EXHIBIT 4.13
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SECOND AMENDED AND RESTATED
TRUST AGREEMENT
among
BANCORPSOUTH, INC., as Depositor,
THE BANK OF NEW YORK,
as Property Trustee,
THE BANK OF NEW YORK (DELAWARE),
as Delaware Trustee,
and
THE ADMINISTRATIVE TRUSTEES NAMED HEREIN
Dated as of January 28, 2002
BANCORPSOUTH CAPITAL TRUST I
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BANCORPSOUTH CAPITAL TRUST I
Certain Sections of this Trust Agreement relating to Sections
310 through 318 of the Trust Indenture Act of 1939:
Trust Indenture Trust Agreement
Act Section Section
ss.310 (a)(1) 8.07
(a)(2) 8.07
(a)(3) 8.09
(a)(4) 2.07(a)(ii)
(b) 8.08
ss.311 (a) 8.13
(b) 8.13
ss.312 (a) 5.08
(b) 5.08
(c) 5.08
ss.313 (a) 8.14(a)
(a)(4) 8.14(b)
(b) 8.14(b)
(c) 10.09
(d) 8.14(c)
ss.3.14(a) 8.15
(b) Not Applicable
(c)(1) 8.16
(c)(2) 8.16
(c)(3) Not Applicable
(d) Not Applicable
(e) 1.01, 8.16
ss.315 (a) 8.01(a), 8.03(a)
(b) 8.02, 10.09
(c) 8.01(a)
(d) 8.01, 8.03
(e) Not Applicable
ss.316 (a) Not Applicable
(a)(1)(A) Not Applicable
(a)(1)(B) Not Applicable
(a)(2) Not Applicable
(b) 5.13
(c) 6.07
ss.317 (a)(1) Not Applicable
(a)(2) Not Applicable
(b) 5.10
ss.318 (a) 10.11
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Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Trust Agreement.
TABLE OF CONTENTS
Page
ARTICLE I
DEFINED TERMS
SECTION 1.01. DEFINITIONS .......................................................................... 2
ARTICLE II
CONTINUATION OF THE TRUST
SECTION 2.01. NAME ................................................................................. 15
SECTION 2.02. OFFICE OF THE DELAWARE TRUSTEE; PRINCIPAL PLACE OF BUSINESS .......................... 15
SECTION 2.03. ORGANIZATIONAL EXPENSES .............................................................. 15
SECTION 2.04. ISSUANCE OF THE PREFERRED SECURITIES ................................................. 15
SECTION 2.05. ISSUANCE OF THE COMMON SECURITIES; SUBSCRIPTION AND PURCHASE OF JUNIOR SUBORDINATED
DEBT SECURITIES ...................................................................... 16
SECTION 2.06. TRUST AGREEMENT ...................................................................... 16
SECTION 2.07. AUTHORIZATION TO ENTER INTO CERTAIN TRANSACTIONS ..................................... 17
SECTION 2.08. ASSETS OF TRUST ...................................................................... 22
SECTION 2.09. TITLE TO TRUST PROPERTY .............................................................. 22
ARTICLE III
PAYMENT ACCOUNT
SECTION 3.01. PAYMENT ACCOUNT ...................................................................... 23
ARTICLE IV
DISTRIBUTIONS; REDEMPTION
SECTION 4.01. DISTRIBUTIONS ........................................................................ 23
SECTION 4.02. REDEMPTION ........................................................................... 24
SECTION 4.03. SUBORDINATION OF COMMON SECURITIES ................................................... 27
SECTION 4.04. PAYMENT PROCEDURES ................................................................... 28
SECTION 4.05. TAX RETURNS AND REPORTS .............................................................. 29
SECTION 4.06. PAYMENT OF TAXES; DUTIES, ETC. OF THE TRUST .......................................... 29
SECTION 4.07. PAYMENTS UNDER INDENTURE ............................................................. 29
ARTICLE V
TRUST SECURITIES CERTIFICATES
SECTION 5.01. INITIAL OWNERSHIP .................................................................... 29
SECTION 5.02. TRUST SECURITIES CERTIFICATES ........................................................ 30
SECTION 5.03. EXECUTION AND DELIVERY OF TRUST SECURITIES CERTIFICATES .............................. 30
SECTION 5.04. GLOBAL PREFERRED SECURITY ............................................................ 31
SECTION 5.05. REGISTRATION OF TRANSFER AND EXCHANGE GENERALLY; CERTAIN TRANSFERS AND EXCHANGES;
PREFERRED SECURITIES CERTIFICATES; SECURITIES ACT LEGENDS ............................ 32
SECTION 5.06. MUTILATED, DESTROYED, LOST OR STOLEN TRUST SECURITIES CERTIFICATES ................... 35
SECTION 5.07. PERSONS DEEMED SECURITYHOLDERS ....................................................... 35
SECTION 5.08. ACCESS TO LIST OF SECURITYHOLDERS' NAMES AND ADDRESSES ............................... 36
SECTION 5.09. MAINTENANCE OF OFFICE OR AGENCY; TRANSFER AGENT ...................................... 36
SECTION 5.10. APPOINTMENT OF PAYING AGENT .......................................................... 36
SECTION 5.11. OWNERSHIP OF COMMON SECURITIES BY DEPOSITOR .......................................... 37
SECTION 5.12. NOTICES TO CLEARING AGENCY ........................................................... 37
SECTION 5.13. RIGHTS OF SECURITYHOLDERS ............................................................ 38
ARTICLE VI
ACTS OF SECURITYHOLDERS; MEETINGS; VOTING
SECTION 6.01. LIMITATIONS ON PREFERRED SECURITYHOLDER'S VOTING RIGHTS .............................. 41
SECTION 6.02. NOTICE OF MEETINGS ................................................................... 42
SECTION 6.03. MEETINGS OF SECURITYHOLDERS .......................................................... 43
SECTION 6.04. VOTING RIGHTS ........................................................................ 43
SECTION 6.05. PROXIES, ETC ......................................................................... 43
SECTION 6.06. SECURITYHOLDER ACTION BY WRITTEN CONSENT ............................................. 44
SECTION 6.07. RECORD DATE FOR VOTING AND OTHER PURPOSES ............................................ 44
SECTION 6.08. ACTS OF SECURITYHOLDERS .............................................................. 44
SECTION 6.09. INSPECTION OF RECORDS ................................................................ 46
ARTICLE VII
REPRESENTATIONS AND WARRANTIES
SECTION 7.01. REPRESENTATIONS AND WARRANTIES OF THE PROPERTY TRUSTEE AND THE DELAWARE TRUSTEE ...... 46
SECTION 7.02. REPRESENTATIONS AND WARRANTIES OF DEPOSITOR .......................................... 48
ARTICLE VIII
THE TRUSTEES
SECTION 8.01. CERTAIN DUTIES AND RESPONSIBILITIES .................................................. 48
SECTION 8.02. EVENTS OF DEFAULT NOTICES; DEFERRAL OF INTEREST PAYMENT NOTICES ...................... 50
SECTION 8.03. CERTAIN RIGHTS OF PROPERTY TRUSTEE ................................................... 51
SECTION 8.04. NOT RESPONSIBLE FOR RECITALS ......................................................... 54
SECTION 8.05. MAY HOLD SECURITIES .................................................................. 55
SECTION 8.06. COMPENSATION, INDEMNITY, FEES ........................................................ 55
SECTION 8.07. CORPORATE PROPERTY TRUSTEE REQUIRED; ELIGIBILITY OF TRUSTEES ......................... 57
SECTION 8.08. CONFLICTING INTERESTS ................................................................ 58
SECTION 8.09. CO-TRUSTEES AND SEPARATE TRUSTEE ..................................................... 58
SECTION 8.10. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR .................................... 60
SECTION 8.11. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR ............................................... 62
SECTION 8.12. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS .......................... 64
SECTION 8.13. PREFERENTIAL COLLECTION OF CLAIMS AGAINST DEPOSITOR OR TRUST ......................... 64
SECTION 8.14. REPORTS BY PROPERTY TRUSTEE .......................................................... 65
SECTION 8.15. REPORTS TO THE PROPERTY TRUSTEE ...................................................... 66
SECTION 8.16. EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT ..................................... 66
SECTION 8.17. NUMBER OF TRUSTEES ................................................................... 66
SECTION 8.18. DELEGATION OF POWER .................................................................. 67
ARTICLE IX
DISSOLUTION, LIQUIDATION AND MERGER
SECTION 9.01. DISSOLUTION UPON EXPIRATION DATE; TERMINATION UPON SPECIAL EVENT ..................... 67
SECTION 9.02. EARLY TERMINATION .................................................................... 67
SECTION 9.03. TERMINATION .......................................................................... 68
SECTION 9.04. LIQUIDATION .......................................................................... 69
SECTION 9.05. MERGERS, CONSOLIDATIONS, AMALGAMATIONS OR REPLACEMENTS OF THE TRUST .................. 71
ARTICLE X
MISCELLANEOUS PROVISIONS
SECTION 10.01. LIMITATION OF RIGHTS OF SECURITYHOLDERS ............................................. 73
SECTION 10.02. LIABILITY OF THE DEPOSITOR .......................................................... 73
SECTION 10.03. AMENDMENT ........................................................................... 73
SECTION 10.04. SEPARABILITY ........................................................................ 75
SECTION 10.05. GOVERNING LAW ....................................................................... 75
SECTION 10.06. PAYMENTS DUE ON NON-BUSINESS DAY .................................................... 75
SECTION 10.07. SUCCESSORS .......................................................................... 76
SECTION 10.08. HEADINGS ............................................................................ 76
SECTION 10.09. REPORTS, NOTICES AND DEMANDS ........................................................ 76
SECTION 10.10. AGREEMENT NOT TO PETITION ........................................................... 77
SECTION 10.11. TRUST INDENTURE ACT; CONFLICT WITH TRUST INDENTURE ACT .............................. 77
SECTION 10.12. ACCEPTANCE OF TERMS OF TRUST AGREEMENT, GUARANTEE AGREEMENT AND INDENTURE ........... 78
This SECOND AMENDED AND RESTATED TRUST AGREEMENT,
dated as of January 28, 2002, among (i) BANCORPSOUTH, INC., a
Mississippi corporation (including any successors or assigns,
the "Depositor"), (ii) THE BANK OF NEW YORK, a New York
banking corporation, as property trustee, (in such capacity,
the "Property Trustee" and, in its separate corporate
capacity and not in its capacity as Property Trustee, the
"Bank"), (iii) THE BANK OF NEW YORK (Delaware), a Delaware
banking corporation, as Delaware trustee (the "Delaware
Trustee"), (iv) Aubrey B. Patterson, an individual, and L.
Nash Allen, Jr., an individual, each of whose address is c/o
BancorpSouth, Inc. (each an "Administrative Trustee" and
collectively the "Administrative Trustees") (the Property
Trustee, the Delaware Trustee and the Administrative Trustees
are referred to collectively herein as the "Trustees") and
(v) the several Holders, as hereinafter defined.
WITNESSETH:
WHEREAS the Depositor, the Administrative Trustees and
Bankers Trust (Delaware) (the "Former Delaware Trustee"), as trustee, duly
declared and established a business trust pursuant to the Delaware Business
Trust Act by entering into a certain Declaration of Trust, dated as of August
22, 1997 (the "Initial Declaration"), and by the execution and filing by the
Administrative Trustees and the Former Delaware Trustee with the Secretary of
State of the State of Delaware (the "Secretary of State") of the Certificate of
Trust, filed on August 22, 1997;
WHEREAS the Depositor, the Delaware Trustee, the Property
Trustee and the Administrative Trustees have heretofore duly continued the
business trust pursuant to the Delaware Business Trust Act by entering into a
certain Trust Agreement, dated as of October 31, 2001 (the "Original Trust
Agreement"), which amended and restated the Initial Declaration in its
entirety, and by the execution and filing by the Delaware Trustee, the Property
Trustee and the Administrative Trustees with the Secretary of State of the
State of Delaware (the "Secretary of State") of the
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Certificate of Trust, filed on October 31, 2001 (the "Certificate of Trust"),
and attached as Exhibit A;
WHEREAS pursuant to the Original Trust Agreement, the
Depositor removed the Former Delaware Trustee as a trustee of the Trust and,
simultaneously therewith, appointed and substituted the Delaware Trustee as a
trustee of the Trust and appointed the Property Trustee as an additional
trustee of the Trust; and
WHEREAS the Depositor, the Delaware Trustee, the Property
Trustee and the Administrative Trustees desire to amend and restate the
Original Trust Agreement in its entirety as set forth herein to provide for,
among other things (i) the issuance and sale of the Common Securities by the
Trust to the Depositor, (ii) the issuance and sale of the Trust Preferred
Securities (the "Preferred Securities") by the Trust pursuant to the
Underwriting Agreement and (iii) the acquisition by the Trust from the
Depositor of all of the right, title and interest in the Junior Subordinated
Debt Securities;
NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, each party, for the benefit of the
other parties and for the benefit of the Securityholders, as hereinafter
defined, hereby amends and restates the Original Trust Agreement in its
entirety and agrees as follows:
ARTICLE I
Defined Terms
Section 1.01. Definitions. For all purposes of this Trust
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, either directly or by reference therein, have the
meanings assigned to them therein;
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(c) 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 Trust Agreement;
(d) the words "herein," "hereof" and "hereunder" and
other words of similar import refer to this Trust Agreement as a whole
and not to any particular Article, Section or other subdivision; and
(e) all references to the date the Preferred Securities
were originally issued shall refer to the date the Initial Preferred
Securities were originally issued.
"Act" has the meaning specified in Section 6.08.
"Administrative Trustee" means each of Aubrey B. Patterson
and L. Nash Allen, Jr., solely in such Person's capacity as Administrative
Trustee of the Trust continued hereunder and not in such Person's individual
capacity, or such Administrative Trustee's successor in interest in such
capacity, or any successor trustee appointed as herein provided.
"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.
"Applicable Procedures" means, with respect to any transfer
or transaction involving a Global Preferred Security or beneficial interest
therein, the rules and procedures of the depositary for such Preferred
Security, in each case to the extent applicable to such transaction and as in
effect from time to time.
"Bank" has the meaning specified in the preamble to this
Trust Agreement.
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"Bankruptcy Event" means, with respect to any Person:
(a) the entry of a decree or order by a court having
jurisdiction in the premises adjudging such Person a bankrupt or
insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjudication or composition of or in
respect of such Person under any applicable federal or state
bankruptcy, insolvency, reorganization or other similar law, or
appointing a receiver, liquidator, assignee, trustee, sequestrator (or
other similar official) of such Person or of any substantial part of
its property or ordering the winding up or liquidation of its affairs,
and the continuance of any such decree or order unstayed and in effect
for a period of 60 consecutive days; or
(b) the institution by such Person of proceedings to be
adjudicated a bankrupt or insolvent, or the consent by it to the
institution of bankruptcy or insolvency proceedings against it, or the
filing by it of a petition or answer or consent seeking reorganization
or relief under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law, or the consent by it
to the filing of any such petition or to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or similar
official) of such Person or of any substantial part of its property or
the making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts generally
as they become due and its willingness to be adjudicated a bankrupt,
or the taking of corporate action by such Person in furtherance of any
such action.
"Board Resolution" means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Depositor to have been duly
adopted by the Depositor's Board of Directors, or such committee of the Board
of Directors or officers of the Depositor to which authority to act on behalf
of the Board of Directors has been delegated, and to be in full force and
effect on the date of such certification, and delivered to the Trustees.
5
"Business Day" means a day other than (a) a Saturday or
Sunday, (b) a day on which banking institutions in The City of New York are
authorized or required by law or executive order to remain closed or (c) a day
on which the Property Trustee's Corporate Trust Office or the Corporate Trust
Office of the Debenture Trustee is closed for business.
"Capital Treatment Event" has the meaning specified in
Section 1.01 of the Indenture.
"Certificate of Trust" has the meaning specified in the
recitals to this Trust Agreement.
"Clearing Agency" means an organization registered as a
"clearing agency" pursuant to Section 17A of the Securities Exchange Act of
1934. DTC shall be the initial Clearing Agency.
"Clearing Agency Participant" means a broker, dealer, bank,
other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities
deposited with the Clearing Agency.
"Closing Date" has the meaning specified in the Underwriting
Agreement.
"Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Securities Exchange Act of
1934, or, if at any time after the execution of this instrument such Commission
is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties at such time.
"Common Securities" means the 8.15% common securities of the
Trust, each representing a common, undivided beneficial interest in the assets
of the Trust, having a Liquidation Amount of $25.00 and having the rights
provided therefor in this Trust Agreement, including the right to receive
Distributions and a Liquidation Distribution as provided herein.
"Common Securities Certificate" means a certificate
evidencing ownership of Common Securities, substantially in the form attached
as Exhibit C.
6
"Corporate Trust Office" means the principal office of the
Property Trustee located in New York City which at the time of the execution of
this Trust Agreement is located at 5 Penn Plaza, 13th Floor, New York, New York
10001; Attention of Corporate Trust Administration.
"Debenture Event of Default" means an "Event of Default" as
defined in the Indenture.
"Debenture Trustee" means The Bank of New York, a New York
banking corporation and any successor trustee appointed and accepted pursuant
to the Indenture.
"Definitive Preferred Securities Certificate" means Preferred
Securities Certificates issued in certificated, fully registered form.
"Delaware Business Trust Act" means Chapter 38 of Title 12 of
the Delaware Code, 12 Del. C.ss. 3801, et seq., as it may be amended from time
to time.
"Delaware Trustee" means the corporation identified as the
"Delaware Trustee" in the preamble to this Trust Agreement solely in its
capacity as Delaware Trustee of the Trust continued hereunder and not in its
individual capacity, or its successor in interest in such capacity, or any
successor trustee appointed as herein provided.
"Depositor" has the meaning specified in the preamble to this
Trust Agreement.
"Distribution Date" has the meaning specified in Section
4.01(a).
"Distributions" means amounts payable in respect of the Trust
Securities as provided in Section 4.01.
"DTC" means The Depository Trust Company.
"Early Termination Event" has the meaning specified in
Section 9.02.
"Event of Default" means any one of the following events
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or
7
order of any court or any order, rule or regulation of any administrative or
governmental body):
(a) the occurrence of a Debenture Event of Default; or
(b) default by the Trust in the payment of any
Distribution when it becomes due and payable, and continuation of such
default for a period of 30 days; or
(c) default by the Trust in the payment of any
Redemption Price of any Trust Security when it becomes due and
payable; or
(d) default in the performance, or breach, in any
material respect, of any covenant or warranty of the Trustees in this
Trust Agreement (other than a covenant or warranty, a default in the
performance or breach of which is addressed in clause(b) or (c)
above), and continuation of such default or breach for a period of 60
days after there has been given, by registered or certified mail, to
the defaulting Trustee or Trustees by the Holders of at least 25% in
aggregate Liquidation Amount of the Outstanding Preferred Securities,
a written notice specifying such default or breach and requiring it to
be remedied and stating that such notice is a "Notice of Default"
hereunder; or
(e) the occurrence of a Bankruptcy Event with respect to
the Property Trustee and the failure by the Depositor to appoint a
successor Property Trustee within 60 days thereof.
"Exchange Act" means the Securities Exchange Act of 1934.
"Expiration Date" has the meaning specified in Section 9.01.
"Federal Reserve" means the Board of Governors of the Federal
Reserve System.
"Global Preferred Securities" means a beneficial interest in
the Preferred Securities, ownership and
8
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 5.04.
"Global Preferred Securities Certificate" means a certificate
evidencing ownership of Global Preferred Securities, substantially in the form
attached as Exhibit B.
"Guarantee Agreement" means the Guarantee Agreement executed
and delivered by the Depositor and The Bank of New York, as trustee,
contemporaneously with the execution and delivery of this Trust Agreement, for
the benefit of the holders of the Trust Securities, as amended from time to
time.
"Holder" or "Securityholder" means a Person in whose name a
Trust Security or Trust Securities is registered in the Securities Register;
any such Person shall be a beneficial owner of such Trust Securities within the
meaning of the Delaware Business Trust Act; provided, however, that in
determining whether the Holders of the requisite amount of Preferred Securities
have voted on any matter provided for in this Trust Agreement, then for the
purpose of any such determination, so long as Definitive Preferred Securities
Certificates have not been issued, the term Securityholders or Holders as used
herein shall refer to the Owners.
"Indenture" means the Indenture, dated as of January 28,
2002, between the Depositor and the Debenture Trustee, as trustee, (as amended
or supplemented from time to time) relating to the issuance of the Junior
Subordinated Debt Securities.
"Investment Company Event" has the meaning specified in
Section 1.01 of the Indenture.
"Junior Subordinated Debt Securities" means the aggregate
principal amount of the Depositor's Junior Subordinated Debt Securities due
January 28, 2032, issued pursuant to the Indenture.
"Junior Subordinated Debt Securities Redemption Date" means,
with respect to any Junior Subordinated Debt Securities to be redeemed under
the Indenture, the date fixed for redemption under the Indenture.
9
"Letter of Representations" means the agreement among the
Trust, the Property Trustee and DTC, as the initial Clearing Agency, dated as
of the Closing Date.
"Lien" means any lien, pledge, charge, encumbrance, mortgage,
deed of trust, adverse ownership interest, hypothecation, assignment, security
interest or preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever.
"Like Amount" means (a) with respect to a redemption of Trust
Securities, Trust Securities having a Liquidation Amount equal to that portion
of the principal amount of Junior Subordinated Debt Securities to be
contemporaneously redeemed in accordance with the Indenture allocated to the
Trust Securities based upon their relative Liquidation Amounts and the proceeds
of which will be used to pay the Redemption Price of such Trust Securities, and
(b) with respect to a distribution of Junior Subordinated Debt Securities to
Holders in connection with a dissolution or liquidation of the Trust, Junior
Subordinated Debt Securities having a principal amount equal to the Liquidation
Amount of the Trust Securities of the Holder to whom such Junior Subordinated
Debt Securities are distributed.
"Liquidation Amount" means the stated amount of $25.00 per
Trust Security.
"Liquidation Date" means the date on which Junior
Subordinated Debt Securities are to be distributed to Holders of Trust
Securities in connection with a termination and liquidation of the Trust
pursuant to Section 9.04(a).
"Liquidation Distribution" has the meaning specified in
Section 9.04(d).
"1940 Act" means the Investment Company Act of 1940.
"Officers' Certificate" means a certificate signed by the
Chairman and Chief Executive Officer, President or a Vice President, and by the
Treasurer, an Associate Treasurer, an Assistant Treasurer, the Controller, the
Secretary or an Assistant Secretary, of the Depositor, and delivered to the
appropriate Trustee. One of the officers signing an Officers' Certificate given
10
pursuant to Section 8.16 shall be the principal executive, financial or
accounting officer of the Depositor. Any Officers' Certificate delivered with
respect to compliance with a condition or covenant provided for in this Trust
Agreement shall include:
(a) a statement that each officer signing the Officers'
Certificate has read the covenant or condition and the definitions
relating thereto;
(b) a brief statement of the nature and scope of the
examination or investigation undertaken by each officer in rendering
the Officers' Certificate;
(c) a statement that each 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 each
such officer, such condition or covenant has been complied with.
"Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Trust or the Depositor, but not an employee of any
thereof. "Original Trust Agreement" has the meaning specified in the recitals
to this Trust Agreement.
"Outstanding," with respect to Preferred Securities, means,
as of the date of determination, all Preferred Securities theretofore executed
and delivered under this Trust Agreement, except:
(a) Preferred Securities theretofore canceled by the
Property Trustee or delivered to the Property Trustee for
cancellation;
(b) Preferred Securities for whose payment or redemption
money in the necessary amount has been theretofore deposited with the
Property Trustee or any Paying Agent for the benefit of the Holders of
such Preferred Securities; provided that if such Preferred Securities
are to
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be redeemed, notice of such redemption has been duly given pursuant to
this Trust Agreement; and
(c) Preferred Securities which have been paid or in
exchange for or in lieu of which other Preferred Securities have been
executed and delivered pursuant to Sections 5.02, 5.04, 5.05, 5.11 and
5.13; provided, however, that in determining whether the Holders of
the requisite Liquidation Amount of the Outstanding Preferred
Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Preferred Securities owned by the
Depositor, any Trustee or any Affiliate of the Depositor or any
Trustee shall be disregarded and deemed not to be Outstanding, except
that (a) in determining whether any Trustee shall be protected in
relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Preferred Securities that a
Responsible Officer of such Trustee actually knows to be so owned
shall be so disregarded and (b) the foregoing shall not apply at any
time when all of the outstanding Preferred Securities are owned by the
Depositor, one or more of the Trustees and/or any such Affiliate.
Preferred Securities so owned which have been pledged in good faith
may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Administrative Trustees the pledgee's right so to
act with respect to such Preferred Securities and that the pledgee is
not the Depositor or any Affiliate of the Depositor.
"Owner" means each Person who is the beneficial owner of a
Global Preferred Security as reflected in the records of the Clearing Agency
or, if a Clearing Agency Participant is not the Owner, then as reflected in the
records of a Person maintaining an account with such Clearing Agency (directly
or indirectly), in accordance with the rules of such Clearing Agency.
"Paying Agent" means any paying agent or co-paying agent
appointed pursuant to Section 5.10 and shall initially be the Bank.
"Payment Account" means a segregated noninterest-bearing
corporate trust account maintained by the Property
12
Trustee with the Bank in its trust department for the benefit of the
Securityholders in which all amounts paid in respect of the Junior Subordinated
Debt Securities will be held and from which the Property Trustee shall make
payments to the Securityholders in accordance with Sections 4.01 and 4.02.
"Person" means any individual, corporation, partnership,
joint venture, trust, limited liability company or corporation, unincorporated
organization or government or any agency or political subdivision thereof.
"Preferred Securities" means each of the initial trust
preferred securities of the Trust to be issued on the date hereof each
representing a preferred, undivided beneficial interest in the assets of the
Trust, having a Liquidation Amount of $25.00 per Preferred Security and having
the rights provided therefor in this Trust Agreement, including the right to
receive Distributions and a Liquidation Distribution as provided herein.
"Preferred Securities Certificate" means a certificate
evidencing ownership of Preferred Securities, substantially in the form
attached as Exhibit B.
"Preferred Securityholder" means a Person in whose name a
Preferred Security or Preferred Securities is registered in the Securities
Register; and any such Person shall be deemed to be a beneficial owner within
the meaning of the Delaware Business Trust Act.
"Property Trustee" means the commercial bank or trust company
identified as the "Property Trustee" in the preamble to this Trust Agreement
solely in its capacity as Property Trustee of the Trust continued hereunder and
not in its individual capacity, or its successor in interest in such capacity,
or any successor property trustee appointed as herein provided.
"Redemption Date" means, with respect to any Trust Security
to be redeemed, the date fixed for such redemption by or pursuant to this Trust
Agreement, provided, however, that each Junior Subordinated Debt Securities
Redemption Date and the Stated Maturity of the Junior Subordinated Debt
Securities shall be a Redemption Date for a Like Amount of Trust Securities.
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"Redemption Price" means, with respect to any Trust Security,
the Liquidation Amount of such Trust Security, plus accumulated and unpaid
Distributions to the Redemption Date, plus the related amount of the premium,
if any, paid by the Depositor upon the concurrent redemption of a Like Amount
of Junior Subordinated Debt Securities, allocated on a pro rata basis (based on
Liquidation Amounts) among the Trust Securities.
"Regulatory Authorities" means the Federal Reserve or any
other state or federal regulatory agency having jurisdiction over the
Depositor.
"Relevant Trustee" has the meaning specified in Section 8.10.
"Responsible Officer" means, when used with respect to the
Property Trustee or the Delaware Trustee, any officer assigned to the Corporate
Trust Office, including any vice president, assistant vice president, assistant
treasurer or any other officer to the Property Trustee customarily performing
functions similar to those performed by any of the above designated officers
and having direct responsibility for the administration for this Trust
Agreement, and also, with respect to a particular matter, any other officer, to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject and who shall have direct
responsibility for the administration of this Agreement.
"Securities Act" means the Securities Act of 1933.
"Secretary of State" has the meaning specified in the first
recital of this Trust Agreement.
"Securities Register" and "Securities Registrar" have the
respective meanings specified in Section 5.05.
"Securityholder" or "Holder" means a Person in whose name a
Trust Security or Trust Securities is registered in the Securities Register;
any such Person shall be a beneficial owner within the meaning of the Delaware
Business Trust Act; provided, however, that in determining whether the Holders
of the requisite amount of Preferred Securities have voted on any matter
provided for in this Trust Agreement, then for the purpose of any such
14
determination, so long as Definitive Preferred Securities Certificates have not
been issued, the term Securityholders or Holders as used herein shall refer to
the Owners.
"Special Event" means a Tax Event, a Capital Treatment Event
or an Investment Company Event.
"Stated Maturity" has the meaning specified in Section 1.01
of the Indenture.
"Tax Event" has the meaning specified in Section 1.01 of the
Indenture.
"Transfer Agent" means the Bank as set forth in the preamble
to this Trust Agreement.
"Trust" means BancorpSouth Capital Trust I
"Trust Agreement" means this Second Amended and Restated
Trust Agreement, as the same may be modified, amended or supplemented in
accordance with the applicable provisions hereof, including all exhibits
hereto, including, for all purposes of this Second Amended and Restated Trust
Agreement, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this Second Amended and Restated Trust Agreement and any
modification, amendment or supplement of either, respectively.
"Trust Indenture Act" has the meaning specified in Section
1.01 of the Indenture.
"Trust Property" means (a) the Junior Subordinated Debt
Securities, (b) any cash or deposit in, or owing to, the Payment Account and
(c) all proceeds and rights in respect of the foregoing.
"Trust Securities Certificate" means any one of the Common
Securities Certificates or the Preferred Securities Certificates.
"Trust Security" means any one of the Common Securities or
the Preferred Securities.
"Trustees" means, collectively, the Property Trustee, the
Delaware Trustee and the Administrative Trustees.
15
"Underwriters" means, Salomon Smith Barney Inc. and the
several underwriters named in Schedule II to the Underwriting Agreement.
"Underwriting Agreement" means the Underwriting Agreement,
dated as of January 18, 2002 among the Trust, the Depositor and the
Underwriters.
ARTICLE II
Continuation of the Trust
Section 2.01. Name. The Trust continued hereby shall be
known as "BancorpSouth Capital Trust I," as such name may be modified from time
to time by the Administrative Trustees following written notice to the Holders
and the other Trustees, in which name the Trustees may conduct the business of
the Trust, make and execute contracts and other instruments on behalf of the
Trust and sue and be sued.
Section 2.02. Office of the Delaware Trustee; Principal
Place of Business. The address of the Delaware Trustee in the State of Delaware
is The Bank of New York (Delaware), White Clay Center, Route 273, Newark,
Delaware 19711, Attention: Corporate Trust Administration, or such other
address in the State of Delaware as the Delaware Trustee may designate by
written notice to the Securityholders and the Depositor. The principal
executive office of the Trust is in care of BancorpSouth, Inc., One Mississippi
Plaza, Tupelo, MS 38801; Attention: Cathy S. Freeman, Secretary.
Section 2.03. Organizational Expenses. The Depositor, as
borrower on the Junior Subordinated Debt Securities, shall pay all expenses of
the Trust as they arise or shall, upon request of any Trustee, promptly
reimburse such Trustee for any such expenses paid by such Trustee. The
Depositor shall make no claim upon the Trust Property for the payment of such
expenses.
Section 2.04. Issuance of the Preferred Securities. The
Preferred Securities to be issued will be limited to $125,000,000 aggregate
Liquidation Amount outstanding at any one time.
The Depositor, on its own behalf and on behalf of the Trust,
and pursuant to the Original Trust Agreement,
16
and the Underwriters executed and delivered the Underwriting Agreement.
Contemporaneously with the execution and delivery of this Trust Agreement, an
Administrative Trustee, on behalf of the Trust, shall execute or cause to be
executed in accordance with Section 5.02 and delivered to the Underwriters, a
Global Preferred Securities Certificate in book-entry form, registered in the
name of the nominee of the initial Clearing Agency, in an aggregate amount of
Preferred Securities having an aggregate Liquidation Amount of $125,000,000
against receipt of the aggregate purchase price of such Preferred Securities
equal to 100% of the Liquidation Amount multiplied by the number of Preferred
Securities being purchased which amount the Administrative Trustee shall
promptly deliver to the Property Trustee.
Section 2.05. Issuance of the Common Securities;
Subscription and Purchase of Junior Subordinated Debt Securities.
Contemporaneously with the execution and delivery of this Trust Agreement, an
Administrative Trustee, on behalf of the Trust, shall execute or cause to be
executed in accordance with Section 5.02(a) and delivered to the Depositor
Common Securities Certificates, registered in the name of the Depositor, in an
aggregate Liquidation Amount of three million eight hundred sixty-five thousand
nine hundred eighty dollars ($3,866,000) Common Securities having a Liquidation
Amount of $25.00 per security against payment by the Depositor of $3,866,000
which amount the Administrative Trustees shall promptly deliver to the Property
Trustee. Contemporaneously therewith, an Administrative Trustee, on behalf of
the Trust, shall subscribe to and purchase from the Depositor Junior
Subordinated Debt Securities, registered in the name of the Trust and having an
aggregate principal amount equal to one hundred twenty-eight million eight
hundred sixty-five thousand nine hundred eighty dollars ($128,866,000), and, in
satisfaction of the purchase price for such Junior Subordinated Debt
Securities, the Property Trustee, on behalf of the Trust, shall deliver to the
Depositor the sum of $128,866,000.
Section 2.06. Trust Agreement. The exclusive purposes and
functions of the Trust are to (a) issue and sell Trust Securities, (b) use the
proceeds from the sale of Trust Securities to acquire the Junior Subordinated
Debt Securities, (c) receive payments to be made with respect to the Junior
Subordinated Debt Securities, and (d) engage in
17
only those other activities necessary, advisable or incidental thereto such as
registering the transfer of the Preferred Securities and complying with the
terms of the Registration Agreement. The Depositor hereby appoints the Trustees
as trustees of the Trust, to have all the rights, powers and duties to the
extent set forth herein, and the Trustees hereby accept such appointment. The
Property Trustee hereby declares that it will hold the Trust Property in trust
upon and subject to the conditions set forth herein for the benefit of the
Trust and the Securityholders. The Administrative Trustees shall have all
rights, powers and duties set forth herein and in accordance with applicable
law with respect to accomplishing the purposes of the Trust. The Delaware
Trustee shall not be entitled to exercise any powers, nor shall the Delaware
Trustee have any of the duties and responsibilities, of the Property Trustee or
the Administrative Trustees set forth herein. The Delaware Trustee shall be one
of the Trustees of the Trust for the sole and limited purpose of fulfilling the
requirements of Section 3807 of the Delaware Business Trust Act.
Section 2.07. Authorization to Enter into Certain
Transactions. (a) The Trustees shall conduct the affairs of the Trust in
accordance with the terms of this Trust Agreement. Subject to the limitations
set forth in paragraph(b) of this Section and in accordance with the following
provisions(i) and (ii), the Trustees shall have the authority to enter into all
transactions and agreements determined by the Trustees to be appropriate in
exercising the authority, express or implied, otherwise granted to the Trustees
under this Trust Agreement, and to perform all acts in furtherance thereof,
including without limitation, the following:
(i) As among the Trustees, each Administrative Trustee
shall have the power and authority to act on behalf of the Trust with
respect to the following matters:
(A) the issuance and sale of the Trust
Securities;
(B) to cause the Trust to enter into, and to
execute, deliver and perform on behalf of the Trust, the
Underwriting Agreement, the Letter of Representations and
such other agreements as may
18
be necessary or desirable in connection with the purposes and
function of the Trust;
(C) assisting in the registration of the
Preferred Securities under the Securities Act and under state
securities or blue sky laws, and the qualification of this
Trust Agreement as a trust indenture under the Trust
Indenture Act;
(D) assisting in the listing, if any, of the
Preferred Securities upon such securities exchange or
exchanges as shall be determined by the Depositor and the
registration of the Preferred Securities under the Exchange
Act, and the preparation and filing of all periodic and other
reports and other documents pursuant to the foregoing;
(E) the sending of notices (other than notices
of default) and other information regarding the Trust
Securities and the Junior Subordinated Debt Securities to the
Securityholders in accordance with this Trust Agreement;
(F) the appointment of a Paying Agent, Transfer
Agent and Securities Registrar in accordance with this Trust
Agreement;
(G) registering transfer of the Trust
Securities in accordance with this Trust Agreement;
(H) to the extent provided in this Trust
Agreement, the winding up of the affairs and liquidation of
the Trust and the preparation of the certificate of
cancellation with the Secretary of State of the State of
Delaware;
(I) unless otherwise determined by the
Depositor, the Property Trustee or the Administrative
Trustees or as otherwise required by the Delaware Business
Trust Act or the Trust Indenture Act, to execute on behalf of
the Trust (either acting alone or together with any or all of
the Administrative Trustees) any documents that the
Administrative Trustees have the power to execute pursuant to
this Trust Agreement; and
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(J) the taking of any action incidental to the
foregoing as the Trustees may from time to time determine is
necessary or advisable to give effect to the terms of this
Trust Agreement for the benefit of the Securityholders
(without consideration of the effect of any such action on
any particular Securityholders).
(ii) As among the Trustees, the Property Trustee shall
have the power, duty and authority to act on behalf of the Trust with
respect to the following matters:
(A) the establishment of the Payment Account;
(B) the receipt of the Junior Subordinated Debt
Securities;
(C) the collection of interest, principal and
any other payments made in respect of the Junior Subordinated
Debt Securities in the Payment Account;
(D) the distribution of amounts owed to the
Securityholders in respect of the Trust Securities;
(E) the exercise of all the rights, powers and
privileges of a holder of the Junior Subordinated Debt
Securities;
(F) the sending of notices of default and other
information regarding the Trust Securities and the Junior
Subordinated Debt Securities to the Securityholders in
accordance with this Trust Agreement;
(G) the distribution of the Trust Property in
accordance with the terms of this Trust Agreement;
(H) to the extent provided in this Trust
Agreement, the winding up of the affairs of and liquidation
of the Trust and the preparation, execution and filing of the
certificate of cancellation with the Secretary of State of
the State of Delaware;
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(I) after an Event of Default, the taking of
any action incidental to the foregoing as is necessary or
advisable to give effect to the terms of this Trust Agreement
and protect and conserve the Trust Property for the benefit
of the Securityholders (without consideration of the effect
of any such action on any particular Securityholder); and
(J) except as otherwise provided in this
Section 2.07(a)(ii), the Property Trustee shall have none of
the duties, liabilities, powers or the authority of the
Administrative Trustees set forth in Section 2.07(a)(i).
(b) So long as this Trust Agreement remains in effect,
the Trust (or the Trustees acting on behalf of the Trust) shall not undertake
any business, activities or transactions except as expressly provided herein or
contemplated hereby. In particular, the Trustees shall not (i) acquire any
investments or engage in any activities not authorized by this Trust Agreement,
(ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise
dispose of any of the Trust Property or interests therein, including to
Securityholders, except as expressly provided herein, (iii) intentionally take
any action that would cause the Trust to fail or cease to qualify as a "grantor
trust" for United States federal income tax purposes, (iv) incur any
indebtedness for borrowed money or issue any other debt, (v) take or consent to
any action that would result in the placement of a Lien on any of the Trust
Property, (vi) invest any proceeds received by the Trust from holding the
Junior Subordinated Debt Securities, but shall distribute all such proceeds to
Holders pursuant to the terms of this Trust Agreement and of the Trust
Securities, (vii) acquire any assets other than the Trust Property, (viii)
possess any power or otherwise act in such a way as to vary the Trust Property,
(ix) possess any power or otherwise act in such a way as to vary the terms of
the Trust Securities in any way whatsoever (except to the extent expressly
authorized in this Trust Agreement or by the terms of the Trust Securities),
(x) issue any securities or other evidences of beneficial ownership of, or
beneficial interest in, the Trust other than the Trust Securities, or (xi)
other than as provided in this Trust Agreement or by the terms of the Trust
Securities, (A) direct the time, method and place of exercising any trust
21
or power conferred upon the Debenture Trustee with respect to the Junior
Subordinated Debt Securities, (B) waive any past default that is waivable under
the Indenture, (C) exercise any right to rescind or annul any declaration that
the principal of all Junior Subordinated Debt Securities shall be due and
payable, or (D) consent to any amendment, modification, or termination of the
Indenture or the Junior Subordinated Debt Securities where such consent shall
be required unless the Trust shall have received an Opinion of Counsel of a law
firm experienced in such matters to the effect that such amendment,
modification or termination will not cause more than an insubstantial risk that
the Trust will be deemed an Investment Company required to be registered under
the 1940 Act, the Trust will not be classified as a grantor trust for United
States federal income tax purposes or the Junior Subordinated Debt Securities
will not be classified as indebtedness for such purposes. The Administrative
Trustees shall defend all claims and demands of all Persons at any time
claiming any Lien on any of the Trust Property adverse to the interest of the
Trust or the Securityholders in their capacity as Securityholders.
(c) In connection with the issue and sale of the Trust
Securities, the Depositor shall have the right and responsibility to assist the
Trust with respect to, or effect on behalf of the Trust, the following (and any
actions taken by the Depositor in furtherance of the following prior to the
date of this Trust Agreement are hereby ratified and confirmed in all
respects):
(i) the preparation and filing by the Trust with the
Commission and the execution on behalf of the Trust of a registration
statement on the appropriate form in relation to the Trust Securities,
including any amendments thereto;
(ii) the determination of the states in which to take
appropriate action to qualify or register for sale all or part of the
Trust Securities and the determination of any and all such acts, other
than actions which must be taken by or on behalf of the Trust, and the
advice to the Trustees of actions they must take on behalf of the
Trust, and the preparation for execution and filing of any documents
to be executed and filed by the Trust or on behalf of the Trust, as
the Depositor deems necessary or advisable in
22
order to comply with the applicable laws of any such states;
(iii) the preparation for filing by the Trust with the
Commission and the execution on behalf of the Trust of a registration
statement on Form 8-A relating to the registration of the Trust
Securities under Section 12(b) or 12(g) of the Exchange Act, including
any amendments thereto;
(iv) the negotiation of the terms of, and the execution
and delivery of, the Underwriting Agreement providing for the sale of
the Trust Securities; and
(v) the taking of any other actions necessary or
desirable to carry out any of the foregoing activities.
(d) Notwithstanding anything herein to the contrary, the
Administrative Trustees are authorized and directed to conduct the affairs of
the Trust and to operate the Trust so that the Trust will not (i) be deemed to
be an "investment company" required to be registered under the 1940 Act or (ii)
fail to be classified as a grantor trust for United States federal income tax
purposes and so that the Junior Subordinated Debt Securities will be treated as
indebtedness of the Depositor for United States federal income tax purposes. In
this connection, the Depositor and the Administrative Trustees are authorized
to take any action, not inconsistent with applicable law, the Certificate of
Trust or this Trust Agreement, that each of the Depositor and the
Administrative Trustees determines in their discretion to be necessary or
desirable for such purposes, as long as such action does not adversely affect
in any material respect the interests of the holders of the Trust Securities.
Section 2.08. Assets of Trust. The assets of the Trust
shall consist solely of the Trust Property.
Section 2.09. Title to Trust Property. Legal title to all
Trust Property shall be vested at all times in the Property Trustee (in its
capacity as such) and shall be held and administered by the Property Trustee
for the benefit of the Trust and the Securityholders in accordance with this
Trust Agreement.
23
ARTICLE III
Payment Account
Section 3.01. Payment Account. (a) On or prior to the
Closing Date the Property Trustee shall establish the Payment Account. The
Property Trustee and any agent of the Property Trustee shall have exclusive
control and sole right of withdrawal with respect to the Payment Account for
the purpose of making deposits in and withdrawals from the Payment Account in
accordance with this Trust Agreement. All moneys and other property deposited
or held from time to time in the Payment Account shall be held by the Property
Trustee in the Payment Account for the exclusive benefit of the Securityholders
and for distribution as herein provided, including (and subject to) any
priority of payments provided for herein or by applicable law.
(b) The Property Trustee shall deposit in the Payment
Account, promptly upon receipt, all payments of principal of or interest on,
and any other payments or proceeds with respect to, the Junior Subordinated
Debt Securities. Amounts held in the Payment Account shall not be invested by
the Property Trustee pending distribution thereof.
ARTICLE IV
Distributions; Redemption
Section 4.01. Distributions. (a) Distributions on the
Trust Securities shall be cumulative and will accumulate whether or not there
are funds of the Trust available for the payment of Distributions.
Distributions shall accrue from January 28, 2002, and, except in the event (and
to the extent) that the Depositor exercises its right to defer the payment of
interest on the Junior Subordinated Debt Securities pursuant to the Indenture,
shall be payable quarterly in arrears on March 31, June 30, September 30 and
December 30 of each year, commencing on March 31, 2002. If any date on which a
Distribution is otherwise payable is not a Business Day, then the payment of
such Distribution shall be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay),
in each case with the same force and effect as if made on such date (each date
on which distributions are payable in accordance with this Section 4.01(a), a
"Distribution Date"). Accrued
24
Distributions that are not paid on the applicable Distribution Date will bear
interest on the amount thereof (to the extent permitted by law) at the rate per
annum of 8.15% thereof, compounded quarterly from the relevant Distribution
Date.
(b) The Trust Securities represent undivided beneficial
ownership interests in the Trust Property, and, assuming payments of interest
on the Junior Subordinated Debt Securities are made when due, Distributions on
the Trust Securities shall be payable at a rate of 8.15% per annum of the
Liquidation Amount of the Trust Securities. The amount of Distributions payable
for any full period shall be computed on the basis of a 360-day year of twelve
30-day months. The amount of Distributions for any partial period shall be
computed on the basis of the number of days elapsed in a 360-day year of twelve
30-day months.
(c) So long as no Debenture Event of Default has
occurred and is continuing, the Depositor has the right under the Indenture to
defer the payment of interest on the Junior Subordinated Debt Securities at any
time and from time to time for a period not exceeding 10 consecutive
semi-annual periods (an "Extension Period"), provided that no Extension Period
may extend beyond the Stated Maturity of the Junior Subordinated Debt
Securities. As a consequence of any such deferral, semi-annual Distributions on
the Trust Securities by the Trust will also be deferred from the relevant
payment date for such Distributions, but not exceeding the interest rate then
accruing on the Junior Subordinated Debt Securities.
(d) Distributions on the Trust Securities shall be made
by the Property Trustee from the Payment Account and shall be payable on each
Distribution Date only to the extent that the Trust has funds then on-hand and
available in the Payment Account for the payment of such Distributions.
(e) Distributions on the Trust Securities with respect
to a Distribution Date shall be payable to the Holders of record as they appear
on the Securities Register for the Trust Securities on each March 15, June 15,
September 15 and December 15.
Section 4.02. Redemption. (a) On each Junior Subordinated
Debt Securities Redemption Date and on the Stated Maturity of the Junior
Subordinated Debt Securities,
25
the Trust will be required to redeem a Like Amount of Trust Securities at the
applicable Redemption Price.
(b) Notice of redemption shall be given by the Property
Trustee by first-class mail, postage prepaid, mailed not less than 30 nor more
than 60 days prior to the Redemption Date to each Holder of Trust Securities to
be redeemed, at such Holder's address appearing in the Security Register. All
notices of redemption shall identify the Trust Securities to be redeemed
(including "CUSIP" numbers) and shall state: (i) the Redemption Date;
(ii) the applicable Redemption Price;
(iii) if less than all the Outstanding Trust Securities
are to be redeemed, the identification and the total Liquidation
Amount of the particular Trust Securities to be redeemed; and
(iv) that on the Redemption Date the Redemption Price
will become due and payable upon each such Trust Security to be
redeemed and that Distributions thereon will cease to accrue on and
after said date.
The Trust in issuing the Trust Securities may use "CUSIP,"
and/or "private placement" numbers (if then generally in use), and, if so, the
Property Trustee shall indicate the "CUSIP" or "private placement" numbers of
the Trust Securities in notices or redemption and related materials as a
convenience to Securityholders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Trust Securities or as contained in any notice of redemption and related
material. The Depositor shall promptly notify the Property Trustee of any
change in such numbers.
(c) The Trust Securities redeemed on each Redemption
Date shall be redeemed at the applicable Redemption Price with the proceeds
from the contemporaneous redemption of Junior Subordinated Debt Securities.
Redemptions of the Trust Securities shall be made and the applicable Redemption
Price shall be payable on each Redemption Date only to the extent that the
Trust has funds
26
then on hand and available in the Payment Account for the payment of such
Redemption Price.
(d) If the Property Trustee gives a notice of redemption
in respect of any Trust Securities, then, by 12:00 noon, New York City time, on
the Redemption Date, subject to Section 4.02(c), the Property Trustee will, so
long as the Preferred Securities are in book-entry-only form, irrevocably
deposit with the Clearing Agency for the Preferred Securities funds sufficient
to pay the applicable Redemption Price and will give such Clearing Agency
irrevocable instructions and authority to pay the Redemption Price to the
holders thereof. With respect to Preferred Securities held in certificated
form, the Property Trustee, subject to Section 4.02(c), will irrevocably
deposit with the Paying Agent funds sufficient to pay the applicable Redemption
Price and will give the Paying Agent irrevocable instructions and authority to
pay the Redemption Price to the Holders thereof upon surrender of their
Preferred Securities Certificates. Notwithstanding the foregoing, Distributions
payable on or prior to the Redemption Date for any Trust Securities called for
redemption shall be payable to the Holders of such Trust Securities as they
appear on the Securities Register on the relevant record dates for the related
Distribution Dates. If notice of redemption shall have been given and funds
deposited as required, then upon the date of such deposit, all rights of
Securityholders holding Trust Securities so called for redemption will cease,
except the right of such Securityholders to receive the applicable Redemption
Price and any Distribution payable on or prior to the Redemption Date, but
without interest, and such Preferred Securities will cease to be outstanding.
In the event that any date on which any applicable Redemption Price is payable
is not a Business Day, then payment of the applicable Redemption Price payable
on such date will be made on the next succeeding day that is a Business Day
(and without any interest or other payment in respect of any such delay),
except that, if such Business Day falls in the next calendar year, such payment
will be made on the immediately preceding Business Day, in each case, with the
same force and effect as if made on such date. In the event that payment of the
applicable Redemption Price in respect of any Trust Securities called for
redemption is improperly withheld or refused and not paid either by the Trust
or by the Depositor pursuant to the Guarantee Agreement, Distributions on such
Trust Securities will continue to
27
accrue, at the then applicable rate, from the Redemption Date originally
established by the Trust for such Trust Securities to the date such applicable
Redemption Price is actually paid, in which case the actual payment date will
be the date fixed for redemption for purposes of calculating the applicable
Redemption Price.
(e) Payment of the applicable Redemption Price on, and
any distributions of Junior Subordinated Debt Securities to Holders of, the
Trust Securities shall be made to the Holders thereof as they appear on the
Securities Register on the relevant record date, and, with respect to Trust
Securities held in certificated form, upon surrender of such certificated Trust
Securities to the Paying Agent.
(f) Subject to Section 4.03(a), if less than all the
Outstanding Trust Securities are to be redeemed on a Redemption Date, then the
aggregate Liquidation Amount of Trust Securities to be redeemed shall be
allocated on a pro rata basis (based on Liquidation Amounts) among the Trust
Securities. The particular Trust Securities to be redeemed shall be selected on
a pro rata basis (based upon Liquidation Amounts) not more than 60 days prior
to the Redemption Date by the Property Trustee from the Outstanding Trust
Securities not previously called for redemption, by such method as the Property
Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to $25.00 or an integral multiple of $25.00
in excess thereof) of the Liquidation Amount of Trust Securities. The Property
Trustee shall promptly notify the Security Registrar in writing of the Trust
Securities selected for redemption and, in the case of any Trust Securities
selected for partial redemption, the Liquidation Amount thereof to be redeemed.
For all purposes of this Trust Agreement, unless the context otherwise
requires, all provisions relating to the redemption of Trust Securities shall
relate in the case of any Trust Securities redeemed or to be redeemed only in
part, to the portion of the Liquidation Amount of Trust Securities that has
been or is to be redeemed.
Section 4.03. Subordination of Common Securities. (a)
Payment of Distributions on, and the Redemption Price of the Trust Securities,
as applicable, shall be made subject to Section 4.02(f), pro rata to the
holders of the Trust Securities based on the Liquidation Amount of the Trust
Securities; provided, however, that if
28
on any Distribution Date or Redemption Date any Debenture Event of Default (or
other event that, with notice or the passage of time or both, would become such
an Event of Default) or other Event of Default shall have occurred and be
continuing, no payment of any Distribution on, or Redemption Price of, any of
the Common Securities, and no other payment on account of the redemption,
liquidation or other acquisition of such Common Securities, shall be made
unless payment in full in cash of all accumulated and unpaid Distributions on
all outstanding Preferred Securities for all Distribution Dates occurring on or
prior thereto, or, in the case of payment of the applicable Redemption Price
the full amount of such Redemption Price on all outstanding Preferred
Securities, shall have been made or provided for, and all funds immediately
available to the Property Trustee shall first be applied to the payment in full
in cash of all Distributions (including Additional Distributions, if
applicable) on, or the Redemption Price of, Preferred Securities then due and
payable.
(b) In the case of the occurrence of any Event of
Default resulting from any Debenture Event of Default, the Holder of Common
Securities will be deemed to have waived any right to act with respect to any
such Event of Default under this Trust Agreement until the effect of all such
Events of Default with respect to the Preferred Securities have been cured,
waived or otherwise eliminated. Until all such Events of Default under this
Trust Agreement with respect to the Preferred Securities have been so cured,
waived or otherwise eliminated, the Property Trustee shall act solely on behalf
of the Holders of the Preferred Securities and not on behalf of the Holder of
the Common Securities, and only the Holders of the Preferred Securities will
have the right to direct the Property Trustee to act on their behalf.
Section 4.04. Payment Procedures. In the event Definitive
Preferred Securities Certificates are issued, payments of Distributions in
respect of the Preferred Securities shall be made by check mailed to the
address of the Person entitled thereto at such address as shall appear on the
Securities Register. If the Preferred Securities are held by a Clearing Agency,
such Distributions shall be made to the Clearing Agency in immediately
available funds, which shall credit the relevant Persons' accounts at such
Clearing Agency on the applicable Distribution Dates.
29
Payments in respect of the Common Securities shall be made in such manner as
shall be mutually agreed between the Property Trustee and the Common
Securityholder.
Section 4.05. Tax Returns and Reports. The Administrative
Trustees shall prepare (or cause to be prepared), at the Depositor's expense,
and file all United States federal, state and local tax and information returns
and reports required to be filed by or in respect of the Trust. In this regard,
the Administrative Trustees shall (a) prepare and file (or cause to be prepared
and filed) the appropriate Internal Revenue Service form required to be filed
in respect of the Trust in each taxable year of the Trust and (b) prepare and
furnish (or cause to be prepared and furnished) to each Securityholder the
appropriate Internal Revenue Service form required to be provided pursuant to
the form referenced in clause(a) hereof. The Administrative Trustees shall
provide the Depositor and the Property Trustee with a copy of all such returns
and reports promptly after such filing or furnishing. The Administrative
Trustees shall comply with United States federal withholding and backup
withholding tax laws and information reporting requirements with respect to any
payments to Securityholders.
Section 4.06. Payment of Taxes; Duties, etc. of the
Trust. Pursuant to Section 10.06 of the Indenture, the Depositor, as borrower
on the Junior Subordinated Debt Securities, has agreed to, and it shall,
promptly pay any taxes, duties or governmental charges of whatever nature
(other than United States withholding taxes) imposed on the Trust by the United
States or any other taxing authority.
Section 4.07. Payments Under Indenture. Any amount
payable hereunder to any Holder shall be reduced by the amount of any
corresponding payment such Holder (and any Owner with respect thereto) has
directly received pursuant to Section 5.08 of the Indenture.
ARTICLE V
Trust Securities Certificates
Section 5.01. Initial Ownership. Upon the formation of
the Trust and until the issuance of the Trust Securities, and at any time
during which no Trust Securities are outstanding, the Depositor shall be the
sole beneficial owner of the Trust.
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Section 5.02. Trust Securities Certificates. (a) The
Preferred Securities Certificates shall be issued only in minimum denominations
of $25.00 Liquidation Amount (which is equivalent to One Preferred Security)
and integral multiples of $25.00 in excess thereof, and the Common Securities
Certificates shall be issued in denominations of $25.00 Liquidation Amount and
integral multiples thereof. The Trust Securities Certificates shall be executed
on behalf of the Trust by the manual or facsimile signature of at least one
Administrative Trustee. Trust Securities Certificates bearing the manual or
facsimile signatures of individuals who were, at the time when such signatures
shall have been affixed, authorized to sign on behalf of the Trust, shall be
validly issued and entitled to the benefits of this Trust Agreement,
notwithstanding that such individuals or any of them shall have ceased to be so
authorized prior to the delivery of such Trust Securities Certificates or did
not hold such offices at the date of delivery of such Trust Securities
Certificates. A transferee of a Trust Securities Certificate shall become a
Securityholder, and shall be entitled to the rights and subject to the
obligations of a Securityholder hereunder, upon due registration of such Trust
Securities Certificate in such transferee's name pursuant to Sections 5.04,
5.05 and 5.06.
(b) Upon their original issuance, the Preferred
Securities shall be issued in the form of a Global Preferred Securities
Certificate registered in the name of Cede & Co. ("Cede & Co.") as DTC's
nominee and deposited with or on behalf of DTC for credit by DTC to the
respective accounts of the Owners thereof (or such other accounts as they may
direct). Except as set forth herein, record ownership of the Global Preferred
Security may be transferred, in whole or in part, only to another nominee of
DTC or to a successor of DTC or its nominee.
(c) A single Common Securities Certificate representing
the Common Securities shall be issued to the Depositor in the form of a
definitive Common Securities Certificate.
Section 5.03. Execution and Delivery of Trust Securities
Certificates. At the Closing Date, the Administrative Trustees shall cause
Trust Securities Certificates, in an aggregate Liquidation Amount as provided
in Sections 2.04 and 2.05, to be executed on behalf of the Trust and delivered
to the Property Trustee
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and upon such delivery the Property Trustee shall countersign such Trust
Securities Certificates and deliver such Trust Securities Certificates upon the
written order of the Depositor, signed by its chairman of the board and
president, any executive vice president or any vice president, treasurer or
assistant treasurer or controller without further corporate action by the
Depositor, in authorized denominations.
Section 5.04. Global Preferred Security. (a) The Global
Preferred Security issued under this Trust Agreement shall be registered in the
name of Cede & Co. as nominee of the Clearing Agency and delivered to its
custodian therefor, and such Global Preferred Security shall constitute a
single Preferred Security for all purposes of this Trust Agreement.
(b) Notwithstanding any other provision in this Trust
Agreement, the Global Preferred Security may not be exchanged in whole or in
part for Preferred Securities registered, and no transfer of the Global
Preferred Security in whole or in part may be registered, in the name of any
Person other than the Clearing Agency for such Global Preferred Security, Cede
& Co., or other nominee thereof unless (i) such Clearing Agency advises the
Property Trustee in writing that such Clearing Agency is no longer willing or
able to properly discharge its responsibilities as Clearing Agency with respect
to such Global Preferred Security, and the Depositor is unable to locate a
qualified successor, (ii) the Trust at its option advises DTC in writing that
it elects to terminate the book-entry system through the Clearing Agency, or
(iii) there shall have occurred and be continuing a Debenture Event of Default.
In addition, beneficial interests in a Global Preferred Security may be
exchanged by or on behalf of DTC for certificated Preferred Securities upon
request by DTC, but only upon at least 20 days prior written notice given to
the Property Trustee in accordance with the Applicable Procedures.
(c) The Clearing Agency or its nominee, as the
registered owner of the Global Preferred Security, shall be considered the
Holder of the Preferred Securities represented by the Global Preferred Security
for all purposes under this Trust Agreement and the Preferred Securities, and
owners of beneficial interests in the Global Preferred Security shall hold such
interests pursuant to the Applicable Procedures and, except as
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otherwise provided herein, shall not be entitled to have any of the individual
Preferred Securities represented by the Global Preferred Security registered in
their names, shall not receive nor be entitled to receive physical delivery of
any such Preferred Securities in definitive form and shall not be considered
the Holders thereof under this Trust Agreement. Accordingly, any such owner's
beneficial interest in the Global Preferred Security shall he shown only on,
and the transfer of such interest shall be effected only through, records
maintained by the Clearing Agency or its nominee. The Securities Registrar and
the Trustees shall be entitled to deal with the Clearing Agency for all
purposes of this Trust Agreement relating to the Global Preferred Securities
(including the payment of the Liquidation Amount of and Distributions on the
Global Preferred Securities and the giving of instructions or directions to
Owners of Global Preferred Securities) as the sole Holder of Global Preferred
Securities and shall have no obligations to the Owners thereof. Neither the
Property Trustee nor the Securities Registrar shall have any liability in
respect of any transfers effected by the Clearing Agency.
(d) The rights of Owners of beneficial interests in the
Global Preferred Security shall be exercised only through the Clearing Agency
and shall be limited to those established by law and agreements between such
owners and the Clearing Agency. Neither the Clearing Agency nor its nominee
will consent or vote with respect to the Preferred Securities. Under its usual
procedures, the Clearing Agency or its nominee would mail an omnibus proxy to
the Trust as soon as possible after the relevant record date. The omnibus proxy
assigns the consenting or voting rights of the Clearing Agency or its nominee
to those Clearing Agency Participants, identified in a listing attached to such
omnibus proxy, to whose accounts the Preferred Securities are credited on such
record date.
Section 5.05. Registration of Transfer and Exchange
Generally; Certain Transfers and Exchanges; Preferred Securities Certificates;
Securities Act Legends. (a) The Property Trustee shall keep or cause to be kept
at its Corporate Trust Office a register or registers for the purpose of
registering Preferred Securities Certificates and Common Securities
Certificates and transfers and exchanges of Preferred Securities Certificates
and Common Securities Certificates in which the registrar and transfer
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agent with respect to the Preferred Securities (the "Securities Registrar"),
subject to such reasonable regulations as it may prescribe, shall provide for
the registration of Preferred Securities Certificates and Common Securities
Certificates (subject to Section 5.11 in the case of Common Securities
Certificates) and registration of transfers and exchanges of Preferred
Securities Certificates and Common Securities Certificates as herein provided.
Such register is herein sometimes referred to as the "Securities Register." The
Property Trustee is hereby appointed "Securities Registrar" for the purpose of
registering Preferred Securities and transfers of Preferred Securities as
herein provided. The provisions of Sections 8.01, 8.03 and 8.06 hereunder shall
apply to the Property Trustee also in its role as Securities Registrar.
Upon surrender for registration of transfer of any Preferred
Security at the offices or agencies of the Property Trustee designated for that
purpose, the Administrative Trustees shall execute, and the Property Trustee
shall countersign and deliver, in the name of the designated transferee or
transferees, one or more new Preferred Securities of any authorized
denominations of like tenor and aggregate liquidation amount and bearing such
restrictive legends as may be required by this Trust Agreement.
At the option of the Holder, Preferred Securities may be
exchanged for other Preferred Securities of any authorized denominations, of
like tenor and aggregate Liquidation Amount and bearing such restrictive
legends as may be required by this Trust Agreement, upon surrender of the
Preferred Securities to be exchanged at such office or agency. Whenever any
securities are so surrendered for exchange, the Depositor shall execute and the
Property Trustee shall countersign and deliver the Preferred Securities that
the Holder making the exchange is entitled to receive.
All Preferred Securities issued upon any transfer or exchange
of Preferred Securities shall be the valid obligations of the Trust, entitled
to the same benefits under this Trust Agreement as the Preferred Securities
surrendered upon such transfer or exchange.
Every Preferred Security presented or surrendered for
transfer or exchange shall (if so required by the
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Property Trustee) be duly endorsed, or be accompanied by a written instrument
of transfer in form satisfactory to the Property Trustee and the Securities
Registrar, duly executed by the Holder thereof or such Holder's attorney duly
authorized in writing.
No service charge shall be made to a Holder for any transfer
or exchange of Preferred Securities, but the Property Trustee or the Securities
Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Preferred Securities.
Neither the Trust nor the Property Trustee shall be required,
pursuant to the provisions of this Section, (i) to issue, register the transfer
of or exchange any Preferred Security during a period beginning at the opening
of business 15 days before the day of mailing of a notice of redemption of
Preferred Securities pursuant to Article IV and ending at the close of business
on the day of such mailing of the notice of redemption, or (ii) to register the
transfer of or exchange any Preferred Security so selected for redemption in
whole or in part, except, in the case of any such Preferred Security to be
redeemed in part, any portion thereof not to be redeemed.
The Preferred Securities will be issued, and may be
transferred, only in blocks having a Liquidation Amount of not less than $25.00
and integral multiples thereof.
(b) Certain Transfers and Exchanges. Subject to Section
5.04(c), but notwithstanding any other provision of this Trust Agreement,
transfers and exchanges of Preferred Securities and beneficial interests in a
Global Preferred Security shall be made only in accordance with this Section
5.05(b) and Section 5.04(c).
(i) Non-Global Security to Non-Global Security. A
Preferred Security that is not a Global Preferred Security may be
transferred, in whole or in part, to a Person who takes delivery in
the form of another Preferred Security that is not a Global Security
as provided in Section 5.05(a).
(ii) Exchanges Between Global Preferred Security and
Non-Global Preferred Security. A beneficial interest in the Global
Preferred
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Security may be exchanged for a Preferred Security that is not a
Global Preferred Security as provided in Section 5.04.
(iii) Limitations Relating to Liquidation Amount.
Notwithstanding any other provision of this Trust Agreement
and unless otherwise specified as permitted by this Trust Agreement, Preferred
Securities or portions thereof may be transferred or exchanged only in
Liquidation Amounts of not less than $25.00.
Section 5.06. Mutilated, Destroyed, Lost or Stolen Trust
Securities Certificates. Provided Definitive Preferred Securities Certificates
are issued, if (a) any mutilated Trust Securities Certificate shall be
surrendered to the Securities Registrar, or if the Securities Registrar shall
receive evidence to its satisfaction of the destruction, loss or theft of any
Trust Securities Certificate and (b) there shall be delivered to the Securities
Registrar and the Administrative Trustees such security or indemnity as may be
required by them to save each of them harmless, then in the absence of notice
that such Trust Securities Certificate shall have been acquired by a bona fide
purchaser, the Administrative Trustees, or any one of them, on behalf of the
Trust shall execute and make available for delivery, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Trust Securities Certificate,
a new Trust Securities Certificate of like class, tenor and denomination. In
connection with the issuance of any new Trust Securities Certificate under this
Section, the Administrative Trustees or the Securities Registrar may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection therewith. Any duplicate Trust Securities
Certificate issued pursuant to this Section shall constitute conclusive
evidence of an undivided beneficial interest in the assets of the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Trust
Securities Certificate shall be found at any time.
Section 5.07. Persons Deemed Securityholders. The
Trustees or the Securities Registrar shall treat the Person in whose name any
Trust Securities are issued as the owner of such Trust Securities for the
purpose of receiving Distributions and for all other purposes whatsoever, and
36
neither the Trustees nor the Securities Registrar shall be bound by any notice
to the contrary.
Section 5.08. Access to List of Securityholders' Names
and Addresses. Each Owner of Trust Securities acknowledges that the Depositor,
the Property Trustee, the Delaware Trustee or the Administrative Trustees may
from time to time make reasonable use of information consisting of such Owner's
name and address, including the furnishing of a list of such names and
addresses as contemplated hereunder, and each Owner shall be deemed to have
agreed not to hold the Depositor, the Property Trustee or the Administrative
Trustees accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.
Section 5.09. Maintenance of Office or Agency; Transfer
Agent. The Administrative Trustees shall maintain an office or offices or
agency or agencies where Definitive Preferred Securities Certificates, if
issued, may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Trustees in respect of the Trust Securities
may be served. The Administrative Trustees initially designate The Bank of New
York, 5 Penn Plaza, 13th Floor, New York, New York 10001, ATTENTION: Corporate
Trust Administration, as its corporate trust office for such purposes. The
Administrative Trustees shall give prompt written notice to the Depositor and
to the Securityholders of any change in the location of the Securities Register
or any such office or agency. The Bank shall act as initial transfer agent for
the Trust Securities.
Section 5.10. Appointment of Paying Agent. The Paying
Agent shall make Distributions to Securityholders from the Payment Account and
shall report the amounts of such Distributions to the Property Trustee and the
Administrative Trustees. Any Paying Agent shall have the revocable power to
withdraw funds from the Payment Account for the purpose of making the
Distributions referred to above. The Administrative Trustees may revoke such
power and remove any Paying Agent if such Administrative Trustees determine in
their sole discretion that such Paying Agent shall have failed to perform its
obligations under this Trust Agreement in any material respect. The Paying
Agent shall initially be the Bank, and any co-paying agent chosen by the Bank,
and acceptable to the Administrative Trustees
37
and the Depositor. Any Person acting as Paying Agent shall be permitted to
resign as Paying Agent upon 30 days written notice to the Administrative
Trustees, the Property Trustee and the Depositor. In the event that the Bank
shall no longer be the Paying Agent or a successor Paying Agent shall resign or
its authority to act be revoked, the Administrative Trustees shall appoint a
successor that is acceptable to the Property Trustee and the Depositor to act
as Paying Agent (which shall be a bank or trust company). The Administrative
Trustees shall cause such successor Paying Agent or any additional Paying Agent
appointed by the Administrative Trustees to execute and deliver to the Trustees
an instrument in which such successor Paying Agent or additional Paying Agent
shall agree with the Trustees that as Paying Agent, such successor Paying Agent
or additional Paying Agent will hold all sums, if any, held by it for payment
to the Securityholders in trust for the benefit of the Securityholders entitled
thereto until such sums shall be paid to such Securityholders. The Paying Agent
shall return all unclaimed funds to the Property Trustee and upon removal of a
Paying Agent such Paying Agent shall also return all funds in its possession to
the Property Trustee. The provisions of Sections 8.01, 8.03 and 8.06 herein
shall apply to the Bank also in its role as Paying Agent, for so long as the
Bank shall act as Paying Agent and, to the extent applicable, to any other
paying agent appointed hereunder. Any reference in this Trust Agreement to the
Paying Agent shall include any co-paying agent unless the context requires
otherwise.
Section 5.11. Ownership of Common Securities by
Depositor. The Depositor shall acquire and retain beneficial and record
ownership of the Common Securities. To the fullest extent permitted by law,
other than a transfer in connection with a consolidation or merger of the
Depositor into another corporation, or any conveyance, transfer or lease by the
Depositor of its properties and assets substantially as an entirety to any
Person, pursuant to Section 8.01 of the Indenture, any attempted transfer of
the Common Securities shall be void. The Administrative Trustees shall cause
each Common Securities Certificate issued to the Depositor to contain a legend
stating "THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT AS PROVIDED IN THE TRUST
AGREEMENT".
Section 5.12. Notices to Clearing Agency. To the extent
that a notice or other communication to the
38
Owners is required under this Trust Agreement, for so long as Preferred
Securities are represented by a Global Securities Certificate, the Trustees
shall give all such notices and communications specified herein to be given to
Owners to the Clearing Agency, and shall have no obligations to give duplicates
thereof to the Owners.
Section 5.13. Rights of Securityholders. (a) The legal
title to the Trust Property is vested exclusively in the Property Trustee (in
its capacity as such) in accordance with Section 2.09, and the Securityholders
shall not have any right or title therein other than the undivided beneficial
ownership interest in the assets of the Trust conferred by their Trust
Securities and they shall have no right to call for any partition or division
of property, profits or rights of the Trust except as described below. The
Trust Securities shall be personal property giving only the rights specifically
set forth therein and in this Trust Agreement. The Trust Securities shall have
no preemptive or similar rights and when issued and delivered to
Securityholders against payment of the purchase price therefor will be fully
paid and nonassessable. The Holders, in their capacities as such, shall be
entitled to the same limitation of personal liability extended to stockholders
of private corporations for profit organized under the General Corporation Law
of the State of Delaware.
(b) For so long as any Preferred Securities remain
Outstanding, if, upon a Debenture Event of Default, the Debenture Trustee fails
or the holders of not less than 25% in principal amount of the outstanding
Junior Subordinated Debt Securities fail to declare the principal amount of all
of the Junior Subordinated Debt Securities to be immediately due and payable,
the Holders of at least 25% in Liquidation Amount of the Preferred Securities
then Outstanding shall have such right by a notice in writing to the Depositor
and the Debenture Trustee with a copy to the Property Trustee; and upon any
such declaration such principal amount of and the accrued interest on all of
the Junior Subordinated Debt Securities shall become immediately due and
payable; provided that the payment of principal and interest on such Junior
Subordinated Debt Securities shall remain subordinated to the extent provided
in the Indenture.
At any time after such a declaration of acceleration with
respect to the Junior Subordinated Debt
39
Securities has been made and before a judgment or decree for payment of the
money due has been obtained by the Debenture Trustee as provided in the
Indenture, the holders of a majority in principal amount of the outstanding
Junior Subordinated Debt Securities, by written notice to the Property Trustee,
the Depositor and the Debenture Trustee, may rescind and annul such declaration
and its consequences if:
(i) the Depositor has paid or deposited with the
Debenture Trustee a sum sufficient to pay
(A) all overdue installments of interest
(including any Additional Interest (as defined in the
Indenture)) on all of the Junior Subordinated Debt
Securities,
(B) the principal of (and premium, if any, on)
any Junior Subordinated Debt Securities which have become due
otherwise than by such declaration of acceleration and
interest thereon at the rate borne by the Junior Subordinated
Debt Securities, and
(C) all sums paid or advanced by the Debenture
Trustee under the Indenture and the reasonable compensation,
expenses, disbursements and advances of the Debenture Trustee
and the Property Trustee, their agents and counsel; and
(ii) all Events of Default with respect to the Junior
Subordinated Debt Securities, other than the non-payment of the
principal of the Junior Subordinated Debt Securities which has become
due solely by such acceleration, have been cured or waived as provided
in Section 5.13 of the Indenture.
If the Property Trustee fails to annul any such declaration
and waive such default, the Holders of Preferred Securities representing a
majority in aggregate Liquidation Amount of all the Outstanding Preferred
Securities shall also have the right to rescind and annul such declaration and
its consequences by written notice to the Depositor, the Property Trustee and
the Debenture Trustee, subject to the satisfaction of the conditions set forth
in Clause(i) and (ii) of this Section 5.13(b).
40
Should the holders of a majority in aggregate principal
amount of the outstanding Junior Subordinated Debt Securities fail to take such
actions, the Holders of a majority in aggregate Liquidation Amount of the
Preferred Securities may, on behalf of the Holders of all the Preferred
Securities, waive any past default under the Indenture, except a default in the
payment of principal or interest (unless such default has been cured and a sum
sufficient to pay all matured installments of interest and principal due
otherwise than by acceleration has been deposited with the Debenture Trustee)
or a default in respect of a covenant or provision which under the Indenture
cannot be modified or amended without the consent of the holder of each
outstanding Junior Subordinated Debt Security. No such rescission shall affect
any subsequent default or impair any right consequent thereon.
Upon receipt by the Property Trustee of written notice
declaring such an acceleration, or rescission and annulment thereof, by Holders
of the Preferred Securities all or part of which is represented by Global
Preferred Securities, a record date shall be established for determining
Holders of Outstanding Preferred Securities entitled to join in such notice,
which record date shall be at the close of business on the day the Property
Trustee receives such notice. The Holders on such record date, or their duly
designated proxies, and only such Persons, shall be entitled to join in such
notice, whether or not such Holders remain Holders after such record date;
provided that, unless such declaration of acceleration, or rescission and
annulment, as the case may be, shall have become effective by virtue of the
requisite percentage having joined in such notice prior to the day which is 90
days after such record date, such notice of declaration of acceleration, or
rescission and annulment, as the case may be, shall automatically and without
further action by any Holder be canceled and of no further effect. Nothing in
this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
after expiration of such 90 day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is
identical to a written notice which has been canceled pursuant to the proviso
to the preceding sentence, in which event a new record date shall be
established pursuant to the provisions of this Section 5.13(b).
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(c) For so long as any Preferred Securities remain
Outstanding, to the fullest extent permitted by law and subject to the terms of
this Trust Agreement and the Indenture, upon a Debenture Event of Default
specified in Section 5.01(1) or 5.01(2) of the Indenture, any Holder of
Preferred Securities shall have the right to institute a proceeding directly
against the Depositor, pursuant to Section 5.08 of the Indenture, for
enforcement of payment to such Holder of the principal amount of or interest
(including any Additional Interest) on Junior Subordinated Debt Securities
having a principal amount equal to the aggregate Liquidation Amount of the
Preferred Securities held by such Holder (a "Direct Action"). Except as set
forth in Sections 5.13(b) and 5.13(c) hereof, the Holders of Preferred
Securities shall have no right to exercise directly any right or remedy
available to the holders or, or in respect of, the Junior Subordinated Debt
Securities.
ARTICLE VI
Acts of Securityholders; Meetings; Voting
Section 6.01. Limitations on Preferred Securityholder's
Voting Rights. (a) Except as provided in this Trust Agreement and in the
Indenture and as otherwise required by law, no Holder of Preferred Securities
shall have any right to vote or in any manner otherwise control the
administration, operation and management of the Trust or the obligations of the
parties hereto, nor shall anything herein set forth, or contained in the terms
of the Trust Securities Certificates, be construed so as to constitute the
Preferred Securityholders from time to time as partners or members of an
association. Unless a Debenture Event of Default shall have occurred and be
continuing, any Trustee may be removed at any time by the vote of the Common
Securityholder. The right to vote to appoint, remove or replace the
Administrative Trustees is vested exclusively in the Depositor as the Holder of
the Common Securities.
(b) So long as any Junior Subordinated Debt Securities
are held by the Property Trustee, the Trustees shall not (i) direct the time,
method and place of conducting any proceeding for any remedy available to the
Debenture Trustee, or executing any trust or power conferred on the Property
Trustee with respect to such Junior Subordinated Debt Securities, (ii) waive
any past default which is waivable under Section 5.13 of the
42
Indenture, (iii) exercise any right to rescind or annul a declaration that the
principal of all the Junior Subordinated Debt Securities shall be due and
payable or (iv) consent to any amendment, modification or termination of the
Indenture or the Junior Subordinated Debt Securities, where such consent shall
be required, without, in each case, obtaining the prior approval of the Holders
of at least a majority in aggregate Liquidation Amount of all Outstanding
Preferred Securities; provided, however, that where a consent under the
Indenture would require the consent of each holder of Junior Subordinated Debt
Securities affected thereby, no such consent shall be given by the Property
Trustee without the prior written consent of each Holder of Preferred
Securities. The Trustees shall not revoke any action previously authorized or
approved by a vote of the Holders of Preferred Securities, except by a
subsequent vote of the Holders of Preferred Securities. The Property Trustee
shall notify all Holders of the Preferred Securities of any notice of default
received from the Debenture Trustee with respect to the Junior Subordinated
Debt Securities. In addition to obtaining the foregoing approvals of the
Holders of the Preferred Securities, prior to taking any of the foregoing
actions, the Trustees shall, at the expense of the Depositor, obtain an Opinion
of Counsel experienced in such matters to the effect that the Trust will not
fail to be classified as a grantor trust for United States federal income tax
purposes on account of such action.
(c) If any proposed amendment to the Trust Agreement
provides for, or the Trustees otherwise propose to effect, (i) any action that
would adversely affect in any material respect the interests, powers,
preferences or special rights of the Trust Securities, whether by way of
amendment to the Trust Agreement or otherwise, or (ii) the dissolution,
winding-up or termination of the Trust, other than pursuant to the terms of
this Trust Agreement, then the Holders of Outstanding Trust Securities as a
class will be entitled to vote on such amendment or proposal.
Section 6.02. Notice of Meetings. Notice of all meetings
of the Securityholders, stating the time, place and purpose of the meeting,
shall be given by the Property Trustee pursuant to Section 10.09 to each
Securityholder of record, at his registered address, at least 15 days and not
more than 90 days before the meeting. At any such meeting, any business
properly before the meeting may be so
43
considered whether or not stated in the notice of the meeting. Any adjourned
meeting may be held as adjourned without further notice.
Section 6.03. Meetings of Securityholders. No annual
meeting of Securityholders is required to be held. The Administrative Trustees,
however, shall call a meeting of Securityholders to vote on any matter upon the
written request of the Securityholders of record of 25% of the Securities
(based upon their Liquidation Amount) and the Administrative Trustees or the
Property Trustee may, at any time in their discretion, call a meeting of
Securityholders to vote on any matters as to which Securityholders are entitled
to vote. Securityholders of record of 50% of the Outstanding Securities (based
upon their Liquidation Amount), present in person or represented by proxy,
shall constitute a quorum at any meeting of Securityholders. If a quorum is
present at a meeting, an affirmative vote by the Securityholders of record
present, in person or by proxy, holding more than a majority of the Securities
(based upon their Liquidation Amount) held by the Securityholders of record
present, either in person or by proxy, at such meeting shall constitute the
action of the Securityholders, unless this Trust Agreement requires a greater
number of affirmative votes.
Section 6.04. Voting Rights. Securityholders shall be
entitled to one vote for each $25.00 of Liquidation Amount represented by their
Outstanding Trust Securities in respect of any matter as to which such
Securityholders are entitled to vote.
Section 6.05. Proxies, etc. At any meeting of
Securityholders, any Securityholder entitled to vote thereat may vote by proxy;
provided that no proxy shall be voted at any meeting unless it shall have been
placed on file with the Administrative Trustees, or with such other officer or
agent of the Trust as the Administrative Trustees may direct, for verification
prior to the time at which such vote shall be taken. Proxies may be solicited
in the name of the Property Trustee or one or more officers of the Property
Trustee. Only Securityholders of record shall be entitled to vote. When Trust
Securities are held jointly by several persons, any one of them may vote at any
meeting in person or by proxy in respect of such Securities, but if more than
one of them shall be present at such meeting in person or by proxy, and such
joint owners or their proxies so present disagree as to any vote to be cast,
such vote
44
shall not be received in respect of such Securities. A proxy purporting to be
executed by or on behalf of a Securityholder shall be deemed valid unless
challenged at or prior to its exercise, and the burden of proving invalidity
shall rest on the challenger. No proxy shall be valid more than three years
after its date of execution.
Section 6.06. Securityholder Action by Written Consent.
Any action which may be taken by Securityholders at a meeting may be taken
without a meeting if Securityholders holding a majority of all Outstanding
Securities (based upon their Liquidation Amount) entitled to vote in respect of
such action (or such larger proportion thereof as shall be required by any
express provision of this Trust Agreement) shall consent to the action in
writing.
Section 6.07. Record Date for Voting and Other Purposes.
For the purposes of determining the Securityholders who are entitled to notice
of and to vote at any meeting or by written consent, or to participate in any
Distribution in respect of which a record date is not otherwise provided for in
this Trust Agreement, or for the purpose of any other action, the
Administrative Trustees may from time to time fix a date, not more than 90 days
prior to the date of any meeting of Securityholders or the payment of a
distribution or other action, as the case may be, as a record date for the
determination of the identity of the Securityholders of record for such
purposes.
Section 6.08. Acts of Securityholders. Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Trust Agreement to be given, made or taken by
Securityholders or Owners may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Securityholders or
Owners in person or by an agent duly appointed in writing; and, except as
otherwise expressly provided herein, such action shall become effective when
such instrument or instruments are delivered to an Administrative Trustee. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Securityholders
or Owners signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Trust Agreement and (subject to
45
Section 8.01) conclusive in favor of the Trustees, if made in the manner
provided in this Section
The fact and date of the execution by any Person of any such
instrument or writing may be provided by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where
such execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which any Trustee receiving the same deems sufficient. The
ownership of Trust Securities shall be proved by the Securities Registrar. Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of the Securityholder of any Trust Security shall bind every future
Securityholder of the same Trust Security and the Securityholder of every Trust
Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Trustees or the Trust in reliance thereon, whether or not
notation of such action is made upon such Trust Security.
Without limiting the foregoing, a Securityholder entitled
hereunder to take any action hereunder with regard to any particular Trust
Security may do so with regard to all or any part of the Liquidation Amount of
such Trust Security or by one or more duly appointed agents each of which may
do so pursuant to such appointment with regard to all or any part of such
Liquidation Amount.
If any dispute shall arise between the Securityholders and
the Administrative Trustees or among such Securityholders or Trustees with
respect to the authenticity, validity or binding nature of any request, demand,
authorization, direction, consent, waiver or other Act of such Securityholder
or Trustee under this Article VI, then the determination of such matter by the
Property Trustee shall be conclusive with respect to such matter.
A Holder may institute a legal proceeding directly against
the Depositor under the Guarantee
46
Agreement to enforce its rights under the Guarantee Agreement without first
instituting a legal proceeding against the Guarantee Trustee (as defined in the
Guarantee Agreement), the Trust, any Trustee or any person or entity.
Section 6.09. Inspection of Records. Upon reasonable
notice to the Administrative Trustees and the Property Trustee, the records of
the Trust shall be open to inspection by Securityholders during normal business
hours for any purpose reasonably related to such Securityholder's interest as a
Securityholder.
ARTICLE VII
Representations and Warranties
Section 7.01. Representations and Warranties of the
Property Trustee and the Delaware Trustee. The Property Trustee and the
Delaware Trustee, each severally on behalf of and as to itself, hereby
represents and warrants for the benefit of the Depositor and the
Securityholders that:
(a) The Property Trustee is a banking corporation with
trust powers, duly organized, validly existing and in good standing
under the laws of New York, with trust power and authority to execute
and deliver, and to carry out and perform its obligations under the
terms of this Declaration.
(b) The execution, delivery and performance by the
Property Trustee of the Declaration has been duly authorized by all
necessary corporate action on the part of the Property Trustee; and
the Declaration has been duly executed and delivered by the Property
Trustee, and constitutes a legal, valid and binding obligation of the
Property Trustee, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, reorganization, moratorium,
insolvency, and other similar laws affecting creditors' rights
generally and to general principles of equity and the discretion of
the court (regardless of whether the enforcement of such remedies is
considered in a proceeding in equity or at law).
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(c) The execution, delivery and performance of the
Declaration by the Property Trustee does not conflict with or
constitute a breach of the certificate of incorporation or by-laws of
the Property Trustee.
(d) At the Closing Date, the Property Trustee has not
knowingly created any liens or encumbrances on such Trust Securities.
(e) No consent, approval or authorization of, or
registration with or notice to, any New York State or federal banking
authority is required for the execution, delivery or performance by
the Property Trustee, of the Declaration (other than the filing of the
Certificate of Trust).
(f) The Delaware Trustee is duly organized, validly
existing and in good standing under the laws of the State of Delaware,
with trust power and authority to execute and deliver, and to carry
out and perform its obligations under the terms of, the Declaration.
(g) The execution, delivery and performance by the
Delaware Trustee of the Declaration has been duly authorized by all
necessary corporate action on the part of the Delaware Trustee; and
the Declaration has been duly executed and delivered by the Delaware
Trustee, and constitutes a legal, valid and binding obligation of the
Delaware Trustee, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, reorganization, moratorium,
insolvency, and other similar laws affecting creditors' right
generally and to general principles of equity and the discretion of
the court regardless of whether the enforcement of such remedies is
considered in a proceeding in equity or at law).
(h) The execution, delivery and performance or the
Declaration by the Delaware Trustee does not conflict with or
constitute a breach of the certificate of incorporation or by-laws of
the Delaware Trustee.
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(i) No consent, approval or authorization of, or
registration with or notice to, any state or federal banking authority
is required for the execution, delivery or performance by the Delaware
Trustee, of this Declaration (other than the filing of the Certificate
of Trust).
(j) The Delaware Trustee is an entity which has its
principal place of business in the State of Delaware.
Section 7.02. Representations and Warranties of
Depositor. The Depositor hereby represents and warrants for the benefit of the
Securityholders that the Trust Securities Certificates issued at the Closing
Date on behalf of the Trust have been duly authorized and will have been duly
and validly executed, issued and delivered by the Trustees pursuant to the
terms and provisions of, and in accordance with the requirements of, this Trust
Agreement, and the Securityholders will be, as of each such date, entitled to
the benefits of this Trust Agreement.
ARTICLE VIII
The Trustees
Section 8.01. Certain Duties and Responsibilities. (a)
The duties and responsibilities of the Trustees shall be as provided by this
Trust Agreement and, in the case of the Property Trustee, by the Trust
Indenture Act; provided, however, that the Property Trustee shall not be
subject to the provisions of the Trust Indenture Act until such time as this
Trust Agreement becomes qualified under the Trust Indenture Act upon the
effectiveness of a registration statement pursuant to the Registration
Agreement. Notwithstanding the foregoing, no provisions of this Trust Agreement
shall require the Trustees to expend or risk their own funds or otherwise incur
any financial liability in the performance of any of their duties hereunder, or
in the exercise of any of their rights or powers, if they shall have reasonable
grounds for believing that repayment of such funds or indemnity satisfactory to
it against such risk or liability is not reasonably assured to it. Whether or
not herein expressly so provided, every provision of this Trust Agreement
relating to the conduct or affecting the liability of or affording protection
to the Trustees shall be subject to the provisions of this Article. Nothing in
this Trust
49
Agreement shall be construed to release an Administrative Trustee from
liability for his own grossly negligent action, his own grossly negligent
failure to act, or his own willful misconduct. To the extent that, at law or in
equity, an Administrative Trustee has duties (including fiduciary duties) and
liabilities relating thereto to the Trust or to the Securityholders, such
Administrative Trustee shall not be liable to the Trust or to any
Securityholder for such Trustee's good faith reliance on the provisions of this
Trust Agreement. The provisions of this Trust Agreement, to the extent that
they restrict the duties and liabilities of the Administrative Trustees
otherwise existing at law or in equity, are agreed by the Depositor and the
Securityholders to replace such other duties and liabilities of the
Administrative Trustees.
(b) All payments made by the Property Trustee or a
Paying Agent in respect of the Trust Securities shall be made only from the
revenue and proceeds from the Trust Property and only to the extent that there
shall be sufficient revenue or proceeds from the Trust Property to enable the
Property Trustee or a Paying Agent to make payments in accordance with the
terms hereof. Each Securityholder, by its acceptance of a Trust Security,
agrees that it will look solely to the revenue and proceeds from the Trust
Property to the extent legally available for distribution to it as herein
provided and that the Trustees are not personally liable to it for any amount
distributable in respect of any Trust Security or for any other liability in
respect of any Trust Security. This Section 8.01(b) does not limit the
liability of the Trustees expressly set forth elsewhere in this Trust Agreement
or, in the case of the Property Trustee, in the Trust Indenture Act, if
applicable.
(c) No provision of this Trust Agreement shall be
construed to relieve the Property Trustee from liability for its own negligent
action, its own negligent failure to act, or its own willful misconduct, except
that:
(i) the Property Trustee shall not be liable for any
error of judgment made in good faith by an authorized officer of the
Property Trustee, unless it shall be proved that the Property Trustee
was negligent in ascertaining the pertinent facts;
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(ii) the Property 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 Trust Securities relating to the
time, method and place of conducting any proceeding for any remedy
available to the Property Trustee, or exercising any trust or power
conferred upon the Property Trustee under this Trust Agreement;
(iii) the Property Trustee's sole duty with respect to the
custody, safe keeping and physical preservation of the Junior
Subordinated Debt Securities and the Payment Account shall be to deal
with such Property in a similar manner as the Property Trustee deals
with similar property for its own account, subject to the projections
and limitations on liability afforded to the Property Trustee under
this Trust Agreement and the Trust Indenture Act;
(iv) the Property Trustee shall not be liable for any
interest on any money received by it except as it may otherwise agree
in writing with the Depositor; and money held by the Property Trustee
need not be segregated from other funds held by it except in relation
to the Payment Account maintained by the Property Trustee pursuant to
Section 3.01 and except to the extent otherwise required by law; and
(v) the Property Trustee shall not be responsible for
monitoring the compliance by the Administrative Trustees or the
Depositor with their respective duties under this Trust Agreement nor
shall the Property Trustee be liable for the default or misconduct of
the Administrative Trustees or the Depositor.
Section 8.02. Events of Default Notices; Deferral of
Interest Payment Notices. Within five Business Days after the occurrence of any
Event of Default actually known to a Responsible Officer of the Property
Trustee, the Property Trustee shall transmit, in the manner and to the extent
provided in Section 10.09, notice of such Event of Default to the
Securityholders, the Administrative Trustees and the Depositor, unless such
Event of Default shall have
51
been cured or waived. The Depositor, and the Administrative Trustees are
required to file annually with the Property Trustee a certificate as to whether
or not they are in compliance with all the conditions and covenants applicable
to them under the Declaration.
Within five Business Days after the receipt of notice of the
Depositor's exercise of its right to defer the payment of interest on the
Junior Subordinated Debt Securities pursuant to the Indenture, the
Administrative Trustee shall transmit, in the manner and to the extent provided
in Section 10.09, notice of such exercise to the Securityholders and the
Property Trustee, unless such exercise shall have been revoked.
Section 8.03. Certain Rights of Property Trustee. Subject
to the provisions of Section 8.01:
(a) the Property Trustee may conclusively rely and shall
be fully protected in acting or refraining from acting in good faith
upon any resolution, Opinion of Counsel, certificate, written
representation of a Holder or transferee, certificate of auditors or
any other certificate, statement, instrument, opinion, report, notice,
request, consent, order, appraisal, bond, debenture, note, other
evidence of indebtedness or other paper or document (whether in its
original or facsimile form) believed by it to be genuine and to have
been signed or presented by the proper party or parties;
(b) if (i) in performing its duties under this Trust
Agreement the Property Trustee is required to decide between
alternative courses of action or (ii) in construing any of the
provisions of this Trust Agreement the Property Trustee finds the same
ambiguous or inconsistent with any other provisions contained herein
(iii) the Property Trustee is unsure of the application of any
Provision of this Trust Agreement, then, except as to any matter as to
which the Securityholders are entitled to vote under the terms of this
Trust Agreement, the Property Trustee shall deliver a notice to the
Depositor requesting written instructions of the Depositor as to the
course of action to be taken and the Property Trustee shall take such
action, or
52
refrain from taking such action, as the Property Trustee shall be
instructed in writing to take, or to refrain from taking, by the
Depositor; provided, however, that if the Property Trustee does not
receive such instructions of the Depositor within ten Business Days
after it has delivered such notice, or such reasonably shorter period
of time set forth in such notice (which to the extent practicable
shall not be less than two Business Days), it may, but shall be under
no duty to, take or refrain from taking such action not inconsistent
with this Trust Agreement as it shall deem advisable, in which event
the Property Trustee shall have no liability except for its own bad
faith, negligence or willful misconduct;
(c) any direction or act of the Depositor or the
Administrative Trustee contemplated by this Trust Agreement shall be
sufficiently evidenced by an Officers' Certificate;
(d) whenever in the administration of this Trust
Agreement, the Property Trustee shall deem it desirable that a matter
be established before undertaking, suffering or omitting any action
hereunder, the Property Trustee (unless other evidence is herein
specifically prescribed) may, in the absence of bad faith on its part,
request and conclusively rely upon an Officers' Certificate which,
upon receipt of such request, shall be promptly delivered by the
Depositor or the Administrative Trustees;
(e) the Property Trustee shall have no duty to see to
any recording, filing or registration of any instrument (including any
financing or continuation statement or any filing under tax or
securities laws) or any rerecording, refiling or reregistration
thereof;
(f) the Property Trustee may consult with counsel of its
selection (which counsel may be counsel to the Depositor or any of its
Affiliates, and may include any of its employees) and the advice of
such counsel shall be full and complete authorization and protection
in respect of any action taken suffered or omitted by it hereunder in
good faith and in reliance thereon
53
and in accordance with such advice, such counsel may be counsel to the
Depositor or any of its Affiliates, and may include any of its
employees; the Property Trustee shall have the right at any time to
seek instructions concerning the administration of this Trust
Agreement from any court of competent jurisdiction;
(g) the Property Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Trust
Agreement at the request or direction of any of the Securityholders
pursuant to this Trust Agreement, unless such Securityholders shall
have offered to the Property Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction;
(h) the Property 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,
consent, order, approval, bond, debenture, note or other evidence of
indebtedness or other paper or document, unless requested in writing
to do so by one or more Securityholders, but the Property Trustee may
make such further inquiry or investigation into such facts or matters
as it may see fit at the expense of the Depositor and shall incur no
liability of any kind by reason of such inquiry and investigation;
(i) the Property Trustee may execute any of its trusts
or powers hereunder or perform any of its duties hereunder either
directly or by or through its agents or attorneys, and the Property
Trustee shall not be responsible for any misconduct or negligence on
the part of or for the supervision of any such agent or attorney
appointed by it with due care hereunder;
(j) whenever in the administration of this Trust
Agreement the Property Trustee shall deem it desirable to receive
instructions with respect to enforcing any remedy or right or taking
any other action hereunder, the Property Trustee (i) may request
instructions from the Holders of the
54
Trust Securities which instructions may only be given by the Holders
of the same proportion in Liquidation Amount of the Trust Securities
as would be entitled to direct the Property Trustee under the terms of
the Trust Securities in respect of such remedy, right or action, (ii)
may refrain from enforcing such remedy or right or taking such other
action until such instructions are received, and (iii) shall be fully
protected in acting in accordance with instructions;
(k) except as otherwise expressly provided by this Trust
Agreement, the Property Trustee shall not be under any obligation to
take any action that is discretionary under the provisions of this
Trust Agreement;
(l) when the Property Trustee incurs expenses or renders
services in connection with a Bankruptcy Event, such expenses
(including the fees and expenses of its counsel) and the compensation
for such services are intended to constitute expenses of
administration under any bankruptcy law or law relating to creditors
rights generally; and
(m) the Property Trustee shall not be charged with
knowledge or an Event of Default unless a Responsible Officer of the
Property Trustee obtains actual knowledge of such event or the
Property Trustee receives written notice of such event from
Securityholders holding at least 25%, of the Outstanding Trust
Securities (based upon Liquidation Amount).
No provision of this Trust Agreement shall be deemed to
impose any duty or obligation on the Property 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 Property
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 Property Trustee
shall be construed to be a duty.
Section 8.04. Not Responsible for Recitals. The recitals
contained herein and in the Trust Securities
55
Certificates shall be taken as the statements of Trust, and the Trustees do not
assume any responsibility for their correctness. The Trustees shall not be
accountable for the use or application by the Depositor of the proceeds of the
Junior Subordinated Debt Securities.
Section 8.05. May Hold Securities. Except as provided in
the definition of the term "Outstanding" in Article I, any Trustee or any other
agent of any Trustee or the Trust, in its individual or any other capacity, may
become the owner or pledgee of Trust Securities and, subject to Sections 8.08
and 8.13, may otherwise deal with the Trust with the same rights it would if it
were not a Trustee or such other agent.
Section 8.06. Compensation, Indemnity, Fees. Pursuant to
Section 10.06 of the Indenture, the Depositor, as borrower on the Junior
Subordinated Debt Securities, agrees:
(a) to pay to the Trustees from time to time reasonable
compensation for all services rendered by them hereunder as agreed
upon from time to time in writing with the Depositor (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 Trustees upon request for all reasonable expenses,
disbursements and advances incurred or made by the Trustees in
accordance with any provision of this Trust Agreement (including the
reasonable compensation and the expenses and disbursements of its
agents and counsel), except any such expense, disbursement or advance
as shall be determined to have been caused by its own negligence or
willful misconduct;
(c) to the fullest extent permitted by applicable law,
to indemnify and hold harmless (i) each Trustee, (ii) any Affiliate of
any Trustee, (iii) any officer, director, shareholder, employee,
representative or agent of any Trustee, and (iv) any employee or agent
of the Trust or its Affiliates (each referred to herein as an
"Indemnified Person"), from and
56
against any loss, damage, liability, tax, penalty, expense, action,
suit or claim of any kind or nature whatsoever incurred by such
Indemnified Person by reason of the creation, operation or termination
of the Trust or any act or omission performed or omitted by such
Indemnified Person in good faith on behalf of the Trust and in a
manner such Indemnified Person reasonably believed to be within the
scope of authority conferred on such Indemnified Person by this Trust
Agreement, except that no Indemnified Person shall be entitled to be
indemnified in respect of any loss, damage or claim incurred by such
Indemnified Person determined to have been caused by its own
negligence or willful misconduct with respect to such acts or
omissions; and
(d) to the fullest extent permitted by applicable law,
to advance expenses (including legal fees) incurred by an Indemnified
Person in defending any claim, demand, action, suit or proceeding,
from time to time, prior to the final disposition of such claim,
demand action, suit or proceeding upon receipt by the Depositor of (i)
a written affirmation by or on behalf of the Indemnified Person of its
or his good faith belief that it or he has met the standard of conduct
set forth in this Section 8.06 and (ii) an undertaking by or on behalf
of the Indemnified Person to repay such amount if it shall be
determined that the Indemnified Person is not entitled to be
indemnified as authorized in the preceding subsection.
The provisions of this Section 8.06 shall survive the
termination of this Trust Agreement or the earlier resignation or removal of
any Trustee.
No Trustee may claim any lien or charge on any Trust Property
as a result of any amount due pursuant to this Section 8.06.
The Depositor and any Trustee (in the case of the Property
Trustee, subject to Section 8.08 hereof) may engage in or possess an interest
in other business ventures of any nature or description, independently or with
others, similar or dissimilar to the business of the Trust, and
57
none of the Trust, the Holders, the Depositor or any such Trustee shall have
any rights by virtue of this Trust Agreement in and to such independent
ventures or the income or profits derived therefrom, and the pursuit of any
such venture, even if competitive with the business of the Trust, shall not be
deemed wrongful or improper. Neither the Depositor, nor any Trustee, shall be
obligated to present any particular investment or other opportunity to the
Trust even if such opportunity is of a character that, if presented to the
Trust, could be taken by the Trust, and the Depositor or any Trustee shall have
the right to take for its own account (individually or as a partner or
fiduciary) or to recommend to others any such particular investment or other
opportunity. Any Trustee may engage or be interested in any financial or other
transaction with the Depositor or any Affiliate of the Depositor, or may act as
depository for, trustee or agent for, or act on any committee or body of
holders of, securities or other obligations of the Depositor or its Affiliates.
Section 8.07. Corporate Property Trustee Required;
Eligibility of Trustees. (a) There shall at all times be a Property Trustee
hereunder with respect to the Trust Securities. The Property Trustee shall be a
Person that is a national or state chartered bank and eligible pursuant to the
Trust Indenture Act to act as such and has a combined capital and surplus of at
least $50 million. If any such Person 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, the combined
capital and surplus of such Person shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published.
If at any time the Property Trustee with respect to the Trust Securities shall
cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter
specified in this Article; provided, however, that the Property Trustee need
not qualify under the Trust Indenture Act until such time as this Trust
Agreement is qualified under the Trust Indenture Act.
(b) There shall at all times be one or more
Administrative Trustees hereunder. Each Administrative Trustee shall be either
a natural person who is at least 21 years of age or a legal entity that shall
act through one or more persons authorized to bind that entity.
58
(c) There shall at all times be a Delaware Trustee. The
Delaware Trustee shall either be (i) a natural person who is at least 21 years
of age and a resident of the State of Delaware or (ii) a legal entity with its
principal place of business in the State of Delaware and that otherwise meets
the requirements of applicable Delaware law that shall act through one or more
persons authorized to bind such entity.
Section 8.08. Conflicting Interests. If the Property
Trustee has or shall acquire a conflicting interest within the meaning of the
Trust Indenture Act, the Property Trustee shall either eliminate such interest
or resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Trust Agreement.
Section 8.09. Co-Trustees and Separate Trustee. Unless an
Event of Default shall have occurred and be continuing, at any time or times,
for the purpose of meeting the legal requirements of the Trust Indenture Act or
of any jurisdiction in which any part of the Trust Property may at the time be
located, the Depositor and the Administrative Trustees, by agreed action of the
majority of such Trustees, shall have power to appoint, and upon the written
request of the Administrative Trustees, the Depositor shall for such purpose
join with the Administrative Trustees in the execution, delivery, and
performance of all instruments and agreements necessary or proper to appoint,
one or more Persons approved by the Property Trustee either to act as
co-trustee, jointly with the Property Trustee, of all or any part of such Trust
Property, or to the extent required by law to act as separate trustee of any
such property, in either case with such powers as may be provided in the
instrument of appointment, and to vest in such Person or Persons in the
capacity aforesaid, any property, title, right or power deemed necessary or
desirable, subject to the other provisions of this Section. If the Depositor
does not join in such appointment within 15 days after the receipt by it of a
request so to do, or in case a Debenture Event of Default has occurred and is
continuing, the Property Trustee alone shall have power to make such
appointment. Any co-trustee or separate trustee appointed pursuant to this
Section shall either be (i) a natural person who is at least 21 years of age
and a resident of the United States or (ii) a legal entity with its principal
place of business
59
in the United States that shall act through one or more persons authorized to
bind such entity.
Should any written instrument from the Depositor be required
by any co-trustee or separate trustee so appointed for more fully confirming to
such co-trustee or separate trustee such property, title, right or power, any
and all such instruments shall, on request, be executed, acknowledged and
delivered by the Depositor.
Every co-trustee or separate trustee shall, to the extent
permitted by law, but to such extent only, be appointed subject to the
following terms, namely:
(a) The Trust Securities shall be executed and delivered
and all rights, powers, duties, and obligations hereunder in respect
of the custody of securities, cash and other personal property held
by, or required to be deposited or pledged with, the Trustees
specified hereunder, shall be exercised, solely by such Trustees and
not by such co-trustee or separate trustee.
(b) The rights, powers, duties, and obligations hereby
conferred or imposed upon the Property Trustee in respect of any
property covered by such appointment shall be conferred or imposed
upon and exercised or performed by the Property Trustee or by the
Property Trustee and such co-trustee or separate trustee jointly, as
shall be provided in the instrument appointing such co-trustee or
separate trustee, except to the extent that under any law of any
jurisdiction in which any particular act is to be performed, the
Property Trustee shall be incompetent or unqualified to perform such
act, in which event such rights, powers, duties and obligations shall
be exercised and performed by such co-trustee or separate trustee.
(c) The Property Trustee at any time, by an instrument
in writing executed by it, with the written concurrence of the
Depositor, may accept the resignation of or remove any co-trustee or
separate trustee appointed under this Section, and, in case a
Debenture Event of Default has occurred and is continuing, the
Property Trustee shall have power to accept the resignation of, or
60
remove, any such co-trustee or separate trustee without the
concurrence of the Depositor. Upon the written request of the Property
Trustee, the Depositor shall join with the Property Trustee in the
execution, delivery and performance of all instruments and agreements
necessary or proper to effectuate such resignation or removal. A
successor to any co-trustee or separate trustee so resigned or removed
may be appointed in the manner provided in this Section.
(d) No co-trustee or separate trustee hereunder shall be
personally liable by reason of any act or omission of the Property
Trustee or any other trustee hereunder.
(e) The Property Trustee shall not be required to
supervise any co-trustee or separate trustee nor shall it be liable by
reason of any act of a co-trustee or separate trustee or any employees
or agents of a co-trustee or separate trustee.
(f) Any Act of Holders delivered to the Property Trustee
shall be deemed to have been delivered to each such co-trustee and
separate trustee.
Section 8.10. Resignation and Removal; Appointment of
Successor. No resignation or removal of any Trustee (the "Relevant Trustee")
and no appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 8.11.
Subject to the immediately preceding paragraph, a Relevant
Trustee may resign at any time by giving written notice thereof to the
Securityholders. If the instrument of acceptance by the successor Trustee
required by Section 8.11 shall not have been delivered to the Relevant Trustee
within 30 days after the giving of such notice of resignation or removal, the
Relevant Trustee may petition, at the expense of the Trust, any court of
competent jurisdiction for the appointment of a successor Relevant Trustee.
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Unless a Debenture Event of Default shall have occurred and
be continuing, any Trustee may be removed at any time by Act of the Common
Securityholder. If a Debenture Event of Default shall have occurred and be
continuing, the Property Trustee or the Delaware Trustee, or both of them, may
be removed at such time by Act of the Holders of a majority in Liquidation
Amount of the Outstanding Preferred Securities, delivered to the Relevant
Trustee (in its individual capacity and on behalf of the Trust). An
Administrative Trustee may be removed by Act of the Common Securityholder at
any time and only the Common Securityholder shall have the right to remove any
Administrative Trustee.
If any Trustee shall resign, be removed or become incapable
of acting as Trustee, or if a vacancy shall occur in the office of any Trustee
for any cause, at a time when no Debenture Event of Default shall have occurred
and be continuing, the Common Securityholder, by Act of the Common
Securityholder delivered to the retiring Trustee, shall promptly appoint a
successor Trustee or Trustees and the retiring Trustee shall comply with the
applicable requirements of Section 8.11. If the Property Trustee or the
Delaware Trustee shall resign, be removed or become incapable of continuing to
act as the Property Trustee or the Delaware Trustee, as the case may be, at a
time when a Debenture Event of Default shall have occurred and be continuing,
the Preferred Securityholders, by Act of the Preferred Securityholders of a
majority in Liquidation Amount of the Preferred Securities then Outstanding
delivered to the retiring Relevant Trustee, shall promptly appoint a successor
Relevant Trustee or Trustees, and such successor Trustee shall comply with the
applicable requirements of Section 8.11. If an Administrative Trustee shall
resign, be removed or become incapable of acting as Administrative Trustee, at
a time when a Debenture Event of Default shall have occurred and be continuing,
the Common Securityholder, by Act of the Common Securityholder delivered to the
Administrative Trustee, shall promptly appoint a successor Administrative
Trustee or Administrative Trustees and such successor Administrative Trustee or
Trustees shall comply with the applicable requirements of Section 8.11. If no
successor Relevant Trustee shall have been so appointed by the Common
Securityholder or the Preferred Securityholders and accepted appointment in the
manner required by Section 8.11, any Securityholder who has been a
Securityholder of
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Trust Securities for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Relevant Trustee.
The Property Trustee shall give notice of each resignation
and each removal of a Trustee and each appointment of a successor Trustee to
all Securityholders in the manner provided in Section 10.08 and shall give
notice to the Depositor. Each notice shall include the name of the successor
Relevant Trustee and the address of its Corporate Trust Office if it is the
Property Trustee.
Notwithstanding the foregoing or any other provision of this
Trust Agreement, in the event any Administrative Trustee or a Delaware Trustee
who is a natural person dies or becomes, in the opinion of the Depositor,
incompetent or incapacitated, or, in the case of an Administrative Trustee,
ceases to be an employee of the Depositor, the vacancy created by such death,
incompetence or incapacity may be filled by (a) the unanimous act of remaining
Administrative Trustees if there are at least two of them or (b) otherwise by
the Depositor (with the successor in each case being a Person who satisfies the
eligibility requirement for Administrative Trustees or Delaware Trustee, as the
case may be, set forth in Section 8.07).
Section 8.11. Acceptance of Appointment by Successor. In
the case of the appointment hereunder of a successor Trustee, such successor
Trustee so appointed shall execute, acknowledge and deliver to the Trust and to
the retiring Trustee any instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Trustee shall become effective and
such successor Trustee, without any further act, deed or conveyance, shall
become vested with the rights, powers, trusts and duties of the retiring
Trustee, but, on the request of the Depositor or the successor Trustee, such
retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee and if the Property Trustee is the resigning
Trustee the Property Trustee shall duly assign, transfer and deliver to the
successor Property Trustee all Trust Property and money held by such retiring
Property Trustee hereunder.
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In case of the appointment hereunder of a successor Relevant
Trustee, the retiring Relevant Trustee and each successor Relevant Trustee with
respect to the Trust Securities shall execute and deliver an amendment hereto
wherein each successor Relevant Trustee shall accept such appointment and which
(a) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor Relevant Trustee all
the rights, powers, trusts and duties of the retiring Relevant Trustee with
respect to the Trust Securities and the Trust and (b) shall add to or change
any of the provisions of this Trust Agreement as shall be necessary to provide
for or facilitate the administration of the Trust by more than one Relevant
Trustee, it being understood that nothing herein or in such amendment shall
constitute such Relevant Trustees co-trustees if the same trust and that each
such Relevant Trustee shall be Trustee of a trust or trusts hereunder separate
and apart from any trust or trusts hereunder administered by any other such
Relevant Trustee; and upon the execution and delivery of such amendment the
resignation or removal of the retiring Relevant Trustee shall become effective
to the extent provided therein and each such successor Relevant Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Relevant Trustee; but, on
request of the Trust or any successor Relevant Trustee such retiring Relevant
Trustee shall duly assign, transfer and deliver to such successor Relevant
Trustee all Trust Property, all proceeds thereof and money held by such
retiring Relevant Trustee hereunder with respect to the Trust Securities and
the Trust.
Upon request of any such successor Relevant Trustee, the
Trust shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Relevant Trustee all such rights,
powers and trusts referred to in the first or second preceding paragraph, as
the case may be.
No successor Relevant Trustee shall accept its appointment
unless at the time of such acceptance such successor Relevant Trustee shall be
qualified and eligible under this Article.
Upon the appointment and acceptance of a successor to the
Delaware Trustee, such successor Delaware Trustee shall file a certificate of
amendment with the
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Secretary of State identifying the new identity and principal place of business
or residency of such successor Delaware Trustee in the State of Delaware.
Section 8.12. Merger, Conversion, Consolidation or
Succession to Business. Any Person into which the Property Trustee, the
Delaware Trustee or any Administrative Trustee that is not a natural person may
be merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which such Relevant
Trustee shall be a party, or any Person succeeding to all or substantially all
the corporate trust business of such Relevant Trustee, shall be the successor
of such Relevant Trustee hereunder, provided such Person shall be otherwise
qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of any of the parties hereto.
Section 8.13. Preferential Collection of Claims Against
Depositor or Trust. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other similar judicial proceeding relative to the Trust or any other obligor
upon the Trust Securities or the property of the Trust or of such other obligor
or their creditors, the Property Trustee (irrespective of whether any
Distributions on the Trust Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Property Trustee shall have made any demand on the Trust for the payment of any
past due Distributions) shall be entitled and empowered, to the fullest extent
permitted by law, by intervention in such proceeding or otherwise:
(a) to file and prove a claim for the whole amount of
any Distributions owing and unpaid in respect of the Trust Securities
and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Property Trustee
(including any claim for the reasonable compensation, expenses,
disbursements and advances of the Property Trustee, its agents and
counsel) and of the Holders allowed in such judicial proceeding, and
(b) to collect and receive any moneys or other property
payable or deliverable on any such
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claims and to distribute to same; and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Property Trustee and, in the event the
Property Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Property Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of
the Property Trustee, its agents and counsel, and any other amounts
due the Property Trustee.
Nothing herein contained shall be deemed to authorize the
Property Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or compensation
affecting the Trust Securities or the rights of any Holder thereof or to
authorize the Property Trustee to vote in respect of the claim of any Holder in
any such proceeding.
Section 8.14. Reports by Property Trustee. Upon
qualification of this Trust Agreement under the Trust Indenture Act,
(a) Not later than the last calendar day in February of
each year commencing with the last calendar day in February of 2003, the
Property Trustee shall transmit to all Securityholders in accordance with
Section 10.09, and to the Depositor, a brief report dated as of the prior
December 31 with respect to:
(i) its eligibility under Section 8.07 or, in lieu
thereof, if to the best of its knowledge it has continued to be
eligible under said Section, a written statement to such effect; and
(ii) any change in the property and funds in its
possession as Property Trustee since the date of its last report and
any action taken by the Property Trustee in the performance of its
duties hereunder which it has not previously reported and which in its
opinion materially affects the Trust Securities.
(b) In addition, the Property Trustee shall transmit to
Securityholders such reports concerning the
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Property Trustee and its actions under this Trust Agreement as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant thereto.
(c) A copy of each such report shall, at the time of
such transmission to the Holders, be filed with the Commission and with the
Depositor.
Section 8.15. Reports to the Property Trustee. The
Depositor and the Administrative Trustees on behalf of the Trust shall provide
to the Property Trustee such documents, reports and information as required by
Section 314 of the Trust Indenture Act (if any) and the compliance certificate
required by Section 314(a) 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 8.16. Evidence of Compliance with Conditions
Precedent. Each of the Depositor and the Administrative Trustees on behalf of
the Trust shall provide to the Property Trustee such evidence of compliance
with any conditions precedent, if any, provided for in this Trust 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
pursuant to Section 314(c)(1) of the Trust Indenture Act shall be given in the
form of an Officers' Certificate.
Section 8.17. Number of Trustees. (a) The number of
Trustees shall be four; provided that the Holder of all of the Common
Securities by written instrument may increase or decrease the number of
Administrative Trustees. The Property Trustee and the Delaware Trustee may be
the same Person, in which case the number of Trustees shall be three.
(b) If a Trustee ceases to hold office for any reason
and the number of Administrative Trustees is not reduced pursuant to Section
8.17(a), or if the number of Trustees is increased pursuant to Section 8.17(a),
a vacancy shall occur. The vacancy shall be filed with a Trustee appointed in
accordance with Section 8.10.
(c) The death, resignation, retirement, removal,
bankruptcy, incompetence or incapacity to perform the duties of a Trustee shall
not operate to annul the Trust. Whenever a vacancy in the number of
Administrative Trustee shall occur, until such vacancy is filled by the
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appointment of an Administrative Trustee in accordance with Section 8.10, the
Administrative Trustees in office, regardless of their number (and
notwithstanding any other Provision of this Agreement), shall have all the
powers granted to the Administrative Trustees and shall discharge all the
duties imposed upon the Administrative Trustees by this Trust Agreement.
Section 8.18. Delegation of Power. (a) Any Administrative
Trustee may, by power of attorney consistent with applicable law, delegate to
any other natural person over the age of 21 his or her power for the purpose of
executing any documents contemplated in Section 2.07(a), including any
registration statement or amendment thereto filed with the Commission, or
making any other governmental filing; and
(b) The Administrative Trustee shall have power to
delegate from time to time to such of their number or to the Depositor the
doing of such things and the execution of such instruments either in the name
of the Trust or the names of the Administrative Trustees or otherwise as the
Administrative Trustees may deem expedient, to the extent such delegation is
not prohibited by applicable law or contrary to the provisions of this Trust
Agreement, as set forth herein.
ARTICLE IX
Dissolution, Liquidation and Merger
Section 9.01. Dissolution Upon Expiration Date;
Termination Upon Special Event. Unless earlier dissolved, the Trust shall
automatically dissolve on January 28, 2032 (the "Expiration Date"), following
the distribution of the Trust Property in accordance with Section 9.04.
Section 9.02. Early Termination. The first to occur of
any of the following events is an "Early Termination Event" upon the occurrence
of which the Trust shall be dissolved:
(a) the occurrence of a Bankruptcy Event in respect of,
or the dissolution or liquidation of, the Depositor or the Holder of
the Common Securities;
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(b) the written direction to the Property Trustee from
the Depositor, as borrower with respect to the Junior Subordinated
Debt Securities, at any time (which direction is optional and wholly
within the discretion of the Depositor subject to receipt of prior
approval of the Regulatory Authorities if then required under
applicable capital guidelines or policies of the Regulatory
Authorities (including upon the occurrence and continuation of a
Special Event in respect of the Trust)) to dissolve the Trust and,
after satisfaction of liabilities to creditors of the Trust as
provided by applicable law, distribute a Like Amount of the Junior
Subordinated Debt Securities to Securityholders;
(c) the redemption of all of the Trust Securities in
connection with the redemption of all the Junior Subordinated Debt
Securities (including upon the occurrence and continuation of a
Special Event pursuant to Section 11.07 of the Indenture); and
(d) the entry of an order for dissolution of the Trust
by a court of competent jurisdiction.
Section 9.03. Termination. The respective obligations and
responsibilities of the Trustees and the Trust created and continued hereby
shall terminate upon the latest to occur of the following: (a) the payment of
any expenses owed by the Trust, (b) the distribution by the Property Trustee to
Securityholders upon the liquidation of the Trust pursuant to Section 9.04, or
upon the redemption of all of the Trust Securities pursuant to Section 4.02, of
all amounts required to be distributed hereunder upon the final payment of the
Trust Securities, and (c) the discharge of all administrative duties of the
Administrative Trustees, including the performance of any tax reporting
obligations with respect to the Trust or the Securityholders.
Upon completion of the winding up of the affairs of the
Trust, the Property Trustee shall terminate the Trust by filing a certificate
of cancellation with the Secretary of State in accordance with Section 2.07 of
this Trust Agreement.
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Section 9.04. Liquidation. (a) If an Early Termination
Event specified in clause(a), (b) or (d) of Section 9.02 occurs or upon the
Expiration Date, the Trust shall be liquidated by the Trustees as expeditiously
as the Trustees determine to be possible by distributing, after satisfaction of
liabilities to creditors of the Trust as provided by applicable law, to each
Securityholder a Like Amount of Junior Subordinated Debt Securities, subject to
Section 9.04(d). Notice of liquidation shall be given by the Property Trustee
by first-class mail, postage prepaid, mailed not later than 30 nor more than 90
days prior to the Liquidation Date to each Holder at such Holder's address
appearing in the Securities Register. All notices of liquidation shall:
(i) state the Liquidation Date (which in the case of any
liquidation following the occurrence of a Special Event shall not be
more than 90 days following such occurrence);
(ii) state that from and after the Liquidation Date, the
Trust Securities will no longer be deemed to be Outstanding and any
Trust Securities Certificates not surrendered for exchange will be
deemed to represent a Like Amount of Junior Subordinated Debt
Securities; and
(iii) provide such information with respect to the
mechanics by which Holders may exchange Trust Securities Certificates
for Junior Subordinated Debt Securities, or if Section 9.04(d) applies
receive a Liquidation Distribution, as the Administrative Trustees or
the Property Trustee shall deem appropriate.
(b) Except where Section 9.02(c) or 9.04(d) applies, in
order to effect the liquidation of the Trust and distribution of the Junior
Subordinated Debt Securities to Securityholders, the Property Trustee shall
establish a record date for such distribution (which shall be not more than 45
days prior to the Liquidation Date) and, either itself acting as exchange agent
or through the appointment of a separate exchange agent, shall establish such
procedures as it shall deem appropriate to effect the distribution of Junior
Subordinated Debt Securities in exchange for the Outstanding Trust Securities
Certificates.
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(c) Except where Section 9.02(c) or 9.04(d) applies,
after the Liquidation Date, (i) the Trust Securities will no longer be deemed
to be Outstanding, (ii) certificates representing a Like Amount of Junior
Subordinated Debt Securities will be issued to Holders, upon surrender of such
Trust Securities Certificates to the Administrative Trustees or their agent for
exchange, (iii) any Trust Securities Certificates not so surrendered for
exchange will be deemed to represent a Like Amount of Junior Subordinated Debt
Securities accruing interest at the rate provided for in the Junior
Subordinated Debt Securities from the last Distribution Date on which a
Distribution was made on such Trust Securities Certificates until such Trust
Securities Certificates are so surrendered (or until such Trust Securities
Certificates are so surrendered, no payments of interest or principal will be
made to the Holders of Trust Securities Certificates with respect to such
Junior Subordinated Debt Securities) and (iv) all rights of Securityholders
holding Trust Securities will cease, except the right of such Securityholders
to receive Junior Subordinated Debt Securities upon surrender of Trust
Securities Certificates.
(d) In the event that, notwithstanding the other
provisions of this Section 9.04, whether because of an order for dissolution
entered by a court of competent jurisdiction or otherwise, distribution of the
Junior Subordinated Debt Securities in the manner provided herein is determined
by the Property Trustee not to be practical, the Trust Property shall be
liquidated, and the Trust shall be dissolved, wound-up or terminated, by the
Property Trustee in such manner as the Property Trustee determines. In such
event, on the date of the dissolution, winding-up or other termination of the
Trust, Securityholders will be entitled to receive out of the assets of the
Trust available for distribution to Securityholders after satisfaction of
liabilities to creditors of the Trust as provided by applicable law, an amount
equal to the aggregate of Liquidation Amount plus accumulated and unpaid
Distributions thereon to the date of payment (such amount being the
"Liquidation Distribution"). If, upon any such dissolution, winding up or
termination, the Liquidation Distribution can be paid only in part because the
Trust has insufficient assets available to pay in full the aggregate
Liquidation Distribution, then, subject to the next succeeding sentence, the
amounts payable by the Trust on the Trust Securities shall be paid on a pro
rata basis
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(based upon Liquidation Amounts). Holders of the Common Securities will be
entitled to receive Liquidation Distributions upon any such dissolution,
winding-up or termination pro rata (determined as aforesaid) with Holders of
Preferred Securities, except that, if a Debenture Event of Default (or an event
that, with notice or the passage of time, or both, would become such a
Debenture Event of Default) has occurred and is continuing, the Preferred
Securities shall have a priority over the Common Securities with respect to any
such Liquidation Distribution, and no payments shall be made with respect to
the Common Securities until Holders of Preferred Securities have been paid in
full. Any such determination and liquidation by the Property Trustee shall be
conclusive upon the Securityholders and the Property Trustee shall have no
liability in connection therewith. Upon the completion of such liquidation of
the Trust, the Property Trustee shall terminate the Trust by filing a
certificate of cancellation with the Secretary of Sate in accordance with
Section 2.07.
Section 9.05. Mergers, Consolidations, Amalgamations or
Replacements of the Trust. The Trust may not merge with or into, consolidate,
amalgamate, or be replaced by, or convey, transfer or lease all or
substantially all of its properties and assets substantially as an entirety to
any Person, except pursuant to Section 9.04 and this Section 9.05. At the
request of the Depositor, with the consent of the Administrative Trustees and
without the consent of the Holders of the Preferred Securities, the Property
Trustee or the Delaware Trustee, the Trust may merge with or into, consolidate,
amalgamate, or be replaced by or convey, transfer or lease all or substantially
all of its properties and assets substantially as an entirety to a trust
organized as such under the laws of any State; provided, however, that (i) such
successor entity either (a) expressly assumes all of the obligations of the
Trust with respect to the Trust Securities or (b) substitutes for the Trust
Securities other securities having substantially the same terms as the Trust
Securities (the "Successor Securities") so long as the Successor Securities
rank the same as the Trust Securities rank in priority with respect to
Distributions and payments upon liquidation, redemption and otherwise, (ii) the
Depositor expressly appoints a trustee of such successor entity possessing the
same powers and duties as the Property Trustee as the holder of the Junior
Subordinated Debt Securities, (iii) the Successor
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Securities (if Preferred Securities) are listed or traded, or any Successor
Securities will be listed or traded upon notification of issuance, on any
national securities exchange or other organization on which the Preferred
Securities are then listed or traded, if any, (iv) such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not cause the
Trust Securities (including any Successor Securities) or, if so rated, the
Junior Subordinated Debt Securities, to be downgraded by any nationally
recognized statistical rating organization, (v) such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not adversely
affect the rights, preferences and privileges of the holders of the Trust
Securities (including any Successor Securities) in any material respect, (vi)
such successor entity has a purpose substantially identical and limited to that
of the Trust, (vii) prior to such merger, consolidation, amalgamation,
replacement, conveyance, transfer or lease, the Depositor has received an
Opinion of Counsel to the effect that (a) such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not adversely
affect the rights, preferences and privileges of the holders of the Trust
Securities (including any Successor Securities) in any material respect, and
(b) following such merger, consolidation, amalgamation, replacement,
conveyance, transfer or lease, neither the Trust nor such successor entity will
be required to register as an investment company under the 1940 Act and (viii)
the Depositor or any permitted successor or assignee owns all of the common
securities of such successor entity and guarantees the obligations of such
successor entity under the Successor Securities at least to the extent provided
by the Guarantee Agreement. Notwithstanding the foregoing, the Trust shall not,
except with the consent of holders of 100% in Liquidation Amount of the Trust
Securities, consolidate, amalgamate, merge with or into, or be replaced by or
convey, transfer or lease its properties and assets substantially as an
entirety to any other entity or permit any other Person to consolidate,
amalgamate, merge with or into, or replace it if such consolidation,
amalgamation, merger, replacement, conveyance, transfer or lease would cause
the Trust or the successor entity to be classified as other than a grantor
trust for United States federal income tax purposes.
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ARTICLE X
Miscellaneous Provisions
Section 10.01. Limitation of Rights of Securityholders.
The death, incapacity, liquidation, dissolution, termination or bankruptcy of
any Person having an interest, beneficial or otherwise, in Trust Securities
shall not operate to terminate this Trust Agreement nor annul, dissolve or
terminate the Trust, nor entitle the legal representatives or heirs of such
Person or any Securityholder for such Person, to claim an accounting, take any
action or bring any proceeding in any court for a partition or winding-up of
the arrangements contemplated hereby, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.
Section 10.02. Liability of the Depositor. The Depositor,
as borrower with respect to the Junior Subordinated Debt Securities, shall be
liable for all the debts and obligations of the Trust (other than with respect
to payments of principal, interest, or premium, if any, on the Trust
Securities) to the extent not satisfied out of the Trust's assets.
Section 10.03. Amendment. This Trust Agreement may be
amended from time to time by the Property Trustee, the Administrative Trustees
and the Depositor, without the consent of any Securityholders (i) to cure any
ambiguity, correct or supplement any provision herein which may be inconsistent
with any other provision herein, or to make any other provisions with respect
to matters or questions arising under this Trust Agreement, which shall not be
inconsistent with the other provisions of this Trust Agreement; or (ii) to
modify, eliminate or add to any provisions of this Trust Agreement to such
extent as shall be necessary to ensure that the Trust will be classified for
United States federal income tax purposes as a grantor trust at all times that
any Trust Securities are Outstanding or to ensure that the Trust will not be
required to register as an investment company under the 1940 Act; provided,
however, that in the case of clause(i) , such action shall not adversely affect
in any material respect the interests of any Securityholder, and any such
amendments of this Trust Agreement shall become effective when notice thereof
is given to the Securityholders.
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Except as provided in Section 10.03(c) hereof, any provision
of this Trust Agreement may be amended by the Trustees and the Depositor with
(i) the consent of Securityholders representing not less than a majority (based
upon Liquidation Amounts) of the Trust Securities then Outstanding and (ii)
receipt by the Trustees of an Opinion of Counsel to the effect that such
amendment or the exercise of any power granted to the Trustees in accordance
with such amendment will not affect the Trust's status as a grantor trust for
United States federal income tax purposes or the Trust's exemption from status
of an investment company under the 1940 Act.
(c) In addition to and notwithstanding any other
provision in this Trust Agreement, without the consent of each affected
Securityholder (such consent being obtained in accordance with Section 6.03 or
6.08 hereof), this Trust Agreement may not be amended to (i) change the amount
or timing of any Distribution on the Trust Securities or otherwise adversely
affect the amount of any Distribution required to be made in respect of the
Trust Securities as of a specified date or (ii) restrict the right of a
Securityholder to institute suit for the enforcement of any such payment on or
after such date. Notwithstanding any other provision herein, without the
unanimous consent of the Securityholders (such consent being obtained in
accordance with Section 6.03 or 6.08 hereof), this paragraph(c) of this Section
10.03 may not be amended.
(d) Notwithstanding any other provisions of this Trust
Agreement, no Trustee shall enter into or consent to any amendment to this
Trust Agreement which would cause the Trust to fail or cease to qualify for the
exemption from status of an investment company under the 1940 Act or fail or
cease to be classified as a grantor trust for United States federal income tax
purposes.
(e) Notwithstanding anything in this Trust Agreement to
the contrary, without the consent of the Depositor this Trust Agreement may not
be amended in a manner which imposes any additional obligation on the
Depositor.
(f) Notwithstanding any other provision of this Trust
Agreement, no amendment to this Trust Agreement may be made if, as a result of
such amendment, it would cause the Trust to fail to be classified as a grantor
trust for United States federal income tax purposes.
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(g) In the event that any amendment to this Trust
Agreement is made, the Administrative Trustees shall promptly provide to the
Depositor a copy of such amendment.
(h) Neither the Property Trustee nor the Delaware
Trustee shall be required to enter into any amendment to this Trust Agreement
which affects its own rights, duties or immunities under this Trust Agreement
or would otherwise expose the Property Trustee to any liability or be contrary
to applicable law. The Property Trustee shall be entitled to receive an Opinion
of Counsel and an Officers' Certificate stating that any amendment to this
Trust Agreement is in compliance with this Trust Agreement.
(i) The Property Trustee shall provide to the Depositor
copies of any amendments to this Trust Agreement which would necessitate an
amendment to the Certificate of Trust to be filed with the Secretary of State.
Section 10.04. Separability. In case any provision in this
Trust Agreement or in the Trust Securities Certificates shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.
Section 10.05. Governing Law. This Trust Agreement and the
rights and obligations of each of the Securityholders, the Trust and the
Trustees with respect to this Trust Agreement and the Trust Securities shall be
construed in accordance with and governed by the laws of the State of Delaware
without regard to its conflict of laws principles. The provisions of Sections
3540 and 3561 of Title 12 of the Delaware Code shall not apply to this Trust.
Section 10.06. Payments Due on Non-Business Day. If the
date fixed for any payment on any Trust Security shall be a day that is not a
Business Day, then such payment need not be made on such date but may be made
on the next succeeding day that is a Business Day (except as otherwise provided
in Section 4.02(d)), with the same force and effect as though made on the date
fixed for such payment, and no interest shall accrue thereon for the period
after such date.
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Section 10.07. Successors. This Trust Agreement shall be
binding upon and shall inure to the benefit of any successor to the Depositor,
the Trust or the Relevant Trustee, including any successor by operation of law.
Except in connection with a consolidation, merger or sale involving the
Depositor that is permitted under Article VI of the Indenture and pursuant to
which the assignee agrees in writing to perform the Depositor's obligations
hereunder, the Depositor shall not assign its obligations hereunder.
Section 10.08. Headings. The Article and Section headings
are for convenience only and shall not affect the construction of this Trust
Agreement.
Section 10.09. Reports, Notices and Demands. Any report,
notice, demand or other communication which by any provision of this Trust
Agreement is required or permitted to be given or served to or upon any
Securityholder or the Depositor may be given or served in writing by deposit
thereof, first class postage prepaid, in the United States mail, hand delivery
or facsimile transmission, in each case, addressed, (a) in the case of a
Preferred Securityholder, to such Preferred Securityholder as such
Securityholder's name and address may appear on the Securities Register, and
(b) in the case of the Common Securityholder or the Depositor, to BancorpSouth,
Inc., One Mississippi Plaza, Tupelo, Mississippi 38801, Attention: Cathy S.
Freeman, Secretary, facsimile no.: (662) 680-2568, with a copy (which shall not
constitute notice) to Waller Lansden Dortch & Davis PLLC, 511 Union Street,
Suite 2100, Nashville, Tennessee 37219, Attention: Ralph W. Davis, facsimile
no.: (615) 244-6804. Any notice to Preferred Securityholders may also be given
to such owners as have, within two years preceding the giving of such notice,
filed their names and addresses with the Property Trustee for that purpose.
Such notice, demand or other communication to or upon a Securityholder shall be
deemed to have been sufficiently given or made, for all purposes, upon hand
delivery, mailing or transmission.
Any notice, demand or other communication which by any
provision of this Trust Agreement is required or permitted to be given or
served to or upon the Trust, the Property Trustee, the Delaware Trustee or the
Administrative Trustees shall be given in writing addressed (until another
address is published by the Trust) as follows: (a) with respect to the Property
Trustee to The Bank of New York, 5 Penn Plaza, 13th Floor, New York, New York
10001, Attention: Corporate Trust Administration; (b) with respect to the
Delaware Trustee to The
77
Bank of New York (Delaware), White Clay Center, Route 273, Newark, Delaware
19711, Attention: Corporate Trust Administration; and (c) with respect to the
Administrative Trustees, to them at the address above for notices to the
Depositor, marked "Attention: Office of the Secretary". Such notice, demand or
other communication to or upon the Trust or the Property Trustee shall be
deemed to have been sufficiently given or made only upon actual receipt of the
writing by the Trust or the Property Trustee.
Section 10.10. Agreement Not to Petition. Each of the
Trustees and the Depositor agree for the benefit of the Securityholders that,
until at least one year and one day after the Trust has been terminated in
accordance with Article IX, they shall not file, or join in the filing of, a
petition against the Trust under any bankruptcy, insolvency, reorganization or
other similar law (including, without limitation, the United States Bankruptcy
Code) (collectively, "Bankruptcy Laws") or otherwise join in the commencement
of any proceeding against the Trust under any Bankruptcy Laws. In the event the
Depositor takes action in violation of this Section 10.10, the Property Trustee
agrees, for the benefit of Securityholders, that at the expense of the
Depositor, it shall file an answer with the bankruptcy court or otherwise
properly contest the filing of such petition by the Depositor against the Trust
or the commencement of such action and raise the defense that the Depositor has
agreed in writing not to take such action and should be estopped and precluded
therefrom and such other defenses, if any, as counsel for the Trustee or the
Trust may assert. The provisions of this Section 10.10 shall survive the
termination of this Trust Agreement.
Section 10.11. Trust Indenture Act; Conflict with Trust
Indenture Act. (a) This Trust Agreement is subject to the provisions of the
Trust Indenture Act that are required to be part of this Trust Agreement and
shall, to the extent applicable, be governed by such provisions.
(b) The Property Trustee shall be the only Trustee which
is a trustee for the purposes of the Trust Indenture Act.
78
(c) If any provision hereof limits, qualifies or
conflicts with another provision hereof which is required to be included in
this Trust Agreement by any of the provisions of the Trust Indenture Act, such
required provision shall control. If any provision of this Trust 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
Trust Agreement as so modified or excluded, as the case may be.
(d) The application of the Trust Indenture Act to this
Trust Agreement shall not affect the nature of the Securities as equity
securities representing undivided beneficial interests in the assets of the
Trust.
Section 10.12. Acceptance of Terms of Trust Agreement,
Guarantee Agreement and Indenture. THE RECEIPT AND ACCEPTANCE OF A TRUST
SECURITY OR ANY INTEREST THEREIN BY OR ON BEHALF OF A SECURITYHOLDER OR ANY
BENEFICIAL OWNER, WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT,
SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE SECURITYHOLDER AND ALL
OTHERS HAVING A BENEFICIAL INTEREST IN SUCH TRUST SECURITY OF ALL THE TERMS AND
PROVISIONS OF THIS TRUST AGREEMENT AND AGREEMENT TO THE SUBORDINATION
PROVISIONS AND OTHER TERMS OF THE GUARANTEE AND THE INDENTURE, AND SHALL
CONSTITUTE THE AGREEMENT OF THE TRUST, SUCH SECURITYHOLDER AND SUCH OTHERS THAT
THE TERMS AND PROVISIONS OF THIS TRUST AGREEMENT SHALL BE BINDING, OPERATIVE
AND EFFECTIVE AS BETWEEN THE TRUST AND SUCH SECURITYHOLDER AND SUCH OTHERS.
79
IN WITNESS WHEREOF, the parties hereto have caused this Trust
Agreement to be duly executed as of the day and year first written above.
BANCORPSOUTH, INC., Depositor
By: /s/ L. Nash Allen, Jr.
----------------------------------------
Name: L. Nash Allen, Jr.
Title: Treasurer and CFO
THE BANK OF NEW YORK, as Property Trustee
and not in its individual capacity
By: /s/ Robert A. Massimillo
----------------------------------------
Name: ROBERT A. MASSIMILLO
Title: VICE PRESIDENT
THE BANK OF NEW YORK (DELAWARE), as
Delaware Trustee and not in its individual
capacity
By: /s/ William T. Lewis
----------------------------------------
Name: William T. Lewis
Title: SVP
/s/ Aubrey B. Patterson
-------------------------------------------
Aubrey B. Patterson, as Administrative
Trustee and not in his individual capacity
/s/ L. Nash Allen, Jr.
-------------------------------------------
L. Nash Allen, Jr., as Administrative
Trustee and not in his individual capacity
EXHIBIT A
AMENDED AND RESTATED
CERTIFICATE OF TRUST OF
BANCORPSOUTH CAPITAL TRUST I
THIS Amended and Restated Certificate of Trust of
BancorpSouth Capital Trust I (the "Trust"), dated as of January 28, 2002, is
being duly executed and filed by the undersigned, as trustees, to amend and
restate the Certificate of Trust of the Trust, which was filed with the
Secretary of State of the State of Delaware on August 22, 1997, under the
Delaware Business Trust Act (12 Del. C.ss.3801 et seq.) (the "Act").
The Original Certificate of Trust of the Trust is hereby
amended and restated in its entirety, pursuant to Section 3810(c)(1) of the
Act, to read as follows:
1. Name. The name of the business trust formed hereby
is BancorpSouth Capital Trust I.
2. Delaware Trustee. The name and business address of
the trustee of the Trust in the State of Delaware are The Bank of New York
(Delaware), White Clay Center, Route 273, Newark, Delaware 19711.
3. Effective Date. This Amended and Restated
Certificate of Trust shall be effective upon filing.
IN WITNESS WHEREOF, the undersigned, being the trustees of
the Trust, have duly executed this Amended and Restated Certificate of Trust in
accordance with Section 3811(a)(2) of the Act.
THE BANK OF NEW YORK (DELAWARE), not in its
individual capacity but solely as trustee
of the Trust
By: /s/ William T. Lewis
----------------------------------------
Name: William T. Lewis
Title: SVP
2
THE BANK OF NEW YORK, not in its individual
capacity but solely as trustee of the Trust
By: /s/ Robert A. Massimillo
----------------------------------------
Name: ROBERT A. MASSIMILLO
Title: VICE PRESIDENT
/s/ Aubrey B. Patterson
-------------------------------------------
AUBREY B. PATTERSON, not in his individual
capacity but solely as trustee of the Trust
/s/ L. Nash Allen, Jr.
-------------------------------------------
L. NASH ALLEN, JR., not in his individual
capacity but solely as trustee of the Trust
EXHIBIT B
IF THE PREFERRED SECURITIES CERTIFICATE IS TO BE A GLOBAL
PREFERRED SECURITIES CERTIFICATE, INSERT--[THIS PREFERRED SECURITIES
CERTIFICATE IS A GLOBAL PREFERRED SECURITIES CERTIFICATE WITHIN THE MEANING OF
THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF
THE DEPOSITORY TRUST COMPANY (THE "DEPOSITARY") OR A NOMINEE OF THE DEPOSITARY.
THIS PREFERRED SECURITIES CERTIFICATE IS EXCHANGEABLE FOR PREFERRED SECURITIES
CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT
AND NO TRANSFER OF THIS PREFERRED SECURITIES CERTIFICATE (OTHER THAN A TRANSFER
OF THIS PREFERRED SECURITIES CERTIFICATE AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT.
UNLESS THIS PREFERRED SECURITIES CERTIFICATE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET,
NEW YORK) TO BANCORPSOUTH CAPITAL TRUST I OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITIES CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT
HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY A PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
The Preferred Securities are issued, any may be transferred,
only in blocks having a Liquidation Amount of not less than $25.00 and integral
multiples thereof.
LIQUIDATION AMOUNT OF
CERTIFICATE NUMBER
PREFERRED SECURITIES
CUSIP NO. [ ]
CERTIFICATE EVIDENCING PREFERRED SECURITIES
OF
BANCORPSOUTH CAPITAL TRUST I
8.15% TRUST PREFERRED SECURITIES (TRUPS(R))
(Liquidation Amount $25.00 per Preferred Security)
BancorpSouth Capital Trust I, a statutory business trust
created under the laws of the State of Delaware (the "Trust"), hereby certifies
that Cede & Co. (the "Holder") is the registered owner of ________________ ( )
Preferred Securities of the Trust representing a preferred, undivided
beneficial interest in the assets of Trust and designated BancorpSouth Capital
Trust I Trust Preferred Securities (Liquidation Amount $25.00 per Preferred
Security) (the "Preferred Securities"). The Preferred Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer as provided in Section 5.05 of the Trust Agreement (as
defined below). The designations, rights, privileges, restrictions, preferences
and other terms and provisions of the Preferred Securities are set forth in,
and this certificate and the Preferred Securities presented hereby are issued
and shall in all respects be subject to the terms and provisions of, the Second
Amended and Restated Trust Agreement of the Trust dated as of January 28, 2002,
as the same may be amended from time to time (the "Trust Agreement") among
BancorpSouth, Inc., as Depositor, The Bank of New York, as Property Trustee,
The Bank of New York (Delaware), as Delaware Trustee, the Administrative
Trustees named therein, and the holders, from time to time, of undivided
beneficial interests in the assets of the Trust, including the designation of
the terms of Preferred Securities as set forth therein. The Holder is entitled
to the benefits of the Guarantee Agreement entered into by BancorpSouth, Inc.,
a Mississippi corporation, and The Bank of New York, as Guarantee Trustee,
dated as of January 28, 2002 (the "Guarantee Agreement"), to the extent
provided therein. The Trust will furnish a copy of the Trust Agreement and the
Guarantee Agreement to the Holder without charge upon
2
written request to the Trust at its principal place of business or registered
office.
Terms used but not defined herein have the meanings set forth
in the Trust Agreement. The Trust Agreement and this Preferred Security shall
be governed by and construed in accordance with the laws of the State of
Delaware without regard to conflicts of laws principles thereof.
Upon receipt of this certificate, the Holder is bound by the
Trust Agreement and is entitled to benefits thereunder.
IN WITNESS WHEREOF, one of the Administrative Trustees of the
Trust has executed this Certificate this [] day of [ ].
BANCORPSOUTH CAPITAL TRUST I
By:
----------------------------------------
Name:
--------------------------------------
Title: Administrative Trustee
COUNTERSIGNED AND REGISTERED:
THE BANK OF NEW YORK, as Property Trustee
By:
----------------------------------------
Authorized Signatory
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned assigns and transfers
this Preferred Security to:
(Insert assignee's social security or tax identification number)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(Insert address and zip code of assignee)
and irrevocably appoints
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
agent to transfer this Preferred Security Certificate on the books of the
Trust. The agent may substitute another to act for him or her.
Date:
------------------
Signature
---------------------------------------------------------------------
(Sign exactly as your name appears on the other side of this
Preferred Security Certificate)
The signature(s) should be guaranteed by an eligible
guarantor institution (banks, stockbrokers, savings and loan associations and
credit unions with membership in an approved signature guarantee medallion
program), pursuant to SEC Rule 17 Ad-15.
EXHIBIT C
THIS CERTIFICATE IS NOT TRANSFERABLE
EXCEPT AS PROVIDED IN THE TRUST AGREEMENT
LIQUIDATION AMOUNT
COMMON
OF CERTIFICATE NUMBER
SECURITIES
Certificate Evidencing Common Securities
of
BancorpSouth Capital Trust I
8.15% Common Securities
(Liquidation Amount $25.00 per Common Security)
BancorpSouth Capital Trust I, a statutory business trust
created under the laws of the State of Delaware (the "Trust"), hereby certifies
that BancorpSouth, Inc. (the "Holder") is the registered owner of [ ] common
securities of the Trust representing common, beneficial interests of the Trust
and designated the 8.15% Common Securities of the Trust (Liquidation Amount
$25.00 per Common Security) (the "Common Securities"). Except as provided in
Section 5.11 of the Trust Agreement (as defined below) the Common Securities
are not transferable and any attempted transfer hereof shall be void. The
designations, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities are set forth in, and this certificate and
the Common Securities represented hereby are issued and shall in all respects
be subject to the terms and provisions of, the Second Amended and Restated
Trust Agreement of the Trust dated as of January 28, 2002, as the same may be
amended from time to time (the "Trust Agreement") among BancorpSouth, Inc., as
Depositor, The Bank of New York, as Property Trustee, The Bank of New York
(Delaware), as Delaware Trustee, the Administrative Trustees named therein, and
the holders, from time to time, of undivided beneficial interests in the assets
of the Trust, including the designation of the terms of the Common Securities
as set forth therein. The Trust will furnish a copy of the Trust Agreement to
the Holder without charge upon written request to the Trust at its principal
place of business or registered office.
2
Terms used but not defined herein have the meanings set forth
in the Trust Agreement. The Trust Agreement and this Common Security shall be
governed by and construed in accordance with the laws of the State of Delaware
without regard to conflicts of laws principles thereof.
Upon receipt of this certificate, the Holder is bound by the
Trust Agreement and is entitled to the benefits thereunder.
IN WITNESS WHEREOF, one of the Administrative Trustees of the
Trust has executed this certificate this day of .
BANCORPSOUTH CAPITAL TRUST I
By:
----------------------------------------
Name:
-----------------------------------
Title: Administrative Trustee
COUNTERSIGNED AND REGISTERED: THE BANK OF
NEW YORK, as Property Trustee
By:
----------------------------------------
Authorized Signatory