TORTOISE NORTH AMERICAN ENERGY CORPORATION
AUCTION AGENCY AGREEMENT
dated as of _________, 2006
relating to the
MONEY MARKET CUMULATIVE PREFERRED(R) SHARES
The Bank of New York
as Auction Agent
AUCTION AGENCY AGREEMENT
This Auction Agency Agreement (this "Agreement"), dated as of _________,
2006, is between Tortoise North American Energy Corporation (the "Company") and
The Bank of New York.
The Company proposes to issue an aggregate of _____ shares of its Money
Market Cumulative Preferred(R) Shares, $0.001 par value per share, liquidation
preference of $25,000 per share (the "MMP Shares"), authorized by, and subject
to the terms and conditions of, the Articles Supplementary of Money Market
Cumulative Preferred(R) Shares (the "Articles Supplementary").
The Company desires that The Bank of New York perform certain duties as
agent in connection with each Auction of MMP Shares (in such capacity, the
"Auction Agent"), and as the transfer agent, registrar, dividend paying agent
and redemption agent with respect to the MMP Shares (in such capacity, the
"Paying Agent"), upon the terms and conditions set forth in this Agreement, and
the Company hereby appoints The Bank of New York as said Auction Agent and
Paying Agent in accordance with those terms and conditions.
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the Company and the Auction Agent agree as follows:
I. DEFINITIONS AND RULES OF CONSTRUCTION.
1.1 Terms Defined by Reference to the Articles Supplementary.
Capitalized terms used herein but not defined herein shall have the
respective meanings specified in the Articles Supplementary.
1.2 Certain Defined Terms.
As used herein and in the Settlement Procedures, the following terms shall
have the following meanings, unless the context otherwise requires:
(a) "Agent Member" shall mean a member of, or participant in, the
Securities Depository that will act on behalf of a Bidder.
(b) "Articles Supplementary" shall mean the Articles Supplementary of
Money Market Cumulative Preferred(R) Shares of the Company dated _________,
2006, specifying the powers, preferences and rights of the MMP Shares.
(c) "Auction" shall have the meaning specified in Section 2.1 hereof.
(d) "Auction Procedures" shall mean the procedures as from time to
time in effect for conducting Auctions that are set forth in Part II of the
Articles Supplementary.
(e) "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
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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 Company and (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.
(f) "Broker-Dealer Agreement" shall mean each agreement between the
Auction Agent and a broker-dealer substantially in the form attached hereto
as Exhibit A.
(g) "Closing" shall mean the date the Company consummates the
transactions for the issuance and sale of the MMP Shares.
(h) "Company Officer" shall mean the President, each Vice President
(whether or not designated by a number or word or words added before or
after the title "Vice President"), the Secretary, the Treasurer, each
Assistant Secretary and each Assistant Treasurer of the Company and every
other officer or employee of the Company designated as a "Company Officer"
for purposes hereof in a notice from the Company to the Auction Agent.
(i) "Holder" means, with respect to MMP Shares, the registered holder
of MMP Shares as the same appears on the share ledger or share records of
the Company.
(j) "Rate Multiple" shall have the meaning assigned to it in Section
2.8.
(k) "Settlement Procedures" shall mean the Settlement Procedures
attached as Exhibit A to the Broker-Dealer Agreement.
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.
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II. THE AUCTION.
2.1 Purpose; Incorporation by Reference of Auction Procedures and
Settlement Procedures.
(a) The Board of Directors of the Company has adopted a
resolution appointing The Bank of New York as Auction Agent for
purposes of the Auction Procedures. The Auction Agent hereby accepts
such appointment and agrees that, on each Auction Date, it shall
follow (i) the procedures set forth in this Section 2 and (ii) the
Auction Procedures for the purpose of determining the Applicable Rate
for the MMP Shares for the next Dividend Period. Each periodic
operation of such procedures is hereinafter referred to as an
"Auction."
(b) All of the provisions contained in the Auction Procedures and
in the Settlement 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.
2.2 Preparation for Each Auction; Maintenance of Registry of Existing
Holders.
(a) As of the date hereof, the Company shall provide the Auction
Agent with a list of the Broker-Dealers and shall deliver to the
Auction Agent for execution by the Auction Agent a Broker-Dealer
Agreement signed by each such Broker-Dealer. Not later than five
Business Days prior to any Auction Date for which any change in such
list of Broker-Dealers is to be effective, the Company shall notify
the Auction Agent in writing of such change and, if any such change is
the addition of a Broker-Dealer to such list, the Company shall cause
to be delivered to the Auction Agent for execution by the Auction
Agent a Broker-Dealer Agreement signed by such Broker-Dealer. The
Auction Agent shall have entered into a Broker-Dealer Agreement with
each Broker-Dealer prior to the participation of any such
Broker-Dealer in any Auction.
(b) In the event that the Auction Date for any Auction shall be
changed, the Auction Agent, by such means as the Auction Agent
reasonably deems practicable, shall give notice of such change to the
Broker-Dealers 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.
(c) The provisions contained in Section 4(b) of Part I of the
Articles Supplementary concerning Special Dividend Periods and the
notification of a Special Dividend Period will be followed by the
Company and, to the extent applicable, the Auction Agent, 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.
(d) On each Auction Date, the Auction Agent shall determine the
Maximum Rate. Not later than 9:30 a.m. on each Auction Date, the
Auction Agent shall notify the Company and the Broker-Dealers of the
Maximum Rate.
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(e) (i) The Auction Agent shall maintain a registry of the
Existing Holders of the MMP Shares (the "MMP Shares Register") for
purposes of Auctions and shall indicate thereon the identity of the
Broker-Dealer that submitted the most recent Order in any Auction,
which resulted in such Existing Holder continuing to hold or purchase
such MMP Shares. The Auction Agent may consider a Broker-Dealer which
has submitted an Order as the Existing Holder for the purposes of the
MMP Shares Register; provided, that the Auction Agent may request the
Broker-Dealer to provide a list of its customers if in its sole
discretion it determines to do so. The Auction Agent may conclusively
rely upon the information furnished to the Auction Agent by the
Broker-Dealer and notices from the Securities Depository regarding the
results of redemptions or mandatory tenders.
(ii) In the event of any partial redemption of MMP Shares,
upon notice by the Company to the Auction Agent of such partial
redemption (delivered at least one day prior to the date a notice
of redemption is required to be given to the Holders of the MMP
shares to be redeemed), the Auction Agent promptly shall request
the Securities Depository to notify the Auction Agent of the
identities of the Agent Members (and the respective numbers of
MMP Shares) from the accounts of which MMP Shares have been
called for redemption and the person or department at such Agent
Member to contact regarding such redemption. At least two
Business Days prior to the date of redemption, the Auction Agent
shall request each Agent Member so identified to disclose to the
Auction Agent (upon selection by such Agent Member of the
Existing Holders whose MMP Shares are to be redeemed) the number
of MMP Shares of each such Existing Holder, if any, to be
redeemed by the Company, provided that the Auction Agent has been
furnished with the name and telephone number of a person or
department at such Agent Member from which it is to request such
information. In the absence of receiving any such information
with respect to an Existing Holder, from such Existing Holder's
Agent Member or otherwise, the Auction Agent may continue to
treat such Existing Holder as having ownership of the number of
MMP Shares shown in the Auction Agent's registry of Existing
Holders.
(iii) The Auction Agent shall register a transfer of the
ownership of MMP Shares from an Existing Holder to another
Existing Holder, or to another Person if permitted by the
Company, only if (A) such transfer is made pursuant to an Auction
or (B) if such transfer is made other than pursuant to an
Auction, the Auction Agent has been notified of such transfer in
writing, in a notice substantially in the form of Exhibit C to
the Broker-Dealer Agreement, by such Existing Holder or by the
Agent Member of such Existing Holder only to or through a
Broker-Dealer that has entered into a Broker-Dealer Agreement
with the Auction Agent and the Company or other persons as the
Company permits. The Auction Agent is not required to accept any
notice of transfer delivered for an Auction unless it is received
by the Auction Agent by 3:00 p.m. on the Business Day preceding
the Auction. The Auction Agent shall rescind a transfer made on
the registry of the Existing Holders of any MMP Shares if the
Auction Agent has been notified in writing, in a notice
substantially in the form of Exhibit D to the Broker-Dealer
Agreement, by the Agent Member or the Broker-Dealer of any Person
that (i) purchased any MMP Shares and the seller failed to
deliver such
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MMP Shares or (ii) sold any MMP Shares and the purchaser failed
to make payment to such Person upon delivery to the purchaser of
such MMP Shares.
(f) The Auction Agent may, but shall have no obligation to,
request that the Broker-Dealers, as set forth in Section 3.2(c) of the
Broker-Dealer Agreements, provide the Auction Agent with a list of
their respective customers that such Broker-Dealers believe are
Beneficial Owners of MMP Shares. The Auction Agent shall keep
confidential any such information and shall not disclose any such
information so provided to any Person other than the relevant
Broker-Dealer and the Company, provided that the Auction Agent
reserves the right 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
in writing that its failure to do so would be unlawful or (c) it is
advised by its counsel in writing 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.
2.3 Auction Schedule.
The Auction Agent shall conduct Auctions on the Business Day
immediately prior to the start of each Dividend Period in accordance with the
schedule set forth below. Such schedule may be changed 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 each Broker-Dealer.
Such notice shall be received prior to the first Auction Date on which any such
change shall be effective.
Time Event
---- -----
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 2.2(d) 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 Part II of the Articles
Supplementary. 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 Part II of the Articles
Supplementary.
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 Part II
of the Articles Supplementary.
Submitted Bid
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Orders and Submitted Sell Orders will
be accepted and rejected in whole or
in part and MMP Shares will be
allocated as provided in Section 4 of
Part II of the Articles Supplementary.
forth in Section 2.4
hereof.
The Auction Agent shall give notice of
the Auction results as set
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 2.4 will occur earlier.
2.4 Notice of Auction Results.
The Auction Agent will advise each Broker-Dealer who submitted a Bid or
Sell Order in an Auction whether such Bid or Sell Order was accepted or rejected
in whole or in part and of the Applicable Rate for the next Dividend Period for
the related MMP Shares by telephone or other electronic means acceptable to the
parties. 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.
2.5 Broker-Dealers.
(a) On each Dividend 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 Dividend Period of less than one year, the product
of (A) a fraction the numerator of which is the number of days in the
Dividend Period (calculated by counting the first day of such Dividend
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 MMP Shares 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 Dividend Period of one year or
longer. For the purposes of the preceding sentence, the MMP Shares shall be
placed by a Broker-Dealer if such shares were (1) 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 (2) 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 shares as a result of the Auction or (b) a
Submitted Bid of a Potential Holder that resulted in the Potential Holder
purchasing the shares as a result of the Auction or (3) the subject of a
valid Hold Order. For the avoidance of doubt, only one Broker-Dealer shall
be considered to have placed a particular MMP Share at any particular
Auction for purposes of this Section 2.5(a).
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(b) The Company shall not designate any Person to act as a
Broker-Dealer, or permit an Existing Holder or a Potential Beneficial Owner
to participate in Auctions through any Person other than a Broker-Dealer,
without the prior approval of the Auction Agent, which approval shall not
be withheld unreasonably. Notwithstanding the foregoing, the Company may
designate an Affiliate of Xxxxxx Brothers Inc. to act as a Broker-Dealer.
(c) The Auction Agent shall terminate any Broker-Dealer Agreement as
set forth therein if so directed by the Company.
(d) Subject to Section 2.5(b) hereof, the Auction Agent from time to
time shall enter into such Broker-Dealer Agreements as the Company shall
request in writing.
(e) The Auction Agent shall maintain a list of Broker-Dealers.
2.6 Ownership of MMP Shares and Submission of Bids by the Company and Its
Affiliates.
Neither the Company nor any Affiliate of the Company may submit an Order in
any Auction, except that an Affiliate of the Company that is a Broker-Dealer may
submit an Order. The Company shall notify the Auction Agent if the Company or,
to the best of the Company's knowledge, any Affiliate of the Company becomes a
Beneficial Owner of any MMP Shares. The restrictions in this Section 2.6 shall
in no way limit the activities of the Auction Agent. The Auction Agent shall
have no duty or liability with respect to enforcement of this Section 2.6.
2.7 Access to and Maintenance of Auction Records.
The Auction Agent shall afford to the Company, its agents, independent
public accountants and counsel, at reasonable times during normal business
hours, access to all books, records, documents and other information concerning
the conduct and results of Auctions, to review and make extracts or copies of
(at the Company's sole cost and expense), provided that any such agent,
accountant or counsel shall furnish the Auction Agent with a letter from the
Company requesting that the Auction Agent afford such person access. The Auction
Agent shall maintain records relating to any Auction for a period of at least
six years after such Auction, and such records, in reasonable detail, shall
reflect accurately and fairly the actions taken by the Auction Agent hereunder.
The Company agrees to keep confidential any information regarding the customers
of any Broker-Dealer received from the Auction Agent in connection with this
Agreement or any Auction, and shall not disclose such information or permit the
disclosure of such information without the prior written consent of the
applicable Broker-Dealer to anyone except such agent, accountant or counsel
engaged to audit or review the results of Auctions as permitted by this Section
2.7. The Company reserves the right to disclose any such information if it is
ordered to do so by a court of competent jurisdiction or a regulatory body,
judicial or quasi-judicial agency or authority having authority to compel such
disclosure, or if it is advised by its counsel that its failure to do so would
be unlawful. Any such agent, accountant or counsel, before having access to such
information, shall agree to keep such information confidential and not to
disclose such information or permit disclosure of such information without the
prior written consent of the applicable Broker-Dealer, provided that such agent,
accountant or counsel
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may reserve the right to disclose any such information if it is ordered to do so
by a court of competent jurisdiction or a regulatory body, judicial or
quasi-judicial agency or authority having authority to compel such disclosure,
or if it is advised by its counsel that its failure to do so would be unlawful.
2.8 Information Concerning Rates.
If there is any change in the credit rating of MMP Shares by a Rating
Agency (or substitute or successor Rating Agencies) then rating the MMP Shares
that results in any change in the applicable percentage of the Reference Rate
used to determine the Maximum Rate for MMP Shares (the "Rate Multiple"), the
Company shall notify the Auction Agent of such change in the Rate Multiple by no
later than the Business Day immediately preceding the next Auction Date. In
determining the Maximum Rate on any Auction Date, the Auction Agent shall be
entitled to rely on the last Rate Multiple for MMP Shares of which it has most
recently received notice from the Company.
III. THE AUCTION AGENT AS PAYING AGENT.
3.1 The Paying Agent.
The Board of Directors of the Company has adopted resolutions
appointing The Bank of New York as Auction Agent and Paying Agent. The Paying
Agent hereby accepts such appointment and agrees to act in accordance with its
standard procedures and the provisions of the Articles Supplementary which are
specified herein with respect to the MMP Shares and as set forth in this Section
3.
3.2 The Company's Notices to the Paying Agent.
Whenever any MMP Shares are to be redeemed, the Company shall mail a Notice
of Redemption by first-class mail, postage prepaid, to the Paying Agent and the
Paying Agent shall mail such notice by first class mail, postage prepaid, to
each Holder of MMP Shares being redeemed and pursuant to Section 3(b) of Part I
of the Articles Supplementary.
3.3 The Company to Provide Funds for Dividends and Redemptions.
(a) Not later than 3:00 p.m. on the Business Day preceding each
Dividend Payment Date, the Company shall deposit with the Paying Agent an
aggregate amount of federal funds or similar same-day funds equal to the
declared dividends to be paid to Holders on such Dividend Payment Date and
shall give the Paying Agent irrevocable instructions to apply such funds to
the payment of such dividends on such Dividend Payment Date.
(b) If the Company shall give a Notice of Redemption, then by 12:00
noon on the date fixed for redemption, the Company shall deposit in trust
with the Paying Agent an aggregate amount of federal funds or similar
same-day funds sufficient to redeem such MMP Shares called for redemption
and shall give the Paying Agent irrevocable instructions and authority to
pay the redemption price to the Holders of MMP Shares called for redemption
upon surrender of the certificate or certificates therefor.
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3.4 Disbursing Dividends and Redemption Price.
After receipt of the federal funds or similar same-day funds and
instructions from the Company described in Section 3.3 above, the Paying
Agent shall pay to the Holders (or former Holders) entitled thereto (i) on
each corresponding Dividend Payment Date, dividends on the MMP Shares, and
(ii) on any date fixed for redemption, the redemption price of any MMP
Shares called for redemption. The amount of dividends for any Dividend
Period to be paid by the Paying Agent to Holders will be determined by the
Company as set forth in Section 2 of Part I of the Articles Supplementary.
The redemption price to be paid by the Paying Agent to the Holders of any
MMP Shares called for redemption will be determined as set forth in Section
3 of Part I of the Articles Supplementary. The Paying Agent shall have no
duty to determine the redemption price and may rely conclusively on the
amount thereof set forth in the Notice of Redemption.
IV. THE PAYING AGENT AS TRANSFER AGENT AND REGISTRAR.
4.1 Original Issue of MMP Share Certificates.
On the Original Issue Date for any MMP Share, one certificate for MMP
Shares shall be issued by the Company and registered in the name of Cede & Co.,
as nominee of the Securities Depository, and countersigned by the Paying Agent.
4.2 Registration of Transfer or Exchange of MMP Shares.
Except as provided in this Section 4.2, the MMP Shares shall be registered
solely in the name of the Securities Depository or its nominee. If the
Securities Depository shall give notice of its intention to resign as such, and
if the Company shall not have selected a substitute Securities Depository
acceptable to the Paying Agent prior to such resignation, then, upon such
resignation of the Securities Depository, the MMP Shares, at the Company's
request and expense, may be registered for transfer or exchange, and new
certificates thereupon shall be issued in the name of the designated transferee
or transferees, upon surrender of the old certificate in form deemed by the
Paying Agent to be endorsed properly for transfer with (a) all necessary
endorsers' signatures guaranteed in such manner and form and by such guarantor
as the Paying Agent may reasonably require, (b) such assurances as the Paying
Agent shall deem necessary or appropriate to evidence the genuineness and
effectiveness of each necessary endorsement and (c) satisfactory evidence of
compliance with all applicable laws relating to the collection of taxes in
connection with any registration of transfer or exchange or funds necessary for
the payment of such taxes. If there is no Securities Depository, at the
Company's option and upon its receipt of such documents as it deems appropriate,
any MMP Shares may be registered in the stock register in the name of the
Beneficial Owner thereof, and such Beneficial Owner thereupon will be entitled
to receive certificates therefor and required to deliver certificates thereof
upon transfer or exchange thereof at the Company's expense.
4.3 Removal of Legend.
Any request for removal of a legend indicating a restriction on transfer
from a certificate evidencing MMP Shares shall be accompanied by an opinion of
counsel stating that such legend may be removed and such MMP Shares may be
transferred free of the restriction described in
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such legend, said opinion to be delivered under cover of a letter from a Company
Officer authorizing the Paying Agent to remove the legend on the basis of said
opinion.
4.4 Lost, Stolen or Destroyed MMP Share Certificates.
The Paying Agent shall, at the Holder's expense, issue and register
replacement certificates for certificates represented to have been lost, stolen
or destroyed, upon the fulfillment of such requirements as shall be deemed
appropriate by the Company and by the Paying Agent, subject at all times to
provisions of law, the Articles Supplementary governing such matters and
resolutions adopted by the Board of Directors of the Company with respect to
lost, stolen or destroyed securities. The Paying Agent may issue new
certificates in exchange for and upon the cancellation of mutilated
certificates. Any request by the Company to the Paying Agent to issue a
replacement or new certificate pursuant to this Section 4.4 shall be deemed to
be a representation and warranty by the Company to the Paying Agent that such
issuance will comply with provisions of applicable law and the Articles
Supplementary and resolutions of the Company.
4.5 Disposition of Canceled Certificates; Record Retention.
The Paying Agent shall retain share certificates which have been canceled
and any accompanying documentation thereto in accordance with applicable rules
and regulations of the Commission for at least six calendar years from the date
of such cancellation. The Paying Agent, upon written request by the Company,
shall afford to the Company, its agents and counsel access at reasonable times
during normal business hours to review and make extracts or copies (at the
Company's sole cost and expense) of such certificates and accompanying
documentation. Upon the expiration of this six-year period, the Paying Agent,
upon written request by the Company, shall deliver to the Company the canceled
certificates and any accompanying documentation. In the event that the
Commission requests that any or all such records be furnished to it, the Paying
Agent shall provide the Company with prompt written notice of such request so
that the Company may appeal such request and the Paying Agent shall cooperate
with the Company in any such appeal. In the event that such appeal is
unsuccessful, the Paying Agent shall be permitted to furnish to the Commission,
either at its principal office or at any regional office, complete, correct and
current hard copies of any and all records that were requested by the Commission
provided that the Paying Agent shall exercise reasonable efforts to obtain
assurance that confidential treatment will be accorded to such records.
Thereafter, such records shall not be destroyed by the Company without the
approval of the Paying Agent, which approval shall not be withheld unreasonably,
but will be safely stored for possible future reference.
4.6 Share Register.
The Paying Agent shall maintain the share register, which shall contain a
list of the Holders, the number of MMP Shares held by each Holder and the
address of each Holder. The Paying Agent shall record in the share register any
change of address of a Holder upon notice by such Holder. In case of any written
request or demand for the inspection of the share register or any other books of
the Company in the possession of the Paying Agent, the Paying Agent will notify
the Company and secure instructions as to permitting or refusing such
inspection. The
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Paying Agent reserves the right, however, to exhibit the share register or other
records to any person in case it is (a) 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 or (b) advised by its
counsel that its failure to do so would be unlawful.
4.7 Return of Funds.
Any funds paid to the Paying Agent for the paying of dividends but not
applied to the payment of dividends, including interest earned on such moneys,
will, to the extent permitted by law, be repaid to the Company at the end of 90
days from the date on which such moneys were to have been so applied. Upon
written request, the Company shall be entitled to receive from the Paying Agent,
promptly after the date fixed for redemption, any cash deposited with the Paying
Agent in excess of (i) the aggregate redemption price of the MMP Shares called
for redemption on such date and (ii) such other amounts, if any, to which
Holders of MMP Shares called for redemption may be entitled. Any funds so
deposited that are unclaimed at the end of two years from such redemption date
shall, to the extent permitted by law, be paid to the Company upon its written
request whereupon the Company shall assume all responsibility and liability for
compliance with any abandoned or unclaimed property law or regulation. Funds,
while deposited with the Auction Agent, will be held in trust for the payment of
the applicable dividend, redemption price or, as may be applicable under the
Articles Supplementary, other charges.
V. REPRESENTATIONS AND WARRANTIES.
5.1 Representations and Warranties of the Company.
The Company represents and warrants to the Auction Agent that:
(i) the Company has been duly organized and is validly existing
as a corporation under the laws of the State of Maryland, and has full
power to execute and deliver this Agreement and to authorize, create
and issue the MMP Shares;
(ii) the Company is registered with the Commission under the 1940
Act as a closed-end, nondiversified, management investment company;
(iii) this Agreement has been duly and validly authorized,
executed and delivered by the Company and constitutes the legal, valid
and binding obligation of the Company, enforceable against the Company
in accordance with its terms, subject to bankruptcy, insolvency,
reorganization and other laws of general applicability relating to or
affecting creditors' rights and to general equitable principles;
(iv) the form of the certificate evidencing the MMP Shares
complies with all applicable state and federal laws;
(v) the MMP Shares have been duly and validly authorized by the
Company and, upon completion of the initial sale of the MMP Shares and
receipt
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of payment therefor, will be validly issued by the Company, fully paid
and nonassessable;
(vi) at the time of the offering of the MMP Shares, the MMP
Shares offered will be registered under the Securities Act and no
further action by or before any governmental body or authority of the
United States or of any state thereof is required in connection with
the execution and delivery of this Agreement or will be required in
connection with the issuance of the MMP Shares, except such action as
required by applicable state securities laws;
(vii) the execution and delivery of this Agreement and the
issuance and delivery of the MMP Shares do not and will not conflict
with, violate or result in a breach of the terms, conditions or
provisions of, or constitute a default under, the Articles of
Incorporation or by-laws of the Company, any order or decree of any
court or public authority having jurisdiction over the Company or any
mortgage, indenture, contract, agreement or undertaking to which the
Company is a party or by which it is bound the effect of which
conflict, violation, breach or default would be material to the
Company; and
(viii) no taxes are payable upon or in respect of the execution
of this Agreement or will be payable upon or in respect of the
issuance of the MMP Shares.
5.2 Representations and Warranties of the Auction Agent.
The Auction Agent represents and warrants to the Company that:
(i) the Auction Agent is duly organized and is validly existing
as a banking corporation in good standing under the laws of the State
of New York and has the corporate power to enter into and perform its
obligations under this Agreement; and
(ii) this Agreement has been duly and validly authorized,
executed and delivered by the Auction Agent and constitutes the legal,
valid and binding obligation of the Auction Agent, enforceable against
the Auction Agent in accordance with its terms, subject only to
bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors' rights and to
general equitable principles.
VI. THE AUCTION AGENT.
6.1 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.
6.2 Rights of the Auction Agent.
(a) The Auction Agent may rely conclusively 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,
share 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 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
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that the Auction Agent shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as
soon as practicable under the circumstances.
(f) 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.
(g) 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 instrument of transfer or
assignment may be required by law to effect such succession, anything
herein to the contrary notwithstanding.
(h) All the rights, privileges, immunities and protections granted to
the Auction Agent herein are deemed granted to the Paying Agent and The
Bank of New York in any of the capacities it undertakes in connection with
this Agreement.
(i) 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 (unless other evidence in respect thereof
be herein specifically prescribed) may, in the absence of gross negligence
or bad faith on the part of the Auction Agent, be deemed to be conclusively
proved and established by a certificate describing such action as 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 gross negligence.
6.3 Compensation, Expenses and Indemnification.
(a) The Company shall pay to the Auction Agent from time to time
reasonable compensation for all services rendered by it under this
Agreement and under the Broker-Dealer Agreements as shall be set forth in a
separate writing signed by the Company and the Auction Agent, subject to
adjustments if the MMP Shares no longer are held of record
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by the Securities Depository or its nominee or if there shall be such other
change as shall increase or decrease materially the Auction Agent's
obligations hereunder or under the Broker-Dealer Agreements.
(b) The Company shall reimburse the Auction Agent upon its request for
all reasonable expenses, disbursements and advances incurred or made by the
Auction Agent in accordance with any provision of this Agreement and of the
Broker-Dealer Agreements (including the reasonable compensation, expenses
and disbursements of its agents and counsel), except any expense,
disbursement or advance attributable to the Auction Agent's gross
negligence or bad faith, upon submission to the Company of reasonable
documentation thereof. In no event shall the Auction Agent be responsible
or liable for special, indirect or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit), even if the
Auction Agent has been advised of the likelihood of such loss or damage and
regardless of the form of action.
(c) The Company shall indemnify the Auction Agent and its officers,
directors, employees and agents for, and hold them harmless against, any
loss, liability or expense incurred without negligence or bad faith on the
part of the Auction Agent arising out of or in connection with its agency
under this Agreement and under the Broker-Dealer Agreements, including the
costs and expenses of defending themselves against any claim of liability
in connection with their exercise or performance of any of their duties
hereunder and thereunder, except such as may result from its gross
negligence or bad faith.
6.4 Auction Agent's Disclaimer.
The Auction Agent makes no representation as to the validity or adequacy of
the Agreement, the Broker-Dealer Agreements or the MMP Shares except to the
extent otherwise set forth in Section 5.2 and except that the Auction Agent
hereby represents that the Agreement has been duly authorized, executed and
delivered by the Auction Agent and constitutes a legal and binding obligation of
the Auction Agent.
VII. MISCELLANEOUS.
7.1 Term of Agreement.
(a) The term of this Agreement is unlimited unless it shall be
terminated as provided in this Section 7.1. The Company may terminate this
Agreement at any time by so notifying the Auction Agent, provided that, if
any MMP Shares remain outstanding, the Company shall have entered into an
agreement with a successor auction agent. The Auction Agent may terminate
this Agreement upon prior notice to the Company on the date specified in
such notice, which date shall be no earlier than 60 days after delivery of
such notice. If the Auction Agent terminates this Agreement while any MMP
Shares remain outstanding, the Company shall use its best efforts to enter
into an agreement with a successor auction agent containing substantially
the same terms and conditions as this Agreement.
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(b) Except as otherwise provided in this Section 7.1(b), the
respective rights and duties of the Company and the Auction Agent under
this Agreement shall cease upon termination of this Agreement. The
Company's representations, warranties, covenants and obligations to the
Auction Agent under Section 5.1 hereof shall survive the termination
hereof. The Auction Agent's representations, warranties, covenants and
obligations under Section 5.2 hereof shall survive the termination hereof.
Upon termination of this Agreement, the Auction Agent shall (i) resign as
Auction Agent under the Broker-Dealer Agreements, (ii) at the Company's
written request, deliver promptly to the Company or to another authorized
party copies of all books and records maintained by it in connection with
its duties hereunder, and (iii) at the written request of the Company,
transfer promptly to the Company or to any successor auction agent any
funds deposited by the Company with the Auction Agent (whether in its
capacity as Auction Agent or as Paying Agent) pursuant to this Agreement
which have not been distributed previously by the Auction Agent in
accordance with this Agreement.
7.2 Communications.
Except for (i) communications authorized to be made by telephone pursuant
to this Agreement or the Auction Procedures and (ii) communications in
connection with Auctions (other than those expressly required to be 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 Company, Tortoise North American Energy Corporation
addressed to: 00000 Xxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxxxx Xxxx, XX 00000
Attention: Xxxxx X. Xxxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
If to the Auction Agent, The Bank of New York
addressed to: Corporate Trust Department
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Dealing & Trading Group - Auction Desk
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 the Company by a Company Officer and
on behalf of the Auction Agent by an Authorized Officer.
7.3 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
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understandings, oral, written or implied, between the parties relating to the
subject matter hereof, except for written agreements relating to the
compensation of the Auction Agent.
7.4 Benefits.
Nothing herein, express or implied, shall give to any Person, other than
the Company, the Auction Agent and their respective successors and assigns, any
benefit of any legal or equitable right, remedy or claim hereunder.
7.5 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 hereto to exercise any right or remedy
hereunder in the event of a breach hereof by the other party shall not
constitute a waiver of any such right or remedy with respect to any
subsequent breach.
7.6 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 the
Company and the Auction Agent. This Agreement may not be assigned by either
party hereto absent the prior written consent of the other party, which consent
shall not be withheld unreasonably.
7.7 Severability.
If any clause, provision or section hereof 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 of
the remaining clauses, provisions or sections hereof.
7.8 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.
7.9 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 OF THIS AUCTION AGENCY 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.
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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.
7.10 Limitation of Liability. A copy of the Articles of Incorporation of
the Company is on file with the Secretary of State of the State of Maryland.
This Agreement has been executed on behalf of the Company by an officer of the
Company in such capacity and not individually and the obligations of the Company
under this Agreement are not binding upon such officer or the shareholders of
the Company individually but are binding only upon the assets and property of
the Company.
[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.
TORTOISE NORTH AMERICAN ENERGY CORPORATION
By:
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Name:
Title:
THE BANK OF NEW YORK
By:
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Name:
Title:
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