EXHIBIT [ ]
RELATED NOTE GUARANTEE AGREEMENT
RELATED NOTE GUARANTEE AGREEMENT (the "Related
Note Guarantee"), dated as of , 1996, executed and
delivered by X.X. Xxxxxx & Co. Incorporated, a Delaware
corporation ("X.X. Xxxxxx"), for the benefit of the
X.X. Xxxxxx Index Funding Company, LLC, a Delaware
limited liability company (the "Company"), as the
holder from time to time of the Related Notes (as
defined below).
WHEREAS, the Company intends to issue its common limited
liability company interests (the "Common Securities") to and receive
related capital contributions from X.X. Xxxxxx and X.X. Xxxxxx Ventures
Corporation ("JPM Ventures"), and to issue and sell from time to time, in
one or more series, preferred limited liability company interests (the
"Preferred Securities") with such rights, preferences, privileges,
limitations and restrictions as are set forth in a written resolution or
resolutions (each, a "Written Action") by the Managing Members (as defined
below) providing for the issuance of such series;
WHEREAS, the Company will purchase from Xxxxxx Guaranty Trust
Company of New York, a trust company with full banking powers organized
under the laws of the State of New York and a wholly-owned subsidiary of
X.X. Xxxxxx ("Xxxxxx Guaranty"), one or more Related Notes with the
proceeds from the issuance and sale of each series of Preferred Securities
and, at the option of the Company, related Common Securities, the
distribution and principal repayment terms of which Related Note shall
mirror the related series of Preferred Securities; and
WHEREAS, X.X. Xxxxxx desires hereby to irrevocably and
unconditionally agree to the extent set forth herein to pay to the Company
the Related Note Guarantee Payments (as defined below) and to make certain
other payments on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the purchase by the Company
of the Related Notes, which purchase X.X. Xxxxxx hereby agrees shall
benefit X.X. Xxxxxx and which purchase X.X. Xxxxxx acknowledges will be
made in reliance upon the execution and delivery of this Related Note
Guarantee, X.X. Xxxxxx executes and delivers this Related Note Guarantee
for the benefit of the Company.
ARTICLE I
As used in this Related Note Guarantee, the terms set forth below
shall have the following meanings:
"Related Note Guarantee Payments" shall mean, with respect to any
Related Note, the following payments, without duplication, to the extent
not paid by Xxxxxx Guaranty: (i) any accrued and unpaid interest on such
Related Note and (ii) the Related Note Redemption Price (including all
accrued and unpaid interest) payable with respect to such Related Note to
be redeemed, in whole or in part, upon redemption thereof.
"LLC Agreement" shall mean the Company's Limited Liability
Company Agreement dated as of February , 1996, and effective as of November
21, 1995, as amended from time to time.
"Managing Members" shall mean X.X. Xxxxxx and JPM Ventures, in
their capacity as the members of the Company that hold all of the Company's
outstanding Common Securities.
"Principal Amount" shall mean, at any time with respect to any
Preferred Security of any series, the Redemption Value, the applicable
Early Redemption Value or stated liquidation preference thereof, as
applicable, determined in accordance with the Written Action creating such
series of Preferred Securities.
"Related Note Redemption Price" shall mean, with respect to any
Related Note at any time, an amount equal to the aggregate Principal Amount
of all Preferred Securities of the related series and, if applicable,
related Common Securities to be redeemed at such time, plus accrued and
unpaid interest with respect to such Related Note to but excluding the date
of redemption.
ARTICLE II
SECTION 2.01. X.X. Xxxxxx irrevocably and unconditionally agrees,
to the extent set forth herein, to
pay in full, to the Company the Related Note Guarantee Payments with
respect to each Related Note, as and when due (except to the extent paid by
the Xxxxxx Guaranty), regardless of any defense, right of set-off or
counterclaim which the Xxxxxx Guaranty may have or assert. This Related
Note Guarantee is continuing, irrevocable, unconditional and absolute.
SECTION 2.02. X.X. Xxxxxx hereby waives notice of acceptance of
this Related Note Guarantee and of any liability to which it applies or may
apply, presentment, demand for payment, protest, notice of nonpayment,
notice of dishonor, notice of redemption and all other notices and demands.
SECTION 2.03. The obligations, covenants, agreements and duties
of X.X. Xxxxxx under this Related Note Guarantee 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 Xxxxxx Guaranty of any express or
implied agreement, covenant, term or condition relating to the Related
Notes to be performed or observed by Xxxxxx Guaranty;
(b) the extension of time for the payment by Xxxxxx Guaranty of
all or any portion of the interest payments, the Related Note
Redemption Price or any other sums payable under the terms of the
Related Notes or the extension of time for the performance of any
other obligation under, arising out of, or in connection with, the
Related Notes;
(c) any failure, omission, delay or lack of diligence on the part
of the Company to enforce, assert or exercise any right, privilege,
power or remedy conferred on the Company pursuant to the terms of the
Related Notes, or any action on the part of Xxxxxx Guaranty granting
indulgence or extension of any kind;
(d) the voluntary or involuntary liquidation, dissolution, sale
of any collateral, receivership, insolvency, bankruptcy, assignment
for the benefit of creditors, reorganization, arrangement, composition
or readjustment of debt of, or other similar proceedings affecting,
Xxxxxx Guaranty or any of the assets of Xxxxxx Guaranty;
(e) any invalidity of, or defect or deficiency in, any of the
Related Notes; or
(f) the settlement or compromise of any obligation guaranteed
hereby or hereby incurred.
There shall be no obligation of the Company to give notice to, or obtain
consent of, X.X. Xxxxxx with respect to the happening of any of the
foregoing.
SECTION 2.04. This is a guarantee of payment and not of
collection. The Company may enforce this Guarantee directly against X.X.
Xxxxxx, and X.X. Xxxxxx waives any right or remedy to require that any
action be brought against Xxxxxx Guaranty or any other person or entity
before proceeding against X.X. Xxxxxx. Subject to Section 2.05 hereof, all
waivers herein contained shall be without prejudice to the Company's right
at the Company's option to proceed against Xxxxxx Guaranty, whether by
separate action or by joinder.
SECTION 2.05. X.X. Xxxxxx shall be subrogated to all (if any)
rights of the Company against Xxxxxx Guaranty in respect of any amounts
paid to the Company by X.X. Xxxxxx under this Related Note Guarantee and
Xxxxxx Guaranty shall not be required to make payment to the Company of any
amount of Related Note Guarantee Payments in respect of which payment has
theretofore been made by X.X. Xxxxxx pursuant to Section 2.01 hereof;
provided, however, that X.X. Xxxxxx shall not (except to the extent
required by mandatory provisions of law) 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 a payment under this Related Note
Guarantee, if, at the time of any such payment, any amounts are due and
unpaid under this Related Note Guarantee. If any amount shall be paid to
X.X. Xxxxxx in violation of the preceding sentence, X.X. Xxxxxx agrees to
pay over such amount to the Company for application to the Related Note
Guarantee Payments then due hereunder, if any, or to amounts due the
Company from Xxxxxx Guarantee under the relevant Related Note.
SECTION 2.06. X.X. Xxxxxx acknowledges that its obligations
hereunder are independent of the obligations of Xxxxxx Guaranty with
respect to the Related Notes and that X.X. Xxxxxx shall be liable as
principal and sole debtor hereunder to make Related Note Guarantee Payments
pursuant to the terms of this Related Note Guarantee notwithstanding
the occurrence of any event referred to in subsections (a) through (f),
inclusive, of Section 2.03 hereof.
ARTICLE III
The Related Note Guarantee will constitute an unsecured
obligation of X.X. Xxxxxx and will rank (i) subordinate and junior in right
of payment to all other liabilities of X.X. Xxxxxx, (ii) pari passu with
the most senior preferred stock outstanding as of the date hereof of X.X.
Xxxxxx and (iii) senior to X.X. Xxxxxx'x common stock.
ARTICLE IV
This Related Note Guarantee shall terminate and be of no further
force and effect as to any Related Note upon full payment of the Related
Note Redemption Price with respect to such Related Note; provided, however,
that this Related Note Guarantee shall continue to be effective or shall be
reinstated, as the case may be, if at any time the Company must restore
payment of any sums paid under such Related Note or under this Related Note
Guarantee for any reason whatsoever. X.X. Xxxxxx agrees to indemnify the
Company and hold it harmless against any loss it may suffer in such
circumstances.
ARTICLE V
SECTION 5.01. All guarantees and agreements contained in this
Related Note Guarantee shall bind the successors, assigns, receivers,
trustees and representatives of X.X. Xxxxxx and shall inure to the benefit
of the Company. X.X. Xxxxxx shall not assign its obligations hereunder
without the prior approval of the Company.
SECTION 5.02. Except with respect to any changes or waivers which
do not adversely affect the rights of the Company, this Related Note
Guarantee may not be amended or waived.
SECTION 5.03. Any notice, request or other communication required
or permitted to be given hereunder to X.X. Xxxxxx shall be given in writing
by mail or by facsimile transmission (followed by mail), addressed to X.X.
Xxxxxx, as follows:
X.X. Xxxxxx & Co. Incorporated
00 Xxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
Facsimile No.:
Attention: Commodities Desk
Any notice, request or other communication required or permitted
to be given hereunder to the Company shall be given by X.X. Xxxxxx in the
same manner as notices sent by Xxxxxx Guaranty to the Company.
SECTION 5.04. This Related Note Guarantee is solely for the
benefit of the Company and is not separately transferable from the Related
Notes.
SECTION 5.05. THIS RELATED NOTE GUARANTEE SHALL BE GOVERNED BY
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.
IN WITNESS WHEREOF, this Related Note Guarantee is executed as of
the day and year first above written.
X.X. XXXXXX & CO.
INCORPORATED,
By
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Name:
Title:
