Community Capital Bancshares, Inc./Guarantee Agreement/Floating Rate
186
------
EXHIBIT 4.4
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GUARANTEE AGREEMENT
BY AND BETWEEN
COMMUNITY CAPITAL BANCSHARES, INC.
AND
U. S. BANK NATIONAL ASSOCIATION
DATED AS OF MARCH 26, 2003
=================================================
187
GUARANTEE AGREEMENT
-------------------
This GUARANTEE AGREEMENT (this "Guarantee"), dated as of March 26, 2003, is
executed and delivered by Community Capital Bancshares, Inc., a Georgia
corporation (the "Guarantor"), and U. S. Bank National Association, a national
banking association, organized under the laws of the United States of America,
as trustee (the "Guarantee Trustee"), for the benefit of the Holders (as defined
herein) from time to time of the Capital Securities (as defined herein) of
Community Capital Statutory Trust I, a Connecticut statutory trust (the
"Issuer").
WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"), dated as of the date hereof among U. S. Bank National
Association, not in its individual capacity but solely as institutional trustee,
the administrators of the Issuer named therein, the Guarantor, as sponsor, and
the holders from time to time of undivided beneficial interests in the assets of
the Issuer, the Issuer is issuing on the date hereof those undivided beneficial
interests, having an aggregate liquidation amount of $4,000,000.00 (the "Capital
Securities"); and
WHEREAS, as incentive for the Holders to purchase the Capital Securities,
the Guarantor desires irrevocably and unconditionally to agree, to the extent
set forth in this Guarantee, to pay to the Holders of Capital Securities the
Guarantee Payments (as defined herein) and to make certain other payments on the
terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the purchase by each Holder of the
Capital Securities, which purchase the Guarantor hereby agrees shall benefit the
Guarantor, the Guarantor executes and delivers this Guarantee for the benefit of
the Holders.
DEFINITIONS AND INTERPRETATION
Definitions and Interpretation. In this Guarantee, unless the context
otherwise requires:
CAPITALIZED TERMS USED IN THIS GUARANTEE BUT NOT DEFINED IN THE PREAMBLE
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ABOVE HAVE THE RESPECTIVE MEANINGS ASSIGNED TO THEM IN THIS SECTION 1.1;
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A TERM DEFINED ANYWHERE IN THIS GUARANTEE HAS THE SAME MEANING THROUGHOUT;
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ALL REFERENCES TO "THE GUARANTEE" OR "THIS GUARANTEE" ARE TO THIS GUARANTEE
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AS MODIFIED, SUPPLEMENTED OR AMENDED FROM TIME TO TIME;
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ALL REFERENCES IN THIS GUARANTEE TO "ARTICLES" OR "SECTIONS" ARE TO
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ARTICLES OR SECTIONS OF THIS GUARANTEE, UNLESS OTHERWISE SPECIFIED;
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TERMS DEFINED IN THE DECLARATION AS AT THE DATE OF EXECUTION OF THIS
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GUARANTEE HAVE THE SAME MEANINGS WHEN USED IN THIS GUARANTEE, UNLESS OTHERWISE
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DEFINED IN THIS GUARANTEE OR UNLESS THE CONTEXT OTHERWISE REQUIRES; AND
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188
A REFERENCE TO THE SINGULAR INCLUDES THE PLURAL AND VICE VERSA.
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"Affiliate" has the same meaning as given to that term in Rule 405 of the
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Securities Act of 1933, as amended, or any successor rule thereunder.
"Beneficiaries" means any Person to whom the Issuer is or hereafter becomes
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indebted or liable.
"Capital Securities" has the meaning set forth in the recitals to this
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Guarantee.
"Common Securities" means the common securities issued by the Issuer to the
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Guarantor pursuant to the Declaration.
"Corporate Trust Office" means the office of the Guarantee Trustee at which
----------------------
the corporate trust business of the Guarantee Trustee shall, at any particular
time, be principally administered, which office at the date of execution of this
Guarantee is located at 000 Xxxxxx Xxxxxx, Xxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxxx
00000.
"Covered Person" means any Holder of Capital Securities.
---------------
"Debentures" means the debt securities of the Guarantor designated the
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Floating Rate Junior Subordinated Deferrable Interest Debentures due 2033 held
by the Institutional Trustee (as defined in the Declaration) of the Issuer.
"Declaration Event of Default" means an "Event of Default" as defined in
-------------------------------
the Declaration.
"Event of Default" has the meaning set forth in Section 2.4(a).
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"Guarantee Payments" means the following payments or distributions, without
------------------
duplication, with respect to the Capital Securities, to the extent not paid or
made by the Issuer: (i) any accrued and unpaid Distributions (as defined in the
Declaration) which are required to be paid on such Capital Securities to the
extent the Issuer shall have funds available therefor, (ii) the Redemption Price
to the extent the Issuer has funds available therefor, with respect to any
Capital Securities called for redemption by the Issuer, (iii) the Special
Redemption Price to the extent the Issuer has funds available therefor, with
respect to Capital Securities redeemed upon the occurrence of a Special Event,
and (iv) upon a voluntary or involuntary liquidation, dissolution, winding-up or
termination of the Issuer (other than in connection with the distribution of
Debentures to the Holders of the Capital Securities in exchange therefor as
provided in the Declaration), the lesser of (a) the aggregate of the liquidation
amount and all accrued and unpaid Distributions on the Capital Securities to the
date of payment, to the extent the Issuer shall have funds available therefor,
and (b) the amount of assets of the Issuer remaining available for distribution
to Holders in liquidation of the Issuer (in either case, the "Liquidation
Distribution").
"Guarantee Trustee" means U. S. Bank National Association, until a
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Successor Guarantee Trustee has been appointed and has accepted such appointment
pursuant to the terms of this Guarantee and thereafter means each such Successor
Guarantee Trustee.
"Guarantor" means Community Capital Bancshares, Inc. and each of its
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successors and assigns.
189
"Holder" means any holder, as registered on the books and records of the
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Issuer, of any Capital Securities; provided, however, that, in determining
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whether the Holders of the requisite percentage of Capital Securities have given
any request, notice, consent or waiver hereunder, "Holder" shall not include the
Guarantor or any Affiliate of the Guarantor.
"Indemnified Person" means the Guarantee Trustee, any Affiliate of the
-------------------
Guarantee Trustee, or any officers, directors, shareholders, members, partners,
employees, representatives, nominees, custodians or agents of the Guarantee
Trustee.
"Indenture" means the Indenture dated as of the date hereof between the
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Guarantor and U. S. Bank National Association, not in its individual capacity
but solely as trustee, and any indenture supplemental thereto pursuant to which
the Debentures are to be issued to the institutional trustee of the Issuer.
"Issuer" has the meaning set forth in the opening paragraph to this
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Guarantee.
"Liquidation Distribution" has the meaning set forth in the definition of
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"Guarantee Payments" herein.
"Majority in liquidation amount of the Capital Securities" means Holder(s)
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of outstanding Capital Securities, voting together as a class, but separately
from the holders of Common Securities, of more than 50% of the aggregate
liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the voting percentages are determined) of all Capital
Securities then outstanding.
"Obligations" means any costs, expenses or liabilities (but not including
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liabilities related to taxes) of the Issuer other than obligations of the Issuer
to pay to holders of any Trust Securities the amounts due such holders pursuant
to the terms of the Trust Securities.
"Officer's Certificate" means, with respect to any Person, a certificate
----------------------
signed by one Authorized Officer of such Person. Any Officer's Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Guarantee shall include:
(a) a statement that the officer signing the Officer's Certificate
has read the covenant or condition and the definitions relating thereto;
(b) a brief statement of the nature and scope of the examination
or investigation undertaken by the officer in rendering the Officer's
Certificate;
(c) a statement that the officer has made such examination
or investigation as, in such officer's opinion, is necessary to enable such
officer to express an informed opinion as to whether or not such covenant
or condition has been complied with; and
(d) a statement as to whether, in the opinion of the officer,
such condition or covenant has been complied with.
"Person" means a legal person, including any individual, corporation,
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estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature
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"Redemption Price" has the meaning set forth in the Indenture.
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"Responsible Officer" means, with respect to the Guarantee Trustee, any
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officer within the Corporate Trust Office of the Guarantee Trustee including any
Vice President, Assistant Vice President, Secretary, Assistant Secretary or any
other officer of the Guarantee Trustee customarily performing functions similar
to those performed by any of the above designated officers and also, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of that officer's knowledge of and familiarity with
the particular subject.
"Special Event" has the meaning set forth in the Indenture.
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"Special Redemption Price" has the meaning set forth in the Indenture.
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"Successor Guarantee Trustee" means a successor Guarantee Trustee
-----------------------------
possessing the qualifications to act as Guarantee Trustee under Section 3.1.
"Trust Securities" means the Common Securities and the Capital Securities.
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POWERS, DUTIES AND RIGHTS OF
GUARANTEE TRUSTEE
POWERS AND DUTIES OF THE GUARANTEE TRUSTEE.
THIS GUARANTEE SHALL BE HELD BY THE GUARANTEE TRUSTEE FOR THE BENEFIT OF THE
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HOLDERS OF THE CAPITAL SECURITIES, AND THE GUARANTEE TRUSTEE SHALL NOT TRANSFER
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THIS GUARANTEE TO ANY PERSON EXCEPT A HOLDER OF CAPITAL SECURITIES EXERCISING
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HIS OR HER RIGHTS PURSUANT TO SECTION 4.4(B) OR TO A SUCCESSOR GUARANTEE TRUSTEE
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ON ACCEPTANCE BY SUCH SUCCESSOR GUARANTEE TRUSTEE OF ITS APPOINTMENT TO ACT AS
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SUCCESSOR GUARANTEE TRUSTEE. THE RIGHT, TITLE AND INTEREST OF THE GUARANTEE
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TRUSTEE SHALL AUTOMATICALLY VEST IN ANY SUCCESSOR GUARANTEE TRUSTEE, AND SUCH
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VESTING AND CESSATION OF TITLE SHALL BE EFFECTIVE WHETHER OR NOT CONVEYANCING
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DOCUMENTS HAVE BEEN EXECUTED AND DELIVERED PURSUANT TO THE APPOINTMENT OF SUCH
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SUCCESSOR GUARANTEE TRUSTEE.
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IF AN EVENT OF DEFAULT ACTUALLY KNOWN TO A RESPONSIBLE OFFICER OF THE
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GUARANTEE TRUSTEE HAS OCCURRED AND IS CONTINUING, THE GUARANTEE TRUSTEE SHALL
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ENFORCE THIS GUARANTEE FOR THE BENEFIT OF THE HOLDERS OF THE CAPITAL SECURITIES.
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THE GUARANTEE TRUSTEE, BEFORE THE OCCURRENCE OF ANY EVENT OF DEFAULT AND
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AFTER CURING ALL EVENTS OF DEFAULT THAT MAY HAVE OCCURRED, SHALL UNDERTAKE TO
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PERFORM ONLY SUCH DUTIES AS ARE SPECIFICALLY SET FORTH IN THIS GUARANTEE, AND NO
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IMPLIED COVENANTS SHALL BE READ INTO THIS GUARANTEE AGAINST THE GUARANTEE
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TRUSTEE. IN CASE AN EVENT OF DEFAULT HAS OCCURRED (THAT HAS NOT BEEN WAIVED
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PURSUANT TO SECTION 2.4) AND IS ACTUALLY KNOWN TO A RESPONSIBLE OFFICER OF THE
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GUARANTEE TRUSTEE, THE GUARANTEE TRUSTEE SHALL EXERCISE SUCH OF THE RIGHTS AND
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POWERS VESTED IN IT BY THIS GUARANTEE, AND USE THE SAME DEGREE OF CARE AND SKILL
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IN ITS EXERCISE THEREOF, AS A PRUDENT PERSON WOULD EXERCISE OR USE UNDER THE
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CIRCUMSTANCES IN THE CONDUCT OF HIS OR HER OWN AFFAIRS.
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191
NO PROVISION OF THIS GUARANTEE SHALL BE CONSTRUED TO RELIEVE THE GUARANTEE
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TRUSTEE FROM LIABILITY FOR ITS OWN NEGLIGENT ACTION, ITS OWN NEGLIGENT FAILURE
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TO ACT, OR ITS OWN WILLFUL MISCONDUCT, EXCEPT THAT:
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PRIOR TO THE OCCURRENCE OF ANY EVENT OF DEFAULT AND AFTER THE CURING
OR WAIVING OF ALL SUCH EVENTS OF DEFAULT THAT MAY HAVE OCCURRED:
the duties and obligations of the Guarantee Trustee shall be
determined solely by the express provisions of this Guarantee, and the
Guarantee Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this
Guarantee, and no implied covenants or obligations shall be read into
this Guarantee against the Guarantee Trustee; and
in the absence of bad faith on the part of the Guarantee Trustee,
the Guarantee Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
any certificates or opinions furnished to the Guarantee Trustee and
conforming to the requirements of this Guarantee; but in the case of
any such certificates or opinions that by any provision hereof are
specifically required to be furnished to the Guarantee Trustee, the
Guarantee Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this
Guarantee;
THE GUARANTEE TRUSTEE SHALL NOT BE LIABLE FOR ANY ERROR OF JUDGMENT
MADE IN GOOD FAITH BY A RESPONSIBLE OFFICER OF THE GUARANTEE TRUSTEE,
UNLESS IT SHALL BE PROVED THAT SUCH RESPONSIBLE OFFICER OF THE GUARANTEE
TRUSTEE OR THE GUARANTEE TRUSTEE WAS NEGLIGENT IN ASCERTAINING THE
PERTINENT FACTS UPON WHICH SUCH JUDGMENT WAS MADE;
THE GUARANTEE TRUSTEE SHALL NOT BE LIABLE WITH RESPECT TO ANY ACTION
TAKEN OR OMITTED TO BE TAKEN BY IT IN GOOD FAITH IN ACCORDANCE WITH THE
WRITTEN DIRECTION OF THE HOLDERS OF NOT LESS THAN A MAJORITY IN LIQUIDATION
AMOUNT OF THE CAPITAL SECURITIES RELATING TO THE TIME, METHOD AND PLACE OF
CONDUCTING ANY PROCEEDING FOR ANY REMEDY AVAILABLE TO THE GUARANTEE
TRUSTEE, OR RELATING TO THE EXERCISE OF ANY TRUST OR POWER CONFERRED UPON
THE GUARANTEE TRUSTEE UNDER THIS GUARANTEE; AND
NO PROVISION OF THIS GUARANTEE SHALL REQUIRE THE GUARANTEE TRUSTEE TO
EXPEND OR RISK ITS OWN FUNDS OR OTHERWISE INCUR PERSONAL FINANCIAL
LIABILITY IN THE PERFORMANCE OF ANY OF ITS DUTIES OR IN THE EXERCISE OF ANY
OF ITS RIGHTS OR POWERS, IF THE GUARANTEE TRUSTEE SHALL HAVE REASONABLE
GROUNDS FOR BELIEVING THAT THE REPAYMENT OF SUCH FUNDS IS NOT REASONABLY
ASSURED TO IT UNDER THE TERMS OF THIS GUARANTEE OR SECURITY AND INDEMNITY,
REASONABLY SATISFACTORY TO THE GUARANTEE TRUSTEE, AGAINST SUCH RISK OR
LIABILITY IS NOT REASONABLY ASSURED TO IT.
CERTAIN RIGHTS OF GUARANTEE TRUSTEE.
SUBJECT TO THE PROVISIONS OF SECTION 2.1:
-----------------------------------------------
THE GUARANTEE TRUSTEE MAY CONCLUSIVELY RELY, AND SHALL BE FULLY
PROTECTED IN ACTING OR REFRAINING FROM ACTING UPON, ANY RESOLUTION,
CERTIFICATE, STATEMENT, INSTRUMENT, OPINION, REPORT, NOTICE, REQUEST,
DIRECTION, CONSENT, ORDER, BOND, DEBENTURE, NOTE, OTHER EVIDENCE OF
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INDEBTEDNESS OR OTHER PAPER OR DOCUMENT BELIEVED BY IT TO BE GENUINE AND TO
HAVE BEEN SIGNED, SENT OR PRESENTED BY THE PROPER PARTY OR PARTIES.
ANY DIRECTION OR ACT OF THE GUARANTOR CONTEMPLATED BY THIS GUARANTEE
SHALL BE SUFFICIENTLY EVIDENCED BY AN OFFICER'S CERTIFICATE.
WHENEVER, IN THE ADMINISTRATION OF THIS GUARANTEE, THE GUARANTEE
TRUSTEE SHALL DEEM IT DESIRABLE THAT A MATTER BE PROVED OR ESTABLISHED
BEFORE TAKING, SUFFERING OR OMITTING ANY ACTION HEREUNDER, THE GUARANTEE
TRUSTEE (UNLESS OTHER EVIDENCE IS HEREIN SPECIFICALLY PRESCRIBED) MAY, IN
THE ABSENCE OF BAD FAITH ON ITS PART, REQUEST AND CONCLUSIVELY RELY UPON AN
OFFICER'S CERTIFICATE OF THE GUARANTOR WHICH, UPON RECEIPT OF SUCH REQUEST,
SHALL BE PROMPTLY DELIVERED BY THE GUARANTOR.
THE GUARANTEE TRUSTEE SHALL HAVE NO DUTY TO SEE TO ANY RECORDING,
FILING OR REGISTRATION OF ANY INSTRUMENT (OR ANY RE-RECORDING, REFILING OR
RE-REGISTRATION THEREOF).
THE GUARANTEE TRUSTEE MAY CONSULT WITH COUNSEL OF ITS SELECTION, AND
THE ADVICE OR OPINION OF SUCH COUNSEL WITH RESPECT TO LEGAL MATTERS SHALL
BE FULL AND COMPLETE AUTHORIZATION AND PROTECTION IN RESPECT OF ANY ACTION
TAKEN, SUFFERED OR OMITTED BY IT HEREUNDER IN GOOD FAITH AND IN ACCORDANCE
WITH SUCH ADVICE OR OPINION. SUCH COUNSEL MAY BE COUNSEL TO THE GUARANTOR
OR ANY OF ITS AFFILIATES AND MAY INCLUDE ANY OF ITS EMPLOYEES. THE
GUARANTEE TRUSTEE SHALL HAVE THE RIGHT AT ANY TIME TO SEEK INSTRUCTIONS
CONCERNING THE ADMINISTRATION OF THIS GUARANTEE FROM ANY COURT OF COMPETENT
JURISDICTION.
THE GUARANTEE TRUSTEE SHALL BE UNDER NO OBLIGATION TO EXERCISE ANY OF
THE RIGHTS OR POWERS VESTED IN IT BY THIS GUARANTEE AT THE REQUEST OR
DIRECTION OF ANY HOLDER, UNLESS SUCH HOLDER SHALL HAVE PROVIDED TO THE
GUARANTEE TRUSTEE SUCH SECURITY AND INDEMNITY, REASONABLY SATISFACTORY TO
THE GUARANTEE TRUSTEE, AGAINST THE COSTS, EXPENSES (INCLUDING ATTORNEYS'
FEES AND EXPENSES AND THE EXPENSES OF THE GUARANTEE TRUSTEE'S AGENTS,
NOMINEES OR CUSTODIANS) AND LIABILITIES THAT MIGHT BE INCURRED BY IT IN
COMPLYING WITH SUCH REQUEST OR DIRECTION, INCLUDING SUCH REASONABLE
ADVANCES AS MAY BE REQUESTED BY THE GUARANTEE TRUSTEE; PROVIDED, HOWEVER,
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THAT NOTHING CONTAINED IN THIS SECTION 2.2(A)(VI) SHALL RELIEVE THE
GUARANTEE TRUSTEE, UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, OF ITS
OBLIGATION TO EXERCISE THE RIGHTS AND POWERS VESTED IN IT BY THIS
GUARANTEE.
THE GUARANTEE TRUSTEE SHALL NOT BE BOUND TO MAKE ANY INVESTIGATION
INTO THE FACTS OR MATTERS STATED IN ANY RESOLUTION, CERTIFICATE, STATEMENT,
INSTRUMENT, OPINION, REPORT, NOTICE, REQUEST, DIRECTION, CONSENT, ORDER,
BOND, DEBENTURE, NOTE, OTHER EVIDENCE OF INDEBTEDNESS OR OTHER PAPER OR
DOCUMENT, BUT THE GUARANTEE TRUSTEE, IN ITS DISCRETION, MAY MAKE SUCH
FURTHER INQUIRY OR INVESTIGATION INTO SUCH FACTS OR MATTERS AS IT MAY SEE
FIT.
THE GUARANTEE TRUSTEE MAY EXECUTE ANY OF THE TRUSTS OR POWERS
HEREUNDER OR PERFORM ANY DUTIES HEREUNDER EITHER DIRECTLY OR BY OR THROUGH
AGENTS, NOMINEES, CUSTODIANS OR ATTORNEYS, AND THE GUARANTEE TRUSTEE SHALL
NOT BE RESPONSIBLE FOR ANY MISCONDUCT OR NEGLIGENCE ON THE PART OF ANY
AGENT OR ATTORNEY APPOINTED WITH DUE CARE BY IT HEREUNDER.
ANY ACTION TAKEN BY THE GUARANTEE TRUSTEE OR ITS AGENTS HEREUNDER
SHALL BIND THE HOLDERS OF THE CAPITAL SECURITIES, AND THE SIGNATURE OF THE
GUARANTEE TRUSTEE OR ITS AGENTS ALONE SHALL BE SUFFICIENT AND EFFECTIVE TO
PERFORM ANY SUCH ACTION. NO THIRD PARTY SHALL BE REQUIRED TO INQUIRE AS TO
THE AUTHORITY OF THE GUARANTEE TRUSTEE TO SO ACT OR AS TO ITS
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COMPLIANCE WITH ANY OF THE TERMS AND PROVISIONS OF THIS GUARANTEE, BOTH OF
WHICH SHALL BE CONCLUSIVELY EVIDENCED BY THE GUARANTEE TRUSTEE'S OR ITS
AGENT'S TAKING SUCH ACTION.
WHENEVER IN THE ADMINISTRATION OF THIS GUARANTEE THE GUARANTEE TRUSTEE
SHALL DEEM IT DESIRABLE TO RECEIVE INSTRUCTIONS WITH RESPECT TO ENFORCING
ANY REMEDY OR RIGHT OR TAKING ANY OTHER ACTION HEREUNDER, THE GUARANTEE
TRUSTEE (I) MAY REQUEST INSTRUCTIONS FROM THE HOLDERS OF A MAJORITY IN
LIQUIDATION AMOUNT OF THE CAPITAL SECURITIES, (II) MAY REFRAIN FROM
ENFORCING SUCH REMEDY OR RIGHT OR TAKING SUCH OTHER ACTION UNTIL SUCH
INSTRUCTIONS ARE RECEIVED, AND (III) SHALL BE PROTECTED IN CONCLUSIVELY
RELYING ON OR ACTING IN ACCORDANCE WITH SUCH INSTRUCTIONS.
THE GUARANTEE TRUSTEE SHALL NOT BE LIABLE FOR ANY ACTION TAKEN,
SUFFERED, OR OMITTED TO BE TAKEN BY IT IN GOOD FAITH, WITHOUT NEGLIGENCE,
AND REASONABLY BELIEVED BY IT TO BE AUTHORIZED OR WITHIN THE DISCRETION OR
RIGHTS OR POWERS CONFERRED UPON IT BY THIS GUARANTEE.
NO PROVISION OF THIS GUARANTEE SHALL BE DEEMED TO IMPOSE ANY DUTY OR
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OBLIGATION ON THE GUARANTEE TRUSTEE TO PERFORM ANY ACT OR ACTS OR EXERCISE ANY
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RIGHT, POWER, DUTY OR OBLIGATION CONFERRED OR IMPOSED ON IT, IN ANY JURISDICTION
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IN WHICH IT SHALL BE ILLEGAL OR IN WHICH THE GUARANTEE TRUSTEE SHALL BE
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UNQUALIFIED OR INCOMPETENT IN ACCORDANCE WITH APPLICABLE LAW TO PERFORM ANY SUCH
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ACT OR ACTS OR TO EXERCISE ANY SUCH RIGHT, POWER, DUTY OR OBLIGATION. NO
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PERMISSIVE POWER OR AUTHORITY AVAILABLE TO THE GUARANTEE TRUSTEE SHALL BE
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CONSTRUED TO BE A DUTY.
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NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF GUARANTEE. The recitals
contained in this Guarantee shall be taken as the statements of the Guarantor,
and the Guarantee Trustee does not assume any responsibility for their
correctness. The Guarantee Trustee makes no representation as to the validity
or sufficiency of this Guarantee.
EVENTS OF DEFAULT; WAIVER.
AN EVENT OF DEFAULT UNDER THIS GUARANTEE WILL OCCUR UPON THE FAILURE OF THE
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GUARANTOR TO PERFORM ANY OF ITS PAYMENT OR OTHER OBLIGATIONS HEREUNDER.
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THE HOLDERS OF A MAJORITY IN LIQUIDATION AMOUNT OF THE CAPITAL SECURITIES
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MAY, VOTING OR CONSENTING AS A CLASS, ON BEHALF OF THE HOLDERS OF ALL OF THE
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CAPITAL SECURITIES, WAIVE ANY PAST EVENT OF DEFAULT AND ITS CONSEQUENCES. UPON
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SUCH WAIVER, ANY SUCH EVENT OF DEFAULT SHALL CEASE TO EXIST, AND SHALL BE DEEMED
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TO HAVE BEEN CURED, FOR EVERY PURPOSE OF THIS GUARANTEE, BUT NO SUCH WAIVER
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SHALL EXTEND TO ANY SUBSEQUENT OR OTHER DEFAULT OR EVENT OF DEFAULT OR IMPAIR
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ANY RIGHT CONSEQUENT THEREON.
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EVENTS OF DEFAULT; NOTICE.
THE GUARANTEE TRUSTEE SHALL, WITHIN 90 DAYS AFTER THE OCCURRENCE OF AN
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EVENT OF DEFAULT, TRANSMIT BY MAIL, FIRST CLASS POSTAGE PREPAID, TO THE HOLDERS
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OF THE CAPITAL SECURITIES AND THE GUARANTOR, NOTICES OF ALL EVENTS OF DEFAULT
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ACTUALLY KNOWN TO A RESPONSIBLE OFFICER OF THE GUARANTEE TRUSTEE, UNLESS SUCH
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DEFAULTS HAVE BEEN CURED BEFORE THE GIVING OF SUCH NOTICE, PROVIDED, HOWEVER,
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THAT THE GUARANTEE TRUSTEE SHALL BE PROTECTED IN WITHHOLDING SUCH NOTICE IF AND
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SO LONG AS A RESPONSIBLE OFFICER OF THE GUARANTEE TRUSTEE IN GOOD FAITH
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DETERMINES THAT THE WITHHOLDING OF SUCH NOTICE IS IN THE INTERESTS OF THE
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HOLDERS OF THE CAPITAL SECURITIES.
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THE GUARANTEE TRUSTEE SHALL NOT BE DEEMED TO HAVE KNOWLEDGE OF ANY EVENT OF
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DEFAULT UNLESS THE GUARANTEE TRUSTEE SHALL HAVE RECEIVED WRITTEN NOTICE FROM THE
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GUARANTOR OR A HOLDER OF THE CAPITAL
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SECURITIES (EXCEPT IN THE CASE OF A PAYMENT DEFAULT), OR A RESPONSIBLE OFFICER
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OF THE GUARANTEE TRUSTEE CHARGED WITH THE ADMINISTRATION OF THIS GUARANTEE SHALL
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HAVE OBTAINED ACTUAL KNOWLEDGE THEREOF.
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GUARANTEE TRUSTEE
GUARANTEE TRUSTEE; ELIGIBILITY.
THERE SHALL AT ALL TIMES BE A GUARANTEE TRUSTEE WHICH SHALL:
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NOT BE AN AFFILIATE OF THE GUARANTOR, AND
BE A CORPORATION ORGANIZED AND DOING BUSINESS UNDER THE LAWS OF THE
UNITED STATES OF AMERICA OR ANY STATE OR TERRITORY THEREOF OR OF THE
DISTRICT OF COLUMBIA, OR PERSON AUTHORIZED UNDER SUCH LAWS TO EXERCISE
CORPORATE TRUST POWERS, HAVING A COMBINED CAPITAL AND SURPLUS OF AT LEAST
50 MILLION U.S. DOLLARS ($50,000,000), AND SUBJECT TO SUPERVISION OR
EXAMINATION BY FEDERAL, STATE, TERRITORIAL OR DISTRICT OF COLUMBIA
AUTHORITY. IF SUCH CORPORATION PUBLISHES REPORTS OF CONDITION AT LEAST
ANNUALLY, PURSUANT TO LAW OR TO THE REQUIREMENTS OF THE SUPERVISING OR
EXAMINING AUTHORITY REFERRED TO ABOVE, THEN, FOR THE PURPOSES OF THIS
SECTION 3.1(A)(II), THE COMBINED CAPITAL AND SURPLUS OF SUCH CORPORATION
SHALL BE DEEMED TO BE ITS COMBINED CAPITAL AND SURPLUS AS SET FORTH IN ITS
MOST RECENT REPORT OF CONDITION SO PUBLISHED.
IF AT ANY TIME THE GUARANTEE TRUSTEE SHALL CEASE TO BE ELIGIBLE TO SO ACT
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UNDER SECTION 3.1(A), THE GUARANTEE TRUSTEE SHALL IMMEDIATELY RESIGN IN THE
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MANNER AND WITH THE EFFECT SET OUT IN SECTION 3.2(C).
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IF THE GUARANTEE TRUSTEE HAS OR SHALL ACQUIRE ANY "CONFLICTING INTEREST"
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WITHIN THE MEANING OF SECTION 310(B) OF THE TRUST INDENTURE ACT, THE GUARANTEE
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TRUSTEE SHALL EITHER ELIMINATE SUCH INTEREST OR RESIGN TO THE EXTENT AND IN THE
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MANNER PROVIDED BY, AND SUBJECT TO THIS GUARANTEE.
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APPOINTMENT, REMOVAL AND RESIGNATION OF GUARANTEE TRUSTEE.
SUBJECT TO SECTION 3.2(B), THE GUARANTEE TRUSTEE MAY BE APPOINTED OR
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REMOVED WITHOUT CAUSE AT ANY TIME BY THE GUARANTOR EXCEPT DURING AN EVENT OF
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DEFAULT.
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THE GUARANTEE TRUSTEE SHALL NOT BE REMOVED IN ACCORDANCE WITH SECTION
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3.2(A) UNTIL A SUCCESSOR GUARANTEE TRUSTEE HAS BEEN APPOINTED AND HAS ACCEPTED
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SUCH APPOINTMENT BY WRITTEN INSTRUMENT EXECUTED BY SUCH SUCCESSOR GUARANTEE
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TRUSTEE AND DELIVERED TO THE GUARANTOR.
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THE GUARANTEE TRUSTEE APPOINTED TO OFFICE SHALL HOLD OFFICE UNTIL A
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SUCCESSOR GUARANTEE TRUSTEE SHALL HAVE BEEN APPOINTED OR UNTIL ITS REMOVAL OR
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RESIGNATION. THE GUARANTEE TRUSTEE MAY RESIGN FROM OFFICE (WITHOUT NEED FOR
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PRIOR OR SUBSEQUENT ACCOUNTING) BY AN INSTRUMENT IN WRITING EXECUTED BY THE
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GUARANTEE TRUSTEE AND DELIVERED TO THE GUARANTOR, WHICH RESIGNATION SHALL NOT
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TAKE EFFECT UNTIL A SUCCESSOR GUARANTEE TRUSTEE HAS BEEN APPOINTED AND HAS
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ACCEPTED SUCH APPOINTMENT BY AN INSTRUMENT IN WRITING EXECUTED BY SUCH SUCCESSOR
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GUARANTEE TRUSTEE AND DELIVERED TO THE GUARANTOR AND THE RESIGNING GUARANTEE
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TRUSTEE.
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IF NO SUCCESSOR GUARANTEE TRUSTEE SHALL HAVE BEEN APPOINTED AND ACCEPTED
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APPOINTMENT AS PROVIDED IN THIS SECTION 3.2 WITHIN 60 DAYS AFTER DELIVERY OF AN
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INSTRUMENT OF REMOVAL OR RESIGNATION, THE GUARANTEE TRUSTEE RESIGNING OR BEING
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REMOVED MAY PETITION ANY COURT OF COMPETENT JURISDICTION FOR APPOINTMENT OF A
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SUCCESSOR GUARANTEE TRUSTEE. SUCH COURT MAY THEREUPON, AFTER PRESCRIBING SUCH
--------------------------------------------------------------------------------
NOTICE, IF ANY, AS IT MAY DEEM PROPER, APPOINT A SUCCESSOR GUARANTEE TRUSTEE.
--------------------------------------------------------------------------------
NO GUARANTEE TRUSTEE SHALL BE LIABLE FOR THE ACTS OR OMISSIONS TO ACT OF
---------------------------------------------------------------------------
ANY SUCCESSOR GUARANTEE TRUSTEE.
-----------------------------------
UPON TERMINATION OF THIS GUARANTEE OR REMOVAL OR RESIGNATION OF THE
---------------------------------------------------------------------------
GUARANTEE TRUSTEE PURSUANT TO THIS SECTION 3.2, THE GUARANTOR SHALL PAY TO THE
--------------------------------------------------------------------------------
GUARANTEE TRUSTEE ALL AMOUNTS OWING TO THE GUARANTEE TRUSTEE UNDER SECTIONS 7.2
--------------------------------------------------------------------------------
AND 7.3 ACCRUED TO THE DATE OF SUCH TERMINATION, REMOVAL OR RESIGNATION.
--------------------------------------------------------------------------------
GUARANTEE
GUARANTEE.
THE GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES TO PAY IN FULL TO THE
---------------------------------------------------------------------------
HOLDERS THE GUARANTEE PAYMENTS (WITHOUT DUPLICATION OF AMOUNTS THERETOFORE PAID
--------------------------------------------------------------------------------
BY THE ISSUER), AS AND WHEN DUE, REGARDLESS OF ANY DEFENSE (EXCEPT THE DEFENSE
--------------------------------------------------------------------------------
OF PAYMENT BY THE ISSUER), RIGHT OF SET-OFF OR COUNTERCLAIM THAT THE ISSUER MAY
--------------------------------------------------------------------------------
HAVE OR ASSERT. THE GUARANTOR'S OBLIGATION TO MAKE A GUARANTEE PAYMENT MAY BE
--------------------------------------------------------------------------------
SATISFIED BY DIRECT PAYMENT OF THE REQUIRED AMOUNTS BY THE GUARANTOR TO THE
--------------------------------------------------------------------------------
HOLDERS OR BY CAUSING THE ISSUER TO PAY SUCH AMOUNTS TO THE HOLDERS.
--------------------------------------------------------------------------------
THE GUARANTOR HEREBY ALSO AGREES TO ASSUME ANY AND ALL OBLIGATIONS OF THE
---------------------------------------------------------------------------
ISSUER AND IN THE EVENT ANY SUCH OBLIGATION IS NOT SO ASSUMED, SUBJECT TO THE
--------------------------------------------------------------------------------
TERMS AND CONDITIONS HEREOF, THE GUARANTOR HEREBY IRREVOCABLY AND
-------------------------------------------------------------------------
UNCONDITIONALLY GUARANTEES TO EACH BENEFICIARY THE FULL PAYMENT, WHEN AND AS
--------------------------------------------------------------------------------
DUE, OF ANY AND ALL OBLIGATIONS TO SUCH BENEFICIARIES. THIS GUARANTEE IS
--------------------------------------------------------------------------------
INTENDED TO BE FOR THE BENEFIT OF, AND TO BE ENFORCEABLE BY, ALL SUCH
--------------------------------------------------------------------------------
BENEFICIARIES, WHETHER OR NOT SUCH BENEFICIARIES HAVE RECEIVED NOTICE HEREOF.
--------------------------------------------------------------------------------
WAIVER OF NOTICE AND DEMAND. The Guarantor hereby waives notice of
acceptance of this Guarantee and of any liability to which it applies or may
apply, presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.
OBLIGATIONS NOT AFFECTED. The obligations, covenants, agreements and
duties of the Guarantor under this Guarantee shall in no way be affected or
impaired by reason of the happening from time to time of any of the following:
THE RELEASE OR WAIVER, BY OPERATION OF LAW OR OTHERWISE, OF THE PERFORMANCE
OR OBSERVANCE BY THE ISSUER OF ANY EXPRESS OR IMPLIED AGREEMENT, COVENANT, TERM
OR CONDITION RELATING TO THE CAPITAL SECURITIES TO BE PERFORMED OR OBSERVED BY
THE ISSUER;
196
THE EXTENSION OF TIME FOR THE PAYMENT BY THE ISSUER OF ALL OR ANY PORTION
---------------------------------------------------------------------------
OF THE DISTRIBUTIONS, REDEMPTION PRICE, SPECIAL REDEMPTION PRICE, LIQUIDATION
--------------------------------------------------------------------------------
DISTRIBUTION OR ANY OTHER SUMS PAYABLE UNDER THE TERMS OF THE CAPITAL SECURITIES
--------------------------------------------------------------------------------
OR THE EXTENSION OF TIME FOR THE PERFORMANCE OF ANY OTHER OBLIGATION UNDER,
--------------------------------------------------------------------------------
ARISING OUT OF OR IN CONNECTION WITH, THE CAPITAL SECURITIES (OTHER THAN AN
--------------------------------------------------------------------------------
EXTENSION OF TIME FOR PAYMENT OF DISTRIBUTIONS, REDEMPTION PRICE, SPECIAL
--------------------------------------------------------------------------------
REDEMPTION PRICE, LIQUIDATION DISTRIBUTION OR OTHER SUM PAYABLE THAT RESULTS
--------------------------------------------------------------------------------
FROM THE EXTENSION OF ANY INTEREST PAYMENT PERIOD ON THE DEBENTURES OR ANY
--------------------------------------------------------------------------------
EXTENSION OF THE MATURITY DATE OF THE DEBENTURES PERMITTED BY THE INDENTURE);
--------------------------------------------------------------------------------
ANY FAILURE, OMISSION, DELAY OR LACK OF DILIGENCE ON THE PART OF THE
---------------------------------------------------------------------------
HOLDERS TO ENFORCE, ASSERT OR EXERCISE ANY RIGHT, PRIVILEGE, POWER OR REMEDY
--------------------------------------------------------------------------------
CONFERRED ON THE HOLDERS PURSUANT TO THE TERMS OF THE CAPITAL SECURITIES, OR ANY
--------------------------------------------------------------------------------
ACTION ON THE PART OF THE ISSUER GRANTING INDULGENCE OR EXTENSION OF ANY KIND;
--------------------------------------------------------------------------------
THE VOLUNTARY OR INVOLUNTARY LIQUIDATION, DISSOLUTION, SALE OF ANY
---------------------------------------------------------------------------
COLLATERAL, RECEIVERSHIP, INSOLVENCY, BANKRUPTCY, ASSIGNMENT FOR THE BENEFIT OF
--------------------------------------------------------------------------------
CREDITORS, REORGANIZATION, ARRANGEMENT, COMPOSITION OR READJUSTMENT OF DEBT OF,
--------------------------------------------------------------------------------
OR OTHER SIMILAR PROCEEDINGS AFFECTING, THE ISSUER OR ANY OF THE ASSETS OF THE
--------------------------------------------------------------------------------
ISSUER;
-------
ANY INVALIDITY OF, OR DEFECT OR DEFICIENCY IN, THE CAPITAL SECURITIES;
---------------------------------------------------------------------------
THE SETTLEMENT OR COMPROMISE OF ANY OBLIGATION GUARANTEED HEREBY OR HEREBY
---------------------------------------------------------------------------
INCURRED; OR
-------------
ANY OTHER CIRCUMSTANCE WHATSOEVER THAT MIGHT OTHERWISE CONSTITUTE A LEGAL
---------------------------------------------------------------------------
OR EQUITABLE DISCHARGE OR DEFENSE OF A GUARANTOR, IT BEING THE INTENT OF THIS
--------------------------------------------------------------------------------
SECTION 4.3 THAT THE OBLIGATIONS OF THE GUARANTOR HEREUNDER SHALL BE ABSOLUTE
--------------------------------------------------------------------------------
AND UNCONDITIONAL UNDER ANY AND ALL CIRCUMSTANCES.
--------------------------------------------------------
There shall be no obligation of the Holders to give notice to, or obtain
consent of, the Guarantor with respect to the happening of any of the foregoing.
RIGHTS OF HOLDERS.
THE HOLDERS OF A MAJORITY IN LIQUIDATION AMOUNT OF THE CAPITAL SECURITIES
---------------------------------------------------------------------------
HAVE THE RIGHT TO DIRECT THE TIME, METHOD AND PLACE OF CONDUCTING ANY PROCEEDING
--------------------------------------------------------------------------------
FOR ANY REMEDY AVAILABLE TO THE GUARANTEE TRUSTEE IN RESPECT OF THIS GUARANTEE
--------------------------------------------------------------------------------
OR TO DIRECT THE EXERCISE OF ANY TRUST OR POWER CONFERRED UPON THE GUARANTEE
--------------------------------------------------------------------------------
TRUSTEE UNDER THIS GUARANTEE; PROVIDED, HOWEVER, THAT (SUBJECT TO SECTION 2.1)
--------------------------------------------------------------------------------
THE GUARANTEE TRUSTEE SHALL HAVE THE RIGHT TO DECLINE TO FOLLOW ANY SUCH
--------------------------------------------------------------------------------
DIRECTION IF THE GUARANTEE TRUSTEE BEING ADVISED BY COUNSEL DETERMINES THAT THE
--------------------------------------------------------------------------------
ACTION OR PROCEEDING SO DIRECTED MAY NOT LAWFULLY BE TAKEN OR IF THE GUARANTEE
--------------------------------------------------------------------------------
TRUSTEE IN GOOD FAITH BY ITS BOARD OF DIRECTORS OR TRUSTEES, EXECUTIVE
--------------------------------------------------------------------------------
COMMITTEES OR A TRUST COMMITTEE OF DIRECTORS OR TRUSTEES AND/OR RESPONSIBLE
--------------------------------------------------------------------------------
OFFICERS SHALL DETERMINE THAT THE ACTION OR PROCEEDINGS SO DIRECTED WOULD
--------------------------------------------------------------------------------
INVOLVE THE GUARANTEE TRUSTEE IN PERSONAL LIABILITY.
----------------------------------------------------------
ANY HOLDER OF CAPITAL SECURITIES MAY INSTITUTE A LEGAL PROCEEDING DIRECTLY
---------------------------------------------------------------------------
AGAINST THE GUARANTOR TO ENFORCE THE GUARANTEE TRUSTEE'S RIGHTS UNDER THIS
--------------------------------------------------------------------------------
GUARANTEE, WITHOUT FIRST INSTITUTING A LEGAL PROCEEDING AGAINST THE ISSUER, THE
--------------------------------------------------------------------------------
GUARANTEE TRUSTEE OR ANY OTHER PERSON. THE GUARANTOR WAIVES ANY RIGHT OR REMEDY
--------------------------------------------------------------------------------
TO REQUIRE THAT ANY SUCH ACTION BE BROUGHT FIRST AGAINST THE ISSUER, THE
--------------------------------------------------------------------------------
GUARANTEE TRUSTEE OR ANY OTHER PERSON BEFORE SO PROCEEDING DIRECTLY AGAINST THE
--------------------------------------------------------------------------------
GUARANTOR.
----------
GUARANTEE OF PAYMENT. This Guarantee creates a guarantee of payment and
not of collection.
197
SUBROGATION. The Guarantor shall be subrogated to all (if any) rights
of the Holders of Capital Securities against the Issuer in respect of any
amounts paid to such Holders by the Guarantor under this Guarantee; provided,
--------
however, that the Guarantor shall not (except to the extent required by
-------
mandatory provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Guarantee, if, after
giving effect to any such payment, any amounts are due and unpaid under this
Guarantee. If any amount shall be paid to the Guarantor in violation of the
preceding sentence, the Guarantor agrees to hold such amount in trust for the
Holders and to pay over such amount to the Holders.
INDEPENDENT OBLIGATIONS. The Guarantor acknowledges that its
obligations hereunder are independent of the obligations of the Issuer with
respect to the Capital Securities and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Guarantee notwithstanding the occurrence of any event referred to
in subsections (a) through (g), inclusive, of Section 4.3 hereof.
ENFORCEMENT BY A BENEFICIARY. A Beneficiary may enforce the obligations
of the Guarantor contained in Section 4.1(b) directly against the Guarantor and
the Guarantor waives any right or remedy to require that any action be brought
against the Issuer or any other person or entity before proceeding against the
Guarantor. The Guarantor shall be subrogated to all rights (if any) of any
Beneficiary against the Issuer in respect of any amounts paid to the
Beneficiaries by the Guarantor under this Guarantee; provided, however, that the
-------- -------
Guarantor shall not (except to the extent required by mandatory provisions of
law) be entitled to enforce or exercise any rights that it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as
a result of payment under this Guarantee, if at the time of any such payment,
and after giving effect to such payment, any amounts are due and unpaid under
this Guarantee.
LIMITATION OF TRANSACTIONS; SUBORDINATION
LIMITATION OF TRANSACTIONS. So long as any Capital Securities remain
outstanding, if (a) there shall have occurred and be continuing an Event of
Default or a Declaration Event of Default or (b) the Guarantor shall have
selected an Extension Period as provided in the Declaration and such period, or
any extension thereof, shall have commenced and be continuing, then the
Guarantor shall not and shall not permit any Affiliate to (x) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of the Guarantor's or such Affiliate's
capital stock (other than payments of dividends or distributions to the
Guarantor) or make any guarantee payments with respect to the foregoing or (y)
make any payment of principal of or interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Guarantor or any Affiliate that
rank pari passu in all respects with or junior in interest to the Debentures
(other than, with respect to clauses (x) and (y) above, (i) repurchases,
redemptions or other acquisitions of shares of capital stock of the Guarantor in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of one or more employees, officers,
directors or consultants, in connection with a dividend reinvestment or
stockholder stock purchase plan or in connection with the issuance of capital
stock of the Guarantor (or securities convertible into or exercisable for such
capital stock) as consideration in an acquisition transaction entered into prior
to the occurrence of the Event of Default, Declaration Event of Default or
Extension Period, as applicable, (ii) as a result of any exchange or conversion
of any class or series of the Guarantor's capital stock (or any capital stock
198
of a subsidiary of the Guarantor) for any class or series of the Guarantor's
capital stock or of any class or series of the Guarantor's indebtedness for any
class or series of the Guarantor's capital stock, (iii) the purchase of
fractional interests in shares of the Guarantor's capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged, (iv) any declaration of a dividend in connection with
any stockholders' rights plan, or the issuance of rights, stock or other
property under any stockholders' rights plan, or the redemption or repurchase of
rights pursuant thereto, (v) any dividend in the form of stock, warrants,
options or other rights where the dividend stock or the stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari passu with or junior to such
stock and any cash payments in lieu of fractional shares issued in connection
therewith, or (vi) payments under this Guarantee).
RANKING. This Guarantee will constitute an unsecured obligation of the
Guarantor and will rank subordinate and junior in right of payment to all
present and future Senior Indebtedness (as defined in the Indenture) of the
Guarantor. By their acceptance thereof, each Holder of Capital Securities
agrees to the foregoing provisions of this Guarantee and the other terms set
forth herein.
The right of the Guarantor to participate in any distribution of assets of
any of its subsidiaries upon any such subsidiary's liquidation or reorganization
or otherwise is subject to the prior claims of creditors of that subsidiary,
except to the extent the Guarantor may itself be recognized as a creditor of
that subsidiary. Accordingly, the Guarantor's obligations under this Guarantee
will be effectively subordinated to all existing and future liabilities of the
Guarantor's subsidiaries, and claimants should look only to the assets of the
Guarantor for payments hereunder. This Guarantee does not limit the incurrence
or issuance of other secured or unsecured debt of the Guarantor, including
Senior Indebtedness of the Guarantor, under any indenture that the Guarantor may
enter into in the future or otherwise.
TERMINATION
TERMINATION. This Guarantee shall terminate as to the Capital
Securities (i) upon full payment of the Redemption Price or Special Redemption
Price of all Capital Securities then outstanding, (ii) upon the distribution of
all of the Debentures to the Holders of all of the Capital Securities or (iii)
upon full payment of the amounts payable in accordance with the Declaration upon
dissolution of the Issuer. This Guarantee will continue to be effective or will
be reinstated, as the case may be, if at any time any Holder of Capital
Securities must restore payment of any sums paid under the Capital Securities or
under this Guarantee.
INDEMNIFICATION
EXCULPATION.
NO INDEMNIFIED PERSON SHALL BE LIABLE, RESPONSIBLE OR ACCOUNTABLE IN
---------------------------------------------------------------------------
DAMAGES OR OTHERWISE TO THE GUARANTOR OR ANY COVERED PERSON FOR ANY LOSS, DAMAGE
--------------------------------------------------------------------------------
OR CLAIM INCURRED BY REASON OF ANY ACT OR OMISSION PERFORMED OR OMITTED BY SUCH
--------------------------------------------------------------------------------
INDEMNIFIED PERSON IN GOOD FAITH IN ACCORDANCE WITH THIS GUARANTEE AND IN A
--------------------------------------------------------------------------------
MANNER THAT SUCH INDEMNIFIED PERSON REASONABLY BELIEVED TO BE WITHIN THE SCOPE
--------------------------------------------------------------------------------
OF THE AUTHORITY CONFERRED ON SUCH INDEMNIFIED PERSON BY THIS GUARANTEE OR BY
--------------------------------------------------------------------------------
LAW, EXCEPT THAT AN
----------------------
199
INDEMNIFIED PERSON SHALL BE LIABLE FOR ANY SUCH LOSS, DAMAGE OR CLAIM INCURRED
--------------------------------------------------------------------------------
BY REASON OF SUCH INDEMNIFIED PERSON'S NEGLIGENCE OR WILLFUL MISCONDUCT WITH
--------------------------------------------------------------------------------
RESPECT TO SUCH ACTS OR OMISSIONS.
---------------------------------------
AN INDEMNIFIED PERSON SHALL BE FULLY PROTECTED IN RELYING IN GOOD FAITH
---------------------------------------------------------------------------
UPON THE RECORDS OF THE ISSUER OR THE GUARANTOR AND UPON SUCH INFORMATION,
--------------------------------------------------------------------------------
OPINIONS, REPORTS OR STATEMENTS PRESENTED TO THE ISSUER OR THE GUARANTOR BY ANY
--------------------------------------------------------------------------------
PERSON AS TO MATTERS THE INDEMNIFIED PERSON REASONABLY BELIEVES ARE WITHIN SUCH
--------------------------------------------------------------------------------
OTHER PERSON'S PROFESSIONAL OR EXPERT COMPETENCE AND WHO, IF SELECTED BY SUCH
--------------------------------------------------------------------------------
INDEMNIFIED PERSON, HAS BEEN SELECTED WITH REASONABLE CARE BY SUCH INDEMNIFIED
--------------------------------------------------------------------------------
PERSON, INCLUDING INFORMATION, OPINIONS, REPORTS OR STATEMENTS AS TO THE VALUE
--------------------------------------------------------------------------------
AND AMOUNT OF THE ASSETS, LIABILITIES, PROFITS, LOSSES, OR ANY OTHER FACTS
--------------------------------------------------------------------------------
PERTINENT TO THE EXISTENCE AND AMOUNT OF ASSETS FROM WHICH DISTRIBUTIONS TO
--------------------------------------------------------------------------------
HOLDERS OF CAPITAL SECURITIES MIGHT PROPERLY BE PAID.
------------------------------------------------------------
INDEMNIFICATION.
THE GUARANTOR AGREES TO INDEMNIFY EACH INDEMNIFIED PERSON FOR, AND TO HOLD
---------------------------------------------------------------------------
EACH INDEMNIFIED PERSON HARMLESS AGAINST, ANY AND ALL LOSS, LIABILITY, DAMAGE,
--------------------------------------------------------------------------------
CLAIM OR EXPENSE INCURRED WITHOUT NEGLIGENCE OR WILLFUL MISCONDUCT ON THE PART
--------------------------------------------------------------------------------
OF THE INDEMNIFIED PERSON, ARISING OUT OF OR IN CONNECTION WITH THE ACCEPTANCE
--------------------------------------------------------------------------------
OR ADMINISTRATION OF THE TRUST OR TRUSTS HEREUNDER, INCLUDING, BUT NOT LIMITED
--------------------------------------------------------------------------------
TO, THE COSTS AND EXPENSES (INCLUDING REASONABLE LEGAL FEES AND EXPENSES) OF THE
--------------------------------------------------------------------------------
INDEMNIFIED PERSON DEFENDING ITSELF AGAINST, OR INVESTIGATING, ANY CLAIM OR
--------------------------------------------------------------------------------
LIABILITY IN CONNECTION WITH THE EXERCISE OR PERFORMANCE OF ANY OF THE
--------------------------------------------------------------------------------
INDEMNIFIED PERSON'S POWERS OR DUTIES HEREUNDER. THE OBLIGATION TO INDEMNIFY AS
--------------------------------------------------------------------------------
SET FORTH IN THIS SECTION 7.2 SHALL SURVIVE THE RESIGNATION OR REMOVAL OF THE
--------------------------------------------------------------------------------
GUARANTEE TRUSTEE AND THE TERMINATION OF THIS GUARANTEE.
--------------------------------------------------------------------------------
PROMPTLY AFTER RECEIPT BY AN INDEMNIFIED PERSON UNDER THIS SECTION 7.2 OF
---------------------------------------------------------------------------
NOTICE OF THE COMMENCEMENT OF ANY ACTION, SUCH INDEMNIFIED PERSON WILL, IF A
--------------------------------------------------------------------------------
CLAIM IN RESPECT THEREOF IS TO BE MADE AGAINST THE GUARANTOR UNDER THIS SECTION
--------------------------------------------------------------------------------
7.2, NOTIFY THE GUARANTOR IN WRITING OF THE COMMENCEMENT THEREOF; BUT THE
--------------------------------------------------------------------------------
FAILURE SO TO NOTIFY THE GUARANTOR (I) WILL NOT RELIEVE THE GUARANTOR FROM
--------------------------------------------------------------------------------
LIABILITY UNDER PARAGRAPH (A) ABOVE UNLESS AND TO THE EXTENT THAT THE GUARANTOR
--------------------------------------------------------------------------------
DID NOT OTHERWISE LEARN OF SUCH ACTION AND SUCH FAILURE RESULTS IN THE
--------------------------------------------------------------------------------
FORFEITURE BY THE GUARANTOR OF SUBSTANTIAL RIGHTS AND DEFENSES AND (II) WILL
--------------------------------------------------------------------------------
NOT, IN ANY EVENT, RELIEVE THE GUARANTOR FROM ANY OBLIGATIONS TO ANY INDEMNIFIED
--------------------------------------------------------------------------------
PERSON OTHER THAN THE INDEMNIFICATION OBLIGATION PROVIDED IN PARAGRAPH (A)
--------------------------------------------------------------------------------
ABOVE. THE GUARANTOR SHALL BE ENTITLED TO APPOINT COUNSEL OF THE GUARANTOR'S
--------------------------------------------------------------------------------
CHOICE AT THE GUARANTOR'S EXPENSE TO REPRESENT THE INDEMNIFIED PERSON IN ANY
--------------------------------------------------------------------------------
ACTION FOR WHICH INDEMNIFICATION IS SOUGHT (IN WHICH CASE THE GUARANTOR SHALL
--------------------------------------------------------------------------------
NOT THEREAFTER BE RESPONSIBLE FOR THE FEES AND EXPENSES OF ANY SEPARATE COUNSEL
--------------------------------------------------------------------------------
RETAINED BY THE INDEMNIFIED PERSON OR PERSONS EXCEPT AS SET FORTH BELOW);
--------------------------------------------------------------------------------
PROVIDED, HOWEVER, THAT SUCH COUNSEL SHALL BE REASONABLY SATISFACTORY TO THE
--------------------------------------------------------------------------------
INDEMNIFIED PERSON. NOTWITHSTANDING THE GUARANTOR'S ELECTION TO APPOINT COUNSEL
--------------------------------------------------------------------------------
TO REPRESENT THE GUARANTOR IN AN ACTION, THE INDEMNIFIED PERSON SHALL HAVE THE
--------------------------------------------------------------------------------
RIGHT TO EMPLOY SEPARATE COUNSEL (INCLUDING LOCAL COUNSEL), AND THE GUARANTOR
--------------------------------------------------------------------------------
SHALL BEAR THE REASONABLE FEES, COSTS AND EXPENSES OF SUCH SEPARATE COUNSEL IF
--------------------------------------------------------------------------------
(I) THE USE OF COUNSEL CHOSEN BY THE GUARANTOR TO REPRESENT THE INDEMNIFIED
--------------------------------------------------------------------------------
PERSON WOULD PRESENT SUCH COUNSEL WITH A CONFLICT OF INTEREST, (II) THE ACTUAL
--------------------------------------------------------------------------------
OR POTENTIAL DEFENDANTS IN, OR TARGETS OF, ANY SUCH ACTION INCLUDE BOTH THE
--------------------------------------------------------------------------------
INDEMNIFIED PERSON AND THE GUARANTOR AND THE INDEMNIFIED PERSON SHALL HAVE
--------------------------------------------------------------------------------
REASONABLY CONCLUDED THAT THERE MAY BE LEGAL DEFENSES AVAILABLE TO IT AND/OR
--------------------------------------------------------------------------------
OTHER INDEMNIFIED PERSON(S) WHICH ARE DIFFERENT FROM OR ADDITIONAL TO THOSE
--------------------------------------------------------------------------------
AVAILABLE TO THE GUARANTOR, (III) THE GUARANTOR SHALL NOT HAVE EMPLOYED COUNSEL
--------------------------------------------------------------------------------
SATISFACTORY TO THE INDEMNIFIED PERSON TO REPRESENT THE INDEMNIFIED PERSON
--------------------------------------------------------------------------------
WITHIN A REASONABLE TIME AFTER NOTICE OF THE INSTITUTION OF SUCH ACTION OR (IV)
--------------------------------------------------------------------------------
THE GUARANTOR SHALL AUTHORIZE THE INDEMNIFIED PERSON TO EMPLOY SEPARATE COUNSEL
--------------------------------------------------------------------------------
AT THE EXPENSE OF THE GUARANTOR. THE GUARANTOR WILL NOT, WITHOUT THE PRIOR
--------------------------------------------------------------------------------
WRITTEN CONSENT OF THE INDEMNIFIED PERSONS, SETTLE OR COMPROMISE OR CONSENT TO
--------------------------------------------------------------------------------
THE ENTRY OF ANY JUDGMENT WITH RESPECT TO ANY PENDING OR THREATENED CLAIM,
--------------------------------------------------------------------------------
ACTION, SUIT OR PROCEEDING IN RESPECT OF WHICH
-----------------------------------------------------
200
INDEMNIFICATION OR CONTRIBUTION MAY BE SOUGHT HEREUNDER (WHETHER OR NOT THE
--------------------------------------------------------------------------------
INDEMNIFIED PERSONS ARE ACTUAL OR POTENTIAL PARTIES TO SUCH CLAIM OR ACTION)
--------------------------------------------------------------------------------
UNLESS SUCH SETTLEMENT, COMPROMISE OR CONSENT INCLUDES AN UNCONDITIONAL RELEASE
--------------------------------------------------------------------------------
OF EACH INDEMNIFIED PERSON FROM ALL LIABILITY ARISING OUT OF SUCH CLAIM, ACTION,
--------------------------------------------------------------------------------
SUIT OR PROCEEDING.
---------------------
COMPENSATION; REIMBURSEMENT OF EXPENSES. The Guarantor agrees:
TO PAY TO THE GUARANTEE TRUSTEE FROM TIME TO TIME SUCH COMPENSATION FOR ALL
---------------------------------------------------------------------------
SERVICES RENDERED BY IT HEREUNDER AS THE PARTIES SHALL AGREE TO FROM TIME TO
--------------------------------------------------------------------------------
TIME (WHICH COMPENSATION SHALL NOT BE LIMITED BY ANY PROVISION OF LAW IN REGARD
--------------------------------------------------------------------------------
TO THE COMPENSATION OF A TRUSTEE OF AN EXPRESS TRUST); AND
--------------------------------------------------------------------------------
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, TO REIMBURSE THE GUARANTEE
--------------------------------------------------------------------------------
TRUSTEE UPON REQUEST FOR ALL REASONABLE EXPENSES, DISBURSEMENTS AND ADVANCES
--------------------------------------------------------------------------------
INCURRED OR MADE BY IT IN ACCORDANCE WITH ANY PROVISION OF THIS GUARANTEE
--------------------------------------------------------------------------------
(INCLUDING THE REASONABLE COMPENSATION AND THE EXPENSES AND DISBURSEMENTS OF ITS
--------------------------------------------------------------------------------
AGENTS AND COUNSEL), EXCEPT ANY SUCH EXPENSE, DISBURSEMENT OR ADVANCE AS MAY BE
--------------------------------------------------------------------------------
ATTRIBUTABLE TO ITS NEGLIGENCE OR WILLFUL MISCONDUCT.
-----------------------------------------------------------
For purposes of clarification, this Section 7.3 does not contemplate the
payment by the Guarantor of acceptance or annual administration fees owing to
the Guarantee Trustee for services to be provided by the Guarantee Trustee under
this Guarantee or the fees and expenses of the Guarantee Trustee's counsel in
connection with the closing of the transactions contemplated by this Guarantee.
The provisions of this Section 7.3 shall survive the resignation or removal of
the Guarantee Trustee and the termination of this Guarantee.
MISCELLANEOUS
SUCCESSORS AND ASSIGNS. All guarantees and agreements contained in this
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Capital Securities then outstanding. Except in connection with any
merger or consolidation of the Guarantor with or into another entity or any
sale, transfer or lease of the Guarantor's assets to another entity, in each
case, to the extent permitted under the Indenture, the Guarantor may not assign
its rights or delegate its obligations under this Guarantee without the prior
approval of the Holders of at least a Majority in liquidation amount of the
Capital Securities.
AMENDMENTS. Except with respect to any changes that do not adversely
affect the rights of Holders of the Capital Securities in any material respect
(in which case no consent of Holders will be required), this Guarantee may be
amended only with the prior approval of the Holders of not less than a Majority
in liquidation amount of the Capital Securities. The provisions of the
Declaration with respect to amendments thereof apply to the giving of such
approval.
NOTICES. All notices provided for in this Guarantee shall be in
writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by first class mail, as follows:
IF GIVEN TO THE GUARANTEE TRUSTEE, AT THE GUARANTEE TRUSTEE'S MAILING
---------------------------------------------------------------------------
ADDRESS SET FORTH BELOW (OR SUCH OTHER ADDRESS AS THE GUARANTEE TRUSTEE MAY GIVE
--------------------------------------------------------------------------------
NOTICE OF TO THE HOLDERS OF THE CAPITAL SECURITIES AND THE GUARANTOR):
--------------------------------------------------------------------------------
201
U. S. Bank National Association
000 Xxxxxx Xxxxxx, Xxxxxxx Square
Hartford, Connecticut 06103
Attention: Corporate Trust Services Division
Telecopy: 000-000-0000
With a copy to:
U. S. Bank National Association
0 Xxxxxxx Xxxxxx - 0xx Xxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xxxx X. Xxxxx, Corporate Trust Services Division
Telecopy: 000-000-0000
IF GIVEN TO THE GUARANTOR, AT THE GUARANTOR'S MAILING ADDRESS SET FORTH
---------------------------------------------------------------------------
BELOW (OR SUCH OTHER ADDRESS AS THE GUARANTOR MAY GIVE NOTICE OF TO THE HOLDERS
--------------------------------------------------------------------------------
OF THE CAPITAL SECURITIES AND TO THE GUARANTEE TRUSTEE):
----------------------------------------------------------------
Community Capital Bancshares, Inc.
0000 #0 Xxxxxx Xxxx
Xxxxxx, Xxxxxxx 00000
Attention: Xxxxx X. Xxxxxxx
Telecopy: 000-000-0000
IF GIVEN TO ANY HOLDER OF THE CAPITAL SECURITIES, AT THE ADDRESS SET FORTH
---------------------------------------------------------------------------
ON THE BOOKS AND RECORDS OF THE ISSUER.
----------------------------------------------
All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.
BENEFIT. This Guarantee is solely for the benefit of the Beneficiaries
and, subject to Section 2.1(a), is not separately transferable from the Capital
Securities.
GOVERNING LAW. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW).
COUNTERPARTS. This Guarantee may be executed in one or more
counterparts, each of which shall be an original, but all of which taken
together shall constitute one and the same instrument.
SECTION 8.7 SEPARABILITY. In case one or more of the provisions
------------
contained in this Guarantee shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Guarantee, but this Guarantee
shall be construed as if such invalid or illegal or unenforceable provision had
never been contained herein.
202
THIS GUARANTEE is executed as of the day and year first above written.
COMMUNITY CAPITAL BANCSHARES, INC.,
as Guarantor
By: /s/Xxxxx X. Xxxxxxx
--------------------------------
Name: Xxxxx X. Xxxxxxx
Title: CFO
U. S. BANK NATIONAL ASSOCIATION, as
Guarantee Trustee
By: /s/ Xxxx X. Xxxxx
--------------------------------
Name: Xxxx X. Xxxxx
Title: Vice President
203
