GUARANTEE AGREEMENT by and between WEBSTER FINANCIAL CORPORATION, as Guarantor and THE BANK OF NEW YORK, as Guarantee Trustee relating to WEBSTER CAPITAL TRUST IV Dated as of [l], 2007
Exhibit 4.4
by and between
XXXXXXX FINANCIAL CORPORATION,
as Guarantor
as Guarantor
and
THE BANK OF NEW YORK,
as Guarantee Trustee
as Guarantee Trustee
relating to
XXXXXXX CAPITAL TRUST IV
Dated as of [l], 2007
CROSS-REFERENCE TABLE*
| Section of | Section of | |
| Trust Indenture Act | Guarantee | |
| of 1939, as amended | Agreement | |
310(a) |
4.1(a) | |
310(b) |
4.1(c), 2.8 | |
310(c) |
Inapplicable | |
311(a) |
2.2(b) | |
311(b) |
2.2(b) | |
311(c) |
Inapplicable | |
312(a) |
2.2(a) | |
312(b) |
2.2(b) | |
313 |
2.3 | |
314(a) |
2.4 | |
314(b) |
Inapplicable | |
314(c) |
2.5 | |
314(d) |
Inapplicable | |
314(e) |
1.1, 2.5, 3.2 | |
314(f) |
2.1, 3.2 | |
315(a) |
3.1(d) | |
315(b) |
2.7 | |
315(c) |
3.1 | |
315(d) |
3.1(d) | |
316(a) |
1.1, 2.6, 5.4 | |
316(b) |
5.3 | |
316(c) |
8.2 | |
317(a) |
Inapplicable | |
317(b) |
Inapplicable | |
318(a) |
2.1 | |
318(b) |
2.1 | |
318(c) |
2.1 | |
| * | This Cross-Reference Table does not constitute part of the Guarantee Agreement and shall not affect the interpretation of any of its terms or provisions. |
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TABLE OF CONTENTS
| Page |
ARTICLE I
DEFINITIONS
Section 1.1. Definitions |
1 | |||
ARTICLE II |
||||
TRUST INDENTURE ACT |
||||
Section 2.1. Trust Indenture Act; Application |
4 | |||
Section 2.2. List of Holders |
5 | |||
Section 2.3. Reports by the Guarantee Trustee |
5 | |||
Section 2.4. Periodic Reports to the Guarantee Trustee |
5 | |||
Section 2.5. Evidence of Compliance with Conditions Precedent |
5 | |||
Section 2.6. Events of Default; Waiver |
5 | |||
Section 2.7. Event of Default; Notice |
6 | |||
Section 2.8. Conflicting Interests |
6 | |||
ARTICLE III |
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POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE |
||||
Section 3.1. Powers and Duties of the Guarantee Trustee |
6 | |||
Section 3.2. Certain Rights of Guarantee Trustee |
8 | |||
Section 3.3. Compensation; Indemnity; Fees |
9 | |||
ARTICLE IV |
||||
GUARANTEE TRUSTEE |
||||
Section 4.1. Guarantee Trustee; Eligibility |
10 | |||
Section 4.2. Appointment, Removal and Resignation of the Guarantee Trustee |
10 | |||
ARTICLE V |
||||
GUARANTEE |
||||
Section 5.1. Guarantee |
11 | |||
Section 5.2. Waiver of Notice and Demand |
11 | |||
Section 5.3. Obligations Not Affected |
12 | |||
Section 5.4. Rights of Holders |
13 | |||
Section 5.5. Guarantee of Payment |
13 | |||
Section 5.6. Subrogation |
13 |
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Section 5.7. Independent Obligations |
13 | |||
ARTICLE VI |
||||
COVENANTS AND SUBORDINATION |
||||
Section 6.1. Subordination |
14 | |||
Section 6.2. Pari Passu Guarantees |
14 | |||
ARTICLE VII |
||||
TERMINATION |
||||
Section 7.1. Termination |
14 | |||
ARTICLE VIII |
||||
MISCELLANEOUS |
||||
Section 8.1. Successors and Assigns |
14 | |||
Section 8.2. Amendments |
14 | |||
Section 8.3. Notices |
15 | |||
Section 8.4. Benefit |
15 | |||
Section 8.5. Governing Law |
16 | |||
Section 8.6. Counterparts |
16 |
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GUARANTEE AGREEMENT, dated as of [l] between XXXXXXX FINANCIAL CORPORATION, a Delaware
corporation (the “Guarantor”), having its principal office at Xxxxxxx Plaza, 000 Xxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxxxxxx 00000 and THE BANK OF NEW YORK, as trustee (the “Guarantee Trustee”), for
the benefit of the Holders (as defined herein) from time to time of the Preferred Securities (as
defined herein) of XXXXXXX CAPITAL TRUST IV, a Delaware statutory trust (the “Issuer Trust”).
RECITALS OF THE GUARANTOR AND THE ISSUER TRUST
WHEREAS, pursuant to an Amended and Restated Trust Agreement, dated as of the date hereof (the
“Trust Agreement”), among Xxxxxxx Financial Corporation, as Sponsor, The Bank of New York, as
Property Trustee, The Bank of New York (Delaware), as Delaware Trustee, and the Administrative
Trustees named therein, the Issuer Trust is issuing up to $[l] aggregate Liquidation Amount (as
defined in the Trust Agreement) of its [l]% Fixed to Floating Rate Trust Preferred Securities
(liquidation amount $1,000 per Preferred Security) (the “Preferred Securities”), representing
preferred undivided beneficial interests in the assets of the Issuer Trust and having the terms set
forth in the Trust Agreement; and
WHEREAS, the Preferred Securities will be issued by the Issuer Trust and the proceeds thereof,
together with the proceeds from the issuance of the Issuer Trust’s Common Securities (as defined
herein), will be used to purchase the Notes (as defined in the Trust Agreement) of the Guarantor,
which Notes will be deposited with The Bank of New York, as Property Trustee under the Trust
Agreement, as trust assets; and
WHEREAS, as an incentive for the Holders to purchase Preferred Securities, the Guarantor
desires irrevocably and unconditionally to agree, to the extent set forth herein, to pay to the
Holders of the Preferred 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 of Preferred Securities by each Holder, which
purchase the Guarantor hereby acknowledges shall benefit the Guarantor, the Guarantor executes and
delivers this Guarantee Agreement for the benefit of the Holders from time to time.
ARTICLE I
DEFINITIONS
Section 1.1. Definitions.
For all purposes of this Guarantee Agreement, except as otherwise expressly provided or unless
the context otherwise requires:
(a) The terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;
(b) All other terms used herein that are defined in the Trust Indenture Act (as defined
herein), either directly or by reference therein, have the meanings assigned to them therein;
(c) The words “include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”;
(d) All accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles, and the term “generally accepted
accounting principles” with respect to any computation required or permitted hereunder shall mean
such accounting principles that are generally accepted in the United States at the date or time of
such computation; provided that when two or more principles are so generally accepted, it shall
mean that set of principles consistent with those in use by the Guarantor;
(e) Unless the context otherwise requires, any reference to an “Article” or a “Section” refers
to an Article or a Section, as the case may be, of this Guarantee Agreement; and
(f) The words “hereby”, “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Guarantee Agreement as a whole and not to any particular Article, Section or other
subdivision.
“Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control”, when used with respect to any specified Person, means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.
“Authorized Officer” of any Person means any officer of such Person or any person authorized
by or pursuant to a resolution of the Board of Directors (or equivalent body) of such Person.
“Board of Directors” means the board of directors of the Guarantor or any committee of that
board duly authorized to act hereunder.
“Common Securities” means the securities representing common undivided beneficial interests in
the assets of the Issuer Trust.
“Distributions” has the meaning specified in the Trust Agreement.
“Event of Default” means (i) a default by the Guarantor in any of its payment obligations
under this Guarantee Agreement or (ii) a default by the Guarantor in any other obligation hereunder
that remains unremedied for 30 days.
“Guarantee Agreement” means this Guarantee Agreement, as modified, amended or supplemented
from time to time.
“Guarantee Payments” means the following payments or distributions, without duplication, with
respect to the Preferred Securities, to the extent not paid or made by or on behalf of the Issuer
Trust: (i) any accumulated and unpaid Distributions required to be paid on the Preferred
Securities, to the extent the Issuer Trust shall have funds on hand available therefor at such
time; (ii) the Redemption Price (as defined in the Trust Agreement) with respect to any
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Preferred Securities called for redemption by the Issuer Trust, to the extent the Issuer Trust
shall have funds on hand available therefor at such time; and (iii) upon a voluntary or involuntary
termination, winding-up or liquidation of the Issuer Trust, unless Notes are distributed to the
Holders, the lesser of (a) the Liquidation Distribution (as defined in the Trust Agreement) with
respect to the Preferred Securities, to the extent that the Issuer Trust shall have funds on hand
available therefor at such time, and (b) the amount of assets of the Issuer Trust remaining
available for distribution to Holders on liquidation of the Issuer Trust.
“Guarantee Trustee” means The Bank of New York, solely in its capacity as Guarantee Trustee
and not in its individual capacity, until a Successor Guarantee Trustee has been appointed and has
accepted such appointment pursuant to the terms of this Guarantee Agreement, and thereafter means
each such Successor Guarantee Trustee.
“Guarantor” has the meaning specified in the first paragraph of this Guarantee Agreement.
“Holder” means any Holder (as defined in the Trust Agreement) of any Preferred Securities;
provided, however, that in determining whether the holders of the requisite percentage of Preferred
Securities have given any request, notice, consent or waiver hereunder, “Holder” shall not include
the Guarantor, the Guarantee Trustee, or any Affiliate of the Guarantor or the Guarantee Trustee.
“Indemnitee” has the meaning specified in Section 3.3(c).
“Indenture” means the Junior Subordinated Indenture, dated as of [l], 2007, between Xxxxxxx
Financial Corporation and The Bank of New York, as trustee, as the same may be modified, amended or
supplemented from time to time, including by the First Supplemental Indenture thereto.
“Issuer Trust” has the meaning specified in the first paragraph of this Guarantee Agreement.
“Liquidation Distribution” has the meaning specified in the Trust Agreement.
“List of Holders” has the meaning specified in Section 2.2(a).
“Majority in Liquidation Amount of the Preferred Securities” means, except as provided by the
Trust Indenture Act, Preferred Securities representing more than 50% of the aggregate Liquidation
Amount (as defined in the Trust Agreement) of all Preferred Securities then Outstanding (as defined
in the Trust Agreement).
“Officers’ Certificate” means, with respect to any Person, a certificate signed by any two
Authorized Officers of such person. Any Officers’ Certificate delivered with respect to compliance
with a condition or covenant provided for in this Guarantee Agreement shall include:
(a) a statement by each officer signing the Officers’ Certificate that such officer has read
the covenant or condition and the definitions relating thereto;
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(b) a brief statement of the nature and scope of the examination or investigation undertaken
by such officer in rendering the Officers’ Certificate;
(c) a statement that such 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 such officer, such condition or covenant has
been complied with.
“Person” means a legal person, including any individual, corporation, estate, partnership,
joint venture, association, joint-stock company, company, limited liability company, trust,
business trust, statutory trust, unincorporated association, or government or any agency or
political subdivision thereof, or any other entity of whatever nature.
“Preferred Securities” has the meaning specified in the recitals to this Guarantee Agreement.
“Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the
qualifications to act as Guarantee Trustee under Section 4.1.
“Trust Agreement” means the Amended and Restated Trust Agreement of the Issuer Trust referred
to in the recitals to this Guarantee Agreement, as modified, amended or supplemented from time to
time.
“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as in force at the
date as of which this Guarantee Agreement was executed; provided, however, that in the event the
Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended.
ARTICLE II
TRUST INDENTURE ACT
Section 2.1. Trust Indenture Act; Application.
(a) This Guarantee Agreement is subject to the provisions of the Trust Indenture Act that are
required to be part of this Guarantee Agreement and shall, to the extent applicable, be governed by
such provisions.
(b) If and to the extent that any provision of this Guarantee Agreement limits, qualifies or
conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act
through operation of Section 318(c) thereof, such imposed duties shall control. If any provision of
this Guarantee Agreement modifies or excludes any provision of the Trust Indenture Act which may be
so modified or excluded, the latter provision shall be deemed to apply to this Guarantee Agreement
as so modified or to be excluded, as the case may be.
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Section 2.2. List of Holders.
(a) The Guarantor shall furnish or cause to be furnished to the Guarantee Trustee (a)
semiannually, on or before [l] and [l] of each year, a list, in such form as the Guarantee Trustee
may reasonably require, of the names and addresses of the Holders (a “List of Holders”) as of a
date not more than 15 days prior to the delivery thereof, and (b) at such other times as the
Guarantee Trustee may request in writing, within 30 days after the receipt by the Guarantor of any
such request, a List of Holders as of a date not more than 15 days prior to the time such list is
furnished, in each case to the extent such information is in the possession or control of the
Guarantor and has not otherwise been received by the Guarantee Trustee in its capacity as such.
Notwithstanding the preceding sentence, the Guarantor shall not be obligated to provide such List
of Holders at any time the List of Holders does not differ from the most recent List of Holders
given to the Guarantee Trustee by the Guarantor. The Guarantee Trustee may destroy any List of
Holders previously given to it on receipt of a new List of Holders.
(b) The Guarantee Trustee shall comply with the requirements of Section 311(a), Section 311(b)
and Section 312(b) of the Trust Indenture Act.
Section 2.3. Reports by the Guarantee Trustee.
Within 60 days after [June 15] of each year, commencing [June 15], 2007, the Guarantee Trustee
shall provide to the Holders such reports as are required by Section 313 of the Trust Indenture
Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. The
Guarantee Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture
Act.
Section 2.4. Periodic Reports to the Guarantee Trustee.
The Guarantor shall provide to the Guarantee Trustee, the Securities and Exchange Commission
and the Holders such documents, reports and information, if any, as required by Section 314 of the
Trust Indenture Act and the compliance certificate required by Section 314 of the Trust Indenture
Act, in the form, in the manner and at the times required by Section 314 of the Trust Indenture
Act.
Section 2.5. Evidence of Compliance with Conditions Precedent.
The Guarantor shall provide to the Guarantee Trustee such evidence of compliance with such
conditions precedent, if any, provided for in this Guarantee Agreement that relate to any of the
matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion required
to be given by an officer of the Guarantor pursuant to Section 314(c)(1) may be given in the form
of an Officers’ Certificate.
Section 2.6. Events of Default; Waiver.
The Holders of at least a Majority in Liquidation Amount of the Preferred Securities may, by
vote, on behalf of the Holders of all the Preferred Securities, waive any past default or Event of
Default and its consequences. Upon such waiver, any such default or Event of Default shall cease to
exist, and any default or Event of Default arising therefrom shall be deemed to have
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been cured, for every purpose of this Guarantee Agreement, but no such waiver shall extend to
any subsequent or other default or Event of Default or impair any right consequent thereon.
Section 2.7. Event of Default; Notice.
(a) The Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default,
transmit by mail, first class postage prepaid, to the Holders, notice of any such Event of Default
known to the Guarantee Trustee, unless such Event of Default has been cured before the giving of
such notice, provided that, except in the case of a default in the payment of a Guarantee Payment,
the Guarantee Trustee shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors of the Guarantee Trustee in
good faith determines that the withholding of such notice is in the interests of the Holders.
(b) The Guarantee Trustee shall not be deemed to have knowledge of any Event of Default unless
the Guarantee Trustee shall have received written notice, or an officer of the Guarantee Trustee
charged with the administration of this Guarantee Agreement shall have obtained actual knowledge,
of such Event of Default.
Section 2.8. Conflicting Interests.
The Trust Agreement and the Indenture shall be deemed to be specifically described in this
Guarantee Agreement for the purposes of clause (i) of the first proviso contained in Section 310(b)
of the Trust Indenture Act.
ARTICLE III
POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE
Section 3.1. Powers and Duties of the Guarantee Trustee.
(a) This Guarantee Agreement shall be held by the Guarantee Trustee for the benefit of the
Holders, and the Guarantee Trustee shall not transfer this Guarantee Agreement to any Person except
to a Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of its
appointment to act as Guarantee Trustee hereunder. The right, title and interest of the Guarantee
Trustee, as such, hereunder shall automatically vest in any Successor Guarantee Trustee, upon
acceptance by such Successor Guarantee Trustee of its appointment hereunder, and such vesting of
title shall be effective whether or not conveyancing documents have been executed and delivered
pursuant to the appointment of such Successor Guarantee Trustee.
(b) If an Event of Default has occurred and is continuing of which the Guarantee Trustee is
deemed to have knowledge pursuant to Section 2.7(b) hereof, the Guarantee Trustee shall enforce
this Guarantee Agreement for the benefit of the Holders.
(c) The Guarantee Trustee, before the occurrence of any Event of Default, and after the curing
of all Events of Default that may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Guarantee Agreement, and no implied covenants shall be read into
this Guarantee Agreement against the Guarantee Trustee. The Guarantee Trustee
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shall, during the existence of any Event of Default of which the Guarantee Trustee is deemed
to have knowledge pursuant to Section 2.7(b) hereof and which has not been cured or waived pursuant
to Section 2.6, exercise such of the rights and powers vested in it by this Guarantee Agreement,
and use the same degree of care and skill in its exercise thereof, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own affairs.
(d) No provision of this Guarantee Agreement shall be construed to relieve the Guarantee
Trustee from liability for its own negligent action, its own negligent failure to act or its own
willful misconduct, except that:
(i) 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:
(A) the duties and obligations of the Guarantee Trustee shall be determined
solely by the express provisions of this Guarantee Agreement (including pursuant to
Section 2.1), 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 Agreement; and
(B) 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 Agreement; but in the case of any such certificates or opinions that by
any provision hereof or of the Trust Indenture Act 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 Agreement.
(ii) The Guarantee Trustee shall not be liable for any error of judgment made in good
faith by an officer of the Guarantee Trustee, unless it shall be proved that the Guarantee
Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made.
(iii) 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 direction of the Holders of
not less than a Majority in Liquidation Amount of the Preferred Securities relating to the
time, method and place of conducting any proceeding for any remedy available to the
Guarantee Trustee, or exercising any trust or power conferred upon the Guarantee Trustee
under this Guarantee Agreement.
(iv) No provision of this Guarantee Agreement 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 or liability is not reasonably assured to it under the terms of this Guarantee
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Agreement or adequate indemnity against such risk or liability is not reasonably
assured to it.
Section 3.2. Certain Rights of Guarantee Trustee.
(a) Subject to the provisions of Section 3.1:
(i) The Guarantee Trustee may 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
indebtedness or other paper or document reasonably believed by it to be genuine and to have
been signed, sent or presented by the proper party or parties.
(ii) Any direction or act of the Guarantor contemplated by this Guarantee Agreement
shall be sufficiently evidenced by an Officers’ Certificate unless otherwise prescribed
herein.
(iii) Whenever, in the administration of this Guarantee Agreement, the Guarantee
Trustee shall deem it desirable that a matter be proved or established before taking,
suffering or omitting to take 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 rely upon an Officers’ Certificate which, upon receipt of such request from the
Guarantee Trustee, shall be promptly delivered by the Guarantor.
(iv) The Guarantee Trustee may consult with legal counsel, and the written advice or
opinion of such legal counsel with respect to legal matters shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted to be taken
by it hereunder in good faith and in accordance with such advice or opinion. Such legal
counsel may be legal counsel to the Guarantor or any of its Affiliates and may be one of its
employees. The Guarantee Trustee shall have the right at any time to seek instructions
concerning the administration of this Guarantee Agreement from any court of competent
jurisdiction.
(v) The Guarantee Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Guarantee Agreement at the request or direction of any Holder
unless such Holder shall have provided to the Guarantee Trustee such adequate security and
indemnity as would satisfy a reasonable person in the position of the Guarantee Trustee
against the costs, expenses (including attorneys’ fees and expenses) 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 that nothing
contained in this Section 3.2(a)(v) shall be taken to 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 Agreement.
(vi) 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
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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.
(vii) The Guarantee Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through its agents or attorneys, and
the Guarantee Trustee shall not be responsible for any misconduct or negligence on the part
of any such agent or attorney appointed by it with due care hereunder.
(viii) Whenever in the administration of this Guarantee Agreement 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 (A) may request
instructions from the Holders, (B) may refrain from enforcing such remedy or right or taking
such other action until such instructions are received, and (C) shall be protected in acting
in accordance with such instructions.
(b) No provision of this Guarantee Agreement shall be deemed to impose any duty or obligation
on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or
obligation conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which
the Guarantee Trustee shall be unqualified or incompetent in accordance with applicable law, to
perform any such act or acts or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Guarantee Trustee shall be construed to be a duty to
act in accordance with such power and authority.
Section 3.3. Compensation; Indemnity; Fees.
The Guarantor agrees:
(a) to pay to the Guarantee Trustee from time to time such reasonable compensation for all
services rendered by it hereunder as may be agreed by the Guarantor and the Guarantee Trustee 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);
(b) except as otherwise expressly provided herein, to reimburse the Guarantee Trustee upon
request for all reasonable expenses, disbursements and advances incurred or made by the Guarantee
Trustee in accordance with any provision of this Guarantee Agreement (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;
and
(c) to indemnify the Guarantee Trustee and its directors, officers, employees and agents
(collectively with the Guarantee Trustee, the “Indemnitees”) for, and to hold them harmless
against, any loss, liability or expense, including without limitation, damages, fines, suits,
actions, demands, penalties, costs, out-of-pocket or incidental expenses, reasonable legal fees and
expenses and the costs and expenses of defending itself against any claim in connection with the
exercise or performance of any of its powers or duties hereunder (collectively, “Losses”), that may
be imposed on or incurred by any Indemnitee for or in respect of the Guarantee Trustee’s (i)
execution and delivery of this Guarantee Agreement, (ii) compliance or attempted compliance with or
reliance upon any instruction or other direction upon which the
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Guarantee Trustee is authorized to rely pursuant to the terms of this Guarantee Agreement and
(iii) performance under this Guarantee Agreement, except in each case to the extent that the Loss
resulted from the Guarantee Trustee’s or such Indemnitee’s negligence, willful misconduct or bad
faith. The provisions of this Section shall survive the termination of this Guarantee Agreement and
the resignation or removal of the Guarantee Trustee for any reason. The Guarantee Trustee will not
claim or exact any lien or charge on any Guarantee Payments as a result of any amount due to it
under this Guarantee Agreement.
ARTICLE IV
GUARANTEE TRUSTEE
Section 4.1. Guarantee Trustee; Eligibility.
(a) There shall at all times be a Guarantee Trustee that shall:
(i) not be an Affiliate of the Guarantor; and
(ii) be a Person that is eligible pursuant to the Trust Indenture Act to act as such
and has a combined capital and surplus of at least $50,000,000, and shall be a corporation
meeting the requirements of Section 310(a) of the Trust Indenture Act. If such corporation
publishes reports of condition at least annually, pursuant to law or to the requirements of
its supervising or examining authority, then, for the purposes of this Section 4.1 and to
the extent permitted by the Trust Indenture Act, 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.
(b) If at any time the Guarantee Trustee shall cease to be eligible to so act under Section
4.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set out in
Section 4.2.
(c) If the Guarantee Trustee has or shall acquire any “conflicting interest” within the
meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee and Guarantor shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.
Section 4.2. Appointment, Removal and Resignation of the Guarantee Trustee.
(a) Subject to Section 4.2(c), the Guarantee Trustee may be appointed or removed at any time
by the action of the Holders of a Majority in Liquidation Amount of the Trust Preferred Securities
delivered to the Guarantee Trustee and the Guarantor (i) for cause or (ii) if a Note Event of
Default (as defined in the Trust Agreement) shall have occurred and be continuing at any time.
(b) Subject to Section 4.2(c), the Guarantee Trustee may resign from office (without need for
prior or subsequent accounting) by giving written notice thereof to the Holders and the Guarantor
and by appointing a successor Guarantee Trustee. The Guarantee Trustee shall appoint a successor by
requesting from at least three Persons meeting the requirements of Section 4.1(a)
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their expenses and charges to serve as the Guarantee Trustee, and selecting the Person who
agrees to the lowest expenses and charges.
(c) The Guarantee Trustee appointed hereunder shall hold office until a Successor Guarantee
Trustee shall have been appointed and shall have accepted such appointment. No removal or
resignation of a Guarantee Trustee shall be effective until a Successor Guarantee Trustee has been
appointed and has accepted such appointment by written instrument executed by such Successor
Guarantee Trustee and delivered to the Guarantor and, in the case of any resignation, the resigning
Guarantee Trustee.
(d) If no Successor Guarantee Trustee shall have been appointed and accepted appointment as
provided in this Section 4.2 within 60 days after delivery to the Holders and the Guarantor of a
notice of resignation, the resigning Guarantee Trustee may petition, at the expense of the
Guarantor, any court of competent jurisdiction for appointment of a Successor Guarantee Trustee.
Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a
Successor Guarantee Trustee.
(e) If a resigning Guarantee Trustee shall fail to appoint a successor, or if a Guarantee
Trustee shall be removed or become incapable of acting as Guarantee Trustee and a replacement shall
not be appointed prior to such resignation or removal, or if a vacancy shall occur in the office of
Guarantee Trustee for any cause, the Holders of the Preferred Securities, by the action of the
Holders of record of not less than 25% in aggregate Liquidation Amount (as defined in the Trust
Agreement) of the Preferred Securities then Outstanding (as defined in the Trust Agreement)
delivered to such Guarantee Trustee, may appoint a Successor Guarantee Trustee or Trustees. If no
successor Guarantee Trustee shall have been so appointed by the Holders of the Preferred Securities
and accepted appointment, any Holder, on behalf of such Holder and all others similarly situated,
or any other Guarantee Trustee, may petition any court of competent jurisdiction for the
appointment of a successor Guarantee Trustee.
ARTICLE V
GUARANTEE
Section 5.1. Guarantee.
The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the
Guarantee Payments (subject to the limitations contained in the definition of that term and without
duplication of amounts theretofore paid by or on behalf of the Issuer Trust), as and when due,
regardless of any defense, right of set-off or counterclaim that the Issuer Trust may have or
assert, except the defense of payment. 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 Trust to pay such amounts to the Holders.
Section 5.2. Waiver of Notice and Demand.
The Guarantor hereby waives notice of acceptance of this Guarantee Agreement and of any
liability to which it applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Guarantee Trustee, the Issuer Trust or any other Person
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before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor,
notice of redemption and all other notices and demands.
Section 5.3. Obligations Not Affected.
The obligations, covenants, agreements and duties of the Guarantor under this Guarantee
Agreement shall in no way be affected or impaired by reason of the happening from time to time of
any of the following:
(a) the release or waiver, by operation of law or otherwise, of the performance or observance
by the Issuer Trust of any express or implied agreement, covenant, term or condition relating to
the Preferred Securities to be performed or observed by the Issuer Trust;
(b) the extension of time for the payment by the Issuer Trust of all or any portion of the
Distributions (other than an extension of time for payment of Distributions that results from the
extension of any interest payment period on the Notes as provided in the Indenture), Redemption
Price, Liquidation Distribution or any other sums payable under the terms of the Preferred
Securities or the extension of time for the performance of any other obligation under, arising out
of, or in connection with, the Preferred Securities;
(c) 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 Preferred Securities, or any action on the part of the Issuer Trust granting
indulgence or extension of any kind;
(d) the voluntary or involuntary liquidation, dissolution, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or
readjustment of debt of, or other similar proceedings affecting, the Issuer Trust or any of the
assets of the Issuer Trust;
(e) any invalidity of, or defect or deficiency in, the Preferred Securities or any agreement
relating thereto (including, without limitation, this Guarantee Agreement);
(f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or
(g) any other circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a guarantor (other than payment of the underlying obligation), it being the
intent of this Section 5.3 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 the consent of, the
Guarantor with respect to the happening of any of the foregoing.
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Section 5.4. Rights of Holders.
The Guarantor expressly acknowledges that: (i) this Guarantee Agreement will be deposited with
the Guarantee Trustee to be held for the benefit of the Holders; (ii) the Guarantee Trustee has the
right to enforce this Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority
in Liquidation Amount of the Preferred 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 Agreement or exercising any trust or power conferred upon the Guarantee Trustee
under this Guarantee Agreement; and (iv) any Holder may institute a legal proceeding directly
against the Guarantor to enforce its rights under this Guarantee Agreement without first
instituting a legal proceeding against the Guarantee Trustee, the Issuer Trust or any other Person.
Section 5.5. Guarantee of Payment.
This Guarantee Agreement creates a guarantee of payment and not of collection.
Section 5.6. Subrogation.
The Guarantor shall be subrogated to all rights (if any) of the Holders against the Issuer
Trust in respect of any amounts paid to the Holders by the Guarantor under this Guarantee
Agreement; 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 which 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 Agreement, if, at the time of any such payment, any amounts are due
and unpaid under this Guarantee Agreement. 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.
Section 5.7. Independent Obligations.
The Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Issuer Trust with respect to the Preferred 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 Agreement notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 5.3 hereof.
ARTICLE VI
COVENANTS AND SUBORDINATION
Section 6.1. Subordination.
The obligations of the Guarantor under this Guarantee Agreement will constitute unsecured
obligations of the Guarantor and will rank subordinate and junior in right of payment and upon
liquidation to all Senior and Subordinated Debt (as defined in the Indenture) of the Guarantor to
the extent and in the manner set forth in the Indenture with respect to the Notes, and the
provisions of Article XIII of the Indenture will apply, mutatis mutandis, to the obligations of
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the Guarantor hereunder. The obligations of the Guarantor hereunder do not constitute Senior
and Subordinated Debt of the Guarantor.
Section 6.2. Pari Passu Guarantees.
The obligations of the Guarantor under this Guarantee Agreement shall rank pari passu with the
obligations of the Guarantor under (i) any similar guarantee agreements issued by the Guarantor on
behalf of the holders of preferred or capital securities issued by any statutory trust the assets
of which consist of debt securities that are pari passu to the Notes and the proceeds thereof, (ii)
the Indenture and the Securities (as defined therein) issued thereunder, and (iii) any other
security, guarantee or other agreement or obligation that is expressly stated to rank pari passu
with the obligations of the Guarantor under this Guarantee Agreement or with any obligation that
ranks pari passu with the obligations of the Guarantor under this Guarantee Agreement.
ARTICLE VII
TERMINATION
Section 7.1. Termination.
This Guarantee Agreement shall terminate and be of no further force and effect upon (i) full
payment of the Redemption Price (as defined in the Trust Agreement) of all Preferred Securities,
(ii) the distribution of Notes to the Holders in exchange for all of the Preferred Securities or
(iii) full payment of the amounts payable in accordance with Article IX of the Trust Agreement upon
liquidation of the Issuer Trust. Notwithstanding the foregoing, this Guarantee Agreement will
continue to be effective or will be reinstated, as the case may be, if at any time any Holder is
required to repay any sums paid with respect to Preferred Securities or this Guarantee Agreement.
ARTICLE VIII
MISCELLANEOUS
Section 8.1. Successors and Assigns.
All guarantees and agreements contained in this Guarantee Agreement shall bind the successors,
assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of
the Holders of the Preferred Securities then outstanding. Except in connection with a
consolidation, merger or sale involving the Guarantor that is permitted under Article VIII of the
Indenture and pursuant to which the successor or assignee agrees in writing to perform the
Guarantor’s obligations hereunder, the Guarantor shall not assign its obligations hereunder, and
any purported assignment other than in accordance with this provision shall be void.
Section 8.2. Amendments.
Except with respect to any changes that do not adversely affect the rights of the Holders in
any material respect (in which case no consent of the Holders will be required), this Guarantee
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Agreement may only be amended with the prior approval of the Holders of not less than a
Majority in Liquidation Amount of the Preferred Securities. The provisions of Article VI of the
Trust Agreement concerning meetings of the Holders shall apply to the giving of such approval.
Section 8.3. Notices.
Any notice, request or other communication required or permitted to be given hereunder shall
be in writing, duly signed by the party giving such notice, and delivered, telecopied or mailed by
first class mail as follows:
(a) if given to the Guarantor, to the address or facsimile number set forth below or such
other address or facsimile number as the Guarantor may give notice to the Guarantee Trustee and the
Holders:
Xxxxxxx Financial Corporation
Xxxxxxx Plaza
000 Xxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxxxxx 00000
Facsimile No.: [l]
Attention: [Treasurer]
Xxxxxxx Plaza
000 Xxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxxxxx 00000
Facsimile No.: [l]
Attention: [Treasurer]
(b) if given to the Guarantee Trustee, at the address or facsimile number set forth below or
such other address or facsimile number as the Guarantee Trustee may give notice to the Guarantor
and the Holders:
The Bank of New York
[101 Xxxxxxx Xxxxxx
Xxxxx 0 Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile No.: [l]
Attention: [Corporate Trust Department]
[101 Xxxxxxx Xxxxxx
Xxxxx 0 Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile No.: [l]
Attention: [Corporate Trust Department]
(c) if given to any Holder, at the address set forth on the books and records of the Issuer
Trust.
All notices hereunder 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.
Section 8.4. Benefit.
This Guarantee Agreement is solely for the benefit of the Holders and is not separately
transferable from the Preferred Securities.
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Section 8.5. Governing Law.
THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.
Section 8.6. Counterparts.
This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.
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IN WITNESS WHEREOF, the parties hereto have executed this Guarantee Agreement as of the day
and year first above written.
| XXXXXXX FINANCIAL CORPORATION | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
| THE BANK OF NEW YORK, as Guarantee Trustee |
||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
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