sale of
such Registrable Securities was registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to the Registration

                                       10
<PAGE>

Statement, or arise out of or are based upon any omission or the alleged
omission to state a material fact required to be stated therein or necessary to
make the statement therein not misleading, if the statement or omission was made
in reliance upon and in conformity with information furnished in writing to the
Company by such selling holder expressly for use therein, and shall reimburse
the Company, its directors and officers, and each other selling holder or
controlling Person for any legal or other expenses reasonably incurred by any of
them in connection with investigation or defending any such loss, claim, damage,
liability or action. Each selling holder's indemnification obligations hereunder
shall be several and not joint and shall be limited to the amount of any net
proceeds actually received by such selling holder.

            4.3 CONDUCT OF INDEMNIFICATION PROCEEDINGS. Promptly after receipt
by any Person of any notice of any loss, claim, damage or liability or any
action in respect of which indemnity may be sought pursuant to Section 4.1 or
4.2, such Person (the "Indemnified Party") shall, if a claim in respect thereof
is to be made against any other Person for indemnification hereunder, notify
such other Person (the "Indemnifying Party") in writing of the loss, claim,
judgment, damage, liability or action; provided, however, that the failure by
the indemnified Party to notify the Indemnifying Party shall not relieve the
Indemnifying Party from any liability which the Indemnifying Party may have to
such Indemnified Party hereunder, except and solely to the extent the
Indemnifying Party is actually prejudiced by such failure. If the Indemnified
Party is seeking indemnification with respect to any claim or action brought
against the Indemnified Party, then the Indemnifying Party shall be entitled to
participate in such claim or action, and, to the extent that it wishes, jointly
with all other Indemnifying Parties, to assume control of the defense thereof
with counsel reasonably satisfactory to the Indemnified Party. After notice from
the Indemnifying Party to the Indemnified Party of its election to assume
control of the defense of such claim or action, the Indemnifying Party shall not
be liable to the Indemnified Party for any legal or other expenses subsequently
incurred by the Indemnified Party in connection with the defense thereof other
than reasonable costs of investigation; provided, however, that in any action in
which both the Indemnified Party and the Indemnifying Party are named as
defendants, the Indemnified Party shall have the right to employ separate
counsel (but no more than one such separate counsel) to represent the
Indemnified Party and its controlling Persons who may be subject to liability
arising out of any claim in respect of which indemnity may be sought by the
indemnified Party against the Indemnifying Party, with the reasonable fees and
reasonable expenses of such counsel to be paid by such Indemnifying Party if,
based upon the written opinion of counsel of such Indemnified Party,
representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them. No Indemnifying Party
shall, without the prior written consent of the Indemnified Party, consent to
entry of judgment or effect any settlement of any claim or pending or threatened
proceeding in respect of which the Indemnified Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Party,
unless such judgment or settlement includes an unconditional release of such
Indemnified Party from all liability arising out of such claim or proceeding.

            4.4 CONTRIBUTION.

                  4.4.1 If the indemnification provided for in the foregoing
Sections 4.1 and 4.2 is unavailable to any Indemnified Party in respect of any
loss, claim, damage, liability or action referred to herein, then each such
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such loss, claim, damage, liability or action in such proportion as is
appropriate to reflect the relative fault of the Indemnified Parties and the
Indemnifying Parties in connection with the actions or omissions which resulted
in such loss, claim, damage, liability or action, as well as any other relevant
equitable considerations. The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by

                                       11
<PAGE>

such Indemnified Party or such Indemnifying Party and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

                  4.4.2 The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 4.4 were determined by pro
rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding Section
4.4.1.

                  4.4.3 The amount paid or payable by an Indemnified Party as a
result of any loss, claim, damage, liability or action referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses incurred by such
Indemnified Party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 4.4, no holder of
Registrable Securities shall be required to contribute any amount in excess of
the dollar amount of the net proceeds (after payment of any underwriting fees,
discounts, commissions or taxes) actually received by such holder from the sale
of Registrable Securities which gave rise to such contribution obligation. No
Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

      5. UNDERWRITING AND DISTRIBUTION.

            5.1 RULE 144. The Company covenants that it shall file any reports
required to be filed by it under the Securities Act and the Exchange Act and
shall take such further action as the holders of Registrable Securities may
reasonably request, all to the extent required from time to time to enable such
holders to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144 under the
Securities Act, as such Rules may be amended from time to time, or any similar
Rule or regulation hereafter adopted by the Commission.

      6. MISCELLANEOUS.

            6.1 OTHER REGISTRATION RIGHTS. Except with respect to those
securities issued or issuable upon exercise of that certain Unit Purchase Option
to be issued to Sandler O'Neill or its designees in connection with the
Company's initial public offering on _________, 2007, the Company represents and
warrants that no Person, other than a holder of the Registrable Securities, has
any right to require the Company to register any shares of the Company's capital
stock for sale or to include shares of the Company's capital stock in any
registration filed by the Company for the sale of shares of capital stock for
its own account or for the account of any other Person.

            6.2 ASSIGNMENT; NO THIRD PARTY BENEFICIARIES. This Agreement and the
rights, duties and obligations of the Company hereunder may not be assigned or
delegated by the Company in whole or in part. This Agreement and the rights,
duties and obligations of the holders of Registrable Securities hereunder may be
freely assigned or delegated by such holder of Registrable Securities in
conjunction with and to the extent of any transfer of at least twenty (20%)
percent of the Registrable Securities held by any such holder. This Agreement
and the provisions hereof shall be binding upon and shall inure to the benefit
of (i) each of the parties hereto, (ii) Sandler O'Neill and its successors, and
(iii) the permitted assigns of the Investor or holder of Registrable Securities
or of any assignee of the Investor or holder of Registrable Securities. This
Agreement is not intended to confer any rights or benefits on any Persons that
are not party hereto other than as expressly set forth in Article 4 and this
Section 6.2.

            6.3 NOTICES. All notices, demands, requests, consents, approvals or
other communications (collectively, "Notices") required or permitted to be given
hereunder or which are given

                                       12
<PAGE>

with respect to this Agreement shall be in writing and shall be personally
served, delivered by reputable overnight courier service with charges prepaid,
or transmitted by hand delivery or facsimile, addressed as set forth below, or
to such other address as such party shall have specified most recently by
written notice. Notice shall be deemed given on the date of service or
transmission if personally served or transmitted by facsimile; provided, that if
such service or transmission is not on a business day or is after normal
business hours, then such notice shall be deemed given on the next business day.
Notice otherwise sent as provided herein shall be deemed given on the next
business day following timely delivery of such notice to a reputable overnight
courier service with an order for next-day delivery.

      To the Company:

      Western United Financial Corporation

      70 South Lake Avenue, Suite 900

      Pasadena, California 91101

      Attn: V. Charles Jackson

      with a copy to:

      Skadden, Arps, Slate, Meagher & Flom LLP

      300 South Grand Avenue, Suite 3400

      Los Angeles, California 90071

      Attn: Gregg A. Noel, Esq.

            Casey Fleck, Esq.

      To an Investor, to the address for such Investor specified on the
signature pages hereto.

            6.4 SEVERABILITY. This Agreement shall be deemed severable, and the
invalidity or unenforceability of any term or provision hereof shall not affect
the validity or enforceability of this Agreement or of any other term or
provision hereof. Furthermore, in lieu of any such invalid or unenforceable term
or provision, the parties hereto intend that there shall be added as a part of
this Agreement a provision as similar in terms to such invalid or unenforceable
provision as may be possible that is valid and enforceable.

            6.5 COUNTERPARTS. This Agreement may be executed by facsimile and in
multiple counterparts, and all of which taken together shall constitute one and
the same instrument.

            6.6 ENTIRE AGREEMENT. This Agreement (including all agreements
entered into pursuant hereto and all certificates and instruments delivered
pursuant hereto and thereto) constitutes the entire agreement of the parties
with respect to the subject matter hereof and supersedes all prior and
contemporaneous agreements, representations, understandings, negotiations and
discussions between the parties, whether oral or written.

            6.7 MODIFICATIONS AND AMENDMENTS. The Company may from time to time
supplement or amend this Agreement without the approval of any of the Investors
in order to cure any

                                       13
<PAGE>

ambiguity, to correct or supplement any provision contained herein that may be
defective or inconsistent with any other provisions herein, or to make any other
provisions in regard to matters or questions arising hereunder that the Company
may deem necessary or desirable and that the Company, in the exercise of
reasonable judgment, determines that it shall not materially adversely affect
the interest of the Investors. All other modifications or amendments shall
require the written consent of the holders of a majority-in-interest of the
Registrable Securities.

            6.8 TITLES AND HEADINGS. Titles and headings of sections of this
Agreement are for convenience only and shall not affect the construction of any
provision of this Agreement.

            6.9 WAIVERS AND EXTENSIONS. Any party to this Agreement may waive
any right, breach or default which such party has the right to waive, provided
that such waiver will not be effective against the waiving party unless it is in
writing, is signed by such party, and specifically refers to this Agreement.
Waivers may be made in advance or after the right waived has arisen or the
breach or default waived has occurred. Any waiver may be conditional. No waiver
of any breach of any agreement or provision herein contained shall be deemed a
waiver of any preceding or succeeding breach thereof nor of any other agreement
or provision herein contained. No waiver or extension of time for performance of
any obligations or acts shall be deemed a waiver or extension of the time for
performance of any other obligations or acts.

            6.10 REMEDIES CUMULATIVE. In the event that the Company fails to
observe or perform any covenant or agreement to be observed or performed under
this Agreement, the Investor or any other holder of Registrable Securities may
proceed to protect and enforce its rights by suit in equity or action at law,
whether for specific performance of any term contained in this Agreement or for
an injunction against the breach of any such term or in aid of the exercise of
any power granted in this Agreement or to enforce any other legal or equitable
right, or to take any one or more of such actions, without being required to
post a bond. None of the rights, powers or remedies conferred under this
Agreement shall be mutually exclusive, and each such right, power or remedy
shall be cumulative and in addition to any other right, power or remedy, whether
conferred by this Agreement or now or hereafter available at law, in equity, by
statute or otherwise.

            6.11 GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York applicable to
contracts executed in and to be performed in that State, including, without
limitation, Sections 5-1401 and 5-1402 of the New York General Obligations Law
and the New York Civil Practice Laws and Rules 327(b). The parties hereto agree
that any action, proceeding or claim against it arising out of or relating in
any way to this Agreement shall be brought and enforced in the courts of the
State of New York or the United States District Court for the Southern District
of New York, and irrevocably submit to such jurisdiction, which jurisdiction
shall be exclusive. The parties hereby waive any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum.

            6.12 WAIVER OF TRIAL BY JURY. Each party hereby irrevocably and
unconditionally waives the right to a trial by jury in any action, suit,
counterclaim or other proceeding (whether based on contract, tort or otherwise)
arising out of, connected with or relating to this Agreement, the transactions
contemplated hereby, or the actions of the Investor in the negotiation,
administration, performance or enforcement hereof.

                  [Remainder of Page Intentionally Left Blank]

                                       14
<PAGE>

            IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be executed and delivered by their duly authorized representatives
as of the date first written above.

                               WESTERN UNITED FINANCIAL CORPORATION

                               By: _____________________________________________
                               Name: V. Charles Jackson
                               Title: Chief Executive Officer

                               INVESTORS:

                               WESTERN UNITED FUNDING, LLC

                               By: _____________________________________________
                               Name: V. Charles Jackson
                               Title: Managing Member
                               Address: c/o Western United Financial Corporation
                               70 South Lake Avenue, Suite 900
                               Pasadena, California 91101

                               _________________________________________________
                               Name: V. Charles Jackson
                               Address: c/o Western United Financial Corporation
                               70 South Lake Avenue, Suite 900
                               Pasadena, California 91101

                               _________________________________________________
                               Name: Richard Alston
                               Address: c/o Western United Financial Corporation
                               70 South Lake Avenue, Suite 900
                               Pasadena, California 91101

                               _________________________________________________
                               Name: Timothy R. Chrisman
                               Address: c/o Western United Financial Corporation
                               70 South Lake Avenue, Suite 900
                               Pasadena, California 91101

                        [Registration Rights Agreement]
<PAGE>

                               _________________________________________________
                               Name: Peter W. Kuyper
                               Address: c/o Western United Financial Corporation
                               70 South Lake Avenue, Suite 900
                               Pasadena, California 91101

                               _________________________________________________
                               Name: Richard W. Dalbeck
                               Address: c/o Western United Financial Corporation
                               70 South Lake Avenue, Suite 900
                               Pasadena, California 91101

                               _________________________________________________
                               Name: George Strong
                               Address: c/o Western United Financial Corporation
                               70 South Lake Avenue, Suite 900
                               Pasadena, California 91101

                        [Registration Rights Agreement]

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