EXHIBIT K.5
BROKER-DEALER AGREEMENT
This Broker-Dealer Agreement dated as of _____, 2005, is between The
Bank of New York (the "Auction Agent") (not in its individual capacity, but
solely as agent of Tortoise Energy Infrastructure Corporation (the "Company")),
pursuant to authority granted to it in the Auction Agency Agreement between the
Company and the Auction Agent dated as of _____, 2005 (the "Auction Agency
Agreement") and Xxxxxx Brothers Inc. (together with its successors and assigns,
the "Broker-Dealer").
The Company proposes to offer [__________] aggregate principal amount
of auction rate senior notes Series C (the "Tortoise Notes"), authorized by, and
subject to the terms and conditions of, the Supplemental Indenture of Trust by
and between the Company and BNY Midwest Trust Company, in its capacity as
trustee (the "Trustee"), dated _____, 2005 (the "Supplemental Indenture"), which
supplements the Indenture, dated July 13, 2004, by and between the Company and
the Trustee.
The Supplemental Indenture provides that for each Rate Period of
outstanding series of Tortoise Notes following the initial Rate Period, the
Applicable Rate for each series of Tortoise Notes shall be equal to the rate per
annum that results from an Auction for outstanding notes of each series of
Tortoise Notes. The Board of Directors of the Company has adopted resolutions
appointing The Bank of New York as Auction Agent for purposes of the Auction
Procedures, and pursuant to Section 2.5 of the Auction Agency Agreement, the
Company has requested and directed the Auction Agent to execute and deliver this
Agreement.
The Auction Procedures require the participation of one or more
Broker-Dealers.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the Auction Agent and Broker-Dealer agree as
follows:
I. DEFINITIONS AND RULES OF CONSTRUCTION.
1.1 Terms Defined by Reference to the Supplemental Indenture.
Capitalized terms used herein but not defined herein shall have the
respective meanings specified in the Supplemental Indenture.
1.2 Terms Defined Herein.
As used herein, the following terms shall have the following meanings,
unless the context otherwise requires:
(a) "Auction" shall have the meaning specified in Section 2.1
of the Auction Agency Agreement.
(b) "Auction Procedures" shall mean the procedures as from
time to time in effect for conducting Auctions that are set forth in
Appendix A of the Supplemental Indenture.
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(c) "Authorized Officer" shall mean (i) in the case of the
Auction Agent, each Vice President, Assistant Vice President and
Assistant Treasurer of the Auction Agent assigned to the Dealing and
Trading Group of its Corporate Trust Division and every other officer
or employee of the Auction Agent designated an "Authorized Officer" for
purposes hereof in a written communication delivered to the Trustee,
(ii) in the case of the Company, its Treasurer and every other officer
or employee of the Company designated an "Authorized Officer" for
purposes hereof in a written communication delivered to the Auction
Agent, (iii) in the case of the Trustee, every officer or employee of
the Trustee designated as an "Authorized Officer" for purposes hereof
in a written communication delivered to the Auction Agent.
(d) "Broker-Dealer Officer" shall mean each officer or
employee of a Broker-Dealer designated as a "Broker-Dealer Officer" for
purposes of this Agreement in a written communication to the Auction
Agent.
(e) "Broker-Dealer Agreement" shall mean this Agreement and
any substantially similar agreement between the Auction Agent and a
Broker-Dealer.
1.3 Rules of Construction.
Unless the context or use indicates another or different meaning or
intent, the following rules shall apply to the construction of this Agreement:
(a) Words importing the singular number shall include the
plural number and vice versa.
(b) The captions and headings herein are solely for
convenience of reference and shall not constitute a part of this
Agreement, nor shall they affect its meaning, construction or effect.
(c) The words "hereof," "herein," "hereto," and other words of
similar import refer to this Agreement as a whole.
(d) All references herein to a particular time of day shall be
to New York City time.
II. NOTIFICATION OF RATE PERIOD.
The provisions contained in Article II, Section 2.04 of the
Supplemental Indenture concerning the notification of a Special Rate Period will
be followed by the Auction Agent and Broker-Dealer, and the provisions contained
therein are incorporated herein by reference in their entirety and shall be
deemed to be a part of this Agreement to the same extent as if such provisions
were set forth fully herein.
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III. THE AUCTION.
3.1 Purpose; Incorporation by Reference of Auction Procedures.
(a) On each Auction Date, the provisions of the Auction
Procedures will be followed by the Auction Agent for the purpose of
determining the Applicable Rate for the Tortoise Notes for the next
Rate Period. Each periodic operation of such procedures is hereinafter
referred to as an "Auction."
(b) All of the provisions contained in the Auction Procedures
are incorporated herein by reference in their entirety and shall be
deemed to be a part of this Agreement to the same extent as if such
provisions were set forth fully herein. In the case of any conflict
between the terms of any document incorporated herein by reference and
the terms hereof, the terms in this agreement shall control.
(c) Broker-Dealer agrees to act as, and assumes the
obligations of and limitations and restrictions placed upon, a
Broker-Dealer under this Agreement. Broker-Dealer understands that
other persons meeting the requirements specified in the definition of
"Broker-Dealer" contained in Article I, Section 1.01 of the
Supplemental Indenture may execute a Broker-Dealer Agreement and
participate as Broker-Dealers in Auctions.
(d) Broker-Dealer and other Broker-Dealers may participate in
Auctions for their own accounts. However, the Company, by notice to
Broker-Dealer and all other Broker Dealers, may prohibit all
Broker-Dealers from submitting Bids in Auctions for their own accounts,
provided that Broker-Dealers may continue to submit Hold Orders and
Sell Orders. The Auction Agent shall have no duty or liability with
respect to enforcement of this Section 3.1(d).
3.2 Preparation for Each Auction.
(a) Not later than 9:30 a.m. on each Auction Date for the
Tortoise Notes, the Auction Agent shall advise Broker-Dealer by
telephone of the Reference Rate and the Maximum Rate in effect on such
Auction Date.
(b) In the event that the Auction Date for any Auction shall
be changed after the Auction Agent has given the notice referred to in
paragraph (a) of the settlement procedures set forth on Exhibit A
hereto (the "Settlement Procedures"), the Auction Agent, by such means
as the Auction Agent reasonably deems practicable, shall give notice of
such change to Broker-Dealer not later than the earlier of 9:15 a.m. on
the new Auction Date or 9:15 a.m. on the old Auction Date. Thereafter,
Broker-Dealer promptly shall notify customers of Broker-Dealer that
Broker-Dealer believes are Beneficial Owners of Tortoise Notes of such
change in the Auction Date.
(c) The Auction Agent from time to time may, but shall have no
obligation to, request Broker-Dealer to provide it with a list of the
respective customers Broker-Dealer believes are Beneficial Owners of
Tortoise Notes. Broker-Dealer shall comply with any such request, and
the Auction Agent shall keep confidential any such information,
including information received as to the identity of Bidders in any
Auction, and shall not disclose any such information so provided to any
Person other than the Company; and such information shall not be used
by the
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Auction Agent or its officers, employees, agents or representatives for
any purpose other than such purposes as are described herein.
Notwithstanding the foregoing, the Auction Agent reserves the right and
is authorized to disclose any such information if (a) it is ordered to
do so by a court of competent jurisdiction or a regulatory body,
judicial or quasi-judicial agency or authority having the authority to
compel such disclosure, (b) it is advised by its counsel that its
failure to do so would be unlawful or (c) it is advised by its counsel
that failure to do so could expose the Auction Agent to loss liability,
claim or damage for which it has not received indemnity or security
satisfactory to it. In the event that the Auction Agent is required to
disclose information in accordance with the foregoing sentence, it
shall provide written notice of such requirement to Broker-Dealer as
promptly as practicable. The Auction Agent shall transmit any list of
customers Broker-Dealer believes are Beneficial Owners of Tortoise
Notes and information related thereto only to its officers, employees,
agents or representatives who need to know such information for the
purposes of acting in accordance with this Agreement, and the Auction
Agent shall prevent the transmission of such information to others and
shall cause its officers, employees, agents and representatives to
abide by the foregoing confidentiality restrictions.
3.3 Auction Schedule; Method of Submission of Orders.
(a) The Company and the Auction Agent shall conduct Auctions
for the Tortoise Notes in accordance with the schedule set forth below.
Such schedule may be changed at any time by the Auction Agent with the
consent of the Company, which consent shall not be withheld
unreasonably. The Auction Agent shall give notice of any such change to
Broker-Dealer. Such notice shall be received prior to the first Auction
Date on which any such change shall be effective.
Time Event
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By 9:30 a.m. The Auction Agent shall advise the
Company and the Broker-Dealers of
the Reference Rate and the Maximum
Rate as set forth in Section
3.2(a) hereof.
9:30 a.m. - 1:00 p.m. The Auction Agent shall assemble
information communicated to it by
Broker-Dealers as provided in
Section 2 of Appendix A of the
Supplemental Indenture.
Submission deadline is 1:00 p.m.
Not earlier than 1:00 p.m. The Auction Agent shall make
determinations pursuant to Section
3 of Appendix A of the
Supplemental Indenture.
By approximately 3:00 p.m. The Auction Agent shall advise the
Company of the results of the
Auction as provided in Section
3(b) of Appendix A of the
Supplemental Indenture. Submitted
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Bids and Submitted Sell Orders
will be accepted and rejected in
whole or in part and Tortoise
Notes will be allocated as
provided in Section 4 of Appendix
A of the Supplemental Indenture.
The Auction Agent shall give
notice of the Auction results as
set forth in Section 3.4(a)
hereof.
The Auction Agent will follow the Bond Market Association's Market
Practice U.S. Holiday Recommendations for shortened trading days for the bond
markets (the "BMA Recommendation") unless the Auction Agent is instructed
otherwise. In the event of a BMA Recommendation on an Auction Date, the
Submission Deadline will be 11:30 a.m., instead of 1:00 p.m., and as a result
the notice set forth in Section 3.3 will occur earlier.
(b) Broker-Dealer agrees to maintain a list of Potential
Beneficial Owners and to contact the Potential Beneficial Owners on
such list on or prior to each Auction Date for the purposes set forth
in Section 1(a)(ii) of Appendix A of the Supplemental Indenture.
(c) Broker-Dealer shall submit Orders to the Auction Agent in
writing in substantially the form attached hereto as Exhibit B.
Broker-Dealer shall submit separate Orders to the Auction Agent for
each Potential Beneficial Owner or Beneficial Owner on whose behalf
Broker-Dealer is submitting an Order and shall not net or aggregate the
Orders of Potential Beneficial Owners or Beneficial Owners on whose
behalf Broker-Dealer is submitting Orders.
(d) Broker-Dealer shall deliver to the Auction Agent (i) a
written notice, substantially in the form attached hereto as Exhibit C,
of transfers of Tortoise Notes, made through Broker-Dealer by a
Beneficial Owner to another Person other than pursuant to an Auction,
and (ii) a written notice, substantially in the form attached hereto as
Exhibit D, of the failure of Tortoise Notes to be transferred to or by
any Person that purchased or sold Tortoise Notes through Broker-Dealer
pursuant to an Auction. The Auction Agent is not required to accept any
notice delivered pursuant to the terms of the foregoing sentence with
respect to an Auction unless it is received by the Auction Agent by
3:00 p.m. on the Business Day preceding the applicable Auction Date.
3.4 Notice of Auction Results.
(a) On each Auction Date, the Auction Agent shall provide to
Broker-Dealer the notice required by paragraph (a) of the Settlement
Procedures. On the Business Day next succeeding such Auction Date, the
Auction Agent shall notify Broker-Dealer in writing of the disposition
of all Orders submitted by Broker-Dealer in the Auction held on such
Auction Date. The Auction Agent, unless instructed otherwise in writing
by the Company, is authorized to release the Winning Bid Rate after
each Auction for public dissemination.
(b) Broker-Dealer shall notify each Beneficial Owner or
Potential Beneficial Owner on whose behalf Broker-Dealer has submitted
an Order as set forth in paragraph (b) of the
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Settlement Procedures, and take such other action as is required of
Broker-Dealer pursuant to the Settlement Procedures.
If any Beneficial Owner or Existing Holder selling Tortoise Notes in an
Auction fails to deliver such Tortoise Notes, the Broker-Dealer of any Person
that was to have purchased Tortoise Notes in such Auction may deliver to such
Person a number of whole Tortoise Notes that is less than the number of Tortoise
Notes that otherwise was to be purchased by such Person. In such event, the
number of Tortoise Notes to be so delivered shall be determined by such
Broker-Dealer. Delivery of such lesser number of Tortoise Notes shall constitute
good delivery. Upon the occurrence of any such failure to deliver Tortoise
Notes, such Broker-Dealer shall deliver to the Auction Agent the notice required
by Section 3.3(d)(ii) hereof. Notwithstanding the foregoing terms of this
Section 3.4(b), any delivery or non-delivery of Tortoise Notes which represents
any departure from the results of an Auction, as determined by the Auction
Agent, shall be of no effect unless and until the Auction Agent shall have been
notified of such delivery or non-delivery in accordance with the terms of
Section 3.3(d) hereof.
3.5 Service Charge to be Paid to Broker-Dealer.
On each Interest Payment Date, the Auction Agent shall, promptly after
its receipt of funds from the Company, pay to each Broker-Dealer a service
charge in the amount equal to: (i) in the case of any Auction immediately
preceding a Rate Period of less than one year, the product of (A) a fraction the
numerator of which is the number of days in the Rate Period (calculated by
counting the first day of such Rate Period but excluding the last day thereof)
and the denominator of which is 360, times (B) 1/4 of 1%, times (C) $25,000
times (D) the sum of the aggregate number of Tortoise Notes placed by such
Broker-Dealer, or (ii) the amount mutually agreed upon by the Company and the
Broker-Dealers in the case of any Auction immediately preceding a Rate Period of
one year or longer. For the purposes of the preceding sentence, the Tortoise
Notes shall be placed by a Broker-Dealer if such notes were (i) the subject of
Hold Orders deemed to have been submitted to the Auction Agent by the
Broker-Dealer and were acquired by the Broker-Dealer for its own account or were
acquired by the Broker-Dealer for its customers who are Beneficial Owners or
(ii) the subject of an Order submitted by the Broker-Dealer that is (a) a
Submitted Bid of an Existing Holder that resulted in the Existing Holder
continuing to hold the notes as a result of the Auction or (b) a Submitted Bid
of a Potential Holder that resulted in the Potential Holder purchasing the notes
as a result of the Auction or (iii) a valid Hold Order. For the avoidance of
doubt, only one Broker-Dealer shall be considered to have placed a particular
Note at any particular Auction for purposes of this Section 3.5.
IV. THE AUCTION AGENT.
4.1 Duties and Responsibilities.
(a) The Auction Agent is acting solely as non-fiduciary agent
for the Company hereunder, has only the duties expressly set forth
herein, and owes no duties, fiduciary or otherwise, to any Person by
reason of this Agreement and no implied duties, fiduciary or otherwise,
shall be read into this Agreement against the Auction Agent.
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(b) The Auction Agent undertakes to perform such duties and
only such duties as are set forth specifically in this Agreement, and
no implied covenants or obligations shall be read into this Agreement
against the Auction Agent.
(c) In the absence of bad faith or gross negligence on its
part, the Auction Agent shall not be liable for any action taken,
suffered or omitted by it, or for any error of judgment made by it in
the performance of its duties under this Agreement. The Auction Agent
shall not be liable for any error of judgment made in good faith unless
the Auction Agent shall have been grossly negligent in ascertaining (or
failing to ascertain) the pertinent facts.
4.2 Rights of the Auction Agent.
(a) The Auction Agent may conclusively rely upon, and shall be
fully protected in acting or refraining from acting in accordance with,
any communication authorized by this Agreement and any proper written
instruction, notice, request, direction, consent, report, certificate,
certificate or other instrument, paper or document reasonably believed
by it to be genuine and appropriately authorized. The Auction Agent
shall not be liable for acting upon any telephone communication
authorized by this Agreement which the Auction Agent reasonably
believes in good faith, after reasonable inquiry, to have been given by
the Company or by a Broker-Dealer. The Auction Agent may record
telephone communications with the Company or with the Broker-Dealers or
with both.
(b) The Auction Agent may consult with counsel of its choice
and the advice of such counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by
the Auction Agent hereunder in good faith and in reasonable reliance
thereon.
(c) The Auction Agent shall not be required to advance, expend
or risk its own funds or otherwise incur or become exposed to financial
liability in the performance of its duties hereunder. Unless otherwise
instructed by the Company in writing, the Auction Agent (i) shall not
be obligated to invest any money received by it hereunder and (ii)
shall be under no liability for interest on any money received by it
hereunder.
(d) The Auction Agent may perform its duties and exercise its
rights hereunder either directly or by or through agents or attorneys
and shall not be responsible for any misconduct or negligence on the
part of any agent or attorney appointed by it with due care hereunder.
(e) The Auction Agent shall not be required to, and does not,
make any representations as to the validity, accuracy, value or
genuineness of any signatures or endorsements, other than its own and
those of its authorized officers.
(f) Any corporation into which the Auction Agent may be merged
or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the
Auction Agent shall be a party, or any corporation succeeding to the
dealing and trading business of the Auction Agent shall be the
successor of the Auction Agent hereunder, with the consent of the
Company but without the execution or filing of any paper with any party
hereto or any further act on the part of any of the parties hereto,
except where any
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instrument of transfer or assignment may be required by law to effect
such succession, anything herein to the contrary notwithstanding.
(g) All the rights, privileges, immunities and protections
granted to the Auction Agent herein are deemed granted to BNY Midwest
Trust Company, as Paying Agent, in any of the capacities it undertakes
in connection with this Agreement.
(h) Whenever in the administration of the provisions of this
Agreement, the Auction Agent shall deem it necessary or desirable that
a matter be proved or established prior to taking or suffering any
action to be taken hereunder, such matter, in the absence of gross
negligence or bad faith on the part of the Auction Agent, shall be
deemed to be conclusively proved and established by a certificate
describing the action requested by the Company or the Broker Dealer,
signed by the Company or the Broker Dealer, respectively, and delivered
to the Auction Agent and such certificate, in the absence of gross
negligence or bad faith on the part of the Auction Agent, shall be full
warrant to the Auction Agent for any action taken or omitted by it
under the provisions of this Agreement upon the faith thereof. Upon
receipt of any such certificate signed by the Company or the
Broker-Dealer, the Auction Agent shall promptly provide a copy of said
certificate to the Broker-Dealer or the Company, respectively. The
Auction Agent shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, entitlement,
order, approval or other paper or document furnished by the Company or
the Broker-Dealer, except to the extent that such failure to
investigate would be deemed grossly negligent.
V. MISCELLANEOUS.
5.1 Termination.
Any party may terminate this Agreement at any time upon five days'
prior written notice to the other party; provided, however, that if the
Broker-Dealer is Xxxxxx Brothers Inc. or Xxxxxx Xxxxxxxx & Company,
Incorporated, either Xxxxxx Brothers Inc. or Xxxxxx Xxxxxxxx & Company,
Incorporated, as the case may be, or the Auction Agent may terminate this
Agreement only upon 60 days' prior written notice to the other party and to the
Company. This Agreement shall automatically terminate upon the redemption of all
outstanding Tortoise Notes or upon termination of the Auction Agency Agreement.
5.2 Force Majeure
Neither party to this Agreement shall be responsible or liable for any
failure or delay in the performance of its obligations under this Agreement
arising out of or caused, directly or indirectly, by circumstances beyond its
reasonable control, including, without limitation, acts of God; earthquakes;
fires; floods; wars; civil or military disturbances; sabotage; epidemics; riots;
acts of terrorism; interruptions, loss or malfunctions of utilities, computer
(hardware or software) or communications services; accidents; labor disputes;
acts of civil or military authority or governmental actions; it being understood
that the parties shall use reasonable efforts which are consistent with accepted
practices in the banking industry to resume performance as soon as practicable
under the circumstances.
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5.3 Participant in Securities Depository; Payment of Interest in
Same-Day Funds.
(a) Broker-Dealer is at the date hereof, and shall remain for
the term of this Agreement, a member of, or a participant in, the
Securities Depository (or an affiliate of such a member or
participant).
(b) Broker-Dealer represents that it (or if Broker-Dealer does
not act as Agent Member, one of its affiliates) shall make all interest
payments on the Tortoise Notes available in same-day funds on each
Interest Payment Date to customers that use Broker-Dealer (or its
affiliate) as Agent Member.
5.4 Communications.
(a) Except for (i) communications authorized to be made by
telephone pursuant to this Agreement or the Auction Procedures and (ii)
communications with the Auctions (other than those expressly required
to be made in writing), all notices, requests and other communications
to any party hereunder shall be in writing (including telecopy or
similar writing) and shall be given to such party at its address or
telecopier number set forth below:
If to the Auction Agent, addressed to:
The Bank of New York
Corporate Trust Department
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Dealing & Trading Group - Auction Desk
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
If to the Broker-Dealer,
addressed to:
Xxxxxx Brothers Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Syndicate Department
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
or such other address or telecopier number as such party hereafter may specify
for such purpose by notice to the other party. Each such notice, request or
communication shall be effective when delivered at the address specified herein.
Communications shall be given on behalf of Broker-Dealer by a Broker-Dealer
Officer and on behalf of the Auction Agent by an Authorized Officer.
Broker-Dealer may record telephone communications with the Auction Agent.
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5.5 Entire Agreement.
This Agreement contains the entire agreement between the parties
relating to the subject matter hereof, and there are no other representations,
endorsements, promises, agreements or understandings, oral, written or implied,
between the parties relating to the subject matter hereof.
5.6 Benefits.
Nothing in this Agreement, express or implied, shall give to any
person, other than the Company, which is a third party beneficiary of this
Agreement, the Auction Agent and Broker-Dealer and their respective successors
and permitted assigns, any benefit of any legal or equitable right, remedy or
claim under this Agreement.
5.7 Amendment; Waiver.
(a) This Agreement shall not be deemed or construed to be
modified, amended, rescinded, canceled or waived, in whole or in part,
except by a written instrument signed by a duly authorized
representative of the party to be charged.
(b) Failure of either party to this Agreement to exercise any
right or remedy hereunder in the event of a breach of this Agreement by
the other party shall not constitute a waiver of any such right or
remedy with respect to any subsequent breach.
5.8 Successors and Assigns.
This Agreement shall be binding upon, inure to the benefit of, and be
enforceable by, the respective successors and permitted assigns of each of
Broker-Dealer and the Auction Agent. This Agreement may not be assigned by
either party hereto absent the prior written consent of the other party.
5.9 Severability.
If any clause, provision or section of this Agreement shall be ruled
invalid or unenforceable by any court of competent jurisdiction, the invalidity
or unenforceability of such clause, provision or section shall not affect any
remaining clause, provision or section hereof.
5.10 Execution in Counterparts.
This Agreement may be executed in several counterparts, each of which
shall be an original and all of which shall constitute but one and the same
instrument.
5.11 Governing Law, Jurisdiction, Waiver of Trial By Jury.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO ANY PROVISIONS
THEREOF RELATING TO CONFLICTS OF LAW, OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF NEW YORK). THE PARTIES AGREE HERETO THAT ALL ACTIONS AND
PROCEEDINGS ARISING OUT
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OF THIS BROKER-DEALER AGREEMENT OR ANY TRANSACTIONS CONTEMPLATED HEREBY SHALL BE
BROUGHT IN THE COURTS LOCATED IN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK,
STATE OF NEW YORK.
EACH PARTY WAIVES ANY OBJECTION THAT IT MAY HAVE THAT SUCH SUIT, ACTION
OR PROCEEDING BROUGHT IN THE COURTS LOCATED IN THE BOROUGH OF MANHATTAN, CITY OF
NEW YORK AND STATE OF NEW YORK WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES
NOT TO PLEAD OR CLAIM THE SAME. EACH OF THE PARTIES HERETO ALSO IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
[Signature page follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the date first above written.
The Bank of New York, as Auction Agent
By:
-----------------------------------
Name:
Title:
Xxxxxx Brothers Inc.
By:
-----------------------------------
Name:
Title:
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EXHIBIT A
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SETTLEMENT PROCEDURES
Capitalized terms used herein shall have the respective meanings
specified in the Supplemental Indenture.
(a) On each Auction Date, the Auction Agent shall notify by
telephone, or through the Auction Agent's auction processing system or
other means acceptable to the parties, the Broker-Dealers that
participated in the Auction held on such Auction Date and submitted an
Order on behalf of any Beneficial Owner or Potential Beneficial Owner
of:
(i) the Applicable Rate fixed for the next succeeding
Rate Period;
(ii) whether Sufficient Clearing Bids existed for the
determination of the Applicable Rate;
(iii) if such Broker-Dealer (a "Seller's
Broker-Dealer") submitted a Bid or a Sell Order on behalf of a
Beneficial Owner, the number of Tortoise Notes, if any, to be
sold by such Beneficial Owner;
(iv) if such Broker-Dealer (a "Buyer's
Broker-Dealer") submitted a Bid on behalf of a Potential
Beneficial Owner, the number of Tortoise Notes, if any, to be
purchased by such Potential Beneficial Owner;
(v) if the aggregate number of Tortoise Notes to be
sold by all Beneficial Owners on whose behalf such
Broker-Dealer submitted a Bid or a Sell Order exceeds the
aggregate number of Tortoise Notes to be purchased by all
Potential Beneficial Owners on whose behalf such Broker-Dealer
submitted a Bid, the name or names of one or more Buyer's
Broker-Dealers (and the name of the Agent Member, if any, of
each such Buyer's Broker-Dealer) acting for one or more
purchasers of such excess number of Tortoise Notes and the
number of such Tortoise Notes to be purchased from one or more
Beneficial Owners on whose behalf such Broker-Dealer acted by
one or more Potential Beneficial Owners on whose behalf each
of such Buyer's Broker-Dealers acted;
(vi) if the aggregate number of Tortoise Notes to be
purchased by all Potential Beneficial Owners on whose behalf
such Broker-Dealer submitted a Bid exceeds the aggregate
number of Tortoise Notes to be sold by all Beneficial Owners
on whose behalf such Broker-Dealer submitted a Bid or a Sell
Order, the name or names of one or more Seller's
Broker-Dealers (and the name of the Agent Member, if any, of
each such Seller's Broker-Dealer) acting for one or more
sellers of such excess number of Tortoise Notes and the number
of such Tortoise Notes to be sold to one or more Potential
Beneficial Owners on whose behalf such Broker-Dealer acted by
one or more Beneficial Owners on whose behalf each of such
Seller's Broker-Dealers acted; and
(vii) the Auction Date of the next succeeding Auction
with respect to the Tortoise Notes.
A-1
(b) On each Auction Date, each Broker-Dealer that submitted an
Order on behalf of any Beneficial Owner or Potential Beneficial Owner
shall:
(i) in the case of a Broker-Dealer that is a Buyer's
Broker-Dealer, instruct each Potential Beneficial Owner on
whose behalf such Broker-Dealer submitted a Bid that was
accepted, in whole or in part, to instruct such Potential
Beneficial Owner's Agent Member to pay to such Broker-Dealer
(or its Agent Member) through the Securities Depository the
amount necessary to purchase the number of Tortoise Notes to
be purchased pursuant to such Bid against receipt of such
Tortoise Notes and advise such Potential Beneficial Owner of
the Applicable Rate for the next succeeding Rate Period;
(ii) in the case of a Broker-Dealer that is a
Seller's Broker-Dealer, instruct each Beneficial Owner on
whose behalf such Broker-Dealer submitted a Sell Order that
was accepted, in whole or in part, or a Bid that was accepted,
in whole or in part, to instruct such Beneficial Owner's Agent
Member to deliver to such Broker-Dealer (or its Agent Member)
through the Securities Depository the number of Tortoise Notes
to be sold pursuant to such Order against payment therefor and
advise any such Beneficial Owner that will continue to hold
Tortoise Notes of the Applicable Rate for the next succeeding
Rate Period;
(iii) advise each Beneficial Owner on whose behalf
such Broker-Dealer submitted a Hold Order of the Applicable
Rate for the next succeeding Rate Period;
(iv) advise each Beneficial Owner on whose behalf
such Broker-Dealer submitted an Order of the Auction Date for
the next succeeding Auction; and
(v) advise each Potential Beneficial Owner on whose
behalf such Broker-Dealer submitted a Bid that was accepted,
in whole or in part, of the Auction Date for the next
succeeding Auction.
(c) On the basis of the information received by it pursuant to
(a) above, each Broker-Dealer that submitted a Bid or a Sell Order on
behalf of a Potential Beneficial Owner or a Beneficial Owner shall, in
such manner and at such time or times as in its sole discretion it may
determine, allocate any funds received by it pursuant to (b)(i) above
and any Tortoise Notes received by it pursuant to (b)(ii) above among
the Potential Beneficial Owners, if any, on whose behalf such
Broker-Dealer submitted Bids, the Beneficial Owners, if any, on whose
behalf such Broker-Dealer submitted Bids that were accepted or Sell
Orders, and any Broker-Dealer or Broker-Dealers identified to it by the
Auction Agent pursuant to (a)(v) or (a)(vi) above.
(d) On each Auction Date:
(i) each Potential Beneficial Owner and Beneficial
Owner shall instruct its Agent Member as provided in (b)(i) or
(ii) above, as the case may be;
(ii) each Seller's Broker-Dealer which is not an
Agent Member of the Securities Depository shall instruct its
Agent Member to (A) pay through the Securities Depository to
the Agent Member of the Beneficial Owner delivering Tortoise
Notes to such Broker-Dealer pursuant to (b)(ii) above the
amount necessary to purchase such Tortoise Notes against
receipt of such Tortoise Notes, and (B) deliver such Tortoise
Notes through the Securities
A-2
Depository to a Buyer's Broker-Dealer (or its Agent Member)
identified to such Seller's Broker-Dealer pursuant to (a)(v)
above against payment therefor; and
(iii) each Buyer's Broker-Dealer which is not an
Agent Member of the Securities Depository shall instruct its
Agent Member to (A) pay through the Securities Depository to a
Seller's Broker-Dealer (or its Agent Member) identified
pursuant to (a)(vi) above the amount necessary to purchase the
Tortoise Notes to be purchased pursuant to (b)(i) above
against receipt of such Tortoise Notes, and (B) deliver such
Tortoise Notes through the Securities Depository to the Agent
Member of the purchaser thereof against payment therefor.
(e) On the day after the Auction Date:
(i) each Bidder's Agent Member referred to in (d)(i)
above shall instruct the Securities Depository to execute the
transactions described in (b)(i) or (ii) above, and the
Securities Depository shall execute such transactions;
(ii) each Seller's Broker-Dealer or its Agent Member
shall instruct the Securities Depository to execute the
transactions described in (d)(ii) above, and the Securities
Depository shall execute such transactions; and
(iii) each Buyer's Broker-Dealer or its Agent Member
shall instruct the Securities Depository to execute the
transactions described in (d)(iii) above, and the Securities
Depository shall execute such transactions.
(f) If a Beneficial Owner selling Tortoise Notes in an Auction
fails to deliver such Tortoise Notes (by authorized book-entry), a
Broker-Dealer may deliver to the Potential Beneficial Owner on behalf
of which it submitted a Bid that was accepted a number of whole
Tortoise Notes that is less than the number of Tortoise Notes that
otherwise was to be purchased by such Potential Beneficial Owner. In
such event, the number of Tortoise Notes to be so delivered shall be
determined solely by such Broker-Dealer. Delivery of such lesser number
of Tortoise Notes shall constitute good delivery. Notwithstanding the
foregoing terms of this paragraph (f), any delivery or non-delivery of
Tortoise Notes which shall represent any departure from the results of
an Auction, as determined by the Auction Agent, shall be of no effect
unless and until the Auction Agent shall have been notified of such
delivery or non-delivery in accordance with the provisions of the
Auction Agency Agreement and the Broker-Dealer Agreements.
A-3
EXHIBIT B
---------
AUCTION BID FORM
Submit To: Issue:
Tortoise Notes of Tortoise Energy Infrastructure
Corporation
The undersigned Broker-Dealer submits the following Order on behalf of the
Bidder listed below:
Name of Bidder: _____________________________________
BENEFICIAL OWNER
Notes now held ______________________ HOLD __________________
BID at rate of____________________
SELL______________________________
POTENTIAL BENEFICIAL OWNER
# of Notes___________
BID at rate of___________ Notes:
(1) If submitting more than one Bid for one Bidder, use additional
Auction Bid Forms.
(2) If one or more Bids covering in the aggregate more than the
number of outstanding Tortoise Notes held by any Beneficial
Owner are submitted, such bid shall be considered valid in the
order of priority set forth in the Auction Procedures on the
above issue.
(3) A Hold or Sell Order may be placed only by a Beneficial Owner
covering a number of Tortoise Notes not greater than the
number of Tortoise Notes currently held.
(4) Potential Beneficial Owners may make only Bids, each of which
must specify a rate. If more than one Bid is submitted on
behalf of any Potential Beneficial Owner, each Bid submitted
shall be a separate Bid with the rate specified.
(5) Bids may contain no more than three figures to the right of
the decimal point (.001 of 1%). Fractions will not be
accepted.
(6) An Order must be submitted in whole Tortoise Notes.
-------------------------------------------------
B-1
------------------------------------------------------
Authorized Signature:
--------------------------------
Name:
Title:
B-2
EXHIBIT C
---------
(Note: To be used only for transfers made other than pursuant to an Auction)
TRANSFER FORM
Re: __________________________________________Series__________________
("Tortoise Notes")
We are (check one):
[ ] the Existing Holder named below;
[ ] the Broker-Dealer for such Beneficial Owner; or
[ ] the Agent Member for such Existing Holder.
We hereby notify you that such Beneficial Owner has transferred
_________ Tortoise Notes to __________________________________
____________________________________
(Name of Existing Holder)
____________________________________
(Name of Broker-Dealer)
____________________________________
(Name of Agent Member)
By:
---------------------------------------
Printed Name:
Title:
C-1
EXHIBIT D
---------
(Note: To be used only for failures to deliver or to pay for
Tortoise Notes sold pursuant to an Auction)
NOTICE OF A FAILURE TO DELIVER
We are a Broker-Dealer for _____________________ (the "Purchaser"),
which purchased _____ Tortoise Notes, Series _____ of
____________________________________ in the Auction held on ____________________
from the seller of such Tortoise Notes.
We hereby notify you that (check one):
______ the Seller failed to deliver such Tortoise Notes to the Purchaser.
______ the Purchaser failed to make payment to the Seller upon delivery of
such Tortoise Notes.
Name:__________________________________
By:____________________________________
Printed Name:
Title:
D-1
