As filed with the Securities and Exchange Commission on June __, 1999
Registration Nos. 333-__________
333-__________
- --------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------------
FORM S-4
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
PEOPLES BANCORP INC.
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(Exact name of Registrant as specified in its charter)
PEBO CAPITAL TRUST I
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(Exact name of Registrant as specified in its trust agreement)
Ohio
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(State or other jurisdiction of incorporation or organization)
Delaware
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(State or other jurisdiction of incorporation or organization)
522110
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(Primary North American Industry Classification System Number)
525920
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(Primary North American Industry Classification System Number)
31-0987416 51-5612405
- ------------------------------------ ------------------------------------
(I.R.S. Employer Identification No.) (I.R.S. Employer Identification No.)
138 Putnam Street, Marietta, Ohio 45750
(740) 373-3155
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(Address, including zip code, and telephone number, including area code, of
Registrants' principal executive offices)
Charles R. Hunsaker, Esq., General Counsel COPY TO:
Peoples Bancorp Inc. Elizabeth Turrell Farrar, Esq.
138 Putnam Street, Marietta, Ohio 45750 Vorys, Sater, Seymour and Pease LLP
(740) 374-6109 52 East Gay Street, P.O. Box 1008
- ------------------------------------------
(Name, address, including zip code, and Columbus, Ohio 43216-1008
telephone number, including area code,
of agent for service)
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE OF THE SECURITIES TO THE
PUBLIC: As soon as practicable after this Registration Statement becomes
effective.
If the securities being registered on this Form are being offered in connection
with the formation of a holding company and there is compliance with General
Instruction G, check the following box. If this Form is filed to register
additional securities for an offering pursuant to Rule 462(b) under the
Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same
offering. If this Form is a post-effective amendment filed pursuant to Rule
462(d) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration
statement for the same offering.
<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
Proposed Maximum Proposed Maximum
Title of Each Class of Securities Amount to be Offering Price Aggregate Amount of
to be Registered Registered per Unit Offering Price (1) Registration
Fee
<S> <C> <C> <C> <C>
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
Series B 8.62% Capital Securities of PEBO Capital Trust I $30,000,000 100% $30,000,000 $8,340
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
Series B 8.62% Junior Subordinated Deferrable Interest $30,000,000 100% $30,000,000 N/A
Debentures of Peoples Bancorp Inc. (2)
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
Series B Capital Securities Guarantee of Peoples Bancorp N/A N/A N/A N/A
Inc. (3)
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
Total $30,000,000 (4) 100% $30,000,000 (4) $8,340
- ------------------------------------------------------------ ---------------- -------------------- ------------------- =============
</TABLE>
(1) Estimated solely for the purpose of computing the registration fee in
accordance with Rule 457(f).
(2) No separate consideration will be received for the Series B 8.62% Junior
Subordinated Deferrable Interest Debentures of Peoples Bancorp Inc. (the
"Junior Subordinated Debentures") distributed upon any liquidation of PEBO
Capital Trust I.
(3) No separate consideration will be received for the Series B Capital
Securities Guarantee of Peoples Bancorp Inc. (4) Such amount represents the
liquidation amount of the Series B 8.62% Capital Securities of PEBO Capital
Trust I to be exchanged
hereunder and the principal amount of Junior Subordinated Debentures that
may be distributed to holders of such Capital Securities upon any
liquidation of PEBO Capital Trust I.
The Registrants hereby amend this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrants shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
- --------------------------------------------------------------------------------
3
<PAGE>
Subject to Completion
Preliminary Prospectus dated __________, 1999
The following legend shall run sideways down the front cover of the
Prospectus:
The information in this Prospectus is not complete and may be changed.
We may not sell these securities until the Registration Statement filed
with the Securities and Exchange Commission is effective. This
Prospectus is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any state where the
offer or sale is not permitted.
PEBO Capital Trust I
Offer to exchange its
Series B 8.62% Capital Securities
(liquidation amount $1,000 per Series B 8.62% Capital Security)
for any and all of its outstanding
Series A 8.62% Capital Securities
(liquidation amount $1,000 per Series A 8.62% Capital Security)
fully and unconditionally guaranteed,
as described in this Prospectus, by
Peoples Bancorp Inc.
The exchange offer and withdrawal rights will
expire at 5:00 p.m., New York City time,
on ___________, 1999, unless extended.
--------------------------------
PEBO Capital Trust I, a Delaware statutory business trust, is offering
to exchange up to $30,000,000 aggregate liquidation amount of its Series B 8.62%
Capital Securities (the "Exchange Capital Securities") for a similar amount of
its outstanding Series A 8.62% Capital Securities (the "Original Capital
Securities"). The Exchange Capital Securities are registered under the
Securities Act of 1933. There is currently $30,000,000 aggregate liquidation
amount of the Original Capital Securities outstanding.
As part of this exchange offer, Peoples Bancorp Inc. is also offering
to exchange its guarantee of PEBO Capital Trust I's obligations under the
Original Capital Securities (the "Original Guarantee") for a similar guarantee
of PEBO Capital Trust I's obligations under the Exchange Capital Securities (the
"Exchange Guarantee"), as described in this Prospectus. Also as part of this
exchange offer, Peoples Bancorp Inc. is offering to exchange up to $30,000,000
of its Series B 8.62% Junior Subordinated Deferrable Interest Debentures due May
1, 2029 (the "Exchange Junior Subordinated Debentures") for a similar amount of
its Series A 8.62% Junior Subordinated Deferrable Interest Debentures due May 1,
2029 (the "Original Junior Subordinated Debentures"). The Exchange Guarantee and
the Exchange Junior Subordinated Debentures are also registered under the
Securities Act.
The terms of the Exchange Capital Securities, the Exchange Junior
Subordinated Debentures and the Exchange Guarantee are the same as the terms of
the Original Capital Securities, the Original Junior Subordinated Debentures and
the Original Guarantee, except that:
o Each of the exchanged securities are registered under the Securities Act and
do not have the same restrictions on transfer as the original securities;
o The distribution rate on the Exchange Capital Securities will not have the
potential to increase; and
o The Exchange Junior Subordinated Debentures will not be entitled to any
liquidated damages.
This Prospectus and a Letter of Transmittal describing the procedures
for exchanging the Original Capital Securities for the Exchange Capital
Securities are first being mailed to all of the holders of the Original Capital
Securities on or about __________, 1999.
You should carefully consider the "Risk factors" beginning on page __
before deciding whether to exchange your Original Capital Securities for
Exchange Capital Securities.
These securities are not deposits or other obligations of a bank and
are not insured by the Federal Deposit Insurance Corporation or any other
governmental agency.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this
Prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
The date of this Prospectus is___________, 1999.
<PAGE>
Where you can find more information
Peoples Bancorp Inc. ("Peoples") files annual, quarterly and special
reports, proxy statements and other information with the Securities and Exchange
Commission in compliance with the information reporting requirements of the
Securities Exchange Act of 1934. You can read and copy any materials filed with
the SEC at the following locations:
Public Reference Room New York Regional Office Chicago Regional Office
450 Fifth Street, N.W. 7 World Trade Center 500 West Madison Street
Room 1024 Suite 1300 Suite 1400
Washington, D.C. 20549 New York, NY 10048 Chicago, IL 60661
You may also obtain copies of this information by mail from the Public
Reference Section of the SEC, 450 Fifth Street, N.W., Room 1024, Washington,
D.C. 20549 at prescribed rates. Please call the SEC at 1-800-SEC-0330 for
further information on the operation of the Public Reference Room. Peoples'
filings are also available to the public from commercial document retrieval
services and from the web site maintained by the SEC at "http://www.sec.gov."
No separate financial statements of PEBO Capital Trust I (the "Trust")
are included in this Prospectus and no separate financial statements will be
prepared in the future. We do not believe that such financial statements are
helpful because: (a) all of the voting securities of the Trust will be owned,
directly or indirectly, by Peoples; (b) the Trust has no operating history or
independent operation; (c) the Trust is not engaged in, and does not propose to
engage in, any activity other than holding as Trust assets the Junior
Subordinated Debentures, issuing the Trust securities and engaging in incidental
activities; and (d) the obligations of the Trust under its securities are fully
and unconditionally guaranteed by Peoples, on a subordinated basis, to the
extent the Trust has funds available to meet such obligations.
This Prospectus is part of a Registration Statement filed by Peoples
and the Trust with the SEC under the Securities Act. As allowed by SEC rules,
this Prospectus does not contain all the information you can find in the
Registration Statement or the exhibits filed with the Registration Statement.
You should review the Registration Statement and the exhibits filed with the
Registration Statement for further information regarding Peoples, the Trust and
the Exchange Capital Securities being offered by this Prospectus. The
Registration Statement and its exhibits may be inspected at the public reference
facilities of the SEC at the addresses listed above.
Incorporation by reference
The following documents of Peoples which have been previously filed
with the SEC are incorporated into this Prospectus by reference:
o Peoples' Annual Report on Form 10K for the fiscal year ended
December 31, 1998.
o Peoples' Annual Report on Form 10-K/A for the fiscal year ended
December 31, 1998.
o Peoples' Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 1999.
o Peoples' Current Reports on Form 8-K dated April 1, 1999, April 12, 1999,
April 20, 1999 and April 22, 1999.
All documents subsequently filed by Peoples pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act after the date of this Prospectus and
prior to the termination of the offering of the Exchange Capital Securities
shall be deemed to be incorporated by reference into this Prospectus and to be
part of this Prospectus from the date of filing of those documents. Any
statement contained in this Prospectus or in a document incorporated or deemed
to be incorporated by reference in this Prospectus shall be deemed to be
modified or superseded for purposes of this Prospectus to the extent that a
statement contained in this Prospectus, or in any other subsequently filed
document which also is or is deemed to be incorporated by reference in this
Prospectus, modifies or supersedes that statement.
When we refer to this Prospectus, we mean not only this Prospectus but
any documents which are incorporated or deemed to be incorporated in this
Prospectus by reference.
Peoples will provide without charge to any person to whom this
Prospectus is delivered, on the oral or written request of that person, a copy
of any or all of the documents incorporated by reference in this Prospectus
(other than an exhibit unless that exhibit is specifically incorporated by
reference). Requests for these documents should be directed to: Charles R.
Hunsaker, Esq., General Counsel, Peoples Bancorp Inc., 138 Putnam Street,
Marietta, Ohio 45750. Mr. Hunsaker's telephone number is 7403746109.
Peoples also maintains a website at "www.peoplesbancorp.com."
Forward-looking statements
Some of the information presented in or incorporated by reference into
this Prospectus contains "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Although Peoples believes that
the expectations expressed in these forward-looking statements are based on
reasonable assumptions within the bounds of its knowledge of its business and
operations, it is possible that actual results may differ materially from these
expectations. Accordingly, investors are cautioned not to place undue reliance
on these forward-looking statements. Factors that could cause actual results to
differ from expectations include:
o the growth of the economy
o interest rate movements
o timely development of technology enhancements for Peoples' products and
operating systems
o the impact of competitive products, services and pricing
o customer-based requirements
o legislative and regulatory changes affecting the banking industry
Summary
This summary provides an overview of selected information contained
elsewhere in this Prospectus and does not contain all the information you should
consider. Therefore, you should also read the more detailed information
appearing elsewhere in this Prospectus. As used in this Prospectus: (a) the
"Indenture" means the Indenture, dated as of April 20, 1999, as amended and
supplemented from time to time, between Peoples and Wilmington Trust Company, as
trustee (the "Debenture Trustee"), relating to the Junior Subordinated
Debentures; (b) the "Trust Agreement" means the Amended and Restated Declaration
of Trust, dated as of April 20, 1999, relating to PEBO Capital Trust I, by and
among Peoples, as Sponsor, Wilmington Trust Company, as Property Trustee (the
"Property Trustee"), Wilmington Trust Company, as Delaware Trustee (the
"Delaware Trustee"), the three individual trustees (the "Administrative
Trustees") named therein (collectively, with the Property Trustee and Delaware
Trustee, the "Issuer Trustees") and the holders, from time to time, of undivided
beneficial interests in the assets of the Trust; (c) the "Common Guarantee"
means the Guarantee Agreement relating to the common securities; and (d) the
"Registration Rights Agreement" means the Registration Rights Agreement, dated
April 20, 1999, among Peoples, the Trust and Sandler O'Neill & Partners, L.P.,
the initial purchaser of the Original Capital Securities. In addition, as the
context may require: (a) "Capital Securities" includes the Exchange Capital
Securities and the Original Capital Securities, (b) "Trust Securities" includes
the Capital Securities and the Common Securities (as defined in this
Prospectus); (c) "Junior Subordinated Debentures" includes the Exchange Junior
Subordinated Debentures and the Original Junior Subordinated Debentures; and (d)
"Guarantee" includes the Exchange Guarantee and the Original Guarantee.
Peoples Bancorp Inc.
Peoples was organized in 1980 as a bank holding company. Peoples'
subsidiaries include The Peoples Banking and Trust Company ("Peoples Bank"), The
First National Bank of Southeastern Ohio ("First National Bank"), Peoples Bank
FSB, and The Northwest Territory Life Insurance Company, an Arizona corporation
("Northwest Territory"). First National Bank also owns two insurance agency
subsidiaries, Northwest Territory Life Insurance Agency, Inc. and Northwest
Territory Property and Casualty Insurance Agency, Inc.
(the "Agencies").
Peoples' banking subsidiaries provide an array of financial products
and services to their customers, including traditional banking products such as
deposit accounts, lending products, credit and debit cards, corporate and
personal trust services, and safe deposit rental facilities. The Agencies also
offer investment and insurance products. Peoples' banking subsidiaries provide
services through ordinary walk-in offices, automated teller machines, automobile
drivein facilities, banking by phone, and limited cash management services
through computer banking.
Peoples' banking subsidiaries operate 35 sales offices in the states of
Ohio, West Virginia and Kentucky. At March 31, 1999, Peoples had total assets of
$871.9 million, total loans of $574.6 million, total deposits of $707.0 million,
and total stockholders' equity of $86.8 million. For the year ended December 31,
1998, Peoples' return on average assets was 1.20% and its return on average
stockholders' equity was 12.21%. For the quarter ended March 31, 1999, Peoples'
return on average assets was 1.21% and its return on average stockholders'
equity was 12.12%.
At March 31, 1999, Peoples and its subsidiaries had 356 full-time
equivalent employees. The principal executive office of Peoples is located at
138 Putnam Street, Marietta, Ohio 45750. The telephone number is (740) 373-3155.
PEBO Capital Trust I
The Trust is a statutory business trust created under Delaware law upon
the filing of a certificate of trust with the Delaware Secretary of State. The
Trust's business and affairs are conducted by the Property Trustee, the Delaware
Trustee and the three individual Administrative Trustees, who are officers of
Peoples. The Trust exists exclusively to:
o Issue and sell the Trust Securities;
o Use the proceeds from the sale of the Trust Securities to acquire Junior
Subordinated Debentures issued by Peoples; and
o Engage in only those other activities necessary or incidental to those
activities (such as registering the transfer of the Trust Securities).
The Junior Subordinated Debentures are the sole assets of the Trust.
Payments under the Junior Subordinated Debentures are the sole revenues of the
Trust. All of the common securities issued by PEBO Capital Trust I (the "Common
Securities") are owned by Peoples.
The Exchange Offer
The exchange offer.................................
We are offering to exchange up to $30,000,000 aggregate
liquidation amount of Exchange Capital Securities for an
equal aggregate liquidation amount of Original Capital
Securities. You may exchange all of your Original Capital
Securities or less than all of them provided that the
Original Capital Securities you exchange, as well as the
Original Capital Securities you do not exchange, have a
liquidation amount of at least $100,000 (100 Capital
Securities) or any integral multiple of $1,000 (one Capital
Security) in excess of $100,000.
We are making this exchange offer in order to satisfy our
obligations under the Registration Rights Agreement relating
to your Original Capital Securities. See "The exchange
offer" for a description of the procedures for tendering
your Original Capital Securities.
Expiration date....................................
The exchange offer will expire at 5:00 p.m., New York City
time, on ____________, 1999, unless we extend it (in which
case the expiration date will be the latest date and time to
which we extend the exchange offer). See "The exchange
offer--Expiration date; Extensions; Amendments."
Conditions to
the exchange offer.................................
The exchange offer is subject to conditions that we have the
discretion to waive. The exchange offer is not conditioned
upon the tender of any minimum liquidation amount of
Original Capital Securities. See "The exchange
offer--Conditions to the exchange offer."
Terms of the exchange offer........................
We reserve the right, in our discretion and subject to
applicable law, at any time and from time to time:
o to delay the acceptance of the Original Capital
Securities for exchange;
o to end the exchange offer if specified conditions
are not satisfied;
o to extend the exchange offer's expiration date and
keep all of the Original CapitalSecurities tendered
pursuant to the exchange offer, subject, however,
to your right to withdraw your tendered Original
Capital Securities; or
o to waive any condition or otherwise change the terms
of the exchange offer in any way.
See "The exchange offer--Terms of the exchange offer."
Withdrawal rights..................................
You may withdraw your tender of Original Capital Securities
at any time before the expiration date by delivering written
notice of such withdrawal to the exchange agent as provided
in the procedures described below under the caption "The
exchange uoffer--Withdrawal rights."
Procedures for tendering Original Capital Securities...............
You must appropriately complete and sign a Letter of
Transmittal and mail, fax or hand deliver it, together
with any other documents required by the Letter
of Transmittal, to the exchange agent, either
exchange agent, either
with your Original
Capital Securities or in
compliance with the
specified procedures for
guaranteed delivery of
Original Capital
Securities. Brokers,
dealers, commercial
banks, trust companies
and other nominees may
also effect tenders by
book-entry transfer. If
your Original Capital
Securities are
registered in the name
of a broker, dealer,
commercial bank, trust
company or other
nominee, you should
contact that person
promptly if you wish to
tender your Original
Capital Securities
pursuant to the exchange
offer. See "The exchange
offer--Procedures for
tendering Original
Capital Securities."
Please do not send your
Letter of Transmittal or
any certificate
representing your
Original Capital
Securities to us. You
should only send those
documents to the
exchange agent.
Resales of Exchange Capital
Securities.........................................
In making the exchange offer, we are relying on the position
of the staff of the SEC's Division of Corporation Finance
contained in interpretive letters addressed to third parties
in other transactions. However, we have not sought our own
interpretive letter. Therefore, there is no guarantee that
the staff of the SEC's Division of Corporation Finance would
make a determination regarding the exchange offer similar to
that made in the interpretive letters to third parties.
Accordingly, based on
these interpretations,
and subject to the
provisions of the two
immediately following
paragraphs, we believe
that you may sell or
otherwise transfer
Exchange Capital
Securities issued to you
pursuant to this
exchange offer in
exchange for your
Original Capital
Securities (so long as
you are not a
broker-dealer) without
further compliance with
the registration and
prospectus delivery
requirements of the
Securities Act. However,
if you are an
"affiliate" (as defined
in Rule 144 promulgated
under the Securities
Act) of either Peoples
or the Trust, if you
intend to participate in
the exchange offer for
the purpose of
distributing the
Exchange Capital
Securities, or if you
are a broker-dealer who
purchased the Original
Capital Securities from
the Trust to resell them
pursuant to Rule 144A or
any other available
exemption under the
Securities Act:
o You will not be able to rely on the interpretations
described above;
o You will not be permitted or entitled to tender
your Original Capital Securities in the exchange offer;
and
o You must comply
with the
registration and
prospectus delivery
requirements of the
Securities Act in
connection with any
sale or other
transfer of your
Original Capital
Securities unless
that sale is made
pursuant to an
exemption from
those requirements.
In addition, as
described below, if you
are a broker-dealer
holding Original Capital
Securities which you
acquired for your own
account as a result of
market-making or other
trading activities and
you exchange those
Original Capital
Securities for Exchange
Capital Securities, then
you must deliver a
prospectus which meets
the requirements of the
Securities Act in
connection with any
...,resales of those
Exchange Capital
Securities. If you wish
to exchange your
Original Capital
Securities for Exchange
Capital Securities, you
will be required to
represent that:
o You are not an affiliate of either Peoples or the
Trust;
o You are acquiring Exchange Capital Securities in
the ordinary course of your business;
o You have no arrangement or understanding with any
person to participate in a distribution (within the
meaning of the Securities Act) of Exchange Capital
Securities; and
o If you are not a
broker-dealer, you
are not engaged in,
and do not intend
to engage in, a
distribution
(within the meaning
of the Securities
Act) of Exchange
Capital Securities.
If you are a
broker-dealer receiving
Exchange Capital
Securities for your own
account in exchange for
Original Capital
Securities, and if those
Original Capital
Securities were acquired
by you as a result of
market-making or other
trading activities, then
you must acknowledge
that you will deliver a
prospectus meeting the
requirements of the
Securities Act in
connection with any
resale of your Exchange
Capital Securities. The
Letter of Transmittal
states that your
acknowledgment and
delivery of such a
prospectus will mean
that you will not be
deemed to admit that you
are an "underwriter"
within the meaning of
the Securities Act.
Based on the
interpretive letters
referred to above, we
believe that if you are
a "Participating
Broker-Dealer" who
acquired Original
Capital Securities for
your own account as a
result of market-making
or other trading
activities, you may
fulfill your prospectus
delivery requirements
with respect to the
Exchange Capital
Securities received upon
exchange of your
Original Capital
Securities (other than
Original Capital
Securities which
represent an unsold
allotment from the
initial sale of the
Original Capital
Securities) with a
prospectus meeting the
requirements of the
Securities Act. This may
be the prospectus
prepared for an exchange
offer as long as it
contains a description
of the plan of
distribution with
respect to the resale of
such Exchange Capital
Securities. Accordingly,
this Prospectus, as it
may be changed or
supplemented from time
to time, may be used for
such purposes.
Nevertheless, subject to
the provisions in the
Registration Rights
Agreement and subject to
the limitations
described under the
caption "The exchange
offer--Resale of
Exchange Capital
Securities," we have
agreed that this
Prospectus, as it may be
changed or supplemented
from time to time, may
be used by you if you
are a "Participating
Broker-Dealer" in
connection with resales
of Exchange Capital
Securities for a period
which ends on the 90th
day after the expiration
date (subject to
extension under limited
circumstances) or, if
earlier, when you have
disposed of all of your
Exchange Capital
Securities. See "Plan of
distribution." If you
are a "Participating
Broker-Dealer" and are
also an affiliate of
Peoples or the Trust,
you may not rely on such
interpretive letters and
you must comply with the
registration and
prospectus delivery
requirements of the
Securities Act in
connection with any
resale.
Exchange agent.....................................
The exchange agent with respect to the exchange offer is
Wilmington Trust Company. The address, telephone and
facsimile numbers of the exchange agent are listed in "The
exchange offer--Exchange agent" and in the Letter of
Transmittal.
Use of proceeds....................................
Neither Peoples nor the Trust will receive any cash proceeds
from the issuance of the Exchange Capital Securities.
Certain United States federal income
tax consequences; ERISA
considerations.....................................
You should review carefully the information contained under
the caption "Certain federal income tax consequences" and
"ERISA considerations" before tendering your Original
Capital Securities in the exchange offer.
The Exchange Capital Securities
Securities offered.................................
We have registered up to $30,000,000 aggregate liquidation
amount of the Trust's Exchange Capital Securities under the
Securities Act. The terms of the Exchange Capital
Securities are the same as the terms of the Original Capita
Securities, except that the Exchange Capital Securities:
o have been registered under the Securities Act;
o will not be subject to the same restrictions on
transfer as the Original Capital Securities; and
o will not provide for any increase in the
distribution rate.
See "Description of Exchange Securities; Comparison to
Original Securities."
Distribution dates.................................
May 1 and November 1 of each year, beginning November 1,
1999.
Extension Periods..................................
If no default has occurred and is continuing, Peoples will
have the right, at any time, to defer payments of interest
on the Exchange Junior Subordinated Debentures for a period
not exceeding ten consecutive semi-annual periods (each, an
"Extension Period"). Distributions on the Exchange Capital
Securities will be deferred during any Extension Period
elected by Peoples with respect to the payment of interest
on the Exchange Junior Subordinated Debentures. No
Extension Period will extend beyond May 1, 2029. See
"Description of Junior Subordinated
Debentures Option to extend Interest Payment Date."
During an Extension Period, interest will continue to accrue
on the Exchange Junior Subordinated Debentures. Therefore,
holders of Exchange Capital Securities would be required to
accrue income for United States federal income tax
purposes. This means that you would have income from the
Exchange Capital Securities for United States federal income
tax purposes but that you would not receive any cash with
which to pay any tax that might be due on that income. See
"Certain federal income tax consequences3/4Interest income and
original issue discount."
Peoples does not currently intend to exercise its right to
defer payments of interest by extending the interest payment
period of the Exchange Junior Subordinated Debentures.
Ranking............................................
The Exchange Capital Securities will rank equally with, and
payments on them will be made pro rata with, the Original
Capital Securities and the Common Securities of the Trust
except as described under "Description of Capital
Securities3/4Subordination of Common Securities."
The Exchange Junior Subordinated Debentures will rank
equally with the Original Junior Subordinated Debentures and
all other junior subordinated debentures to be issued by
Peoples pursuant to the Indenture with substantially similar
subordination terms, and which are issued and sold to other
trusts to be established by Peoples similar to the Trust.
The Exchange Junior Subordinated Debentures will be
unsecured and subordinate and junior in right of payment as
described in the Indenture to all Senior Indebtedness of
Peoples. See "Description of Junior Subordinated
Debentures3/4Subordination."
The Exchange Guarantee will rank equally with the Original
Guarantee and all other guarantees to be issued by Peoples
with respect to capital securities to be issued by other
trusts to be established by Peoples similar to the Trust.
The Exchange Guarantee will constitute an unsecured
obligation of Peoples and will rank subordinate and junior
in right of payment as described in the Exchange Guarantee
to all Senior Indebtedness of Peoples. See "Description of
O,$Guarantee--General."
Redemption
In addition, because Peoples is a holding company, the
Junior Subordinated Debentures and the Guarantee are
effectively subordinated to all existing and future
liabilities of Peoples' subsidiaries, including those to its
banking subsidiaries' depositors.
You may be required to sell your Exchange Capital Securities
to the Trust if the Junior Subordinated Debentures are
prepaid. In this case, the Trust will buy your Exchange
Capital Securities at a redemption price equal to the
applicable Optional Prepayment Price (as defined under
"Description of Junior Subordinated Debentures--Optional
prepayment") described in the Indenture. Peoples may redeem
the Junior Subordinated Debentures prior to maturity, in
each case at the applicable Redemption Price (as defined
under the heading "Description of Capital
Securities--Redemption"):
o in whole but not in part, on May 1, 2029 upon
repayment of the Junior Subordinated Debentures;
o in whole but not in
part, at any time
prior to May 1,
2009 contemporaneously
with the optional
prepayment of the
Junior Subordinated
Debentures by
Peoples upon the
occurrence and
continuation of a
Special Event (as
defined under
"Description of
Junior Subordinated
Debentures--Special
event prepayment");
and
o in whole or in part, on or after May 1, 2009,
contemporaneously with the optional prepayment of all
or part of the Junior Subordinated Debentures by
Peoples.z
See "Description of Capital Securities--Redemption."
Transfer restrictions..............................
The Exchange Capital Securities will be issued, and may be
transferred, only in blocks having a liquidation amount of
not less than $100,000 (100 Capital Securities) and
multiples of $1,000 in excess of $100,000. Any attempted
transfer of Exchange Capital Securities in a block having a
liquidation amount of less than $100,000 will be void and of
no legal effect whatsoever.
ERISA considerations...............................
You should consider carefully the restrictions on purchase
described under the caption "ERISA considerations."
Absence of market for the Exchange Capital Securities........
The Exchange Capital Securities will be a new
issue of securities for which there currently is
no market. Accordingly, we cannot assure you
that any market will develop for the Exchange
Capital Securities. We do not intend to apply
for listing of the Exchange Capital
Securities on any securities exchange or
for quotation through the National Association
of Securities Dealers Automated Quotation
System. See "Plan of distribution."
Risk factors.......................................
You should consider carefully the "Risk factors" beginning
on page __.
Risk factors
You should carefully read the following risk factors and the other
sections of this Prospectus in connection with the exchange offer and the
Exchange Capital Securities. You should consider all of these risk factors to be
important. The risk factors below do not necessarily appear in their order of
importance. Except where otherwise indicated, the following risk factors apply
to both the Original Capital Securities and the Exchange Capital Securities.
Risk factors relating to the Capital Securities and the Junior Subordinated
Debentures:
- ---------------------------------------------------------------------------
Peoples' obligations under the Guarantee and the Guarantee and the Junior
Subordinated Debentures rank lower in priority to other obligations of Peoples
issued by it for the Junior Subordinated Debentures rank lower in
benefit of the holders of Capital Securities, as well as its priority to other
obligations of Peoples obligations under the Junior Subordinated Debentures, are
Peoples' obligations under the Guarantee issued
for the benefit of the holders of Capital Securities,
as well as its obligations under the Junior Subordinated
Debentures, are unsecured and will rank junior in priority
of payment to Peoples' Senior Indebtedness. As of March
31, 1999, Peoples as part of its Senior Indebtedness had
a note to a regional bank in the amount of $2.6 million.
Peoples' obligations will also rank junior to all existing
and future liabilities and obligations of Peoples' subsidiaries,
including liabilities and obligations to depositors of its
banking subsidiaries.
The Capital Securities, the Junior Subordinated Debentures
and the Guarantee do not limit the ability of Peoples or
any of its subsidiaries to incur additional debt, including
debt that may rank senior to the Junior Subordinated
Debentures and the Guarantee.
For more information on Peoples'obligations under the Guarantee
and the Junior Subordinated Debenture, see "Description of Junior
Subordinated Debentures3/4Subordination" and "Description of
Guarantee."
If Peoples does not make payments under the Junior Subordinated Debentures,
the Trust will be unable to pay distributions and liquidation amounts and the
Guarantee will not apply.
The ability of the Trust to pay cash distributions to you and the
liquidation of $1,000 per Capital Security is solely dependent
on the ability of Peoples to make the related payments on the Junior
Subordinated Debentures when due.
If Peoples defaults on its obligations to pay principal
of, or interest due on, the Junior Subordinated
Debentures, the Trust will not have sufficient funds to
pay distributions or the liquidation amount per
Capital Security. As a result, you will not be able
to rely on the Guarantee for payment of these amounts.
Instead you may:
o Directly sue Peoples or seek other remedies to collect
your pro rata share of payments owed; or
o Rely on the Property Trustee to enforce the Trust's
rights under the Junior Subordinated Debentures.
For more information on Peoples' obligations under the Guarantee
and the Junior Subordinated Debentures, see "Description of Guarantee"
and "Description of Junior Subordinated Debentures--Subordination."
Interest payments by Peoples on the Junior Subordinated Debentures ae dependent
upon the receipt of cash dividends from its banking subsidiaries.
Almost all of Peoples' assets consist of its investments in its banking
subsidiaries. Thus Peoples' ability to pay principal of, and interest
on, the Junior Subordinated Debentures depends primarily upon cash
dividends received by Peoples from its banking subsidiaries to Peoples
are subject to, among other things:
o Regulatory limitations, generally based on current and
retained earnings in conjunction with capital adequacy
requirements, imposed by various regulatory agencies;
o Profitability, financial condition and capital
expenditures and other cash flow requirements of the
banking subsidiaries; and
o Prior claims of creditors of the banking subsidiaries.
If Peoples does not receive sufficient cash dividends from its banking
subsidiaries, then it is unlikely that Peoples will have sufficient funds to
make payments on the Junior Subordinated Debentures, thereby leaving
insufficient funds for the Trust to make payments to you on the Capital
Securities.
Distributions on the Capital Securities may be deferred; You may have to include
interestin your taxable income before you receive cash
So long as no default under the Junior Subordinated Debentures
has occurred and is continuing, Peoples will have the right,
at one or more times, under the Indenture to defer payments
of interest on the Junior Subordinated Debentures for up to
ten consecutive semi-annual periods, but not beyond the maturity date
of the Junior Subordinated Debentures. If Peoples defers payments of
interest on the Junior Subordinated Debentures, the Trust will
defer distributions on the Trust Securities during any
deferral period. However, you would still accumulate
distributions at the rate of 8.62% per annum, plus you
would accumulate additional distributions at the same
rate of 8.62% per annum compounded semi-annually, on
any unpaid distributions, to the extent permitted by law.
The Capital Securities may trade at a price that does
not fully reflect the value of accrued but unpaid
interest on the Junior Subordinated Debentures.
During the pendency of any deferral period, Peoples
generally will be prohibited from declaring or paying
dividends on Peoples' capital stock. See
"Description of Capital Securities3/4Distributions"
and "Description of Junior Subordinated Debentures3/4Option to
extend Interest Payment Date."
During a deferral period, you will be required to accrue interest
income for United States federal income tax purposes with
respect to your pro rata share of the Junior Subordinated
Debentures held by the Trust. As a result, you must include
the accrued interest as interest income for United States
federal income tax purposes before you receive any cash
distributions. You will also not receive a cash distribution
related to any accrued and unpaid interest from the Trust if
you sell the Capital Securities before the end of any
deferral period or the record date relating to such
cash distribution.
During a deferral period, accrued but unpaid distributions
will increase your tax basis in the Capital Securities. If
you sell the Capital Securities during a deferral period,
your increased tax basis will decrease the amount of any capital gain
or increase the amount of any capital loss that you
may have otherwise realized on the sale. A capital loss,
except in some limited circumstances, cannot be
applied to offset ordinary income.
See "Certain federal income tax consequences" for more
information regarding the tax consequences of holding
and selling your Capital Securities.
Peoples has no current intention of exercising its right to
defer interest payments on the Junior Subordinated
Debentures. However, if Peoples exercises its right
in the future, the market price of the Capital
Securities is likely to be affected. The Capital
Securities may trade at a price that does not fully
reflect the value of accrued but unpaid interest on the
Junior Subordinated Debentures. If you sell the
Capital Securities during an interest deferral period,
you may not receive the same return on investment as someone
else who continues to hold the Capital Securities. As a result of
the existence of Peoples' right to defer interest
payments, the market price of the Capital Securities
(which represent preferred beneficial interests in the
Trust) may be more volatile than the market prices of
other debt securities that are not subject to such
optional deferrals.
You are subject to prepayment risk on your Capital Securities
The Junior Subordinated Debentures have a stated maturity date
of May 1, 2029. However, they may be redeemed by Peoples prior
to maturity as a result of the following:
o In whole, upon a change in the federal tax laws or an
interpretation of the tax laws by the courts or the IRS,
which would result in a risk that: (a) the Trust may be
subject to federal income tax; (b) interest paid by
Peoples on the Junior Subordinated Debentures will not be
deductible by Peoples for federal income tax purposes; or
(c) the Trust is or will be subject to more than a
minimal amount of other taxes or governmental charges.
o In whole, upon a change in the laws or regulations that
would consider the Trust to be an investment company under
the Investment Company Act of 1940.~
o In whole, upon a change in the laws or regulations creating a
substantial risk that Peoples will not be able to treat the
Capital Securities as Tier I capital for
regulatory purposes.
In addition to these enumerated risks, Peoples, at its option and
subject to regulatory approval, may redeem Junior Subordinated
Debentures, in whole or in part, at any time after May 1, 2009,
at a redemption premium as set forth under "Description of Junior
Subordinated Debentures - Optional prepayment." You should assume
that Peoples will exercise its redemption option if Peoples is able to
refinance at a lower interest rate or if it is otherwise in the
interest of Peoples to do so.
The exercise of these redemption rights is subject to Peoples
receiving prior regulatory approval, if required. Forfurther
information concerning events which may cause the redemption of
the Junior Subordinated Debentures and prepayment of the Capital
Securities, see "Description of Capital Securities - Redemption."
Distribution of Junior Subordinated Debentures to holders of Capital Securities
may have an effect on the market price of the Capital Securities
Your investment in the Capital Securities may decrease in value
if the Junior Subordinated Debentures are distributed to you in
liquidation of the Trust. Peoples cannot predict the liquidity
Securities of the market or market prices for the Junior Subordinated
Debentures that may be distributed. Accordingly, the Junior
Subordinated Debentures that you receive upon a distribution, or the
Capital Securities you hold pending a distribution, may
trade at a discount to the price that you paid to purchase the Capital
Securities.
Because you may receive the Junior Subordinated Debentures, you
must also make an investment decision with regard to the
Junior Subordinated Debentures. You should carefully review all the
information regarding the Junior Subordinated Debentures contained in
this Prospectus. Under "Certain federal income tax consequences -
Receipt of Junior Subordinated Debentures or cash upon liquidation
of the Trust," we discuss applicable federal income tax consequences
of a distribution the Junior Subordinatd Debentures.
Limited convenants relating to the Capital Securities and the Junior
Subordinated Debentures do ont protect you
The covenants in the governing documents relating to the Capital
Securities and the Junior Subordinated Debentures are limited. As
a result, the governing documents do not protect you in the event of an
adverse change in Peoples' financial condition or results of
operations. In addition, the governing documents do not limit the
ability of Peoples or its subsidiaries to incur additional debt.
You should not consider the terms of the governing documents to
be a significant factor in evaluating whether Peoples
will be able to comply with its obligations under the Junior
Subordinated Debentures or the Guarantee.
You will have limited rights under the Guarantee
The Guarantee guarantees to you
the following payments, to
the extent not paid by or on
behalf of the Trust:
o any accumulated and unpaid
distributions required to
be paid on your Capital
Securities, but only to
the extent that Trust
has funds on hand
legally available for
the payment of those
distributions;
o the redemption price
with respect to your
Capital Securities to
be redeemed, but only
to the extent that
Trust has funds on hand
legally available for
the redemption of those
Capital Securities at
that time; and
o upon a voluntary or
involuntary dissolution,
winding up or liquidation
of the Trust (unless the
Junior Subordinated
Debentures are
distributed to you), the
lesser of (a) the
aggregate liquidation
amount of your Capital
Securities and all
accumulated and unpaid
distributions on your
Capital Securities to the
date of payment, to the
extent that the Trust has
funds on hand legally
available for the payment
of those amounts at that
time, and (b) the amount
of assets of the Trust
remaining available for
distribution to you at
that time, after the
satisfaction of
liabilities to creditors
of the Trust as provided
by applicable law.
The holders of at least a
majority in liquidation
amount of the Capital
Securities have the right to
direct the time, method and
place of conducting any
proceeding for any remedy
available with respect to
the Guarantee or to direct
the exercise of any trust
power conferred under the
Guarantee. As a holder of
Capital Securities, you may,
to the extent permitted by
applicable law, institute a
legal proceeding directly
against Peoples to enforce
your rights under the
Guarantee without first
instituting a legal
proceeding against the
Trust, the Guarantee Trustee
or any other person or
entity. If Peoples were to
default on its obligation to
pay amounts payable under
the Junior Subordinated
Debentures, the Trust would
not have sufficient funds
for the payment of
distributions on the Capital
Securities or amounts
payable on redemption of the
Capital Securities, in which
case you will not be able to
rely upon the Guarantee for
payment of such amounts.
Instead, if a Debenture
Event of Default (as defined
under the heading
"Description of Junior
Subordinated
Debentures--Debenture Events
of Default") occurs and is
continuing under the
Indenture and that event is
attributable to the failure
of Peoples to pay, among
other things, the principal
of or interest on the Junior
Subordinated Debentures on
the day on which that
payment is due and payable,
then you may institute a
legal proceeding directly
against Peoples for
enforcement of payment.
Notwithstanding any payments
made to you by Peoples in
connection with such an
action, Peoples will remain
obligated to pay the
principal of and interest on
the Junior Subordinated
Debentures, and it will be
subrogated to your rights
with respect to payments on
the Capital Securities to
the extent of any payments
made by Peoples to you in
connection with your actions
taken against Peoples.
Except as described in this
Prospectus, you cannot
exercise directly any other
remedy available to holders
of Junior Subordinated
Debentures or assert
directly any other right in
respect of the Junior
Subordinated Debentures. See
"Description of Junior
Subordinated,'Debentures--
Enforcement of
certain rights by holders of
Capital Securities,"
"Debenture Events of
Default" and "Description of
Guarantee." The Trust
Agreement provides that each
holder of Capital Securities
by acceptance of those
securities agrees to the
provisions of the Indenture.
As a holder of Capital Securities, you will have limited voting rights.
As a holder of Capital Securities,
you will have limited voting rights.
These voting rights relate only to
the modification of
the Capital Securities and
the exercise of the Trust's
rights as a holder of the
Junior Subordinated
Debentures. In general, only
Peoples can replace or
remove any of the Trustees.
However, if an Event of
Default (as defined under
the heading "Description of
Capital Securities3/4Events
of Default; Notice") under
the Trust Agreement is
continuing, holders of at
least a majority in
aggregate liquidation amount
of the Capital Securities
may replace the Property
Trustee and the Delaware
Trustee. The Property Trust,
the Administrative Trustees
and Peoples may amend the
Trust Agreement without your
consent in order to ensure
that the Trust will not be
classified as an association
taxable as a corporation or
to enable the Trust to
qualify as a grantor trust,
in each case, for federal
income tax purposes, or to
ensure that the Trust will
not be required to register
as an "investment company"
under the Investment Company
Act of 1940, even if that
action adversely affects
your interests. You have no
voting rights with respect
to any matters submitted to
a vote of the shareholders
of Peoples. See "Description
of Capital
Securities--Voting rights;
Amendment of the Trust
Agreement" for more
information on your limited
voting rights.
Trading characteristics of the Capital Securities may create adverse tax
consequences for you
The Capital Securities
trade at a price that does not
reflect the value of accrued but
unpaid interest on the
underlying Junior
Subordinated Debentures. If
you dispose of your Capital
Securities between record
dates for payments on the
Capital Securities, you may
have adverse tax
consequences. Under these
circumstances, you will be
required to include accrued
but unpaid interest on the
Junior Subordinated
Securities allocable to
Capital Securities through
the date of disposition in
your income as ordinary
income. If interest on the
Junior Subordinated
Debentures is included in
income under the original
issue discount provisions,
you would add this amount to
your adjusted tax basis in
your share of the underlying
Junior Subordinated
Debentures deemed disposed.
If your selling price is
less than your adjusted tax
basis, which will include
all accrued but unpaid
original issue discount
interest included in your
income, you could recognize
a capital loss which cannot
be applied to offset
ordinary income for federal
income tax purposes, subject
to exceptions. See "Certain
federal income tax
Z,consequences Interest
income and original issue
discount" and "Sales of
Capital Securities" for more
information on possible
adverse tax consequences to
you.
Absence of public market
The Original Capital Securities have not been registered under
the Securities Act and will continue to be subject to
restrictions on transferability under the Securities Act and
applicable state securities laws if they are not exchanged for
Exchange Capital Securities. Although the Exchange Capital
Securities generally may be resold or otherwise transferred by
the holders (who are not affiliates of Peoples or the Trust)
without compliance with the registration requirements under the
Securities Act, they will constitute a new issue of securities
with no established trading market. Capital Securities may be
transferred by the holders thereof only in blocks having a
liquidation amount of at least $100,000 (100 Capital
Securities). Peoples and the Trust were advised by Sandler
O'Neill & Partners, L.P., the initial purchaser in connection
with the offering of the Original Capital Securities, that
Sandler O'Neill intends to make a market in the Capital
Securities. However, Sandler O'Neill is not obligated to do so
and any market-making activity with respect to the Capital
Securities may be discontinued at any time without notice. In
addition, that market-making activity will be subject to the
limits imposed by the Securities Act and the Exchange Act and
may be limited during the exchange offer. Accordingly, no
assurance can be given that an active public or other market
will develop for the Exchange Capital Securities or the
Original Capital Securities. If an active public market does
not develop, the market price and liquidity of the Exchange
Capital Securities may be adversely affected.i
If a public trading market develops for the Exchange Capital
Securities, future trading prices will depend on many factors,
including, among other things, prevailing interest rates,
Peoples' results of operations and the market for similar
securities.
Consequences of a failure to exchange Original Capitial Securites
The Original Capital Securities
have not been registered under
the Securities Act or any state
securities laws. As a result,
the Original Capital
Securities may not be
offered, sold or otherwise
transferred except in
compliance with the
registration requirements of
the Securities Act and any
applicable state securities
laws, or in connection with
an exemption from such
requirements.
Original Capital Securities
which are not exchanged for
Exchange Capital Securities
in this exchange offer will
continue to have a legend
which describes these
transfer restrictions. In
addition, after the exchange
offer ends, holders of
Original Capital Securities
will no longer have the
right to have their Original
Capital Securities
registered under the
Securities Act and will no
longer have any rights under
the Registration Rights
Agreement (except for
limited exceptions). We do
not intend to register any
Original Capital Securities
under the Securities Act
which have not been
exchanged after the exchange
offer ends (except under
those limited exceptions).
Although the Original
Capital Securities have been
designated for trading in
the Private Offerings,
Resale and Trading through
Automated Linkages
("PORTAL") market, to the
extent that Original Capital
Securities are tendered and
accepted in connection with
the exchange offer, any
trading market for Original
Capital Securities which
remain outstanding after the
exchange offer could be
adversely affected.~ The
Exchange Capital Securities
and any Original Capital
Securities which remain
outstanding after
consummation of the exchange
offer will vote together as
a single class for purposes
of determining whether
holders of the requisite
percentage in outstanding
liquidation amount have
taken actions or exercised
rights under the Trust
Agreement. See "Description
of Exchange Securities;
Comparison to Original
Securities" and "Description
of Capital
Securities--Voting rights;
Amendment of Trust
Agreement." At the end of
the exchange offer, you will
not be entitled to any
additional distributions or
any further registration
rights under the
Registration Rights
Agreement, except under
limited circumstances.
Exchange offer procedures
Subject to the conditions described in "The exchange
offer Conditions to the exchange offer," the issuance of the
Exchange Capital Securities for Original Capital Securities
pursuant to the exchange offer will be made only after a timely
receipt by the Trust of a book-entry confirmation (as defined
below) evidencing the tender of the Original Capital Securities
through ATOP or certificates representing the Original Capital
Securities, a properly completed and duly executed Letter of
Transmittal, with any required signature guarantees, and all
other required documents. See "The exchange offer3/4Acceptance
for exchange and issuance of Exchange Capital Securities" and
"Procedures for tendering Original Capital Securities."
Therefore, holders of the Original Capital Securities desiring
to tender their Original Capital Securities in exchange for
Exchange Capital Securities should allow sufficient time to
ensure timely delivery. Neither Peoples nor the Trust is under
any duty to give notifications of defects or irregularities
with respect to the tenders of Original Capital Securities for
exchange.
Risk factors relating to Peoples:
- ---------------------------------
Potentially adverse impact of interest rates and economic and industry
conditions
Like most bank and savings and
loan holding companies, general
economic and other factors that
influence market interest rates
affect Peoples' net interest
income and the ability of
Peoples' banking
subsidiaries to respond to
rate changes. General
economic conditions may also
affect the credit quality of
Peoples' assets. Adverse
economic conditions may
affect the ability of
borrowers to repay loans,
particularly in the areas of
commercial real estate and
consumer lending. To the
extent that changes in
interest rates and economic
conditions adversely affect
Peoples' financial condition
and results of operations,
its ability to make
principal and interest
payments on the Junior
Subordinated Debentures may
be impaired.
These policies and procedures,
however, may not prevent unexpected
credit losses that could materially
affect Peoples' results of operation.
Peoples' lending is primarily focused
in the local southeastern Ohio market
and consists pricipally of
retail lending, which includes single-
family residential mortgages and other
consumer lending.
Peoples' larges groups of business loans
consist of credits to lodging and lodging
related companies, as well as automobile
dealer floor plans. These credits have
been subjected to Peoples' normal commercial
underwriting standards and Peoples believes
that they present no more than the normal
amount of risk assumed in other lending areas.
Year 2000 compliance
Year 2000 issues result from the inability of many computer
programs or computerized equipment to accurately calculate,
store or use a date after December 31, 1999.
Misinterpretations and misidentifications of the Year 2000
could result in system failure or miscalculations causing
disruptions of operations.
Peoples has completed an assessment of its core financial and
operational software systems, which are primarily provided by
third party vendors. Peoples has determined either that these
systems are already compliant or has taken the necessary steps
to make them compliant. Based on management's assessments,
Peoples replaced portions of its softwarea and worked with
software vendors so that those systems would properly use dates
beyond December 31, 1999. Management presently believes with
these recent modifications, combined with replacement in April
1999 of selected existing ATM hardware and software, the Year
2000 issue will be mitigated.
Peoples continues to assess the credit, liquidity and
counterparty trading risks which may be posed by customers who
encounter Year 2000-related problems. These problems may
result from the failure of a customer to properly remediate its
own systems and from Year 2000 problems that are not addressed
by the customer's suppliers and clients. Peoples has amended
credit policies to include an assessment of Year 2000-related
risks for material new customers. The initial assessment of
customer-related risks for material customers has been
completed and management does not anticipate material losses or
a significant negative impact to Peoples' future results of
operations or financial position. Peoples will continue to
monitor these risks.
Use of proceeds
Neither Peoples nor the Trust will receive any cash proceeds from the
issuance of the Exchange Capital Securities. The Original Capital Securities
surrendered in exchange for the Exchange Capital Securities will be retired and
cancelled.
The proceeds to the Trust from the offering of the Original Capital
Securities was $30,000,000 (before giving effect to approximately $1.0 million
of commissions and expenses of the offering payable by Peoples). All of the
proceeds from the sale of the Original Capital Securities and the Common
Securities ($30,928,000) were invested by the Trust in the Junior Subordinated
Debentures. Peoples invested approximately $10.0 million of the net proceeds in
Peoples Bank to increase that bank's capital level. Peoples Bank expects to
leverage the proceeds contributed to it by purchasing approximately $150 million
of additional investment securities by the end of the second quarter of 1999.
The investment securities will primarily consist of U.S. Agency securities and
mortgage-backed investments. Funding sources for the investment securities will
be comprised of FHLB borrowings and national market repurchase agreements. In
addition, Peoples has used a portion of the proceeds from the Junior
Subordinated Debentures to purchase approximately $1.8 million of treasury stock
(approximately 74,000 treasury shares). The remaining net proceeds from the sale
of the Junior Subordinated Debentures of $17.2 million have been retained by
Peoples for general corporate purposes, including additional repurchases of its
common shares and other investments.
Accounting treatment
For financial reporting purposes, the Trust will be treated as a
subsidiary of Peoples, and, accordingly, the accounts of the Trust will be
included in the consolidated financial statements of Peoples. The Capital
Securities will be presented as a separate line item in the consolidated balance
sheets of Peoples, entitled "Guaranteed Preferred Beneficial Interests in Junior
Subordinated Debentures", and appropriate disclosures about the Capital
Securities, the Guarantee and the Junior Subordinated Debentures will be
included in the notes to the consolidated financial statements. For financial
reporting purposes, Peoples will record distributions on the Capital Securities
as a non-interest expense in the consolidated statements of income.
Capitalization
The following table sets forth the capitalization of Peoples, on a
consolidated basis, at March 31, 1999, and as adjusted to give effect to the
consummation of the offering of the Original Capital Securities. The issuance of
the Exchange Capital Securities in the exchange offer will have no effect on the
capitalization of Peoples. The data contained in this table should be read
together with the consolidated financial statements and notes thereto of Peoples
and its subsidiaries. See "Incorporation by reference."
At
March 31, 1999
-------------------------------------
Actual Adjusted
---------------- ----------------
-------------------------------------
(Dollars in thousands)
Long-term Borrowings:
FHLB advances $ 37,957 $ 37,957
---------
Term note payable 2,550 2,550
--------- ---------
Total long-term borrowings $ 40,507 $ 40,507
========= =========
Guaranteed preferred beneficial
interests in junior
subordinated debentures(1) $-- $ 28,990
Stockholders' Equity:
Common shares, no par value,
12,000,000 shares authorized,
6,375,164 issued (including
shares in treasury) $ 50,814 $ 50,814
Accumulated comprehensive income,
net of deferred income taxes 2,732 2,732
Retained earnings 35,262 35,262
Treasury shares, at cost, 67,786 shares (2,048) (2,048)
--------- ---------
Total stockholders' equity $ 86,760 $ 86,760
========= =========
Total capitalization $ 127,267 $ 156,257
========= =========
Capital Ratios: (2)
Tier 1 capital to risk-weighted assets 10.83% 14.45%
Total capital to risk-weighted assets 12.27% 17.29%
Leverage ratio (3) 7.41% 9.55%
- ----------------------
(1) As described in this Prospectus, the sole assets of the Trust, which is
a wholly-owned subsidiary of Peoples, are $30,928,000 aggregate principal amount
of the 8.62% Junior Subordinated Debentures which mature on May 1, 2029. Peoples
owns all of the Common Securities issued by the Trust. The amount shown here is
net of issuance costs of $1,010,000. See "Description of Junior Subordinated
Debentures."
(2) Capital ratios in the "As Adjusted" column are computed in accordance
with regulatory guidelines.
(3) The leverage ratio is Tier 1 capital divided by quarterly average total
assets less intangibles.
Selected consolidated financial and other data of Peoples
The following selected consolidated financial data for the five years
ended December 31, 1998 is derived from Peoples' audited consolidated financial
statements. The financial data for the three-month periods ended March 31, 1999
and 1998 are derived from Peoples' unaudited financial statements. The unaudited
financial statements include all adjustments, consisting of normal recurring
accruals, which Peoples considers necessary for a fair presentation of the
financial position and the results of operations for these periods. Operating
results for the three months ended March 31, 1999 are not necessarily indicative
of the results that may be expected for the entire year ending December 31,
1999. The data should be read in conjunction with the consolidated financial
statements, related notes and other financial information incorporated by
reference in this Prospectus.
<TABLE>
<CAPTION>
At or for the year ended December 31,
-------------------------------------------------------------------------
-------------------------------------------------------------------------
1998 1997 1996 1995 1994
(Dollars in Thousands, except ratios and per share data)
<S> <C> <C> <C> <C> <C>
Summary of Operating Results:
Total interest income.................... $ 63,645 $ 53,836 $ 47,397 $ 43,068 $ 35,801
Total interest expense................... 30,497 25,216 21,966 20,777 15,424
------------- ------------- ------------- ------------ -------------
------------- ------------- ------------- ------------ -------------
Net interest income...................... 33,148 28,620 25,431 22,291 20,377
Provision for loan losses................ 2,325 2,589 1,965 1,315 765
------------- ------------- ------------- ------------ -------------
------------- ------------- ------------- ------------ -------------
Net interest income after provision
for loan losses..................... 30,823 26,031 23,466 20,976 19,612
Net securities gains (losses)............ 418 (28) 48 24 (237)
Other income............................. 6,820 5,966 5,130 4,457 4,378
Other expenses........................... 23,276 19,265 17,522 16,818 15,672
------------- ------------- ------------- ------------ -------------
------------- ------------- ------------- ------------ -------------
Income before provision for income taxes. 14,785 12,704 11,122 8,639 8,081
Provision for income taxes............... 4,740 4,099 3,471 2,589 2,333
------------- ------------- ------------- ------------ -------------
------------- ------------- ------------- ------------ -------------
Net income...................... $ 10,045 $ 8,605 $ 7,651 $ 6,050 $ 5,748
Per Share Data:
Net income:
Basic............................... $ 1.59 $ 1.50 1.35 $ 1.05 $ 0.99
Diluted............................. 1.54 1.46 1.33 1.05 0.99
Weighted average shares outstanding:
Basic .............................. 6,319,437 5,730,711 5,672,354 5,743,940 5,789,753
Diluted............................. 6,510,917 5,911,260 5,749,358 5,775,910 5,809,071
Cash dividends paid...................... 0.48 0.45 0.39 0.34 0.29
Book value at end of period.............. 13.63 12.47 9.89 9.11 7.88
Balance Sheet Data (at year end):
Net loans................................ $ 558,408 $ 513,214 415,540 $ 372,800 $ 354,570
Investment securities.................... 235,569 174,291 147,783 131,762 99,419
Federal Funds sold....................... 9,700 10,350 2,100 3,500 4,500
Total assets............................. 880,284 758,158 616,635 543,430 498,006
Total deposits........................... 714,168 611,107 504,692 429,077 403,819
Long-term borrowings..................... 40,664 28,577 29,200 23,142 23,787
Stockholders' equity..................... 86,014 78,818 56,193 51,474 45,635
Performance Ratios:
Return on average total assets.......... 1.20 % 1.29 % 1.29 % 1.15 % 1.20 %
Return on average stockholders' equity... 12.2 14.3 14.4 12.3 12.9
Average stockholders' equity.............
to average total assets............ 9.9 9.0 8.9 9.3 9.3
Average loans to average deposits........ 80.9 85.5 84.0 85.2 85.5
Dividend payout ratio.................... 30.4 30.5 30.5 32.2 29.3
Net interest margin.................... 4.47 4.74 4.75 4.67 4.75
Efficiency ratio....................... 50.38 51.06 53.76 60.55 60.84
Asset Quality Ratios:
Nonperforming loans to total loans (net
of unearned income)(1) 0.28 % 0.33 % 0.39 % 0.46 % 0.58 %
Net charge-offs (recoveries) to average
total loans........................... 0.22 0.30 0.45 0.37 0.10
Allowance for loan losses as a
percentage of total loans............. 1.67 1.60 1.63 1.77 1.88
Allowance for loan losses as a
percentage of nonperforming loans (1) 602.6 491.2 417.1 381.5 326.0
Capital Ratios:
Total capital to risk-weighted assets.... 11.95 % 14.34 % 12.86 % 13.85 % 14.13 %
Tier 1 capital to risk-weighted assets... 10.54 13.09 11.66 12.60 12.88
Leverage ratio........................... 7.08 9.29 7.92 8.81 8.93
Ratios of Earnings to Fixed Charges:(2)
Including interest on deposits........... 1.48 1.50 1.51 1.42 1.52
Excluding interest on deposits........... 4.27 5.25 4.54 4.53 5.31
- ----------------------
(1) Nonperforming loans consist of nonaccrual loans, loans contractually past due 90 days or more and loans with restructured
terms.
(2) Fixed charges means interest, whether expensed or capitalized. Earnings
is defined as pretax income with fixed charges added back, but excluding
any amount of interest capitalized during the period.
</TABLE>
At or for the three months ended
March 31,
---------------------------------
1999 1998
---------------------------------
dollars in Thousands, except ratios
and per share data)
Summary of Operating Results:
Total interest income............................. $ 15,985 $ 15,364
Total interest expense............................ 7,242 7,320
------------ ---------
Net interest income............................... 8,743 8,044
Provision for loan losses......................... 537 696
------------ ---------
Net interest income after provision for
loan losses..................................... 8,206 7,348
Net securities gains.............................. -- 4
Other income 1,844 1,618
Other expenses.................................... 6,236 5,414
------------ ---------
Income before provision for income taxes.......... 3,814 3,556
Provision for income taxes........................ 1,184 1,180
------------ ---------
Net income...................................... $ 2,630 $ 2,376
Per Share Data:
Net income:
Basic......................................... $ 0.42 $ 0.38
Diluted....................................... 0.41 0.36
Weighted average shares outstanding:
Basic......................................... 6,315,613 6,321,352
Diluted....................................... 6,463,929 6,529,108
Cash dividends paid............................... 0.13 0.12
Book value at end of period....................... 13.76 12.65
Balance Sheet Data (At quarter end):
Net loans......................................... $ 564,705 $ 558,408
Investment securities............................. 223,118 235,569
Federal Funds sold................................ 6,150 9,700
Total assets...................................... 30,515 880,284
Total deposits.................................... 706,994 714,168
Long-term borrowings.............................. 40,507 40,664
Stockholders' equity.............................. 86,760 86,014
Performance Ratios:
Return on average total assets.................... 1.21% 1.22%
Return on average stockholders' equity............ 12.12 11.94
Average stockholders' equity to average total
assets.......................................... 9.95 10.25
Average loans to average deposits................. 81.27 84.25
Dividend payout ratio............................. 30.76 30.72
Asset Quality Ratios:
Nonperforming assets to total loans (net of 0.27% 0.24%
unearned income) and foreclosed properties
at quarter end (1)............................
Net charge-offs (recoveries) to average 0.03 0.04
total loans...................................
Allowance for loan losses as a percentage 1.72 1.70
of total loans................................
Allowance for loan losses as a percentage 636.60 707.10
of nonperforming loans (1)
Capital Ratios:
Total capital to risk-weighted assets............. 10.83% 12.87%
Tier 1 capital to risk-weighted assets............ 12.27 14.13
Leverage ratio.................................... 7.41 8.60
Ratio of Earnings to Fixed Charges: (2)
Including interest on deposits.................... 1.52 1.48
Excluding interest on deposits.................... 5.65 4.51
- -----------------
(1) Nonperforming assets consist of nonaccrual loans, loans contractually
past due 90 days or more, loans with restructured terms and foreclosed
properties.
(2) Fixed charges means interest, whether expensed or capitalized. Earnings
is defined as pretax income with fixed charges added back, but
excluding any amount of interest capitalized during the period.
Peoples Bancorp Inc.
Peoples was organized in 1980 as a bank holding company. Peoples'
subsidiaries include The Peoples Banking and Trust Company ("Peoples Bank"), The
First National Bank of Southeastern Ohio ("First National Bank"), Peoples Bank
FSB, and The Northwest Territory Life Insurance Company, an Arizona corporation
("Northwest Territory"). First National Bank also owns two insurance agency
subsidiaries, Northwest Territory Life Insurance Agency, Inc. and Northwest
Territory Property and Casualty Insurance Agency, Inc. (the "Agencies").
Peoples' banking subsidiaries operate 35 sales offices in the states of
Ohio, West Virginia, and Kentucky. At March 31, 1999, Peoples had total assets
of $871.9 million, total loans of $574.6 million, total deposits of $707.0
million, and total stockholders' equity of $86.8 million. At March 31, 1999,
Peoples and its subsidiaries had 356 full-time equivalent employees. The
principal executive office of Peoples is located at 138 Putnam Street, Marietta,
Ohio 45750, and its telephone number is (740) 373-3155.
Over the past several years, Peoples has experienced significant growth
in assets and stockholders' equity, primarily through acquisitions described
below as well as banking center purchases in markets contiguous to the markets
served by Peoples. For the five-year period ended December 31, 1998, Peoples'
assets grew at a 12.1% compound annual growth rate, while stockholders' equity
grew at a compound annual growth rate of 13.5%. Peoples has also had a history
of consistent earnings growth. Net income per share grew at a compound rate of
9.9% for the five-year period ended December 31, 1998. Over that same period,
Peoples' annual return on average assets and stockholders' equity averaged 1.23%
and 13.24%, respectively. For the year ended December 31, 1998, Peoples' return
on average annual assets was 1.20% and its return on average stockholders'
equity was 12.21%. For the quarter ended March 31, 1999, Peoples' return on
average assets was 1.21% and its return on average stockholders' equity was
12.12%
Peoples routinely explores opportunities for additional growth and
expansion of its core financial service businesses, including the acquisition of
companies engaged in similar activities. Management also focuses on internal
growth as a method for reaching performance goals and reviews key performance
indicators on a regular basis to measure Peoples' success. There can be no
assurance, however, that Peoples will be able to grow, or if it does, that any
growth or expansion will result in an increase in Peoples' earnings, dividends,
book value or the market value of its common shares.
Peoples Bank is a full-service commercial bank chartered as an Ohio
banking corporation under its present name in Marietta, Ohio, in 1902. Peoples
Bank is engaged in general commercial and consumer banking business, serving
individuals and businesses from offices in Washington, Athens, Meigs, Fairfield,
Gallia, and Licking Counties in Ohio, as well as Wood, Mason, and Wetzel
Counties in West Virginia. In addition, Peoples Bank's Investment and Trust
Division provides investment and trust services to its clients. At March 31,
1999, Peoples Bank's Investment and Trust Division managed approximately $559
million in trust assets (at market value).
In 1981, Peoples acquired First National Bank, a national banking
association first chartered in 1900. First National Bank is also engaged in
general commercial and consumer banking business and serves customers in Noble
and Morgan Counties in Ohio. First National Bank also owns the Agencies, which
were established in 1995. The Agencies were the first insurance agencies in Ohio
associated with a financial institution to receive licenses to conduct a
broad-based insurance business. The Agencies offer a complete line of life and
property and casualty products. In addition, a full line of investment products
are offered through an unaffiliated registered broker dealer.
In 1984, Peoples began operating Northwest Territory, which reinsures
credit life and disability insurance issued to customers of banking subsidiaries
of Peoples by the issuing insurance company.
In 1997, Peoples purchased Russell Federal Savings Bank ("Russell
Federal") and Gateway Bancorp, Inc., which owned a savings bank subsidiary,
Catlettsburg Federal Savings Bank ("Catlettsburg Federal"). Russell Federal was
originally chartered as a mutual association in 1914 and later converted to a
federally-chartered stock savings bank in 1994. Catlettsburg Federal was
originally chartered as a mutual savings and loan association in 1935 and
converted to a federally-chartered stock savings bank in 1994 with Gateway
Bancorp, Inc. as its sole shareholder. Effective January 1, 1999, Peoples
combined Russell Federal and Catlettsburg Federal to create a single savings
bank entity named Peoples Bank FSB.
Peoples' banking subsidiaries provide a wide range of financial
services, including checking accounts; NOW and Super NOW accounts; money market
deposit accounts; savings accounts; time certificates of deposit; commercial,
installment, and commercial and residential real estate mortgage loans; credit
and debit cards; lease financing; corporate and personal trust services; and
safe deposit rental facilities. Peoples' banking subsidiaries also sell
travelers checks, money orders and cashier's checks. Services are provided
through ordinary walk-in offices, automated teller machines, automobile drive-in
facilities called "Motor Banks", banking by phone, and limited cash management
services through computer banking.
Peoples' service area has a diverse economic structure. Principal
industries in the area include metals, plastics and petrochemical manufacturing;
oil, gas and coal production and related support industries. In addition,
tourism, education and other service-related industries are important and
growing industries. Consequently, Peoples is not dependent upon any one industry
segment for its business opportunities.
To meet the demands of the increasingly competitive financial services
industry, management has adopted a philosophy that full-service commercial and
consumer banking relationships require an understanding of the customer's
financial needs. Consistent with this philosophy, Peoples has sought to make its
key professional associates more accessible to its customers. Management
believes that Peoples' flexibility to customize products and services through
integrated products and delivery systems is one of its competitive advantages.
It is Peoples' goal to provide integrated, personalized financial services for
the economic benefit and well-being of the residents and businesses of the
communities in its markets. Peoples' associates are well-educated personnel who
apply sound business practices focused on customer satisfaction, profits, and
growth. Key elements of Peoples' strategy include:
o Being the "economic engine" in the markets we serve. Peoples primarily focuses
on non-major metropolitan markets in which to provide products and services.
Management believes Peoples has developed a niche and certain level of expertise
in serving these communities. In addition to serving the financial needs of the
communities, Peoples strives to be the driving force in the communities it
serves through civic leadership and involvement in community activities.
o Continued development of integrated sales and service initiatives. Recently
Peoples has implemented a process to enhance the sales skills and service
abilities of its associates. Peoples historically has operated under a
"needs-based" selling approach that, we believe, has proven successful in
serving the financial needs of many customers. Management anticipates that in
future periods Peoples will increase its investment in sales training and
education to assist in the development of Peoples' associates in their
identification of customer service opportunities and serving customers with the
financial products they need.
It is not Peoples' strategy to compete solely on the basis of interest
rates. Management believes that a focus on customer relationships and
incentives that promote customers' continued use of Peoples' financial
products and services will lead to enhanced revenue opportunities. In
future periods, Peoples will focus its efforts to fully integrate its
recent entry into insurance product offerings with its traditional
banking operations. Management believes these integration efforts will
lead to enhanced revenues through complementary product offerings that
satisfy customer demands for high quality, "one-stop shopping".
o Maintain long-term focus. Peoples' management and associates share a long-term
focus that promotes consistent enhancements to results of operations and other
performance ratios. This long-term focus applies to possible acquisitions and
expansion of its markets (and market penetration) through new offices. In 1999,
Peoples will open sales offices in three West Virginia Wal-Mart retail
superstores that will enhance visibility to an increased number of shoppers in
those markets. The first of these three sales offices opened on April 1, 1999 in
the Wal-Mart superstore located in New Martinsville, West Virginia. Management
believes these new sales centers will be models for future sales and service
efforts and for future banking center expansion, using electronic distribution
channels and proactive sales interaction with these prospective customers.
Other expansions to Peoples' financial service opportunities will
complement Peoples' core competencies and strategic intent. Management
considers mergers and acquisitions to be a viable method of enhancing
Peoples' earnings potential and will continue to pursue appropriate
business opportunities as they develop. Consistent with Peoples'
philosophy and growth strategies, Peoples frequently evaluates
opportunities to acquire banks or banking centers that complement
Peoples' existing core businesses and markets.
Management will continue to focus efforts to expand its electronic
delivery methods to include internet banking in addition to current
personal computer banking systems. Peoples' management plans to invest
resources in future periods to enhance its electronic delivery methods.
Management believes Peoples' array of financial products, services, and
delivery systems compare favorably with all current and prospective
competitors.
o Maintain strong asset quality ratios and similar balance sheet composition.
Management does not have plans to alter its historic focus on strong asset
quality, and will continue to maintain its conservative underwriting standards
to maintain high asset quality. At March 31, 1999, Peoples' ratio of
nonperforming loans to total loans was 0.27%. Also at that date, Peoples'
allowance for loan losses was 1.67% of total outstanding loans. For the quarter
ended March 31, 1999, Peoples' annualized net charge-offs as a percentage of
total loans totaled 0.13%.
At March 31, 1999, Peoples had total outstanding loans of $574.6
million, of which $230.6 million (or 40.1%) were residential mortgage
loans, $223.2 million (or 38.9%) were commercial, financial or
agricultural based loans; $110.4 million (or 19.2%) were consumer
loans; and $10.4 million (or 1.8%) were real estate, construction
loans. Consumer loans include approximately $6.3 million of credit card
loan balances. At March 31, 1999, Peoples had total deposits of $707.0
million, short-term borrowings of $31.3 million and long-term
borrowings of $40.5 million.
Regulation and supervision
Almost all of Peoples' assets consist of its investments in its banking
subsidiaries. Thus, Peoples' ability to pay principal of, and interest on, the
Junior Subordinated Debentures depends primarily upon cash dividends received by
Peoples from its banking subsidiaries.
Peoples Bank, First National Bank and Peoples Bank FSB may not pay
dividends to Peoples if, after paying those dividends, they would fail to meet
the required minimum levels under the risk-based capital guidelines and the
minimum leverage ratio requirements. Peoples Bank and First National Bank must
have the approval of their respective regulators if a dividend in any year would
cause the total dividends for that year to exceed the sum of the current year's
net income and the retained earnings for the preceding two years, less required
transfers to surplus. Peoples Bank FSB may make capital distributions during any
calendar year equal to the greater of 100% of net income for the year-to-date
plus 50% of the amount by which the lesser of its tangible, core or risk-based
capital exceeds its capital requirement for that capital component, as measured
at the beginning of the calendar year, or 75% of its net income for the most
recent four-quarter period. If the current minimum capital requirements
following a proposed capital distribution are not met, Peoples Bank FSB must
obtain prior approval from the OTS. At March 31, 1999, approximately $13.8
million of retained earnings plus net income through that date of the banking
subsidiaries were available for the payment of dividends to Peoples without
regulatory approval. Payment of dividends by a banking subsidiary may be
restricted at any time at the discretion of the appropriate regulator if it
deems the payment to constitute an unsafe and/or unsound banking practice or
necessary to maintain adequate capital.
If Peoples does not receive sufficient cash dividends from its banking
subsidiaries, it is unlikely that Peoples will have sufficient funds to make
payments on the Junior Subordinated Debentures. See "Description of Junior
Subordinated Debentures."
Other statutes and regulations affecting Peoples and its subsidiaries
are summarized in "Item 1. Business Supervision and Regulation" of Peoples'
Annual Report on Form 10-K for the fiscal year ended December 31, 1998
incorporated into this Prospectus by reference.
PEBO Capital Trust I
The Trust is a statutory business trust created under Delaware law upon
the filing of a certificate of trust with the Delaware Secretary of State. The
Trust exists for the exclusive purposes of: (a) issuing and selling the Trust
Securities, which represent undivided beneficial interests in the assets of the
Trust; (b) investing the gross proceeds from the sale of the Trust Securities in
the Junior Subordinated Debentures issued by Peoples; and (c) engaging in only
those other activities necessary, advisable or incidental thereto. The Junior
Subordinated Debentures are the sole assets of the Trust. Payments under the
Junior Subordinated Debentures are the sole revenues of the Trust. All of the
Common Securities are owned directly by Peoples. The Common Securities rank pari
passu, and payments will be made thereon pro rata, with the Capital Securities,
except that upon the occurrence and continuance of an event of default under the
Trust Agreement resulting from a Debenture Event of Default, the rights of
Peoples as holder of the Common Securities to payments in respect of
distributions and payments upon liquidation, redemption or otherwise will be
subordinated to the rights of the holders of the Capital Securities. See
"Description of Capital Securities3/4Subordination of Common Securities."
Peoples acquired Common Securities in a liquidation amount equal to 3%
of the total capital of the Trust. The Trust has a term of approximately 35
years, but may dissolve earlier as provided in the Trust Agreement. The Trust's
business and affairs are conducted by the Issuer Trustees, each appointed by
Peoples as direct holder of the Common Securities. The Issuer Trustees for the
Trust are Wilmington Trust Company, as the Property Trustee and as the Delaware
Trustee, and three Administrative Trustees, who are officers of Peoples.
Wilmington Trust Company acts as sole indenture trustee under the Trust
Agreement. Wilmington Trust Company also acts as Guarantee Trustee and Debenture
Trustee under the Guarantee and the Indenture, respectively. See "Description of
Guarantee" and "Description of Junior Subordinated Debentures." The holder of
the Common Securities of the Trust or, if an Event of Default under the Trust
Agreement has occurred and is continuing, the holders of not less than a
majority in liquidation amount of the Capital Securities are entitled to
appoint, remove or replace the Property Trustee and/or the Delaware Trustee. In
no event will the holders of the Capital Securities have the right to vote to
appoint, remove or replace the Administrative Trustees. Those voting rights are
vested exclusively in the holder of the Common Securities. The duties and
obligations of each Issuer Trustee are governed by the Trust Agreement. Peoples,
as issuer of the Junior Subordinated Debentures, will pay all fees, expenses,
debts and obligations (other than the Trust Securities) related to the exchange
offer, except as provided in this Prospectus, and will pay, directly or
indirectly, all ongoing costs, expenses and liabilities of the Trust. The
principal executive office of the Trust is c/o Peoples Bancorp Inc., 138 Putnam
Street, Marietta, Ohio 45750, Attention: Charles R. Hunsaker, Administrative
Trustee.
The exchange offer
Purpose and effect of the exchange offer
In connection with the sale of the Original Capital Securities, Peoples
and the Trust entered into the Registration Rights Agreement with Sandler
O'Neill & Partners, L.P., the initial purchaser of the Original Capital
Securities, pursuant to which Peoples and the Trust agreed to file and to use
their reasonable best efforts to cause to be declared effective by the SEC a
registration statement with respect to the exchange of the Original Capital
Securities for capital securities with terms identical in all material respects
to the terms of the Original Capital Securities. A copy of the Registration
Rights Agreement has been filed as an exhibit to the Registration Statement of
which this Prospectus is a part.
The exchange offer is being made to satisfy the contractual obligations
of Peoples and the Trust under the Registration Rights Agreement. The form and
terms of the Exchange Capital Securities are the same as the form and terms of
the Original Capital Securities except that the Exchange Capital Securities (a)
have been registered under the Securities Act and therefore will not be subject
to the same restrictions on transfer under federal and state securities laws as
the Original Capital Securities and (b) will not provide for any increase in the
distribution rate thereon. Upon consummation of the exchange offer, holders of
Original Capital Securities will not be entitled to any increase in the
distribution rate thereon or any further registration rights under the
Registration Rights Agreement (except in limited circumstances). See "Risk
factors--Risks relating to the Capital Securities and the Junior Subordinated
Debentures--Consequences of a failure to exchange Original Capital Securities"
and "Description of Exchange Securities; Comparison to Original Securities."
The exchange offer is not being made to, nor will the Trust accept
tenders for exchange from, holders of Original Capital Securities in any
jurisdiction in which the exchange offer or the acceptance thereof would not be
in compliance with the securities or blue sky laws of that jurisdiction.
Unless the context requires otherwise, the term "holder" with respect
to the exchange offer means any person in whose name the Original Capital
Securities are registered on the books of the Trust or any other person who has
obtained a properly completed bond power from the registered holder, or any
participant in the DTC system whose name appears on a security position listing
as the holder of those Original Capital Securities and who desires to deliver
those Original Capital Securities by book-entry transfer at DTC.
Pursuant to the exchange offer, Peoples will exchange as soon as
practicable after the date of this Prospectus, the Exchange Guarantee for the
Original Guarantee and the Exchange Junior Subordinate Debentures, in an amount
corresponding to the Original Capital Securities accepted for exchange, for a
like aggregate principal amount of the Original Junior Subordinated Debentures.
The Exchange Guarantee and the Exchange Junior Subordinated Debentures have been
registered under the Securities Act.
Terms of the exchange offer
The Trust hereby offers, upon the terms and subject to the conditions
set forth in this Prospectus and in the accompanying Letter of Transmittal, to
exchange up to $30,000,000 aggregate liquidation amount of Exchange Capital
Securities for a like aggregate liquidation amount of Original Capital
Securities properly tendered on or prior to the expiration date and not properly
withdrawn in accordance with the procedures described below. The Trust will
issue, promptly after the expiration date, an aggregate liquidation amount of up
to $30,000,000 of Exchange Capital Securities in exchange for a like aggregate
liquidation amount of outstanding Original Capital Securities tendered and
accepted in connection with the exchange offer. Holders may tender their
Original Capital Securities in whole or in part in a liquidation amount of not
less than $100,000 (100 Capital Securities) or any integral multiple of $1,000
liquidation amount (one Capital Security) in excess thereof, provided that if
any Original Capital Securities are tendered in exchange for part, the
untendered liquidation amount must be $100,000 or any integral multiple of
$1,000 in excess thereof.
The exchange offer is not conditioned upon any minimum liquidation
amount of Original Capital Securities being tendered. As of the date of this
Prospectus, $30,000,000 aggregate liquidation amount of the Original Capital
Securities is outstanding.
Holders of Original Capital Securities do not have any appraisal or
dissenters' rights in connection with the exchange offer. Original Capital
Securities which are not tendered for or are tendered but not accepted in
connection with the exchange offer will remain outstanding and be entitled to
the benefits of the Trust Agreement, but will not be entitled to any further
registration rights under the Registration Rights Agreement. See "Risk
factors3/4Risks relating to the Capital Securities and the Junior Subordinated
Debentures3/4Consequences of a failure to exchange Original Capital Securities"
and "Description of Exchange Securities; Comparison to Original Securities."
If any tendered Original Capital Securities are not accepted for
exchange because of an invalid tender, the occurrence of other events described
in this Prospectus or otherwise, certificates for any unaccepted Original
Capital Securities will be returned, without expense, to the tendering holder
promptly after the expiration date.
Holders who tender Original Capital Securities in connection with the
exchange offer will not be required to pay brokerage commissions or fees or,
subject to the instructions in the Letter of Transmittal, transfer taxes with
respect to the exchange of Original Capital Securities in connection with the
exchange offer. Peoples will pay all charges and expenses, other than applicable
taxes described below, in connection with the exchange offer. See "3/4Fees and
expenses."
Neither the Board of Directors of Peoples nor any Trustee of the Trust
makes any recommendation to holders of Original Capital Securities as to whether
to tender or refrain from tendering all or any portion of their Original Capital
Securities pursuant to the exchange offer. In addition, no one has been
authorized to make any recommendation. Holders of Original Capital Securities
must make their own decision whether to tender pursuant to the exchange offer
and, if so, the aggregate amount of Original Capital Securities to tender based
on those holders' own financial position and requirements.
Expiration date; Extensions; Amendments
The expiration date of the exchange offer is 5:00 p.m., New York City
time, on ________, 1999, unless the exchange offer is extended by Peoples or the
Trust (in which case the expiration date will be the latest date and time to
which the exchange offer is extended).
Peoples and the Trust expressly reserve the right in their sole and
absolute discretion, subject to applicable law, at any time and from time to
time, (a) to delay the acceptance of the Original Capital Securities for
exchange, (b) to terminate the exchange offer (whether or not any Original
Capital Securities have been accepted for exchange) if Peoples and the Trust
determine, in their sole and absolute discretion, that any of the events or
conditions referred to under "3/4Conditions to the exchange offer" have occurred
or exist, (c) to extend the expiration date of the exchange offer and retain all
Original Capital Securities tendered pursuant to the exchange offer, subject,
however, to the right of holders of Original Capital Securities to withdraw
their tendered Original Capital Securities as described under "3/4Withdrawal
rights," and (d) to waive any condition or otherwise amend the terms of the
exchange offer in any respect. If the exchange offer is amended in a manner
determined by Peoples and the Trust to constitute a material change, or if
Peoples and the Trust waive a material condition of the exchange offer, Peoples
and the Trust will promptly disclose that amendment by means of a prospectus
supplement which will be distributed to the registered holders of the Original
Capital Securities, and Peoples and the Trust will extend the exchange offer to
the extent required by Rule 14e1 under the Exchange Act.
Any delay in acceptance, extension, termination or amendment will be
followed promptly by oral or written notice thereof to the exchange agent and by
making a public announcement thereof, and the announcement in the case of an
extension will be made no later than 9:00 a.m., New York City time, on the next
business day after the previously scheduled expiration date. Without limiting
the manner in which Peoples and Trust may choose to make any public announcement
and subject to applicable law, Peoples and the Trust will have no obligation to
publish, advertise or otherwise communicate any public announcement other than
by issuing a release to an appropriate news agency.
Acceptance for exchange and issuance of Exchange Capital Securities
Upon the terms and subject to the conditions of the exchange offer, the
Trust will exchange, and will issue to the exchange agent, Exchange Capital
Securities for Original Capital Securities validly tendered and not withdrawn
promptly after the expiration date.
In all cases, delivery of Exchange Capital Securities in exchange for
Original Capital Securities tendered and accepted for exchange pursuant to the
exchange offer will be made only after timely receipt by the exchange agent of
(a) Original Capital Securities or a book-entry confirmation of a book-entry
transfer of Original Capital Securities into the exchange agent's account at
DTC, including an Agent's Message if the tendering holder has not delivered a
Letter of Transmittal, (b) the Letter of Transmittal (or facsimile thereof),
properly completed and duly executed, with any required signature guarantees, or
(in the case of a book-entry transfer) an Agent's Message in lieu of the Letter
of Transmittal, and (c) any other documents required by the Letter of
Transmittal.
The term "book-entry confirmation" means a timely confirmation of a
book-entry transfer of Original Capital Securities into the exchange agent's
account at DTC. The term "Agent's Message" means a message, transmitted by DTC
to and received by the exchange agent and forming a part of a book-entry
confirmation, which states that DTC has received an express acknowledgment from
the tendering participant, which acknowledgment states that the participant has
received and agrees to be bound by the Letter of Transmittal and that the Trust
and Peoples may enforce the Letter of Transmittal against such participant.
Subject to the terms and conditions of the exchange offer, Peoples and
the Trust will be deemed to have accepted for exchange, and thereby exchanged,
Original Capital Securities validly tendered and not withdrawn as, if and when
the Trust gives oral or written notice to the exchange agent of Peoples' and the
Trust's acceptance of those Original Capital Securities for exchange pursuant to
the exchange offer. The exchange agent will act as agent for the Trust for the
purpose of receiving tenders of Original Capital Securities, Letters of
Transmittal and related documents, and as agent for tendering holders for the
purpose of receiving Original Capital Securities, Letters of Transmittal and
related documents and transmitting Exchange Capital Securities to validly
tendering holders. Such exchange will be made promptly after the expiration
date. If, for any reason whatsoever, acceptance for exchange or the exchange of
any Original Capital Securities tendered pursuant to the exchange offer is
delayed (whether before or after the Trust's acceptance for exchange of Original
Capital Securities) or Peoples and the Trust extend the exchange offer or are
unable to accept for exchange or exchange Original Capital Securities tendered
pursuant to the exchange offer, then, without prejudice to Peoples' and the
Trust's rights described in this Prospectus, the exchange agent may,
nevertheless, on behalf of Peoples and the Trust and subject to Rule 14e-1(c)
under the Exchange Act, retain tendered Original Capital Securities and those
Original Capital Securities may not be withdrawn except to the extent tendering
holders are entitled to withdrawal rights as described under "3/4Withdrawal
rights."
Pursuant to the Letter of Transmittal or Agent's Message in lieu
thereof, a holder of Original Capital Securities will warrant and agree that it
has full power and authority to tender, exchange, sell, assign and transfer
Original Capital Securities, that the Trust will acquire good, marketable and
unencumbered title to the tendered Original Capital Securities, free and clear
of all liens, restrictions, charges and encumbrances, and that Original Capital
Securities tendered for exchange are not subject to any adverse claims or
proxies. The holder also will warrant and agree that it will, upon request,
execute and deliver any additional documents deemed by Peoples, the Trust or the
exchange agent to be necessary or desirable to complete the exchange, sale,
assignment and transfer of the Original Capital Securities tendered pursuant to
the exchange offer.
Procedures for tendering Original Capital Securities
Valid Tender. Except as described below, in order for Original Capital
Securities to be validly tendered pursuant to the exchange offer, a properly
completed and duly executed Letter of Transmittal (or facsimile thereof), with
any required signature guarantees, or (in the case of a book-entry transfer) an
Agent's Message in lieu of a Letter of Transmittal, and any other required
documents, must be received by the exchange agent at one of its addresses given
under "3/4Exchange agent," and (a) tendered Original Capital Securities must be
received by the exchange agent, or (b) those Original Capital Securities must be
tendered pursuant to the procedures for book-entry transfer described below and
a book-entry confirmation, including an Agent's Message if the tendering holder
has not delivered a Letter of Transmittal, must be received by the exchange
agent, in each case on or prior to the expiration date, or (c) the guaranteed
delivery procedures described below must be complied with.
If less than all of the Original Capital Securities are tendered, a
tendering holder should fill in the amount of Original Capital Securities being
tendered in the appropriate box on the Letter of Transmittal or so indicate in
an Agent's Message in lieu of the Letter of Transmittal and the untendered
liquidation amount must be $100,000 or any integral multiple of $1,000 in excess
thereof. The entire amount of Original Capital Securities delivered to the
exchange agent will be deemed tendered unless otherwise indicated.
The method of delivery of certificates, the Letter of Transmittal and
all other required documents is at the option and sole risk of the tendering
holder. Delivery will be deemed made only when actually received by the exchange
agent. If delivery is by mail, registered mail, return-receipt requested,
properly insured, or an overnight delivery service is recommended. In all cases,
sufficient time should be allowed to ensure a timely delivery.
Book-Entry Transfer. The exchange agent will establish an account with
respect to the Original Capital Securities at DTC for purposes of the exchange
offer within two business days after the date of this Prospectus. Any financial
institution that is a participant in DTC's book-entry transfer facility system
may make a book-entry delivery of the Original Capital Securities by causing DTC
to transfer such Original Capital Securities into the exchange agent's account
at DTC in accordance with DTC's procedures for transfers. However, although
delivery of Original Capital Securities may be effected through book-entry
transfer into the exchange agent's account at DTC, the Letter of Transmittal (or
facsimile thereof), properly completed and duly executed, with any required
signature guarantees, or an Agent's Message in lieu of the Letter of
Transmittal, and any other required documents, must in any case be delivered to
and received by the exchange agent at its address set forth under "3/4Exchange
agent" on or prior to the expiration date, or the guaranteed delivery procedure
described below must be complied with.
Delivery of documents to DTC in accordance with DTC's procedures does
not constitute delivery to the exchange agent.
Signature Guarantees. Certificates for Original Capital Securities need
not be endorsed and signature guarantees on the Letter of Transmittal are
unnecessary unless (a) a certificate for Original Capital Securities is
registered in a name other than that of the person surrendering the certificate
or (b) the holder completes the box entitled "Special Issuance Instructions" or
"Special Delivery Instructions" in the Letter of Transmittal. In the case of (a)
or (b) above, those certificates for Original Capital Securities must be duly
endorsed or accompanied by a properly executed bond power, with the endorsement
or signature on the bond power and on the Letter of Transmittal guaranteed by a
firm or other entity identified in Rule 17Ad-15 under the Exchange Act as an
"eligible guarantor institution," including (as such terms are defined in the
Exchange Act): (i) a bank; (ii) a broker, dealer, municipal securities broker or
dealer or government securities broker or dealer; (iii) a credit union; (iv) a
national securities exchange, registered securities association or clearing
agency; or (v) a savings association that is a participant in a Securities
Transfer Association (an "Eligible Institution"), unless surrendered on behalf
of such Eligible Institution. See Instruction 1 to the Letter of Transmittal.
Guaranteed Delivery. If a holder desires to tender Original Capital
Securities pursuant to the exchange offer and the certificate for those Original
Capital Securities is not immediately available or time will not permit all
required documents to reach the exchange agent on or prior to the expiration
date, or the procedure for book-entry transfer cannot be completed on a timely
basis, those Original Capital Securities may nevertheless be tendered, provided
that all of the following guaranteed delivery procedures are complied with:
o The tenders are made by or through an Eligible Institution;
o A properly completed and duly executed Notice of Guaranteed Delivery,
substantially in the form accompanying the Letter of Transmittal, is
received by the exchange agent, as provided below, on or prior to the
expiration date; and
o The certificate (or a book-entry confirmation) representing all tendered
Original Capital Securities, in proper form for transfer, together with a
properly completed and duly executed Letter of Transmittal (or facsimile
thereof), or Agent's Message in lieu thereof, with any required signature
guarantees and any other documents required by the Letter of Transmittal,
are received by the exchange agent within three New York Stock Exchange
trading days after the date of execution of the Notice of Guaranteed
Delivery.
The Notice of Guaranteed Delivery may be delivered by hand, or
transmitted by facsimile or mail to the exchange agent and must include a
guarantee by an Eligible Institution in the form set forth in that Notice.
The delivery of Exchange Capital Securities in exchange for Original
Capital Securities tendered and accepted for exchange pursuant to the exchange
offer will in all cases be made only after timely receipt by the exchange agent
of Original Capital Securities, or of a book-entry confirmation with respect to
such Original Capital Securities, and a properly completed and duly executed
Letter of Transmittal (or facsimile thereof), or Agent's Message in lieu
thereof, together with any required signature guarantees and any other documents
required by the Letter of Transmittal. Accordingly, the delivery of Exchange
Capital Securities might not be made to all tendering holders at the same time,
and will depend upon when Original Capital Securities, book-entry confirmations
with respect to Original Capital Securities and other required documents are
received by the exchange agent.
Peoples and the Trust's acceptance for exchange of Original Capital
Securities tendered pursuant to any of the procedures described above will
constitute a binding agreement between the tendering holder, Peoples and the
Trust upon the terms and subject to the conditions of the exchange offer.
Determination of Validity. All questions as to the form of documents,
validity, eligibility (including time of receipt) and acceptance for exchange of
any tendered Original Capital Securities will be determined by Peoples and the
Trust, in their sole discretion, whose determination will be final and binding
on all parties. Peoples and the Trust reserve the absolute right, in their sole
and absolute discretion, to reject any and all tenders determined by them not to
be in proper form or the acceptance of which, or exchange for, may, in the
opinion of counsel to Peoples and the Trust, be unlawful. Peoples and the Trust
also reserve the absolute right, subject to applicable law, to waive any of the
conditions of the exchange offer as described under "Conditions to the
exchange offer" or any condition or irregularity in any tender of Original
Capital Securities of any particular holder whether or not similar conditions or
irregularities are waived in the case of other holders.
The interpretation by Peoples and the Trust of the terms and conditions
of the exchange offer (including the Letter of Transmittal and the instructions
thereto) will be final and binding. No tender of Original Capital Securities
will be deemed to have been validly made until all irregularities with respect
to such tender have been cured or waived. None of Peoples, the Trust, any
affiliates or assigns of Peoples or the Trust, the exchange agent or any other
person will be under any duty to give any notification of any irregularities in
tenders or incur any liability for failure to give any such notification.
If any Letter of Transmittal, endorsement, bond power, power of
attorney or any other document required by the Letter of Transmittal is signed
by a trustee, executor, administrator, guardian, attorney-in-fact, officer of a
corporation or other person acting in a fiduciary or representative capacity,
that person should so indicate when signing, and unless waived by Peoples and
the Trust, proper evidence satisfactory to Peoples and the Trust, in their sole
discretion, of that person's authority to so act must be submitted.
A beneficial owner of Original Capital Securities that are held by or
registered in the name of a broker, dealer, commercial bank, trust company or
other nominee or custodian is urged to contact that entity promptly if the
beneficial holder wishes to participate in the exchange offer.
Resale of Exchange Capital Securities
The Trust is making the exchange offer for the Exchange Capital
Securities in reliance on the position of the staff of the Division of
Corporation Finance of the SEC as forth in interpretative letters addressed to
third parties in other transactions. However, neither Peoples nor the Trust
sought its own interpretive letter and there can be no assurance that the staff
of the Division of Corporation Finance of the SEC would make a determination
with respect to this exchange offer similar to that made in the interpretive
letters to third parties. Based on these interpretations by the staff of the
Division of Corporation Finance of the SEC, and subject to the two immediately
following sentences, Peoples and the Trust believe that Exchange Capital
Securities issued pursuant to this exchange offer in exchange for Original
Capital Securities may be offered for resale, resold and otherwise transferred
by a holder thereof (other than a holder who is a broker-dealer) without further
compliance with the registration and prospectus delivery requirements of the
Securities Act, provided that the Exchange Capital Securities are acquired in
the ordinary course of the holder's business and that the holder is not
participating, and has no arrangement or understanding with any person to
participate, in a distribution (within the meaning of the Securities Act) of
those Exchange Capital Securities. However, any holder of Original Capital
Securities who is an affiliate of Peoples or the Trust or who intends to
participate in the exchange offer for the purpose of distributing Exchange
Capital Securities, or any broker-dealer who purchased Original Capital
Securities from the Trust to resell pursuant to Rule 144A or any other available
exemption under the Securities Act (a) will not be able to rely on the
interpretations of the staff of the Division of Corporation Finance of the SEC
described in the above-mentioned interpretive letters, (b) will not be permitted
or entitled to tender Original Capital Securities in the exchange offer and (c)
must comply with the registration and prospectus delivery requirements of the
Securities Act in connection with any sale or other transfer of Original Capital
Securities, unless that sale or other transfer is made pursuant to an exemption
from those requirements. In addition, as described below, Participating
Broker-Dealers must deliver a prospectus meeting the requirements of the
Securities Act in connection with any resales of Exchange Capital Securities.
Each holder of Original Capital Securities who wishes to exchange
Original Capital Securities for Exchange Capital Securities in the exchange
offer will be required to represent that (a) it is not an affiliate of Peoples
or the Trust, (b) any Exchange Capital Securities to be received by it are being
acquired in the ordinary course of its business, (c) it has no arrangement or
understanding with any person to participate in a distribution (within the
meaning of the Securities Act) of the Exchange Capital Securities and (d) if
such holder is not a broker-dealer, the holder is not engaged in, and does not
intend to engage in, a distribution (within the meaning of the Securities Act)
of those Exchange Capital Securities. The Letter of Transmittal contains the
foregoing representations. In addition, Peoples and the Trust may require a
holder of Original Capital Securities, as a condition to that holder's
eligibility to participate in this exchange offer, to furnish to Peoples and the
Trust (or an agent thereof) in writing information as to the number of
"beneficial owners" (within the meaning of Rule 13d-3 under the Exchange Act) on
behalf of whom the holder holds the Original Capital Securities to be exchanged
in the exchange offer. Each Participating Broker-Dealer will be deemed to have
acknowledged by execution of the Letter of Transmittal or delivery of an Agent's
Message that it acquired the Original Capital Securities for its own account as
the result of market-making activities or other trading activities and must
agree that it will deliver a prospectus meeting the requirements of the
Securities Act in connection with any resale of such Exchange Capital
Securities. The Letter of Transmittal states that by so acknowledging and by
delivering a prospectus, a Participating Broker-Dealer will not be deemed to
admit that it is a "underwriter" within the meaning of the Securities Act. Based
on the position taken by the staff of the Division of Corporation Finance of the
SEC in the interpretive letters referred to above, Peoples and the Trust believe
that Participating Broker-Dealers who acquired Original Capital Securities for
their own accounts as a result of market-making activities or other trading
activities may fulfill their prospectus delivery requirements with respect to
the Exchange Capital Securities received upon exchange of Original Capital
Securities (other than Original Capital Securities which represent an unsold
allotment from the original sale of Original Capital Securities) with a
prospectus meeting the requirements of the Securities Act, which may be the
prospectus prepared for an exchange offer so long as it contains a description
of the plan of distribution with respect to the resale of those Exchange Capital
Securities. Accordingly, this Prospectus, as it may be amended or supplemented
from time to time, may be used by a Participating Broker-Dealer during the
period referred to below in connection with resales of Exchange Capital
Securities received in exchange for Original Capital Securities where the
Original Capital Securities were acquired by such Participating Broker-Dealer
for its own account as a result of market-making or other trading activities.
Subject to the terms of the Registration Rights Agreement, Peoples and the Trust
have agreed that this Prospectus, as it may be amended or supplemented from time
to time, may be used by a Participating Broker-Dealer in connection with resales
of Exchange Capital Securities for a period ending 90 days after the expiration
date (subject to extension under limited circumstances described below) or, if
earlier, when all Exchange Capital Securities have been disposed of by the
Participating Broker-Dealer. See "Plan of distribution." However, a
Participating Broker-Dealer who intends to use this Prospectus in connection
with the resale of Exchange Capital Securities received in exchange for Original
Capital Securities pursuant to the exchange offer must notify Peoples and the
Trust, or cause Peoples and the Trust to be notified, on or prior to the
expiration date, that it is a Participating Broker-Dealer. Such notice may be
given in the space provided for that purpose in the Letter of Transmittal or may
be delivered to the exchange agent at one of the addresses given under
"3/4Exchange agent." Any person, including any Participating Broker-Dealer, who
is an affiliate of Peoples or the Trust may not rely on such interpretive
letters and must comply with the registration and prospectus delivery
requirements of the Securities Act in connection with any resale transaction.
In that regard, each Participating Broker-Dealer who surrenders
Original Capital Securities pursuant to the exchange offer will be deemed to
have agreed, by execution of the Letter of Transmittal or delivery of an Agent's
Message in lieu thereof, that, upon receipt of notice from Peoples or the Trust
of the occurrence of any event or the discovery of any fact which makes any
statement contained or incorporated by reference in this Prospectus untrue in
any material respect or which causes this Prospectus to omit to state a material
fact necessary in order to make the statements contained or incorporated by
reference herein, in light of the circumstances under which they were made, not
misleading or of the occurrence of the other events specified in the
Registration Rights Agreement, that Participating Broker-Dealer will suspend the
sale of Exchange Capital Securities (or the Exchange Guarantee or the Exchange
Junior Subordinated Debentures, as applicable) pursuant to this Prospectus until
Peoples or the Trust has amended or supplemented this Prospectus to correct the
misstatement or omission and has furnished copies of the amended or supplemented
Prospectus to that Participating Broker-Dealer or Peoples and the Trust have
given notice that the sale of the Exchange Capital Securities (or the Exchange
Guarantee or the Exchange Junior Subordinated Debentures, as applicable) may be
resumed, as the case may be. If Peoples or the Trust gives notice to suspend the
sale of the Exchange Capital Securities (or the Exchange Guarantee or the
Exchange Junior Subordinated Debentures, as applicable), that notice will extend
the 90-day period referred to above during which Participating Broker-Dealers
are entitled to use this Prospectus in connection with the resale of Exchange
Capital Securities by the number of days during the period from and including
the date of the giving of the notice to and including the date when
Participating Broker-Dealers have received copies of the amended or supplemented
Prospectus necessary to permit resales of the Exchange Capital Securities or to
and including the date on which Peoples and the Trust have given notice that the
sale of Exchange Capital Securities (or the Exchange Guarantee or the Exchange
Junior Subordinated Debentures, as applicable) may be resumed.
Withdrawal rights
Except as otherwise provided in this Prospectus, tenders of Original
Capital Securities may be withdrawn at any time on or prior to the expiration
date. In order for a withdrawal to be effective, a written or facsimile
transmission of the notice of withdrawal must be timely received by the exchange
agent at one of its addresses given under "3/4Exchange agent" on or prior to the
expiration date. Any notice of withdrawal must specify the name of the person
who tendered the Original Capital Securities to be withdrawn, the aggregate
principal amount of Original Capital Securities to be withdrawn, and (if a
certificate for Original Capital Securities has been tendered) the name of the
registered holder of the Original Capital Securities as set forth on the
Original Capital Securities, if different from that of the person who tendered
such Original Capital Securities. If Original Capital Securities have been
delivered or otherwise identified to the exchange agent, then prior to the
physical release of those withdrawn Original Capital Securities, the tendering
holder must submit the certificate numbers shown on the particular Original
Capital Securities to be withdrawn and the signature on the notice of withdrawal
must be guaranteed by an Eligible Institution, except in the case of Original
Capital Securities tendered for the account of an Eligible Institution. If
Original Capital Securities have been tendered pursuant to the procedures for
book-entry transfer set forth in "3/4Procedures for tendering Original Capital
Securities," the notice of withdrawal must specify the name and number of the
account at DTC to be credited with the withdrawal of Original Capital
Securities, in which case a notice of withdrawal will be effective if delivered
to the exchange agent by written or facsimile transmission. Withdrawals of
tenders of Original Capital Securities may not be rescinded. Original Capital
Securities properly withdrawn will not be deemed validly tendered for purposes
of the exchange offer, but may be retendered at any subsequent time on or prior
to the expiration date by following any of the procedures described above under
"3/4Procedures for tendering Original Capital Securities."
All questions as to the validity, form and eligibility (including time
of receipt) of withdrawal notices will be determined by Peoples and the Trust,
in their sole discretion, whose determination will be final and binding on all
parties. None of Peoples, the Trust, any affiliates or assigns of Peoples or the
Trust, the exchange agent or any other person will be under any duty to give any
notification of any irregularities in any notice of withdrawal or incur any
liability for failure to give any notification. Any Original Capital Securities
which have been tendered but which are withdrawn will be returned to the holder
thereof promptly after withdrawal.
Distributions on Exchange Capital Securities
Holders of Original Capital Securities as of the applicable record date
will be entitled to receive distributions payable semi-annually in arrears on
May 1 and November 1 of each year, commencing November 1, 1999. Those
distributions will accumulate from the later of the most recent distribution
payment date to which distributions have been duly paid or duly provided for
with respect to the Exchange Capital Securities or the Original Capital
Securities which were exchanged for such Exchange Capital Securities, or from
April 20, 1999, the date of the original issuance of the Original Capital
Securities.
Conditions to the exchange offer
Notwithstanding any other provisions of the exchange offer, or any
extension of the exchange offer, Peoples and the Trust will not be required to
accept for exchange, or to exchange, any Original Capital Securities for any
Exchange Capital Securities, and, as described below, may terminate the exchange
offer (whether or not any Original Capital Securities have been accepted for
exchange) or may waive any conditions to or amend the exchange offer, if any of
the following conditions have occurred or exist:
o There has been a change in the current interpretation by the staff of the
SEC which permits the Exchange Capital Securities issued pursuant to the
exchange offer in exchange for Original Capital Securities to be offered
for resale, resold and otherwise transferred by holders thereof (other than
broker-dealers and any holder which is an affiliate of Peoples or the
Trust) without compliance with the registration and prospectus delivery
provisions of the Securities Act, provided that the Exchange Capital
Securities are acquired in the ordinary course of the holders' business and
the holders have no arrangement or understanding with any person to
participate in the distribution of the Exchange Capital Securities;
o Any law, statute, rule or regulation has been adopted or enacted which, in
the judgment of Peoples or the Trust, would reasonably be expected to
impair its ability to proceed with the exchange offer;
o Any action or proceeding has been instituted or threatened in any court or
by or before any governmental agency or body with respect to the exchange
offer which, in Peoples' and the Trust's judgment, would reasonably be
expected to impair the ability of Peoples or the Trust to proceed with the
exchange offer;
o A banking moratorium has been declared by United States federal or Ohio or
New York state authorities which, in Peoples' and the Trust's judgment,
would reasonably be expected to impair the ability of the Peoples or the
Trust to proceed with the exchange offer;
o Trading on the New York Stock Exchange or generally in the United States
over-the-counter market has been suspended by order of the SEC or any other
governmental authority which, in Peoples' and the Trust's judgment, would
reasonably be expected to impair the ability of the Peoples or the Trust to
proceed with the exchange offer; or
o A stop order has been issued by the SEC or any state securities authority
suspending the effectiveness of the Registration Statement or proceedings
have been initiated or, to the knowledge of Peoples or the Trust,
threatened for that purpose, or any governmental approval which either
Peoples or the Trust, in its sole discretion, deems necessary for the
consummation of the exchange offer as contemplated in this Prospectus has
not been obtained.
If Peoples and the Trust determine in their sole and absolute
discretion that any of the foregoing events or conditions has occurred or
exists, Peoples and the Trust may, subject to applicable law, terminate the
exchange offer (whether or not any Original Capital Securities have been
accepted for exchange) or may waive any condition or otherwise amend the terms
of the exchange offer in any respect. If that waiver or amendment constitutes a
material change to the exchange offer, Peoples and the Trust will promptly
disclose that waiver or amendment by means of a prospectus supplement which will
be distributed to the registered holders of the Original Capital Securities and
will extend the exchange offer to the extent required by Rule 14e-1 under the
Exchange Act.
Exchange agent
Wilmington Trust Company has been appointed as exchange agent for the
exchange offer. Delivery of the Letters of Transmittal and any other required
documents, questions, requests for assistance, and requests for additional
copies of this Prospectus or of the Letter of Transmittal should be directed to
the exchange agent as follows:
By Registered or By Hand or
Certified Mail Overnight Delivery
---------------- ------------------
Wilmington Trust Company Wilmington Trust Company
1100 North Market Street 1105 North Market Street
Wilmington, DE 19890-0001 Wilmington, DE 19890-0001
Attn: Kristin Long, Attn: Kristin Long,
Trust Operations Trust Operations
Confirm by telephone or for
information call:
(302) 651-1562
Facsimile Transmission
(Eligible Institutions Only):
(302) 651-1079
Delivery to other than the above addresses or facsimile number will not
constitute a valid delivery.
Fees and expenses
Peoples has agreed to pay the exchange agent reasonable and customary
fees for its services and will reimburse it for its reasonable out-of-pocket
expenses in connection therewith. Peoples will also pay brokerage houses and
other custodians, nominees and fiduciaries the reasonable out-of-pocket expenses
incurred by them in forwarding copies of this Prospectus and related documents
to the beneficial owners of Original Capital Securities, and in handling or
tendering for their customers.
Holders who tender their Original Capital Securities for exchange will
not be obligated to pay any transfer taxes in connection therewith. If, however,
Exchange Capital Securities are to be delivered to, or are to be issued in the
name of, any person other than the registered holder of the Original Capital
Securities tendered, or if a transfer tax is imposed for any reason other than
the exchange of Original Capital Securities in connection with the exchange
offer, then the amount of any such transfer taxes (whether imposed on the
registered holder or any other person) will be payable by the tendering holder.
If satisfactory evidence of payment of those taxes or exemption therefrom is not
submitted with the Letter of Transmittal, the amount of those transfer taxes
will be billed directly to the tendering holder.
Neither Peoples nor the Trust will make any payment to brokers, dealers
or other nominees soliciting acceptances of the exchange offer.
Description of Exchange Securities; Comparison to Original Securities
The terms of the Exchange Securities are identical in all material
respects to the terms of the Original Securities, except that (a) the Original
Securities have not been registered under the Securities Act, are subject to
restrictions on transfer under federal and state securities laws and are
entitled to specified rights under the Registration Rights Agreement (which
rights will terminate upon consummation of the exchange offer); (b) the Exchange
Capital Securities will not contain the same restrictions on transfer as the
Original Capital Securities; (c) the Exchange Capital Securities will not
provide for any increase in the distribution rate thereon; and (d) the Exchange
Junior Subordinated Debentures will not provide for any increase in the interest
rate thereon. The Exchange Securities are not, and upon consummation of the
exchange offer the Original Securities will not be, entitled to any additional
interest or distributions. Accordingly, holders of Original Capital Securities
should review the information set forth under "Risk factors3/4Consequences of a
failure to exchange Original Capital Securities."
Description of Capital Securities
The Original Capital Securities represent and the Exchange Capital
Securities will represent beneficial interests in the Trust, and the holders
thereof will be entitled to a preference over the Common Securities in certain
circumstances with respect to distributions and amounts payable on redemption of
the Trust Securities or liquidation of the Trust. See "3/4Subordination of
Common Securities." Upon consummation of the exchange offer, the Trust Agreement
will be subject to and governed by the Trust Indenture Act of 1939. This summary
of selected provisions of the Capital Securities, the Common Securities and the
Trust Agreement does not purport to be complete and is subject to, and is
qualified in its entirety by reference to, all the provisions of the Trust
Agreement, including the definitions therein of selected terms.
General
The Capital Securities (including the Original Capital Securities and
the Exchange Capital Securities) are limited to $30,000,000 aggregate
liquidation amount at any one time outstanding. The Capital Securities rank pari
passu with the Common Securities, and payments will be made pro rata thereon,
with the Common Securities, except as described under "3/4Subordination of
Common Securities." Legal title to the Junior Subordinated Debentures will be
held by the Property Trustee in trust for the benefit of the holders of the
Capital Securities. The Guarantee will not guarantee payment of distributions or
amounts payable on redemption of the Capital Securities or liquidation of the
Trust when the Trust does not have funds on hand legally available for such
payments. See "Description of Guarantee."
Distributions
Distributions on the Capital Securities will be cumulative, will
accumulate from April 20, 1999 and will be payable semi-annually in arrears on
May 1 and November 1 of each year, commencing November 1, 1999, at the annual
rate of 8.62% of the liquidation amount to the holders of the Capital Securities
on the relevant record dates. The record dates will be the 15th day of the month
immediately preceding the month in which the relevant payment occurs. The amount
of distributions payable for any period will be computed on the basis of a
360-day year of twelve 30-day months and, for any period of less than a full
calendar month, the number of days elapsed in such month. If any date on which
distributions are payable on the Capital Securities is not a Business Day (as
defined below), payment of the distributions payable on that date will be made
on the next succeeding day that is a Business Day (and without any interest or
other payment in respect of any delay), with the same force and effect as if
made on the original scheduled distribution date (each date on which
distributions are payable in accordance with the foregoing, a "Distribution
Date"). A "Business Day" means any day other than a Saturday or a Sunday or a
day on which banking institutions in New York, New York, Wilmington, Delaware or
Marietta, Ohio are authorized or required by law or executive order to remain
closed.
So long as no Debenture Event of Default has occurred and is
continuing, Peoples will have the right under the Indenture to elect to defer
the payment of interest on the Junior Subordinated Debentures, at any time or
from time to time, for a period not exceeding ten consecutive semi-annual
periods with respect to each extension period ("Extension Period"), provided
that no Extension Period will end on a date other than an Interest Payment Date
(as defined under "Description of Junior Subordinated Debentures3/4General"), or
extend beyond May 1, 2029. Upon any election, semi-annual distributions on the
Capital Securities will be deferred by the Trust during the Extension Period.
Distributions to which holders of the Capital Securities are entitled during any
Extension Period will accumulate additional distributions thereon at the rate
per annum of 8.62% thereof, compounded semi-annually from the relevant
Distribution Date, to the extent permitted by applicable law. The term
"distributions," as used in this Prospectus, will include any additional
distributions.
Prior to the termination of any Extension Period, Peoples may further
extend the Extension Period, provided the extension does not cause the Extension
Period to exceed ten consecutive semi-annual periods, to end on a date other
than an Interest Payment Date or to extend beyond May 1, 2029. Upon the
termination of any Extension Period and the payment of all amounts then due on
any Interest Payment Date, Peoples may elect to begin a new Extension Period,
subject to the above requirements. No interest will be due and payable during an
Extension Period, except at the end thereof. Peoples must give the Property
Trustee, the Administrative Trustees and the Debenture Trustee notice of its
election of an Extension Period (or an extension thereof) at least five Business
Days prior to the earlier of: (1) the date the distributions on the Capital
Securities would have been payable except for the election to begin the
Extension Period; and (2) the date the Administrative Trustees are required to
give notice to any securities exchange or automated quotation system or to
holders of Capital Securities of the record date or the date distributions are
payable, but in any event not less than five Business Days prior to the record
date. There is no limitation on the number of times that Peoples may elect to
begin an Extension Period. See "Description of Junior Subordinated
Debentures3/4Option to extend Interest Payment Date" and "Certain federal income
tax consequences3/4Interest income and original issue discount."
During any Extension Period, Peoples may not: (a) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of Peoples' capital stock; (b) make any
payment of principal of or premium, if any, on or repay, repurchase or redeem
any debt securities of Peoples (including any other junior subordinated
debentures to be issued by Peoples) that rank pari passu with or junior in right
of payment to the Junior Subordinated Debentures; or (c) make any guarantee
payments with respect to any guarantee by Peoples of the debt securities of any
subsidiary of Peoples (including all other guarantees to be issued by Peoples)
if such guarantee ranks pari passu with or junior in right of payment to the
Junior Subordinated Debentures (other than (1) dividends or distributions in
common shares of Peoples, or options, warrants or rights to subscribe for or
purchase common shares of Peoples, (2) any declaration of a dividend in
connection with the implementation of a shareholder rights plan, or the issuance
of shares under any shareholder rights plan in the future, or the redemption or
repurchase of any rights pursuant to a shareholder rights plan, (3) payments
under the Guarantee, (4) as a result of a reclassification of Peoples' capital
stock or the exchange or conversion of one class or series of Peoples' capital
stock for another class or series of Peoples' capital stock, (5) the purchase of
fractional interests in shares of Peoples' capital stock pursuant to the
conversion or exchange provisions of that capital stock or the security being
converted or exchanged or pursuant to a merger, consolidation or other business
combination, and (6) purchases of common shares related to the issuance of
common shares or rights under any of Peoples' benefit plans for directors,
officers or employees of Peoples and its subsidiaries or Peoples' dividend
reinvestment plan). Peoples has no current intention to exercise its option to
defer payments of interest on the Junior Subordinated Debentures.
The revenue of the Trust available for distribution to holders of the
Capital Securities will be limited to payments under the Junior Subordinated
Debentures in which the Trust invested the proceeds from the issuance and sale
of the Capital Securities. See "Description of Junior Subordinated
Debentures3/4General." If Peoples does not make interest payments on the Junior
Subordinated Debentures, the Property Trustee will not have funds available to
pay distributions on the Capital Securities. The payment of distributions (if
and to the extent the Trust has funds on hand legally available for the payment
of such distributions) is guaranteed by Peoples on a limited basis as described
under "Description of Guarantee."
Redemption
Upon the repayment on May 1, 2029 or prepayment, in whole or in part,
prior to May 1, 2029 of the Junior Subordinated Debentures (other than following
the distribution of the Junior Subordinated Debentures to the holders of the
Trust Securities), the proceeds from the repayment or prepayment will be applied
by the Property Trustee (subject to the Property Trustee having received written
notice no later than 45 days prior to that repayment) to redeem a Like Amount
(as defined below) of the Trust Securities, upon not less than 30 nor more than
60 days' notice of a date of redemption (the "Redemption Date"), at the
applicable Redemption Price, which will be equal to: (a) in the case of the
repayment of the Junior Subordinated Debentures on May 1, 2029, the Maturity
Redemption Price (equal to the principal of, and accrued and unpaid interest on,
the Junior Subordinated Debentures); (b) in the case of the optional prepayment
of the Junior Subordinated Debentures before May 1, 2009 upon the occurrence and
continuation of a Special Event, the Special Event Redemption Price; and (c) in
the case of the optional prepayment of the Junior Subordinated Debentures on or
after May 1, 2029, the Optional Redemption Price. See "Description of Junior
Subordinated Debentures3/4Optional prepayment," and "3/4Special event
prepayment." If less than all of the Junior Subordinated Debentures are to be
prepaid on a Redemption Date, the Junior Subordinated Debentures to be prepaid
will be selected by the method which the Debenture Trustee deems fair and
appropriate.
"Like Amount" means: (a) with respect to a redemption of the Trust
Securities, Trust Securities having a liquidation amount equal to the principal
amount of Junior Subordinated Debentures to be paid in accordance with their
terms; and (b) with respect to a distribution of Junior Subordinated Debentures
upon the liquidation of the Trust, Junior Subordinated Debentures having a
principal amount equal to the liquidation amount of the Trust Securities of the
holder to whom the Junior Subordinated Debentures are distributed.
Peoples has the option to prepay the Junior Subordinated Debentures:
(a) in whole or in part, on or after May 1, 2009, at the applicable Optional
Prepayment Price; and (b) in whole but not in part, at any time prior to May 1,
2009, upon the occurrence of a Special Event, at the Special Event Prepayment
Price, in each case subject to the receipt of any required regulatory approval.
See "Description of Junior Subordinated Debentures3/4Optional prepayment," and
"3/4Special event prepayment."
Liquidation of the Trust and distribution of Junior Subordinated Debentures
Peoples has the right at any time to dissolve the Trust and, after
satisfaction of liabilities to creditors of the Trust as required by applicable
law, to cause the Junior Subordinated Debentures to be distributed to the
holders of the Trust Securities in liquidation of the Trust. This right is
subject to: (a) Peoples having received an opinion of counsel to the effect that
the distribution will not be a taxable event to holders of Capital Securities;
and (b) receipt of any required regulatory approval.
The Trust will automatically dissolve upon the first to occur of: (a)
specified events of bankruptcy, dissolution or liquidation of Peoples; (b) the
distribution of a Like Amount of the Junior Subordinated Debentures to the
holders of the Trust Securities, if Peoples, as sponsor, has given written
direction to the Property Trustee to dissolve the Trust (which direction is
optional and, except as described above, wholly within the discretion of
Peoples, as sponsor); (c) redemption of all of the Trust Securities as described
under "3/4Redemption;" (d) expiration of the term of the Trust; and (e) the
entry of an order for the dissolution of the Trust by a court of competent
jurisdiction.
If a dissolution occurs as described in clauses (a), (b), (c), or (d)
above, the Trust will be liquidated by the Issuer Trustees as expeditiously as
the Issuer Trustees determine to be possible by distributing, after satisfaction
of liabilities to creditors of the Trust as provided by applicable law, to the
holders of the Capital Securities a Like Amount of the Junior Subordinated
Debentures, unless that distribution is determined by the Property Trustee not
to be practicable, in which event the holders will be entitled to receive out of
the assets of the Trust legally available for distribution to holders, after
satisfaction of liabilities to creditors of the Trust as provided by applicable
law, an amount equal to the aggregate of the liquidation amount plus accumulated
and unpaid distributions thereon to the date of payment (this amount being the
"Liquidation Distribution"). If the Liquidation Distribution can be paid only in
part because the Trust has insufficient assets on hand legally available to pay
in full the aggregate Liquidation Distribution, then the amounts payable
directly by the Trust on the Capital Securities will be paid on a pro rata
basis, except that if a Debenture Event of Default has occurred and is
continuing, the Capital Securities will have a priority over the Common
Securities. See "3/4Subordination of Common Securities."
If Peoples elects not to prepay the Junior Subordinated Debentures
prior to maturity in accordance with their terms and either elects not to or is
unable to liquidate the Trust and distribute the Junior Subordinated Debentures
to holders of the Capital Securities, the Capital Securities will remain
outstanding until the repayment of the Junior Subordinated Debentures on May 1,
2029.
After the liquidation date is fixed for any distribution of Junior
Subordinated Debentures to holders of the Capital Securities: (a) the Capital
Securities will no longer be deemed to be outstanding; (b) DTC or its nominee
will receive, in respect of each registered global certificate, if any,
representing Capital Securities held by it, a registered global certificate or
certificates representing the Junior Subordinated Debentures to be delivered
upon the distribution; and (c) any certificates representing Capital Securities
not held by DTC or its nominee will be deemed to represent Junior Subordinated
Debentures having a principal amount equal to the liquidation amount of the
Capital Securities, and bearing accrued and unpaid interest in an amount equal
to the accumulated and unpaid distributions on the Capital Securities until the
certificates are presented to the Administrative Trustees or their agent for
cancellation, whereupon Peoples will issue to the holder, and the Debenture
Trustee will authenticate, a certificate representing the Junior Subordinated
Debentures.
There can be no assurance as to the market prices for the Capital
Securities or the Junior Subordinated Debentures that may be distributed in
exchange for the Capital Securities if a dissolution and liquidation of the
Trust were to occur. Accordingly, the Capital Securities that an investor may
purchase, or the Junior Subordinated Debentures that the investor may receive on
dissolution and liquidation of the Trust, may trade at a discount to the price
that the investor paid to purchase the Capital Securities offered in the
exchange offer.
Redemption procedures
If applicable, Capital Securities will be redeemed at the applicable
Redemption Price with the proceeds from the contemporaneous repayment or
prepayment of the Junior Subordinated Debentures. Any redemption of Capital
Securities will be made and the applicable Redemption Price will be payable on
the Redemption Date only to the extent that the Trust has funds legally
available for the payment of the applicable Redemption Price. See also
"3/4Subordination of Common Securities."
If the Trust gives a notice of redemption in respect of the Capital
Securities, then, by 12:00 noon, New York City time, on the Redemption Date, to
the extent funds are legally available, with respect to the Capital Securities
held by DTC or its nominees, the Property Trustee will deposit or cause the
Paying Agent (as defined in "3/4Payment and Paying Agent") to deposit
irrevocably with DTC funds sufficient to pay the applicable Redemption Price.
With respect to the Capital Securities held in certificated form, the Property
Trustee, to the extent funds are legally available, will irrevocably deposit
with the Paying Agent for the Capital Securities funds sufficient to pay the
applicable Redemption Price and will give the Paying Agent irrevocable
instructions and authority to pay the applicable Redemption Price to the holders
thereof upon surrender of their certificates evidencing the Capital Securities.
See "Payment and Paying Agent." Notwithstanding the foregoing, distributions
payable on or prior to the Redemption Date will be payable to the holders of
Capital Securities on the relevant record dates for the related Distribution
Dates. If notice of redemption has been given and funds deposited as required,
then upon the date of deposit, all rights of the holders of the Capital
Securities called for redemption will cease, except the right of the holders of
Capital Securities to receive the applicable Redemption Price, but without
interest on that Redemption Price, and those Capital Securities will cease to be
outstanding. In the event that any Redemption Date of Capital Securities is not
a Business Day, then the applicable Redemption Price payable on that date will
be paid on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any delay). In the event that payment of
the applicable Redemption Price is improperly withheld or refused and not paid
either by the Trust or by Peoples pursuant to the Guarantee as described under
"Description of Guarantee": (a) distributions on Capital Securities will
continue to accumulate at the then applicable rate, from the Redemption Date
originally established by the Trust to the date the applicable Redemption Price
is actually paid; and (b) the actual payment date will be the Redemption Date
for purposes of calculating the applicable Redemption Price.
Notice of any redemption will be mailed at least 30 days but not more
than 60 days prior to the Redemption Date to each holder of Capital Securities
at its registered address. Unless the Trust defaults in payment of the
applicable Redemption Price on the Trust Securities, or Peoples defaults in the
repayment of the Junior Subordinated Debentures, on and after the Redemption
Date, distributions will cease to accrue on the Capital Securities called for
redemption.
Subject to applicable law (including, without limitation, federal
securities laws), Peoples or its subsidiaries may at any time and from time to
time purchase outstanding Capital Securities by tender, in the open market or by
private agreement.
Subordination of Common Securities
Payment of distributions on, and the Redemption Price of, the Capital
Securities, as applicable will be made pro rata based on the liquidation amount
of the Capital Securities; provided, however, that if on any Distribution Date
or Redemption Date a Debenture Event of Default has occurred and is continuing,
no payment of any distribution on, or applicable Redemption Price of, any of the
Common Securities, and no other payment on account of the redemption,
liquidation or other acquisition of the Common Securities, will be made unless a
cash payment in full of all accumulated and unpaid distributions on all of the
outstanding Capital Securities for all distribution periods terminating on or
prior thereto, or in the case of payment of the applicable Redemption Price the
full amount of such Redemption Price, has been made or provided for, and all
funds available to the Property Trustee will first be applied to the payment in
full in cash of all distributions on, or Redemption Price of, the Capital
Securities then due and payable.
In the case of any Event of Default, Peoples as holder of the Common
Securities will be deemed to have waived any right to act with respect to the
Event of Default until the effect of the Event of Default has been cured, waived
or otherwise eliminated. Until an Event of Default has been so cured, waived or
otherwise eliminated, the Property Trustee will act solely on behalf of the
holders of the Capital Securities and not on behalf of Peoples as holder of the
Common Securities, and only the holders of the Capital Securities will have the
right to direct the Property Trustee to act on their behalf.
Events of Default; Notice
The occurrence of a Debenture Event of Default constitutes an "Event of
Default" under the Trust Agreement. See "Description of Junior Subordinated
Debentures-Debenture Events of Default."
Within ten Business Days after the occurrence of any Event of Default
actually known to the Property Trustee, the Property Trustee will transmit
notice of the Event of Default to the holders of the Capital Securities, the
Administrative Trustees and Peoples, as sponsor, unless the Event of Default has
been cured or waived. Peoples, as sponsor, and the Administrative Trustees are
required to file annually with the Property Trustee a certificate as to whether
or not they are in compliance with all the conditions and covenants applicable
to them under the Trust Agreement.
If a Debenture Event of Default has occurred and is continuing, the
Capital Securities will have a preference over the Common Securities as
described under "Liquidation of the Trust and distribution of Junior
Subordinated Debentures" and "Subordination of Common Securities."
Removal of Issuer Trustees
Unless a Debenture Event of Default has occurred and is continuing, any
Issuer Trustee may be removed at any time by the holder of the Common
Securities. If a Debenture Event of Default has occurred and is continuing, the
Property Trustee and the Delaware Trustee may be removed at that time by the
holders of a majority in liquidation amount of the outstanding Capital
Securities. In no event will the holders of the Capital Securities have the
right to vote to appoint, remove or replace the Administrative Trustees. Those
voting rights are vested exclusively in Peoples as the holder of the Common
Securities. No resignation or removal of an Issuer Trustee and no appointment of
a successor trustee will be effective until the acceptance of appointment by the
successor trustee in accordance with the provisions of the Trust Agreement.
Merger, consolidation or conversion of Issuer Trustees
Any person into which the Property Trustee, the Delaware Trustee or any
Administrative Trustee that is not a natural person may be merged or converted
or with which it may be consolidated, or any person resulting from any merger,
conversion or consolidation to which an Issuer Trustee is a party, or any person
succeeding to all or substantially all the corporate trust business of an Issuer
Trustee, will be the successor of the Issuer Trustee under the Trust Agreement,
provided that person is otherwise qualified and eligible.
Mergers, consolidations, conversions, amalgamations or replacements of the Trust
The Trust may not merge with or into, convert into, consolidate,
amalgamate or be replaced by, or convey, transfer or lease its properties and
assets as an entirety or substantially as an entirety to any corporation or
other person, except as described below or as otherwise described under
"3/4Liquidation of the Trust and distribution of Junior Subordinated
Debentures." The Trust may, at the request of Peoples, as sponsor, with the
consent of the Administrative Trustees, but without the consent of the holders
of the Capital Securities, merge with or into, convert into, consolidate,
amalgamate or be replaced by or convey, transfer or lease its properties and
assets as an entirety or substantially as an entirety to a trust organized as
such under the laws of any State; provided, that: (a) the successor entity
either (1) expressly assumes all of the obligations of the Trust with respect to
the Trust Securities or (2) substitutes for the Trust Securities other
securities having substantially the same terms as the Trust Securities (the
"Successor Securities") so long as the Successor Securities rank the same as the
Trust Securities rank in priority with respect to distributions and payments
upon liquidation, redemption and otherwise; (b) Peoples expressly appoints a
trustee of the successor entity possessing the same powers and duties as the
Property Trustee with respect to the Junior Subordinated Debentures; (c) the
Successor Securities are listed, or any Successor Securities will be listed upon
notification of issuance, on any national securities exchange or other
organization on which the Trust Securities are then listed or quoted, if any;
(d) if the Capital Securities (including any Successor Securities) are rated by
any nationally recognized statistical rating organization prior to the
transaction, the merger, conversion, consolidation, amalgamation, replacement,
conveyance, transfer or lease does not cause the Capital Securities (including
any Successor Securities) or, if the Junior Subordinated Debentures are so
rated, the Junior Subordinated Debentures, to be downgraded by any nationally
recognized statistical rating organization; (e) the merger, conversion,
consolidation, amalgamation, replacement, conveyance, transfer or lease does not
adversely affect the rights, preferences and privileges of the holders of the
Trust Securities (including any Successor Securities) in any material respect;
(f) the successor entity has a purpose substantially identical to that of the
Trust; (g) prior to the merger, conversion, consolidation, amalgamation,
replacement, conveyance, transfer or lease, Peoples has received an opinion from
independent counsel to the Trust experienced in those matters to the effect that
(1) the merger, conversion, consolidation, amalgamation, replacement,
conveyance, transfer or lease does not adversely affect the rights, preferences
and privileges of the holders of the Trust Securities (including any Successor
Securities) in any material respect (other than any dilution of the holders'
interests in the new entity), and (2) following the merger, conversion,
consolidation, amalgamation, replacement, conveyance, transfer or lease, neither
the Trust nor the successor entity will be required to register as an investment
company under the Investment Company Act; and (h) Peoples or any permitted
successor or assignee owns all of the common securities of the successor entity
and guarantees the obligations of the successor entity under the Successor
Securities at least to the extent provided by the Guarantee and the Common
Guarantee. Notwithstanding the foregoing, the Trust will not, except with the
consent of holders of 100% in liquidation amount of the Trust Securities,
consolidate, amalgamate, merge with or into, convert into or be replaced by or
convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to, any other entity or permit any other entity to
consolidate, amalgamate, merge with or into, convert into or replace it if that
consolidation, amalgamation, merger, conversion, replacement, conveyance,
transfer or lease would cause the Trust or the successor entity not to be
classified as a grantor trust for United States federal income tax purposes.
Voting rights; Amendment of the Trust Agreement
Except as provided below and under "Mergers, consolidations,
conversions, amalgamations or replacements of the Trust" and "Description of
Guarantee Amendments and assignment" and as otherwise required by law and the
Trust Agreement, the holders of the Capital Securities will have no voting
rights.
The Trust Agreement may be amended from time to time by Peoples, the
Property Trustee and the Administrative Trustees, without the consent of the
holders of the Trust Securities to: (a) cure any ambiguity, correct or
supplement any provisions in the Trust Agreement that may be inconsistent with
any other provision, or make any other provisions with respect to matters or
questions arising under the Trust Agreement, which will not be inconsistent with
the other provisions of the Trust Agreement; (b) modify, eliminate or add to any
provisions of the Trust Agreement as necessary to ensure that the Trust will be
classified for United States federal income tax purposes as a grantor trust at
all times that any Capital Securities are outstanding or to ensure that the
Trust will not be required to register as an "investment company" under the
Investment Company Act; or (c) modify, eliminate or add any provisions of the
Trust Agreement as necessary to enable Peoples or the Trust to conduct an
exchange offer in a manner contemplated by the Registration Rights Agreement;
provided, however, that in the case of clauses (a) and (c), the action will not
adversely affect in any material respect the interests of the holders of the
Capital Securities. Any amendments of the Trust Agreement pursuant to the
foregoing will become effective when notice thereof is given to the holders of
the Capital Securities. The Trust Agreement may be amended by the Issuer
Trustees and Peoples: (a) with the consent of holders representing a majority
(based upon liquidation amount) of the outstanding Capital Securities; and (b)
upon receipt by the Issuer Trustees of an opinion of counsel experienced in
those matters to the effect that the amendment or the exercise of any power
granted to the Issuer Trustees in accordance with the amendment will not affect
the Trust's status as a grantor trust for United States federal income tax
purposes or the Trust's exemption from status as an "investment company" under
the Investment Company Act, provided that, without the consent of each holder of
Capital Securities, the Trust Agreement may not be amended to: (1) change the
amount or timing of any distribution on the Trust Securities or otherwise
adversely affect the amount of any distribution required to be made in respect
of the Trust Securities as of a specified date; or (2) restrict the right of a
holder of Capital Securities to institute suit for the enforcement of any
payment on or after such date.
So long as any Junior Subordinated Debentures are held by the Property
Trustee, the Issuer Trustees will not: (a) direct the time, method and place of
conducting any proceeding for any remedy available to the Debenture Trustee, or
execute any trust or power conferred on the Debenture Trustee with respect to
the Junior Subordinated Debentures; (b) waive specified past defaults under the
Indenture; (c) exercise any right to rescind or annul a declaration of
acceleration of the maturity of the principal of the Junior Subordinated
Debentures; or (d) consent to any amendment, modification or termination of the
Indenture or the Junior Subordinated Debentures, where that consent is required,
without, in each case, obtaining the prior approval of the holders of a majority
in liquidation amount of all outstanding Capital Securities. However, where a
consent under the Indenture would require the consent of each holder of Junior
Subordinated Debentures affected thereby, no consent will be given by the
Property Trustee without the prior approval of each holder of the Capital
Securities. The Issuer Trustees will not revoke any action previously authorized
or approved by a vote of the holders of the Capital Securities, except by
subsequent vote of those holders. The Property Trustee will notify each holder
of Capital Securities of any notice of default with respect to the Junior
Subordinated Debentures. In addition to obtaining the foregoing approvals of
holders of the Capital Securities, prior to taking any of the foregoing actions,
the Issuer Trustees will obtain an opinion of counsel experienced in those
matters to the effect that the Trust will continue to qualify as a grantor
trust.
Any required approval of holders of Capital Securities may be given at
a meeting of those holders convened for such purpose or pursuant to written
consent. The Property Trustee will cause a notice of any meeting at which
holders of Capital Securities are entitled to vote, or of any matter upon which
action by written consent of holders has been taken, to be given to each holder
of record of Capital Securities in the manner described in the Trust Agreement.
No vote or consent of the holders of Capital Securities will be
required for the Trust to redeem and cancel the Capital Securities in accordance
with the Trust Agreement.
Notwithstanding that holders of the Capital Securities are entitled to
vote or consent under any of the circumstances described above, any of the
Capital Securities that are owned by Peoples, the Issuer Trustees or any
affiliate of Peoples or any Issuer Trustee, will, for purposes of such vote or
consent, be treated as if they were not outstanding.
Form, denomination, book-entry procedures and transfer
The Exchange Capital Securities may be issued in certificated form or
as one or more Capital Securities in registered, global form (collectively, the
"Global Capital Securities"). The Global Capital Securities will be deposited
upon issuance with the Property Trustee as custodian for DTC, in New York, New
York, and registered in the name of DTC or its nominee, in each case for credit
to an account of a direct or indirect participant in DTC as described below.
In the event that Capital Securities are issued in certificated form,
the Capital Securities will be issued in blocks having a liquidation amount of
not less than $100,000 (100 Capital Securities) and may be transferred or
exchanged only in such blocks in the manner and at the offices described below.
Except as described below, the Global Capital Securities may be
transferred, in whole and not in part, only to another nominee of DTC or to a
successor of DTC or its nominee and only in amounts that would not cause a
holder to own less than 100 Capital Securities. Beneficial interests in the
Global Capital Securities may not be exchanged for Capital Securities in
certificated form, except in the limited circumstances described below. See
"3/4Exchange of book-entry Capital Securities for certificated Capital
Securities."
Other Capital Securities may be issued only in registered, certificated
(i.e., non-global) form. These Capital Securities may not be exchanged for
beneficial interests in any Global Capital Securities, except in the limited
circumstances described below. See "3/4Exchange of certificated Capital
Securities for book-entry Capital Securities."
Transfer of beneficial interests in the Global Capital Securities will
be subject to the applicable rules and procedures of DTC and its direct or
indirect participants, which may change from time to time.
Depositary procedures
DTC has advised the Trust and Peoples that DTC is a limited-purpose
trust company organized under the laws of the State of New York, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the
Uniform Commercial Code and a "clearing agency" registered pursuant to the
provisions of Section 17A of the Exchange Act. DTC was created to hold
securities for its participating organizations (collectively, the
"Participants") and to facilitate the clearance and settlement of transactions
in those securities between Participants through electronic book-entry changes
in accounts of its Participants, thereby eliminating the need for physical
movement of certificates. Participants include securities brokers and dealers,
banks, trust companies, clearing corporations and similar organizations.
Indirect access to DTC's system is also available to other entities such as
banks, brokers, dealers and trust companies that clear through or maintain a
custodial relationship with a Participant, either directly or indirectly
(collectively, the "Indirect Participants"). Persons who are not Participants
may beneficially own securities held by or on behalf of DTC only through the
Participants or the Indirect Participants. The ownership interest and transfer
of ownership interest of each actual purchaser of each security held by or on
behalf of DTC are recorded on the records of the Participants and Indirect
Participants.
DTC has also advised the Trust and Peoples that, pursuant to procedures
established by it, (a) upon deposit of the Global Capital Securities, DTC will
credit the accounts of Participants exchanging Original Capital Securities
represented by Global Capital Securities with portions of the liquidation amount
of the Global Capital Securities and (b) ownership of those interests in the
Global Capital Securities will be shown on, and the transfer of ownership
thereof will be effected only through, records maintained by DTC (with respect
to the Participants) or by the Participants and the Indirect Participants (with
respect to other owners of beneficial interests in the Global Capital
Securities).
Investors in the Global Capital Securities may hold their interests
therein directly through DTC if they are Participants, or indirectly through
organizations that are Participants. All interests in a Global Capital Security
will be subject to the procedures and requirements of DTC. The laws of some
states require that certain persons take physical delivery in certificated form
of securities that they own. Consequently, the ability to transfer beneficial
interests in a Global Capital Security to those persons will be limited to that
extent. Because DTC can act only on behalf of Participants, which in turn act on
behalf of Indirect Participants and certain banks, the ability of a person
having beneficial interests in a Global Capital Security to pledge those
interests to persons or entities that do not participate in the DTC system, or
otherwise take actions in respect of such interests, may be affected by the lack
of a physical certificate evidencing those interests. For other restrictions on
the transferability of the Capital Securities, see "3/4Exchange of book-entry
Capital Securities for certificated Capital Securities" and "3/4Exchange of
certificated Capital Securities for book-entry Capital Securities."
Except as described below, owners of interests in the Global Capital
Securities will not have Capital Securities registered in their name, will not
receive physical delivery of Capital Securities in certificated form and will
not be considered the registered owners or holders thereof under the Trust
Agreement for any purpose.
Payments in respect of the Global Capital Security registered in the
name of DTC, or its nominee, will be payable by the Property Trustee to DTC in
its capacity as the registered holder under the Trust Agreement. Under the terms
of the Trust Agreement, the Property Trustee will treat the persons in whose
names the Capital Securities, including the Global Capital Securities, are
registered as the owners thereof for the purpose of receiving such payments and
for any and all other purposes whatsoever. Consequently, neither the Property
Trustee nor any agent thereof has or will have any responsibility or liability
for: (a) any aspect of DTC's records or any Participant's or Indirect
Participant's records relating to or payments made on account of beneficial
ownership interests in the Global Capital Securities, or for maintaining,
supervising or reviewing any of DTC's records or any Participant's or Indirect
Participant's records relating to the beneficial ownership interests in the
Global Capital Securities; or (b) any other matter relating to the actions and
practices of DTC or any of its Participants or Indirect Participants. DTC has
advised the Trust and Peoples that its current practice, upon receipt of any
payment in respect of securities such as the Capital Securities, is to credit
the accounts of the relevant Participants with the payment on the payment date,
in amounts proportionate to their respective holdings in liquidation amount of
beneficial interests in the relevant security as shown on the records of DTC
unless DTC has reason to believe it will not receive payment on such payment
date. Payments by the Participants and the Indirect Participants to the
beneficial owners of Capital Securities will be governed by standing
instructions and customary practices and will be the responsibility of the
Participants or the Indirect Participants and will not be the responsibility of
DTC, the Property Trustee, the Trust or Peoples. None of the Trust, Peoples or
the Property Trustee will be liable for any delay by DTC or any of its
Participants in identifying the beneficial owners of the Capital Securities, and
the Trust or Peoples and the Property Trustee may conclusively rely on and will
be protected in relying on instructions from DTC or its nominee for all
purposes.
Secondary market trading activity in interests in the Global Capital
Securities will settle in immediately available funds, subject in all cases to
the rules and procedures of DTC and its Participants. Transfers between
Participants in DTC will be effected in accordance with DTC's procedures, and
will settle in same-day funds.
DTC has advised the Trust and Peoples that it will take any action
permitted to be taken by a holder of Capital Securities (including, without
limitation, the presentation of Capital Securities for exchange as described
below) only at the direction of one or more Participants to whose account with
DTC interests in the Global Capital Securities are credited and only in respect
of such portion of the liquidation amount of the Capital Securities as to which
the Participant or Participants has or have given such direction. However, if
there is an Event of Default under the Trust Agreement, DTC reserves the right
to exchange the Global Capital Securities for legended Capital Securities in
certificated form and to distribute those Capital Securities to its
Participants.
The information in this section concerning DTC and its book-entry
system has been obtained from sources that the Trust and Peoples believe to be
reliable, but neither the Trust nor Peoples takes responsibility for the
accuracy thereof.
Although DTC has agreed to the foregoing procedures to facilitate
transfers of interest in the Global Capital Securities among Participants in
DTC, it is under no obligation to perform or to continue to perform those
procedures, and the procedures may be discontinued at any time. None of the
Trust, Peoples or the Property Trustee will have any responsibility for the
performance by DTC or its Participants or Indirect Participants of its
obligations under the rules and procedures governing its operations.
Exchange of book-entry Capital Securities for certificated Capital Securities
A Global Capital Security is exchangeable for Capital Securities in
registered certificated form if: (1) DTC (x) notifies the Trust that it is
unwilling or unable to continue as depositary for the Global Capital Security
and the Trust thereupon fails to appoint a successor depositary within 90 days
or (y) has ceased to be a clearing agency registered under the Exchange Act and
the Trust thereupon fails to appoint a successor depositary within 90 days; (2)
Peoples in its sole discretion elects to cause the issuance of the Capital
Securities in certificated form; or (3) there has occurred and is continuing an
Event of Default or any event which after notice or lapse of time or both would
be an Event of Default under the Trust Agreement. In addition, beneficial
interests in a Global Capital Security may be exchanged by or on behalf of DTC
for certificated Capital Securities upon request by DTC, but only upon at least
20 days' prior written notice given to the Property Trustee in accordance with
DTC's customary procedures. In all cases, certificated Capital Securities
delivered in exchange for any Global Capital Security or beneficial interests
therein will be registered in the names, and issued in any approved
denominations, requested by or on behalf of the depositary (in accordance with
its customary procedures). Exchange of certificated capital securities for
book-entry capital securities
Certificated Capital Securities may not be exchanged for beneficial
interests in any Global Capital Security, unless the exchange occurs in
connection with a transfer of the certificated Capital Securities and the
transferor first delivers to the Property Trustee a written certificate (in the
form provided in the Trust Agreement) to the effect that the transfer will
comply with the appropriate transfer restrictions applicable to those Capital
Securities.
Payment and Paying Agent
Payments in respect of the Capital Securities held in global form will
be made to the depositary, which will credit the relevant accounts at the
depositary on the applicable Distribution Dates, or in respect of the Capital
Securities that are not held by the depositary, the payments will be made by
check mailed to the address of the holder entitled thereto as the address
appears on the register. The paying agent (the "Paying Agent") will initially be
the Property Trustee and any co-paying agent chosen by the Property Trustee and
acceptable to the Administrative Trustees and Peoples. The Paying Agent will be
permitted to resign as Paying Agent upon 30 days' notice to the Property
Trustee, the Administrative Trustees and Peoples. In the event that the Property
Trustee is no longer the Paying Agent, the Administrative Trustees will appoint
a successor (which must be a bank or trust company acceptable to the
Administrative Trustees and Peoples) to act as Paying Agent.
Restrictions on transfer
The Capital Securities may be transferred only in blocks having a
liquidation amount of not less than $100,000 (100 Capital Securities) and
multiples of $1,000 in excess thereof. Any attempted sale, transfer or other
disposition of Capital Securities in a block having a liquidation amount of less
than $100,000 will be void and of no legal effect whatsoever. Any such purported
transferee will not be the holder of those Capital Securities for any purpose,
including but not limited to the receipt of distributions on those Capital
Securities, and that purported transferee will have no interest whatsoever in
those Capital Securities.
Registrar and transfer agent
The Property Trustee will act as registrar and transfer agent for the
Capital Securities.
Registration of transfers of the Capital Securities will be effected
without charge by or on behalf of the Trust, but upon payment of any tax or
other governmental charges that may be imposed in connection with any transfer
or exchange. The Trust will not be required to register or cause to be
registered the transfer of the Capital Securities after they have been called
for redemption.
Information concerning the Property Trustee
The Property Trustee, other than during the occurrence and continuance
of an Event of Default, will undertake to perform only the duties specifically
described in the Trust Agreement and, during the existence of an Event of
Default, must exercise the same degree of care and skill as a prudent person
would exercise or use in the conduct of his or her own affairs. Subject to this
provision, the Property Trustee is under no obligation to exercise any of the
powers vested in it by the Trust Agreement at the request of any holder of
Capital Securities, unless it is offered reasonable indemnity against the costs,
expenses and liabilities that might be incurred thereby. If no Event of Default
has occurred and is continuing and the Property Trustee is required to decide
between alternative causes of action, construe ambiguous provisions in the Trust
Agreement or is unsure of the application of any provision of the Trust
Agreement, and the matter is not one on which holders of the Capital Securities
or the Common Securities are entitled under the Trust Agreement to vote, then
the Property Trustee will take the action directed by Peoples and, if not so
directed, will take the action it deems advisable and in the best interests of
the holders of the Trust Securities and will have no liability, except for its
own bad faith, negligence or willful misconduct.
Miscellaneous
The Administrative Trustees are authorized and directed to conduct the
affairs of and to operate the Trust in such a way that: (a) the Trust will not
be deemed to be an "investment company" required to be registered under the
Investment Company Act; (b) the Trust will be classified as a grantor trust for
United States federal income tax purposes; and (c) the Junior Subordinated
Debentures will be treated as indebtedness of Peoples for United States federal
income tax purposes. Peoples and the Administrative Trustees are authorized to
take any action, not inconsistent with applicable law, the certificate of trust
of the Trust or the Trust Agreement, that Peoples and the Administrative
Trustees determine in their discretion to be necessary or desirable for these
purposes, as long as the action does not materially adversely affect the
interests of the holders of the Trust Securities.
The Trust Agreement provides that: (a) holders of the Trust Securities
have no preemptive or similar rights to subscribe for any additional Trust
Securities; and (b) the issuance of Trust Securities is not subject to
preemptive rights.
The Trust may not borrow money, issue debt, execute mortgages or pledge
any of its assets.
Description of Junior Subordinated Debentures
The Original Junior Subordinated Debentures were, and the Exchange
Junior Subordinated Debentures will be, issued under an Indenture, as
supplemented from time to time, between Peoples and the Debenture Trustee. Upon
effectiveness of the Registration Statement of which this Prospectus is a part,
the Indenture will be qualified under the Trust Indenture Act. This summary of
selected terms and provisions of the Junior Subordinated Debentures and the
Indenture does not purport to be complete, and where reference is made to
particular provisions of the Indenture, those provisions, including the
definitions of selected terms, some of which are not otherwise defined herein,
are qualified in their entirety by reference to all of the provisions of the
Indenture and those terms made a part of the Indenture by the Trust Indenture
Act.
General
Concurrently with the issuance of the Capital Securities, the Trust
invested the proceeds thereof, together with the consideration paid by Peoples
for the Common Securities, in Junior Subordinated Debentures issued by Peoples.
The Junior Subordinated Debentures bear interest from April 20, 1999 at the
annual rate of 8.62% of the principal amount thereof, payable semi-annually in
arrears on May 1 and November 1 of each year (each, an "Interest Payment Date"),
commencing November 1, 1999. The record dates will be the 15th day of the month
immediately preceding the month in which the relevant payment occurs. It is
anticipated that, until the liquidation, if any, of the Trust, the Junior
Subordinated Debentures will be held in the name of the Property Trustee in
trust for the benefit of the holders of the Trust Securities. The amount of
interest payable for any period will be computed on the basis of a 360-day year
of twelve 30-day months and, for any period of less than a full calendar month,
the number of days elapsed in such month. If any date on which interest is
payable on the Junior Subordinated Debentures is not a Business Day, then
payment of the interest payable on that date will be made on the next succeeding
day that is a Business Day (and without any interest or other payment in respect
of any delay), with the same force and effect as if made on the scheduled
Interest Payment Date. Accrued interest that is not paid on the applicable
Interest Payment Date will bear additional interest on the amount thereof (to
the extent permitted by law) at the rate per annum of 8.62% thereof, compounded
semi-annually. The term "interest," as used herein, includes semi-annual
interest payments, interest on semi-annual interest payments not paid on the
applicable Interest Payment Date and Additional Sums (as defined under
"3/4Special event prepayment"), as applicable.
The Junior Subordinated Debentures will mature on May 1, 2029.
The Junior Subordinated Debentures will rank pari passu with all other
junior subordinated debentures to be issued by Peoples and are unsecured and
rank subordinate and junior in right of payment to all Senior Indebtedness to
the extent and in the manner described in the Indenture. See "3/4Subordination."
Almost all of the operating assets of Peoples and its consolidated
subsidiaries are owned by those subsidiaries. Peoples is a legal entity separate
and distinct from its banking and other subsidiaries. Holders of Junior
Subordinated Debentures should look only to Peoples for payments on the Junior
Subordinated Debentures. The principal sources of Peoples' income are dividends
from its banking and other subsidiaries, and there are various limitations on
Peoples' banking subsidiaries to pay dividends, as discussed below. Peoples'
banking subsidiaries are also subject to restrictions on the transfer of funds
by each depository institution to Peoples and other affiliates, in the form of
loans, other extensions of credit, investments or purchases of assets.
Because Peoples is a holding company, Peoples' operations are conducted
by its subsidiaries, including its banking subsidiaries, which are subject to
significant federal and state regulation. See "Regulation and supervision."
Peoples' ability to receive dividends and loans from its subsidiaries is
restricted. Peoples' banking subsidiaries were able to declare dividends to
Peoples at March 31, 1999, without regulatory approval, of approximately $13.8
million. Further, the right of Peoples to participate in any distribution of
assets of any subsidiary upon that subsidiary's liquidation or reorganization or
otherwise (and thus the ability of holders of the Capital Securities to benefit
indirectly from the distribution) is subject to the prior claims of creditors of
the subsidiary (including depositors in the case of Peoples' banking
subsidiaries), except to the extent that Peoples may itself be recognized as a
creditor of that subsidiary. Accordingly, the Junior Subordinated Debentures
effectively will be subordinated to all existing and future liabilities of
Peoples' subsidiaries (including deposit liabilities of Peoples' banking
subsidiaries), and holders of Junior Subordinated Debentures should look only to
the assets of Peoples for payments on the Junior Subordinated Debentures.
The Indenture does not limit the amount of secured or unsecured debt,
including Senior Indebtedness, that may be incurred by Peoples or any of its
subsidiaries. As of March 31, 1999, Peoples as part of its Senior Indebtedness
had a note to a regional bank in the amount of $2.6 million. See
"3/4Subordination." Peoples expects from time to time that it will incur
additional indebtedness constituting Senior Indebtedness and that its
subsidiaries will incur additional liabilities.
Form, registration and transfer
If the Junior Subordinated Debentures are distributed to the holders of
the Trust Securities, the Junior Subordinated Debentures may be represented by
one or more global certificates registered in the name of Cede & Co., as the
nominee of DTC. The depositary arrangements for the Junior Subordinated
Debentures are expected to be substantially similar to those in effect for the
Capital Securities. For a description of DTC and the terms of the depositary
arrangements relating to payments, transfers, voting rights, redemptions and
other notices and other matters, see "Description of Capital Securities3/4Form,
denomination, book-entry procedures and transfer."
Payment and paying agents
Payment of principal of (and premium, if any) and interest (including
Additional Sums as defined under "3/4Special event prepayment" and compounded
interest, if any) on the Junior Subordinated Debentures will be made at the
offices of Peoples in Marietta, Ohio, or the office of the Debenture Trustee in
Wilmington, Delaware or at the office of any Paying Agent or Paying Agents
Peoples designates from time to time, except that at the option of Peoples,
payment of any interest may be made, except in the case of Junior Subordinated
Debentures in global form: (a) by check mailed to the address of the person
entitled thereto as that address appears in the register for Junior Subordinated
Debentures; or (b) by transfer to an account maintained by the person entitled
thereto as specified in that register, provided proper transfer instructions
have been received by the relevant record date. Payment of any interest on any
Junior Subordinated Debenture will be made to the person in whose name the
Junior Subordinated Debenture is registered at the close of business on the
record date for that interest, except in the case of defaulted interest. Peoples
may at any time designate additional Paying Agents or rescind the designation of
any Paying Agent; however, Peoples will at all times be required to maintain a
Paying Agent in each place of payment for the Junior Subordinated Debentures.
Any moneys deposited with the Debenture Trustee or any Paying Agent, or
then held by Peoples in trust, for the payment of the principal of (and premium,
if any) or interest (including Additional Sums and compounded interest, if any)
on any Junior Subordinated Debenture and remaining unclaimed for two years after
such principal (and premium, if any) or interest has become due and payable
will, at the request of Peoples, be repaid to Peoples and the holder of that
Junior Subordinated Debenture must thereafter look, as a general unsecured
creditor, only to Peoples for payment thereof.
Option to extend Interest Payment Date
So long as no Debenture Event of Default has occurred and is
continuing, Peoples will have the right under the Indenture to defer the payment
of interest on the Junior Subordinated Debentures, at any time and from time to
time, for a period not exceeding ten consecutive semi-annual periods with
respect to each Extension Period, provided that no Extension Period will end on
a date other than an Interest Payment Date or extend beyond May 1, 2029. At the
end of the Extension Period, Peoples must pay all interest then accrued and
unpaid (together with interest thereon at the annual rate of 8.62%, compounded
semi-annually, to the extent permitted by applicable law). During an Extension
Period, interest will continue to accrue and, if the Junior Subordinated
Debentures have been distributed to holders of the Capital Securities, holders
of Junior Subordinated Debentures (or holders of the Capital Securities while
Capital Securities are outstanding) will be required to accrue deferred interest
income for United States federal income tax purposes prior to the receipt of
cash attributable to such income. See "Certain federal income tax
consequences3/4Interest income and original issue discount."
During any Extension Period, Peoples may not: (a) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of Peoples' capital stock; (b) make any
payment of principal, interest or premium, if any, on or repay, repurchase or
redeem any debt securities of Peoples (including any other junior subordinated
debentures to be issued by Peoples) that rank pari passu with or junior in right
of payment to the Junior Subordinated Debentures; or (c) make any guarantee
payments with respect to any guarantee by Peoples of the debt securities of any
subsidiary of Peoples (including any other guarantees to be issued by Peoples)
if the guarantee ranks pari passu with or junior in right of payment to the
Junior Subordinated Debentures (other than (1) dividends or distributions in
Peoples' common shares, or options, warrants or rights to subscribe for or
purchase Peoples' common shares, (2) any declaration of a dividend in connection
with the implementation of a shareholder rights plan, or the issuance of shares
under any shareholder rights plan in the future, or the redemption or repurchase
of any rights pursuant to a shareholder rights plan, (3) payments under the
Guarantee, (4) as a result of a reclassification of Peoples' capital stock or
the exchange or conversion of one class or series of Peoples' capital stock for
another class or series of Peoples' capital stock, (5) the purchase of
fractional interests in shares of Peoples' capital stock pursuant to the
conversion or exchange provisions of that capital stock or the security being
converted or exchanged or pursuant to a merger, consolidation or other business
combination, and (6) purchases of common shares of Peoples related to the
issuance of common shares or rights under any of Peoples' benefit plans for
directors, officers or employees of Peoples and its subsidiaries or Peoples'
dividend reinvestment plan). Peoples has no current intention to exercise its
option to defer payments of interest on the Junior Subordinated Debentures.
Prior to the termination of any Extension Period, Peoples may further
extend the Extension Period, provided the extension does not cause the Extension
Period to exceed ten consecutive semi-annual periods, end on a date other than
an Interest Payment Date or extend beyond May 1, 2029. Upon the termination of
any Extension Period and the payment of all amounts then due, Peoples may elect
to begin a new Extension Period, subject to the requirements described in this
Prospectus. No interest will be due and payable during an Extension Period,
except at the end thereof. Peoples must give the Property Trustee, the
Administrative Trustees and the Debenture Trustee notice of its election of any
Extension Period (or an extension thereof) at least five Business Days prior to
the earlier of: (a) the date the distributions on the Trust Securities would
have been payable except for the election to begin or extend the Extension
Period; or (b) the date the Administrative Trustees are required to give notice
to any securities exchange or to holders of Capital Securities of the record
date or the date the distributions are payable, but in any event not less than
five Business Days prior to the record date. The Debenture Trustee will give
notice of Peoples' election to begin or extend a new Extension Period to the
holders of the Capital Securities. There is no limitation on the number of times
that Peoples may elect to begin an Extension Period.
Optional prepayment
The Junior Subordinated Debentures will be prepayable, in whole or in
part, at the option of Peoples on or after May 1, 2009, subject to Peoples
having received any required regulatory approval, at a price (the "Optional
Prepayment Price") equal to the percentage of the outstanding principal amount
of the Junior Subordinated Debentures specified below, plus, in each case,
accrued and unpaid interest thereon to the date of prepayment if prepaid during
the 12-month period beginning May 1 of the years indicated below:
Year Percentage
2009 104.310%
2010 103.879%
2011 103.448%
2012 103.017%
2013 102.586%
2014 102.155%
2015 101.724%
2016 101.293%
2017 100.862%
2018 100.431%
2019 and thereafter 100.000%
Special event prepayment
Prior to May 1, 2009, if a Special Event has occurred and is
continuing, Peoples may, at its option and subject to receipt of any required
regulatory approval, prepay the Junior Subordinated Debentures, in whole but not
in part, at any time within 90 days of the occurrence of the Special Event, at a
prepayment price (the "Special Event Prepayment Price") equal to the Make-Whole
Amount. The "Make-Whole Amount" will be an amount equal to the greater of (x)
100% of the principal amount of the Junior Subordinated Debentures or (y) the
sum, as determined by a Quotation Agent, of the present values of the remaining
scheduled payments of principal and interest on the Junior Subordinated
Debentures from the prepayment date to May 1, 2029, discounted to the prepayment
date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Adjusted Treasury Rate (as defined below), plus, in the case of
each of clauses (x) and (y), accrued and unpaid interest thereon, if any, to the
date of prepayment. If, following the occurrence of a Special Event, Peoples
exercises its option to prepay the Junior Subordinated Debentures, then the
proceeds of that prepayment must be applied to redeem a Like Amount of Trust
Securities at the Special Event Redemption Price. See "Description of Capital
Securities3/4Redemption."
A "Special Event" means an Investment Company Event, a Regulatory
Capital Event or a Tax Event, as the case may be.
An "Investment Company Event" means the receipt by Peoples and the
Trust of an opinion of independent securities counsel experienced in those
matters to the effect that as a result of: (a) any amendment to, or change
(including any announced prospective change) in, the laws or any regulation
thereunder of the United States or any rules, guidelines or policies of any
applicable regulatory authority for Peoples or (b) any official administrative
or judicial decision interpreting or applying such laws or regulations, which
amendment or change is effective or which pronouncement or decision is announced
on or after the date of original issuance of the Trust Securities, the Trust is,
or within 90 days of the date of the opinion will be, considered an investment
company that is required to be registered under the Investment Company Act.
A "Regulatory Capital Event" means the receipt by Peoples and the Trust
of an opinion of independent bank regulatory counsel experienced in those
matters to the effect that, as a result of: (a) any amendment to, or change
(including any announced prospective change) in, the laws (or any regulations
thereunder) of the United States or any rules, guidelines or policies of an
applicable regulatory agency for Peoples or the banking subsidiaries or (b) any
official administrative pronouncement or judicial decision interpreting or
applying those laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of original
issuance of the Trust Securities, the Capital Securities do not constitute, or
within 90 days of such opinion will not constitute, Tier 1 Capital for purposes
of the capital adequacy guidelines of the Federal Reserve Board (or any
successor regulatory authority with jurisdiction over bank holding companies),
or any capital adequacy guidelines as then in effect and applicable to Peoples;
provided, however, that the distribution of the Junior Subordinated Debentures
in connection with the liquidation of the Trust by Peoples will not in and of
itself constitute a Regulatory Capital Event, unless the liquidation has
occurred in connection with a Tax Event.
A "Tax Event" means the receipt by Peoples and the Trust of an opinion
of independent tax counsel experienced in those matters to the effect that, as a
result of any amendment to, or change (including any announced prospective
change) in, the laws or any regulations thereunder of the United States or any
political subdivision or taxing authority thereof or therein, or as a result of
any official administrative pronouncement or judicial decision interpreting or
applying those laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of original
issuance of the Trust Securities, there is more than an insubstantial risk that:
(a) the Trust is, or will be within 90 days of the date of the opinion, subject
to United States federal income tax with respect to income received or accrued
on the Junior Subordinated Debentures; (b) the interest payable by Peoples on
the Junior Subordinated Debentures is not, or within 90 days of the date of the
opinion will not be, deductible by Peoples, in whole or in part, for United
States federal income tax purposes; or (c) the Trust is, or will be within 90
days of the date of the opinion, subject to more than a de minimis amount of
other taxes, duties or other governmental charges.
"Adjusted Treasury Rate" means, with respect to a prepayment date, the
rate per annum equal to (a) the yield, under the heading which represents the
average for the immediately prior week, appearing in the most recently published
statistical release designated "H.15 (519)" or any successor publication which
is published weekly by the Federal Reserve Board and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity
under the caption "Treasury Constant Maturities," for the maturity corresponding
to the Remaining Life, as defined below (if no maturity is within three months
before or three months after the maturity corresponding to the Remaining Life,
yields for the two published maturities most closely corresponding to the
Remaining Life shall be determined, and the Adjusted Treasury Rate shall be
interpolated or extrapolated from such yields on a straight-line basis, rounding
to the nearest month); or (b) if that release (or any successor release) is not
published during the week preceding the calculation date or does not contain
those yields, the rate per annum equal to the semi-annual equivalent yield to
maturity to the Comparable Treasury Issue, calculated using a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for that prepayment date, plus: (1) 295
basis points if the prepayment date occurs prior to April 20, 2000 and (2) 250
basis points in all other cases.
"Comparable Treasury Issue" means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the Remaining
Life of the Junior Subordinated Debentures that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the Remaining
Life. If no United States Treasury security has a maturity which is within a
period from three months before to three months after the Remaining Life, the
two most closely corresponding United States Treasury securities, as selected by
the Quotation Agent, shall be used as the Comparable Treasury Issue, and the
Adjusted Treasury Rate shall be interpolated or extrapolated on a straight-line
basis, rounding to the nearest month, using such securities.
"Comparable Treasury Price" means, with respect to a prepayment date:
(a) the average of three Reference Treasury Dealer Quotations for the prepayment
date, after excluding the highest and lowest Reference Treasury Dealer
Quotations, or (b) if the Quotation Agent obtains fewer than five Reference
Treasury Dealer Quotations, the average of all Quotations.
"Quotation Agent" means the Reference Treasury Dealer appointed by
Peoples. "Reference Treasury Dealer" means a nationally recognized U.S.
Government securities dealer in New York, New York selected by Peoples.
"Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and the prepayment date, the average, as determined by
the Debenture Trustee, of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) quoted in
writing to the Debenture Trustee by the Reference Treasury Dealer at 5:00 p.m.,
New York time, on the third Business Day preceding the prepayment date.
"Remaining Life" means the term of the Junior Subordinated Debentures
from the prepayment date to May 1, 2029.
Notice of any prepayment will be mailed at least 30 days but not more
than 60 days before the prepayment date to each holder of Junior Subordinated
Debentures to be prepaid at its registered address. Unless Peoples defaults in
payment of the prepayment price, on the prepayment date interest will cease to
accrue on such Junior Subordinated Debentures called for prepayment.
If the Trust is required to pay any additional taxes, duties or other
governmental charges as a result of a Tax Event, Peoples will pay as additional
amounts on the Junior Subordinated Debentures the amounts necessary in order
that the amount of distributions then due and payable by the Trust on the
outstanding Capital Securities will not be reduced as a result of any additional
taxes, duties or other governmental charges to which the Trust has become
subject as a result of a Tax Event ("Additional Sums").
Certain covenants of Peoples
Peoples has also covenanted that it will not: (1) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of Peoples' capital stock; (2) make any
payment of principal, interest or premium, if any, on or repay, repurchase or
redeem any debt securities of Peoples (including any other junior subordinated
debentures to be issued by Peoples) that rank pari passu with or junior in right
of payment to the Junior Subordinated Debentures; or (3) make any guarantee
payments with respect to any guarantee by Peoples of the debt securities of any
subsidiary of Peoples (including any other guarantees to be issued by Peoples)
if the guarantee ranks pari passu with or junior in right of payment to the
Junior Subordinated Debentures (other than (a) dividends or distributions in
Peoples' common shares, or options, warrants or rights to subscribe for Peoples'
common shares, (b) any declaration of a dividend in connection with the
implementation of a shareholder rights plan, or the issuance of shares under any
shareholder rights plan in the future, or the redemption or repurchase of any
rights pursuant to a shareholder rights plan, (c) payments under the Guarantee,
(d) as a result of a reclassification of Peoples' capital stock or the exchange
or conversion of one class or series of Peoples' capital stock for another class
or series of Peoples' capital stock, (e) the purchase of fractional interests in
shares of Peoples' capital stock pursuant to the conversion or exchange
provisions of the capital stock or the security being converted or exchanged or
pursuant to a merger, consolidation or other business combination, and (f)
purchases of common shares of Peoples related to the issuance of common shares
or rights under any of Peoples' benefit plans for directors, officers or
employees of Peoples and its subsidiaries or Peoples' dividend reinvestment
plan), if at that time: (A) there has occurred any default of which Peoples has
actual knowledge that (1) is, or with the giving of notice or the lapse of time,
or both, would be, a Debenture Event of Default and (2) in respect of which
Peoples has not taken reasonable steps to cure; (B) Peoples is in default with
respect to its payment of any obligations under the Guarantee; or (C) Peoples
has given notice of its election to exercise its right to commence an Extension
Period as provided in the Indenture and the Extension Period, or any extension
thereof, shall have commenced and be continuing.
So long as the Trust Securities remain outstanding, Peoples has also
covenanted to: (1) directly or indirectly maintain 100% direct or indirect
ownership of the Common Securities, provided, however, that any permitted
successor of Peoples under the Indenture may succeed to Peoples' ownership of
the Common Securities; (2) use commercially reasonable efforts to cause the
Trust (a) to remain a business trust, except in connection with the distribution
of Junior Subordinated Debentures to the holders of Trust Securities in
liquidation of the Trust, the redemption of all of the Trust Securities, or
certain mergers, conversions, consolidations or amalgamations, each as permitted
by the Trust Agreement, and (b) to otherwise continue to be classified as a
grantor trust and not an association taxable as a corporation for United States
federal income tax purposes; (3) use commercially reasonable efforts to cause
each holder of Trust Securities to be treated as owning an undivided beneficial
interest in the Junior Subordinated Debentures; and (4) not cause, as sponsor of
the Trust, or permit, as holder of the Common Securities, the dissolution,
winding up or liquidation of the Trust, except as provided in the Trust
Agreement.
Modification of Indenture
From time to time Peoples and the Debenture Trustee may, without the
consent of the holders of Junior Subordinated Debentures, amend the Indenture
for specified purposes, including, among other things, curing ambiguities,
defects or inconsistencies, provided that the action does not materially
adversely affect the interest of the holders of Junior Subordinated Debentures,
and qualifying, or maintaining the qualification of, the Indenture under the
Trust Indenture Act. The Indenture contains provisions permitting Peoples and
the Debenture Trustee, with the consent of the holders of a majority in
aggregate principal amount of Junior Subordinated Debentures, to modify the
Indenture in a manner affecting the rights of the holders of Junior Subordinated
Debentures; provided that no modification may, without the consent of the
holders of each outstanding Junior Subordinated Debenture so affected, (1)
change the stated maturity date, or reduce the principal amount of the Junior
Subordinated Debentures or reduce the amount payable on prepayment thereof or
reduce the rate or extend the time of payment of interest thereon except
pursuant to Peoples' right under the Indenture to defer the payment of interest
as provided therein (see "3/4Option to extend Interest Payment Date") or make
the principal of, or interest or premium on, the Junior Subordinated Debentures
payable in any coin or currency other than that provided in the Junior
Subordinated Debentures, or impair or affect the right of any holder of Junior
Subordinated Debentures to institute suit for the payment thereof, or (2) reduce
the percentage of principal amount of Junior Subordinated Debentures, the
holders of which are required to consent to any modification of the Indenture.
Debenture Events of Default
The Indenture provides that any one or more of the following described
events with respect to the Junior Subordinated Debentures constitutes a
"Debenture Event of Default" (whatever the reason for the Debenture Event of
Default and whether it is voluntary or involuntary or effected by operation of
law or pursuant to any judgment, decree or order of any court or any order, rule
or regulation of any administrative or governmental body):
o Failure for 30 days to pay any interest (including compounded interest and
Additional Sums, if any) on the Junior Subordinated Debentures or any other
junior subordinated debentures to be issued by Peoples when due (subject to
the deferral of any due date in the case of an Extension Period with
respect to the Junior Subordinated Debentures or all other debentures to be
issued by Peoples, as the case may be);
o Failure to pay any principal or premium, if any, on the Junior Subordinated
Debentures or any other junior subordinated debentures to be issued by
Peoples when due whether at maturity, upon prepayment, by declaration of
acceleration of maturity or otherwise;
o Failure to observe or perform any other covenant contained in the Indenture
for 90 days after written notice to Peoples from the Debenture Trustee or
to Peoples and the Debenture Trustee from the holders of at least 25% in
aggregate outstanding principal amount of Junior Subordinated Debentures;
or
o Events related to bankruptcy, insolvency or reorganization of Peoples.
The holders of a majority in aggregate outstanding principal amount of
the Junior Subordinated Debentures have, subject to specified exceptions, the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Debenture Trustee. The Debenture Trustee or the holders
of not less than 25% in aggregate outstanding principal amount of the Junior
Subordinated Debentures may declare the principal due and payable immediately
upon a Debenture Event of Default. The holders of a majority in aggregate
outstanding principal amount of the Junior Subordinated Debentures may annul the
declaration and waive the default if the default (other than the non-payment of
the principal of the Junior Subordinated Debentures which has become due solely
by the acceleration) has been cured and a sum sufficient to pay all matured
installments of interest and principal due otherwise than by acceleration has
been deposited with the Debenture Trustee.
The holders of a majority in aggregate outstanding principal amount of
the Junior Subordinated Debentures affected thereby may, on behalf of the
holders of all the Junior Subordinated Debentures, waive any past default,
except a default in the payment of principal (or premium, if any) or interest
(including Additional Sums and compounded interest, if any) (unless the default
has been cured and a sum sufficient to pay all matured installments of interest
(and premium, if any) and principal due otherwise than by acceleration has been
deposited with the Debenture Trustee) or a default in respect of a covenant or
provision which under the Indenture cannot be modified or amended without the
consent of the holder of each outstanding Junior Subordinated Debenture.
The Indenture requires the annual filing by Peoples with the Debenture
Trustee of a certificate as to the absence of specified defaults under the
Indenture.
The Indenture provides that the Debenture Trustee may withhold notice
of a Debenture Event of Default from the holders of the Junior Subordinated
Debentures if the Debenture Trustee considers it in the interest of those
holders to do so.
Enforcement of rights by holders of Capital Securities
If a Debenture Event of Default has occurred and is continuing and is
attributable to the failure of Peoples to pay the principal of (or premium, if
any), or interest (including Additional Sums and compounded interest, if any) on
the Junior Subordinated Debentures on the due date, a holder of Capital
Securities may institute a direct action. Peoples may not amend the Indenture to
remove the foregoing right to bring a direct action without the prior written
consent of the holders of all of the Capital Securities. Notwithstanding any
payments made to a holder of Capital Securities by Peoples in connection with a
direct action, Peoples will remain obligated to pay the principal of (or
premium, if any) or interest (including Additional Sums and compounded interest,
if any) on the Junior Subordinated Debentures, and Peoples will be subrogated to
the rights of the holder of those Capital Securities with respect to payments on
the Capital Securities to the extent of any payments made by Peoples to such
holder in any direct action.
The holders of the Capital Securities will not be able to exercise
directly any remedies, other than those described in the preceding paragraph,
available to the holders of the Junior Subordinated Debentures, unless there has
been an Event of Default under the Trust Agreement. See "Description of Capital
Securities Events of Default; Notice."
Consolidation, merger, sale of assets and other transactions
The Indenture provides that Peoples may not consolidate with or merge
into any other person or convey, transfer or lease its properties as an entirety
or substantially as an entirety to any person, and no person may consolidate
with or merge into Peoples or convey, transfer or lease its properties as an
entirety or substantially as an entirety to Peoples, unless: (a) in case Peoples
consolidates with or merges into another person or conveys or transfers its
properties as an entirety or substantially as an entirety to any person, the
successor person is organized under the laws of the United States or any State
or the District of Columbia, and the successor person expressly assumes Peoples'
obligations under the Indenture with respect to the Junior Subordinated
Debentures; (b) immediately after giving effect thereto, no Debenture Event of
Default, and no event which, after notice or lapse of time or both, would become
a Debenture Event of Default, has occurred and is continuing; and (c) other
conditions prescribed in the Indenture are met.
The general provisions of the Indenture do not afford holders of the
Junior Subordinated Debentures protection in the event of a highly leveraged or
other transaction involving Peoples that may adversely affect holders of the
Junior Subordinated Debentures.
Satisfaction and discharge
The Indenture provides that when, among other things, all Junior
Subordinated Debentures not previously delivered to the Debenture Trustee for
cancellation (a) have become due and payable or (b) will become due and payable
at maturity or called for redemption within one year, and Peoples deposits or
causes to be deposited with the Debenture Trustee funds, in trust, for the
purpose and in an amount sufficient to pay and discharge the entire indebtedness
on the Junior Subordinated Debentures not previously delivered to the Debenture
Trustee for cancellation, for the principal (and premium, if any) and interest
(including Additional Sums and compounded interest, if any) to the date of the
prepayment or to May 1, 2029, as the case may be, then the Indenture will cease
to be of further effect (except as to Peoples' obligations to pay all other sums
due pursuant to the Indenture and to provide the officers' certificates and
opinions of counsel described in the Indenture), and Peoples will be deemed to
have satisfied and discharged the Indenture.
Subordination
In the Indenture, Peoples has covenanted and agreed that any Junior
Subordinated Debentures issued thereunder will be subordinate and junior in
right of payment to all Senior Indebtedness to the extent provided in the
Indenture. Upon any payment or distribution of assets to creditors upon any
liquidation, dissolution, winding up, reorganization, assignment for the benefit
of creditors, marshaling of assets or any bankruptcy, insolvency, debt
restructuring or similar proceedings in connection with any insolvency or
bankruptcy proceeding of Peoples, all Senior Indebtedness must be paid in full
before the holders of Junior Subordinated Debentures will be entitled to receive
or retain any payment in respect thereof.
In the event of the acceleration of the maturity of Junior Subordinated
Debentures, the holders of all Senior Indebtedness outstanding at the time of
the acceleration will first be entitled to receive payment in full of the Senior
Indebtedness before the holders of Junior Subordinated Debentures will be
entitled to receive or retain any payment in respect of the Junior Subordinated
Debentures.
No payments on account of principal (or premium, if any) or interest
(including Additional Sums and compounded interest, if any) in respect of the
Junior Subordinated Debentures may be made if there has occurred and is
continuing a default in any payment with respect to Senior Indebtedness, or an
event of default with respect to any Senior Indebtedness resulting in the
acceleration of the maturity thereof, or if any judicial proceeding shall be
pending with respect to any such default.
"Indebtedness" means: (a) every obligation of Peoples for money
borrowed; (b) every obligation of Peoples evidenced by bonds, debentures, notes
or other similar instruments, including obligations incurred in connection with
the acquisition of property, assets or businesses; (c) every reimbursement
obligation of Peoples with respect to letters of credit, banker's acceptances or
similar facilities issued for the account of Peoples; (d) every obligation of
Peoples issued or assumed as the deferred purchase price of property or services
(but excluding trade accounts payable or accrued liabilities arising in the
ordinary course of business); (e) every capital lease obligation of Peoples; (f)
all indebtedness of Peoples whether incurred on or prior to the date of the
Indenture or thereafter incurred, for claims in respect of derivative products,
including interest rate, foreign exchange rate and commodity forward contracts,
options and swaps and similar arrangements; and (g) every obligation of the type
referred to in clauses (a) through (g) of another person and all dividends of
another person the payment of which, in either case, Peoples has guaranteed or
is responsible or liable for, directly or indirectly, as obligor or otherwise.
"Indebtedness Ranking on a Parity with the Junior Subordinated
Debentures" means (a) Indebtedness, whether outstanding on the date of execution
of the Indenture or thereafter created, assumed or incurred, to the extent the
Indebtedness by its terms ranks equally with and not prior to the Junior
Subordinated Debentures in the right of payment upon the happening of the
dissolution, winding-up, liquidation or reorganization of Peoples and (b) all
other debt securities, and guarantees in respect of those debt securities,
issued to any trust other than the Trust, or a trustee of a trust, partnership
or other entity affiliated with Peoples that is a financing vehicle of Peoples
(a "financing entity") in connection with the issuance by the financing entity
of equity securities or other securities guaranteed by Peoples pursuant to an
instrument that ranks pari passu with or junior in right of payment to the
Guarantee. The securing of any Indebtedness, otherwise constituting Indebtedness
Ranking on a Parity with the Junior Subordinated Debentures, will not be deemed
to prevent the Indebtedness from constituting Indebtedness Ranking on a Parity
with the Junior Subordinated Debentures.
"Indebtedness Ranking Junior to the Junior Subordinated Debentures"
means any Indebtedness, whether outstanding on the date of execution of the
Indenture or thereafter created, assumed or incurred, to the extent the
Indebtedness by its terms ranks junior to and not equally with or prior to the
Junior Subordinated Debentures (and any other Indebtedness Ranking on a Parity
with the Junior Subordinated Debentures) in right of payment upon the happening
of the dissolution, winding-up, liquidation or reorganization of Peoples. The
securing of any Indebtedness, otherwise constituting Indebtedness Ranking Junior
to the Junior Subordinated Debentures, will not be deemed to prevent the
Indebtedness from constituting Indebtedness Ranking Junior to the Junior
Subordinated Debentures.
"Senior Indebtedness" shall mean all Indebtedness, whether outstanding
on the date of execution of the Indenture or thereafter created, assumed or
incurred, except Indebtedness Ranking on a Parity with the Junior Subordinated
Debentures or Indebtedness Ranking Junior to the Junior Subordinated Debentures,
and any deferrals, renewals or extensions of that Senior Indebtedness.
Because Peoples is a bank holding company and a savings and loan
holding company, the right of Peoples to participate in any distribution of
assets of any banking subsidiary upon such subsidiary's liquidation or
reorganization or otherwise (and thus the ability of holders of the Capital
Securities to benefit indirectly from the distribution), is subject to the prior
claims of creditors of that subsidiary (including depositors), except to the
extent Peoples may itself be recognized as a creditor of that subsidiary. At
March 31, 1999, Peoples and its banking subsidiaries had total liabilities
(excluding liabilities owed to Peoples) of $785 million. Accordingly, the Junior
Subordinated Debentures will be effectively subordinated to all existing and
future liabilities of Peoples' subsidiaries (including the deposit liabilities)
and all liabilities of any future subsidiaries of Peoples. The Indenture does
not limit the incurrence or issuance of other secured or unsecured debt of
Peoples or any subsidiary, including Senior Indebtedness.
Restrictions on transfer
The Original Junior Subordinated Debentures were issued and the
Exchange Junior Subordinated Debentures will be issued and may be transferred
only in blocks having an aggregate principal amount of not less than $100,000
(100 Junior Subordinated Debentures) and multiples of $1,000 in excess thereof.
Any attempted transfer of Junior Subordinated Debentures in a block having an
aggregate principal amount of less than $100,000 shall be deemed to be void and
of no legal effect whatsoever. The purported transferee will be deemed not to be
the holder of such Junior Subordinated Debentures for any purpose, including,
but not limited, to the receipt of payments on such Junior Subordinated
Debentures. Under those circumstances, the purported transferee will be deemed
to have no interest whatsoever in such Junior Subordinated Debentures.
Governing law
The Indenture and the Junior Subordinated Debentures are governed by
and construed in accordance with the laws of the State of New York.
Information concerning the Debenture Trustee
Following the exchange offer and the qualification of the Indenture
under the Trust Indenture Act, the Debenture Trustee will have and be subject to
all the duties and responsibilities specified with respect to an indenture
trustee under the Trust Indenture Act. Subject to those provisions, the
Debenture Trustee is under no obligation to exercise any of the powers vested in
it by the Indenture at the request of any holder of Junior Subordinated
Debentures, unless offered reasonable indemnity by the holder against the costs,
expenses and liabilities which might be incurred thereby. The Debenture Trustee
is not required to expend or risk its own funds or otherwise incur personal
financial liability in the performance of its duties under the Indenture.
Description of Guarantee
The Original Guarantee was executed and delivered by Peoples
concurrently with the issuance by the Trust of the Original Capital Securities
for the benefit of the holders from time to time of the Original Capital
Securities. The Exchange Guarantee will be executed and delivered by Peoples
concurrently with the issuance by the Trust of the Exchange Capital Securities
in connection with the exchange offer for the benefit of the holders from time
to time of the Exchange Capital Securities. Wilmington Trust Company will act as
Guarantee Trustee under the Original Guarantee and the Exchange Guarantee. The
Exchange Guarantee will be qualified under the Trust Indenture Act upon
effectiveness of the Registration Statement of which this Prospectus is a part.
The Original Guarantee will not be qualified under the Trust Indenture Act. This
summary of selected provisions of the Guarantees does not purport to be complete
and is subject to, and qualified in its entirety by reference to, all of the
provisions of the Guarantees, including the definitions therein of selected
terms, and the Trust Indenture Act. The Guarantee Trustee will hold the Original
Guarantee and the Exchange Guarantee for the benefit of the holders of the
Original Capital Securities and the Exchange Capital Securities, respectively.
General
Peoples has agreed and will irrevocably agree to pay in full on a
subordinated basis, to the extent described in this Prospectus, the Guarantee
Payments (as defined below) to the holders of the Capital Securities, as and
when due, regardless of any defense, right of set-off or counterclaim that the
Trust may have or assert other than the defense of payment. The following
payments with respect to the Capital Securities, to the extent not paid by or on
behalf of the Trust (the "Guarantee Payments"), will be subject to the
Guarantees: (a) any accumulated and unpaid distributions required to be paid on
the Capital Securities, to the extent that the Trust has funds on hand legally
available therefor at such time; (b) the applicable Redemption Price with
respect to the Capital Securities called for redemption, to the extent that the
Trust has funds on hand legally available therefor at such time; and (c) upon a
voluntary or involuntary dissolution, winding-up or liquidation of the Trust
(other than in connection with the distribution of the Junior Subordinated
Debentures to holders of the Capital Securities or the redemption of all Capital
Securities), the lesser of (1) the Liquidation Distribution, to the extent the
Trust has funds legally available therefor at the time, and (2) the amount of
assets of the Trust remaining available for distribution to holders of Capital
Securities after satisfaction of liabilities to creditors of the Trust as
required by applicable law. Peoples' obligation to make a Guarantee Payment may
be satisfied by direct payment of the required amounts by Peoples to the holders
of the Capital Securities or by causing the Trust to pay those amounts to the
holders.
The Guarantees will be an irrevocable guarantee on a subordinated basis
of the Trust's obligations under the Capital Securities, but will apply only to
the extent that the Trust has funds sufficient to make those payments. If
Peoples does not make interest payments on the Junior Subordinated Debentures
held by the Trust, the Trust will not be able to pay the distributions on the
Capital Securities and will not have funds legally available therefor. See
"Relationship among the Capital Securities, the Junior Subordinated Debentures
and the Guarantee."
The Original Guarantee ranks, and the Exchange Guarantee will rank,
subordinate and junior in right of payment to all Senior Indebtedness to the
extent provided in the Guarantees. See "3/4Status of the Exchange Guarantee" and
"3/4Status of the Original Guarantee."
Peoples has, through the Guarantees, the Trust Agreement, the Junior
Subordinated Debentures and the Indenture, taken together, fully, irrevocably
and unconditionally guaranteed all of the Trust's obligations under the Capital
Securities on a subordinated basis. No single document standing alone, or
operating in conjunction with fewer than all of the other documents, constitutes
that guarantee. It is only the combined operation of these documents that has
the effect of providing a full, irrevocable and unconditional guarantee of the
Trust's obligations under the Capital Securities. See "Relationship among the
Capital Securities, the Junior Subordinated Debentures and the Guarantee."
Status of the Exchange Guarantee
The Exchange Guarantee will constitute an unsecured obligation of
Peoples and will rank subordinate and junior in right of payment to all Senior
Indebtedness in the same manner as the Junior Subordinated Debentures. See
"Description of Junior Subordinated Debentures--Subordination." In addition,
because Peoples is a holding company, the right of Peoples to participate in any
distribution of assets of any subsidiary upon that subsidiary's liquidation or
reorganization or otherwise is subject to the prior claims of creditors of the
subsidiary (including depositors of Peoples' banking subsidiaries), except to
the extent Peoples may itself be recognized as a creditor of the subsidiary.
Accordingly, Peoples' obligations under the Exchange Guarantee effectively will
be subordinated to all existing and future liabilities of Peoples' present and
future subsidiaries (including the depositors of Peoples' banking subsidiaries).
As a result, claimants should look only to the assets of Peoples for payments
under the Exchange Guarantee. The Exchange Guarantee will rank pari passu with
all other guarantees issued by Peoples with respect to preferred beneficial
interests (if any) issued by other trusts to be established by Peoples similar
to the Trust.
The Exchange Guarantee does not limit the amount of secured or
unsecured debt, including Senior Indebtedness, that may be incurred by Peoples
or any of its subsidiaries. Peoples expects from time to time that it will incur
additional indebtedness and that its subsidiaries will also incur additional
liabilities.
The Exchange Guarantee will constitute a guarantee of payment and not
of collection (i.e., the guaranteed party may institute a legal proceeding
directly against Peoples to enforce its rights under the Exchange Guarantee
without first instituting a legal proceeding against any other person or
entity). The Exchange Guarantee will be held for the benefit of the holders of
the Exchange Capital Securities. The Exchange Guarantee will not be discharged,
except by payment of the Guarantee Payments in full to the extent not paid by
the Trust or upon distribution to the holders of the Exchange Capital Securities
of the Exchange Junior Subordinated Debentures.
Status of the Original Guarantee
If not all the Original Capital Securities are exchanged for Exchange
Capital Securities in the exchange offer, the Original Guarantee will not
terminate, but will continue to guarantee the obligations of Peoples for the
benefit of the holders of the Original Capital Securities. The Original
Guarantee will terminate upon full payment of the applicable Redemption Price of
the Original Capital Securities, upon full payment of the liquidation amount
payable upon liquidation of the Trust or upon distribution of Original Junior
Subordinated Debentures to the holders of the Original Capital Securities. The
Original Guarantee will continue to be effective or will be reinstated, as the
case may be, if at any time any holder of the Original Capital Securities must
restore payment of any sums paid under the Original Capital Securities or the
Original Guarantee.
Events of default
An event of default under the Guarantee will occur upon the failure of
Peoples to perform any of its payment or other obligations thereunder, provided,
however, that except with respect to a default in payment of any Guarantee
Payment, Peoples must have received notice of default and not cured such default
within 60 days after receipt of the notice. The holders of not less than a
majority in liquidation amount of the Capital Securities will have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Guarantee Trustee in respect of the Guarantee or to direct the
exercise of any trust or power conferred upon the Guarantee Trustee under the
Guarantee.
Any holder of the Capital Securities may institute a legal proceeding
directly against Peoples to enforce its rights under the Guarantee without first
instituting a legal proceeding against the Trust, the Guarantee Trustee or any
other person or entity.
Peoples, as guarantor, will be required to file annually with the
Guarantee Trustee a certificate as to whether or not Peoples is in compliance
with all the conditions and covenants applicable to it under the Guarantee.
Amendments and assignment
Except with respect to any changes that do not materially adversely
affect the rights of holders of the Capital Securities (in which case no vote
will be required), the Guarantee may not be amended without the prior approval
of the holders of a majority of the liquidation amount of outstanding Capital
Securities. The manner of obtaining any required approval is described under
"Description of Capital Securities-Voting rights; Amendment of the Trust
Agreement." All guarantees and agreements contained in the Guarantee Agreement
will bind the successors, assigns, receivers, trustees and representatives of
Peoples and will inure to the benefit of the holders of the Capital Securities
then outstanding.
Termination of the Guarantee
The Guarantee will terminate and be of no further force and effect upon
full payment of the applicable Redemption Price of all outstanding Capital
Securities, upon full payment of the liquidation amount payable upon liquidation
of the Trust or upon distribution of Junior Subordinated Debentures to the
holders of the Capital Securities. The Guarantee will continue to be effective
or will be reinstated, as the case may be, if at any time any holder of the
Capital Securities must restore payment of any sums paid under the Capital
Securities or the Guarantee.
Information concerning the Guarantee Trustee
The Guarantee Trustee, other than during the occurrence and continuance
of a default by Peoples in performance of the Guarantee, will undertake to
perform only the duties specifically described in the Guarantee and, in case a
default with respect to the Guarantee has occurred, must exercise the same
degree of care and skill as a prudent person would exercise or use in the
conduct of his or her own affairs. Subject to this provision, the Guarantee
Trustee will be under no obligation to exercise any of the powers vested in it
by the Guarantee at the request of any holder of the Capital Securities, unless
it is offered reasonable indemnity against the costs, expenses and liabilities
that might be incurred thereby.
Governing law
The Guarantee will be governed by and construed in accordance with the
laws of the State of New York.
Relationship among the Capital Securities,
the Junior Subordinated Debentures and the Guarantee
Full and unconditional guarantee
Payments of distributions and other amounts due on the Capital
Securities (to the extent the Trust has funds on hand legally available for the
payment of those distributions) will be irrevocably guaranteed by Peoples as and
to the extent described under "Description of Guarantee." Taken together,
Peoples' obligations under the Junior Subordinated Debentures, the Indenture,
the Trust Agreement and the Guarantee will provide, in the aggregate, a full,
irrevocable and unconditional guarantee of payments of distributions and other
amounts due on the Capital Securities on a subordinated basis. No single
document standing alone or operating in conjunction with fewer than all of the
other documents constitutes that guarantee. It is only the combined operation of
these documents that has the effect of providing a full, irrevocable and
unconditional guarantee of the Trust's obligations under the Capital Securities.
If and to the extent that Peoples does not make the required payments on the
Junior Subordinated Debentures, the Trust will not have sufficient funds to make
the related payments, including distributions, on the Capital Securities. The
Guarantee will not cover any payment when the Trust does not have sufficient
funds on hand legally available therefor. In that event, the remedy of a holder
of Capital Securities is to institute a direct action. The obligations of
Peoples under the Guarantee will be subordinate and junior in right of payment
to all Senior Indebtedness.
Sufficiency of payments
As long as payments of interest and other payments are made when due on
the Junior Subordinated Debentures, those payments will be sufficient to cover
distributions and other payments due on the Capital Securities, primarily
because: (a) the aggregate principal amount or Prepayment Price of the Junior
Subordinated Debentures will be equal to the sum of the liquidation amount or
Redemption Price, as applicable, of the Trust Securities; (b) the interest rate
and interest and other payment dates on the Junior Subordinated Debentures will
match the distribution rate and distribution and other payment dates for the
Capital Securities; (c) Peoples, as sponsor, will pay for all and any costs,
expenses and liabilities of the Trust, except the Trust's obligations to holders
of Capital Securities under the Capital Securities; and (d) the Trust Agreement
will provide that the Trust is not authorized to engage in any activity that is
not consistent with its limited purposes.
Enforcement rights of holders of Capital Securities
A holder of any Capital Security may institute a legal proceeding
directly against Peoples to enforce its rights under the Guarantee without first
instituting a legal proceeding against the Guarantee Trustee, the Trust or any
other person or entity.
A default or event of default under any Senior Indebtedness would not
constitute a default or Event of Default under the Trust Agreement. However, in
the event of payment defaults under, or acceleration of, Senior Indebtedness,
the subordination provisions of the Indenture will provide that no payments may
be made in respect of the Junior Subordinated Debentures until the Senior
Indebtedness has been paid in full or any payment default thereunder has been
cured or waived. Failure to make required payments on Junior Subordinated
Debentures would constitute an Event of Default under the Trust Agreement.
Limited purpose of the Trust
The Trust exists for the sole purpose of issuing and selling the
Capital Securities, using the proceeds from the sale of the Trust Securities to
acquire the Junior Subordinated Debentures and engaging in only those other
activities necessary, advisable or incidental thereto. A principal difference
between the rights of a holder of a Capital Security and a holder of a Junior
Subordinated Debenture is that a holder of a Junior Subordinated Debenture will
be entitled to receive from Peoples the principal amount of (and premium, if
any) and interest (including Additional Sums and Compounded Interest, if any) on
Junior Subordinated Debentures held, while a holder of Capital Securities is
entitled to receive distributions from the Trust (or, in limited circumstances,
from Peoples under the Guarantee) if and to the extent the Trust has funds on
hand legally available for the payment of such distributions.
Rights upon dissolution
Unless the Junior Subordinated Debentures are distributed to holders of
the Capital Securities, upon any voluntary or involuntary dissolution,
winding-up or liquidation of the Trust, after satisfaction of the liabilities of
creditors of the Trust as required by applicable law, the holders of the Trust
Securities will be entitled to receive, out of assets held by the Trust, the
Liquidation Distribution in cash. See "Description of Capital
Securities3/4Liquidation of the Trust and distribution of Junior Subordinated
Debentures." Upon any voluntary or involuntary liquidation or bankruptcy of
Peoples, the Property Trustee, as holder of the Junior Subordinated Debentures,
would be a subordinated creditor of Peoples, subordinated in right of payment to
all Senior Indebtedness as set forth in the Indenture, but entitled to receive
payment in full of principal (and premium, if any) and interest before any
shareholders of Peoples receive payments or distributions. Since Peoples is the
guarantor under the Guarantee and has agreed to pay for all costs, expenses and
liabilities of the Trust (other than the Trust's obligations to the holders of
its Trust Securities), the positions of a holder of Capital Securities and a
holder of Junior Subordinated Debentures relative to other creditors and to
shareholders of Peoples in the event of liquidation or bankruptcy of Peoples are
expected to be substantially the same.
Certain federal income tax consequences
General
The following is a summary of certain material United States federal
income tax consequences of the purchase, ownership and disposition of Capital
Securities held as capital assets by a holder who purchases Capital Securities
upon initial issuance. The statements of law and legal conclusions described in
the summary regarding the tax consequences to the beneficial owners of Capital
Securities represent the opinion of Vorys, Sater, Seymour and Pease LLP, special
federal income tax counsel to Peoples and the Trust ("Special Tax Counsel").
This summary and the tax opinion of Special Tax Counsel only address the tax
consequences to a person that acquires Capital Securities on their original
issue at their original offering price. The summary does not address all tax
consequences that may be applicable to beneficial owners of the Capital
Securities and does not address the tax consequences to special classes of
holders such as banks, thrifts, real estate investment trusts, regulated
investment companies, insurance companies, dealers in securities or currencies,
tax-exempt investors, United States Alien Holders (as defined below) engaged in
a U.S. trade or business or persons that will hold the Capital Securities as a
position in a "straddle," as part of a "synthetic security" or "hedge," as part
of a "conversion transaction" or other integrated investment, or as other than a
capital asset. This summary also does not address the tax consequences to
persons that have a functional currency other than the U.S. dollar or the tax
consequences to shareholders, partners or beneficiaries of a holder of Capital
Securities. Further, it does not include any description of any alternative
minimum tax consequences or the tax laws of any state or local government or of
any foreign government that may be applicable to the Capital Securities. This
summary is based on the Internal Revenue Code of 1986 (the "Code"), the Treasury
regulations thereunder and the administrative and judicial interpretations
thereof, as of the date of this Prospectus, all of which are subject to change,
possibly on a retroactive basis. An opinion of Special Tax Counsel is not
binding on the Internal Revenue Service ("IRS") or the courts. No rulings have
been or are expected to be sought from the IRS with respect to any of the
transactions described in this Prospectus and no assurance can be given that the
IRS will not take contrary positions. Moreover, no assurance can be given that
the opinions expressed in this Prospectus will not be challenged by the IRS or,
if challenged, that such a challenge would not be successful.
Exchange of Capital Securities
The exchange of Original Capital Securities for Exchange Capital
Securities should not be a taxable event to holders for United States federal
income tax purposes. The exchange of Original Capital Securities for Exchange
Capital Securities pursuant to the exchange offer should not be treated as an
"exchange" for United States federal income tax purposes because the Exchange
Capital Securities should not be considered to differ materially in kind or
extent from the Original Capital Securities and because the exchange will occur
by operation of the terms of the Original Capital Securities. If, however, the
exchange of the Original Capital Securities for the Exchange Capital Securities
were treated as an exchange for United States federal income tax purposes, the
exchange should constitute a recapitalization for federal income tax purposes.
Accordingly, the Exchange Capital Securities should have the same issue price as
the Original Capital Securities, and a holder should have the same adjusted tax
basis and holding period in the Exchange Capital Securities as the holder had in
the Original Capital Securities immediately before the exchange.
Classification of the Junior Subordinated Debentures
Peoples has taken the position that the Junior Subordinated Debentures
should be classified for United States federal income tax purposes as
indebtedness of Peoples. Peoples, the Trust and the holders of the Capital
Securities (by acceptance of a beneficial interest in a Capital Security) have
agreed to treat the Junior Subordinated Debentures as indebtedness of Peoples
for all United States federal income tax purposes. No assurance can be given,
however, that this position will not be challenged by the IRS or, if challenged,
that the challenge will not be successful. The remainder of this discussion
assumes that the Junior Subordinated Debentures will be classified as
indebtedness of Peoples for United States federal income tax purposes.
Classification of the Trust
In connection with the issuance of the Capital Securities, Special Tax
Counsel rendered an opinion generally to the effect that, under then current law
and assuming full compliance with the terms of the Trust Agreement and the
Indenture (and selected other documents), and based on facts and assumptions
described in that opinion, the Trust will be classified for United States
federal income tax purposes as a grantor trust and not as an association taxable
as a corporation. Accordingly, for United States federal income tax purposes,
each holder of Capital Securities generally will be considered the owner of an
undivided interest in the Junior Subordinated Debentures, and thus, each holder
is required to include in its gross income any interest received or accrued with
respect to its allocable share of those Junior Subordinated Debentures.
Interest income and original issue discount
Under recently issued Treasury regulations (the "Regulations")
applicable to debt instruments issued on or after August 13, 1996, a "remote"
contingency that stated interest will not be timely paid will be ignored in
determining whether a debt instrument is issued with original issue discount
("OID"). Peoples believes that the likelihood of its exercising its option to
defer payments of interest is "remote" since exercising that option would, among
other things, prevent Peoples from declaring dividends on any class of its
equity securities. Peoples has regularly paid quarterly dividends on Peoples'
common shares since its organization in 1981. Accordingly, Peoples intends to
take the position based on the advice of Special Tax Counsel that the Junior
Subordinated Debentures will not be considered to be issued with OID and,
accordingly, stated interest on the Junior Subordinated Debentures generally
will be taxable to a holder as ordinary income at the time it is paid or accrued
in accordance with the holder's method of tax accounting.
Under the Regulations, if Peoples were to exercise its option to defer
payments of interest, the Junior Subordinated Debentures would at that time be
treated as issued with OID, and all stated interest on the Junior Subordinated
Debentures would thereafter be treated as OID as long as the Junior Subordinated
Debentures remain outstanding. In that event, a holder will be required to
accrue interest on a daily basis regardless of the holder's method of tax
accounting, and actual distributions of stated interest would not be reported
separately as taxable income. Consequently, a holder of Capital Securities would
be required to include in gross income OID even though Peoples would not make
actual cash payments during an Extension Period. Moreover, under the
Regulations, if the option to defer the payment of interest was determined not
to be "remote" within the meaning of the Regulations, the Junior Subordinated
Debentures would be treated as having been originally issued with OID. In that
event, all of a holder's taxable interest income with respect to the Junior
Subordinated Debentures would be accrued on a daily basis regardless of the
holder's method of tax accounting, and actual distributions of stated interest
would not be reported separately as taxable income. In each case, the amount of
OID that will accrue each year will approximately equal the amount of interest
accruing at the stated interest rate.
Corporate holders of the Capital Securities will not be entitled to a
dividends-received deduction with respect to any income related to the Capital
Securities.
Receipt of Junior Subordinated Debentures or cash upon liquidation of the Trust
Peoples has the right at any time to liquidate the Trust and cause the
Junior Subordinated Debentures to be distributed to the holders of the Trust
Securities. Under current law, such a distribution, for United States federal
income tax purposes, would be treated as a nontaxable event to each holder, and
each holder would receive an aggregate tax basis in the Junior Subordinated
Debentures equal to the holder's aggregate tax basis in its Capital Securities.
A holder's holding period in the Junior Subordinated Debentures so received in
liquidation of the Trust would include the period during which the Capital
Securities were held by the holder. A holder will account for interest in
respect of the Junior Subordinated Debentures received from the Trust in the
manner described above under "3/4Interest income and original issue discount,"
including any accrual of OID attributed to the Junior Subordinated Debentures
upon any distribution.
Under certain circumstances described in this Prospectus (see
"Description of Capital Securities"), the Junior Subordinated Debentures may be
prepaid for cash and the proceeds of that prepayment distributed to holders in
redemption of their Capital Securities. Under current law, such a redemption
would, for United States federal income tax purposes, constitute a taxable
disposition of the redeemed Capital Securities, and a holder could recognize
gain or loss as if it sold the redeemed Capital Securities for cash. See
"Sales of Capital Securities."
Sales of Capital Securities
A holder that sells Capital Securities (including a redemption of the
Capital Securities by Peoples for cash) will recognize gain or loss equal to the
difference between its adjusted tax basis in the Capital Securities and the
amount realized on the sale of the Capital Securities (other than with respect
to accrued and unpaid interest which has not yet been included in income, which
will be treated as ordinary income). A holder's adjusted tax basis in the
Capital Securities generally will be its initial purchase price increased by
OID, if any, previously includable in the holder's gross income to the date of
disposition and decreased by payments, if any, received on the Capital
Securities in respect of OID. The gain or loss generally will be a capital gain
or loss and generally will be a long-term capital gain or loss if the Capital
Securities have been held for more than one year.
The Capital Securities may trade at a price that does not accurately
reflect the value of accrued but unpaid interest with respect to the underlying
Junior Subordinated Debentures. A holder who uses the accrual method of
accounting for tax purposes (and a cash method holder, if the Junior
Subordinated Debentures are deemed to have been issued with OID) who disposes of
his Capital Securities between record dates for payments of distributions
thereon will be required to include accrued but unpaid interest on the Junior
Subordinated Debentures through the date of disposition in income as ordinary
income (i.e., interest or, if applicable, OID), and to add that amount to his
adjusted tax basis in his pro rata share of the underlying Junior Subordinated
Debentures that are deemed to be disposed. To the extent the selling price is
less than the holder's adjusted tax basis (which will include all accrued but
unpaid interest), a holder will recognize a capital loss. Subject to certain
limited exceptions, capital losses cannot be applied to offset ordinary income
for United States federal income tax purposes.
United States Alien Holders
For purposes of this discussion, a "United States Alien Holder" is any
corporation, individual, partnership, estate or trust that is not a U.S. Holder
for United States federal income tax purposes.
A "U.S. Holder" is a holder of Capital Securities who or which is a
citizen or individual resident (or is treated as a citizen or individual
resident) of the United States for federal income tax purposes, a corporation or
partnership (except in the case of a partnership to the extent provided in
Regulations) created or organized in or under the laws of the United States or
any political subdivision thereof, or an estate the income of which is
includable in its gross income for federal income tax purposes without regard to
its source; or a trust if, and only if, (1) a court within the United States is
able to exercise primary supervision over the administration of the trust and
(2) one or more United States trustees have the authority to control all
substantial decisions of the trust.
Under present United States federal income tax laws: (a) payments by
the Trust or any of its paying agents to any holder of a Capital Security who or
which is a United States Alien Holder will not be subject to United States
federal withholding tax if the payments are not effectively connected with the
conduct of a trade or business within the United States, and (1) the beneficial
owner of the Capital Security does not actually or constructively own 10 percent
or more of the total combined voting power of all classes of stock of Peoples
entitled to vote, (2) the beneficial owner of the Capital Security is not a
controlled foreign corporation that is related to Peoples through stock
ownership, and (3) either (A) the beneficial owner of the Capital Security
certifies to the Trust or its agent, under penalties of perjury, that it is not
a United States holder and provides its name and address in the appropriate IRS
form, or (B) a securities clearing organization, bank or other financial
institution that holds customers' securities in the ordinary course of business
(a "Financial Institution"), and holds the Capital Security in such capacity,
certifies to the Trust or its agent, under penalties of perjury, that such
statement has been received from the beneficial owner by it or by a Financial
Institution between it and the beneficial owner and furnishes the Trust or its
agent with a copy thereof; and (b) subject to certain exceptions, a United
States Alien Holder of a Capital Security will not be subject to United States
federal withholding tax on any gain realized upon the sale or other disposition
of a Capital Security. Final Treasury Regulations (the "Withholding
Regulations") would provide alternative methods for satisfying the certification
requirements described in clause (a)(3) above. The Withholding Regulations are
to be effective for certain payments made to United States Alien Holders after
December 31, 1999.
Information reporting to holders
Generally, income on the Capital Securities will be reported to holders
on Forms 1099, which forms should be mailed to holders of Capital Securities by
January 31st following each calendar year.
Backup withholding
Payments made on, and proceeds from the sale of, the Capital Securities
may be subject to a "backup" withholding tax of 31%, unless the holder complies
with certain identification and certification requirements. Any withheld amounts
will be allowed as a credit against the holder's United States federal income
tax, provided the required information is provided to the IRS.
THE UNITED STATES FEDERAL INCOME TAX DISCUSSION SET FORTH ABOVE IS
INCLUDED FOR GENERAL INFORMATION ONLY AND MAY NOT BE APPLICABLE DEPENDING UPON A
HOLDER'S PARTICULAR SITUATION. HOLDERS SHOULD CONSULT THEIR TAX ADVISORS WITH
RESPECT TO THE TAX CONSEQUENCES TO THEM OF THE PURCHASE, OWNERSHIP AND
DISPOSITION OF THE CAPITAL SECURITIES, INCLUDING THE TAX CONSEQUENCES UNDER
STATE, LOCAL, FOREIGN AND OTHER TAX LAWS AND THE POSSIBLE EFFECTS OF CHANGES IN
UNITED STATES FEDERAL OR OTHER TAX LAWS.
ERISA considerations
General
In evaluating the purchase of Capital Securities, a fiduciary of a
qualified profit-sharing, pension or stock bonus plan, including a plan for
self-employed individuals and their employees or any other employee benefit plan
subject to the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), a collective investment fund or separate account in which such plans
invest and any other investor using assets that are treated as assets of an
employee benefit plan subject to ERISA (each, a "Plan" and collectively,
"Plans") should consider: (1) whether the ownership of Capital Securities is in
accordance with the documents and instruments governing such Plan; (2) whether
the ownership of Capital Securities is solely in the interest of Plan
participants and beneficiaries and otherwise consistent with the fiduciary's
responsibilities and in compliance with the requirements of Part 4 of Title I of
ERISA, including, in particular, the diversification, prudence and liquidity
requirements of Section 404 of ERISA and the prohibited transaction provisions
of Section 406 of ERISA and Section 4975 of the Code; (3) whether the assets of
the Trust are treated as assets of the Plan; and (4) the need to value the
assets of the Plan annually. In addition, the fiduciary of an individual
retirement arrangement under Section 408 of the Code (an "IRA") considering the
purchase of Capital Securities should consider whether the ownership of Capital
Securities would result in a non-exempt prohibited transaction under Section
4975 of the Code.
Governmental plans and certain church plans (each as defined under
ERISA) are not subject to the prohibited transaction rules of ERISA and the
Code. Those plans may, however, be subject to federal, state or local laws or
regulations which may affect their investment in the Capital Securities. Any
fiduciary of such a governmental or church plan considering an investment in the
Capital Securities should determine the need for, and the availability, if
necessary, of any exemptive relief under such laws or regulations.
The fiduciary investment considerations summarized below provide a
general discussion that does not include all of the fiduciary investment
considerations relevant to Plans and, where indicated, IRA's. This summary is
based on the current provisions of ERISA and the Code and regulations and
rulings thereunder, and may be changed (perhaps adversely and with retroactive
effect) by future legislative, administrative or judicial actions.
PLANS AND IRA'S THAT ARE PROSPECTIVE PURCHASERS OF CAPITAL SECURITIES
SHOULD CONSULT WITH AND RELY UPON THEIR OWN ADVISORS IN EVALUATING THESE MATTERS
IN LIGHT OF THEIR OWN PARTICULAR CIRCUMSTANCES.
Plan Asset Regulation
Under Department of Labor regulations governing what constitutes the
assets of a Plan or IRA ("Plan Assets") for purposes of ERISA and the related
prohibited transaction provisions of the Code (the "Plan Asset Regulation," 29
C.F.R. Sec. 25103-101), when a Plan or IRA acquires an equity interest in
another entity, and that interest does not represent a "publicly offered
security" nor a security issued by an investment company registered under the
Investment Company Act, the Plan's assets include both the equity interest and
an undivided interest in each of the underlying assets of the entity, unless it
is established either that the entity is an operating company or that equity
participation in the entity by "benefit plan investors," as defined in the Plan
Asset Regulation, is not "significant." For purposes of the Plan Asset
Regulation, the Trust will be neither an investment company nor an operating
company.
Under the Plan Asset Regulation, equity participation by benefit plan
investors will not be considered "significant" on any date only if immediately
after the most recent acquisition of the Capital Securities, the aggregate
interest in the Capital Securities held by benefit plan investors will be less
than 25% of the aggregate outstanding principal amount of the Capital
Securities. Although it is possible that the equity participation by benefit
plan investors on any date will not be "significant" for purposes of the Plan
Asset Regulation, that result cannot be assured. Consequently, if Plans, IRA's
or investors using assets of Plans purchase the Capital Securities, the Trust's
assets could be deemed to be "plan assets" of those Plans and/or IRA's for
purposes of the fiduciary responsibility provisions of ERISA and the prohibited
transactions rules of ERISA and the Code. Under ERISA and the Code, any person
who exercises any authority or control respecting the management or disposition
of the assets of a Plan or IRA is considered to be fiduciary of such Plan or
IRA. The Property Trustee could therefore become a fiduciary of the Plans and
IRA's that invest in the Capital Securities and be subject to the general
fiduciary requirements of ERISA in exercising its authority with respect to the
management of the assets of the Trust. However, the Property Trustee will have
only limited discretionary authority with respect to the Trust assets and the
remaining functions and responsibilities performed by the Property Trustee will
be for the most part custodial and ministerial in nature.
Prohibited transactions
Each of the Trust, Peoples (the obligor with respect to the Junior
Subordinated Debentures held by the Trust) and their affiliates or the Property
Trustee may be a party in interest or a disqualified person with respect to a
Plan or IRA investing in the Capital Securities. Therefore, such investment by a
Plan or IRA may give rise to a prohibited transaction. Consequently, before
investing in the Capital Securities or acquiring Junior Subordinated Debentures,
any person who is, or who is acquiring those securities for, or on behalf of, a
Plan or IRA should determine that either a statutory or an administrative
exemption from the prohibited transaction rules discussed below or otherwise
available is applicable to such investment in the Capital Securities, or that
such investment in, or acquisition of, such securities will not result in a
non-exempt prohibited transaction.
The statutory or administrative exemptions from the prohibited
transaction rules under ERISA and the Code which may be available to a Plan or
IRA which is investing in the Capital Securities include: (i) Prohibited
Transaction Class Exemption ("PTCE") 90-1, regarding investments by insurance
company pooled separate accounts; (ii) PTCE 91-38, regarding investments by bank
collective investment funds; (iii) PTCE 84-14, regarding transactions effected
by qualified professional asset managers; (iv) PTCE 96-23, regarding
transactions effected by in-house asset managers; and (v) PTCE 95-60, regarding
investments by insurance company general accounts (collectively referred to as
the "ERISA Investor Exemptions").
No person who is, or who in acquiring Capital Securities is, using the
assets of, a Plan or IRA may acquire Capital Securities unless one of the ERISA
Investor Exemptions or another applicable exemption is available to the Plan or
IRA, or such acquisition or holding of Capital Securities will not result in a
non-exempt Prohibited Transaction. The acquisition of the Capital Securities by
any person who is, or who in acquiring such Capital Securities is, using the
assets of, a Plan or IRA shall be deemed to constitute a representation by such
person to the Trust, Peoples and the Initial Purchaser either that: (a) it is
not a Plan, IRA, trustee or other person acting on behalf of a Plan or IRA or
other person or entity using the assets of any Plan or IRA to finance such
purchase; or (b) the acquisition will not result in a prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code for which there is no
applicable statutory or administrative exemption.
THE DISCUSSION OF ERISA IN THIS PROSPECTUS IS GENERAL IN NATURE AND IS
NOT INTENDED TO BE ALL INCLUSIVE. ANY FIDUCIARY OF A PLAN, IRA, GOVERNMENTAL
PLAN OR CHURCH PLAN CONSIDERING AN INVESTMENT IN THE CAPITAL SECURITIES SHOULD
CONSULT WITH ITS LEGAL ADVISORS REGARDING THE CONSEQUENCES OF SUCH INVESTMENT
AND CONSIDER WHETHER THE PLAN OR IRA CAN MAKE THE REPRESENTATIONS NOTED ABOVE.
FURTHER, THE SALE OF INVESTMENTS TO PLANS AND IRA'S IS IN NO RESPECT A
REPRESENTATION BY THE TRUST, PEOPLES, THE PROPERTY TRUSTEE, THE INITIAL
PURCHASER OR ANY OTHER PERSON ASSOCIATED WITH THE SALE OF THE CAPITAL SECURITIES
THAT SUCH SECURITIES MEET ALL RELEVANT LEGAL REQUIREMENTS WITH RESPECT TO
INVESTMENTS BY PLANS AND IRA'S GENERALLY OR ANY PARTICULAR PLAN, OR THAT SUCH
SECURITIES ARE OTHERWISE APPROPRIATE FOR PLANS AND IRA'S GENERALLY OR ANY
PARTICULAR PLAN. ANY PURCHASER PROPOSING TO ACQUIRE CAPITAL SECURITIES WITH
ASSETS OF ANY PLAN OR IRA SHOULD CONSULT WITH ITS COUNSEL.
Plan of distribution
Each broker-dealer that receives Exchange Capital Securities for its
own account in connection with the exchange offer must acknowledge that it will
deliver a prospectus in connection with any resale of such Exchange Capital
Securities. This Prospectus, as it may be amended or supplemented from time to
time, may be used by Participating Broker-Dealers during the period referred to
below in connection with resales of Exchange Capital Securities received in
exchange for Original Capital Securities if the Original Capital Securities were
acquired by the Participating Broker-Dealers for their own accounts as a result
of market-making activities or other trading activities. Peoples and the Trust
have agreed that this Prospectus, as it may be amended or supplemented from time
to time, may be used by a Participating Broker-Dealer in connection with resales
of those Exchange Capital Securities for a period ending 90 days after the
expiration date (subject to extension under the limited circumstances described
in this Prospectus) or, if earlier, when all Exchange Capital Securities have
been disposed of by the Participating Broker-Dealer. However, a Participating
Broker-Dealer who intends to use this Prospectus in connection with the resale
of Exchange Capital Securities received in exchange for Original Capital
Securities pursuant to the exchange offer must notify Peoples or the Trust, or
cause Peoples or the Trust to be notified, on or prior to the expiration date,
that it is a Participating Broker-Dealer. This notice may be given in the space
provided for that purpose in the Letter of Transmittal or may be delivered to
the exchange agent at one of the addresses included under "The Exchange
Offer3/4Exchange agent." See "The Exchange Offer3/4Resale of Exchange Capital
Securities."
Neither Peoples nor the Trust will receive any cash proceeds from the
issuance of the Exchange Capital Securities offered hereby. Exchange Capital
Securities received by broker-dealers for their own accounts in connection with
the exchange offer may be sold from time to time in one or more transactions in
the over-the-counter market, in negotiated transactions, through the writing of
options on the Exchange Capital Securities or a combination of these methods of
resale, at market prices prevailing at the time of resale, at prices related to
those prevailing market prices or at negotiated prices. Any resale may be made
directly to purchasers or to or through brokers or dealers who may receive
compensation in the form of commissions or concessions from any broker-dealer
and/or the purchasers of any Exchange Capital Securities.
Any broker-dealer that resells Exchange Capital Securities that were
received by it for its own account in connection with the exchange offer and any
broker or dealer that participates in a distribution of Exchange Capital
Securities may be deemed to be an "underwriter" within the meaning of the
Securities Act, and any profit on any resale of Exchange Capital Securities and
any commissions or concessions received by these persons may be deemed to be
underwriting compensation under the Securities Act. The Letter of Transmittal
states that by acknowledging that it will deliver and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.
Legal matters
Certain matters of Delaware law relating to the validity of the
Exchange Capital Securities and the creation of PEBO Capital Trust I will be
passed upon on behalf of the Trust by Richards, Layton & Finger, P.A., special
Delaware counsel to the Trust and Peoples. The validity of the Exchange
Guarantee and the Exchange Junior Subordinated Debentures will be passed upon
for Peoples by Vorys, Sater, Seymour and Pease LLP. Certain matters relating to
United States federal income tax considerations will be passed upon for Peoples
by Vorys, Sater, Seymour and Pease LLP.
Experts
The consolidated financial statements of Peoples as of December 31,
1998 and 1997, and for each of the years in the three-year period ended December
31, 1998 incorporated by reference in Peoples' Annual Report on Form 10K for the
fiscal year ended December 31, 1998, have been audited by Ernst & Young LLP,
independent auditors, as set forth in their report thereon incorporated by
reference therein and incorporated in this Prospectus by reference. Such
consolidated financial statements are incorporated in this Prospectus by
reference in reliance upon such report given on the authority of said firm as
experts in accounting and auditing.
You should rely only on the information contained in this Prospectus or to which
you have been referred by us. We have not authorized anyone to provide you with
information that is different. The information in this Prospectus may not be
accurate beyond the date indicated below, regardless of when this Prospectus is
delivered or when the securities described in this Prospectus are sold. This
Prospectus is not an offer to sell these securities and it is not soliciting an
offer to buy these securities in any state where the offer or sale is not
permitted.
TABLE OF CONTENTS Page
Where you can find more information........................................... 3
Incorporation by reference ................................................... 3
Forward-looking statements ................................................... 4
Summary ...................................................................... 5
Risk factors ................................................................ 16
Use of proceeds ............................................................. 29
Accounting treatment ........................................................ 29
Capitalization .............................................................. 30
Selected consolidated financial and other data of Peoples ................... 31
Peoples Bancorp Inc.......................................................... 34
Regulation and supervision .................................................. 37
PEBO Capital Trust I ........................................................ 38
The exchange offer .......................................................... 39
Description of Exchange Securities; Comparison to Original Securities ....... 51
Description of Capital Securities ........................................... 51
Description of Junior Subordinated Debentures ............................... 65
Description of Guarantee .................................................... 78
Relationship among the Capital Securities, the Junior Subordinated Debentures
and the Guarantee ...................................................... 81
Certain federal income tax consequences ..................................... 83
ERISA considerations ........................................................ 88
Plan of distribution ........................................................ 90
Legal matters ............................................................... 91
Experts ..................................................................... 92
$30,000,000
PEBO CAPITAL TRUST I
Offer to exchange its
8.62% Series B Capital Securities
(liquidation amount $1,000 per Series B 8.62% Capital Security)
which have been registered under the Securities Act of 1933
for any and all of its outstanding
8.62% Series A Capital Securities
(liquidation amount $1,000 per Series A 8.62%Capital Security)
fully and unconditionally
guaranteed, as described herein, by
Peoples Bancorp Inc.
-----------------------------------------
PROSPECTUS
-----------------------------------------
______________, 1999
Part II
Information not required in prospectus
Item 20. Indemnification of Directors and Officers.
Division (E) of Section 1701.13 of the Ohio Revised Code governs
indemnification by an Ohio corporation and provides as follows:
(E)(1) A corporation may indemnify or agree to indemnify any 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 the corporation, by reason of the fact that he is
or was a director, officer, employee, or agent of the corporation, or is
or was serving at the request of the corporation as a director, trustee,
officer, employee, member, manager, or agent of another corporation,
domestic or foreign, nonprofit or for profit, a limited liability
company, or a partnership, joint venture, trust, or other enterprise,
against expenses, including attorney's 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 corporation, and, with respect to any criminal
action or proceeding, if he had no reasonable cause to believe his
conduct was unlawful. The termination of any action, suit, or proceeding
by judgment, order, settlement, or conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption
that the person did not act in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the
corporation, and, with respect to any criminal action or proceeding, he
had reasonable cause to believe that his conduct was unlawful.
(2) A corporation may indemnify or agree to indemnify any 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 corporation to procure a judgment in its favor, by reason of the
fact that he is or was a director, officer, employee, or agent of the
corporation, or is or was serving at the request of the corporation as a
director, trustee, officer, employee, member, manager, or agent of
another corporation, domestic or foreign, nonprofit or for profit, a
limited liability company, or a partnership, joint venture, trust, or
other enterprise, against expenses, including attorney's 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 corporation, except that no indemnification shall be
made in respect of any of the following:
(a) Any claim, issue, or matter as to which such person is
adjudged to be liable for negligence or misconduct in the
performance of his duty to the corporation unless, and only to
the extent that, the court of common pleas or the court in which
such action or suit was brought determines, 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 as the court
of common pleas or such other court shall deem proper;
(b) Any action or suit in which the only liability asserted
against a director is pursuant to section 1701.95 of the Revised
Code.
(3) To the extent that a director, trustee, officer, employee,
member, manager, or agent has been successful on the merits or otherwise
in defense of any action, suit, or proceeding referred to in division
(E)(1) or (2) of this section, or in defense of any claim, issue, or
matter therein, he shall be indemnified against expenses, including
attorney's fees, actually and reasonably incurred by him in connection
with the action, suit, or proceeding.
(4) Any indemnification under division (E)(1) or (2) of this section,
unless ordered by a court, shall be made by the corporation only as
authorized in the specific case, upon a determination that
indemnification of the director, trustee, officer, employee, member,
manager, or agent is proper in the circumstances because he has met the
applicable standard of conduct set forth in division (E)(1) or (2) of
this section. Such determination shall be made as follows:
(a) By a majority vote of a quorum consisting of directors of the
indemnifying corporation who were not and are not parties to or
threatened with the action, suit, or proceeding referred to in
division (E)(1) or (2) of this section;
(b) If the quorum described in division (E)(4)(a) of this section
is not obtainable or if a majority vote of a quorum of
disinterested directors so directs, in a written opinion by
independent legal counsel other than an attorney, or a firm
having associated with it an attorney, who has been retained by
or who has performed services for the corporation or any person
to be indemnified within the past five years;
(c) By the shareholders;
(d) By the court of common pleas or the court in which the
action, suit, or proceeding referred to in division (E)(1) or (2)
of this section was brought.
Any determination made by the disinterested directors under division
(E)(4)(a) or by independent legal counsel under division (E)(4)(b) of
this section shall be promptly communicated to the person who threatened
or brought the action or suit by or in the right of the corporation
under division (E)(2) of this section, and, within ten days after
receipt of such notification, such person shall have the right to
petition the court of common pleas or the court in which such action or
suit was brought to review the reasonableness of such determination.
(5)(a) Unless at the time of a director's act or omission that is the
subject of an action, suit, or proceeding referred to in division (E)(1)
or (2) of this section, the articles or the regulations of a corporation
state, by specific reference to this division, that the provisions of
this division do not apply to the corporation and unless the only
liability asserted against a director in an action, suit, or proceeding
referred to in division (E)(1) or (2) of this section is pursuant to
section 1701.95 of the Revised Code, expenses, including attorney's
fees, incurred by a director in defending the action, suit or proceeding
shall be paid by the corporation as they are incurred, in advance of the
final disposition of the action, suit, or proceeding, upon receipt of an
undertaking by or on behalf of the director in which he agrees to do
both of the following:
(i) Repay such amount if it is proved by clear and convincing
evidence in a court of competent jurisdiction that his action or
failure to act involved an act or omission undertaken with
deliberate intent to cause injury to the corporation or
undertaken with reckless disregard for the best interests of the
corporation;
(ii) Reasonably cooperate with the corporation concerning the
action, suit, or proceeding.
(b) Expenses, including attorney's fees, incurred by a director,
trustee, officer, employee, member, manager, or agent in defending any
action, suit, or proceeding referred to in division (E)(1) or (2) of
this section, may be paid by the corporation as they are incurred, in
advance of the final disposition of the action, suit, or proceeding, as
authorized by the directors in the specific case, upon receipt of an
undertaking by or on behalf of the director, trustee, officer, employee,
member, manager, or agent to repay such amount, if it ultimately is
determined that he is not entitled to be indemnified by the corporation.
(6) The indemnification authorized by this section shall not be
exclusive of, and shall be in addition to, any other rights granted to
those seeking indemnification under the articles, the regulations, any
agreement, a vote of shareholders or disinterested directors, or
otherwise, both as to action in their official capacities and as to
action in another capacity while holding their offices or positions, and
shall continue as to a person who has ceased to be a director, trustee,
officer, employee, member, manager, or agent and shall inure to the
benefit of the heirs, executors, and administrators of such a person.
(7) A corporation may purchase and maintain insurance or furnish
similar protection, including, but not limited to, trust funds, letters
of credit, or self-insurance, on behalf of or for any person who is or
was a director, officer, employee, or agent of the corporation, or is or
was serving at the request of the corporation as a director, trustee,
officer, employee, member, manager, or agent of another corporation,
domestic or foreign, nonprofit or for profit, a limited liability
company, or a partnership, joint venture, trust, or other enterprise,
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
corporation would have the power to indemnify him against such liability
under this section. Insurance may be purchased from or maintained with a
person in which the corporation has a financial interest.
(8) The authority of a corporation to indemnify persons pursuant to
division (E)(1) or (2) of this section does not limit the payment of
expenses as they are incurred, indemnification, insurance, or other
protection that may be provided pursuant to divisions (E)(5),(6), and
(7) of this section. Divisions (E)(1) and (2) of this section do not
create any obligation to repay or return payments made by the
corporation pursuant to division (E)(5),(6) or (7).
(9) As used in division (E) of this section, "corporation" includes all
constituent entities in a consolidation or merger and the new or
surviving corporation, so that any person who is or was a director,
officer, employee, trustee, member, manager, or agent of such a
constituent entity, or is or was serving at the request of such
constituent entity as a director, trustee, officer, employee, member,
manager, or agent of another corporation, domestic or foreign, nonprofit
or for profit, a limited liability company, or a partnership, joint
venture, trust, or other enterprise, shall stand in the same position
under this section with respect to the new or surviving corporation as
he would if he had served the new or surviving corporation in the same
capacity.
Article FIVE of the Company's Code of Regulations governs
indemnification by the Registrant and provides as follows:
Section 5.01. Mandatory Indemnification.
----------------------------------------
The corporation shall indemnify any officer or director of the
corporation 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 (including,
without limitation, any action threatened or instituted by or in the
right of the corporation), by reason of the fact that he is or was a
director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, trustee,
officer, employee or agent of another corporation (domestic or foreign,
nonprofit or for profit), partnership, joint venture, trust or other
enterprise, against expenses (including, without limitation, attorneys'
fees, filing fees, court reporters' fees and transcript costs),
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 corporation, and with
respect to any criminal action or proceeding, he had no reasonable
cause to believe his conduct was unlawful. A person claiming
indemnification under this Section 5.01 shall be presumed, in respect
of any act or omission giving rise to such claim for indemnification,
to have acted in good faith and in a manner he reasonably believed to
be in or not opposed to the best interests of the corporation, and with
respect to any criminal matter, to have had no reasonable cause to
believe his conduct was unlawful, and the termination of any action,
suit or proceeding by judgment, order,settlement or conviction, or upon
a plea of nolo contendere or its equivalent, shall not, of itself,
rebut such presumption.
Section 5.02. Court-Approved Indemnification.
----------------------------------------------
Anything contained in the Regulations or elsewhere to the contrary
notwithstanding:
(A) the corporation shall not indemnify any officer or director of the
corporation who was a party to any completed action or suit instituted
by or in the right of the corporation to procure a judgment in its favor
by reason of the fact that he is or was a director, officer, employee or
agent of the corporation, or is or was serving at the request of the
corporation as a director, trustee, officer, employee or agent of
another corporation (domestic or foreign, nonprofit or for profit),
partnership, joint venture, trust or other enterprise, in respect of any
claim, issue or matter asserted in such action or suit as to which he
shall have been adjudged to be liable for acting with reckless disregard
for the best interests of the corporation or misconduct (other than
negligence) in the performance of his duty to the corporation unless and
only to the extent that the Court of Common Pleas of Washington County,
Ohio or the court in which such action or suit was brought shall
determine upon application that, despite such adjudication of liability,
and in view of all the circumstances of the case, he is fairly and
reasonably entitled to such indemnity as such Court of Common Pleas or
such other court shall deem proper; and
(B) the corporation shall promptly make any such unpaid indemnification
as is determined by a court to be proper as contemplated by this Section
5.02.
Section 5.03. Indemnification for Expenses. Anything contained in the
-------------------------------------------
Regulations or elsewhere to the contrary notwithstanding, to the extent
that an officer or director of the corporation has been successful on
the merits or otherwise in defense of any action, suit or proceeding
referred to in Section 5.01, or in defense of any claim, issue or matter
therein, he shall be promptly indemnified by the corporation against
expenses (including, without limitation, attorneys' fees, filing fees,
court reporters' fees and transcript costs) actually and reasonably
incurred by him in connection therewith.
Section 5.04. Determination Required. Any indemnification required
-------------------------------------
under Section 5.01 and not precluded under Section 5.02 shall be made by
the corporation only upon a determination that such indemnification of
the officer or director is proper in the circumstances because he has
met the applicable standard of conduct set forth in Section 5.01. Such
determination may be made only (A) by a majority vote of a quorum
consisting of directors of the corporation who were not and are not
parties to, or threatened with, any such action, suit or proceeding, or
(B) if such a quorum is not obtainable or if a majority of a quorum of
disinterested directors so directs, in a written opinion by independent
legal counsel other than an attorney, or a firm having associated with
it an attorney, who has been retained by or who has performed services
for the corporation, or any person to be indemnified, within the past
five years, or (C) by the shareholders, or (D) by the Court of Common
Pleas of Washington County, Ohio or (if the corporation is a party
thereto) the court in which such action, suit or proceeding was brought,
if any; any such determination may be made by a court under division (D)
of this Section 5.04 at any time [including, without limitation, any
time before, during or after the time when any such determination may be
requested of, be under consideration by or have been denied or
disregarded by the disinterested directors under division (A) or by
independent legal counsel under division (B) or by the shareholders
under division (C) of this Section 5.04]; and no failure for any reason
to make any such determination, and no decision for any reason to deny
any such determination, by the disinterested directors under division
(A) or by independent legal counsel under division (B) or by the
shareholders under division (C) of this Section 5.04 shall be evidence
in rebuttal of the presumption recited in Section 5.01. Any
determination made by the disinterested directors under division (A) or
by independent legal counsel under division (B) of this Section 5.04 to
make indemnification in respect of any claim, issue or matter asserted
in an action or suit threatened or brought by or in the right of the
corporation shall be promptly communicated to the person who threatened
or brought such action or suit, and within ten (10) days after receipt
of such notification such person shall have the right to petition the
Court of Common Pleas of Washington County, Ohio or the court in which
such action or suit was brought, if any, to review the reasonableness of
such determination.
Section 5.05. Advances for Expenses. Expenses (including, without
------------------------------------
limitation, attorneys' fees, filing fees, court reporters' fees and
transcript costs) incurred in defending any action, suit or proceeding
referred to in Section 5.01 shall be paid by the corporation in advance
of the final disposition of such action, suit or proceeding to or on
behalf of the officer or director promptly as such expenses are incurred
by him, but only if such officer or director shall first agree, in
writing, to repay all amounts so paid in respect of any claim, issue or
other matter asserted in such action, suit or proceeding in defense of
which he shall not have been successful on the merits or otherwise:
(A) if it shall ultimately be determined as provided in Section 5.04
that he is not entitled to be indemnified by the corporation as provided
under Section 5.01; or
(B) if, in respect of any claim, issue or other matter asserted by or
in the right of the corporation in such action or suit, he shall have
been adjudged to be liable for acting with reckless disregard for the
best interests of the corporation or misconduct (other than negligence)
in the performance of his duty to the corporation, unless and only to
the extent that the Court of Common Pleas of Washington County, Ohio or
the court in which such action or suit was brought shall determine upon
application that, despite such adjudication of liability, and in view of
all the circumstances, he is fairly and reasonably entitled to all or
part of such indemnification.
Section 5.06. Article Five Not Exclusive. The indemnification provided
-----------------------------------------
by this Article Five shall not be exclusive of, and shall be in addition
to, any other rights to which any person seeking indemnification may be
entitled under the Articles or the Regulations or any agreement, vote of
shareholders or disinterested directors, or otherwise, both as to action
in his official capacity and as to action in another capacity while
holding such office, and shall continue as to a person who has ceased to
be an officer or director of the corporation and shall inure to the
benefit of the heirs, executors, and administrators of such a person.
Section 5.07. Insurance. The corporation may purchase and maintain
------------------------
insurance or furnish similar protection, including but not limited to
trust funds, letters of credit, or self-insurance, on behalf of any
person who is or was a director, officer, employee or agent of the
corporation, or is or was serving at the request of the corporation as a
director, trustee, officer, employee, or agent of another corporation
(domestic or foreign, nonprofit or for profit), partnership, joint
venture, trust or other enterprise, 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 corporation would have the
obligation or the power to indemnify him against such liability under
the provisions of this Article Five. Insurance may be purchased from or
maintained with a person in which the corporation has a financial
interest.
Section 5.08. Certain Definitions. For purposes of this Article Five,
-----------------------------------
and as examples and not by way of limitation:
(A) A person claiming indemnification under this Article Five shall be
deemed to have been successful on the merits or otherwise in defense of
any action, suit or proceeding referred to in Section 5.01, or in
defense of any claim, issue or other matter therein, if such action,
suit or proceeding shall be terminated as to such person, with or
without prejudice, without the entry of a judgment or order against him,
without a conviction of him, without the imposition of a fine upon him
and without his payment or agreement to pay any amount in settlement
thereof (whether or not any such termination is based upon a judicial or
other determination of the lack of merit of the claims made against him
or otherwise results in a vindication of him); and
(B) References to an "other enterprise" shall include employee benefit
plans; references to a "fine" shall include any excise taxes assessed on
a person with respect to an employee benefit plan; and references to
"serving at the request of the corporation" shall include any service as
a director, officer, employee or agent of the corporation which imposes
duties on, or involves services by, such director, officer, employee or
agent with respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a manner he
reasonably believed to be in the best interests of the participants and
beneficiaries of an employee benefit plan shall be deemed to have acted
in a manner "not opposed to the best interests of the corporation"
within the meaning of that term as used in this Article Five.
Section 5.09. Venue. Any action, suit or proceeding to determine a
--------------------
claim for indemnification under this Article Five may be maintained by
the person claiming such indemnification, or by the corporation, in the
Court of Common Pleas of Washington County, Ohio. The corporation and
(by claiming such indemnification) each such person consent to the
exercise of jurisdiction over its or his person by the Court of Common
Pleas of Washington County, Ohio in any such action, suit or proceeding.
The Registrant has purchased insurance coverage under a policy which
insures directors and officers against certain liabilities which might be
incurred by them in such capacities.
Section 10.4(a) of the Amended and Restated Declaration of Trust of
PEBO Capital Trust I, dated as of April 20, 1999, governs indemnification by
Peoples Bancorp Inc. (the "Sponsor") of the Administrative Trustees of the Trust
(for purposes of Section 10.4 defined as "Company Indemnified Persons"). That
Section provides as follows:
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 the Trust) by
reason of the fact that he is or was a Company Indemnified
Person, against expenses (including attorneys' fees and
expenses), 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 and
expenses) 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) To the extent that a Company
Indemnified Person shall be successful on the merits or
otherwise (including dismissal of an action without prejudice
or the settlement of an action without admission of liability)
in defense of any action, suit or proceeding referred to in
paragraphs (i) and (ii) of this Section 10.4(a), or in defense
of any claim, issue or matter therein, he shall be
indemnified, to the full extent permitted by law, against
expenses (including attorneys' fees) actually and reasonably
incurred by him in connection therewith.
(iv) 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.
(v) Expenses (including attorneys' fees and
expenses) actually and reasonably 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) by the
Common Security Holder of the Trust, that, based upon the
facts known to the Administrative Trustees, counsel or the
Common Security Holder at the time such determination is made,
such Company Indemnified Person acted in bad faith or in a
manner that the Common Security Holder 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 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 a Company Indemnified Person deliberately
breached his duty to the Trust or its Common or Capital
Security Holders.
(vi) 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 Capital 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.
(vii) 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
Debenture Issuer would have the power to indemnify him against
such liability under the provisions of this Section 10.4(a).
(viii) 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, merger or conversion, 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.
(ix) 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.
Item 21. Exhibits and financial statement schedules
The following exhibits are filed as part of this Registration
Statement:
Exhibit No. Description
----------- -----------
4.1 Indenture, dated as of April 20, 1999, between Peoples Bancorp Inc.
and Wilmington Trust Company, as Debenture Trustee, relating to Junior
Subordinated Deferrable Interest Debentures
4.2 Form of Certificate of Series B 8.62% Junior Subordinated Deferrable
Interest Debenture
4.3 Form of Certificate of Series A 8.62% Junior Subordinated Deferrable
Interest Debenture
4.4 Certificate of Trust of PEBO Capital Trust I
4.5 Amended and Restated Declaration of Trust of PEBO Capital Trust I,
dated as of April 20, 1999
4.6 Form of Common Security
4.7 Form of Series B 8.62% Capital Security Certificate
4.8 Form of Series A 8.62% Capital Security Certificate
4.9 Form of Series B Capital Securities Guarantee Agreement between
Peoples Bancorp Inc. and
Wilmington Trust Company, as Guarantee Trustee, relating to Series
B 8.62% Capital Securities
4.10 Form of Series A Capital Securities Guarantee Agreement between Peoples
Bancorp Inc. and Wilmington Trust Company, as Guarantee Trustee,
relating to Series A 8.62% Capital Securities.
4.11 Registration Rights Agreement, dated April 20, 1999, among Peoples
Bancorp Inc., PEBO Capital Trust I and Sandler O'Neill & Partners, L.P.
5.1 Opinion and consent of Vorys, Sater, Seymour and Pease
LLP as to the validity of the Series B 8.62% Junior
Subordinated Deferrable Interest Debentures and the
Series B Capital Securities Guarantee to be issued by
Peoples Bancorp Inc.
5.2 Opinion and consent of Richards, Layton & Finger, P.A. as to the
validity of the Series B 8.62% Capital Securities
8.0 Opinion of Vorys, Sater, Seymour and Pease LLP as to certain
federal income tax matters
23.1 Consent of Ernst & Young LLP
23.2 Consent of Vorys, Sater, Seymour and Pease LLP (included in Exhibit
5.1)
23.3 Consent of Richards, Layton & Finger, P.A. (included in
Exhibit 5.2) 24.0 Power of Attorney of Certain Officers and Directors
of Peoples Bancorp Inc. 25.1 Form T1 Statement of Eligibility of
Wilmington Trust Company to act as Debenture Trustee under the Indenture
25.2 Form T1 Statement of Eligibility of Wilmington Trust
Company to act as Property Trustee under the Amended and
Restated Declaration of Trust of PEBO Capital Trust I
25.3 Form T1 Statement of Eligibility of Wilmington Trust Company to act as
Guarantee Trustee under the Series B Capital Securities Guarantee
Agreement for the benefit of the holders of Series B 8.62% Capital
Securities
99.1 Form of Letter of Transmittal
99.2 Form of Notice of Guaranteed Delivery
Item 12. Undertakings
A. Each of the undersigned Registrants hereby undertakes:
(1) To file, during any period in which offers or sales or
being made, a post-effective amendment to this Registration Statement:
(i) To include any prospectus required by Section 10(a)(3)
of the Securities Act of 1933;
(ii)To reflect in the Prospectus any facts or events arising
after the effective date of this Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the Registration
Statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of
the estimated maximum refering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement; and
(iii) To include any material information with
respect to the plan of distribution not previously disclosed in the
Registration Statement or any material change to such information in the
Registration Statement.
(2) That, for the purpose of determining any liability under
the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
B. Each of the undersigned Registrants hereby undertakes that, for the
purposes of determining any liability under the Securities Act of 1933, each
filing of a Registrant's annual report pursuant to Section 13(a) or Section
15(d) of the Securities Exchange Act of 1934 (and where applicable, each filing
of an employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in this
Registration Statement shall be deemed to be a new registration statement
relating to the securities offered herein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
C. Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the provisions described in Item 20, or
otherwise, the Registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by
Registrant of expenses incurred or paid by a director, officer or controlling
person of Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, the Registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question of whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
D. Each of the undersigned Registrants hereby undertakes to respond to
requests for information that is incorporated by reference into the Prospectus
pursuant to Items 4, 10(b), 11, or 13 of this Form, within one business day of
receipt of such request, and to send the incorporated documents by first class
mail or other equally prompt means. This includes information contained in
documents filed subsequent to the effective date of the Registration Statement
through the date of responding to the request.
E. Each of the undersigned Registrants hereby undertakes to supply by
means of the post-effective amendment all information concerning a transaction,
and the company being acquired involved therein, that was not the subject of and
included in the Registration Statement when it became effective.
Signatures
Pursuant to the requirements of the Securities Act of 1933, Peoples
Bancorp Inc. has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Marietta,
State of Ohio, on June __, 1999.
PEOPLES BANCORP INC.
By: /s/ ROBERT E EVANS, PRESIDENT
Robert E. Evans, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities, on the ___ day of June, 1999.
Signature Title
- --------- -----
/s/ ROBERT E. EVANS President and Chief Executive Officer
- ---------------------------
Robert E. Evans Director
*George W. Broughton Director
- ---------------------------
George W. Broughton
*Frank L. Christy Director
- ---------------------------
Frank L. Christy
*Wilford D. Dimit Director
- ---------------------------
Wilford D. Dimit
*Barton S. Holl Director
- ---------------------------
Barton S. Holl
*Rex E. Maiden Director
- ---------------------------
Rex E. Maiden
*Paul T. Theisen Director
- ---------------------------
Paul T. Theisen
*Thomas C. Vadakin Director
- --------------------------
Thomas C. Vadakin
*Joseph H. Wesel Director
- --------------------------
Joseph H. Wesel
/s/ JOHN W. CONLON Chief Financial Officer
- -------------------------- and Principal Accounting Officer
John W. Conlon
*By: /s/ ROBERT E. EVANS
--------------------
Robert E. Evans
Attorney-in-Fact
Pursuant to the requirements of the Securities Act of 1933, PEBO
Capital Trust I has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Marietta,
State of Ohio, on June __, 1999.
PEBO CAPITAL TRUST I
By: /s/ MARK F. BRADLEY
------------------------------------------
Mark F. Bradley, as Administrative Trustee
By: /s/ JOHN W. CONLON
-----------------------------------------
John W. Conlon, as Administrative Trustee
By: /s/ CHARLES R. HUNSAKER
-----------------------------------------
Charles R. Hunsaker, as Administrative Trustee
INDEX TO EXHIBITS
-----------------
The following exhibits are filed as part of this Registration
Statement:
Exhibit No. Description
----------- -----------
4.1 Indenture, dated as of April 20, 1999, between Peoples Bancorp Inc.
and Wilmington Trust Company, as Debenture Trustee, relating to Junior
Subordinated Deferrable Interest Debentures
4.2 Form of Certificate of Series B 8.62% Junior Subordinated Deferrable
Interest Debenture
4.3 Form of Certificate of Series A 8.62% Junior Subordinated Deferrable
Interest Debenture
4.4 Certificate of Trust of PEBO Capital Trust I
4.5 Amended and Restated Declaration of Trust of PEBO Capital Trust I,
dated as of April 20, 1999
4.6 Form of Common Security
4.7 Form of Series B 8.62% Capital Security Certificate
4.8 Form of Series A 8.62% Capital Security Certificate
4.9 Form of Series B Capital Securities Guarantee Agreement between
Peoples Bancorp Inc. and Wilmington Trust Company, as Guarantee
Trustee, relating to Series B 8.62% Capital Securities
4.10 Form of Series A Capital Securities Guarantee Agreement between Peoples
Bancorp Inc. and Wilmington Trust Company, as Guarantee Trustee,
relating to Series A 8.62% Capital Securities.
4.11 Registration Rights Agreement, dated April 20, 1999, among Peoples
Bancorp Inc., PEBO Capital Trust I and Sandler O'Neill & Partners, L.P.
5.1 Opinion and consent of Vorys, Sater, Seymour and Pease
LLP as to the validity of the Series B 8.62% Junior
Subordinated Deferrable Interest Debentures and the
Series B Capital Securities Guarantee to be issued by
Peoples Bancorp Inc.
5.2 Opinion and consent of Richards, Layton & Finger, P.A. as to the
validity of the Series B 8.62% Capital Securities
8.0 Opinion of Vorys, Sater, Seymour and Pease LLP as to certain
federal income tax matters 23.1 Consent of Ernst & Young LLP
23.2 Consent of Vorys, Sater, Seymour and Pease LLP (included in Exhibit
5.1)
23.3 Consent of Richards, Layton & Finger, P.A. (included in
Exhibit 5.2) 24.0 Power of Attorney of Certain Officers and Directors
of Peoples Bancorp Inc. 25.1 Form T1 Statement of Eligibility of
Wilmington Trust Company to act as Debenture Trustee under the Indenture
25.2 Form T1 Statement of Eligibility of Wilmington Trust
Company to act as Property Trustee under the Amended and
Restated Declaration of Trust of PEBO Capital Trust I
25.3 Form T1 Statement of Eligibility of Wilmington Trust Company to act as
Guarantee Trustee under the Series B Capital Securities Guarantee
Agreement for the benefit of the holders of Series B 8.62% Capital
Securities
99.1 Form of Letter of Transmittal
99.2 Form of Notice of Guaranteed Delivery
Library: Columbus; Document #: 69696v4
PEOPLES BANCORP INC.
INDENTURE
Dated as of April 20, 1999
WILMINGTON TRUST COMPANY
as Debenture Trustee
JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES
<PAGE>
Library: Columbus; Document #: 69696v4
Tie Sheet of provisions of Trust Indenture Act of 1939 with Indenture
dated as of April 20, 1999, between Peoples Bancorp Inc. and Wilmington Trust
Company, as Debenture Trustee:
ACT SECTION INDENTURE SECTION
310(a)(1) 6.09
(a)(2) 6.09
310(a)(3) N/A
(a)(4) N/A
310(a)(5) 6.09, 6.10, 6.11
310(b) N/A
310(c) 6.13
311(a) and (b) N/A
311(c) N/A
312(a) 4.01(a), 4.02(a)
312(b) and (c) 4.02(b), 4.04(c)
313(a) 4.04(a)
313(b) 4.04(a)
313(b)(2) 4.04(a)
313(c) 4.04(a)
313(d) 4.04(b)
314(a) 4.03
314(b) N/A
314(c)(1) and (2) 6.07, 13.06, 13.06
314(c)(3) N/A
314(d) N/A
314(e) 6.07, 13.06
314(f) N/A
315(a)(c) and (d) 6.01
315(b) 5.08
315(e) 5.09
316(a)(1) 5.07
316(a)(2) N/A
316( a) last sentence 9.02
316(b) 9.02
317(a) 5.05
317(b) 6.05
318 13.08
- ----------------
THIS TIE-SHEET IS NOT PART OF THE INDENTURE AS EXECUTED.
TESTIMONIUM
SIGNATURES
EXHIBIT A
INDENTURE
THIS INDENTURE, dated as of April 20, 1999, between PEOPLES BANCORP
INC. (hereinafter called "Peoples"), an Ohio corporation, and WILMINGTON TRUST
COMPANY, a Delaware banking corporation, as debenture trustee (hereinafter
called the "Debenture Trustee").
W I T N E S S E T H :
In consideration of the premises, and the purchase of the Securities
(as defined below) by the holders thereof, Peoples covenants and agrees with the
Debenture Trustee for the equal and proportionate benefit of the respective
holders from time to time of the Securities, as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01 Definitions.
The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of
this Indenture shall have the respective meanings specified in this Section
1.01. All other terms used in this Indenture which are defined in the Trust
Indenture Act of 1939, as amended (the "Trust Indenture Act"), or which are by
reference therein defined in the Securities Act of 1933, as amended (the
"Securities Act"), shall (except as herein otherwise expressly provided or
unless the context otherwise requires) have the meanings assigned to such terms
in said Trust Indenture Act and in said Securities Act as in force at the date
of this Indenture as originally executed. The following terms have the meanings
given to them in the Declaration: (i) Clearing Agency; (ii) Delaware Trustee;
(iii) Property Trustee; (iv) Administrative Trustees; (v) Capital Securities;
(vi) Direct Action; (vii) Capital Securities Guarantee; (viii) Distributions;
(ix) Initial Purchaser; (x) Common Securities; (xi) Common Securities Guarantee;
(xii) Series A Capital Securities Guarantee; (xiii) Series B Capital Securities
Guarantee; (xiv. Series A Capital Securities); and (xv) Series B Capital
Securities All accounting terms used herein and not expressly defined shall have
the meanings assigned to such terms in accordance with generally accepted
accounting principles, and the term "generally accepted accounting principles"
means such accounting principles as are generally accepted at the time of any
computation. The words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision. Headings are used for convenience of
reference only and do not affect interpretation. The singular includes the
plural and vice versa.
"Additional Sums" shall have the meaning set forth in Section 2.06(c).
"Adjusted Treasury Rate" means, with respect to any prepayment date
pursuant to Section 14.01, the rate per annum equal to: (i) the yield, under the
heading which represents the average for the immediately prior week, appearing
in the most recently published statistical release designated "H.15 (519)" or
any successor publication which is published weekly by the Federal Reserve Board
and which establishes yields on actively traded United States Treasury
securities adjusted to constant maturity under the caption "Treasury Constant
Maturities," for the maturity corresponding to the Remaining Life (if no
maturity is within three months before or three months after the maturity
corresponding to the Remaining Life, yields for the two published maturities
most closely corresponding to the Remaining Life shall be determined, and the
Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on
a straight-line basis, rounding to the nearest month) or (ii) if such release
(or any successor release) is not published during the week preceding the
calculation date or does not contain such yields, the rate per annum equal to
the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for
such prepayment date, in each case calculated on the third Business Day
preceding the prepayment date, plus: (i) 295 basis points if such prepayment
date occurs on or prior to April 20, 2000 and (ii) 250 basis points in all other
cases.
"Affiliate" shall have the meaning given to that term in Rule 405 under
the Securities Act or any successor rule thereunder.
"Authenticating Agent" shall mean any agent or agents of the Debenture
Trustee which at the time shall be appointed and acting pursuant to Section
6.14.
"Banking Subsidiary" shall mean, collectively, The Peoples Banking and
Trust Company, The First National Bank of Southeastern Ohio and Peoples Bank
FSB, each of which is a wholly-owned subsidiary of Peoples.
"Bankruptcy Law" shall mean Title 11, U.S. Code, or any similar
federal or state law for the relief of debtors.
"Board of Directors" shall mean either the Board of Directors of
Peoples or any duly authorized committee of that board.
"Board Resolution" shall mean a copy of a resolution certified by the
Secretary or an Assistant Secretary of Peoples to have been duly adopted by the
Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Debenture Trustee.
"Book-Entity Capital Securities" shall have the meaning set forth in
Section 2.05(a)(i).
"Business Day" shall mean, with respect to any series of Securities,
any day other than a Saturday or a Sunday or a day on which banking institutions
in New York, New York or Marietta, Ohio are authorized or required by law or
executive order to remain closed.
"Commission" shall mean the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or if at any time
after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.
"Common Shares" shall mean the Common Shares, without par value, of
Peoples or any other class of stock resulting from changes or reclassifications
of such Common Shares consisting solely of changes in par value, or from no par
value to par value, or from par value to no par value.
"Comparable Treasury Issue" shall mean the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
Remaining Life of the Securities that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the Remaining Life
of the Securities, provided that if no United States Treasury security has a
maturity which is within a period from three months before to three months after
the Remaining Life, the two most closely corresponding United States Treasury
securities as selected by the Quotation Agent shall be used as the Comparable
Treasury Issue, and the Adjusted Treasury Rate shall be interpolated or
extrapolated on a straight-line basis, rounding to the nearest month, using such
securities.
"Comparable Treasury Price" shall mean, with respect to any prepayment
date pursuant to Section 14.01, (i) the average of three Reference Treasury
Dealer Quotations for such prepayment date, after excluding the highest and
lowest Reference Treasury Dealer Quotations, or (ii) if the Debenture Trustee
obtains fewer than five such Reference Treasury Dealer Quotations, the average
of all such Reference Treasury Dealer Quotations.
"Compounded Interest" shall have the meaning set forth in Section
16.01.
"Corporation Request" or "Corporation Order" shall mean a written
request or order signed in the name of Peoples by an Officer and delivered to
the Debenture Trustee.
"Custodian" shall mean any receiver, trustee, assignee, liquidator, or
similar official under any Bankruptcy Law.
"Debenture Trustee" shall mean the Person identified as "Debenture
Trustee" in the preamble to this Indenture, and, subject to the provisions of
Article VI hereof, shall also include its successors and assigns as Debenture
Trustee hereunder.
"Declaration" shall mean the Amended and Restated Declaration of Trust
of the Trust, dated as of April 20, 1999, by and among Peoples, as sponsor, the
Trustee (as defined therein) and the holders, from time to time, of undivided
beneficial interests in the assets of the Trust, as amended from time to time.
"Default" shall mean any event, act or condition that with notice or
lapse of time, or both, would constitute an Event of Default.
"Defaulted Interest" shall have the same meaning set forth in Section
2.11.
"Deferred Interest" shall have the meaning set forth in Section 16.01.
"Definitive Securities" shall mean those securities issued in fully
registered certificated form not otherwise in global form.
"Depositary" shall mean, with respect to the Securities for which
Peoples shall determine that such Securities will be issued as a Global
Security, The Depository Trust Company, New York, New York, or another clearing
agency, or any successor registered as a clearing agency pursuant to Section 17A
of the Exchange Act or other applicable statute or regulation, which, in each
case, shall be designated by Peoples pursuant to Section 2.05(d).
"Dissolution Event" shall mean any event resulting in the dissolution
of the Trust pursuant to the Declaration, and the distribution of the Securities
held by the Property Trustee to the holders of the Trust Securities issued by
the Trust pro rata in accordance with the Declaration.
"Event of Default" shall mean any event specified in Section 5.01,
continued for the period of time, if any, and after the giving of the notice, if
any, therein designated.
"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.
"Exchange Offer" means the offer that may be made pursuant to the
Registration Rights Agreement: (i) by Peoples to exchange Series B Securities
for Series A Securities and to exchange a Series B Capital Securities Guarantee
for a Series A Capital Securities Guarantee and (ii) by the Trust to exchange
the Series B Capital Securities for the Series A Capital Securities.
"Extended Interest Payment Period" shall have the meaning set forth in
Section 16.01.
"Federal Reserve Board" shall mean the Board of Governors of the
Federal Reserve System.
"Global Security" shall mean, with respect to the Securities, a
Security which shall be registered in the name of the Depositary or its nominee
executed by Peoples and delivered by the Debenture Trustee to the Depositary or
pursuant to the Depositary's instruction, or if no instructions are received
then held by the Property Trustee, all in accordance with the Indenture.
"Indebtedness" shall mean: (i) every obligation of Peoples for money
borrowed; (ii) every obligation of Peoples evidenced by bonds, debentures, notes
or other similar instruments, including obligations incurred in connection with
the acquisition of property, assets or businesses; (iii) every reimbursement
obligation of Peoples with respect to letters of credit, banker's acceptances or
similar facilities issued for the account of Peoples; (iv) every obligation of
Peoples issued or assumed as the deferred purchase price of property or services
(but excluding trade accounts payable or accrued liabilities and accrued, unpaid
interest to depositors arising in the ordinary course of business); (v) every
capital lease obligation of Peoples; (vi) all indebtedness of Peoples, whether
incurred on or prior to the date of this Indenture or hereafter incurred, for
claims in respect of derivative products, including interest rate, foreign
exchange rate and commodity forward contracts, options and swaps and similar
arrangements; and (vii) every obligation of the type referred to in clauses (i)
through (vi) of another Person and all dividends of another Person the payment
of which, in either case, Peoples has guaranteed or is responsible or liable for
directly or indirectly, as obligor or otherwise.
"Indebtedness Ranking on a Parity with the Securities" shall mean (i)
Indebtedness, whether outstanding on the date of execution of this Indenture or
hereafter created, assumed or incurred, to the extent such Indebtedness by its
terms ranks pari passu with and not prior to the Securities in the right of
payment upon the happening of the dissolution, winding-up, liquidation or
reorganization of Peoples, and (ii) all other debt securities, and guarantees in
respect of those debt securities, issued to any trust other than the Trust, or a
trustee of such trust, partnership or other entity affiliated with Peoples, that
is a financing vehicle of Peoples (a "financing entity") in connection with the
issuance by such financing entity of equity securities or other securities
guaranteed by Peoples pursuant to an instrument that ranks pari passu with or
junior in right of payment to the Capital Securities Guarantee. The securing of
any Indebtedness otherwise constituting Indebtedness Ranking on a Parity with
the Securities shall not be deemed to prevent such Indebtedness from
constituting Indebtedness Ranking on a Parity with the Securities.
"Indebtedness Ranking Junior to the Securities" shall mean any
Indebtedness, whether outstanding on the date of execution of this Indenture or
hereafter created, assumed or incurred, to the extent such Indebtedness by its
terms ranks junior to and not pari passu with or prior to the Securities (and
any other Indebtedness Ranking on a Parity with the Securities) in right of
payment upon the happening of the dissolution or winding-up or liquidation or
reorganization of Peoples. The securing of any Indebtedness otherwise
constituting Indebtedness Ranking Junior to the Securities shall not be deemed
to prevent such Indebtedness from constituting Indebtedness Ranking Junior to
the Securities.
"Indenture" shall mean this instrument as originally executed or, if
amended as herein provided, as so amended.
"Initial Optional Redemption Date" shall mean May 1, 2009.
"Interest Payment Date" shall have the meaning set forth in Section
2.06(a).
"Investment Company Event" means the receipt by Peoples and the Trust
of an opinion of independent securities counsel experienced in such matters to
the effect that as a result of (a) any amendment to, or change (including any
announced prospective change) in, the laws or any regulation thereunder of the
United States or any rules, guidelines or policies of any applicable regulatory
authority for Peoples or (b) any official administrative pronouncement or
judicial decision interpreting or applying such laws or regulations, which
amendment or change is effective or which pronouncement or decision is announced
on or after the date of original issuance of the Securities, the Trust is, or
within 90 days of the date of such opinion will be, considered an Investment
Company that is required to be registered under the Investment Company Act.
"Liquidated Damages" shall have the meaning set forth in the
Registration Rights Agreement.
"Like Amount" shall mean: (i) with respect to a redemption of the Trust
Securities, Trust Securities having a liquidation amount equal to the principal
amount of Securities to be paid in accordance with their terms; and (ii) with
respect to a distribution of Securities upon the liquidation of the Trust,
Securities having a principal amount equal to the liquidation amount of the
Trust Securities of the holder to whom Securities are distributed.
"Make Whole Amount" shall mean an amount equal to the greater of (x)
100% of the principal amount of Securities to be prepaid or (y) the sum, as
determined by a Quotation Agent, of the present values of the remaining
scheduled payments of principal and interest on such Securities, discounted to
the prepayment date on a semi-annual basis (assuming a 360-day year consisting
of twelve 30-day months) at the Adjusted Treasury Rate, plus, in the case of
each of clauses (x) and (y), accrued and unpaid interest thereon, including
Compounded Interest and Additional Sums, if any, or Liquidated Damages, if any,
to the date of such prepayment.
"Maturity Date" shall mean May 1, 2029.
"Non Book-Entry Capital Securities" shall have the meaning set forth in
Section 2.05(a)(ii).
"Officers" shall mean any of the Chairman, the Vice Chairman, the Chief
Executive Officer, the President, an Executive or Senior Vice President, a Vice
President, the Chief Financial Officer, the Secretary or an Assistant Secretary
of Peoples.
"Officers' Certificate" shall mean, with respect to any Person, a
certificate signed by the Chairman, the Vice Chairman, the Chief Executive
Officer, the President, an Executive or Senior Vice President, a Vice President,
the Chief Financial Officer, and the Secretary or an Assistant Secretary
delivered to the Debenture Trustee. Any Officers' Certificate delivered by the
Trust shall be signed by at least one Administrative Trustee. Any Officers'
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Indenture shall include:
(a) a statement that each officer signing the
Certificate has read the covenant or condition and the definitions relating
thereto;
(b) a brief statement of the nature and scope of the
examination or investigation undertaken by each officer in rendering
the Certificate;
(c) a statement that each such officer has made such
examination or investigation as, in such officer's opinion, is
necessary to enable such officer to express an informed opinion as to
whether or not such covenant or condition has been complied with; and
(d) a statement as to whether, in the opinion of each such
officer, such condition or covenant has been complied with.
"Opinion of Counsel" shall mean a written opinion of counsel, who may
be an employee of Peoples, and who shall be reasonably acceptable to the
Debenture Trustee.
"Optional Prepayment Price" shall have the meaning set forth in Section
14.02(a).
"Other Debentures" shall mean all junior subordinated debentures other
than the Securities issued by Peoples from time to time and sold to trusts other
than the Trust to be established by Peoples (if any), in each case similar to
the Trust.
"Other Guarantees" shall mean all guarantees other than the Capital
Securities Guarantee and the Common Securities Guarantee issued by Peoples with
respect to preferred beneficial interests (if any) issued to trusts other than
the Trust to be established by Peoples (if any), in each case similar to the
Trust.
The term "outstanding" when used with reference to the Securities,
shall mean, subject to the provisions of Section 7.04, as of any particular
time, all Securities authenticated and delivered by the Debenture Trustee or the
Authenticating Agent under this Indenture, except:
(a) Securities theretofore cancelled by the Debenture
Trustee or the Authenticating Agent or delivered to the Debenture Trustee
for cancellation;
(b) Securities, or portions thereof, for the payment or
prepayment of which moneys in the necessary amount shall have been
deposited in trust with the Debenture Trustee or with any paying agent
(other than Peoples) or shall have been set aside and segregated in
trust by Peoples (if Peoples shall act as its own paying agent);
provided that, if such Securities, or portions thereof, are to be
prepaid prior to maturity thereof, notice of such prepayment shall have
been given as set forth in Article XIV or provision satisfactory to the
Debenture Trustee shall have been made for giving such notice; and
(c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the
terms of Section 2.08 unless proof satisfactory to Peoples and the
Debenture Trustee is presented that any such Securities are held by
bona fide holders in due course.
"PEBO Capital Trust" or the "Trust" shall mean PEBO Capital Trust I, a
Delaware business trust created for the purpose of issuing its undivided
beneficial interests in connection with the issuance of Securities under this
Indenture.
"Person" shall mean any individual, corporation, estate, partnership,
joint venture, association, joint-stock company, limited liability company,
trust, unincorporated organization or government or any agency or political
subdivision thereof.
"Predecessor Security" of any particular Security shall mean every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 2.08 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed or stolen Security.
"Prepayment Price" shall mean the Special Event Prepayment Price or the
Optional Prepayment Price, as the context requires.
"Principal Office of the Debenture Trustee," or other similar term,
shall mean the office of the Debenture Trustee, at which at any particular time
its corporate trust business shall be administered.
"Purchase Agreement" shall mean the Purchase Agreement, dated April 15,
1999, by and among Peoples, the Trust and the Initial Purchaser named therein.
"Quotation Agent" shall mean the Reference Treasury Dealer appointed by
Peoples.
"Reference Treasury Dealer" shall mean a nationally recognized U.S.
Government securities dealer
in New York, New York selected by Peoples.
"Reference Treasury Dealer Quotations" shall mean, with respect to each
Reference Treasury Dealer and any prepayment date pursuant to Section 14.01, the
average, as determined by the Debenture Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Debenture Trustee by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day
preceding such prepayment date.
"Registration Rights Agreement" means the Registration Rights
Agreement, dated as of April 20, 1999, by and among Peoples, the Trust and the
Initial Purchaser named therein, as such agreement may be amended, modified or
supplemented from time to time.
"Regulatory Capital Event" shall mean the receipt by Peoples and the
Trust of an opinion of independent bank regulatory counsel experienced in such
matters to the effect that as a result of: (a) any amendment to, or change
(including any announced prospective change) in, the laws (or any regulations
thereunder) of the United States or any rules, guidelines or policies of an
applicable regulatory authority for Peoples or the Banking Subsidiaries or (b)
any official administrative pronouncement or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of original
issuance of the Securities, the Capital Securities do not constitute, or within
90 days of the date of such opinion will not constitute, Tier 1 Capital (or its
then equivalent if Peoples were subject to such capital requirement) applied as
if Peoples (or its successors) were a bank holding company for purposes of
capital adequacy guidelines of the Federal Reserve Board (or any successor
regulatory authority with jurisdiction over bank holding companies), or any
capital adequacy guidelines as then in effect and applicable to Peoples;
provided, however, that the distribution of the Securities in connection with
the liquidation of the Trust by Peoples shall not in and of itself constitute a
Regulatory Capital Event unless such liquidation shall have occurred in
connection with a Tax Event.
"Remaining Life" shall mean the term of the Securities from any
prepayment date pursuant to Section 14.01 to the Maturity Date.
"Responsible Officer" shall mean, with respect to the Debenture
Trustee, any officer assigned to the Corporate Trust Office, including any
managing director, principal, vice president, assistant vice president,
assistant treasurer, assistant secretary or any other officer of the Debenture
Trustee customarily performing functions similar to those performed by any of
the above designated officers and having direct responsibility for the
administration of this Indenture, and also, with respect to a particular matter,
any other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.
"Restricted Security" shall mean Securities that bear or are required
to bear the legends relating to transfer restrictions under the Securities Act
set forth in Exhibit A hereto.
"Rule 144A" shall mean Rule 144A under the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission.
"Securities" shall mean the Series A Securities and the Series B
Securities.
"Securityholder," "holder of Securities," or other similar terms, shall
mean any Person in whose name at the time a particular Security is registered in
the Security Register kept by Peoples or the Debenture Trustee for that purpose
in accordance with the terms hereof.
"Security Register" shall mean (i) prior to a Dissolution Event, the
list of holders provided to the Debenture Trustee pursuant to Section 4.01, and
(ii) following a Dissolution Event, any security register maintained by a
security registrar for the Securities appointed by Peoples following the
execution of a supplemental indenture providing for transfer procedures as
provided for in Section 2.07(a).
"Senior Indebtedness" shall mean all Indebtedness, whether outstanding
on the date of execution of this Indenture, or hereafter created, assumed or
incurred, except Indebtedness Ranking on a Parity with the Securities or
Indebtedness Ranking Junior to the Securities, and any deferrals, renewals or
extensions of such Senior Indebtedness.
"Series A Securities" means Peoples' Series A 8.62% Junior Subordinated
Deferrable Interest Debentures due May 1, 2029, as authenticated and issued
under this Indenture.
"Series B Securities" means Peoples' Series B 8.62% Junior Subordinated
Deferrable Interest Debentures due May 1, 2029, as authenticated and issued
under this Indenture.
"Special Event" shall mean an Investment Company Event, Regulatory
Capital Event or a Tax Event, as the context requires.
"Special Event Prepayment Price" shall mean, with respect to any
prepayment of the Securities following a Special Event, an amount in cash equal
to the Make Whole Amount.
"Subsidiary" shall mean with respect to any Person, (i) any corporation
at least a majority of the outstanding voting stock of which is owned, directly
or indirectly, by such Person or by one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries, (ii) any general partnership, joint
venture or similar entity, at least a majority of whose outstanding partnership
or similar interests shall at the time be owned by such Person or by one or more
of its Subsidiaries, or by such Person and one or more of its Subsidiaries and
(iii) any limited partnership of which such Person or any of its Subsidiaries is
a general partner. For the purposes of this definition, "voting stock" means
shares, interests, participations or other equivalents in the equity interest
(however designated) in such Person having ordinary voting power for the
election of a majority of the directors (or the equivalent) of such Person,
other than shares, interests, participations or other equivalents having such
power only by reason of the occurrence of a contingency.
"Tax Event" shall mean the receipt by the Trust and Peoples of an
opinion of independent tax counsel experienced in such matters to the effect
that, as a result of any amendment to, or change (including any announced
prospective change) in, the laws or any regulations thereunder of the United
States or any political subdivision or taxing authority thereof or therein, or
as a result of any official administrative pronouncement or judicial decision
interpreting or applying such laws or regulations, which amendment or change is
effective or which pronouncement or decision is announced on or after the date
of original issuance of the Securities, there is more than an insubstantial risk
that (i) the Trust is, or will be within 90 days of the date of such opinion,
subject to United States federal income tax with respect to income received or
accrued on the Securities, (ii) the interest payable by Peoples on the
Securities is not, or within 90 days of the date of such opinion will not be,
deductible by Peoples, in whole or in part, for United States federal income tax
purposes or (iii) the Trust is, or will be within 90 days of the date of such
opinion, subject to more than a de minimis amount of other taxes, duties or
other governmental charges.
"Trust Securities" shall mean, collectively, the Capital Securities
and the Common Securities.
"U.S. Government Obligations" shall mean securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either case under
clauses (i) or (ii), are not callable or prepayable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of the
U.S. Government Obligation or the specific payment of interest on or principal
of the U.S. Government Obligation evidenced by such depository receipt.
ARTICLE II
SECURITIES
SECTION 2.01 Forms Generally.
The Securities and the Debenture Trustee's certificate of
authentication shall be substantially in the form of Exhibit A hereto, the terms
of which are incorporated in and made a part of this Indenture. The Securities
may have notations, legends or endorsements required by law, stock exchange
rule, agreements to which Peoples is subject or usage. Each Security shall be
dated the date of its authentication.
SECTION 2.02 Execution and Authentication.
An Officer shall sign the Securities for Peoples by manual or facsimile
signature. If an Officer whose signature is on a Security no longer holds that
office at the time the Security is authenticated, the Security shall
nevertheless be valid.
A Security shall not be valid until authenticated by the manual
signature of the Debenture Trustee. The signature of the Debenture Trustee shall
be conclusive evidence that the Security has been authenticated under this
Indenture.
The Debenture Trustee shall, upon a Corporation Order, authenticate for
original issue up to, and the aggregate principal amount of Securities
outstanding at any time may not exceed, $30,928,000 aggregate principal amount
of the Securities, except as provided in Sections 2.07, 2.08, 2.09 and 14.05.
SECTION 2.03 Form and Payment.
Except as provided in Section 2.05, the Securities shall be issued in
fully registered certificated form without interest coupons. Principal of and
premium, if any, and interest on the Securities issued in certificated form will
be payable, the transfer of such Securities will be registrable and such
Securities will be exchangeable for Securities bearing identical terms;
provided, however, that payments of interest may be made at the option of
Peoples (i) by check mailed to the holder at such address as shall appear in the
Security Register or (ii) by transfer to an account maintained by the Person
entitled thereto, provided that proper transfer instructions have been received
in writing by the relevant record date. Notwithstanding the foregoing, so long
as the holder of any Securities is the Property Trustee, the payment of the
principal of and premium, if any, and interest (including Compounded Interest
and Additional Sums, if any, or Liquidated Damages, if any) on such Securities
held by the Property Trustee will be made at such place and to such account as
may be designated by the Property Trustee.
SECTION 2.04 Legends.
(a) Except as permitted by subsection (b) of this Section 2.04 or as
otherwise determined by Peoples in accordance with applicable law, each Security
shall bear the applicable legends relating to restrictions on transfer pursuant
to the Securities Act and any other applicable securities laws in substantially
the form set forth on Exhibit A hereto.
(b) In the event of an Exchange Offer, Peoples shall issue and the
Debenture Trustee, upon Corporation Order, shall authenticate Series B
Securities in exchange for the Series A Securities accepted for exchange in the
Exchange Offer, which Series B Securities shall not bear the legends required by
subsection (a) of this Section 2.04 (other than the legend dealing with the
restriction referred to in Section 2.07(a)(ii) of this Indenture), in each case
unless the holder of such Series A Securities is either: (i) a broker-dealer who
purchased such Series A Securities directly from Peoples for resale pursuant to
Rule 144A, or any other available exemption under the Securities Act; (ii) a
Person participating in the distribution of Series A Securities; or (iii) a
Person who is an Affiliate of Peoples.
SECTION 2.05 Global Security.
(a) In connection with a Dissolution Event,
(i) if any Capital Securities are held in book-entry form
("Book-Entry Capital Securities"), a Like Amount of Definitive Securities shall
be presented to the Debenture Trustee (if an arrangement with the Depositary has
been maintained) by the Property Trustee in exchange for one or more Global
Securities (as may be required pursuant to Section 2.07), to be registered in
the name of the Depositary, or its nominee, and delivered by the Debenture
Trustee to the Depositary for crediting to the accounts of its participants
pursuant to the instructions of the Administrative Trustees; Peoples upon any
such presentation shall execute one or more Global Securities in such aggregate
principal amount and deliver the same to the Debenture Trustee for
authentication and delivery in accordance with this Indenture; and payments on
the Securities issued as a Global Security will be made to the Depositary; and
(ii) if any Capital Securities are held in certificated form,
the related Definitive Securities may be presented to the Debenture Trustee, by
the Property Trustee and any Capital Security certificates which represent
Capital Securities other than Book-Entry Capital Securities ("Non Book-Entry
Capital Securities") will be deemed to represent beneficial interests in
Securities presented to the Debenture Trustee by the Property Trustee having an
aggregate principal amount equal to the aggregate liquidation amount of the Non
Book-Entry Capital Securities until such Capital Security certificates are
presented to the security registrar for the Securities for transfer or
reissuance, at which time such Capital Security certificates will be cancelled,
and a Security in a Like Amount, registered in the name of the holder of the
Capital Security certificate or the transferee of the holder of such Capital
Security certificate, as the case may be, will be executed by Peoples and
delivered to the Debenture Trustee for authentication and delivery in accordance
with this Indenture; and upon the issuance of such Securities, Securities with
an equivalent aggregate principal amount that were presented by the Property
Trustee to the Debenture Trustee will be cancelled.
(b) The Global Securities shall represent the aggregate amount of
outstanding Securities from time to time endorsed thereon; provided, however,
that the aggregate principal amount of outstanding Securities represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges and prepayments. Any endorsement of a Global Security to
reflect the amount of any increase or decrease in the aggregate principal amount
of outstanding Securities represented thereby shall be made by the Debenture
Trustee, in accordance with instructions given by Peoples as required by this
Section 2.05.
(c) The Global Securities may be transferred, in whole but not in part,
only to the Depositary, to another nominee of the Depositary, or to a successor
Depositary selected or approved by Peoples or to a nominee of such successor
Depositary.
(d) If at any time the Depositary notifies Peoples that it is unwilling
or unable to continue as Depositary or the Depositary has ceased to be a
clearing agency registered under the Exchange Act, and, in each case, a
successor Depositary is not appointed by Peoples within 90 days after Peoples
receives such notice or becomes aware of such condition, as the case may be,
Peoples will execute, and the Debenture Trustee, upon receipt of a Corporation
Order, will authenticate and make available for delivery the Definitive
Securities, in authorized denominations, and in an aggregate principal amount
equal to the principal amount of the Global Security, in exchange for such
Global Security. If there is a Default or an Event of Default, the Depositary
shall have the right to exchange the Global Securities for Definitive
Securities. In addition, Peoples may at any time determine that the Securities
shall no longer be represented by a Global Security. In the event of such an
Event of Default or such a determination, Peoples shall execute, and subject to
Section 2.07, the Debenture Trustee, upon receipt of an Officers' Certificate
evidencing such determination by Peoples and a Corporation Order, will
authenticate and make available for delivery the Definitive Securities, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security, in exchange for such Global Security.
Upon the exchange of the Global Security for such Definitive Securities, in
authorized denominations, the Global Security shall be cancelled by the
Debenture Trustee. Such Definitive Securities issued in exchange for the Global
Security shall be registered in such names and in such authorized denominations
as the Depositary, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Debenture Trustee. The Debenture
Trustee shall deliver such Definitive Securities to the Depositary for delivery
to the Persons in whose names such Definitive Securities are so registered.
SECTION 2.06 Interest.
(a) Each Security will bear interest at the rate of 8.62% per annum
(the "Coupon Rate") from the most recent date to which interest has been paid or
duly provided for or, if no interest has been paid or duly provided for, from
April 20, 1999, until the principal thereof becomes due and payable, and at the
Coupon Rate on any overdue principal (and premium, if any) and (to the extent
that payment of such interest is enforceable under applicable law) on any
overdue installment of interest, compounded semi-annually, payable (subject to
the provisions of Article XVI) semi-annually in arrears on May 1 and November 1
of each year, commencing November 1, 1999 (each, an "Interest Payment Date"), to
the Person in whose name such Security or any predecessor Security is
registered, at the close of business on the regular record date for such
interest installment, which shall be the 15th day of the month immediately
preceding the month in which the relevant Interest Payment Date falls.
(b) Interest will be computed on the basis of a 360-day year consisting
of twelve 30-day months.
(c) During such time as the Property Trustee is the holder of any
Securities, Peoples shall pay any additional amounts on the Securities as may be
necessary in order that the amount of Distributions then due and payable by the
Trust on the outstanding Trust Securities shall not be reduced as a result of
any additional taxes, duties and other governmental charges to which the Trust
has become subject as a result of a Tax Event ("Additional Sums").
SECTION 2.07 Transfer and Exchange.
(a) Transfer Restrictions.
(i) The Series A Securities, and those Series B Securities
with respect to which any Person described in Section 2.04 (b)(i), (ii) or (iii)
is a holder, may not be transferred except in compliance with the legend
contained in Exhibit A unless otherwise determined by Peoples in accordance with
applicable law. Upon any distribution of the Securities following a Dissolution
Event, Peoples and the Debenture Trustee shall enter into a supplemental
indenture pursuant to Section 9.01 to provide for the transfer restrictions and
procedures with respect to the Securities substantially similar to those
contained in the Declaration to the extent applicable in the circumstances
existing at such time.
(ii) The Securities will be issued and may be transferred only
in blocks having an aggregate principal amount of not less than $100,000 and in
multiples of $1,000 in excess thereof. Any attempted transfer of the Securities
in a block having an aggregate principal amount of less than $100,000 shall be
deemed to be voided and of no legal effect whatsoever. Any such purported
transferee shall be deemed not to be a holder of such Securities for any
purpose, including, but not limited to the receipt of payments on such
Securities, and such purported transferee shall be deemed to have no interest
whatsoever in such Securities.
(b) General Provisions Relating to Transfers and Exchanges. To permit
registrations of transfers and exchanges, Peoples shall execute and the
Debenture Trustee shall authenticate Definitive Securities and Global Securities
at the request of the security registrar for the Securities. All Definitive
Securities and Global Securities issued upon any registration of transfer or
exchange of Definitive Securities or Global Securities shall be the valid
obligations of Peoples, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Definitive Securities or Global Securities
surrendered upon such registration of transfer or exchange.
No service charge shall be made to a holder for any registration of
transfer or exchange, but Peoples may require payment of a sum sufficient to
cover any transfer tax or similar governmental charge payable in connection
therewith.
Peoples shall not be required to: (i) issue, register the transfer of
or exchange Securities during a period beginning at the opening of business 15
days before the day of mailing of a notice of prepayment or any notice of
selection of Securities for prepayment under Article XIV hereof and ending at
the close of business on the day of such mailing; or (ii) register the transfer
of or exchange any Security so selected for prepayment in whole or in part,
except the nonprepaid portion of any Security being prepaid in part.
Prior to due presentment for the registration of a transfer of any
Security, the Debenture Trustee, Peoples and any agent of the Debenture Trustee
or Peoples may deem and treat the Person in whose name any Security is
registered as the absolute owner of such Security for the purpose of receiving
payment of principal of and premium, if any, and interest on such Securities,
and none of the Debenture Trustee, Peoples and any agents of the Debenture
Trustee or Peoples shall be affected by notice to the contrary.
(c) Exchange of Series A Securities for Series B Securities. The Series
A Securities may be exchanged for Series B Securities pursuant to the terms of
the Exchange Offer. The Debenture Trustee shall make the exchange as follows:
(1) Peoples shall present the Debenture Trustee with an Officers'
Certificate certifying the following:
(A) upon issuance of the Series B Securities, the transactions
contemplated by the Exchange Offer have been consummated; and
(B) the principal amount of Series A Securities properly tendered
in the Exchange Offer that are represented by a Global
Security and the principal amount of Series A Securities
properly tendered in the Exchange Offer that are represented
by Definitive Securities, the name of each holder of such
Definitive Securities, the principal amount properly tendered
in the Exchange Offer by each such holder and the name and
address to which Definitive Securities for Series B Securities
shall be registered and sent for each such holder.
(2) The Debenture Trustee, upon receipt of: (i) such Officers'
Certificate; (ii) and an Opinion of Counsel (x) to the effect that the Series B
Securities have been registered under Section 5 of the Securities Act and the
Indenture has been qualified under the Trust Indenture Act and (y) with respect
to the matters set forth in Section 3(p) of the Registration Rights Agreement;
(iii) the Definitive Series A Securities; and (iv) a Corporation Order, shall
authenticate (A) a Global Security representing Series B Securities in aggregate
principal amount equal to the aggregate principal amount of Series A Securities
represented by the Global Security indicated in such Officers' Certificate as
having been properly tendered and (B) Definitive Securities representing Series
B Securities registered in the names of, and in the principal amounts indicated
in, such Officers' Certificate.
(3) If the principal amount of the Global Security for the Series B
Securities is less than the principal amount of the Global Security for the
Series A Securities, the Debenture Trustee shall make an endorsement on such
Global Security for Series A Securities indicating a reduction in the principal
amount represented thereby.
(4) The Debenture Trustee shall deliver such Definitive Securities representing
Series B Securities to holders thereof as indicated in such Officers'
Certificate.
SECTION 2.08 Replacement Securities.
If any mutilated Security is surrendered to the Debenture Trustee, or
Peoples and the Debenture Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Security, Peoples shall issue and the
Debenture Trustee shall authenticate a replacement Security if the Debenture
Trustee's requirements for replacements of Securities are met. An indemnity bond
must be supplied by the holder that is sufficient in the judgment of the
Debenture Trustee and Peoples to protect Peoples, the Debenture Trustee, any
agent thereof or any Authenticating Agent from any loss that any of them may
suffer if a Security is replaced. Peoples or the Debenture Trustee may charge
for its expenses in replacing a Security.
Every replacement Security is an obligation of Peoples and shall be
entitled to all of the benefits of this Indenture equally and proportionately
with all other Securities duly issued hereunder.
SECTION 2.09 Temporary Securities.
Pending the preparation of Definitive Securities, Peoples may execute,
and upon Corporation Order the Debenture Trustee shall authenticate and make
available for delivery, temporary Securities that are printed, lithographed,
typewritten, mimeographed or otherwise reproduced, in any authorized
denomination, substantially of the tenor of the Definitive Securities in lieu of
which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the Officers executing such Securities may
determine, as conclusively evidenced by their execution of such Securities.
If temporary Securities are issued, Peoples shall cause Definitive
Securities to be prepared without unreasonable delay. The Definitive Securities
shall be printed, lithographed or engraved, or provided by any combination
thereof, or in any other manner permitted by the rules and regulations of any
applicable securities exchange, all as determined by the Officers executing such
Definitive Securities. After the preparation of Definitive Securities, the
temporary Securities shall be exchangeable for Definitive Securities upon
surrender of the temporary Securities at the office or agency maintained by
Peoples for such purpose pursuant to Section 3.02 hereof, without charge to the
holder. Upon surrender for cancellation of any one or more temporary Securities,
Peoples shall execute, and the Debenture Trustee shall authenticate and make
available for delivery, in exchange therefor the same aggregate principal amount
of Definitive Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as Definitive Securities.
SECTION 2.10 Cancellation.
Peoples at any time may deliver Securities to the Debenture Trustee for
cancellation. The Debenture Trustee and no one else shall cancel all Securities
surrendered for registration of transfer, exchange, payment, replacement or
cancellation and shall return such cancelled Securities to Peoples. Peoples may
not issue new Securities to replace Securities that have been prepaid or paid or
that have been delivered to the Debenture Trustee for cancellation.
SECTION 2.11 Defaulted Interest.
Any interest on any Security that is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called
"Defaulted Interest") shall forthwith cease to be payable to the holder on the
relevant regular record date by virtue of having been such holder; and such
Defaulted Interest shall be paid by Peoples, at its election, as provided in
clause (a) or clause (b) below:
(a) Peoples may make payment of any Defaulted Interest on
Securities to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered at the close of business on a special
record date for the payment of such Defaulted Interest, which shall be fixed in
the following manner: Peoples shall notify the Debenture Trustee in writing of
the amount of Defaulted Interest proposed to be paid on each such Security and
the date of the proposed payment, and at the same time Peoples shall deposit
with the Debenture Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Debenture Trustee for such deposit prior to the
date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this clause
provided. Thereupon the Debenture Trustee shall fix a special record date for
the payment of such Defaulted Interest which shall not be more than 15 nor less
than 10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Debenture Trustee of the notice of the proposed
payment. The Debenture Trustee shall promptly notify Peoples of such special
record date and, in the name and at the expense of Peoples, shall cause notice
of the proposed payment of such Defaulted Interest and the special record date
therefor to be mailed, first class postage prepaid, to each Securityholder at
his or her address as it appears in the Security Register, not less than 10 days
prior to such special record date. Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Securities (or their respective Predecessor Securities) are registered on
such special record date and shall be no longer payable pursuant to the
following clause (b).
(b) Peoples may make payment of any Defaulted Interest on any
Securities in any other lawful manner not inconsistent with the requirements of
any securities exchange on which such Securities may be listed, and upon such
notice as may be required by such exchange, if, after notice given by Peoples to
the Debenture Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Debenture Trustee.
SECTION 2.12 CUSIP Numbers.
Peoples in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Debenture Trustee shall use "CUSIP" numbers
in notices of prepayment as a convenience to Securityholders; provided, however,
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a prepayment and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such prepayment shall
not be affected by any defect in or omission of such numbers. Peoples will
promptly notify the Debenture Trustee of any change in the CUSIP numbers.
ARTICLE III
PARTICULAR COVENANTS OF PEOPLES
SECTION 3.01 Payment of Principal, Premium and Interest.
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Peoples covenants and agrees for the benefit of the holders of the
Securities that it will duly and punctually pay or cause to be paid the
principal of and premium, if any, and interest on the Securities at the place,
at the respective times and in the manner provided herein. Peoples further
covenants to pay any and all amounts due in respect of the Securities,
including, without limitation, Additional Sums, as may be required pursuant to
Section 2.06(c), Liquidated Damages, if any, on the dates and in the manner
required under the Registration Rights Agreement and Compounded Interest, as may
be required pursuant to Section 16.01.
SECTION 3.02 Offices for Notices and Payments, etc.
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So long as any of the Securities remain outstanding, Peoples will
maintain in Marietta, Ohio an office or agency where the Securities may be
presented for payment, an office or agency where the Securities may be presented
for registration of transfer and for exchange as in this Indenture provided and
an office or agency where notices and demands to or upon Peoples in respect of
the Securities or this Indenture may be served. Peoples will give to the
Debenture Trustee written notice of the location of any such office or agency
and of any change of location thereof. In case Peoples shall fail to maintain
any such office or agency in Ohio or shall fail to give such notice of the
location or of any change in the location thereof, presentations and demands may
be made and notices may be served at the Principal Office of the Debenture
Trustee.
In addition to any such office or agency, Peoples may from time to time
designate one or more offices or agencies outside Ohio where the Securities may
be presented for payment, for registration of transfer and for exchange and
where notices and demands to or upon Peoples in respect of the Securities or
this Indenture may be served in the manner provided in this Indenture, and
Peoples may from time to time rescind such designation, as Peoples may deem
desirable or expedient; provided, however, that no such designation or
rescission shall in any manner relieve Peoples of its obligation to maintain any
such office or agency in Ohio for the purposes above mentioned. Until otherwise
designated from time to time by Peoples in a notice to the Debenture Trustee,
any such office or agency for all of the above purposes shall be the Principal
Office of the Debenture Trustee. Peoples will give to the Debenture Trustee
prompt written notice of any such designation or rescission thereof.
SECTION 3.03 Appointments to Fill Vacancies in Debenture
Trustee's Office.
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Peoples, whenever necessary to avoid or fill a vacancy in the office of
Debenture Trustee, will appoint, in the manner provided in Section 6.10, a
Debenture Trustee, so that there shall at all times be a Debenture Trustee
hereunder.
SECTION 3.04 Provision as to Paying Agent.
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(a) If Peoples shall appoint a paying agent other than the Debenture
Trustee with respect to the Securities, it will cause such paying agent to
execute and deliver to the Debenture Trustee an instrument in which such agent
shall agree with the Debenture Trustee, subject to the provision of this Section
3.04,
(1) that it will hold all sums held by it as such agent
for the payment of the principal of and premium, if
any, or interest on the Securities (whether such sums
have been paid to it by Peoples or by any other
obligor on the Securities) in trust for the benefit
of the holders of the Securities; and
(2) that it will give the Debenture Trustee notice of any
failure by Peoples (or by any other obligor on the
Securities) to make any payment of the principal of
and premium or interest (including Additional Sums
and Liquidated Damages, if any, and Compounded
Interest, if any) on the Securities when the same
shall be due and payable.
(b) If Peoples shall act as its own paying agent, it will, on or before
each due date of the principal of and premium, if any, or interest on the
Securities, set aside, segregate and hold in trust for the benefit of the
holders of the Securities a sum sufficient to pay such principal, premium or
interest so becoming due and will notify the Debenture Trustee of any failure to
take such action and of any failure by Peoples (or by any other obligor under
the Securities) to make any payment of the principal of and premium, if any, or
interest on the Securities when the same shall become due and payable.
(c) Anything in this Section 3.04 to the contrary notwithstanding,
Peoples may, at any time, for the purpose of obtaining a satisfaction and
discharge with respect to the Securities hereunder, or for any other reason, pay
or cause to be paid to the Debenture Trustee all sums held in trust for such
Securities by the Debenture Trustee or any paying agent hereunder, as required
by this Section 3.04, such sums to be held by the Debenture Trustee upon the
trusts herein contained.
(d) Anything in this Section 3.04 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 3.04 is subject to
Sections 11.03 and 11.04.
SECTION 3.05 Certificate to Debenture Trustee.
Peoples will deliver to the Debenture Trustee on or before 120 days
after the end of each fiscal year in each year, commencing with the first fiscal
year ending after the date hereof, so long as Securities are outstanding
hereunder, an Officers' Certificate, one of the signers of which shall be the
principal executive, principal financial or principal accounting officer of
Peoples, stating that in the course of the performance by the signers of their
duties as officers of Peoples they would normally have knowledge of any Default
by Peoples in the performance of any covenants contained herein, stating whether
or not they have knowledge of any such Default and, if so, specifying each such
Default of which the signers have knowledge and the nature thereof.
SECTION 3.06 Compliance with Consolidation Provisions.
Peoples will not, while any of the Securities remain outstanding,
consolidate with, or merge into, convert into or merge into itself, or sell or
convey all or substantially all of its property to any other Person unless the
provisions of Article X hereof are complied with.
SECTION 3.07 Limitation on Dividends.
Peoples will not: (i) declare or pay any dividends or distributions on,
or redeem, purchase, acquire, or make a liquidation payment with respect to, any
of Peoples' capital stock; (ii) make any payment of principal of or premium, if
any, or interest on or repay, repurchase or redeem any debt securities of
Peoples (including Other Debentures) that rank pari passu with or junior in
right of payment to the Securities; or (iii) make any guarantee payments with
respect to any guarantee by Peoples of the debt securities of any Subsidiary of
Peoples (including Other Guarantees) if such guarantee ranks pari passu with or
junior in right of payment to the Securities (other than (a) dividends or
distributions in Peoples' Common Shares or options, warrants or rights to
subscribe for or purchase Peoples' Common Shares, (b) any declaration of a
dividend in connection with the implementation of a shareholders' rights plan,
or the issuance of shares under any such plan in the future, or the redemption
or repurchase of any such rights pursuant thereto, (c) payments under the
Capital Securities Guarantee, (d) as a result of a reclassification of Peoples'
capital stock or the exchange or conversion of one class or series of Peoples'
capital stock for another class or series of Peoples' capital stock, (e) the
purchase of fractional interests in shares of Peoples' capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security
being converted or exchanged and (f) purchases of Common Shares of Peoples
related to the issuance of Common Shares or rights under any of Peoples' benefit
or compensation plans for directors, officers or employees of Peoples or its
Subsidiaries or Peoples' dividend reinvestment plan), if at such time of the
acts described in (i), (ii) or (iii), (1) there shall have occurred any default
of which Peoples has actual knowledge that (a) is a Default or an Event of
Default and (b) in respect of which Peoples shall not have taken reasonable
steps to cure, (2) if such Securities are held by the Property Trustee, Peoples
shall be in default with respect to its payment of any obligations under the
Capital Securities Guarantee or (3) Peoples shall have given notice of its
election to exercise its right to commence an Extended Interest Payment Period
and shall not have rescinded such notice, and such Extended Interest Payment
Period or any extension thereof shall have commenced and be continuing.
SECTION 3.08 Covenants as to PEBO Capital Trust.
----------------------------------
In the event Securities are issued to the Trust or a trustee of such
trust in connection with the issuance of Trust Securities by the Trust, for so
long as such Trust Securities remain outstanding, Peoples: (i) will maintain
100% direct or indirect ownership of the Common Securities of the Trust;
provided, however, that any successor of Peoples, permitted pursuant to Article
X, may succeed to Peoples' ownership of such Common Securities; (ii) will use
commercially reasonable efforts to cause the Trust (a) to remain a business
trust, except in connection with a distribution of Securities to the holders of
Trust Securities in liquidation of the Trust, the redemption of all of the Trust
Securities of the Trust, or certain mergers, consolidations, conversions or
amalgamations, each as permitted by the Declaration, and (b) to otherwise
continue to be classified as a grantor trust and not an association taxable as a
corporation for United States federal income tax purposes; (iii) will use
commercially reasonable efforts to cause each holder of the Trust Securities to
be treated as owning an undivided beneficial interest in the Securities; and
(iv) will not cause, as sponsor of the Trust, or permit, as holder of the Common
Securities, the dissolution, winding-up or liquidation of the Trust, except as
provided in the Declaration.
SECTION 3.09 Payment of Expenses.
In connection with the offering, sale and issuance of the Securities to
the Trust and in connection with the sale of the Trust Securities by the Trust,
Peoples, in its capacity as borrower with respect to the Securities, shall:
(a) pay all costs and expenses relating to the offering, sale
and issuance of the Securities, including commissions to the Initial Purchaser
payable pursuant to the Purchase Agreement and compensation of the Debenture
Trustee in accordance with the provisions of Section 6.06;
(b) pay all costs and expenses of the Trust (including, but
not limited to, costs and expenses relating to the organization of the Trust),
the offering, sale and issuance of the Trust Securities (including commissions
to the Initial Purchaser in connection therewith), the fees and expenses of the
Property Trustee and the Delaware Trustee, 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 agent(s),
registrar(s), transfer agent(s), duplicating, travel and telephone and other
telecommunications expenses and costs and expenses incurred in connection with
the acquisition, financing, and disposition of assets of the Trust;
(c) be primarily and fully liable for any indemnification
obligations arising with respect to the Declaration;
(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; and
(e) pay all other fees, expenses, debts and obligations (other
than in respect of the Trust Securities) related to the Trust.
SECTION 3.10 Payment Upon Resignation or Removal.
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Upon termination of this Indenture or the removal or resignation of the
Debenture Trustee, unless otherwise stated, Peoples shall pay to the Debenture
Trustee all amounts accrued and owing to the date of such termination, removal
or resignation. Upon termination of the Declaration or the removal or
resignation of the Delaware Trustee or the Property Trustee, as the case may be,
pursuant to Section 5.6 of the Declaration, Peoples shall pay to the Delaware
Trustee or the Property Trustee, as the case may be, all amounts accrued and
owing to the date of such termination, removal or resignation.
ARTICLE IV
SECURITYHOLDERS' LISTS AND REPORTS BY PEOPLES
AND THE DEBENTURE TRUSTEE
SECTION 4.01 Securityholders' Lists.
Peoples covenants and agrees that it will furnish or cause to be
furnished to the Debenture Trustee:
(a) on a semi-annual basis on each regular record date for the
Securities, a list, in such form as the Debenture Trustee may reasonably
require, of the names and addresses of the Securityholders as of such record
date; and
(b) at such other times as the Debenture Trustee may request
in writing, within 30 days after the receipt by Peoples, of any such request, a
list of similar form and content as of a date not more than 15 days prior to the
time such list is furnished,
except that, no such lists need be furnished so long as the Debenture Trustee is
in possession thereof by reason of its acting as security registrar for the
Securities.
SECTION 4.02 Preservation and Disclosure of Lists.
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(a) The Debenture Trustee shall preserve, in as current a form as is
reasonably practicable, all information as to the names and addresses of the
holders of the Securities (1) contained in the most recent list furnished to it
as provided in Section 4.01 or (2) received by it in the capacity of security
registrar (if so acting) hereunder. The Debenture Trustee may destroy any list
furnished to it as provided in Section 4.01 upon receipt of a new list so
furnished.
(b) In case three or more holders of Securities (hereinafter referred
to as "applicants") apply in writing to the Debenture Trustee and furnish to the
Debenture Trustee reasonable proof that each such applicant has owned a Security
for a period of at least six months preceding the date of such application, and
such application states that the applicants desire to communicate with other
holders of Securities or with holders of all Securities with respect to their
rights under this Indenture and is accompanied by a copy of the form of proxy or
other communication which such applicants propose to transmit, then the
Debenture Trustee shall within five Business Days after the receipt of such
application, at its election, either:
(1) afford such applicants access to the information
preserved at the time by the Debenture Trustee in
accordance with the provisions of subsection (a) of
this Section 4.02, or
(2) inform such applicants as to the approximate number
of holders of all Securities whose names and
addresses appear in the information preserved at the
time by the Debenture Trustee in accordance with the
provisions of subsection (a) of this Section 4.02,
and as to the approximate cost of mailing to such
Securityholders the form of proxy or other
communication, if any, specified in such application.
If the Debenture Trustee shall elect not to afford such applicants
access to such information, the Debenture Trustee shall, upon the written
request of such applicants, mail to each Securityholder whose name and address
appear in the information preserved at the time by the Debenture Trustee in
accordance with the provisions of subsection (a) of this Section 4.02 a copy of
the form of proxy or other communication which is specified in such request with
reasonable promptness after a tender to the Debenture Trustee of the material to
be mailed and of payment, or provision for the payment, of the reasonable
expenses of mailing, unless within five Business Days after such tender, the
Debenture Trustee shall mail to such applicants and file with the Commission,
together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Debenture Trustee, such mailing would be
contrary to the best interests of the holders of Securities or would be in
violation of applicable law. Such written statement shall specify the basis of
such opinion. If the Commission, after opportunity for a hearing upon the
objections specified in the written statement so filed, shall enter an order
refusing to sustain any of such objections or if, after the entry of an order
sustaining one or more of such objections, the Commission shall find, after
notice and opportunity for hearing, that all the objections so sustained have
been met and shall enter an order so declaring, the Debenture Trustee shall mail
copies of such material to all such Securityholders with reasonable promptness
after the entry of such order and the renewal of such tender; otherwise the
Debenture Trustee shall be relieved of any obligation or duty to such applicants
respecting their application.
(c) Each and every holder of Securities, by receiving and holding the
same, agrees with Peoples and the Debenture Trustee that neither Peoples nor the
Debenture Trustee nor any paying agent shall be held accountable by reason of
the disclosure of any such information as to the names and addresses of the
holders of Securities in accordance with the provisions of subsection (b) of
this Section 4.02, regardless of the source from which such information was
derived, and that the Debenture Trustee shall not be held accountable by reason
of mailing any material pursuant to a request made under said subsection (b).
SECTION 4.03 Reports by Peoples.
(a) Peoples covenants and agrees to file with the Debenture Trustee,
within 15 days after the date on which Peoples is required to file the same with
the Commission, copies of the annual reports and of the information, documents
and other reports (or copies of such portions of any of the foregoing as said
Commission may from time to time by rules and regulations prescribe) which
Peoples may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act.
(b) Peoples covenants and agrees to file with the Debenture Trustee and
the Commission, in accordance with the rules and regulations prescribed from
time to time by said Commission, such additional information, documents and
reports with respect to compliance by Peoples with the conditions and covenants
provided for in this Indenture as may be required from time to time by such
rules and regulations.
(c) Peoples covenants and agrees to transmit by mail to all holders of
Securities, as the names and addresses of such holders appear upon the Security
Register, within 30 days after the filing thereof with the Debenture Trustee,
such summaries of any information, documents and reports required to be filed by
Peoples pursuant to subsections (a) and (b) of this Section 4.03 as may be
required by rules and regulations prescribed from time to time by the
Commission.
(d) Delivery of such reports, information and documents to the
Debenture Trustee is for informational purposes only and the Debenture Trustee's
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
Peoples' compliance with any of its covenants hereunder (as to which the
Debenture Trustee is entitled to rely exclusively on Officers' Certificates).
(e) So long as is required for an offer or sale of the Securities to
qualify for an exemption under Rule 144A under the Securities Act, Peoples
shall, upon request, provide the information required by clause (d)(4)
thereunder to each Securityholder and to each beneficial owner and prospective
purchaser of Securities identified by each Securityholder of Restricted
Securities, unless such information is furnished to the Commission pursuant to
Section 13 or l5 (d) of the Exchange Act.
SECTION 4.04 Reports by the Debenture Trustee.
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(a) The Debenture Trustee shall transmit to Securityholders such
reports concerning the Debenture Trustee and its actions under this Indenture as
may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. If required by Section 313(a) of the Trust
Indenture Act, the Debenture Trustee shall, within 60 days after each May 31st,
following the date of this Indenture, commencing May 31, 2000, deliver to
Securityholders a brief report, dated as of such date which complies with the
provisions of such Section 313(a).
(b) A copy of each such report shall, at the time of such transmission
to Securityholders, be filed by the Debenture Trustee with each stock exchange,
if any, upon which the Securities are listed, with the Commission and with
Peoples. Peoples will promptly notify the Debenture Trustee when the Securities
are listed on any stock exchange.
ARTICLE V
REMEDIES OF THE DEBENTURE TRUSTEE AND
SECURITYHOLDERS ON EVENT OF DEFAULT
SECTION 5.01 Events of Default.
One or more of the following events of default shall constitute an
Event of Default hereunder (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):
(a) default in the payment of any interest (including
Compounded Interest and Additional Sums, if any, or Liquidated Damages, if any)
on the Securities or any Other Debentures (about which a Responsible Officer of
the Debenture Trustee has actual knowledge) when due, and continuance of such
default for a period of 30 days; provided, however, that a valid extension of an
interest payment period by Peoples in accordance with the terms hereof or
thereof shall not constitute a default in the payment of interest for this
purpose; or
(b) default in the payment of any principal of (or premium, if
any, on) the Securities or any Other Debentures (about which a Responsible
Officer of the Debenture Trustee has actual knowledge) when due, whether at
maturity, upon prepayment, by declaration of acceleration of maturity or
otherwise; or
(c) default in the performance, or breach, of any covenant or
warranty of Peoples in this Indenture (other than a covenant or warranty a
default in whose performance or whose breach is elsewhere in this Section
specifically dealt with), and continuance of such default or breach for a period
of 90 days after there has been given, by registered or certified mail, to
Peoples by the Debenture Trustee or to Peoples and the Debenture Trustee by the
holders of at least 25% in aggregate principal amount of the outstanding
Securities a written notice specifying such default or breach and requiring it
to be remedied and stating that such notice is a "Notice of Default" hereunder;
or
(d) a court having jurisdiction in the premises shall enter a
decree or order for relief in respect of Peoples in an involuntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of Peoples or for any substantial part of its
property, or ordering the winding-up or liquidation of its affairs and such
decree or order shall remain unstayed and in effect for a period of 90
consecutive days; or
(e) Peoples shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, shall consent to the entry of an order for relief in an involuntary case
under any such law, or shall consent to the appointment of or taking possession
by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of Peoples or of any substantial part of its property, or
shall make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due.
If an Event of Default with respect to Securities at the time
outstanding occurs and is continuing, then in every such case the Debenture
Trustee or the holders of not less than 25% in aggregate principal amount of the
Securities then outstanding may declare the principal amount of all Securities
to be due and payable immediately, by a notice in writing to Peoples (and to the
Debenture Trustee if given by the holders of the outstanding Securities), and
upon any such declaration the same shall become immediately due and payable.
The foregoing provisions, however, are subject to the condition that
if, at any time after the principal of the Securities shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, (i)
Peoples shall pay or shall deposit with the Debenture Trustee a sum sufficient
to pay (A) all matured installments of interest (including Compounded Interest
and Additional Sums, if any, or Liquidated Damages, if any) on all the
Securities and the principal of and premium, if any, on any and all Securities
which shall have become due otherwise than by acceleration (with interest upon
such principal and premium, if any, and, to the extent that payment of such
interest is enforceable under applicable law, on overdue installments of
interest, at the same rate as the rate of interest specified in the Securities
to the date of such payment or deposit) and (B) such amount as shall be
sufficient to cover compensation due to the Debenture Trustee and each
predecessor Debenture Trustee, their respective agents, attorneys and counsel,
pursuant to Section 6.06, and (ii) any and all Events of Default under the
Indenture, other than the non-payment of the principal of the Securities which
shall have become due solely by such declaration of acceleration, shall have
been cured, waived or otherwise remedied as provided herein, then, in every such
case, the holders of a majority in aggregate principal amount of the Securities
then outstanding, by written notice to Peoples and to the Debenture Trustee, may
rescind and annul such declaration and its consequences, but no such waiver or
rescission and annulment shall extend to or shall affect any subsequent default
or shall impair any right consequent thereon.
In case the Debenture Trustee shall have proceeded to enforce any right
under this Indenture and such proceedings shall have been discontinued or
abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the Debenture Trustee, then and in every
such case Peoples, the Debenture Trustee and the holders of the Securities shall
be restored respectively to their several positions and rights hereunder, and
all rights, remedies and powers of Peoples, the Debenture Trustee and the
holders of the Securities shall continue as though no such proceeding had been
taken.
SECTION 5.02 Payment of Securities on Default; Suit Therefor.
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Peoples covenants that (a) in case default shall be made in the payment
of any installment of interest (including Compounded Interest and Additional
Sums, if any, or Liquidated Damages, if any) on any of the Securities as and
when the same shall become due and payable, and such default shall have
continued for a period of 30 days, or (b) in case default shall be made in the
payment of the principal of or premium, if any, on any of the Securities as and
when the same shall have become due and payable, whether at maturity of the
Securities or upon prepayment or by declaration or otherwise, then, upon demand
of the Debenture Trustee, Peoples will pay to the Debenture Trustee, for the
benefit of the holders of the Securities, the whole amount that then shall have
become due and payable on all such Securities for principal and premium, if any,
or interest (including Compounded Interest and Additional Sums, if any, or
Liquidated Damage, if any) with interest upon the overdue principal and premium,
if any, and (to the extent that payment of such interest is enforceable under
applicable law and, if the Securities are held by the Trust or a trustee of such
trust, without duplication of any other amounts paid by the Trust or a trustee
in respect thereof) upon the overdue installments of interest (including
Compounded Interest and Additional Sums, if any, or Liquidated Damages, if any)
at the rate borne by the Securities; and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation to the Debenture Trustee, its agents,
attorneys and counsel, and any other amount due to the Debenture Trustee
pursuant to Section 6.06.
In case Peoples shall fail forthwith to pay such amounts upon such
demand, the Debenture Trustee, in its own name and as trustee of an express
trust, shall be entitled and empowered to institute any actions or proceedings
at law or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceeding to judgment or final decree, and may
enforce any such judgment or final decree against Peoples or any other obligor
on the Securities and collect in the manner provided by law out of the property
of Peoples or any other obligor on the Securities, wherever situated, the moneys
adjudged or decreed to be payable.
In case there shall be pending proceedings for the bankruptcy or for
the reorganization of Peoples or any other obligor on the Securities under Title
11, United States Code, or any other applicable law, or in case a receiver or
trustee shall have been appointed for the property of Peoples or such other
obligor, or in the case of any other similar judicial proceedings relative to
Peoples or other obligor upon the Securities, or to the creditors or property of
Peoples or such other obligor, the Debenture Trustee, irrespective of whether
the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Debenture Trustee shall have made any demand pursuant to the provisions of this
Section 5.02, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal and interest owing and unpaid in respect of the Securities
and, in case of any judicial proceedings, to file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the claims
of the Debenture Trustee (including any claim for amounts due to the Debenture
Trustee pursuant to 6.06) and of the Securityholders allowed in such judicial
proceedings relative to Peoples or any other obligor on the Securities, or to
the creditors or property of Peoples or such other obligor, unless prohibited by
applicable law and regulations, to vote on behalf of the holders of the
Securities in any election of a trustee or a standby trustee in arrangement,
reorganization, liquidation or other bankruptcy or insolvency proceedings or
person performing similar functions in comparable proceedings, and to collect
and receive any moneys or other property payable or deliverable on any such
claims, and to distribute the same after the deduction of its charges and
expenses; and any receiver, assignee or trustee in bankruptcy or reorganization
is hereby authorized by each of the Securityholders to make such payments to the
Debenture Trustee, and, in the event that the Debenture Trustee shall consent to
the making of such payments directly to the Securityholders, to pay to the
Debenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Debenture Trustee, each predecessor Debenture Trustee and
their respective agents, attorneys and counsel, and all other amounts due to the
Debenture Trustee pursuant to Section 6.06.
Nothing herein contained shall be construed to authorize the Debenture
Trustee to authorize or consent to or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any holder thereof or to
authorize the Debenture Trustee to vote in respect of the claim of any
Securityholder in any such proceeding.
All rights of action and of asserting claims under this Indenture, or
under any of the Securities, may be enforced by the Debenture Trustee without
the possession of any of the Securities, or the production thereof on any trial
or other proceeding relative thereto, and any such suit or proceeding instituted
by the Debenture Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall be for the ratable benefit of
the holders of the Securities.
In any proceedings brought by the Debenture Trustee (and also any
proceedings involving the interpretation of any provision of this Indenture to
which the Debenture Trustee shall be a party), the Debenture Trustee shall be
held to represent all the holders of the Securities, and it shall not be
necessary to make any holders of the Securities parties to any such proceedings.
SECTION 5.03 Application of Moneys Collected by Debenture
Trustee.
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Any moneys collected by the Debenture Trustee shall be applied in the
following order, at the date or dates fixed by the Debenture Trustee for the
distribution of such moneys, upon presentation of the Securities in respect of
which moneys have been collected, and stamping thereon the payment, if only
partially paid, and upon surrender thereof if fully paid:
First: To the payment of costs and expenses of collection applicable
to the Securities and all
other amounts due to the Debenture Trustee under Section 6.06;
Second: To the payment of all Senior Indebtedness of Peoples if and
to the extent required by Article XV;
Third: To the payment of the amounts then due and unpaid upon
Securities for principal of (and premium, if any) and interest (including
Compounded Interest and Additional Sums, if any, or Liquidated Damages, if any)
on the Securities, in respect of which or for the benefit of which money has
been collected, ratably, without preference or priority of any kind, according
to the amounts due on such Securities for principal (and premium, if any) and
interest, respectively; and
Fourth: To Peoples.
SECTION 5.04 Proceedings by Securityholders.
No holder of any Security shall have any right by virtue of or by
availing of any provision of this Indenture to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Indenture
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless such holder previously shall have given to the Debenture
Trustee written notice of an Event of Default and of the continuance thereof
with respect to the Securities specifying such Event of Default, as hereinbefore
provided, and unless also the holders of not less than 25% in aggregate
principal amount of the Securities then outstanding shall have made written
request upon the Debenture Trustee to institute such action, suit or proceeding
in its own name as Debenture Trustee hereunder and shall have offered to the
Debenture Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby, and the Debenture
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity shall have failed to institute any such action, suit or proceeding, it
being understood and intended, and being expressly covenanted by the taker and
holder of every Security with every other taker and holder and the Debenture
Trustee, that no one or more holders of Securities shall have any right in any
manner whatever by virtue of or by availing of any provision of this Indenture
to affect, disturb or prejudice the rights of any other holder of Securities, or
to obtain or seek to obtain priority over or preference to any other such
holder, or to enforce any right under this Indenture, except in the manner
herein provided and for the equal, ratable and common benefit of all holders of
Securities.
Notwithstanding any other provisions in this Indenture, however, the
right of any holder of any Security to receive payment of the principal of (and
premium, if any) and interest on (including Compounded Interest and Additional
Sums, if any, or Liquidated Damages, if any) on such Security, on or after the
same shall have become due and payable, or to institute suit for the enforcement
of any such payment, shall not be impaired or affected without the consent of
such holder, and by accepting a Security hereunder it is expressly understood,
intended and covenanted by the taker and holder of every Security with every
other such taker and holder and the Debenture Trustee, that no one or more
holders of Securities shall have any right in any manner whatsoever by virtue or
by availing of any provision of this Indenture to affect, disturb or prejudice
the rights of the holders of any other Securities, or to obtain or seek to
obtain priority over or preference to any other such holder, or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal, ratable and common benefit of all holders of Securities. For the
protection and enforcement of the provisions of this Section, each and every
Securityholder and the Debenture Trustee shall be entitled to such relief as can
be given either at law or in equity.
Peoples and the Debenture Trustee acknowledge that pursuant to the
Declaration, the holders of Capital Securities are entitled, in the
circumstances and subject to the limitations set forth therein, to commence a
Direct Action with respect to any Event of Default referred to in clause (a) or
(b) of Section 5.01.
SECTION 5.05 Proceedings by Debenture Trustee.
In case an Event of Default occurs with respect to Securities and is
continuing, the Debenture Trustee may in its discretion proceed to protect and
enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Debenture Trustee shall deem most effectual to protect and
enforce any of such rights, either by suit in equity or by action at law or by
proceeding in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in this Indenture or in aid of the exercise
of any power granted in this Indenture, or to enforce any other legal or
equitable right vested in the Debenture Trustee by this Indenture or by law.
SECTION 5.06 Remedies Cumulative and Continuing.
All powers and remedies given by this Article V to the Debenture
Trustee or to the Securityholders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any other powers and remedies available
to the Debenture Trustee or the holders of the Securities, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture or otherwise established
with respect to the Securities, and no delay or omission of the Debenture
Trustee or of any holder of any of the Securities to exercise any right or power
accruing upon any Event of Default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of any such
default or an acquiescence therein; and, subject to the provisions of Section
5.04, every power and remedy given by this Article V or by law to the Debenture
Trustee or to the Securityholders may be exercised from time to time, and as
often as shall be deemed expedient, by the Debenture Trustee or by the
Securityholders.
SECTION 5.07 Direction of Proceedings and Waiver of
Defaults by Majority of Security holders.
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The holders of a majority in aggregate principal amount of the
Securities at the time outstanding shall have the right to direct the time,
method, and place of conducting any proceeding for any remedy available to the
Debenture Trustee, or exercising any trust or power conferred on the Debenture
Trustee; provided, however, that (subject to the provisions of Section 6.01) the
Debenture Trustee shall have the right to decline to follow any such direction
if the Debenture Trustee shall determine that the action so directed would be
unjustly prejudicial to the holders not taking part in such direction or if the
Debenture Trustee being advised by counsel determines that the action or
proceeding so directed may not lawfully be taken or if the Debenture Trustee in
good faith by one of its Responsible Officers shall determine that the action or
proceedings so directed would involve the Debenture Trustee in personal
liability. Prior to any declaration accelerating the maturity of the Securities,
the holders of a majority in aggregate principal amount of the Securities at the
time outstanding may on behalf of the holders of all of the Securities waive any
past Default or Event of Default and its consequences except a Default (a) in
the payment of principal of (or premium, if any) or interest on (including
Compounded Interest and Additional Sums, if any, or Liquidated Damages, if any)
on any of the Securities (unless such Default has been cured and a sum
sufficient to pay all matured installments of interest (including Compounded
Interest and Additional Sums, if any or Liquidated Damages, if any) (and
premium, if any) and principal due otherwise than by acceleration has been
deposited with the Debenture Trustee) or (b) in respect of covenants or
provisions hereof which cannot be modified or amended without the consent of the
holder of each Security affected; provided, however, that if the Securities are
held by the Property Trustee, such waiver or modification to such waiver shall
not be effective until the holders of a majority in aggregate liquidation amount
of Trust Securities shall have consented to such waiver or modification to such
waiver; provided, further, that if the consent of the holder of each outstanding
Security is required, such waiver shall not be effective until each holder of
the Trust Securities shall have consented to such waiver. Upon any such waiver,
the Default covered thereby shall be deemed to be cured for all purposes of this
Indenture and Peoples, the Debenture Trustee and the holders of the Securities
shall be restored to their former positions and rights hereunder, respectively;
but no such waiver shall extend to any subsequent or other Default or impair any
right consequent thereon. Whenever any Default or Event of Default hereunder
shall have been waived as permitted by this Section 5.07, said Default or Event
of Default shall for all purposes of the Securities and this Indenture be deemed
to have been cured and to be not continuing.
SECTION 5.08 Notice of Defaults.
(a) The Debenture Trustee shall, within 90 days after the occurrence of
a Default with respect to the Securities actually known to a Responsible Officer
of the Debenture Trustee, mail to all Securityholders, as the names and
addresses of such holders appear upon the Security Register, notice of all such
Defaults, unless such Default shall have been cured before the giving of such
notice (the term "Default" for the purpose of this Section 5.08 being hereby
defined to be any of the events specified in clauses (a), (b), (c), (d) and (e)
of Section 5.01, not including periods of grace, if any, provided for therein,
and irrespective of the giving of written notice specified in clause (c) of
Section 5.01); provided, however, that, except in the case of Default in the
payment of the principal of (or premium, if any) or interest (including
Compounded Interest or Additional Sums, if any or Liquidated Damages, if any) on
any of the Securities, the Debenture Trustee shall be protected in withholding
such notice if and so long as the board of directors, the executive committee,
or a trust committee of directors and/or Responsible Officers of the Debenture
Trustee in good faith determines that the withholding of such notice is in the
interests of the Securityholders; provided, further, that in the case of any
Default of the character specified in Section 5.01(c), no such notice to
Securityholders shall be given until at least 60 days after the occurrence
thereof, but shall be given within 90 days after such occurrence.
(b) Within ten Business Days after the occurrence of any Event of
Default actually known to a Responsible Officer of the Debenture Trustee, the
Debenture Trustee shall transmit notice of such Event of Default to all
Securityholders as their names and addresses appear on the Security Register,
unless such Event of Default shall have been cured or waived.
SECTION 5.09 Undertaking to Pay Costs.
All parties to this Indenture agree, and each holder of any Security by
its acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Debenture Trustee for any action
taken or omitted by it as Debenture Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees and expenses, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section 5.09 shall not apply to any suit instituted
by the Debenture Trustee, to any suit instituted by any Securityholder, or group
of Securityholders, holding in the aggregate more than 10% in aggregate
principal amount of the Securities outstanding, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest (including Compounded Interest and Additional Sums,
if any, or Liquidated Damages, if any) on any Security against Peoples on or
after the same shall have become due and payable.
ARTICLE VI
CONCERNING THE DEBENTURE TRUSTEE
SECTION 6.01 Duties and Responsibilities of Debenture Trustee.
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With respect to the holders of the Securities issued hereunder, the
Debenture Trustee, prior to the occurrence of an Event of Default (which, other
than in the case of Sections 5.01(a) and 5.01(b) hereof, is known to the
Debenture Trustee) and after the curing or waiving of all such Events of Default
which may have occurred, undertakes to perform such duties and only such duties
as are specifically set forth in this Indenture. In case an Event of Default
(which, other than in the case of Sections 5.01(a) and 5.01(b) hereof, is known
to the Debenture Trustee) has occurred (which has not been cured or waived), the
Debenture Trustee shall exercise such of the rights and powers vested in it by
this Indenture, 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.
No provision of this Indenture shall be construed to relieve the
Debenture Trustee from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that:
(a) prior to the occurrence of an Event of Default (which,
other than in the case of Sections 5.01(a) and 5.01(b) hereof, is known to the
Debenture Trustee) and after the curing or waiving of all such Events of Default
which may have occurred,
(1) the duties and obligations of the Debenture Trustee
shall be determined solely by the express provisions
of this Indenture, and the Debenture Trustee shall
not be liable except for the performance of such
duties and obligations as are specifically set forth
in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against
the Debenture Trustee; and
(2) in the absence of bad faith on the part of the
Debenture Trustee, the Debenture 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 Debenture Trustee and conforming to the
requirements of this Indenture; but, in the case of
any such certificates or opinions which by any
provision hereof are specifically required to be
furnished to the Debenture Trustee, the Debenture
Trustee shall be under a duty to examine the same to
determine whether or not they conform to the
requirements of this Indenture;
(b) the Debenture Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer or Responsible Officers,
unless it shall be proved that the Debenture Trustee was negligent in
ascertaining the pertinent facts; and
(c) the Debenture 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 Securityholders pursuant to Section 5.07, relating to the
time, method and place of conducting any proceeding for any remedy available to
the Debenture Trustee, or exercising any trust or power conferred upon the
Debenture Trustee, under this Indenture.
None of the provisions contained in this Indenture shall require the
Debenture 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 reasonably believes that the repayment of
such funds or liability is not reasonably assured to it under the terms of this
Indenture or adequate indemnity against such risk is not reasonably assured to
it.
SECTION 6.02 Reliance on Documents, Opinions, etc.
------------------------------------
Except as otherwise provided in Section 6.01:
(a) the Debenture Trustee may conclusively rely and shall be
protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order, bond,
note, debenture or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties;
(b) any request, direction, order or demand of Peoples
mentioned herein may be sufficiently evidenced by an Officers' Certificate
(unless other evidence in respect thereof be herein specifically prescribed);
and any Board Resolution may be evidenced to the Debenture Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary of Peoples;
(c) the Debenture Trustee may consult with counsel of its
selection and any advice or Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or suffered or
omitted by it hereunder in good faith and in accordance with such advice or
Opinion of Counsel;
(d) the Debenture Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture at the
request, order or direction of any of the Securityholders, pursuant to the
provisions of this Indenture, unless such Securityholders shall have offered to
the Debenture Trustee reasonable and sufficient security or indemnity against
the costs, expenses and liabilities which may be incurred therein or thereby;
(e) the Debenture Trustee shall not be liable for any action
taken or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Indenture;
nothing contained herein shall, however, relieve the Debenture Trustee of the
obligation, upon the occurrence of an Event of Default (which, other than in the
case of Sections 5.01(a) and 5.01(b) hereof, is known to the Debenture Trustee)
(that has not been cured or waived), to exercise such of the rights and powers
vested in it by this Indenture, and to use the same degree of care and skill in
their exercise, as a prudent man would exercise or use under the circumstances
in the conduct of his own affairs;
(f) the Debenture Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order,
approval, bond, debenture, coupon or other paper or document, unless requested
in writing to do so by the holders of a majority in aggregate principal amount
of the outstanding Securities; provided, however, that if the payment within a
reasonable time to the Debenture Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the
opinion of the Debenture Trustee, not reasonably assured to the Debenture
Trustee by the security afforded to it by the terms of this Indenture, the
Debenture Trustee may require reasonable indemnity against such expense or
liability as a condition to so proceeding;
(g) the Debenture Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or
through agents (including any Authenticating Agent) or attorneys, and the
Debenture Trustee shall not be responsible for any misconduct or negligence on
the part of any such agent or attorney appointed by it with due care;
(h) the Debenture Trustee shall not be charged with knowledge
of any Default or Event of Default unless (1) such Default or Event of Default
falls within Section 5.01(a) (other than a default with respect to the payment
of Compounded Interest or Additional Sums, if any, or Liquidated Damages, if
any) or 5.01(b) of the Indenture, (2) a Responsible Officer shall have actual
knowledge of such Default or Event of Default or (3) written notice of such
Default or Event of Default shall have been given to the Debenture Trustee by
Peoples or any other obligor on the Securities or by any holder of the
Securities; and
(i) the Debenture Trustee shall not be liable for any action
taken, suffered or omitted by it in good faith, without negligence or willful
misconduct and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture.
SECTION 6.03 No Responsibility for Recitals, etc.
-----------------------------------
The recitals contained herein and in the Securities (except in the
certificate of authentication of the Debenture Trustee or the Authenticating
Agent) shall be taken as the statements of Peoples, and the Debenture Trustee
and the Authenticating Agent assume no responsibility for the correctness of the
same. The Debenture Trustee and the Authenticating Agent make no representations
as to the validity or sufficiency of this Indenture or of the Securities. The
Debenture Trustee and the Authenticating Agent shall not be accountable for the
use or application by Peoples of any Securities or the proceeds of any
Securities authenticated and delivered by the Debenture Trustee or the
Authenticating Agent in conformity with the provisions of this Indenture.
SECTION 6.04 Debenture Trustee, Authenticating Agent, Paying
Agents, Transfer Agents or Registrar May Own Securities.
The Debenture Trustee or any Authenticating Agent or any paying agent
or any transfer agent or any security registrar for the Securities, in its
individual or any other capacity, may become the owner or pledgee of Securities
with the same rights it would have if it were not Debenture Trustee,
Authenticating Agent, paying agent, transfer agent or security registrar for the
Securities.
SECTION 6.05 Moneys to be Held in Trust.
--------------------------
Subject to the provisions of Section 11.04, all moneys received by the
Debenture Trustee or any paying agent shall, until used or applied as herein
provided, be held in trust for the purpose for which they were received, but
need not be segregated from other funds except to the extent required by law.
The Debenture Trustee and any paying agent shall be under no liability for
interest on any money received by it hereunder except as otherwise agreed in
writing with Peoples. So long as no Event of Default shall have occurred and be
continuing, all interest allowed on any such moneys shall be paid from time to
time upon the written order of Peoples, signed by an Officer thereof.
SECTION 6.06 Compensation and Expenses of Debenture Trustee.
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Peoples, as issuer of Securities under this Indenture, covenants and
agrees to pay to the Debenture Trustee from time to time, and the Debenture
Trustee shall be entitled to, such compensation as shall be agreed to in writing
between Peoples and the Debenture Trustee (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust), and Peoples will pay or reimburse the Debenture Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by the
Debenture Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its
counsel and of all persons not regularly in its employ), except any such
expense, disbursement or advance as may arise from its negligence or bad faith.
Peoples also covenants to indemnify each of the Debenture Trustee (including in
its individual capacity) and any predecessor Debenture Trustee (and its or their
officers, agents, directors and employees) for, and to hold it harmless against,
any and all loss, damage, claim, liability or expense including taxes (other
than taxes based on the income of the Debenture Trustee) incurred without
negligence or bad faith on the part of the Debenture Trustee and arising out of
or in connection with the acceptance or administration of this trust, including
the costs and expenses of defending itself against any claim of liability in the
premises. The obligations of Peoples under this Section 6.06 to compensate and
indemnify the Debenture Trustee and to pay or reimburse the Debenture Trustee
for expenses, disbursements and advances shall constitute additional
indebtedness hereunder. Such additional indebtedness shall be secured by a lien
prior to that of the Securities upon all property and funds held or collected by
the Debenture Trustee as such, except funds held in trust for the benefit of the
holders of particular Securities.
When the Debenture Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 5.01(d) or Section
5.01(e), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for its services are intended to constitute
expenses of administration under any applicable federal or state bankruptcy,
insolvency or other similar law.
The provisions of this Section shall survive the resignation or removal
of the Debenture Trustee and the defeasance or other termination of this
Indenture.
SECTION 6.07 Officers' Certificate as Evidence.
Except as otherwise provided in Sections 6.01 and 6.02, whenever in the
administration of the provisions of this Indenture the Debenture Trustee shall
deem it necessary or desirable that a matter be proved or established prior to
taking or omitting any action hereunder, such matter (unless other evidence in
respect thereof is herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Debenture Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the
Debenture Trustee, and such Officers' Certificate, in the absence of negligence
or bad faith on the part of the Debenture Trustee, shall be full warrant to the
Debenture Trustee for any action taken or omitted by it under the provisions of
this Indenture upon the faith thereof.
SECTION 6.08 Conflicting Interest of Debenture Trustee.
-----------------------------------------
If the Debenture Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Debenture Trustee and Peoples shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act.
SECTION 6.09 Eligibility of Debenture Trustee.
The Debenture Trustee hereunder shall at all times 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 other Person permitted to act as trustee by the Commission authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least 10 million U.S. dollars ($10,000,000) 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 aforesaid supervising or
examining authority, then for the purposes of this Section 6.09 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.
Peoples may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with Peoples, serve as Debenture Trustee.
In case at any time the Debenture Trustee shall cease to be eligible in
accordance with the provisions of this Section 6.09, the Debenture Trustee shall
resign immediately in the manner and with the effect specified in Section 6.10.
SECTION 6.10 Resignation or Removal of Debenture Trustee.
-------------------------------------------
(a) The Debenture Trustee, or any trustee or trustees hereafter
appointed, may at any time resign by giving written notice of such resignation
to Peoples and by mailing notice thereof to the holders of the Securities at
their addresses as they shall appear on the Security Register. Upon receiving
such notice of resignation, Peoples shall promptly appoint a successor trustee
or trustees by written instrument, in duplicate, one copy of which instrument
shall be delivered to the resigning Debenture Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and have
accepted appointment within 60 days after the mailing of such notice of
resignation to the affected Securityholders, the resigning Debenture Trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee, or any Securityholder who has been a bona fide holder of a Security for
at least six months may, subject to the provisions of Section 5.09, on behalf of
himself and all others similarly situated, petition any such court for the
appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, appoint a successor trustee.
(b) In case at any time any of the following shall occur:
(1) the Debenture Trustee shall fail to comply with the
provisions of Section 6.08 after written request
therefor by Peoples or by any Securityholder who has
been a bona fide holder of a Security or Securities
for at least six months, or
(2) the Debenture Trustee shall cease to be eligible in
accordance with the provisions of Section 6.09 and
shall fail to resign after written request therefor
by Peoples or by any such Securityholder, or
(3) the Debenture Trustee shall become incapable of
acting, or shall be adjudged a bankrupt or insolvent,
or a receiver of the Debenture Trustee or of its
property shall be appointed, or any public officer
shall take charge or control of the Debenture Trustee
or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,
then, in any such case, Peoples may remove the Debenture Trustee and appoint a
successor trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the Debenture Trustee so removed and one copy
to the successor trustee, or, subject to the provisions of Section 5.09, any
Securityholder who has been a bona fide holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Debenture Trustee and the
appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Debenture Trustee and
appoint a successor trustee.
(c) The holders of a majority in aggregate principal amount of the
Securities at the time outstanding may at any time remove the Debenture Trustee
and nominate a successor trustee, which shall be deemed appointed as successor
trustee unless within 10 days after written notification of such nomination
Peoples objects thereto, or if no successor trustee shall have been so appointed
and shall have accepted appointment within 30 days after such removal, in which
case the Debenture Trustee so removed or any Securityholder, upon the terms and
conditions and otherwise as in subsection (a) of this Section 6.10 provided, may
petition any court of competent jurisdiction for an appointment of a successor
trustee.
(d) Any resignation or removal of the Debenture Trustee and appointment
of a successor trustee pursuant to any of the provisions of this Section 6.10
shall become effective upon acceptance of appointment by the successor trustee
as provided in Section 6.11.
SECTION 6.11 Acceptance by Successor Debenture Trustee.
-----------------------------------------
Any successor trustee appointed as provided in Section 6.10 shall
execute, acknowledge and deliver to Peoples and to its predecessor trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the retiring trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, duties and obligations of its predecessor hereunder,
with like effect as if originally named as trustee herein; but, nevertheless, on
the written request of Peoples or of the successor trustee, the trustee ceasing
to act shall, upon payment of all amounts then due it pursuant to the provisions
of Section 6.06, execute and deliver an instrument transferring to such
successor trustee all the rights and powers of the trustee so ceasing to act and
shall duly assign, transfer and deliver to such successor trustee all property
and money held by such retiring trustee thereunder. Upon request of any such
successor trustee, Peoples shall execute any and all instruments in writing for
more fully and certainly vesting in and confirming to such successor trustee all
such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a
lien upon all property or funds held or collected by such trustee to secure any
amounts then due it pursuant to the provisions of Section 6.06.
No successor trustee shall accept appointment as provided in this
Section 6.11 unless at the time of such acceptance such successor trustee shall
be qualified under the provisions of Section 6.08 and eligible under the
provisions of Section 6.09.
Upon acceptance of appointment by a successor trustee as provided in
this Section 6.11, Peoples shall mail notice of the succession of such trustee
hereunder to the holders of Securities at their addresses as they shall appear
on the Security Register. If Peoples fails to mail such notice within 10 days
after the acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be mailed at the expense of Peoples.
SECTION 6.12 Succession by Merger, etc.
Any corporation into which the Debenture Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Debenture Trustee
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of the Debenture Trustee, shall be the successor of
the Debenture Trustee hereunder without the execution or filing of any paper or
any further act on the part of any of the parties hereto.
In case any Securities shall have been authenticated but not delivered
at the time such successor to the Debenture Trustee shall succeed to the trusts
created by this Indenture, any such successor to the Debenture Trustee may adopt
the certificate of authentication of any predecessor trustee, and deliver such
Securities so authenticated; and in case at that time any of the Securities
shall not have been authenticated, any successor to the Debenture Trustee may
authenticate such Securities in the name of the successor trustee; and in all
such cases such certificates shall have the full force which the Securities or
this Indenture elsewhere provides that the certificate of the Debenture Trustee
shall have; provided, however, that the right to adopt the certificate of
authentication of any predecessor Debenture Trustee shall apply only to its
successor or successors by merger or consolidation.
SECTION 6.13 Limitation on Rights of Debenture Trustee as a
Creditor.
----------------------------------------------
The Debenture Trustee shall comply with Section 311(a) of the Trust
Indenture Act, excluding any creditor relationship described in Section 311(b)
of the Trust Indenture Act. A Debenture Trustee who has resigned or been removed
shall be subject to Section 311(a) of the Trust Indenture Act to the extent
included therein.
SECTION 6.14 Authenticating Agents.
There may be one or more Authenticating Agents appointed by the
Debenture Trustee upon the request of Peoples with power to act on its behalf
and subject to its direction in the authentication and delivery of Securities
issued upon exchange or transfer thereof as fully to all intents and purposes as
though any such Authenticating Agent had been expressly authorized to
authenticate and deliver Securities; provided, however, that the Debenture
Trustee shall have no liability to Peoples for any acts or omissions of the
Authenticating Agent with respect to the authentication and delivery of
Securities. Any such Authenticating Agent shall at all times be a corporation
organized and doing business under the laws of the United States or of any state
or territory thereof or of the District of Columbia authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of at
least $5,000,000 and being 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 the
requirements of such authority, then for the purposes of this Section 6.14 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. If at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect herein specified in this Section.
Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate trust business
of any Authenticating Agent, shall be the successor of such Authenticating Agent
hereunder, if such successor corporation is otherwise eligible under this
Section 6.14 without the execution or filing of any paper or any further act on
the part of the parties hereto or such Authenticating Agent.
Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Debenture Trustee and to Peoples. The Debenture
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and to
Peoples. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time any Authenticating Agent shall cease to be eligible under
this Section 6.14, the Debenture Trustee may, and upon the request of Peoples
shall, promptly appoint a successor Authenticating Agent eligible under this
Section 6.14, shall give written notice of such appointment to Peoples and shall
mail notice of such appointment to all Securityholders as the names and
addresses of such holders appear on the Security Register. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all rights, powers, duties and responsibilities of its predecessor
hereunder, with like effect as if originally named as Authenticating Agent
herein.
Peoples, as issuer of the Securities, agrees to pay to any
Authenticating Agent from time to time reasonable compensation for its services.
Any Authenticating Agent shall have no responsibility or liability for any
action taken by it as such in accordance with the directions of the Debenture
Trustee.
ARTICLE VII
CONCERNING THE SECURITYHOLDERS
SECTION 7.01 Action by Securityholders.
Whenever in this Indenture it is provided that the holders of a
specified percentage in aggregate principal amount of the Securities may take
any action (including the making of any demand or request, the giving of any
notice, consent or waiver or the taking of any other action), the fact that at
the time of taking any such action the holders of such specified percentage have
joined therein may be evidenced (a) by any instrument (including by way of
electronic transmission) or any number of instruments of similar tenor executed
by such Securityholders in person or by agent or proxy appointed in writing, or
(b) by the record of such holders of Securities voting in favor thereof at any
meeting of such Securityholders duly called and held in accordance with the
provisions of Article VIII, or (c) by a combination of such instrument or
instruments and any such record of such a meeting of such Securityholders.
If Peoples shall solicit from the Securityholders any request, demand,
authorization, direction, notice, consent, waiver or other action, Peoples may,
at its option, as evidenced by an Officers' Certificate, fix in advance a record
date for the determination of Securityholders entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other action, but
Peoples shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other
action may be given before or after the record date, but only the
Securityholders of record at the close of business on the record date shall be
deemed to be Securityholders for the purposes of determining whether
Securityholders of the requisite proportion of outstanding Securities have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the
outstanding Securities shall be computed as of the record date; provided,
however, that no such authorization, agreement or consent by such
Securityholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six
months after the record date.
SECTION 7.02 Proof of Execution by Securityholders.
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Subject to the provisions of Sections 6.01, 6.02 and 8.05, proof of the
execution of any instrument by a Securityholder or his agent or proxy shall be
sufficient if made in accordance with such reasonable rules and regulations as
may be prescribed by the Debenture Trustee or in such manner as shall be
satisfactory to the Debenture Trustee. The ownership of Securities shall be
proved by the Security Register or by a certificate of the security registrar
for the Securities. The Debenture Trustee may require such additional proof of
any matter referred to in this Section as it shall deem necessary.
The record of any Securityholders' meeting shall be proved in the
manner provided in Section 8.06.
SECTION 7.03 Who Are Deemed Absolute Owners.
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Prior to due presentment for registration of transfer of any Security,
Peoples, the Debenture Trustee, any Authenticating Agent, any paying agent, any
transfer agent and any security registrar for the Securities may deem the person
in whose name such Security shall be registered upon the Security Register to
be, and may treat him as, the absolute owner of such Security (whether or not
such Security shall be overdue) for the purpose of receiving payment of or on
account of the principal of and premium, if any, and (subject to Section 2.06)
interest on such Security and for all other purposes; and neither Peoples nor
the Debenture Trustee nor any Authenticating Agent nor any paying agent nor any
transfer agent nor any security registrar for the Securities shall be affected
by any notice to the contrary. All such payments so made to any holder for the
time being or upon his order shall be valid and, to the extent of the sum or
sums so paid, effectual to satisfy and discharge the liability for moneys
payable upon any such Security.
SECTION 7.04 Securities Owned by Peoples Deemed Not Outstanding.
--------------------------------------------------
In determining whether the holders of the requisite aggregate principal
amount of Securities have concurred in any direction, consent or waiver under
this Indenture, Securities which are owned by Peoples or any other obligor on
the Securities or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with Peoples or any other obligor
on the Securities shall be disregarded and deemed not to be outstanding for the
purpose of any such determination; provided, however, that for the purposes of
determining whether the Debenture Trustee shall be protected in relying on any
such direction, consent or waiver, only Securities which a Responsible Officer
of the Debenture Trustee actually knows are so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as
outstanding for the purposes of this Section 7.04 if the pledgee shall establish
to the satisfaction of the Debenture Trustee the pledgee's right to vote such
Securities and that the pledgee is not Peoples or any such other obligor or
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with Peoples or any such other obligor. In the case of a
dispute as to such right, any decision by the Debenture Trustee taken upon the
advice of counsel shall be full protection to the Debenture Trustee.
SECTION 7.05 Revocation of Consents; Future Holders Bound.
--------------------------------------------
At any time prior to (but not after) the evidencing to the Debenture
Trustee, as provided in Section 7.01, of the taking of any action by the holders
of the percentage in aggregate principal amount of the Securities specified in
this Indenture in connection with such action, any holder of a Security (or any
Security issued in whole or in part in exchange or substitution therefor),
subject to Section 7.01, the serial number of which is shown by the evidence to
be included in the group of Securities the holders of which have consented to
such action, may, by filing written notice with the Debenture Trustee at its
principal office and upon proof of holding as provided in Section 7.02, revoke
such action so far as concerns such Security (or so far as concerns the
principal amount represented by any exchanged or substituted Security). Except
as aforesaid, any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, and of any Security issued in exchange or substitution
therefor, irrespective of whether or not any notation in regard thereto is made
upon such Security or any Security issued in exchange or substitution therefor.
ARTICLE VIII
SECURITYHOLDERS' MEETINGS
SECTION 8.01 Purposes of Meetings.
A meeting of Securityholders may be called at any time and from time to
time pursuant to the provisions of this Article VIII for any of the following
purposes:
(a) to give any notice to Peoples or to the Debenture Trustee,
or to give any directions to the Debenture Trustee, or to consent to the waiving
of any Default hereunder and its consequences, or to take any other action
authorized to be taken by Securityholders pursuant to any of the provisions of
Article V;
(b) to remove the Debenture Trustee and nominate a successor
trustee pursuant to the provisions of Article VI;
(c) to consent to the execution of an indenture or indentures
supplemental hereto pursuant to the provisions of Section 9.02; or
(d) to take any other action authorized to be taken by or on
behalf of the holders of any specified aggregate principal amount of such
Securities under any other provision of this Indenture or under applicable law.
SECTION 8.02 Call of Meetings by Debenture Trustee.
-------------------------------------
The Debenture Trustee may at any time call a meeting of Securityholders
to take any action specified in Section 8.01, to be held at such time and at
such place in New York, New York as the Debenture Trustee shall determine.
Notice of every meeting of the Securityholders, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at
such meeting, shall be mailed to holders of Securities at their addresses as
they shall appear on the Security Register. Such notice shall be mailed not less
than 20 nor more than 180 days prior to the date fixed for the meeting.
SECTION 8.03 Call of Meetings by Peoples or Securityholders.
----------------------------------------------
In case at any time Peoples, pursuant to a resolution of the Board of
Directors, or the holders of at least 10% in aggregate principal amount of the
Securities then outstanding, shall have requested the Debenture Trustee to call
a meeting of Securityholders, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Debenture Trustee
shall not have mailed the notice of such meeting within 20 days after receipt of
such request, then Peoples or such Securityholders may determine the time and
the place in Marietta, Ohio for such meeting and may call such meeting to take
any action authorized in Section 8.01, by mailing notice thereof as provided in
Section 8.02.
SECTION 8.04 Qualifications for Voting.
To be entitled to vote at any meeting of Securityholders, a Person
shall be (a) a holder of one or more Securities or (b) a Person appointed by an
instrument in writing as proxy by a holder of one or more Securities. The only
Persons who shall be entitled to be present or to speak at any meeting of
Securityholders shall be the Persons entitled to vote at such meeting and their
counsel and any representatives of the Debenture Trustee and its counsel and any
representatives of Peoples and its counsel.
SECTION 8.05 Regulations.
Notwithstanding any other provisions of this Indenture, the Debenture
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Securityholders, in regard to proof of the holding of Securities and
of the appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall think fit.
The Debenture Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
Peoples or by Securityholders as provided in Section 8.03, in which case Peoples
or the Securityholders calling the meeting, as the case may be, shall in like
manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by majority vote of the meeting.
Subject to the provisions of Section 8.04, at any meeting each holder
of Securities or proxy therefor shall be entitled to one vote for each $1,000
principal amount of Securities held or represented by him; provided, however,
that no vote shall be cast or counted at any meeting in respect of any Security
challenged as not outstanding and ruled by the chairman of the meeting to be not
outstanding. The chairman of the meeting shall have no right to vote other than
by virtue of Securities held by him or instruments in writing as aforesaid duly
designating him as the person to vote on behalf of other Securityholders. Any
meeting of Securityholders duly called pursuant to the provisions of Section
8.02 or 8.03 may be adjourned from time to time by a majority of those present,
and the meeting may be held as so adjourned without further notice.
SECTION 8.06 Voting.
The vote upon any resolution submitted to any meeting of holders of
Securities shall be by written ballots on which shall be subscribed the
signatures of such holders or of their representatives by proxy and the serial
number or numbers of the Securities held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified written reports in
triplicate of all votes cast at the meeting. A record in duplicate of the
proceedings of each meeting of Securityholders shall be prepared by the
secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and
affidavits by one or more persons having knowledge of the facts setting forth a
copy of the notice of the meeting and showing that said notice was mailed as
provided in Section 8.02. The record shall show the serial numbers of the
Securities voting in favor of or against any resolution. The record shall be
signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one of the duplicates shall be delivered to Peoples and the
other to the Debenture Trustee to be preserved by the Debenture Trustee, the
latter to have attached thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the
matters therein stated.
ARTICLE IX
AMENDMENTS
SECTION 9.01 Without Consent of Securityholders.
Peoples and the Debenture Trustee may from time to time and at any time
amend this Indenture, without the consent of the Securityholders, for one or
more of the following purposes:
(a) to evidence the succession of another Person to Peoples,
or successive successions, and the assumption by the successor Person of the
covenants, agreements and obligations of Peoples pursuant to Article X hereof;
(b) to add to the covenants of Peoples such further covenants,
restrictions or conditions for the protection of the Securityholders as the
Board of Directors and the Debenture Trustee shall consider to be for the
protection of the Securityholders, and to make the occurrence, or the occurrence
and continuance, of a default in any of such additional covenants, restrictions
or conditions a Default or an Event of Default permitting the enforcement of all
or any of the remedies provided in this Indenture as herein set forth; provided,
however, that in respect of any such additional covenant, restriction or
condition such amendment may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the case of
other defaults) or may provide for an immediate enforcement upon such default or
may limit the remedies available to the Debenture Trustee upon such default;
(c) to provide for the issuance under this Indenture of Securities in coupon
form (including Securities registrable as to principal only) and to provide for
exchangeability of such Securities with the Securities issued hereunder in fully
registered form and to make all appropriate changes for such purpose;
(c) to cure any ambiguity or to correct or supplement any provision contained in
or in any supplemental indenture which may be defective or inconsistent with any
other provision contained herein or in any supplemental indenture; or to make
such other provisions in regard to matters or questions arising under this
Indenture, provided that any such action shall not materially adversely affect
the interests of the holders of the Securities;
(e) to evidence and provide for the acceptance of
appointment hereunder by a successor trustee with respect to the Securities;
(f) to make provision for transfer procedures, certification,
book-entry provisions, the form of restricted securities legends, if any, to be
placed on Securities, and all other matters required pursuant to Section 2.07 or
otherwise necessary, desirable or appropriate in connection with the issuance of
Securities to holders of Capital Securities in the event of a distribution of
Securities by the Trust following a Dissolution Event, provided that any such
action shall not materially adversely affect the interests of the holders of the
Securities;
(g) to qualify or maintain qualification of this Indenture
under the Trust Indenture Act; or
(h) to make any change that does not adversely affect the
rights of any Securityholder in any material respect.
The Debenture Trustee is hereby authorized to join with Peoples in the
execution of any supplemental indenture to effect such amendment, to make any
further appropriate agreements and stipulations which may be therein contained
and to accept the conveyance, transfer and assignment of any property
thereunder, and the Debenture Trustee may, in its discretion, but shall not be
obligated to enter into any such supplemental indenture which affects the
Debenture Trustee's own rights, duties or immunities under this Indenture or
otherwise.
Any amendment to this Indenture authorized by the provisions of this
Section 9.01 may be executed by Peoples and the Debenture Trustee without the
consent of the holders of any of the Securities at the time outstanding,
notwithstanding any of the provisions of Section 9.02.
SECTION 9.02 With Consent of Securityholders.
With the consent (evidenced as provided in Section 7.01) of the holders
of a majority in aggregate principal amount of the Securities at the time
outstanding, Peoples, when authorized by a Board Resolution, and the Debenture
Trustee may from time to time and at any time amend this Indenture for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of modifying in any manner the rights of
the holders of the Securities; provided, however, that no such amendment shall,
without the consent of the holders of each Security then outstanding and
affected thereby (i) change the Maturity Date of any Security, or reduce the
rate or extend the time of payment of interest thereon (except as contemplated
by Article XVI), or reduce the principal amount thereof, or change any
prepayment provisions, or make the principal thereof or any interest or premium
thereon payable in any coin or currency other than U.S. dollars, or impair or
affect the right of any Securityholder to institute suit for payment thereof, or
(ii) reduce the aforesaid percentage of Securities, the holders of which are
required to consent to any such amendment to the Indenture; provided, however,
that if the Securities are held by the Trust, such amendment shall not be
effective until the holders of a majority in liquidation amount of Trust
Securities shall have consented to such amendment; provided, further, that if
the consent of the holder of each outstanding Security is required, such
amendment shall not be effective until each holder of the Trust Securities shall
have consented to such amendment.
Upon the request of Peoples accompanied by a copy of a resolution of
the Board of Directors certified by its Secretary or Assistant Secretary
authorizing the execution of any supplemental indenture affecting such
amendment, and upon the filing with the Debenture Trustee of evidence of the
consent of Securityholders as aforesaid, the Debenture Trustee shall join with
Peoples in the execution of such supplemental indenture unless such supplemental
indenture affects the Debenture Trustee's own rights, duties or immunities under
this Indenture or otherwise, in which case the Debenture Trustee may in its
discretion, but shall not be obligated to, enter into such supplemental
indenture.
Promptly after the execution by Peoples and the Debenture Trustee of
any supplemental indenture pursuant to the provisions of this Section, the
Debenture Trustee shall transmit by mail, first class postage prepaid, a notice,
prepared by Peoples, setting forth in general terms the substance of such
supplemental indenture, to the Securityholders as their names and addresses
appear upon the Security Register. Any failure of the Debenture Trustee to mail
such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture.
It shall not be necessary for the consent of the Securityholders under
this Section 9.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.
SECTION 9.03 Compliance with Trust Indenture Act; Effect
of Supplemental Indentures.
-------------------------------------------
Any supplemental indenture executed pursuant to the provisions of this
Article IX shall comply with the Trust Indenture Act. Upon the execution of any
supplemental indenture pursuant to the provisions of this Article IX, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Debenture Trustee, Peoples and the
holders of Securities shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.
SECTION 9.04 Notation on Securities.
Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article IX may bear a
notation in form approved by the Debenture Trustee as to any matter provided for
in such supplemental indenture. If Peoples or the Debenture Trustee shall so
determine, new Securities so modified as to conform, in the opinion of the
Debenture Trustee and the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared and
executed by Peoples, authenticated by the Debenture Trustee or the
Authenticating Agent and delivered in exchange for the Securities then
outstanding.
SECTION 9.05 Evidence of Compliance of Supplemental Indenture to be
Furnished to Debenture Trustee.
The Debenture Trustee, subject to the provisions of Sections 6.01 and
6.02, may receive an Officers' Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant hereto
complies with the requirements of this Article IX.
ARTICLE X
CONSOLIDATION, MERGER, SALE, CONVEYANCE, TRANSFER AND LEASE
SECTION 10.01 Peoples May Consolidate, etc., on Certain Terms.
Nothing contained in this Indenture or in any of the Securities shall
prevent any consolidation, conversion or merger of Peoples with or into any
other Person (whether or not affiliated with Peoples, as the case may be), or
successive consolidations, conversions or mergers in which Peoples or its
successor or successors, as the case may be, shall be a party or parties, or
shall prevent any sale, conveyance, transfer or lease of the property of
Peoples, or its successor or successors as the case may be, as an entirety, or
substantially as an entirety, to any other Person (whether or not affiliated
with Peoples, or its successor or successors, as the case may be) authorized to
acquire and operate the same, provided that (a) Peoples is the surviving Person,
or the Person formed by or surviving any such consolidation, conversion or
merger (if other than Peoples) or to which such sale, conveyance, transfer or
lease of property is made is a Person organized and existing under the laws of
the United States or any State thereof or the District of Columbia, and (b) if
Peoples is not the surviving Person, upon any such consolidation, conversion,
merger, sale, conveyance, transfer or lease, the due and punctual payment of the
principal of (and premium, if any) and interest on the Securities according to
their tenor and the due and punctual performance and observance of all the
covenants and conditions of this Indenture to be kept or performed by Peoples
shall be expressly assumed by the surviving Person, by supplemental indenture
(which shall conform to the provisions of the Trust Indenture Act as then in
effect) satisfactory in form to the Debenture Trustee executed and delivered to
the Debenture Trustee by the Person formed by such consolidation or conversion,
or into which Peoples shall have been merged or converted, or by the Person
which shall have acquired such property, as the case may be, and (c) after
giving effect to such consolidation, conversion, merger, sale, conveyance,
transfer or lease, no Default or Event of Default shall have occurred and be
continuing.
SECTION 10.02 Successor Person to be Substituted for Peoples
In case of any such consolidation, conversion, merger, sale,
conveyance, transfer or lease and upon the assumption by the successor Person,
by supplemental indenture, executed and delivered to the Debenture Trustee and
satisfactory in form to the Debenture Trustee, of the obligation of due and
punctual payment of the principal of (and premium, if any) and interest on all
of the Securities and the due and punctual performance and observance of all of
the covenants and conditions of this Indenture to be performed or observed by
Peoples, such successor Person shall succeed to and be substituted for Peoples,
with the same effect as if it had been named herein as a party hereto, and
Peoples thereupon shall be relieved of any further liability or obligation
hereunder or upon the Securities. Such successor Person thereupon may cause to
be signed, and may issue either in its own name or in the name of Peoples, any
or all of the Securities issuable hereunder which theretofore shall not have
been signed by Peoples and delivered to the Debenture Trustee or the
Authenticating Agent; and, upon the order of such successor Person instead of
Peoples and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Debenture Trustee or the Authenticating Agent shall
authenticate and deliver any Securities which previously shall have been signed
and delivered by any Officer of Peoples to the Debenture Trustee or the
Authenticating Agent for authentication, and any Securities which such successor
Person thereafter shall cause to be signed and delivered to the Debenture
Trustee or the Authenticating Agent for that purpose. All the Securities so
issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with
the terms of this Indenture as though all of such Securities had been issued at
the date of the execution hereof.
SECTION 10.03 Opinion of Counsel to be Given Debenture Trustee.
The Debenture Trustee, subject to the provisions of Sections 6.01 and
6.02, may receive an Opinion of Counsel as conclusive evidence that any
consolidation, conversion, merger, sale, conveyance, transfer or lease, and any
assumption, permitted or required by the terms of this Article X complies with
the provisions of this Article X.
ARTICLE XI
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 11.01 Discharge of Indenture.
When (a) Peoples shall deliver to the Debenture Trustee for
cancellation all Securities theretofore authenticated (other than any Securities
which shall have been destroyed, lost or stolen and which shall have been
replaced as provided in Section 2.08) and not theretofore cancelled, or (b) all
the Securities not theretofore cancelled or delivered to the Debenture Trustee
for cancellation shall have become due and payable, or are by their terms to
become due and payable within one year or are to be called for prepayment within
one year under arrangements satisfactory to the Debenture Trustee for the giving
of notice of prepayment, and Peoples shall deposit with the Debenture Trustee,
in trust, funds sufficient to pay on the Maturity Date or upon prepayment all of
the Securities (other than any Securities which shall have been destroyed, lost
or stolen and which shall have been replaced as provided in Section 2.08) not
theretofore cancelled or delivered to the Debenture Trustee for cancellation,
including principal (and premium, if any) and interest (including Compounded
Interest and Additional Sums, if any, or Liquidated Damages, if any) due or to
become due to the Maturity Date or prepayment date, as the case may be, but
excluding, however, the amount of any moneys for the payment of principal of (or
premium, if any) or interest (including Compounded Interest and Additional Sums,
if any, or Liquidated Damages, if any) on the Securities (1) theretofore repaid
to Peoples in accordance with the provisions of Section 11.04, or (2) paid to
any State or to the District of Columbia pursuant to its unclaimed property or
similar laws, and if, in either case Peoples shall also pay or cause to be paid
all other sums payable hereunder by Peoples, then this Indenture shall cease to
be of further effect except for the provisions of Sections 2.02, 2.07, 2.08,
3.01, 3.02, 3.04, 6.06, 6.10 and 11.04 hereof, which shall survive until such
Securities shall mature and be paid. Thereafter, Sections 6.06, 6.10 and 11.04
shall survive, and the Debenture Trustee, on demand of Peoples accompanied by
any Officers' Certificate and an Opinion of Counsel and at the cost and expense
of Peoples, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture; Peoples, however, hereby agrees to reimburse the
Debenture Trustee for any costs or expenses thereafter reasonably and properly
incurred by the Debenture Trustee in connection with this Indenture or the
Securities.
SECTION 11.02 Deposited Moneys and U.S. Government
Obligations to be Held in Trust by Debenture Trustee.
Subject to the provisions of Section 11.04, all moneys and U.S.
Government Obligations deposited with the Debenture Trustee pursuant to Sections
11.01 or 11.05 shall be held in trust and applied by it to the payment, either
directly or through any paying agent (including Peoples if acting as its own
paying agent), to the holders of the particular Securities for the payment of
which such moneys or U.S. Government Obligations have been deposited with the
Debenture Trustee, of all sums due and to become due thereon for principal,
premium, if any, and interest.
Peoples shall pay and indemnify the Debenture Trustee against any tax,
fee or other charge imposed on or assessed against the U.S. Governmental
Obligations deposited pursuant to Section 11.05 or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the holders of outstanding Securities.
SECTION 11.03 Paying Agent to Repay Moneys Held.
Upon the satisfaction and discharge of this Indenture all moneys then
held by any paying agent of the Securities (other than the Debenture Trustee)
shall, upon written demand of Peoples, be repaid to it or paid to the Debenture
Trustee, and thereupon such paying agent shall be released from all further
liability with respect to such moneys.
SECTION 11.04 Return of Unclaimed Moneys.
Any moneys deposited with or paid to the Debenture Trustee or any
paying agent for payment of the principal of (or premium, if any) or interest
(including Compounded Interest and Additional Sums, if any, or Liquidated
Damages, if any) on Securities and not applied but remaining unclaimed by the
holders of Securities for two years after the date upon which the principal of
(or premium, if any) or interest (including Compounded Interest and Additional
Sums, if any, or Liquidated Damages, if any) on such Securities, as the case may
be, shall have become due and payable, shall be repaid to Peoples by the
Debenture Trustee or such paying agent; and the holder of any of the Securities
shall thereafter look only to Peoples for any payment which such holder may be
entitled to collect and all liability of the Debenture Trustee or such paying
agent with respect to such moneys shall thereupon cease.
SECTION 11.05 Defeasance Upon Deposit of Moneys or U.S.
Government Obligations.
Peoples shall be deemed to have been Discharged (as defined below) from
its obligations with respect to the Securities on the 91st day after the
applicable conditions set forth below have been satisfied:
(a) Peoples shall have deposited or caused to be deposited
irrevocably with the Debenture Trustee or the Defeasance Agent (as defined
below) as trust funds in trust, specifically pledged as security for, and
dedicated solely to, the benefit of the holders of the Securities (i) money in
an amount, or (ii) U.S. Government Obligations which through the payment of
interest and principal in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment, money in an
amount, or (iii) a combination of (i) and (ii), sufficient, in the opinion (with
respect to (ii) and (iii)) of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Debenture Trustee and the Defeasance Agent, if any, to pay and discharge each
installment of principal of and interest and premium, if any, on the outstanding
Securities on the dates such installments of principal, interest or premium are
due;
(b) if the Securities are then listed on any national
securities exchange, Peoples shall have delivered to the Debenture Trustee and
the Defeasance Agent, if any, an Opinion of Counsel to the effect that the
exercise of the option under this Section 11.05 would not cause such Securities
to be delisted from such exchange;
(c) no Default or Event of Default with respect to the
Securities shall have occurred and be continuing on the date of such deposit;
and
(d) Peoples shall have delivered to the Debenture Trustee and
the Defeasance Agent, if any, an Opinion of Counsel to the effect that holders
of the Securities will not recognize income, gain or loss for United States
federal income tax purposes as a result of the exercise of the option under this
Section 11.05 and will be subject to United States federal income tax on the
same amount and in the same manner and at the same times as would have been the
case if such option had not been exercised.
"Discharged" means that Peoples shall be deemed to have paid and
discharged the entire indebtedness represented by, and obligations under, the
Securities and to have satisfied all the obligations under this Indenture
relating to the Securities (and the Debenture Trustee, at the expense of
Peoples, shall execute proper instruments acknowledging the same), except (1)
the rights of holders of Securities to receive, from the trust fund described in
clause (a) above, payment of the principal of and the interest and premium, if
any, on the Securities when such payments are due; (2) Peoples' obligations with
respect to the Securities under Sections 2.07, 2.08, 5.02, 6.10 and 11.04 and
with respect to the Debenture Trustee under Section 6.06; and (3) the rights,
powers, trusts, duties and immunities of the Debenture Trustee hereunder.
"Defeasance Agent" means another financial institution which is
eligible to act as Debenture Trustee hereunder and which assumes all of the
obligations of the Debenture Trustee necessary to enable the Debenture Trustee
to act hereunder. In the event such a Defeasance Agent is appointed pursuant to
this Section, the following conditions shall apply:
(1) the Debenture Trustee shall have approval rights over the
document appointing such Defeasance Agent and the document setting forth such
Defeasance Agent's rights and responsibilities; and
(2) the Defeasance Agent shall provide verification to the
Debenture Trustee acknowledging receipt of sufficient money and/or U.S.
Government Obligations to meet the applicable conditions set forth in this
Section 11.05.
ARTICLE XII
IMMUNITY OF INCORPORATORS, SHAREHOLDERS,
OFFICERS AND DIRECTORS
SECTION 12.01 Indenture and Securities Solely Corporate Obligations.
No recourse for the payment of the principal of or premium, if any, or
interest (including Compounded Interest and Additional Sums, if any, or
Liquidated Damages, if any) on any Security, or for any claim based thereon or
otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of Peoples in this Indenture, or in any Security, or
because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, shareholder, employee, officer or director, as such,
past, present or future, of Peoples or of any successor Person to Peoples,
either directly or through Peoples or any successor Person to Peoples, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise; it being expressly understood that all
such liability is hereby expressly waived and released as a condition of, and as
a consideration for, the execution of this Indenture and the issuance of the
Securities.
ARTICLE XIII
MISCELLANEOUS PROVISIONS
SECTION 13.01 Successors.
All the covenants, stipulations, promises and agreements in this
Indenture contained by Peoples shall bind its successors and assigns whether so
expressed or not.
SECTION 13.02 Official Acts by Successor Person.
Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of Peoples
shall and may be done and performed with like force and effect by the like
board, committee, officer, or other individuals or group of individuals acting
in similar capacities, of any Person that shall at the time be the lawful sole
successor of Peoples.
SECTION 13.03 Surrender of Powers of Peoples.
Peoples by instrument in writing executed by authority of not less than
2/3 (two-thirds) of its Board of Directors and delivered to the Debenture
Trustee may surrender any of the powers reserved to Peoples, and thereupon such
power so surrendered shall terminate both as to Peoples, as the case may be, and
as to any successor Person.
SECTION 13.04 Addresses for Notices, etc.
Any notice or demand which by any provision of this Indenture is
required or permitted to be given or served by the Debenture Trustee or by the
holders of Securities on Peoples may be given or served by being deposited
postage prepaid by first class mail, registered or certified mail, overnight
courier service or conformed telecopy addressed (until another address is filed
by Peoples with the Debenture Trustee for the purpose) to Peoples at 138 Putnam
Street, P.O. Box 738, Marietta, Ohio 45750-0738, Attention: Charles R. Hunsaker,
telecopy: (740) 376-7277. Any notice, direction, request or demand by any
Securityholder to or upon the Debenture Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or made in writing at the
office of Wilmington Trust Company, 1100 North Market Street, Wilmington,
Delaware 19890-0001, Attention: Corporate Trust Administration (unless another
address is provided by the Debenture Trustee to Peoples for such purpose). Any
notice or communication to a Securityholder shall be mailed by first class mail
to his or her address shown on the Security Register kept by the security
registrar for the Securities.
SECTION 13.05 Governing Law.
This Indenture and each Security shall be deemed to be a contract made
under the laws of the State of New York, and for all purposes shall be governed
by and construed in accordance with the laws of said State without regard to
conflict of law principles thereof.
SECTION 13.06 Evidence of Compliance with Conditions Precedent.
Upon any application or demand by Peoples to the Debenture Trustee to
take any action under any of the provisions of this Indenture, Peoples shall
furnish to the Debenture Trustee an Officers' Certificate stating that in the
opinion of the signers all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion
of Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.
Each certificate or opinion provided for in this Indenture and
delivered to the Debenture Trustee with respect to compliance with a condition
or covenant provided for in this Indenture (except certificates delivered
pursuant to Section 3.06) shall include (1) a statement that the Person making
such certificate or opinion has read such covenant or condition; (2) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based; (3) a statement that, in the opinion of such Person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.
SECTION 13.07 Business Days.
In any case where the date of payment of principal of (or premium, if
any) or interest on the Securities is not a Business Day, the payment of such
principal of (or premium, if any) or interest on the Securities will not be made
on such date but will be made on the next succeeding Business Day, except that
if such next succeeding Business Day falls in the next succeeding calendar year,
then such payment shall be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on the original date of
payment, and no interest shall accrue for the period from and after such date.
SECTION 13.08 Trust Indenture Act to Control.
If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by Sections 310 to 318,
inclusive, of the Trust Indenture Act, such imposed duties shall control.
SECTION 13.09 Table of Contents, Headings, etc.
The table of contents and the titles and headings of the articles and
sections of this Indenture have been inserted for convenience of reference only,
are not to be considered a part hereof, and shall in no way modify or restrict
any of the terms or provisions hereof.
SECTION 13.10 Execution in Counterparts.
This Indenture may be executed in any number of counterparts, each of
which shall be an original, but such counterparts shall together constitute but
one and the same instrument.
SECTION 13.11 Separability.
In case any one or more of the provisions contained in this Indenture
or in the Securities shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Indenture or of the Securities,
but this Indenture and the Securities shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.
SECTION 13.12 Assignment.
Peoples will have the right at all times to assign any of its
respective rights or obligations under this Indenture to a direct or indirect
wholly-owned Subsidiary of Peoples, provided that, in the event of any such
assignment, Peoples will remain liable for all such obligations. Subject to the
foregoing, this Indenture is binding upon and inures to the benefit of the
parties thereto and their respective successors and assigns. This Indenture may
not otherwise be assigned by the parties thereto.
SECTION 13.13 Acknowledgment of Rights.
Peoples acknowledges that, with respect to any Securities held by the
Trust or a trustee of such Trust, if the Property Trustee of such Trust fails to
enforce its rights under this Indenture as the holder of the Securities held as
the assets of the Trust, any holder of Capital Securities may institute legal
proceedings directly against Peoples to enforce such Property Trustee's rights
under this Indenture without first instituting any legal proceedings against
such Property Trustee or any other person or entity. Notwithstanding the
foregoing, if an Event of Default has occurred and is continuing and such event
is attributable to the failure of Peoples to pay principal of (or premium, if
any) or interest on the Securities when due, Peoples acknowledges that a holder
of Capital Securities may directly institute a proceeding for enforcement of
payment to such holder of the principal of (or premium, if any) or interest on
the Securities having an aggregate principal amount equal to the aggregate
liquidation amount of the Capital Securities of such holder on or after the
respective due date specified in the Securities.
ARTICLE XIV
PREPAYMENT OF SECURITIES; MANDATORY AND
OPTIONAL SINKING FUND
SECTION 14.01 Special Event Prepayment.
If, prior to the Initial Optional Redemption Date, a Special Event has
occurred and is continuing, then notwithstanding Section 14.02(a), Peoples shall
have the right, at any time within 90 days following the occurrence of such
Special Event, upon (i) not less than 45 days written notice to the Debenture
Trustee and (ii) not less than 30 days nor more than 60 days' written notice to
the Securityholders, to prepay the Securities, in whole (but not in part), at
the Special Event Prepayment Price. Following a Special Event, Peoples shall
take such action as is necessary to promptly determine the Special Event
Prepayment Price, including, without limitation, the appointment of a Quotation
Agent. The Special Event Prepayment Price shall be paid prior to 12:00 noon, New
York City time, on the date of such prepayment or such earlier time as Peoples
determines, provided that Peoples shall deposit with the Debenture Trustee by
10:00 a.m., New York City time, on the date such Special Event Prepayment Price
is to be paid, an amount sufficient to pay the Special Event Prepayment Price.
SECTION 14.02 Optional Prepayment by Peoples.
(a) Subject to Section 14.02(b), Peoples shall have the right to prepay
the Securities, in whole or in part, at any time on or after the Initial
Optional Redemption Date, upon not less than 30 days and not more than 60 days'
written notice to the Securityholders and the Debenture Trustee, at the
prepayment prices set forth below plus, in each case, accrued and unpaid
interest thereon (including Compounded Interest and Additional Sums, if any or
Liquidated Damages, if any) to the applicable date of prepayment (the "Optional
Prepayment Price") if prepaid during the 12-month period beginning May 1 of the
years indicated below:
Percentage
Year of Principal
2009 104.310
2010 103.879
2011 103.448
2012 103.017
2013 102.586
2014 102.155
2015 101.724
2016 101.293
2017 100.862
2018 100.431
2019 and thereafter 100.000
If the Securities are only partially prepaid pursuant to this Section
14.02, the Securities to be prepaid shall be selected on a pro rata basis not
more than 60 days prior to the date fixed for prepayment from the outstanding
Securities not previously called for prepayment; provided, however, that with
respect to Securityholders that would be required to hold Securities with an
aggregate principal amount of less than $100,000 but more than an aggregate
principal amount of zero as a result of such pro rata prepayment, Peoples shall
prepay Securities of each such Securityholder so that after such prepayment such
Securityholder shall hold Securities either with an aggregate principal amount
of at least $100,000 or such Securityholder no longer holds any Securities, and
shall use such method (including, without limitation, by lot) as the Debenture
Trustee shall deem fair and appropriate; provided, further, that any such
proration may be made on the basis of the aggregate principal amount of
Securities held by each Securityholder and may be made by making such
adjustments as the Debenture Trustee deems fair and appropriate in order that
only Securities in denominations of $1,000 or integral multiples thereof shall
be prepaid. The Optional Prepayment Price shall be paid prior to 12:00 noon, New
York City time, on the date of such prepayment or at such earlier time as
Peoples determines, provided that Peoples shall deposit with the Debenture
Trustee by 10:00 a.m., New York City time, on the date such Optional Prepayment
Price is to be paid, an amount sufficient to pay the Optional Prepayment Price.
(b) Notwithstanding the first sentence of Section 14.02(a), upon the
entry of an order for dissolution of the Trust by a court of competent
jurisdiction, the Securities thereafter will be subject to optional prepayment,
in whole only, but not in part, on or after the Initial Optional Redemption
Date, at the applicable Optional Prepayment Prices and otherwise in accordance
with this Article XIV.
SECTION 14.03 No Sinking Fund.
The Securities are not entitled to the benefit of any sinking fund.
SECTION 14.04 Notice of Prepayment; Selection of Securities.
In case Peoples shall desire to exercise the right to prepay all, or,
as the case may be, any part of the Securities in accordance with their terms,
it shall fix a date for prepayment and shall mail a notice of such prepayment at
least 30 and not more than 60 days prior to the date fixed for prepayment to the
holders of Securities to be so prepaid as a whole or in part at their last
addresses as the same appear on the Security Register. Such mailing shall be by
first class mail. The notice if mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the holder
receives such notice. In any case, failure to give such notice by mail or any
defect in the notice to the holder of any Security designated for prepayment as
a whole or in part shall not affect the validity of the proceedings for the
prepayment of any other Security.
Each such notice of prepayment shall specify the CUSIP number, if
applicable, of the Securities to be prepaid, the date fixed for prepayment, the
Prepayment Price at which the Securities are to be prepaid (or the method by
which such Prepayment Price is to be calculated), the place or places of payment
that payment will be made upon presentation and surrender of the Securities,
that interest accrued to the date fixed for prepayment will be paid as specified
in said notice, and that on and after said date, interest thereon or on the
portions thereof to be prepaid will cease to accrue. If less than all of the
Securities are to be prepaid, the notice of prepayment shall specify the numbers
of the Securities to be prepaid. In case any Security is to be prepaid in part
only, the notice of prepayment shall state the portion of the principal amount
thereof to be prepaid and shall state that on and after the date fixed for
prepayment, upon surrender of such Security, a new Security or Securities in
principal amount equal to the portion thereof that has not been prepaid will be
issued.
By 10:00 a.m., New York City time, on the prepayment date specified in
the notice of prepayment given as provided in this Section, Peoples will deposit
with the Debenture Trustee or with one or more paying agents an amount of money
sufficient to prepay on the prepayment date all the Securities so called for
prepayment at the appropriate Prepayment Price.
SECTION 14.05 Payment of Securities Called for Prepayment.
If notice of prepayment has been given as provided in Section 14.04,
the Securities or portions of Securities with respect to which such notice has
been given shall become due and payable on the date and at the place or places
stated in such notice at the applicable Prepayment Price (subject to the rights
of holders of Securities) at the close of business on a regular record date in
respect of an Interest Payment Date occurring on or prior to the prepayment
date) and on and after said date (unless Peoples shall default in the payment of
such Securities at the Prepayment Price interest (including Compounded Interest
and Additional Sums, if any or Liquidated Damages, if any) on the Securities or
portions of Securities so called for prepayment shall cease to accrue. On
presentation and surrender of such Securities at a place of payment specified in
said notice, the said Securities or the specified portions thereof shall be paid
and prepaid by Peoples at the applicable Prepayment Price (subject to the rights
of holders of Securities on the close of business on a regular record date in
respect of an Interest Payment Date occurring on or prior to the prepayment
date).
Upon presentation of any Security prepaid in part only, Peoples shall
execute and the Debenture Trustee or Authenticating Agent shall authenticate and
make available for delivery to the holder thereof, at the expense of Peoples, a
new Security or Securities of authorized denominations, in principal amount
equal to the portion of the Security so presented that has not been prepaid.
ARTICLE XV
SUBORDINATION OF SECURITIES
SECTION 15.01 Agreement to Subordinate.
Peoples covenants and agrees, and each holder of Securities issued
hereunder likewise covenants and agrees, that the Securities shall be issued
subject to the provisions of this Article XV; and each holder of a Security,
whether upon original issue or upon transfer or assignment thereof, accepts and
agrees to be bound by such provisions.
The payment by Peoples of the principal of, premium, if any, and
interest (including Compounded Interest and Additional Sums, if any, or
Liquidated Damages, if any) on all Securities issued hereunder shall, to the
extent and in the manner hereinafter set forth, be subordinated and junior in
right of payment to all Senior Indebtedness, whether outstanding at the date of
this Indenture or thereafter incurred.
No provision of this Article XV shall prevent the occurrence of any
Default or Event of Default hereunder.
SECTION 15.02 Default on Senior Indebtedness.
In the event and during the continuation of any default by Peoples in
the payment of principal, premium, interest or any other payment due on any
Senior Indebtedness, or in the event that the maturity of any Senior
Indebtedness has been accelerated because of a default, then, in either case, no
payment shall be made by Peoples with respect to the principal (including
prepayment payments) of (or premium, if any) or interest on the Securities
(including Compounded Interest and Additional Sums (if any) or Liquidated
Damages (if any) or any other amounts which may be due on the Securities
pursuant to the terms hereof or thereof).
In the event of the acceleration of the maturity of the Securities,
then no payment shall be made by Peoples with respect to the principal
(including prepayment payments) of (or premium, if any) or interest on the
Securities (including Compounded Interest and Additional Sums (if any) or
Liquidated Damages (if any) or any other amounts which may be due on the
Securities pursuant to the terms hereof or thereof) until the holders of all
Senior Indebtedness outstanding at the time of such acceleration shall receive
payment in full of such Senior Indebtedness (including any amounts due upon
acceleration).
In the event that, notwithstanding the foregoing, any payment shall be
received by the Debenture Trustee when such payment is prohibited by the
preceding paragraphs of this Section 15.02, such payment shall be held in trust
for the benefit of, and shall be paid over or delivered to, the holders of
Senior Indebtedness or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Senior Indebtedness
may have been issued, as their respective interests may appear, but only to the
extent that the holders of the Senior Indebtedness (or their representative or
representatives or a trustee) notify the Debenture Trustee in writing within 90
days of such payment of the amounts then due and owing on such Senior
Indebtedness, and only the amounts specified in such notice to the Debenture
Trustee shall be paid to the holders of such Senior Indebtedness or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear.
SECTION 15.03 Liquidation; Dissolution; Bankruptcy.
Upon any payment by Peoples or distribution of assets of Peoples of any
kind or character, whether in cash, property or securities, to creditors upon
any dissolution, winding-up, liquidation or reorganization of Peoples, whether
voluntary or involuntary or in bankruptcy, insolvency, receivership or other
proceedings, the holders of all Senior Indebtedness of Peoples will first be
entitled to receive payment in full of such Senior Indebtedness before any
payment is made by Peoples on account of the principal of (or premium, if any)
or interest on the Securities (including Compounded Interest and Additional Sums
(if any) or Liquidated Damages (if any) or any other amounts which may be due on
the Securities pursuant to the terms hereof or thereof); and upon any such
dissolution, winding-up, liquidation or reorganization, any payment by Peoples,
or distribution of assets of Peoples of any kind or character, whether in cash,
property or securities, which the Securityholders or the Debenture Trustee would
be entitled to receive from Peoples, except for the provisions of this Article
XV, shall be paid by Peoples or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Securityholders or by the Debenture Trustee under the Indenture if
received by them or it, directly to the holders of Senior Indebtedness of
Peoples (pro rata to such holders on the basis of the respective amounts of
Senior Indebtedness held by such holders, as calculated by Peoples) or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent
necessary to pay all such Senior Indebtedness in full, in money or moneys worth,
after giving effect to any concurrent payment or distribution to or for the
holders of such Senior Indebtedness, before any payment or distribution is made
to the Securityholders or to the Debenture Trustee.
In the event that, notwithstanding the foregoing, any payment or
distribution of assets of Peoples of any kind or character prohibited by the
foregoing, whether in cash, property or securities, shall be received by the
Debenture Trustee before all Senior Indebtedness is paid in full, or provision
is made for such payment in money in accordance with its terms, such payment or
distribution shall be held in trust for the benefit of and shall be paid over or
delivered to the holders of such Senior Indebtedness or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing such Senior Indebtedness may have been issued,
as their respective interests may appear, as calculated by Peoples, for
application to the payment of all Senior Indebtedness remaining unpaid to the
extent necessary to pay all such Senior Indebtedness in full in money in
accordance with its terms, after giving effect to any concurrent payment or
distribution to or for the benefit of the holders of such Senior Indebtedness.
For purposes of this Article XV, the words "cash, property or
securities" shall not be deemed to include shares of stock of Peoples as
reorganized or readjusted, or securities of Peoples or any other corporation
provided for by a plan of reorganization or readjustment, the payment of which
is subordinated at least to the extent provided in this Article XV with respect
to the Securities to the payment of Senior Indebtedness that may at the time be
outstanding, provided that (i) such Senior Indebtedness is assumed by the new
corporation, if any, resulting from any such reorganization or readjustment, and
(ii) the rights of the holders of such Senior Indebtedness are not, without the
consent of such holders, altered by such reorganization or readjustment. The
consolidation of Peoples with, or the merger or conversion of Peoples into,
another Person or the liquidation or dissolution of Peoples following the sale,
conveyance, transfer or lease of its property as an entirety, or substantially
as an entirety, to another Person upon the terms and conditions provided for in
Article X of this Indenture shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section 15.03 if such
other Person shall, as a part of such consolidation, merger, conversion, sale,
conveyance, transfer or lease, comply with the conditions stated in Article X of
this Indenture. Nothing in Sections 15.01 or 15.02 or in this Section 15.03
shall apply to claims of, or payments to, the Debenture Trustee under or
pursuant to Section 6.06 of this Indenture.
SECTION 15.04 Subrogation.
Subject to the payment in full of all Senior Indebtedness, the rights
of the Securityholders shall be subrogated to the rights of the holders of such
Senior Indebtedness to receive payments or distributions of cash, property or
securities of Peoples, as the case may be, applicable to such Senior
Indebtedness until the principal of (and premium, if any) and interest on the
Securities shall be paid in full; and, for the purposes of such subrogation, no
payments or distributions to the holders of such Senior Indebtedness of any
cash, property or securities to which the Securityholders or the Debenture
Trustee would be entitled except for the provisions of this Article XV, and no
payment over pursuant to the provisions of this Article XV to or for the benefit
of the holders of such Senior Indebtedness by Securityholders or the Debenture
Trustee, shall, as between Peoples, its creditors other than holders of Senior
Indebtedness of Peoples, and the holders of the Securities, be deemed to be a
payment by Peoples to or on account of such Senior Indebtedness. It is
understood that the provisions of this Article XV are and are intended solely
for the purposes of defining the relative rights of the holders of the
Securities, on the one hand, and the holders of such Senior Indebtedness on the
other hand.
Nothing contained in this Article XV or elsewhere in this Indenture or
in the Securities is intended to or shall impair, as between Peoples, its
creditors other than the holders of Senior Indebtedness of Peoples, and the
holders of the Securities, the obligation of Peoples, which is absolute and
unconditional, to pay to the holders of the Securities the principal of (and
premium, if any) and interest (including Compounded Interest and Additional
Sums, if any, or Liquidated Damages, if any) on the Securities as and when the
same shall become due and payable in accordance with their terms, or is intended
to or shall affect the relative rights of the holders of the Securities and
creditors of Peoples, as the case may be, other than the holders of Senior
Indebtedness of Peoples, as the case may be, nor shall anything herein or
therein prevent the Debenture Trustee or the holder of any Security from
exercising all remedies otherwise permitted by applicable law upon default under
the Indenture, subject to the rights, if any, under this Article XV of the
holders of such Senior Indebtedness in respect of cash, property or securities
of Peoples, as the case may be, received upon the exercise of any such remedy.
Upon any payment or distribution of assets of Peoples referred to in
this Article XV, the Debenture Trustee, subject to the provisions of Article VI
of this Indenture, and the Securityholders shall be entitled to conclusively
rely upon any order or decree made by any court of competent jurisdiction in
which such dissolution, winding-up, liquidation or reorganization proceedings
are pending, or a certificate of the receiver, trustee in bankruptcy,
liquidation trustee, agent or other Person making such payment or distribution,
delivered to the Debenture Trustee or to the Securityholders, for the purposes
of ascertaining the Persons entitled to participate in such distribution, the
holders of Senior Indebtedness and other indebtedness of Peoples, as the case
may be, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article XV.
SECTION 15.05 Debenture Trustee to Effectuate Subordination.
Each Securityholder by such Securityholder's acceptance thereof
authorizes and directs the Debenture Trustee on such Securityholder's behalf to
take such action (upon written instruction) to effectuate the subordination
provided in this Article XV and appoints the Debenture Trustee such
Securityholder's attorney-in-fact for any and all such purposes.
SECTION 15.06 Notice by Peoples.
Peoples shall give prompt written notice to a Responsible Officer of
the Debenture Trustee of any fact known to Peoples that would prohibit the
making of any payment of monies to or by the Debenture Trustee in respect of the
Securities pursuant to the provisions of this Article XV. Notwithstanding the
provisions of this Article XV or any other provision of this Indenture, the
Debenture Trustee shall not be charged with knowledge of the existence of any
facts that would prohibit the making of any payment of monies to or by the
Debenture Trustee in respect of the Securities pursuant to the provisions of
this Article XV, unless and until a Responsible Officer of the Debenture Trustee
shall have received written notice thereof from Peoples or a holder or holders
of Senior Indebtedness or from any trustee therefor; and before the receipt of
any such written notice, the Debenture Trustee, subject to the provisions of
Article VI of this Indenture, shall be entitled in all respects to assume that
no such facts exist; provided, however, that if the Debenture Trustee shall not
have received the notice provided for in this Section 15.06 at least two
Business Days prior to the date upon which by the terms hereof any money may
become payable for any purpose (including, without limitation, the payment of
the principal of (or premium, if any) or interest (including Compounded Interest
and Additional Sums, if any, or Liquidated Damages, if any) on any Security)
then, anything herein contained to the contrary notwithstanding, the Debenture
Trustee shall have full power and authority to receive such money and to apply
the same to the purposes for which they were received, and shall not be affected
by any notice to the contrary that may be received by it within two Business
Days prior to such date.
The Debenture Trustee, subject to the provisions of Article VI of this
Indenture, shall be entitled to conclusively rely on a written notice delivered
to it by a Person representing himself to be a holder of Senior Indebtedness of
Peoples (or a trustee on behalf of such holder), as the case may be, to
establish that such notice has been given by a holder of such Senior
Indebtedness or a trustee on behalf of any such holder or holders. In the event
that the Debenture Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of such Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article XV, the Debenture Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Debenture Trustee as to the amount of such
Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article XV, and, if such
evidence is not furnished, the Debenture Trustee may defer any payment to such
Person pending judicial determination as to the right of such Person to receive
such payment.
Upon any payment or distribution of assets of Peoples referred to in
this Article XV, the Debenture Trustee and the Securityholders shall be entitled
to rely upon any order or decree entered by any court of competent jurisdiction
in which such insolvency, bankruptcy, receivership, liquidation, reorganization,
dissolution, winding-up or similar case or proceeding is pending, or a
certificate of the trustee in bankruptcy, liquidating trustee, custodian,
receiver, assignee for the benefit of creditors, agent or other person making
such payment or distribution, delivered to the Debenture Trustee or to the
Securityholders, for the purpose of ascertaining the persons entitled to
participate in such payment or distribution, the holders of Senior Indebtedness
and other indebtedness of Peoples, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article XV.
SECTION 15.07 Rights of the Debenture Trustee; Holders of
Senior Indebtedness.
The Debenture Trustee in its individual capacity shall be entitled to
all the rights set forth in this Article XV in respect of any Senior
Indebtedness at any time held by it, to the same extent as any other holder of
Senior Indebtedness, and nothing in this Indenture shall deprive the Debenture
Trustee of any of its rights as such holder.
With respect to the holders of Senior Indebtedness of Peoples, the
Debenture Trustee undertakes to perform or to observe only such of its covenants
and obligations as are specifically set forth in this Article XV, and no implied
covenants or obligations with respect to the holders of such Senior Indebtedness
shall be read into this Indenture against the Debenture Trustee. The Debenture
Trustee shall not be deemed to owe any fiduciary duty to the holders of such
Senior Indebtedness and, subject to the provisions of Article VI of this
Indenture, the Debenture Trustee shall not be liable to any holder of such
Senior Indebtedness if it shall pay over or deliver to Securityholders, Peoples
or any other Person money or assets to which any holder of such Senior
Indebtedness shall be entitled by virtue of this Article XV or otherwise.
Nothing in this Article XV shall apply to claims of, or payments to,
the Debenture Trustee under or pursuant to Section 6.06.
SECTION 15.08 Subordination May Not Be Impaired.
No right of any present or future holder of any Senior Indebtedness of
Peoples to enforce subordination as herein provided shall at any time in any way
be prejudiced or impaired by any act or failure to act on the part of Peoples,
as the case may be, or by any act or failure to act, in good faith, by any such
holder, or by any noncompliance by Peoples, as the case may be, with the terms,
provisions and covenants of this Indenture, regardless of any knowledge thereof
that any such holder may have or otherwise be charged with.
Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness of Peoples may, at any time and from time to
time, without the consent of or notice to the Debenture Trustee or the
Securityholders, without incurring responsibility to the Securityholders and
without impairing or releasing the subordination provided in this Article XV or
the obligations hereunder of the holders of the Securities to the holders of
such Senior Indebtedness, do any one or more of the following: (i) change the
manner, place or terms of payment or extend the time of payment of, or renew or
alter, such Senior Indebtedness, or otherwise amend or supplement in any manner
such Senior Indebtedness or any instrument evidencing the same or any agreement
under which such Senior Indebtedness is outstanding; (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing such Senior Indebtedness; (iii) release any Person liable in any manner
for the collection of such Senior Indebtedness; and (iv) exercise or refrain
from exercising any rights against Peoples, as the case may be, and any other
Person.
ARTICLE XVI
EXTENSION OF INTEREST PAYMENT PERIOD
SECTION 16.01 Extension of Interest Payment Period.
So long as no Event of Default has occurred and is continuing, Peoples
shall have the right, at any time and from time to time during the term of the
Securities, to defer payments of interest by extending the interest payment
period of such Securities for a period not exceeding 10 consecutive semi-annual
periods, including the first such semi-annual period during such extension
period (the "Extended Interest Payment Period"), during which Extended Interest
Payment Period no interest shall be due and payable, provided that no Extended
Interest Payment Period shall end on a date other than an Interest Payment Date
or extend beyond the Maturity Date. To the extent permitted by applicable law,
interest, the payment of which has been deferred because of the extension of the
interest payment period pursuant to this Section 16.01, will bear interest
thereon at the Coupon Rate compounded semi-annually for each semi-annual period
during the Extended Interest Payment Period ("Compounded Interest"). At the end
of the Extended Interest Payment Period, Peoples shall pay all interest accrued
and unpaid on the Securities, including any Additional Sums, Liquidated Damages
and Compounded Interest (together, `"Deferred Interest"), that shall be payable
to the holders of the Securities in whose names the Securities are registered in
the Security Register on the record date immediately preceding the end of the
Extended Interest Payment Period. Before the termination of any Extended
Interest Payment Period, Peoples may further defer payments of interest by
further extending such Extended Interest Payment Period, provided that such
Extended Interest Payment Period, together with all such previous and further
extensions within such Extended Interest Payment Period, shall not (i) exceed 10
consecutive semi-annual periods, including the first such semi-annual period
during such Extended Interest Payment Period, (ii) end on a date other than an
Interest Payment Date or (iii) extend beyond the Maturity Date of the
Securities. Upon the termination of any Extended Interest Payment Period and the
payment of all amounts then due, Peoples may commence a new Extended Interest
Payment Period, subject to the foregoing requirements. No interest shall be due
and payable during an Extended Interest Payment Period, except at the end
thereof, but Peoples may prepay at any time all or any portion of the interest
accrued during an Extended Interest Payment Period.
SECTION 16.02 Notice of Extension.
(a) If the Property Trustee is the only holder of the Securities at the
time Peoples elects to commence an Extended Interest Payment Period, Peoples
shall give written notice to the Administrative Trustees, the Property Trustee
and the Debenture Trustee of its election to commence such Extended Interest
Payment Period at least five Business Days before the earlier of (i) the next
succeeding date on which Distributions on the Trust Securities would have been
payable, (ii) the date the Property Trustee is required to give notice of the
record date, or (iii) the date such Distributions are payable, to any national
securities exchange or to holders of the Capital Securities, but in any event at
least five Business Days before such record date.
(b) If the Property Trustee is not the only holder of the Securities at
the time Peoples elects to commence an Extended Interest Payment Period, Peoples
shall give the holders of the Securities and the Debenture Trustee written
notice of its selection of such Extended Interest Payment Period at least 10
Business Days before the earlier of (i) the next succeeding Interest Payment
Date, or (ii) the date the Debenture Trustee is required to give notice of the
record or payment date of such interest payment to any national securities
exchange.
(c) The semi-annual period in which any notice is given pursuant to
paragraphs (a) or (b) of this Section 16.02 shall be counted as one of the 10
semi-annual periods permitted in the maximum Extended Interest Payment Period
permitted under Section 16.01.
The Debenture Trustee hereby accepts the trusts in this Indenture
declared and provided, upon the terms and conditions hereinabove set forth.
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed by their respective officers thereunto duly
authorized, as of the day and year first above written.
PEOPLES BANCORP INC., an Ohio corporation
By:
Robert E. Evans, President and
Chief Executive Officer
WILMINGTON TRUST COMPANY,
as Debenture Trustee
By:
Name:
Title:
FORM OF SERIES B
8.62% JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE
(FORM OF FACE OF SECURITY)
[IF THIS SECURITY IS A GLOBAL SECURITY, INSERT: THIS SECURITY IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST
COMPANY ("DTC") OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE
FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER
OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A
NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED
EXCEPT IN LIMITED CIRCUMSTANCES.
UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.]
THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN
BLOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN
$100,000. ANY ATTEMPTED TRANSFER OF SECURITIES IN A BLOCK HAVING AN
AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF
$1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL
EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY PURPOSE, INCLUDING,
BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF, PREMIUM (IF ANY) OR
INTEREST ON SUCH SECURITIES, AND SUCH PURPORTED TRANSFEREE SHALL BE
DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES.
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,
INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE") (EACH A "PLAN"), OR AN ENTITY
WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY
PLANS' INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN
ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY
INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14
OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS
SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER
OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED
TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT
EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF
SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING
THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR
WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.
PEOPLES BANCORP INC.
CUSIP No.: 709789 AD 3
Amount $_________________ Certificate No. _____________
SERIES B 8.62% JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE
DUE MAY 1, 2029
Peoples Bancorp Inc., an Ohio corporation ("Peoples," which term
includes any successor Person under the Indenture hereinafter referred to),
for value received, hereby promises to pay to __________________ or
registered assigns, the principal sum of $_____________ on May 1, 2029
(the "Maturity Date"), unless previously prepaid, and to pay interest on
the outstanding principal amount hereof from April 20, 1999, the date of
original issuance of the Series A 8.62% Junior Subordinated Deferral
Interest Debenture (the "Series A Debenture") exchanged for this
Security or from the most recent interest payment date (each such date,
an "Interest Payment Date") to which interest has been paid or duly
provided for, semi-annually (subject to deferral as set forth herein)
in arrears, with respect to this Security or the Series A Debenture
exchanged for this Security, on May 1st and November 1st of each year,
commencing November 1, 1999, at the rate of 8.62% per annum until the
principal hereof shall have become due and payable, and on any overdue
principal and premium, if any, and (without duplication and to the
extent that payment of such interest is enforceable under applicable law)
on any overdue installment of interest at the same rate per annum
compounded semi-annually ("Compounded Interest"). The amount of
interest payable on any Interest Payment Date shall be computed on the
basis of a 360-day year of twelve 30-day months, and, for any period
of less than a full calendar month, the number of days elapsed in such
month. In the event that any date on which the principal of (or premium,
if any) or interest on this Security is payable is not a Business Day
(as defined in the Indenture), then the payment payable on such date
will be made on the next succeeding day that is a Business Day (and
without any interest or other payment in respect of any such delay),
with the same force and effect as if made on such date. Pursuant to
the Indenture, in certain circumstances Peoples will be required to
pay Additional Sums (as defined in the Indenture) with respect to
this Security.
The interest installment so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Security (or one
or more Predecessor Securities, as defined in said Indenture) is
registered at the close of business on the regular record date for
such interest installment, which shall be at theclose of business
on the 15th day of the month immediately prior to the month in which
the relevant Interest Payment Date falls. Any such interest installment
not punctually paid or duly provided for shall forthwith cease to be
payable to the holders on such regular record date and may be paid to
the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a special record
date to be fixed by the Debenture Trustee for the payment of such
defaulted interest, notice whereof shall be given to the holders of
Securities not less than 10 days prior to such special record date, or
may be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities
may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in the Indenture.
The principal of (and premium, if any) and interest (including
Compounded Interest and Additional Sums, if any) on this Security
shall be payable at the office or agency of the Debenture Trustee
maintained for that purpose in any coin or currency of the United
States of America that at the time of payment is legal tender for
payment of public and private debts; provided, however, that payment
of interest may be made at the option of Peoples by (i) check
mailed to the holder at such address as shall appear in the
Security Register or (ii) transfer to an account maintained by the
Person entitled thereto, provided that proper written transfer
instructions have been received by the relevant record date.
Notwithstanding the foregoing, so long as the holder of this Security
is the Property Trustee of PEBO Capital Trust I, the payment
of the principal of (and premium, if any) and interest (including
Compounded Interest and Additional Sums, if any) on this Security
will be made at such place and to such account as may be designated
by such Property Trustee.
The indebtedness evidenced by this Security is, to the extent
provided in the Indenture, subordinate and junior in right of payment
to the prior payment in full of all Senior Indebtedness, and this
Security is issued subject to the provisions of the Indenture with
respect thereto. Each holder of this Security, by accepting the same,
(a) agrees to and shall be bound by such provisions, (b) authorizes
and directs the Debenture Trustee on his, her or its behalf to take
such action as may be necessary or appropriate to acknowledge or
effectuate the subordination so provided and (c) appoints the
Debenture Trustee his, her or its attorney-in-fact for any and all
such purposes. Each holder hereof, by his, her or its acceptance
hereof, hereby waives all notice of the acceptance of the subordination
provisions contained herein and in the Indenture by each holder of
Senior Indebtedness, whether now outstanding or hereafter incurred,
and waives reliance by each such holder upon said provisions.
This Security shall not be entitled to any benefit under the
Indenture or be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on
behalf of the Debenture Trustee.
The provisions of this Security are continued on the reverse
side hereof and such provisions shall for all purposes have the same
effect as though fully set forth at this place.
IN WITNESS WHEREOF, Peoples has caused this instrument to be duly executed
and sealed this ___ day of _________, _____.
PEOPLES BANCORP INC.
By: _________________________
Name: _______________________
Title: ______________________
Attest:
By: __________________________________
Name: ________________________________
Title: _______________________________
CERTIFICATE OF AUTHENTICATION
This is one of the Series B 8.62% Junior Subordinated Deferrable
Interest Debentures of the Peoples Bancorp Inc. referred to in the
within-mentioned Indenture.
WILMINGTON TRUST COMPANY
not in its individual capacity but solely as Debenture Trustee
Dated: ____________ By: __________________________________
Authorized Signatory
(FORM OF REVERSE OF SECURITY)
This Security is one of the Securities of Peoples (herein
sometimes referred to as the "Securities"), specified in the Indenture,
all issued or to be issued under and pursuant to an Indenture, dated
as of April 20, 1999 (the "Indenture"), duly executed and delivered
between Peoples and Wilmington Trust Company, as Debenture Trustee
(the "Debenture Trustee"), to which Indenture reference is hereby
made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Debenture Trustee, Peoples and
the holders of the Securities.
Upon the occurrence and continuation of a Special Event (as
defined in the Indenture) prior to May 1, 2009 (the "Initial Optional
Redemption Date"), Peoples shall have the right, at any time within 90
days following the occurrence of such Special Event, to prepay this Security
in whole (but not in part) at the Special Event Prepayment Price. "Special
Event Prepayment Price" shall mean, with respect to any prepayment of
this Security following a Special Event, an amount in cash equal to the
Make Whole Amount. The "Make Whole Amount" shall mean an amount equal
to the greater of: (i) 100% of the principal amount to be prepaid; or
(ii) the sum, as determined by a Quotation Agent (as defined in the
Indenture), of the present values of remaining scheduled payments of
principal and interest hereon, discounted to the prepayment
date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Adjusted Treasury Rate (as defined in the
Indenture), plus, in the case of each of clauses (i) and (ii), any
accrued and unpaid interest (including Compounded Interest and
Additional Sums, if any) thereon to the date of such prepayment.
In addition, Peoples shall have the right to prepay this
Security, in whole or in part, at any time on or after the Initial
Optional Redemption Date (an "Optional Prepayment"), at the prepayment
prices set forth below plus, in each case, accrued and unpaid interest
(including Additional Sums and Compounded Interest, if any) thereon
to the applicable date of prepayment (the "Optional Prepayment Price"),
if prepaid during the 12-month period beginning May 1, of the years
indicated below.
Percentage
Year of Principal
-------- --------------
2009 104.310%
2010 103.879%
2011 103.448%
2012 103.017%
2013 102.586%
2014 102.155%
2015 101.724%
2016 101.293%
2017 100.862%
2018 100.431%
2019 and thereafter 100.000%
The Optional Prepayment Price or the Special Event Prepayment
Price, as the case requires, shall be paid prior to 12:00 noon,
New York City time, on the date of such prepayment or at such earlier
time as Peoples determines, provided, that Peoples shall deposit with the
Debenture Trustee an amount sufficient to pay the applicable Prepayment
Price by 10:00 a.m., New York City time, on the date such Prepayment
Price is to be paid. Any prepayment pursuant to this paragraph will
be made upon not less than 30 days nor more than 60 days prior written
notice.
If the Securities are only partially prepaid by Peoples pursuant
to an Optional Prepayment, the particular Securities to be prepaid
shall be selected on a pro rata basis from the outstanding Securities
not previously called for prepayment; provided, however, that with
respect to Securityholders that would be required to hold Securities
with an aggregate principal amount of less than $100,000 but more than
an aggregate principal amount of zero as a result of such pro rata
prepayment, Peoples shall prepay Securities of each such Securityholder
so that after such prepayment such Securityholder shall hold Securities
either with an aggregate principal amount of at least $100,000 or such
Securityholder no longer holds any Securities and shall use such method
(including, without limitation, by lot) as the Debenture Trustee shall
deem fair and appropriate; provided, further, that any such proration may
be made on the basis of the aggregate principal amount of Securities held
by each Securityholder thereof and may be made by making such adjustments
as Peoples deems fair and appropriate in order that only Securities
in denominations of $1,000 or integral multiples thereof shall be prepaid.
In the event of prepayment of this Security in part only, a new Security
or Securities for the portion hereof that has not been prepaid will be
issued in the name of the holder hereof upon the cancellation hereof.
Notwithstanding the foregoing, any prepayment of Securities by
Peoples shall be subject to the receipt of any and all required regulatory
approvals.
In case an Event of Default (as defined in the Indenture) shall have
occurred and be continuing, the principal of all of the Securities may be
declared, and upon such declaration shall become, due and payable, in
the manner, with the effect and subject to the conditions provided in the
Indenture.
The Indenture contains provisions permitting Peoples and the Debenture
Trustee, with the consent of the holders of a majority in aggregate
principal amount of the Securities at the time outstanding (as defined
in the Indenture), to execute supplemental indentures for the purpose of
adding any provisions to or changing in any manner or eliminating any of
the provisions of the Indenture or of modifying in any manner the rights
of the holders of the Securities; provided, however, that no such
supplemental indenture shall, without the consent of each holder of
Securities then outstanding and affected thereby, (i) change the Maturity
Date of any Security, or reduce the rate or extend the time of payment of
interest thereon (subject to Article XVI of the Indenture), or reduce the
principal amount thereof, or change any of the prepayment provisions
or make the principal thereof or any interest or premium thereon payable
in any coin or currency other than U.S. dollars, or impair or affect
the right of any holder of Securities to institute suit for
payment thereof, or (ii) reduce the aforesaid percentage of
Securities the holders of which are required to consent to any such
supplemental indenture. The Indenture also contains provisions
permitting the holders of a majority in aggregate principal amount
of the Securities at the time outstanding affected thereby, on behalf
of all of the holders of the Securities, to waive any past
default in the performance of any of the covenants contained
in the Indenture, or established pursuant to the Indenture, and
its consequences, except a default in the payment of the principal
of or premium, if any, or interest on any of the Securities or a
default in respect of any covenant or provision under which the
Indenture cannot be modified or amended without the consent of
each holder of Securities then outstanding. Any such consent
or waiver by the holder of this Security (unless revoked as provided
in the Indenture) shall be conclusive and binding upon such
holder and upon all future holders and owners of this Security
and of any Security issued in exchange herefor or in place hereof
(whether by registration of transfer or otherwise),
irrespective of whether or not any notation of such consent or
waiver is made upon this Security.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation
of Peoples, which is absolute and unconditional, to pay the
principal of (and premium, if any) and interest (including
Compounded Interest and Additional Sums, if any) on this Security
at the time and place and at the rate and in the money herein
prescribed.
So long as no Event of Default shall have occurred and be
continuing, Peoples shall have the right, at any time and from
time to time during the term of the Securities, to defer payments
of interest by extending the interest payment period (an "Extended
Interest Payment Period") of such Securities for a period not:
(i) exceeding 10 consecutive semi-annual periods, including the
first such semi-annual period during such extension period, (ii)
extending beyond the Maturity Date of the Securities or (iii)
ending on a date other than an Interest Payment Date, at the end of
which period Peoples shall pay all interest then accrued and unpaid
(together with interest thereon at the rate specified for the
Securities to the extent that payment of such interest is
enforceable under applicable law). Before the termination of any
such Extended Interest Payment Period, Peoples may further defer
payments of interest by further extending such Extended Interest
Payment Period, provided that such Extended Interest Payment Period,
together with all such previous and further extensions within
such Extended Interest Payment Period, (i) shall not exceed 10
consecutive semi-annual periods, including the first semi-annual
period during such Extended Interest Payment Period, (ii) shall not
end on any date other than an Interest Payment Date, and (iii) shall
not extend beyond the Maturity Date of the Securities. Upon the
termination of any such Extended Interest Payment Period and the
payment of all accrued and unpaid interest and any additional amounts
then due, Peoples may commence a new Extended Interest Payment Period,
subject to the foregoing requirements. No interest shall be
due and payable during an Extended Interest Payment Period, except
at the end thereof, but Peoples may prepay at any time all or any
portion of the interest accrued during an Extended Interest Payment Period.
Peoples has agreed that it will not: (i) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make
a liquidation payment with respect to, any of Peoples' capital
stock; (ii) make any payment of principal of or interest or premium,
if any, on or repay, repurchase or redeem any debt securities (including
other Debentures) of Peoples that rank pari passu with or junior in
right of payment to the Securities; or (iii) make any guarantee payments
with respect to any guarantee by Peoples of the debt securities of
any Subsidiary of Peoples (including Other Guarantees) if such
guarantee ranks pari passu with or junior in right of payment to
the Securities (other than (a) dividends or distributions in Peoples'
Common Shares, or options, warrants or rights to subscribe for or
purchase Peoples' Common Shares, (b) any declaration of a dividend in
connection with the implementation of a shareholders' rights plan, or
the issuance of shares under any such plan in the future, or the
redemption or repurchase of any such rights pursuant thereto, (c)
payments under the Capital Securities Guarantee, as defined in
the Indenture, (d) as a result of a reclassification of Peoples' capital
stock or the exchange or conversion of one class or series of Peoples'
capital stock for another class or series of Peoples' capital stock, (e)
the purchase of fractional interests in shares of Peoples' capital
stock pursuant to the conversion or exchange provisions of such capital stock
or the security being converted or
exchanged or pursuant to a merger, consolidation or other business
combination, and (f) purchases of Common Shares of Peoples related
to the issuance of Common Shares or rights under any of Peoples'
benefit or compensation plans for directors, officers or employees of
Peoples or its Subsidiaries or Peoples' dividend reinvestment plan),
if at such time of the acts described in (i), (ii) or (iii), (1)
there shall have occurred any default of which Peoples has actual
knowledge that (a) is a Default or an Event of Default and (b) in
respect of which Peoples shall not have taken reasonable steps to
cure, (2) if such Securities are held by the Property Trustee of
PEBO Capital Trust I, Peoples shall be in default with respect to
its payment of any obligations under the Capital Securities Guarantee
or (3) Peoples shall have given notice of its election to
exercise its right to commence an Extended Interest Payment Period,
and shall not have rescinded such Notice, and such Extended Interest
Payment Period or any extension thereof shall have commenced and
be continuing.
Subject to (i) Peoples having received any required regulatory
approvals and (ii) the Administrative Trustees of PEBO Capital Trust
I having received an opinion of counsel to the effect that such
distribution will not cause the holders of Capital Securities to
recognize gain orloss for federal income tax purposes, Peoples will
have the right at any time to liquidate the Trust and, after
satisfaction of liabilities of creditors of the Trust as required
by applicable law, to cause the Securities to be distributed to
the holders of the Trust Securities in liquidation of the Trust.
The Securities are issuable only in registered form without
coupons in minimum denominations of $100,000 and multiples of $1,000
in excess thereof. As provided in the Indenture and subject to the
transfer restrictions limitations as may be contained herein and
therein from time to time, this Security is transferable by the
holder hereof on the Security Register of Peoples, upon surrender of
this Security for registration of transfer at the office or agency of
Peoples in Marietta, Ohio or at the Debenture Trustee accompanied by
a written instrument or instruments of transfer in form satisfactory
to Peoples or the Debenture Trustee duly executed by the holder
hereof or his, her or its attorney duly authorized in writing, and
thereupon one or more new Securities of authorized denominations and
for the same aggregate principal amount will be issued to the
designated transferee or transferees. No service charge
will be made for any such registration of transfer, but Peoples
may require payment of a sum sufficient to cover any tax or other
governmental charge payable in relation thereto.
Prior to due presentment for registration of transfer of this
Security, Peoples, the Debenture Trustee, any authenticating agent,
any paying agent, any transfer agent and the
security registrar may deem and treat the holder hereof as the
absolute owner hereof (whether or
not this Security shall be overdue and notwithstanding
any notice of ownership or writing hereon
made by anyone other than the security registrar for the
Securities) for the purpose of receiving
payment of or on account of the principal hereof and premium,
if any, and (subject to the Indenture) interest due hereon and
for all other purposes, and neither Peoples nor the Debenture Trustee
nor any authenticating agent nor any paying agent nor any transfer
agent nor any security registrar shall be affected by any notice
to the contrary.
No recourse shall be had for the payment of the principal of
or premium, if any, or interest (including Compounded Interest and
Additional Sums, if any) on this Security, or for any
claim based hereon, or otherwise in respect hereof, or
based on or in respect of the Indenture,
against any incorporator, shareholder, employee,
officer or director, past, present or future, as
such, of Peoples or of any predecessor or successor Person,
whether by virtue of any constitution, statute or rule of law,
or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for
the issuance hereof, expressly waived and released.
All terms used in this Security that are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
THE INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.
EXHIBIT A
(FORM OF FACE OF SECURITY)
[IF THIS SECURITY IS A GLOBAL SECURITY, INSERT: THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF
DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF
THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO
DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED
CIRCUMSTANCES.
UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO
THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAW. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL
OR OTHERWISE TRANSFER THIS SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION
TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUANCE
DATE HEREOF AND THE LAST DATE ON WHICH PEOPLES BANCORP INC. ("PEOPLES") OR ANY
"AFFILIATE" OF PEOPLES WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
THIS SECURITY) ONLY (A) TO PEOPLES, (B) PURSUANT TO A REGISTRATION STATEMENT
WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) SO LONG AS THIS
SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" (AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7)
OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE
SECURITIES ACT, SUBJECT TO THE RIGHT OF PEOPLES PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER (i) PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO PEOPLES, AND
(ii) PURSUANT TO CLAUSE (D) TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE
FORM APPEARING ON THE REVERSE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEREE TO PEOPLES. SUCH HOLDER FURTHER AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND.
THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000. ANY ATTEMPTED TRANSFER
OF SECURITIES IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN
$100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID
AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT
LIMITED TO, THE RECEIPT OF PRINCIPAL OF, PREMIUM (IF ANY) OR INTEREST ON SUCH
SECURITIES, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST
WHATSOEVER IN SUCH SECURITIES.
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH
A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON
OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF
ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY INTEREST THEREIN, UNLESS SUCH
PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S.
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38,
90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF
THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 495 OF THE
CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THE
SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS
PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN
WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF
THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF
ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH
PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR
ADMINISTRATIVE EXEMPTION.
PEOPLES BANCORP INC.
CUSIP No.: _____________
Amount $ _____________
SERIES A 8.62% JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE
DUE May 1, 2029
Peoples Bancorp Inc., an Ohio corporation ("Peoples" which term includes
any successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to __________________ or registered assigns,
the principal sum of $_____________ on May 1, 2029 (the "Maturity Date"), unless
previously prepaid, and to pay interest on the outstanding principal amount
hereof from April 20, 1999, or from the most recent interest payment date (each
such date, an ("Interest Payment Date") to which interest has been paid or
duly provided for, semi-annually (subject to deferral as set forth herein) in
arrears on May 1st and November 1st of each year, commencing November 1, 1999,
at the rate of 8.62% per annum until the principal hereof shall have
become due and payable, and on any overdue principal and premium, if any,
and (without duplication and to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at
the same rate per annum compounded semi-annually ("Compounded Interest").
The amount of interest payable on any Interest Payment Date shall be computed on
the basis of a 360-day year of twelve 30-day months. In the event that any date
on which the principal of (or premium, if any) or interest on this Security
is payable is not a Business Day (as defined in the Indenture), then
the payment payable on such date will be made on the next succeeding day
that is a Business Day (and without any interest or other payment in
respect of any such delay), with the same force and effect as if made on
such date. Pursuant to the Indenture, in certain circumstances
Peoples will be required to pay Additional Sums (as defined in the
Indenture) with respect to this Security. Pursuant to the Registration Rights
Agreement, in certain limited circumstances Peoples will be required to pay
Liquidated Damages (as defined in the Registration Rights Agreement) with
respect to this Security.
The interest installment so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in the Indenture, be paid to
the Person in whose name this Security (or one or more Predecessor Securities,
as defined in said Indenture) is registered at the close of business on the
regular record date for such interest installment, which shall be at the close
of business on the 15th day of the month immediately prior to the month in which
the relevant Interest Payment Date falls. Any such interest installment not
punctually paid or duly provided for shall forthwith cease to be payable to the
holders on such regular record date and may be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the close
of business on a special record date to be fixed by the Debenture Trustee for
the payment of such defaulted interest, notice whereof shall be given to the
holders of Securities not less than 10 days prior to such special record date,
or may be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture.
The principal of (and premium, if any) and interest (including Compounded
Interest and Additional Sums, if any) and Liquidated Damages, if any, on this
Security shall be payable at the office or agency of the Debenture Trustee
maintained for that purpose in any coin or currency of the United States of
America that at the time of payment is legal tender for payment of public and
private debts; provided, however, that payment of interest may be made at the
option of Peoples by (i) check mailed to the holder at such address as shall
appear in the Security Register or (ii) transfer to an account maintained by the
Person entitled thereto, provided that proper written transfer instructions have
been received by the relevant record date. Notwithstanding the foregoing, so
long as the holder of this Security is the Property Trustee of PEBO Capital
Trust I, the payment of the principal of (and premium, if any) and interest
(including Compounded Interest and Additional Sums, if any) and Liquidated
Damages, if any, on this Security will be made at such place and to such account
as may be designated by such Property Trustee.
The indebtedness evidenced by this Security is, to the extent provided in
the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Indebtedness, and this Security is issued subject to the
provisions of the Indenture with respect thereto. Each holder of this Security,
by accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Debenture Trustee on his, her or its behalf to take
such action as may be necessary or appropriate to acknowledge or effectuate the
subordination so provided and (c) appoints the Debenture Trustee his, her or its
attorney-in-fact for any and all such purposes. Each holder hereof, by his, her
or its acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of
Senior Indebtedness, whether now outstanding or hereafter incurred, and waives
reliance by each such holder upon said provisions.
This Security shall not be entitled to any benefit under the Indenture or
be valid or become obligatory for any purpose until the Certificate of
Authentication hereon shall have been signed by or on behalf of the Debenture
Trustee.
The provisions of this Security are continued on the reverse side hereof
and such provisions shall for all purposes have the same effect as though fully
set forth at this place.
IN WITNESS WHEREOF, Peoples has caused this instrument to be duly executed
and sealed this ___ day of _________, _____.
PEOPLES BANCORP INC.
By:
Name:
Title:
Attest:
By:____________________________
Name:__________________________
Title:_________________________
CERTIFICATE OF AUTHENTICATION
This is one of the 8.62% Junior Subordinated Deferrable Interest Debentures
of the Peoples Bancorp Inc. referred to in the within-mentioned Indenture.
WILMINGTON TRUST COMPANY
not in its individual capacity but solely as
Debenture Trustee
Dated:_______________________________ By: ____________________________
Authorized Signatory
(FORM OF REVERSE OF SECURITY)
This Security is one of the Securities of Peoples (herein sometimes
referred to as the "Securities"), specified in the Indenture, all issued or to
be issued under and pursuant to an Indenture, dated as of April 20, 1999 (the
"Indenture"), duly executed and delivered between Peoples and Wilmington Trust
Company, as Debenture Trustee (the "Debenture Trustee"), to which Indenture
reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Debenture Trustee, Peoples
and the holders of the Securities.
Upon the occurrence and continuation of a Special Event (as defined in the
Indenture) prior to May 1, 2009 (the "Initial Optional Redemption Date"),
Peoples shall have the right, at any time within 90 days following the
occurrence of such Special Event, to prepay this Security in whole (but not in
part) at the Special Event Prepayment Price. "Special Event Prepayment Price"
shall mean, with respect to any prepayment of this Security following a Special
Event, an amount in cash equal to the Make Whole Amount. The "Make Whole Amount"
shall mean an amount equal to the greater of: (i) 100% of the principal amount
to be prepaid; or (ii) the sum, as determined by a Quotation Agent (as defined
in the Indenture), of the present values of remaining scheduled payments of
principal and interest hereon, discounted to the prepayment date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Adjusted Treasury Rate (as defined in the Indenture), plus, in the case
of each of clauses (i) and (ii), any accrued and unpaid interest (including
Compounded Interest and Additional Sums, if any) and Liquidated Damages, if any,
thereon to the date of such prepayment.
In addition, Peoples shall have the right to prepay this Security, in whole
or in part, at any time on or after the Initial Optional Redemption Date
(an "Optional Prepayment"), at the prepayment prices set forth below plus, in
each case, accrued and unpaid interest (including Additional Sums and
Compounded Interest, if any) and Liquidated Damages, if any, thereon to the
applicable date of prepayment (the "Optional Prepayment Price"), if prepaid
during the 12-month period beginning May 1, of the years indicated below.
Percentage
Year of Principal
2009 104.310
2010 103.879
2011 103.448
2012 103.017
2013 102.586
2014 102.155
2015 101.724
2016 101.293
2017 100.862
2018 100.431
2019 and thereafter 100.000
The Optional Prepayment Price or the Special Event Prepayment Price, as the
case requires, shall be paid prior to 12:00 noon, New York City time, on the
date of such prepayment or at such earlier time as Peoples determines, provided,
that Peoples shall deposit with the Debenture Trustee an amount sufficient to
pay the applicable Prepayment Price by 10:00 a.m., New York City time, on the
date such Prepayment Price is to be paid. Any prepayment pursuant to this
paragraph will be made upon not less than 30 days nor more than 60 days prior
written notice.
If the Securities are only partially prepaid by Peoples pursuant to an
Optional Prepayment, the particular Securities to be prepaid shall be selected
on a pro rata basis from the outstanding Securities not previously called for
prepayment; provided, however, that with respect to Securityholders that would
be required to hold Securities with an aggregate principal amount of less than
$100,000 but more than an aggregate principal amount of zero as a result of such
pro rata prepayment, Peoples shall prepay Securities of each such Securityholder
so that after such prepayment such Securityholder shall hold Securities either
with an aggregate principal amount of at least $100,000 or such Securityholder
no longer holds any Securities and shall use such method (including, without
limitation, by lot) as the Debenture Trustee shall deem fair and appropriate;
provided, further, that any such proration may be made on the basis of the
aggregate principal amount of Securities held by each Securityholder thereof and
may be made by making such adjustments as Peoples deems fair and appropriate in
order that only Securities in denominations of $1,000 or integral multiples
thereof shall be prepaid. In the event of prepayment of this Security in part
only, a new Security or Securities for the portion hereof that has not been
prepaid will be issued in the name of the holder hereof upon the cancellation
hereof.
Notwithstanding the foregoing, any prepayment of Securities by Peoples
shall be subject to the receipt of any and all required regulatory approvals.
In case an Event of Default (as defined in the Indenture) shall have
occurred and be continuing, the principal of all of the Securities may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.
The Indenture contains provisions permitting Peoples and the Debenture
Trustee, with the consent of the holders of a majority in aggregate principal
amount of the Securities at the time outstanding (as defined in the Indenture),
to execute supplemental indentures for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture
or of modifying in any manner the rights of the holders of the Securities;
provided, however, that no such supplemental indenture shall, without the
consent of each holder of Securities then outstanding and affected thereby, (i)
change the Maturity Date of any Security, or reduce the rate or extend the time
of payment of interest thereon (subject to Article XVI of the Indenture), or
reduce the principal amount thereof, or change any of the prepayment provisions
or make the principal thereof or any interest or premium thereon payable in any
coin or currency other than U.S. dollars, or impair or affect the right of any
holder of Securities to institute suit for payment thereof, or (ii) reduce the
aforesaid percentage of Securities the holders of which are required to consent
to any such supplemental indenture. The Indenture also contains provisions
permitting the holders of a majority in aggregate principal amount of the
Securities at the time outstanding affected thereby, on behalf of all of the
holders of the Securities, to waive any past default in the performance of any
of the covenants contained in the Indenture, or established pursuant to the
Indenture, and its consequences, except a default in the payment of the
principal of or premium, if any, or interest on any of the Securities or a
default in respect of any covenant or provision under which the Indenture cannot
be modified or amended without the consent of each holder of Securities then
outstanding. Any such consent or waiver by the holder of this Security (unless
revoked as provided in the Indenture) shall be conclusive and binding upon such
holder and upon all future holders and owners of this Security and of any
Security issued in exchange herefor or in place hereof (whether by registration
of transfer or otherwise), irrespective of whether or not any notation of such
consent or waiver is made upon this Security.
No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of Peoples, which is
absolute and unconditional, to pay the principal of (and premium, if any) and
interest (including Compounded Interest and Additional Sums, if any) and
Liquidated Damages, if any, on this Security at the time and place and at the
rate and in the money herein prescribed.
So long as no Event of Default shall have occurred and be continuing,
Peoples shall have the right, at any time and from time to time during the term
of the Securities, to defer payments of interest by extending the interest
payment period (an "Extended Interest Payment Period") of such Securities for a
period not: (i) exceeding 10 consecutive semi-annual periods, including the
first such semi-annual period during such extension period, (ii) extending
beyond the Maturity Date of the Securities or (iii) ending on a date other than
an Interest Payment Date, at the end of which period Peoples shall pay all
interest then accrued and unpaid (together with interest thereon at the rate
specified for the Securities to the extent that payment of such interest is
enforceable under applicable law). Before the termination of any such Extended
Interest Payment Period, Peoples may further defer payments of interest by
further extending such Extended Interest Payment Period, provided that such
Extended Interest Payment Period, together with all such previous and further
extensions within such Extended Interest Payment Period, (i) shall not exceed 10
consecutive semi-annual periods, including the first semi-annual period during
such Extended Interest Payment Period, (ii) shall not end on any date other than
an Interest Payment Date, and (iii) shall not extend beyond the Maturity Date of
the Securities. Upon the termination of any such Extended Interest Payment
Period and the payment of all accrued and unpaid interest and any additional
amounts then due, Peoples may commence a new Extended Interest Payment Period,
subject to the foregoing requirements. No interest shall be due and payable
during an Extended Interest Payment Period, except at the end thereof, but
Peoples may prepay at any time all or any portion of the interest accrued during
an Extended Interest Payment Period.
Peoples has agreed that it will not: (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of Peoples' capital stock; (ii) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem
any debt securities (including other Debentures) of Peoples that rank pari passu
with or junior in right of payment to the Securities; or (iii) make any
guarantee payments with respect to any guarantee by Peoples of the debt
securities of any Subsidiary of Peoples (including Other Guarantees) if such
guarantee ranks pari passu with or junior in right of payment to the Securities
(other than (a) dividends or distributions in Peoples' Common Shares, or
options, warrants or rights to subscribe for or purchase Peoples' Common Shares,
(b) any declaration of a dividend in connection with the implementation of a
shareholders' rights plan, or the issuance of shares under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto, (c)
payments under the Capital Securities Guarantee, as defined in the Indenture,
(d) as a result of a reclassification of Peoples' capital stock or the exchange
or conversion of one class or series of Peoples' capital stock for another class
or series of Peoples' capital stock, (e) the purchase of fractional interests in
shares of Peoples' capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged or
pursuant to a merger, consolidation or other business combination, and (f)
purchases of Common Shares of Peoples related to the issuance of Common Shares
or rights under any of Peoples' benefit or compensation plans for directors,
officers or employees of Peoples or its Subsidiaries or Peoples' dividend
reinvestment plan), if at such time of the acts described in (i), (ii) or (iii),
(1) there shall have occurred any default of which Peoples has actual knowledge
that (a) is a Default or an Event of Default and (b) in respect of which Peoples
shall not have taken reasonable steps to cure, (2) if such Securities are held
by the Property Trustee of PEBO Capital Trust I, Peoples shall be in default
with respect to its payment of any obligations under the Capital Securities
Guarantee or (3) Peoples shall have given notice of its election to exercise its
right to commence an Extended Interest Payment Period, and shall not have
rescinded such Notice, and such Extended Interest Payment Period or any
extension thereof shall have commenced and be continuing.
Subject to (i) Peoples having received any required regulatory approvals
and (ii) the Administrative Trustees of PEBO Capital Trust I having received an
opinion of counsel to the effect that such distribution will not cause the
holders of Capital Securities to recognize gain or loss for federal income tax
purposes, Peoples will have the right at any time to liquidate the Trust and,
after satisfaction of liabilities of creditors of the Trust as required by
applicable law, to cause the Securities to be distributed to the holders of the
Trust Securities in liquidation of the Trust.
The Securities are issuable only in registered form without coupons in
minimum denominations of $100,000 and multiples of $1,000 in excess thereof. As
provided in the Indenture and subject to the transfer restrictions limitations
as may be contained herein and therein from time to time, this Security is
transferable by the holder hereof on the Security Register of Peoples, upon
surrender of this Security for registration of transfer at the office or agency
of Peoples in Marietta, Ohio or at the Debenture Trustee accompanied by a
written instrument or instruments of transfer in form satisfactory to Peoples or
the Debenture Trustee duly executed by the holder hereof or his, her or its
attorney duly authorized in writing, and thereupon one or more new Securities of
authorized denominations and for the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
made for any such registration of transfer, but Peoples may require payment of a
sum sufficient to cover any tax or other governmental charge payable in relation
thereto.
Prior to due presentment for registration of transfer of this Security,
Peoples, the Debenture Trustee, any authenticating agent, any paying agent, any
transfer agent and the security registrar may deem and treat the holder hereof
as the absolute owner hereof (whether or not this Security shall be overdue and
notwithstanding any notice of ownership or writing hereon made by anyone other
than the security registrar for the Securities) for the purpose of receiving
payment of or on account of the principal hereof and premium, if any, and
(subject to the Indenture) interest due hereon and for all other purposes, and
neither Peoples nor the Debenture Trustee nor any authenticating agent nor any
paying agent nor any transfer agent nor any security registrar shall be affected
by any notice to the contrary.
No recourse shall be had for the payment of the principal of or premium, if
any, or interest (including Compounded Interest and Additional Sums, if any) and
Liquidated Damages, if any, on this Security, or for any claim based hereon, or
otherwise in respect hereof, or based on or in respect of the Indenture, against
any incorporator, stockholder, employee, officer or director, past, present or
future, as such, of Peoples or of any predecessor or successor Person, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as part of the consideration for the issuance hereof,
expressly waived and released.
All terms used in this Security that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
THE INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES THEREOF.
CERTIFICATE OF TRUST OF
PEBO CAPITAL TRUST I
THIS Certificate of Trust of PEBO CAPITAL TRUST I (the
"Trust") is being duly executed and filed on behalf of the Trust by the
undersigned, as trustees, to form a business trust under the Delaware Business
Trust Act (12 Del.C. ss. 3801 et seq.) (the "Act").
1. Name. The name of the business trust formed by
this Certificate of Trust is PEBO Capital Trust I.
2. Delaware Trustee. The name and business address of the
trustee of the Trust in the State of Delaware are Wilmington Trust Company,
1100 North Market Street, Wilmington, Delaware 19890-0001, Attention:
Corporate Trust Administration.
3. Effective Date. This Certificate of Trust shall be
effective upon filing with the Secretary of State.
IN WITNESS WHEREOF, the undersigned have duly executed this
Certificate of Trust in accordance with Section 3811(a)(1) of the Act..
WILMINGTON TRUST COMPANY, as trustee
/s/ DONALD G. MACKELCAN
Donald G. MacKelcan
Vice President
/s/ JOHN W. CONLON
----------------------------------------
John W. Conlon, as Trustee
/s/ MARK F. BRADLEY
----------------------------------------
Mark F. Bradley, as Trustee
/s/ CHARLES R. HUNSAKER
----------------------------------------
Charles R. Hunsaker, as Trustee
AMENDED AND RESTATED DECLARATION
OF TRUST
OF
PEBO CAPITAL TRUST I
Dated as of April 20, 1999
TABLE OF CONTENTS
Page
ARTICLE I
INTERPRETATION AND DEFINITIONS
SECTION 1.1 Definitions .........................................2
ARTICLE II
TRUST INDENTURE ACT
SECTION 2.1 Trust Indenture Act; Application....................10
SECTION 2.2 Lists of Holders of Securities .....................10
SECTION 2.3 Reports by the Property Trustee ....................10
SECTION 2.4 Periodic Reports to Property Trustee ...............11
SECTION 2.5 Evidence of Compliance with Conditions Precedent....11
SECTION 2.6 Events of Default; Waiver ..........................11
SECTION 2.7 Default; Notice ....................................12
ARTICLE III
ORGANIZATION
SECTION 3.1 Name .................................................13
SECTION 3.2 Office ...............................................13
SECTION 3.3 Purpose ..............................................14
SECTION 3.4 Authority ............................................14
SECTION 3.5 Title to Property of the Trust .......................14
SECTION 3.6 Powers and Duties of the Administrative Trustees .....14
SECTION 3.7 Prohibition of Actions by the Trust and the Trustees .17
SECTION 3.8 Powers and Duties of the Property Trustee ............18
SECTION 3.9 Certain Duties and Responsibilities of the
Property Trustee ................................20
SECTION 3.10 Certain Rights of Property Trustee ...................22
SECTION 3.11 Delaware Trustee .....................................24
SECTION 3.12 Execution of Documents ...............................24
SECTION 3.13 Not Responsible for Recitals or Issuance
of Securities ...................................24
SECTION 3.14 Duration of Trust ....................................24
SECTION 3.15 Mergers ..............................................24
ARTICLE IV
SPONSOR
SECTION 4.1 Sponsor's Purchase of Common Securities ...............26
SECTION 4.2 Responsibilities of the Sponsor .......................27
SECTION 4.3 Right to Proceed ......................................27
SECTION 4.4 Right to Dissolve Trust ...............................27
ARTICLE V
TRUSTEES
SECTION 5.1 Number of Trustees; Appointment of Co-Trustee .........28
SECTION 5.2 Delaware Trustee ......................................28
SECTION 5.3 Property Trustee; Eligibility .........................29
SECTION 5.4 Certain Qualifications of Administrative Trustees
and Delaware Trustee Generally .....................30
SECTION 5.5 Administrative Trustees ...............................30
SECTION 5.6 Appointment, Removal and Resignation of Trustees ......31
SECTION 5.7 Vacancies among Trustees ..............................32
SECTION 5.8 Effect of Vacancies ...................................32
SECTION 5.9 Meetings ..............................................33
SECTION 5.10 Delegation of Power ...................................33
SECTION 5.11 Merger, Conversion, Consolidation or
Succession to Business .............................33
ARTICLE VI
DISTRIBUTIONS
SECTION 6.1 Distributions .........................................34
ARTICLE VII
ISSUANCE OF SECURITIES
SECTION 7.1 General Provisions Regarding Securities ...............34
SECTION 7.2 Execution and Authentication ..........................35
SECTION 7.3 Form and Dating .......................................35
SECTION 7.4 Registrar, Paying Agent and Exchange Agent ............37
SECTION 7.5 Paying Agent to Hold Money in Trust ...................37
SECTION 7.6 Replacement Securities ................................38
SECTION 7.7 Outstanding Capital Securities ........................38
SECTION 7.8 Capital Securities in Treasury ........................38
SECTION 7.9 Temporary Securities ..................................38
SECTION 7.10 Cancellation ..........................................39
SECTION 7.11 CUSIP Numbers .........................................40
ARTICLE VIII
DISSOLUTION OF TRUST
SECTION 8.1 Dissolution of Trust ..................................40
ARTICLE IX
TRANSFER OF INTERESTS
SECTION 9.1 Transfer of Securities ................................41
SECTION 9.2 Transfer Procedures and Restrictions ..................42
SECTION 9.3 Deemed Security Holders ...............................50
SECTION 9.4 Book-Entry Interests ..................................50
SECTION 9.5 Notices to Clearing Agency ............................51
SECTION 9.6 Appointment of Successor Clearing Agency ..............51
ARTICLE X
LIMITATION OF LIABILITY OF
HOLDERS OF SECURITIES, TRUSTEES OR OTHERS
SECTION 10.1 Liability ............................................51
SECTION 10.2 Exculpation ..........................................52
SECTION 10.3 Fiduciary Duty .......................................52
SECTION 10.4 Indemnification ......................................53
SECTION 10.5 Outside Businesses ...................................56
ARTICLE XI
ACCOUNTING
SECTION 11.1 Fiscal Year ..........................................56
SECTION 11.2 Certain Accounting Matters ...........................57
SECTION 11.3 Banking ..............................................57
SECTION 11.4 Withholding ..........................................57
ARTICLE XII
AMENDMENTS AND MEETINGS
SECTION 12.1 Amendments ...........................................58
SECTION 12.2 Meetings of the Holders; Action by Written Consent ...60
ARTICLE XIII
REPRESENTATIONS OF PROPERTY TRUSTEE
AND DELAWARE TRUSTEE
SECTION 13.1 Representations and Warranties of Property Trustee ...61
SECTION 13.2 Representations and Warranties of Delaware Trustee ...62
ARTICLE XIV
MISCELLANEOUS
SECTION 14.1 Notices ..............................................62
SECTION 14.2 Governing Law ........................................64
SECTION 14.3 Intention of the Parties .............................64
SECTION 14.4 Headings .............................................64
SECTION 14.5 Successors and Assigns ...............................64
SECTION 14.6 Partial Enforceability ...............................64
SECTION 14.7 Counterparts .........................................64
ANNEX I
TERMS OF CAPITAL AND COMMON SECURITIES I-1
EXHIBIT A-1
FORM OF CAPITAL SECURITY CERTIFICATE A-1-1
EXHIBIT A-2
FORM OF COMMON SECURITY CERTIFICATE A-2-1
<PAGE>
CROSS-REFERENCE TABLE*
Section of
Trust Indenture
Act of 1939, as Section of
Amended Declaration
- ----------------------------------- ---------------------------
310(a) 5.3
310(b) 5.3(c); 5.3(d)
311(a) 2.2(b)
311(b) 2.2(b)
312(a) 2.2(a)
312(b) 2.2(b)
313 2.3
314(a) 2.4; 3.6(j)
314(c) 2.5
315(a) 3.9
315(b) 2.7(a)
315(c) 3.9(a)
315(d) 3.9(b)
316(a) 2.6
316(c) 3.6(e)
317(a) 3.8(e); 3.8(h)
317(b) 3.8(i); 7.5
* This Cross-Reference Table does not constitute part of this Declaration
and shall not affect the interpretation of any of its terms or
provisions.
<PAGE>
-65-
Library: Columbus; Document #: 67751v7
Library: Columbus; Document #: 67751v7
AMENDED AND RESTATED
DECLARATION OF TRUST
OF
PEBO CAPITAL TRUST I
Dated as of April 20, 1999
AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") dated and
effective as of April 20, 1999, by and among the Trustees (as defined herein),
the Sponsor (as defined herein) and by the holders, from time to time, of
undivided beneficial interests in the assets of the Trust to be issued pursuant
to this Declaration;
WHEREAS, certain of the Trustees and the Sponsor established PEBO
Capital Trust I (the "Trust"), a trust created under the Delaware Business Trust
Act pursuant to a Declaration of Trust dated as of April 14, 1999 (the "Original
Declaration"), and a Certificate of Trust filed with the Secretary of State of
the State of Delaware on April 14, 1999, for the sole purpose of issuing and
selling certain securities representing undivided beneficial interests in the
assets of the Trust, investing the proceeds thereof in certain Debentures of the
Debenture Issuer (each as hereinafter defined), and engaging in only those
activities necessary, advisable or incidental thereto;
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, the
Trustees declare that all assets contributed to the Trust will be held in trust
for the benefit of the holders, from time to time, of the securities
representing undivided beneficial interests in the assets of the Trust issued
hereunder, subject to the provisions of this Declaration and, in consideration
of the mutual covenants contained herein and other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties,
intending to be legally bound hereby, agree as follows:
<PAGE>
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 or elsewhere herein 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 and each Annex and Exhibit hereto, as modified, supplemented or
amended from time to time;
(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 has the same meaning when
used in this Declaration unless otherwise defined in this Declaration or unless
the context otherwise requires;
(f) a term defined in the Indenture (as defined herein) has the same
meaning when used in this Declaration unless otherwise defined in this
Declaration or the context otherwise requires; and
(g) a reference to the singular includes the plural and vice versa.
"Administrative Trustee" has the meaning set forth in Section 5.1.
"Affiliate" has the same meaning as given to that term in Rule 405
under the Securities Act or any successor rule thereunder.
"Agent" means any Paying Agent, Registrar or Exchange Agent.
"Authorized Officer" of a Person means any other Person that is
authorized to legally bind such former Person.
"Banking Subsidiary" shall mean, collectively, The Peoples Banking and
Trust Company, The First National Bank of Southeastern Ohio and Peoples Bank
FSB, each of which is a direct wholly-owned subsidiary of Peoples Bancorp Inc.,
an Ohio corporation.
"Book-Entry Interest" means a beneficial interest in the Global Capital
Security 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 or a Sunday or a day
on which banking institutions in New York, New York or Marietta, Ohio are
authorized or required by law or executive order to remain closed.
"Business Trust Act" means Chapter 38 of Title 12 of the Delaware Code,
12 Del. Code ss.3801 et seq., as it may be amended from time to time, or any
successor legislation.
"Capital Securities" means, collectively, the Series A Capital
Securities and the Series B Capital Securities.
"Capital Securities Guarantee" means, collectively, the Series A
Capital Securities Guarantee and the Series B Capital Securities Guarantee.
"Capital 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).
"Capital Security Certificate" has the meaning set forth in
Section 9.4.
"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 Capital 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 Capital 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.
"Closing Time" means the "Closing Time" as defined in the Purchase
Agreement.
"Code" means the Internal Revenue Code of 1986, as amended from time to
time, or any successor legislation.
"Commission" means the United States Securities and Exchange Commission
as from time to time constituted, or if at any time after the execution of this
Declaration such Commission is not existing and performing the duties now
assigned to it under applicable federal securities laws, then the body
performing such duties at such time.
"Common Securities" has the meaning specified in Section 7.1(a).
"Common Securities Guarantee" means the Common Securities Guarantee
Agreement, dated as of the Closing Time, of Peoples Bancorp Inc., in respect of
the Common Securities.
"Common Securities Subscription Agreement" means the Common Securities
Subscription Agreement, dated as of the Closing Time, between the Trust and
Peoples Bancorp Inc., relating to the Common Securities.
"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 Wilmington Trust Company, 1100 North
Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
Administration.
"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.
"Debenture Issuer" means Peoples Bancorp Inc., an Ohio corporation, or
any successor entity resulting from any consolidation, amalgamation, merger or
other business combination, in its capacity as issuer of the Debentures under
the Indenture.
"Debenture Subscription Agreement" means the Debenture Subscription
Agreement, dated as of the Closing Time, between the Debenture Issuer and the
Trust in respect of the Series A Debentures.
"Debenture Trustee" means Wilmington Trust Company, a Delaware banking
corporation, as trustee under the Indenture until a successor is appointed
thereunder, and thereafter means such successor trustee.
"Debentures" means, collectively, the Series A Debentures and the
Series B Debentures.
"Default" means an event, act or condition that with notice or lapse of
time, or both, would constitute an Event of Default.
"Definitive Capital Securities" has the meaning set forth in Section
7.3(c).
"Delaware Trustee" has the meaning set forth in Section 5.1.
"Direct Action" has the meaning set forth in Section 3.8(e).
"Distribution" means a distribution payable to Holders in accordance
with Section 6.1.
"DTC" means The Depository Trust Company, the initial Clearing Agency.
"Event of Default" in respect of the Securities means an Event of
Default (as defined in the Indenture) that has occurred and is continuing in
respect of the Debentures.
"Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, or any successor legislation.
"Exchange Agent" has the meaning set forth in Section 7.4.
"Exchange Offer" means the offer that may be made pursuant to the
Registration Rights Agreement (i) by the Trust to exchange Series B Capital
Securities for Series A Capital Securities and (ii) by the Debenture Issuer to
exchange Series B Debentures for Series A Debentures and the Series B Capital
Securities Guarantee for the Series A Capital Securities Guarantee.
"Federal Reserve Board" means the Board of Governors of
the Federal Reserve System.
"Fiduciary Indemnified Person" has the meaning set forth in
Section 10.4(b).
"Fiscal Year" has the meaning set forth in Section 11.1.
"Global Capital Security" has the meaning set forth in Section 7.3(a).
"Holder" means a Person in whose name a Security or Successor 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, dated as of the Closing Time, between
the Debenture Issuer and the Debenture Trustee, as amended from time to time.
"Initial Optional Redemption Date" has the meaning set forth in Section
4(b) of Annex I hereto.
"Investment Company" means an investment company as defined in the
Investment Company Act.
"Investment Company Act" means the Investment Company Act of 1940, as
amended from time to time, or any successor legislation.
"Investment Company Event" has the meaning set forth in Section 4(c) of
Annex I hereto.
"Legal Action" has the meaning set forth in Section 3.6(g).
"Like Amount" has the meaning set forth in Section 3 of Annex I hereto.
"Liquidated Damages" has the meaning set forth in the Registration
Rights Agreement.
"List of Holders" has the meaning set forth in Section 2.2(a).
"Majority in Liquidation Amount " means, with respect to the Trust
Securities, except as provided in the terms of the Capital Securities or by the
Trust Indenture Act, Holders of outstanding Trust Securities voting together as
a single class or, as the context may require, Holders of outstanding Capital
Securities or Holders of outstanding Common Securities voting separately as a
class, who are the record owners of more than 50% of the aggregate liquidation
amount (including the amount that would be paid on redemption, liquidation or
otherwise, plus accumulated and unpaid Distributions to the date upon which the
voting percentages are determined) of all outstanding Securities of the relevant
class.
"Offering Memorandum" has the meaning set forth in Section 3.6(b)(i).
"Officers' Certificate" means, with respect to any Person, a
certificate signed by the Chairman, the Vice Chairman, the Chief Executive
Officer, the President, an Executive or Senior Vice President, a Vice President,
the Chief Financial Officer, and the Secretary or an Assistant Secretary. Any
Officers' Certificate delivered by the Trust shall be signed by at least one
Administrative Trustee. Any Officers' Certificate delivered with respect to
compliance with a condition or covenant provided for in this Declaration shall
include:
(a) a statement that each officer signing the
Certificate has read the covenant or condition and the definitions
relating thereto;
(b) a brief statement of the nature and scope of the
examination or investigation undertaken by each officer in rendering
the Certificate;
(c) a statement that each such officer has made such
examination or investigation as, in such officer's opinion, is
necessary to enable such officer to express an informed opinion as to
whether or not such covenant or condition has been complied with; and
(d) a statement as to whether, in the opinion of each such
officer, such condition or covenant has been complied with.
"Opinion of Counsel" means a written opinion of counsel, who may be an
employee of the Sponsor, and who shall be acceptable to the Property Trustee.
"Participants" has the meaning specified in Section 7.3(b).
"Paying Agent" has the meaning specified in Section 7.4.
"Payment Amount" has the meaning specified in Section 6.1.
"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.
"PORTAL" has the meaning set forth in Section 3.6(b) (iii).
"Property Trustee" has the meaning set forth in Section 5.3(a).
"Property Trustee Account" has the meaning set forth in Section
3.8(c)(i).
"Purchase Agreement" means the Purchase Agreement relating to the
Series A Capital Securities, dated April 15, 1999, by and among the Trust, the
Debenture Issuer and the Initial Purchaser named therein.
"QIBs" shall mean qualified institutional buyers as defined in
Rule 144A.
"Quorum" means a majority of the Administrative Trustees or, if there
are only two Administrative Trustees, both of them.
"Registrar" has the meaning set forth in Section 7.4.
"Registration Rights Agreement" means the Registration Rights Agreement
dated as of April 20, 1999, by and among the Trust, the Debenture Trustee and
the Initial Purchaser named therein, as amended from time to time.
"Registration Statement" has the meaning set forth in the Registration
Rights Agreement.
"Regulatory Capital Event" has the meaning set forth in Section 4(c) of
Annex I hereto.
"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 assigned to the Corporate Trust Office, including any managing director,
principal, vice president, assistant vice president, assistant treasurer,
assistant secretary or any other officer of the Property Trustee customarily
performing functions similar to those performed by any of the above designated
officers and having direct responsibility for the administration of this
Declaration, and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.
"Restricted Capital Security" means a Capital Security required by
Section 9.2 to contain a Restricted Securities Legend.
"Restricted Definitive Capital Securities" has the meaning set forth in
Section 7.3(c).
"Restricted Securities Legend" has the meaning set forth in Section
9.2(i).
"Rule 3a-5" means Rule 3a-5 under the Investment Company Act, or any
successor rule or regulation.
"Rule 144" means Rule 144 under the Securities Act, as such rule may be
amended from time to time, or any similar rule or regulation hereafter adopted
by the Commission.
"Rule 144A" means Rule 144A under the Securities Act, as such rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission.
"Securities" or "Trust Securities" means the Common Securities and the
Capital 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
Capital Securities Guarantee.
"Series A Capital Securities" has the meaning specified in Section
7.1(a) and may be alternatively referred to as the 8.62 % Capital Securities.
"Series A Capital Securities Guarantee" means the guarantee agreement
dated as of April 20, 1999, by the Sponsor in respect of the Series A Capital
Securities.
"Series A Debentures" means the Series A 8.62% Junior Subordinated
Deferrable Interest Debentures due May 1, 2029 of the Debenture Issuer issued
pursuant to the Indenture.
"Series B Capital Securities" has the meaning specified in
Section 7.1(a).
"Series B Capital Securities Guarantee" means the guarantee agreement
to be entered into in connection with the Exchange Offer by the Sponsor in
respect of the Series B Capital Securities.
"Series B Debentures" means the Series B 8.62% Junior Subordinated
Deferrable Interest Debentures due May 1, 2029 of the Debenture Issuer issued
pursuant to the Indenture.
"Special Event" has the meaning set forth in Section 4(c) of Annex
I hereto.
"Special Event Redemption Price" has the meaning set forth in Section
4(c) of Annex I hereto.
"Sponsor" means Peoples Bancorp Inc., an Ohio corporation, or any
successor entity resulting from any merger, consolidation, amalgamation or other
business combination, in its capacity as sponsor of the Trust.
"Successor Delaware Trustee" has the meaning set forth in Section
5.6(b)(ii).
"Successor Entity" has the meaning set forth in Section 3.15(b)(i).
"Successor Property Trustee" has the meaning set forth in Section
3.8(f)(ii).
"Successor Securities" has the meaning set forth in Section 3.15(b)(i).
"Super Majority" has the meaning set forth in Section 2.6(a) (ii).
"Tax Event" has the meaning set forth in Section 4(c) of Annex I
hereto.
"10% in Liquidation Amount" means, with respect to the Trust
Securities, except as provided in the terms of the Capital Securities or by the
Trust Indenture Act, Holders of outstanding Trust Securities voting together as
a single class or, as the context may require, Holders of outstanding Capital
Securities or Holders of outstanding Common Securities voting separately as a
class, who are the record owners of 10% or more of the aggregate liquidation
amount (including the amount that would be paid on redemption, liquidation or
otherwise, plus accumulated and unpaid Distributions to the date upon which the
voting percentages are determined) of all outstanding Securities of the relevant
class.
"Treasury Regulations" means the income tax regulations, including
temporary and proposed regulations, promulgated under the Code by the United
States Treasury, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).
"Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
from time to time, or any successor legislation.
"Trust Property" means (a) the Debentures, (b) any cash on deposit in
or owing to the Property Trustee Account and (c) all proceeds and rights in
respect of the foregoing and any other property and assets for the time being
held or deemed to be held by the Property Trustee pursuant to this Declaration.
"Trustee" or "Trustees" means each Person who has signed this
Declaration as a trustee, so long as such Person shall continue as a trustee of
the Trust 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.
"Unrestricted Global Capital Security" has the meaning set forth in
Section 9.2(b).
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 in order for this
Declaration to be qualified under the Trust Indenture Act and shall, to the
extent applicable, be governed by such provisions.
(b) The Property Trustee shall be the only Trustee that 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 ss.ss.310 to 317, inclusive,
of the Trust Indenture Act, such imposed duties 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.
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(a) Each of the Sponsor and the Administrative Trustees on behalf of
the Trust shall provide the Property Trustee, unless the Property Trustee is
Registrar for the Securities, (i) within 14 days after each record date for
payment of Distributions, a list, in such form as the Property Trustee may
reasonably require, of the names and addresses of the Holders ("List of
Holders") as of such record date, provided that, neither the Sponsor nor the
Administrative Trustees on behalf of the Trust shall be obligated to provide
such List of Holders at any time that the List of Holders does not differ from
the most recent List of Holders given to the Property Trustee by the Sponsor and
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 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 Lists of Holders
given to it or which it receives in the capacity as Paying Agent (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
underss.ss.311(a), 311(b) and 312(b) of the Trust Indenture Act.
SECTION 2.3 Reports by the Property Trustee.
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Within 60 days after May 31st of each year, commencing May 31, 2000,
the Property Trustee shall provide to the Holders of the Capital Securities such
reports as are required by ss.313 of the Trust Indenture Act, if any, in the
form and in the manner provided by ss.313 of the Trust Indenture Act. The
Property Trustee shall also comply with the requirements of ss.313(d) of the
Trust Indenture Act.
SECTION 2.4 Periodic Reports to Property Trustee.
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Each of the Sponsor and the Administrative Trustees on behalf of the
Trust shall provide to the Property Trustee such documents, reports and
information as are required by ss.314 (if any) of the Trust Indenture Act and
the compliance certificate required by ss.314 of the Trust Indenture Act in the
form, in the manner and at the times required by ss.314 of the Trust Indenture
Act.
SECTION 2.5 Evidence of Compliance with Conditions Precedent.
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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 provided for in this Declaration that relate to any of the
matters set forth in ss.314(c) of the Trust Indenture Act. Any certificate or
opinion required to be given by an officer pursuant to ss.314(c)(1) of the Trust
Indenture Act 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 Capital
Securities may, by vote, on behalf of the Holders of all of the Capital
Securities, waive any past Event of Default in respect of the Capital Securities
and its consequences, provided that, if the underlying Event of Default under
the Indenture:
(i) is not waivable under the Indenture,
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 aggregate principal amount of the holders of the
Debentures (a "Super Majority") to be waived under the
Indenture, the Event of Default under the Declaration may only
be waived by the vote of the Holders of at least the
proportion in aggregate liquidation amount of the Capital
Securities that the relevant Super Majority represents of the
aggregate principal amount of the Debentures outstanding.
The foregoing provisions of this Section 2.6(a) shall be in lieu of
ss.316(a)(1)(B) of the Trust Indenture Act and such ss.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
Default shall cease to exist, and any Event of Default with respect to the
Capital 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 Capital
Securities or impair any right consequent thereon. Any waiver by the Holders of
the Capital Securities of an Event of Default with respect to the Capital
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.
(b) The Holders of a Majority in Liquidation Amount of the Common
Securities may, by vote, 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 Indenture, except where
the Holders of the Common Securities are deemed to have waived
such Event of Default under this Declaration as provided below
in this Section 2.6(b), the Event of Default under this
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 this Declaration as provided below in this Section
2.6(b), the Event of Default under this Declaration may only
be waived by the vote of the Holders of at least the
proportion in aggregate 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 their consequences if all Events of Default with respect to the
Capital 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 Capital Securities and only the Holders of the Capital 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
ss.ss.316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act and such
ss.ss.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 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 an Event of Default under the Indenture by the Property
Trustee, at the direction of the Holders of the Capital Securities, constitutes
a waiver of the corresponding Event of Default under this Declaration. The
foregoing provisions of this Section 2.6(c) shall be in lieu of ss.316(a)(1)(B)
of the Trust Indenture Act and such ss.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 Default; Notice.
(a) The Property Trustee shall, within 90 days after a Responsible
Officer obtains actual knowledge of the occurrence of a Default with respect to
the Securities, transmit by mail, first class postage prepaid, to the Holders,
notices of all such Defaults, unless such Defaults have been cured before the
giving of such notice or previously waived; provided, however, that except in
the case of a Default arising from the nonpayment of principal of (or premium,
if any) or interest (including Compounded Interest, Additional Sums and
Liquidated Damages (as such terms are defined in the Indenture), if any) on any
of the Debentures, the Property Trustee shall be protected in withholding such
notice if and so long as a Responsible Officer in good faith determines that the
withholding of such notice is in the interests of the Holders.
(b) The Property Trustee shall not be deemed to have knowledge of any
Default or Event of Default except:
(i) a Default or Event of Default under Sections
5.01(a) (other than the payment of Compounded Interest,
Additional Sums and Liquidated Damages) and 5.01(b) of the
Indenture; or
(ii) any Default or Event of Default as to which the
Property Trustee shall have received written notice or of
which a Responsible Officer charged with the administration of
the Declaration shall have actual knowledge.
(c) Within ten Business Days after a Responsible Officer obtains actual
knowledge of the occurrence of any Event of Default, the Property Trustee shall
transmit notice of such Event of Default to the Holders of the Capital
Securities, the Administrative Trustees and the Sponsor, unless such Event of
Default shall have been cured or waived. The Sponsor and the Administrative
Trustees shall file annually with the Property Trustee a certification as to
whether or not they are in compliance with all the conditions and covenants
applicable to them under this Declaration.
ARTICLE III
ORGANIZATION
SECTION 3.1 Name.
The Trust is named "PEBO Capital Trust I" as such name may be modified
from time to time by the Administrative Trustees following written notice to the
Delaware Trustee, the Property Trustee and the Holders. 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 Peoples Bancorp
Inc., 138 Putnam Street, P.O. Box 738, Marietta, Ohio 45750-0738, Attention:
Charles R. Hunsaker. On ten Business Days' prior written notice to the Delaware
Trustee, the Property Trustee and the 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, (b) to use the proceeds from the sale of the Securities to
acquire the Debentures, (c) to issue the Series B Capital Securities in exchange
for the Series A Capital Securities, and (d) except as otherwise limited herein,
to engage in only those other activities necessary, advisable or incidental
thereto, including without limitation, those activities specified in Sections
3.6, 3.8, 3.9, 3.10, 3.11 and/or 3.12. The Trust shall not borrow money, issue
debt or reinvest proceeds derived from investments, mortgage or 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 one or more of 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 Debentures 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 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, and are hereby authorized and directed, to cause the Trust to engage
in the following activities:
(a) to execute, deliver, issue and sell the Securities in accordance
with this Declaration; provided, however, that (i) the Trust may issue no more
than two series of Capital Securities and no more than one series of Common
Securities, (ii) there shall be no interests in the Trust other than the
Securities, and (iii) the issuance of Series A Capital Securities and the Common
Securities shall be limited to a simultaneous issuance of both Series A Capital
Securities and Common Securities at the Closing Time;
(b) in connection with the issue and sale of the Capital Securities and
the Exchange Offer, at the direction of the Sponsor, to:
(i) prepare and execute, if necessary, (A) an
offering memorandum (the "Offering Memorandum") in preliminary
and final form prepared by the Sponsor, in relation to the
offering and sale of Series A Capital Securities to QIBs in
reliance on Rule 144A and to institutional "accredited
investors" (as defined in Rule 501(a)(1), (2), (3) or (7)
under the Securities Act), and (B) and the Registration
Statement in preliminary and final form prepared by the
Sponsor, in relation to the Exchange Offer;
(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
Capital Securities in any State in which the Sponsor has
determined to qualify or register such Capital Securities for
sale;
(iii) execute and file an application, prepared by
the Sponsor, to permit the Capital Securities to trade or be
quoted or listed in or on the Private Offerings, Resales and
Trading through Automated Linkages ("PORTAL") Market or any
other securities exchange, quotation system or the Nasdaq
Stock Market's National Market;
(iv) execute and deliver the letters, documents, or
instruments with DTC and other Clearing Agencies relating to
the Capital Securities; and
(v) execute and deliver the Registration Rights
Agreement.
(c) to execute, enter into and deliver the Common Securities
Subscription Agreement and the Debenture Subscription Agreement and to acquire
the Debentures with the proceeds of the sale of the Series A Capital Securities
and the Common Securities; provided, however, that the Administrative Trustees
shall cause legal title to the Debentures to be held of record in the name of
the Property Trustee for the benefit of the Holders;
(d) to give the Sponsor and the Property Trustee prompt written notice
of the occurrence of a Special Event;
(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 ss.316(c) of the Trust Indenture Act, Distributions,
voting rights, redemptions and exchanges, and to issue relevant notices to the
Holders 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;
(g) to the fullest extent permitted by law, 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, agents (who may be
designated as officers with titles), 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 ss.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
Exchange Agent for the Securities or to appoint a Paying Agent for the
Securities as provided in Section 7.4, except for such time as such power to
appoint a Paying Agent is vested in the Property Trustee;
(m) to give prompt written notice to the Property Trustee and to
Holders of any notice received from the Debenture Issuer of its election to
defer payments of interest on the Debentures by extending the interest payment
period under the Indenture;
(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 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 as set
out in this Section 3.6, 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 continue to be classified
for United States federal income tax purposes as a grantor
trust; and
(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;
(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 by the Administrative Trustees, on behalf of
the Trust; and
(q) to execute and deliver all documents or instruments, perform all
duties and powers, and do all things for and on behalf of the Trust in all
matters necessary, advisable or incidental to the foregoing.
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.
Any expenses incurred by the Administrative Trustees pursuant to this
Section 3.6 shall be reimbursed by the Debenture Issuer.
SECTION 3.7 Prohibition of Actions by the Trust and the Trustees.
----------------------------------------------------
The Trust shall not, and the Trustees (including the Property Trustee
and the Delaware Trustee) shall not, and the Administrative Trustees shall cause
the Trust not to, engage in any activity other than as required or authorized by
this Declaration. The Trust shall not:
(i) invest any proceeds received by the Trust from
holding the Debentures, but shall distribute all such proceeds
to Holders pursuant to the terms of this Declaration and of
the Securities;
(ii) acquire any assets other than as expressly
provided herein;
(iii) possess Trust Property for other than a Trust
purpose or execute any mortgage in respect of, or pledge, any
Trust Property;
(iv) make any loans or incur any indebtedness other
than loans represented by the Debentures;
(v) possess any power or otherwise act in such a way
as to vary the Trust Property or the terms of the Securities
in any way whatsoever;
(vi) issue any securities or other evidences of
beneficial ownership of, or beneficial interest in, the Trust
other than the Securities;
(vii) other than as provided in this Declaration or
Annex I hereto, (A) direct the time, method and place of
conducting any proceeding with respect to any remedy available
to the Debenture Trustee, or exercising any trust or power
conferred upon the Debenture Trustee with respect to the
Debentures, (B) waive any past default that is waivable under
the Indenture, or (C) exercise any right to rescind or annul
any declaration that the principal of all the Debentures shall
be due and payable; or
(viii) consent to any amendment, modification or
termination of the Indenture or the Debentures where such
consent shall be required unless the Trust shall have received
an opinion of independent tax counsel experienced in such
matters to the effect that such amendment, modification or
termination will not cause more than an insubstantial risk
that the Trust will not be classified as a grantor trust for
United States federal income tax purposes.
SECTION 3.8 Powers and Duties of the Property Trustee.
-----------------------------------------
(a) The legal title to the Debentures 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. The right, title and interest of the Property Trustee to the
Debentures 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 Debentures to the Administrative Trustees or to the Delaware
Trustee (if the Property Trustee does not also act as Delaware Trustee).
(c) The Property Trustee shall:
(i) establish and maintain a segregated non-interest
bearing trust account (the "Property Trustee Account") in the
name of and under the exclusive control of the Property
Trustee on behalf of the Holders and, upon the receipt of
payments of funds made in respect of the Debentures held by
the Property Trustee, deposit such funds into the Property
Trustee Account and make payments or cause the Paying Agent to
make payments to the Holders from the Property Trustee Account
in accordance with Section 6.1; funds in the Property Trustee
Account shall be held uninvested until disbursed in accordance
with this Declaration; and the Property Trustee Account shall
be an account that is maintained with a banking institution
the rating on whose long-term unsecured indebtedness by a
"nationally recognized statistical rating organization," as
that term is defined for purposes of Rule 436(g)(2) under the
Securities Act, is at least equal to the rating, if any,
assigned to the Capital Securities;
(ii) engage in such ministerial activities as shall
be necessary or appropriate to effect the redemption of the
Securities to the extent the Debentures are redeemed or
mature; and
(iii) upon written notice of distribution issued by
the Administrative Trustees in accordance with the terms of
the Securities, engage in such ministerial activities as shall
be necessary or appropriate to effect the distribution of the
Debentures to Holders upon the occurrence of certain events.
(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
this Declaration and the Securities.
(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 has actual knowledge or the Property Trustee's
duties and obligations under this Declaration or the Trust Indenture Act; and if
the Property Trustee shall have failed to take such Legal Action, the Holders of
the Capital Securities may, to the fullest extent permitted by law, take such
Legal Action, to the same extent as if such Holders of Capital Securities held
an aggregate principal amount of Debentures equal to the aggregate liquidation
amount of such Capital Securities, without first proceeding against the Property
Trustee or the Trust; provided, however, that if an Event of Default has
occurred and is continuing and such event is attributable to the failure of the
Debenture Issuer to pay the principal of or premium, if any, or interest
(including Compounded Interest and Additional Sums, if any) or Liquidated
Damages, if any on the Debentures on the date such principal, premium, if any,
or interest (including Compounded Interest and Additional Sums, if any) or
Liquidated Damages, if any, is otherwise payable (or in the case of redemption,
on the redemption date), then a Holder of Capital Securities may directly
institute a proceeding for enforcement of payment to such Holder of the
principal of or premium, if any, or interest (including Compounded Interest and
Additional Sums, if any) or Liquidated Damages, if any, on the Debentures having
a principal amount equal to the aggregate liquidation amount of the Capital
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
Holders of the Common Securities will be subrogated to the rights of such Holder
of Capital Securities to the extent of any payment made by the Debenture Issuer
to such Holder of Capital Securities in such Direct Action. Except as provided
in the preceding sentences, the Holders of Capital Securities will not be able
to exercise directly any other remedy available to the holders of the
Debentures.
(f) The Property Trustee shall continue to serve as a Trustee until
either:
(i) the Trust has been completely liquidated and the
proceeds of the liquidation distributed to the Holders
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
and, if an Event of Default actually known to a Responsible Officer occurs and
is continuing, the Property Trustee shall, for the benefit of Holders, enforce
its rights as holder of the Debentures subject to the rights of the Holders
pursuant to the terms of this Declaration and the Securities.
(h) The Property Trustee shall be authorized to undertake any actions
set forth in ss.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 pay Distributions, redemption payments or liquidation payments on
behalf of the Trust with respect to all Securities and any such Paying Agent
shall comply with ss.317(b) of the Trust Indenture Act. Any such additional
Paying Agent may be removed by the Property Trustee at any time 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 while the Property Trustee is acting as Paying Agent.
(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.
Notwithstanding anything expressed or implied to the contrary in this
Declaration or any Annex or Exhibit hereto, (i) 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 (ii)
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.
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(a) The Property Trustee, before the occurrence of any Event of Default
(of which, other than in the case of Events of Default under Sections 5.01(a)
and 5.01(b) of the Indenture, a Responsible Officer of the Property Trustee has
actual knowledge) and after the curing or waiving of all such Events of Default
that may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Declaration and in the Securities 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 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
(of which, other than in the case of Events of Default under
Sections 5.01(a) and 5.01(b) of the Indenture, a Responsible
Officer of the Property Trustee has actual knowledge) 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 in the Securities
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 in
the Securities, 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; provided, however,
that 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 on their face 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,
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
a Majority in Liquidation Amount of 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;
(v) the Property Trustee's sole duty with respect to
the custody, safekeeping and physical preservation of the
Debentures 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 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 Debentures 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 may
be sufficiently evidenced by 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;
(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 or
other experts of its selection 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, and 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 such Holder shall have provided to the Property
Trustee security and indemnity, reasonably satisfactory to the
Property Trustee, against the costs, expenses (including
reasonable 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; provided,
however, 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 which, other than in the
case of Events of Default under Sections 5.01(a) and 5.01(b)
of the Indenture, a Responsible Officer of the Property
Trustee has actual knowledge), 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 authorized or required action taken by the
Property Trustee or its agents hereunder shall bind the Trust
and the Holders, 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 instructions with respect to enforcing any remedy or
right or taking any other action hereunder, the Property
Trustee (i) may request instructions from the Holders, 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 right or taking such
other action until such instructions are received, and (iii)
shall be protected in conclusively relying on or acting in
accordance with such instructions;
(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, without negligence or willful misconduct, 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 described in this Declaration (except as required under the
Business Trust Act). 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 ss.3807 of the Business Trust Act. In the event 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) to (viii), inclusive, and Section 3.10. No implied covenants or
obligations shall be read into this Declaration against the Delaware Trustee.
SECTION 3.12 Execution of Documents.
Unless otherwise required by applicable law, each Administrative
Trustee, individually, is authorized to execute and deliver on behalf of the
Trust any documents, agreements, instruments or certificates that the
Administrative Trustees have the power and authority to execute pursuant to
Section 3.6.
SECTION 3.13 Not Responsible for Recitals or Issuance of Securities.
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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 Trust Property or any part thereof. The Trustees
make no representations as to the validity or sufficiency of this Declaration or
the Securities.
SECTION 3.14 Duration of Trust.
The Trust, unless dissolved pursuant to the provisions of Article VIII
hereof, shall have existence up to December 31, 2034.
SECTION 3.15 Mergers.
(a) The Trust may not merge with or into, convert into, consolidate,
amalgamate, 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 as
described in Section 3.15(b) and (c) and except with respect to the distribution
of Debentures to Holders pursuant to Section 8.1(a)(iii) of this Declaration or
Section 3 of Annex I.
(b) 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, the Delaware
Trustee or the Property Trustee, merge with or into, convert into, consolidate,
amalgamate, or be replaced by, or convey, transfer or lease its properties and
assets as an entirety or substantially as an entirety to, a trust organized as
such under the laws of any State; provided that:
(i) such successor entity (the "Successor
Entity") either:
(A) expressly assumes all of the obligations
of the Trust under the Securities; or
(B) substitutes for the Securities other securities
having substantially the same terms as the Securities
(the "Successor Securities") so long as the Successor
Securities rank the same as the Securities rank in
priority with respect to Distributions and payments
upon liquidation, redemption and otherwise;
(ii) the Sponsor expressly appoints a trustee of the
Successor Entity that possesses the same powers and duties as
the Property Trustee with respect to the Debentures;
(iii) the Successor Securities (excluding any
securities substituted for the Common Securities) are listed,
quoted or included for trading, or any Successor Securities
will be listed, quoted or included for trading upon
notification of issuance, on any national securities exchange
or with any other organization on which the Capital Securities
are then listed, quoted or included;
(iv) such merger, conversion, consolidation,
amalgamation, replacement, conveyance, transfer or lease does
not cause the Capital Securities (including any Successor
Securities) or the Debentures to be downgraded by any
nationally recognized statistical rating organization that
publishes a rating on the Capital Securities or the
Debentures;
(v) such merger, conversion, consolidation,
amalgamation, replacement, conveyance, transfer or lease does
not adversely affect the rights, preferences and privileges of
the Holders (including the holders of any Successor
Securities) in any material respect (other than with respect
to any dilution of the interests of such Holders or holders,
as the case may be, in the Successor Entity);
(vi) the Successor Entity has a purpose
substantially identical to that of the Trust;
(vii) prior to such merger, conversion,
consolidation, amalgamation, replacement, conveyance, transfer
or lease, the Sponsor has received an opinion of independent
counsel to the Trust experienced in such matters to the effect
that:
(A) such merger, conversion, consolidation,
amalgamation, replacement, conveyance, transfer or
lease does not adversely affect the rights,
preferences and privileges of the Holders (including
the holders of any Successor Securities) in any
material respect (other than with respect to any
dilution of the interests of such Holders or holders,
as the case may be, in the Successor Entity);
(B) following such merger, conversion, consolidation,
amalgamation, replacement, conveyance, transfer or
lease, neither the Trust nor the Successor Entity
will be required to register as an Investment
Company; and
(C) following such merger, conversion, consolidation,
amalgamation, replacement, conveyance, transfer or
lease, the Trust (or the Successor Entity) will
continue to be classified as a grantor trust for
United States federal income tax purposes;
(viii) the Sponsor or any permitted successor or
assignee owns all of the common securities of the Successor
Entity and guarantees the obligations of the Successor Entity
under the Successor Securities at least to the extent provided
by the Securities Guarantees; and
(ix) there shall have been furnished to the Property
Trustee an Officers' Certificate and an Opinion of Counsel,
each to the effect that all conditions precedent in this
Declaration to such transaction have been satisfied.
(c) Notwithstanding Section 3.15(b), the Trust shall not, except with
the consent of Holders of 100% in aggregate liquidation amount of the
Securities, consolidate, amalgamate, merge with or into, or convert into, be
replaced by, or convey, transfer or lease its properties and assets as an
entirety or substantially as an entirety to, any other Person or permit any
other Person to consolidate, amalgamate, merge with or into, convert into or
replace it if such consolidation, amalgamation, merger, conversion, replacement,
conveyance, transfer or lease would cause the Trust or the Successor Entity not
to be classified as a grantor trust for United States federal income tax
purposes.
ARTICLE IV
SPONSOR
SECTION 4.1 Sponsor's Purchase of Common Securities.
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At the Closing Time, pursuant to the Common Securities Subscription
Agreement, the Sponsor will purchase all of the Common Securities then issued by
the Trust, in an amount equal to at least 3% of the total capital of the Trust,
at the same time as the Capital Securities are issued and sold.
SECTION 4.2 Responsibilities of the Sponsor.
In connection with the issue and sale of the Capital Securities, the
Sponsor shall have the exclusive right and responsibility to engage in the
following activities:
(a) to prepare the Offering Memorandum and to prepare for filing by the
Trust with the Commission any Registration Statement, including any amendments
thereto, as contemplated by the Registration Rights Agreement;
(b) to determine the States in which to take appropriate action to
qualify or register for sale all or part of the Capital Securities and to do any
and all such acts, other than actions which must be taken by the Trust, and
advise the Trust of actions it must take, and prepare for execution and filing
any documents to be executed and filed by the Trust, as the Sponsor deems
necessary or advisable in order to comply with the applicable laws of any such
States;
(c) if deemed necessary or advisable by the Sponsor, to prepare for
filing by the Trust an application to permit the Capital Securities to trade or
be quoted or listed in or on the PORTAL market or any other securities exchange,
quotation system or the Nasdaq Stock Market's National Market; and
(d) to negotiate the terms of, execute, enter into and deliver the
Purchase Agreement and the Registration Rights Agreement.
SECTION 4.3 Right to Proceed.
The Sponsor acknowledges the rights of the Holders of Capital
Securities, in the event that a failure of the Trust to pay Distributions on the
Capital Securities is attributable to the failure of the Debenture Issuer to pay
the principal of or premium (if any) or interest on the Debentures, to institute
a proceeding directly against the Debenture Issuer for enforcement of its
payment obligations in respect of the Debentures.
SECTION 4.4 Right to Dissolve Trust.
The Sponsor will have the right at any time to dissolve the Trust and,
after satisfaction of liabilities to creditors of the Trust as required by
applicable law, to cause the Debentures to be distributed to the Holders in
liquidation of the Trust. Such right is subject to the Sponsor having received
(i) an Opinion of Counsel to the effect that such distribution will not cause
the Holders of Capital Securities to recognize gain or loss for United States
federal income tax purposes and (ii) any required regulatory approvals.
ARTICLE V
TRUSTEES
SECTION 5.1 Number of Trustees; Appointment of Co-Trustee.
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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 voting as a class at a meeting of the Holders 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, in the case of a natural person,
shall be a person who is a resident of the State of Delaware or that, if not a
natural person, is an entity which has its principal place of business in the
State of Delaware (the "Delaware Trustee"); (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 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. Notwithstanding the above, unless an Event of
Default shall have occurred and be continuing, at any time or times, for the
purpose of meeting the legal requirements of the Trust Indenture Act or of any
jurisdiction in which any part of the Trust Property may at the time be located,
the Holders of a Majority in Liquidation Amount of the Common Securities acting
as a class at a meeting of the Holders of the Common Securities, and the
Administrative Trustees shall have power to appoint one or more Persons either
to act as a co-trustee, jointly with the Property Trustee, of all or any part of
the Trust Property, or to act as separate trustee of any such property, in
either case with such powers as may be provided in the instrument of
appointment, and to vest in such Person or Persons in such capacity any
property, title, right or power deemed necessary or desirable, subject to the
provisions of this Declaration. In case an Event of Default has occurred and is
continuing, the Property Trustee alone shall have power to make any such
appointment of a co-trustee.
SECTION 5.2 Delaware Trustee.
For so long as required by the Business Trust Act, 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,
provided, however, 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.
The initial Delaware Trustee shall be:
Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn: Corporate Trust Administration
SECTION 5.3 Property Trustee; Eligibility.
(a) There shall at all times be one Trustee (the "Property Trustee")
which shall act as Property Trustee and 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
indenture trustee under the Trust Indenture Act, authorized
under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least 10 million U.S.
dollars ($10,000,000), 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
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 ss.310(b) of the Trust Indenture Act, the
Property Trustee and the Holders of the Common Securities (as if it were the
obligor referred to in ss.310(b) of the Trust Indenture Act) shall in all
respects comply with the provisions of ss.310(b) of the Trust Indenture Act.
(d) The Capital Securities Guarantee shall be deemed to be specifically
described in this Declaration for purposes of clause (i) of the first proviso
contained in ss.310 (b) of the Trust Indenture Act.
(e) The initial Property Trustee shall be:
Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn: Corporate Trust Administration
SECTION 5.4 Certain Qualifications of Administrative Trustees and
Delaware Trustee Generally.
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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:
John W. Conlon
Charles R. Hunsaker
Mark F. Bradley
c/o Peoples Bancorp Inc.
138 Putnam Street
P.O. Box 738
Marietta, Ohio 45750-0738
Attention: Charles R. Hunsaker
Telecopier: (740) 376-7277
Telephone: (740) 374-6109
(a) Except as expressly set forth in this Declaration and except if a
meeting of the Administrative Trustees is called 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 required by the applicable law, any Administrative
Trustee acting alone 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.
(c) An 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 purposes of signing any documents which the Administrative
Trustees have power and authority to cause the Trust to execute pursuant to
Section 3.6.
SECTION 5.6 Appointment, Removal and Resignation of Trustees.
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(a) Subject to Section 5.6(b) hereof and to Section 6(b) of Annex I
hereto, 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;
(ii) unless an Event of Default shall have occurred
and be continuing 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; and
(iii) if an Event of Default shall have occurred and
be continuing after the issuance of the Securities, with
respect to the Property Trustee or the Delaware Trustee, by
vote of Holders of a Majority in Liquidation Amount of the
Capital Securities voting as a class at a meeting of Holders
of the Capital Securities.
(b) (i) The Trustee that acts as 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 removed Property Trustee,
the Administrative Trustees and the Sponsor; and
(ii) the Trustee that acts as 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
removed Delaware Trustee, the Property Trustee (if the removed Delaware Trustee
is not also the Property Trustee), the Administrative Trustees and the Sponsor.
(c) A Trustee appointed to office shall hold office until his successor
shall have been appointed or until his death, 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 and the Trust, 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 (if the resigning Property Trustee
is not also the Delaware Trustee) and the resigning
Property Trustee; or
(B) until the assets of the Trust have been
completely liquidated and the proceeds thereof
distributed to the Holders; 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 Property Trustee (if
the resigning Delaware Trustee is not also the Property
Trustee), the Sponsor and the resigning Delaware Trustee.
(d) The Holders of the Common Securities or, if an Event of Default
shall have occurred and be continuing after the issuance of the Securities, the
Holders of the Capital Securities shall use their best 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 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.l, 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 dissolve, liquidate or annul the Trust or to terminate this
Declaration. 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 24 hours before such meeting. Notice of
any telephonic meetings of the Administrative Trustees 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
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, or making any other governmental filing.
(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 this Declaration.
SECTION 5.11 Merger, Conversion, Consolidation or Succession to Business.
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Any Person into which the Property Trustee or the Delaware Trustee or
any Administrative Trustee that is not a natural person, as the case may be, may
be merged or converted or with which it 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, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, provided such Person shall be otherwise
qualified and eligible under this Article.
ARTICLE VI
DISTRIBUTIONS
SECTION 6.1 Distributions.
Holders shall receive Distributions in accordance with the applicable
terms of the relevant Holder's Securities. If and to the extent that the
Debenture Issuer makes a payment of interest (including Compounded Interest and
Additional Sums), Liquidated Damages, if any, premium and/or principal on the
Debentures held by the Property Trustee (the amount of any such payment being a
"Payment Amount"), the Property Trustee shall and is directed, to the extent
funds are available for that purpose, to make a distribution (a "Distribution")
of the Payment Amount to Holders in accordance with the terms of the Securities.
ARTICLE VII
ISSUANCE OF SECURITIES
SECTION 7.1 General Provisions Regarding Securities.
(a) The Administrative Trustees shall on behalf of the Trust issue one
class of capital securities representing undivided preferred beneficial
interests in the assets of the Trust having such terms as are set forth in Annex
I (the "Series A Capital Securities") and one class of common securities
representing common undivided beneficial interests in the assets of the Trust
having such terms as are set forth in Annex I (the "Common Securities"). The
Administrative Trustees shall on behalf of the Trust issue one class of capital
securities representing undivided beneficial interests in the Trust having such
terms as set forth in Annex I (the "Series B Capital Securities") in exchange
for the Series A Capital Securities accepted for exchange in the Exchange Offer,
which Series B Capital Securities shall not bear the legends required by Section
9.2(i) unless the Holder of such Series A Capital Securities is either (A) a
broker-dealer who purchased such Series A Capital Securities directly from the
Trust for resale pursuant to Rule 144A or any other available exemption under
the Securities Act, (B) a Person participating in the distribution of the Series
A Capital Securities or (C) a Person who is an affiliate (as defined in Rule
144A) of the Trust. The Trust shall issue no securities or other interests in
the assets of the Trust other than the Capital Securities and the Common
Securities.
(b) 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.
(c) Upon issuance of the Securities as provided in this Declaration,
the Securities so issued shall be deemed to be validly issued, fully paid and
nonassessable.
(d) Every Person, by virtue of having become a Holder or a Capital
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.
SECTION 7.2 Execution and Authentication.
(a) The Securities shall be signed on behalf of the Trust by an
Administrative Trustee. In case any Administrative Trustee of the Trust who
shall have signed any of the Securities shall cease to be such Administrative
Trustee before the Securities so signed shall be delivered by the Trust, such
Securities nevertheless may be delivered as though the Person who signed such
Securities had not ceased to be such Administrative Trustee; and any Securities
may be signed on behalf of the Trust by such persons who, at the actual date of
execution of such Security, shall be the Administrative Trustees of the Trust,
although at the date of the execution and delivery of this Declaration any such
person was not an Administrative Trustee.
(b) One Administrative Trustee shall sign the Capital Securities for
the Trust by manual or facsimile signature. Unless otherwise determined by an
Administrative Trustee on behalf of the Trust, such signature shall, in the case
of Common Securities, be a manual signature.
A Capital Security shall not be valid until authenticated by the manual
signature of an authorized signatory of the Property Trustee. The signature
shall be conclusive evidence that the Capital Security has been authenticated
under this Declaration. A Common Security shall be valid upon execution by an
Administrative Trustee without any act of the Property Trustee.
Upon a written order of the Trust signed by one Administrative Trustee,
the Property Trustee shall authenticate the Capital Securities for original
issue. The aggregate number of Capital Securities outstanding at any time shall
not exceed the number set forth in Annex I hereto except as provided in Section
7.6.
The Property Trustee may appoint an authenticating agent acceptable to
the Trust to authenticate Capital Securities. An authenticating agent may
authenticate Capital Securities 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 hereunder with respect to the Sponsor or an Affiliate.
SECTION 7.3 Form and Dating.
The Capital Securities shall be evidenced by one or more certificates
substantially in the form of Exhibit A-1, and the Common Securities shall be
evidenced by one or more certificates substantially in the form of Exhibit A-2.
The Property Trustee's certificate of authentication shall be substantially in
the form set forth in Exhibit A-1. Certificates representing the Securities may
be printed, lithographed or engraved or may be produced in any other manner as
is reasonably acceptable to an Administrative Trustee, as evidenced by the
execution thereof. The Securities may have letters, "CUSIP" or other numbers,
notations or other marks of identification or designation and such legends or
endorsements required by law, stock exchange rule, agreements to which the Trust
is subject, if any, or usage, provided that, any such notation, legend or
endorsement is in a form acceptable to the Administrative Trustees, as evidenced
by their execution thereof. The Trust at the direction of the Sponsor, shall
furnish any such legend not contained in Exhibit A-1 to the Property Trustee in
writing. Each Capital Security shall be dated the date of its authentication.
The terms and provisions of the Securities set forth in Annex I and the forms of
Securities set forth in Exhibits A-1 and A-2 are part of the terms of this
Declaration and, to the extent applicable, the Property Trustee and the Sponsor,
by their execution and delivery of this Declaration, expressly agree to such
terms and provisions and to be bound thereby.
(a) Global Capital Security. Capital Securities offered and sold to
QIBs in reliance on Rule 144A, as provided in the Purchase Agreement, shall be
issued in the form of a single permanent global Capital Security in definitive,
fully registered form without distribution coupons with the appropriate global
legends and Restricted Securities Legend set forth in Exhibit A-1 hereto (the
"Global Capital Security"), which shall be deposited on behalf of the purchasers
of the Capital Securities represented thereby with the Property Trustee, at its
Wilmington, Delaware office, as custodian for the Clearing Agency, and
registered in the name of the Clearing Agency or a nominee of the Clearing
Agency, duly executed by the Trust and authenticated by the Property Trustee as
hereinafter provided. The number of Capital Securities represented by the Global
Capital Security may from time to time be increased or decreased by adjustments
made on the records of the Property Trustee and the Clearing Agency or its
nominee as hereinafter provided.
(b) Book-Entry Provisions. This Section 7.3(b) shall apply only to the
Global Capital Security and such other Capital Securities in global form as may
be authorized by the Trust to be deposited with or on behalf of the Clearing
Agency.
An Administrative Trustee shall execute and the Property Trustee shall,
in accordance with this Section 7.3, authenticate and make available for
delivery initially a single Global Capital Security that (i) shall be registered
in the name of Cede & Co., the nominee of the Clearing Agency, or other nominee
of such Clearing Agency and (ii) shall be delivered by the Property Trustee to
such Clearing Agency or pursuant to such Clearing Agency's written instructions
or, if no such written instructions are received by the Property Trustee, held
by the Property Trustee as custodian for the Clearing Agency.
Members of, or participants in, the Clearing Agency ("Participants")
shall have no rights under this Declaration with respect to the Global Capital
Security held on their behalf by the Clearing Agency or by the Property Trustee
as the custodian of the Clearing Agency or under such Global Capital Security,
and the Clearing Agency may be treated by the Trust, the Property Trustee and
any agent of the Trust or the Property Trustee as the absolute owner of such
Global Capital Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Trust, the Property Trustee or any
agent of the Trust or the Property Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Clearing Agency or
impair, as between the Clearing Agency and its Participants, the operation of
customary practices of such Clearing Agency governing the exercise of the rights
of a holder of a beneficial interest in the Global Capital Security.
(c) Definitive Capital Securities. Except as provided in Section 7.9 or
9.2(f)(i), owners of beneficial interests in the Global Capital Security will
not be entitled to receive physical delivery of certificated Capital Securities
("Definitive Capital Securities"). Purchasers of Securities who are "accredited
investors" (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act) and who are not QIBs will receive Capital Securities in the form of
individual certificates in definitive, fully registered form without
distribution coupons and with the Restricted Securities Legend set forth in
Exhibit A-1 hereto ("Restricted Definitive Capital Securities"); provided,
however, that upon registration of transfer of such Restricted Definitive
Capital Securities to a QIB, such Restricted Definitive Capital Securities will,
unless the Global Capital Security has previously been exchanged, be exchanged
for an interest in the Global Capital Security pursuant to the provisions of
Section 9.2. Restricted Definitive Capital Securities will bear the Restricted
Securities Legend set forth on Exhibit A-1 unless removed in accordance with
this Section 7.3 or Section 9.2.
SECTION 7.4 Registrar, Paying Agent and Exchange Agent.
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The Trust shall maintain in Wilmington, Delaware (i) an office or
agency where Capital Securities may be presented for registration of transfer
("Registrar"), (ii) an office or agency where Capital Securities may be
presented for payment ("Paying Agent") and (iii) an office or agency where
Securities may be presented for exchange ("Exchange Agent"). The Registrar shall
keep a register of the Capital Securities and of their transfer. The Trust may
appoint the Registrar, the Paying Agent and the Exchange Agent and may appoint
one or more co-registrars, one or more additional Paying Agents and one or more
additional Exchange Agents in such other locations as it shall determine. The
term "Registrar" includes any additional registrar, the term "Paying Agent"
includes any additional paying agent and the term "Exchange Agent" includes any
additional Exchange Agent. The Trust may change any Paying Agent, Registrar,
co-registrar or Exchange Agent without prior notice to any Holder. The Paying
Agent, Registrar and Exchange Agent shall be permitted to resign as such upon 30
days' written notice to the Property Trustee, the Administrative Trustees and
the Sponsor. The Trust shall notify the Property Trustee of the name and address
of any Agent not a party to this Declaration. If the Trust fails to appoint or
maintain another entity as Registrar, Paying Agent or Exchange Agent, the
Property Trustee shall act as such. The Trust or any of its Affiliates may act
as Paying Agent, Registrar, or Exchange Agent. The Trust shall act as Paying
Agent, Registrar and Exchange Agent for the Common Securities.
The Trust initially appoints the Property Trustee as Registrar, Paying
Agent and Exchange Agent for the Capital Securities.
SECTION 7.5 Paying Agent to Hold Money in Trust.
-----------------------------------
The Trust shall require each Paying Agent other than the Property
Trustee to agree in writing that the Paying Agent will hold in trust for the
benefit of Holders or the Property Trustee all money held by the Paying Agent
for the payment of liquidation amounts or Distributions, and will notify the
Property Trustee if there are insufficient funds for such purpose. While any
such insufficiency continues, the Property Trustee may require a Paying Agent to
pay all money held by it to the Property Trustee. The Trust at any time may
require a Paying Agent to pay all money held by it to the Property Trustee and
to account for any money disbursed by it. Upon payment over to the Property
Trustee, the Paying Agent (if other than the Trust or an Affiliate of the Trust)
shall have no further liability for the money. If the Trust or the Sponsor or an
Affiliate of the Trust or the Sponsor acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of the Holders all money held
by it as Paying Agent.
SECTION 7.6 Replacement Securities.
If a Holder claims that a Security owned by it has been lost, destroyed
or wrongfully taken or if such Security is mutilated and is surrendered to the
Trust or in the case of the Capital Securities to the Property Trustee, an
Administrative Trustee shall execute and the Property Trustee shall authenticate
and make available for delivery a replacement Security if the Property Trustee's
requirements are met. An indemnity bond must be provided by the Holder which, in
the judgment of the Property Trustee, is sufficient to protect the Trustees, the
Sponsor, the Trust or any authenticating agent from any loss which any of them
may suffer if a Security is replaced. The Trust may charge such Holder for the
Trust's expenses in replacing a Security.
SECTION 7.7 Outstanding Capital Securities.
The Capital Securities outstanding at any time are all of the Capital
Securities authenticated by the Property Trustee except for those canceled by
it, those delivered to it for cancellation, and those described in this Section
as not outstanding.
If a Capital Security is replaced, paid or purchased pursuant to
Section 7.6 hereof, it ceases to be outstanding unless the Property Trustee
receives proof satisfactory to it that the replaced, paid or purchased Capital
Security is held by a bona fide purchaser.
If Capital Securities are considered paid in accordance with the terms
of this Declaration, they cease to be outstanding and Distributions on them
shall cease to accumulate.
A Capital Security does not cease to be outstanding because one of the
Trust, the Sponsor or an Affiliate of the Sponsor holds the Security.
SECTION 7.8 Capital Securities in Treasury.
In determining whether the Holders of the required amount of Securities
have concurred in any direction, waiver or consent, Capital Securities owned by
the Trust, the Sponsor or an Affiliate of the Sponsor, as the case may be, shall
be disregarded and deemed not to be outstanding, except that for the purposes of
determining whether the Property Trustee shall be fully protected in relying on
any such direction, waiver or consent, only Securities which the Property
Trustee actually knows are so owned shall be so disregarded.
SECTION 7.9 Temporary Securities.
(a) Until Definitive Capital Securities are ready for delivery, the
Trust may prepare and, in the case of the Capital Securities, the Property
Trustee shall authenticate temporary Securities. Temporary Securities shall be
substantially in the form of Definitive Capital Securities, but may have
variations that the Trust considers appropriate for temporary Securities.
Without unreasonable delay, the Trust shall prepare and, in the case of the
Capital Securities, the Property Trustee shall authenticate Definitive Capital
Securities in exchange for temporary Securities.
(b) The Global Capital Security deposited with the Clearing Agency or
with the Property Trustee as custodian for the Clearing Agency pursuant to
Section 7.3 shall be transferred to the beneficial owners thereof in the form of
Definitive Capital Securities only if such transfer complies with Section 9.2
and (i) the Clearing Agency notifies the Sponsor that it is unwilling or unable
to continue as Clearing Agency for such Global Capital Security or if at any
time such Clearing Agency ceases to be a "clearing agency" registered under the
Exchange Act, and, in each case, a clearing agency is not appointed by the
Sponsor within 90 days of receipt of such notice or of becoming aware of such
condition, (ii) a Default or an Event of Default has occurred and is continuing
or (iii) the Trust at its sole discretion elects to cause the issuance of
Definitive Capital Securities.
(c) Any Global Capital Security that is transferable to the beneficial
owners thereof in the form of Definitive Capital Securities pursuant to this
Section 7.9 shall be surrendered by the Clearing Agency to the Property Trustee
to be so transferred, in whole or from time to time in part, without charge, and
the Property Trustee shall authenticate and make available for delivery, upon
such transfer of each portion of such Global Capital Security, an equal
aggregate liquidation amount of Securities of authorized denominations in the
form of Definitive Capital Securities. Any portion of the Global Capital
Security transferred pursuant to this Section shall be registered in such names
as the Clearing Agency shall direct. Any Definitive Capital Security delivered
in exchange for an interest in the Restricted Global Capital Security shall,
except as otherwise provided by Sections 7.3 and 9.1, bear the Restricted
Securities Legend set forth in Exhibit A-l hereto.
(d) Subject to the provisions of Section 7.9(c), the Holder of the
Global Capital Security may grant proxies and otherwise authorize any Person,
including Participants and Persons that may hold interests through Participants,
to take any action which such Holder is entitled to take under this Declaration
or the Securities.
(e) In the event of the occurrence of any of the events specified in
Section 7.9(b), the Trust will promptly make available to the Property Trustee a
reasonable supply of certificated Capital Securities in fully registered form
without distribution coupons.
SECTION 7.10 Cancellation.
The Trust at any time may deliver Capital Securities to the Property
Trustee for cancellation. The Registrar, Paying Agent and Exchange Agent shall
forward to the Property Trustee any Capital Securities surrendered to them for
registration of transfer, redemption, exchange or payment. The Property Trustee
shall promptly cancel all Capital Securities, surrendered for registration of
transfer, redemption, exchange, payment, replacement or cancellation and shall
dispose of canceled Capital Securities in accordance with its customary
procedures unless the Trust otherwise directs. The Trust may not issue new
Capital Securities to replace Capital Securities that it has paid or that have
been delivered to the Property Trustee for cancellation or that any Holder has
exchanged.
SECTION 7.11 CUSIP Numbers.
The Trust in issuing the Capital Securities may use "CUSIP" numbers (if
then generally in use), and, if so, the Property Trustee shall use "CUSIP"
numbers in notices of redemption as a convenience to Holders of Capital
Securities; provided that, any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Capital
Securities or as contained in any notice of a redemption and that reliance may
be placed only on the other identification numbers printed on the Capital
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Sponsor will promptly notify the Property Trustee
of any change in the CUSIP numbers.
ARTICLE VIII
DISSOLUTION OF TRUST
SECTION 8.1 Dissolution of Trust.
(a) The Trust shall dissolve:
(i) upon the bankruptcy of the Sponsor;
(ii) upon the filing of a certificate of dissolution
or liquidation 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;
(iii) following the distribution of a Like Amount of
the Debentures to the Holders, provided that, the Property
Trustee has received written notice from the Sponsor directing
the Property Trustee to dissolve the Trust (which direction is
optional, and except as otherwise expressly provided below,
within the discretion of the Sponsor) and provided, further,
that such direction and such distribution is conditioned on
(a) the receipt by the Sponsor of any and all required
regulatory approvals, and (b) the Sponsor's receipt and
delivery to the Administrative Trustees of an opinion of
independent tax counsel experienced in such matters, which
opinion may rely on public or private rulings of the Internal
Revenue Service, to the effect that the Holders of the Capital
Securities will not recognize any gain or loss for United
States federal income tax purposes as a result of the
dissolution of the Trust and the distribution of Debentures;
(iv) upon the entry of a decree of judicial
dissolution of the Trust by a court of competent jurisdiction;
(v) when all of the Securities shall have been called
for redemption and the amounts necessary for redemption
thereof shall have been paid to the Holders in accordance with
the terms of the Securities;
(vi) upon the redemption or repayment of the
Debentures or at such time as no Debentures are outstanding;
or
(vii) the expiration of the term of the Trust
provided in Section 3.14.
(b) As soon as is practicable upon completion of winding up of the
Trust in accordance with Section 3808 of the Business Trust Act following the
occurrence of an event referred to in Section 8.1(a), the Administrative
Trustees shall terminate the Trust by filing a certificate of cancellation with
the Secretary of State of the State of Delaware in accordance with the Business
Trust Act.
(c) The provisions of Section 3.9 and Article X shall survive the
dissolution 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. To the fullest extent permitted by law, 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, Capital Securities may only be
transferred, in whole or in part, in accordance with the terms and conditions
set forth in this Declaration. To the fullest extent permitted by law, any
transfer or purported transfer of any Security not made in accordance with this
Declaration shall be null and void.
(c) For so long as the Securities remain outstanding, the Sponsor
agrees (i) not to transfer ownership of the Common Securities of the Trust,
provided that any permitted successor of the Sponsor under the Indenture may
succeed to the Sponsor's ownership of the Common Securities, (ii) not to cause,
as Sponsor of the Trust, or to permit, as Holder of the Common Securities, the
dissolution, winding-up or liquidation of the Trust, except as provided in this
Declaration and (iii) to use its best efforts to cause the Trust (a) to remain a
business trust, except in connection with the distribution of Debentures to the
Holders in liquidation of the Trust, the redemption of all of the Securities, or
certain mergers, conversions, consolidations or amalgamations, each as permitted
by other terms of this Declaration, and (b) to otherwise continue to be
classified as a grantor trust for United States federal income tax purposes.
(d) The Registrar shall provide for the registration of Capital
Securities and of the transfer of Capital Securities, which will be effected
without charge, but only upon payment (with such indemnity as the Registrar may
require) in respect of any tax or other governmental charges that may be imposed
in relation to it. Upon surrender for registration of transfer of any Capital
Securities, an Administrative Trustee shall cause one or more new Capital
Securities to be issued in the name of the designated transferee or transferees.
Every Capital Security surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the
Registrar duly executed by the Holder or such Holder's attorney duly authorized
in writing. Each Capital Security surrendered for registration of transfer shall
be delivered to the Registrar and canceled in accordance with Section 7.10. A
transferee of a Capital Security shall be entitled to the rights and subject to
the obligations of a Holder hereunder upon the receipt by such transferee of a
Capital Security. By acceptance of a Capital Security or any interest therein,
each transferee shall be deemed to have agreed to be bound by this Declaration.
SECTION 9.2 Transfer Procedures and Restrictions.
(a) General. Except as otherwise provided in Section 9.2(b), if Capital
Securities are issued upon the transfer, exchange or replacement of Capital
Securities bearing the Restricted Securities Legend set forth in Exhibit A-1
hereto, or if a request is made to remove such Restricted Securities Legend on
Capital Securities, the Capital Securities so issued shall bear the Restricted
Securities Legend, or the Restricted Securities Legend shall not be removed, as
the case may be, unless there is delivered to the Trust and the Property Trustee
such satisfactory evidence, which shall include an Opinion of Counsel, as may be
reasonably required by the Trust and the Property Trustee, that neither the
Restricted Securities Legend nor the restrictions on transfer set forth therein
are required to ensure that transfers thereof are made pursuant to an exemption
from the registration requirements of the Securities Act or, with respect to
Restricted Capital Securities, that such Securities are not "restricted" within
the meaning of Rule 144. Upon provision of such satisfactory evidence, the
Property Trustee, at the written direction of an Administrative Trustee on
behalf of the Trust, shall authenticate and deliver Capital Securities that do
not bear the legend.
(b) Transfers After Effectiveness of a Registration Statement. After
the effectiveness of a Registration Statement with respect to any Capital
Securities, all requirements pertaining to legends on such Capital Securities
will cease to apply (other than the legend requiring that transfers of Capital
Securities be made in blocks having an aggregate liquidation amount of not less
than $100,000) (100 Capital Securities) and multiples of $1,000 in excess
thereof, and beneficial interests in the Global Capital Security without legends
will be available to transferees of such Capital Securities, upon exchange of
the transferring Holder's Restricted Definitive Capital Security or directions
to transfer such Holder's beneficial interest in the Global Capital Security, as
the case may be. No such transfer or exchange of a Restricted Definitive Capital
Security or of an interest in the Global Capital Security shall be effective
unless the transferor delivers to the Property Trustee a certificate in a form
substantially similar to that attached hereto as the form of "Assignment" in
Exhibit A-1. Except as otherwise provided in Section 9.2(m), after the
effectiveness of a Registration Statement, an Administrative Trustee on behalf
of the Trust shall issue and the Property Trustee, upon a written order of the
Trust signed by one Administrative Trustee, shall authenticate a Global Capital
Security without the Restricted Securities Legend (the "Unrestricted Global
Capital Security") to deposit with the Clearing Agency to evidence transfers of
beneficial interests from the (i) Global Capital Security and (ii) Restricted
Definitive Capital Securities.
(c) Transfer and Exchange of Definitive Capital Securities. When
Definitive Capital Securities are presented to the Registrar or co-registrar:
(x) to register the transfer of such Definitive Capital
Securities; or
(y) to exchange such Definitive Capital Securities which
became mutilated, destroyed, defaced, stolen or lost, for an equal
number of Definitive Capital Securities, the Registrar or co-registrar
shall register the transfer or make the exchange as requested if its
reasonable requirements for such transaction are met;
provided, however, that the Definitive Capital Securities surrendered
for registration of transfer or exchange:
(i) shall be duly endorsed or accompanied by a
written instrument of transfer in form reasonably satisfactory
to the Trust and the Registrar or co-registrar, duly executed
by the Holder thereof or his attorney duly authorized in
writing; and
(ii) in the case of Definitive Capital Securities
that are Restricted Definitive Capital Securities:
(A) if such Restricted Capital Securities are being
delivered to the Registrar by a Holder for
registration in the name of such Holder, without
transfer, certification(s) from such Holder to that
effect; or
(B) if such Restricted Capital Securities are being
transferred: (i) certification(s) in a form
substantially similar to that attached hereto as the
form of "Assignment" in Exhibit A-1, and (ii) if the
Trust or Registrar so requests, evidence reasonably
satisfactory to them as to the compliance with the
restrictions set forth in the Restricted Securities
Legend.
(d) Restrictions on Transfer of a Definitive Capital Security for a
Beneficial Interest in the Global Capital Security. A Definitive Capital
Security may not be exchanged for a beneficial interest in the Global Capital
Security except upon satisfaction of the requirements set forth below. Upon
receipt by the Property Trustee of a Definitive Capital Security, duly endorsed
or accompanied by appropriate instruments of transfer, in form satisfactory to
the Property Trustee, together with:
(i) if such Definitive Capital Security is a
Restricted Capital Security, certification(s) in a form
substantially similar to that attached hereto as the form of
"Assignment" in Exhibit A-1; and
(ii) whether or not such Definitive Capital Security
is a Restricted Capital Security, written instructions
directing the Property Trustee to make, or to direct the
Clearing Agency to make, an adjustment on its books and
records with respect to the Global Capital Security to reflect
an increase in the number of the Capital Securities
represented by such Global Capital Security,
then the Property Trustee shall cancel such Definitive Capital Security and
cause, or direct the Clearing Agency to cause, the aggregate number of Capital
Securities represented by the Global Capital Security to be increased
accordingly. If the Global Capital Security is not then outstanding, an
Administrative Trustee on behalf of the Trust shall issue and the Property
Trustee shall authenticate, upon written order of any Administrative Trustee, a
new Global Capital Security representing an appropriate number of Capital
Securities.
(e) Transfer and Exchange of the Global Capital Security. Subject to
Section 9.2(f), the transfer and exchange of Global Capital Security or
beneficial interests therein shall be effected through the Clearing Agency in
accordance with this Declaration (including applicable restrictions on transfer
set forth herein, if any) and the procedures of the Clearing Agency therefor.
(f) Transfer of a Beneficial Interest in the Global Capital
Security for a Definitive Capital Security.
(i) Any Person having a beneficial interest in the
Global Capital Security may upon request, but only upon 20
days' prior notice to the Property Trustee, and if accompanied
by the information specified below, exchange such beneficial
interest for a Definitive Capital Security representing the
same number of Capital Securities. Upon receipt by the
Property Trustee from the Clearing Agency or its nominee on
behalf of any Person having a beneficial interest in the
Global Capital Security of written instructions or such other
form of instructions as is customary for the Clearing Agency
or the Person designated by the Clearing Agency as having such
a beneficial interest in a Restricted Capital Security and
certification(s) from the transferor in a form substantially
similar to that attached hereto as the form of "Assignment" in
Exhibit A-1, which may be submitted by facsimile, then the
Property Trustee will cause the aggregate number of Capital
Securities represented by the Global Capital Security to be
reduced on its books and records and, following such
reduction, the Trust will execute and the Property Trustee
will authenticate and make available for delivery to the
transferee a Definitive Capital Security.
(ii) Definitive Capital Securities issued in exchange
for a beneficial interest in the Global Capital Security
pursuant to this Section 9.2(f) shall be registered in such
names and in such authorized denominations as the Clearing
Agency, pursuant to instructions from its Clearing Agency
Participants or indirect participants or otherwise, shall
instruct the Property Trustee in writing. The Property Trustee
shall deliver such Capital Securities to the Persons in whose
names such Capital Securities are so registered in accordance
with such instructions of the Clearing Agency.
(g) Restrictions on Transfer and Exchange of the Global Capital
Security. Notwithstanding any other provisions of this Declaration (other than
the provisions set forth in subsection (h) of this Section 9.2), the Global
Capital Security may not be transferred as a whole except by the Clearing Agency
to a nominee of the Clearing Agency or another nominee of the Clearing Agency or
by the Clearing Agency or any such nominee to a successor Clearing Agency or a
nominee of such successor Clearing Agency.
(h) Authentication of Definitive Capital Securities.
If at any time:
(i) a Default or an Event of Default has
occurred and is continuing,
(ii) the Trust, in its sole discretion, notifies the
Property Trustee in writing that it elects to cause the
issuance of Definitive Capital Securities under this
Declaration, or
(iii) the Clearing Agency notifies the Sponsor that
it is unwilling or unable to continue as Clearing Agency for
such Global Capital Security or if at any time such Clearing
Agency ceases to be a "clearing agency" registered under the
Exchange Act, and, in each case, a clearing agency is not
appointed by the Sponsor within 90 days of receipt of such
notice or of becoming aware of such condition,
then an Administrative Trustee on behalf of the Trust will execute, and the
Property Trustee, upon receipt of a written order of the Trust signed by one
Administrative Trustee requesting the authentication and delivery of Definitive
Capital Securities to the Persons designated by the Trust, will authenticate and
make available for delivery Definitive Capital Securities, equal in number to
the number of Capital Securities represented by the Global Capital Security, in
exchange for such Global Capital Security.
(i) Legend.
(i) Except as permitted by the following paragraph
(ii), each Capital Security Certificate evidencing the Global
Capital Security and each Definitive Capital Security (and all
Capital Securities issued in exchange therefor or substitution
thereof) shall bear a legend (the "Restricted Securities
Legend") in substantially the following form:
THIS CAPITAL SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES
LAW. NEITHER THIS CAPITAL SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.
THE HOLDER OF THIS CAPITAL SECURITY BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS CAPITAL
SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION
TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUANCE DATE HEREOF AND THE LAST DATE ON WHICH
PEOPLES BANCORP INC. (THE "CORPORATION") OR ANY "AFFILIATE" OF
THE CORPORATION WAS THE OWNER OF THIS CAPITAL SECURITY (OR ANY
PREDECESSOR OF THIS CAPITAL SECURITY) ONLY (A) TO THE
CORPORATION, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) SO
LONG AS THIS CAPITAL SECURITY IS ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" (AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) TO AN INSTITUTIONAL "ACCREDITED
INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3)
OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING
THIS CAPITAL SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT
OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT OR (E) PURSUANT TO ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE
SECURITIES ACT, SUBJECT TO THE RIGHT OF PEBO CAPITAL TRUST I
(THE "TRUST") AND THE CORPORATION PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER (i) PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii)
PURSUANT TO CLAUSE (D) TO REQUIRE THAT THE TRANSFEROR DELIVER
TO THE TRUST A LETTER FROM THE TRANSFEREE SUBSTANTIALLY IN THE
FORM OF ANNEX A TO THE OFFERING MEMORANDUM DATED APRIL 15,
1999. SUCH HOLDER FURTHER AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS CAPITAL SECURITY IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
THE HOLDER OF THIS CAPITAL SECURITY BY ITS ACCEPTANCE
HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN
EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN
OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION
4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, (THE
"CODE") (EACH A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS
INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN
THE ENTITY AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN
MAY ACQUIRE OR HOLD THE CAPITAL SECURITIES OR ANY INTEREST
THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38,
90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE
AND HOLDING OF CAPITAL SECURITIES IS NOT PROHIBITED BY SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH
PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THE CAPITAL
SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER
(i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF
SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE
CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN
TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT
RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE
STATUTORY OR ADMINISTRATIVE EXEMPTION.
In all circumstances, each Capital Security Certificate shall bear the following
legend:
THE CAPITAL SECURITIES WILL BE ISSUED AND MAY BE
TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION AMOUNT OF NOT
LESS THAN $100,000 (100 CAPITAL SECURITIES) AND MULTIPLES OF
$1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF CAPITAL
SECURITIES IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN
$100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT
TO BE THE HOLDER OF SUCH CAPITAL SECURITIES FOR ANY PURPOSE,
INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON
SUCH CAPITAL SECURITIES, AND SUCH PURPORTED TRANSFEREE SHALL
BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH CAPITAL
SECURITIES.
(ii) Upon any sale or transfer of a Restricted
Capital Security (including any Restricted Capital Security
represented by the Global Capital Security) pursuant to an
effective registration statement under the Securities Act or
pursuant to Rule 144:
(A) in the case of any Restricted Capital Security
that is a Definitive Capital Security, the Registrar
shall permit the Holder thereof to exchange such
Restricted Capital Security for a Definitive Capital
Security that does not bear the Restricted Securities
Legend and rescind any restriction on the transfer of
such Restricted Capital Security; and
(B) in the case of any Restricted Capital Security
that is represented by the Global Capital Security,
the Registrar shall permit the Holder of such Global
Capital Security to exchange such Global Capital
Security for another Global Capital Security that
does not bear the Restricted Securities Legend.
(j) Cancellation or Adjustment of Global Capital Security. At such time
as all beneficial interests in the Global Capital Security have either been
exchanged for Definitive Capital Securities to the extent permitted by this
Declaration or redeemed, repurchased or canceled in accordance with the terms of
this Declaration, such Global Capital Security shall be returned to the Clearing
Agency for cancellation or retained and canceled by the Property Trustee. At any
time prior to such cancellation, if any beneficial interest in the Global
Capital Security is exchanged for Definitive Capital Securities, Capital
Securities represented by such Global Capital Security shall be reduced and an
adjustment shall be made on the books and records of the Property Trustee and
the Clearing Agency or its nominee to reflect such reduction.
(k) Obligations with Respect to Transfers and Exchanges of
Capital Securities.
(i) To permit registrations of transfers and
exchanges, the Trust shall execute and the Property Trustee
shall authenticate Definitive Capital Securities and the
Global Capital Security at the Registrar's or co-registrar's
request in accordance with the terms of this Declaration.
(ii) Registrations of transfers or exchanges will be
effected without charge, but only upon payment (with such
indemnity as the Trust or the Sponsor may require) in respect
of any tax or other governmental charge that may be imposed in
relation to it.
(iii) The Registrar or co-registrar shall not be
required to register the transfer of or exchange of (a)
Capital Securities during a period beginning at the opening of
business 15 days before the day of mailing of a notice of
redemption or any notice of selection of Capital Securities
for redemption and ending at the close of business on the day
of such mailing or (b) any Capital Security so selected for
redemption in whole or in part, except the unredeemed portion
of any Capital Security being redeemed in part.
(iv) Prior to the due presentation for registration
of transfer of any Capital Security, the Trust, the Property
Trustee, the Paying Agent, the Registrar or any co-registrar
may deem and treat the Person in whose name a Capital Security
is registered as the absolute owner of such Capital Security
for the purpose of receiving Distributions on such Capital
Security and for all other purposes whatsoever, and none of
the Trust, the Property Trustee, the Paying Agent, the
Registrar or any co-registrar shall be affected by notice to
the contrary.
(v) All Capital Securities issued upon any
registration of transfer or exchange pursuant to the terms of
this Declaration shall evidence the same security and shall be
entitled to the same benefits under this Declaration as the
Capital Securities surrendered upon such registration of
transfer or exchange.
(l) No Obligation of the Property Trustee.
(i) The Property Trustee shall have no responsibility
or obligation to any Capital Security Beneficial Owner, a
Participant in the Clearing Agency or other Person with
respect to the accuracy of the records of the Clearing Agency
or its nominee or of any Participant thereof, with respect to
any ownership interest in the Capital Securities or with
respect to the delivery to any Participant, beneficial owner
or other Person (other than the Clearing Agency) of any notice
(including any notice of redemption) or the payment of any
amount, under or with respect to such Capital Securities. All
notices and communications to be given to the Holders and all
payments to be made to Holders under the Capital Securities
shall be given or made only to or upon the order of the
registered Holders (which shall be the Clearing Agency or its
nominee in the case of the Global Capital Security). The
rights of Capital Security Beneficial Owners shall be
exercised only through the Clearing Agency subject to the
applicable rules and procedures of the Clearing Agency. The
Property Trustee may conclusively rely and shall be fully
protected in relying upon information furnished by the
Clearing Agency or any agent thereof with respect to its
Participants and any Capital Security Beneficial Owners.
(ii) The Property Trustee and the Registrar shall
have no obligation or duty to monitor, determine or inquire as
to compliance with any restrictions on transfer imposed under
this Declaration or under applicable law with respect to any
transfer of any interest in any Capital Security (including
any transfers between or among Clearing Agency Participants or
Capital Security Beneficial Owners in the Global Capital
Security) other than to require delivery of such certificates
and other documentation or evidence as are expressly required
by, and to do so if and when expressly required by, the terms
of this Declaration, and to examine the same to determine
substantial compliance as to form with the express
requirements hereof.
(m) Exchange of Series A Capital Securities for Series B Capital
Securities. The Series A Capital Securities may be exchanged for Series B
Capital Securities pursuant to the terms of the Exchange Offer. The Property
Trustee shall make the exchange as follows:
(1) The Sponsor shall present the Property Trustee with an
Officers' Certificate certifying the following:
(A) upon issuance of the Series B Capital Securities, the
transactions contemplated by the Exchange Offer have
been consummated;
(B) the number of Series A Capital Securities properly
tendered in the Exchange Offer that are represented
by a Global Capital Security and the number of Series
A Capital Securities properly tendered in the
Exchange Offer that are represented by Definitive
Capital Securities, the liquidation amount of Capital
Securities properly tendered in the Exchange Offer by
each such Holder and the name and address to which
Definitive Capital Securities for Series B Capital
Securities shall be registered and sent for each such
Holder.
(2) The Property Trustee, upon receipt of (i) such Officers'
Certificate, (ii) an Opinion of Counsel (x) to the effect that the Series B
Capital Securities have been registered under Section 5 of the Securities Act
and the Indenture has been qualified under the Trust Indenture Act and (y) with
respect to the matters set forth in Section 3(p) of the Registration Rights
Agreement, and (iii) any Definitive Capital Securities tendered in the Exchange
Offer, shall authenticate (A) a Global Capital Security representing Series B
Capital Securities in aggregate liquidation amount equal to the aggregate
liquidation amount of Series A Capital Securities represented by a Global
Capital Security indicated in such Officers' Certificate as having been properly
tendered and (B) Definitive Capital Securities representing Series B Capital
Securities registered in the names of the Persons, and in the liquidation
amounts, indicated in such Officers' Certificate.
(3) If upon consummation of the Exchange Offer, less than all
the outstanding Series A Capital Securities shall have been properly tendered
and not withdrawn, the Property Trustee shall make an endorsement on the Global
Capital Security representing the Series A Capital Securities indicating the
reduction in the number and aggregate liquidation amount represented thereby as
a result of the Exchange Offer.
(4) The Trust shall deliver such Definitive Capital Securities
representing Series B Capital Securities to the Holders thereof as indicated in
such Officers' Certificate.
(n) Minimum Transfers. Capital Securities may only be transferred in
minimum blocks of $100,000 aggregate liquidation amount (100 Capital Securities)
and multiples of $1,000 in excess thereof. Any attempted transfer of Capital
Securities in a block having an aggregate liquidation amount of less than
$100,000 shall be deemed to be void and of no legal effect whatsoever. Any such
purported transferee shall be deemed not to be a Holder of such Capital
Securities for any purpose, including, but not limited to, the receipt of
Distributions on such Capital Securities, and such purported transferee shall be
deemed to have no interest whatsoever in such Capital Securities.
SECTION 9.3 Deemed Security Holders.
The Trustees may treat the Person in whose name any Security shall be
registered on the books and records of the Trust as the sole owner and Holder of
such Security 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 Security on the part of any Person, whether
or not the Trust shall have actual or other notice thereof.
SECTION 9.4 Book-Entry Interests.
The Global Capital Security shall initially be registered on the books
and records of the Trust in the name of Cede & Co., the nominee of the Clearing
Agency, and no Capital Security Beneficial Owner will receive physical delivery
of a definitive Capital Security certificate (a "Capital Security Certificate")
representing such Capital Security Beneficial Owner's interests in such Global
Capital Security, except as provided in Section 9.2 and Section 7.9. Unless and
until Definitive Capital Securities have been issued to the Capital Security
Beneficial Owners pursuant to Section 9.2 or Section 7.9:
(a) the provisions of this Section 9.4 shall be in full force
and effect;
(b) the Trust and the Trustees shall be entitled to deal with the
Clearing Agency for all purposes of this Declaration (including the payment of
Distributions on the Global Capital Security and receiving approvals, votes or
consents hereunder) as the sole Holder of the Global Capital Security and shall
have no obligation to the Capital Security Beneficial Owners;
(c) to the extent that the provisions of this Section 9.4 conflict with
any other provisions of this Declaration, the provisions of this Section 9.4
shall control; and
(d) the rights of the Capital Security Beneficial Owners shall be
exercised only through the Clearing Agency and shall be limited to those
established by law and agreements between such Capital Security Beneficial
Owners and the Clearing Agency and/or the Clearing Agency Participants, and the
Clearing Agency shall receive and transmit payments of Distributions on the
Global Capital Security to such Clearing Agency Participants; provided, however,
that solely for the purposes of determining whether the Holders of the requisite
amount of Capital Securities have voted on any matter provided for in this
Declaration, the Trustees, with respect to the Global Capital Security, 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 Capital Security Beneficial Owners' votes or assigning the
right to vote on any matter to any other Persons either in whole or in part; and
the Clearing Agency will also make book-entry transfers among the Clearing
Agency Participants.
SECTION 9.5 Notices to Clearing Agency.
Whenever a notice or other communication to the Capital Security
Holders is required to be given by a Trustee under this Declaration, such
Trustee shall give all such notices and communications specified herein to be
given to the Holder of the Global Capital Security to the Clearing Agency and
shall have no notice obligations to the Capital Security Beneficial Owners.
SECTION 9.6 Appointment of Successor Clearing Agency.
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If any Clearing Agency elects to discontinue its services as securities
depositary with respect to the Capital Securities, the Administrative Trustees
may, in their sole discretion, appoint a successor Clearing Agency with respect
to such Capital Securities.
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 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, which shall be made solely from assets of the Trust;
and
(ii) required to pay to the Trust or to any Holder
any deficit upon dissolution of the Trust or otherwise.
(b) The Sponsor shall be liable for all of the debts and obligations of
the Trust (other than in respect of the Securities) to the extent not satisfied
out of the Trust's assets.
(c) Pursuant to ss.3803(a) of the Business Trust Act, the Holders 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 or the Delaware Trustee, negligence) or willful
misconduct with respect to such acts or omissions.
(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 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 Person 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 the Trust) by reason of the fact that he is or was a
Company Indemnified Person, against expenses (including attorneys' fees and
expenses), 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 and expenses) 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) To the extent that a Company Indemnified Person shall be
successful on the merits or otherwise (including dismissal of an action without
prejudice or the settlement of an action without admission of liability) in
defense of any action, suit or proceeding referred to in paragraphs (i) and (ii)
of this Section 10.4(a), or in defense of any claim, issue or matter therein, he
shall be indemnified, to the full extent permitted by law, against expenses
(including attorneys' fees) actually and reasonably incurred by him in
connection therewith.
(iv) 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.
(v) Expenses (including attorneys' fees and expenses) actually
and reasonably 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) by the Common Security Holder of the Trust, that,
based upon the facts known to the Administrative Trustees, counsel or the Common
Security Holder at the time such determination is made, such Company Indemnified
Person acted in bad faith or in a manner that the Common Security Holder 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 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 a
Company Indemnified Person deliberately breached his duty to the Trust or its
Common or Capital Security Holders.
(vi) 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 Capital
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.
(vii) 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 Debenture
Issuer would have the power to indemnify him against such liability under the
provisions of this Section 10.4(a).
(viii) 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, merger or conversion, 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.
(ix) 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) The Sponsor agrees to indemnify the (i) Property Trustee, (ii) the
Delaware Trustee, (iii) any Affiliate of the Property Trustee or the Delaware
Trustee, and (iv) any officers, directors, shareholders, members, partners,
employees, representatives, custodians, nominees or agents of the Property
Trustee or the Delaware Trustee (each of the Persons in (i) through (iv),
including the Property Trustee and the Delaware Trustee in their respective
individual capacities, being referred to as a "Fiduciary Indemnified Person")
for, and to hold each Fiduciary Indemnified Person harmless against, any and all
loss, liability, damage, claim or expense including taxes (other than taxes
based on the income of such Fiduciary Indemnified Person) incurred without
negligence or bad faith on the part of such Fiduciary Indemnified Person,
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 against or investigating any
claim or liability in connection with the exercise or performance of any of the
powers or duties of such Fiduciary Indemnified Person hereunder. The obligation
to indemnify as set forth in this Section 10.4(b) shall survive the resignation
or removal of the Property Trustee or the Delaware Trustee and the satisfaction
and discharge of this Declaration.
(c) The Sponsor agrees to pay the Property Trustee and the Delaware
Trustee, from time to time, such compensation for all services rendered by the
Property Trustee and the Delaware Trustee hereunder as may be mutually agreed
upon in writing by the Sponsor and the Property Trustee or the Delaware Trustee,
as the case may be, and, except as otherwise expressly provided herein, to
reimburse the Property Trustee and the Delaware Trustee upon its or their
request for all reasonable expenses (including legal fees and expenses),
disbursements and advances incurred or made by the Property Trustee or the
Delaware Trustee, as the case may be, in accordance with the provisions of this
Declaration, except any such expense, disbursement or advance as may be
attributable to its or their negligence or bad faith.
SECTION 10.5 Outside Businesses.
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 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 or its Affiliates.
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 of account, records and
supporting documents, which shall reflect in reasonable detail each transaction
of the Trust. The books of account shall be maintained on the accrual method of
accounting, in accordance with generally accepted accounting principles,
consistently applied. The Trust shall use the accrual method of accounting for
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 shall cause to be duly prepared and
delivered to each of the Holders any annual United States federal income tax
information statement required by the Code, 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 shall endeavor to
deliver all such information statements within 30 days after the end of each
Fiscal Year of the Trust.
(c) The Administrative Trustees 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.
SECTION 11.3 Banking.
The Trust may maintain one or more bank accounts in the name and for
the sole benefit of the Trust; provided, however, that all payments of funds in
respect of the Debentures held by the Property Trustee 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 cause
to be filed 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 claim of excess 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 (including Section
7 of Annex I hereto) or by any applicable terms of the Securities, this
Declaration may only be amended by a written instrument approved and executed
by:
(i) the Sponsor and 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:
(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 that all conditions precedent to the execution
and delivery of such amendment have been satisfied;
provided, however, that the Property Trustee shall not be required to sign
any such amendment; 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) At such time after the Trust has issued any Securities that remain
outstanding, any amendment that would adversely affect the rights, privileges or
preferences of any Holder (other than an amendment pursuant to (g)(ii) below)
may be effected only with such additional requirements as may be set forth in
the terms of such Securities;
(d) Section 10.1(c) and this Section 12.1 shall not be
amended without the consent of all of the Holders;
(e) Article IV shall not be amended without the consent of the Holders
of a Majority in Liquidation Amount of the Common Securities;
(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
without the consent of the Holders to:
(i) cure any ambiguity, correct or supplement any
provision in this Declaration that may be inconsistent with
any other provision of this Declaration or to make any other
provisions with respect to matters or questions arising under
this Declaration which shall not be inconsistent with the
other provisions of this Declaration; and
(ii) to modify, eliminate or add to any provisions of
this Declaration to such extent as shall be necessary to
ensure that the Trust will be classified for United States
federal income tax purposes as a grantor trust at all times
that any Securities are outstanding or to ensure that the
Trust will not be required to register as an Investment
Company under the Investment Company Act;
provided, however, that in the case of clause (i) above, such action shall not
adversely affect in any material respect the interests of the Holders, and any
such amendments of this Declaration shall become effective when notice thereof
is given to the Holders.
SECTION 12.2 Meetings of the Holders; 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 Capital
Securities are listed or admitted for trading. The Administrative Trustees shall
call a meeting of the Holders of such class if directed to do so by the Holders
of at least 10% in Liquidation Amount of such class of Securities. Such
direction shall be given by delivering to the Administrative Trustees one or
more notices in writing stating that the signing Holders wish to call a meeting
and indicating the general or specific purpose for which the meeting is to be
called. Any Holders calling a meeting shall specify in writing the Capital
Security Certificates held by the Holders 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:
(i) notice of any such meeting shall be given to all
the Holders having a right to vote thereat at least seven days
and not more than 60 days before the date of such meeting.
Whenever a vote, consent or approval of the Holders is
permitted or required under this Declaration or the rules of
any stock exchange on which the Capital Securities are listed
or admitted for trading, such vote, consent or approval may be
given at a meeting of the Holders; any action that may be
taken at a meeting of the Holders may be taken without a
meeting if a consent in writing setting forth the action so
taken is signed by the Holders 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 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 entitled to vote who
have not consented in writing; and 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 may authorize any Person to act for
it by proxy on all matters in which a Holder 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 eleven months from the date thereof
unless otherwise provided in the proxy; every proxy shall be
revocable at the pleasure of the Holder executing it; and,
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 were
stockholders of a Delaware corporation;
(iii) each meeting of the Holders 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 Capital
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, including notice of the time, place or purpose of any
meeting at which any matter is to be voted on by any Holders,
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 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 Delaware banking corporation, duly
organized, validly existing and in good standing under the laws of the State of
Delaware, with trust power and authority to execute and deliver, and to carry
out and perform its obligations under the terms of, this Declaration;
(b) the execution, delivery and performance by the Property Trustee of
this Declaration has been duly authorized by all necessary corporate action on
the part of the Property Trustee; and this Declaration has been duly executed
and delivered by the Property Trustee and under Delaware law (excluding any
securities laws) 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);
(c) the execution, delivery and performance of this Declaration by the
Property Trustee does not conflict with or constitute a breach of the charter or
by-laws of the Property Trustee; and
(d) no consent, approval or authorization of, or registration with or
notice to, any federal or Delaware State banking authority governing the trust
powers of the Property Trustee is required for the execution, delivery or
performance by the Property Trustee of this 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, duly
organized, validly existing and in good standing under the laws of the State of
Delaware, with trust power and authority to execute and deliver, and to carry
out and perform its obligations under the terms of, this Declaration;
(b) the execution, delivery and performance by the Delaware Trustee of
this Declaration has been duly authorized by all necessary corporate action on
the part of the Delaware Trustee; and this Declaration has been duly executed
and delivered by the Delaware Trustee and under Delaware law (excluding any
securities laws) 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) the execution, delivery and performance of this Declaration by the
Delaware Trustee does not conflict with or constitute a breach of the charter or
by-laws of the Delaware Trustee; and
(d) no consent, approval or authorization of, or registration with or
notice to, any federal or Delaware banking authority governing the trust powers
of the Delaware Trustee is required for the execution, delivery or performance
by the Delaware Trustee of this Declaration; and
(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, and is a Person that satisfies for
the Trust Section 3807(a) of the Business Trust Act.
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, overnight courier service or confirmed telecopy, as
follows:
(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 Property Trustee, the Delaware Trustee and the
Holders):
PEBO Capital Trust I
c/o Peoples Bancorp Inc.
138 Putnam Street
P.O. Box 738
Marietta, Ohio 45750-0738
Attention: Charles R. Hunsaker
Telecopier: (740) 376-7277
Telephone: (740) 374-6109
(b) if given to the Delaware Trustee, at the mailing address set forth
below (or such other address as the Delaware Trustee may give notice of to the
Property Trustee and the Holders):
Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890-0001
Attention: Corporate Trust Administration
Telecopier: (302) 651-1000
Telephone: (302) 651-8882
(c) if given to the Property Trustee, at the Property Trustee's mailing
address set forth below (or such other address as the Property Trustee may give
notice of to the Delaware Trustee and the Holders):
Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890-0001
Attention: Corporate Trust Administration
Telecopier: (302) 651-1000
Telephone: (302) 651-8882
(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):
Peoples Bancorp Inc.
138 Putnam Street
P.O. Box 738
Marietta, Ohio 45750-0738
Attention: Charles R. Hunsaker
Telecopier: (740) 376-7277
Telephone: (740) 374-6109
(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 construed in accordance with the laws of the State of Delaware
without regard to conflict of laws principles thereof.
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.
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 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 or more 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.
<PAGE>
IN WITNESS WHEREOF, the undersigned has caused these presents to be
executed as of the day and year first above written.
JOHN W. CONLON,
as Administrative Trustee
CHARLES R. HUNSAKER,
as Administrative Trustee
MARK F. BRADLEY,
as Administrative Trustee
WILMINGTON TRUST COMPANY,
as Delaware Trustee and Property Trustee
By:
Name:
Title:
PEOPLES BANCORP INC., an Ohio corporation,
as Sponsor and Debenture Issuer
By:
Robert E. Evans, President and
Chief Executive Officer
ANNEX I
TERMS OF SERIES A/SERIES B
8.62% CAPITAL SECURITIES
8.62% COMMON SECURITIES
Pursuant to Section 7.1 of the Amended and Restated Declaration of
Trust, dated as of April 20, 1999 (as amended from time to time, the
"Declaration"), the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Securities are set out below (each
capitalized term used but not defined herein has the meaning set forth in the
Declaration or, if not defined in such Declaration, as defined in the Offering
Memorandum referred to below in Section 2(c) of this Annex I):
1. Designation and Number.
(a) Capital Securities. 30,000 Series A Capital Securities of
the Trust and 30,000 Series B Capital Securities of the Trust, both Series
together, with an aggregate liquidation amount with respect to the assets of the
Trust of thirty million dollars ($30,000,000) and each with a liquidation amount
with respect to the assets of the Trust of $1,000 per security are hereby
designated for purposes of identification only as "Series A 8.62% Capital
Securities" and "Series B 8.62% Capital Securities," respectively (collectively,
the "Capital Securities"). The certificates evidencing the Capital Securities
shall be substantially in the form of Exhibit A-1 to the Declaration, with such
changes and additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice or to conform to the rules of any exchange or
quotation system on or in which the Capital Securities are listed, traded or
quoted.
(b) Common Securities. 928 Common Securities of the Trust with
an aggregate liquidation amount with respect to the assets of the Trust of nine
hundred twenty-eight thousand dollars ($928,000) and with a liquidation amount
with respect to the assets of the Trust of $1,000 per security, are hereby
designated for the purposes of identification only as "8.62% Common Securities"
(the "Common Securities"). The certificates evidencing the Common Securities
shall be substantially in the form of Exhibit A-2 to the Declaration, with such
changes and additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice.
2. Distributions.
(a) Distributions on each Security will be payable at a fixed
rate per annum of 8.62% (the "Coupon Rate") of the liquidation amount of $1,000
per Security (the "Liquidation Amount"), such rate being the rate of interest
payable on the Debentures to be held by the Property Trustee. Distributions in
arrears for more than one semi-annual period will bear additional Distributions
thereon compounded semi-annually at the Coupon Rate (to the extent permitted by
applicable law). Pursuant to the Registration Rights Agreement, in certain
limited circumstances the Debenture Issuer will be required to pay Liquidated
Damages (as defined in the Registration Rights Agreement) with respect to the
Debentures. The term "Distributions," as used herein, includes distributions of
any and all such interest, if any, and such Liquidated Damages payable unless
otherwise stated. A Distribution is payable only to the extent that payments are
made in respect of the Debentures held by the Property Trustee and to the extent
the Property Trustee has funds legally available therefor.
(b) Distributions on the Securities will be cumulative, will
accumulate from the most recent date to which Distributions have been paid or,
if no Distributions have been paid, from April 20, 1999 and will be payable
semi-annually in arrears on May 1 and November 1 of each year, commencing
November 1, 1999 (each, a "Distribution Date"), except as otherwise described
below. Distributions will be computed on the basis of a 360-day year consisting
of twelve 30-day months. As long as no Event of Default has occurred and is
continuing under the Indenture, the Debenture Issuer has the right under the
Indenture to defer payments of interest by extending the interest payment period
at any time and from time to time on the Debentures for a period not exceeding
10 consecutive semi-annual periods, including the first such semi-annual period
during such period (each an "Extension Period"), during which Extension Period
no interest shall be due and payable on the Debentures, provided that no
Extension Period shall end on a date other than an Interest Payment Date for the
Debentures or extend beyond the Maturity Date of the Debentures. As a
consequence of such deferral, Distributions will also be deferred.
Notwithstanding such deferral, Distributions will continue to accumulate with
additional Distributions thereon (to the extent permitted by applicable law but
not at a rate greater than the rate at which interest is then accruing on the
Debentures) at the Coupon Rate compounded semi-annually during any such
Extension Period. Prior to the termination of any such Extension Period, the
Debenture Issuer may further defer payments of interest by further extending
such Extension Period, provided that such extension does not cause such
Extension Period, together with all such previous and further extensions within
such Extension Period, to exceed 10 consecutive semi-annual periods, including
the first semi-annual period during such Extension Period, end on a date other
than an Interest Payment Date for the Debentures or extend beyond the Maturity
Date of the Debentures. Upon the termination of any Extension Period and the
payment of all amounts then due, the Debenture Issuer may commence a new
Extension Period, subject to the above requirements.
(c) Distributions on the Securities will be payable to the
Holders thereof as they appear on the books and records of the Trust on the
close of business on the 15th day of the month immediately preceding the month
in which the relevant Distribution Date occurs, which Distribution Dates
correspond to the Interest Payment Dates for the Debentures. Subject to any
applicable laws and regulations and the provisions of the Declaration, each such
payment in respect of the Capital Securities will be made as described under the
heading "Description of Capital Securities-Form, Denomination, Book-Entry
Procedures and Transfer" in the Offering Memorandum dated April 15, 1999 of the
Debenture Issuer and the Trust relating to the Securities and the Debentures.
The relevant record dates for the Common Securities shall be the same as the
record dates for the Capital Securities. Distributions payable on any Securities
that are not punctually paid on any Distribution Date, as a result of the
Debenture Issuer having failed to make a payment under the Debentures, will
cease to be payable to the Holder on the relevant record date, and such
defaulted Distribution will instead be payable to the Person in whose name such
Securities are registered on the special record date or other specified date
determined in accordance with the Indenture. If any date on which Distributions
are payable on the Securities is not a Business Day, then payment of the
Distributions payable on such date will be made on the next succeeding day that
is a Business Day (and without any interest or other payment in respect of any
such delay), with the same force and effect as if made on such date.
(d) In the event that there is any money or other property
held by or for the Trust that is not accounted for hereunder, such property
shall be distributed Pro Rata (as defined herein) among the Holders.
3. Liquidation Distribution Upon Dissolution.
In the event of any dissolution of the Trust, the Trust shall
be liquidated by the Trustees as expeditiously as the Trustees determine to be
possible by distributing to the Holders, after satisfaction of liabilities to
creditors of the Trust as provided by applicable law, a Like Amount (as defined
below) of the Debentures, unless such distribution is determined by the Property
Trustee not to be practicable, in which event such Holders will be entitled to
receive out of the assets of the Trust legally available for distribution to
Holders, after satisfaction of liabilities to creditors of the Trust as provided
by applicable law, an amount equal to the aggregate of the liquidation amount of
$1,000 per Security plus accumulated and unpaid Distributions thereon to the
date of payment (such amount being the "Liquidation Distribution").
"Like Amount" means (i) with respect to a redemption of the
Securities, Securities having a Liquidation Amount equal to the principal amount
of Debentures to be paid in accordance with their terms and (ii) with respect to
a distribution of Debentures upon the liquidation of the Trust, Debentures
having a principal amount equal to the Liquidation Amount of the Securities of
the Holder to whom such Debentures are distributed.
If, upon any such liquidation, the Liquidation Distribution
can be paid only in part because the Trust has insufficient assets legally
available to pay in full the aggregate Liquidation Distribution, then the
amounts payable directly by the Trust on the Securities shall be paid on a Pro
Rata basis.
4. Redemption and Distribution.
(a) Upon the repayment of the Debentures in whole or in part,
at maturity or otherwise (either at the option of the Debenture Issuer or
pursuant to a Special Event or upon a Conversion Transaction, as described
below), the proceeds from such repayment shall be simultaneously applied by the
Property Trustee (subject to the Property Trustee having received written notice
no later than 45 days prior to such repayment) to redeem a Like Amount of the
Securities at a redemption price equal to (i) in the case of the repayment of
the Debentures on the Maturity Date, the Maturity Redemption Price (as defined
below), (ii) in the case of the optional prepayment of the Debentures prior to
the Initial Optional Redemption Date and upon the occurrence and continuation of
a Special Event, the Special Event Redemption Price (as defined below), and
(iii) in the case of the optional prepayment of the Debentures on or after the
Initial Optional Redemption Date, the Optional Redemption Price (as defined
below). The Maturity Redemption Price, the Special Event Redemption Price and
the Optional Redemption Price are referred to collectively as the "Redemption
Price." Holders will be given not less than 30 nor more than 60 days prior
written notice of such redemption.
(b) (i) The "Maturity Redemption Price," with respect to a
redemption of Securities, shall mean an amount equal to the principal of and
accrued and unpaid interest on the Debentures as of the Maturity Date thereof.
(ii) In the case of an optional redemption,
if fewer than all the outstanding Securities are to be so redeemed, the
Common Securities and the Capital Securities shall be redeemed Pro Rata
and the Capital Securities to be redeemed will be determined as
described in Section 4(f)(ii) below. Upon the entry of an
order for the dissolution of the Trust by a court of competent jurisdiction, the
Debentures thereafter will be subject to optional redemption, in whole, but not
in part, on or after the Initial Optional Redemption Date.
The Debenture Issuer shall have the right (subject to the
conditions in the Indenture) to elect to redeem the Debentures, in whole or in
part, at any time on or after May 1, 2009 (the "Initial Optional Redemption
Date"), and, simultaneous with such redemption, to cause a Like Amount of the
Securities to be redeemed by the Trust at the Optional Redemption Price on a Pro
Rata basis or a method deemed fair and appropriate by the Property Trustee.
"Optional Redemption Price" shall mean a price equal to the percentage of the
liquidation amount of Securities to be redeemed plus accumulated and unpaid
Distributions thereon, if any, to the date of such redemption if redeemed during
the 12-month period beginning May 1st of the years indicated below:
Percentage of
Year Principal
2009 104.310%
2010 103.879%
2011 103.448%
2012 103.017%
2013 102.586%
2014 102.155%
2015 101.724%
2016 101.293%
2017 100.862%
2018 100.431%
2019 and thereafter 100.000%
(c) If at any time an Investment Company Event, a Regulatory
Capital Event or a Tax Event (each as defined below, and each a "Special Event")
occurs, the Debenture Issuer shall have the right (subject to the conditions set
forth in the Indenture) at any time prior to the Initial Optional Redemption
Date, to redeem the Debentures in whole, but not in part, within the 90 days
following the occurrence of such Special Event (the 90 Day Period"), and,
simultaneous with such redemption, to cause a Like Amount of the Securities to
be redeemed by the Trust at the Special Event Redemption Price on a Pro Rata
basis.
"Investment Company Event" shall mean the receipt by the
Debenture Issuer and the Trust of an opinion of independent securities counsel
experienced in such matters to the effect that as a result of (a) any amendment
to, or change (including any announced prospective change) in, the laws or any
regulation thereunder of the United States or any rules, guidelines or policies
of any applicable regulatory authority for the Debenture Issuer or (b) any
official administrative pronouncement or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of original
issuance of the Securities, the Trust is, or within 90 days of the date of such
opinion will be, considered an Investment Company that is required to be
registered under the Investment Company Act.
"Make-Whole Amount" shall mean an amount equal to the greater
of (x) 100% of the principal of Debentures or (y) the sum, as determined by a
Quotation Agent (as defined in the Indenture), of the present values of the
remaining scheduled payments of principal and interest on the Debentures,
discounted to the redemption date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as
defined in the Indenture), plus, in the case of each of clauses (x) and (y),
accrued and unpaid interest thereon, if any, to the date of redemption.
"Regulatory Capital Event" shall mean the receipt by the
Debenture Issuer and the Trust of an opinion of independent bank regulatory
counsel experienced in such matters to the effect that as a result of (a) any
amendment to, or change (including any announced prospective change) in, the
laws (or any regulations thereunder) of the United States or any rules,
guidelines or policies of an applicable regulatory authority for the Debenture
Issuer or its Banking Subsidiaries, or (b) any official administrative
pronouncement or judicial decision interpreting or applying such laws or
regulations, which amendment or change is effective or which pronouncement or
decision is announced on or after the date of original issuance of the
Securities, the Capital Securities do not constitute, or within 90 days of the
date of such opinion will not constitute, Tier 1 Capital (or its then equivalent
if the Sponsor were subject to such capital requirement) applied as if the
Debenture Issuer (or its successors) were a bank holding company for purposes of
capital adequacy guidelines of the Federal Reserve Board (or any successor
regulatory authority with jurisdiction over bank holding companies), or any
capital adequacy guidelines as then in effect and applicable to the Debenture
Issuer; provided, however, that the distribution of the Debentures in connection
with the liquidation of the Trust by the Debenture Issuer shall not in and of
itself constitute a Regulatory Capital Event unless such liquidation shall have
occurred in connection with a Tax Event.
"Special Event Redemption Price" shall mean, with respect to
any redemption of Securities following a Special Event, an amount in cash equal
to the Make-Whole Amount.
"Tax Event" shall occur upon receipt by the Debenture Issuer
and the Trust of an opinion of independent tax counsel experienced in such
matters to the effect that, as a result of any amendment to, or change
(including any announced prospective change) in, the laws or any regulations
thereunder of the United States or any political subdivision or taxing authority
thereof or therein, or as a result of any official administrative pronouncement
or judicial decision interpreting or applying such laws or regulations, which
amendment or change is effective or which pronouncement or decision is announced
on or after the date of original issuance of the Securities, there is more than
an insubstantial risk that (i) the Trust is, or will be within 90 days of the
date of such opinion, subject to United States federal income tax with respect
to income received or accrued on the Debentures, (ii) the interest payable by
the Debenture Issuer on the Debentures is not, or within 90 days of the date of
such opinion will not be, deductible by the Debenture Issuer, in whole or in
part, for United States federal income tax purposes, or (iii) the Trust is, or
will be within 90 days of the date of such opinion, subject to more than a de
minimis amount of other taxes, duties or other governmental charges.
(d) On and from the date fixed by the Administrative Trustees
for any distribution of Debentures and liquidation of the Trust: (i) the
Securities will no longer be deemed to be outstanding, (ii) the Clearing Agency
or its nominee (or any successor Clearing Agency or its nominee), as the Holder
of the Capital Securities, will receive a registered global certificate or
certificates representing the Debentures to be delivered upon such distribution,
and (iii) any certificates representing Securities not held by the Clearing
Agency or its nominee (or any successor Clearing Agency or its nominee) will be
deemed to represent beneficial interests in a Like Amount of Debentures until
such certificates are presented to the Debenture Issuer or its agent for
transfer or reissue.
(e) The Trust may not redeem fewer than all the outstanding
Securities unless all accumulated and unpaid Distributions have been paid on all
Securities for all semi-annual Distribution periods terminating on or before the
date of redemption.
(f) The procedure with respect to redemptions or
distributions of Securities shall be as follows:
(i) Notice of any redemption of, or notice of
distribution of Debentures in exchange for, the Securities (a
"Redemption/Distribution Notice") will be given by the Trust by mail to
each Holder to be redeemed or exchanged not fewer than 30 nor more than
60 days before the date fixed for redemption or exchange thereof which,
in the case of a redemption, will be the date fixed for redemption of
the Debentures. For purposes of the calculation of the date of
redemption or exchange and the dates on which notices are given
pursuant to this Section 4(f)(i), a Redemption/Distribution Notice
shall be deemed to be given on the day such notice is first mailed by
first-class mail, postage prepaid, to Holders. Each
Redemption/Distribution Notice shall be addressed to the Holders at the
address of each such Holder appearing in the books and records of the
Trust. No defect in the Redemption/Distribution Notice or in the
mailing of either thereof with respect to any Holder shall affect the
validity of the redemption or exchange proceedings with respect to any
other Holder.
(ii) In the event that fewer than all the outstanding
Securities are to be redeemed, the particular Securities to be redeemed
shall be selected on a Pro Rata basis or a method deemed fair and
appropriate by the Property Trustee (based upon Liquidation Amounts)
not more than 60 nor less than 30 days prior to the date fixed for
redemption from the outstanding Securities not previously called for
redemption; provided, however, that with respect to Holders that would
be required to hold less than 100 but more than zero Securities as a
result of such redemption, the Trust shall redeem Securities of each
such Holder so that after such redemption such Holder shall hold either
100 Securities or such Holder no longer holds any Securities, and shall
use such method (including, without limitation, by lot) as the Trust
shall deem fair and appropriate; provided, further, that any such
redemption may be made on the basis of the aggregate Liquidation Amount
of Securities held by each Holder thereof and may be made by making
such adjustments as the Trust deems fair and appropriate in order that
fractional Securities shall not thereafter remain outstanding. In
respect of Capital Securities registered in the name of and held of
record by the Clearing Agency or its nominee (or any successor Clearing
Agency or its nominee) or any nominee, the distribution of the proceeds
of such redemption will be made to the Clearing Agency and disbursed by
such Clearing Agency in accordance with the procedures applied by such
agency or nominee.
(iii) If Securities are to be redeemed and the Trust
gives a Redemption/Distribution Notice (which notice will be
irrevocable), then (A) with respect to Capital Securities issued in
book-entry form, by 12:00 noon, New York City time, on the redemption
date, provided that the Debenture Issuer has paid the Property Trustee
a sufficient amount of cash in connection with the related redemption
or maturity of the Debentures by 10:00 a.m., New York City time, on the
Maturity Date or the date of redemption, as the case requires, the
Property Trustee will deposit irrevocably with the Clearing Agency or
its nominee (or successor Clearing Agency or its nominee) immediately
available funds sufficient to pay the applicable Redemption Price with
respect to such Capital Securities and will give the Clearing Agency
irrevocable instructions and authority to pay the Redemption Price to
the relevant Clearing Agency Participants, and (B) with respect to
Capital Securities issued in certificated form and Common Securities,
provided that the Debenture Issuer has paid the Property Trustee a
sufficient amount of cash in connection with the related redemption or
maturity of the Debentures, the Property Trustee will irrevocably
deposit with the paying agent for the Capital Securities (if other than
the Property Trustee) funds sufficient to pay the applicable Redemption
Price to the Holders by check mailed to the address of the relevant
Holder appearing on the books and records of the Trust on the
redemption date, and provided, further, that any such payment shall
become due only upon surrender by the Holder of the related
certificated Capital Securities. If a Redemption/ Distribution Notice
shall have been given and funds deposited as required, if applicable,
then immediately prior to the close of business on the date of such
deposit, or on the redemption date, as applicable, Distributions will
cease to accumulate on the Securities so called for redemption and all
rights of Holders so called for redemption will cease, except the right
of the Holders of such Securities to receive the Redemption Price, but
without interest on such Redemption Price, and such Securities shall
cease to be outstanding.
(iv) Payment of accumulated and unpaid Distributions
on the Redemption Date of the Securities will be subject to the rights
of Holders on the close of business on a regular record date in respect
of a Distribution Date occurring on or prior to such Redemption Date.
Neither the Administrative Trustees nor the Trust shall be
required to register or cause to be registered the transfer of (i) any
Securities beginning on the opening of business 15 days before the day of
mailing of a notice of redemption or any notice of selection of Securities for
redemption or (ii) any Securities selected for redemption except the unredeemed
portion of any Security being redeemed. If any date fixed for redemption of
Securities is not a Business Day, then payment of the Redemption Price payable
on such date will be made on the next succeeding day that is a Business Day (and
without any interest or other payment in respect of any such delay). If payment
of the Redemption Price in respect of any Securities is improperly withheld or
refused and not paid either by the Property Trustee or by the Sponsor as
guarantor pursuant to the relevant Securities Guarantee, Distributions on such
Securities will continue to accumulate from the original redemption date to the
actual date of payment, in which case the actual payment date will be considered
the date fixed for redemption for purposes of calculating the Redemption Price.
(v) Redemption/Distribution Notices shall be sent by
the Property Trustee on behalf of the Trust to (A) in respect of
Capital Securities issued in book-entry form, the Clearing Agency or
its nominee (or any successor Clearing Agency or its nominee), (B) in
respect of Capital Securities issued in certificated form, to the
Holders thereof, and (C) in respect of the Common Securities, to the
Holders thereof.
(vi) Subject to the foregoing and applicable law
(including, without limitation, United States federal securities laws
and banking laws), the Sponsor or any of its subsidiaries may at any
time and from time to time purchase outstanding Capital Securities by
tender, in the open market or by private agreement.
5. Voting Rights - Capital Securities.
(a) Except as provided under Sections 5(b), 6(b) and 7 and as
otherwise required by law and the Declaration, the Holders of the Capital
Securities will have no voting rights.
(b) So long as any Debentures are held by the Property
Trustee, the Trustees shall not (i) direct the time, method and place of
conducting any proceeding for any remedy available to the Debenture Trustee or
executing any trust or power conferred on such Debenture Trustee with respect to
the Debentures, (ii) waive any past default that is waivable under Section 5.07
of the Indenture, (iii) exercise any right to rescind or annul a declaration of
acceleration of the maturity of the principal of the Debentures or (iv) consent
to any amendment, modification or termination of the Indenture or the
Debentures, where such consent shall be required, without, in each case,
obtaining the prior approval of the Holders of a Majority in Liquidation Amount
of all outstanding Capital Securities; provided, however, that where a consent
under the Indenture would require the consent of each holder of Debentures
affected thereby, no such consent shall be given by the Property Trustee without
the prior approval of each Holder of the Capital Securities. The Trustees shall
not revoke any action previously authorized or approved by a vote of the Holders
of the Capital Securities except by subsequent vote of such Holders. The
Property Trustee shall notify each Holder of Capital Securities of any notice of
default with respect to the Debentures. In addition to obtaining the foregoing
approvals of such Holders of the Capital Securities, prior to taking any of the
foregoing actions, the Trustees shall obtain an opinion of counsel experienced
in such matters to the effect that the Trust will continue to be classified as a
grantor trust for United States federal income tax purposes after taking any
such action into account.
If an Event of Default under the Declaration has occurred and
is continuing and such event is attributable to the failure of the Debenture
Issuer to pay principal of or premium, if any, or interest on the Debentures on
the due date (or, in the case of redemption, on the redemption date), then a
Holder of Capital Securities may institute a proceeding directly against the
Debenture Issuer for enforcement of payment to such Holder of the principal of
or premium, if any, or interest on a Like Amount of Debentures (a "Direct
Action") on or after the respective due date specified in the Debentures. In
connection with such Direct Action, the Common Securities Holder will be
subordinated to the rights of the Holders of Capital Securities to the extent of
any payment made by the Debenture Issuer to such Holder of Capital Securities in
such Direct Action. Except as provided in the second preceding sentence, and,
except as set forth in the first sentence of Section 3.8(e) of the Declaration,
the Holders of Capital Securities will not be able to exercise directly any
other remedy available to the holders of the Debentures.
Any approval or direction of Holders of Capital Securities may
be given at a separate meeting of Holders of Capital Securities convened for
such purpose, at a meeting of all of the Holders of Securities in the Trust or
pursuant to written consent. The Property Trustee will cause a notice of any
meeting at which Holders of Capital Securities are entitled to vote to be mailed
to each Holder of record of Capital Securities. Each such notice will include a
statement setting forth (i) the date of such meeting or the date by which such
action is to be taken, (ii) a description of any resolution proposed for
adoption at such meeting on which such Holders are entitled to vote or of such
matter upon which written consent is sought and (iii) instructions for the
delivery of proxies or consent.
No vote or consent of the Holders of the Capital Securities
will be required for the Trust to redeem and cancel Capital Securities or to
distribute the Debentures in accordance with the Declaration and the terms of
the Securities.
Notwithstanding that Holders of Capital Securities are
entitled to vote or consent under any of the circumstances described above, any
of the Capital Securities that are owned by the Sponsor or any Affiliate of the
Sponsor shall not be entitled to vote or consent and shall, for purposes of such
vote or consent, be treated as if they were not outstanding.
6. Voting Rights - Common Securities.
(a) Except as provided under Sections 6(b), 6(c), and 7 or as
otherwise required by law and the Declaration, the Holders of the Common
Securities will have no voting rights.
(b) Unless a Debenture Event of Default shall have occurred
and be continuing, any Trustee may be removed at any time by the Holder of the
Common Securities. If a Debenture Event of Default has occurred and is
continuing, the Property Trustee and the Delaware Trustee may be removed at such
time by the Holders of a Majority in Liquidation Amount of the outstanding
Capital Securities. In no event will the Holders of the Capital Securities have
the right to vote to appoint, remove or replace the Administrative Trustees,
which voting rights are vested exclusively in the Sponsor as the Holder of the
Common Securities. No resignation or removal of a Trustee and no appointment of
a successor trustee shall be effective until the acceptance of appointment by
the successor trustee in accordance with the provisions of the Declaration.
(c) So long as any Debentures are held by the Property
Trustee, the Trustees shall not (i) direct the time, method and place of
conducting any proceeding for any remedy available to the Debenture Trustee, or
executing any trust or power conferred on such Debenture Trustee with respect to
the Debentures, (ii) waive any past default that is waivable under Section 5.07
of the Indenture, (iii) exercise any right to rescind or annul a declaration of
acceleration of the maturity of the principal of the Debentures or (iv) consent
to any amendment, modification or termination of the Indenture or the
Debentures, where such consent shall be required, without, in each case,
obtaining the prior approval of the Holders of a Majority in Liquidation Amount
of all outstanding Common Securities; provided, however, that where a consent
under the Indenture would require the consent of each holder of Debentures
affected thereby, no such consent shall be given by the Property Trustee without
the prior approval of each Holder of the Common Securities. The Trustees shall
not revoke any action previously authorized or approved by a vote of the Holders
of the Common Securities except by subsequent vote of such Holders. The Property
Trustee shall notify each Holder of Common Securities of any notice of default
with respect to the Debentures. In addition to obtaining the foregoing approvals
of such Holders of the Common Securities, prior to taking any of the foregoing
actions, the Trustees shall obtain an opinion of counsel experienced in such
matters to the effect that the Trust will continue to be classified as a grantor
trust for United States federal income tax purposes after taking any such action
into account.
If an Event of Default under the Declaration has occurred and
is continuing and such event is attributable to the failure of the Debenture
Issuer to pay principal of or premium, if any, or interest on the Debentures on
the due date (or in the case of redemption, on the redemption date), then a
Holder of Common Securities may institute a Direct Action directly against the
Debenture Issuer for enforcement of payment to such Holder of the principal of
or premium, if any, or interest on a Like Amount of Debentures on or after the
respective due date specified in the Debentures. In connection with such Direct
Action, the rights of the Common Securities Holder will be subordinated to the
rights of the Holders of Capital Securities in respect of any payment from the
Debenture Issuer in such Direct Action. Except as provided in the second
preceding sentence, the Holders of Common Securities will not be able to
exercise directly any other remedy available to the holders of the Debentures.
Any approval or direction of Holders of Common Securities may
be given at a separate meeting of Holders of Common Securities convened for such
purpose, at a meeting of all of the Holders of Securities in the Trust or
pursuant to written consent. The Administrative Trustees will cause a notice of
any meeting at which Holders of Common Securities are entitled to vote, or of
any matter upon which action by written consent of such Holders is to be taken,
to be mailed to each Holder of record of Common Securities. Each such notice
will include a statement setting forth (i) the date of such meeting or the date
by which such action is to be taken, (ii) a description of any resolution
proposed for adoption at such meeting on which such Holders are entitled to vote
or of such matter upon which written consent is sought and (iii) instructions
for the delivery of proxies or consents.
No vote or consent of the Holders of the Common Securities
will be required for the Trust to redeem and cancel Common Securities or to
distribute the Debentures in accordance with the Declaration and the terms of
the Securities.
7. Amendments to Declaration.
In addition to the requirements set out in Section 12.1 of the Declaration, the
Declaration may be amended from time to time by the Sponsor, the Property
Trustee and the Administrative Trustees without the consent of the Holders (i)
to cure any ambiguity, correct or supplement any provisions in the Declaration
that may be inconsistent with any other provisions, or to make any other
provisions with respect to matters or questions arising under the Declaration,
which shall not be inconsistent with the other provisions of the Declaration;
(ii) to modify, eliminate or add to any provisions of the Declaration to such
extent as shall be necessary to ensure that the Trust will be classified for
United States federal income tax purposes as a grantor trust at all times that
any Securities are outstanding or to ensure that the Trust will not be required
to register as an Investment Company under the Investment Company Act; or (iii)
to modify, eliminate or add any provisions of the Declaration to such extent as
shall be necessary to enable the Sponsor or the Trust to conduct the Exchange
Offer in a manner contemplated by the Registration Rights Agreement; provided,
however, that in the case of an amendment pursuant to clauses (i) and (iii)
above, such action shall not adversely affect in any material respect the
interests of any Holder, and any such amendments of the Declaration shall become
effective when notice thereof is given to the Holders. The Declaration may also
be amended by the Trustees and the Sponsor (i) with the consent of Holders
representing a Majority in Liquidation Amount of all outstanding Securities; and
(ii) upon receipt by the Trustees of an Opinion of Counsel to the effect that
such amendment or the exercise of any power granted to the Trustees in
accordance with such amendment will not affect the Trust's status as a grantor
trust for United States federal income tax purposes or the Trust's exemption
from status as an Investment Company under the Investment Company Act; provided,
however, that, without the consent of each Holder of Trust Securities, the
Declaration may not be amended to (i) change the amount or timing of any
Distribution on, or the payment required to be made in respect of, the Trust
Securities as of a specified date or (ii) restrict the right of a Holder of
Trust Securities to institute suit for the enforcement of any such payment on or
after such date.
8. Pro Rata.
A reference in these terms of the Securities to any payment,
distribution or treatment as being "Pro Rata" shall mean pro rata to each Holder
according to the aggregate liquidation amount of the Securities held by the
relevant Holder in relation to the aggregate liquidation amount of all
Securities outstanding unless, in relation to a payment, an Event of Default
under the Declaration has occurred and is continuing, in which case any funds
available to make such payment shall be paid first to each Holder of the Capital
Securities pro rata according to the aggregate liquidation amount of Capital
Securities held by the relevant Holder relative to the aggregate liquidation
amount of all Capital Securities outstanding and then, only after satisfaction
of all amounts owed to the Holders of the Capital Securities, to each Holder of
Common Securities pro rata according to the aggregate liquidation amount of
Common Securities held by the relevant Holder relative to the aggregate
liquidation amount of all Common Securities outstanding.
9. Ranking.
The Capital Securities rank pari passu with the Common
Securities and payment thereon shall be made Pro Rata with the Common
Securities, except that, if an Event of Default under the Declaration occurs and
is continuing, no payments in respect of Distributions on, or payments upon
liquidation, redemption or otherwise with respect to, the Common Securities
shall be made until the Holders of the Capital Securities shall be paid in full
the Distributions, Redemption Price, Liquidation Distribution and any other
payments to which they are entitled at such time.
10. Acceptance of Capital Securities Guarantee, Common
Securities Guarantee. Indenture and Debentures.
Each Holder of Capital Securities and Common Securities, by
the acceptance thereof, agrees to the provisions of the Capital Securities
Guarantee, the Common Securities Guarantee, the Indenture and the Debentures, as
applicable, including the subordination provisions therein.
11. No Preemptive Rights.
The issuance of Capital Securities and the issuance of Common
Securities is not subject to preemptive or other similar rights. The Holders
shall have no preemptive or similar rights to subscribe for any additional
securities.
12. Miscellaneous.
These terms constitute a part of the Declaration.
The Sponsor will provide a copy of the Declaration, the
Capital Securities Guarantee or the Common Securities Guarantee, as applicable,
and the Indenture (including any supplemental indenture) to a Holder without
charge upon written request to the Trust at its principal place of business.
EXHIBIT A-2
FORM OF COMMON SECURITY CERTIFICATE
THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY
OTHER APPLICABLE SECURITIES LAW. NEITHER THIS COMMON SECURITY NOR ANY INTEREST
OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.
THE HOLDER OF THIS COMMON SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER THIS COMMON SECURITY, PRIOR TO THE DATE (THE
"RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUANCE DATE HEREOF AND THE LAST DATE ON WHICH PEOPLES BANCORP INC.
(THE "CORPORATION") OR ANY "AFFILIATE" OF THE CORPORATION WAS THE OWNER OF THIS
COMMON SECURITY (OR ANY PREDECESSOR OF THIS COMMON SECURITY) ONLY (A) TO THE
CORPORATION, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) SO LONG AS THIS COMMON SECURITY IS
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE
144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"
(AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) TO AN INSTITUTIONAL "ACCREDITED
INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501
UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS COMMON SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE
SECURITIES ACT, SUBJECT TO THE RIGHT OF PEBO CAPITAL TRUST I (THE "TRUST") AND
THE CORPORATION PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE
(D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii) PURSUANT TO
CLAUSE (D) TO REQUIRE THAT TRANSFEROR DELIVER TO THE TRUST A LETTER FROM THE
TRANSFEREE SUBSTANTIALLY IN THE FORM OF ANNEX A TO THE OFFERING MEMORANDUM DATED
APRIL 15, 1999. SUCH HOLDER FURTHER AGREES THAT IT WILL DELIVER TO EACH PERSON
TO WHOM THIS COMMON SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND.
Certificate Evidencing Common Securities
of
PEBO Capital Trust I
8.62% Common Securities
(liquidation amount $1,000 per Common Security)
PEBO Capital Trust I, a statutory business trust created under the laws
of the State of Delaware (the "Trust"), hereby certifies that Peoples Bancorp
Inc., an Ohio corporation (the "Holder"), is the registered owner of nine
hundred twenty-eight (928) common securities of the Trust representing undivided
beneficial interests in the assets of the Trust designated the 8.62% Common
Securities (liquidation amount $1,000 per Common Security) (the "Common
Securities"). Subject to the terms of the Declaration (as defined below), the
Common Securities are transferable on the books and records of the Trust, in
person or by a duly authorized attorney, upon surrender of this Certificate duly
endorsed and in proper form for transfer. The designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Common
Securities represented hereby are issued and shall in all respects be subject to
the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of April 20, 1999, as the same may be amended from time to time (the
"Declaration"), including the designation of the terms of the Common Securities
as set forth in Annex I to the Declaration. Capitalized terms used but not
defined herein shall have the meaning given them in the Declaration. The Sponsor
will provide a copy of the Declaration, the Common Securities Guarantee and the
Indenture (including any supplemental indenture) to a Holder without charge upon
written request to the Trust at its principal place of business.
Upon receipt of this Certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder and to the benefits of
the Common Securities Guarantee to the extent provided therein.
By acceptance hereof, the Holder agrees to treat, for United States
federal income tax purposes, the Debentures as indebtedness and the Common
Securities as evidence of indirect beneficial ownership in the Debentures.
IN WITNESS WHEREOF, the Trust has executed this certificate
this ___ day of ___________, 1999.
PEBO CAPITAL TRUST I
By:
Name:
Administrative Trustee
[FORM OF REVERSE OF SECURITY]
Distributions on each Common Security will be payable at a fixed rate
per annum of 8.62% (the "Coupon Rate") of the liquidation amount of $1,000 per
Common Security, such rate being the rate of interest payable on the Debentures
to be held by the Property Trustee. Distributions in arrears for more than one
semi-annual period will bear interest thereon compounded semi-annually at the
Coupon Rate (to the extent permitted by applicable law). The term
"Distributions", as used herein, includes such cash distributions and any and
all such interest, if any, payable unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures
held by the Property Trustee and to the extent the Property Trustee has funds
legally available therefor.
Distributions on the Common Securities will be cumulative, will accrue
from the most recent date to which Distributions have been paid or, if no
Distributions have been paid, from April 20, 1999 and will be payable
semi-annually in arrears, on May 1 and November 1 of each year, commencing
November 1, 1999, except as otherwise described below. Distributions will be
computed on the basis of a 360-day year consisting of twelve 30-day months. As
long as no Event of Default has occurred and is continuing under the Indenture,
the Debenture Issuer has the right under the Indenture to defer payments of
interest by extending the interest payment period at any time and from time to
time on the Debentures for a period not exceeding 10 consecutive calendar
semi-annual periods, including the first such semi-annual period during such
extension period (each an "Extension Period"), provided that no Extension Period
shall end on a date other than an Interest Payment Date for the Debentures or
extend beyond the Maturity Date of the Debentures. As a consequence of such
deferral, Distributions will also be deferred. Notwithstanding such deferral,
Distributions will continue to accumulate with interest thereon (to the extent
permitted by applicable law, but not at a rate exceeding the rate of interest
then accruing on the Debentures) at the Coupon Rate compounded semi-annually
during any such Extension Period. Prior to the termination of any Extension
Period, the Debenture Issuer may further defer payments of interest by further
extending such Extension Period; provided that such Extension Period, together
with all such previous and further extensions within such Extension Period, may
not (i) exceed 10 consecutive semi-annual periods, including the first
semi-annual period during such Extension Period, (ii) end on a date other than
an Interest Payment Date for the Debentures or (iii) extend beyond the Maturity
Date of the Debentures. Payments of accrued Distributions will be payable to
Holders as they appear on the books and records of the Trust on the record date
immediately preceding the end of the Extension Period. Upon the termination of
any Extension Period and the payment of all amounts then due, the Debenture
Issuer may commence a new Extension Period, subject to the above requirements.
Subject to the receipt by the Sponsor of any and all required
regulatory approvals and to certain other conditions set forth in the
Declaration and the Indenture, the Property Trustee may, at the direction of the
Sponsor, at any time dissolve the Trust and cause the Debentures to be
distributed to the Holders of the Securities in liquidation of the Trust or,
simultaneously with any redemption of the Debentures, cause a Like Amount of the
Securities to be redeemed by the Trust.
The Common Securities shall be redeemable as provided in the
Declaration.
Under certain circumstances, the right of the Holders of the Common
Securities shall be subordinate to the rights of the Holders of the Capital
Securities, as provided in the Declaration.
FORM OF SERIES B 8.62% CAPITAL SECURITY CERTIFICATE
[FORM OF FACE OF SECURITY]
[IF THIS CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY, INSERT: THIS
CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY WITHIN THE MEANING OF THE
DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (THE "CLEARING AGENCY") OR A NOMINEE OF THE CLEARING
AGENCY. THIS CAPITAL SECURITY IS EXCHANGEABLE FOR CAPITAL SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE CLEARING AGENCY OR ITS NOMINEE ONLY IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION AND NO TRANSFER OF THIS
CAPITAL SECURITY (OTHER THAN A TRANSFER OF THIS CAPITAL SECURITY AS A WHOLE BY
THE CLEARING AGENCY TO A NOMINEE OF THE CLEARING AGENCY OR BY A NOMINEE OF THE
CLEARING AGENCY TO THE CLEARING AGENCY OR ANOTHER NOMINEE OF THE CLEARING
AGENCY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.
UNLESS THIS CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE CLEARING AGENCY TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE CLEARING AGENCY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]
THE HOLDER OF THIS CAPITAL SECURITY BY ITS ACCEPTANCE HEREOF AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH
A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON
OF ANY PLAN'S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING "PLAN ASSETS" OF
ANY PLAN MAY ACQUIRE OR HOLD THE CAPITAL SECURITIES OR ANY INTEREST THEREIN,
UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE
UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,
95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND
HOLDING OF CAPITAL SECURITIES IS NOT PROHIBITED BY SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER
OR HOLDER OF THE CAPITAL SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO
HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER: (A) IT IS NOT
AN EMPLOYEE BENEFIT PLAN WITHIN SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON
BEHALF OF A PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY PLAN TO
FINANCE SUCH PURCHASE; OR (B) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH
THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.
THE CAPITAL SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS
HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 (100 CAPITAL SECURITIES)
AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF CAPITAL
SECURITIES IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000 SHALL BE
DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH CAPITAL SECURITIES FOR
ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON SUCH
CAPITAL SECURITIES, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO
INTEREST WHATSOEVER IN SUCH CAPITAL SECURITIES.
Certificate Number: ________ Aggregate Liquidation
Amount: $ ___________
CUSIP Number: 69332A AC 5
Certificate Evidencing Series B Capital Securities
of
PEBO Capital Trust I
Series B 8.62% Capital Securities
(liquidation amount $1,000 per Capital Security)
PEBO Capital Trust I, a statutory business trust created under the laws of
the State of Delaware (the "Trust"), hereby certifies that _________________ is
the registered owner of _____________ Series B Capital Securities of the Trust
(liquidation amount of $1,000 per Capital Security), representing undivided
preferred beneficial interests in the assets of the Trust designated the Series
B 8.62% Capital Securities (liquidation amount $1,000 per Capital Security) (the
"Capital Securities"). The Capital Securities are transferable on the books and
records of the Trust, in person or by a duly authorized attorney, upon surrender
of this Certificate duly endorsed and in proper form for transfer. The
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Capital Securities represented hereby are issued and shall in
all respects be subject to the provisions of the Amended and Restated
Declaration of Trust of the Trust, dated as of April 20, 1999, as the same may
be amended from time to time (the "Declaration"), including the designation of
the terms of the Capital Securities as set forth in Annex I to the Declaration.
Capitalized terms used but not defined herein shall have the meaning given them
in the Declaration. The Sponsor will provide a copy of the Declaration, the
Capital Securities Guarantee and the Indenture (including any supplemental
indenture) to a Holder without charge upon written request to the Trust at its
principal place of business.
Upon receipt of this Certificate, the Holder is bound by the Declaration
and is entitled to the benefits thereunder and to the benefits of the Capital
Securities Guarantee to the extent provided therein.
By acceptance hereof, the Holder agrees to treat, for United States federal
income tax purposes, the Debentures as indebtedness and the Capital Securities
as evidence of indirect beneficial ownership in the Debentures.
IN WITNESS WHEREOF, the Trust has executed this Certificate this ____ day
of __________,_________.
PEBO CAPITAL TRUST I
By:
Name:
Administrative Trustee
PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Series B 8.62% Capital Securities of PEBO Capital Trust
I referred to in the within-mentioned Declaration.
Dated: _________________ ____, ____
WILMINGTON TRUST COMPANY
not in its individual capacity but solely
as Property Trustee
By:
Authorized Signatory
[FORM OF REVERSE OF SECURITY]
Distributions on each Capital Security will be payable at a fixed rate per
annum of 8.62% (the "Coupon Rate") of the liquidation amount of $1,000 per
Capital Security, such rate being the rate of interest payable on the Debentures
to be held by the Property Trustee. Distributions in arrears for more than one
semi-annual period will bear interest thereon compounded semi-annually at the
Coupon Rate (to the extent permitted by applicable law). The term
"Distributions", as used herein, includes such cash distributions and any and
all such interest payable unless otherwise stated. A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Property Trustee and to the extent the Property Trustee has funds legally
available therefor.
Distributions on the Capital Securities will be cumulative, will accumulate
from the most recent date to which Distributions have been paid with respect to
this Series B Capital Security or the Series A Capital Security exchanged for
this Series B Capital Security or, if no Distributions have been paid, from
April 20, 1999 (the date of original issuance of the Series A Capital
Securities) and will be payable semi-annually in arrears, on May 1 and November
1 of each year, commencing November 1, 1999, except as otherwise described
below. Distributions will be computed on the basis of a 360-day year consisting
of twelve 30-day months, and, for any period of less than a full calendar month,
the number of days elapsed in such month. As long as no Event of Default has
occurred and is continuing under the Indenture, the Debenture Issuer has the
right under the Indenture to defer payments of interest by extending the
interest payment period at any time and from time to time on the Debentures for
a period not exceeding 10 consecutive calendar semi-annual periods, including
the first such semi-annual period during such extension period (each an
"Extension Period"), provided that no Extension Period shall end on a date other
than an Interest Payment Date for the Debentures or extend beyond the Maturity
Date of the Debentures. As a consequence of such deferral, Distributions will
also be deferred. Notwithstanding such deferral, semi-annual Distributions will
continue to accumulate with interest thereon (to the extent permitted by
applicable law, but not at a rate exceeding the rate of interest then accruing
on the Debentures) at the Coupon Rate compounded semi-annually during any such
Extension Period. Prior to the termination of any Extension Period, the
Debenture Issuer may further defer payments of interest by further extending
such Extension Period; provided that such Extension Period, together with all
such previous and further extensions within such Extension Period, may not (i)
exceed 10 consecutive semi-annual periods, including the first semi-annual
period during such Extension Period, (ii) end on a date other than an Interest
Payment Date for the Debentures or (iii) extend beyond the Maturity Date of the
Debentures. Payments of accumulated Distributions will be payable to Holders as
they appear on the books and records of the Trust on the record date immediately
preceding the end of the Extension Period. Upon the termination of any Extension
Period and the payment of all amounts then due, the Debenture Issuer may
commence a new Extension Period, subject to the above requirements.
Subject to receipt by the Sponsor of any and all required regulatory
approvals and to certain other conditions set forth in the Declaration and the
Indenture, the Property Trustee may, at the direction of the Sponsor, at any
time dissolve the Trust and cause, after satisfaction of liabilities to
creditors of the Trust as provided by applicable law, the Debentures to be
distributed to the Holders of the Securities in liquidation of the Trust or,
simultaneously with any redemption of the Debentures, cause a Like Amount of the
Securities to be redeemed by the Trust.
The Capital Securities shall be redeemable as provided in the Declaration.
ASSIGNMENT
----------
FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital
Security Certificate to:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(Insert assignee's social security or tax identification number)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(Insert address and zip code of assignee)
and irrevocably appoints
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------agent
to transfer this Capital Security Certificate on the books of the Trust.
The agent may substitute another to act for him or her.
Date:_____________________
Signature:
(Sign exactly as your name appears on the other side of this Capital Security
Certificate)
Signature Guarantee:
Signature must be guaranteed by an "eligible guarantor institution" that is
a bank, stockbroker, savings association or credit union meeting the
requirements of the Registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
EXHIBIT A-1
FORM OF SERIES A CAPITAL SECURITY CERTIFICATE
[FORM OF FACE OF SECURITY]
[IF THIS CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY, INSERT: THIS
CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY WITHIN THE MEANING OF THE
DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (THE "CLEARING AGENCY") OR A NOMINEE OF THE CLEARING
AGENCY. THIS CAPITAL SECURITY IS EXCHANGEABLE FOR CAPITAL SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE CLEARING AGENCY OR ITS NOMINEE ONLY IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION AND NO TRANSFER OF THIS
CAPITAL SECURITY (OTHER THAN A TRANSFER OF THIS CAPITAL SECURITY AS A WHOLE BY
THE CLEARING AGENCY TO A NOMINEE OF THE CLEARING AGENCY OR BY A NOMINEE OF THE
CLEARING AGENCY TO THE CLEARING AGENCY OR ANOTHER NOMINEE OF THE CLEARING
AGENCY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.
UNLESS THIS CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE CLEARING AGENCY TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE CLEARING AGENCY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]
THIS CAPITAL SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY
OTHER APPLICABLE SECURITIES LAW. NEITHER THIS CAPITAL SECURITY NOR ANY INTEREST
OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.
THE HOLDER OF THIS CAPITAL SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER THIS CAPITAL SECURITY, PRIOR TO THE DATE (THE
"RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUANCE DATE HEREOF AND THE LAST DATE ON WHICH PEOPLES BANCORP INC.
(THE "CORPORATION") OR ANY "AFFILIATE" OF THE CORPORATION WAS THE OWNER OF THIS
CAPITAL SECURITY (OR ANY PREDECESSOR OF THIS CAPITAL SECURITY) ONLY (A) TO THE
CORPORATION, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) SO LONG AS THIS CAPITAL SECURITY IS
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE
144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"
(AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) TO AN INSTITUTIONAL "ACCREDITED
INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501
UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS CAPITAL SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR (E) PURSUANT TO ANY
OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE
SECURITIES ACT, SUBJECT TO THE RIGHT OF PEBO CAPITAL TRUST I (THE "TRUST") AND
THE CORPORATION PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE
(D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii) PURSUANT TO
CLAUSE (D) TO REQUIRE THAT THE TRANSFEROR DELIVER TO THE TRUST A LETTER FROM THE
TRANSFEREE SUBSTANTIALLY IN THE FORM OF ANNEX A TO THE OFFERING MEMORANDUM DATED
APRIL 15, 1999. SUCH HOLDER FURTHER AGREES THAT IT WILL DELIVER TO EACH PERSON
TO WHOM THIS CAPITAL SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND.
THE HOLDER OF THIS CAPITAL SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH
A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON
OF ANY PLAN'S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING "PLAN ASSETS" OF
ANY PLAN MAY ACQUIRE OR HOLD THE CAPITAL SECURITIES OR ANY INTEREST THEREIN,
UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE
UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,
95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND
HOLDING OF CAPITAL SECURITIES IS NOT PROHIBITED BY SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER
OR HOLDER OF THE CAPITAL SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO
HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER: (A) IT IS NOT
AN EMPLOYEE BENEFIT PLAN WITHIN SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON
BEHALF OF A PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY PLAN TO
FINANCE SUCH PURCHASE; OR (B) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH
THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.
THE CAPITAL SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS
HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 (100 CAPITAL SECURITIES)
AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF CAPITAL
SECURITIES IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000 SHALL BE
DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH CAPITAL SECURITIES FOR
ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON SUCH
CAPITAL SECURITIES, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO
INTEREST WHATSOEVER IN SUCH CAPITAL SECURITIES.
<PAGE>
Certificate Number: ________ Aggregate Liquidation
Amount: $ ___________
CUSIP Number: _________
Certificate Evidencing Series Capital Securities
of
PEBO Capital Trust I
Series A 8.62% Capital Securities
(liquidation amount $1,000 per Capital Security)
PEBO Capital Trust I, a statutory business trust created under the laws of
the State of Delaware (the "Trust"), hereby certifies that _________________ is
the registered owner of _____________ Series A Capital Securities of the Trust
(liquidation amount of $1,000 per Capital Security), representing undivided
preferred beneficial interests in the assets of the Trust designated the Series
A 8.62% Capital Securities (liquidation amount $1,000 per Capital Security) (the
"Capital Securities"). The Capital Securities are transferable on the books and
records of the Trust, in person or by a duly authorized attorney, upon surrender
of this certificate duly endorsed and in proper form for transfer. The
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Capital Securities represented hereby are issued and shall in
all respects be subject to the provisions of the Amended and Restated
Declaration of Trust of the Trust, dated as of April 20, 1999, as the same may
be amended from time to time (the "Declaration"), including the designation of
the terms of the Capital Securities as set forth in Annex I to the Declaration.
Capitalized terms used but not defined herein shall have the meaning given them
in the Declaration. The Sponsor will provide a copy of the Declaration, the
Capital Securities Guarantee and the Indenture (including any supplemental
indenture) to a Holder without charge upon written request to the Trust at its
principal place of business.
Upon receipt of this Certificate, the Holder is bound by the Declaration
and is entitled to the benefits thereunder and to the benefits of the Capital
Securities Guarantee to the extent provided therein.
By acceptance hereof, the Holder agrees to treat, for United States federal
income tax purposes, the Debentures as indebtedness and the Capital Securities
as evidence of indirect beneficial ownership in the Debentures.
IN WITNESS WHEREOF, the Trust has executed this certificate this ____ day
of __________, 1999.
PEBO CAPITAL TRUST I
By:
Name:
Adminstrative Trustee
PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Series A 8.62% Capital Securities of PEBO Capital Trust
I referred to in the within-mentioned Declaration.
Dated: _________________ ____, ____
WILMINGTON TRUST COMPANY
not in its individual capacity but solely
as Property Trustee
By:
Authorized Signatory
[FORM OF REVERSE OF SECURITY]
Distributions on each Capital Security will be payable at a fixed rate per
annum of 8.62% (the "Coupon Rate") of the liquidation amount of $1,000 per
Capital Security, such rate being the rate of interest payable on the Debentures
to be held by the Property Trustee. Distributions in arrears for more than one
semi-annual period will bear interest thereon compounded semi-annually at the
Coupon Rate (to the extent permitted by applicable law). Pursuant to the
Registration Rights Agreement, in certain limited circumstances the Debenture
Trustee will be required to pay Liquidated Damages (as defined in the
Registration Rights Agreement) with respect to the Debentures. The term
"Distributions", as used herein, includes such cash distributions and any and
all such interest, if any, and such Liquidated Damages payable unless otherwise
stated. A Distribution is payable only to the extent that payments are made in
respect of the Debentures held by the Property Trustee and to the extent the
Property Trustee has funds legally available therefor.
Distributions on the Capital Securities will be cumulative, will accumulate
from the most recent date to which Distributions have been paid or, if no
Distributions have been paid, from April 20, 1999 and will be payable
semi-annually in arrears, on May 1 and November 1 of each year, commencing
November 1, 1999, except as otherwise described below. Distributions will be
computed on the basis of a 360-day year consisting of twelve 30-day months. As
long as no Event of Default has occurred and is continuing under the Indenture,
the Debenture Issuer has the right under the Indenture to defer payments of
interest by extending the interest payment period at any time and from time to
time on the Debentures for a period not exceeding 10 consecutive calendar
semi-annual periods, including the first such semi-annual period during such
extension period (each an "Extension Period"), provided that no Extension Period
shall end on a date other than an Interest Payment Date for the Debentures or
extend beyond the Maturity Date of the Debentures. As a consequence of such
deferral, Distributions will also be deferred. Notwithstanding such deferral,
semi-annual Distributions will continue to accumulate with interest thereon (to
the extent permitted by applicable law, but not at a rate exceeding the rate of
interest then accruing on the Debentures) at the Coupon Rate compounded
semi-annually during any such Extension Period. Prior to the termination of any
Extension Period, the Debenture Issuer may further defer payments of interest by
further extending such Extension Period; provided that such Extension Period,
together with all such previous and further extensions within such Extension
Period, may not (i) exceed 10 consecutive semi-annual periods, including the
first semi-annual period during such Extension Period, (ii) end on a date other
than an Interest Payment Date for the Debentures or (iii) extend beyond the
Maturity Date of the Debentures. Payments of accumulated Distributions will be
payable to Holders as they appear on the books and records of the Trust on the
record date immediately preceding the end of the Extension Period. Upon the
termination of any Extension Period and the payment of all amounts then due, the
Debenture Issuer may commence a new Extension Period, subject to the above
requirements.
Subject to receipt by the Sponsor of any and all required regulatory
approvals and to certain other conditions set forth in the Declaration and the
Indenture, the Property Trustee may, at the direction of the Sponsor, at any
time dissolve the Trust and cause, after satisfaction of liabilities to
creditors of the Trust as provided by applicable law, the Debentures to be
distributed to the Holders of the Securities in liquidation of the Trust or,
simultaneously with any redemption of the Debentures, cause a Like Amount of the
Securities to be redeemed by the Trust.
The Capital Securities shall be redeemable as provided in the Declaration.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital
Security Certificate to:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(Insert assignee's social security or tax identification number)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(Insert address and zip code of assignee)
and irrevocably appoints
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------- agent
to transfer this Capital Security Certificate on the books of the Trust. The
agent may substitute another to act for him or her.
Date:_____________________
Signature:
(Sign exactly as your name appears on the other side of this Capital Security
Certificate)
Signature Guarantee:
Signature must be guaranteed by an "eligible guarantor institution" that is
a bank, stockbroker, savings and loan association or credit union meeting the
requirements of the Registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
In connection with any transfer of any of the Capital Securities evidenced
by this Certificate, the undersigned confirms that such Capital Securities are
being:
CHECK ONE BOX BELOW
(1) |_| exchanged for the undersigned's own account without transfer; or
(2) |_| transferred pursuant to and in compliance with Rule 144A under the
Securities As of 1933, as amended; or
(3) |_| transferred to an institutional "accredited investor" within the
meaning of subparagraph (a)(1), (2), (3) or (7) of Rule 501 under the Securities
Act of 1933, as amended, that is acquiring the Capital Securities for its own
account, or for the account of such an institutional "accredited investor," for
investment purposes and not with a view to, or for offer or sale in connection
with, any distribution in violation of the Securities Act of 1933, as amended;
or
(4) |_| transferred pursuant to another available exemption from the
registration requirements of the Securities Act of 1933, as amended; or
(5) |_| transferred pursuant to an effective registration statement.
Unless one of the boxes is checked, the Registrar will refuse to register
any of the Capital Securities evidenced by this Certificate in the name of any
Person other than the Holder hereof; provided, however, that if box (3) or (4)
is checked, the Registrar may require, prior to registering any such transfer of
the Capital Securities, such legal opinions, certifications and other
information as the Trust has reasonably requested to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act of 1933, as amended, such as
the exemption provided by Rule 144 under such Act; provided, further, that (i)
if box (2) is checked, by acceptance of this Certificate, the transferee shall
be deemed to have certified that it is a "qualified institutional buyer" (as
defined in Rule 144A) acquiring the Capital Securities for its own account or
for the account of another QIB over which it exercises sole investment
discretion and that it is aware that the Holder is relying upon the exemption
from registration afforded by Rule 144A in respect of the Holder's transfer of
Capital Securities to it or (ii) if box (3) is checked, the transferee must also
provide to the Registrar a Transferee Letter of Representation in the form
attached to the Offering Memorandum of the Trust dated April 15, 1999; provided,
further, that after the date that a registration statement has been filed and so
long as such Registration Statement continues to be effective, only then may the
Registrar permit transfers for which box (5) has been checked.
Signature _______________________
SERIES B CAPITAL SECURITIES GUARANTEE AGREEMENT
PEOPLES BANCORP INC.
Dated as of _____________, 1999
TABLE OF CONTENTS
Page
ARTICLE I
DEFINITIONS AND INTERPRETATION
SECTION 1.1 Definitions and Interpretation............................2
------------------------------
ARTICLE II
TRUST INDENTURE ACT
SECTION 2.1 Trust Indenture Act; Application..........................5
--------------------------------
SECTION 2.2 Lists of Holders of Securities............................6
------------------------------
SECTION 2.3 Reports by the Capital Securities Guarantee Trustee.......6
---------------------------------------------------
SECTION 2.4 Periodic Reports to Capital Securities Guarantee Trustee..6
--------------------------------------------------------
SECTION 2.5 Evidence of Compliance with Conditions Precedent..........6
------------------------------------------------
SECTION 2.6 Waiver of Events of Default...............................7
---------------------------
SECTION 2.7 Notice of Events of Default...............................7
---------------------------
SECTION 2.8 Conflicting Interests.....................................7
---------------------
ARTICLE III
POWERS, DUTIES AND RIGHTS OF
CAPITAL SECURITIES GUARANTEE TRUSTEE
SECTION 3.1 Powers and Duties of the Capital Securities
Guarantee Trustee......................................8
-------------------------------------------
SECTION 3.2 Certain Rights of Capital Securities Guarantee Trustee...10
------------------------------------------------------
SECTION 3.3 Not Responsible for Recitals or Issuance of
Series B Capital Securities Guarantee..................12
-----------------------------------------------------
ARTICLE IV
CAPITAL SECURITIES GUARANTEE TRUSTEE
SECTION 4.1 Capital Securities Guarantee Trustee; Eligibility........12
-------------------------------------------------
SECTION 4.2 Appointment, Removal and Resignation of Capital Securities
Guarantee Trustee........................................13
ARTICLE V
GUARANTEE
SECTION 5.1 Guarantee................................................13
---------
SECTION 5.2 Waiver of Notice and Demand..............................14
---------------------------
SECTION 5.3 Obligations Not Affected.................................14
------------------------
SECTION 5.4 Rights of Holders........................................15
-----------------
SECTION 5.5 Guarantee of Payment.....................................15
--------------------
SECTION 5.6 Subrogation..............................................15
-----------
SECTION 5.7 Independent Obligations..................................16
-----------------------
ARTICLE VI
LIMITATION OF TRANSACTIONS; SUBORDINATION
SECTION 6.1 Limitation of Transactions...............................16
--------------------------
SECTION 6.2 Ranking..................................................17
-------
ARTICLE VII
TERMINATION
SECTION 7.1 Termination..............................................17
-----------
ARTICLE VIII
INDEMNIFICATION
SECTION 8.1 Exculpation..............................................17
-----------
SECTION 8.2 Compensation and Indemnification.........................18
--------------------------------
ARTICLE IX
MISCELLANEOUS
SECTION 9.1 Successors and Assigns...................................18
----------------------
SECTION 9.2 Amendments...............................................18
----------
SECTION 9.3 Notices..................................................19
-------
SECTION 9.4 Benefit..................................................20
-------
SECTION 9.5 Governing Law............................................20
-------------
- 20 -
CROSS REFERENCE TABLE
Section of Trust
Indenture Act of Section of Guarantee
1939, as amended Agreement
- ---------------- ---------
310(a) 4.1(a)
310(b) 4.1(c), 2.8
310(c) Inapplicable
311(a) 2.2(b)
311(b) 2.2(b)
311 (c) Inapplicable
312(a) 2.2(a)
312(b) 2.2(b)
313 2.3
314(a) 2.4
314(b) Inapplicable
314(c) 2.5
314(d) Inapplicable
314(e) 1.1, 2.5, 3.2
314(f) 2.1, 3.2
315(a) 3.1(d)
315(b) 2.7
315(c) 3.1(c)
315(d) 3.1(d)
315(e) Inapplicable
316(a) 1.1, 2.6, 5.4
316(b) 5.3
316(c) 9.2
317(a) Inapplicable
317(b) Inapplicable
318(a) 2.1(a)
318(b) Inapplicable
318(c) 2.1(b)
- -------------------------
* This Cross-Reference Table does not constitute part of this Guarantee
Agreement and shall not affect the interpretation of any of its terms or
provisions.
SERIES B CAPITAL SECURITIES GUARANTEE AGREEMENT
THIS SERIES B CAPITAL SECURITIES GUARANTEE AGREEMENT (the "Series B
Capital Securities Guarantee"), dated as of ________________, 1999, is executed
and delivered by PEOPLES BANCORP INC., an Ohio corporation (the "Guarantor"),
and WILMINGTON TRUST COMPANY, as trustee (the "Capital Securities Guarantee
Trustee" or "Trustee"), for the benefit of the Holders (as defined herein), from
time to time, of the Series B Capital Securities (as defined herein) of PEBO
Capital Trust I, a Delaware statutory business trust (the "Issuer").
WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"), dated as of April 20, 1999, by and among the trustees of the
Issuer named therein, the Guarantor, as sponsor, and the holders from time to
time of undivided beneficial interests in the assets of the Issuer, the Issuer
issued on April 20, 1999, 30,000 capital securities, having an aggregate
liquidation amount of $30,000,000, such capital securities being designated the
Series A 8.62% Capital Securities (collectively, the "Series A Capital
Securities"); and
WHEREAS, pursuant to an Exchange Offer (as defined in the Declaration),
the Issuer is issuing on the date hereof ________ capital securities, having an
aggregate liquidation amount of $________, such capital securities being
designated the Series B 8.62% Capital Securities (collectively, the "Series B
Capital Securities") in exchange for the same liquidation amount of Series A
Capital Securities; and
WHEREAS, as incentive for the Holders to exchange the Series B Capital
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Series B Capital Securities Guarantee, to pay the
Guarantee Payments (as defined below) to the Holders of the Series B Capital
Securities, and the Guarantor agrees to make certain other payments on the terms
and conditions set forth herein; and
WHEREAS, the Guarantor has executed and delivered guarantee agreements
(the "Series A Capital Securities Guarantee" and the "Common Securities
Guarantee") with substantially identical terms to this Series B Capital
Securities Guarantee, for the benefit of the holders of the Series A Capital
Securities and the Common Securities (as defined herein), respectively, except
that if an Event of Default (as defined in the Declaration) has occurred and is
continuing, the rights of holders of the Common Securities to receive Guarantee
Payments under the Common Securities Guarantee are subordinated, to the extent
and in the manner set forth in the Common Securities Guarantee, to the rights of
holders of Series A Capital Securities and the Series B Capital Securities to
receive Guarantee Payments under the Series A Capital Securities Guarantee and
this Series B Capital Securities Guarantee, as the case may be;
NOW, THEREFORE, in consideration of the purchase by each Holder which
purchase the Guarantor hereby acknowledges shall benefit the Guarantor, the
Guarantor executes and delivers this Series B Capital Securities Guarantee for
the benefit of the Holders.
ARTICLE I
DEFINITIONS AND INTERPRETATION
SECTION 1.1 Definitions and Interpretation
------------------------------
In this Series B Capital Securities Guarantee, unless the context
otherwise requires:
(a) capitalized terms used in this Series B Capital Securities Guarantee but not
defined in the preamble above have the respective meanings assigned to them in
this Section 1.1;
(b) terms defined in the Declaration as at the date of execution of this Series
B Capital Securities Guarantee have the same meaning when used in this Series B
Capital Securities Guarantee unless otherwise defined in this Series B Capital
Securities Guarantee,
(c) a term defined anywhere in this Series B Capital Securities Guarantee has
the same meaning throughout;
(d) all references to "the Series B Capital Securities Guarantee" or "this
Series B Capital Securities Guarantee" are to this Series B Capital Securities
Guarantee as modified, supplemented or amended from time to time;
(e) all references in this Series B Capital Securities Guarantee to Articles and
Sections are to Articles and Sections of this Series B Capital Securities
Guarantee, unless otherwise specified;
(f) a term defined in the Trust Indenture Act has the same meaning when used in
this Series B Capital Securities Guarantee, unless otherwise defined in this
Series B Capital Securities Guarantee or unless the context otherwise requires;
and
(g) a reference to the singular includes the plural and vice versa.
"Affiliate" has the same meaning as given to that term in Rule 405
under the Securities Act of 1933, as amended, or any successor
rule thereunder.
"Business Day" shall mean any day other than a Saturday or a Sunday, or
a day on which banking institutions in New York, New York or Marietta, Ohio are
authorized or required by law or executive order to close.
"Capital Securities Guarantee Trustee" shall mean Wilmington Trust
Company, until a Successor Capital Securities Guarantee Trustee has been
appointed and has accepted such appointment pursuant to the provisions of this
Series B Capital Securities Guarantee and thereafter means each such Successor
Capital Securities Guarantee Trustee.
"Common Securities" shall mean the securities representing common
undivided beneficial interests in the assets of the Issuer.
"Corporate Trust Office" shall mean the office of the Capital
Securities Guarantee Trustee at which the corporate trust business of the
Capital Securities Guarantee Trustee shall, at any particular time, be
principally administered, which office at the date of execution of this
Agreement is located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration.
"Covered Person" shall mean any Holder or beneficial owner of Series B
Capital Securities.
"Debentures" shall mean the series of subordinated debt securities of
the Guarantor designated the Series B 8.62% Junior Subordinated Deferrable
Interest Debentures due May 1, 2029, held by the Property Trustee (as defined in
the Declaration) of the Issuer.
"Event of Default" shall mean a default by the Guarantor on any of its
payment or other obligations under this Series B Capital Securities Guarantee;
provided, however, that, except with respect to default in respect of any
Guarantee Payment, no default by the Guarantor hereunder shall constitute an
Event of Default unless the Guarantor shall have received written notice of the
default and shall not have cured such default within 60 days after receipt
thereof.
"Guarantee Payments" shall mean the following payments or
distributions, without duplication, with respect to the Series B Capital
Securities, to the extent not paid or made by or on behalf of the Issuer: (i)
any accumulated and unpaid Distributions (as defined in the Declaration) that
are required to be paid on such Series B Capital Securities, to the extent the
Issuer has funds legally available therefor at such time, (ii) the redemption
price, including all accumulated and unpaid Distributions to the date of
redemption (the "Redemption Price"), to the extent the Issuer has funds legally
available therefor at such time, with respect to any Series B Capital Securities
called for redemption by the Issuer, and (iii) upon a voluntary or involuntary
dissolution, winding up or liquidation of the Issuer (other than in connection
with the distribution of Debentures to the Holders in exchange for Series B
Capital Securities or in connection with the redemption of the Series B Capital
Securities, in each case as provided in the Declaration), the lesser of (a) the
aggregate of the liquidation amount and all accumulated and unpaid Distributions
on the Series B Capital Securities to the date of payment, to the extent the
Issuer has funds legally available therefor at such time, and (b) the amount of
assets of the Issuer remaining available for distribution to Holders after
satisfaction of liabilities to creditors of the Issuer as required by applicable
law (in either case, the "Liquidation Distribution"). If an Event of Default has
occurred and is continuing, no Guarantee Payments under the Common Securities
Guarantee with respect to the Common Securities or any guarantee payment under
the Common Securities Guarantee or any Other Common Securities Guarantee shall
be made until the Holders of Series B Capital Securities shall be paid in full
the Guarantee Payments to which they are entitled under this Series B Capital
Securities Guarantee.
"Holder" shall mean any holder, as registered on the books and records
of the Issuer, of any Series B Capital Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Series B Capital
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor or any Person actually known to a Responsible
Officer of the Capital Securities Guarantee Trustee to be an Affiliate of the
Guarantor.
"Indemnified Person" shall mean the Capital Securities Guarantee
Trustee (including in its individual capacity), any Affiliate of the Capital
Securities Guarantee Trustee, or any officers, directors, shareholders, members,
partners, employees, representatives, nominees, custodians or agents of the
Capital Securities Guarantee Trustee.
"Indenture" shall mean the Indenture, dated as of April 20, 1999,
between Peoples Bancorp Inc., as issuer of the Debentures (the "Debenture
Issuer"), and Wilmington Trust Company, as debenture trustee (the "Debenture
Trustee"), pursuant to which the Debentures are to be issued to the Property
Trustee of the Issuer.
"Majority in Liquidation Amount of the Series B Capital Securities"
shall mean, except as provided by the Trust Indenture Act, a vote by Holder(s)
of Series B Capital Securities, voting separately as a class, of more than 50%
of the aggregate liquidation amount (including the amount that would be paid on
redemption, liquidation or otherwise, plus accumulated and unpaid Distributions
to the date upon which the voting percentages are determined) of all outstanding
Series B Capital Securities.
"Officer's Certificate" shall mean, with respect to any person, a
certificate signed by the chairman, a vice chairman, the chief executive
officer, the president, an executive or senior vice president, a vice president,
the chief financial officer, the treasurer or an assistant treasurer, or the
controller of the Guarantor. Any Officer's Certificate delivered with respect to
compliance with a condition or covenant provided for in this Series B Capital
Securities Guarantee shall include:
(a) a statement that each officer signing the Officer's Certificate has
read the covenant or condition and the definitions relating thereto;
(b) a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and
(c) a statement as to whether, in the opinion of each such officer,
such condition or covenant has been complied with.
"Other Common Securities Guarantees" shall have the same meaning as
"Other Guarantees" in the Common Securities Guarantee.
"Other Debentures" shall mean all junior subordinated debentures, other
than the Debentures and the Series A Securities (as defined in the Indenture),
issued by the Guarantor from time to time and sold to trusts other than the
Issuer to be established by the Guarantor (if any), in each case similar to the
Issuer.
"Other Guarantees" shall mean all guarantees, other than this Series B
Capital Securities Guarantee and the Series A Capital Securities Guarantee, to
be issued by the Guarantor with respect to capital securities (if any) similar
to the Series B Capital Securities issued by trusts other than the Issuer to be
established by the Guarantor (if any), in each case similar to the Issuer.
"Person" shall mean 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.
"Registration Rights Agreement" means the Registration Rights
Agreement, dated as of April 20, 1999, by and among the Guarantor, the Issuer
and the Initial Purchaser named therein as such agreement may be amended,
modified or supplemented from time to time.
"Responsible Officer" shall mean, with respect to the Capital
Securities Guarantee Trustee, any officer assigned to the Corporate Trust
Office, including any managing director, principal, vice president, assistant
vice president, assistant treasurer, assistant secretary or any other officer of
the Capital Securities Guarantee Trustee customarily performing functions
similar to those performed by any of the above designated officers and having
direct responsibility for the administration of this Series B Capital Securities
Guarantee, and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.
"Successor Capital Securities Guarantee Trustee" shall mean a successor
Capital Securities Guarantee Trustee possessing the qualifications to act as
Capital Securities Guarantee Trustee under Section 4.1.
"Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended.
"Trust Securities" shall mean the Common Securities and the Series B
Capital Securities and Series A Capital Securities, collectively.
ARTICLE II
TRUST INDENTURE ACT
SECTION 2.1 Trust Indenture Act; Application
--------------------------------
(a) This Series B Capital Securities Guarantee is subject to the
provisions of the Trust Indenture Act that are required to be part of this
Series B Capital Securities Guarantee and shall, to the extent applicable, be
governed by such provisions.
(b) If and to the extent that any provision of this Series B Capital
Securities Guarantee limits, qualifies or conflicts with the duties imposed by
Section 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties
shall control.
SECTION 2.2 Lists of Holders of Securities
------------------------------
(a) The Guarantor shall provide the Capital Securities Guarantee
Trustee (unless the Capital Securities Guarantee Trustee is otherwise the
registrar of the Series B Capital Securities) with a list, in such form as the
Capital Securities Guarantee Trustee may reasonably require, of the names and
addresses of the Holders of the Series B Capital Securities ("List of Holders")
as of such date, (i) within fourteen (14) days after each record date for
payment of Distributions, and (ii) at any other time within 30 days of receipt
by the Guarantor of a written request for a List of Holders as of a date no more
than 14 days before such List of Holders is given to the Capital Securities
Guarantee Trustee; provided, however, that the Guarantor shall not be obligated
to provide such List of Holders at any time the List of Holders does not differ
from the most recent List of Holders given to the Capital Securities Guarantee
Trustee by the Guarantor. The Capital Securities Guarantee Trustee may destroy
any List of Holders previously given to it on receipt of a new List of Holders.
(b) The Capital Securities Guarantee Trustee shall comply with its
obligations under Sections 31l(a), 31l(b) and Section 312(b) of the Trust
Indenture Act.
SECTION 2.3 Reports by the Capital Securities Guarantee Trustee
---------------------------------------------------
Within 60 days after May 31 of each year, commencing May 31, 2000, the
Capital Securities Guarantee Trustee shall provide to the Holders of the Series
B Capital 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 Capital Securities Guarantee Trustee shall also
comply with the requirements of Section 313(d) of the Trust Indenture Act.
SECTION 2.4 Periodic Reports to Capital Securities Guarantee Trustee
--------------------------------------------------------
The Guarantor shall provide to the Capital Securities Guarantee Trustee
such documents, reports and information as are 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. Delivery of such reports, information and documents to the
Capital Securities Guarantee Trustee is for informational purposes only and the
Capital Securities Guarantee Trustee's receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Guarantor's compliance with any of
its covenants hereunder (as to which the Capital Securities Guarantee Trustee is
entitled to rely exclusively on Officer's Certificates).
SECTION 2.5 Evidence of Compliance with Conditions Precedent
------------------------------------------------
The Guarantor shall provide to the Capital Securities Guarantee Trustee
such evidence of compliance with the conditions precedent, if any, provided for
in this Series B Capital Securities Guarantee 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 Officer's Certificate.
SECTION 2.6 Waiver of Events of Default
---------------------------
The Holders of a Majority in Liquidation Amount of Series B Capital
Securities may, by vote, on behalf of the Holders of all of the Series B Capital
Securities, waive any past Event of Default and its consequences. Upon such
waiver, any such Event of Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Series B Capital Securities Guarantee, but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.
SECTION 2.7 Notice of Events of Default
---------------------------
(a) The Capital Securities Guarantee Trustee shall, within 10 Business
Days after the occurrence of an Event of Default with respect to this Series B
Capital Securities Guarantee actually known to a Responsible Officer of the
Capital Securities Guarantee Trustee, transmit by mail, first class postage
prepaid, to all Holders of the Series B Capital Securities, notices of all such
Events of Default, unless such Events of Default have been cured before the
giving of such notice; provided, that, except in the case of an Event of Default
arising from the non-payment of any Guarantee Payment, the Capital Securities
Guarantee Trustee shall be protected in withholding such notice if and so long
as a Responsible Officer of the Capital Securities Guarantee Trustee in good
faith determines that the withholding of such notice is in the interests of the
Holders of the Series B Capital Securities.
(b) The Capital Securities Guarantee Trustee shall not be deemed to
have knowledge of any Event of Default unless the Capital Securities Guarantee
Trustee shall have received written notice, or a Responsible Officer of the
Capital Securities Guarantee Trustee charged with the administration of the
Declaration shall have obtained actual knowledge, of such Event of Default.
SECTION 2.8 Conflicting Interests
---------------------
The Declaration shall be deemed to be specifically described in this
Series B Capital Securities Guarantee for the purposes of clause (i) of the
first proviso contained in Section 310(b) of the Trust Indenture Act.
ARTICLE III
POWERS, DUTIES AND RIGHTS OF
CAPITAL SECURITIES GUARANTEE TRUSTEE
SECTION 3.1 Powers and Duties of the Capital Securities Guarantee
Trustee
-----------------------------------------------------
(a) This Series B Capital Securities Guarantee shall be held by the
Capital Securities Guarantee Trustee for the benefit of the Holders of the
Series B Capital Securities, and the Capital Securities Guarantee Trustee shall
not transfer this Series B Capital Securities Guarantee to any Person except a
Holder of Series B Capital Securities exercising his, her or its rights pursuant
to Section 5.4(b) or to a Successor Capital Securities Guarantee Trustee on
acceptance by such Successor Capital Securities Guarantee Trustee of its
appointment to act as Successor Capital Securities Guarantee Trustee. The right,
title and interest of the Capital Securities Guarantee Trustee shall
automatically vest in any Successor Capital Securities Guarantee Trustee, and
such vesting and succession of title shall be effective whether or not
conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Capital Securities Guarantee Trustee.
(b) If an Event of Default actually known to a Responsible Officer of
the Capital Securities Guarantee Trustee has occurred and is continuing, the
Capital Securities Guarantee Trustee shall enforce this Series B Capital
Securities Guarantee for the benefit of the Holders of the Series B Capital
Securities.
(c) The Capital Securities Guarantee Trustee, before the occurrence of
any Event of Default (of which, other than in the case of Events of Default
under Sections 5.01(a) and 5.01(b) of the Indenture, a Responsible Officer of
the Property Trustee has actual knowledge) and after the curing of all such
Events of Default that may have occurred, shall undertake to perform only such
duties as are specifically set forth in this Series B Capital Securities
Guarantee, and no implied covenants or obligations shall be read into this
Series B Capital Securities Guarantee against the Capital Securities Guarantee
Trustee. In case an Event of Default has occurred (that has not been cured or
waived pursuant to Section 2.6) and is actually known to a Responsible Officer
of the Capital Securities Guarantee Trustee, the Capital Securities Guarantee
Trustee shall exercise such of the rights and powers vested in it by this Series
B Capital Securities Guarantee, and use the same degree of care and skill in its
exercise thereof, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.
(d) No provision of this Series B Capital Securities Guarantee shall be
construed to relieve the Capital Securities Guarantee Trustee from liability for
its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:
(i) prior to the occurrence of any Event of Default (of which,
other than in the case of Events of Default under Sections 5.01(a) and
5.01(b) of the Indenture, a Responsible Officer of the Property Trustee
has actual knowledge) and after the curing or waiving of all such
Events of Default that may have occurred:
(A) the duties and obligations of the Capital Securities
Guarantee Trustee shall be determined solely by the express provisions
of this Series B Capital Securities Guarantee, and the Capital
Securities Guarantee Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set
forth in this Series B Capital Securities Guarantee, and no implied
covenants or obligations shall be read into this Series B Capital
Securities Guarantee against the Capital Securities Guarantee Trustee;
and
(B) in the absence of bad faith on the part of the Capital
Securities Guarantee Trustee, the Capital Securities Guarantee Trustee
may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or
opinions furnished to the Capital Securities Guarantee Trustee and
conforming to the requirements of this Series B Capital Securities
Guarantee; provided, however, that in the case of any such certificates
or opinions that by any provision hereof are specifically required to
be furnished to the Capital Securities Guarantee Trustee, the Capital
Securities Guarantee Trustee shall be under a duty to examine the same
to determine whether or not on their face they conform to the
requirements of this Series B Capital Securities Guarantee;
(ii) the Capital Securities Guarantee Trustee shall not be
liable for any error of judgment made in good faith by a Responsible
Officer of the Capital Securities Guarantee Trustee, unless it shall be
proved that the Capital Securities Guarantee Trustee or such
Responsible Officer was negligent in ascertaining the pertinent facts
upon which such judgment was made;
(iii) the Capital Securities Guarantee Trustee shall not be
liable with respect to any action taken or omitted to be taken by it in
good faith in accordance with the direction of the Holders of a
Majority in Liquidation Amount of the Series B Capital Securities
relating to the time, method and place of conducting any proceeding for
any remedy available to the Capital Securities Guarantee Trustee, or
exercising any trust or power conferred upon the Capital Securities
Guarantee Trustee under this Series B Capital Securities Guarantee; and
(iv) no provision of this Series B Capital Securities
Guarantee shall require the Capital Securities Guarantee Trustee to
expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of
any of its rights or powers, if the Capital Securities Guarantee
Trustee shall have reasonable grounds for believing that the repayment
of such funds or liability is not reasonably assured to it under the
terms of this Series B Capital Securities Guarantee or indemnity,
reasonably satisfactory to the Capital Securities Guarantee Trustee,
against such risk or liability is not reasonably assured to it.
SECTION 3.2 Certain Rights of Capital Securities Guarantee Trustee
------------------------------------------------------
(a) Subject to the provisions of Section 3.1:
(i) the Capital Securities Guarantee 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 Guarantor contemplated by
this Series B Capital Securities Guarantee may be sufficiently
evidenced by an Officer's Certificate;
(iii) whenever, in the administration of this Series B Capital
Securities Guarantee, the Capital Securities Guarantee Trustee shall
deem it desirable that a matter be proved or established before taking,
suffering or omitting any action hereunder, the Capital Securities
Guarantee Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and
conclusively rely upon an Officer's Certificate, which, upon receipt of
such request, shall be promptly delivered by the Guarantor;
(iv) the Capital Securities Guarantee Trustee shall have no
duty to see to any recording, filing or registration of any instrument
or other document (or any rerecording, refiling or registration
thereof);
(v) the Capital Securities Guarantee Trustee may consult with
counsel of its selection, and the advice or opinion of such counsel
with respect to legal matters 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; and such counsel may be counsel to the Guarantor or any of its
Affiliates and may include any of its employees. The Capital Securities
Guarantee Trustee shall have the right at any time to seek instructions
concerning the administration of this Series B Capital Securities
Guarantee from any court of competent jurisdiction;
(vi) the Capital Securities Guarantee Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by
this Series B Capital Securities Guarantee at the request or direction
of any Holder, unless such Holder shall have provided to the Capital
Securities Guarantee Trustee such security and indemnity, reasonably
satisfactory to the Capital Securities Guarantee Trustee, against the
costs, expenses (including attorneys' fees and expenses and the
expenses of the Capital Securities Guarantee 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 Capital Securities Guarantee
Trustee, provided, however, that nothing contained in this Section
3.2(a)(vi) shall be taken to relieve the Capital Securities Guarantee
Trustee, upon the occurrence of an Event of Default, of its obligation
to exercise the rights and powers vested in it by this Series B Capital
Securities Guarantee;
(vii) the Capital Securities Guarantee Trustee shall have no
obligation 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
Capital Securities Guarantee Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may
see fit;
(viii) the Capital Securities Guarantee Trustee may, at the
expense of the Guarantor, execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through
agents, nominees, custodians or attorneys, and the Capital Securities
Guarantee Trustee shall not be responsible for any misconduct or
negligence on the part of any such person appointed with due care by it
hereunder;
(ix) any action taken by the Capital Securities Guarantee
Trustee or its agents hereunder shall bind the Holders of the Series B
Capital Securities, and the signature of the Capital Securities
Guarantee 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 Capital Securities Guarantee Trustee
to so act or as to its compliance with any of the terms and provisions
of this Series B Capital Securities Guarantee, both of which shall be
conclusively evidenced by the Capital Securities Guarantee Trustee's or
its agent's taking such action;
(x) whenever in the administration of this Series B Capital
Securities Guarantee the Capital Securities Guarantee Trustee shall
deem it desirable to receive instructions with respect to enforcing any
remedy or right or taking any other action hereunder, the Capital
Securities Guarantee Trustee (i) may request instructions from the
Holders of a Majority in Liquidation Amount of the Series B Capital
Securities, (ii) may refrain from enforcing such remedy or right or
taking such other action until such instructions are received, and
(iii) shall be protected in conclusively relying on or acting in
accordance with such instructions; and
(xi) the Capital Securities Guarantee Trustee shall not be
liable for any action taken, suffered, or omitted to be taken by it in
good faith, without negligence, and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon
it by this Series B Capital Securities Guarantee.
(b) No provision of this Series B Capital Securities Guarantee shall be
deemed to impose any duty or obligation on the Capital Securities Guarantee
Trustee to perform any act or acts or exercise any right, power, duty or
obligation conferred or imposed on it in any jurisdiction in which it shall be
illegal, or in which the Capital Securities Guarantee Trustee shall be
unqualified or incompetent in accordance with applicable law, to perform any
such act or acts or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Capital Securities Guarantee
Trustee shall be construed to be a duty.
SECTION 3.3 Not Responsible for Recitals or Issuance of Series B
Capital Securities Guarantee
----------------------------------------------------
The recitals contained in this Series B Capital Securities Guarantee
shall be taken as the statements of the Guarantor, and the Capital Securities
Guarantee Trustee does not assume any responsibility for their correctness. The
Capital Securities Guarantee Trustee makes no representation as to the validity
or sufficiency of this Series B Capital Securities Guarantee.
ARTICLE IV
CAPITAL SECURITIES GUARANTEE TRUSTEE
SECTION 4.1 Capital Securities Guarantee Trustee; Eligibility
-------------------------------------------------
(a) There shall at all times be a Capital Securities Guarantee Trustee
that shall
(i) not be an Affiliate of the Guarantor; and
(ii) be a corporation or other Person 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
other Person permitted by the Securities and Exchange Commission to act
as an indenture trustee under the Trust Indenture Act, authorized under
such laws to exercise corporate trust powers, having a combined capital
and surplus of at least 10 million U.S. dollars ($10,000,000), and
subject to supervision or examination by federal, state, territorial or
District of Columbia authority; it being understood that if such
corporation or other Person 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 4.1(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 Capital Securities Guarantee Trustee shall cease
to be eligible to so act under Section 4.1(a), the Capital Securities Guarantee
Trustee shall immediately resign in the manner and with the effect set out in
Section 4.2(c).
(c) If the Capital Securities Guarantee Trustee has or shall acquire
any "conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Capital Securities Guarantee Trustee and Guarantor shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.
SECTION 4.2 Appointment, Removal and Resignation of Capital Securities
Guarantee Trustee
----------------------------------------------------------
(a) Subject to Section 4.2(b), the Capital Securities Guarantee Trustee
may be appointed or removed without cause at any time by the Guarantor except
during an Event of Default.
(b) The Capital Securities Guarantee Trustee shall not be removed in
accordance with Section 4.2(a) until a Successor Capital Securities Guarantee
Trustee has been appointed and has accepted such appointment by written
instrument executed by such Successor Capital Securities Guarantee Trustee and
delivered to the Guarantor.
(c) The Capital Securities Guarantee Trustee shall hold office until a
Successor Capital Securities Guarantee Trustee shall have been appointed or
until its removal or resignation. The Capital Securities Guarantee Trustee may
resign from office (without need for prior or subsequent accounting) by an
instrument in writing executed by the Capital Securities Guarantee Trustee and
delivered to the Guarantor, which resignation shall not take effect until a
Successor Capital Securities Guarantee Trustee has been appointed and has
accepted such appointment by instrument in writing executed by such Successor
Capital Securities Guarantee Trustee and delivered to the Guarantor and the
resigning Capital Securities Guarantee Trustee.
(d) If no Successor Capital Securities Guarantee Trustee shall have
been appointed and accepted appointment as provided in this Section 4.2 within
60 days after delivery of an instrument of removal or resignation, the Capital
Securities Guarantee Trustee resigning or being removed may petition any court
of competent jurisdiction for appointment of a Successor Capital Securities
Guarantee Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a Successor Capital Securities Guarantee
Trustee.
(e) No Capital Securities Guarantee Trustee shall be liable for the
acts or omissions to act of any Successor Capital Securities Guarantee Trustee.
(f) Upon termination of this Series B Capital Securities Guarantee or
removal or resignation of the Capital Securities Guarantee Trustee pursuant to
this Section 4.2, the Guarantor shall pay to the Capital Securities Guarantee
Trustee all amounts due to the Capital Securities Guarantee Trustee accrued to
the date of such termination, removal or resignation.
ARTICLE V
GUARANTEE
SECTION 5.1 Guarantee
---------
The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by the Issuer), as and when due, regardless of any defense, right of
set-off or counterclaim that the Issuer may have or assert. The Guarantor's
obligation to make a Guarantee Payment may be satisfied by direct payment of the
required amounts by the Guarantor to the Holders or by causing the Issuer to pay
such amounts to the Holders.
SECTION 5.2 Waiver of Notice and Demand
---------------------------
The Guarantor hereby waives notice of acceptance of this Series B
Capital Securities Guarantee and of any liability to which it applies or may
apply, presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.
SECTION 5.3 Obligations Not Affected
------------------------
The obligations, covenants, agreements and duties of the Guarantor
under this Series B Capital Securities Guarantee shall in no way be affected or
impaired by reason of the happening from time to time of any of the following:
(a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Series B Capital Securities to be
performed or observed by the Issuer;
(b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Series B Capital Securities or the
extension of time for the performance of any other obligation under, arising out
of, or in connection with, the Series B Capital Securities (other than an
extension of time for payment of Distributions, Redemption Price, Liquidation
Distribution or other sum payable that results from the extension of any
interest payment period on the Debentures permitted by the Indenture);
(c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Series B Capital
Securities, or any action on the part of the Issuer granting indulgence or
extension of any kind;
(d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;
(e) any invalidity of, or defect or deficiency in, the Series B
Capital Securities;
(f) the settlement or compromise of any obligation guaranteed hereby
or hereby incurred; or
(g) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor;
it being the intent of this Section 5.3 that the obligations of the Guarantor
with respect to the Guarantee Payments shall be absolute and unconditional under
any and all circumstances.
There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.
SECTION 5.4 Rights of Holders
-----------------
(a) The Holders of a Majority in Liquidation Amount of the Series B
Capital Securities have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Capital Securities
Guarantee Trustee in respect of this Series B Capital Securities Guarantee or
exercising any trust or power conferred upon the Capital Securities Guarantee
Trustee under this Series B Capital Securities Guarantee.
(b) If the Capital Securities Guarantee Trustee fails to enforce such
Series B Capital Securities Guarantee, any Holder of Series B Capital Securities
may institute a legal proceeding directly against the Guarantor to enforce the
Capital Securities Guarantee Trustee's rights under this Series B Capital
Securities Guarantee, without first instituting a legal proceeding against the
Issuer, the Capital Securities Guarantee Trustee or any other person or entity.
The Guarantor waives any right or remedy to require that any action be brought
first against the Issuer or any other person or entity before proceeding
directly against the Guarantor.
SECTION 5.5 Guarantee of Payment
--------------------
This Series B Capital Securities Guarantee creates a guarantee of
payment and not of collection.
SECTION 5.6 Subrogation
-----------
The Guarantor shall be subrogated to all (if any) rights of the Holders
of Series B Capital Securities against the Issuer in respect of any amounts paid
to such Holders by the Guarantor under this Series B Capital Securities
Guarantee; provided, however, that the Guarantor shall not (except to the extent
required by mandatory provisions of law) be entitled to enforce or exercise any
right that it may acquire by way of subrogation or any indemnity, reimbursement
or other agreement, in all cases as a result of payment under this Series B
Capital Securities Guarantee, if, at the time of any such payment, any amounts
are due and unpaid under this Series B Capital Securities Guarantee. If any
amount shall be paid to the Guarantor in violation of the preceding sentence,
the Guarantor agrees to hold such amount in trust for the Holders and to pay
over such amount to the Holders.
SECTION 5.7 Independent Obligations
-----------------------
The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Series B
Capital Securities, and that the Guarantor shall be liable as principal and as
debtor hereunder to make Guarantee Payments pursuant to the terms of this Series
B Capital Securities Guarantee notwithstanding the occurrence of any event
referred to in subsections (a) through (g), inclusive, of Section 5.3 hereof.
ARTICLE VI
LIMITATION OF TRANSACTIONS; SUBORDINATION
SECTION 6.1 Limitation of Transactions
--------------------------
So long as any Series B Capital Securities remain outstanding, the
Guarantor shall not (i) declare or pay any dividends or distributions on, or
redeem, purchase, acquire, or make a liquidation payment with respect to, any of
the Guarantor's capital stock, (ii) make any payment of principal of or interest
or premium, if any, on or repay, repurchase or redeem any debt securities of the
Guarantor (including Other Debentures) that rank pari passu with or junior in
right of payment to the Debentures or (iii) make any guarantee payments with
respect to any guarantee by the Guarantor of the debt securities of any direct
or indirect subsidiary of the Guarantor (including Other Guarantees) if such
guarantee ranks pari passu with or junior in right of payment to the Debentures
(other than (a) dividends or distributions in shares of, or options, warrants,
rights to subscribe for or purchase common shares of the Guarantor; (b) any
declaration of a dividend in connection with the implementation of a
shareholders' rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto; (c)
payments under this Series B Capital Securities Guarantee and the Series A
Capital Securities Guarantee; (d) as a result of a reclassification of the
Guarantor's capital stock or the exchange or the conversion of one class or
series of the Guarantor's capital stock for another class or series of the
Guarantor's capital stock; (e) the purchase of fractional interests in shares of
the Guarantor's capital stock pursuant to the conversion or exchange provisions
of such capital stock or the security being converted or exchanged or pursuant
to a merger, consolidation or other business combination; and (f) purchases of
common shares related to the issuance of common shares or rights under any of
the Guarantor's benefit or compensation plans for directors, officers or
employees of Guarantor and its subsidiaries or the Guarantor's dividend
reinvestment plan) if at the time of the action described in (i), (ii) or (iii)
above (l) there shall have occurred any default of which the Guarantor has
actual knowledge that (A) is, or with the giving of notice or the lapse of time,
or both, would be, an Event of Default and (B) in respect of which the Guarantor
shall not have taken reasonable steps to cure, (2) if such Debentures are held
by the Property Trustee, the Guarantor shall be in default with respect to its
payment of any obligations under this Series B Capital Securities Guarantee or
(3) the Guarantor shall have given notice of its election of the exercise of its
right to commence an Extended Interest Payment Period as provided in the
Indenture and shall not have rescinded such notice, and such Extended Interest
Payment Period, or an extension thereof, shall have commenced and be continuing.
SECTION 6.2 Ranking
-------
This Series B Capital Securities Guarantee will constitute an unsecured
obligation of the Guarantor and will rank (i) subordinate and junior in right of
payment to Senior Indebtedness (as defined in the Indenture), to the same extent
and in the same manner that the Debentures are subordinated to Senior
Indebtedness pursuant to the Indenture, it being understood that the terms of
Article XV of the Indenture shall apply to the obligations of the Guarantor
under this Series B Capital Securities Guarantee as if such Article XV were set
forth herein in full, (ii) pari passu with the Debentures, the Series A Capital
Securities, Other Debentures, the Series A Capital Securities Guarantee, the
Common Securities Guarantee, any Other Common Securities Guarantee and any Other
Guarantee, and (iii) senior to the Guarantor's capital stock.
ARTICLE VII
TERMINATION
SECTION 7.1 Termination
-----------
This Series B Capital Securities Guarantee shall terminate (i) upon
full payment of the Redemption Price (as defined in the Declaration) of all
Series B Capital Securities, or (ii) upon liquidation of the Issuer, the full
payment of the amounts payable in accordance with the Declaration or the
distribution of the Debentures to the Holders and the holders of Common
Securities. Notwithstanding the foregoing, this Series B Capital Securities
Guarantee will continue to be effective or will be reinstated, as the case may
be, if at any time any Holder must restore payment of any sums paid under the
Series B Capital Securities or under this Series B Capital Securities Guarantee.
ARTICLE VIII
INDEMNIFICATION
SECTION 8.1 Exculpation
-----------
(a) No Indemnified Person shall be liable, responsible or accountable
in damages or otherwise to the Guarantor 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 in accordance with this Series B
Capital Securities Guarantee and in a manner that such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such
Indemnified Person by this Series B Capital Securities Guarantee 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 negligence or willful
misconduct with respect to such acts or omissions.
(b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor 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 Guarantor, 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 might properly be paid.
SECTION 8.2 Compensation and Indemnification
--------------------------------
The Guarantor agrees to pay to the Capital Securities Guarantee Trustee
such compensation for its services as shall be mutually agreed upon by the
Guarantor and the Capital Securities Guarantee Trustee. The Guarantor shall
reimburse the Capital Securities Guarantee Trustee upon request for all
reasonable out-of-pocket expenses incurred by it, including the reasonable
compensation and expenses of the Capital Securities Guarantee Trustee's agents
and counsel, except any expense as may be attributable to the negligence or bad
faith of the Capital Securities Guarantee Trustee.
The Guarantor agrees to indemnify each Indemnified Person for, and to
hold each Indemnified Person harmless against, any and all loss, liability,
damage, claim or expense incurred without negligence or bad faith 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 8.2 shall survive the termination of this Series B Capital Securities
Guarantee and shall survive the resignation or removal of the Capital Securities
Guarantee Trustee.
ARTICLE IX
MISCELLANEOUS
SECTION 9.1 Successors and Assigns
----------------------
All guarantees and agreements contained in this Series B Capital
Securities Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Series B Capital Securities then outstanding.
SECTION 9.2 Amendments
----------
Except with respect to any changes that do not materially adversely
affect the rights of Holders (in which case no consent of such Holders will be
required), this Series B Capital Securities Guarantee may only be amended with
the prior approval of the Holders of a Majority in Liquidation Amount of the
Series B Capital Securities. The provisions of Section 12.2 of the Declaration
with respect to meetings of Holders of the Trust Securities apply to the giving
of such approval. This Series B Capital Securities Guarantee may not be amended,
and no amendment hereof that affects the Capital Securities Guarantee Trustee's
rights, duties or immunities hereunder or otherwise, shall be effective, unless
such amendment is executed by the Capital Securities Guarantee Trustee (which
shall have no obligation to execute any such amendment, but may do so in its
sole discretion).
SECTION 9.3 Notices
-------
All notices provided for in this Series B Capital Securities Guarantee
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:
(a) If given to the Issuer, in care of the Administrative Trustee at
the Issuer's mailing address set forth below (or such other address as the
Issuer may give notice of to the Capital Securities Guarantee Trustee and the
Holders):
PEBO Capital Trust I
c/o Peoples Bancorp Inc.
138 Putnam Street
P.O. Box 738
Marietta, Ohio 45750-0738
Attention: Charles R. Hunsaker
Telecopy: (740) 376-7277
Telephone: (740) 374-6109
(b) If given to the Capital Securities Guarantee Trustee, at the
Capital Securities Guarantee Trustee's mailing address set forth below (or such
other address as the Capital Securities Guarantee Trustee may give notice of to
the Guarantor and the Holders):
Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890-0001
Attention: Corporate Trust Administration
Telecopy: (302) 651-8882
Telephone: (302) 651-1000
(c) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Capital Securities Guarantee Trustee and the Holders):
Peoples Bancorp Inc.
138 Putnam Street
P.O. Box 738
Marietta, Ohio 45750-0738
Attention: Charles R. Hunsaker
Telecopy: (740) 376-7277
Telephone: (740) 374-6109
(d) If given to any Holder, at the address set forth on the books and
records of the Issuer.
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 9.4 Benefit
-------
This Series B Capital Securities Guarantee is solely for the benefit of
the Holders of the Series B Capital Securities and, subject to Section 3.1(a),
is not separately transferable from the Series B Capital Securities.
SECTION 9.5 Governing Law
-------------
THIS SERIES B CAPITAL SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.
This Series B Capital Securities Guarantee is executed as of the day
and year first above written.
PEOPLES BANCORP INC.,
as Guarantor
By: /s/ ROBERT E.EVANS
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Robert E. Evans
President and Chief Executive Officer
WILMINGTON TRUST COMPANY,
as Capital Securities Guarantee Trustee
By: /S/ NORMA P. CLOSS
Norma P. Closs
Vice President
SERIES A CAPITAL SECURITIES GUARANTEE AGREEMENT
PEOPLES BANCORP INC.
Dated as of April 20, 1999
TABLE OF CONTENTS
Page
ARTICLE I
DEFINITIONS AND INTERPRETATION
SECTION 1.1 Definitions and Interpretation................................2
------------------------------
ARTICLE II
TRUST INDENTURE ACT
SECTION 2.1 Trust Indenture Act; Application..............................5
--------------------------------
SECTION 2.2 Lists of Holders of Securities................................6
------------------------------
SECTION 2.3 Reports by the Capital Securities Guarantee Trustee...........6
---------------------------------------------------
SECTION 2.4 Periodic Reports to Capital Securities Guarantee Trustee......6
--------------------------------------------------------
SECTION 2.5 Evidence of Compliance with Conditions Precedent..............6
------------------------------------------------
SECTION 2.6 Waiver of Events of Default...................................7
---------------------------
SECTION 2.7 Notice of Events of Default...................................7
---------------------------
SECTION 2.8 Conflicting Interests.........................................7
---------------------
ARTICLE III
POWERS, DUTIES AND RIGHTS OF
CAPITAL SECURITIES GUARANTEE TRUSTEE
SECTION 3.1 Powers and Duties of the Capital Securities Guarantee Trustee..7
-------------------------------------------------------------
SECTION 3.2 Certain Rights of Capital Securities Guarantee Trustee.........9
------------------------------------------------------
SECTION 3.3 Not Responsible for Recitals or Issuance of Capital
Securities Guarantee........................................11
-----------------------------------------------------
ARTICLE IV
CAPITAL SECURITIES GUARANTEE TRUSTEE
SECTION 4.1 Capital Securities Guarantee Trustee; Eligibility.............11
-------------------------------------------------
SECTION 4.2 Appointment, Removal and Resignation of Capital Securities
-----------------------------------------------------------
Guarantee Trustee.............................................12
ARTICLE V
GUARANTEE
SECTION 5.1 Guarantee....................................................13
---------
SECTION 5.2 Waiver of Notice and Demand..................................13
---------------------------
SECTION 5.3 Obligations Not Affected.....................................13
------------------------
SECTION 5.4 Rights of Holders............................................14
-----------------
SECTION 5.5 Guarantee of Payment.........................................15
--------------------
SECTION 5.6 Subrogation..................................................15
-----------
SECTION 5.7 Independent Obligations......................................15
-----------------------
ARTICLE VI
LIMITATION OF TRANSACTIONS; SUBORDINATION
SECTION 6.1 Limitation of Transactions..................................15
--------------------------
SECTION 6.2 Ranking.....................................................16
-------
ARTICLE VII
TERMINATION
SECTION 7.1 Termination.................................................16
-----------
ARTICLE VIII
INDEMNIFICATION
SECTION 8.1 Exculpation.................................................17
-----------
SECTION 8.2 Compensation and Indemnification............................17
--------------------------------
ARTICLE IX
MISCELLANEOUS
SECTION 9.1 Successors and Assigns......................................18
----------------------
SECTION 9.2 Amendments..................................................18
----------
SECTION 9.3 Notices.....................................................18
-------
SECTION 9.4 Exchange Offer..............................................19
--------------
SECTION 9.5 Benefit.....................................................19
-------
SECTION 9.6 Governing Law...............................................19
-------------
CROSS REFERENCE TABLE
Section of Trust
Indenture Act of Section of Guarantee
1939, as amended Agreement
- ---------------- ---------
310(a) 4.1(a)
310(b) 4.1(c), 2.8
310(c) Inapplicable
311(a) 2.2(b)
311(b) 2.2(b)
311 (c) Inapplicable
312(a) 2.2(a)
312(b) 2.2(b)
313 2.3
314(a) 2.4
314(b) Inapplicable
314(c) 2.5
314(d) Inapplicable
314(e) 1.1, 2.5, 3.2
314(f) 2.1, 3.2
315(a) 3.1(d)
315(b) 2.7
315(c) 3.1(c)
315(d) 3.1(d)
316(a) 1.1, 2.6, 5.4
316(b) 5.3
316(c) 9.2
317(a) Inapplicable
317(b) Inapplicable
318(a) 2.1(a)
318(c) 2.1(b)
- -------------------------
This Cross-Reference Table does not constitute part of this Guarantee
Agreement and shall not affect the interpretation of any of its terms or
provisions.
SERIES A CAPITAL SECURITIES GUARANTEE AGREEMENT
THIS SERIES A CAPITAL SECURITIES GUARANTEE AGREEMENT (the "Capital
Securities Guarantee"), dated as of April 20, 1999, is executed and delivered by
PEOPLES BANCORP INC., an Ohio corporation (the "Guarantor"), and WILMINGTON
TRUST COMPANY, as trustee (the "Capital Securities Guarantee Trustee" or
"Trustee"), for the benefit of the Holders (as defined herein), from time to
time, of the Series A Capital Securities (as defined herein) of PEBO Capital
Trust I, a Delaware statutory business trust (the "Issuer").
WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration") dated as of April 20, 1999 by and among the trustees of the
Issuer named therein, the Guarantor, as sponsor, and the holders from time to
time of undivided beneficial interests in the assets of the Issuer, the Issuer
is issuing on the date hereof 30,000 capital securities, having an aggregate
liquidation amount of $30,000,000, such capital securities being designated the
Series A 8.62% Capital Securities (collectively, the "Series A Capital
Securities") and, in connection with an Exchange Offer (as defined in the
Declaration), has agreed to execute and deliver the Series B Capital Securities
Guarantee (as defined in the Declaration) for the benefit of the holders of the
Series B Capital Securities (as defined in the Declaration); and
WHEREAS, as incentive for the Holders to purchase the Series A Capital
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Capital Securities Guarantee, to pay the Guarantee
Payments (as defined below) to the Holders of the Series A Capital Securities,
and the Guarantor agrees to make certain other payments on the terms and
conditions set forth herein; and
WHEREAS, the Guarantor is also executing and delivering a guarantee
agreement (the "Common Securities Guarantee") with substantially identical terms
to this Capital Securities Guarantee, for the benefit of the holders of the
Common Securities (as defined herein), except that if an Event of Default (as
defined in the Declaration) has occurred and is continuing, the rights of
holders of the Common Securities to receive Guarantee Payments under the Common
Securities Guarantee are subordinated, to the extent and in the manner set forth
in the Common Securities Guarantee, to the rights of holders of Series A Capital
Securities and Series B Capital Securities to receive Guarantee Payments under
this Capital Securities Guarantee and the Series B Capital Securities Guarantee,
as the case may be; and
NOW, THEREFORE, in consideration of the purchase by each Holder of
Series A Capital Securities, which purchase the Guarantor hereby acknowledges
shall benefit the Guarantor, the Guarantor executes and delivers this Capital
Securities Guarantee for the benefit of such Holders.
ARTICLE I
DEFINITIONS AND INTERPRETATION
SECTION 1.1 Definitions and Interpretation
------------------------------
In this Capital Securities Guarantee, unless the context otherwise
requires:
(a) capitalized terms used in this Capital Securities Guarantee but not defined
in the preamble above have the respective meanings assigned to them in this
Section 1.1;
(b) terms defined in the Declaration as at the date of execution of this Capital
Securities Guarantee have the same meaning when used in this Capital Securities
Guarantee unless otherwise defined in this Capital Securities Guarantee,
(c) a term defined anywhere in this Capital Securities Guarantee has the same
meaning throughout;
(d) all references to "the Capital Securities Guarantee" or "this Capital
Securities Guarantee" are to this Capital Securities Guarantee as modified,
supplemented or amended from time to time;
(e) all references in this Capital Securities Guarantee to Articles and Sections
are to Articles and Sections of this Capital Securities Guarantee, unless
otherwise specified;
(f) a term defined in the Trust Indenture Act has the same meaning when used in
this Capital Securities Guarantee, unless otherwise defined in this Capital
Securities Guarantee or unless the context otherwise requires; and
(g) a reference to the singular includes the plural and vice versa.
"Affiliate" has the same meaning as given to that term in Rule 405
---------
under the Securities Act of 1933, as amended, or any successor rule thereunder.
"Business Day" shall mean any day other than a Saturday or a Sunday, or
a day on which banking institutions in New York, New York or Marietta, Ohio are
authorized or required by law or executive order to close.
"Capital Securities Guarantee Trustee" shall mean Wilmington Trust
Company, until a Successor Capital Securities Guarantee Trustee has been
appointed and has accepted such appointment pursuant to the provisions of this
Capital Securities Guarantee and thereafter means each such Successor Capital
Securities Guarantee Trustee.
"Common Securities" shall mean the securities representing common
undivided beneficial interests in the assets of the Issuer.
"Corporate Trust Office" shall mean the office of the Capital
Securities Guarantee Trustee at which the corporate trust business of the
Capital Securities Guarantee Trustee shall, at any particular time, be
principally administered, which office at the date of execution of this
Agreement is located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration.
"Covered Person" shall mean any Holder or beneficial owner of Series A
Capital Securities.
"Debentures" shall mean the series of subordinated debt securities of
the Guarantor designated the Series A 8.62% Junior Subordinated Deferrable
Interest Debentures due May 1, 2029, held by the Property Trustee (as defined in
the Declaration) of the Issuer.
"Event of Default" shall mean a default by the Guarantor on any of its
payment or other obligations under this Capital Securities Guarantee; provided,
however, that, except with respect to default in respect of any Guarantee
Payment, no default by the Guarantor hereunder shall constitute an Event of
Default unless the Guarantor shall have received written notice of the default
and shall not have cured such default within 60 days after receipt thereof.
"Guarantee Payments" shall mean the following payments or
distributions, without duplication, with respect to the Series A Capital
Securities, to the extent not paid or made by or on behalf of the Issuer: (i)
any accumulated and unpaid Distributions (as defined in the Declaration) that
are required to be paid on such Series A Capital Securities, to the extent the
Issuer has funds legally available therefor at such time, (ii) the redemption
price, including all accumulated and unpaid Distributions to the date of
redemption (the "Redemption Price"), to the extent the Issuer has funds legally
available therefor at such time, with respect to any Series A Capital Securities
called for redemption, and (iii) upon a voluntary or involuntary dissolution,
winding up or liquidation of the Issuer (other than in connection with the
distribution of Debentures to the Holders in exchange for Series A Capital
Securities or in connection with the redemption of the Series A Capital
Securities, in each case as provided in the Declaration), the lesser of (a) the
aggregate of the liquidation amount and all accumulated and unpaid Distributions
on the Series A Capital Securities to the date of payment, to the extent the
Issuer has funds legally available therefor at such time, and (b) the amount of
assets of the Issuer remaining available for distribution to Holders after
satisfaction of liabilities to creditors of the Issuer as required by applicable
law (in either case, the "Liquidation Distribution"). If an Event of Default has
occurred and is continuing, no Guarantee Payments under the Common Securities
Guarantee with respect to the Common Securities or any guarantee payment under
the Common Securities Guarantee or any Other Common Securities Guarantee shall
be made until the Holders of Series A Capital Securities shall be paid in full
the Guarantee Payments to which they are entitled under this Capital Securities
Guarantee.
"Holder" shall mean any holder, as registered on the books and records
of the Issuer, of any Series A Capital Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Series A Capital
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor or any Person actually known to a Responsible
Officer of the Capital Securities Guarantee Trustee to be an Affiliate of the
Guarantor.
"Indemnified Person" shall mean the Capital Securities Guarantee
Trustee (including in its individual capacity), any Affiliate of the Capital
Securities Guarantee Trustee, or any officers, directors, shareholders, members,
partners, employees, representatives, nominees, custodians or agents of the
Capital Securities Guarantee Trustee.
"Indenture" shall mean the Indenture, dated as of April 20, 1999,
between Peoples Bancorp Inc., as issuer of the Debentures (the "Debenture
Issuer"), and Wilmington Trust Company, as debenture trustee (the "Debenture
Trustee"), pursuant to which the Debentures are to be issued to the Property
Trustee of the Issuer.
"Majority in Liquidation Amount of the Series A Capital Securities"
shall mean, except as provided by the Trust Indenture Act, a vote by Holder(s)
of Series A Capital Securities, voting separately as a class, of more than 50%
of the aggregate liquidation amount (including the amount that would be paid on
redemption, liquidation or otherwise, plus accumulated and unpaid Distributions
to the date upon which the voting percentages are determined) of all outstanding
Series A Capital Securities.
"Officer's Certificate" shall mean, with respect to any person, a
certificate signed by the chairman, a vice chairman, the chief executive
officer, the president, an executive or senior vice president, a vice president,
the treasurer or an assistant treasurer of the Guarantor. Any Officer's
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Capital Securities Guarantee shall include:
(a) a statement that each officer signing the Officer's Certificate has
read the covenant or condition and the definitions relating thereto;
(b) a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and
(c) a statement as to whether, in the opinion of each such officer,
such condition or covenant has been complied with.
"Other Common Securities Guarantees" shall have the same meaning as
"Other Guarantees" in the Common Securities Guarantee.
"Other Debentures" shall mean all junior subordinated debentures, other
than the Debentures, issued by the Guarantor from time to time and sold to
trusts other than the Issuer to be established by the Guarantor (if any), in
each case similar to the Issuer.
"Other Guarantees" shall mean all guarantees, other than this Capital
Securities Guarantee, to be issued by the Guarantor with respect to capital
securities (if any) similar to the Series A Capital Securities issued by trusts
other than the Issuer to be established by the Guarantor (if any), in each case
similar to the Issuer.
"Person" shall mean 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.
"Registration Rights Agreement" means the Registration Rights
Agreement, dated as of April 20, 1999, by and among the Guarantor, the Issuer
and the Initial Purchaser named therein as such agreement may be amended,
modified or supplemented from time to time.
"Responsible Officer" shall mean, with respect to the Capital
Securities Guarantee Trustee, any officer assigned to the Corporate Trust
Office, including any managing director, principal, vice president, assistant
vice president, assistant treasurer, assistant secretary or any other officer of
the Capital Securities Guarantee Trustee customarily performing functions
similar to those performed by any of the above designated officers and having
direct responsibility for the administration of this Capital Securities
Guarantee, and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.
"Successor Capital Securities Guarantee Trustee" shall mean a successor
Capital Securities Guarantee Trustee possessing the qualifications to act as
Capital Securities Guarantee Trustee under Section 4.1.
"Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended.
"Trust Securities" shall mean the Common Securities and the Series A
Capital Securities and the Series B Capital Securities, collectively.
ARTICLE II
TRUST INDENTURE ACT
SECTION 2.1 Trust Indenture Act; Application
--------------------------------
(a) This Capital Securities Guarantee is subject to the provisions of
the Trust Indenture Act that are required to be part of this Capital Securities
Guarantee and shall, to the extent applicable, be governed by such provisions.
(b) If and to the extent that any provision of this Capital Securities
Guarantee limits, qualifies or conflicts with the duties imposed by Section 310
to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control.
SECTION 2.2 Lists of Holders of Securities
------------------------------
(a) The Guarantor shall provide the Capital Securities Guarantee
Trustee (unless the Capital Securities Guarantee Trustee is otherwise the
registrar of the Series A Capital Securities) with a list, in such form as the
Capital Securities Guarantee Trustee may reasonably require, of the names and
addresses of the Holders of the Series A Capital Securities ("List of Holders")
as of such date, (i) within fourteen (14) days after each record date for
payment of Distributions, and (ii) at any other time within 30 days of receipt
by the Guarantor of a written request for a List of Holders as of a date no more
than 14 days before such List of Holders is given to the Capital Securities
Guarantee Trustee; provided, however, that the Guarantor shall not be obligated
to provide such List of Holders at any time the List of Holders does not differ
from the most recent List of Holders given to the Capital Securities Guarantee
Trustee by the Guarantor. The Capital Securities Guarantee Trustee may destroy
any List of Holders previously given to it on receipt of a new List of Holders.
(b) The Capital Securities Guarantee Trustee shall comply with its
obligations under Sections 31l(a), 31l(b) and Section 312(b) of the Trust
Indenture Act.
SECTION 2.3 Reports by the Capital Securities Guarantee Trustee
---------------------------------------------------
Within 60 days after May 31 of each year, commencing May 31, 2000, the
Capital Securities Guarantee Trustee shall provide to the Holders of the Series
A Capital 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 Capital Securities Guarantee Trustee shall also
comply with the requirements of Section 313(d) of the Trust Indenture Act.
SECTION 2.4 Periodic Reports to Capital Securities Guarantee Trustee
--------------------------------------------------------
The Guarantor shall provide to the Capital Securities Guarantee Trustee
such documents, reports and information as are 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. Delivery of such reports, information and documents to the
Capital Securities Guarantee Trustee is for informational purposes only and the
Capital Securities Guarantee Trustee's receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Guarantor's compliance with any of
its covenants hereunder (as to which the Capital Securities Guarantee Trustee is
entitled to rely exclusively on Officer's Certificates).
SECTION 2.5 Evidence of Compliance with Conditions Precedent
------------------------------------------------
The Guarantor shall provide to the Capital Securities Guarantee Trustee
such evidence of compliance with the conditions precedent, if any, provided for
in this Capital Securities Guarantee 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 Officer's Certificate.
SECTION 2.6 Waiver of Events of Default
---------------------------
The Holders of a Majority in Liquidation Amount of Series A Capital
Securities may, by vote, on behalf of the Holders of all of the Series A Capital
Securities, waive any past Event of Default and its consequences. Upon such
waiver, any such Event of Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Capital Securities Guarantee, but no such waiver shall extend to any subsequent
or other default or Event of Default or impair any right consequent thereon.
SECTION 2.7 Notice of Events of Default
---------------------------
(a) The Capital Securities Guarantee Trustee shall, within 10 Business
Days after the occurrence of an Event of Default with respect to this Capital
Securities Guarantee actually known to a Responsible Officer of the Capital
Securities Guarantee Trustee, transmit by mail, first class postage prepaid, to
all Holders of the Series A Capital Securities, notices of all such Events of
Default, unless such Events of Default have been cured before the giving of such
notice; provided, that, except in the case of an Event of Default arising from
the non-payment of any Guarantee Payment, the Capital Securities Guarantee
Trustee shall be protected in withholding such notice if and so long as a
Responsible Officer of the Capital Securities Guarantee Trustee in good faith
determines that the withholding of such notice is in the interests of the
Holders of the Series A Capital Securities.
(b) The Capital Securities Guarantee Trustee shall not be deemed to
have knowledge of any Event of Default unless the Capital Securities Guarantee
Trustee shall have received written notice, or a Responsible Officer of the
Capital Securities Guarantee Trustee charged with the administration of the
Declaration shall have obtained actual knowledge, of such Event of Default.
SECTION 2.8 Conflicting Interests
---------------------
The Declaration shall be deemed to be specifically described in this
Capital Securities Guarantee for the purposes of clause (i) of the first proviso
contained in Section 310(b) of the Trust Indenture Act.
ARTICLE III
POWERS, DUTIES AND RIGHTS OF
CAPITAL SECURITIES GUARANTEE TRUSTEE
SECTION 3.1 Powers and Duties of the Capital Securities Guarantee Trustee
-------------------------------------------------------------
(a) This Capital Securities Guarantee shall be held by the Capital
Securities Guarantee Trustee for the benefit of the Holders of the Series A
Capital Securities, and the Capital Securities Guarantee Trustee shall not
transfer this Capital Securities Guarantee to any Person except a Holder of
Series A Capital Securities exercising his, her or its rights pursuant to
Section 5.4(b) or to a Successor Capital Securities Guarantee Trustee on
acceptance by such Successor Capital Securities Guarantee Trustee of its
appointment to act as Successor Capital Securities Guarantee Trustee. The right,
title and interest of the Capital Securities Guarantee Trustee shall
automatically vest in any Successor Capital Securities Guarantee Trustee, and
such vesting and succession of title shall be effective whether or not
conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Capital Securities Guarantee Trustee.
(b) If an Event of Default actually known to a Responsible Officer of
the Capital Securities Guarantee Trustee has occurred and is continuing, the
Capital Securities Guarantee Trustee shall enforce this Capital Securities
Guarantee for the benefit of the Holders of the Series A Capital Securities.
(c) The Capital Securities Guarantee Trustee, before the occurrence of
any Event of Default (of which, other than in the case of Events of Default
under Sections 5.01(a) and 5.01(b) of the Indenture, a Responsible Officer of
the Property Trustee has actual knowledge) and after the curing of all such
Events of Default that may have occurred, shall undertake to perform only such
duties as are specifically set forth in this Capital Securities Guarantee, and
no implied covenants or obligations shall be read into this Capital Securities
Guarantee against the Capital Securities Guarantee Trustee. In case an Event of
Default has occurred (that has not been cured or waived pursuant to Section 2.6)
and is actually known to a Responsible Officer of the Capital Securities
Guarantee Trustee, the Capital Securities Guarantee Trustee shall exercise such
of the rights and powers vested in it by this Capital Securities Guarantee, and
use the same degree of care and skill in its exercise thereof, as a prudent
person would exercise or use under the circumstances in the conduct of his or
her own affairs.
(d) No provision of this Capital Securities Guarantee shall be
construed to relieve the Capital Securities Guarantee Trustee from liability for
its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:
(i) prior to the occurrence of any Event of Default (of which,
other than in the case of Events of Default under Sections 5.01(a) and
5.01(b) of the Indenture, a Responsible Officer of the Property Trustee
has actual knowledge) and after the curing or waiving of all such
Events of Default that may have occurred:
(A) the duties and obligations of the Capital Securities
Guarantee Trustee shall be determined solely by the express provisions
of this Capital Securities Guarantee, and the Capital Securities
Guarantee Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this
Capital Securities Guarantee, and no implied covenants or obligations
shall be read into this Capital Securities Guarantee against the
Capital Securities Guarantee Trustee; and
(B) in the absence of bad faith on the part of the Capital
Securities Guarantee Trustee, the Capital Securities Guarantee Trustee
may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or
opinions furnished to the Capital Securities Guarantee Trustee and
conforming to the requirements of this Capital Securities Guarantee;
provided, however, that in the case of any such certificates or
opinions that by any provision hereof are specifically required to be
furnished to the Capital Securities Guarantee Trustee, the Capital
Securities Guarantee Trustee shall be under a duty to examine the same
to determine whether or not on their face they conform to the
requirements of this Capital Securities Guarantee;
(ii) the Capital Securities Guarantee Trustee shall not be
liable for any error of judgment made in good faith by a Responsible
Officer of the Capital Securities Guarantee Trustee, unless it shall be
proved that the Capital Securities Guarantee Trustee or such
Responsible Officer was negligent in ascertaining the pertinent facts
upon which such judgment was made;
(iii) the Capital Securities Guarantee Trustee shall not be
liable with respect to any action taken or omitted to be taken by it in
good faith in accordance with the direction of the Holders of a
Majority in Liquidation Amount of the Series A Capital Securities
relating to the time, method and place of conducting any proceeding for
any remedy available to the Capital Securities Guarantee Trustee, or
exercising any trust or power conferred upon the Capital Securities
Guarantee Trustee under this Capital Securities Guarantee; and
(iv) no provision of this Capital Securities Guarantee shall
require the Capital Securities Guarantee Trustee to expend or risk its
own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its
rights or powers, if the Capital Securities Guarantee Trustee shall
have reasonable grounds for believing that the repayment of such funds
or liability is not reasonably assured to it under the terms of this
Capital Securities Guarantee or indemnity, reasonably satisfactory to
the Capital Securities Guarantee Trustee, against such risk or
liability is not reasonably assured to it.
SECTION 3.2 Certain Rights of Capital Securities Guarantee Trustee
------------------------------------------------------
(a) Subject to the provisions of Section 3.1:
(i) the Capital Securities Guarantee 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 Guarantor contemplated by
this Capital Securities Guarantee may be sufficiently evidenced by an
Officer's Certificate;
(iii) whenever, in the administration of this Capital
Securities Guarantee, the Capital Securities Guarantee Trustee shall
deem it desirable that a matter be proved or established before taking,
suffering or omitting any action hereunder, the Capital Securities
Guarantee Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and
conclusively rely upon an Officer's Certificate, which, upon receipt of
such request, shall be promptly delivered by the Guarantor;
(iv) the Capital Securities Guarantee Trustee shall have no
duty to see to any recording, filing or registration of any instrument
or other document (or any rerecording, refiling or registration
thereof);
(v) the Capital Securities Guarantee Trustee may consult with
counsel of its selection, and the advice or opinion of such counsel
with respect to legal matters 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; and such counsel may be counsel to the Guarantor or any of its
Affiliates and may include any of its employees; the Capital Securities
Guarantee Trustee shall have the right at any time to seek instructions
concerning the administration of this Capital Securities Guarantee from
any court of competent jurisdiction;
(vi) the Capital Securities Guarantee Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by
this Capital Securities Guarantee at the request or direction of any
Holder, unless such Holder shall have provided to the Capital
Securities Guarantee Trustee such security and indemnity, reasonably
satisfactory to the Capital Securities Guarantee Trustee, against the
costs, expenses (including attorneys' fees and expenses and the
expenses of the Capital Securities Guarantee 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 Capital Securities Guarantee
Trustee, provided, however, that nothing contained in this Section
3.2(a)(vi) shall be taken to relieve the Capital Securities Guarantee
Trustee, upon the occurrence of an Event of Default, of its obligation
to exercise the rights and powers vested in it by this Capital
Securities Guarantee;
(vii) the Capital Securities Guarantee Trustee shall have no
obligation 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
Capital Securities Guarantee Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may
see fit;
(viii) the Capital Securities Guarantee Trustee may, at the
expense of the Guarantor, execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through
agents, nominees, custodians or attorneys, and the Capital Securities
Guarantee Trustee shall not be responsible for any misconduct or
negligence on the part of any such person appointed with due care by it
hereunder;
(ix) any action taken by the Capital Securities Guarantee
Trustee or its agents hereunder shall bind the Holders of the Series A
Capital Securities, and the signature of the Capital Securities
Guarantee 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 Capital Securities Guarantee Trustee
to so act or as to its compliance with any of the terms and provisions
of this Capital Securities Guarantee, both of which shall be
conclusively evidenced by the Capital Securities Guarantee Trustee's or
its agent's taking such action;
(x) whenever in the administration of this Capital Securities
Guarantee the Capital Securities Guarantee Trustee shall deem it
desirable to receive instructions with respect to enforcing any remedy
or right or taking any other action hereunder, the Capital Securities
Guarantee Trustee (i) may request instructions from the Holders of a
Majority in Liquidation Amount of the Series A Capital Securities, (ii)
may refrain from enforcing such remedy or right or taking such other
action until such instructions are received, and (iii) shall be
protected in conclusively relying on or acting in accordance with such
instructions; and
(xi) the Capital Securities Guarantee Trustee shall not be
liable for any action taken, suffered, or omitted to be taken by it in
good faith, without negligence, and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon
it by this Capital Securities Guarantee.
(b) No provision of this Capital Securities Guarantee shall be deemed
to impose any duty or obligation on the Capital Securities Guarantee Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or
in which the Capital Securities Guarantee Trustee shall be unqualified or
incompetent in accordance with applicable law, to perform any such act or acts
or to exercise any such right, power, duty or obligation. No permissive power or
authority available to the Capital Securities Guarantee Trustee shall be
construed to be a duty.
SECTION 3.3 Not Responsible for Recitals or Issuance of Capital
Securities Guarantee
---------------------------------------------------
The recitals contained in this Capital Securities Guarantee shall be
taken as the statements of the Guarantor, and the Capital Securities Guarantee
Trustee does not assume any responsibility for their correctness. The Capital
Securities Guarantee Trustee makes no representation as to the validity or
sufficiency of this Capital Securities Guarantee.
ARTICLE IV
CAPITAL SECURITIES GUARANTEE TRUSTEE
SECTION 4.1 Capital Securities Guarantee Trustee; Eligibility
-------------------------------------------------
(a) There shall at all times be a Capital Securities Guarantee Trustee
that shall
(i) not be an Affiliate of the Guarantor; and
(ii) be a corporation or other Person 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
other Person permitted by the Securities and Exchange Commission to act
as an indenture trustee under the Trust Indenture Act, authorized under
such laws to exercise corporate trust powers, having a combined capital
and surplus of at least 10 million U.S. dollars ($10,000,000), and
subject to supervision or examination by federal, state, territorial or
District of Columbia authority; it being understood that if such
corporation or other Person 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 4.1(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 Capital Securities Guarantee Trustee shall cease
to be eligible to so act under Section 4.1(a), the Capital Securities Guarantee
Trustee shall immediately resign in the manner and with the effect set out in
Section 4.2(c).
(c) If the Capital Securities Guarantee Trustee has or shall acquire
any "conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Capital Securities Guarantee Trustee and Guarantor shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.
SECTION 4.2 Appointment, Removal and Resignation of Capital Securities
Guarantee Trustee
----------------------------------------------------------
(a) Subject to Section 4.2(b), the Capital Securities Guarantee Trustee
may be appointed or removed without cause at any time by the Guarantor except
during an Event of Default.
(b) The Capital Securities Guarantee Trustee shall not be removed in
accordance with Section 4.2(a) until a Successor Capital Securities Guarantee
Trustee has been appointed and has accepted such appointment by written
instrument executed by such Successor Capital Securities Guarantee Trustee and
delivered to the Guarantor.
(c) The Capital Securities Guarantee Trustee shall hold office until a
Successor Capital Securities Guarantee Trustee shall have been appointed or
until its removal or resignation. The Capital Securities Guarantee Trustee may
resign from office (without need for prior or subsequent accounting) by an
instrument in writing executed by the Capital Securities Guarantee Trustee and
delivered to the Guarantor, which resignation shall not take effect until a
Successor Capital Securities Guarantee Trustee has been appointed and has
accepted such appointment by instrument in writing executed by such Successor
Capital Securities Guarantee Trustee and delivered to the Guarantor and the
resigning Capital Securities Guarantee Trustee.
(d) If no Successor Capital Securities Guarantee Trustee shall have
been appointed and accepted appointment as provided in this Section 4.2 within
60 days after delivery of an instrument of removal or resignation, the Capital
Securities Guarantee Trustee resigning or being removed may petition any court
of competent jurisdiction for appointment of a Successor Capital Securities
Guarantee Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a Successor Capital Securities Guarantee
Trustee.
(e) No Capital Securities Guarantee Trustee shall be liable for the
acts or omissions to act of any Successor Capital Securities Guarantee Trustee.
(f) Upon termination of this Capital Securities Guarantee or removal or
resignation of the Capital Securities Guarantee Trustee pursuant to this Section
4.2, the Guarantor shall pay to the Capital Securities Guarantee Trustee all
amounts due to the Capital Securities Guarantee Trustee accrued to the date of
such termination, removal or resignation.
ARTICLE V
GUARANTEE
SECTION 5.1 Guarantee
---------
The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by the Issuer), as and when due, regardless of any defense, right of
set-off or counterclaim that the Issuer may have or assert. The Guarantor's
obligation to make a Guarantee Payment may be satisfied by direct payment of the
required amounts by the Guarantor to the Holders or by causing the Issuer to pay
such amounts to the Holders.
SECTION 5.2 Waiver of Notice and Demand
---------------------------
The Guarantor hereby waives notice of acceptance of this Capital
Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first against
the Issuer or any other Person before proceeding against the Guarantor, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.
SECTION 5.3 Obligations Not Affected
------------------------
The obligations, covenants, agreements and duties of the Guarantor
under this Capital Securities Guarantee shall in no way be affected or impaired
by reason of the happening from time to time of any of the following:
(a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Series A Capital Securities to be
performed or observed by the Issuer;
(b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Series A Capital Securities or the
extension of time for the performance of any other obligation under, arising out
of, or in connection with, the Series A Capital Securities (other than an
extension of time for payment of Distributions, Redemption Price, Liquidation
Distribution or other sum payable that results from the extension of any
interest payment period on the Debentures permitted by the Indenture);
(c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Series A Capital
Securities, or any action on the part of the Issuer granting indulgence or
extension of any kind;
(d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;
(e) any invalidity of, or defect or deficiency in, the Series A
Capital Securities;
(f) the settlement or compromise of any obligation guaranteed
hereby or hereby incurred;
(g) the consummation of the Exchange Offer; or
(h) any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a guarantor;
it being the intent of this Section 5.3 that the obligations of the Guarantor
with respect to the Guarantee Payments shall be absolute and unconditional under
any and all circumstances.
There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.
SECTION 5.4 Rights of Holders
-----------------
(a) The Holders of a Majority in Liquidation Amount of the Series A
Capital Securities have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Capital Securities
Guarantee Trustee in respect of this Capital Securities Guarantee or exercising
any trust or power conferred upon the Capital Securities Guarantee Trustee under
this Capital Securities Guarantee.
(b) Any Holder of Series A Capital Securities may institute a legal
proceeding directly against the Guarantor to enforce the Capital Securities
Guarantee Trustee's rights under this Capital Securities Guarantee, without
first instituting a legal proceeding against the Issuer, the Capital Securities
Guarantee Trustee or any other person or entity. The Guarantor waives any right
or remedy to require that any action be brought first against the Issuer or any
other person or entity before proceeding directly against the Guarantor.
SECTION 5.5 Guarantee of Payment
--------------------
This Capital Securities Guarantee creates a guarantee of payment and
not of collection.
SECTION 5.6 Subrogation
-----------
The Guarantor shall be subrogated to all (if any) rights of the Holders
of Series A Capital Securities against the Issuer in respect of any amounts paid
to such Holders by the Guarantor under this Capital Securities Guarantee;
provided, however, that the Guarantor shall not (except to the extent required
by mandatory provisions of law) be entitled to enforce or exercise any right
that it may acquire by way of subrogation or any indemnity, reimbursement or
other agreement, in all cases as a result of payment under this Capital
Securities Guarantee, if, at the time of any such payment, any amounts are due
and unpaid under this Capital Securities Guarantee. If any amount shall be paid
to the Guarantor in violation of the preceding sentence, the Guarantor agrees to
hold such amount in trust for the Holders and to pay over such amount to the
Holders.
SECTION 5.7 Independent Obligations
-----------------------
The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Series A
Capital Securities, and that the Guarantor shall be liable as principal and as
debtor hereunder to make Guarantee Payments pursuant to the terms of this
Capital Securities Guarantee notwithstanding the occurrence of any event
referred to in subsections (a) through (h), inclusive, of Section 5.3 hereof.
ARTICLE VI
LIMITATION OF TRANSACTIONS; SUBORDINATION
SECTION 6.1 Limitation of Transactions
--------------------------
So long as any Series A Capital Securities remain outstanding, the
Guarantor shall not (i) declare or pay any dividends or distributions on, or
redeem, purchase, acquire, or make a liquidation payment with respect to, any of
the Guarantor's capital stock, (ii) make any payment of principal of or interest
or premium, if any, on or repay, repurchase or redeem any debt securities of the
Guarantor (including Other Debentures) that rank pari passu with or junior in
right of payment to the Debentures or (iii) make any guarantee payments with
respect to any guarantee by the Guarantor of the debt securities of any direct
or indirect subsidiary of the Guarantor (including Other Guarantees) if such
guarantee ranks pari passu with or junior in right of payment to the Debentures
(other than (a) dividends or distributions in shares of, or options, warrants,
rights to subscribe for or purchase common shares of the Guarantor, (b) any
declaration of a dividend in connection with the implementation of a
shareholders' rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto, (c)
payments under this Capital Securities Guarantee and the Series B Capital
Securities Guarantee; (d) as a result of a reclassification of the Guarantor's
capital stock or the exchange or the conversion of one class or series of the
Guarantor's capital stock for another class or series of the Guarantor's capital
stock, (e) the purchase of fractional interests in shares of the Guarantor's
capital stock pursuant to the conversion or exchange provisions of such capital
stock or the security being converted or exchanged or pursuant to a merger,
consolidation or other business combination, and (f) purchases of common shares
related to the issuance of common shares or rights under any of the Guarantor's
benefit or compensation plans for directors, officers or employees of Guarantor
and its subsidiaries or the Guarantor's dividend reinvestment plan) if at the
time of the action described in (i), (ii) or (iii) above (l) there shall have
occurred any default of which the Guarantor has actual knowledge that (A) is, or
with the giving of notice or the lapse of time, or both, would be, an Event of
Default and (B) in respect of which the Guarantor shall not have taken
reasonable steps to cure, (2) if such Debentures are held by the Property
Trustee, the Guarantor shall be in default with respect to its payment of any
obligations under this Capital Securities Guarantee or (3) the Guarantor shall
have given notice of its election of the exercise of its right to commence an
Extended Interest Payment Period as provided in the Indenture and shall not have
rescinded such notice, and such Extended Interest Payment Period, or an
extension thereof, shall have commenced and be continuing.
SECTION 6.2 Ranking
-------
This Capital Securities Guarantee will constitute an unsecured
obligation of the Guarantor and will rank (i) subordinate and junior in right of
payment to Senior Indebtedness (as defined in the Indenture), to the same extent
and in the same manner that the Debentures are subordinated to Senior
Indebtedness pursuant to the Indenture, it being understood that the terms of
Article XV of the Indenture shall apply to the obligations of the Guarantor
under this Capital Securities Guarantee as if such Article XV were set forth
herein in full, (ii) pari passu with the Debentures, Other Debentures, the
Series B Capital Securities Guarantee, the Common Securities Guarantee, any
Other Common Securities Guarantee and any Other Guarantee, and (iii) senior to
the Guarantor's capital stock.
ARTICLE VII
TERMINATION
SECTION 7.1 Termination
-----------
This Capital Securities Guarantee shall terminate (i) upon full payment
of the Redemption Price (as defined in the Declaration) of all Series A Capital
Securities, (ii) upon liquidation of the Issuer, the full payment of the amounts
payable in accordance with the Declaration or the distribution of the Debentures
to the Holders and the holders of Common Securities or (iii) upon exchange of
all of the Series A Capital Securities for the Series B Capital Securities in
the Exchange Offer and the execution and delivery of the Series B Capital
Securities Guarantee. Notwithstanding the foregoing, this Capital Securities
Guarantee will continue to be effective or will be reinstated, as the case may
be, if at any time any Holder must restore payment of any sums paid under the
Series A Capital Securities or under this Capital Securities Guarantee.
ARTICLE VIII
INDEMNIFICATION
SECTION 8.1 Exculpation
-----------
(a) No Indemnified Person shall be liable, responsible or accountable
in damages or otherwise to the Guarantor 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 in accordance with this Capital
Securities Guarantee and in a manner that such Indemnified Person reasonably
believed to be within the scope of the authority conferred on such Indemnified
Person by this Capital Securities Guarantee 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 negligence or willful misconduct with
respect to such acts or omissions.
(b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor 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 Guarantor, 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 might properly be paid.
SECTION 8.2 Compensation and Indemnification
--------------------------------
The Guarantor agrees to pay to the Capital Securities Guarantee Trustee
such compensation for its services as shall be mutually agreed upon by the
Guarantor and the Capital Securities Guarantee Trustee. The Guarantor shall
reimburse the Capital Securities Guarantee Trustee upon request for all
reasonable out-of-pocket expenses incurred by it, including the reasonable
compensation and expenses of the Capital Securities Guarantee Trustee's agents
and counsel, except any expense as may be attributable to the negligence or bad
faith of the Capital Securities Guarantee Trustee.
The Guarantor agrees to indemnify each Indemnified Person for, and to
hold each Indemnified Person harmless against, any and all loss, liability,
damage, claim or expense incurred without negligence or bad faith 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 8.2 shall survive the termination of this Capital Securities Guarantee
and shall survive the resignation or removal of the Capital Securities Guarantee
Trustee.
ARTICLE IX
MISCELLANEOUS
SECTION 9.1 Successors and Assigns
----------------------
All guarantees and agreements contained in this Capital Securities
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Series A Capital Securities then outstanding.
SECTION 9.2 Amendments
----------
Except with respect to any changes that do not materially adversely
affect the rights of Holders (in which case no consent of such Holders will be
required), this Capital Securities Guarantee may only be amended with the prior
approval of the Holders of a Majority in Liquidation Amount of the Series A
Capital Securities. The provisions of Section 12.2 of the Declaration with
respect to meetings of Holders of the Trust Securities apply to the giving of
such approval. This Capital Securities Guarantee may not be amended, and no
amendment hereof that affects the Capital Securities Guarantee Trustee's rights,
duties or immunities hereunder or otherwise, shall be effective, unless such
amendment is executed by the Capital Securities Guarantee Trustee (which shall
have no obligation to execute any such amendment, but may do so in its sole
discretion).
SECTION 9.3 Notices
-------
All notices provided for in this Capital Securities Guarantee 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:
(a) If given to the Issuer, in care of the Administrative Trustee at
the Issuer's mailing address set forth below (or such other address as the
Issuer may give notice of to the Capital Securities Guarantee Trustee and the
Holders):
PEBO Capital Trust I
c/o Peoples Bancorp Inc.
138 Putnam Street
P.O. Box 738
Marietta, Ohio 45750-0738
Attention: Charles R. Hunsaker
Telecopy: (740) 376-7277
Telephone: (740) 374-6109
(b) If given to the Capital Securities Guarantee Trustee, at the
Capital Securities Guarantee Trustee's mailing address set forth below (or such
other address as the Capital Securities Guarantee Trustee may give notice of to
the Guarantor and the Holders):
Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890-0001
Attention: Corporate Trust Administration
Telecopy: (302) 651-1000
Telephone: (302) 651-8882
(c) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Capital Securities Guarantee Trustee and the Holders):
Peoples Bancorp Inc.
138 Putnam Street
P.O. Box 738
Marietta, Ohio 45750-0738
Attention: Charles R. Hunsaker
Telecopy: (740) 376-7277
Telephone: (740) 374-6109
(d) If given to any Holder, at the address set forth on the books and
records of the Issuer.
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 9.4 Exchange Offer
--------------
In the event an Exchange Offer Registration Statement (as defined in
the Registration Rights Agreement) becomes effective and the Issuer issues any
Series B Capital Securities in the Exchange Offer, the Guarantor will enter into
a new capital securities guarantee agreement, in substantially the same form as
this Capital Securities Guarantee, with respect to the Series B Capital
Securities.
SECTION 9.5 Benefit
-------
This Capital Securities Guarantee is solely for the benefit of the
Holders of the Series A Capital Securities and, subject to Section 3.1(a), is
not separately transferable from the Series A Capital Securities.
SECTION 9.6 Governing Law
-------------
THIS CAPITAL SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.
This Capital Securities Guarantee is executed as of the day and year
first above written.
PEOPLES BANCORP INC.,
as Guarantor
By: /s/ROBERT E. EVANS
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Robert E. Evans, President and
Chief Executive Officer
WILMINGTON TRUST COMPANY,
as Capital Securities Guarantee Trustee
By: /s/NORMA P. CLOSS
Name: Norma P. Closs
Title: Vice President
REGISTRATION RIGHTS AGREEMENT
Dated April 20, 1999
among
PEOPLES BANCORP INC.
PEBO CAPITAL TRUST I
and
SANDLER O'NEILL & PARTNERS, L.P.
as Initial Purchaser
REGISTRATION RIGHTS AGREEMENT
THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made
and entered into as of April 20, 1999 among Peoples Bancorp Inc., an Ohio
corporation ("Peoples"), PEBO Capital Trust I, a business trust formed under the
laws of the state of Delaware (the "Trust"), and SANDLER O'NEILL & PARTNERS,
L.P. (the "Initial Purchaser").
This Agreement is made pursuant to the Purchase Agreement
dated April 15, 1999 (the "Purchase Agreement"), among Peoples, as issuer of the
Series A 8.62% Junior Subordinated Deferrable Interest Debentures due May 1,
2029 (the "Subordinated Debentures"), the Trust and the Initial Purchaser, which
provides for, among other things, the sale by the Trust to the Initial Purchaser
of 30,000 of the Trust's Series A 8.62% Capital Securities, liquidation amount
$1,000 per Capital Security (the "Capital Securities"), the proceeds of which
will be used by the Trust to purchase Subordinated Debentures. The Capital
Securities, together with the Subordinated Debentures and Peoples' guarantee of
the Capital Securities (the "Capital Securities Guarantee"), are collectively
referred to as the "Securities". In order to induce the Initial Purchaser to
enter into the Purchase Agreement, Peoples and the Trust have agreed to provide
to the Initial Purchaser and its direct and indirect transferees the
registration rights set forth in this Agreement. The execution and delivery of
this Agreement is a condition to the closing under the Purchase Agreement.
In consideration of the foregoing, the parties hereto agree as
follows:
1. Definitions. As used in this Agreement, the following capitalized
defined terms shall have the following meanings:
"Additional Distributions" shall have the meaning set forth in Section 2(e)
hereof.
"Advice" shall have the meaning set forth in the last paragraph of Section
3 hereof.
"Affiliate" has the same meaning as given to that term in Rule 405 under
the Securities Act or any successor rule thereunder.
"Applicable Period" shall have the meaning set forth in Section 3(t)
hereof.
"Business Day" means any day other than a Saturday, a Sunday, or a day on
which banking institutions in New York, New York or Marietta, Ohio are
authorized or required by law or executive order to close.
"Closing Time" shall mean the Closing Time as defined in the Purchase
Agreement.
"Declaration" or "Declaration of Trust" shall mean the Amended and Restated
Declaration of Trust of PEBO Capital Trust I, dated as of April 20, 1999, by the
trustees named therein and Peoples as sponsor.
"Depositary" shall mean The Depository Trust Company, or any other
depositary appointed by the Trust; provided, however, that such depositary must
have an address in the Borough of Manhattan, in the City of New York.
"Effectiveness Period" shall have the meaning set forth in Section 2(b)
hereof.
"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended
from time to time.
"Exchange Offer" shall mean the offer by Peoples and the Trust to the
Holders to exchange all of the Registrable Securities (other than Private
Exchange Securities) for a like principal amount of Exchange Securities pursuant
to Section 2(a) hereof.
"Exchange Offer Registration" shall mean a registration under the
Securities Act effected pursuant to Section 2(a) hereof.
"Exchange Offer Registration Statement" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form), and all amendments and supplements to such registration statement, in
each case including the Prospectus contained therein, all exhibits thereto and
all material incorporated by reference therein.
"Exchange Period" shall have the meaning set forth in Section 2(a) hereof.
"Exchange Securities" shall mean (i) with respect to the Subordinated
Debentures, the Series B 8.62% Junior Subordinated Deferrable Interest
Debentures due May 1, 2029 (the "Exchange Debentures") containing terms
substantially identical to the Subordinated Debentures (except that they will
not contain terms with respect to the transfer restrictions under the Securities
Act (other than requiring minimum transfers thereof to be in blocks of $100,000
aggregate principal amount), and will not provide for any Liquidated Damages
thereon), (ii) with respect to the Capital Securities, the Trust's Series B
8.62% Capital Securities, liquidation amount $1,000 per Capital Security (the
"Exchange Capital Securities") which will have terms substantially identical to
the Capital Securities (except they will not contain terms with respect to
transfer restrictions under the Securities Act (other than requiring minimum
transfers thereof to be in blocks of $100,000 aggregate liquidation amount), and
will not provide for any increase in Additional Distributions thereon) and (iii)
with respect to the Capital Securities Guarantee, Peoples' guarantee (the
"Exchange Capital Securities Guarantee") of the Exchange Capital Securities
which will have terms substantially identical to the Capital Securities
Guarantee.
"Holder" shall mean the Initial Purchaser, for so long as it owns any
Registrable Securities, and each of its respective successors, assigns and
direct and indirect transferees who become registered owners of Registrable
Securities under the Indenture or Declaration of Trust.
"Indenture" shall mean the Indenture relating to the Subordinated
Debentures and the Exchange Debentures dated as of April 20, 1999 between
Peoples, as issuer, and Wilmington Trust Company, as trustee, as the same may be
amended from time to time in accordance with the terms thereof.
"Initial Purchaser" shall have the meaning set forth in the preamble to
this Agreement.
"Inspectors" shall have the meaning set forth in Section 3(n) hereof.
"Issue Date" shall mean April 20, 1999, the date of original issuance of
the Securities.
"Liquidated Damages" shall have the meaning set forth in Section 2(e)
hereof.
"Majority Holders" shall mean the Holders of a majority of the aggregate
liquidation amount of outstanding Capital Securities.
"Participating Broker-Dealer" shall have the meaning set forth in Section
3(t) hereof.
"Peoples" shall have the meaning set forth in the preamble to this
Agreement and also includes Peoples' successors and permitted assigns.
"Person" shall mean an individual, partnership, corporation, trust or
unincorporated organization, limited liability corporation, or a government or
agency or political subdivision thereof.
"Private Exchange" shall have the meaning set forth in Section 2(a) hereof.
"Private Exchange Securities" shall have the meaning set forth in Section
2(a) hereof.
"Prospectus" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to a prospectus, including post-effective
amendments, and in each case including all material incorporated by reference
therein.
"Purchase Agreement" shall have the meaning set forth in the preamble to
this Agreement.
"Records" shall have the meaning set forth in Section 3(n) hereof.
"Registrable Securities" shall mean the Securities and, if issued, the
Private Exchange Securities; provided, however, that Securities or Private
Exchange Securities, as the case may be, shall cease to be Registrable
Securities when (i) a Registration Statement with respect to such Securities or
Private Exchange Securities for the exchange or resale thereof, as the case may
be, shall have been declared effective under the Securities Act and such
Securities or Private Exchange Securities, as the case may be, shall have been
disposed of pursuant to such Registration Statement, (ii) such Securities or
Private Exchange Securities, as the case may be, shall have been sold to the
public pursuant to Rule 144(k) (or any similar provision then in force, but not
Rule 144A) under the Securities Act or are eligible to be sold without
restriction as contemplated by Rule 144(k), (iii) such Securities or Private
Exchange Securities, as the case may be, shall have ceased to be outstanding or
(iv) with respect to the Securities, such Securities shall have been exchanged
for Exchange Securities upon consummation of the Exchange Offer and are
thereafter freely tradable by the holder thereof (other than an Affiliate of
Peoples).
"Registration Expenses" shall mean any and all expenses incident to
performance of or compliance by Peoples with this Agreement, including without
limitation: (i) all SEC or National Association of Securities Dealers, Inc. (the
"NASD") registration and filing fees, including, if applicable, the fees and
expenses of any "qualified independent underwriter" (and its counsel) that is
required to be retained by any Holder of Registrable Securities in accordance
with the rules and regulations of the NASD, (ii) all fees and expenses incurred
in connection with compliance with state securities or blue sky laws (including
reasonable fees and disbursements of one counsel for all underwriters or Holders
as a group in connection with blue sky qualification of any of the Exchange
Securities or Registrable Securities) and compliance with the rules of the NASD,
(iii) all expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any Prospectus
and any amendments or supplements thereto, and in preparing or assisting in
preparing, printing and distributing any underwriting agreements, securities
sales agreements and other documents relating to the performance of and
compliance with this Agreement, (iv) the fees and disbursements of counsel for
Peoples and of the independent certified public accountants of Peoples,
including the expenses of any "cold comfort" letters required by or incident to
such performance and compliance, (v) the fees and expenses of the Trustee and
its counsel and any exchange agent or custodian, (vi) all fees and expenses
incurred in connection with the listing, if any, of any of the Exchange
Securities or the Registrable Securities on any securities exchange or
exchanges, and (vii) the reasonable fees and expenses of any special experts
retained by Peoples in connection with any Registration Statement.
"Registration Statement" shall mean any registration statement of Peoples
and the Trust which covers any of the Exchange Securities or Registrable
Securities pursuant to the provisions of this Agreement, and all amendments and
supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.
"Rule 144(k) Period" shall mean the period of two years (or such shorter
period as may hereafter be referred to in Rule 144(k) under the Securities Act
(or similar successor rule)) commencing on the Issue Date.
"SEC" shall mean the Securities and Exchange Commission.
"Securities" shall have the meaning set forth in the preamble to this
Agreement.
"Securities Act" shall mean the Securities Act of 1933, as amended from
time to time.
"Shelf Registration" shall mean a registration effected pursuant to Section
2(b) hereof.
"Shelf Registration Event" shall have the meaning set forth in Section 2(b)
hereof.
"Shelf Registration Event Date" shall have the meaning set forth in Section
2(b) hereof.
"Shelf Registration Statement" shall mean a "shelf" registration statement
of Peoples and the Trust pursuant to the provisions of Section 2(b) hereof which
covers all of the Registrable Securities or all of the Private Exchange
Securities, as the case may be, on an appropriate form under Rule 415 under the
Securities Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.
"TIA" shall have the meaning set forth in Section 3(k) hereof.
"Trustees" shall mean any and all trustees with respect to (i) the Capital
Securities under the Declaration, (ii) the Subordinated Debentures under the
Indenture and (iii) the Capital Securities Guarantee.
2. Registration Under the Securities Act.
(a) Exchange Offer. Except as set forth in Section 2(b) below, Peoples and
the Trust shall, for the benefit of the Holders, (i) cause to be filed with the
SEC within 150 days after the Issue Date an Exchange Offer Registration
Statement on an appropriate form under the Securities Act relating to the
Exchange Offer, (ii) cause such Exchange Offer Registration Statement to be
declared effective under the Securities Act by the SEC not later than the date
which is 210 days after the Issue Date, and (iii) keep such Exchange Offer
Registration Statement effective for not less than 30 calendar days (or longer
if required by applicable law) after the date notice of the Exchange Offer is
mailed to the Holders. Upon the effectiveness of the Exchange Offer Registration
Statement, Peoples and the Trust shall promptly commence the Exchange Offer, it
being the objective of such Exchange Offer to enable each Holder eligible and
electing to exchange Registrable Securities for a like principal amount of
Exchange Debentures or a like liquidation amount of Exchange Capital Securities,
together with the Exchange Capital Securities Guarantee, as applicable (assuming
that such Holder (i) is not an Affiliate of the Trust or Peoples, (ii) is not a
broker-dealer tendering Registrable Securities acquired directly from Peoples
for its own account, (iii) acquires the Exchange Securities in the ordinary
course of such Holder's business and (iv) has no arrangements or understandings
with any Person to participate in the Exchange Offer for the purpose of
distributing the Exchange Securities) to transfer such Exchange Securities from
and after their receipt without any limitations or restrictions under the
Securities Act and under state securities or blue sky laws (other than requiring
minimum transfers in blocks having an aggregate principal or liquidation amount,
as the case may be, of $100,000).
In connection with the Exchange Offer, Peoples and the Trust shall:
(i) mail to each Holder a copy of the Prospectus forming part of the
Exchange Offer Registration Statement, together with an appropriate letter of
transmittal and related documents;
(ii) keep the Exchange Offer open for acceptance for a period of not less
than 30 days after the date notice thereof is mailed to the Holders (or longer
if required by applicable law) (such period referred to herein as the "Exchange
Period");
(iii) utilize the services of the Depositary for the Exchange Offer;
(iv) permit Holders to withdraw tendered Securities at any time prior to
the close of business, New York time, on the last Business Day of the Exchange
Period, by sending to the institution specified in the notice, a telegram,
telex, facsimile transmission or letter setting forth the name of such Holder,
the principal amount of Securities delivered for exchange, and a statement that
such Holder is withdrawing his election to have such Securities exchanged;
(v) notify each Holder that any Security not tendered by such Holder in the
Exchange Offer will remain outstanding and continue to accrue interest or
accumulate distributions, as the case may be, but will not retain any rights
under this Agreement (except in the case of the Initial Purchaser and
Participating Broker-Dealers as provided herein); and
(vi) otherwise comply in all respects with all applicable laws relating to
the Exchange Offer.
If the Initial Purchaser determines upon advice of its counsel that it is
not eligible to participate in the Exchange Offer with respect to the exchange
of Securities constituting any portion of an unsold allotment in the initial
distribution, as soon as practicable upon receipt by Peoples and the Trust of a
written request from such Initial Purchaser, Peoples and the Trust, as
applicable, shall issue and deliver to such Initial Purchaser in exchange (the
"Private Exchange") for the Securities held by such Initial Purchaser, a like
liquidation amount of Capital Securities of the Trust or, in the event the Trust
is liquidated and Subordinated Debentures are distributed, a like principal
amount of the Subordinated Debentures of Peoples, together with the Exchange
Capital Securities Guarantee, in each case that are identical (except that such
securities may bear a customary legend with respect to restrictions on transfer
pursuant to the Securities Act) to the Exchange Securities (the "Private
Exchange Securities") and which are issued pursuant to the Indenture, the
Declaration or the Guarantee (which provides that the Exchange Securities will
not be subject to the transfer restrictions set forth in the Indenture or the
Declaration, as applicable) (other than requiring minimum transfers in blocks
having an aggregate principal or liquidation amount, as the case may be, of
$100,000), and that the Exchange Securities, the Private Exchange Securities and
the Securities will vote and consent together on all matters as one class and
that neither the Exchange Securities, the Private Exchange Securities nor the
Securities will have the right to vote or consent as a separate class on any
matter). The Private Exchange Securities shall be of the same series as the
Exchange Securities and Peoples and the Trust will seek to cause the CUSIP
Service Bureau to issue the same CUSIP Numbers for the Private Exchange
Securities as for the Exchange Securities issued pursuant to the Exchange Offer.
As soon as practicable after the close of the Exchange Offer
and, if applicable, the Private Exchange, Peoples and the Trust, as the case
requires, shall:
(i) accept for exchange all Securities or portions thereof tendered and
not validly withdrawn pursuant to the Exchange Offer or the Private Exchange;
(ii) deliver, or cause to be delivered, to the applicable Trustee for
cancellation all Securities or portions thereof so accepted for exchange by
Peoples or the Trust; and
(iii) issue, and cause the applicable Trustee under the Indenture, the
Declaration or the Guarantee, as applicable, to promptly authenticate and
deliver to each Holder, new Exchange Securities or Private Exchange Securities,
as applicable, equal in principal amount to the principal amount of the
Subordinated Debentures or equal in liquidation amount to the liquidation amount
of the Capital Securities (together with the guarantee thereof) as are
surrendered by such Holder.
Distributions on each Exchange Capital Security and Private Exchange
Security and interest on each Exchange Debenture issued pursuant to the Exchange
Offer and in the Private Exchange will accrue from the last date on which a
Distribution or interest was paid on the Capital Security or the Subordinated
Debenture surrendered in exchange therefor or, if no Distribution or interest
has been paid on such Capital Security or Subordinated Debenture, from the Issue
Date. To the extent not prohibited by any law or applicable interpretation of
the staff of the SEC, Peoples and the Trust shall use their reasonable best
efforts to complete the Exchange Offer as provided above, and shall comply with
the applicable requirements of the Securities Act, the Exchange Act and other
applicable laws in connection with the Exchange Offer. The Exchange Offer shall
not be subject to any conditions, other than that the Exchange Offer does not
violate applicable law or any applicable interpretation of the staff of the SEC.
Each Holder of Registrable Securities who wishes to exchange such Registrable
Securities for Exchange Securities in the Exchange Offer will be required to
make certain customary representations in connection therewith, including, in
the case of any Holder of Capital Securities, representations that (i) it is not
an Affiliate of the Trust or Peoples, (ii) the Exchange Securities to be
received by it were acquired in the ordinary course of its business and (iii) at
the time of the Exchange Offer, it has no arrangement with any person to
participate in the distribution (within the meaning of the Securities Act) of
the Exchange Capital Securities. Peoples and the Trust shall inform the Initial
Purchaser, after consultation with the applicable Trustees, of the names and
addresses of the Holders to whom the Exchange Offer is made, and the Initial
Purchaser shall have the right to contact such Holders and otherwise facilitate
the tender of Registrable Securities in the Exchange Offer.
Upon consummation of the Exchange Offer in accordance with this Section
2(a), the provisions of this Agreement shall continue to apply, mutatis
mutandis, solely with respect to Registrable Securities that are Private
Exchange Securities and Exchange Securities held by Participating
Broker-Dealers, and Peoples and the Trust shall have no further obligation to
register the Registrable Securities (other than Private Exchange Securities held
by any Holder pursuant to Section 2(b) of this Agreement).
(b) Shelf Registration. In the event that (i) Peoples, the Trust or the
Majority Holders reasonably determine, after conferring with counsel (which may
be in-house counsel), that the Exchange Offer Registration provided in Section
2(a) above is not available under applicable law and regulations and currently
prevailing interpretations of the staff of the SEC, (ii) Peoples shall determine
in good faith that there is a reasonable likelihood that, or a material
uncertainty exists as to whether, consummation of the Exchange Offer would
result in (x) the Trust becoming subject to federal income tax with respect to
income received or accrued on the Subordinated Debentures or the Exchange
Debentures (collectively, the "Debentures"), (y) interest payable by Peoples on
the Debentures not being deductible by Peoples for United States federal income
tax purposes or (z) the Trust becoming subject to more than a de minimis amount
of other taxes, duties or governmental charges, (iii) the Exchange Offer
Registration Statement is not declared effective within 210 days of the Issue
Date or (iv) upon the request of the Initial Purchaser with respect to any
Registrable Securities held by it, if such Initial Purchaser is not permitted,
in the reasonable written opinion of Squire, Sanders & Dempsey L.L.P., pursuant
to applicable law or applicable interpretations of the staff of the SEC, to
participate in the Exchange Offer and thereby receive securities that are freely
tradable without restriction under the Securities Act and applicable blue sky or
state securities laws (any of the events specified in (i)-(iv) being a "Shelf
Registration Event" and the date of occurrence thereof, the "Shelf Registration
Event Date"), then in addition to or in lieu of conducting the Exchange Offer
contemplated by Section 2(a), as the case may be, Peoples and the Trust shall
cause to be filed as promptly as practicable after such Shelf Registration Event
Date, as the case may be, and, in any event, within 45 days after such Shelf
Registration Event Date (which shall be no earlier than 75 days after the
Closing Time), a Shelf Registration Statement providing for the sale by the
Holders of all of the Registrable Securities (except in the case of clause (iv)
above in which case the Shelf Registration Statement need cover only the
Registrable Securities held by the Initial Purchaser, and shall use its
reasonable best efforts to have such Shelf Registration Statement declared
effective by the SEC as soon as practicable. No Holder of Registrable Securities
shall be entitled to include any of its Registrable Securities in any Shelf
Registration pursuant to this Agreement unless and until such Holder furnishes
to Peoples and the Trust in writing, within 15 days after receipt of a request
therefor, such information as Peoples and the Trust may, after conferring with
counsel with regard to information relating to Holders that would be required by
the SEC to be included in such Shelf Registration Statement or Prospectus
included therein, reasonably request for inclusion in any Shelf Registration
Statement or Prospectus included therein. Each Holder as to which any Shelf
Registration is being effected agrees to furnish to Peoples and the Trust all
information with respect to such Holder necessary to make the information
previously furnished to Peoples and the Trust by such Holder not materially
misleading.
Peoples and the Trust agree to use their reasonable best efforts to keep
the Shelf Registration Statement continuously effective and usable for resales
for (a) the Rule 144(k) Period in the case of a Shelf Registration Statement
filed pursuant to Section 2(b)(i), (ii) or (iii) or (b) 180 days in the case of
a Shelf Registration Statement filed pursuant to Section 2(b)(iv) (subject in
each case to extension pursuant to the last paragraph of Section 3 hereof), or
for such shorter period which will terminate when all of the Registrable
Securities covered by the Shelf Registration Statement have been sold pursuant
to the Shelf Registration Statement or cease to be outstanding (the
"Effectiveness Period"). Peoples and the Trust shall not permit any securities
other than Registrable Securities to be included in the Shelf Registration.
Peoples and the Trust will, in the event a Shelf Registration Statement is
declared effective, provide to each Holder a reasonable number of copies of the
Prospectus which is a part of the Shelf Registration Statement and notify each
such Holder when the Shelf Registration has become effective. Peoples and the
Trust further agree, if necessary, to supplement or amend the Shelf Registration
Statement, if required by the rules, regulations or instructions applicable to
the registration form used by Peoples and the Trust for such Shelf Registration
Statement or by the Securities Act or by any other rules and regulations
thereunder for shelf registrations, and Peoples and the Trust agree to furnish
to the Holders of Registrable Securities copies of any such supplement or
amendment promptly after its being used or filed with the SEC.
(c) Expenses. Peoples, as issuer of the Subordinated Debentures, shall pay
all Registration Expenses in connection with any Registration Statement filed
pursuant to Section 2(a) and/or 2(b) hereof and will reimburse the Initial
Purchaser for the reasonable fees and disbursements of Squire, Sanders & Dempsey
L.L.P., counsel for the Initial Purchaser, incurred in connection with the
Exchange Offer and, if applicable, the Private Exchange, or any one other
counsel designated in writing by the Majority Holders to act as counsel for the
Holders of the Registrable Securities in connection with a Shelf Registration
Statement, which other counsel shall be reasonably satisfactory to Peoples.
Except as provided herein, each Holder shall pay all expenses of its counsel and
any of its other advisors or experts, underwriting discounts and commissions and
transfer taxes, if any, relating to the sale or disposition of such Holder's
Registrable Securities pursuant to the Shelf Registration Statement.
(d) Effective Registration Statement. An Exchange Offer Registration
Statement pursuant to Section 2(a) hereof or a Shelf Registration Statement
pursuant to Section 2(b) hereof will not be deemed to have become effective
unless it has been declared effective by the SEC; provided, however, that if,
after it has been declared effective, the offering of Registrable Securities
pursuant to such Exchange Offer Registration Statement or Shelf Registration
Statement is interfered with by any stop order, injunction or other order or
requirement of the SEC or any other governmental agency or court, such
Registration Statement will be deemed not to have been effective during the
period of such interference, until the offering of Registrable Securities
pursuant to such Registration Statement may legally resume. Peoples and the
Trust will be deemed not to have used their reasonable best efforts to cause the
Exchange Offer Registration Statement or the Shelf Registration Statement, as
the case may be, to become, or to remain, effective during the requisite period
if either of them voluntarily takes any action that would result in any such
Registration Statement not being declared effective or that would result in the
Holders of Registrable Securities covered thereby not being able to exchange or
offer and sell such Registrable Securities during that period unless such action
is required by applicable law.
(e) Liquidated Damages. In the event that:
(i) neither the Exchange Offer Registration Statement is filed with the SEC
on or prior to the 150th day after the Issue Date nor a Shelf Registration
Statement is filed with the SEC on or prior to the 45th day after the Shelf
Registration Event Date in respect of a Shelf Registration Event attributable to
any of the events set forth in Sections 2(b)(i), (ii) and (iii) (provided that
in no event shall such date be earlier than 75 days after the Issue Date), then
commencing on the day after the applicable required filing date, liquidated
damages ("Liquidated Damages") shall accrue on the principal amount of the
Subordinated Debentures, and additional distributions ("Additional
Distributions") shall accumulate on the liquidation amount of the Trust
Securities (as such term is defined in the Declaration), each at a rate of .25%
per annum; or
(ii) neither the Exchange Offer Registration Statement nor a Shelf
Registration Statement is declared effective by the SEC on or prior to the 210th
day after the Issue Date (in the case of an Exchange Offer Registration
Statement) or on or prior to the later of (A) the 30th day after the date such
Shelf Registration Statement was required to be filed and (B) the 210th day
after the Issue Date (in the case of a Shelf Registration Statement, in respect
of a Shelf Registration Event attributable to any of the events set forth in
Sections 2(b)(i), (ii) and (iii)), then, commencing on the 211th day after the
Issue Date (in the case of an Exchange Offer Registration Statement) or the
later of (A) the 31st day after the day such Shelf Registration Statement was
required to be filed and (B) the 211th day after the Issue Date (in the case of
a Shelf Registration Statement, in respect of a Shelf Registration Event
attributable to any of the events set forth in Sections 2(b)(i), (ii) and
(iii)), Liquidated Damages shall accrue on the principal amount of the
Subordinated Debentures, and Additional Distributions shall accumulate on the
liquidation amount of the Trust Securities, each at a rate of .25% per annum; or
(iii) (A) the Trust has not exchanged Exchange Capital Securities or
Peoples has not exchanged Exchange Capital Securities Guarantee or Exchange
Debentures for all Capital Securities, the Capital Securities Guarantee or
Subordinated Debentures, as the case may be, validly tendered, in accordance
with the terms of the Exchange Offer on or prior to the 45th day after the date
on which the Exchange Offer Registration Statement was declared effective or (B)
if applicable, the Shelf Registration Statement in respect of a Shelf
Registration Event attributable to any of the events set forth in Sections
2(b)(i), (ii) and (iii) has been declared effective and such Shelf Registration
Statement ceases to be effective or usable for resales (whether as a result of
an event contemplated by Section 3(e) or otherwise) at any time prior to the
expiration of the Rule 144(k) Period (other than after such time as all
Securities have been disposed of thereunder or otherwise cease to be Registrable
Securities), then Liquidated Damages shall accrue on the principal amount of
Subordinated Debentures, and Additional Distributions shall accumulate on the
liquidation amount of the Trust Securities, each at a rate of .25% per annum
commencing on (x) the 46th day after such effective date, in the case of (A)
above or (y) the day such Shelf Registration Statement ceases to be effective or
usable for resales in the case of (B) above; provided, however, that neither the
Liquidated Damages rate on the Subordinated Debentures, nor the Additional
Distribution rate on the liquidation amount of the Trust Securities, may exceed
in the aggregate .25% per annum; provided, further, however, that (1) upon the
filing of the Exchange Offer Registration Statement or a Shelf Registration
Statement (in the case of clause (i) above), (2) upon the effectiveness of the
Exchange Offer Registration Statement or a Shelf Registration Statement (in the
case of clause (ii) above), or (3) upon the exchange of Exchange Capital
Securities, Exchange Capital Securities Guarantee and Exchange Debentures for
all Capital Securities, the Capital Securities Guarantee and Subordinated
Debentures validly tendered (in the case of clause (iii)(A) above), or at such
time as the Shelf Registration Statement which had ceased to remain effective or
usable for resales again becomes effective and usable for resales (in the case
of clause (iii)(B) above), Liquidated Damages on the principal amount of the
Subordinated Debentures and Additional Distributions on the liquidation amount
of the Trust Securities a result of such clause (or the relevant subclause
thereof) shall cease to accrue and accumulate.
Any amounts of Liquidated Damages and Additional Distributions due
pursuant to Section 2(e)(i), (ii) or (iii) above will be payable in cash on the
next succeeding May 1 and November 1, as the case may be, to Holders on the
relevant record dates for the payment of interest and distributions pursuant to
the Indenture and the Declaration, respectively.
(f) Specific Enforcement. Without limiting the remedies available to the
Holders, Peoples and the Trust acknowledge that any failure by Peoples or the
Trust to comply with its obligations under Section 2(a) and Section 2(b) hereof
may result in material irreparable injury to the Holders for which there is no
adequate remedy at law, that it would not be possible to measure damages for
such injuries precisely and that, in the event of any such failure, any Holder
may obtain such relief as may be required to specifically enforce Peoples' and
the Trust's obligations under Section 2(a) and Section 2(b) hereof.
(g) Distribution of Subordinated Debentures. Notwithstanding any other
provisions of this Agreement, in the event that Subordinated Debentures are
distributed to holders of Capital Securities in liquidation of the Trust
pursuant to the Declaration, (i) all references in this Section 2 and in Section
3 to Securities, Registrable Securities and Exchange Securities shall not
include the Capital Securities and Capital Securities Guarantee or Exchange
Capital Securities and Exchange Capital Securities Guarantee issued or to be
issued in exchange therefor in the Exchange Offer and (ii) all requirements for
action to be taken by the Trust in this Section 2 and in Section 3 shall cease
to apply and all requirements for action to be taken by Peoples in this Section
2 and in Section 3 shall apply to the Subordinated Debentures and Exchange
Debentures issued or to be issued in exchange therefor in the Exchange Offer.
3. Registration Procedures. In connection with the obligations of Peoples
and the Trust with respect to the Registration Statements pursuant to Sections
2(a) and 2(b) hereof, Peoples and the Trust shall:
(a) prepare and file with the SEC a Registration Statement or Registration
Statements as prescribed by Sections 2(a) and 2(b) hereof within the relevant
time period specified in Section 2 hereof on the appropriate form under the
Securities Act, which form (i) shall be selected by Peoples and the Trust, (ii)
shall, in the case of a Shelf Registration, be available for the sale of the
Registrable Securities by the selling Holders thereof and, in the case of an
Exchange Offer, be available for the exchange of Registrable Securities, and
(iii) shall comply as to form in all material respects with the requirements of
the applicable form and include all financial statements required by the SEC to
be filed therewith; and use its best efforts to cause such Registration
Statement to become effective and remain effective (and, in the case of a Shelf
Registration Statement, usable for resales) in accordance with Section 2 hereof;
provided, however, that if (1) such filing is pursuant to Section 2(b), or (2) a
Prospectus contained in an Exchange Offer Registration Statement filed pursuant
to Section 2(a) is required to be delivered under the Securities Act by any
Participating Broker-Dealer who seeks to sell Exchange Securities, before filing
any Registration Statement or Prospectus or any amendments or supplements
thereto, Peoples and the Trust shall furnish to and afford the Holders of the
Registrable Securities and each such Participating Broker-Dealer, as the case
may be, covered by such Registration Statement, their counsel and the managing
underwriters, if any, a reasonable opportunity to review copies of all such
documents (including copies of any documents to be incorporated by reference
therein and all exhibits thereto) proposed to be filed. Peoples and the Trust
shall not file any Registration Statement or Prospectus or any amendments or
supplements thereto in respect of which the Holders must be afforded an
opportunity to review prior to the filing of such document if the Majority
Holders or such Participating Broker-Dealer, as the case may be, their counsel
or the managing underwriters, if any, shall reasonably object;
(b) prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such
Registration Statement effective for the Effectiveness Period or the Applicable
Period, as the case may be; and cause each Prospectus to be supplemented, if so
determined by Peoples or the Trust or requested by the SEC, by any required
prospectus supplement and as so supplemented to be filed pursuant to Rule 424
(or any similar provision then in force) under the Securities Act, and comply
with the provisions of the Securities Act, the Exchange Act and the rules and
regulations promulgated thereunder applicable to it with respect to the
disposition of all securities covered by each Registration Statement during the
Effectiveness Period or the Applicable Period, as the case may be, in accordance
with the intended method or methods of distribution by the selling Holders
thereof described in this Agreement (including sales by any Participating
Broker-Dealer);
(c) in the case of a Shelf Registration, (i) notify each Holder of
Registrable Securities included in the Shelf Registration Statement, at least
three Business Days prior to filing, that a Shelf Registration Statement with
respect to the Registrable Securities is being filed and advising such Holder
that the distribution of Registrable Securities will be made in accordance with
the method selected by the Majority Holders; and (ii) furnish to each Holder of
Registrable Securities included in the Shelf Registration Statement and to each
underwriter of an underwritten offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary
Prospectus, and any amendment or supplement thereto and such other documents as
such Holder or underwriter may reasonably request, in order to facilitate the
public sale or other disposition of the Registrable Securities; and (iii)
consent to the use of the Prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities included in the Shelf
Registration Statement in connection with the offering and sale of the
Registrable Securities covered by the Prospectus or any amendment or supplement
thereto;
(d) in the case of a Shelf Registration, use its reasonable best efforts to
register or qualify the Registrable Securities under all applicable state
securities or "blue sky" laws of such jurisdictions by the time the applicable
Registration Statement is declared effective by the SEC as any Holder of
Registrable Securities covered by a Registration Statement and each underwriter
of an underwritten offering of Registrable Securities shall reasonably request
in writing in advance of such date of effectiveness, and do any and all other
acts and things which may be reasonably necessary or advisable to enable such
Holder and underwriter to consummate the disposition in each such jurisdiction
of such Registrable Securities owned by such Holder; provided, however, that
Peoples and the Trust shall not be required to (i) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(d), (ii) file any
general consent to service of process in any jurisdiction where it would not
otherwise be subject to such service of process or (iii) subject itself to
taxation in any such jurisdiction if it is not then so subject;
(e) (1) in the case of a Shelf Registration or (2) if Participating
Broker-Dealers from whom Peoples or the Trust has received prior written notice
that they will be utilizing the Prospectus contained in the Exchange Offer
Registration Statement as provided in Section 3(t) hereof, are seeking to sell
Exchange Securities and are required to deliver Prospectuses, promptly notify
each Holder of Registrable Securities, or such Participating Broker-Dealers, as
the case may be, their counsel and the managing underwriters, if any, and
promptly confirm such notice in writing (i) when a Registration Statement has
become effective and when any post-effective amendments and supplements thereto
become effective, (ii) of any request by the SEC or any state securities
authority for amendments and supplements to a Registration Statement or
Prospectus or for additional information after the Registration Statement has
become effective, (iii) of the issuance by the SEC or any state securities
authority of any stop order suspending the effectiveness of a Registration
Statement or the qualification of the Registrable Securities or the Exchange
Securities to be offered or sold by any Participating Broker-Dealer in any
jurisdiction described in paragraph 3(d) hereof or the initiation of any
proceedings for that purpose, (iv) in the case of a Shelf Registration, if,
between the effective date of a Registration Statement and the closing of any
sale of Registrable Securities covered thereby, the representations and
warranties of Peoples and the Trust contained in the Purchase Agreement, any
securities sales agreement or other similar agreement cease to be true and
correct in all material respects, (v) of the happening of any event or the
failure of any event to occur or the discovery of any facts or otherwise, during
the Effectiveness Period which makes any statement made in such Registration
Statement or the related Prospectus untrue in any material respect or which
causes such Registration Statement or Prospectus to omit to state a material
fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, and (vi) Peoples and the Trust's
reasonable determination that a post-effective amendment to the Registration
Statement would be appropriate;
(f) make every reasonable effort to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest
possible moment;
(g) in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities included within the coverage of such Shelf Registration
Statement, without charge, one conformed copy of each Registration Statement
relating to such Shelf Registration and any post-effective amendment thereto
(without documents incorporated therein by reference or exhibits thereto, unless
requested);
(h) in the case of a Shelf Registration, cooperate with the selling Holders
of Registrable Securities to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold and not bearing any
restrictive legends (other than with respect to restrictions requiring minimum
transfers in blocks having an aggregate principal or liquidation amount, as the
case may be, of $100,000) and in such denominations (consistent with the
provisions of the Indenture and the Declaration) and registered in such names as
the selling Holders or the underwriters may reasonably request at least two
Business Days prior to the closing of any sale of Registrable Securities
pursuant to such Shelf Registration Statement;
(i) in the case of a Shelf Registration or an Exchange Offer Registration,
upon the occurrence of any circumstance contemplated by Section 3(e)(ii),
3(e)(iii), 3(e)(v) or 3(e)(vi) hereof, use its reasonable best efforts to
prepare a supplement or post-effective amendment to such Registration Statement
or the related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to the
purchasers of the Registrable Securities, such Prospectus will not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; and to notify each Holder to suspend use of the
Prospectus as promptly as practicable after the occurrence of such an event, and
each Holder hereby agrees to suspend use of the Prospectus until Peoples has
amended or supplemented the Prospectus to correct such misstatement or omission;
(j) obtain a CUSIP number for all Exchange Capital Securities and the
Capital Securities (and if the Trust has made a distribution of the Subordinated
Debentures to the Holders of the Capital Securities, the Subordinated Debentures
or the Exchange Debentures) as the case may be, not later than the effective
date of a Registration Statement, and provide the Trustee with printed
certificates for the Exchange Securities or the Registrable Securities, as the
case may be, in a form eligible for deposit with the Depositary;
(k) cause the Indenture, the Declaration, the Capital Securities Guarantee
and the Exchange Capital Securities Guarantee to be qualified under the Trust
Indenture Act of 1939 (the "TIA") in connection with the registration of the
Exchange Securities or Registrable Securities, as the case may be, and effect
such changes to such documents as may be required for them to be so qualified in
accordance with the terms of the TIA and execute, and use its best efforts to
cause the relevant trustee to execute, all documents as may be required to
effect such changes, and all other forms and documents required to be filed with
the SEC to enable such documents to be so qualified in a timely manner;
(l) in the case of a Shelf Registration, enter into such agreements
(including underwriting agreements) as are customary in underwritten offerings
and take all such other appropriate actions in connection therewith as are
reasonably requested by the holders of at least 25% in aggregate principal or
liquidation amount, as the case may be, of the Registrable Securities in order
to expedite or facilitate the registration or the disposition of the Registrable
Securities;
(m) in the case of a Shelf Registration, whether or not an underwriting
agreement is entered into and whether or not the registration is an underwritten
registration, if requested by (x) the Initial Purchaser, in the case where such
Initial Purchaser holds Securities acquired by it as part of its initial
allotment and (y) Holders of at least 25% in aggregate principal or liquidation
amount, as the case may be, of the Registrable Securities covered thereby: (i)
make such representations and warranties to Holders of such Registrable
Securities and the underwriters (if any), with respect to the business of the
Trust, Peoples and its subsidiaries as then conducted and the Registration
Statement, Prospectus and documents, if any, incorporated or deemed to be
incorporated by reference therein, in each case, as are customarily made by
issuers of debt securities to underwriters in underwritten offerings, and
confirm the same if and when requested; (ii) obtain opinions of counsel to
Peoples and the Trust and updates thereof (which may be in the form of a
reliance letter) in form and substance reasonably satisfactory to the managing
underwriters (if any) and the Holders of a majority in principal amount of the
Registrable Securities being sold, addressed to each selling Holder and the
underwriters (if any) covering the matters customarily covered in opinions
requested in underwritten offerings and such other matters as may be reasonably
requested by such underwriters (it being agreed that the matters to be covered
by such opinion may be subject to customary qualifications and exceptions);
(iii) obtain "cold comfort" letters and updates thereof in form and substance
reasonably satisfactory to the managing underwriters from the independent
certified public accountants of Peoples and the Trust (and, if necessary, any
other independent certified public accountants of any subsidiary of Peoples and
the Trust or of any business acquired by Peoples and the Trust for which
financial statements and financial data are, or are required to be, included in
the Registration Statement), addressed to each of the underwriters, such letters
to be in customary form and covering matters of the type customarily covered in
"cold comfort" letters in connection with underwritten offerings and such other
matters as reasonably requested by such underwriters in accordance with
Statement on Auditing Standards No. 72; and (iv) if an underwriting agreement is
entered into, the same shall contain indemnification provisions and procedures
no less favorable than those set forth in Section 4 hereof (or such other
provisions and procedures acceptable to Holders of a majority in aggregate
principal amount or liquidation amount, as the case may be, of Registrable
Securities covered by such Registration Statement and the managing underwriters
and agents) customary for such agreements with respect to all parties to be
indemnified pursuant to said Section (including, without limitation, such
underwriters and selling Holders). The above shall be done at each closing under
such underwriting agreement, or as and to the extent required thereunder;
(n) if (1) a Shelf Registration is filed pursuant to Section 2(b) or (2) a
Prospectus contained in an Exchange Offer Registration Statement filed pursuant
to Section 2(a) is required to be delivered under the Securities Act by any
Participating Broker-Dealer who seeks to sell Exchange Securities during the
Applicable Period, make reasonably available for inspection by any selling
Holder of such Registrable Securities or Participating Broker-Dealer, as
applicable, who certifies to Peoples and the Trust that it has a current
intention to sell Registrable Securities pursuant to the Shelf Registration, any
underwriter participating in any such disposition of Registrable Securities, if
any, and any attorney, accountant or other agent retained by any such selling
Holder or each such Participating Broker-Dealer, as the case may be, or
underwriter (collectively, the "Inspectors"), at the offices where normally
kept, during Peoples' normal business hours, all financial and other records,
pertinent corporate documents and properties of the Trust, Peoples and its
subsidiaries (collectively, the "Records") as shall be reasonably necessary to
enable them to exercise any applicable due diligence responsibilities, and cause
the officers, directors and employees of the Trust, Peoples and its subsidiaries
to supply or make available all relevant information in each case reasonably
requested by any such Inspector in connection with such Registration Statement.
Records which Peoples and the Trust determine, in good faith, to be confidential
and any Records which it notifies the Inspectors are confidential shall not be
disclosed by the Inspectors unless (i) the disclosure of such Records is
necessary to avoid or correct a material misstatement or omission in such
Registration Statement, (ii) subject to the last sentence of this Section 3(n),
the release of such Records is ordered pursuant to a subpoena or other order
from a court of competent jurisdiction or is necessary in connection with any
action, suit or proceeding or (iii) the Information in such Records has been
made generally available to the public (other than by an Inspector or a selling
Holder in breach of its obligations hereunder). Each selling Holder of such
Registrable Securities and each such Participating Broker-Dealer will be
required to agree in writing that information obtained by it as a result of such
inspections shall be deemed confidential and shall not be used by it as the
basis for any market transactions in the securities of the Trust or Peoples
unless and until such is made generally available to the public through no fault
of an Inspector or a selling Holder. Each selling Holder of such Registrable
Securities and each such Participating Broker-Dealer will be required to further
agree in writing that it will, upon learning that disclosure of such Records is
sought in a court of competent jurisdiction, or in connection with any action,
suit or proceeding give notice to Peoples and allow Peoples at its expense to
undertake appropriate action to prevent disclosure of the Records deemed
confidential;
(o) comply with all applicable rules and regulations of the SEC so long as
any provision of this Agreement shall be applicable and make generally available
to its securityholders earning statements satisfying the provisions of Section
11(a) of the Securities Act and Rule 158 thereunder (or any similar rule
promulgated under the Securities Act) no later than 45 days after the end of any
12-month period (or 90 days after the end of any 12-month period if such period
is a fiscal year) (i) commencing at the end of any fiscal quarter in which
Registrable Securities are sold to underwriters in a firm commitment or best
efforts underwritten offering and (ii) if not sold to underwriters in such an
offering, commencing on the first day of the first fiscal quarter of Peoples
after the effective date of a Registration Statement, which statements shall
cover said 12-month periods;
(p) upon consummation of an Exchange Offer or a Private Exchange, if
requested by a Trustee, obtain an opinion of counsel to Peoples addressed to the
Trustee for the benefit of all Holders of Registrable Securities participating
in the Exchange Offer or the Private Exchange, as the case may be, substantially
to the effect that (i) Peoples and the Trust, as the case requires, has duly
authorized, executed and delivered the Exchange Securities and Private Exchange
Securities, and (ii) each of the Exchange Securities or the Private Exchange
Securities, as the case may be, constitutes a legal, valid and binding
obligation of Peoples or the Trust, as the case requires, enforceable against
Peoples or the Trust, as the case requires, in accordance with its respective
terms (in each case, with customary exceptions);
(q) if an Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Registrable Securities by Holders to Peoples or the Trust, as
applicable (or to such other Person as directed by Peoples or the Trust,
respectively), in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be, Peoples or the Trust, as applicable, shall mark,
or cause to be marked, on such Registrable Securities delivered by such Holders
that such Registrable Securities are being cancelled in exchange for the
Exchange Securities or the Private Exchange Securities, as the case may be; in
no event shall such Registrable Securities be marked as paid or otherwise
satisfied;
(r) cooperate with each seller of Registrable Securities covered by any
Registration Statement and each underwriter, if any, participating in the
disposition of such Registrable Securities and their respective counsel in
connection with any filings required to be made with the NASD;
(s) take all other steps necessary to effect the registration of the
Registrable Securities covered by a Registration Statement contemplated hereby;
(t) (A) in the case of the Exchange Offer Registration Statement (i)
include in the Exchange Offer Registration Statement a section entitled "Plan of
Distribution," which section shall be reasonably acceptable to the Initial
Purchaser or another representative of the Participating Broker-Dealers, and
which shall contain a summary statement of the positions taken or policies made
by the staff of the SEC with respect to the potential "underwriter" status of
any broker-dealer (a "Participating Broker-Dealer") that holds Registrable
Securities acquired for its own account as a result of market-making activities
or other trading activities and that will be the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act) of Exchange Securities to be received by such
broker-dealer in the Exchange Offer, whether such positions or policies have
been publicly disseminated by the staff of the SEC or such positions or
policies, in the reasonable judgment of the Initial Purchaser or such other
representative, represent the prevailing views of the staff of the SEC,
including a statement that any such broker-dealer who receives Exchange
Securities for Registrable Securities pursuant to the Exchange Offer may be
deemed a statutory underwriter and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such
Exchange Securities, (ii) furnish to each Participating Broker-Dealer who has
delivered to Peoples the notice referred to in Section 3(e), without charge, as
many copies of each Prospectus included in the Exchange Offer Registration
Statement, including any preliminary prospectus, and any amendment or supplement
thereto, as such Participating Broker-Dealer may reasonably request (each of
Peoples and the Trust hereby consents to the use of the Prospectus forming part
of the Exchange Offer Registration Statement or any amendment or supplement
thereto by any Person subject to the prospectus delivery requirements of the
Securities Act, including all Participating Broker-Dealers, in connection with
the sale or transfer of the Exchange Securities covered by the Prospectus or any
amendment or supplement thereto), (iii) use its reasonable best efforts to keep
the Exchange Offer Registration Statement effective and to amend and supplement
the Prospectus contained therein in order to permit such Prospectus to be
lawfully delivered by all Persons subject to the prospectus delivery
requirements of the Securities Act for such period of time as such Persons must
comply with such requirements under the Securities Act and applicable rules and
regulations in order to resell the Exchange Securities; provided, however, that
such period shall not be required to exceed 90 days (or such longer period if
extended pursuant to the last sentence of Section 3 hereof) (the "Applicable
Period"), and (iv) include in the transmittal letter or similar documentation to
be executed by an exchange offeree in order to participate in the Exchange Offer
(x) the following provision:
If the exchange offeree is a broker-dealer holding Registrable Securities
acquired for its own account as a result of market-making activities or other
trading activities, it will deliver a prospectus meeting the requirements of the
Securities Act in connection with any resale of Exchange Securities received in
respect of such Registrable Securities pursuant to the Exchange Offer;
and (y) a statement to the effect that by a broker-dealer making the
acknowledgment described in clause (x) and by delivering a Prospectus in
connection with the exchange of Registrable Securities, the broker-dealer will
not be deemed to admit that it is an underwriter within the meaning of the
Securities Act; and
(B) in the case of any Exchange Offer Registration Statement, Peoples and
the Trust agree to deliver to the Initial Purchaser or to another representative
of the Participating Broker-Dealers, if requested by the Initial Purchaser or
such other representative of Participating Broker-Dealers, on behalf of the
Participating Broker-Dealers upon consummation of the Exchange Offer (i) an
opinion of counsel in form and substance reasonably satisfactory to the Initial
Purchaser or such other representative of the Participating Broker-Dealers,
covering the matters customarily covered in opinions requested in connection
with Exchange Offer Registration Statements and such other matters as may be
reasonably requested (it being agreed that the matters to be covered by such
opinion may be subject to customary qualifications and exceptions), (ii) an
officers' certificate containing certifications substantially similar to those
set forth in Section 5(f) of the Purchase Agreement and such additional
certifications as are customarily delivered in a public offering of debt
securities and (iii) as well as upon the effectiveness of the Exchange Offer
Registration Statement, a comfort letter, in each case in customary form, if
permitted by Statement on Auditing Standards No. 72.
Peoples or the Trust may require each seller of Registrable Securities as
to which any registration is being effected to furnish to Peoples or the Trust,
as applicable, such information regarding such seller as may be required by the
staff of the SEC to be included in a Registration Statement. Peoples or the
Trust may exclude from such registration the Registrable Securities of any
seller who fails to furnish such information within a reasonable time after
receiving such request. Peoples shall have no obligation to register under the
Securities Act the Registrable Securities of a seller who so fails to furnish
such information.
In the case of a Shelf Registration Statement, or if Participating
Broker-Dealers who have notified Peoples and the Trust that they will be
utilizing the Prospectus contained in the Exchange Offer Registration Statement
as provided in Section 3(t) hereof, are seeking to sell Exchange Securities and
are required to deliver Prospectuses, each Holder agrees that, upon receipt of
any notice from Peoples or the Trust of the happening of any event of the kind
described in Section 3(e)(ii), 3(e)(iii), 3(e)(v) or 3(e)(vi) hereof, such
Holder will forthwith discontinue disposition of Registrable Securities pursuant
to a Registration Statement until such Holder's receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(i) hereof or until
it is advised in writing (the "Advice") by Peoples and the Trust that the use of
the applicable Prospectus may be resumed, and, if so directed by Peoples and the
Trust, such Holder will deliver to Peoples or the Trust (at Peoples' or the
Trust's expense, as the case requires) all copies in such Holder's possession,
other than permanent file copies then in such Holder's possession, of the
Prospectus covering such Registrable Securities or Exchange Securities, as the
case may be, current at the time of receipt of such notice. If Peoples or the
Trust shall give any such notice to suspend the disposition of Registrable
Securities or Exchange Securities, as the case may be, pursuant to a
Registration Statement, Peoples and the Trust shall use their reasonable best
efforts to file and have declared effective (if an amendment) as soon as
practicable an amendment or supplement to the Registration Statement and shall
extend the period during which such Registration Statement is required to be
maintained effective and usable for resales pursuant to this Agreement by the
number of days in the period from and including the date of the giving of such
notice to and including the date when Peoples and the Trust shall have made
available to the Holders (x) copies of the supplemented or amended Prospectus
necessary to resume such dispositions or (y) the Advice.
4. Indemnification and Contribution. (a) In connection with any
Registration Statement, Peoples and the Trust shall, jointly and severally,
indemnify and hold harmless the Initial Purchaser, each Holder, each underwriter
who participates in an offering of the Registrable Securities, each
Participating Broker-Dealer, each Person, if any, who controls any of such
parties within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act and each of their respective partners, directors, officers,
employees and agents, as follows:
(i) from and against any and all loss, liability, claim, damage and expense
whatsoever, joint or several, as incurred, arising out of any untrue statement
or alleged untrue statement of a material fact contained in any Registration
Statement (or any amendment thereto), covering Registrable Securities or
Exchange Securities, including all documents incorporated therein by reference,
or the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading or
arising out of any untrue statement or alleged untrue statement of a material
fact contained in any Prospectus (or any amendment or supplement thereto) or the
omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading;
(ii) from and against any and all loss, liability, claim, damage and
expense whatsoever, joint or several, as incurred, to the extent of the
aggregate amount paid in settlement of any litigation, or any investigation or
proceeding by any court or governmental agency or body, commenced or threatened,
or of any claim whatsoever based upon any such untrue statement or omission, or
any such alleged untrue statement or omission, if (subject to Section 4(d)
below) such settlement is effected with the prior written consent of Peoples;
and
(iii) from and against any and all expenses whatsoever, as incurred
(including reasonable fees and disbursements of counsel chosen by such Holder,
such Participating Broker-Dealer, or any underwriter (except to the extent
otherwise expressly provided in Section 4(c) hereof)), reasonably incurred in
investigating, preparing or defending against any litigation, or any
investigation or proceeding by any court or governmental agency or body,
commenced or threatened, or any claim whatsoever based upon any such untrue
statement or omission, or any such alleged untrue statement or omission, to the
extent that any such expense is not paid under subparagraph (i) or (ii) of this
Section 4(a);
provided, however, that (i) this indemnity does not apply to any loss,
liability, claim, damage or expense to the extent arising out of an untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished in writing to Peoples
or the Trust by such Holder, such Participating Broker-Dealer or any underwriter
with respect to such Holder, Participating Broker-Dealer or any underwriter, as
the case may be, expressly for use in a Registration Statement (or any amendment
thereto) or any Prospectus (or any amendment or supplement thereto) and (ii) the
Company and the Trust shall not be liable to any such Holder, Participating
Broker-Dealer, any underwriter or controlling person, with respect to any untrue
statement or alleged untrue statement or omission or alleged omission in any
preliminary Prospectus to the extent that any such loss, liability, claim,
damage or expense of any Holder, Participating Broker-Dealer, any underwriter or
controlling person results from the fact that such Holder, any underwriter or
Participating Broker-Dealer sold Securities to a person to whom there was not
sent or given, at or prior to the written confirmation of such sale, a copy of
the final Prospectus as then amended or supplemented if Peoples had previously
furnished copies thereof to such Holder, underwriter or Participating
Broker-Dealer and the loss, liability, claim, damage or expense of such Holder,
underwriter, Participating Broker-Dealer or controlling person results from an
untrue statement or omission of a material fact contained in the preliminary
Prospectus which was corrected in the final Prospectus. Any amounts advanced by
the Company or the Trust to an indemnified party pursuant to this Section 4 as a
result of such losses shall be returned to Peoples or the Trust if it shall be
finally determined by such a court in a judgment not subject to appeal or final
review that such indemnified party was not entitled to indemnification by
Peoples or the Trust.
(b) Each Holder agrees, severally and not jointly, to indemnify and hold
harmless Peoples, the Trust, any underwriter and the other selling Holders and
each of their respective directors, officers (including each officer of Peoples
and the Trust who signed the Registration Statement), employees and agents and
each Person, if any, who controls Peoples, the Trust, any underwriter or any
other selling Holder within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, from and against any and all loss, liability,
claim, damage and expense whatsoever described in the indemnity contained in
Section 4(a) hereof, as incurred, but only with respect to untrue statements or
omissions, or alleged untrue statements or omissions, made in a Registration
Statement (or any amendment thereto) or any Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with written information
furnished to Peoples or the Trust by such selling Holder with respect to such
Holder expressly for use in such Registration Statement (or any amendment
thereto), or any such Prospectus (or any amendment or supplement thereto);
provided, however, that in the case of a Shelf Registration Statement, no such
Holder shall be liable for any claims hereunder in excess of the amount of net
proceeds received by such Holder from the sale of Registrable Securities
pursuant to such Shelf Registration Statement.
(c) Each indemnified party shall give prompt notice to each indemnifying
party of any action commenced against it in respect of which indemnity may be
sought hereunder, enclosing a copy of all papers properly served on such
indemnified party, but failure to so notify an indemnifying party shall not
relieve such indemnifying party from any liability which it may have under this
Section 4, except to the extent that it is materially prejudiced by such
failure. An indemnifying party may participate at its own expense in the defense
of such action, or, if it so elects within a reasonable time after receipt of
such notice, assume the defense of any suit brought to enforce any such claim;
but if it so elects to assume the defense, such defense shall be conducted by
counsel chosen by it and approved by the indemnified party or parties which
approval shall not be unreasonably withheld. In the event that an indemnifying
party elects to assume the defense of any such suit and retain such counsel, the
indemnified party or parties shall bear the fees and expenses of any additional
counsel thereafter retained by such indemnified party or parties; provided,
however, that the indemnified party or parties shall have the right to employ
counsel (in addition to local counsel) to represent the indemnified party or
parties who may be subject to liability arising out of any action in respect of
which indemnity may be sought against the indemnifying party if, in the
reasonable judgment of counsel for the indemnified party or parties, there may
be legal defenses available to such indemnified party or parties which are
different from or in addition to those available to the indemnifying party, in
which event the fees and expenses of appropriate separate counsel shall be borne
by the indemnifying party. In no event shall the indemnifying parties be liable
for the fees and expenses of more than one counsel (in addition to local
counsel), separate from its own counsel, for all indemnified parties in
connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the
indemnified parties which consent shall not be unreasonably withheld, settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 4 (whether or
not the indemnified parties are actual or potential parties thereto), unless
such settlement, compromise or consent (i) includes an unconditional written
release in form and substance satisfactory to the indemnified parties of each
indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.
(d) If at any time an indemnified party shall have validly requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 4(a)(ii) effected without its
written consent if (i) such settlement is entered into more than 45 days after
receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.
(e) In order to provide for just and equitable contribution in
circumstances under which any of the indemnity provisions set forth in this
Section 4 is for any reason held to be unavailable to the indemnified parties
although applicable in accordance with its terms, Peoples, the Trust, and the
Holders shall contribute to the aggregate losses, liabilities, claims, damages
and expenses of the nature contemplated by such indemnity agreement incurred by
Peoples, the Trust, and the Holders, as incurred; provided that no Person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933
Act) shall be entitled to contribution from any Person that was not guilty of
such fraudulent misrepresentation. As between Peoples, the Trust, and the
Holders, such parties shall contribute to such aggregate losses, liabilities,
claims, damages and expenses of the nature contemplated by such indemnity
agreement in such proportion as shall be appropriate to reflect the relative
fault of Peoples and the Trust, on the one hand, and the Holders, on the other
hand, with respect to the statements or omissions which resulted in such loss,
liability, claim, damage or expense, or action in respect thereof, as well as
any other relevant equitable considerations. The relative fault of Peoples and
the Trust, on the one hand, and of the Holders, on the other hand, shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by Peoples or the Trust, on the
one hand, or by or on behalf of the Holders, on the other, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. Peoples, the Trust and the Holders of the
Registrable Securities agree that it would not be just and equitable if
contribution pursuant to this Section 4 were to be determined by pro rata
allocation or by any other method of allocation that does not take into account
the relevant equitable considerations. For purposes of this Section 4, each
Affiliate of a Holder, and each director, officer, employee, agent and Person,
if any, who controls a Holder or such Affiliate within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act shall have the same
rights to contribution as such Holder, and each director of each of Peoples or
the Trust, each officer of each of Peoples or the Trust who signed the
Registration Statement, and each Person, if any, who controls each of Peoples
and the Trust within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act shall have the same rights to contribution as each of
Peoples or the Trust.
5. Participation in an Underwritten Registration. No Holder may participate
in an underwritten registration hereunder unless such Holder (a) agrees to sell
such Holder's Registrable Securities on the basis provided in the underwriting
arrangement approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all reasonable questionnaires,
powers of attorney, indemnities, underwriting agreements, lock-up letters and
other documents reasonably required under the terms of such underwriting
arrangements.
6. Selection of Underwriters. The Holders of Registrable Securities covered
by the Shelf Registration Statement who desire to do so may sell the securities
covered by such Shelf Registration in an underwritten offering, subject to the
provisions of Section 3(l) hereof. In any such underwritten offering, the
underwriter or underwriters and manager or managers that will administer the
offering will be selected by the Holders of a majority in aggregate principal
amount or liquidation amount, as applicable, of the Registrable Securities
included in such offering; provided, however, that such underwriters and
managers must be reasonably satisfactory to Peoples and the Trust.
7. Miscellaneous.
(a) Rule 144 and Rule 144A. For so long as Peoples or the Trust is subject
to the reporting requirements of Section 13 or 15 of the Exchange Act and any
Registrable Securities remain outstanding, each of Peoples and the Trust, as the
case may be, will file the reports required to be filed by it under the
Securities Act and Section 13(a) or 15(d) of the Exchange Act and the rules and
regulations adopted by the SEC thereunder, provided that if it ceases to be so
required to file such reports, it will, upon the request of any Holder of
Registrable Securities (a) make publicly available such information as is
necessary to permit sales of its securities pursuant to Rule 144 under the
Securities Act, (b) deliver such information to a prospective purchaser as is
necessary to permit sales of its securities pursuant to Rule 144A under the
Securities Act, and (c) take such further action that is reasonable in the
circumstances, in each case, to the extent required from time to time to enable
such Holder to sell its Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by (i) Rule 144
under the Securities Act, as such rule may be amended from time to time, (ii)
Rule 144A under the Securities Act, as such rule may be amended from time to
time, or (iii) any similar rules or regulations hereafter adopted by the SEC.
Upon the request of any Holder of Registrable Securities, Peoples and the Trust
will deliver to such Holder a written statement as to whether it has complied
with such requirements.
(b) No Inconsistent Agreements. Peoples or the Trust has not entered into,
nor will Peoples or the Trust on or after the date of this Agreement enter into,
any agreement which is inconsistent with the rights granted to the Holders of
Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof. The rights granted to the Holders hereunder do not in any way
conflict with and are not inconsistent with the rights granted to the holders of
Peoples' or the Trust's other issued and outstanding securities under any such
agreements.
(c) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless Peoples and the Trust has obtained the written consent of Holders of at
least a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or
departure; provided that no amendment, modification or supplement or waiver or
consent to the departure with respect to the provisions of Section 4 hereof
shall be effective as against any Holder of Registrable Securities unless
consented to in writing by such Holder of Registrable Securities.
Notwithstanding the foregoing sentence, (i) this Agreement may be amended,
without the consent of any Holder of Registrable Securities, by written
agreement signed by Peoples, the Trust and the Initial Purchaser, to cure any
ambiguity, correct or supplement any provision of this Agreement that may be
inconsistent with any other provision of this Agreement or to make any other
provisions with respect to matters or questions arising under this Agreement
which shall not be inconsistent with other provisions of this Agreement, (ii)
this Agreement may be amended, modified or supplemented, and waivers and
consents to departures from the provisions hereof may be given by written
agreement signed by Peoples, the Trust and the Initial Purchaser to the extent
that any such amendment, modification, supplement, waiver or consent is, in
their reasonable judgment, necessary or appropriate to comply with applicable
law (including any interpretation of the Staff of the SEC) or any change therein
and (iii) to the extent any provision of this Agreement relates to the Initial
Purchaser, such provision may be amended, modified or supplemented, and waivers
or consents to departures from such provisions may be given, by written
agreement signed by the Initial Purchaser, Peoples and the Trust.
(d) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, registered first-class
mail, telecopier, or any courier guaranteeing overnight delivery (i) if to a
Holder, at the most current address given by such Holder to Peoples or the Trust
by means of a notice given in accordance with the provisions of this Section
7(d), which address initially is, with respect to the Initial Purchaser, the
address set forth in the Purchase Agreement; and (ii) if to Peoples or the
Trust, initially at Peoples' address set forth in the Purchase Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 7(d).
All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telecopied; and on the next Business Day, if timely delivered
to an air courier guaranteeing overnight delivery.
Copies of all such notices, demands, or other communications shall be
concurrently delivered by the Person giving the same to the Trustee, at the
address specified in the Indenture.
(e) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of the Initial
Purchaser, including, without limitation and without the need for an express
assignment, subsequent Holders; provided, however, that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture.
If any transferee of any Holder shall acquire Registrable Securities, in any
manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all of the terms of this Agreement, and by taking and
holding such Registrable Securities, such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement and such Person shall be entitled to receive the benefits hereof.
(f) Third Party Beneficiary. The Initial Purchaser and any Participating
Broker-Dealer shall be a third party beneficiary of the agreements made
hereunder between Peoples and the Trust, on the one hand, and the Holders, on
the other hand, and shall have the right to enforce such agreements directly to
the extent it deems such enforcement necessary or advisable to protect its
rights or the rights of Holders hereunder.
(g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.
(h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.
(i) GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE IN THE
STATE OF NEW YORK. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE
TERMS AND CONDITIONS SET FORTH HEREIN, SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY
PROVISIONS RELATING TO CONFLICTS OF LAWS. EACH OF THE PARTIES HERETO AGREES TO
SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE MATTERS
CONTEMPLATED HEREBY, IRREVOCABLY WAIVES ANY DEFENSE OF LACK OF PERSONAL
JURISDICTION AND IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUIT,
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT. THE COMPANY,
ON BEHALF OF ITSELF AND THE SUBSIDIARIES (INCLUDING, WITHOUT LIMITATION, THE
TRUST), IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER
APPLICABLE LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND
ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.
PEOPLES BANCORP INC.
By: /s/ROBERT E. EVANS
Robert E. Evans
President and Chief Executive Officer
PEBO CAPITAL TRUST I
By: /S/JOHN W. CONLON
John W. Conlon
Administrative Trustee
By: /S/CHARLES R. HUNSAKER
Charles R. Hunsaker
Administrative Trustee
By: /s/MARK F. BRADLEY
Mark F. Bradley
Administrative Trustee
Confirmed and accepted as of the date first above written:
SANDLER O'NEILL & PARTNERS, L.P.
By SANDLER O'NEILL & PARTNERS CORP.,
the sole general partner
By: /s/CATHERINE A. LAWTON
Catherine A. Lawton
Vice President
Exhibit 5.1
- -----------
[LETTERHEAD OF VORYS, SATER, SEYMOUR AND PEASE LLP]
June 21, 1999
Board of Directors
Peoples Bancorp Inc.
138 Putnam Street
Marietta, OH 45750
Gentlemen:
In connection with the registration under the Securities Act of 1933,
as amended (the "1933 Act"), of (a) $30,000,000 aggregate principal
amount of Series B 8.62% Junior Subordinated Deferrable Interest
Debentures (the "Exchange Junior Subordinated Debentures") of Peoples
Bancorp Inc., an Ohio corporation ("Peoples"), to be issued pursuant to
the terms of the Indenture dated as of April 20, 1999 (the "Indenture"),
between Peoples and Wilmington Trust Company, as Debenture Trustee;
(b) $30,000,000 aggregate liquidation amount of Series B 8.62% Capital
Securities (the "Exchange Capital Securities") of PEBO Capital Trust I,
a business trust created under the laws of the State of Delaware (the
"Trust"), to be issued pursuant to the terms of the Amended and
Restated Declaration of Trust, dated as of April 20, 1999 (the "Amended
and Restated Declaration of Trust"), among Peoples and Wilmington
Trust Company, as Property Trustee and as Delaware Trustee, and
the Administrative Trustees named therein; and (c) the Series B Capital
Securities Guarantee related to the Exchange Capital Securities
(the "Exchange Guarantee") to be executed and delivered by Peoples
for the benefit of the holders from time to time of the Exchange
Capital Securities, we, as your counsel, have examined such corporate
records, certificates and other documents, and such questions of law,
as we have considered necessary or appropriate for the purposes of
this opinion. We have also relied as to certain matters related to
Peoples on information obtained from public officials, officers
of Peoples and other sources believed by us to be responsible.
In our examinations, we have assumed and have not verified
(i) the legal capacity of all natural persons, (ii) the genuineness
of all signatures, (iii) the authenticity of all documents submitted
to us as originals, (iv) the conformity to original documents of all
documents submitted to us as copies and the authenticity of the
originals of such latter documents, and (v) the accuracy and
completeness of all corporate records and documents and of all
certificates and statements of fact, in each case given or made
available to us by Peoples.
Upon the basis of such examination, we advise you that, when:
(i) the Registration Statement on Form S-4 (the "Registration
Statement") relating to the Exchange Junior Subordinated Debentures, the
Exchange Capital Securities and the Exchange Guarantee has become
effective under the 1933 Act;
(ii) the Series B Capital Securities Guarantee Agreement
relating to the Exchange Guarantee with respect to the Exchange Capital
Securities of the Trust has been duly executed and delivered;
(iii) the Exchange Junior Subordinated Debentures have been
duly executed and authenticated in accordance with the Indenture and
issued and delivered as contemplated in the Registration Statement; and
(iv) the Exchange Capital Securities have been duly executed
in accordance with the Amended and Restated Declaration of Trust of the
Trust and issued and delivered as contemplated in the Registration Statement,
the Exchange Junior Subordinated Debentures and the Exchange Guarantee
relating to the Exchange Capital Securities of the Trust will constitute
valid and legally binding obligations of Peoples, subject to the
limitations, if any, of Title 11 U.S.C., as amended, and of the
applicable insolvency, reorganization, moratorium or other laws
affecting the enforcement of creditors' rights generally and by
principles of equity.
We understand that you have received an opinion regarding the
Exchange Capital Securities from Richards, Layton & Finger, P.A.,
special Delaware counsel for Peoples and the Trust. We are expressing
no opinion with respect to the matters contained in such opinion.
Members of our firm are admitted to the bar in the State of Ohio
and we express no opinion as to the laws of any other jurisdiction
other than the laws of the United States. We note that each of the
Indenture, the Exchange Junior Subordinated Debentures, the Series B
Capital Securities Guarantee Agreement and the Exchange Guarantee is
governed by the laws of the State of New York. For purposes of this
opinion, we have assumed that the laws of the State of New York are
not inconsistent with the laws of Ohio in any matter material to this
opinion.
We hereby consent to the filing of this opinion as an exhibit to
the Registration Statement and to the references to us under the heading
"Legal matters" in the Prospectus. In giving such consent, we do
not thereby admit that we are in the category of persons whose consent
is required under Section 7 of the 1933 Act.
Very truly yours,
/s/ VORYS, SATER, SEMOUR AND PEASE LLP
Vorys, Sater, Seymour and Pease LLP
June 21, 1999
PEBO Capital Trust I
Peoples Bancorp Inc.
138 Putnam Street
Marietta, Ohio 45750
Re: PEBO Capital Trust I
--------------------
Ladies and Gentlemen:
We have acted as special Delaware counsel for PEBO Capital
Trust I, a Delaware business trust (the "Trust"), and Peoples Bancorp Inc., an
Ohio corporation (the "Company"), in connection with the matters set forth
herein. At your request, this opinion is being furnished to you.
For purposes of giving the opinions hereinafter set forth, our
examination of documents has been limited to the examination of originals or
copies of the following:
(1) The Certificate of Trust of the Trust (the
"Certificate"), as filed in the office of the
Secretary of State of the State of Delaware (the
"Secretary of State") on April 13, 1999;
(2) The Original Declaration of Trust, dated as of April 13, 1999,
among the Company and the trustees named therein;
(3) The Amended and Restated Declaration of Trust
(including Annex 1 and the Exhibits thereto), dated
as of April 20, 1999 (the "Declaration of Trust"),
among the Company, as Sponsor, the trustees named
therein (the "Trustees") and the holders from time to
time of undivided beneficial interests in the Trust;
(4) The Registration Statement (the "Registration
Statement") on Form S-4, including a preliminary
prospectus (the "Prospectus") relating to the Series
B 8.62% Capital Securities of the Trust representing
undivided beneficial interests in the Trust (each, a
"Series B Capital Security" and collectively, the
"Series B Capital Securities"), as filed by the
Company and the Trust with the Securities and
Exchange Commission on June __, 1999; and
(5) A Certificate of Good Standing for the Trust, dated June __, 1999,
obtained from the Secretary of State.
Initially capitalized terms used herein and not otherwise
defined are used as defined in the Declaration of Trust.
For purposes of this opinion, we have not reviewed any
documents other than the documents listed above, and we have assumed that there
exists no provision in any document that we have not reviewed that bears upon or
is inconsistent with the opinions stated herein. We have conducted no
independent factual investigation of our own but rather have relied solely upon
the foregoing documents, the statements and information set forth therein and
the additional matters recited or assumed herein, all of which we have assumed
to be true, complete and accurate in all material respects.
With respect to all documents examined by us, we have assumed
(i) the authenticity of all documents submitted to us as authentic originals,
(ii) the conformity with the originals of all documents submitted to us as
copies or forms, and (iii) the genuineness of all signatures.
For purposes of this opinion, we have assumed (i) that the
Declaration of Trust constitutes the entire agreement among the parties thereto
with respect to the subject matter thereof, including with respect to the
creation, operation and termination of the Trust, and that the Declaration of
Trust and the Certificate are in full force and effect and have not been
amended, (ii) except to the extent provided in paragraph 1 below, the due
creation or due organization or due formation, as the case may be, and valid
existence in good standing of each party to the documents examined by us under
the laws of the jurisdiction governing its creation, organization or formation,
(iii) the legal capacity of natural persons who are parties to the documents
examined by us, (iv) that each of the parties to the documents examined by us
has the power and authority to execute and deliver, and to perform its
obligations under, such documents, (v) the due authorization, execution and
delivery by all parties thereto of all documents examined by us, (vi) the
receipt by each Person to whom a Series B Capital Security is to be issued by
the Trust (collectively, the "Series B Capital Security Holders") of a Series B
Capital Security Certificate for such Series B Capital Security in exchange for
a Series A Capital Security, in accordance with the Declaration of Trust and the
Prospectus, and (vii) that the Series B Capital Securities will be executed,
authenticated and issued to the Series B Capital Security Holders in accordance
with the Declaration of Trust and the Prospectus. We have not participated in
the preparation of the Registration Statement or the Prospectus and assume no
responsibility for their contents.
This opinion is limited to the laws of the State of Delaware
(excluding the securities laws of the State of Delaware), and we have not
considered and express no opinion on the laws of any other jurisdiction,
including federal laws and rules and regulations relating thereto. Our opinions
are rendered only with respect to Delaware laws and rules, regulations and
orders thereunder which are currently in effect.
Based upon the foregoing, and upon our examination of such
questions of law and statutes of the State of Delaware as we have considered
necessary or appropriate, and subject to the assumptions, qualifications,
limitations and exceptions set forth herein, we are of the opinion that:
1. The Trust has been duly created and is validly existing in good standing
as a business trust under the Delaware Business Trust Act, 12 Del. C. ss. 3801
et seq.
2. The Series B Capital Securities will represent valid and, subject to the
qualifications set forth in paragraph 3 below, fully paid and nonassessable
undivided beneficial interests in the assets of the Trust.
3. The Series B Capital Security Holders, as beneficial owners of the Trust,
will 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. We note that the Series B Capital
Security Holders may be obligated to make payments as set forth in the
Declaration of Trust.
We consent to the filing of this opinion with the Securities
and Exchange Commission as an exhibit to the Registration Statement. In
addition, we hereby consent to the use of our name under the heading "Legal
Matters" in the Prospectus. In giving the foregoing consents, we do not thereby
admit that we come within the category of Persons whose consent is required
under Section 7 of the Securities Act of 1933, as amended, or the rules and
regulations of the Securities and Exchange Commission thereunder.
Very truly yours,
/s/ RICHARDS, LAYTON, & FINGERS, P.A.
Richards, Layton & Fingers, P.A.
June 21, 1999
Board of Directors
Peoples Bancorp Inc.
138 Putnam Street
Marietta, Ohio
45750
Ladies and Gentlemen:
As special federal tax counsel to PEBO Capital Trust I (the "Trust") and
Peoples Bancorp Inc. ("Peoples") in connection with the exchange offer by the
Trust of up to $30,000,000 of its Series B 8.62% Capital Securities pursuant to
the prospectus (the "Prospectus") contained in the Registration Statement for
the exchange offer, and assuming the operative documents described in the
Prospectus will be performed in accordance with the terms described therein, we
hereby confirm to you our opinion as set forth under the heading "Certain
federal income tax consequences" in the Prospectus, subject to the limitations
set forth therein.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the references to us under the heading, "Certain
federal income tax consequences" and "Legal matters" in the Prospectus. In
giving such consent, we do not thereby admit that we are in the category of
persons whose consent is required under Section 7 of the Securities Act of 1933.
Very truly yours,
/s/ VORYS, SATER, SEYMOUR AND PEASE LLP
Vorys, Sater, Seymour and Pease LLP
bjs
We consent to the reference to our firm under the caption "Experts" in the
Registration Statement (Form S-4, No. 333-________) and related Prospectus of
Peoples Bancorp Inc. for the registration of $30,000,000 aggregate liquidation
amount of its Series B 8.62% Capital Securities and to the incorporation by
reference therein of our report dated February 8, 1999, with respect to the
consolidated financial statements of Peoples Bancorp Inc. incorporated by
reference in its Annual Report (Form 10-K) for the year ended December 31, 1998,
filed with the Securities and Exchange Commission
/s/ ERNST & YOUNG LLP
Ernst & Young LLP
Charleston, West Virginia
June 15, 1999
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned
officers and/or directors of PEOPLES BANCORP INC., an Ohio corporation, which is
about to file with the Securities and Exchange Commission, Washington, D.C.,
under the provisions of the Securities Act of 1933, as amended, a Registration
Statement on Form S-4 for the registration of the Series B 8.62% Junior
Subordinated Deferrable Interest Debentures due May 1, 2029 and the Series B
Capital Securities Guarantee of Peoples Bancorp Inc. and the Series B 8.62%
Capital Securities of PEBO Capital Trust I, hereby constitutes and appoints
Robert E. Evans, John W. Conlon and Charles R. Hunsaker, and each of them, as
his true and lawful attorneys-in-fact and agents with full power of substitution
and resubstitution, for him and in his name, place and stead, in any and all
capacities, to sign such Registration Statement and any and all amendments
thereto, and to file the same, with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission and The Nasdaq
Stock Market, granting unto each of said attorneys-in-fact and agents, and
substitute or substitutes, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all things that each of said
attorneys-in-fact and agents, or his or their substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, each of the undersigned has hereunto set
his hand this 10th day of June, 1999.
/s/ ROBERT E. EVANS /s/ REX E. MAIDEN
Robert E. Evans Rex E. Maiden
/S/ GEORGE W. BROUGHTON /S/ PAUL T. THEISEN
George W. Broughton Paul T. Theisen
/S/ FRANK L. CHRISTY /S/ THOMAS C. VADAKIN
Frank L. Christy Thomas C. Vadakin
/S/ WILFORD D. DIMIT /S/ JOSEPH H. WESEL
Wilford D. Dimit Joseph H. Wesel
/S/ BARTON S. HOLL /S/ JOHN W. CONLON
Barton S. Holl John W. Conlon
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM T-1
STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939
OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE PURSUANT TO
SECTION 305(b)(2)
WILMINGTON TRUST COMPANY
-------------------------------------------------
(Exact name of trustee as specified in its charter)
Delaware 51-0055023
- ----------------------- ------------------------------------
(State of incorporation) (I.R.S. employer identification no.)
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
--------------------------------------
(Address of principal executive offices)
Cynthia L. Corliss
Vice President and Trust Counsel
Wilmington Trust Company
Rodney Square North
Wilmington, Delaware 19890
(302) 651-8516
-------------------------------------------------------
(Name, address and telephone number of agent for service)
PEOPLES BANCORP INC.
-------------------------------------------------
(Exact name of obligor as specified in its charter)
Ohio 31-0987416
- ----------------------- ----------------------------------
(State of incorporation) (I.R.S. employer identification no.)
138 Putnam Street
Marietta, Ohio 45750
- --------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Series B 8.62% Junior Subordinated Deferrable Interest Debentures
of Peoples Bancorp Inc.
(Title of the indenture securities)
ITEM 1. GENERAL INFORMATION.
Furnish the following information as to the trustee:
Name and address of each examining or supervising authority
to which it is subject.
Federal Deposit Insurance Co. State Bank Commissioner
Five Penn Center Dover, Delaware
Suite #2901
Philadelphia, PA
Whether it is authorized to exercise corporate trust powers.
The trustee is authorized to exercise corporate trust
powers.
ITEM 2. AFFILIATIONS WITH THE OBLIGOR.
If the obligor is an affiliate of the trustee, describe each
affiliation:
Based upon an examination of the books and records of the
trustee and upon information furnished by the obligor, the obligor
is not an affiliate of the trustee.
ITEM 3. LIST OF EXHIBITS.
List below all exhibits filed as part of this Statement of
Eligibility and Qualification.
A. Copy of the Charter of Wilmington Trust Company, which
includes the certificate of authority of Wilmington Trust
Company to commence business and the authorization of
Wilmington Trust Company to exercise corporate trust powers.
B. Copy of By-Laws of Wilmington Trust Company.
C. Consent of Wilmington Trust Company required by Section
21(b) of Trust Indenture Act.
D. Copy of most recent Report of Condition of Wilmington Trust
Company.
Pursuant to the requirements of the Trust Indenture Act of 1939, as
amended, the trustee, Wilmington Trust Company, a corporation organized and
existing under the laws of Delaware, has duly caused this Statement of
Eligibility to be signed on its behalf by the undersigned, thereunto duly
authorized, all in the City of Wilmington and State of Delaware on the 15th day
of June, 1999.
WILMINGTON TRUST COMPANY
[SEAL]
Attest: /s/ Donald G. MacKelcan By: /s/ James P. Lawler
Assistant Secretary Name: James P. Lawler
Title: Vice President
EXHIBIT A
AMENDED CHARTER
Wilmington Trust Company
Wilmington, Delaware
As existing on May 9, 1987
Amended Charter
or
Act of Incorporation
of
Wilmington Trust Company
Wilmington Trust Company, originally incorporated by an Act of the
General Assembly of the State of Delaware, entitled "An Act to Incorporate the
Delaware Guarantee and Trust Company", approved March 2, A.D. 1901, and the name
of which company was changed to "Wilmington Trust Company" by an amendment filed
in the Office of the Secretary of State on March 18, A.D. 1903, and the Charter
or Act of Incorporation of which company has been from time to time amended and
changed by merger agreements pursuant to the corporation law for state banks and
trust companies of the State of Delaware, does hereby alter and amend its
Charter or Act of Incorporation so that the same as so altered and amended shall
in its entirety read as follows:
First: - The name of this corporation is Wilmington Trust Company.
Second: - The location of its principal office in the State of Delaware is
at Rodney Square North, in the City of Wilmington, County of New
Castle; the name of its resident agent is Wilmington Trust Company
whose address is Rodney Square North, in said City. In addition to
such principal office, the said corporation maintains and operates
branch offices in the City of Newark, New Castle County, Delaware,
the Town of Newport, New Castle County, Delaware, at Claymont, New
Castle County, Delaware, at Greenville, New Castle County Delaware,
and at Milford Cross Roads, New Castle County, Delaware, and shall
be empowered to open, maintain and operate branch offices at Ninth
and Shipley Streets, 418 Delaware Avenue, 2120 Market Street, and
3605 Market Street, all in the City of Wilmington, New Castle
County, Delaware, and such other branch offices or places of
business as may be authorized from time to time by the agency or
agencies of the government of the State of Delaware empowered to
confer such authority.
Third:- (a) The nature of the business and the objects and purposes
proposed to be transacted, promoted or carried on by this
Corporation are to do any or all of the things herein mentioned as
fully and to the same extent as natural persons might or could do
and in any part of the world, viz.:
(1) To sue and be sued, complain and defend in any Court of
law or equity and to make and use a common seal, and alter
the seal at pleasure, to hold, purchase, convey, mortgage or
otherwise deal in real and personal estate and property, and
to appoint such officers and agents as the business of the
Corporation shall require, to make by-laws not inconsistent
with the Constitution or laws of the United States or of
this State, to discount bills, notes or other evidences of
debt, to receive deposits of money, or securities for money,
to buy gold and silver bullion and foreign coins, to buy and
sell bills of exchange, and generally to use, exercise and
enjoy all the powers, rights, privileges and franchises
incident to a corporation which are proper or necessary for
the transaction of the business of the Corporation hereby
created.
(2) To insure titles to real and personal property, or any
estate or interests therein, and to guarantee the holder of
such property, real or personal, against any claim or
claims, adverse to his interest therein, and to prepare and
give certificates of title for any lands or premises in the
State of Delaware, or elsewhere.
(3) To act as factor, agent, broker or attorney in the
receipt, collection, custody, investment and management of
funds, and the purchase, sale, management and disposal of
property of all descriptions, and to prepare and execute all
papers which may be necessary or proper in such business.
(4) To prepare and draw agreements, contracts, deeds,
leases, conveyances, mortgages, bonds and legal papers of
every description, and to carry on the business of
conveyancing in all its branches.
(5) To receive upon deposit for safekeeping money, jewelry,
plate, deeds, bonds and any and all other personal property
of every sort and kind, from 9executors, administrators,
guardians, public officers, courts, receivers,
assignees, trustees, and from all fiduciaries, and from all other persons and
individuals, and from all corporations whether state, municipal, corporate or
private, and to rent boxes, safes, vaults and other receptacles for such
property.
(6) To act as agent or otherwise for the purpose of
registering, issuing, certificating, countersigning,
transferring or underwriting the stock, bonds or other
obligations of any corporation, association, state or
municipality, and may receive and manage any sinking fund
therefor on such terms as may be agreed upon between the two
parties, and in like manner may act as Treasurer of any
corporation or municipality.
(7) To act as Trustee under any deed of trust, mortgage,
bond or other instrument issued by any state, municipality,
body politic, corporation, association or person, either
alone or in conjunction with any other person or persons,
corporation or corporations.
(8) To guarantee the validity, performance or effect of any
contract or agreement, and the fidelity of persons holding
places of responsibility or trust; to become surety for any
person, or persons, for the faithful performance of any
trust, office, duty, contract or agreement, either by itself
or in conjunction with any other person, or persons,
corporation, or corporations, or in like manner become
surety upon any bond, recognizance, obligation, judgment,
suit, order, or decree to be entered in any court of record
within the State of Delaware or elsewhere, or which may now
or hereafter be required by any law, judge, officer or court
in the State of Delaware or elsewhere.
(9) To act by any and every method of appointment as
trustee, trustee in bankruptcy, receiver, assignee, assignee
in bankruptcy, executor, administrator, guardian, bailee, or
in any other trust capacity in the receiving, holding,
managing, and disposing of any and all estates and property,
real, personal or mixed, and to be appointed as such
trustee, trustee in bankruptcy, receiver, assignee, assignee
in bankruptcy, executor, administrator, guardian or bailee
by any persons, corporations, court, officer, 10or
authority, in the State of Delaware or
elsewhere; and whenever this Corporation is so appointed by any person,
corporation, court, officer or authority such trustee, trustee in bankruptcy,
receiver, assignee, assignee in bankruptcy, executor, administrator, guardian,
bailee, or in any other trust capacity, it shall not be required to give bond
with surety, but its capital stock shall be taken and held as security for the
performance of the duties devolving upon it by such appointment.
(10) And for its care, management and trouble, and the
exercise of any of its powers hereby given, or for the
performance of any of the duties which it may undertake or
be called upon to perform, or for the assumption of any
responsibility the said Corporation may be entitled to
receive a proper compensation.
(11) To purchase, receive, hold and own bonds, mortgages,
debentures, shares of capital stock, and other securities,
obligations, contracts and evidences of indebtedness, of any
private, public or municipal corporation within and without
the State of Delaware, or of the Government of the United
States, or of any state, territory, colony, or possession
thereof, or of any foreign government or country; to
receive, collect, receipt for, and dispose of interest,
dividends and income upon and from any of the bonds,
mortgages, debentures, notes, shares of capital stock,
securities, obligations, contracts, evidences of
indebtedness and other property held and owned by it, and to
exercise in respect of all such bonds, mortgages,
debentures, notes, shares of capital stock, securities,
obligations, contracts, evidences of indebtedness and other
property, any and all the rights, powers and privileges of
individual owners thereof, including the right to vote
thereon; to invest and deal in and with any of the moneys of
the Corporation upon such securities and in such manner as
it may think fit and proper, and from time to time to vary
or realize such investments; to issue bonds and secure the
same by pledges or deeds of trust or mortgages of or upon
the whole or any part of the property held or owned by the
Corporation, and to sell and pledge such bonds, as and when
the Board of Directors shall determine, and in the promotion
of its said corporate business of investment and to the
extent authorized by law, to lease, purchase, hold, 11sell,
assign,
transfer, pledge, mortgage and convey real and personal property of any name and
nature and any estate or interest therein.
(b) In furtherance of, and not in limitation, of the powers conferred by
the laws of the State of Delaware, it is hereby expressly provided
that the said Corporation shall also have the following powers:
(1) To do any or all of the things herein set forth, to the
same extent as natural persons might or could do, and in any
part of the world.
(2) To acquire the good will, rights, property and
franchises and to undertake the whole or any part of the
assets and liabilities of any person, firm, association or
corporation, and to pay for the same in cash, stock of this
Corporation, bonds or otherwise; to hold or in any manner to
dispose of the whole or any part of the property so
purchased; to conduct in any lawful manner the whole or any
part of any business so acquired, and to exercise all the
powers necessary or convenient in and about the conduct and
management of such business.
(3) To take, hold, own, deal in, mortgage or otherwise lien,
and to lease, sell, exchange, transfer, or in any manner
whatever dispose of property, real, personal or mixed,
wherever situated.
(4) To enter into, make, perform and carry out contracts of
every kind with any person, firm, association or
corporation, and, without limit as to amount, to draw, make,
accept, endorse, discount, execute and issue promissory
notes, drafts, bills of exchange, warrants, bonds,
debentures, and other negotiable or transferable
instruments.
(5) To have one or more offices, to carry on all or any of
its operations and businesses, without restriction to the
same extent as natural persons might or could do, to
purchase or otherwise acquire, to hold, own, to mortgage,
sell, convey or otherwise dispose of, real and personal
property, of every class and description, in any State,
District, Territory or Colony of the United States, and in
any foreign country or place.
(6) It is the intention that the objects, purposes and
powers specified and clauses contained in this paragraph
shall (except where otherwise expressed in said paragraph)
be nowise limited or restricted by reference to or inference
from the terms of any other clause of this or any other
paragraph in this charter, but that the objects, purposes
and powers specified in each of the clauses of this
paragraph shall be regarded as independent objects, purposes
and powers.
Fourth: - (a) The total number of shares of all classes of stock which
the Corporation shall have authority to issue is
forty-one million (41,000,000) shares, consisting of:
(1) One million (1,000,000) shares of Preferred stock, par
value $10.00 per share (hereinafter referred to as
"Preferred Stock"); and
(2) Forty million (40,000,000) shares of Common Stock, par
value $1.00 per share (hereinafter referred to as "Common
Stock").
(b) Shares of Preferred Stock may be issued from time to time in one or
more series as may from time to time be determined by the Board of Directors
each of said series to be distinctly designated. All shares of any one series of
Preferred Stock shall be alike in every particular, except that there may be
different dates from which dividends, if any, thereon shall be cumulative, if
made cumulative. The voting powers and the preferences and relative,
participating, optional and other special rights of each such series, and the
qualifications, limitations or restrictions thereof, if any, may differ from
those of any and all other series at any time outstanding; and, subject to the
provisions of subparagraph 1 of Paragraph (c) of this Article Fourth, the Board
of Directors of the Corporation is hereby expressly granted authority to fix by
resolution or resolutions adopted prior to the issuance of any shares of a
particular series of Preferred Stock, the voting powers and the designations,
preferences and relative, optional and other special rights, and the
qualifications, limitations and restrictions of such series, including, but
without limiting the generality of the foregoing, the following:
(1) The distinctive designation of, and the number of shares
of Preferred Stock which shall constitute such series, which
number may be increased (except where 13otherwise provided
by the Board of Directors) or decreased
(but not below the number of shares thereof then outstanding) from time to time
by like action of the Board of Directors;
(2) The rate and times at which, and the terms and
conditions on which, dividends, if any, on Preferred Stock
of such series shall be paid, the extent of the preference
or relation, if any, of such dividends to the dividends
payable on any other class or classes, or series of the same
or other class of stock and whether such dividends shall be
cumulative or non-cumulative;
(3) The right, if any, of the holders of Preferred Stock of
such series to convert the same into or exchange the same
for, shares of any other class or classes or of any series
of the same or any other class or classes of stock of the
Corporation and the terms and conditions of such conversion
or exchange;
(4) Whether or not Preferred Stock of such series shall be
subject to redemption, and the redemption price or prices
and the time or times at which, and the terms and conditions
on which, Preferred Stock of such series may be redeemed.
(5) The rights, if any, of the holders of Preferred Stock of
such series upon the voluntary or involuntary liquidation,
merger, consolidation, distribution or sale of assets,
dissolution or winding-up, of the Corporation.
(6) The terms of the sinking fund or redemption or purchase
account, if any, to be provided for the Preferred Stock of
such series; and
(7) The voting powers, if any, of the holders of such series
of Preferred Stock which may, without limiting the
generality of the foregoing include the right, voting as a
series or by itself or together with other series of
Preferred Stock or all series of Preferred Stock as a class,
to elect one or more directors of the Corporation if there
shall have been a default in the payment of dividends on any
one or more series of Preferred Stock or under such
circumstances and on such conditions as the Board of
Directors may determine.
(c) (1) After the requirements with respect to preferential dividends on
the Preferred Stock (fixed in accordance with the provisions of
section (b) of this Article Fourth), if any, shall have been met and
after the Corporation shall have complied with all the requirements,
if any, with respect to the setting aside of sums as sinking funds
or redemption or purchase accounts (fixed in accordance with the
provisions of section (b) of this Article Fourth), and subject
further to any conditions which may be fixed in accordance with the
provisions of section (b) of this Article Fourth, then and not
otherwise the holders of Common Stock shall be entitled to receive
such dividends as may be declared from time to time by the Board of
Directors.
(2) After distribution in full of the preferential amount,
if any, (fixed in accordance with the provisions of section
(b) of this Article Fourth), to be distributed to the
holders of Preferred Stock in the event of voluntary or
involuntary liquidation, distribution or sale of assets,
dissolution or winding-
up, of the Corporation, the holders of the Common Stock shall be entitled to
receive all of the remaining assets of the Corporation, tangible and intangible,
of whatever kind available for distribution to stockholders ratably in
proportion to the number of shares of Common Stock held by them respectively.
(3) Except as may otherwise be required by law or by the
provisions of such resolution or resolutions as may be
adopted by the Board of Directors pursuant to section (b) of
this Article Fourth, each holder of Common Stock shall have
one vote in respect of each share of Common Stock held on
all matters voted upon by the stockholders.
(d) No holder of any of the shares of any class or series of stock or of
options, warrants or other rights to purchase shares of any class or series of
stock or of other securities of the Corporation shall have any preemptive right
to purchase or subscribe for any unissued stock of any class or series or any
additional shares of any class or series to be issued by reason of any increase
of the authorized capital stock of the Corporation of any class or series, or
bonds, certificates of indebtedness, debentures or other securities convertible
into or 15exchangeable for stock of the Corporation of any class or series, or
carrying any right to purchase stock of any class or series, but any such
unissued stock, additional authorized issue of shares of any class or series of
stock or securities convertible into or exchangeable for stock, or carrying any
right to purchase stock, may be issued and disposed of pursuant to resolution of
the Board of Directors to such persons, firms, corporations or associations,
whether such holders or others, and upon such terms as may be deemed advisable
by the Board of Directors in the exercise of its sole discretion.
(e) The relative powers, preferences and rights of each series of Preferred
Stock in relation to the relative powers, preferences and rights of each other
series of Preferred Stock shall, in each case, be as fixed from time to time by
the Board of Directors in the resolution or resolutions adopted pursuant to
authority granted in section (b) of this Article Fourth and the consent, by
class or series vote or otherwise, of the holders of such of the series of
Preferred Stock as are from time to time outstanding shall not be required for
the issuance by the Board of Directors of any other series of Preferred Stock
whether or not the powers, preferences and rights of such other series shall be
fixed by the Board of Directors as senior to, or on a parity with, the powers,
preferences and rights of such outstanding series, or any of them; provided,
however, that the Board of Directors may provide in the resolution or
resolutions as to any series of Preferred Stock adopted pursuant to section (b)
of this Article Fourth that the consent of the holders of a majority (or such
greater proportion as shall be therein fixed) of the outstanding shares of such
series voting thereon shall be required for the issuance of any or all other
series of Preferred Stock.
(f) Subject to the provisions of section (e), shares of any series of
Preferred Stock may be issued from time to time as the Board of Directors of the
Corporation shall determine and on such terms and for such consideration as
shall be fixed by the Board of Directors.
(g) Shares of Common Stock may be issued from time to time as the Board of
Directors of the Corporation shall determine and on such terms and for such
consideration as shall be fixed by the Board of Directors.
(h) The authorized amount of shares of Common Stock and of Preferred Stock
may, without a class or series vote, be increased or decreased from time to time
by the affirmative vote of the holders of a majority of the stock of the
Corporation entitled to vote thereon.
Fifth:- (a) The business and affairs of the Corporation shall be
conducted and managed by a Board of Directors. The number of
directors constituting the entire Board shall be not less than five
nor more than twenty-five as fixed from time to time by vote of a
majority of the whole Board, provided, however, that the number of
directors shall not be reduced so as to shorten the term of any
director at the time in office, and provided further, that the
number of directors constituting the whole Board shall be
twenty-four until otherwise fixed by a majority of the whole Board.
(b) The Board of Directors shall be divided into three classes, as nearly
equal in number as the then total number of directors constituting the whole
Board permits, with the term of office of one class expiring each year. At the
annual meeting of stockholders in 1982, directors of the first class shall be
elected to hold office for a term expiring at the next succeeding annual
meeting, directors of the second class shall be elected to hold office for a
term expiring at the second succeeding annual meeting and directors of the third
class shall be elected to hold office for a term expiring at the third
succeeding annual meeting. Any vacancies in the Board of Directors for any
reason, and any newly created directorships resulting from any increase in the
directors, may be filled by the Board of Directors, acting by a majority of the
directors then in office, although less than a quorum, and any directors so
chosen shall hold office until the next annual election of directors. At such
election, the stockholders shall elect a successor to such director to hold
office until the next election of the class for which such director shall have
been chosen and until his successor shall be elected and qualified. No decrease
in the number of directors shall shorten the term of any incumbent director.
(c) Notwithstanding any other provisions of this Charter or Act of
Incorporation or the By-Laws of the Corporation (and notwithstanding the fact
that some lesser percentage may be specified by law, this Charter or Act of
Incorporation or the By-
Laws of the Corporation), any director or the entire Board of Directors of the
Corporation may be removed at any time without cause, but only by the
affirmative vote of the holders of two-thirds or more of the outstanding shares
of capital stock of the Corporation entitled to vote generally in the election
of directors (considered for this purpose as one class) cast at a meeting of the
stockholders called for that purpose.
(d) Nominations for the election of directors may be made by the Board of
Directors or by any stockholder entitled to vote for the election of directors.
Such nominations shall be made by notice in writing, delivered or mailed by
first class United States mail, postage prepaid, to the Secretary of the
Corporation not less than 14 days nor more than 50 days prior to any meeting of
the stockholders called for the election of directors; provided, however, that
if less than 21 days' notice of the meeting is given to stockholders, such
written notice shall be delivered or mailed, as prescribed, to the Secretary of
the Corporation not later than the close of the seventh day following the day on
which notice of the meeting was mailed to stockholders. Notice of nominations
which are proposed by the Board of Directors shall be given by the Chairman on
behalf of the Board.
(e) Each notice under subsection (d) shall set forth (i) the name, age,
business address and, if known, residence address of each nominee proposed in
such notice, (ii) the principal occupation or employment of such nominee and
(iii) the number of shares of stock of the Corporation which are beneficially
owned by each such nominee.
(f) The Chairman of the meeting may, if the facts warrant, determine and
declare to the meeting that a nomination was not made in accordance with the
foregoing procedure, and if he should so determine, he shall so declare to the
meeting and the defective nomination shall be disregarded.
(g) No action required to be taken or which may be taken at any annual or
special meeting of stockholders of the Corporation may be taken without a
meeting, and the power of stockholders to consent in writing, without a meeting,
to the taking of any action is specifically denied.
Sixth: - The Directors shall choose such officers, agent and servants as
may be provided in the By-Laws as they may from time to time find necessary or
proper.
Seventh: - The Corporation hereby created is hereby given the same powers,
rights and privileges as may be conferred upon corporations
organized under the Act entitled "An Act Providing a General
Corporation Law", approved March 10, 1899, as from time to time
amended.
Eighth: - This Act shall be deemed and taken to be a private Act.
Ninth: - This Corporation is to have perpetual existence.
Tenth:- The Board of Directors, by resolution passed by a majority of the
whole Board, may designate any of their number to constitute an
Executive Committee, which Committee, to the extent provided in said
resolution, or in the By-Laws of the Company, shall have and may
exercise all of the powers of the Board of Directors in the
management of the business and affairs of the Corporation, and shall
have power to authorize the seal of the Corporation to be affixed to
all papers which may require it.
Eleventh: - The private property of the stockholders shall not be liable
for the payment of corporate debts to any extent whatever.
Twelfth: - The Corporation may transact business in any part of the world.
Thirteenth: - The Board of Directors of the Corporation is expressly
authorized to make, alter or repeal the By-Laws of the Corporation
by a vote of the majority of the entire Board. The stockholders may
make, alter or repeal any By-Law whether or not adopted by them,
provided however, that any such additional By-Laws, alterations or
repeal may be adopted only by the affirmative vote of the holders of
two-thirds or more of the outstanding shares of capital stock of the
Corporation entitled to vote generally in the election of directors
(considered for this purpose as one class).
Fourteenth: - Meetings of the Directors may be held outside
of the State of Delaware at such places as may be from time to time
designated by the Board, and the Directors may keep the books of the
Company outside of the State of Delaware at such places as may be
from time to time designated by them.
Fifteenth: - (a) (1) In addition to any affirmative vote required by law,
and except as otherwise expressly provided in sections (b) and (c) of this
Article Fifteenth:
(A) any merger or consolidation of the Corporation or any
Subsidiary (as hereinafter defined) with or into (i) any
Interested Stockholder (as hereinafter defined) or (ii) any
other corporation (whether or not itself an Interested
Stockholder), which, after such merger or consolidation,
would be an Affiliate (as hereinafter defined) of an
Interested Stockholder, or
(B) any sale, lease, exchange, mortgage, pledge, transfer or
other disposition (in one transaction or a series of related
transactions) to or with any Interested Stockholder or any
Affiliate of any Interested Stockholder of any assets of the
Corporation or any Subsidiary having an aggregate fair
market value of $1,000,000 or more, or
(C) the issuance or transfer by the Corporation or any
Subsidiary (in one transaction or a series of related
transactions) of any securities of the Corporation or any
Subsidiary to any Interested Stockholder or any Affiliate of
any Interested Stockholder in exchange for cash, securities
or other property (or a combination thereof) having an
aggregate fair market value of $1,000,000 or more, or
(D) the adoption of any plan or proposal for the liquidation
or dissolution of the Corporation, or
(E) any reclassification of securities (including any
reverse stock split), or recapitalization of the
Corporation, or any merger or consolidation of the
Corporation with any of its Subsidiaries or any similar
transaction (whether or not with or into or otherwise
involving an Interested Stockholder) which has the effect,
directly or indirectly, of increasing the proportionate
share of the outstanding shares of any class of equity or
convertible securities of the Corporation or any Subsidiary
which is directly or indirectly owned by any Interested
Stockholder, or any Affiliate of any Interested Stockholder,
shall require the affirmative vote of the holders of at least two-thirds of the
outstanding shares of capital stock of the Corporation entitled to vote
generally in the election of directors, considered for the purpose of this
Article Fifteenth as one class ("Voting Shares"). Such affirmative vote shall be
required notwithstanding the fact that no vote may be required, or that some
lesser percentage may be specified, by law or in any agreement with any national
securities exchange or otherwise.
(2) The term "business combination" as used in this Article Fifteenth shall
mean any transaction which is referred to any one or more of clauses (A) through
(E) of paragraph 1 of the section (a).
(b) The provisions of section (a) of this Article Fifteenth
shall not be applicable to any particular business
combination and such business combination shall require only
such affirmative vote as is required by law and any other
provisions of the Charter or Act of Incorporation of By-Laws
if such business combination has been approved by a majority
of the whole Board.
(c) For the purposes of this Article Fifteenth:
(1) A "person" shall mean any individual firm, corporation or other
entity.
(2) "Interested Stockholder" shall mean, in respect of any business
combination, any person (other than the Corporation or any
Subsidiary) who or which as of the record date for the determination
of stockholders entitled to notice of and to vote on such business
combination, or immediately prior to the consummation of any such
transaction:
(A) is the beneficial owner, directly or indirectly, of more
than 10% of the Voting Shares, or
(B) is an Affiliate of the Corporation and at any time
within two years prior thereto was the beneficial owner,
directly or indirectly, of not less than 10% of the then
outstanding voting Shares, or
(C) is an assignee of or has otherwise succeeded in any
share of capital stock of the Corporation which 21were at any time within two
years prior thereto beneficially owned by any Interested Stockholder, and such
assignment or succession shall have occurred in the course of a transaction or
series of transactions not involving a public offering within the meaning of the
Securities Act of 1933.
(3) A person shall be the "beneficial owner" of any Voting Shares:
(A) which such person or any of its Affiliates and
Associates (as hereafter defined) beneficially own, directly
or indirectly, or
(B) which such person or any of its Affiliates or Associates
has (i) the right to acquire (whether such right is
exercisable immediately or only after the passage of time),
pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights,
warrants or options, or otherwise, or (ii) the right to vote
pursuant to any agreement, arrangement or understanding, or
(C) which are beneficially owned, directly or indirectly, by
any other person with which such first mentioned person or
any of its Affiliates or Associates has any agreement,
arrangement or understanding for the purpose of acquiring,
holding, voting or disposing of any shares of capital stock
of the Corporation.
(4) The outstanding Voting Shares shall include shares deemed owned
through application of paragraph (3) above but shall not include any
other Voting Shares which may be issuable pursuant to any agreement,
or upon exercise of conversion rights, warrants or options or
otherwise.
(5) "Affiliate" and "Associate" shall have the respective meanings given
those terms in Rule 12b-2 of the General Rules and Regulations under
the Securities Exchange Act of 1934, as in effect on December 31,
1981.
(6) "Subsidiary" shall mean any corporation of which a majority of any
class of equity security (as defined in Rule 3a11-1 of the General
Rules and Regulations under the Securities Exchange Act of 1934, as
in effect in December 31, 1981) is owned, directly or indirectly, by
the 22Corporation; provided, however, that for the purposes of the
definition of Investment
Stockholder set forth in paragraph (2) of this section (c), the term
"Subsidiary" shall mean only a corporation of which a majority of each class of
equity security is owned, directly or indirectly, by the Corporation.
(d) majority of the directors shall have the power and duty
to determine for the purposes of this Article Fifteenth on
the basis of information known to them, (1) the number of
Voting Shares beneficially owned by any person (2) whether a
person is an Affiliate or Associate of another, (3) whether
a person has an agreement, arrangement or understanding with
another as to the matters referred to in paragraph (3) of
section (c), or (4) whether the assets subject to any
business combination or the consideration received for the
issuance or transfer of securities by the Corporation, or
any Subsidiary has an aggregate fair market value of
$1,000,000 or more.
(e) Nothing contained in this Article Fifteenth shall be
construed to relieve any Interested Stockholder from any
fiduciary obligation imposed by law.
Sixteenth: Notwithstanding any other provision of this Charter or Act of
Incorporation or the By-Laws of the Corporation (and in addition to
any other vote that may be required by law, this Charter or Act of
Incorporation by the By-Laws), the affirmative vote of the holders
of at least two-thirds of the outstanding shares of the capital
stock of the Corporation entitled to vote generally in the election
of directors (considered for this purpose as one class) shall be
required to amend, alter or repeal any provision of Articles Fifth,
Thirteenth, Fifteenth or Sixteenth of this Charter or Act of
Incorporation.
Seventeenth: (a) a Director of this Corporation shall not be liable to the
Corporation or its stockholders for monetary damages for breach of
fiduciary duty as a Director, except to the extent such exemption
from liability or limitation thereof is not permitted under the
Delaware General Corporation Laws as the same exists or may
hereafter be amended.
(b) Any repeal or modification of the foregoing paragraph
shall not adversely affect any right or 23protection of a Director of the
Corporation existing hereunder with respect to any act or omission occurring
prior to the time of such repeal or modification."
EXHIBIT B
BY-LAWS
WILMINGTON TRUST COMPANY
WILMINGTON, DELAWARE
As existing on January 16, 1997
BY-LAWS OF WILMINGTON TRUST COMPANY
ARTICLE I
Stockholders' Meetings
Section 1. The Annual Meeting of Stockholders shall be held on the
third Thursday in April each year at the principal office at the Company or at
such other date, time, or place as may be designated by resolution by the Board
of Directors.
Section 2. Special meetings of all stockholders may be called at any
time by the Board of Directors, the Chairman of the Board or the President.
Section 3. Notice of all meetings of the stockholders shall be given by
mailing to each stockholder at least ten (10) days before said meeting, at his
last known address, a written or printed notice fixing the time and place of
such meeting.
Section 4. A majority in the amount of the capital stock of the Company
issued and outstanding on the record date, as herein determined, shall
constitute a quorum at all meetings of stockholders for the transaction of any
business, but the holders of a small number of shares may adjourn, from time to
time, without further notice, until a quorum is secured. At each annual or
special meeting of stockholders, each stockholder shall be entitled to one vote,
either in person or by proxy, for each shares of stock registered in the
stockholder's name on the books of the Company on the record date for any such
meeting as determined herein.
ARTICLE II
Directors
Section 1. The number and classification of the Board of Directors
shall be as set forth in the Charter of the Bank.
Section 2. No person who has attained the age of seventy-two (72) years
shall be nominated for election to the Board of Directors of the Company,
provided, however, that this limitation shall not apply to any person who was
serving as director of the Company on September 16, 1971.
Section 3. The class of Directors so elected shall hold office for
three years or until their successors are elected and qualified.
Section 4. The affairs and business of the Company shall be managed and
conducted by the Board of Directors.
Section 5. The Board of Directors shall meet at the principal office of
the Company or elsewhere in its discretion at such times to be determined by a
majority of its members, or at the call of the Chairman of the Board of
Directors or the President.
Section 6. Special meetings of the Board of Directors may be called at
any time by the Chairman of the Board of Directors or by the President, and
shall be called upon the written request of a majority of the directors.
Section 7. A majority of the directors elected and qualified shall be
necessary to constitute a quorum for the transaction of business at any meeting
of the Board of Directors.
Section 8. Written notice shall be sent by mail to each director of any
special meeting of the Board of Directors, and of any change in the time or
place of any regular meeting, stating the time and place of such meeting, which
shall be mailed not less than two days before the time of holding such meeting.
Section 9. In the event of the death, resignation, removal, inability
to act, or disqualification of any director, the Board of Directors, although
less than a quorum, shall have the right to elect the successor who shall hold
office for the remainder of the full term of the class of directors in which the
vacancy occurred, and until such director's successor shall have been duly
elected and qualified.
Section 10. The Board of Directors at its first meeting after its
election by the stockholders shall appoint an Executive Committee, a Trust
Committee, an Audit Committee and a Compensation Committee, and shall elect from
its own members a Chairman of the Board of Directors and a President who may be
the same person. The Board of Directors shall also elect at such meeting a
Secretary and a Treasurer, who may be the same person, may appoint at any time
such other committees and elect or appoint such other officers as it may deem
advisable. The Board of Directors may also elect at such meeting one or more
Associate Directors.
Section 11. The Board of Directors may at any time remove, with or
without cause, any member of any Committee appointed by it or any associate
director or officer elected by it and may appoint or elect his successor.
Section 12. The Board of Directors may designate an officer to be in
charge of such of the departments or division of the Company as it may deem
advisable.
ARTICLE III
Committees
Section 1. Executive Committee
(A) The Executive Committee shall be composed of
not more than nine members who shall be selected by the
Board of Directors from its own members and who shall hold office during the
pleasure of the Board.
(B) The Executive Committee shall have all the
powers of the Board of Directors when it is not in session to transact all
business for and in behalf of the Company that may be brought before it.
(C) The Executive Committee shall meet at the
principal office of the Company or elsewhere in its
discretion at such times to be determined by a majority of its members, or at
the call of the Chairman of the Executive Committee or at the call of the
Chairman of the Board of Directors. The majority of its members shall be
necessary to constitute a quorum for the transaction of business. Special
meetings of the Executive Committee may be held at any time when a quorum is
present.
(D) Minutes of each meeting of the Executive
Committee shall be kept and submitted to the Board of
Directors at its next meeting.
(E) The Executive Committee shall advise and
superintend all investments that may be made of the funds
of the Company, and shall direct the disposal of the same, in accordance with
such rules and regulations as the Board of Directors from time to time make.
(F) In the event of a state of disaster of
sufficient severity to prevent the conduct and management of
the affairs and business of the Company by its directors and officers as
contemplated by these By-Laws any two available members of the Executive
Committee as constituted immediately prior to such disaster shall constitute a
quorum of that Committee for the full conduct and management of the affairs and
business of the Company in accordance with the provisions of Article III of
these By-Laws; and if less than three members of the Trust Committee is
constituted immediately prior to such disaster shall be available for the
transaction of its business, such Executive Committee shall also be empowered to
exercise all of the powers reserved to the Trust Committee under Article III
Section 2 hereof. In the event of the unavailability, at such time, of a minimum
of two 29members of such Executive Committee, any three available directors
shall constitute the Executive Committee for the full conduct and management of
the affairs and business of the Company in accordance with the foregoing
provisions of this Section. This By-Law shall be subject to implementation by
Resolutions of the Board of Directors presently existing or hereafter passed
from time to time for that purpose, and any provisions of these By-Laws (other
than this Section) and any resolutions which are contrary to the provisions of
this Section or to the provisions of any such implementary Resolutions shall be
suspended during such a disaster period until it shall be determined by any
interim Executive Committee acting under this section that it shall be to the
advantage of the Company to resume the conduct and management of its affairs and
business under all of the other provisions of these By-Laws.
Section 2. Trust Committee
(A) The Trust Committee shall be composed of not
more than thirteen members who shall be selected by the
Board of Directors, a majority of whom shall be members of the Board of
Directors and who shall hold office during the pleasure of the Board.
(B) The Trust Committee shall have general
supervision over the Trust Department and the investment of
trust funds, in all matters, however, being subject to the approval of the
Board of Directors.
(C) The Trust Committee shall meet at the principal
office of the Company or elsewhere in its discretion
at such times to be determined by a majority of its members or at the call of
its chairman. A majority of its members shall be necessary to constitute a
quorum for the transaction of business.
(D) Minutes of each meeting of the Trust Committee
shall be kept and promptly submitted to the Board of
Directors.
(E) The Trust Committee shall have the power to
appoint Committees and/or designate officers or
employees of the Company to whom supervision over the investment of trust funds
may be delegated when the Trust Committee is not in session.
Section 3. Audit Committee
(A) The Audit Committee shall be composed of five
members who shall be selected by the Board of
Directors from its own 30members, none of whom shall be an officer of the
Company, and shall hold office at the pleasure of the Board.
(B) The Audit Committee shall have general
supervision over the Audit Division in all matters however
subject to the approval of the Board of Directors; it shall consider all matters
brought to its attention by the officer in charge of the Audit Division, review
all reports of examination of the Company made by any governmental agency or
such independent auditor employed for that purpose, and make such
recommendations to the Board of Directors with respect thereto or with respect
to any other matters pertaining to auditing the Company as it shall deem
desirable.
(C) The Audit Committee shall meet whenever and
wherever the majority of its members shall deem it to be
proper for the transaction of its business, and a majority of its Committee
shall constitute a quorum.
Section 4. Compensation Committee
(A) The Compensation Committee shall be composed of
not more than five (5) members who shall be selected
by the Board of Directors from its own members who are not officers of the
Company and who shall hold office during the pleasure of the Board.
(B) The Compensation Committee shall in general
advise upon all matters of policy concerning the Company
brought to its attention by the management and from time to time review the
management of the Company, major organizational matters, including salaries and
employee benefits and specifically shall administer the Executive Incentive
Compensation Plan.
(C) Meetings of the Compensation Committee may be
called at any time by the Chairman of the Compensation
Committee, the Chairman of the Board of Directors, or the President of the
Company.
Section 5. Associate Directors
(A) Any person who has served as a director may be
elected by the Board of Directors as an associate
director, to serve during the pleasure of the Board.
(B) An associate director shall be entitled to
attend all directors meetings and participate in the
discussion of all matters brought to the Board, with the exception that he would
31have no right to vote. An associate director will be eligible for appointment
to Committees of the Company, with the exception of the Executive Committee,
Audit Committee and Compensation Committee, which must be comprised solely of
active directors.
Section 6. Absence or Disqualification of Any Member of a Committee
(A) In the absence or disqualification of any
member of any Committee created under Article III of the
By-Laws of this Company, the member or members thereof present at any meeting
and not disqualified from voting, whether or not he or they constitute a quorum,
may unanimously appoint another member of the Board of Directors to act at the
meeting in the place of any such absence or disqualified member.
ARTICLE IV
Officers
Section 1. The Chairman of the Board of Directors shall preside at all
meetings of the Board and shall have such further authority and powers and shall
perform such duties as the Board of Directors may from time to time confer and
direct. He shall also exercise such powers and perform such duties as may from
time to time be agreed upon between himself and the President of the Company.
Section 2. The Vice Chairman of the Board. The Vice Chairman of the
Board of Directors shall preside at all meetings of the Board of Directors at
which the Chairman of the Board shall not be present and shall have such further
authority and powers and shall perform such duties as the Board of Directors or
the Chairman of the Board may from time to time confer and direct.
Section 3. The President shall have the powers and duties pertaining to
the office of the President conferred or imposed upon him by statute or assigned
to him by the Board of Directors in the absence of the Chairman of the Board the
President shall have the powers and duties of the Chairman of the Board.
Section 4. The Chairman of the Board of Directors or the President as
designated by the Board of Directors, shall carry into effect all legal
directions of the Executive Committee and of the Board of Directors, and shall
at all times exercise general supervision over the interest, affairs and
operations of the Company and perform all duties incident to his office.
Section 5. There may be one or more Vice Presidents, however
denominated by the Board of Directors, who may at any time perform all the
duties of the Chairman of the Board of Directors and/or the President and such
other powers and duties as may from time to time be assigned to them by the
Board of Directors, the Executive Committee, the Chairman of the Board or the
President and by the officer in charge of the department or division to which
they are assigned.
Section 6. The Secretary shall attend to the giving of notice of
meetings of the stockholders and the Board of Directors, as well as the
Committees thereof, to the keeping of accurate minutes of all such meetings and
to recording the same in the minute books of the Company. In addition to the
other notice requirements of these By-Laws and as may be practicable under the
circumstances, all such notices shall be in writing and mailed well in advance
of the scheduled date of any other meeting. He shall have custody of the
corporate seal and shall affix the same to any documents requiring such
corporate seal and to attest the same.
Section 7. The Treasurer shall have general supervision over all assets
and liabilities of the Company. He shall be custodian of and responsible for all
monies, funds and valuables of the Company and for the keeping of proper records
of the evidence of property or indebtedness and of all the transactions of the
Company. He shall have general supervision of the expenditures of the Company
and shall report to the Board of Directors at each regular meeting of the
condition of the Company, and perform such other duties as may be assigned to
him from time to time by the Board of Directors of the Executive Committee.
Section 8. There may be a Controller who shall exercise general
supervision over the internal operations of the Company, including accounting,
and shall render to the Board of Directors at appropriate times a report
relating to the general condition and internal operations of the Company.
There may be one or more subordinate accounting or controller officers
however denominated, who may perform the duties of the Controller and such
duties as may be prescribed by the Controller.
Section 9. The officer designated by the Board of Directors to be in
charge of the Audit Division of the Company with such title as the Board of
Directors shall prescribe, shall report to and be directly responsible only to
the Board of Directors.
33
There shall be an Auditor and there may be one or more Audit Officers,
however denominated, who may perform all the duties of the Auditor and such
duties as may be prescribed by the officer in charge of the Audit Division.
Section 10. There may be one or more officers, subordinate in rank to
all Vice Presidents with such functional titles as shall be determined from time
to time by the Board of Directors, who shall ex officio hold the office
Assistant Secretary of this Company and who may perform such duties as may be
prescribed by the officer in charge of the department or division to whom they
are assigned.
Section 11. The powers and duties of all other officers of the Company
shall be those usually pertaining to their respective offices, subject to the
direction of the Board of Directors, the Executive Committee, Chairman of the
Board of Directors or the President and the officer in charge of the department
or division to which they are assigned.
ARTICLE V
Stock and Stock Certificates
Section 1. Shares of stock shall be transferrable on the books of the
Company and a transfer book shall be kept in which all transfers of stock shall
be recorded.
Section 2. Certificate of stock shall bear the signature of the
President or any Vice President, however denominated by the Board of Directors
and countersigned by the Secretary or Treasurer or an Assistant Secretary, and
the seal of the corporation shall be engraved thereon. Each certificate shall
recite that the stock represented thereby is transferrable only upon the books
of the Company by the holder thereof or his attorney, upon surrender of the
certificate properly endorsed. Any certificate of stock surrendered to the
Company shall be cancelled at the time of transfer, and before a new certificate
or certificates shall be issued in lieu thereof. Duplicate certificates of stock
shall be issued only upon giving such security as may be satisfactory to the
Board of Directors or the Executive Committee.
Section 3. The Board of Directors of the Company is authorized to fix
in advance a record date for the determination of the stockholders entitled to
notice of, and to vote at, any meeting of stockholders and any adjournment
thereof, or entitled 34to receive payment of any dividend, or to any allotment
or rights, or to exercise any rights in respect of any change, conversion or
exchange of capital stock, or in connection with obtaining the consent of
stockholders for any purpose, which record date shall not be more than 60 nor
less than 10 days proceeding the date of any meeting of stockholders or the date
for the payment of any dividend, or the date for the allotment of rights, or the
date when any change or conversion or exchange of capital stock shall go into
effect, or a date in connection with obtaining such consent.
ARTICLE VI
Seal
Section 1. The corporate seal of the Company shall be in the following
form:
Between two
concentric
circles the
words
"Wilmington
Trust
Company"
within the
inner circle
the words
"Wilmington,
Delaware."
ARTICLE VII
Fiscal Year
Section 1. The fiscal year of the Company shall be the calendar year.
ARTICLE VIII
Execution of Instruments of the Company
Section 1. The Chairman of the Board, the President or any Vice President,
however denominated by the Board of Directors, shall have full power and
authority to enter into, make, sign, execute, acknowledge and/or deliver and the
Secretary or any Assistant Secretary shall have full power and authority to
attest and affix the corporate seal of the Company to any and all deeds,
conveyances, assignments, releases, contracts, agreements, bonds, notes,
mortgages and all other instruments incident to the business of this Company or
in acting as executor, administrator, guardian, trustee, agent or in any other
fiduciary or representative capacity by any and every method of appointment or
by whatever person, corporation, court officer or authority in the State of
Delaware, or elsewhere, without any specific authority, ratification, approval
or confirmation by the Board of Directors or the Executive Committee, and any
and all such instruments shall have the same force and validity as though
expressly authorized by the Board of Directors and/or the Executive Committee.
ARTICLE IX
Compensation of Directors and Members of Committees
Section 1. Directors and associate directors of the Company, other than
salaried officers of the Company, shall be paid such reasonable honoraria or
fees for attending meetings of the Board of Directors as the Board of Directors
may from time to time determine. Directors and associate directors who serve as
members of committees, other than salaried employees of the Company, shall be
paid such reasonable honoraria or fees for services as members of committees as
the Board of Directors shall from time to time determine and directors and
associate directors may be employed by the Company for such special services as
the Board of Directors may from time to time determine and shall be paid for
such special services so performed reasonable compensation as may be determined
by the Board of Directors.
ARTICLE X
Indemnification
Section 1. (A) The Corporation shall indemnify and hold harmless, to the
fullest extent permitted by applicable law as it presently exists or may
hereafter be amended, any person who was 36or is made or is threatened to be
made a party or is otherwise involved in any action, suit or proceeding, whether
civil, criminal, administrative or investigative (a "proceeding") by reason of
the fact that he, or a person for whom he is the legal representative, is or was
a director, officer, employee or agent of the Corporation or is or was serving
at the request of the Corporation as a director, officer, employee, fiduciary or
agent of another corporation or of a partnership, joint venture, trust,
enterprise or non-profit entity, including service with respect to employee
benefit plans, against all liability and loss suffered and expenses reasonably
incurred by such person. The Corporation shall indemnify a person in connection
with a proceeding initiated by such person only if the proceeding was authorized
by the Board of Directors of the Corporation.
(B) The Corporation shall pay the expenses incurred in defending any
proceeding in advance of its final disposition, provided, however, that the
payment of expenses incurred by a Director officer in his capacity as a Director
or officer in advance of the final disposition of the proceeding shall be made
only upon receipt of an undertaking by the Director or officer to repay all
amounts advanced if it should be ultimately determined that the Director or
officer is not entitled to be indemnified under this Article or otherwise.
(C) If a claim for indemnification or payment of expenses, under this
Article X is not paid in full within ninety days after a written claim therefor
has been received by the Corporation the claimant may file suit to recover the
unpaid amount of such claim and, if successful in whole or in part, shall be
entitled to be paid the expense of prosecuting such claim. In any such action
the Corporation shall have the burden of proving that the claimant was not
entitled to the requested indemnification of payment of expenses under
applicable law.
(D) The rights conferred on any person by this Article X shall not be
exclusive of any other rights which such person may have or hereafter acquire
under any statute, provision of the Charter or Act of Incorporation, these
By-Laws, agreement, vote of stockholders or disinterested Directors or
otherwise.
(E) Any repeal or modification of the foregoing provisions of this Article
X shall not adversely affect any right or protection hereunder of any person in
respect of any act or omission occurring prior to the time of such repeal or
modification.
ARTICLE XI
Amendments to the By-Laws
Section 1. These By-Laws may be altered, amended or repealed, in whole or
in part, and any new By-Law or By-Laws adopted at any regular or special meeting
of the Board of Directors by a vote of the majority of all the members of the
Board of Directors then in office.
EXHIBIT C
Section 321(b) Consent
Pursuant to Section 321(b) of the Trust Indenture Act of 1939, as amended,
Wilmington Trust Company hereby consents that reports of examinations by
Federal, State, Territorial or District authorities may be furnished by such
authorities to the Securities and Exchange Commission upon requests therefor.
WILMINGTON TRUST COMPANY
Dated: June 15, 1999 By: /s/ James P. Lawler
--------------------------------------
Name: James P. Lawler
Title: Vice President
EXHIBIT D
NOTICE
This form is intended to assist state nonmember banks and savings banks with
state publication requirements. It has not been approved by any state banking
authorities. Refer to your appropriate state banking authorities for your state
publication requirements.
R E P O R T O F C O N D I T I O N
Consolidating domestic subsidiaries of the
WILMINGTON TRUST COMPANY of WILMINGTON
- ----------------------------------------------------------- --------------
Name of Bank City
in the State of DELAWARE , at the close of business on March 31, 1999.
-------------
ASSETS
Thousands of dollars
Cash and balances due from depository institutions:
Noninterest-bearing balances and currency and coins................... 196,035
Interest-bearing balances................................................... 0
Held-to-maturity securities............................................. 44,909
Available-for-sale securities........................................ 1,396,028
Federal funds sold and securities purchased under
agreements to resell.............................................. 127,340
Loans and lease financing receivables:
Loans and leases, net of unearned income..........4,176,290
LESS: Allowance for loan and lease losses ..........68,543
LESS: Allocated transfer risk reserve ........ ..........0
Loans and leases, net of unearned income, allowance, and reserve....4,107,747
Assets held in trading accounts...............................................0
Premises and fixed assets (including capitalized leases)................139,843
Other real estate owned...................................................1,055
Investments in unconsolidated subsidiaries and associated companies...... 1,225
Customers' liability to this bank on acceptances outstanding................. 0
Intangible assets........................................................ 5,265
Other assets............................................................ 99,075
Total assets..........................................................6,118,520
LIABILITIES
Deposits:
In domestic offices...................................................4,332,124
Noninterest-bearing ...............959,777
Interest-bearing ................3,372,347
Federal funds purchased and Securities sold under
agreements to repurchase............................................. 432,395
Demand notes issued to the U.S. Treasury.................................28,906
Trading liabilities (from Schedule RC-D)......................................0
Other borrowed money:...................................................///////
With original maturity of one year or less.....................715,000
With original maturity of more than one year................... 43,000
Bank's liability on acceptances executed and outstanding..................... 0
Subordinated notes and debentures............................................ 0
Other liabilities (from Schedule RC-G).................................. 93,311
Total liabilities.....................................................5,644,736
EQUITY CAPITAL
Perpetual preferred stock and related surplus.................................0
Common Stock................................................................500
Surplus (exclude all surplus related to preferred stock)................ 62,118
Undivided profits and capital reserves................................. 408,053
Net unrealized holding gains (losses) on available-for-sale securities... 3,113
Total equity capital....................................................473,784
Total liabilities, limited-life preferred stock, and equity capital...6,118,520
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM T-1
STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939
OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE PURSUANT TO
SECTION 305(b)(2)
WILMINGTON TRUST COMPANY
-------------------------------------------------
(Exact name of trustee as specified in its charter)
Delaware 51-0055023
- ------------------------- ----------------
(State of incorporation) (I.R.S. employer
identification no.)
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
---------------------------------------
(Address of principal executive offices)
Cynthia L. Corliss
Vice President and Trust Counsel
Wilmington Trust Company
Rodney Square North
Wilmington, Delaware 19890
(302) 651-8516
-------------------------------------------------------
(Name, address and telephone number of agent for service)
PEOPLES BANCORP INC.
PEBO CAPITAL TRUST I
--------------------------------------------------
(Exact name of obligor as specified in its charter)
Ohio 31-0987416
Delaware 51-5612405
- ------------------------ ------------------------------------
(State of incorporation) (I.R.S. employer identification no.)
138 Putnam Street
Marietta, Ohio 45750
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Series B 8.62% Capital Securities of PEBO Capital Trust I
(Title of the indenture securities)
ITEM 1. GENERAL INFORMATION.
Furnish the following information as to the trustee:
Name and address of each examining or supervising authority
to which it is subject.
Federal Deposit Insurance Co. State Bank Commissioner
Five Penn Center Dover, Delaware
Suite #2901
Philadelphia, PA
Whether it is authorized to exercise corporate trust powers.
The trustee is authorized to exercise corporate trust
powers.
ITEM 2. AFFILIATIONS WITH THE OBLIGOR.
If the obligor is an affiliate of the trustee, describe each affiliation:
Based upon an examination of the books and records of the
trustee and upon information furnished by the obligor, the obligor
is not an affiliate of the trustee.
ITEM 3. LIST OF EXHIBITS.
List below all exhibits filed as part of this Statement of
Eligibility and Qualification.
A. Copy of the Charter of Wilmington Trust Company, which
includes the certificate of authority of Wilmington Trust
Company to commence business and the authorization of
Wilmington Trust Company to exercise corporate trust powers.
B. Copy of By-Laws of Wilmington Trust Company.
C. Consent of Wilmington Trust Company required by Section
321(b) of Trust Indenture Act.
D. Copy of most recent Report of Condition of Wilmington Trust
Company.
Pursuant to the requirements of the Trust Indenture Act of 1939, as
amended, the trustee, Wilmington Trust Company, a corporation organized and
existing under the laws of Delaware, has duly caused this Statement of
Eligibility to be signed on its behalf by the undersigned, thereunto duly
authorized, all in the City of Wilmington and State of Delaware on the 15th day
of June, 1999.
WILMINGTON TRUST COMPANY
[SEAL]
Attest: /s/ DONALD G. MACKELCAN By: /s/ JAMES P. LAWLER
Donald G. MacKelcan Name: James P. Lawler
Assistant Secretary Title: Vice President
EXHIBIT A
AMENDED CHARTER
Wilmington Trust Company
Wilmington, Delaware
As existing on May 9, 1987
Amended Charter
or
Act of Incorporation
of
Wilmington Trust Company
Wilmington Trust Company, originally incorporated by an Act of the
General Assembly of the State of Delaware, entitled "An Act to Incorporate the
Delaware Guarantee and Trust Company", approved March 2, A.D. 1901, and the name
of which company was changed to "Wilmington Trust Company" by an amendment filed
in the Office of the Secretary of State on March 18, A.D. 1903, and the Charter
or Act of Incorporation of which company has been from time to time amended and
changed by merger agreements pursuant to the corporation law for state banks and
trust companies of the State of Delaware, does hereby alter and amend its
Charter or Act of Incorporation so that the same as so altered and amended shall
in its entirety read as follows:
First: - The name of this corporation is Wilmington Trust Company.
Second: - The location of its principal office in the State of Delaware is
at Rodney Square North, in the City of Wilmington, County of New
Castle; the name of its resident agent is Wilmington Trust Company
whose address is Rodney Square North, in said City. In addition to
such principal office, the said corporation maintains and operates
branch offices in the City of Newark, New Castle County, Delaware,
the Town of Newport, New Castle County, Delaware, at Claymont, New
Castle County, Delaware, at Greenville, New Castle County Delaware,
and at Milford Cross Roads, New Castle County, Delaware, and shall
be empowered to open, maintain and operate branch offices at Ninth
and Shipley Streets, 418 Delaware Avenue, 2120 Market Street, and
3605 Market Street, all in the City of Wilmington, New Castle
County, Delaware, and such other branch offices or places of
business as may be authorized from time to time by the agency or
agencies of the government of the State of Delaware empowered to
confer such authority.
Third:- (a) The nature of the business and the objects and purposes
proposed to be transacted, promoted or carried on by this
Corporation are to do any or all of the things herein mentioned as
fully and to the same extent as natural persons might or could do
and in any part of the world, viz.:
(1) To sue and be sued, complain and defend in any Court of
law or equity and to make and use a common seal, and alter
the seal at pleasure, to hold, purchase, convey, mortgage or
otherwise deal in real and personal estate and property, and
to appoint such officers and agents as the business of the
Corporation shall require, to make by-laws not inconsistent
with the Constitution or laws of the United States or of
this State, to discount bills, notes or other evidences of
debt, to receive deposits of money, or securities for money,
to buy gold and silver bullion and foreign coins, to buy and
sell bills of exchange, and generally to use, exercise and
enjoy all the powers, rights, privileges and franchises
incident to a corporation which are proper or necessary for
the transaction of the business of the Corporation hereby
created.
(2) To insure titles to real and personal property, or any
estate or interests therein, and to guarantee the holder of
such property, real or personal, against any claim or
claims, adverse to his interest therein, and to prepare and
give certificates of title for any lands or premises in the
State of Delaware, or elsewhere.
(3) To act as factor, agent, broker or attorney in the
receipt, collection, custody, investment and management of
funds, and the purchase, sale, management and disposal of
property of all descriptions, and to prepare and execute all
papers which may be necessary or proper in such business.
(4) To prepare and draw agreements, contracts, deeds,
leases, conveyances, mortgages, bonds and legal papers of
every description, and to carry on the business of
conveyancing in all its branches.
(5) To receive upon deposit for safekeeping money, jewelry,
plate, deeds, bonds and any and all other personal property
of every sort and kind, from 9executors, administrators,
guardians, public officers, courts, receivers, assignees, trustees, and from all
fiduciaries, and from all other persons and individuals, and from all
corporations whether state, municipal, corporate or private, and to rent boxes,
safes, vaults and other receptacles for such property.
(6) To act as agent or otherwise for the purpose of
registering, issuing, certificating, countersigning,
transferring or underwriting the stock, bonds or other
obligations of any corporation, association, state or
municipality, and may receive and manage any sinking fund
therefor on such terms as may be agreed upon between the two
parties, and in like manner may act as Treasurer of any
corporation or municipality.
(7) To act as Trustee under any deed of trust, mortgage,
bond or other instrument issued by any state, municipality,
body politic, corporation, association or person, either
alone or in conjunction with any other person or persons,
corporation or corporations.
(8) To guarantee the validity, performance or effect of any
contract or agreement, and the fidelity of persons holding
places of responsibility or trust; to become surety for any
person, or persons, for the faithful performance of any
trust, office, duty, contract or agreement, either by itself
or in conjunction with any other person, or persons,
corporation, or corporations, or in like manner become
surety upon any bond, recognizance, obligation, judgment,
suit, order, or decree to be entered in any court of record
within the State of Delaware or elsewhere, or which may now
or hereafter be required by any law, judge, officer or court
in the State of Delaware or elsewhere.
(9) To act by any and every method of appointment as
trustee, trustee in bankruptcy, receiver, assignee, assignee
in bankruptcy, executor, administrator, guardian, bailee, or
in any other trust capacity in the receiving, holding,
managing, and disposing of any and all estates and property,
real, personal or mixed, and to be appointed as such
trustee, trustee in bankruptcy, receiver, assignee, assignee
in bankruptcy, executor, administrator, guardian or bailee
by any persons, corporations, court, officer, 10or
authority, in the State of Delaware
or elsewhere; and whenever this Corporation is so appointed by any person,
corporation, court, officer or authority such trustee, trustee in bankruptcy,
receiver, assignee, assignee in bankruptcy, executor, administrator, guardian,
bailee, or in any other trust capacity, it shall not be required to give bond
with surety, but its capital stock shall be taken and held as security for the
performance of the duties devolving upon it by such appointment.
(10) And for its care, management and trouble, and the
exercise of any of its powers hereby given, or for the
performance of any of the duties which it may undertake or
be called upon to perform, or for the assumption of any
responsibility the said Corporation may be entitled to
receive a proper compensation.
(11) To purchase, receive, hold and own bonds, mortgages,
debentures, shares of capital stock, and other securities,
obligations, contracts and evidences of indebtedness, of any
private, public or municipal corporation within and without
the State of Delaware, or of the Government of the United
States, or of any state, territory, colony, or possession
thereof, or of any foreign government or country; to
receive, collect, receipt for, and dispose of interest,
dividends and income upon and from any of the bonds,
mortgages, debentures, notes, shares of capital stock,
securities, obligations, contracts, evidences of
indebtedness and other property held and owned by it, and to
exercise in respect of all such bonds, mortgages,
debentures, notes, shares of capital stock, securities,
obligations, contracts, evidences of indebtedness and other
property, any and all the rights, powers and privileges of
individual owners thereof, including the right to vote
thereon; to invest and deal in and with any of the moneys of
the Corporation upon such securities and in such manner as
it may think fit and proper, and from time to time to vary
or realize such investments; to issue bonds and secure the
same by pledges or deeds of trust or mortgages of or upon
the whole or any part of the property held or owned by the
Corporation, and to sell and pledge such bonds, as and when
the Board of Directors shall determine, and in the promotion
of its said corporate business of investment and to the
extent authorized by law, to lease, purchase, hold, 11sell,
assign,
transfer, pledge, mortgage and convey real and personal property of any name and
nature and any estate or interest therein.
(b) In furtherance of, and not in limitation, of the powers conferred by
the laws of the State of Delaware, it is hereby expressly provided
that the said Corporation shall also have the following powers:
(1) To do any or all of the things herein set forth, to the
same extent as natural persons might or could do, and in any
part of the world.
(2) To acquire the good will, rights, property and
franchises and to undertake the whole or any part of the
assets and liabilities of any person, firm, association or
corporation, and to pay for the same in cash, stock of this
Corporation, bonds or otherwise; to hold or in any manner to
dispose of the whole or any part of the property so
purchased; to conduct in any lawful manner the whole or any
part of any business so acquired, and to exercise all the
powers necessary or convenient in and about the conduct and
management of such business.
(3) To take, hold, own, deal in, mortgage or otherwise lien,
and to lease, sell, exchange, transfer, or in any manner
whatever dispose of property, real, personal or mixed,
wherever situated.
(4) To enter into, make, perform and carry out contracts of
every kind with any person, firm, association or
corporation, and, without limit as to amount, to draw, make,
accept, endorse, discount, execute and issue promissory
notes, drafts, bills of exchange, warrants, bonds,
debentures, and other negotiable or transferable
instruments.
(5) To have one or more offices, to carry on all or any of
its operations and businesses, without restriction to the
same extent as natural persons might or could do, to
purchase or otherwise acquire, to hold, own, to mortgage,
sell, convey or otherwise dispose of, real and personal
property, of every class and description, in any State,
District, Territory or Colony of the United States, and in
any foreign country or place.
12
(6) It is the intention that the objects, purposes and
powers specified and clauses contained in this paragraph
shall (except where otherwise expressed in said paragraph)
be nowise limited or restricted by reference to or inference
from the terms of any other clause of this or any other
paragraph in this charter, but that the objects, purposes
and powers specified in each of the clauses of this
paragraph shall be regarded as independent objects, purposes
and powers.
Fourth: - (a) The total number of shares of all classes of stock which
the Corporation shall have authority to issue is forty-one million
(41,000,000) shares, consisting of:
(1) One million (1,000,000) shares of Preferred stock, par
value $10.00 per share (hereinafter referred to as
"Preferred Stock"); and
(2) Forty million (40,000,000) shares of Common Stock, par
value $1.00 per share (hereinafter referred to as "Common
Stock").
(b) Shares of Preferred Stock may be issued from time to time in one or
more series as may from time to time be determined by the Board of Directors
each of said series to be distinctly designated. All shares of any one series of
Preferred Stock shall be alike in every particular, except that there may be
different dates from which dividends, if any, thereon shall be cumulative, if
made cumulative.
The voting powers and the preferences and relative, participating, optional
and other special rights of each such series, and the qualifications,
limitations or restrictions thereof, if any, may differ from those of any and
all other series at any time outstanding; and, subject to the provisions of
subparagraph 1 of Paragraph (c) of this Article Fourth, the Board of Directors
of the Corporation is hereby expressly granted authority to fix by resolution or
resolutions adopted prior to the issuance of any shares of a particular series
of Preferred Stock, the voting powers and the designations, preferences and
relative, optional and other special rights, and the qualifications, limitations
and restrictions of such series, including, but without limiting the generality
of the foregoing, the following:
(1) The distinctive designation of, and the number of shares
of Preferred Stock which shall constitute such series, which
number may be increased (except where 13otherwise provided
by
the Board of Directors) or decreased (but not below the number of shares thereof
then outstanding) from time to time by like action of the Board of Directors;
(2) The rate and times at which, and the terms and
conditions on which, dividends, if any, on Preferred Stock
of such series shall be paid, the extent of the preference
or relation, if any, of such dividends to the dividends
payable on any other class or classes, or series of the same
or other class of stock and whether such dividends shall be
cumulative or non-cumulative;
(3) The right, if any, of the holders of Preferred Stock of
such series to convert the same into or exchange the same
for, shares of any other class or classes or of any series
of the same or any other class or classes of stock of the
Corporation and the terms and conditions of such conversion
or exchange;
(4) Whether or not Preferred Stock of such series shall be
subject to redemption, and the redemption price or prices
and the time or times at which, and the terms and conditions
on which, Preferred Stock of such series may be redeemed.
(5) The rights, if any, of the holders of Preferred Stock of
such series upon the voluntary or involuntary liquidation,
merger, consolidation, distribution or sale of assets,
dissolution or winding-up, of the Corporation.
(6) The terms of the sinking fund or redemption or purchase
account, if any, to be provided for the Preferred Stock of
such series; and
(7) The voting powers, if any, of the holders of such series
of Preferred Stock which may, without limiting the
generality of the foregoing include the right, voting as a
series or by itself or together with other series of
Preferred Stock or all series of Preferred Stock as a class,
to elect one or more directors of the Corporation if there
shall have been a default in the payment of dividends on any
one or more series of Preferred Stock or under such
circumstances and on such conditions as the Board of
Directors may determine.
(c) (1) After the requirements with respect to preferential dividends on
the Preferred Stock (fixed in accordance with the provisions of section (b) of
this Article Fourth), if any, shall have been met and after the Corporation
shall have complied with all the requirements, if any, with respect to the
setting aside of sums as sinking funds or redemption or purchase accounts (fixed
in accordance with the provisions of section (b) of this Article Fourth), and
subject further to any conditions which may be fixed in accordance with the
provisions of section (b) of this Article Fourth, then and not otherwise the
holders of Common Stock shall be entitled to receive such dividends as may be
declared from time to time by the Board of Directors.
(2) After distribution in full of the preferential amount, if any, (fixed
in accordance with the provisions of section (b) of this Article Fourth), to be
distributed to the holders of Preferred Stock in the event of voluntary or
involuntary liquidation, distribution or sale of assets, dissolution or winding-
up, of the Corporation, the holders of the Common Stock shall be entitled to
receive all of the remaining assets of the Corporation, tangible and intangible,
of whatever kind available for distribution to stockholders ratably in
proportion to the number of shares of Common Stock held by them respectively.
(3) Except as may otherwise be required by law or by the provisions of such
resolution or resolutions as may be adopted by the Board of Directors pursuant
to section (b) of this Article Fourth, each holder of Common Stock shall have
one vote in respect of each share of Common Stock held on all matters voted upon
by the stockholders.
(d) No holder of any of the shares of any class or series of stock or of
options, warrants or other rights to purchase shares of any class or series of
stock or of other securities of the Corporation shall have any preemptive right
to purchase or subscribe for any unissued stock of any class or series or any
additional shares of any class or series to be issued by reason of any increase
of the authorized capital stock of the Corporation of any class or series, or
bonds, certificates of indebtedness, debentures or other securities convertible
into or 15exchangeable for stock of the Corporation of any class or series, or
carrying any right to purchase stock of any class or series, but any such
unissued stock, additional authorized issue of shares of any class or series of
stock or securities convertible into or exchangeable for stock, or carrying any
right to purchase stock, may be issued and disposed of pursuant to resolution of
the Board of Directors to such persons, firms, corporations or associations,
whether such holders or others, and upon such terms as may be deemed advisable
by the Board of Directors in the exercise of its sole discretion.
(e) The relative powers, preferences and rights of each series of Preferred
Stock in relation to the relative powers, preferences and rights of each other
series of Preferred Stock shall, in each case, be as fixed from time to time by
the Board of Directors in the resolution or resolutions adopted pursuant to
authority granted in section (b) of this Article Fourth and the consent, by
class or series vote or otherwise, of the holders of such of the series of
Preferred Stock as are from time to time outstanding shall not be required for
the issuance by the Board of Directors of any other series of Preferred Stock
whether or not the powers, preferences and rights of such other series shall be
fixed by the Board of Directors as senior to, or on a parity with, the powers,
preferences and rights of such outstanding series, or any of them; provided,
however, that the Board of Directors may provide in the resolution or
resolutions as to any series of Preferred Stock adopted pursuant to section (b)
of this Article Fourth that the consent of the holders of a majority (or such
greater proportion as shall be therein fixed) of the outstanding shares of such
series voting thereon shall be required for the issuance of any or all other
series of Preferred Stock.
(f) Subject to the provisions of section (e), shares of any series of
Preferred Stock may be issued from time to time as the Board of Directors of the
Corporation shall determine and on such terms and for such consideration as
shall be fixed by the Board of Directors.
(g) Shares of Common Stock may be issued from time to time as the Board of
Directors of the Corporation shall determine and on such terms and for such
consideration as shall be fixed by the Board of Directors.
(h) The authorized amount of shares of Common Stock and of Preferred
Stock may, without a class or series vote, be increased or decreased from time
to time by the affirmative vote of the holders of a majority of the stock of the
Corporation entitled to vote thereon.
Fifth:- (a) The business and affairs of the Corporation shall be
conducted and managed by a Board of Directors. The number of
directors constituting the entire Board shall be not less than five
nor more than twenty-five as fixed from time to time by vote of a
majority of the whole Board, provided, however, that the number of
directors shall not be reduced so as to shorten the term of any
director at the time in office, and provided further, that the
number of directors constituting the whole Board shall be
twenty-four until otherwise fixed by a majority of the whole Board.
(b) The Board of Directors shall be divided into three classes, as nearly
equal in number as the then total number of directors constituting the whole
Board permits, with the term of office of one class expiring each year. At the
annual meeting of stockholders in 1982, directors of the first class shall be
elected to hold office for a term expiring at the next succeeding annual
meeting, directors of the second class shall be elected to hold office for a
term expiring at the second succeeding annual meeting and directors of the third
class shall be elected to hold office for a term expiring at the third
succeeding annual meeting. Any vacancies in the Board of Directors for any
reason, and any newly created directorships resulting from any increase in the
directors, may be filled by the Board of Directors, acting by a majority of the
directors then in office, although less than a quorum, and any directors so
chosen shall hold office until the next annual election of directors. At such
election, the stockholders shall elect a successor to such director to hold
office until the next election of the class for which such director shall have
been chosen and until his successor shall be elected and qualified. No decrease
in the number of directors shall shorten the term of any incumbent director.
(c) Notwithstanding any other provisions of this Charter or Act of
Incorporation or the By-Laws of the Corporation (and notwithstanding the fact
that some lesser percentage may be specified by law, this Charter or Act of
Incorporation or the By- 17 Laws of the Corporation), any director or the entire
Board of Directors of the Corporation may be removed at any time without cause,
but only by the affirmative vote of the holders of two-thirds or more of the
outstanding shares of capital stock of the Corporation entitled to vote
generally in the election of directors (considered for this purpose as one
class) cast at a meeting of the stockholders called for that purpose.
(d) Nominations for the election of directors may be made by the Board of
Directors or by any stockholder entitled to vote for the election of directors.
Such nominations shall be made by notice in writing, delivered or mailed by
first class United States mail, postage prepaid, to the Secretary of the
Corporation not less than 14 days nor more than 50 days prior to any meeting of
the stockholders called for the election of directors; provided, however, that
if less than 21 days' notice of the meeting is given to stockholders, such
written notice shall be delivered or mailed, as prescribed, to the Secretary of
the Corporation not later than the close of the seventh day following the day on
which notice of the meeting was mailed to stockholders. Notice of nominations
which are proposed by the Board of Directors shall be given by the Chairman on
behalf of the Board.
(e) Each notice under subsection (d) shall set forth (i) the name, age,
business address and, if known, residence address of each nominee proposed in
such notice, (ii) the principal occupation or employment of such nominee and
(iii) the number of shares of stock of the Corporation which are beneficially
owned by each such nominee.
(f) The Chairman of the meeting may, if the facts warrant, determine and
declare to the meeting that a nomination was not made in accordance with the
foregoing procedure, and if he should so determine, he shall so declare to the
meeting and the defective nomination shall be disregarded.
(g) No action required to be taken or which may be taken at any annual or
special meeting of stockholders of the Corporation may be taken without a
meeting, and the power of stockholders to consent in writing, without a meeting,
to the taking of any action is specifically denied.
Sixth: - The Directors shall choose such officers, agent and servants as
may be provided in the By-Laws as they may from time to time
find necessary or proper.
Seventh: - The Corporation hereby created is hereby given the same powers,
rights and privileges as may be conferred upon corporations
organized under the Act entitled "An Act Providing a General
Corporation Law", approved March 10, 1899, as from time to time
amended.
Eighth: - This Act shall be deemed and taken to be a private Act.
Ninth: - This Corporation is to have perpetual existence.
Tenth:- The Board of Directors, by resolution passed by a majority of the
whole Board, may designate any of their number to constitute an
Executive Committee, which Committee, to the extent provided in said
resolution, or in the By-Laws of the Company, shall have and may
exercise all of the powers of the Board of Directors in the
management of the business and affairs of the Corporation, and shall
have power to authorize the seal of the Corporation to be affixed to
all papers which may require it.
Eleventh: - The private property of the stockholders shall not be liable
for the payment of corporate debts to any extent whatever.
Twelfth: - The Corporation may transact business in any part of the world.
Thirteenth: - The Board of Directors of the Corporation is expressly
authorized to make, alter or repeal the By-Laws of the Corporation
by a vote of the majority of the entire Board. The stockholders may
make, alter or repeal any By-Law whether or not adopted by them,
provided however, that any such additional By-Laws, alterations or
repeal may be adopted only by the affirmative vote of the holders of
two-thirds or more of the outstanding shares of capital stock of the
Corporation entitled to vote generally in the election of directors
(considered for this purpose as one class).
Fourteenth: - Meetings of the Directors may be held outside
of the State of Delaware at such places as may be from time to time
designated by the Board, and the Directors may keep the books of the
Company outside of the State of Delaware at such places as may be
from time to time designated by them.
Fifteenth: - (a) (1) In addition to any affirmative vote required by law,
and except as otherwise expressly provided in sections (b) and
(c) of this Article Fifteenth:
(A) any merger or consolidation of the Corporation or any Subsidiary (as
hereinafter defined) with or into (i) any Interested Stockholder (as hereinafter
defined) or (ii) any other corporation (whether or not itself an Interested
Stockholder), which, after such merger or consolidation, would be an Affiliate
(as hereinafter defined) of an Interested Stockholder, or
(B) any sale, lease, exchange, mortgage, pledge, transfer or other
disposition (in one transaction or a series of related transactions) to or with
any Interested Stockholder or any Affiliate of any Interested Stockholder of any
assets of the Corporation or any Subsidiary having an aggregate fair market
value of $1,000,000 or more, or
(C) the issuance or transfer by the Corporation or any Subsidiary (in one
transaction or a series of related transactions) of any securities of the
Corporation or any Subsidiary to any Interested Stockholder or any Affiliate of
any Interested Stockholder in exchange for cash, securities or other property
(or a combination thereof) having an aggregate fair market value of $1,000,000
or more, or
(D) the adoption of any plan or proposal for the liquidation or dissolution
of the Corporation, or
(E) any reclassification of securities (including any reverse stock split),
or recapitalization of the Corporation, or any merger or consolidation of the
Corporation with any of its Subsidiaries or any similar transaction (whether or
not with or into or otherwise involving an Interested Stockholder) which has the
effect, directly or indirectly, of increasing the proportionate share of the
outstanding shares of any class of equity or convertible securities of the
Corporation or any Subsidiary which is directly or indirectly owned by any
Interested Stockholder, or any Affiliate of any Interested Stockholder, shall
require the affirmative vote of the holders of at least two-thirds of the
outstanding shares of capital stock of the Corporation entitled to vote
generally in the election of directors, considered for the purpose of this
Article Fifteenth as one class ("Voting Shares"). Such affirmative vote shall be
required notwithstanding the fact that no vote may be required, or that some
lesser percentage may be specified, by law or in any agreement with any national
securities exchange or otherwise.
(2) The term "business combination" as used in this Article Fifteenth shall
mean any transaction which is referred to any one or more of clauses (A) through
(E) of paragraph 1 of the section (a).
(b) The provisions of section (a) of this Article Fifteenth shall not be
applicable to any particular business combination and such business combination
shall require only such affirmative vote as is required by law and any other
provisions of the Charter or Act of Incorporation of By-Laws if such business
combination has been approved by a majority of the whole Board.
(c) For the purposes of this Article Fifteenth:
(1) A "person" shall mean any individual firm, corporation or other entity.
(2) "Interested Stockholder" shall mean, in respect of any business
combination, any person (other than the Corporation or any Subsidiary) who or
which as of the record date for the determination of stockholders entitled to
notice of and to vote on such business combination, or immediately prior to the
consummation of any such transaction:
(A) is the beneficial owner, directly or indirectly, of more
than 10% of the Voting Shares, or
(B) is an Affiliate of the Corporation and at any time
within two years prior thereto was the beneficial owner,
directly or indirectly, of not less than 10% of the then
outstanding voting Shares, or
(C) is an assignee of or has otherwise succeeded in any
share of capital stock of the Corporation which 21were at
any time within two years prior thereto beneficially owned
by any
Interested Stockholder, and such assignment or succession shall have occurred in
the course of a transaction or series of transactions not involving a public
offering within the meaning of the Securities Act of 1933.
(3) A person shall be the "beneficial owner" of any Voting Shares:
(A) which such person or any of its Affiliates and
Associates (as hereafter defined) beneficially own, directly
or indirectly, or
(B) which such person or any of its Affiliates or Associates
has (i) the right to acquire (whether such right is
exercisable immediately or only after the passage of time),
pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights,
warrants or options, or otherwise, or (ii) the right to vote
pursuant to any agreement, arrangement or understanding, or
(C) which are beneficially owned, directly or indirectly, by
any other person with which such first mentioned person or
any of its Affiliates or Associates has any agreement,
arrangement or understanding for the purpose of acquiring,
holding, voting or disposing of any shares of capital stock
of the Corporation.
(4) The outstanding Voting Shares shall include shares deemed owned
through application of paragraph (3) above but shall not include any
other Voting Shares which may be issuable pursuant to any agreement,
or upon exercise of conversion rights, warrants or options or
otherwise.
(5) "Affiliate" and "Associate" shall have the respective meanings given
those terms in Rule 12b-2 of the General Rules and Regulations under
the Securities Exchange Act of 1934, as in effect on December 31,
1981.
(6) "Subsidiary" shall mean any corporation of which a majority of any
class of equity security (as defined in Rule 3a11-1 of the General
Rules and Regulations under the Securities Exchange Act of 1934, as
in effect in December 31, 1981) is owned, directly or indirectly, by
the 22Corporation;
provided, however, that for the purposes of the definition of Investment
Stockholder set forth in paragraph (2) of this section (c), the term
"Subsidiary" shall mean only a corporation of which a majority of each class of
equity security is owned, directly or indirectly, by the Corporation.
(d) majority of the directors shall have the power and duty
to determine for the purposes of this Article Fifteenth on
the basis of information known to them, (1) the number of
Voting Shares beneficially owned by any person (2) whether a
person is an Affiliate or Associate of another, (3) whether
a person has an agreement, arrangement or understanding with
another as to the matters referred to in paragraph (3) of
section (c), or (4) whether the assets subject to any
business combination or the consideration received for the
issuance or transfer of securities by the Corporation, or
any Subsidiary has an aggregate fair market value of
$1,000,000 or more.
(e) Nothing contained in this Article Fifteenth shall be
construed to relieve any Interested Stockholder from any
fiduciary obligation imposed by law.
Sixteenth: Notwithstanding any other provision of this Charter or Act of
Incorporation or the By-Laws of the Corporation (and in addition to
any other vote that may be required by law, this Charter or Act of
Incorporation by the By-Laws), the affirmative vote of the holders
of at least two-thirds of the outstanding shares of the capital
stock of the Corporation entitled to vote generally in the election
of directors (considered for this purpose as one class) shall be
required to amend, alter or repeal any provision of Articles Fifth,
Thirteenth, Fifteenth or Sixteenth of this Charter or Act of
Incorporation.
Seventeenth: (a) a Director of this Corporation shall not be liable to the
Corporation or its stockholders for monetary damages for breach of
fiduciary duty as a Director, except to the extent such exemption
from liability or limitation thereof is not permitted under the
Delaware General Corporation Laws as the same exists or may
hereafter be amended.
(b) Any repeal or modification of the foregoing paragraph
shall not adversely affect any right or 23protection of a
Director of the Corporation existing hereunder with respect
to any
act or omission occurring prior to the time of such repeal or modification."
EXHIBIT B
BY-LAWS
WILMINGTON TRUST COMPANY
WILMINGTON, DELAWARE
As existing on January 16, 1997
BY-LAWS OF WILMINGTON TRUST COMPANY
ARTICLE I
Stockholders' Meetings
Section 1. The Annual Meeting of Stockholders shall be held on the
third Thursday in April each year at the principal office at the Company or at
such other date, time, or place as may be designated by resolution by the Board
of Directors.
Section 2. Special meetings of all stockholders may be called at any
time by the Board of Directors, the Chairman of the Board or the President.
Section 3. Notice of all meetings of the stockholders shall be given by
mailing to each stockholder at least ten (10) days before said meeting, at his
last known address, a written or printed notice fixing the time and place of
such meeting.
Section 4. A majority in the amount of the capital stock of the Company
issued and outstanding on the record date, as herein determined, shall
constitute a quorum at all meetings of stockholders for the transaction of any
business, but the holders of a small number of shares may adjourn, from time to
time, without further notice, until a quorum is secured. At each annual or
special meeting of stockholders, each stockholder shall be entitled to one vote,
either in person or by proxy, for each shares of stock registered in the
stockholder's name on the books of the Company on the record date for any such
meeting as determined herein.
ARTICLE II
Directors
Section 1. The number and classification of the Board of Directors
shall be as set forth in the Charter of the Bank.
Section 2. No person who has attained the age of seventy-two (72) years
shall be nominated for election to the Board of Directors of the Company,
provided, however, that this limitation shall not apply to any person who was
serving as director of the Company on September 16, 1971.
Section 3. The class of Directors so elected shall hold office for
three years or until their successors are elected and qualified.
Section 4. The affairs and business of the Company shall be managed and
conducted by the Board of Directors.
Section 5. The Board of Directors shall meet at the principal office of
the Company or elsewhere in its discretion at such times to be determined by a
majority of its members, or at the call of the Chairman of the Board of
Directors or the President.
Section 6. Special meetings of the Board of Directors may be called at
any time by the Chairman of the Board of Directors or by the President, and
shall be called upon the written request of a majority of the directors.
Section 7. A majority of the directors elected and qualified shall be
necessary to constitute a quorum for the transaction of business at any meeting
of the Board of Directors.
Section 8. Written notice shall be sent by mail to each director of any
special meeting of the Board of Directors, and of any change in the time or
place of any regular meeting, stating the time and place of such meeting, which
shall be mailed not less than two days before the time of holding such meeting.
Section 9. In the event of the death, resignation, removal, inability
to act, or disqualification of any director, the Board of Directors, although
less than a quorum, shall have the right to elect the successor who shall hold
office for the remainder of the full term of the class of directors in which the
vacancy occurred, and until such director's successor shall have been duly
elected and qualified.
Section 10. The Board of Directors at its first meeting after its
election by the stockholders shall appoint an Executive Committee, a Trust
Committee, an Audit Committee and a Compensation Committee, and shall elect from
its own members a Chairman of the Board of Directors and a President who may be
the same person. The Board of Directors shall also elect at such meeting a
Secretary and a Treasurer, who may be the same person, may appoint at any time
such other committees and elect or appoint such other officers as it may deem
advisable. The Board of Directors may also elect at such meeting one or more
Associate Directors.
Section 11. The Board of Directors may at any time remove, with or
without cause, any member of any Committee appointed by it or any associate
director or officer elected by it and may appoint or elect his successor.
Section 12. The Board of Directors may designate an officer to be in
charge of such of the departments or division of the Company as it may deem
advisable.
ARTICLE III
Committees
Section 1. Executive Committee
(A) The Executive Committee shall be composed of
not more than nine members who
shall be selected by the Board of Directors from its own members and who shall
hold office during the pleasure of the Board.
(B) The Executive Committee shall have all the
powers of the Board of Directors
when it is not in session to transact all business for and in behalf of the
Company that may be brought before it.
(C) The Executive Committee shall meet at the
principal office of the Company or
elsewhere in its discretion at such times to be determined by a majority of its
members, or at the call of the Chairman of the Executive Committee or at the
call of the Chairman of the Board of Directors. The majority of its members
shall be necessary to constitute a quorum for the transaction of business.
Special meetings of the Executive Committee may be held at any time when a
quorum is present.
(D) Minutes of each meeting of the Executive
Committee shall be kept and submitted
to the Board of Directors at its next meeting.
(E) The Executive Committee shall advise and
superintend all investments that may
be made of the funds of the Company, and shall direct the disposal of the same,
in accordance with such rules and regulations as the Board of Directors from
time to time make.
(F) In the event of a state of disaster of
sufficient severity to prevent the
conduct and management of the affairs and business of the Company by its
directors and officers as contemplated by these By-Laws any two available
members of the Executive Committee as constituted immediately prior to such
disaster shall constitute a quorum of that Committee for the full conduct and
management of the affairs and business of the Company in accordance with the
provisions of Article III of these By-Laws; and if less than three members of
the Trust Committee is constituted immediately prior to such disaster shall be
available for the transaction of its business, such Executive Committee shall
also be empowered to exercise all of the powers reserved to the Trust Committee
under Article III Section 2 hereof. In the event of the unavailability, at such
time, of a minimum of two 29members of such Executive Committee, any three
available directors shall constitute the Executive Committee for the full
conduct and management of the affairs and business of the Company in accordance
with the foregoing provisions of this Section. This By-Law shall be subject to
implementation by Resolutions of the Board of Directors presently existing or
hereafter passed from time to time for that purpose, and any provisions of these
By-Laws (other than this Section) and any resolutions which are contrary to the
provisions of this Section or to the provisions of any such implementary
Resolutions shall be suspended during such a disaster period until it shall be
determined by any interim Executive Committee acting under this section that it
shall be to the advantage of the Company to resume the conduct and management of
its affairs and business under all of the other provisions of these By-Laws.
Section 2. Trust Committee
(A) The Trust Committee shall be composed of not
more than thirteen members who
shall be selected by the Board of Directors, a majority of whom shall be members
of the Board of Directors and who shall hold office during the pleasure of the
Board.
(B) The Trust Committee shall have general
supervision over the Trust Department
and the investment of trust funds, in all matters, however, being subject to the
approval of the Board of Directors.
(C) The Trust Committee shall meet at the principal
office of the Company or
elsewhere in its discretion at such times to be determined by a majority of its
members or at the call of its chairman. A majority of its members shall be
necessary to constitute a quorum for the transaction of business.
(D) Minutes of each meeting of the Trust Committee
shall be kept and promptly
submitted to the Board of Directors.
(E) The Trust Committee shall have the power to
appoint Committees and/or designate
officers or employees of the Company to whom supervision over the investment of
trust funds may be delegated when the Trust Committee is not in session.
Section 3. Audit Committee
(A) The Audit Committee shall be composed of five
members who shall be selected by
the Board of Directors from its own 30members, none of whom shall be an officer
of the Company, and shall hold office at the pleasure of the Board.
(B) The Audit Committee shall have general
supervision over the Audit Division in
all matters however subject to the approval of the Board of Directors; it shall
consider all matters brought to its attention by the officer in charge of the
Audit Division, review all reports of examination of the Company made by any
governmental agency or such independent auditor employed for that purpose, and
make such recommendations to the Board of Directors with respect thereto or with
respect to any other matters pertaining to auditing the Company as it shall deem
desirable.
(C) The Audit Committee shall meet whenever and
wherever the majority of its
members shall deem it to be proper for the transaction of its business, and a
majority of its Committee shall constitute a quorum.
Section 4. Compensation Committee
(A) The Compensation Committee shall be composed of
not more than five (5) members
who shall be selected by the Board of Directors from its own members who are not
officers of the Company and who shall hold office during the pleasure of the
Board.
(B) The Compensation Committee shall in general
advise upon all matters of policy
concerning the Company brought to its attention by the management and from time
to time review the management of the Company, major organizational matters,
including salaries and employee benefits and specifically shall administer the
Executive Incentive Compensation Plan.
(C) Meetings of the Compensation Committee may be
called at any time by the
Chairman of the Compensation Committee, the Chairman of the Board of Directors,
or the President of the Company.
Section 5. Associate Directors
(A) Any person who has served as a director may
be elected by the Board of directors as an associate director, to serve during
the pleasure of the Board.
(B) An associate director shall be entitled to
attend all directors meetings and
participate in the discussion of all matters brought to the Board, with the
exception that he would 31have no right to vote. An associate director will be
eligible for appointment to Committees of the Company, with the exception of the
Executive Committee, Audit Committee and Compensation Committee, which must be
comprised solely of active directors.
Section 6. Absence or Disqualification of Any Member of a Committee
(A) In the absence or disqualification of any
member of any Committee created under
Article III of the By-Laws of this Company, the member or members thereof
present at any meeting and not disqualified from voting, whether or not he or
they constitute a quorum, may unanimously appoint another member of the Board of
Directors to act at the meeting in the place of any such absence or disqualified
member.
ARTICLE IV
Officers
Section 1. The Chairman of the Board of Directors shall preside at all
meetings of the Board and shall have such further authority and powers and shall
perform such duties as the Board of Directors may from time to time confer and
direct. He shall also exercise such powers and perform such duties as may from
time to time be agreed upon between himself and the President of the Company.
Section 2. The Vice Chairman of the Board. The Vice Chairman of the
Board of Directors shall preside at all meetings of the Board of Directors at
which the Chairman of the Board shall not be present and shall have such further
authority and powers and shall perform such duties as the Board of Directors or
the Chairman of the Board may from time to time confer and direct.
Section 3. The President shall have the powers and duties pertaining to
the office of the President conferred or imposed upon him by statute or assigned
to him by the Board of Directors in the absence of the Chairman of the Board the
President shall have the powers and duties of the Chairman of the Board.
Section 4. The Chairman of the Board of Directors or the President as
designated by the Board of Directors, shall carry into effect all legal
directions of the Executive Committee and of the Board of Directors, and shall
at all times exercise general supervision over the interest, affairs and
operations of the Company and perform all duties incident to his office.
Section 5. There may be one or more Vice Presidents, however
denominated by the Board of Directors, who may at any time perform all the
duties of the Chairman of the Board of Directors and/or the President and such
other powers and duties as may from time to time be assigned to them by the
Board of Directors, the Executive Committee, the Chairman of the Board or the
President and by the officer in charge of the department or division to which
they are assigned.
Section 6. The Secretary shall attend to the giving of notice of
meetings of the stockholders and the Board of Directors, as well as the
Committees thereof, to the keeping of accurate minutes of all such meetings and
to recording the same in the minute books of the Company. In addition to the
other notice requirements of these By-Laws and as may be practicable under the
circumstances, all such notices shall be in writing and mailed well in advance
of the scheduled date of any other meeting. He shall have custody of the
corporate seal and shall affix the same to any documents requiring such
corporate seal and to attest the same.
Section 7. The Treasurer shall have general supervision over all assets
and liabilities of the Company. He shall be custodian of and responsible for all
monies, funds and valuables of the Company and for the keeping of proper records
of the evidence of property or indebtedness and of all the transactions of the
Company. He shall have general supervision of the expenditures of the Company
and shall report to the Board of Directors at each regular meeting of the
condition of the Company, and perform such other duties as may be assigned to
him from time to time by the Board of Directors of the Executive Committee.
Section 8. There may be a Controller who shall exercise general
supervision over the internal operations of the Company, including accounting,
and shall render to the Board of Directors at appropriate times a report
relating to the general condition and internal operations of the Company.
There may be one or more subordinate accounting or controller officers
however denominated, who may perform the duties of the Controller and such
duties as may be prescribed by the Controller.
Section 9. The officer designated by the Board of Directors to be in
charge of the Audit Division of the Company with such title as the Board of
Directors shall prescribe, shall report to and be directly responsible only to
the Board of Directors. 33
There shall be an Auditor and there may be one or more Audit Officers,
however denominated, who may perform all the duties of the Auditor and such
duties as may be prescribed by the officer in charge of the Audit Division.
Section 10. There may be one or more officers, subordinate in rank to
all Vice Presidents with such functional titles as shall be determined from time
to time by the Board of Directors, who shall ex officio hold the office
Assistant Secretary of this Company and who may perform such duties as may be
prescribed by the officer in charge of the department or division to whom they
are assigned.
Section 11. The powers and duties of all other officers of the Company
shall be those usually pertaining to their respective offices, subject to the
direction of the Board of Directors, the Executive Committee, Chairman of the
Board of Directors or the President and the officer in charge of the department
or division to which they are assigned.
ARTICLE V
Stock and Stock Certificates
Section 1. Shares of stock shall be transferrable on the books of the
Company and a transfer book shall be kept in which all transfers of stock shall
be recorded.
Section 2. Certificate of stock shall bear the signature of the
President or any Vice President, however denominated by the Board of Directors
and countersigned by the Secretary or Treasurer or an Assistant Secretary, and
the seal of the corporation shall be engraved thereon. Each certificate shall
recite that the stock represented thereby is transferrable only upon the books
of the Company by the holder thereof or his attorney, upon surrender of the
certificate properly endorsed. Any certificate of stock surrendered to the
Company shall be cancelled at the time of transfer, and before a new certificate
or certificates shall be issued in lieu thereof. Duplicate certificates of stock
shall be issued only upon giving such security as may be satisfactory to the
Board of Directors or the Executive Committee.
Section 3. The Board of Directors of the Company is authorized to fix
in advance a record date for the determination of the stockholders entitled to
notice of, and to vote at, any meeting of stockholders and any adjournment
thereof, or entitled 34to receive payment of any dividend, or to any allotment
or rights, or to exercise any rights in respect of any change, conversion or
exchange of capital stock, or in connection with obtaining the consent of
stockholders for any purpose, which record date shall not be more than 60 nor
less than 10 days proceeding the date of any meeting of stockholders or the date
for the payment of any dividend, or the date for the allotment of rights, or the
date when any change or conversion or exchange of capital stock shall go into
effect, or a date in connection with obtaining such consent.
ARTICLE VI
Seal
Section 1. The corporate seal of the Company shall be in the following
form:
Between two concentric circles the words "Wilmington Trust Company" within
the inner circle the words "Wilmington, Delaware."
ARTICLE VII
Fiscal Year
Section 1. The fiscal year of the Company shall be the calendar year.
ARTICLE VIII
Execution of Instruments of the Company
Section 1. The Chairman of the Board, the President or any Vice President,
however denominated by the Board of Directors, shall have full power and
authority to enter into, make, sign, execute, acknowledge and/or deliver and the
Secretary or any Assistant Secretary shall have full power and authority to
attest and affix the corporate seal of the Company to any and all deeds,
conveyances, assignments, releases, contracts, agreements, bonds, notes,
mortgages and all other instruments incident to the business of this Company or
in acting as executor, administrator, guardian, trustee, agent or in any other
fiduciary or representative capacity by any and every method of appointment or
by whatever person, corporation, court officer or authority in the State of
Delaware, or elsewhere, without any specific authority, ratification, approval
or confirmation by the Board of Directors or the Executive Committee, and any
and all such instruments shall have the same force and validity as though
expressly authorized by the Board of Directors and/or the Executive Committee.
ARTICLE IX
Compensation of Directors and Members of Committees
Section 1. Directors and associate directors of the Company, other than
salaried officers of the Company, shall be paid such reasonable honoraria or
fees for attending meetings of the Board of Directors as the Board of Directors
may from time to time determine. Directors and associate directors who serve as
members of committees, other than salaried employees of the Company, shall be
paid such reasonable honoraria or fees for services as members of committees as
the Board of Directors shall from time to time determine and directors and
associate directors may be employed by the Company for such special services as
the Board of Directors may from time to time determine and shall be paid for
such special services so performed reasonable compensation as may be determined
by the Board of Directors.
ARTICLE X
Indemnification
Section 1. (A) The Corporation shall indemnify and hold harmless, to the
fullest extent permitted by applicable law as it presently exists or may
hereafter be amended, any person who was 36or is made or is threatened to be
made a party or is otherwise involved in any action, suit or proceeding, whether
civil, criminal, administrative or investigative (a "proceeding") by reason of
the fact that he, or a person for whom he is the legal representative, is or was
a director, officer, employee or agent of the Corporation or is or was serving
at the request of the Corporation as a director, officer, employee, fiduciary or
agent of another corporation or of a partnership, joint venture, trust,
enterprise or non-profit entity, including service with respect to employee
benefit plans, against all liability and loss suffered and expenses reasonably
incurred by such person. The Corporation shall indemnify a person in connection
with a proceeding initiated by such person only if the proceeding was authorized
by the Board of Directors of the Corporation.
(B) The Corporation shall pay the expenses
incurred in defending any proceeding in advance of its final disposition,
provided, however, that the payment of expenses incurred by a Director officer
in his capacity as a Director or officer in advance of the final disposition of
the proceeding shall be made only upon receipt of an undertaking by the Director
or officer to repay all amounts advanced if it should be ultimately determined
that the Director or officer is not entitled to be indemnified under this
Article or otherwise.
(C) If a claim for indemnification or
payment of expenses, under this Article X is not paid in full within ninety days
after a written claim therefor has been received by the Corporation the claimant
may file suit to recover the unpaid amount of such claim and, if successful in
whole or in part, shall be entitled to be paid the expense of prosecuting such
claim. In any such action the Corporation shall have the burden of proving that
the claimant was not entitled to the requested indemnification of payment of
expenses under applicable law.
(D) The rights conferred on any person by
this Article X shall not be exclusive of any other rights which such person may
have or hereafter acquire under any statute, provision of the Charter or Act of
Incorporation, these By-Laws, agreement, vote of stockholders or disinterested
Directors or otherwise.
(E) Any repeal or modification of the
foregoing provisions of this Article X shall not adversely affect any right or
protection hereunder of any person in respect of any act or omission occurring
prior to the time of such repeal or modification.
ARTICLE XI
Amendments to the By-Laws
Section 1. These By-Laws may be altered, amended or repealed, in whole or
in part, and any new By-Law or By-Laws adopted at any regular or special meeting
of the Board of Directors by a vote of the majority of all the members of the
Board of Directors then in office.
EXHIBIT C
Section 321(b) Consent
Pursuant to Section 321(b) of the Trust Indenture Act of 1939, as amended,
Wilmington Trust Company hereby consents that reports of examinations by
Federal, State, Territorial or District authorities may be furnished by such
authorities to the Securities and Exchange Commission upon requests therefor.
WILMINGTON TRUST COMPANY
Dated: June 15, 1999 By: /s/ JAMES P. LAWLER
-------------------------------
Name: James P. Lawler
Title: Vice President
EXHIBIT D
NOTICE
This form is intended to assist state nonmember banks and savings banks with
state publication requirements. It has not been approved by any state banking
authorities. Refer to your appropriate state banking authorities for your state
publication requirements.
R E P O R T O F C O N D I T I O N
Consolidating domestic subsidiaries of the
WILMINGTON TRUST COMPANY of WILMINGTON
- --------------------------------------------------------- ----------------
Name of Bank City
in the State of DELAWARE , at the close of business on March 31, 1999.
------------
ASSETS
Thousands of dollars
Cash and balances due from depository institutions:
Noninterest-bearing balances and currency and coins.................196,035
Interest-bearing balances ............................................... 0
Held-to-maturity securities............................................ 44,909
Available-for-sale securities........................................1,396,028
Federal funds sold and securities purchased under
agreements to resell ..............................................127,340
Loans and lease financing receivables:
Loans and leases, net of unearned income..... 4,176,290
LESS: Allowance for loan and lease losses..... 68,543
LESS: Allocated transfer risk reserve............... 0
Loans and leases, net of unearned income, allowance, and reserve..4,107,747
Assets held in trading accounts..............................................0
Premises and fixed assets (including capitalized leases)...............139,843
Other real estate owned................................................. 1,055
Investments in unconsolidated subsidiaries and associated companies..... 1,225
Customers' liability to this bank on acceptances outstanding................ 0
Intangible assets....................................................... 5,265
Other assets........................................................... 99,075
Total assets.........................................................6,118,520
LIABILITIES
Deposits:
In domestic offices..................................................4,332,124
Noninterest-bearing . . . . . . . . 959,777
Interest-bearing. . . . . . . . . . 3,372,347
Federal funds purchased and Securities sold under agreements
to repurchase......................................................... 432,395
Demand notes issued to the U.S. Treasury................................28,906
Trading liabilities (from Schedule RC-D).....................................0
Other borrowed money:...................................................//////
With original maturity of one year or less....................715,000
With original maturity of more than one year.................. 43,000
Bank's liability on acceptances executed and outstanding.................... 0
Subordinated notes and debentures........................................... 0
Other liabilities (from Schedule RC-G)..................................93,311
Total liabilities....................................................5,644,736
EQUITY CAPITAL
Perpetual preferred stock and related surplus................................0
Common Stock...............................................................500
Surplus (exclude all surplus related to preferred stock)............... 62,118
Undivided profits and capital reserves................................ 408,053
Net unrealized holding gains (losses) on available-for-sale securities.. 3,113
Total equity capital...................................................473,784
Total liabilities, limited-life preferred stock, and equity capital..6,118,520
1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM T-1
STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939
OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE PURSUANT TO
SECTION 305(b)(2)
WILMINGTON TRUST COMPANY
--------------------------------------------------
(Exact name of trustee as specified in its charter)
Delaware 51-0055023
- ----------------------- -----------------------------------
(State of incorporation) (I.R.S. employer identification no.)
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
---------------------------------------
(Address of principal executive offices)
Cynthia L. Corliss
Vice President and Trust Counsel
Wilmington Trust Company
Rodney Square North
Wilmington, Delaware 19890
(302) 651-8516
--------------------------------------------------------
(Name, address and telephone number of agent for service)
PEOPLES BANCORP INC.
--------------------------------------------------
(Exact name of obligor as specified in its charter)
Ohio 31-0987416
- ------------------------ ------------------------------------
(State of incorporation) (I.R.S. employer identification no.)
138 Putnam Street
Marietta, Ohio 45750
- --------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
Series B 8.62% Capital Securities Guarantee of Peoples Bancorp Inc.
-------------------------------------------------------------------
(Title of the indenture securities)
ITEM 1. GENERAL INFORMATION.
Furnish the following information as to the trustee:
Name and address of each examining or supervising authority
to which it is subject.
Federal Deposit Insurance Co. State Bank Commissioner
Five Penn Center Dover, Delaware
Suite #2901
Philadelphia, PA
Whether it is authorized to exercise corporate trust powers.
The trustee is authorized to exercise corporate trust
powers.
ITEM 2. AFFILIATIONS WITH THE OBLIGOR.
If the obligor is an affiliate of the trustee, describe each
affiliation:
Based upon an examination of the books and records of the
trustee and upon information furnished by the obligor, the obligor
is not an affiliate of the trustee.
ITEM 3. LIST OF EXHIBITS.
List below all exhibits filed as part of this Statement of
Eligibility and Qualification.
A. Copy of the Charter of Wilmington Trust Company, which
includes the certificate of authority of Wilmington Trust
Company to commence business and the authorization of
Wilmington Trust Company to exercise corporate trust powers.
B. Copy of By-Laws of Wilmington Trust Company.
C. Consent of Wilmington Trust Company required by Section
321(b) of Trust Indenture Act.
D. Copy of most recent Report of Condition of Wilmington Trust
Company.
Pursuant to the requirements of the Trust Indenture Act of 1939, as
amended, the trustee, Wilmington Trust Company, a corporation organized and
existing under the laws of Delaware, has duly caused this Statement of
Eligibility to be signed on its behalf by the undersigned, thereunto duly
authorized, all in the City of Wilmington and State of Delaware on the 15th day
of June, 1999.
WILMINGTON TRUST COMPANY
[SEAL]
Attest: /s/ DONALD G. MACKELCAN By: /s/ JAMES P. LAWLER
Donald G. MacKelcan Name: James P. Lawler
Assistant Secretary Title: Vice President
EXHIBIT A
AMENDED CHARTER
Wilmington Trust Company
Wilmington, Delaware
As existing on May 9, 1987
Amended Charter
or
Act of Incorporation
of
Wilmington Trust Company
Wilmington Trust Company, originally incorporated by an Act of the
General Assembly of the State of Delaware, entitled "An Act to Incorporate the
Delaware Guarantee and Trust Company", approved March 2, A.D. 1901, and the name
of which company was changed to "Wilmington Trust Company" by an amendment filed
in the Office of the Secretary of State on March 18, A.D. 1903, and the Charter
or Act of Incorporation of which company has been from time to time amended and
changed by merger agreements pursuant to the corporation law for state banks and
trust companies of the State of Delaware, does hereby alter and amend its
Charter or Act of Incorporation so that the same as so altered and amended shall
in its entirety read as follows:
First: - The name of this corporation is Wilmington Trust Company.
Second: - The location of its principal office in the State of Delaware is
at Rodney Square North, in the City of Wilmington, County of New
Castle; the name of its resident agent is Wilmington Trust Company
whose address is Rodney Square North, in said City. In addition to
such principal office, the said corporation maintains and operates
branch offices in the City of Newark, New Castle County, Delaware,
the Town of Newport, New Castle County, Delaware, at Claymont, New
Castle County, Delaware, at Greenville, New Castle County Delaware,
and at Milford Cross Roads, New Castle County, Delaware, and shall
be empowered to open, maintain and operate branch offices at Ninth
and Shipley Streets, 418 Delaware Avenue, 2120 Market Street, and
3605 Market Street, all in the City of Wilmington, New Castle
County, Delaware, and such other branch offices or places of
business as may be authorized from time to time by the agency or
agencies of the government of the State of Delaware empowered to
confer such authority.
Third:- (a) The nature of the business and the objects and purposes
proposed to be transacted, promoted or carried on by this
Corporation are to do any or all of the things herein mentioned as
fully and to the same extent as natural persons might or could do
and in any part of the world, viz.:
(1) To sue and be sued, complain and defend in any Court of law or equity
and to make and use a common seal, and alter the seal at pleasure, to hold,
purchase, convey, mortgage or otherwise deal in real and personal estate and
property, and to appoint such officers and agents as the business of the
Corporation shall require, to make by-laws not inconsistent with the
Constitution or laws of the United States or of this State, to discount bills,
notes or other evidences of debt, to receive deposits of money, or securities
for money, to buy gold and silver bullion and foreign coins, to buy and sell
bills of exchange, and generally to use, exercise and enjoy all the powers,
rights, privileges and franchises incident to a corporation which are proper or
necessary for the transaction of the business of the Corporation hereby created.
(2) To insure titles to real and personal property, or any estate or
interests therein, and to guarantee the holder of such property, real or
personal, against any claim or claims, adverse to his interest therein, and to
prepare and give certificates of title for any lands or premises in the State of
Delaware, or elsewhere.
(3) To act as factor, agent, broker or attorney in the receipt, collection,
custody, investment and management of funds, and the purchase, sale, management
and disposal of property of all descriptions, and to prepare and execute all
papers which may be necessary or proper in such business.
(4) To prepare and draw agreements, contracts, deeds, leases, conveyances,
mortgages, bonds and legal papers of every description, and to carry on the
business of conveyancing in all its branches.
(5) To receive upon deposit for safekeeping money, jewelry, plate, deeds,
bonds and any and all other personal property of every sort and kind, from
9executors, administrators, guardians, public officers, courts, receivers,
assignees, trustees, and from all fiduciaries, and from all other persons and
individuals, and from all corporations whether state, municipal, corporate or
private, and to rent boxes, safes, vaults and other receptacles for such
property.
(6) To act as agent or otherwise for the purpose of registering, issuing,
certificating, countersigning, transferring or underwriting the stock, bonds or
other obligations of any corporation, association, state or municipality, and
may receive and manage any sinking fund therefor on such terms as may be agreed
upon between the two parties, and in like manner may act as Treasurer of any
corporation or municipality.
(7) To act as Trustee under any deed of trust, mortgage, bond or other
instrument issued by any state, municipality, body politic, corporation,
association or person, either alone or in conjunction with any other person or
persons, corporation or corporations.
(8) To guarantee the validity, performance or effect of any contract or
agreement, and the fidelity of persons holding places of responsibility or
trust; to become surety for any person, or persons, for the faithful performance
of any trust, office, duty, contract or agreement, either by itself or in
conjunction with any other person, or persons, corporation, or corporations, or
in like manner become surety upon any bond, recognizance, obligation, judgment,
suit, order, or decree to be entered in any court of record within the State of
Delaware or elsewhere, or which may now or hereafter be required by any law,
judge, officer or court in the State of Delaware or elsewhere.
(9) To act by any and every method of appointment as trustee, trustee in
bankruptcy, receiver, assignee, assignee in bankruptcy, executor, administrator,
guardian, bailee, or in any other trust capacity in the receiving, holding,
managing, and disposing of any and all estates and property, real, personal or
mixed, and to be appointed as such trustee, trustee in bankruptcy, receiver,
assignee, assignee in bankruptcy, executor, administrator, guardian or bailee by
any persons, corporations, court, officer, 10or authority, in the State of
Delaware or elsewhere; and whenever this Corporation is so appointed by any
person, corporation, court, officer or authority such trustee, trustee in
bankruptcy, receiver, assignee, assignee in bankruptcy, executor, administrator,
guardian, bailee, or in any other trust capacity, it shall not be required to
give bond with surety, but its capital stock shall be taken and held as security
for the performance of the duties devolving upon it by such appointment.
(10) And for its care, management and trouble, and the exercise of any of
its powers hereby given, or for the performance of any of the duties which it
may undertake or be called upon to perform, or for the assumption of any
responsibility the said Corporation may be entitled to receive a proper
compensation.
(11) To purchase, receive, hold and own bonds, mortgages, debentures,
shares of capital stock, and other securities, obligations, contracts and
evidences of indebtedness, of any private, public or municipal corporation
within and without the State of Delaware, or of the Government of the United
States, or of any state, territory, colony, or possession thereof, or of any
foreign government or country; to receive, collect, receipt for, and dispose of
interest, dividends and income upon and from any of the bonds, mortgages,
debentures, notes, shares of capital stock, securities, obligations, contracts,
evidences of indebtedness and other property held and owned by it, and to
exercise in respect of all such bonds, mortgages, debentures, notes, shares of
capital stock, securities, obligations, contracts, evidences of indebtedness and
other property, any and all the rights, powers and privileges of individual
owners thereof, including the right to vote thereon; to invest and deal in and
with any of the moneys of the Corporation upon such securities and in such
manner as it may think fit and proper, and from time to time to vary or realize
such investments; to issue bonds and secure the same by pledges or deeds of
trust or mortgages of or upon the whole or any part of the property held or
owned by the Corporation, and to sell and pledge such bonds, as and when the
Board of Directors shall determine, and in the promotion of its said corporate
business of investment and to the extent authorized by law, to lease, purchase,
hold, 11sell, assign, transfer, pledge, mortgage and convey real and personal
property of any name and nature and any estate or interest therein.
(b) In furtherance of, and not in limitation, of the powers conferred by
the laws of the State of Delaware, it is hereby expressly provided
that the said Corporation shall also have the following powers:
(1) To do any or all of the things herein set forth, to the same extent as
natural persons might or could do, and in any part of the world.
(2) To acquire the good will, rights, property and franchises and to
undertake the whole or any part of the assets and liabilities of any person,
firm, association or corporation, and to pay for the same in cash, stock of this
Corporation, bonds or otherwise; to hold or in any manner to dispose of the
whole or any part of the property so purchased; to conduct in any lawful manner
the whole or any part of any business so acquired, and to exercise all the
powers necessary or convenient in and about the conduct and management of such
business.
(3) To take, hold, own, deal in, mortgage or otherwise lien, and to lease,
sell, exchange, transfer, or in any manner whatever dispose of property, real,
personal or mixed, wherever situated.
(4) To enter into, make, perform and carry out contracts of every kind with
any person, firm, association or corporation, and, without limit as to amount,
to draw, make, accept, endorse, discount, execute and issue promissory notes,
drafts, bills of exchange, warrants, bonds, debentures, and other negotiable or
transferable instruments.
(5) To have one or more offices, to carry on all or any of its operations
and businesses, without restriction to the same extent as natural persons might
or could do, to purchase or otherwise acquire, to hold, own, to mortgage, sell,
convey or otherwise dispose of, real and personal property, of every class and
description, in any State, District, Territory or Colony of the United States,
and in any foreign country or place.
(6) It is the intention that the objects, purposes and powers specified and
clauses contained in this paragraph shall (except where otherwise expressed in
said paragraph) be nowise limited or restricted by reference to or inference
from the terms of any other clause of this or any other paragraph in this
charter, but that the objects, purposes and powers specified in each of the
clauses of this paragraph shall be regarded as independent objects, purposes and
powers.
Fourth: - (a) The total number of shares of all classes of stock which the
Corporation shall have authority to issue is forty-one million (41,000,000)
shares, consisting of:
(1) One million (1,000,000) shares of Preferred stock, par
value $10.00 per share (hereinafter referred to as
"Preferred Stock"); and
(2) Forty million (40,000,000) shares of Common Stock, par
value $1.00 per share (hereinafter referred to as "Common
Stock").
(b) Shares of Preferred Stock may be issued from time to time in one or
more series as may from time to time be determined by the Board of Directors
each of said series to be distinctly designated. All shares of any one series of
Preferred Stock shall be alike in every particular, except that there may be
different dates from which dividends, if any, thereon shall be cumulative, if
made cumulative. The voting powers and the preferences and relative,
participating, optional and other special rights of each such series, and the
qualifications, limitations or restrictions thereof, if any, may differ from
those of any and all other series at any time outstanding; and, subject to the
provisions of subparagraph 1 of Paragraph (c) of this Article Fourth, the Board
of Directors of the Corporation is hereby expressly granted authority to fix by
resolution or resolutions adopted prior to the issuance of any shares of a
particular series of Preferred Stock, the voting powers and the designations,
preferences and relative, optional and other special rights, and the
qualifications, limitations and restrictions of such series, including, but
without limiting the generality of the foregoing, the following:
(1) The distinctive designation of, and the number of shares of Preferred
Stock which shall constitute such series, which number may be increased (except
where 13otherwise provided by the Board of Directors) or decreased (but not
below the number of shares thereof then outstanding) from time to time by like
action of the Board of Directors;
(2) The rate and times at which, and the terms and conditions on which,
dividends, if any, on Preferred Stock of such series shall be paid, the extent
of the preference or relation, if any, of such dividends to the dividends
payable on any other class or classes, or series of the same or other class of
stock and whether such dividends shall be cumulative or non-cumulative;
(3) The right, if any, of the holders of Preferred Stock of such series to
convert the same into or exchange the same for, shares of any other class or
classes or of any series of the same or any other class or classes of stock of
the Corporation and the terms and conditions of such conversion or exchange;
(4) Whether or not Preferred Stock of such series shall be subject to
redemption, and the redemption price or prices and the time or times at which,
and the terms and conditions on which, Preferred Stock of such series may be
redeemed.
(5) The rights, if any, of the holders of Preferred Stock of such series
upon the voluntary or involuntary liquidation, merger, consolidation,
distribution or sale of assets, dissolution or winding-up, of the Corporation.
(6) The terms of the sinking fund or redemption or purchase account, if
any, to be provided for the Preferred Stock of such series; and
(7) The voting powers, if any, of the holders of such series of Preferred
Stock which may, without limiting the generality of the foregoing include the
right, voting as a series or by itself or together with other series of
Preferred Stock or all series of Preferred Stock as a class, to elect one or
more directors of the Corporation if there shall have been a default in the
payment of dividends on any one or more series of Preferred Stock or under such
circumstances and on such conditions as the Board of Directors may determine. 14
(c) (1) After the requirements with respect to preferential dividends on
the Preferred Stock (fixed in accordance with the provisions of section (b) of
this Article Fourth), if any, shall have been met and after the Corporation
shall have complied with all the requirements, if any, with respect to the
setting aside of sums as sinking funds or redemption or purchase accounts (fixed
in accordance with the provisions of section (b) of this Article Fourth), and
subject further to any conditions which may be fixed in accordance with the
provisions of section (b) of this Article Fourth, then and not otherwise the
holders of Common Stock shall be entitled to receive such dividends as may be
declared from time to time by the Board of Directors.
(2) After distribution in full of the preferential amount, if any, (fixed
in accordance with the provisions of section (b) of this Article Fourth), to be
distributed to the holders of Preferred Stock in the event of voluntary or
involuntary liquidation, distribution or sale of assets, dissolution or winding-
up, of the Corporation, the holders of the Common Stock shall be entitled to
receive all of the remaining assets of the Corporation, tangible and intangible,
of whatever kind available for distribution to stockholders ratably in
proportion to the number of shares of Common Stock held by them respectively.
(3) Except as may otherwise be required by law or by the provisions of such
resolution or resolutions as may be adopted by the Board of Directors pursuant
to section (b) of this Article Fourth, each holder of Common Stock shall have
one vote in respect of each share of Common Stock held on all matters voted upon
by the stockholders.
(d) No holder of any of the shares of any class or series of stock or of
options, warrants or other rights to purchase shares of any class or series of
stock or of other securities of the Corporation shall have any preemptive right
to purchase or subscribe for any unissued stock of any class or series or any
additional shares of any class or series to be issued by reason of any increase
of the authorized capital stock of the Corporation of any class or series, or
bonds, certificates of indebtedness, debentures or other securities convertible
into or 15exchangeable for stock of the Corporation of any class or series, or
carrying any right to purchase stock of any class or series, but any such
unissued stock, additional authorized issue of shares of any class or series of
stock or securities convertible into or exchangeable for stock, or carrying any
right to purchase stock, may be issued and disposed of pursuant to resolution of
the Board of Directors to such persons, firms, corporations or associations,
whether such holders or others, and upon such terms as may be deemed advisable
by the Board of Directors in the exercise of its sole discretion.
(e) The relative powers, preferences and rights of each series of Preferred
Stock in relation to the relative powers, preferences and rights of each other
series of Preferred Stock shall, in each case, be as fixed from time to time by
the Board of Directors in the resolution or resolutions adopted pursuant to
authority granted in section (b) of this Article Fourth and the consent, by
class or series vote or otherwise, of the holders of such of the series of
Preferred Stock as are from time to time outstanding shall not be required for
the issuance by the Board of Directors of any other series of Preferred Stock
whether or not the powers, preferences and rights of such other series shall be
fixed by the Board of Directors as senior to, or on a parity with, the powers,
preferences and rights of such outstanding series, or any of them; provided,
however, that the Board of Directors may provide in the resolution or
resolutions as to any series of Preferred Stock adopted pursuant to section (b)
of this Article Fourth that the consent of the holders of a majority (or such
greater proportion as shall be therein fixed) of the outstanding shares of such
series voting thereon shall be required for the issuance of any or all other
series of Preferred Stock.
(f) Subject to the provisions of section (e), shares of any series of
Preferred Stock may be issued from time to time as the Board of Directors of the
Corporation shall determine and on such terms and for such consideration as
shall be fixed by the Board of Directors.
(g) Shares of Common Stock may be issued from time to time as the Board of
Directors of the Corporation shall determine and on such terms and for such
consideration as shall be fixed by the Board of Directors.
(h) The authorized amount of shares of Common Stock and of Preferred Stock
may, without a class or series vote, be increased or decreased from time to time
by the affirmative vote of the holders of a majority of the stock of the
Corporation entitled to vote thereon.
Fifth:- (a) The business and affairs of the Corporation shall be
conducted and managed by a Board of Directors. The number of
directors constituting the entire Board shall be not less than five
nor more than twenty-five as fixed from time to time by vote of a
majority of the whole Board, provided, however, that the number of
directors shall not be reduced so as to shorten the term of any
director at the time in office, and provided further, that the
number of directors constituting the whole Board shall be
twenty-four until otherwise fixed by a majority of the whole Board.
(b) The Board of Directors shall be divided into three classes, as nearly
equal in number as the then total number of directors constituting the whole
Board permits, with the term of office of one class expiring each year. At the
annual meeting of stockholders in 1982, directors of the first class shall be
elected to hold office for a term expiring at the next succeeding annual
meeting, directors of the second class shall be elected to hold office for a
term expiring at the second succeeding annual meeting and directors of the third
class shall be elected to hold office for a term expiring at the third
succeeding annual meeting. Any vacancies in the Board of Directors for any
reason, and any newly created directorships resulting from any increase in the
directors, may be filled by the Board of Directors, acting by a majority of the
directors then in office, although less than a quorum, and any directors so
chosen shall hold office until the next annual election of directors. At such
election, the stockholders shall elect a successor to such director to hold
office until the next election of the class for which such director shall have
been chosen and until his successor shall be elected and qualified. No decrease
in the number of directors shall shorten the term of any incumbent director.
(c) Notwithstanding any other provisions of this Charter or Act of
Incorporation or the By-Laws of the Corporation (and notwithstanding the fact
that some lesser percentage may be specified by law, this Charter or Act of
Incorporation or the By- 17 Laws of the Corporation), any director or the entire
Board of Directors of the Corporation may be removed at any time without cause,
but only by the affirmative vote of the holders of two-thirds or more of the
outstanding shares of capital stock of the Corporation entitled to vote
generally in the election of directors (considered for this purpose as one
class) cast at a meeting of the stockholders called for that purpose.
(d) Nominations for the election of directors may be made by the Board of
Directors or by any stockholder entitled to vote for the election of directors.
Such nominations shall be made by notice in writing, delivered or mailed by
first class United States mail, postage prepaid, to the Secretary of the
Corporation not less than 14 days nor more than 50 days prior to any meeting of
the stockholders called for the election of directors; provided, however, that
if less than 21 days' notice of the meeting is given to stockholders, such
written notice shall be delivered or mailed, as prescribed, to the Secretary of
the Corporation not later than the close of the seventh day following the day on
which notice of the meeting was mailed to stockholders. Notice of nominations
which are proposed by the Board of Directors shall be given by the Chairman on
behalf of the Board.
(e) Each notice under subsection (d) shall set forth (i) the name, age,
business address and, if known, residence address of each nominee proposed in
such notice, (ii) the principal occupation or employment of such nominee and
(iii) the number of shares of stock of the Corporation which are beneficially
owned by each such nominee.
(f) The Chairman of the meeting may, if the facts warrant, determine and
declare to the meeting that a nomination was not made in accordance with the
foregoing procedure, and if he should so determine, he shall so declare to the
meeting and the defective nomination shall be disregarded.
(g) No action required to be taken or which may be taken at any annual or
special meeting of stockholders of the Corporation may be taken without a
meeting, and the power of stockholders to consent in writing, without a meeting,
to the taking of any action is specifically denied.
Sixth: - The Directors shall choose such officers, agent and servants as
may be provided in the By-Laws as they may from time to time find necessary or
proper.
Seventh: - The Corporation hereby created is hereby given the same powers,
rights and privileges as may be conferred upon corporations
organized under the Act entitled "An Act Providing a General
Corporation Law", approved March 10, 1899, as from time to time
amended.
Eighth: - This Act shall be deemed and taken to be a private Act.
Ninth: - This Corporation is to have perpetual existence.
Tenth:- The Board of Directors, by resolution passed by a majority of the
whole Board, may designate any of their number to constitute an
Executive Committee, which Committee, to the extent provided in said
resolution, or in the By-Laws of the Company, shall have and may
exercise all of the powers of the Board of Directors in the
management of the business and affairs of the Corporation, and shall
have power to authorize the seal of the Corporation to be affixed to
all papers which may require it.
Eleventh: - The private property of the stockholders shall not be liable
for the payment of corporate debts to any extent whatever.
Twelfth: - The Corporation may transact business in any part of the world.
Thirteenth: - The Board of Directors of the Corporation is expressly
authorized to make, alter or repeal the By-Laws of the Corporation
by a vote of the majority of the entire Board. The stockholders may
make, alter or repeal any By-Law whether or not adopted by them,
provided however, that any such additional By-Laws, alterations or
repeal may be adopted only by the affirmative vote of the holders of
two-thirds or more of the outstanding shares of capital stock of the
Corporation entitled to vote generally in the election of directors
(considered for this purpose as one class).
Fourteenth: - Meetings of the Directors may be held outside of the State of
Delaware at such places as may be from time to time designated by the Board, and
the Directors may keep the books of the Company outside of the State of Delaware
at such places as may be from time to time designated by them. 19
Fifteenth: - (a) (1) In addition to any affirmative vote required by law,
and except as otherwise expressly provided in sections (b) and (c) of this
Article Fifteenth:
(A) any merger or consolidation of the Corporation or any Subsidiary (as
hereinafter defined) with or into (i) any Interested Stockholder (as hereinafter
defined) or (ii) any other corporation (whether or not itself an Interested
Stockholder), which, after such merger or consolidation, would be an Affiliate
(as hereinafter defined) of an Interested Stockholder, or
(B) any sale, lease, exchange, mortgage, pledge, transfer or other
disposition (in one transaction or a series of related transactions) to or with
any Interested Stockholder or any Affiliate of any Interested Stockholder of any
assets of the Corporation or any Subsidiary having an aggregate fair market
value of $1,000,000 or more, or
(C) the issuance or transfer by the Corporation or any Subsidiary (in one
transaction or a series of related transactions) of any securities of the
Corporation or any Subsidiary to any Interested Stockholder or any Affiliate of
any Interested Stockholder in exchange for cash, securities or other property
(or a combination thereof) having an aggregate fair market value of $1,000,000
or more, or
(D) the adoption of any plan or proposal for the liquidation or dissolution
of the Corporation, or
(E) any reclassification of securities (including any reverse stock split),
or recapitalization of the Corporation, or any merger or consolidation of the
Corporation with any of its Subsidiaries or any similar transaction (whether or
not with or into or otherwise involving an Interested Stockholder) which has the
effect, directly or indirectly, of increasing the proportionate share of the
outstanding shares of any class of equity or convertible securities of the
Corporation or any Subsidiary which is directly or indirectly owned by any
Interested Stockholder, or any Affiliate of any Interested Stockholder,
shall require the affirmative vote of the holders of at least two-thirds of the
outstanding shares of capital stock of the Corporation entitled to vote
generally in the election of directors, considered for the purpose of this
Article Fifteenth as one class ("Voting Shares"). Such affirmative vote shall be
required notwithstanding the fact that no vote may be required, or that some
lesser percentage may be specified, by law or in any agreement with any national
securities exchange or otherwise.
(2) The term "business combination" as used in this Article Fifteenth shall
mean any transaction which is referred to any one or more of clauses (A) through
(E) of paragraph 1 of the section (a).
(b) The provisions of section (a) of this Article Fifteenth shall not be
applicable to any particular business combination and such business combination
shall require only such affirmative vote as is required by law and any other
provisions of the Charter or Act of Incorporation of By-Laws if such business
combination has been approved by a majority of the whole Board.
(c) For the purposes of this Article Fifteenth:
(1) A "person" shall mean any individual firm, corporation or other entity.
(2) "Interested Stockholder" shall mean, in respect of any business
combination, any person (other than the Corporation or any
Subsidiary) who or which as of the record date for the determination
of stockholders entitled to notice of and to vote on such business
combination, or immediately prior to the consummation of any such
transaction:
(A) is the beneficial owner, directly or indirectly, of more than 10% of
the Voting Shares, or
(B) is an Affiliate of the Corporation and at any time within two years
prior thereto was the beneficial owner, directly or indirectly, of not less than
10% of the then outstanding voting Shares, or
(C) is an assignee of or has otherwise succeeded in any share of capital
stock of the Corporation which 21were at any time within two years prior thereto
beneficially owned by any Interested Stockholder, and such assignment or
succession shall have occurred in the course of a transaction or series of
transactions not involving a public offering within the meaning of the
Securities Act of 1933.
(3) A person shall be the "beneficial owner" of any Voting Shares:
(A) which such person or any of its Affiliates and Associates (as hereafter
defined) beneficially own, directly or indirectly, or
(B) which such person or any of its Affiliates or Associates has (i) the
right to acquire (whether such right is exercisable immediately or only after
the passage of time), pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights, warrants or options, or
otherwise, or (ii) the right to vote pursuant to any agreement, arrangement or
understanding, or
(C) which are beneficially owned, directly or indirectly, by any other
person with which such first mentioned person or any of its Affiliates or
Associates has any agreement, arrangement or understanding for the purpose of
acquiring, holding, voting or disposing of any shares of capital stock of the
Corporation.
(4) The outstanding Voting Shares shall include shares deemed owned through
application of paragraph (3) above but shall not include any other Voting Shares
which may be issuable pursuant to any agreement, or upon exercise of conversion
rights, warrants or options or otherwise.
(5) "Affiliate" and "Associate" shall have the respective meanings given
those terms in Rule 12b-2 of the General Rules and Regulations under the
Securities Exchange Act of 1934, as in effect on December 31, 1981.
(6) "Subsidiary" shall mean any corporation of which a majority of any
class of equity security (as defined in Rule 3a11-1 of the General Rules and
Regulations under the Securities Exchange Act of 1934, as in effect in December
31, 1981) is owned, directly or indirectly, by the 22Corporation; provided,
however, that for the purposes of the definition of Investment Stockholder set
forth in paragraph (2) of this section (c), the term "Subsidiary" shall mean
only a corporation of which a majority of each class of equity security is
owned, directly or indirectly, by the Corporation.
(d) majority of the directors shall have the power and duty to determine
for the purposes of this Article Fifteenth on the basis of information known to
them, (1) the number of Voting Shares beneficially owned by any person (2)
whether a person is an Affiliate or Associate of another, (3) whether a person
has an agreement, arrangement or understanding with another as to the matters
referred to in paragraph (3) of section (c), or (4) whether the assets subject
to any business combination or the consideration received for the issuance or
transfer of securities by the Corporation, or any Subsidiary has an aggregate
fair market value of $1,000,000 or more.
(e) Nothing contained in this Article Fifteenth shall be construed to
relieve any Interested Stockholder from any fiduciary obligation imposed by law.
Sixteenth: Notwithstanding any other provision of this Charter or Act of
Incorporation or the By-Laws of the Corporation (and in addition to
any other vote that may be required by law, this Charter or Act of
Incorporation by the By-Laws), the affirmative vote of the holders
of at least two-thirds of the outstanding shares of the capital
stock of the Corporation entitled to vote generally in the election
of directors (considered for this purpose as one class) shall be
required to amend, alter or repeal any provision of Articles Fifth,
Thirteenth, Fifteenth or Sixteenth of this Charter or Act of
Incorporation.
Seventeenth: (a) a Director of this Corporation shall not be liable to the
Corporation or its stockholders for monetary damages for breach of fiduciary
duty as a Director, except to the extent such exemption from liability or
limitation thereof is not permitted under the Delaware General Corporation Laws
as the same exists or may hereafter be amended.
(b) Any repeal or modification of the foregoing paragraph shall not
adversely affect any right or 23protection of a Director of the Corporation
existing hereunder with respect to any act or omission occurring prior to the
time of such repeal or modification."
EXHIBIT B
BY-LAWS
WILMINGTON TRUST COMPANY
WILMINGTON, DELAWARE
As existing on January 16, 1997
BY-LAWS OF WILMINGTON TRUST COMPANY
ARTICLE I
Stockholders' Meetings
Section 1. The Annual Meeting of Stockholders shall be held on the
third Thursday in April each year at the principal office at the Company or at
such other date, time, or place as may be designated by resolution by the Board
of Directors.
Section 2. Special meetings of all stockholders may be called at any
time by the Board of Directors, the Chairman of the Board or the President.
Section 3. Notice of all meetings of the stockholders shall be given by
mailing to each stockholder at least ten (10) days before said meeting, at his
last known address, a written or printed notice fixing the time and place of
such meeting.
Section 4. A majority in the amount of the capital stock of the Company
issued and outstanding on the record date, as herein determined, shall
constitute a quorum at all meetings of stockholders for the transaction of any
business, but the holders of a small number of shares may adjourn, from time to
time, without further notice, until a quorum is secured. At each annual or
special meeting of stockholders, each stockholder shall be entitled to one vote,
either in person or by proxy, for each shares of stock registered in the
stockholder's name on the books of the Company on the record date for any such
meeting as determined herein.
ARTICLE II
Directors
Section 1. The number and classification of the Board of Directors
shall be as set forth in the Charter of the Bank.
Section 2. No person who has attained the age of seventy-two (72) years
shall be nominated for election to the Board of Directors of the Company,
provided, however, that this limitation shall not apply to any person who was
serving as director of the Company on September 16, 1971.
Section 3. The class of Directors so elected shall hold office for
three years or until their successors are elected and qualified.
Section 4. The affairs and business of the Company shall be managed and
conducted by the Board of Directors.
Section 5. The Board of Directors shall meet at the principal office of
the Company or elsewhere in its discretion at such times to be determined by a
majority of its members, or at the call of the Chairman of the Board of
Directors or the President.
Section 6. Special meetings of the Board of Directors may be called at
any time by the Chairman of the Board of Directors or by the President, and
shall be called upon the written request of a majority of the directors.
Section 7. A majority of the directors elected and qualified shall be
necessary to constitute a quorum for the transaction of business at any meeting
of the Board of Directors.
Section 8. Written notice shall be sent by mail to each director of any
special meeting of the Board of Directors, and of any change in the time or
place of any regular meeting, stating the time and place of such meeting, which
shall be mailed not less than two days before the time of holding such meeting.
Section 9. In the event of the death, resignation, removal, inability
to act, or disqualification of any director, the Board of Directors, although
less than a quorum, shall have the right to elect the successor who shall hold
office for the remainder of the full term of the class of directors in which the
vacancy occurred, and until such director's successor shall have been duly
elected and qualified.
Section 10. The Board of Directors at its first meeting after its
election by the stockholders shall appoint an Executive Committee, a Trust
Committee, an Audit Committee and a Compensation Committee, and shall elect from
its own members a Chairman of the Board of Directors and a President who may be
the same person. The Board of Directors shall also elect at such meeting a
Secretary and a Treasurer, who may be the same person, may appoint at any time
such other committees and elect or appoint such other officers as it may deem
advisable. The Board of Directors may also elect at such meeting one or more
Associate Directors.
Section 11. The Board of Directors may at any time remove, with or
without cause, any member of any Committee appointed by it or any associate
director or officer elected by it and may appoint or elect his successor.
Section 12. The Board of Directors may designate an officer to be in
charge of such of the departments or division of the Company as it may deem
advisable.
ARTICLE III
Committees
Section 1. Executive Committee
(A) The Executive Committee shall be composed of not more than nine members
who shall be selected by the Board of Directors from its own members and who
shall hold office during the pleasure of the Board.
(B) The Executive Committee shall have all the powers of the Board of
Directors when it is not in session to transact all business for and in behalf
of the Company that may be brought before it.
(C) The Executive Committee shall meet at the principal office of the
Company or elsewhere in its discretion at such times to be determined by a
majority of its members, or at the call of the Chairman of the Executive
Committee or at the call of the Chairman of the Board of Directors. The majority
of its members shall be necessary to constitute a quorum for the transaction of
business. Special meetings of the Executive Committee may be held at any time
when a quorum is present.
(D) Minutes of each meeting of the Executive Committee shall be kept and
submitted to the Board of Directors at its next meeting.
(E) The Executive Committee shall advise and superintend all investments
that may be made of the funds of the Company, and shall direct the disposal of
the same, in accordance with such rules and regulations as the Board of
Directors from time to time make.
(F) In the event of a state of disaster of sufficient severity to prevent
the conduct and management of the affairs and business of the Company by its
directors and officers as contemplated by these By-Laws any two available
members of the Executive Committee as constituted immediately prior to such
disaster shall constitute a quorum of that Committee for the full conduct and
management of the affairs and business of the Company in accordance with the
provisions of Article III of these By-Laws; and if less than three members of
the Trust Committee is constituted immediately prior to such disaster shall be
available for the transaction of its business, such Executive Committee shall
also be empowered to exercise all of the powers reserved to the Trust Committee
under Article III Section 2 hereof. In the event of the unavailability, at such
time, of a minimum of two 29members of such Executive Committee, any three
available directors shall constitute the Executive Committee for the full
conduct and management of the affairs and business of the Company in accordance
with the foregoing provisions of this Section. This By-Law shall be subject to
implementation by Resolutions of the Board of Directors presently existing or
hereafter passed from time to time for that purpose, and any provisions of these
By-Laws (other than this Section) and any resolutions which are contrary to the
provisions of this Section or to the provisions of any such implementary
Resolutions shall be suspended during such a disaster period until it shall be
determined by any interim Executive Committee acting under this section that it
shall be to the advantage of the Company to resume the conduct and management of
its affairs and business under all of the other provisions of these By-Laws.
Section 2. Trust Committee
(A) The Trust Committee shall be composed of not more than thirteen members
who shall be selected by the Board of Directors, a majority of whom shall be
members of the Board of Directors and who shall hold office during the pleasure
of the Board.
(B) The Trust Committee shall have general supervision over the Trust
Department and the investment of trust funds, in all matters, however, being
subject to the approval of the Board of Directors.
(C) The Trust Committee shall meet at the principal office of the Company
or elsewhere in its discretion at such times to be determined by a majority of
its members or at the call of its chairman. A majority of its members shall be
necessary to constitute a quorum for the transaction of business.
(D) Minutes of each meeting of the Trust Committee shall be kept and
promptly submitted to the Board of Directors.
(E) The Trust Committee shall have the power to appoint Committees and/or
designate officers or employees of the Company to whom supervision over the
investment of trust funds may be delegated when the Trust Committee is not in
session.
Section 3. Audit Committee
(A) The Audit Committee shall be composed of five members who shall be
selected by the Board of Directors from its own 30members, none of whom shall be
an officer of the Company, and shall hold office at the pleasure of the Board.
(B) The Audit Committee shall have general supervision over the Audit
Division in all matters however subject to the approval of the Board of
Directors; it shall consider all matters brought to its attention by the officer
in charge of the Audit Division, review all reports of examination of the
Company made by any governmental agency or such independent auditor employed for
that purpose, and make such recommendations to the Board of Directors with
respect thereto or with respect to any other matters pertaining to auditing the
Company as it shall deem desirable.
(C) The Audit Committee shall meet whenever and wherever the majority of
its members shall deem it to be proper for the transaction of its business, and
a majority of its Committee shall constitute a quorum.
Section 4. Compensation Committee
(A) The Compensation Committee shall be composed of not more than five (5)
members who shall be selected by the Board of Directors from its own members who
are not officers of the Company and who shall hold office during the pleasure of
the Board.
(B) The Compensation Committee shall in general advise upon all matters of
policy concerning the Company brought to its attention by the management and
from time to time review the management of the Company, major organizational
matters, including salaries and employee benefits and specifically shall
administer the Executive Incentive Compensation Plan.
(C) Meetings of the Compensation Committee may be called at any time by the
Chairman of the Compensation Committee, the Chairman of the Board of Directors,
or the President of the Company.
Section 5. Associate Directors
(A) Any person who has served as a director may be elected by the Board of
Directors as an associate director, to serve during the pleasure of the Board.
(B) An associate director shall be entitled to attend all directors
meetings and participate in the discussion of all matters brought to the Board,
with the exception that he would 31have no right to vote. An associate director
will be eligible for appointment to Committees of the Company, with the
exception of the Executive Committee, Audit Committee and Compensation
Committee, which must be comprised solely of active directors.
Section 6. Absence or Disqualification of Any Member of a Committee
(A) In the absence or disqualification of any member of any Committee
created under Article III of the By-Laws of this Company, the member or members
thereof present at any meeting and not disqualified from voting, whether or not
he or they constitute a quorum, may unanimously appoint another member of the
Board of Directors to act at the meeting in the place of any such absence or
disqualified member.
ARTICLE IV
Officers
Section 1. The Chairman of the Board of Directors shall preside at all
meetings of the Board and shall have such further authority and powers and shall
perform such duties as the Board of Directors may from time to time confer and
direct. He shall also exercise such powers and perform such duties as may from
time to time be agreed upon between himself and the President of the Company.
Section 2. The Vice Chairman of the Board. The Vice Chairman of the
Board of Directors shall preside at all meetings of the Board of Directors at
which the Chairman of the Board shall not be present and shall have such further
authority and powers and shall perform such duties as the Board of Directors or
the Chairman of the Board may from time to time confer and direct.
Section 3. The President shall have the powers and duties pertaining to
the office of the President conferred or imposed upon him by statute or assigned
to him by the Board of Directors in the absence of the Chairman of the Board the
President shall have the powers and duties of the Chairman of the Board.
Section 4. The Chairman of the Board of Directors or the President as
designated by the Board of Directors, shall carry into effect all legal
directions of the Executive Committee and of the Board of Directors, and shall
at all times exercise general supervision over the interest, affairs and
operations of the Company and perform all duties incident to his office.
Section 5. There may be one or more Vice Presidents, however
denominated by the Board of Directors, who may at any time perform all the
duties of the Chairman of the Board of Directors and/or the President and such
other powers and duties as may from time to time be assigned to them by the
Board of Directors, the Executive Committee, the Chairman of the Board or the
President and by the officer in charge of the department or division to which
they are assigned.
Section 6. The Secretary shall attend to the giving of notice of
meetings of the stockholders and the Board of Directors, as well as the
Committees thereof, to the keeping of accurate minutes of all such meetings and
to recording the same in the minute books of the Company. In addition to the
other notice requirements of these By-Laws and as may be practicable under the
circumstances, all such notices shall be in writing and mailed well in advance
of the scheduled date of any other meeting. He shall have custody of the
corporate seal and shall affix the same to any documents requiring such
corporate seal and to attest the same.
Section 7. The Treasurer shall have general supervision over all assets
and liabilities of the Company. He shall be custodian of and responsible for all
monies, funds and valuables of the Company and for the keeping of proper records
of the evidence of property or indebtedness and of all the transactions of the
Company. He shall have general supervision of the expenditures of the Company
and shall report to the Board of Directors at each regular meeting of the
condition of the Company, and perform such other duties as may be assigned to
him from time to time by the Board of Directors of the Executive Committee.
Section 8. There may be a Controller who shall exercise general
supervision over the internal operations of the Company, including accounting,
and shall render to the Board of Directors at appropriate times a report
relating to the general condition and internal operations of the Company.
There may be one or more subordinate accounting or controller officers
however denominated, who may perform the duties of the Controller and such
duties as may be prescribed by the Controller.
Section 9. The officer designated by the Board of Directors to be in
charge of the Audit Division of the Company with such title as the Board of
Directors shall prescribe, shall report to and be directly responsible only to
the Board of Directors. 33
There shall be an Auditor and there may be one or more Audit Officers,
however denominated, who may perform all the duties of the Auditor and such
duties as may be prescribed by the officer in charge of the Audit Division.
Section 10. There may be one or more officers, subordinate in rank to
all Vice Presidents with such functional titles as shall be determined from time
to time by the Board of Directors, who shall ex officio hold the office
Assistant Secretary of this Company and who may perform such duties as may be
prescribed by the officer in charge of the department or division to whom they
are assigned.
Section 11. The powers and duties of all other officers of the Company
shall be those usually pertaining to their respective offices, subject to the
direction of the Board of Directors, the Executive Committee, Chairman of the
Board of Directors or the President and the officer in charge of the department
or division to which they are assigned.
ARTICLE V
Stock and Stock Certificates
Section 1. Shares of stock shall be transferrable on the books of the
Company and a transfer book shall be kept in which all transfers of stock shall
be recorded.
Section 2. Certificate of stock shall bear the signature of the
President or any Vice President, however denominated by the Board of Directors
and countersigned by the Secretary or Treasurer or an Assistant Secretary, and
the seal of the corporation shall be engraved thereon. Each certificate shall
recite that the stock represented thereby is transferrable only upon the books
of the Company by the holder thereof or his attorney, upon surrender of the
certificate properly endorsed. Any certificate of stock surrendered to the
Company shall be cancelled at the time of transfer, and before a new certificate
or certificates shall be issued in lieu thereof. Duplicate certificates of stock
shall be issued only upon giving such security as may be satisfactory to the
Board of Directors or the Executive Committee.
Section 3. The Board of Directors of the Company is authorized to fix
in advance a record date for the determination of the stockholders entitled to
notice of, and to vote at, any meeting of stockholders and any adjournment
thereof, or entitled 34to receive payment of any dividend, or to any allotment
or rights, or to exercise any rights in respect of any change, conversion or
exchange of capital stock, or in connection with obtaining the consent of
stockholders for any purpose, which record date shall not be more than 60 nor
less than 10 days proceeding the date of any meeting of stockholders or the date
for the payment of any dividend, or the date for the allotment of rights, or the
date when any change or conversion or exchange of capital stock shall go into
effect, or a date in connection with obtaining such consent.
ARTICLE VI
Seal
Section 1. The corporate seal of the Company shall be in the following
form:
Between two concentric circles the words "Wilmington Trust Company" within
the inner circle the words "Wilmington, Delaware."
ARTICLE VII
Fiscal Year
Section 1. The fiscal year of the Company shall be the calendar year.
ARTICLE VIII
Execution of Instruments of the Company
Section 1. The Chairman of the Board, the President or any Vice President,
however denominated by the Board of Directors, shall have full power and
authority to enter into, make, sign, execute, acknowledge and/or deliver and the
Secretary or any Assistant Secretary shall have full power and authority to
attest and affix the corporate seal of the Company to any and all deeds,
conveyances, assignments, releases, contracts, agreements, bonds, notes,
mortgages and all other instruments incident to the business of this Company or
in acting as executor, administrator, guardian, trustee, agent or in any other
fiduciary or representative capacity by any and every method of appointment or
by whatever person, corporation, court officer or authority in the State of
Delaware, or elsewhere, without any specific authority, ratification, approval
or confirmation by the Board of Directors or the Executive Committee, and any
and all such instruments shall have the same force and validity as though
expressly authorized by the Board of Directors and/or the Executive Committee.
ARTICLE IX
Compensation of Directors and Members of Committees
Section 1. Directors and associate directors of the Company, other than
salaried officers of the Company, shall be paid such reasonable honoraria or
fees for attending meetings of the Board of Directors as the Board of Directors
may from time to time determine. Directors and associate directors who serve as
members of committees, other than salaried employees of the Company, shall be
paid such reasonable honoraria or fees for services as members of committees as
the Board of Directors shall from time to time determine and directors and
associate directors may be employed by the Company for such special services as
the Board of Directors may from time to time determine and shall be paid for
such special services so performed reasonable compensation as may be determined
by the Board of Directors.
ARTICLE X
Indemnification
Section 1. (A) The Corporation shall indemnify and hold harmless, to the
fullest extent permitted by applicable law as it presently exists or may
hereafter be amended, any person who was 36or is made or is threatened to be
made a party or is otherwise involved in any action, suit or proceeding, whether
civil, criminal, administrative or investigative (a "proceeding") by reason of
the fact that he, or a person for whom he is the legal representative, is or was
a director, officer, employee or agent of the Corporation or is or was serving
at the request of the Corporation as a director, officer, employee, fiduciary or
agent of another corporation or of a partnership, joint venture, trust,
enterprise or non-profit entity, including service with respect to employee
benefit plans, against all liability and loss suffered and expenses reasonably
incurred by such person. The Corporation shall indemnify a person in connection
with a proceeding initiated by such person only if the proceeding was authorized
by the Board of Directors of the Corporation.
(B) The Corporation shall pay the expenses incurred in defending any
proceeding in advance of its final disposition, provided, however, that the
payment of expenses incurred by a Director officer in his capacity as a Director
or officer in advance of the final disposition of the proceeding shall be made
only upon receipt of an undertaking by the Director or officer to repay all
amounts advanced if it should be ultimately determined that the Director or
officer is not entitled to be indemnified under this Article or otherwise.
(C) If a claim for indemnification or payment of expenses, under this
Article X is not paid in full within ninety days after a written claim therefor
has been received by the Corporation the claimant may file suit to recover the
unpaid amount of such claim and, if successful in whole or in part, shall be
entitled to be paid the expense of prosecuting such claim. In any such action
the Corporation shall have the burden of proving that the claimant was not
entitled to the requested indemnification of payment of expenses under
applicable law.
(D) The rights conferred on any person by this Article X shall not be
exclusive of any other rights which such person may have or hereafter acquire
under any statute, provision of the Charter or Act of Incorporation, these
By-Laws, agreement, vote of stockholders or disinterested Directors or
otherwise.
(E) Any repeal or modification of the foregoing provisions of this Article
X shall not adversely affect any right or protection hereunder of any person in
respect of any act or omission occurring prior to the time of such repeal or
modification.
ARTICLE XI
Amendments to the By-Laws
Section 1. These By-Laws may be altered, amended or repealed, in whole or
in part, and any new By-Law or By-Laws adopted at any regular or special meeting
of the Board of Directors by a vote of the majority of all the members of the
Board of Directors then in office.
EXHIBIT C
Section 321(b) Consent
Pursuant to Section 321(b) of the Trust Indenture Act of 1939, as amended,
Wilmington Trust Company hereby consents that reports of examinations by
Federal, State, Territorial or District authorities may be furnished by such
authorities to the Securities and Exchange Commission upon requests therefor.
WILMINGTON TRUST COMPANY
Dated: June 15, 1999 By: /s/ JAMES P. LAWLER
--------------------------------------
Name: James P. Lawler
Title: Vice President
EXHIBIT D
NOTICE
This form is intended to assist state nonmember banks and savings banks with
state publication requirements. It has not been approved by any state banking
authorities. Refer to your appropriate state banking authorities for your state
publication requirements.
R E P O R T O F C O N D I T I O N
Consolidating domestic subsidiaries of the
WILMINGTON TRUST COMPANY of WILMINGTON
- --------------------------------------------------------- -----------------
Name of Bank City
in the State of DELAWARE , at the close of business on March 31, 1999.
-------------
ASSETS
Thousands of dollars
Cash and balances due from depository institutions:
Noninterest-bearing balances and currency and coins...........196,035
Interest-bearing balances......................................... 0
Held-to-maturity securities............................................ 44,909
Available-for-sale securities........................................1,396,028
Federal funds sold and securities purchased under agreements to resell.127,340
Loans and lease financing receivables:
Loans and leases, net of unearned income. . . . . . . 4,176,290
LESS: Allowance for loan and lease losses. . . . . . 68,543
LESS: Allocated transfer risk reserve. . . . . . . . 0
Loans and leases, net of unearned income, allowance, and reserve.....4,107,747
Assets held in trading accounts..............................................0
Premises and fixed assets (including capitalized leases)...............139,843
Other real estate owned................................................. 1,055
Investments in unconsolidated subsidiaries and associated companies..... 1,225
Customers' liability to this bank on acceptances outstanding................ 0
Intangible assets....................................................... 5,265
Other assets........................................................... 99,075
Total assets.........................................................6,118,520
LIABILITIES
Deposits:
In domestic offices.................................................4,332,124
Noninterest-bearing . . . . . . . . 959,777
Interest-bearing. . . . . . . . . . 3,372,347
Federal funds purchased and Securities sold under agreements
to repurchase.................................................... 432,395
Demand notes issued to the U.S. Treasury...............................28,906
Trading liabilities (from Schedule RC-D)....................................0
Other borrowed money:.................................................///////
With original maturity of one year or less......715,000
With original maturity of more than one year.... 43,000
Bank's liability on acceptances executed and outstanding................... 0
Subordinated notes and debentures.......................................... 0
Other liabilities (from Schedule RC-G)................................ 93,311
Total liabilities...................................................5,644,736
EQUITY CAPITAL
Perpetual preferred stock and related surplus...............................0
Common Stock..............................................................500
Surplus (exclude all surplus related to preferred stock).............. 62,118
Undivided profits and capital reserves............................... 408,053
Net unrealized holding gains (losses) on available-for-sale
securities.......................................................... 3,113
Total equity capital..................................................473,784
Total liabilities, limited-life preferred stock, and
equity capital...................................................6,118,520
LETTER OF TRANSMITTAL
PEBO CAPITAL TRUST I
Offer to Exchange its
Series B 8.62% Capital Securities
(Liquidation Amount $1,000 per Capital
Security) which have been registered under the
Securities Act of 1933
for any and all of its outstanding
Series A 8.62% Capital Securities
(Liquidation Amount $1,000 per Capital Security)
Pursuant to the Prospectus
dated ______________, 1999
THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE
AT 5:00 P.M., NEW YORK CITY TIME, ON _______________, 1999,
UNLESS THE OFFER IS EXTENDED.
The Exchange Agent for the Exchange Offer is:
Wilmington Trust Company
By Registered or Certified Mail By Hand or Overnight Delivery
- ------------------------------- -----------------------------
Wilmington Trust Company Wilmington Trust Company
1100 North Market Street 1105 North Market Street
Wilmington, DE 19890-0001 Wilmington, DE 19890-0001
Attn: Kristin Long, Attn: Kristin Long,
Trust Operations Trust Operations
Confirm by Telephone
or for Information call:
(302) 651-1562
Facsimile Transmissions:
(Eligible Institutions Only)
(302) 651-1079
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET
FORTH ABOVE OR TRANSMISSION OF THIS LETTER OF TRANSMITTAL VIA FACSIMILE TO A
NUMBER OTHER THAN AS SET FORTH ABOVE DOES NOT CONSTITUTE A VALID DELIVERY.
THE INSTRUCTIONS CONTAINED HEREIN SHOULD BE READ CAREFULLY BEFORE THIS
LETTER OF TRANSMITTAL IS COMPLETED.
Capitalized terms used but not defined herein shall have the same
meaning given them in the Prospectus (as defined below).
This Letter of Transmittal is to be completed by holders of Series A
8.62% Capital Securities of PEBO Capital Trust I (the "Original Capital
Securities") either if (i) Original Capital Securities are to be forwarded
herewith or (ii) tenders of Original Capital Securities are to be made by
book-entry transfer to an account maintained by Wilmington Trust Company (the
"Exchange Agent") at The Depository Trust Company ("DTC") pursuant to the
procedures set forth in "The exchange offer--Procedures for tendering Original
Capital Securities" in the Prospectus.
Holders of Original Capital Securities whose certificates (the
"Certificates") for such Original Capital Securities are not immediately
available or who cannot deliver their Certificates and all other required
documents to the Exchange Agent on or prior to the expiration date (as indicated
in the Prospectus) or who cannot complete the procedures for book-entry transfer
on or prior to the expiration date, must tender their Original Capital
Securities according to the guaranteed delivery procedures set forth in "The
exchange offer--Procedures for tendering Original Capital Securities" in the
Prospectus.
DELIVERY OF DOCUMENTS TO DTC DOES NOT CONSTITUTE DELIVERY TO THE EXCHANGE AGENT.
NOTE: SIGNATURES MUST BE PROVIDED BELOW.
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.
ALL TENDERING HOLDERS COMPLETE THIS BOX:
DESCRIPTION OF ORIGINAL CAPITAL SECURITIES TENDERED
(See Instruction 4)
If blank, please print name and Original Capital Securities tendered
address of registered holder (Attach additional list if necessary)
---------------------------- -------------------------------------
Liquidation Amount of
Aggregate Original Capital
Liquidation Amount of Securities Tendered**
Certificate Original Capital (if less than all are
Number (s)* Securities Held tendered)
----------- --------------- ---------
TOTAL
AMOUNT
__________________ TENDERED: ________________________
* Need not be completed by book-entry holders.
** Original Capital Securities may be tendered in whole or in part in
denominations of $100,000 and integral multiples of $1,000 in excess thereof,
provided that if any Original Capital Securities are tendered for exchange in
part, the untendered principal amount thereof must be $100,000 or any integral
multiple of $1,000 in excess thereof. All Original Capital Securities held shall
be deemed tendered unless a lesser amount is specified in this column.
(BOXES BELOW TO BE CHECKED BY ELIGIBLE INSTITUTIONS ONLY)
/ / CHECK HERE IF TENDERED ORIGINAL CAPITAL SECURITIES ARE BEING
DELIVERED BY BOOK-ENTRY TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE
EXCHANGE AGENT WITH DTC AND COMPLETE THE FOLLOWING:
Name of Tendering Institution _________________________________
DTC Account Number_____________________________________________
Transaction Code Number________________________________________
/ / CHECK HERE AND ENCLOSE A PHOTOCOPY OF THE NOTICE OF GUARANTEED
DELIVERY IF TENDERED ORIGINAL CAPITAL SECURITIES ARE BEING DELIVERED
PURSUANT TO A NOTICE OF GUARANTEED DELIVERY PREVIOUSLY SENT TO THE
EXCHANGE AGENT AND COMPLETE THE FOLLOWING:
Name of Registered Holder(s)___________________________________
Window Ticket Number (if any)__________________________________
Date of Execution of Notice of Guaranteed Delivery_____________
Name of Institution which Guaranteed Delivery__________________
If Guaranteed Delivery is to be made by Book-Entry Transfer:
Name of Institution Tendering_________________________
DTC Account Number____________________________________
Transaction Code Number_______________________________
/ / CHECK HERE IF TENDERED BY BOOK-ENTRY TRANSFER AND NONEXCHANGED OR
NONTENDERED ORIGINAL CAPITAL SECURITIES ARE TO BE RETURNED BY CREDITING
THE DTC ACCOUNT NUMBER SET FORTH ABOVE.
/ / CHECK HERE IF YOU ARE A BROKER-DEALER WHO ACQUIRED THE ORIGINAL
CAPITAL SECURITIES FOR ITS OWN ACCOUNT AS A RESULT OF MARKET-MAKING OR
OTHER TRADING ACTIVITIES (A "PARTICIPATING BROKER-DEALER") AND WISH TO
RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY
AMENDMENTS OR SUPPLEMENTS THERETO.
Name ____________________________________________________________
Address _________________________________________________________
Area Code and Telephone Number __________________________________
Contact Person __________________________________________________
Ladies and Gentlemen:
The undersigned hereby tenders to PEBO Capital Trust I, a trust created
under the laws of Delaware (the "Trust"), and Peoples Bancorp Inc., an Ohio
corporation (the "Company"), the above-described aggregate Liquidation Amount of
the Trust's Series A 8.62% Capital Securities (the "Original Capital
Securities") in exchange for a like aggregate Liquidation Amount of the Trust's
Series B 8.62% Capital Securities (the "Exchange Capital Securities") which have
been registered under the Securities Act of 1933 (the "Securities Act"), upon
the terms and subject to the conditions set forth in the Prospectus, dated
_____________, 1999 (as the same may be amended or supplemented from time to
time, the "Prospectus"), receipt of which is acknowledged, and in this Letter of
Transmittal (which, together with the Prospectus, constitute the "Exchange
Offer").
Subject to and effective upon the acceptance for exchange of all or any
portion of the Original Capital Securities tendered herewith in accordance with
the terms and conditions of the Exchange Offer (including, if the Exchange Offer
is extended or amended, the terms and conditions of any such extension or
amendment), the undersigned hereby sells, assigns and transfers to or upon the
order of the Trust all right, title and interest in and to such Original Capital
Securities as are being tendered herewith. The undersigned hereby irrevocably
constitutes and appoints the Exchange Agent as its agent and attorney-in-fact
(with full knowledge that the Exchange Agent also is acting as agent of the
Company and the Trust in connection with the Exchange Offer) with respect to the
tendered Original Capital Securities, with full power of substitution (such
power of attorney being deemed to be an irrevocable power coupled with an
interest), subject only to the right of withdrawal described in the Prospectus,
to (i) deliver Certificates for Original Capital Securities to the Company or
the Trust together with all accompanying evidences of transfer and authenticity
to, or upon the order of, the Trust, upon receipt by the Exchange Agent, as the
undersigned's agent, of the Exchange Capital Securities to be issued in exchange
for such Original Capital Securities, (ii) present Certificates for such
Original Capital Securities for transfer, and to transfer the Original Capital
Securities on the books of the Trust, and (iii) receive for the account of the
Trust all benefits and otherwise exercise all rights of beneficial ownership of
such Original Capital Securities, all in accordance with the terms and
conditions of the Exchange Offer.
The undersigned hereby represents and warrants that the undersigned has
full power and authority to tender, exchange, sell, assign and transfer the
Original Capital Securities tendered hereby and that, when the same are accepted
for exchange, the Trust will acquire good, marketable and unencumbered title
thereto, free and clear of all liens, restrictions, charges and encumbrances,
and that the Original Capital Securities tendered hereby are not subject to any
adverse claims or proxies. The undersigned will, upon request, execute and
deliver any additional documents deemed by the Company, the Trust or the
Exchange Agent to be necessary or desirable to complete the exchange, sale,
assignment and transfer of the Original Capital Securities tendered hereby, and
the undersigned will comply with its obligations under the Registration Rights
Agreement. The undersigned has read and agrees to all of the terms of the
Exchange Offer.
The name(s) and address(es) of the registered holder(s) of the Original
Capital Securities tendered hereby should be printed above, if they are not
already set forth above, as they appear on the Certificates representing such
Original Capital Securities. The Certificate number(s) of the Original Capital
Securities that the undersigned wishes to tender should be indicated in the
appropriate boxes above.
If any tendered Original Capital Securities are not exchanged pursuant
to the Exchange Offer for any reason, or if Certificates are submitted for more
Original Capital Securities than are tendered or accepted for exchange,
Certificates for such nonexchanged or nontendered Original Capital Securities
will be returned (or, in the case of Original Capital Securities tendered by
book-entry transfer, such Original Capital Securities will be credited to an
account maintained at DTC), without expense to the tendering holder, promptly
following the expiration or termination of the Exchange Offer.
The undersigned understands that tenders of Original Capital Securities
pursuant to any one of the procedures described in "The exchange
offer--Procedures for tendering Original Capital Securities" in the Prospectus
and in the Instructions herein will, upon the Company's and the Trust's
acceptance for exchange of such tendered Original Capital Securities, constitute
a binding agreement between the undersigned, the Company and the Trust upon the
terms and subject to the conditions of the Exchange Offer. The undersigned
recognizes that, under certain circumstances set forth in the Prospectus, the
Company and the Trust may not be required to accept for exchange any of the
Original Capital Securities tendered hereby.
Unless otherwise indicated herein in the box entitled "Special Issuance
Instructions" below, the undersigned hereby directs that the Exchange Capital
Securities be issued in the name(s) of the undersigned or, in the case of a
book-entry transfer of Original Capital Securities, that such Exchange Capital
Securities be credited to the account indicated above maintained at DTC. If
applicable, substitute Certificates representing Original Capital Securities not
exchanged or not accepted for exchange will be issued to the undersigned or, in
the case of a book-entry transfer of Original Capital Securities, will be
credited to the account indicated above maintained at DTC. Similarly, unless
otherwise indicated under "Special Delivery Instructions," please deliver
Exchange Capital Securities to the undersigned at the address shown below the
undersigned's signature.
By tendering Original Capital Securities and executing this Letter of
Transmittal, the undersigned hereby represents and agrees that (i) the
undersigned is not an "affiliate" of the Company or the Trust within the meaning
of Rule 405 under the Securities Act, (ii) any Exchange Capital Securities to be
received by the undersigned are being acquired in the ordinary course of its
business, (iii) the undersigned has no arrangement or understanding with any
person to participate in the distribution (within the meaning of the Securities
Act) of Exchange Capital Securities to be received in the Exchange Offer and
(iv) if the undersigned is not a broker-dealer, the undersigned is not engaged
in, and does not intend to engage in, a distribution (within the meaning of the
Securities Act) of such Exchange Capital Securities. By tendering Original
Capital Securities pursuant to the Exchange Offer and executing this Letter of
Transmittal, a holder of Original Capital Securities which is a broker-dealer
represents and agrees, consistent with certain interpretive letters issued by
the staff of the Division of Corporation Finance of the Securities and Exchange
Commission to third parties, that (a) such Original Capital Securities held by
the broker-dealer are held only as a nominee or (b) such Original Capital
Securities were acquired by such broker-dealer for its own account as a result
of market-making activities or other trading activities and it will deliver the
prospectus (as amended or supplemented from time to time) meeting the
requirements of the Securities Act in connection with any resale of such
Exchange Capital Securities (provided that, by so acknowledging and by
delivering a prospectus, such broker-dealer will not be deemed to admit that it
is an "underwriter" within the meaning of the Securities Act).
The Company and the Trust have agreed that, subject to the provisions
of the Registration Rights Agreement, the Prospectus, as it may be amended or
supplemented from, time to time, may be used by a Participating Broker-Dealer
(as defined below) in connection with resales of Exchange Capital Securities
received in exchange for Original Capital Securities, where such Original
Capital Securities were acquired by such Participating Broker-Dealer for its own
account as a result of market-making activities or other trading activities, for
a period ending 90 days after the expiration date (subject to extension under
certain limited circumstances described in the Prospectus) or, if earlier, when
all such Exchange Capital Securities have been disposed of by such Participating
Broker-Dealer. In that regard, each broker-dealer who acquired Original Capital
Securities for its own account and as a result of market-making or other trading
activities (a "Participating Broker-Dealer"), by tendering such Original Capital
Securities and executing this Letter of Transmittal, agrees that, upon receipt
of notice from the Company or the Trust of the occurrence of any event or the
discovery of any fact which makes any statement contained or incorporated by
reference therein, in light of the circumstances under which they were made, not
misleading or of the occurrence of certain other events specified in the
Registration Rights Agreement, such Participating Broker-Dealer will suspend the
sale of Exchange Capital Securities pursuant to the Prospectus until the Company
and the Trust have amended or supplemented the Prospectus to correct such
misstatement or omission and has furnished copies of the amended or supplemented
Prospectus to the Participating Broker-Dealer or the Company or the Trust has
given notice that the sale of Exchange Capital Securities may be resumed, as the
case may be. If the Company or the Trust gives such notice to suspend the sale
of the Exchange Capital Securities, it shall extend the 90-day period referred
to above during which Participating Broker-Dealers are entitled to use the
Prospectus in connection with the resale of Exchange Capital Securities by the
number of days during the period from and including the date of the giving of
such notice to and including the date when Participating Broker-Dealers shall
have received copies of the supplemented or amended Prospectus necessary to
permit resales of the Exchange Capital Securities or to and including the date
on which the Company or the Trust has given notice that the sale of Exchange
Capital Securities may be resumed, as the case may be.
As a result, a Participating Broker-Dealer who intends to use the
Prospectus in connection with re-sales of Exchange Capital Securities received
in exchange for Original Capital Securities pursuant to the Exchange Offer must
notify the Company and the Trust, or cause the Company and the Trust to be
notified, on or prior to the expiration date, that it is a Participating
Broker-Dealer. Such notice may be given in the space provided above and by
checking the box next thereto, or may be delivered to the Exchange Agent at the
address set forth in the Prospectus under "The exchange offer--Exchange agent."
Holders whose Original Capital Securities are accepted for exchange
will not receive distributions on such Original Capital Securities which are due
and payable after the date of such acceptance, and the undersigned waives the
right to receive any such distribution on such Original Capital Securities
following such acceptance. Holders of Original Capital Securities as of the
October 15, 1999 record date for the initial distribution on November 1, 1999,
will be entitled to receive such distribution.
All authority herein conferred or agreed to be conferred in this Letter
of Transmittal shall survive the death or incapacity of the undersigned and any
obligation of the undersigned hereunder shall be binding upon the heirs,
executors, administrators, personal representatives, trustees in bankruptcy,
legal representatives, successors and assigns of the undersigned. Except as
stated in the Prospectus, this tender is irrevocable.
HOLDER(S) SIGN HERE
(See Instructions 2, 5 and 6)
(Please Complete Substitute Form W-9 Below)
(Note: Signature(s) must be guaranteed if required by Instruction 2)
Must be signed by registered holder(s) exactly as name(s) appear(s) on
Certificate(s) for the Original Capital Securities hereby tendered or on a
security position listing, or by any person(s) authorized to become the
registered holder(s) by endorsements and documents transmitted herewith
(including such opinions of counsel, certificates and other information as may
be required by the Company, the Trust or the Exchange Agent to comply with the
restrictions on transfer applicable to the Original Capital Securities). If
signature is by an attorney-in-fact, executor, administrator, trustee, guardian,
officer of a corporation or another acting in a fiduciary capacity or
representative capacity, please set forth the signer's full title. See
Instruction 5.
- --------------------------------------------------------------------------------
(Signature(s) of Holder(s))
Date __________________ , 1999
Name(s)________________________________________________________________________
(Please Print)
Area Code(s) and Telephone Number _____________________________________________
Tax Identification or Social Security Number(s)________________________________
GUARANTEE OF SIGNATURE(S)
(See Instructions 2 and 5)
Authorized Signature __________________________________________________________
Name __________________________________________________________________________
(Please Print)
Date _____________________, 1999
Capacity or Title _____________________________________________________________
Name of Firm __________________________________________________________________
Address _______________________________________________________________________
(Include Zip Code)
Area Code and Telephone Number ________________________________________________
SPECIAL ISSUANCE INSTRUCTIONS
(See Instructions 1, 5 and 6)
To be completed ONLY if Exchange Capital Securities and/or any Original
Capital Securities that are not tendered are to be issued in the name of someone
other than the registered holder of the Original Capital Securities whose
name(s) appear(s) above.
Issue:
/ / Exchange Capital Securities to:
/ / Original Capital Securities not tendered to:
Name __________________________________________________________________________
(Please Print)
Address _______________________________________________________________________
(Include Zip Code)
Taxpayer Identification or Social Security No. ________________________________
SPECIAL DELIVERY INSTRUCTIONS
(See Instructions 1, 5 and 6)
To be completed ONLY if Exchange Capital Securities and/or any Original
Capital Securities that are not tendered are to be sent to someone other than
the registered holder of the Original Capital Securities whose name(s) appear(s)
above, or to the registered holder(s) at an address other than that shown above.
Mail:
/ / Exchange Capital Securities to:
/ / Original Capital Securities not tendered to:
Name __________________________________________________________________________
(Please Print)
Address _______________________________________________________________________
(Include Zip Code)
Taxpayer Identification or Social Security No. ________________________________
INSTRUCTIONS
Forming Part of the Terms and Conditions of the Exchange Offer
1. Delivery of Letter of Transmittal and Certificates; Guaranteed
-----------------------------------------------------------------
Delivery Procedures. This Letter of Transmittal is to be completed either if (a)
- --------------------
tenders are to be made pursuant to the procedures for tender by book-entry
transfer set forth under "The exchange offer-Procedures for tendering Original
Capital Securities" in the Prospectus and an Agent's Message is not delivered or
(b) Certificates are to be forwarded herewith. Timely confirmation of a
book-entry transfer of such Original Capital Securities into the Exchange
Agent's account at DTC, or Certificates as well as this Letter of Transmittal
(or facsimile thereof), properly completed and duly executed, with any required
signature guarantees, and any other documents required by this Letter of
Transmittal, must be received by the Exchange Agent at one of its addresses set
forth herein on or prior to the expiration date. Tenders by book-entry transfer
also may be made by delivering an Agent's Message in lieu of this Letter of
Transmittal. The term "book-entry confirmation" means a confirmation of
book-entry transfer of Original Capital Securities into the Exchange Agent's
account at DTC. The term "Agent's Message" means a message transmitted by DTC to
and received by the Exchange Agent and forming a part of a book-entry
confirmation, which states that DTC has received an express acknowledgment from
the tendering participant, which acknowledgment states that such participant has
received and agrees to be bound by this Letter of Transmittal (including the
representations contained herein) and that the Trust and the Company may enforce
this Letter of Transmittal against such participant. Original Capital Securities
may be tendered in whole or in part in the Liquidation Amount of $100,000 (100
Capital Securities) and integral multiples of $1,000 in excess thereof, provided
that, if any Original Capital Securities are tended for exchange in part, the
untendered Liquidation Amount thereof must be $100,000 (100 Capital Securities)
or any integral multiple of $1,000 in excess thereof.
Holders who wish to tender their Original Capital Securities and (i)
who cannot complete the procedures for delivery by book-entry transfer on or
prior to the expiration date, (ii) who cannot deliver their Original Capital
Securities, this Letter of Transmittal and all other required documents to the
Exchange Agent on or prior to the expiration date or (iii) whose Original
Capital Securities are not immediately available, may tender their Original
Capital Securities by properly completing and duly executing a Notice of
Guaranteed Delivery pursuant to the guaranteed delivery procedures set forth
under "The exchange offer--Procedures for tendering Original Capital Securities"
in the Prospectus. Pursuant to such procedures: (a) such tender must be made by
or through an Eligible Institution (as defined below); (b) a properly completed
and duly executed Notice of Guaranteed Delivery, substantially in the form made
available by the Company, must be received by the Exchange Agent on or prior to
the expiration date; and (c) the Certificates (or a book-entry confirmation (as
defined above and in the Prospectus)) representing all tendered Original Capital
Securities, in proper form for transfer, together with a Letter of Transmittal
(or facsimile thereof), properly completed and duly executed, with any required
signature guarantees and any other documents required by this Letter of
Transmittal, must be received by the Exchange Agent within three New York Stock
Exchange, Inc. trading days after the date of execution of such Notice of
Guaranteed Delivery, all as provided in "The exchange offer--Procedures for
tendering Original Capital Securities" in the Prospectus.
The Notice of Guaranteed Delivery may be delivered by hand or
transmitted by facsimile or mail to the Exchange Agent, and must include a
guarantee by an Eligible Institution in the form, set forth in such Notice. For
Original Capital Securities to be properly tendered pursuant to the guaranteed
delivery procedure, the Exchange Agent must receive a Notice of Guaranteed
Delivery on or prior to the expiration date. As used herein and in the
Prospectus, "Eligible Institution" means a firm or other entity identified in
Rule l7Ad-15 under the Exchange Act as "an eligible guarantor institution,"
including (as such terms are defined therein): (i) a bank; (ii) a broker,
dealer, municipal securities broker or dealer or government securities broker or
dealer; (iii) a credit union; (iv) a national securities exchange, registered
securities association or clearing agency; or (v) a savings association that is
a participant in a Securities Transfer Association.
THE METHOD OF DELIVERY OF CERTIFICATES, THIS LETTER OF TRANSMITTAL AND ALL OTHER
REQUIRED DOCUMENTS IS AT THE OPTION AND SOLE RISK OF THE TENDERING HOLDER AND
THE DELIVERY WILL BE DEEMED MADE ONLY WHEN ACTUALLY RECEIVED BY THE EXCHANGE
AGENT. IF DELIVERY IS BY MAIL, REGISTERED MAIL WITH RETURN RECEIPT REQUESTED,
PROPERLY INSURED, OR OVERNIGHT DELIVERY SERVICE IS RECOMMENDED. IN ALL CASES,
SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
Neither the Company nor the Trust will accept any alternative,
conditional or contingent tenders. Each tendering holder, by execution of a
Letter of Transmittal (or facsimile thereof), waives any right to receive any
notice of the acceptance of such tender.
2. Guarantee of Signatures. No signature guarantee on this Letter of
--------------------------
Transmittal is required if:
(i) this Letter of Transmittal is signed by the registered holder
(which term, for purposes of this document, shall include any participant in DTC
whose name appears on a security position listing as the owner of the Original
Capital Securities) of Original Capital Securities tendered herewith, unless
such holder(s) has completed either the box entitled "Special Issuance
Instructions" or the box entitled "Special Delivery Instructions" above, or
(ii) such Original Capital Securities are tendered for the account of a
firm that is an Eligible Institution.
In all other cases, an Eligible Institution must guarantee the
signature(s) on this Letter of Transmittal. See Instruction 5.
3. Inadequate Space. If the space provided in the box captioned
-------------------
"Description of Original Capital Securities" is inadequate, the Certificate
number(s) and/or the Liquidation Amount of Original Capital Securities and any
other required information should be listed on a separate signed schedule which
is attached to this Letter of Transmittal.
4. Partial Tenders and Withdrawal Rights. Tenders of Original Capital
----------------------------------------
Securities will be accepted only in the aggregate Liquidation Amount of $100,000
(100 Capital Securities) and integral multiples of $1,000 in excess thereof,
provided that if any Original Capital Securities are tendered for exchange in
part, the untendered aggregate Liquidation Amount thereof must be $100,000 (100
Capital Securities) or any integral multiple of $1,000 in excess thereof. If
less than all the Original Capital Securities evidenced by any Certificate
submitted are to be tendered, fill in the Liquidation Amount of Original Capital
Securities which are to be tendered in the box entitled "Liquidation Amount of
Original Capital Securities Tendered (if less than all are tendered)." In such
case, a new Certificate(s) for the remainder of the Original Capital Securities
that were evidenced by your old Certificate(s) will be sent to the holder of the
Original Capital Securities, promptly after the expiration date, unless the
appropriate boxes on this Letter of Transmittal are completed. All Original
Capital Securities represented by Certificates delivered to the Exchange Agent
will be deemed to have been tendered unless otherwise indicated.
Except as otherwise provided herein, tenders of Original Capital
Securities may be withdrawn at any time on or prior to the expiration date. In
order for a notice of withdrawal to be effective on or prior to that time, a
written or facsimile transmission of such notice of withdrawal must be received
by the Exchange Agent at one of its addresses set forth above or in the
Prospectus on or prior to the expiration date. Any such notice of withdrawal
must specify the name of the person who tendered the Original Capital Securities
to be withdrawn, the aggregate Liquidation Amount of Original Capital Securities
to be withdrawn, and (if Certificates for Original Capital Securities have been
tendered) the name of the registered holder of the Original Capital Securities
as set forth on the Certificate for the Original Capital Securities, if
different from that of the person who tendered such Original Capital Securities.
If Certificates for the Original Capital Securities have been delivered or
otherwise identified to the Exchange Agent, then prior to the physical release
of such Certificates for the Original Capital Securities, the tendering holder
must submit the certificate numbers shown on the particular Certificates for the
Original Capital Securities to be withdrawn and the signature on the notice of
withdrawal must be guaranteed by an Eligible Institution, except in the case of
Original Capital Securities tendered for the account of an Eligible Institution.
If Original Capital Securities have been tendered pursuant to the procedures for
book-entry transfer set forth under "The exchange offer--Procedures for
tendering Original Capital Securities" in the Prospectus, the notice of
withdrawal must specify the name and number of the account at DTC to be credited
with the withdrawal of Original Capital Securities, in which case a notice of
withdrawal will be effective if delivered to the Exchange Agent by written or
facsimile transmission on or prior to the expiration date. Withdrawals of
tenders of Original Capital Securities may not be rescinded. Original Capital
Securities properly withdrawn will not be deemed validly tendered for purposes
of the Exchange Offer, but may be retendered at any subsequent time on or prior
to the expiration date by following any of the procedures described in the
Prospectus under "The exchange offer--Procedures for tendering Original Capital
Securities."
All questions as to the validity, form and eligibility (including time
of receipt) of such withdrawal notices will be determined by the Company and the
Trust, in their sole discretion, whose determination shall be final and binding
on all parties. None of the Company, the Trust, any affiliates or assigns of the
Company and the Trust, the Exchange Agent nor any other person shall be under
any duty to give any notification of any irregularities in any notice of
withdrawal or incur any liability for failure to give any such notification. Any
Original Capital Securities which have been tendered but which are withdrawn
will be returned to the holder thereof without cost to such holder promptly
after withdrawal.
5. Signatures on Letter of Transmittal, Assignments and Endorsements.
---------------------------------------------------------------------
If this Letter of Transmittal is signed by the registered holder(s) of the
Original Capital Securities tendered hereby, the signature(s) must correspond
exactly with the name(s) as written on the face of the Certificate(s) without
alteration, enlargement or any change whatsoever.
If any of the Original Capital Securities tendered hereby are owned of
record by two or more joint owners, all such owners must sign this Letter of
Transmittal.
If any tendered Original Capital Securities are registered in different
name(s) on several Certificates, it will be necessary to complete, sign and
submit as many separate Letters of Transmittal (or facsimiles thereof) as there
are different registrations of Certificates.
If this Letter of Transmittal or any Certificates or bond powers are
signed by trustees, executors, administrators, guardians, attorneys-in-fact,
officers of corporations or others acting in a fiduciary or representative
capacity, such persons should so indicate when signing and must submit proper
evidence satisfactory to the Company and the Trust, in their sole discretion, of
such persons' authority to so act.
When this Letter of Transmittal is signed by the registered holder(s)
of the Original Capital Securities listed and transmitted hereby, no
endorsment(s) of Certificate(s) or separate bond power(s) are required unless
Exchange Capital Securities are to be issued in the name of a person other than
the registered holder(s). Signature(s) on such Certificate(s) or bond power(s)
must be guaranteed by an Eligible Institution.
If this Letter of Transmittal is signed by a person other than the
registered holder(s) of the Original Capital Securities listed, the Certificates
must be endorsed or accompanied by appropriate bond powers, signed exactly as
the name or names of the registered owner(s) appear(s) on the Certificates, and
also must be accompanied by such opinions of counsel, certifications and other
information as the Company, the Trust or the Exchange Agent may require in
accordance with the restrictions on transfer applicable to the Original Capital
Securities. Signatures on such Certificates or bond powers must be guaranteed by
an Eligible Institution.
6. Special Issuance and Delivery Instructions. If Exchange Capital Securities
- ----------------------------------------------
are to be issued in the name of a person other than the signer of this Letter of
Transmittal, or if Exchange Capital Securities are to be sent to someone other
than the signer of this Letter of Transmittal or to an address other than that
shown above, the appropriate boxes on this Letter of Transmittal should be
completed. Certificates for Original Capital Securities not exchanged will be
returned by mail or, if tendered by book-entry transfer, by crediting the
account indicated above maintained at DTC. See Instruction 4.
7. Irregularities. The Company and the Trust will determine, in their sole
- ------------------
discretion, all questions as to the form of documents, validity, eligibility
(including time of receipt) and acceptance for exchange of any tender of
Original Capital Securities, which determination shall be final and binding on
all parties. The Company and the Trust reserve the absolute right, in their sole
and absolute discretion, to reject any and all tenders determined by either of
them not to be in proper form or the acceptance of which, or exchange for, may,
in the view of counsel to the Company and the Trust, be unlawful. The Company
and the Trust also reserve the absolute right, subject to applicable law, to
waive any of the conditions of the Exchange Offer set forth in the Prospectus
under "The exchange offer--Conditions to the exchange offer" or any conditions
or irregularity in any tender of Original Capital Securities of any particular
holder whether or not similar conditions or irregularities are waived in the
case of other holders. The Company's and the Trust's interpretation of the terms
and conditions of the Exchange Offer (including this Letter of Transmittal and
the instructions hereto) will be final and binding. No tender of Original
Capital Securities will be deemed to have been validly made until all
irregularities with respect to such tender have been cured or waived. None of
the Company, the Trust, any affiliates or assigns of the Company, the Trust, the
Exchange Agent, or any other person shall be under any duty to give notification
of any irregularities in tenders or incur any liability for failure to give such
notification.
8. Questions; Requests for Assistance and Additional Copies. Questions
-----------------------------------------------------------
and requests for assistance may be directed to the Exchange Agent at its address
and telephone number set forth on the front of this Letter of Transmittal.
Additional copies of the Prospectus, this Letter of Transmittal and the Notice
of Guaranteed Delivery may be obtained from the Exchange Agent or from your
broker, dealer, commercial bank, trust company or other nominee.
9. 31% Backup Withholding; Substitute Form W-9. Under U.S. Federal
----------------------------------------------
income tax law, a holder whose tendered Original Capital Securities are accepted
for exchange is required to provide the Exchange Agent with such holder's
correct taxpayer identification number ("TIN") on Substitute Form W-9 below. If
the Exchange Agent is not provided with the correct TIN, the Internal Revenue
Service (the "IRS") may subject the holder or other payee to a $50 penalty. In
addition, payments to such holders or other payees with respect to Original
Capital Securities exchanged pursuant to the Exchange Offer may be subject to
31% backup withholding.
The box in Part 2 of the Substitute Form W-9 may be checked if the
tendering holder has not been issued a TIN and has applied for a TIN or intends
to apply for a TIN in the near future. If the box in Part 2 is checked, the
holder or other payee must also complete the Certificate of Awaiting Taxpayer
Identification Number below in order to avoid backup withholding.
Notwithstanding that the box in Part 2 is checked and the Certificate of
Awaiting Taxpayer Identification Number is completed, the Exchange Agent will
withhold 31% of all payments made prior to the time a properly certified TIN is
provided to the Exchange Agent. The Exchange Agent will retain such amounts
withheld during the 60-day period following the date of the Substitute Form W-9.
If the holder furnishes the Exchange Agent with its TIN within 60-days after the
date of the Substitute Form W-9, the amounts retained during the 60-day period
will be remitted to the holder and no further amounts shall be retained or
withheld from payments made to the holder thereafter. If, however, the holder
has not provided the Exchange Agent with its TIN within such 60-day period,
amounts withheld will be remitted to the IRS as backup withholding. In addition,
31% of all payments made thereafter will be withheld and remitted to the IRS
until a correct TIN is provided.
The holder is required to give the Exchange Agent the TIN (e.g., social
security number or employer identification number) of the registered owner of
the Original Capital Securities or of the last transferee appearing on the
transfers attached to, or endorsed on, the Original Capital Securities. If the
Original Capital Securities are registered in more than one name or are not in
the name of the actual owner, consult the enclosed "Guidelines for Certification
of Taxpayer Identification Number on Substitute Form W-9" for additional
guidance on which number to report.
Certain holders (including, among others, corporations, financial
institutions and certain foreign persons) may not be subject to these backup
withholding and reporting requirements. Such holders should nevertheless
complete the attached Substitute Form W-9 below, and write "exempt" on the face
thereof, to avoid possible erroneous backup withholding. A foreign person may
qualify as an exempt recipient by submitting a properly completed IRS Form W-8,
signed under penalties of perjury, attesting to that holder's exempt status.
Please consult the enclosed "Guidelines for Certification of Taxpayer
Identification Number on Substitute Form W-9" for additional guidance on which
holders are exempt from backup withholding.
Backup withholding is not an additional U.S. Federal income tax.
Rather, the U.S. Federal income tax liability of a person subject to backup
withholding will be reduced by the amount of tax withheld. If withholding
results in an overpayment of taxes, a refund may be obtained.
10. Lost, Destroyed or Stolen Certificates. If any Certificate(s)
------------------------------------------
representing original Capital Securities have been lost, destroyed or stolen,
the holder should promptly notify the Exchange Agent. The holder will then be
instructed as to the steps that must be taken in order to replace the
Certificate(s). This Letter of Transmittal and related documents cannot be
processed until the procedures for replacing lost, destroyed or stolen
Certificate(s) have been followed.
11. Security Transfer Taxes. Holders who tender their Original Capital
---------------------------
Securities for exchange will not be obligated to pay any transfer taxes in
connection therewith. If, however, Exchange Capital Securities are to be
delivered to, or are to be issued in the name of, any person other than the
registered holder of the Original Capital Securities tendered, or if a transfer
tax is imposed for any reason other than the exchange of Original Capital
Securities in connection with the Exchange Offer, then the amount of any such
transfer tax (whether imposed on the registered holder or any other persons)
will be payable by the tendering holder. If satisfactory evidence of payment of
such taxes or exemption therefrom is not submitted with this Letter of
Transmittal, the amount of such transfer taxes will be billed directly to such
tendering holder.
Important: This Letter of Transmittal (or facsimile thereof) and all other
required documents must be received by the Exchange Agent on or prior to the
expiration date.
TO BE COMPLETED BY ALL TENDERING SECURITYHOLDERS
(See Instruction 9)
PAYER'S NAME: WILMINGTON TRUST COMPANY
SUBSTITUTE Part 1 - PLEASE PROVIDE TIN
Form W-9 YOUR TIN IN THE BOX AT
RIGHT AND CERTIFY (Social Security Number or
BY SIGNING AND DATING Employer Identification
BELOW Number)
Department of the Treasury Part 2
Internal Revenue Service Awaiting TIN / /
Payer's Request for CERTIFICATION - UNDER THE PENALTIES PERJURY, I
Taxpater Number (TIN) CERTIFY THAT (1) the number shown on this form
and Certification is my correct taxpayer identification number (or I
am waiting for a number to be issued to me), (2) I
am not subject to backup withholding either because
(i) I am exemptfrom backup withholding, (ii) I have
not been notified by the Internal Revenue Service
("IRS") that I am subject to backup withholding as
a result of a failure to report all interest or
dividends or (iii) the IRS has notified me
that I am no longer subject to backup
withholding, and (3) any other information
provided on this form is true and correct.
Signature _____________________
Date _________________________
________________________ You must cross out item (iii) in Part (2)
above if you have been notified by the IRS
that you are subject to backup withholding
because of underreporting interest or
dividends on your tax return and you have
not been notified by the IRS that you are
no longer subject to backup withholding.
NOTE: FAILURE TO COMPLETE AND RETURN THIS FORM MAY IN CERTAIN CIRCUMSTANCES
RESULT IN BACKUP WITHHOLDING OF 31% OF ANY AMOUNTS PAID TO YOU PURSUANT
TO THE EXCHANGE OFFER. PLEASE REVIEW THE ENCLOSED GUIDELINES FOR
CERTIFICATION OF TAXPAYER IDENTIFICATION NUMBER ON SUBSTITUTE FORM
W-9 FOR ADDITIONAL DETAILS.
<PAGE>
CERTIFICATE OF AWAITING TAXPAYER IDENTIFICATION NUMBER
I certify under penalties of perjury that a taxpayer identification
number has not been issued to me, and either (1) I have mailed or delivered an
application to receive a taxpayer identification number to the appropriate
Internal Revenue Service Center or Social Security Administration Office, or (2)
I intend to mail or deliver an application in the near future. I understand that
if I do not provide a taxpayer identification number by the time of payment, 31%
of all payments made to me on account of the Exchange Capital Securities shall
be retained until I provide a taxpayer identification number to the Exchange
Agent and that, if I do not provide my taxpayer identification number within 60
days, such retained amounts shall be remitted to the Internal Revenue Service as
backup withholding and 31% of all reportable payments made to me thereafter will
be withheld and remitted to the Internal Revenue Service until I provide a
taxpayer identification number.
Signature__________________________________ Date_____________________________
NOTICE OF GUARANTEED DELIVERY
FOR TENDER OF
Series A 8.62% Capital Securities
(Liquidation Amount $1,000 per Capital Security)
OF
PEBO CAPITAL TRUST I
Unconditionally Guaranteed by Peoples Bancorp Inc.
This Notice of Guaranteed Delivery, or one substantially equivalent to
this form, must be used to accept the Exchange Offer (as defined below) if (i)
the procedure for delivery by book-entry transfer cannot be completed on or
prior to the Expiration Date (as defined in the Prospectus referred to below),
(ii) certificates for the Trust's (as defined below) Series A 8.62% Capital
Securities (the "Original Capital Securities") are not immediately available or
(iii) Original Capital Securities, the Letter of Transmittal and all other
required documents cannot be delivered to Wilmington Trust Company (the
"Exchange Agent") on or prior to the Expiration Date. This Notice of Guaranteed
Delivery may be delivered by hand, overnight courier or mail, or transmitted by
facsimile transmission, to the Exchange Agent. See "The exchange
offer-Procedures for tendering Original Capital Securities" in the Prospectus.
The Exchange Agent for the Exchange Offer is:
Wilmington Trust Company
By Registered or Certified Mail By Hand or Overnight Delivery
- ------------------------------- -----------------------------
Wilmington Trust Company Wilmington Trust Company
1100 North Market Street 1105 North Market Street
Wilmington, DE 19890-0001 Wilmington, DE 19890-0001
Attn: Kristin Long, Trust Operations Attn: Kristin Long, Trust Operations
Confirm by Telephone
or for Information call:
(302) 651-1562
Facsimile Transmissions:
(Eligible Institutions Only)
(302) 651-1079
Delivery of this Notice of Guaranteed Delivery to an address other than
as set forth above or transmission of this Notice of Guaranteed Delivery via a
facsimile to a number other than as set forth above will not constitute a valid
delivery.
This Notice of Guaranteed Delivery is not to be used to guarantee
signatures. If a signature on a Letter of Transmittal is required to be
guaranteed by an "Eligible Institution" under the instructions therefor, such
signature guarantee must appear in the applicable space provided in the
signature box on the Letter of Transmittal.
Ladies and Gentlemen:
The undersigned hereby tenders to PEBO Capital Trust I, a trust created
under the laws of Delaware (the "Trust"), upon the terms and subject to the
conditions set forth in the Prospectus dated ______________, 1999 (as the same
may be amended or supplemented from time to time, the "Prospectus"), and the
related Letter of Transmittal (which together constitute the "Exchange Offer"),
receipt of which is hereby acknowledged, the aggregate liquidation amount of
Original Capital Securities set forth below pursuant to the guaranteed delivery
procedures set forth in the Prospectus under the caption "The exchange
offer-Procedures for tendering Original Capital Securities."
Aggregate Liquidation Amount Tendered: Name(s) of Registered Holder(s):
- -------------------------------------- --------------------------------
Certificate No(s). (if available): Address(es):
- -------------------------------------- --------------------------------
If Original Capital Securities will be tendered by book-entry transfer, provide
the following information:
Area Code and Telephone Number(s):
DTC Account Number:------------------------ ----------------------------------
Date:--------------------------------------
Signature(s):
---------------------------------------------
---------------------------------------------
THE GUARANTEE ON THE REVERSE SIDE MUST BE COMPLETED
<PAGE>
GUARANTEE
(Not to be used for signature guarantee)
The undersigned, a firm or other entity identified in Rule 17Ad-15
under the Securities Exchange Act of 1934, as amended, as an "eligible guarantor
institution," including (as such terms are defined therein): (i) bank; (ii) a
broker, dealer, municipal securities broker, municipal securities dealer,
government securities broker or government securities dealer; (iii) a credit
union; (iv) a national securities exchange, registered securities association or
clearing agency; or (v) a savings association that is a participant in a
Securities Transfer Association recognized program (each of foregoing being
referred to as an "Eligible Institution"), hereby guarantees to deliver to the
Exchange Agent, at one of its addresses set forth above, either the Series A
8.62% Capital Securities ("Original Capital Securities") tendered hereby in
proper form or transfer of such Original Capital Securities to the Exchange
Agent's account at The Depository Trust Company ("DTC"), pursuant to the
procedures for book-entry transfer set forth in the Prospectus, in either case
together with one or more properly completed and duly executed Letter(s) of
Transmittal (or facsimile thereof) and any other required documents within three
business days after the date of execution of this Notice of Guaranteed Delivery.
The undersigned acknowledges that it must deliver the Letter(s) of
Transmittal and the Original Capital Securities tendered hereby to the Exchange
Agent within the time period set forth above and that failure to do so could
result in a financial loss to the undersigned.
Name of Firm:
- ---------------------------------------- ------------------------------------
(Authorized Signature)
Address:
Title:
- ------------------------------------- ------------------------------
Name:
- ------------------------------------- ------------------------------
Zip Code (Please type or print)
Area Code and Telephone Number:
Date:
- ------------------------------- -----------------------------
NOTE: DO NOT SENT ORIGINAL CAPITAL SECURITIES WITH THIS NOTICE OF
GUARANTEED DELIVERY. ACTUAL SURRENDER OF ORIGINAL CAPITAL SECURITIES MUST BE
MADE PURSUANT TO, AND BE ACCOMPANIED BY, A PROPERLY COMPLETED AND DULY EXECUTED
LETTER OF TRANSMITTAL AND ANY OTHER REQUIRED DOCUMENTS.
