<PAGE>
Exhibit 4.12
------------
-----------------------------------------------
FORM OF
AMENDED AND RESTATED DECLARATION
OF TRUST
DEVON FINANCING TRUST II
Dated as of _______________
-----------------------------------------------
<PAGE>
CROSS-REFERENCE TABLE*
<TABLE>
<CAPTION>
Section of
Trust Indenture Act Section of
of 1939, as amended Declaration
------------------- -----------
<S> <C>
310(a)................................................................................................ 5.3(a)
310(b)................................................................................................ 5.3(c), 5.3(d)
310(c)................................................................................................ Inapplicable
311(a)................................................................................................ 2.2(b)
311(b)................................................................................................ 2.2(b)
311(c)................................................................................................ Inapplicable
312(a)................................................................................................ 2.2(a)
312(b)................................................................................................ 2.2(b)
312(c)................................................................................................ Inapplicable
313(a)................................................................................................ 2.3
313(b)................................................................................................ 2.3
313(c)................................................................................................ 2.3
313(d)................................................................................................ 2.3
314(a)................................................................................................ 2.4, 2.7, 3.6(e)
314(b)................................................................................................ Inapplicable
314(c)................................................................................................ 2.5
314(d)................................................................................................ Inapplicable
314(e)................................................................................................ 2.5
314(f)................................................................................................ Inapplicable
315(a)................................................................................................ 3.9(b), 3.10(a)
315(b)................................................................................................ 2.7(a)
315(c)................................................................................................ 3.9(a)
315(d)................................................................................................ 3.9(b)
</TABLE>
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<TABLE>
<S> <C>
316(a)................................................................................................ 2.6
316(b)................................................................................................ 2.6
316(c)................................................................................................ 3.6(e)
317(a)................................................................................................ 3.8(h)
317(b)................................................................................................ 3.8(c), 7.2(a)
318................................................................................................... 2.1(c)
</TABLE>
_____________________
*This Cross-Reference table does not constitute part of the Declaration and
shall not affect the interpretation of any of its terms or provisions.
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TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
ARTICLE I INTERPRETATION AND DEFINITIONS................................................................. 1
SECTION 1.1 Definitions......................................................................... 1
ARTICLE II TRUST INDENTURE ACT........................................................................... 7
SECTION 2.1 Trust Indenture Act: Application.................................................... 7
SECTION 2.2 Lists of Holders of Securities...................................................... 7
SECTION 2.3 Reports by the Property Trustee..................................................... 8
SECTION 2.4 Periodic Reports to Property Trustee................................................ 8
SECTION 2.5 Evidence of Compliance with Conditions Precedent.................................... 8
SECTION 2.6 Events of Default; Waiver........................................................... 8
SECTION 2.7 Event of Default: Notice............................................................ 10
ARTICLE III ORGANIZATION................................................................................. 11
SECTION 3.1 Name................................................................................ 11
SECTION 3.2 Office.............................................................................. 11
SECTION 3.3 Purpose............................................................................. 11
SECTION 3.4 Authority........................................................................... 11
SECTION 3.5 Title to Property of the Trust...................................................... 11
SECTION 3.6 Powers and Duties of the Administrative Trustees.................................... 11
SECTION 3.7 Prohibition of Actions by the Trust and the Trustees................................ 14
SECTION 3.8 Powers and Duties of the Property Trustee........................................... 15
SECTION 3.9 Certain Duties and Responsibilities of the Property Trustee......................... 17
SECTION 3.10 Certain Rights of Property Trustee.................................................. 18
SECTION 3.11 Delaware Trustee.................................................................... 20
SECTION 3.12 Not Responsible for Recitals or Issuance of Securities.............................. 20
SECTION 3.13 Duration of Trust................................................................... 20
SECTION 3.14 Mergers............................................................................. 20
ARTICLE IV SPONSOR....................................................................................... 22
SECTION 4.1 Sponsor's Purchase of Common Securities............................................. 22
SECTION 4.2 Covenants of the Sponsor............................................................ 22
SECTION 4.3 Rights and Responsibilities of the Sponsor.......................................... 22
SECTION 4.4 Right to Proceed.................................................................... 23
SECTION 4.5 Expenses............................................................................ 23
ARTICLE V TRUSTEES....................................................................................... 24
SECTION 5.1 Number of Trustees.................................................................. 24
SECTION 5.2 Delaware Trustee.................................................................... 24
SECTION 5.3 Property Trustee; Eligibility....................................................... 24
SECTION 5.4 Certain Qualifications of Administrative Trustees and Delaware Trustee Generally.... 25
SECTION 5.5 Administrative Trustees............................................................. 25
SECTION 5.6 Appointment, Removal and Resignation of Trustees.................................... 25
SECTION 5.7 Vacancies among Trustees............................................................ 27
SECTION 5.8 Effect of Vacancies................................................................. 27
SECTION 5.9 Meetings............................................................................ 27
SECTION 5.10 Delegation of Power................................................................. 28
SECTION 5.11 Merger, Conversion, Consolidation or Succession to Business......................... 28
ARTICLE VI DISTRIBUTIONS................................................................................. 28
SECTION 6.1 Distributions....................................................................... 28
ARTICLE VII ISSUANCE OF SECURITIES....................................................................... 29
SECTION 7.1 General Provisions Regarding Securities............................................. 29
SECTION 7.2 Paying Agent and Registrar.......................................................... 32
ARTICLE VIII TERMINATION OF TRUST........................................................................ 32
SECTION 8.1 Termination of Trust................................................................ 32
ARTICLE IX TRANSFER OF INTERESTS......................................................................... 33
SECTION 9.1 Transfer of Securities.............................................................. 33
SECTION 9.2 Transfer or Exchange of Certificates................................................ 33
SECTION 9.3 Deemed Security Holders............................................................. 34
SECTION 9.4 Book Entry Interests................................................................ 34
</TABLE>
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<TABLE>
<S> <C>
SECTION 9.5 Notices to Clearing Agency....................................................... 35
SECTION 9.6 Appointment of Successor Clearing Agency......................................... 35
SECTION 9.7 Definitive Trust Preferred Security Certificate.................................. 35
SECTION 9.8 Mutilated, Destroyed, Lost or Stolen Certificates................................ 35
ARTICLE X LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS........................ 36
SECTION 10.1 Liability........................................................................ 36
SECTION 10.2 Exculpation...................................................................... 36
SECTION 10.3 Fiduciary Duty................................................................... 37
SECTION 10.4 Indemnification.................................................................. 37
SECTION 10.5 Outside Business................................................................. 39
SECTION 10.6 Trustee's Fees and Expenses...................................................... 40
ARTICLE XI ACCOUNTING......................... 40
SECTION 11.1 Fiscal Year...................................................................... 40
SECTION 11.2 Certain Accounting Matters....................................................... 40
SECTION 11.3 Banking.......................................................................... 41
SECTION 11.4 Withholding...................................................................... 41
ARTICLE XII AMENDMENTS AND MEETINGS................................................................... 41
SECTION 12.1 Amendments....................................................................... 41
SECTION 12.2 Meetings of the Holders of Securities; Action by Written Consent................. 43
ARTICLE XIII REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE................................. 44
SECTION 13.1 Representations and Warranties of Property Trustee............................... 44
SECTION 13.2 Representations and Warranties of Delaware Trustee............................... 45
ARTICLE XIV MISCELLANEOUS............................................................................. 45
SECTION 14.1 Notices.......................................................................... 45
SECTION 14.2 Governing Law.................................................................... 46
SECTION 14.3 Intention of the Parties......................................................... 46
SECTION 14.4 Headings......................................................................... 47
SECTION 14.5 Successors and Assigns........................................................... 47
SECTION 14.6 Partial Enforceability........................................................... 47
SECTION 14.7 Entire Agreement................................................................. 47
SECTION 14.8 Remedies......................................................................... 47
SECTION 14.9 Counterparts..................................................................... 47
</TABLE>
ii
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FORM OF
AMENDED AND RESTATED
DECLARATION OF TRUST
OF
DEVON FINANCING TRUST II
[date]
AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") dated and
effective as of _____________________, by the Trustees (as defined herein), for
the benefit of the Holders (as defined herein), and the Sponsor (as defined
herein).
WHEREAS, the Trustees and the Sponsor established Devon Financing Trust II
(the "Trust"), a trust under the Delaware Business Trust Act pursuant to a
Restated Declaration of Trust dated as of October 13, 2000 (the "Original
Declaration"), and a Corrected Certificate of Trust filed with the Secretary of
State of the State of Delaware on November 15, 2000;
WHEREAS, prior to the date hereof, no Securities (as defined herein) have
been issued;
WHEREAS, all of the Trustees and the Sponsor, by this Declaration, amend
and restate each and every term and provision of the Original Declaration; and
NOW, THEREFORE, it being the intention of the parties hereto to continue
the Trust as a business trust under the Business Trust Act and that this
Declaration constitute the governing instrument of such business trust, in
consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt of which is hereby acknowledged, the
parties, intending to be legally bound, hereby agree as follows.
ARTICLE I
INTERPRETATION AND DEFINITIONS
SECTION 1.1 Definitions.
Unless the context otherwise requires:
(a) Capitalized terms used in this Declaration but not defined in the
preamble above have the respective meanings assigned to them in this Section
1.1;
(b) a term defined anywhere in this Declaration has the same meaning
throughout;
(c) all references to "the Declaration" or "this Declaration" are to this
Declaration as modified, supplemented or amended from time to time, and include
Exhibits to this Declaration;
(d) all references in this Declaration to Articles and Sections and
Annexes and Exhibits are to Articles and Sections of and Annexes and Exhibits to
this Declaration unless otherwise specified;
(e) a term defined in the Trust Indenture Act, either directly or by
reference therein, has the same meaning when used in this Declaration unless
otherwise defined in this Declaration or unless the context otherwise requires;
and
(f) a reference to the singular includes the plural and vice versa.
(g) the words "include," "includes" and "including" shall be deemed to be
followed by the phrase "without limitation;"
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(h) all accounting terms used by not defined herein have the meanings
assigned to them in accordance with United States generally accepted accounting
principles as in effect at the time of computation; and
(i) the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Declaration as a whole and not to any particular
Article, Section, Exhibit or other subdivision.
"Administrative Trustee" has the meaning set forth in Section 5.1.
"Affiliate" has the same meaning as given to that term in Rule 405 of the
Securities Act or any successor rule thereunder.
"Agent" means any Paying Agent or Registrar.
"Authorized Newspaper" means a daily newspaper, in the English language,
customarily published on each day that is a Business Day in The City of New York
and of general circulation in The City of New York.
"Authorized Officer" of a Person means any Person that is authorized to
bind such Person.
"Book Entry Interest" means a beneficial interest in a Global Certificate
registered in the name of a Clearing Agency or its nominee, ownership and
transfers of which shall be maintained and made through book entries by a
Clearing Agency as described in Section 9.4.
"Business Day" means any day other than a Saturday, Sunday or any other day
on which banking institutions in New York, New York are permitted or required by
any applicable law to close.
"Business Trust Act" means Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code Section 3801 et seq., as it may be amended from time to time, or any
successor legislation.
"Certificate" means a Common Security Certificate or a Trust Preferred
Security Certificate.
"Clearing Agency" means an organization registered as a "Clearing Agency"
pursuant to Section 17A of the Exchange Act that is acting as depositary for the
Trust Preferred Securities and in whose name or in the name of a nominee of that
organization shall be registered a Global Certificate and which shall undertake
to effect book entry transfers and pledges of the Trust Preferred Securities.
"Clearing Agency Participant" means a broker, dealer, bank, other financial
institution or other Person for whom from time to time the Clearing Agency
effects book entry transfers and pledges of securities deposited with the
Clearing Agency. Unless otherwise specified in the Terms and Conditions, DTC
shall be the initial Clearing Agency.
"Closing Date" means the "Closing Time" and each "Date of Delivery," if
any, under the Underwriting Agreement.
"Code" means the Internal Revenue Code of 1986, as amended from time to
time, or any successor legislation.
"Commission" means the Securities and Exchange Commission, as from time to
time constituted and existing under the Exchange Act, or, if at any time after
the execution of this instrument such commission is not existing and performing
the duties
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now assigned to it under the Trust Indenture Act, then the body performing such
duties at such time.
"Common Security" has the meaning specified in Section 7.1.
"Common Securities Guarantee" means the guarantee agreement to be dated as
of the date hereof and executed and delivered by the Sponsor and
_____________________, as trustee, for the benefit of the Holders of the Common
Securities, as such agreement may be modified, supplemented or amended from time
to time.
"Common Security Certificate" means a definitive certificate in fully
registered form representing a Common Security, which shall be prepared by the
Sponsor and a specimen of which shall be substantially in the form of Exhibit A-
2.
"Company Indemnified Person" means (a) any Administrative Trustee; (b) any
Affiliate of any Administrative Trustee; (c) any officers, directors,
shareholders, members, partners, employees, representatives or agents of any
Administrative Trustee; or (d) any officer, employee or agent of the Trust or
its Affiliates.
"Corporate Trust Office" means the office of the Property Trustee at which
the corporate trust business of the Property Trustee shall, at any particular
time, be principally administered, which office at the date of execution of this
Declaration is located at _____________________________________________________.
"Covered Person" means: (a) any officer, director, shareholder, partner,
member, representative, employee or agent of (i) the Trust or (ii) the Trust's
Affiliates; and (b) any Holder of Securities.
"Creditor" has the meaning set forth in Section 4.5.
"Debenture Event of Default" means an event of default under the
Debentures.
"Debenture Issuer" means Devon Energy Corporation, a Delaware corporation
or any successor entity, in its capacity as issuer of the Debentures under the
Indenture.
"Debenture Trustee" means ___________________, a ___________ banking
corporation as trustee under the Indenture until a successor is appointed
thereunder, and thereafter means such successor trustee.
"Debentures" means the debt securities to be purchased by the Trust
specified in the Terms and Conditions.
"Delaware Trustee" has the meaning set forth in Section 5.2.
"Direction" by a Person means a written and direction signed:
(a) if the Person is a natural person, by that Person; or
(b) in any other case, in the name of such Person by one or more
Authorized Officers of that Person.
"Direct Action" has the meaning set forth in Section 3.8(e).
"Distribution" has the meaning set forth in the Terms and Conditions.
"DTC" means The Depository Trust Company or any successor entity.
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"Event of Default" means a Debenture Event of Default or any Other Document
Event of Default has occurred and is continuing.
"Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, or any successor legislation.
"Fiduciary Indemnified Person" means (a) the Property Trustee, (b) the
Delaware Trustee, (c) any Affiliate of the Property Trustee or the Delaware
Trustee, and (d) any officers, directors, shareholders, members, partners,
employees, representatives, custodians, nominees or agents of the Property
Trustee or the Delaware Trustee.
"Global Certificate" has the meaning set forth in Section 9.4.
"Holder" or "holder" means a Person in whose name a Security is registered,
such Person being a beneficial owner within the meaning of the Business Trust
Act.
"Indemnified Person" means a Company Indemnified Person or a Fiduciary
Indemnified Person.
"Indenture" means the Indenture specified in the Terms and Conditions,
among the Debenture Issuer and the Debenture Trustee under which the Debentures
are issued, as such indenture may be modified, supplemented or amended from time
to time, and includes any indenture supplemental thereto.
"Investment Company" means an entity required to register as an investment
company under the Investment Company Act.
"Investment Company Act" means the Investment Company Act of 1940, as
amended from time to time, or any successor legislation.
"Legal Action" has the meaning set forth in Section 3.6(g).
"Majority in liquidation amount" with respect to Securities of any class
means, except as provided elsewhere in this Declaration or by the Trust
Indenture Act, 50% of the aggregate liquidation amount (including the stated
amount that would be paid on redemption, liquidation or otherwise, plus accrued
and unpaid Distributions to the date upon which the voting or written consent
percentages are determined) of all outstanding Securities of such class.
"Officers' Certificate" means, with respect to (A) the Sponsor, a
certificate signed by the Chairman of the Board, a Vice Chairman, the President
or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary of the Sponsor and (B) any other Person, a certificate
signed by any two Authorized Officers of such Person. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Declaration shall comply with Section 314 of the Trust Indenture Act and
shall include:
(a) a statement that the individuals signing the Officers' Certificate
have read the covenant or condition and the definitions relating thereto;
(b) a brief statement of the nature and scope of the examination or
investigation upon which the statements or opinions contained in such Officers'
Certificate are based;
(c) a statement that each such individual has made such examination or
investigation as, in such individual's opinion, is necessary to enable such
individual to express an informed opinion as to whether or not such covenant or
condition has been complied with; and
4
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(d) a statement as to whether, in the opinion of each such individual,
such condition or covenant has been complied with.
"Other Document" means any instrument or agreement constituting Trust
Property, other than the Debentures, specified in the Terms and Conditions.
"Other Document Event of Default" means an event of default under any Other
Document, if any, that is specified in the Terms and Conditions as an Other
Document Event of Default.
"Outstanding," with respect to any Securities, means, as of the date of
determination, all Securities theretofore executed and delivered under this
Declaration, except:
(a) Trust Preferred Securities theretofore cancelled by the Property
Trustee or delivered to the Property Trustee for cancellation or Common
Securities theretofore cancelled by an Administrative Trustee or delivered to
the Administrative Trustees for cancellation;
(b) Securities for whose payment, repayment or redemption money in the
necessary amount and currency has been theretofore deposited with the Property
Trustee or any Paying Agent for the Holders of such Securities, provided that if
such Securities are to be repaid or redeemed, notice of such repayment or
redemption has been duly given pursuant to this Declaration;
(c) Securities which have been paid or in exchange for or in lieu of which
other securities have been executed and delivered pursuant to this Declaration;
and
(d) If the Securities are convertible or exchangeable into other
securities or other property, Securities converted or exchanged as contemplated
by this Declaration if such other securities have or other property has been
either (i) delivered to the Holders of such Securities in accordance with this
Declaration or (ii) deposited with and are held by the Property Trustee or any
Paying Agent in trust for the Holders of such Securities in accordance with this
Declaration, provided in the case of this clause (ii) that any applicable notice
of conversion or exchange has been duly given to the Holders thereof pursuant to
this Declaration;
Provided, however, that in determining whether the Holders of the requisite
liquidation amount of outstanding Trust Preferred Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder,
Trust Preferred Securities owned by the Sponsor or any Administrative Trustee or
any Affiliate of the Sponsor or any Administrative Trustee shall be disregarded
and deemed not to be outstanding, except that (i) in determining whether any
Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Trust Preferred
Securities that such Trustee actually knows to be so owned shall be so
disregarded and (ii) the foregoing shall not apply at any time when all of the
outstanding Trust Preferred Securities are owned by the Sponsor, one or more of
the Trustees and/or any such Affiliate. Trust 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 Trust Preferred Securities and
that the pledgee is not the Sponsor or any Affiliate of the Sponsor.
"Paying Agent" has the meaning specified in Section 7.2(a).
"Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.
5
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"Property Trustee" means the Trustee meeting the eligibility requirements
set forth in Section 5.3.
"Property Trustee Account" has the meaning set forth in Section 3.8(c).
"Quorum" means a majority of the Administrative Trustees or, if there are
only two Administrative Trustees, both of them.
"Related Party" means, with respect to the Sponsor, any direct or indirect
wholly owned subsidiary of the Sponsor or any other Person that owns, directly
or indirectly, 100% of the outstanding voting securities of the Sponsor.
"Responsible Officer" means, with respect to the Property Trustee, any
officer within the Corporate Trust Office of the Property Trustee with direct
responsibility for the Property Trustee's obligations under this Declaration and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of that officer's knowledge of
and familiarity with the particular subject.
"Securities" means the Common Securities and the Trust Preferred
Securities.
"Securities Act" means the Securities Act of 1933, as amended from time to
time, or any successor legislation.
"Securities Guarantees" means the Common Securities Guarantee and the Trust
Preferred Securities Guarantee.
"Sponsor" or "Devon" means Devon Energy Corporation, a Delaware
corporation, or any successor entity, in its capacity as sponsor of the Trust.
"State" means any of the 50 states in the United States or the District of
Columbia.
"Successor Delaware Trustee" has the meaning set forth in Section
5.6(b)(ii).
"Successor Entity" has the meaning set forth in Section 3.14(b)(i).
"Successor Property Trustee" has the meaning set forth in Section
3.8(f)(ii).
"Super Majority" has the meaning set forth in Section 2.6(a)(ii).
"10% in liquidation amount" with respect to either the Common Securities or
the Trust Preferred Securities means, except as provided elsewhere in this
Declaration or by the Trust Indenture Act, 10% or more of the aggregate
liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the voting percentages are determined) of all such
outstanding Common Securities or Trust Preferred Securities.
"Terms and Conditions" means the terms and conditions of the Common
Securities and the Trust Preferred Securities determined by the Sponsor and
executed by the Administrative Trusts in accordance with Section 7.1(b).
"Trustee" or "Trustees" means each Person who has signed this Declaration
as a trustee, so long as such Person shall continue in office in accordance with
the terms hereof, and all other Persons who may from time to time be duly
appointed, qualified and serving as Trustees in accordance with the provisions
hereof, and references herein to a Trustee or the Trustees shall refer to such
Person or Persons solely in their capacity as trustees hereunder.
6
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"Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
from time to time, or any successor legislation.
"Trust Preferred Security" has the meaning set forth in Section 7.1(a).
"Trust Preferred Security Beneficial Owner" means, with respect to a Book
Entry Interest, a Person who is the beneficial owner of such Book Entry
Interest, as reflected on the books of the Clearing Agency, or on the books of a
Person maintaining an account with such Clearing Agency (directly as a Clearing
Agency Participant or as an indirect participant, in each case in accordance
with the rules of such Clearing Agency).
"Trust Preferred Security Certificate" means a certificate representing a
Trust Preferred Security, which shall be prepared by the Sponsor and a specimen
of which shall be substantially in the form attached hereto as Exhibit A-1.
"Trust Preferred Securities Guarantee" means the guarantee agreement dated
as of the date hereof executed and delivered by the Sponsor and ____________, as
trustee, for the benefit of the Holders, as such agreement may be modified,
supplemented or amended from time to time.
"Trust Property" means (a) the Debentures, (b) any Other Documents, (c) any
cash on deposit in, or owing to, the Property Trust Account, and (d) all
proceeds and rights in respect of the foregoing or any other property and assets
for the time being held or deemed to be held by the Property Trustee pursuant to
this Declaration.
"Underwriting Agreement" means the underwriting agreement for the offering
and sale of Trust Preferred Securities, including any amendments or supplements
thereto.
ARTICLE II
TRUST INDENTURE ACT
SECTION 2.1 Trust Indenture Act: Application.
(a) This Declaration is subject to the provisions of the Trust Indenture
Act that are required to be part of this Declaration 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.
(c) If, and to the extent that, any provision of this Declaration limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such duties imposed under the Trust
Indenture Act shall control.
(d) The application of the Trust Indenture Act to this Declaration shall
not affect the nature of the Securities as equity securities representing
undivided beneficial interests in the assets of the Trust.
SECTION 2.2 Lists of Holders of Securities.
(a) In accordance with Section 312(a) of the Trust Indenture Act, the
Administrative Trustees, on behalf of the Trust, shall provide to the
Property Trustee:
(i) within 14 days after each March 15 and September 15 of each year
or such other dates as are set forth in the Terms and Conditions, a list,
in such form as the Property Trustee may reasonably require, of the names
and
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addresses of the Holders of the Securities ("List of Holders") as of such
date, provided that the Administrative Trustees, on behalf of the Trust,
shall not be obligated to provide such List of Holders at any time that the
Property Trustee is the Registrar or the List of Holders does not differ
from the most recent List of Holders given to the Property Trustee by the
Administrative Trustees on behalf of the Trust; and
(ii) at any other time, within 30 days of receipt by the Trust of a
written request by the Property Trustee for a List of Holders as of a date
no more than 14 days before such List of Holders is given to the Property
Trustee. The Property Trustee shall preserve, in as current a form as is
reasonably practicable, all information contained in the Lists of Holders
given to it or which it receives in the capacity as Paying Agent or
Registrar (if acting in such capacity), provided that the Property Trustee
may destroy any List of Holders previously given to it on receipt of a new
List of Holders.
(b) The Property Trustee shall comply with its obligations under Sections
311(a), 311(b) and 312(b) of the Trust Indenture Act.
SECTION 2.3 Reports by the Property Trustee.
Within 60 days after May 15 of each year, commencing with the May 15 that
first occurs following the issuance of the Securities, the Property Trustee
shall provide to the Holders of the Trust Preferred Securities such reports as
are required by Section 313 of the Trust Indenture Act, if any, in the form and
in the manner provided by Section 313 of the Trust Indenture Act. The Property
Trustee shall also comply with the requirements of Section 313(d) of the Trust
Indenture Act.
SECTION 2.4 Periodic Reports to Property Trustee.
The Administrative Trustees on behalf of the Trust shall provide to the
Property Trustee such documents, reports and information as required by Section
314 (if any) and the compliance certificate required by Section 314 of the Trust
Indenture Act in the form, in the manner and at the times required by Section
314 of the Trust Indenture Act.
SECTION 2.5 Evidence of Compliance with Conditions Precedent.
Each of the Sponsor 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 Declaration 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) may be given in the form of an Officers' Certificate.
SECTION 2.6 Events of Default; Waiver.
(a) The Holders of a Majority in liquidation amount of Trust Preferred
Securities may, by vote or written consent, on behalf of the Holders of all
of the Trust Preferred Securities, waive any past Event of Default in
respect of the Trust Preferred Securities and its consequences, provided
that, if the corresponding Debenture Event of Default or Other Document
Event of Default:
(i) is not waivable under the Indenture or any Other Document, if
any, as the case may be, the Event of Default under the Declaration shall
also not be waivable; or
(ii) requires the consent or vote of greater than a majority in
principal amount of the holders of the Debentures or more than a majority
of other interests in such Other Document, as the case may be (a "Super
Majority")
8
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to be waived under the Indenture or any Other Document, if any, as the case
may be, the Event of Default under the Declaration may only be waived by
the vote of the relevant Super Majority in liquidation amount of Holders of
the Trust Preferred Securities.
The foregoing provisions of this Section 2.6(a) shall be in lieu of Section
316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of the
Trust Indenture Act is hereby expressly excluded from this Declaration and the
Securities, as permitted by the Trust Indenture Act. Upon such waiver, any such
Debenture Event of Default or Other Document Event of Default shall cease to
exist, and any Event of Default with respect to the Trust Preferred Securities
arising therefrom shall be deemed to have been cured, for every purpose of this
Declaration, but no such waiver shall extend to any subsequent or other default
or an Event of Default with respect to the Trust Preferred Securities or impair
any right consequent thereon. Any waiver by the Holders of the Trust Preferred
Securities of an Event of Default with respect to the Trust Preferred Securities
shall also be deemed to constitute a waiver by the Holders of the Common
Securities of any such Event of Default with respect to the Common Securities
for all purposes of this Declaration without any further act, vote, or consent
of the Holders of the Common Securities.
The Holders of a Majority in liquidation amount of the Trust Preferred
Securities shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Property Trustee or to
direct the exercise of any trust or power conferred upon the Property Trustee,
including the right to direct the Property Trustee to exercise the remedies
available to it as a holder of the Debentures and any Other Documents; provided,
however, that (subject to the provisions of Section 3.9) the Property Trustee
shall have the right to decline to follow any such direction if the Property
Trustee shall determine that the action so directed would be unjustly
prejudicial to the Holders not taking part in such direction or if the Property
Trustee, in good faith, by its board of directors or trustees, executive
committee, or a trust committee of directors or trustees, and/or Responsible
Officers, shall determine that the action or proceeding so directed would
involve the Property Trustee in personal liability.
(b) The Holders of a Majority in liquidation amount of the Common
Securities may, by vote or consent, on behalf of the Holders of all of the
Common Securities, waive any past Event of Default with respect to the Common
Securities and its consequences, provided that, if the underlying Event of
Default under the Indenture:
(i) is not waivable under the Debentures or Other Document, except
where the Holders of the Common Securities are deemed to have waived such
Event of Default under the Declaration as provided below in this Section
2.6, the Event of Default under the Declaration shall also not be waivable;
or
(ii) requires the consent or vote of a Super Majority to be waived,
except where the Holders of the Common Securities are deemed to have waived
such Event of Default under the Declaration as provided below in this
Section 2.6, the Event of Default under the Declaration may only be waived
by the vote of the Holders of at least the proportion in liquidation amount
of the Common Securities that the relevant Super Majority represents of the
aggregate principal amount of the Debentures outstanding;
provided further, each Holder of Common Securities will be deemed to have waived
any such Event of Default and all Events of Default with respect to the Common
Securities and its consequences if all Events of Default with respect to the
Trust Preferred Securities have been cured, waived or otherwise eliminated, and
until such Events of Default have been so cured, waived or otherwise eliminated,
the Property Trustee will be deemed to be acting solely on behalf of the Holders
of the Trust Preferred Securities and only the Holders of the Trust Preferred
Securities will have the right to direct the Property Trustee in accordance with
the terms of the Securities. The foregoing provisions of this Section 2.6(b)
shall be in lieu of Sections 316(a)(1)(A)
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and 316(a)(1)(B) of the Trust Indenture Act and such Sections 316(a)(1)(A) and
316(a)(1)(B) of the Trust Indenture Act are hereby expressly excluded from this
Declaration and the Securities, as permitted by the Trust Indenture Act. Subject
to the foregoing provisions of this Section 2.6(b), upon such waiver, any such
Debenture Event of Default or Other Document Event of Default shall cease to
exist and any Event of Default with respect to the Common Securities arising
therefrom shall be deemed to have been cured for every purpose of this
Declaration, but no such waiver shall extend to any subsequent or other default
or Event of Default with respect to the Common Securities or impair any right
consequent thereon.
(c) A waiver of a Debenture Event of Default or Other Document Event of
Default by the Property Trustee at the direction of the Holders of the Trust
Preferred Securities, constitutes a waiver of the corresponding Event of Default
under this Declaration. Any waiver of a Debenture Event of Default or Other
Document Event of Default by the Property Trustee at the direction of the
Holders of the Trust Preferred Securities shall also be deemed to constitute a
waiver by the Holders of the Common Securities of the corresponding Event of
Default under this Declaration with respect to the Common Securities for all
purposes of this Declaration without further act, vote or consent of the Holders
of the Common Securities. The foregoing provisions of this Section 2.6(c) shall
be in lieu of Section 316(a)(1)(B) of the Trust Indenture Act and such Section
316(a)(1)(B) of the Trust Indenture Act is hereby expressly excluded from this
Declaration and the Securities, as permitted by the Trust Indenture Act.
SECTION 2.7 Event of Default: Notice.
(a) The Property Trustee shall, within 90 days after a Responsible Officer
of the Property Trustee obtains actual knowledge of the occurrence of a default,
transmit by mail, first class postage prepaid, to the Holders of the Securities,
notices of all defaults known to the Property Trustee, unless such defaults have
been cured or waived before the giving of such notice (the term "defaults" for
the purposes of this Section 2.7(a) being hereby defined to be Debenture Events
of Default and Other Document Events of Default, if any, not including any
periods of grace provided for therein and irrespective of the giving of any
notice provided therein); provided that, except for a default in the payment of
principal of (or premium, if any) or interest on, or in the delivery of any
cash, securities or other property in exchange for or upon conversion or
redemption of or otherwise in accordance with the terms of, any Debenture or
Other Document or the Securities, the Property Trustee shall be protected in
withholding such notice if and so long as a Responsible Officer of the Property
Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders of the Securities.
(b) The Property Trustee shall not be deemed to have knowledge of any
default except:
(i) a default under Sections [801(a)] and [801(b)] of the
Indenture; or
(ii) any failure to deliver any cash, securities or other property
in exchange for or upon conversion or redemption of or otherwise in
accordance with the terms of the Debentures or Other Documents or the
Securities; and
(iii) any default as to which the Property Trustee shall have
received written notice or of which a Responsible Officer of the Property
Trustee shall have actual knowledge.
(c) The Sponsor and the Administrative Trustee shall file annually within
30 days after May 15 of each year, commencing with the May 15 that first occurs
following the issuance of the Securities, with the Property Trustee in
accordance with Section
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314(a)(4) of the Trust Indenture Act a certification as to whether or not they
are in compliance with all the conditions applicable to them under this
Declaration.
ARTICLE III
ORGANIZATION
SECTION 3.1 Name.
The Trust is named "Devon Financing Trust II" as such name may be modified
from time to time by the Administrative Trustees following prompt written notice
to the Delaware Trustee, the Property Trustee and Holders of Securities. The
Trust's activities may be conducted under the name of the Trust or any other
name deemed advisable by the Administrative Trustees.
SECTION 3.2 Office.
The address of the principal office of the Trust is c/o Devon Energy
Corporation, 20 North Broadway, Suite 1500, Oklahoma City, Oklahoma 73102-8260.
On ten Business Days written notice to the Property Trustee and Holders of
Securities, the Administrative Trustees may designate another principal office.
SECTION 3.3 Purpose.
The exclusive purposes and functions of the Trust are (a) to issue and sell
Securities and use the gross proceeds from such sale to acquire the Debentures
and any Other Documents specified in the Terms and Conditions, (b) to enter into
or hold each Other Document, if any, to be entered into or held by the Trust in
accordance with the Terms and Conditions and (c) to engage in only those other
activities necessary, or incidental thereto. The Trust shall not borrow money,
issue debt or reinvest proceeds derived from investments, pledge any of its
assets, or otherwise undertake (or permit to be undertaken) any activity that
would cause the Trust not to be classified for United States federal income tax
purposes as a grantor trust.
SECTION 3.4 Authority.
Subject to the limitations provided in this Declaration and to the specific
duties of the Property Trustee, the Administrative Trustees shall have exclusive
and complete authority to carry out the purposes of the Trust. An action taken
by the Administrative Trustees in accordance with their powers shall constitute
the act of and serve to bind the Trust and an action taken by the Property
Trustee on behalf of the Trust in accordance with its powers shall constitute
the act of and serve to bind the Trust. In dealing with the Trustees acting on
behalf of the Trust, no person shall be required to inquire into the authority
of the Trustees to bind the Trust. Persons dealing with the Trust are entitled
to rely conclusively on the power and authority of the Trustees as set forth in
this Declaration.
SECTION 3.5 Title to Property of the Trust.
Except as provided in Section 3.8 with respect to the Trust Property and
the Property Trustee Account or as otherwise provided in this Declaration, legal
title to all assets of the Trust shall be vested in the Trust. The Holders of
Securities shall not have legal title to any part of the assets of the Trust,
but shall have an undivided beneficial interest in the assets of the Trust.
SECTION 3.6 Powers and Duties of the Administrative Trustees.
The Administrative Trustees shall have the exclusive power, duty and
authority to cause the Trust to engage in the following activities:
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(a) to issue and sell the Trust Preferred Securities and the Common
Securities in accordance with this Declaration; provided however, that the Trust
may issue no more than one series of Trust Preferred Securities and no more than
one series of Common Securities, and provided further, that there shall be no
interests in the Trust other than the Securities, and the issuance of Securities
shall be limited to a simultaneous issuance of both Trust Preferred Securities
and Common Securities on each Closing Date;
(b) in connection with the issue and sale of the Trust Preferred
Securities to:
(i) assist in filing with the Commission any registration statement
and any prospectus relating to the registration statement on Form S-3 or
other appropriate form prepared by the Sponsor, including any amendments or
supplements thereto, pertaining to the Trust Preferred Securities and to
take any other action relating to the registration and sale of the Trust
Preferred Securities under federal and state securities laws;
(ii) execute and file any documents prepared by the Sponsor, or take
any acts as determined by the Sponsor to be necessary in order to qualify
or register all or part of the Trust Preferred Securities in any State in
which the Sponsor has determined to qualify or register such Trust
Preferred Securities for sale;
(iii) execute and file an application, prepared by the Sponsor, to
the American Stock Exchange, Inc. or any other national stock exchange or
the Nasdaq Stock Market's National market for listing or quotation of any
Trust Preferred Securities;
(iv) execute and file with the Commission any registration statement
on Form 8-A, including any amendments thereto, prepared by the Sponsor,
relating to the registration of the Trust Preferred Securities under
Section 12(b) or 12(g) of the Exchange Act;
(v) execute and enter into and deliver the Underwriting Agreement
providing for the sale of the Trust Preferred Securities;
(vi) execute and deliver letters, documents or instruments with DTC
and other Clearing Agencies relating to the Trust Preferred Securities;
(vii) execute the Terms and Conditions and attach them to this
Declaration; and
(viii) execute, enter into or file any other instrument, agreement,
certificate or other document negotiated or prepared by the Sponsor or
behalf of the Trust, including any Other Document to be entered into or
held by the Trust, and to take such other action, in each case as the
Administrative Trustees or any of them deem necessary or incidental (and
not otherwise covered by the power of the other Trustees hereunder or under
the Securities), in connection with the issuance, the sale or the terms of
any Securities and the investment by the Trust in the Trust Property,
including any remarketing, auction or similar agreements.
(c) to acquire the Debentures and any Other Documents with the proceeds of
the sale of the Trust Preferred Securities and the Common Securities; provided,
however, that the Administrative Trustees shall cause legal title to the
Debentures and any Other Documents to be acquired by the Trust on a Closing Date
to be held of record in the name of the Property Trustee for the benefit of the
Trust and the Holders of the Trust Preferred Securities and the Holders of
Common Securities;
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(d) to give the Sponsor and the Property Trustee prompt written notice of
the occurrence of any event that, in accordance with this Declaration, may
require that a notice be sent to Holders, including events that may result in an
Event of Default, or any redemption, conversion or exchange of or deferral of
distributions on the Securities;
(e) to establish a record date with respect to all actions to be taken
hereunder that require a record date be established, including and with respect
to, for the purposes of Section 316 (c) of the Trust Indenture Act,
Distributions, voting rights, redemptions and exchanges, and to issue relevant
notices to the Holders of Trust Preferred Securities and Holders of Common
Securities as to such actions and applicable record dates;
(f) to take all actions and perform such duties as may be required of the
Administrative Trustees pursuant to the terms of the Securities and this
Declaration;
(g) to bring or defend, pay, collect, compromise, arbitrate, resort to
legal action, or otherwise adjust claims or demands of or against the Trust
("Legal Action"), unless pursuant to Section 3.8(e), the Property Trustee has
the exclusive power to bring such Legal Action;
(h) to employ or otherwise engage employees and agents (who may be
designated as officers with titles) and managers, contractors, advisors, and
consultants and pay reasonable compensation for such services;
(i) to cause the Trust to comply with the Trust's obligations under the
Trust Indenture Act;
(j) to give the certificate required by Section 314(a)(4) of the Trust
Indenture Act to the Property Trustee, which certificate may be executed by
any Administrative Trustee;
(k) to incur expenses that are necessary or incidental to carry out any of
the purposes of the Trust;
(l) to act as, or appoint another Person to act as, Registrar and transfer
agent for the Securities;
(m) to execute all documents or instruments, perform all duties and
powers, and do all things for and on behalf of the Trust in all matters which
the Administrative Trustees deem necessary or incidental to the foregoing;
(n) to take all action that may be necessary or appropriate for the
preservation and the continuation of the Trust's valid existence, rights,
franchises and privileges as a statutory business trust under the laws of the
State of Delaware and of each other jurisdiction in which such existence is
necessary to protect the limited liability of the Holders of the Trust Preferred
Securities or to enable the Trust to effect the purposes for which the Trust was
created;
(o) to take any action, not inconsistent with this Declaration or with
applicable law, that the Administrative Trustees determine in their discretion
to be necessary or desirable in carrying out the activities of the Trust,
including, but not limited to:
(i) causing the Trust not to be deemed to be an Investment Company
required to be registered under the Investment Company Act;
(ii) causing the Trust to be classified for United States federal
income tax purposes as a grantor trust; and
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(iii) cooperating with the Debenture Issuer to ensure that the
Debentures will be treated as indebtedness of the Debenture Issuer for
United States federal income tax purposes,
provided that such action does not adversely affect the interests of Holders;
and
(p) to take all action necessary to cause all applicable tax returns and
tax information reports that are required to be filed with respect to the Trust
to be duly prepared and filed on behalf of the Trust.
The Administrative Trustees must exercise the powers set forth in this
Section 3.6 in a manner that is consistent with the purposes and functions of
the Trust set out in Section 3.3, and the Administrative Trustees shall not take
any action that is inconsistent with the purposes and functions of the Trust set
forth in Section 3.3.
Subject to this Section 3.6, the Administrative Trustees shall have none of
the powers or the authority of the Property Trustee set forth in Section 3.8.
No permissive power or authority available to the Administrative Trustees shall
be construed to be a duty.
Any expenses incurred by the Administrative Trustees pursuant to this
Section 3.6 shall be reimbursed by the Sponsor.
SECTION 3.7 Prohibition of Actions by the Trust and the Trustees.
(a) The Trust shall not, and the Trustees shall not, engage in any
activity other than as required or authorized by this Declaration. In particular
the Trust shall not and the Trustees shall not cause the Trust to:
(i) invest any proceeds received by the Trust from holding the
Debentures or other Trust Property, but shall distribute all such proceeds
to Holders of Securities pursuant to the terms of this Declaration and of
the Securities;
(ii) acquire or vary any assets other than as expressly provided
herein;
(iii) possess Trust property for other than a Trust purpose;
(iv) make any loans or incur any indebtedness other than loans
represented by the Debentures or other Trust Property;
(v) possess any power or otherwise act in such a way as to vary the
Trust assets or the terms of the Securities in any way whatsoever;
(vi) sell, assign, transfer, exchange, mortgage, pledge, set-off or
otherwise dispose of any of the Trust Property or interests therein,
including to Holders, except as provided in this Declaration;
(vii) take or consent to any action that would result in the
placement of a lien on any Trust Property;
(viii) issue any securities or other evidences of beneficial ownership
of, or beneficial interest in, the Trust other than the Securities; or
(ix) other than as provided in this Declaration, (A) direct or
exercise any remedy, trust or power with respect to the Debentures, or any
other instrument or agreement constituting Trust Property, (B) waive any
past default that is not waivable under the Indenture or any Other
Document, (C) exercise
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any right to rescind or annul any declaration that the principal of or
other amounts payable or other property deliverable under the Debentures or
amounts payable or other property deliverable under any Other Document
shall be due and payable, or (D) consent to any amendment, modification or
termination of the Indenture or the Debentures or any Other Document, in
the case of each of clauses (A) through (D), (x) without the approval of a
Majority in liquidation amount with respect to the Securities or, where a
consent under the Indenture or Other Document, as the case may be, would
require the consent of each holder of Debentures or other interests, as the
case may be, affected thereby, of each Holder of Securities, and (y) unless
the Trust shall have received an opinion of nationally recognized
independent tax counsel to the effect that the Trust will not, as a result
of such action, fail to be classified as a grantor trust for such purposes.
SECTION 3.8 Powers and Duties of the Property Trustee.
(a) The legal title to the Trust Property shall be owned by and held of
record in the name of the Property Trustee in trust for the benefit of the Trust
and the Holders of the Securities. The right, title and interest of the Property
Trustee to the Trust Property shall vest automatically in each Person who may
hereafter be appointed as Property Trustee in accordance with Section 5.6. Such
vesting and cessation of title shall be effective whether or not conveyancing
documents with regard to the Debentures have been executed and delivered.
(b) The Property Trustee shall not transfer its right, title and interest
in the Trust Property to the Administrative Trustees or to the Delaware Trustee
(if the Property Trustee does not also act as Delaware Trustee) or, except in
accordance with the provisions of this Declaration and the Securities, any other
Person.
(c) The Property Trustee shall:
(i) establish and maintain one or more segregated non-interest
bearing trust accounts (collectively, the "Property Trustee Account") in
the name of and under the exclusive control of the Property Trustee on
behalf of the Trust and the Holders of the Securities and, upon the receipt
of payments of funds made in respect of the Trust Property held by the
Property Trustee, deposit such funds into the Property Trustee Account and
make payments to the Holders of the Trust Preferred Securities and Holders
of the Common Securities from the Property Trustee Account in accordance
with the terms of this Declaration and the Securities. Funds in the
Property Trustee Account shall be held uninvested until disbursed in
accordance with this Declaration and the Securities. The Property Trustee
Account shall be one or more accounts maintained with a banking institution
the rating on whose long-term unsecured indebtedness is rated at least "A"
or above by a "nationally recognized statistical rating organization," as
that term is defined for purposes of Rule 436(g)(2) under the Securities
Act;
(ii) upon receipt of any Trust Property on each Closing Date and the
receipt of any property other than funds distributed to the Property
Trustee in respect of Trust Property held by the Property Trustee, hold
such other property in safe keeping and make distributions of such other
property to the Holders of the Trust Preferred Securities and the Holders
of the Common Securities in accordance with the terms of this Declaration
and the Securities; and
(iii) engage in such ministerial activities as shall be necessary or
incidental to hold the Trust Property in accordance with the provisions
hereof and to effect distributions on and any redemption, repayment,
conversion or exchange of the Trust Preferred Securities or the Common
Securities and the distribution of all or any part of the Trust Property to
Holders in liquidation
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of the Trust or otherwise, in each case in accordance with the terms of
this Declaration and the Securities.
(d) The Property Trustee shall take all actions and perform such duties as
may be specifically required of the Property Trustee pursuant to the terms of
the Securities and this Declaration.
(e) Subject to Section 3.9(a), the Property Trustee shall take any Legal
Action which arises out of or in connection with an Event of Default of which a
Responsible Officer of the Property Trustee has actual knowledge or the Property
Trustee's duties and obligations under this Declaration or the Trust Indenture
Act; provided however, that if the Property Trustee fails to enforce its rights
under the Debentures or any Other Document after a Holder of the Trust Preferred
Securities has made a written request, such Holder of Trust Preferred Securities
may, to the fullest extent permitted by applicable law, institute a legal
proceeding against the Debenture Issuer or any obligor under any Other Document,
as the case may be, without first instituting any legal proceeding against the
Property Trustee or any other Person. Notwithstanding the foregoing, if an Event
of Default has occurred and is continuing and such event is attributable to (i)
the failure of the Debenture Issuer to pay interest or principal on the
Debentures on the date such interest or principal is otherwise payable (or in
the case of redemption, on the redemption date) or, if the Debentures are
exchangeable or convertible, the failure of the Debenture Issuer to convert or
exchange the Debentures into or for other property in accordance with the terms
thereof, or (ii) the failure of any obligor under any Other Document to pay or
deliver cash, securities or other property in accordance with the terms of such
Other Document, then, in the case of (i) and (ii), then a Holder of Trust
Preferred Securities may directly institute a proceeding for enforcement of
payment to such Holder of the principal of or interest on the Debentures having
a principal amount equal to the aggregate liquidation amount of the Trust
Preferred Securities of such Holder (a "Direct Action") on or after the
respective due date specified in the Debentures. In connection with such Direct
Action, the rights of the Holders of the Common Securities will be subrogated to
the rights of such Holder of Trust Preferred Securities. Except as provided in
the preceding sentences, the Holders of Trust Preferred Securities will not be
able to exercise directly any other remedy available to the holders of the
Debentures or Other Documents.
(f) The Property Trustee shall not resign as a Trustee unless either:
(i) the Trust has been completely liquidated and the proceeds of the
liquidation distributed to the Holders of Securities and the Trust is
terminated pursuant to the terms of the Securities and this Declaration; or
(ii) a Successor Property Trustee has been appointed and has accepted
that appointment in accordance with Section 5.6 (a "Successor Property
Trustee").
(g) The Property Trustee shall have the legal power to exercise all of the
rights, powers and privileges of a holder of Debentures under the Indenture as
beneficiary of or party to any Other Document and, if an Event of Default
actually known to a Responsible Officer of the Property Trustee occurs and is
continuing, the Property Trustee shall, for the benefit of Holders of the
Securities, enforce its rights as holder of the Debentures and as beneficiary of
or party to any Other Document subject to the rights of the Holders pursuant to
the terms of such Securities and this Declaration.
(h) The Property Trustee shall be authorized to undertake any actions set
forth in Section 317(a) of the Trust Indenture Act.
(i) For such time as the Property Trustee is the Paying Agent, the
Property Trustee may authorize one or more Persons to act as additional Paying
Agents and to
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make distributions, redemption payments or liquidation payments on behalf of the
Trust with respect to all Securities. Any such additional Paying Agent may be
removed by the Property Trustee, at any time, so long as the Property Trustee
remains as Paying Agent and a successor Paying Agent or additional Paying Agents
may be (but are not required to be) appointed at any time by the Property
Trustee.
(j) Subject to this Section 3.8, the Property Trustee shall have none of
the duties, liabilities, powers or the authority of the Administrative Trustees
set forth in Section 3.6.
The Property Trustee must exercise the powers set forth in this Section 3.8
in a manner that is consistent with the purposes and functions of the Trust set
out in Section 3.3, and the Property Trustee shall not take any action that is
inconsistent with the purposes and functions of the Trust set out in Section
3.3.
SECTION 3.9 Certain Duties and Responsibilities of the Property Trustee.
(a) The Property Trustee, before the occurrence of any Event of Default
and after the curing or waiver of all Events of Default that may have occurred,
shall undertake to perform only such duties as are specifically set forth in
this Declaration and no implied covenants shall be read into this Declaration
against the Property Trustee. In case an Event of Default has occurred (that has
not been cured or waived pursuant to Section 2.6) of which a Responsible Officer
of the Property Trustee has actual knowledge, the Property Trustee shall
exercise such of the rights and powers vested in it by this Declaration, and use
the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own
affairs.
(b) No provision of this Declaration 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) prior to the occurrence of an Event of Default and after the
curing or waiving of all such Events of Default that may have occurred:
(A) the duties and obligations of the Property Trustee shall
be determined solely by the express provisions of this Declaration and
the Property Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this
Declaration, and no implied covenants or obligations shall be read
into this Declaration against the Property Trustee; and
(B) in the absence of bad faith on the part of the Property
Trustee, the Property Trustee may conclusively rely, as to the truth
of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Property
Trustee and conforming to the requirements of this Declaration; but in
the case of any such certificates or opinions that by any provision
hereof are specifically required to be furnished to the Property
Trustee, the Property Trustee shall be under a duty to examine the
same to determine whether or not they conform to the requirements of
this Declaration;
(ii) the Property Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer of the Property
Trustee, unless it shall be proved that the Property Trustee was negligent
in ascertaining the pertinent facts;
(iii) 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
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the 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
Declaration;
(iv) no provision of this Declaration shall require the Property
Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that the repayment of such funds or liability is not
reasonably assured to it under the terms of this Declaration or indemnity
reasonably satisfactory to the Property Trustee against such risk or
liability is not reasonably assured to it;
(v) the Property Trustee's sole duty with respect to the custody,
safe keeping and physical preservation of the Trust Property and the
Property Trustee 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 protections and limitations on liability afforded
to the Property Trustee under this Declaration, the Business Trust Act and
the Trust Indenture Act;
(vi) the Property Trustee shall have no duty or liability for or
with respect to the value, genuineness, existence or sufficiency of the
Trust Property or the payment of any taxes or assessments levied thereon or
in connection therewith;
(vii) 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 Sponsor. Money held by the Property Trustee need not be segregated from
other funds held by it except in relation to the Property Trustee Account
maintained by the Property Trustee pursuant to Section 3.8(c)(i) and except
to the extent otherwise required by law; and
(viii) the Property Trustee shall not be responsible for monitoring
the compliance by the Administrative Trustees or the Sponsor with their
respective duties under this Declaration, nor shall the Property Trustee be
liable for any default or misconduct of the Administrative Trustees or the
Sponsor.
SECTION 3.10 Certain Rights of Property Trustee.
(a) Subject to the provisions of Section 3.9:
(i) the Property Trustee may conclusively rely and shall be fully
protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to
have been signed, sent or presented by the proper party or parties;
(ii) any direction or act of the Sponsor or the Administrative
Trustees contemplated by this Declaration shall be sufficiently evidenced
by a Direction or an Officers' Certificate;
(iii) whenever in the administration of this Declaration, the
Property Trustee shall deem it desirable that a matter be proved or
established before taking, 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 Sponsor or the Administrative Trustees;
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(iv) 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 registration thereof;
(v) the Property Trustee may consult with counsel of its selection
or other experts and the advice or opinion of such counsel and experts with
respect to legal matters or advice within the scope of such experts' area
of expertise shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good
faith and in accordance with such advice or opinion. Such counsel may be
counsel to the Sponsor 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 Declaration from any
court of competent jurisdiction;
(vi) the Property Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Declaration at the request
or direction of any Holder, unless (i) such Holder shall have provided to
the Property Trustee security and indemnity, reasonably satisfactory to the
Property Trustee, against the costs, expenses (including attorneys' fees
and expenses and the expenses of the Property Trustee's agents, nominees or
custodians) and liabilities that might be incurred by it in complying with
such request or direction, including such reasonable advances as may be
requested by the Property Trustee and (ii) the Property Trustee has
obtained the legal opinions, if any, required by the applicable provisions
of this Declaration, provided, that, nothing contained in this Section
3.10(a)(vi) shall be taken to relieve the Property Trustee, upon the
occurrence of an Event of Default, of its obligation to exercise the rights
and powers vested in it by this Declaration;
(vii) 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,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Property Trustee, in its
discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit;
(viii) the Property Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents, custodians, nominees or attorneys and the Property Trustee shall
not be responsible for any misconduct or negligence on the part of any
agent or attorney appointed with due care by it hereunder;
(ix) any action taken by the Property Trustee or its agents
hereunder shall bind the Trust and the Holders of the Securities, and the
signature of the Property Trustee or its agents alone shall be sufficient
and effective to perform any such action and no third party shall be
required to inquire as to the authority of the Property Trustee to so act
or as to its compliance with any of the terms and provisions of this
Declaration, both of which shall be conclusively evidenced by the Property
Trustee's or its agent's taking such action;
(x) whenever in the administration of this Declaration the Property
Trustee shall deem it desirable to receive written instructions with
respect to enforcing any remedy or right or taking any other action
hereunder, the Property Trustee (i) may request written instructions from
the Holders of the Securities which instructions may only be given by the
Holders of the same proportion in liquidation amount of the Securities as
would be entitled to direct the Property Trustee under the terms of the
Securities in respect of such remedy, right or action, (ii) may refrain
from enforcing such remedy or
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right or taking such other action until such instructions are received, and
(iii) shall be protected in conclusively relying on or acting in or
accordance with such instructions, provided that the Property Trustee shall
not take any action unless it shall have obtained the legal opinions
required by the applicable provisions of this Declaration;
(xi) except as otherwise expressly provided by this Declaration, the
Property Trustee shall not be under any obligation to take any action that
is discretionary under the provisions of this Declaration; and
(xii) the Property Trustee shall not be liable for any action taken,
suffered, or omitted to be taken by it in good faith and reasonably
believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Declaration.
(b) No provision of this Declaration 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 3.11 Delaware Trustee.
Notwithstanding any other provision of this Declaration other than Section
5.2, 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
Trustees (except as required under the Business Trust Act) described in this
Declaration. Except as set forth in Section 5.2, the Delaware Trustee shall be a
Trustee for the sole and limited purpose of fulfilling the requirements of
Section 3807 of the Business Trust Act. In the event that the Delaware Trustee
shall at any time be required to take any action or perform any duty hereunder,
the Delaware Trustee shall be entitled to the benefits of Section 3.9(b)(ii) and
(viii) and Section 3.10. No implied covenants or obligations shall be read into
this Declaration against the Delaware Trustee.
SECTION 3.12 Not Responsible for Recitals or Issuance of Securities.
The recitals contained in this Declaration and the Securities shall be
taken as the statements of the Sponsor, and the Trustees do not assume any
responsibility for their correctness. The Trustees make no representations as to
the value or condition of the property of the Trust or any part thereof. The
Trustees make no representations as to the validity or sufficiency of this
Declaration or the Securities.
SECTION 3.13 Duration of Trust.
The Trust, unless terminated pursuant to the provisions of Article VIII
hereof, shall [dissolve on _____________________] [have perpetual existence].
SECTION 3.14 Mergers.
(a) The Trust may not consolidate, amalgamate, merge or convert with or
into, or be replaced by, or convey, transfer or lease its properties and assets
as an entirety or substantially as an entirety to any Person, except for the
sole purpose of changing its domicile and as described in Section 3.14(b) and
(c).
(b) Subject to Section 3.14(a), the Trust may at the request of the
Sponsor, with the consent of the Administrative Trustees or, if there are more
than two, a majority of the Administrative Trustees and without the consent of
the Holders of the Securities, the Delaware Trustee or the Property Trustee,
consolidate, amalgamate,
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merge with or into, or be replaced by a trust organized as such under the laws
of any State; provided that:
(i) such successor entity (the "Successor Entity") expressly
assumes all of the obligations of the Trust under any agreement to which
the Trust is a party and either:
(A) expressly assumes all of the obligations of the Trust
under the Securities; or
(B) substitutes for the Trust Preferred Securities other
securities having substantially the same terms as the Trust Preferred
Securities (the "Successor Trust Preferred Securities") so long as the
Successor Trust Preferred Securities rank the same as the Trust
Preferred Securities rank with respect to distributions of Trust
Property and payments upon liquidation, redemption, repayment and
otherwise and substitutes for the Common Securities other securities
having substantially the same terms as the Common Securities (the
"Successor Common Securities"), so long as the Successor Common
Securities rank the same as the Common Securities rank with respect to
distributions of Trust Property and payments upon liquidation,
redemption repayment and otherwise;
(ii) the Successor Entity has a trustee that possesses substantially
the same powers and duties as the Property Trustee;
(iii) such merger, consolidation, amalgamation or replacement does
not cause the Trust Preferred Securities (including any Successor
Securities) to be downgraded by any nationally recognized statistical
rating organization;
(iv) such merger, consolidation, amalgamation or replacement does
not adversely affect the rights, preferences and privileges of the Holders
of the Securities (including any Successor Securities) in any material
respect (other than any dilution of the Holder's interest in the Successor
Entity);
(v) such Successor Entity has a purpose substantially identical to
that of the Trust;
(vi) prior to such merger, consolidation, amalgamation or
replacement, the Sponsor has received an opinion of independent counsel to
the Trust experienced in such matters to the effect that:
(A) such merger, consolidation, amalgamation or replacement
does not adversely affect the rights, preferences and privileges of
the Holders of the Securities (including any Successor Securities) in
any material respect (other than any dilution of the Holder's interest
in the Successor Entity);
(B) following such merger, consolidation, amalgamation or
replacement, neither the Trust nor the Successor Entity will be
required to register as an Investment Company;
(C) following such merger, consolidation, amalgamation or
replacement, the Trust (or the Successor Entity) will continue to be
classified as a grantor trust for United States federal income tax
purposes; and
(vii) the Sponsor, directly or indirectly, owns all of the Successor
Common Securities and guarantees the obligations of such Successor Entity
under
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the Successor Trust Preferred Securities at least to the extent provided by
the Securities Guarantees.
(viii) the Property Trustee has received an Officers' Certificate from
the Sponsor and an opinion of counsel, each to the effect that all
conditions precedent to the transaction as set forth in this Declaration
have been satisfied.
(c) Notwithstanding Section 3.14(b), the Trust shall not, except with the
consent of Holders of 100% in liquidation amount of the Securities, consolidate,
amalgamate, merge with or into, or be replaced by any other entity or permit any
other entity to consolidate, amalgamate, merge with or into, or replace it if
such consolidation, amalgamation, merger or replacement would cause the Trust or
Successor Entity to be classified as other than a grantor trust for United
States federal income tax purposes.
ARTICLE IV
SPONSOR
SECTION 4.1 Sponsor's Purchase of Common Securities.
On each Closing Date the Sponsor will purchase all of the Common Securities
issued by the Trust, in an amount at least equal to 3% of the Securities of the
Trust issued on such Closing Date, at the same time as the Trust Preferred
Securities are sold.
SECTION 4.2 Covenants of the Sponsor.
For so long as the Trust Preferred Securities remain outstanding, the
Sponsor shall:
(i) cause the Trust to remain a statutory business trust and not to
voluntarily dissolve, wind up, liquidate, or terminate, except as permitted
by this Declaration;
(ii) use its commercially reasonable efforts to ensure that the
Trust will not be (A) an Investment Company or (B) classified as other than
a grantor trust for United States federal income tax purposes.
SECTION 4.3 Rights and Responsibilities of the Sponsor.
In connection with the issue and sale of the Trust Preferred Securities and
so long as the Securities are outstanding, the Sponsor shall have the right and
responsibility (which shall be exclusive except as otherwise set forth herein)
to engage in the following activities:
(a) determine the Terms and Conditions;
(b) prepare, execute and file on behalf of the Trust with the Commission a
registration statement on Form S-3 or other appropriate form and any prospectus
or prospectus supplement relating to such registration statement in relation to
the Trust Preferred Securities, including any amendments thereof;
(c) if deemed necessary or advisable by the Sponsor, determine the States
in which to take appropriate action to qualify or register for sale all or part
of the Trust Preferred Securities and to do any and all such acts on behalf of
the Trust, and prepare, execute and file any documents on behalf of the Trust as
the Sponsor deems necessary or advisable in order to comply with the applicable
laws of any such States;
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(d) if deemed necessary or advisable by the Sponsor, prepare, execute and
file on behalf of the Trust an application to the American Stock Exchange or any
other national stock exchange or the Nasdaq National Market for listing upon
notice of issuance of any Trust Preferred Securities;
(e) if necessary, prepare, execute and file on behalf of the Trust with
the Commission, a registration statement on Form 8-A relating to the
registration of the Trust Preferred Securities under Section 12(b) or 12(g) of
the Exchange Act, including any amendments thereto; and
(f) negotiate the Underwriting Agreement and any other instrument or
agreement which, in the opinion of the Sponsor, the Trust should be a party to,
bound by or a beneficiary of, including any remarketing, auction or exchange
agreement.
SECTION 4.4 Right to Proceed.
(a) The Sponsor acknowledges the rights of Holders to institute a Direct
Action as set forth in Section 3.8(e) hereto.
SECTION 4.5 Expenses.
In connection with the offering, sale and issuance of the Debentures or
Other Documents to the Property Trustee and in connection with the sale of the
Securities by the Trust, the Sponsor shall:
(a) pay all costs and expenses relating to the offering, sale and issuance
of the Debentures or Other Documents, including commissions to the underwriters
payable pursuant to the Underwriting Agreement and compensation of the Trustee
under the Indenture in accordance with the provisions of the Indenture;
(b) be responsible for and shall pay all debts and obligations (other than
with respect to the Securities) and all costs and expenses of the Trust
(including, but not limited to, costs and expenses relating to the organization,
maintenance and dissolution of the Trust), the offering, sale and issuance of
the Securities (including commissions to the underwriters in connection
therewith), the fees and expenses (including reasonable counsel fees and
expenses) of the Property Trustee, the Delaware Trustee and the Administrative
Trustees (including any amounts payable under Article X of this Declaration),
the costs and expenses relating to the operation of the Trust, including,
without limitation, costs and expenses of accountants, attorneys, statistical or
bookkeeping services, expenses for printing and engraving and computing or
accounting equipment, Paying Agents, Registrars, transfer agents, duplicating,
travel and telephone and other telecommunications expenses and costs and
expenses incurred in connection with the acquisition, financing, and disposition
of Trust assets and the enforcement by the Property Trustee of the rights of the
Holders;
(c) be primarily liable for any indemnification obligations arising under
Section 10.4 with respect to this Declaration; and
(d) pay any and all taxes (other than United States withholding taxes
attributable to the Trust or its assets) and all liabilities, costs and expenses
with respect to such taxes of the Trust.
The Sponsor's obligations under this Section 4.5 shall be for the benefit
of, and shall be enforceable by, any Person to whom such debts, obligations,
costs, expenses and taxes are owed (a "Creditor") whether or not such Creditor
has received notice hereof. Any such Creditor may enforce the Sponsor's
obligations under this Section 4.5 directly against the Sponsor and the Sponsor
irrevocably waives any right or remedy to require that any such Creditor take
any action against the Trust or any other Person before proceeding against the
Sponsor. The Sponsor agrees to execute
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such additional agreements as may be necessary or desirable in order to give
full effect to the provisions of this Section 4.5.
ARTICLE V
TRUSTEES
SECTION 5.1 Number of Trustees.
The number of Trustees initially shall be five (5), and:
(a) at any time before the issuance of any Securities, the Sponsor may, by
written instrument, increase or decrease the number of Trustees; and
(b) after the issuance of any Securities, the number of Trustees may be
increased or decreased by vote of the Holders of a Majority in liquidation
amount of the Common Securities; provided however, that the number of Trustees
shall in no event be less than two (2); provided further, that (1) one Trustee
shall meet the requirements of Section 5.2(a) or (b); (2) there shall be at
least one Trustee who is an employee or officer of, or is affiliated with the
Sponsor (an "Administrative Trustee"); and (3) one Trustee shall be the Property
Trustee at such time and for so long as this Declaration is required to qualify
as an indenture under the Trust Indenture Act, and such Trustee may also serve
as Delaware Trustee if it meets the applicable requirements.
SECTION 5.2 Delaware Trustee.
If required by the Business Trust Act, one Trustee (the "Delaware Trustee")
shall be:
(a) a natural person who is a resident of the State of Delaware; or
(b) if not a natural person, an entity which has its principal place of
business in the State of Delaware, and otherwise meets the requirements of
applicable law,
(c) the Initial Delaware Trustee shall be: ______________________________.
provided that, if the Property Trustee has its principal place of business in
the State of Delaware and otherwise meets the requirements of applicable law,
then the Property Trustee shall also be the Delaware Trustee and Section 3.11
shall have no application.
SECTION 5.3 Property Trustee; Eligibility.
(a) There shall at all times be one Trustee which shall act as Property
Trustee for so long as this Declaration is required to qualify as an Indenture
under the Trust Indenture Act, which shall:
(i) not be an Affiliate of the Sponsor; and
(ii) be a corporation organized and doing business under the laws of
the United States of America or any State or Territory thereof or of the
District of Columbia, or a corporation or Person permitted by the
Commission to act as an property trustee under the Trust Indenture Act,
authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least 50 million U.S. dollars
($50,000,000), and subject to supervision or examination by federal, state,
territorial or District of Columbia authority. If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of the supervising or examining authority referred to above,
then for the purposes of this Section
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5.3(a)(ii), the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published.
(b) If at any time the Property Trustee shall cease to be eligible to so
act under Section 5.3(a), the Property Trustee shall immediately resign in the
manner and with the effect set forth in Section 5.6(c).
(c) If the Property Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Property Trustee and the Holder of the Common Securities (as if it were the
obligor referred to in Section 310(b) of the Trust Indenture Act) shall in all
respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.
(d) The Trust Preferred Securities Guarantee and the Indenture [Describe
others if applicable] shall be deemed to be specifically described in this
Declaration for purposes of clause (i) of the first provision contained in
Section 310(b) of the Trust Indenture Act.
(e) The initial Property Trustee shall be:
_______________________.
SECTION 5.4 Certain Qualifications of Administrative Trustees and Delaware
Trustee Generally.
Each Administrative Trustee and the Delaware Trustee (unless the Property
Trustee also acts as Delaware 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
Authorized Officers.
SECTION 5.5 Administrative Trustees.
The initial Administrative Trustees shall be:
J. M. Lacey
Darryl G. Smette
William T. Vaughn
(a) Except as expressly set forth in this Declaration and except if a
meeting of the Administrative Trustees is called in accordance with Section 5.9
with respect to any matter over which the Administrative Trustees have power to
act, any power of the Administrative Trustees may be exercised by, or with the
consent of, any one such Administrative Trustee.
(b) Unless otherwise determined by the Administrative Trustees in
accordance with Section 5.9, and except as otherwise required by the Business
Trust Act or applicable law, any Administrative Trustee is authorized to execute
on behalf of the Trust any documents which the Administrative Trustees have the
power and authority to cause the Trust to execute pursuant to Section 3.6.
SECTION 5.6 Appointment, Removal and Resignation of Trustees.
(a) Subject to Section 5.6(b), Trustees may be appointed or removed
without cause at any time:
(i) until the issuance of any Securities, by written instrument
executed by the Sponsor; and
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(ii) after the issuance of any Securities, by vote of the Holders of
a Majority in liquidation amount of the Common Securities voting as a class
at a meeting of the Holders of the Common Securities unless an Event of
Default shall have occurred and be continuing, and
(iii) if an Event of Default shall have occurred and be continuing,
after the issuance of the Securities, with respect to:
(A) the Administrative Trustees, by vote or written consent of
the Holders of a Majority in liquidation amount of the Common
Securities acting separately as a class; and
(B) the Property Trustee and the Delaware Trustee, by vote or
by written consent of the Holders of a Majority in liquidation amount
of the Trust Preferred Securities, acting separately as a class.
(b) (i) The Property Trustee shall not be removed in accordance with
Section 5.6(a) until a Successor Property Trustee has been appointed and has
accepted such appointment by written instrument executed by such Successor
Property Trustee and delivered to the Administrative Trustees, the Delaware
Trustee (if the removed Property Trustee is not also the Delaware Trustee) and
the Sponsor; and
(ii) the Delaware Trustee shall not be removed in accordance with
this Section 5.6(a) until a successor Trustee possessing the qualifications
to act as Delaware Trustee under Sections 5.2 and 5.4 (a "Successor
Delaware Trustee") has been appointed and has accepted such appointment by
written instrument executed by such Successor Delaware Trustee and
delivered to the Administrative Trustees, the Property Trustee (if the
removed Delaware Trustee is not also the Property Trustee) and the Sponsor.
(c) A Trustee appointed to office shall hold office until his successor
shall have been appointed or until his death, bankruptcy, dissolution,
termination, removal or resignation. Any Trustee may resign from office (without
need for prior or subsequent accounting) by an instrument in writing signed by
the Trustee and delivered to the other Trustees, the Sponsor, the Trust and,
after an Event of Default has occurred and is continuing, the Holders of Trust
Preferred Securities, which resignation shall take effect upon such delivery or
upon such later date as is specified therein; provided, however, that:
(i) No such resignation of the Trustee that acts as the Property
Trustee shall be effective:
(A) until a Successor Property Trustee has been appointed and
has accepted such appointment by instrument executed by such Successor
Property Trustee and delivered to the Trust, the Sponsor, the Delaware
Trustee, the resigning Property Trustee and, after an Event of Default
has occurred and is continuing, the Holders of Trust Preferred
Securities; or
(B) until the assets of the Trust have been completely
liquidated and the proceeds thereof distributed to the holders of the
Securities and the Trust is terminated pursuant to the terms of this
Declaration and the Securities; and
(ii) no such resignation of the Trustee that acts as the Delaware
Trustee shall be effective until a Successor Delaware Trustee has been
appointed and has accepted such appointment by instrument executed by such
Successor Delaware Trustee and delivered to the Trust, the Sponsor, the
resigning Delaware Trustee, the Property Trustee and, after an Event of
Default has occurred and is continuing, the Holders of the Trust Preferred
Securities.
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(d) The Holders of the Common Securities or, if an Event of Default has
occurred and is continuing after the issuance of any Securities, the Holders of
Trust Preferred Securities shall use all reasonable efforts to promptly appoint
a Successor Delaware Trustee or Successor Property Trustee as the case may be if
the Property Trustee or the Delaware Trustee delivers an instrument of
resignation in accordance with this Section 5.6.
(e) If no Successor Property Trustee or Successor Delaware Trustee shall
have been appointed and accepted appointment as provided in this Section 5.6
within 60 days after delivery of an instrument of resignation or removal, the
Property Trustee or Delaware Trustee resigning or being removed, as applicable,
may petition any court of competent jurisdiction for appointment of a Successor
Property Trustee or Successor Delaware Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper and prescribe, appoint a
Successor Property Trustee or Successor Delaware Trustee, as the case may be.
(f) No Property Trustee or Delaware Trustee shall be liable for the acts
or omissions to act of any Successor Property Trustee or Successor Delaware
Trustee, as the case may be.
(g) At the time of the resignation or removal of the Property Trustee or
the Delaware Trustee, the Sponsor shall pay to such Trustee any amounts that may
be owed to such Trustee pursuant to Section 10.4.
SECTION 5.7 Vacancies among Trustees.
If a Trustee ceases to hold office for any reason and the number of
Trustees is not reduced pursuant to Section 5.1, or if the number of Trustees is
increased pursuant to Section 5.1, a vacancy shall occur. A resolution
certifying the existence of such vacancy by the Administrative Trustees or, if
there are more than two, a majority of the Administrative Trustees shall be
conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a Trustee appointed in accordance with Section 5.6.
SECTION 5.8 Effect of Vacancies.
The death, resignation, retirement, removal, bankruptcy, dissolution,
liquidation, 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 Trustees shall occur, until such vacancy is filled by the
appointment of an Administrative Trustee in accordance with Section 5.6, the
Administrative Trustees in office, regardless of their number, shall have all
the powers granted to the Administrative Trustees and shall discharge all the
duties imposed upon the Administrative Trustees by this Declaration.
SECTION 5.9 Meetings.
If there is more than one Administrative Trustee, meetings of the
Administrative Trustees shall be held from time to time upon the call of any
Administrative Trustee. Regular meetings of the Administrative Trustees may be
held at a time and place fixed by resolution of the Administrative Trustees.
Notice of any in-person meetings of the Administrative Trustees shall be hand
delivered or otherwise delivered in writing (including by facsimile, with a hard
copy by overnight courier) not less than 48 hours before such meeting. Notice of
any telephonic meetings of the Administrative Trustee or any committee thereof
shall be hand delivered or otherwise delivered in writing (including by
facsimile, with a hard copy by overnight courier) not less than 24 hours before
a meeting. Notices shall contain a brief statement of the time, place and
anticipated purposes of the meeting. The presence (whether in person or by
telephone) of an Administrative Trustee at a meeting shall constitute a waiver
of notice of such meeting except where an Administrative Trustee attends a
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meeting for the express purpose of objecting to the transaction of any activity
on the ground that the meeting has not been lawfully called or convened. Unless
provided otherwise in this Declaration, any action of the Administrative
Trustees may be taken at a meeting by vote of a majority of the Administrative
Trustees present (whether in person or by telephone) and eligible to vote with
respect to such matter, provided that a Quorum is present, or without a meeting
by the unanimous written consent of the Administrative Trustees. In the event
there is only one Administrative Trustee, any and all action of such
Administrative Trustee shall be evidenced by a written consent of such
Administrative Trustee.
SECTION 5.10 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
3.6; and
(b) the Administrative Trustees shall have power to delegate from time to
time to such of their number or to officers of the Trust 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 the Trust, as set forth herein.
SECTION 5.11 Merger, Conversion, Consolidation or Succession to Business.
Any Person into which the Property Trustee or the Delaware Trustee, as the
case may be, may be merged or converted or with which either may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Property Trustee or the Delaware Trustee, as the case
may be, shall be a party, or any Person succeeding to all or substantially all
the corporate trust business of the Property Trustee or the Delaware Trustee, as
the case may be, shall be the successor of the Property Trustee or the Delaware
Trustee, as the case may be, 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; provided
however, that such successor shall promptly notify the Sponsor (except that a
Successor Delaware Trustee shall file an appropriate amendment to the
Certificate of Trust of the Trust, if required by the Business Trust Act).
ARTICLE VI
DISTRIBUTIONS
SECTION 6.1 Distributions.
If and to the extent that the Trust receives income on any Debenture or
pursuant to any Other Document whether in cash, securities or other property as
proceeds from the redemption, repayment, conversion, exchange, maturity or other
disposition of any Debenture or pursuant to any Other Document (including any
interest or premium on or the principal of the Debentures, any securities or
other property received in exchange or upon conversion of the Debentures, or any
cash, securities or other property received under any Other Document), then,
unless otherwise specified in this Declaration, the Property Trustee shall
distribute such income, cash, securities and other property to the Holders of
the Securities in accordance with the terms of the Securities they hold as set
forth in this Declaration, including the Terms and Conditions. The Property
Trustee shall make the distributions on the Trust Preferred Securities and the
Common Securities in accordance with the relative rights, preferences and
privileges that apply to each of those classes of Securities as set forth in
this Declaration, including the Terms and Conditions.
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ARTICLE VII
ISSUANCE OF SECURITIES
SECTION 7.1 General Provisions Regarding Securities.
(a) The Administrative Trustee shall, on behalf of the Trust, issue one
class of preferred securities representing undivided beneficial interests in the
assets of the Trust having such terms as are set forth in the Terms and
Conditions (the "Trust Preferred Securities") and one class of common securities
representing undivided beneficial interests in the assets of the Trust having
such terms as are set forth in the Terms and Conditions (the "Common
Securities"). The Trust shall issue no securities or other interests in the
assets of the Trust other than the Trust Preferred Securities and the Common
Securities.
(b) The terms of the Securities shall be established by the Sponsor and
set forth in the Terms and Conditions. The Terms and Conditions shall be
executed by each of the Administrative Trustees, attached to this Declaration as
Exhibit A and set forth the following to the extent not provided by, or in lieu
or modification of, the other provisions of this Declaration:
(1) the designation of the Trust Preferred Securities and the designation
of the Common Securities;
(2) any limit upon the number and/or aggregate liquidation amount of the
Trust Preferred Securities or the Common Securities to be executed and
delivered under this Declaration (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or
in lieu of, other Securities of such class pursuant to Section 9.2,
9.7 or 9.8, upon repayment or redemption in part of any Security or
upon surrender in part of any Security for conversion or exchange into
other securities pursuant to its terms);
(3) the amounts payable out of the assets of the Trust to, and any other
rights of the Holders upon, the liquidation of the Trust and any
provisions for the dissolution and liquidation of the Trust, including
the obligation, if any, of the Sponsor, the Trust or any other party
to liquidate the Trust and any terms and conditions of such
liquidation;
(4) the date or dates, or the method or methods, if any, by which such
date or dates shall be determined, on which the liquidation amount and
premium, if any, of the Securities are distributable;
(5) the rate or rates at which income on the Trust Property shall be
distributed to Holders, or the method or methods, if any, by which
such rate or rates are to be determined, the date or dates, if any,
from which such income shall accrue or the method or methods, if any,
by which such date or dates are to be determined, the date or dates,
if any, on which such income shall be payable, including any deferral
provisions, and the record date or dates, if any, for the income
payable on the Securities on any such income payment date, the notice,
if any, to Holders regarding the determination of income on a floating
rate Security and the manner of giving such notice, and the basis upon
which interest shall be calculated if other than that of a 360-day
year of twelve 30-day months;
(6) whether the Distributions on the Securities will be cumulative and, if
so, the dates from which and upon which distributions will accumulate
and be payable;
(7) whether, in addition to or other than the Borough of Manhattan, The
City of New York, the place or places where the distributions on the
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Securities may be made, the Securities may be surrendered for
registration of transfer, exchange, redemption, repayment, conversion
or upon maturity, and notices or demands to or upon the Trust in
respect of the Securities and this Declaration may be served;
(8) whether the Trust is obligated or entitled to redeem or purchase any
of such Securities at its option, pursuant to any sinking fund or
analogous provision or at the option of any Holder thereof or
otherwise, and, if so, the date or dates on which, the period or
periods within which, the price or prices at which and the other
terms and conditions upon which such Securities shall be redeemed or
purchased, in whole or in part, pursuant to such obligation, and any
provisions for the remarketing, auction or other secondary sales of
Securities so redeemed or purchased;
(9) the denominations in which the Securities shall be issuable if other
than denominations of $1,000 and any integral multiple;
(10) whether the Securities will be convertible into and/or exchangeable
for other securities or property or both, and if so, the terms and
conditions upon which the Securities will be so convertible or
exchangeable;
(11) any voting rights granted to the Holders of the Trust Preferred
Securities or the Common Securities in addition to or in lieu of the
voting rights set forth elsewhere in this Declaration;
(12) if other than U.S. dollars, the currency in which cash distributions
on the Securities shall be payable;
(13) if cash distributions with respect to the Securities are to be
payable, at the election of the Trust or a Holder thereof or
otherwise, in a currency other than that in which the Securities are
stated to be payable, the date or dates on which, the period or
periods within which, and the other terms and conditions upon which,
such election may be made, and the time and manner of determining the
exchange rate between the currency in which the Securities are stated
to be payable and the currency in which the Securities or any of them
are to be paid pursuant to such election;
(14) whether any distributions may be determined with reference to an
index, formula or other method or methods (which index, formula or
method or methods may be based, without limitation, on one or more
currencies, commodities, equity indices or other indices), and, if
so, the terms and conditions upon which and the manner in which such
amounts shall be determined and paid or payable;
(15) the title and amount of the Debentures and any Other Documents to be
acquired with the proceeds of the sale of the Securities;
(16) the ranking of the Trust Preferred Securities and the Common
Securities; and
(17) any other rights, preferences, restrictions, limitations or
conditions relative to the Trust Preferred Securities or the Common
Securities permitted by Delaware law and any deletions from or
modifications or additions to this Declaration, including any Events
of Default or covenants of any of the parties hereto, in respect of
the Securities, provided no covenant in this Declaration may be
modified without the consent of the party giving such covenant.
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(c) The Certificates shall be in the forms prepared by the Sponsor and
signed on behalf of the Trust by one Administrative Trustee. Such signature
shall be the manual or facsimile signature of any present or any future
Administrative Trustee. In case any Administrative Trustee who shall have signed
any of the Securities shall cease to be such Administrative Trustee before the
Certificates so signed shall be delivered by the Trust, such Certificates
nevertheless may be delivered as though the person who signed such Certificates
had not ceased to be such Administrative Trustee; and any Certificate may be
signed on behalf of the Trust by any persons who, at the actual date of
execution of such Certificate, shall be an Administrative Trustee of the Trust,
although at the date of the execution and delivery of the Agreement any such
person was not such an Administrative Trustee. Certificates shall be printed,
lithographed or engraved or may be produced in any other manner as is reasonably
acceptable to the Administrative Trustee, as evidenced by such individual's
execution thereof, and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements as the
Administrative Trustee that signs such Certificates may deem appropriate, or as
may be required to comply with any law or with any rule or regulation of any
stock exchange on which Securities may be listed, or to conform to usage.
A Trust Preferred Security Certificate shall not be valid until
authenticated by the manual signature of an authorized officer of the Property
Trustee. Such signature shall be conclusive evidence that a Trust Preferred
Security Certificate has been authenticated under this Declaration.
Each Trust Preferred Security Certificate shall be dated the date of its
authentication by the Property Trustee. Each Common Security Certificate shall
be dated the date it is executed by an Administrative Trustee.
Upon a written order of the Trust signed by one Administrative Trustee, the
Property Trustee shall authenticate Trust Preferred Security Certificates,
provided the aggregate liquidation amount or number of the Trust Preferred
Securities shall not exceed the aggregate liquidation amount or number, as the
case may be, of Trust Preferred Securities designated in the Terms and
Conditions, as such liquidation amount or number, as the case may be, may be
reduced by redemptions, repayments, exchanges, conversions or liquidating
distributions.
The Property Trustee may appoint an authenticating agent acceptable to the
Administrative Trustees to authenticate Trust Preferred Security Certificates.
An authenticating agent may authenticate Trust Preferred Security Certificates
whenever the Property Trustee may do so. Each reference in this Declaration to
authentication by the Property Trustee includes authentication by such agent. An
authenticating agent has the same rights as the Property Trustee to deal with
the Sponsor or an Affiliate of the Sponsor.
(d) The consideration received by the Trust for the issuance of the
Securities shall constitute a contribution to the capital of the Trust and shall
not constitute a loan to the Trust.
(e) Upon issuance of the Securities as provided in this Declaration, the
Securities so issued shall be deemed to be validly issued, fully paid and,
subject to Section 10.1(b), non-assessable.
(f) Every Person, by virtue of having become a Holder or a Trust Preferred
Security Beneficial Owner in accordance with the terms of this Declaration,
shall be deemed to have expressly assented and agreed to the terms of, and
shall be bound by, this Declaration.
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SECTION 7.2 Paying Agent and Registrar.
In the event that the Trust Preferred Securities are not in book-entry only
form:
(a) The Trust shall maintain in the Borough of Manhattan, The City of New
York, an office or agency where the Trust Preferred Securities may be presented
for payment ("Paying Agent"), and any such Paying Agent shall comply with
Section 317(b) of the Trust Indenture Act. The Administrative Trustees on behalf
of the Trust may appoint the Paying Agent and may appoint one or more additional
paying agents in such other locations as it shall determine. The term "Paying
Agent" includes any additional paying agent. The Administrative Trustees on
behalf of the Trust may change any Paying Agent without prior notice to any
Holder. The Administrative Trustees on behalf of the Trust shall notify the
Property Trustee of the name and address of any Paying Agent not a party to this
Declaration. If the Administrative Trustees on behalf of the Trust fail to
appoint or maintain another entity as Paying Agent, the Property Trustee shall
act as such. The Administrative Trustees on behalf of the Trust or any of its
Affiliates (including the Sponsor) may act as Paying Agent. The Property Trustee
at its Corporate Trust Office shall initially act as Paying Agent for the Trust
Preferred Securities and the Common Securities.
(b) The Trust shall maintain in the Borough of Manhattan, The City of New
York, an office or agency where Trust Preferred Securities may be presented for
registration of transfer or exchange ("Registrar"). The Registrar shall keep a
register of the Trust Preferred Securities and of their transfer or exchange.
The Administrative Trustees on behalf of the Trust may appoint the Registrar and
may appoint one or more co-registrars in such other locations as it shall
determine. The term "Registrar" includes any such additional registrar. The
Administrative Trustees on behalf of the Trust may change any Registrar or co-
registrar without prior notice to any Holder. The Administrative Trustees on
behalf of the Trust shall notify the Property Trustee of the name and address of
any Agent not a party to this Declaration. If the Administrative Trustees on
behalf of the Trust fail to appoint or maintain another entity as Registrar, the
Property Trustee shall act as such. The Trust or any of its Affiliates
(including the Sponsor) may act as Registrar. The Administrative Trustees on
behalf of the Trust shall act as Registrar for the Common Securities.
(c) Notwithstanding Sections 3.6(b)(vi) and 3.6(l), the Trust initially
appoints the Property Trustee as Registrar for the Trust Preferred Securities
and authorizes it to execute and deliver letters, documents and instruments with
DTC and other Clearing Agencies relating to the Trust Preferred Securities.
ARTICLE VIII
TERMINATION OF TRUST
SECTION 8.1 Termination of Trust.
(a) The Trust shall dissolve and its affairs shall be would up upon the
first of the following to occur:
(i) (other than in connection with a merger, consolidation or
similar transaction not prohibited by this Declaration or any Trust
Property) upon the filing of a certificate of dissolution or its equivalent
with respect to the Sponsor; or the revocation of the Sponsor's charter and
the expiration of 90 days after the date of revocation without a
reinstatement thereof;
(ii) upon the entry of a decree of judicial dissolution of the
Trust;
(iii) when all the Securities shall have been called for redemption,
repayment, conversion or exchange and the amounts necessary for redemption,
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repayment, conversion or exchange thereof shall have been distributed to
the Holders in accordance with the terms of this Declaration and the
Securities;
(iv) upon the liquidation of the Trust and the distribution to the
Holders of all amounts they are required to receive in accordance with the
terms of this Declaration and the Securities;
(v) the expiration of the term of the Trust provided in Section
3.14 of this Declaration; and
(vi) any other event specified in the Terms and Conditions.
(b) As soon as is practicable after the occurrence of an event referred to
in Section 8.1(a) and upon completion of the winding-up of the Trust, an
Administrative Trustee shall file a certificate of cancellation of the
Certificate of Trust with the Secretary of State of the State of Delaware.
(c) The provisions of Section 4.4 and Article X shall survive the
termination of the Trust.
ARTICLE IX
TRANSFER OF INTERESTS
SECTION 9.1 Transfer of Securities.
(a) Securities may only be transferred, in whole or in part, in accordance
with the terms and conditions set forth in this Declaration and in the terms of
the Securities. Any transfer or purported transfer of any Security not made in
accordance with this Declaration shall be null and void.
(b) Subject to this Article IX and the Terms and Conditions, Trust
Preferred Securities shall be freely transferable.
(c) Subject to this Article IX, the Sponsor and any Related Party may only
transfer Common Securities to the Sponsor or a Related Party of the Sponsor;
provided that, any such transfer is subject to the condition precedent that the
transferor obtain the written opinion of independent counsel experienced in such
matters that such transfer would not cause more than an insubstantial risk that:
(i) the Trust would not be classified for United States federal
income tax purposes as a grantor trust; and
(ii) the Trust would be an Investment Company or the transferee
would become an Investment Company.
SECTION 9.2 Transfer or Exchange of Certificates.
The Registrar shall provide for the registration of Certificates and of
transfers or exchanges of Certificates, which will be effected without charge
but only upon payment (with such indemnity as the Administrative Trustees may
require) in respect of any tax or other government charges that may be imposed
in relation to it. The Trust will not be required to register or cause to be
registered the transfer of its Trust Preferred Securities after they have been
converted, exchanged repaid, redeemed or called for redemption. Upon surrender
for registration of transfer or exchange of any Certificate at the Corporate
Trust Office of the Property Trustee, the applicable Registrar shall cause one
or more new Certificates to be issued in the name of the designated transferee
or transferees or the party requesting the exchange, as the case may be. Every
Certificate surrendered for registration of transfer or exchange shall be
accompanied by a written instrument of transfer or exchange in form
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satisfactory to the applicable Registrar and duly executed by the Holder or such
Holder's attorney duly authorized in writing. Every Certificate surrendered for
registration of transfer or exchange shall be cancelled by the applicable
Registrar. A transferee of a Certificate and the recipient of one or more
Certificates issued in exchange for cancelled Certificates shall be entitled to
the rights and subject to the obligations of a Holder hereunder upon the receipt
by such transferee or recipient of a Certificate or Certificates duly executed
by an Administrative Trustee and, in the case of a Trust Preferred Security
Certificate, authenticated by the Property Trustee. By acceptance of a
Certificate, each transferee shall be deemed to have agreed to be bound by this
Declaration.
SECTION 9.3 Deemed Security Holders.
The Trustees may treat the Person in whose name any Certificate shall be
registered on the books and records of the Trust as the sole holder of such
Certificate and of the Securities represented by such Certificate for purposes
of receiving Distributions and for all other purposes whatsoever and,
accordingly, shall not be bound to recognize any equitable or other claim to or
interest in such Certificate or in the Securities represented by such
Certificate on the part of any Person, whether or not the Trust shall have
actual or other notice thereof.
SECTION 9.4 Book Entry Interests.
Unless otherwise specified in the Terms and Conditions, the Trust Preferred
Securities Certificates, on original issuance, shall be issued in the form of
one or more, fully registered, global Trust Preferred Security Certificates
(each a "Global Certificate"), to be delivered to DTC, the initial Clearing
Agency, by, or on behalf of, the Trust. Each such Global Certificate shall
initially be registered on the books and records of the Trust in the name of
Cede & Co., the nominee of DTC, and no Trust Preferred Security Beneficial Owner
will receive a definitive Trust Preferred Security Certificate representing such
Trust Preferred Security Beneficial Owner's interests in any Global Certificate,
except as provided in Section 9.7. Except for the definitive Trust Preferred
Security Certificates issued to the Trust Preferred Security Beneficial Owners
pursuant to Section 9.7 or in accordance with the Terms and Conditions:
(a) the provisions of this Section 9.4 shall be in full force and effect;
(b) the Trust, the Trustees and any Agent shall be entitled to deal with
the Clearing Agency for all purposes of this Declaration (including the payment
of distributions on any Global Certificate and receiving approvals, votes or
consents hereunder) as the Holder of the Trust Preferred Securities and the sole
holder of any Global Certificate and shall have no obligation to the Trust
Preferred Security Beneficial Owners;
(c) to the extent that the provisions of this Section 9.4 conflict with
any other provisions of this Declaration other than the Terms and Conditions,
the provisions of this Section 9.4 shall control; and
(d) the rights of the Trust Preferred Security Beneficial Owners shall be
exercised only through the Clearing Agency and shall be limited to those
established by law and agreements between the Trust Preferred Security
Beneficial Owners and the Clearing Agency and/or the Clearing Agency
Participants to receive and transmit payments and other distributions on the
Global Certificates to such Clearing Agency Participates. DTC will make book
entry transfers among the Clearing Agency Participants; provided, that, solely
for the purposes of determining whether the Holders of the requisite amount of
Trust Preferred Securities have voted on any matter provided for in this
Declaration, the Trustees may conclusively rely on, and shall be protected in
relying on, any written instrument (including a proxy) delivered to the Trustees
by the Clearing Agency setting forth the Trust Preferred Security Beneficial
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Owners' votes or assigning the right to vote on any matter to any other Persons
either in whole or in part.
SECTION 9.5 Notices to Clearing Agency.
Whenever a notice or other communication to the Trust Preferred Security
Holders is required under this Declaration, unless and until Definitive Trust
Preferred Security Certificates shall have been issued to the Trust Preferred
Security Beneficial Owners pursuant to Section 9.7, the Administrative Trustees
shall give all such notices and communications specified herein to be given to
the Trust Preferred Security Holders to the Clearing Agency, and shall have no
notice obligations to the Trust Preferred Security Beneficial Owners.
SECTION 9.6 Appointment of Successor Clearing Agency.
If any Clearing Agency elects to discontinue its services as securities
depositary with respect to the Trust Preferred Securities, the Administrative
Trustees may, in their sole discretion, appoint a successor Clearing Agency with
respect to such Trust Preferred Securities.
SECTION 9.7 Definitive Trust Preferred Security Certificate.
If:
(a) a Clearing Agency elects to discontinue its services as securities
depositary with respect to the Trust Preferred Securities and a successor
Clearing Agency is not appointed within 90 days after such discontinuance
pursuant to Section 9.6; or
(b) the Administrative Trustees elect after consultation with the Sponsor
to terminate the book entry system through the Clearing Agency with respect to
the Trust Preferred Securities,
then:
(c) definitive fully registered Trust Preferred Security Certificates
shall be prepared and executed by the Administrative Trustees and authenticated
by the Property Trustee on behalf of the Trust with respect to such Trust
Preferred Securities; and
(d) upon surrender of the Global Certificates by the Clearing Agency,
accompanied by registration instructions, the Administrative Trustees shall
cause definitive fully registered Trust Preferred Securities Certificates to be
executed, and the Property Trustee shall cause such Trust Preferred Securities
Certificates to be authenticated and delivered to Trust Preferred Security
Beneficial Owners in accordance with the instructions of the Clearing Agency.
Neither the Trustees nor the Trust shall be liable for any delay in delivery of
such instructions and each of them may conclusively rely on and shall be
protected in relying on, said instructions of the Clearing Agency. The
definitive fully registered Trust Preferred Security Certificates shall be
printed, lithographed or engraved or may be produced in any other manner as is
reasonably acceptable to the Administrative Trustees, as evidenced by their
execution thereof, and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements as the
Administrative Trustees may deem appropriate, or as may be required to comply
with any law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any stock exchange on which Trust Preferred Securities may
be listed, or to conform to usage.
SECTION 9.8 Mutilated, Destroyed, Lost or Stolen Certificates.
If:
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(a) any mutilated Certificates should be surrendered to the Administrative
Trustees, or if the Administrative Trustees shall receive evidence to their
satisfaction of the destruction, loss or theft of any Certificate; and
(b) there shall be delivered to the Property Trustee and the
Administrative Trustees such security or indemnity as may be required by them to
keep each of the Trustees and the Trust harmless,
then:
in the absence of notice that such Certificate shall have been acquire by a bona
fide purchaser, any Administrative Trustee on behalf of the Trust shall execute
and deliver and, in the case of a Trust Preferred Securities Certificate, the
Property Trustee shall authenticate, in exchange for, or in lieu of, any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
denomination. In connection with the issuance of any new Certificate under this
Section 9.8, the Property Trustee and the Administrative Trustees 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 Certificate issued
pursuant to this Section shall constitute conclusive evidence of an ownership
interest in the relevant Securities, as if originally issued, whether or not the
lost, stolen or destroyed Certificate shall be found at any time.
ARTICLE X
LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS
SECTION 10.1 Liability.
(a) Except as expressly set forth in this Declaration, the Debentures, any
other instrument or agreement, the Securities Guarantees and the terms of the
Securities, the Sponsor shall not be:
(i) personally liable for the return of any portion of the capital
contributions (or any return thereon) of the Holders of the Securities
which shall be made solely from assets of the Trust; or
(ii) required to pay to the Trust or to any Holder of Securities any
deficit upon dissolution of the Trust or otherwise.
(b) The Sponsor, as Debenture Issuer, shall be liable for all of the debts
and obligations of the Trust (other than with respect to the Securities) to the
extent not satisfied out of the Trust's assets.
(c) Pursuant to Section 3803(a) of the Business Trust Act, the Holders of
the Trust Preferred Securities 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.
SECTION 10.2 Exculpation.
(a) No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Trust or any Covered Person for any loss, damage or
claim incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith on behalf of the Trust and in a manner such
Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Declaration or by law, except that
an Indemnified Person shall be liable for any such loss, damage or claim
incurred by reason of such Indemnified Person's gross negligence (or, in the
case of the Property Trustee, negligence), bad faith or willful misconduct with
respect to such acts or omissions.
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(b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Trust and upon such information, opinions, reports
or statements presented to the Trust by any Person as to matters the Indemnified
Person reasonably believes are within such other Person's professional or expert
competence and who has been selected with reasonable care by or on behalf of the
Trust, including information, opinions, reports or statements as to the value
and amount of the assets, liabilities, profits, losses, or any other facts
pertinent to the existence and amount of assets from which Distributions to
Holders of Securities might properly be paid.
SECTION 10.3 Fiduciary Duty.
(a) To the extent that, at law or in equity, an Indemnified Person has
duties (including fiduciary duties) and liabilities relating thereto to the
Trust or to any other Covered Person, an Indemnified Person acting under this
Declaration shall not be liable to the Trust or to any other Covered Person for
its good faith reliance on the provisions of this Declaration. The provisions of
this Declaration, to the extent that they restrict the duties and liabilities of
an Indemnified Person otherwise existing at law or in equity (other than the
duties imposed on the Property Trustee under the Trust Indenture Act), are
agreed by the parties hereto to replace such other duties and liabilities of
such Indemnified Person.
(b) Unless otherwise expressly provided herein:
(i) whenever a conflict of interest exists or arises between any
Covered Persons and any Indemnified Person; or
(ii) whenever this Declaration or any other agreement contemplated
herein or therein provides that an Indemnified Person shall act in a manner
that is, or provides terms that are, fair and reasonable to the Trust or
any Holder of Securities, the Indemnified Person shall resolve such
conflict of interest, take such action or provide such terms, considering
in each case the relative interest of each party (including its own
interest) to such conflict, agreement, transaction or situation and the
benefits and burdens relating to such interests, any customary or accepted
industry practices, and any applicable generally accepted accounting
practices or principles. In the absence of bad faith by the Indemnified
Person, the resolution, action or term so made, taken or provided by the
Indemnified Person shall not constitute a breach of this Declaration or any
other agreement contemplated herein or of any duty or obligation of the
Indemnified Person at law or in equity or otherwise.
(c) Whenever in this Declaration an Indemnified Person is permitted or
required to make a decision:
(i) in its "discretion" or under a grant of similar authority, the
Indemnified Person shall be entitled to consider such interests and factors
as it desires, including its own interests, and shall have no duty or
obligation to give any consideration to any interest of or factors
affecting the Trust or any other Person; or
(ii) in its "good faith" or under another express standard, the
Indemnified Person shall act under such express standard and shall not be
subject to any other or different standard imposed by this Declaration or
by applicable law.
SECTION 10.4 Indemnification.
(a) (i) The Sponsor shall indemnify, to the full extent permitted by law,
any Company Indemnified Person who was or is a party or is threatened to be made
a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action
by or in the right of
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the Trust) by reason of the fact that he is or was a Company Indemnified Person
against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the Trust,
and, with respect to any criminal action or proceeding, had no reasonable cause
to believe his conduct was unlawful. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption that
the Company Indemnified Person did not act in good faith and in a manner which
he reasonably believed to be in or not opposed to the best interests of the
Trust, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that his conduct was unlawful.
(ii) The Sponsor shall indemnify, to the full extent permitted by
law, any Company Indemnified Person who was or is a party or is threatened
to be made a party to any threatened, pending or completed action or suit
by or in the right of the Trust to procure a judgment in its favor by
reason of the fact that he is or was a Company Indemnified Person against
expenses (including attorneys' fees) actually and reasonably incurred by
him in connection with the defense or settlement of such action or suit if
he acted in good faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Trust and except that no such
indemnification shall be made in respect of any claim, issue or matter as
to which such Company Indemnified Person shall have been adjudged to be
liable to the Trust unless and only to the extent that the Court of
Chancery of Delaware or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses which such
Court of Chancery or such other court shall deem proper.
(iii) Any indemnification under paragraphs (i) and (ii) of this
Section 10.4(a) (unless ordered by a court) shall be made by the Sponsor
only as authorized in the specific case upon a determination that
indemnification of the Company Indemnified Person is proper in the
circumstances because he has met the applicable standard of conduct set
forth in paragraphs (i) and (ii). Such determination shall be made (1) by
the Administrative Trustees by a majority vote of a Quorum consisting of
such Administrative Trustees who were not parties to such action, suit or
proceeding, (2) if such a Quorum is not obtainable, or, even if obtainable,
if a Quorum of disinterested Administrative Trustees so directs, by
independent legal counsel in a written opinion, or (3) by the Common
Security Holder of the Trust.
(iv) Expenses (including attorneys' fees) incurred by a Company
Indemnified Person in defending a civil, criminal, administrative or
investigative action, suit or proceeding referred to in paragraphs (i) and
(ii) of this Section 10.4(a) shall be paid by the Sponsor in advance of the
final disposition of such action, suit or proceeding upon receipt of an
undertaking by or on behalf of such Company Indemnified Person to repay
such amount if it shall ultimately be determined that he is not entitled to
be indemnified by the Sponsor as authorized in this Section 10.4(a).
Notwithstanding the foregoing, no advance shall be made by the Sponsor if a
determination is reasonably and promptly made (i) by the Administrative
Trustees by a majority vote of a quorum of disinterested Administrative
Trustees, (ii) if such a quorum is not obtainable, or, even if obtainable,
if a Quorum of disinterested Administrative Trustees so directs, by
independent legal counsel in a written opinion or (iii) the Common Security
Holder of the Trust, that, based upon the facts known to the Administrative
Trustees, independent legal counsel or Common Security Holder at the time
such determination is made, such Person acted in bad faith or in a manner
that such person did not believe to be in or not opposed to the best
interests of the Trust, or, with respect to any criminal proceeding, that
such Company Indemnified Person believed or had reasonable cause to believe
his
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conduct was unlawful. In no event shall any advance be made in instances
where the Administrative Trustees, independent legal counsel or Common
Security Holder reasonably determine that such person deliberately breached
such persons' duty to the Trust or its Common or Trust Preferred Security
Holders.
(v) The indemnification and advancement of expenses provided by, or
granted pursuant to, the other paragraphs of this Section 10.4(a) shall not
be deemed exclusive of any other rights to which those seeking
indemnification and advancement of expenses may be entitled under any
agreement, vote of stockholders or disinterested directors of the Sponsor
or Trust Preferred Security Holders of the Trust or otherwise, both as to
action in his official capacity and as to action in another capacity while
holding such office. All rights to indemnification under this Section
10.4(a) shall be deemed to be provided by a contract between the Sponsor
and each Company Indemnified Person who serves in such capacity at any time
while this Section 10.4(a) is in effect. Any repeal or modification of this
Section 10.4(a) shall not affect any rights or obligations then existing.
(vi) The Sponsor or the Trust may purchase and maintain insurance on
behalf of any person who is or was a Company Indemnified Person against any
liability asserted against him and incurred by him in any such capacity, or
arising out of his status as such, whether or not the Sponsor would have
the power to indemnify him against such liability under the provisions of
this Section 10.4(a)
(vii) For purposes of this Section 10.4(a), references to "the Trust"
shall include, in addition to the resulting or surviving entity, any
constituent entity (including any constituent of a constituent) absorbed in
a consolidation or merger, so that any person who is or was a director,
trustee, officer or employee of such constituent entity, or is or was
serving at the request of such constituent entity as a director, trustee,
officer, employee or agent of another entity, shall stand in the same
position under the provisions of this Section 10.4(a) with respect to the
resulting or surviving entity as he would have with respect to such
constituent entity if its separate existence had continued.
(viii) The indemnification and advancement of expenses provided by, or
granted pursuant to, this Section 10.4(a) shall, unless otherwise provided
when authorized or ratified, continue as to a person who has ceased to be a
Company Indemnified Person and shall inure to the benefit of the heirs,
executors and administrators of such a person.
(b) To the fullest extent permitted by law, the Sponsor agrees to
indemnify each Fiduciary Indemnified Person for, and to hold each Fiduciary
Indemnified Person harmless against, any loss, liability or expense to the
extent incurred without gross negligence (or in the case of the Property
Trustee, pursuant to Section 3.9, negligence), bad faith or willful misconduct
on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses (including reasonable legal fees and expenses) of defending itself
against or investigating any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder. The provisions of this
Section 10.4(b) shall survive the satisfaction and discharge of this Declaration
and any resignation or removal of the Property Trustee or the Delaware Trustee,
as the case may be.
SECTION 10.5 Outside Business.
Any Covered Person, the Sponsor, the Delaware Trustee and the Property
Trustee (subject to Section 5.3(c)) 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 the Trust and
the Holders of Securities
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shall have no rights by virtue of this Declaration 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. No Covered Person, the Sponsor, the Delaware Trustee, or
the Property 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 any Covered Person,
the Sponsor, the Delaware Trustee and the Property 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
Covered Person, the Delaware Trustee and the Property Trustee may engage or be
interested in any financial or other transaction with the Sponsor or any
Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or
act on any committee or body of holders of, securities or other obligations of
the Sponsor of its Affiliates.
SECTION 10.6 Trustee's Fees and Expenses.
Each Trustee shall receive as compensation for its services hereunder such
fees and expenses as have been separately agreed upon before the date hereof
between the Sponsor and such Trustee, and each Trustee shall be entitled to be
reimbursed by the Sponsor for other reasonable expenses hereunder, including the
reasonable compensation, expenses and disbursements of such agents,
representatives, experts and counsel as such Trustee may employ in connection
with the exercise and performance of its rights and duties hereunder.
ARTICLE XI
ACCOUNTING
SECTION 11.1 Fiscal Year.
The fiscal year ("Fiscal Year") of the Trust shall be the calendar year, or
such other year as is required by the Code.
SECTION 11.2 Certain Accounting Matters.
(a) At all times during the existence of the Trust, the Administrative
Trustees shall keep, or cause to be kept, full books, records and supporting
documents, which shall reflect in detail, each transaction of the Trust. The
books of account shall be maintained on the accrual method of accounting in
compliance with generally accepted accounting principles, consistently applied.
The Trust shall use the accrual method of accounting for the United States
federal income tax purposes. The books of account and the records of the Trust
shall be examined by and reported upon as of the end of each Fiscal Year of the
Trust by a firm of independent certified public accountants selected by the
Administrative Trustees.
(b) The Administrative Trustees, on behalf of the Trust, shall cause to be
duly prepared and delivered to each of the Holders of Securities, any annual
United States federal income tax information statement, required by the Code and
the Treasury Regulations, containing such information with regard to the
Securities held by each Holder as is required by the Code and the Treasury
Regulations. Notwithstanding any right under the Code to deliver any such
statement at a later date, the Administrative Trustees on behalf of the Trust
shall endeavor to deliver all such statements within 30 days after the end of
each Fiscal Year of the Trust.
(c) The Administrative Trustees on behalf of the Trust shall cause to be
duly prepared and filed with the appropriate taxing authority, an annual United
States federal income tax return, on a Form 1041 or such other form required by
United States federal income tax law, and any other annual income tax returns
required to be filed by the Administrative Trustees on behalf of the Trust with
any state or local taxing authority.
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SECTION 11.3 Banking.
The Trust shall maintain one or more bank accounts in the name and for the
sole benefit of the Trust; provided, however, that all payments for the benefit
of holders of Securities of funds in respect of the Trust Property shall be made
directly to the Property Trustee Account and no other funds of the Trust shall
be deposited in the Property Trustee Account. The sole signatories for such
accounts shall be designated by the Administrative Trustees; provided, however,
that the Property Trustee shall designate the signatories for the Property
Trustee Account.
SECTION 11.4 Withholding.
The Trust and the Administrative Trustees shall comply with all withholding
requirements under United States federal, state and local law. The Trust shall
request, and the Holders shall provide to the Trust, such forms or certificates
as are necessary to establish an exemption from withholding with respect to each
Holder, and any representations and forms as shall reasonably be requested by
the Trust to assist it in determining the extent of, and in fulfilling, its
withholding obligations. The Administrative Trustees shall file required forms
with applicable jurisdictions and, unless an exemption from withholding is
properly established by a Holder, shall remit amounts withheld with respect to
the Holder to applicable jurisdictions. To the extent that the Trust is required
to withhold and pay over any amounts to any authority with respect to
distributions or allocations to any Holder, the amount withheld shall be deemed
to be a distribution in the amount of the withholding to the Holder. In the
event of any claimed over-withholding, Holders shall be limited to an action
against the applicable jurisdiction. If the amount required to be withheld was
not withheld from actual Distributions made, the Trust may reduce subsequent
Distributions by the amount of such withholding.
ARTICLE XII
AMENDMENTS AND MEETINGS
SECTION 12.1 Amendments.
(a) Except as otherwise provided in this Declaration or by any applicable
terms of the Securities, this Declaration may only be amended by a written
instrument approved and executed by the Sponsor and:
(i) the Administrative Trustees (or, if there are more than two
Administrative Trustees a majority of the Administrative Trustees);
(ii) if the amendment affects the rights, powers, duties,
obligations or immunities of the Property Trustee, the Property Trustee;
and
(iii) if the amendment affects the rights, powers, duties,
obligations or immunities of the Delaware Trustee, the Delaware Trustee;
(b) no amendment shall be made, and any such purported amendment shall be
void and ineffective:
(i) unless, in the case of any proposed amendment, the Property
Trustee shall have first received an Officers' Certificate from each of the
Trust and the Sponsor that such amendment is permitted by, and conforms to,
the terms of this Declaration (including the terms of the Securities);
(ii) unless, in the case of any proposed amendment which affects the
rights, powers, duties, obligations or immunities of the Property Trustee,
the Property Trustee shall have first received:
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(A) an Officers' Certificate from each of the Trust and the
Sponsor that such amendment is permitted by, and conforms to, the
terms of this Declaration (including the terms of the Securities); and
(B) an opinion of counsel (who may be counsel to the Sponsor
or the Trust) that such amendment is permitted by, and conforms to,
the terms of this Declaration (including the terms of the Securities);
and
(iii) to the extent the result of such amendment would be to:
(A) cause the trust to fail to continue to be classified for
purposes of United States federal income taxation as a grantor trust;
(B) reduce or otherwise adversely affect the powers of the
Property Trustee in contravention of the Trust Indenture Act; or
(C) cause the Trust to be deemed to be an Investment Company
required to be registered under the Investment Company Act;
(c) after the Trust has issued any Securities that remain outstanding,
without the consent of the Holders of a Majority in liquidation amount of each
class of Securities affected, this Declaration may not be amended for any reason
in a manner that would adversely affect the rights, privileges or preferences of
such class of Securities, provided that, except as may be provided in the Terms
and Conditions, without the consent of each Holder of Securities affected
thereby, this Declaration may not be amended to:
(i) change the Distribution rate, or manner of calculation of the
Distribution rate, amount, timing or currency or otherwise adversely affect
the method of any required payment;
(ii) change the purpose of the Trust;
(iii) authorize the issuance of any additional beneficial interests
of the Trust;
(iv) change the conversion, exchange, redemption or repayment
provisions, if any;
(v) change the conditions precedent for the Sponsor to elect to
dissolve the Trust and distribute the debt securities held by the Trust to
the Holders of the Trust Securities, if applicable;
(vi) change the liquidation, distribution or other provisions
relating to the distribution of amounts payable upon the dissolution and
liquidation of the Trust;
(vii) affect the limited liability of any Holder of the Trust
Securities; or
(viii) restrict the right of a Holder of the Trust Securities to
institute suit for the enforcement of any required payment on or, if
applicable, after the due date therefor or for the conversion or exchange
of the Securities in accordance with their terms.
(d) Section 9.1(c) and this Section 12.1 shall not be amended without the
consent of all of the Holders of the Securities;
(e) Article IV shall not be amended without the consent of the Sponsor;
and
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(f) the rights of the holders of the Common Securities under Article V to
increase or decrease the number of, and appoint and remove Trustees shall not be
amended without the consent of the Holders of a Majority in liquidation amount
of the Common Securities; and
(g) notwithstanding Section 12.1(c), this Declaration may be amended by
the Trustees and the Sponsor without the consent of the Holders of the
Securities that are outstanding to:
(i) cure any ambiguity;
(ii) correct or supplement any provision in this declaration that
may be defective or inconsistent with any other provision of this
Declaration;
(iii) add to the covenants, restrictions or obligations of the
Sponsor;
(iv) to conform to any change in the Investment Company Act or the
Trust Indenture Act or the rules and regulations promulgated thereunder or
any written change in interpretation or application of such act or such
rules or regulations by any legislative body, court, government agency or
regulatory authority; or
(v) cause the Trust to continue to be classified for United States
federal income tax purposes as a grantor trust,
provided, however, that, in the case of clauses (i) or (ii), such action shall
not adversely affect in any material respect the interests of the Holders.
Any amendments to this Declaration adopted pursuant to Section 12.1(g)
shall become effective when notice thereof is given to the Holders.
SECTION 12.2 Meetings of the Holders of Securities; Action by Written Consent.
(a) Meetings of the Holders of any class of Securities may be called at
any time by the Administrative Trustees (or as provided in the terms of the
Securities) to consider and act on any matter on which Holders of such class of
Securities are entitled to act under the terms of this Declaration, the terms of
the Securities or the rules of any stock exchange on which the Trust Preferred
Securities are listed or admitted for trading. The Administrative Trustees shall
call a meeting of the Holders if directed to do so by the Holders of at least
10% in liquidation amount of Securities. Such direction shall be given by
delivering to the Administrative Trustees one or more calls in a writing stating
that the signing Holders of Securities wish to call a meeting and indicating the
general or specific purpose for which the meeting is to be called. Any Holders
of Securities calling a meeting shall specify in writing the Security
Certificates held by the Holders of Securities exercising the right to call a
meeting and only those Securities specified shall be counted for purposes of
determining whether the required percentage set forth in the second sentence of
this paragraph has been met.
(b) Except to the extent otherwise provided in the terms of the
Securities, the following provisions shall apply to meetings of Holders of
Securities:
(i) notice of any such meeting shall be given to all the Holders of
Securities having a right to vote thereat at least 7 days and not more than
60 days before the date of such meeting. Whenever a vote, consent or
approval of the Holders of Securities is permitted or required under this
Declaration, the terms of the Securities or the rules of any stock exchange
on which the Trust Preferred Securities are listed or admitted for trading,
such vote, consent or approval may be given at a meeting of the Holders of
Securities. Any action that may be taken at a meeting of the Holders of
Securities may be taken
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without a meeting if a consent in writing setting forth the action so taken
is signed by the Holders of Securities owning not less than the minimum
amount of Securities in liquidation amount that would be necessary to
authorize or take such action at a meeting at which all Holders of
Securities having a right to vote thereon were present and voting. Prompt
notice of the taking of action without a meeting shall be given to the
Holders of Securities entitled to vote who have not consented in writing.
The Administrative Trustees may specify that any written ballot submitted
to the Security Holder for the purpose of taking any action without a
meeting shall be returned to the Trust within the time specified by the
Administrative Trustees;
(ii) each Holder of a Security may authorize any Person to act for
it by proxy on all matters in which a Holder of Securities is entitled to
participate, including waiving notice of any meeting, or voting or
participating at a meeting. No proxy shall be valid after the expiration of
11 months from the date thereof unless otherwise provided in the proxy.
Every proxy shall be revocable at the pleasure of the Holder of Securities
executing it. Except as otherwise provided herein, all matters relating to
the giving, voting or validity of proxies shall be governed by the General
Corporation Law of the State of Delaware relating to proxies, and judicial
interpretations thereunder, as if the Trust were a Delaware corporation and
the Holders of the Securities were stockholders of a Delaware corporation;
(iii) each meeting of the Holders of the Securities shall be
conducted by the Administrative Trustees or by such other Person that the
Administrative Trustees may designate; and
(iv) unless the Business Trust Act, this Declaration, the terms of
the Securities, the Trust Indenture Act or the listing rules of any stock
exchange on which the Trust Preferred Securities are then listed or
trading, otherwise provides, the Administrative Trustees, in their sole
discretion, shall establish all other provisions relating to meetings of
Holders of Securities, including notice of the time, place or purpose of
any meeting at which any matter is to be voted on by any Holders of
Securities, waiver of any such notice, action by consent without a meeting,
the establishment of a record date, quorum requirements, voting in person
or by proxy or any other matter with respect to the exercise of any such
right to vote.
ARTICLE XIII
REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE
SECTION 13.1 Representations and Warranties of Property Trustee.
The Trustee that acts as initial Property Trustee represents and warrants
to the Trust and to the Sponsor at the date of this Declaration, and each
Successor Property Trustee represents and warrants, as applicable, to the Trust
and the Sponsor at the time of the Successor Property Trustee's acceptance of
its appointment as Property Trustee that:
(a) the Property Trustee is a banking corporation, a national banking
association or a bank with trust powers, duly organized, validly existing and in
good standing under the laws of the United States of America or any State of the
United States, with trust power and authority to execute and deliver, and to
carry out and perform its obligations under the terms of, the Declaration;
(b) the Property Trustee satisfies the requirements set forth in Section
5.3(a);
(c) 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. The Declaration has been duly executed and
delivered by the
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Property Trustee, and it 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);
(d) the execution, delivery and performance of the Declaration by the
Property Trustee does not conflict with or constitute a breach of the charter or
by-laws of the Property Trustee; and
(e) 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 Property Trustee, of the Declaration.
SECTION 13.2 Representations and Warranties of Delaware Trustee.
The Trustee that acts as initial Delaware Trustee represents and warrants
to the Trust and to the Sponsor at the date of this Declaration, and each
Successor Delaware Trustee represents and warrants to the Trust and the Sponsor
at the time of the Successor Delaware Trustee's acceptance of its appointment as
Delaware Trustee that:
(a) The Delaware Trustee is a Delaware banking corporation with trust
powers, duly organized, validly existing and in good standing, with trust power
and authority to execute and deliver, and to carry out and perform its
obligations under the terms of, the Declaration.
(b) The Delaware Trustee has been authorized to perform its obligations
under the Certificate of Trust and the Declaration. The Declaration under
Delaware law 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' 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).
(c) 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 the Declaration.
(d) the execution, delivery and performance of the Agreement by the
Delaware Trustee does not conflict with or constitute a breach of the charter or
by-laws of the Delaware Trustee.
(e) The Delaware Trustee is a natural person who is a resident of the
State of Delaware or, if not a natural person, an entity which has its principal
place of business in the State of Delaware.
ARTICLE XIV
MISCELLANEOUS
SECTION 14.1 Notices.
All notices provided for in this Declaration shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or
mailed by first class mail, as follows:
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(a) if given to the Trust, in care of the Administrative Trustees at the
Trust's mailing address set forth below (or such other address as the Trust may
give notice of to the Holders of the Securities):
Devon Financing Trust II
c/o Devon Energy Corporation
20 North Broadway
Suite 1500
Oklahoma City, OK 73102-8260
Attention: ________________________
(b) if given to the Delaware Trustee, at the mailing address set forth
below (or such other address as Delaware Trustee may give notice of to the
Holders of the Securities):
__________________________
__________________________
__________________________
__________________________
Attention: _____________________
(c) if given to the Property Trustee, at its Corporate Trust Office to the
attention of Corporate Trust Trustee Administration (or such other address as
the Property Trustee may give notice of to the Holders of the Securities).
(d) if given to the Holder of the Common Securities, at the mailing
address of the Sponsor set forth below (or such other address as the Holder of
the Common Securities may give notice to the Trust):
Devon Energy Corporation
20 North Broadway
Suite 1500
Oklahoma City, OK 73102-8260
Attention: ____________________
(e) if given to any other Holder, at the address set forth on the books
and records of the Trust.
All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.
SECTION 14.2 Governing Law.
This Declaration and the rights of the parties hereunder shall be governed
by and interpreted in accordance with the laws of the State of Delaware and all
rights and remedies shall be governed by such laws without regard to principles
of conflict of laws.
SECTION 14.3 Intention of the Parties.
It is the intention of the parties hereto that the Trust be classified for
United States federal income tax purposes as a grantor trust. The provisions of
this Declaration shall be interpreted to further this intention of the parties.
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SECTION 14.4 Headings.
Headings contained in this Declaration are inserted for convenience of
reference only and do not affect the interpretation of this Declaration or any
provision hereof.
SECTION 14.5 Successors and Assigns.
Whenever in this Declaration any of the parties hereto is named or referred
to, the successors and assigns of such party shall be deemed to be included, and
all covenants and agreements in this Declaration by the Sponsor and the Trustees
shall bind and inure to the benefit of their respective successors and assigns,
whether so expressed.
SECTION 14.6 Partial Enforceability.
If any provision of this Declaration, or the application of such provision
to any Person or circumstance, shall be held invalid, the remainder of this
Declaration, or the application of such provision to persons or circumstances
other than those to which it is held invalid, shall not be affected thereby.
SECTION 14.7 Entire Agreement.
This Declaration constitutes the entire agreement among the parties. It
supersedes any prior agreement or understandings among them, and it may not be
modified or amended in any manner other than as set forth herein.
SECTION 14.8 Remedies.
The failure of any party to seek redress for violation of, or to insist
upon the strict performance of, any provision of this Declaration shall not
prevent a subsequent act, which would have originally constituted a violation,
from having the effect of an original violation. The rights and remedies
provided by this Declaration are cumulative and the use of any one right or
remedy by any party shall not preclude or waive its right to use any other
rights the parties may have by law, statute, ordinance or otherwise.
SECTION 14.9 Counterparts.
This Declaration may contain more than one counterpart of the signature
page and this Declaration may be executed by the affixing of the signature of
each of the Trustees to one of such counterpart signature pages. All of such
counterpart signature pages shall be read as though one, and they shall have the
same force and effect as though all of the signers had signed a single signature
page.
IN WITNESS WHEREOF, the undersigned has caused these presents to be
executed as of the day and year first above written.
----------------------------------------------
J. M. Lacey, as Administrative Trustee
----------------------------------------------
Darryl G. Smette, as Administrative Trustee
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----------------------------------------------
William T. Vaughn, as Administrative Trustee
________________ as Delaware Trustee
By:
----------------------------------------------
Name:
Title:
_____________________ as Property Trustee
By:
----------------------------------------------
Name:
Title:
DEVON ENERGY CORPORATION, as Sponsor
By:
----------------------------------------------
Name:
Title:
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