Document:

CFB Capital I

Exhibit

4.3

 

 

CFB Capital III

 

 

	

   

  
	

   

   

  AMENDED AND RESTATED

  TRUST AGREEMENT

   

   

  
	

   

  

 

 

among

 

Community First Bankshares, Inc., as

Depositor

 

Wilmington Trust Company, as Property

Trustee

 

Wilmington Trust Company, as Delaware

Trustee

 

The Administrative Trustees Named

Herein

 

And

 

The Several Holders (as Defined

Herein)

 

 

Dated as of March 27, 2002

 

 

TABLE OF CONTENTS

 

	

  ARTICLE I. – DEFINED TERMS

  
	

   

  	

  SECTION

  101.  DEFINITIONS

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  II. – ESTABLISHMENT OF THE TRUST

  	

   

  
	

   

  	

  SECTION

  201.  NAME

  	

   

  
	

   

  	

  SECTION

  202.  OFFICE OF THE DELAWARE TRUSTEE;

  PRINCIPAL PLACE OF BUSINESS

  	

   

  
	

   

  	

  SECTION

  203.  INITIAL CONTRIBUTION OF TRUST

  PROPERTY; ORGANIZATIONAL EXPENSES

  	

   

  
	

   

  	

  SECTION

  204.  ISSUANCE OF THE CAPITAL

  SECURITIES

  	

   

  
	

   

  	

  SECTION

  205.  ISSUANCE OF THE COMMON

  SECURITIES; SUBSCRIPTION AND PURCHASE OF 

  JUNIOR SUBORDINATED DEBENTURES

  	

   

  
	

   

  	

  SECTION 206.  DECLARATION OF TRUST

  	

   

  
	

   

  	

  SECTION

  207.  AUTHORIZATION TO ENTER INTO

  CERTAIN TRANSACTIONS

  	

   

  
	

   

  	

  SECTION 208.  ASSETS OF TRUST

  	

   

  
	

   

  	

  SECTION

  209.  TITLE TO TRUST PROPERTY

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE III. – PAYMENT

  ACCOUNT

  	

   

  
	

   

  	

  SECTION 301.  PAYMENT ACCOUNT

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE IV. –

  DISTRIBUTIONS; REDEMPTION

  	

   

  
	

   

  	

  SECTION 401.  DISTRIBUTIONS

  	

   

  
	

   

  	

  SECTION

  402.  REDEMPTION

  	

   

  
	

   

  	

  SECTION

  403.  SUBORDINATION OF COMMON

  SECURITIES

  	

   

  
	

   

  	

  SECTION 404.  PAYMENT PROCEDURES

  	

   

  
	

   

  	

  SECTION

  405.  TAX RETURNS AND REPORTS

  	

   

  
	

   

  	

  SECTION

  406.  PAYMENT OF TAXES, DUTIES, ETC.

  OF THE TRUST

  	

   

  
	

   

  	

  SECTION

  407.  PAYMENTS UNDER INDENTURE

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE V. –

  TRUST SECURITIES CERTIFICATES

  	

   

  
	

   

  	

  SECTION 501.  INITIAL OWNERSHIP

  	

   

  
	

   

  	

  SECTION

  502.  THE TRUST SECURITIES

  CERTIFICATES

  	

   

  
	

   

  	

  SECTION

  503.  EXECUTION AND DELIVERY OF TRUST

  SECURITIES CERTIFICATES

  	

   

  
	

   

  	

  SECTION

  504.  REGISTRATION OF TRANSFER AND

  EXCHANGE OF CAPITAL SECURITIES

  CERTIFICATES

  
	

   

  	

  SECTION

  505.  MUTILATED, DESTROYED, LOST OR

  STOLEN TRUST SECURITIES CERTIFICATES

  	

   

  

 

i

 

	

   

  	

  SECTION

  506.  PERSONS DEEMED SECURITYHOLDERS

  	

   

  
	

   

  	

  SECTION

  507.  ACCESS TO LIST OF

  SECURITYHOLDERS’ NAMES AND ADDRESSES

  	

   

  
	

   

  	

  SECTION

  508.  MAINTENANCE OF OFFICE OR AGENCY

  	

   

  
	

   

  	

  SECTION

  509.  APPOINTMENT OF PAYING AGENT

  	

   

  
	

   

  	

  SECTION

  510.  OWNERSHIP OF COMMON SECURITIES

  BY DEPOSITOR

  	

   

  
	

   

  	

  SECTION

  511.  BOOK-ENTRY CAPITAL SECURITIES

  CERTIFICATES; COMMON SECURITIES CERTIFICATE

  	

   

  
	

   

  	

  SECTION

  512.  NOTICES TO CLEARING AGENCY

  	

   

  
	

   

  	

  SECTION

  513.  DEFINITIVE CAPITAL SECURITIES

  CERTIFICATES

  	

   

  
	

   

  	

  SECTION

  514.  RIGHTS OF SECURITYHOLDERS

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  VI. – ACTS OF SECURITYHOLDRES; MEETINGS; VOTING

  	

   

  
	

   

  	

  SECTION

  601.  LIMITATIONS ON VOTING RIGHTS

  	

   

  
	

   

  	

  SECTION 602.  NOTICE OF MEETINGS

  	

   

  
	

   

  	

  SECTION

  603.  MEETINGS OF HOLDERS OF CAPITAL

  SECURITIES

  	

   

  
	

   

  	

  SECTION 604.  VOTING RIGHTS

  	

   

  
	

   

  	

  SECTION

  605.  PROXIES, ETC.

  	

   

  
	

   

  	

  SECTION

  606.  SECURITYHOLDER ACTION BY WRITTEN

  CONSENT

  	

   

  
	

   

  	

  SECTION

  607.  RECORD DATE FOR VOTING AND OTHER

  PURPOSES

  	

   

  
	

   

  	

  SECTION

  608.  ACTS OF SECURITYHOLDERS

  	

   

  
	

   

  	

  SECTION 609.  INSPECTION OF RECORDS

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  VII. – REPRESENTATIONS AND WARRANTIES

  	

   

  
	

   

  	

  SECTION

  701.  REPRESENTATIONS AND WARRANTIES

  OF THE BANK AND THE PROPERTY TRUSTEE

  	

   

  
	

   

  	

  SECTION

  702.  REPRESENTATIONS AND WARRANTIES

  OF THE DELAWARE BANK AND THE DELAWARE TRUSTEE

  	

   

  
	

   

  	

  SECTION

  703.  REPRESENTATIONS AND WARRANTIES

  OF DEPOSITOR

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE VIII. – THE TRUSTEES

  	

   

  
	

   

  	

  SECTION

  801.  CERTAIN DUTIES AND

  RESPONSIBILITIES

  	

   

  
	

   

  	

  SECTION 802.  CERTAIN NOTICES

  	

   

  
	

   

  	

  SECTION

  803.  CERTAIN RIGHTS OF PROPERTY

  TRUSTEE

  	

   

  
	

   

  	

  SECTION

  804.  NOT RESPONSIBLE FOR RECITALS OR

  ISSUANCE OF SECURITIES

  	

   

  
	

   

  	

  SECTION 805.  MAY HOLD SECURITIES

  	

   

  
	

   

  	

  SECTION

  806.  COMPENSATION; INDEMNITY; FEES

  	

   

  
	

   

  	

  SECTION

  807.  CORPORATE PROPERTY TRUSTEE

  REQUIRED; ELIGIBILITY OF TRUSTEES

  	

   

  
	

   

  	

  SECTION 808.  CONFLICTING INTERESTS

  	

   

  
	

   

  	

  SECTION

  809.  CO-TRUSTEES AND SEPARATE TRUSTEE

  	

   

  
	

   

  	

  SECTION

  810.  RESIGNATION AND REMOVAL;

  APPOINTMENT OF SUCCESSOR

  	

   

  

 

ii

 

	

   

  	

  SECTION

  811.  ACCEPTANCE OF APPOINTMENT BY

  SUCCESSOR

  	

   

  
	

   

  	

  SECTION

  812.  MERGER, CONVERSION,

  CONSOLIDATION OR SUCCESSION TO BUSINESS

  	

   

  
	

   

  	

  SECTION

  813.  PREFERENTIAL COLLECTION OF

  CLAIMS AGAINST DEPOSITOR OR TRUST

  	

   

  
	

   

  	

  SECTION

  814.  REPORTS BY PROPERTY TRUSTEE

  	

   

  
	

   

  	

  SECTION

  815.  REPORTS TO THE PROPERTY TRUSTEE

  	

   

  
	

   

  	

  SECTION

  816.  EVIDENCE OF COMPLIANCE WITH

  CONDITIONS PRECEDENT

  	

   

  
	

   

  	

  SECTION 817.  NUMBER OF TRUSTEES

  	

   

  
	

   

  	

  SECTION 818.  DELEGATION OF POWER

  	

   

  
	

   

  	

  SECTION

  819.  VOTING

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  IX. – DISSOLUTION, TERMINATION, LIQUIDATION AND MERGER

  	

   

  
	

   

  	

  SECTION

  901.  DISSOLUTION, TERMINATION UPON

  EXPIRATION DATE

  	

   

  
	

   

  	

  SECTION 902.  EARLY TERMINATION

  	

   

  
	

   

  	

  SECTION 903.  TERMINATION

  	

   

  
	

   

  	

  SECTION 904.  LIQUIDATION

  	

   

  
	

   

  	

  SECTION

  905.  MERGERS, CONSOLIDATIONS,

  AMALGAMATIONS OR REPLACEMENTS OF THE TRUST

  
	

   

  	

   

  
	

  ARTICLE X. – MISCELLANEOUS

  PROVISIONS

  	

   

  
	

   

  	

  SECTION

  1001.  LIMITATION OF RIGHTS OF

  SECURITYHOLDERS

  	

   

  
	

   

  	

  SECTION

  1002.  AMENDMENT

  	

   

  
	

   

  	

  SECTION 1003.  SEPARABILITY

  	

   

  
	

   

  	

  SECTION 1004.  GOVERNING LAW

  	

   

  
	

   

  	

  SECTION

  1005.  PAYMENTS DUE ON NON-BUSINESS

  DAY

  	

   

  
	

   

  	

  SECTION 1006.  SUCCESSORS

  	

   

  
	

   

  	

  SECTION

  1007.  HEADINGS

  	

   

  
	

   

  	

  SECTION

  1008.  REPORTS, NOTICES AND DEMANDS

  	

   

  
	

   

  	

  SECTION 1009.  AGREEMENT NOT TO PETITION

  	

   

  
	

   

  	

  SECTION

  1010.  TRUST INDENTURE ACT; CONFLICT

  WITH TRUST INDENTURE ACT

  	

   

  
	

   

  	

  SECTION

  1011.  ACCEPTANCE OF TERMS OF TRUST

  AGREEMENT, GUARANTEE AND INDENTURE

  
	

   

  
	

  Exhibit A

  	

  Certificate

  of Trust

  
	

  Exhibit B

  	

  Form of Certificate

  Depository Agreement

  
	

  Exhibit C

  	

  Form of Common

  Securities Certificate

  
	

  Exhibit D

  	

  Form of

  Expense Agreement

  
	

  Exhibit E

  	

  Form of

  Capital Securities Certificate

  
				

 

iii

 

CROSS-REFERENCE

TABLE

 

	

  SECTION OF

  

  TRUST INDENTURE ACT 

  OF 1939, AS AMENDED

  	

   

  	

  SECTION OF AMENDED 

  AND RESTATED TRUST 

  AGREEMENT

  
	

   

  
	

   

  
	

  310(a)(1)

  	

   

  	

  807

  
	

  310(a)(2)

  	

   

  	

  807

  
	

  310(a)(3)

  	

   

  	

  807

  
	

  310(a)(4)

  	

   

  	

  207(a)(ii)

  
	

  310(b)

  	

   

  	

  808

  
	

  311(a)

  	

   

  	

  813

  
	

  311(b)

  	

   

  	

  813

  
	

  312(a)

  	

   

  	

  507

  
	

  312(b)

  	

   

  	

  507

  
	

  312(c)

  	

   

  	

  507

  
	

  313(a)

  	

   

  	

  814(a)

  
	

  313(a)(4)

  	

   

  	

  814(b)

  
	

  313(b)

  	

   

  	

  814(b)

  
	

  313(c)

  	

   

  	

  108

  
	

  313(d)

  	

   

  	

  814(c)

  
	

  314(a)

  	

   

  	

  815

  
	

  314(b)

  	

   

  	

  Not Applicable

  
	

  314(c)(1)

  	

   

  	

  816

  
	

  314(c)(2)

  	

   

  	

  816

  
	

  314(c)(3)

  	

   

  	

  Not Applicable

  
	

  314(d)

  	

   

  	

  Not Applicable

  
	

  314(e)

  	

   

  	

  101, 816

  
	

  315(a)

  	

   

  	

  801(a), 803(a)

  
	

  315(b)

  	

   

  	

  802, 108

  
	

  315(c)

  	

   

  	

  801(a)

  
	

  315(d)

  	

   

  	

  801, 803

  
	

  315(e)

  	

   

  	

  Not Applicable

  
	

  316(a)

  	

   

  	

  Not Applicable

  
	

  316(a)(1)(A)

  	

   

  	

  Not Applicable

  
	

  316(a)(1)(B)

  	

   

  	

  Not Applicable

  
	

  316(a)(2)

  	

   

  	

  Not Applicable

  
	

  316(b)

  	

   

  	

  Not Applicable

  
	

  316(c)

  	

   

  	

  607

  
	

  317(a)(1)

  	

   

  	

  Not Applicable

  
	

  317(a)(2)

  	

   

  	

  Not Applicable

  
	

  317(b)

  	

   

  	

  509

  
	

  318(a)

  	

   

  	

  1010

  

 

iv

 

AMENDED AND

RESTATED TRUST AGREEMENT, dated as of March 27, 2002, among (i) Community First

Bankshares, Inc., a Delaware corporation (including any successors or assigns,

the “Depositor”), (ii) Wilmington Trust Company, a Delaware banking corporation

duly organized and existing under the laws of the State of Delaware, as

property trustee (the “Property Trustee” and, in its separate corporate

capacity and not in its capacity as Property Trustee, the “Bank”), (iii)

Wilmington Trust Company, a Delaware banking corporation duly organized and

existing under the laws of the State of Delaware, as Delaware trustee (the

“Delaware Trustee,” and, in its separate corporate capacity and not in its

capacity as Delaware Trustee, the “Delaware Bank”), (iv) Mark A. Anderson,

an individual, Craig A. Weiss, an individual, and Thomas R. Anderson, an

individual, each of whose address is c/o Community First Bankshares, Inc. (each

an “Administrative Trustee” and collectively the “Administrative Trustees”)

(the Property Trustee, the Delaware Trustee and the Administrative Trustees

referred to collectively as the “Trustees”) and (v) the several Holders, as

hereinafter defined.

 

W I T N E S S E T

H:

 

WHEREAS, the

Depositor, the Delaware Trustee, and Mark A. Anderson, Craig A. Weiss and

Thomas R. Anderson, each as an Administrative Trustee, have heretofore duly

declared and established a business trust pursuant to the Delaware Business

Trust Act by the entering into of that certain Trust Agreement, dated as of

February 20, 2002 (the “Original Trust Agreement”), and by the execution and

filing by the Delaware Trustee, the Depositor and the Administrative Trustees

with the Secretary of State of the State of Delaware of the Certificate of

Trust, filed on February 20, 2002, the form of which is attached as Exhibit

A; and

 

WHEREAS, the

Depositor, the Delaware Trustee, the Property Trustee and the Administrative

Trustees desire to amend and restate the Original Trust Agreement in its

entirety as set forth herein to provide for, among other things, (i) the

issuance of the Common Securities by the Trust to the Depositor, (ii) the

issuance and sale of the Capital Securities by the Trust pursuant to the

Underwriting Agreement, (iii) the acquisition by the Trust from the Depositor

of all of the right, title and interest in the Junior Subordinated Debentures

and (iv) the appointment of the Property Trustee;

 

NOW THEREFORE, in

consideration of the agreements and obligations set forth herein and for other

good and valuable consideration, the sufficiency of which is hereby

acknowledged, each party, for the benefit of the other parties and for the

benefit of the Securityholders, hereby amends and restates the Original Trust

Agreement in its entirety and agrees as follows:

 

1

 

ARTICLE I.

 

DEFINED TERMS

 

SECTION 1. 

DEFINITIONS.

 

For all purposes

of this Trust Agreement, except as otherwise expressly provided or unless the

context otherwise requires:

 

(a)       the terms defined in

this Article have the meanings assigned to them in this Article and include the

plural as well as the singular;

 

(b)      all other terms used

herein that are defined in the Trust Indenture Act, either directly or by

reference therein, have the meanings assigned to them therein;

 

(c)       unless the context

otherwise requires, any reference to an “Article” or a “Section” refers to an

Article or a Section, as the case may be, of this Trust Agreement; and

 

(d)      the words “herein”,

“hereof” and “hereunder” and other words of similar import refer to this Trust

Agreement as a whole and not to any particular Article, Section or other

subdivision.

 

“Act” has the

meaning specified in Section 608.

 

“Additional

Amount” means, with respect to Trust Securities of a given Liquidation Amount

and/or a given period, the amount of additional interest accrued on interest in

arrears and paid by the Depositor on a Like Amount of Junior Subordinated

Debentures for such period.

 

“Additional Sums”

has the meaning specified in Section 2.5 of the Indenture.

 

“Administrative

Trustee” means each of Mark A. Anderson, Craig A. Weiss, and Thomas R.

Anderson, solely in such person’s capacity as Administrative Trustee of the

Trust and not in such person’s individual capacity, or such Administrative

Trustee’s successor in interest in such capacity, or any successor

Administrative Trustee appointed as herein provided.

 

“Affiliate” of any

specified Person means any other Person directly or indirectly controlling or

controlled by or under direct or indirect common control with such specified

Person.  For the purposes of this

definition, “control” when used with respect to any specified Person means the

power to direct the management and policies of such Person, directly or

indirectly, whether through the ownership of voting securities, by contract or

otherwise; and the terms “controlling” and “controlled” have meanings

correlative to the foregoing.

 

“Bank” has the

meaning specified in the preamble to this Trust Agreement.

 

2

 

“Bankruptcy Event”

means, with respect to any Person:

 

(a)       the entry of a decree or

order by a court having jurisdiction in the premises adjudging such Person a

bankrupt or insolvent, or approving as properly filed a petition seeking

liquidation or reorganization of or in respect of such Person under the Federal

Bankruptcy Code or any other similar applicable Federal or State law, and the

continuance of any such decree or order unvacated and unstayed for a period of

90 days; or the commencement of an involuntary case under the Federal

Bankruptcy Code in respect of such Person, which shall continue undismissed for

a period of 90 days or entry of an order for relief in such case; or the entry

of a decree or order of a court having jurisdiction in the premises for the appointment

on the ground of insolvency or bankruptcy of a receiver, custodian, liquidator,

trustee or assignee in bankruptcy or insolvency of such Person or of its

property, or for the winding up or liquidation of its affairs, and such decree

or order shall have remained in force unvacated and unstayed for a period of 90

days; or

 

(b)      the institution by such

Person of proceedings to be adjudicated a voluntary bankrupt, or the consent by

such Person to the filing of a bankruptcy proceeding against it, or the filing

by such Person of a petition or answer or consent seeking liquidation or

reorganization under the Federal Bankruptcy Code or other similar applicable

Federal or State law, or the consent by such Person to the filing of any such

petition or to the appointment on the ground of insolvency or bankruptcy of a

receiver or custodian or liquidator or trustee or assignee in bankruptcy or

insolvency of such Person or of its property, or such Person shall make a

general assignment for the benefit of creditors.

 

“Bankruptcy Laws” has the meaning specified in Section 1009.

 

“Board Resolution”

means a copy of a resolution certified by the Secretary or an Assistant

Secretary of the Depositor to have been duly adopted by the Depositor’s Board

of Directors, or such committee of the Board of Directors or officers of the

Depositor to which authority to act on behalf of the Board of Directors has

been delegated, and to be in full force and effect on the date of such

certification, and delivered to the appropriate Trustee.

 

“Book-Entry

Capital Securities Certificates” means certificates representing Capital

Securities issued in global, fully registered form to the Clearing Agency as

described in Section 511.

 

“Business Day”

means a day other than (a) a Saturday or Sunday, (b) a day on which banking

institutions in the State of Minnesota are authorized or required by law or

executive order to remain closed, or (c) a day on which the Property Trustee’s

Corporate Trust Office or the Corporate Trust Office of the Debenture Trustee

is closed for business.

 

“Capital

Securities Certificate” means a certificate evidencing ownership of Capital

Securities, substantially in the form attached as Exhibit E.

 

3

 

“Certificate

Depository Agreement” means the agreement among the Trust, the Property Trustee

and The Depository Trust Company, as the initial Clearing Agency, dated as of

the Closing Date, relating to the Trust Securities Certificates, substantially

in the form attached as Exhibit B, as the same may be amended and

supplemented from time to time.

 

“Certificate of

Trust” means the certificate of trust filed with the Secretary of State of the

State of Delaware with respect to the Trust, as amended or restated from time

to time.

 

“Clearing Agency”

means an organization registered as a “clearing agency” pursuant to Section 17A

of the Securities Exchange Act of 1934, as amended.  The Depository Trust Company will be the initial Clearing Agency.

 

“Clearing Agency

Participant” means a broker, dealer, bank, other financial institution or other

Person for whom from time to time a Clearing Agency effects book-entry

transfers and pledges of securities deposited with the Clearing Agency.

 

“Closing Date”

means the date of execution and delivery of this Trust Agreement.

 

“Code” means the

Internal Revenue Code of 1986, as amended.

 

“Commission” means

the Securities and Exchange Commission, as from time to time constituted,

created under the Securities Exchange Act of 1934, as amended, or, if at any

time after the execution of this Trust Agreement 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 Security”

means a common undivided beneficial interest in the assets of the Trust, having

a Liquidation Amount of $25 and having the rights provided therefor in this

Trust Agreement, including the right to receive Distributions and a Liquidation

Distribution as provided herein.

 

“Common Securities

Certificate” means a certificate evidencing ownership of Common Securities,

substantially in the form attached as Exhibit C.

 

“Corporate Trust

Office” means the principal corporate trust office of the Property Trustee

located at Rodney Square North, 1100 North Market Street, Wilmington, Delaware,

19890-0001, Attn: Corporate Trust Administration.

 

“Debenture Event

of Default” means an “Event of Default” as defined in the Indenture.

 

“Debenture

Redemption Date” means, with respect to any Junior Subordinated Debentures to

be redeemed under the Indenture, the date fixed for redemption under the

Indenture.

 

4

 

“Debenture

Trustee” means Wilmington Trust Company, a Delaware banking corporation

organized under the laws of the State of Delaware and any successor thereto, as

trustee under the Indenture.

 

“Definitive

Capital Securities Certificates” means either or both (as the context requires)

of (a) Capital Securities Certificates issued as Book-Entry Capital Securities

Certificates as provided in Section 511(a), and (b) Capital Securities

Certificates issued in certificated, fully registered form as provided in

Section 513.

 

“Delaware Bank”

has the meaning specified in the preamble to this Trust Agreement.

 

“Delaware Business

Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Delaware Code

Sections 3801 et seq as it may be amended from time to time.

 

“Delaware Trustee”

means the commercial bank or trust company identified as the “Delaware Trustee”

in the preamble to this Trust Agreement solely in its capacity as Delaware

Trustee of the Trust and not in its individual capacity, or its successor in

interest in such capacity, or any successor Delaware Trustee appointed as

herein provided.

 

“Depositor” has

the meaning specified in the preamble to this Trust Agreement.

 

“Distribution

Date” has the meaning specified in Section 401(a).

 

“Distributions”

means amounts payable in respect of the Trust Securities as provided in Section

401.

 

“Event of Default”

means any one of the following events shall have occurred and be continuing

(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)       the occurrence of a

Debenture Event of Default; or

 

(b)      default by the Trust in

the payment of any Distribution when it becomes due and payable, and

continuation of such default for a period of 30 days; or

 

(c)       default by the Trust in

the payment of any Redemption Price of any Trust Security when it becomes due

and payable; or

 

(d)      default in the

performance, or breach, in any material respect, of any covenant or warranty of

the Property Trustee in this Trust Agreement (other than a covenant or

warranty, a default in the performance of which or the breach of which is dealt

with in clause (b) or (c), above) and continuation of such default or breach

for a period of 60 days after there has been given, by registered or certified

mail, to the defaulting Property Trustee by the Holders of at least 25% in

aggregate Liquidation Amount of the Outstanding Capital Securities a written

notice

 

5

 

specifying such

default or breach and requiring it to be remedied and stating that such notice

is a “Notice of Default” hereunder; or

 

(e)       the occurrence of a

Bankruptcy Event with respect to the Property Trustee and the failure by the

Depositor to appoint a successor Property Trustee within 60 days thereof.

 

“Exchange Act”

means the Securities Exchange Act of 1934, as amended.

 

“Expense

Agreement” means the Agreement as to Expenses and Liabilities between the

Depositor and the Trust, substantially in the form attached as Exhibit D,

as amended from time to time.

 

“Expiration Date”

has the meaning specified in Section 901.

 

“Extension Period”

means the “Extended Interest Payment Period” as defined in the Indenture.

 

“Global

Subordinated Debenture” has the meaning specified in the Indenture.

 

“Guarantee” means

the Capital Securities Guarantee Agreement executed and delivered by the

Depositor and Wilmington Trust Company as trustee, contemporaneously with the

execution and delivery of this Trust Agreement, for the benefit of the holders

of the Capital Securities, as amended from time to time.

 

“Holder” means a

Securityholder.

 

“Indenture” means

the Subordinated Indenture, dated as of March 27, 2002, between the Depositor

and the Debenture Trustee, as trustee, as amended or supplemented from time to

time.

 

“Investment

Company Act” means the Investment Company Act of 1940, as amended.

 

“Investment

Company Event” means the receipt by the Depositor and the Trust of an Opinion

of Counsel experienced in such matters to the effect that, as a result of the

occurrence of a change in law or regulation or a change in interpretation or

application of law or regulation by any legislative body, court, governmental

agency or regulatory authority (a “Change in Investment Company Act Law”), the

Trust is or will be considered an “investment company” that is required to be

registered under the Investment Company Act, which Change in Investment Company

Act Law becomes effective on or after the date of original issuance of the Capital

Securities under this Trust Agreement.

 

“Junior Subordinated

Debentures” means the $61,855,675 aggregate principal amount of the Depositor’s

8-1/8% Junior Subordinated Debentures, issued pursuant to the Indenture.

 

6

 

“Lien” means any

lien, pledge, charge, encumbrance, mortgage, deed of trust, adverse ownership

interest, hypothecation, assignment, security interest or preference, priority

or other security agreement or preferential arrangement of any kind or nature

whatsoever.

 

“Like Amount”

means (a) with respect to a redemption of Trust Securities, Trust Securities

having a Liquidation Amount equal to the principal amount of Junior

Subordinated Debentures to be contemporaneously redeemed in accordance with the

Indenture and the proceeds of which will be used to pay the Redemption Price of

such Trust Securities and (b) with respect to a distribution of Junior

Subordinated Debentures to Holders of Trust Securities in connection with a

termination or 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 such Junior Subordinated Debentures are distributed.

 

“Liquidation

Amount” means the stated amount of $25 per Trust Security.

 

“Liquidation Date”

means the date on which Junior Subordinated Debentures are to distributed to

Holders of Trust Securities in connection with a termination and liquidation of

the Trust pursuant to Section 904(a).

 

“Liquidation Distribution”

has the meaning specified in Section 904(d).

 

“Officers’

Certificate” means a certificate signed by the President or a Vice President

and by the Chief Financial Officer or the Controller or an Assistant Controller

or the Secretary or an Assistant Secretary, of the Depositor, and delivered to

the appropriate Trustee.  One of the

officers signing an Officers’ Certificate given pursuant to Section 816 shall

be the principal executive, financial or accounting officer of the

Depositor.  Any Officers’ Certificate

delivered with respect to compliance with a condition or covenant provided for

in this Trust Agreement shall include:

 

(a)       a statement that each

officer signing the Officers’ Certificate has read the covenant or condition

and the definitions relating thereto;

 

(b)      a brief statement of the

nature and scope of the examination or investigation undertaken by each officer

in rendering the Officers’ Certificate;

 

(c)       a statement that each

such officer has made such examination or investigation as, in such officer’s

opinion, is necessary to enable such officer to express an informed opinion as

to whether or not such covenant or condition has been complied with; and

 

(d)      a statement as to

whether, in the opinion of each such officer, such condition or covenant has

been complied with.

 

“Opinion of

Counsel” means a written opinion of counsel, who may be counsel for the Trust,

the Property Trustee, the Delaware Trustee or the Depositor, but not an

employee of any thereof, and who shall be reasonably acceptable to the Property

Trustee.

 

7

 

“Original Trust

Agreement” has the meaning specified in the recitals to this Trust Agreement.

 

“Outstanding”,

when used with respect to Capital Securities, means, as of the date of

determination, all Capital Securities theretofore executed and delivered under

this Trust Agreement, except:

 

(a)       Capital Securities

theretofore cancelled by the Property Trustee or delivered to the Property

Trustee for cancellation;

 

(b)      Capital Securities for

whose payment or redemption money in the necessary amount has been theretofore

deposited with the Property Trustee or any Paying Agent for the Holders of such

Capital Securities; provided that, if such Capital Securities are to be

redeemed, notice of such redemption has been duly given pursuant to this Trust

Agreement; and

 

(c)       Capital Securities which

have been paid or in exchange for or in lieu of which other Capital Securities

have been executed and delivered pursuant to Sections 504, 505, 511 and 513;

provided, however, that in determining whether the Holders of the requisite

Liquidation Amount of the Outstanding Capital Securities have given any

request, demand, authorization, direction, notice, consent or waiver hereunder,

Capital Securities owned by the Depositor, any Trustee or any Affiliate of the

Depositor or any Trustee shall be disregarded and deemed not to be Outstanding,

except that (i) in determining whether any Trustee shall be protected in

relying upon any such request, demand, authorization, direction, notice,

consent or waiver, only Capital Securities that such Trustee knows to be so

owned shall be so disregarded and (ii) the foregoing shall not apply at any

time when all of the Outstanding Capital Securities are owned by the Depositor,

one or more of the Trustees and/or any such Affiliate.  Capital Securities so owned which have been

pledged in good faith may be regarded as Outstanding if the pledgee establishes

to the satisfaction of the Administrative Trustees the pledgee’s right as to

such Capital Securities so owned.

 

“Owner” means each

Person who is the beneficial owner of a Book-Entry Capital Securities

Certificate as reflected in the records of the Clearing Agency or, if a

Clearing Agency Participant is not the Owner, then as reflected in the records

of a Person maintaining an account with such Clearing Agency (directly or

indirectly, in accordance with the rules of such Clearing Agency).

 

“Paying Agent”

means any paying agent or co-paying agent appointed pursuant to Section 509 and

shall initially be the Bank.

 

“Payment Account”

means a segregated non-interest-bearing corporate trust account maintained by

the Property Trustee with the Bank in its trust department for the benefit of

the Securityholders in which all amounts paid in respect of the Junior

Subordinated Debentures will be held and from which the Property Trustee shall

make payments to the Securityholders in accordance with Sections 401 and 402.

 

8

 

“Person” means any

individual, corporation, partnership, joint venture, trust, limited liability

company or corporation, unincorporated organization or government or any agency

or political subdivision thereof.

 

“Preferred

Security” means an undivided beneficial interest in the assets of the Trust,

designated “8-1/8% Cumulative Capital Securities,” having a Liquidation Amount

of $25 and having the rights provided therefor in this Trust Agreement,

including the right to receive Distributions and a Liquidation Distribution as

provided herein.

 

“Property Trustee”

means the commercial bank or trust company identified as the “Property Trustee”

in the preamble to this Trust Agreement solely in its capacity as Property

Trustee of the Trust heretofore formed and continued hereunder and not in its

individual capacity, or its successor in interest in such capacity, or any

successor Property Trustee appointed as herein provided.

 

“Redemption Date”

means, with respect to any Trust Security to be redeemed, the date fixed for

such redemption by or pursuant to this Trust Agreement; provided that each

Debenture Redemption Date and the stated maturity of the Junior Subordinated

Debentures shall be a Redemption Date for a Like Amount of Trust Securities.

 

“Redemption Price”

means, with respect to any Trust Security to be redeemed, the Liquidation

Amount of such Trust Security, plus accumulated and unpaid Distributions to the

Redemption Date allocated on a pro rata basis (based on Liquidation Amounts)

among the Trust Securities to be redeemed.

 

“Relevant Trustee”

shall have the meaning specified in Section 810.

 

“Securities

Register” and “Securities Registrar” have the respective meanings specified in

Section 504.

 

“Securityholder”

means a Person in whose name a Trust Security or Securities is registered in

the Securities Register; any such Person is a beneficial owner within the

meaning of the Delaware Business Trust Act.

 

“Tax Event” means

the receipt by the Depositor or the Trust of an Opinion of 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 issuance of the Capital

Securities under this Trust Agreement, or the Junior Subordinated Debentures

under the Indenture, as the case may be, there is more than an insubstantial

risk that (i) the Trust is, or will be within 90 days after the date of such

Opinion of Counsel, subject to United States federal income tax with respect to

income received

 

9

 

or accrued on the Junior

Subordinated Debentures, (ii) interest payable by the Depositor on the Junior

Subordinated Debentures is not, or within 90 days after the date of such

Opinion of Counsel will not be, deductible by the Depositor, in whole or in

part, for United States federal income tax purposes or (iii) the Trust is, or

will be within 90 days after the date of such Opinion of Counsel, subject to

more than a de minimis amount of other taxes, duties, assessments or other

governmental charges.

 

“Trust” means the

Delaware business trust created and continued hereby and identified on the

cover page to this Trust Agreement.

 

“Trust Agreement”

means this Amended and Restated Trust Agreement, as the same may be modified,

amended or supplemented in accordance with the applicable provisions hereof,

including all exhibits hereto, including, for all purposes of this Trust

Agreement and any such modification, amendment or supplement, the provisions of

the Trust Indenture Act that are deemed to be a part of and govern this Trust

Agreement and any such modification, amendment or supplement, respectively.

 

“Trust Indenture

Act” means the Trust Indenture Act of 1939 as in force at the date as of which

this Trust Agreement was executed; provided, however, that in the event the

Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act”

means, to the extent required by any such amendment, the Trust Indenture Act of

1939 as so amended.

 

“Trust Property”

means (a) the Junior Subordinated Debentures, (b) any cash on deposit in, or

owing to, the Payment Account and (d) 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 the trusts of this Trust

Agreement.

 

“Trust Security”

means any one of the Common Securities or the Capital Securities.

 

“Trust Securities

Certificate” means any one of the Common Securities Certificates or the Capital

Securities Certificates.

 

“Trustees” means,

collectively, the Property Trustee, the Delaware Trustee and the Administrative

Trustees.

 

“Underwriting

Agreement” means the Underwriting Agreement, dated as of March 27, 2002, among

the Trust, the Depositor and the Underwriters named therein.

 

 

ARTICLE II.

ESTABLISHMENT OF THE

TRUST

 

SECTION 201. 

NAME.

 

The Trust created and continued hereby shall be known

as “CFB Capital III,” as such

 

10

 

name may be

modified from time to time by the Administrative Trustees following written

notice to the Holders of Trust Securities and the other Trustees, in which name

the Trustees may engage in the transactions contemplated hereby, make and

execute contracts and other instruments on behalf of the Trust and sue and be

sued.

 

SECTION 202. 

OFFICE OF THE DELAWARE TRUSTEE; PRINCIPAL PLACE OF BUSINESS.

 

The address of the

Delaware Trustee in the State of Delaware is c/o Wilmington Trust Company, 1100

North Market Street, Wilmington, Delaware 19890, Attention: Corporate Trust

Administration, or such other address in the State of Delaware as the Delaware

Trustee may designate by written notice to the Securityholders and the

Depositor.  The principal executive

office of the Trust is c/o Community First Bankshares, Inc., 520 Main Avenue,

Fargo, North Dakota 58124-0001.

 

SECTION 203. 

INITIAL CONTRIBUTION OF TRUST PROPERTY, ORGANIZATIONAL EXPENSES.

 

The Trustees

acknowledge receipt in trust from the Depositor in connection with the Original

Trust Agreement of the sum of $10, which constituted the initial Trust

Property.  The Depositor shall pay

organizational expenses of the Trust as they arise or shall, upon request of

any Trustee, promptly reimburse such Trustee for any such expenses paid by such

Trustee.  The Depositor shall make no

claim upon the Trust Property for the payment of such expenses.

 

SECTION 204. 

ISSUANCE OF THE CAPITAL SECURITIES.

 

The Depositor, on

behalf of the Trust and pursuant to the Original Trust Agreement, executed and

delivered the Underwriting Agreement. 

Contemporaneously with the execution and delivery of this Trust

Agreement, an Administrative Trustee, on behalf of the Trust, shall execute in

accordance with Section 502 and deliver, in accordance with the Underwriting

Agreement, Capital Securities Certificates, registered in the name of the

nominee of the initial Clearing Agency, in an aggregate amount of Capital

Securities having an aggregate Liquidation Amount of $60,000,000 against

receipt of the aggregate purchase price of such Capital Securities of

$60,000,000, which amount such Administrative Trustee shall promptly deliver to

the Property Trustee.

 

SECTION 205. 

ISSUANCE OF THE COMMON SECURITIES; SUBSCRIPTION AND PURCHASE OF JUNIOR

SUBORDINATED DEBENTURES.

 

Contemporaneously

with the execution and delivery of this Trust Agreement, an Administrative

Trustee, on behalf of the Trust, shall execute in accordance with Section 502

and deliver to the Depositor Common Securities Certificates, registered in the

name of the Depositor, in an aggregate amount of Common Securities having an

aggregate Liquidation Amount of $1,855,675 against delivery by the Depositor of

$1,855,675 in principal amount of Junior Subordinated Debentures.  Contemporaneously therewith, an

Administrative Trustee, on behalf

 

11

 

of the Trust, shall

subscribe to and purchase from the Depositor Junior Subordinated Debentures,

registered in the name of the Property Trustee on behalf of the Trust and

having an aggregate principal amount equal to $60,000,000, and, in satisfaction

of the purchase price for such Junior Subordinated Debentures, the Property

Trustee, on behalf of the Trust, shall deliver to the Depositor the sum of

$60,000,000.

 

SECTION 206. 

DECLARATION OF TRUST.

 

The exclusive

purposes and functions of the Trust are (a) to issue and sell Trust Securities

and use the proceeds from such sale to acquire the Junior Subordinated

Debentures, and (b) to engage in those activities necessary, convenient or

incidental thereto.  The Depositor

hereby appoints the Trustees as trustees of the Trust, to have all the rights,

powers and duties to the extent set forth herein, and the Trustees hereby

accept such appointment.  The Property

Trustee hereby declares that it will hold the Trust Property in trust upon and

subject to the conditions set forth herein for the benefit of the

Securityholders.  The Administrative

Trustees shall have all rights, powers and duties set forth herein and in

accordance with applicable law with respect to accomplishing the purposes of

the Trust.  The Delaware Trustee shall

not be entitled to exercise any powers, nor shall the Delaware Trustee have any

of the duties and responsibilities, of the Property Trustee or the

Administrative Trustees set forth herein. 

The Delaware Trustee shall be one of the Trustees of the Trust for the

sole and limited purpose of fulfilling the requirements of Section 3807 of the

Delaware Business Trust Act.

 

SECTION 207. 

AUTHORIZATION TO ENTER INTO CERTAIN TRANSACTIONS.

 

(a)       The Trustees shall

conduct the affairs of the Trust in accordance with the terms of this Trust

Agreement.  Subject to the limitations

set forth in paragraph (b) of this Section and Article VIII, and in accordance

with the following provisions (i) and (ii), the Administrative Trustees shall

have the authority to enter into all transactions and agreements determined by

the Administrative Trustees to be appropriate in exercising the authority, express

or implied, otherwise granted to the Administrative Trustees under this Trust

Agreement, and to perform all acts in furtherance thereof, including without

limitation, the following:

 

(i)       As

among the Trustees, each Administrative Trustee, acting singly or jointly,

shall have the power and authority to act on behalf of the Trust with respect

to the following matters:

 

(A)    the

issuance and sale of the Trust Securities;

 

(B)    to cause

the Trust to enter into, and to execute, deliver and perform on behalf of the

Trust, the Expense Agreement and the Certificate Depository Agreement and such

other agreements or documents as may be necessary or desirable in connection

with the purposes and function of the Trust;

 

(C)    assisting

in the registration of the Capital Securities under the Securities Act of 1933,

as amended, and under state securities or blue sky laws,

 

12

 

and the qualification of this Trust Agreement as a trust indenture

under the Trust Indenture Act;

 

(D)    assisting

in the listing of the Capital Securities upon the Nasdaq National Market or

such securities exchange or exchanges as shall be determined by the Depositor

and, if required, the registration of the Capital Securities under the

Securities Exchange Act of 1934, as amended, and the preparation and filing of

all periodic and other reports and other documents pursuant to the foregoing;

 

(E)     the

sending of notices (other than notices of default) and other information

regarding the Trust Securities and the Junior Subordinated Debentures to the

Securityholders in accordance with this Trust Agreement;

 

(F)     the

appointment of a Paying Agent, authenticating agent and Securities Registrar in

accordance with this Trust Agreement;

 

(G)    to the

extent provided in this Trust Agreement, the winding up of the affairs of and

liquidation of the Trust and the preparation, execution and filing of the

certificate of cancellation with the Secretary of State of the State of

Delaware;

 

(H)    to take

all action that may be necessary or appropriate for the preservation and the

continuation of the Trust’s valid existence, rights, franchises and privileges

as a statutory business trust under the laws of the State of Delaware and of

each other jurisdiction in which such existence is necessary to protect the

limited liability of the Holders of the Capital Securities or to enable the

Trust to effect the purposes for which the Trust was created; and

 

(I)      the

taking of any action incidental to the foregoing as the Administrative Trustees

may from time to time determine is necessary or advisable to give effect to the

terms of this Trust Agreement for the benefit of the Securityholders (without

consideration of the effect of any such action on any particular

Securityholder).

 

(ii)      As

among the Trustees, the Property Trustee shall have the power, duty and

authority to act on behalf of the Trust with respect to the following matters:

 

(A)    the

establishment of the Payment Account;

 

(B)    the

receipt of the Junior Subordinated Debentures;

 

(C)    the

collection of interest, principal and any other payments made in respect of the

Junior Subordinated Debentures in the Payment Account;

 

13

 

(D)    the

distribution of amounts owed to the Securityholders in respect of the Trust

Securities in accordance with the terms of this Trust Agreement;

 

(E)     the

exercise of all of the rights, powers and privileges of a holder of the Junior

Subordinated Debentures;

 

(F)     the

sending of notices of default and other information regarding the Trust

Securities and the Junior Subordinated Debentures to the Securityholders in

accordance with this Trust Agreement;

 

(G)    the

distribution of the Trust Property in accordance with the terms of this Trust

Agreement;

 

(H)    to the

extent provided in this Trust Agreement, the winding up of the affairs of and

liquidation of the Trust;

 

(I)      after an

Event of Default the taking of any action incidental to the foregoing as the

Property Trustee may from time to time determine is necessary or advisable to

give effect to the terms of this Trust Agreement and protect and conserve the

Trust Property for the benefit of the Securityholders (without consideration of

the effect of any such action on any particular Securityholder);

 

(J)     so long

as the Property Trustee is the Securities Registrar, registering transfers of

the Trust Securities in accordance with this Trust Agreement; and

 

(K)    except as

otherwise provided in this Section 207(a)(ii), the Property Trustee shall have

none of the duties, liabilities, powers or the authority of the Administrative

Trustees set forth in Section 207(a)(i).

 

(b)      So long as this Trust

Agreement remains in effect, the Trust (or the Trustees acting on behalf of the

Trust) shall not undertake any business, activities or transaction except as

expressly provided herein or contemplated hereby.  In particular, the Trustees shall not (i) acquire any investments

or engage in any activities not authorized by this Trust Agreement, (ii) sell,

assign, transfer, exchange, mortgage, pledge, set-off or otherwise dispose of

any of the Trust Property or interests therein, including to Securityholders,

except as expressly provided herein, (iii) take any action that would cause the

Trust to fail or cease to qualify as a “grantor trust” for United States

federal income tax purposes, (iv) incur any indebtedness for borrowed money or

issue any other debt or (v) take or consent to any action that would result in

the placement of a Lien on any of the Trust Property.  The Administrative Trustees shall defend all claims and demands

of all Persons at any time claiming any Lien on any of the Trust Property

adverse to the interest of the Trust or the Securityholders in their capacity

as Securityholders.

 

(c)       In connection with the

issue and sale of the Capital Securities, the Depositor shall have the right

and responsibility to assist the Trust with respect to, or effect on behalf of

the

 

14

 

Trust, the

following (and any actions taken by the Depositor in furtherance of the

following prior to the date of this Trust Agreement are hereby ratified and

confirmed in all respects):

 

(i)       the

preparation and filing by the Trust with the Commission and the execution on

behalf of the Trust of a registration statement on the appropriate form in

relation to the Capital Securities and the Junior Subordinated Debentures,

including any amendments thereto;

 

(ii)      the

determination of the states in which to take appropriate action to qualify or

register for sale all or part of the Capital Securities and to do any and all

such acts, other than actions which must be taken by or on behalf of the Trust,

and advise the Trustees of actions they must take on behalf of the Trust, and

prepare for execution and filing any documents to be executed and filed by the

Trust or on behalf of the Trust, as the Depositor deems necessary or advisable

in order to comply with the applicable laws of any such states;

 

(iii)     the

preparation for filing by the Trust and execution on behalf of the Trust of an

application to the Nasdaq National Market or a national stock exchange or other

organizations for listing upon notice of issuance of any Capital Securities and

to file or cause an Administrative Trustee to file thereafter with such

exchange or organization such notifications and documents as may be necessary

from time to time;

 

(iv)     if

required, the preparation for filing by the Trust with the Commission and the

execution on behalf of the Trust of a registration statement on Form 8-A

relating to the registration of the Capital Securities under Section 12(b) or

12(g) of the Exchange Act, including any amendments thereto;

 

(v)      the

negotiation of the terms of, and the execution and delivery of, the

Underwriting Agreement providing for the sale of the Capital Securities; and

 

(vi)     the

taking of any other actions necessary or desirable to carry out any of the

foregoing activities.

 

(d)      Notwithstanding anything

herein to the contrary, the Administrative Trustees are authorized and directed

to conduct the affairs of the Trust and to operate the Trust so that the Trust

will not be deemed to be an “investment company” required to be registered

under the Investment Company Act, will be classified as a “grantor trust” and

not as an association taxable as a corporation for United States federal income

tax purposes and so that the Junior Subordinated Debentures will be treated as

indebtedness of the Depositor for United States federal income tax purposes. In

this connection, subject to Section 1002, the Depositor and the Administrative

Trustees are authorized to take any action, not inconsistent with applicable

law or this Trust Agreement, that each of the Depositor and the Administrative

Trustees determines in their discretion to be necessary or desirable for such

purposes.

 

15

 

SECTION 208. 

ASSETS OF TRUST.

 

The assets of the

Trust shall consist of the Trust Property.

 

16

 

SECTION 209. 

TITLE TO TRUST PROPERTY.

 

Legal title to all

Trust Property shall be vested at all times in the Property Trustee (in its

capacity as such) and shall be held and administered by the Property Trustee

for the benefit of the Securityholders in accordance with this Trust Agreement.

 

 

ARTICLE III.

PAYMENT ACCOUNT

 

SECTION 301. 

PAYMENT ACCOUNT.

 

(a)       On or prior to the

Closing Date, the Property Trustee shall establish the Payment Account.  The Property Trustee and any agent of the

Property Trustee shall have exclusive control and sole right of withdrawal with

respect to the Payment Account for the purpose of making deposits and

withdrawals from the Payment Account in accordance with this Trust

Agreement.  All monies and other

property deposited or held from time to time in the Payment Account shall be

held by the Property Trustee in the Payment Account for the exclusive benefit

of the Securityholders and for distribution as herein provided, including (and

subject to) any priority of payments provided for herein.

 

(b)      The Property Trustee

shall deposit in the Payment Account, promptly upon receipt, all payments of

principal of or interest on, and any other payments or proceeds with respect

to, the Junior Subordinated Debentures. Amounts held in the Payment Account

shall not be invested by the Property Trustee pending distribution thereof.

 

 

ARTICLE IV.

DISTRIBUTIONS; REDEMPTION

 

SECTION 401. 

DISTRIBUTIONS.

 

(a)       Distributions on the

Trust Securities shall be cumulative, and will accumulate whether or not there

are funds of the Trust available for the payment of Distributions.  Distributions shall accumulate from March

27, 2002, and, except during any Extension Period with respect to the Junior

Subordinated Debentures, shall be payable quarterly in arrears on the 15th day

of April, July, October, and January in each year, commencing July 15,

2002.  The amount of each distribution

due with respect to the Capital Securities will include amounts accrued through

the date the distribution payment is due. 

If any date on which a Distribution is otherwise payable on the Trust

Securities is not a Business Day, then the payment of such Distribution shall

be made on the next succeeding day that is a Business Day (and without any

interest or other payment in respect of any such delay) except that, if such

Business Day is in the next succeeding calendar year, payment of such

Distribution shall be made on the immediately preceding Business Day, in each

case with the same force and effect as if made on such date

 

17

 

(each date on

which distributions are payable in accordance with this Section 401(a) a

“Distribution Date”).

 

(b)      The Trust Securities

represent undivided beneficial interests in the Trust Property, and, as a

practical matter, the Distributions on the Trust Securities shall be payable at

a rate of 8-1/8% per annum of the Liquidation Amount of the Trust

Securities.  The amount of Distributions

payable for any full period shall be computed on the basis of a 360-day year of

twelve 30-day months.  The amount of

Distributions for any partial period shall be computed on the basis of the

number of days elapsed in a 360-day year of twelve 30-day months.  During any Extension Period with respect to

the Junior Subordinated Debentures, Distributions on the Capital Securities will

be deferred for a period equal to the Extension Period.  The amount of Distributions payable for any

period shall include the Additional Amounts, if any.

 

(c)       Distributions on the

Trust Securities shall be made by the Property Trustee solely from the Payment

Account and shall be payable on each Distribution Date only to the extent that

the Trust has funds then on hand and immediately available in the Payment

Account for the payment of such Distributions.

 

(d)           Distributions on the Trust Securities

with respect to a Distribution Date shall be payable to the Holders thereof as

they appear on the Securities Register for the Trust Securities on the relevant

record date, which shall be one Business Day prior to such Distribution Date;

provided, however, that in the event that the Capital Securities do not remain

in book-entry-only form, the relevant record date shall be the 1st day of the

month in which the relevant Distribution Date occurs.

 

SECTION 402. 

REDEMPTION.

 

(a)       On each Debenture

Redemption Date and on the stated maturity of the Junior Subordinated

Debentures, the Trust will be required to redeem a Like Amount of Trust

Securities at the Redemption Price.

 

(b)      Notice of redemption

shall be given by the Property Trustee by first-class mail, postage prepaid,

mailed not less than 30 nor more than 60 days prior to the Redemption Date to

each Holder of Trust Securities to be redeemed, at such Holder’s address

appearing in the Securities Register. 

The Property Trustee shall have no responsibility for the accuracy of

any CUSIP number contained in such notice. 

All notices of redemption shall state:

 

(i)       the

Redemption Date;

 

(ii)      the

Redemption Price;

 

(iii)     the

CUSIP number;

 

18

 

(iv)     if less

than all the Outstanding Trust Securities are to be redeemed, the

identification and the aggregate Liquidation Amount of the particular Trust

Securities to be redeemed; and

 

(v)      that on

the Redemption Date the Redemption Price will become due and payable upon each

such Trust Security to be redeemed and that distributions thereon will cease to

accumulate on and after said date.

 

(c)       The Trust Securities

redeemed on each Redemption Date shall be redeemed at the Redemption Price with

the proceeds from the contemporaneous redemption of Junior Subordinated

Debentures.  Redemptions of the Trust

Securities shall be made and the Redemption Price shall be payable on each

Redemption Date only to the extent that the Trust has immediately available

funds then on hand and available in the Payment Account for the payment of such

Redemption Price.

 

(d)      If the Property Trustee

gives a notice of redemption in respect of any Capital Securities, then, by

12:00 noon, Minneapolis time, on the Redemption Date, subject to Section

402(c), the Property Trustee will, so long as the Capital Securities are in

book-entry-only form, deposit with the Clearing Agency for the Capital

Securities funds sufficient to pay the applicable Redemption Price and will

give such Clearing Agency irrevocable instructions and authority to pay the

Redemption Price to the holders thereof. 

If the Capital Securities are no longer in book-entry-only form, the

Property Trustee, subject to Section 402(c), will deposit with the Paying Agent

funds sufficient to pay the applicable Redemption Price and will give the

Paying Agent irrevocable instructions and authority to pay the Redemption Price

to the Holders thereof upon surrender of their Capital Securities

Certificates.  Notwithstanding the foregoing,

Distributions payable on or prior to the Redemption Date for any Trust

Securities called for redemption shall be payable to the Holders of such Trust

Securities as they appear on the Securities Register for the Trust Securities

on the relevant record dates for the related Distribution Dates.  If notice of redemption shall have been

given and funds deposited as required, then upon the date of such deposit, all

rights of Securityholders holding Trust Securities so called for redemption

will cease, except the right of such Securityholders to receive the Redemption

Price, but without interest on such Redemption Price, and such Securities will

cease to be Outstanding.  In the event

that any date on which any Redemption Price is payable 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), except that, if such Business Day falls

in the next calendar year, such payment will be made on the immediately

preceding Business Day, in each case, with the same force and effect as if made

on such date.  In the event that payment

of the Redemption Price in respect of any Trust Securities called for redemption

is improperly withheld or refused and not paid either by the Trust or by the

Depositor pursuant to the Guarantee, Distributions on such Trust Securities

will continue to accumulate, at the then applicable rate, from the Redemption

Date originally established by the Trust for such Trust Securities to the date

such Redemption Price is actually paid, in which case the actual payment date

will be the date fixed for redemption for purposes of calculating the

Redemption Price.

 

19

 

(e)       Payment of the Redemption

Price on the Trust Securities shall be made to the record holders thereof as

they appear on the Securities Register for the Trust Securities on the relevant

record date, which shall be one Business Day prior to the relevant Redemption

Date; provided, however, that in the event that the Capital Securities do not

remain in book–entry–only form, the relevant record date shall be

the date fifteen days prior to the relevant Redemption Date.

 

(f)       Subject to Section

403(a), if less than all the Outstanding Trust Securities are to be redeemed on

a Redemption Date, then the aggregate Liquidation Amount of Trust Securities to

be redeemed shall be allocated on a pro rata basis (based on Liquidation

Amounts) among the Common Securities and the Capital Securities.  The particular Capital Securities to be

redeemed shall be selected not more than 60 days prior to the Redemption Date

by the Property Trustee from the outstanding Capital Securities not previously

called for redemption, by such method (including, without limitation, by lot)

as the Property Trustee shall deem fair and appropriate and which may provide

for the selection for redemption of portions (equal to $25 or an integral

multiple of $25 in excess thereof) of the Liquidation Amount of Capital Securities

of a denomination larger than $25.  The

Property Trustee shall promptly notify the Securities Registrar in writing of

the Capital Securities selected for redemption and, in the case of any Capital

Securities selected for partial redemption, the Liquidation Amount thereof to

be redeemed.  For all purposes of this

Trust Agreement, unless the context otherwise requires, all provisions relating

to the redemption of Capital Securities shall relate, in the case of any Capital

Securities redeemed or to be redeemed only in part, to the portion of the

Liquidation Amount of Capital Securities which has been or is to be redeemed.

 

SECTION 403. 

SUBORDINATION OF COMMON SECURITIES.

 

(a)       Payment of Distributions

(including Additional Amounts, if applicable) on, and the Redemption Price of,

the Trust Securities, as applicable, shall be made, subject to Section 402(f),

pro rata among the Common Securities and the Capital Securities based on the

Liquidation Amount of the Trust Securities; provided, however, that if on any Distribution

Date or Redemption Date any Event of Default resulting from a Debenture Event

of Default shall have occurred and be continuing, no payment of any

Distribution (including Additional Amounts, if applicable) on, or Redemption

Price of, any Common Security, and no other payment on account of the

redemption, liquidation or other acquisition of Common Securities, shall be

made unless payment in full in cash of all accumulated and unpaid Distributions

(including Additional Amounts, if applicable) on all Outstanding Capital

Securities for all Distribution periods terminating on or prior thereto, or in

the case of payment of the Redemption Price the full amount of such Redemption

Price on all Outstanding Capital Securities then called for redemption, shall

have been made or provided for, and all funds immediately available to the

Property Trustee shall first be applied to the payment in full in cash of all

Distributions (including Additional Amounts, if applicable) on, or the

Redemption Price of, Capital Securities then due and payable.

 

(b)      In the case of the

occurrence of any Event of Default resulting from a Debenture Event of Default,

the Holder of Common Securities will be deemed to have waived any right to

 

20

 

act with respect

to any such Event of Default under this Trust Agreement until the effect of all

such Events of Default with respect to the Capital Securities shall have been

cured, waived or otherwise eliminated.  Until

any such Event of Default under this Trust Agreement with respect to the

Capital Securities shall have been so cured, waived or otherwise eliminated,

the Property Trustee shall act solely on behalf of the Holders of the Capital

Securities and not the 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.

 

SECTION 404. 

PAYMENT PROCEDURES.

 

Payments of

Distributions (including Additional Amounts, if applicable) in respect of the

Capital Securities shall be made by check mailed to the address of the Person

entitled thereto as such address shall appear on the Securities Register or, if

the Capital Securities are held by a Clearing Agency, such Distributions shall

be made to the Clearing Agency in immediately available funds, which shall

credit the relevant Persons’ accounts at such Clearing Agency on the applicable

Distribution Dates.  Payments in respect

of the Common Securities shall be made in such manner as shall be mutually

agreed between the Property Trustee and the Common Securityholder.

 

SECTION 405. 

TAX RETURNS AND REPORTS.

 

The Administrative

Trustees shall prepare (or cause to be prepared), at the Depositor’s expense,

and file all United States federal, state and local tax and information returns

and reports required to be filed by or in respect of the Trust.  In this regard, the Administrative Trustees

shall (a) prepare and file (or cause to be prepared and filed) the appropriate

Internal Revenue Service Form required to be filed in respect of the Trust in

each taxable year of the Trust and (b) prepare and furnish (or cause to be

prepared and furnished) to each Securityholder the appropriate Internal Revenue

Service form required to be furnished to such Securityholder or the information

required to be provided on such form. 

The Administrative Trustees shall provide the Depositor with a copy of

all such returns and reports promptly after such filing or furnishing. The

Property Trustee shall comply with United States federal withholding and backup

withholding tax laws and information reporting requirements with respect to any

payments to Securityholders under the Trust Securities.

 

SECTION 406. 

PAYMENT OF TAXES, DUTIES, ETC. OF THE TRUST.

 

Upon receipt under

the Junior Subordinated Debentures of Additional Sums, the Property Trustee, at

the direction of an Administrative Trustee or the Depositor, shall promptly pay

any taxes, duties or governmental charges of whatsoever nature (other than

withholding taxes) imposed on the Trust by the United States or any other

taxing authority.

 

21

 

SECTION 407. 

PAYMENTS UNDER INDENTURE.

 

Any amount payable

hereunder to any Holder of Capital Securities shall be reduced by the amount of

any corresponding payment such Holder (or any Owner related thereto) has

directly received under the Indenture pursuant to Section 514(b) or (c) hereof.

 

22

 

ARTICLE V.

TRUST SECURITIES

CERTIFICATES

 

SECTION 501. 

INITIAL OWNERSHIP.

 

Upon the creation

of the Trust and the contribution by the Depositor pursuant to Section 203 and

until the issuance of the Trust Securities, and at any time during which no

Trust Securities are outstanding, the Depositor shall be the sole beneficial

owner of the Trust.

 

SECTION 502. 

THE TRUST SECURITIES CERTIFICATES.

 

The Capital

Securities Certificates shall be issued in minimum denominations of $25

Liquidation Amount and integral multiples of $25 in excess thereof, and the

Common Securities Certificates shall be issued in denominations of $25

Liquidation Amount and integral multiples of $25 in excess thereof.  The Trust Securities Certificates shall be

executed on behalf of the Trust by manual signature of at least one

Administrative Trustee.  Trust

Securities Certificates bearing the manual signatures of individuals who were,

at the time when such signatures shall have been affixed, authorized to sign on

behalf of the Trust, shall be validly issued and entitled to the benefits of

this Trust Agreement, notwithstanding that such individuals or any of them

shall have ceased to be so authorized prior to the delivery of such Trust

Securities Certificates or did not hold such offices at the date of delivery of

such Trust Securities Certificates.  A

transferee of a Trust Securities Certificate shall become a Securityholder, and

shall be entitled to the rights and subject to the obligations of a

Securityholder hereunder, upon due registration of such Trust Securities

Certificate in such transferee’s name pursuant to Sections 504, 511 and 513.

 

SECTION 503. 

EXECUTION AND DELIVERY OF TRUST SECURITIES CERTIFICATES.

 

On the Closing Date, the Administrative Trustees shall

cause Trust Securities Certificates, in an aggregate Liquidation Amount as

provided in Sections 204 and 205, to be executed on behalf of the Trust by at

least one of the Administrative Trustees and delivered to or upon the written

order of the Depositor, signed by its President, any Vice President or the

Chief Financial Officer without further corporate action by the Depositor, in

authorized denominations.

 

SECTION 504. 

REGISTRATION OF TRANSFER AND EXCHANGE OF CAPITAL SECURITIES

CERTIFICATES.

 

The Depositor

shall keep or cause to be kept, at the office or agency maintained pursuant to

Section 508, a register or registers for the purpose of registering Trust

Securities Certificates and transfers and exchanges of Capital Securities

Certificates (herein referred to as the “Securities Register”) in which the

registrar designated by the Depositor (the “Securities Registrar”), subject to

such reasonable regulations as it may prescribe, shall provide for the

registration of Capital Securities Certificates and Common Securities

Certificates (subject to

 

23

 

Section 510 in the case

of the Common Securities Certificates) and registration of transfers and

exchanges of Capital Securities Certificates as herein provided.  The Property Trustee shall be the initial

Securities Registrar.

 

Upon surrender for

registration of transfer of any Capital Securities Certificate at the office or

agency maintained pursuant to Section 508, the Administrative Trustees or any

one of them shall execute and deliver, in the name of the designated transferee

or transferees, one or more new Capital Securities Certificates in authorized

denominations of a like aggregate Liquidation Amount dated the date of

execution by such Administrative Trustee or Trustees.  The Securities Registrar shall not be required to register the

transfer of any Capital Securities that have been called for redemption.  At the option of a Holder, Capital

Securities Certificates may be exchanged for other Capital Securities

Certificates in authorized denominations of the same class and of a like

aggregate Liquidation Amount upon surrender of the Capital Securities

Certificates to be exchanged at the office or agency maintained pursuant to

Section 508.

 

Every Capital

Securities Certificate presented or surrendered for registration of transfer or

exchange shall be accompanied by a written instrument of transfer in form

satisfactory to the Property Trustee and the Securities Registrar duly executed

by the Holder or such Holder’s attorney duly authorized in writing.  Each Capital Securities Certificate

surrendered for registration of transfer or exchange shall be cancelled and

subsequently disposed of by the Property Trustee in accordance with its

customary practice. The Trust shall not be required to (i) issue, register the

transfer of, or exchange any Capital Securities during a period beginning at

the opening of business 15 calendar days before the date of mailing of a notice

of redemption of any Capital Securities called for redemption and ending at the

close of business on the day of such mailing or (ii) register the transfer of

or exchange any Capital Securities so selected for redemption, in whole or in

part, except the unredeemed portion of any such Capital Securities being

redeemed in part.

 

No service charge

shall be made for any registration of transfer or exchange of Capital

Securities Certificates, but the Securities Registrar may require payment of a

sum sufficient to cover any tax or governmental charge that may be imposed in

connection with any transfer or exchange of Capital Securities Certificates.

 

SECTION 505. 

MUTILATED, DESTROYED, LOST OR STOLEN TRUST SECURITIES CERTIFICATES.

 

If (a) any

mutilated Trust Securities Certificate shall be surrendered to the Securities

Registrar, or if the Securities Registrar shall receive evidence to its

satisfaction of the destruction, loss or theft of any Trust Securities

Certificate and (b) there shall be delivered to the Securities Registrar and

the Administrative Trustees such security or indemnity as may be required by

them to save each of them harmless, then in the absence of notice that such

Trust Securities Certificate shall have been acquired by a protected purchaser,

the Administrative Trustees, or any one of them, on behalf of the Trust shall

execute and make available for delivery, in exchange for or in lieu of any such

mutilated, destroyed, lost or stolen Trust Securities Certificate, a new Trust

Securities Certificate of like class, tenor and denomination.  In

 

24

 

connection with the

issuance of any new Trust Securities Certificate under this Section, the

Administrative Trustees or the Securities Registrar may require the payment of

a sum sufficient to cover any tax or other governmental charge that may be

imposed in connection therewith.  Any

duplicate Trust Securities Certificate issued pursuant to this Section shall

constitute conclusive evidence of an undivided beneficial interest in the

assets of the Trust, as if originally issued, whether or not the lost, stolen

or destroyed Trust Securities Certificate shall be found at any time.

 

SECTION 506. 

PERSONS DEEMED SECURITYHOLDERS.

 

The Trustees, the

Paying Agent and the Securities Registrar shall treat the Person in whose name

any Trust Securities Certificate shall be registered in the Securities Register

as the owner of such Trust Securities Certificate for the purpose of receiving

Distributions and for all other purposes whatsoever, and neither the Trustees

nor the Securities Registrar shall be bound by any notice to the contrary.

 

SECTION 507. 

ACCESS TO LIST OF SECURITYHOLDERS’ NAMES AND ADDRESSES.

 

At any time when

the Property Trustee is not also acting as the Securities Registrar, the

Administrative Trustees or the Depositor shall furnish or cause to be furnished

to the Property Trustee (a) semi-annually on or before January 1 and July 1 in

each year, a list, in such form as the Property Trustee may reasonably require,

of the names and addresses of the Securityholders as of the most recent Record

Date and (b) promptly after receipt by any Administrative Trustee or the

Depositor of a request therefor from the Property Trustee, such other

information as the Property Trustee may reasonably require in order to enable

the Property Trustee to discharge its obligations under this Trust Agreement,

in each case to the extent such information is in the possession or control of

the Administrative Trustees or the Depositor and is not identical to a

previously supplied list or has not otherwise been received by the Property

Trustee in its capacity as Securities Registrar.  The rights of Securityholders to communicate with other

Securityholders with respect to their rights under this Trust Agreement or

under the Trust Securities, and the corresponding rights of the Trustee shall be

as provided in the Trust Indenture Act. 

Each Holder, by receiving and holding a Trust Securities Certificate,

and each Owner shall be deemed to have agreed not to hold the Depositor, the

Property Trustee or the Administrative Trustees accountable by reason of the

disclosure of its name and address, regardless of the source from which such

information was derived.

 

SECTION 508. 

MAINTENANCE OF OFFICE OR AGENCY.

 

The Administrative

Trustees shall maintain an office or offices or agency or agencies where

Capital Securities Certificates may be surrendered for registration of transfer

or exchange and where notices and demands to or upon the Trustees in respect of

the Trust Securities Certificates may be served.  The Administrative Trustees initially designate the principal

corporate trust office of the Property Trustee, Rodney Square North, 1100 North

Market Street, Wilmington, Delaware 19890-0001, Attn: Corporate Trust

Administration, as the principal

 

25

 

corporate trust office

for such purposes.  The Administrative

Trustees shall give prompt written notice to the Depositor and to the

Securityholders of any change in the location of the Securities Register or any

such office or agency.

 

SECTION 509. 

APPOINTMENT OF PAYING AGENT.

 

The Paying Agent

shall make distributions to Securityholders from the Payment Account and shall

report the amounts of such distributions to the Property Trustee and the

Administrative Trustees.  Any Paying

Agent shall have the revocable power to withdraw funds from the Payment Account

for the purpose of making the Distributions referred to above.  The Administrative Trustees may revoke such

power and remove the Paying Agent if such Trustees determine in their sole

discretion that the Paying Agent shall have failed to perform its obligations

under this Trust Agreement in any material respect.  The Paying Agent shall initially be the Property Trustee, and any

co-paying agent chosen by the Property Trustee, and acceptable to the

Administrative Trustees and the Depositor. 

Any Person acting as Paying Agent shall be permitted to resign as Paying

Agent upon 30 days’ written notice to the Administrative Trustees, the Property

Trustee and the Depositor.  In the event

that the Property Trustee shall no longer be the Paying Agent or a successor

Paying Agent shall resign or its authority to act be revoked, the

Administrative Trustees shall appoint a successor that is acceptable to the

Property Trustee and the Depositor to act as Paying Agent (which shall be a

bank or trust company).  The Administrative

Trustees shall cause such successor Paying Agent or any additional Paying Agent

appointed by the Administrative Trustees to execute and deliver to the Trustees

an instrument in which such successor Paying Agent or additional Paying Agent

shall agree with the Trustees that as Paying Agent, such successor Paying Agent

or additional Paying Agent will hold all sums, if any, held by it for payment

to the Securityholders in trust for the benefit of the Securityholders entitled

thereto until such sums shall be paid to such Securityholders.  The Paying Agent shall return all unclaimed

funds to the Property Trustee and upon removal of a Paying Agent such Paying

Agent shall also return all funds in its possession to the Property

Trustee.  The provisions of Sections

801, 803 and 806 shall apply to the Property Trustee also in its role as Paying

Agent, for so long as the Property Trustee shall act as Paying Agent and, to

the extent applicable, to any other paying agent appointed hereunder.  Any reference in this Agreement to the

Paying Agent shall include any co-paying agent unless the context requires

otherwise.

 

SECTION 510.  OWNERSHIP OF COMMON SECURITIES BY DEPOSITOR.

 

On the Closing

Date, the Depositor shall acquire and retain beneficial and record ownership of

the Common Securities.  To the fullest

extent permitted by law, any attempted transfer of the Common Securities (other

than a transfer in connection with a merger or consolidation of the Depositor

into another corporation pursuant to Section 12.1 of the Indenture) shall be

void.  The Administrative Trustees shall

cause each Common Securities Certificate issued to the Depositor to contain a

legend stating “THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT TO THE DEPOSITOR OR

AN AFFILIATE OF THE DEPOSITOR IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 510

OF THE TRUST AGREEMENT AND ONLY IN CONNECTION WITH A SIMULTANEOUS

 

26

 

DELEGATION AND ASSIGNMENT

OF THE EXPENSE AGREEMENT REFERRED TO THEREIN”.

 

27

 

SECTION 511. 

BOOK-ENTRY CAPITAL SECURITIES CERTIFICATES; COMMON SECURITIES

CERTIFICATE.

 

(a)       The Capital Securities

Certificates, upon original issuance, will be issued in the form of a

typewritten Capital Securities Certificate or Certificates representing

Book-Entry Capital Securities Certificates, to be delivered to or held on

behalf of The Depository Trust Company, the initial Clearing Agency, by, or on

behalf of, the Trust.  Such Book-Entry

Capital Securities Certificate or Certificates shall initially be registered on

the Securities Register in the name of Cede & Co., the nominee of the

initial Clearing Agency, and no beneficial owner will receive a Definitive

Capital Securities Certificate representing such beneficial owner’s interest in

such Capital Securities, except as provided in Section 513.  Unless and until Definitive Capital

Securities Certificates have been issued to beneficial owners pursuant to

Section 513:

 

(i)       the

provisions of this Section 511(a) shall be in full force and effect;

 

(ii)      the

Securities Registrar, the Paying Agent and the Trustees shall be entitled to

deal with the Clearing Agency for all purposes of this Trust Agreement relating

to the Book-Entry Capital Securities Certificates (including the payment of the

Liquidation Amount of and Distributions on the Book-Entry Capital Securities)

as the sole Holder of Book-Entry Capital Securities and shall have no

obligations to the Owners thereof;

 

(iii)     to the

extent that the provisions of this Section 511 conflict with any other

provisions of this Trust Agreement, the provisions of this Section 511 shall

control; and

 

(iv)     the

rights of the Owners of the Book-Entry Capital Securities Certificates shall be

exercised only through the Clearing Agency and shall be limited to those

established by law and agreements between such Owners and the Clearing Agency

and/or the Clearing Agency Participants. 

Pursuant to the Certificate Depository Agreement, unless and until

Definitive Capital Securities Certificates are issued pursuant to Section 513,

the initial Clearing Agency will make book-entry transfers among the Clearing

Agency Participants and will receive and transmit payments on the Capital

Securities to such Clearing Agency Participants.  Any Clearing Agency designated pursuant hereto will not be deemed

an agent of the Trustees for any purpose.

 

(b)      A single Common

Securities Certificate representing the Common Securities shall be issued to

the Depositor in the form of a definitive Common Securities Certificate.

 

SECTION 512. 

NOTICES TO CLEARING AGENCY.

 

To the extent that

a notice or other communication to the Owners is required under this Trust

Agreement, unless and until Definitive Capital Securities Certificates shall

have been issued to Owners pursuant to Section 513, the Trustees shall give all

such notices and

 

28

 

communications specified

herein to be given to Owners to the Clearing Agency, and shall have no

obligations to the Owners.

 

SECTION 513. 

DEFINITIVE CAPITAL SECURITIES CERTIFICATES.

 

If (a) the

Depositor advises the Trustees in writing that the Clearing Agency is no longer

willing or able to properly discharge its responsibilities with respect to the

Capital Securities Certificates, and the Depositor is unable to locate a

qualified successor, (b) the Depositor at its option advises the Trustees in

writing that it elects to terminate the book-entry system through the Clearing

Agency, or (c) after the occurrence of a Debenture Event of Default, Owners of

Capital Securities Certificates representing beneficial interests aggregating

at least a majority of the Liquidation Amount advise the Property Trustee in

writing that the continuation of a book-entry system through the Clearing

Agency is no longer in the best interests of the Owners of Capital Securities

Certificates, then the Property Trustee shall notify the Clearing Agency, and

the Clearing Agency shall notify all Owners of Capital Securities Certificates,

of the occurrence of any such event and of the availability of the Definitive

Capital Securities Certificates to Owners of such class or classes, as

applicable, requesting the same.  Upon

surrender to the Property Trustee of the typewritten Capital Securities

Certificate or Certificates representing the Book-Entry Capital Securities

Certificates by the Clearing Agency, accompanied by registration instructions,

the Administrative Trustees, or any one of them, shall execute the Definitive

Capital Securities Certificates in accordance with the instructions of the

Clearing Agency.  Neither the Securities

Registrar nor the Trustees shall be liable for any delay in delivery of such

instructions and may conclusively rely on, and shall be protected in relying

on, such instructions.  Upon the issuance

of Definitive Capital Securities Certificates, the Trustees shall recognize the

holders of the Definitive Capital Securities Certificates as

Securityholders.  The Definitive Capital

Securities Certificates shall be printed, lithographed or engraved or may be

produced in any other manner as is reasonably acceptable to the Administrative

Trustees, as evidenced by the execution thereof by the Administrative Trustees

or any one of them.

 

SECTION 514.  RIGHTS OF SECURITYHOLDERS.

 

(a)       The legal title to the

Trust Property is vested exclusively in the Property Trustee (in its capacity

as such) in accordance with Section 209, and the Securityholders shall not have

any right or title therein other than the undivided beneficial interest in the

assets of the Trust conferred by their Trust Securities and they shall have no

right to call for any partition or division of property, profits or rights of

the Trust except as described below. The Trust Securities shall be personal

property giving only the rights specifically set forth therein and in this

Trust Agreement.  The Trust Securities

shall have no preemptive or similar rights. 

When issued and delivered to Holders of the Capital Securities against

payment of the purchase price therefor, the Capital Securities will be fully

paid and nonassessable, beneficial interests in the Trust.  The Holders of the Capital Securities, in

their capacities as such, shall be entitled to the same limitation of personal

liability extended to stockholders of private corporations for profit organized

under the General Corporation Law of the State of Delaware.

 

29

 

(b)      For so long as any

Capital Securities remain Outstanding, if, upon a Debenture Event of Default,

the Debenture Trustee fails or the holders of not less than 25% in principal

amount of the outstanding Junior Subordinated Debentures fail to declare the

principal of all of the Junior Subordinated Debentures to be immediately due

and payable, the Holders of at least 25% in Liquidation Amount of the Capital

Securities then Outstanding shall have such right by a notice in writing to the

Depositor and the Debenture Trustee; and upon any such declaration such

principal amount of and the accrued interest on all of the Junior Subordinated

Debentures shall become immediately due and payable, provided that the payment

of principal and interest on such Junior Subordinated Debentures shall remain

subordinated to the extent provided in the Indenture.  If, as a result of a Debenture Event of Default, the Debenture

Trustee or the holders of not less than 25% in aggregate outstanding principal

amount of the Junior Subordinated Debentures have declared the Junior

Subordinated Debentures due and payable and if such default has been cured and

a sum sufficient to pay all matured installments due (otherwise than by

acceleration) under the Junior Subordinated Debentures has been deposited with

the Debenture Trustee, then (if the holders of not less than a majority in

aggregate outstanding principal amount of Junior Subordinated Debentures have

not annulled such declaration and waived such default) the holders of a

majority in aggregate Liquidation Amount of the Capital Securities may annul

such declaration and waive such default.

 

(c)       For so long as any Capital

Securities remain outstanding, upon a Debenture Event of Default arising from

the failure to pay interest or principal on the Junior Subordinated Debentures,

the Holders of any Capital Securities then Outstanding shall, to the fullest

extent permitted by law, have the right to directly institute proceedings for

enforcement of payment to such Holders of principal of or interest on the

Junior Subordinated Debentures having a principal amount equal to the

Liquidation Amount of the Capital Securities of such Holders.

 

ARTICLE VI.

ACTS OF

SECURITYHOLDERS; MEETINGS; VOTING

 

SECTION 601.  LIMITATIONS ON VOTING RIGHTS.

 

(a)       Except as provided in

this Section, in Sections 514, 810 and 1002 and in the Indenture and as

otherwise required by law, no Holder of Capital Securities shall have any right

to vote or in any manner otherwise control the administration, operation and

management of the Trust or the obligations of the parties hereto, nor shall

anything herein set forth, or contained in the terms of the Trust Securities

Certificates, be construed so as to constitute the Securityholders from time to

time as partners or members of an association.

 

(b)      So long as any Junior

Subordinated 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 the Debenture Trustee with respect to such Junior Subordinated

Debentures, (ii) waive any past default which is waivable under Article VII of

the Indenture, (iii) exercise any right to rescind or annul a declaration that

the principal of all the Junior Subordinated Debentures shall be due and

payable or (iv) consent to any amendment, modification or termination of the

Indenture or the

 

30

 

Junior

Subordinated Debentures, where such consent shall be required, without, in each

case, obtaining the prior approval of the Holders of at least 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 outstanding Junior Subordinated Debentures affected thereby, no such

consent shall be given by the Property Trustee without the prior written

consent of each Holder of Capital Securities. 

The Trustees shall not revoke any action previously authorized or

approved by a vote of the Holders of the Outstanding Capital Securities, except

by a subsequent vote of the Holders of the Outstanding Capital Securities.  The Property Trustee shall notify each

Holder of the Outstanding Capital Securities of any notice of default received

from the Debenture Trustee with respect to the Junior Subordinated Debentures.

In addition to obtaining the foregoing approvals of the Holders of the Capital

Securities, prior to taking any of the foregoing actions, the Trustees shall,

at the expense of the Depositor, obtain an Opinion of Counsel experienced in

such matters to the effect that the Trust will continue to be classified as a

grantor trust and not as an association taxable as a corporation for United

States federal income tax purposes on account of such action.

 

(c)       If any proposed

amendment to the Trust Agreement provides for, or the Trustees otherwise

propose to effect, (i) any action that would adversely affect in any material

respect the powers, preferences or special rights of the Capital Securities,

whether by way of amendment to the Trust Agreement or otherwise, or (ii) the dissolution,

winding-up or termination of the Trust, other than pursuant to the terms of

this Trust Agreement, then the Holders of Outstanding Capital Securities as a

class will be entitled to vote on such amendment or proposal and such amendment

or proposal shall not be effective except with the approval of the Holders of

at least a majority in Liquidation Amount of the Outstanding Capital

Securities.  No amendment to this Trust

Agreement may be made if, as a result of such amendment, the Trust would cease

to be classified as a grantor trust or would be classified as an association

taxable as a corporation for United States federal income tax purposes.

 

SECTION 602. 

NOTICE OF MEETINGS.

 

Notice of all

meetings of the Holders of Capital Securities, stating the time, place and

purpose of the meeting, shall be given by the Property Trustee pursuant to

Section 1008 to each Holder of Capital Securities of record, at and

Securityholder’s registered address, at least 15 days and not more than 90 days

before the meeting.  At any such

meeting, any business properly before the meeting may be so considered whether

or not stated in the notice of the meeting. 

Any adjourned meeting may be held as adjourned without further notice.

 

31

 

SECTION 603.  MEETINGS OF HOLDERS OF CAPITAL SECURITIES.

 

No annual meeting

of Securityholders is required to be held. 

The Administrative Trustees, however, shall call a meeting of

Securityholders to vote on any matter upon the written request of the Holders

of 25% of the Outstanding Capital Securities (based upon their aggregate

Liquidation Amount) and the Administrative Trustees or the Property Trustee

may, at any time in their discretion, call a meeting of Preferred

Securityholders to vote on any matters as to which the Preferred

Securityholders are entitled to vote.

 

Holders of record

of 50% of the Outstanding Capital Securities (based upon their aggregate

Liquidation Amount), present in person or by proxy, shall constitute a quorum

at any meeting of Securityholders.

 

If a quorum is

present at a meeting, an affirmative vote by the Holders of record present, in

person or by proxy, holding a majority of the Capital Securities (based upon

their aggregate Liquidation Amount) held by the Holders of Capital Securities

of record present, either in person or by proxy, at such meeting shall

constitute the action of the Securityholders, unless this Trust Agreement

requires a greater number of affirmative votes.

 

SECTION 604. 

VOTING RIGHTS.

 

Securityholders

shall be entitled to one vote for each $25 of Liquidation Amount represented by

their Trust Securities in respect of any matter as to which such

Securityholders are entitled to vote.

 

SECTION 605. 

PROXIES, ETC.

 

At any meeting of

Securityholders, any Securityholder entitled to vote thereat may vote by proxy,

provided that no proxy shall be voted at any meeting unless it shall have been

placed on file with the Administrative Trustees, or with such other officer or

agent of the Trust as the Administrative Trustees may direct, for verification

prior to the time at which such vote shall be taken. When Trust Securities are

held jointly by several Persons, any one of them may vote at any meeting in

person or by proxy in respect of such Trust Securities, but if more than one of

them shall be present at such meeting in person or by proxy, and such joint

owners or their proxies so present disagree as to any vote to be cast, such

vote shall not be received in respect of such Trust Securities. A proxy

purporting to be executed by or on behalf of a Securityholder shall be deemed

valid unless challenged at or prior to its exercise, and, the burden of proving

invalidity shall rest on the challenger. 

No proxy shall be valid more than three years after its date of execution.

 

SECTION 606. 

SECURITYHOLDER ACTION BY WRITTEN CONSENT.

 

Any action which

may be taken by Securityholders at a meeting may be taken without a meeting and

without prior notice if Securityholders holding a majority of all Outstanding

Trust Securities (based upon their aggregate Liquidation Amount) entitled to

vote in respect of such

 

32

 

action (or such larger

proportion thereof as shall be required by any express provision of this Trust

Agreement) shall consent to the action in writing (based upon their aggregate

Liquidation Amount).

 

SECTION 607. 

RECORD DATE FOR VOTING AND OTHER PURPOSES.

 

For the purposes

of determining the Securityholders who are entitled to notice of and to vote at

any meeting or by written consent, or to participate in any Distribution on the

Trust Securities in respect of which a record date is not otherwise provided

for in this Trust Agreement, or for the purpose of any other action, the

Administrative Trustees may from time to time fix a date, not more than 90 days

prior to the date of any meeting of Securityholders or the payment of

Distribution or other action, as the case may be, as a record date for the

determination of the identity of the Securityholders of record for such purposes.

 

SECTION 608.  ACTS OF SECURITYHOLDERS.

 

Any request,

demand, authorization, direction, notice, consent, waiver or other action

provided or permitted by this Trust Agreement to be given, made or taken by

Securityholders or Owners may be embodied in and evidenced by one or more

instruments of substantially similar tenor signed by such Securityholders or

Owners in person or by an agent duly appointed in writing; and, except as

otherwise expressly provided herein, such action shall become effective when such

instrument or instruments are delivered to an Administrative Trustee.  Such instrument or instruments (and the

action embodied therein and evidenced thereby) are herein sometimes referred to

as the “Act” of the Securityholders or Owners signing such instrument or

instruments.  Proof of execution of any

such instrument or of a writing appointing any such agent shall be sufficient

for any purpose of this Trust Agreement and (subject to Section 801) conclusive

in favor of the Trustees, if made in the manner provided in this Section.

 

The fact and date

of the execution by any Person of any such instrument or writing may be proved

by the affidavit of a witness of such execution or by a certificate of a notary

public or other officer authorized by law to take acknowledgments of deeds,

certifying that the individual signing such instrument or writing acknowledged

to him or her the execution thereof. 

Where such execution is by a signer acting in a capacity other than such

signer’s individual capacity, such certificate or affidavit shall also

constitute sufficient proof of such signer’s authority.  The fact and date of the execution of any

such instrument or writing, or the authority of the Person executing the same,

may also be proved in any other manner which any Trustee receiving the same

deems sufficient.

 

The ownership of

Capital Securities shall be proved by the Securities Register.

 

Any request,

demand, authorization, direction, notice, consent, waiver or other Act of the

Securityholder of any Trust Security shall bind every future Securityholder of

the same Trust Security and the Securityholder of every Trust Security issued

upon the registration of transfer thereof or in exchange therefor or in lieu

thereof in respect of anything done, omitted or suffered

 

33

 

to be done by the

Trustees or the Trust in reliance thereon, whether or not notation of such

action is made upon such Trust Security.

 

Without limiting

the foregoing, a Securityholder entitled hereunder to take any action hereunder

with regard to any particular Trust Security may do so with regard to all or

any part of the Liquidation Amount of such Trust Security or by one or more

duly appointed agents each of which may do so pursuant to such appointment with

regard to all or any part of such Liquidation Amount.

 

SECTION 609.  INSPECTION OF RECORDS.

 

Upon reasonable

notice to the Administrative Trustees and the Property Trustee, the records of

the Trust shall be open to inspection by Securityholders during normal business

hours for any purpose reasonably related to such Securityholder’s interest as a

Securityholder.

 

 

ARTICLE VII.

REPRESENTATIONS

AND WARRANTIES

 

SECTION 701. 

REPRESENTATIONS AND WARRANTIES OF THE BANK AND THE PROPERTY TRUSTEE.

 

The Bank and the

Property Trustee, each severally on behalf of and as to itself, as of the date

hereof, and each Successor Property Trustee at the time of the Successor

Property Trustee’s acceptance of its appointment as Property Trustee hereunder

(the term “Bank” being used to refer to such Successor Property Trustee in its

separate corporate capacity), hereby represents and warrants (as applicable)

for the benefit of the Depositor and the Securityholders that:

 

(a)       the Bank is a Delaware

banking corporation duly organized, validly existing and in good standing under

the laws of the State of Delaware;

 

(b)      each of the Property

Trustee and the Bank has full corporate power, authority and legal right to

execute, deliver and perform its obligations under this Trust Agreement and has

taken all necessary action to authorize the execution, delivery and performance

by it of this Trust Agreement;

 

(c)       this Trust Agreement has

been duly authorized, executed and delivered by each of the Property Trustee

and the Bank and constitutes the valid and legally binding agreement of each of

the Property Trustee and the Bank enforceable against it in accordance with its

terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,

moratorium and similar laws of general applicability relating to or affecting

creditors’ rights and to general equity principles;

 

(d)      the execution, delivery

and performance by each of the Property Trustee and the Bank of this Trust

Agreement have been duly authorized by all necessary corporate or other

 

34

 

action on the part

of the Property Trustee and the Bank and does not require any approval of the

stockholders of the Property Trustee or the Bank and such execution, delivery

and performance will not (i) violate the Property Trustee’s or the Bank’s

charter or by-laws, (ii) violate any provision of, or constitute, with or

without notice or lapse of time, a default under, or result in the creation or

imposition of, any Lien on any properties included in the Trust Property

pursuant to the provisions of, any indenture, mortgage, credit agreement,

license or other agreement or instrument to which the Property Trustee or the

Bank is a party or by which it is bound, or (iii) violate any law, governmental

rule or regulation of the United States or the State of Delaware, as the case

may be, governing the banking or trust powers of the Bank or the Property

Trustee, as the case may be, or any order, judgment or decree applicable to the

Property Trustee or the Bank;

 

(e)       neither the

authorization, execution or delivery by the Property Trustee or the Bank of

this Trust Agreement nor the consummation of any of the transactions by the

Property Trustee or the Bank contemplated herein or therein requires the consent

or approval of, the giving of notice to, the registration with or the taking of

any other action with respect to, any governmental authority or agency under

any existing law of the State of Delaware governing the banking or trust powers

of the Bank or the Property Trustee, as the case may be; and

 

(f)       there are no proceedings

pending or, to the best of the Bank’s or the Property Trustee’s knowledge,

threatened against or affecting the Bank or the Property Trustee, as the case

may be, in any court or before any governmental authority, agency or

arbitration board or tribunal which, individually or in the aggregate, would

materially and adversely affect the Trust or would question the right, power

and authority of the Bank or the Property Trustee, as the case may be, to enter

into or perform its obligations as one of the Trustees under this Trust

Agreement.

 

SECTION 702.  REPRESENTATIONS AND WARRANTIES OF THE

DELAWARE BANK AND THE DELAWARE TRUSTEE.

 

The Delaware Bank

and the Delaware Trustee, each severally on behalf of and as to itself, as of

the date hereof, and each Successor Delaware Trustee at the time of the

Successor Delaware Trustee’s acceptance of its appointment as Delaware Trustee

hereunder (the term “Delaware Bank” being used to refer to such Successor

Delaware Trustee in its separate corporate capacity), hereby represents and

warrants (as applicable) for the benefit of the Depositor and the

Securityholders that:

 

(a)       the Delaware Bank is a

Delaware banking corporation duly organized, validly existing and in good

standing under the laws of the State of Delaware;

 

(b)      each of the Delaware

Trustee and the Delaware Bank has full corporate power, authority and legal

right to execute, deliver and perform its obligations under this Trust

Agreement and has taken all necessary action to authorize the execution,

delivery and performance by it of this Trust Agreement;

 

35

 

(c)       this Trust Agreement has

been duly authorized, executed and delivered by each of the Delaware Trustee

and the Delaware Bank and constitutes the valid and legally binding agreement

of each of the Delaware Trustee and the Delaware Bank enforceable against it in

accordance with its terms, subject to bankruptcy, insolvency, fraudulent

transfer, reorganization, moratorium and similar laws of general applicability

relating to or affecting creditors’ rights and to general equity principles;

 

(d)      the execution, delivery

and performance by each of the Delaware Trustee and the Delaware Bank of this

Trust Agreement have been duly authorized by all necessary corporate or other

action on the part of the Delaware Trustee and the Delaware Bank and does not

require any approval of the stockholders of the Delaware Trustee or the

Delaware Bank and such execution, delivery and performance will not (i) violate

the Delaware Trustee’s or the Delaware Bank’s charter or by-laws, (ii) violate

any provision of, or constitute, with or without notice or lapse of time, a

default under, or result in the creation or imposition of, any Lien on any

properties included in the Trust Property pursuant to the provisions of, any

indenture, mortgage, credit agreement, license or other agreement or instrument

to which the Delaware Bank or the Delaware Trustee is a party or by which it is

bound, or (iii) violate any law, governmental rule or regulation of the United

States or the State of Delaware, as the case may be, governing the banking or

trust powers of the Delaware Bank or the Delaware Trustee, as the case may be,

or any order, judgment or decree applicable to the Delaware Bank or the

Delaware Trustee;

 

(e)       neither the

authorization, execution or delivery by the Delaware Trustee or the Delaware

Bank of this Trust Agreement nor the consummation of any of the transactions by

the Delaware Trustee or the Delaware Bank contemplated herein or therein

requires the consent or approval of, the giving of notice to, the registration

with or the taking of any other action with respect to, any governmental

authority or agency under any existing law of the State of Delaware governing

the banking or trust powers of the Delaware Bank or the Delaware Trustee, as

the case may be; and

 

(f)       there are no proceedings

pending or, to the best of the Delaware Bank’s or the Delaware Trustee’s

knowledge, threatened against or affecting the Delaware Bank or the Delaware

Trustee, as the case may be, in any court or before any governmental authority,

agency or arbitration board or tribunal which, individually or in the

aggregate, would materially and adversely affect the Trust or would question

the right, power and authority of the Delaware Bank or the Delaware Trustee, as

the case may be, to enter into or perform its obligations as one of the

Trustees under this Trust Agreement.

 

SECTION 703. 

REPRESENTATIONS AND WARRANTIES OF DEPOSITOR.

 

The Depositor

hereby represents and warrants for the benefit of the Securityholders that:

 

(a)       the Trust Securities

Certificates issued on the Closing Date on behalf of the Trust have been duly

authorized and will have been duly and validly executed, issued and delivered

by the Administrative Trustees pursuant to the terms and provisions of, and in

accordance with the

 

36

 

requirements of,

this Trust Agreement and the Securityholders will be, as of such date, entitled

to the benefits of this Trust Agreement; and

 

(b)      there are no taxes, fees

or other governmental charges payable by the Trust (or the Trustees on behalf

of the Trust) under the laws of the State of Delaware or any political

subdivision thereof in connection with the execution, delivery and performance

by the Bank, the Property Trustee, the Delaware Bank or the Delaware Trustee,

as the case may be, of this Trust Agreement.

 

 

ARTICLE VIII.

THE TRUSTEES

 

SECTION 801.  CERTAIN DUTIES AND RESPONSIBILITIES.

 

(a)       The duties and

responsibilities of the Trustees shall be as provided by this Trust Agreement

and, in the case of the Property Trustee, by the Trust Indenture Act.  Notwithstanding the foregoing, no provision

of this Trust Agreement shall require the Trustees to expend or risk their own

funds or otherwise incur any financial liability in the performance of any of

their duties hereunder, or in the exercise of any of their rights or powers, if

they shall have reasonable grounds for believing that repayment of such funds

or adequate indemnity against such risk or liability is not reasonably assured

to it.  No Administrative Trustee nor

the Delaware Trustee shall be liable for such Trustee’s acts or omissions

hereunder except as a result of such Trustee’s own gross negligence or willful

misconduct.  The Property Trustee’s

liability shall be determined under the Trust Indenture Act.  Whether or not therein expressly so

provided, every provision of this Trust Agreement relating to the conduct or

affecting the liability of or affording protection to the Trustees shall be

subject to the provisions of this Section. 

To the extent that, at law or in equity, a Trustee has duties (including

fiduciary duties) and liabilities relating thereto to the Trust or to the

Securityholders, such Trustee shall not be liable to the Trust or to any

Securityholder for such Trustee’s good faith reliance on the provisions of this

Trust Agreement.  To the fullest extent

permitted by law, the provisions of this Trust Agreement, to the extent that

they restrict the duties and liabilities of the Trustees otherwise existing at

law or in equity, are agreed by the Depositor and the Securityholders to

replace such other duties and liabilities of the Trustees.

 

(b)      All payments made by the

Property Trustee or a Paying Agent in respect of the Trust Securities shall be

made only from the revenue and proceeds from the Trust Property and only to the

extent that there shall be sufficient revenue or proceeds from the Trust

Property to enable the Property Trustee or a Paying Agent to make payments in

accordance with the terms hereof.  Each

Securityholder, by such Securityholder’s acceptance of a Trust Security, agrees

that such Securityholder will look solely to the revenue and proceeds from the

Trust Property to the extent legally available for distribution to such

Securityholder as herein provided and that the Trustees are not personally

liable to such Securityholder for any amount distributable in respect of any

Trust Security or for any other liability in respect of any Trust Security.

This Section 801(b) does not limit the liability of the Trustees expressly set

forth elsewhere in this Trust Agreement or, in the case of the Property

Trustee, in the Trust Indenture Act.

 

37

 

(c)       No provision of this

Trust Agreement shall be construed to relieve the Property Trustee from

liability for its own negligent action, its own negligent failure to act, or

its own willful misconduct, except that:

 

(i)       the

Property Trustee shall not be liable for any error of judgment made in good

faith by an authorized officer of the Property Trustee, unless it shall be

proved that the Property Trustee was negligent in ascertaining the pertinent

facts;

 

(ii)      the

Property Trustee shall not be liable with respect to any action taken or

omitted to be taken by it in good faith in accordance with the direction of the

Holders of not less than a majority in Liquidation Amount of the Trust

Securities relating to the time, method and place of conducting any proceeding

for any remedy available to the Property Trustee, or exercising any trust or

power conferred upon the Property Trustee under this Trust Agreement;

 

(iii)     the

Property Trustee’s sole duty with respect to the custody, safe keeping and

physical preservation of the Subordinated Debentures and the Payment Account

shall be to deal with such Property in a similar manner as the Property Trustee

deals with similar property for its own account, subject to the protections and

limitations on liability afforded to the Property Trustee under this Trust

Agreement and the Trust Indenture Act;

 

(iv)     the

Property Trustee shall not be liable for any interest on any money received by

it except as it may otherwise agree with the Depositor and money held by the

Property Trustee need not be segregated from other funds held by it except in

relation to the Payment Account maintained by the Property Trustee pursuant to

Section 301 and except to the extent otherwise required by law; and

 

(v)      the

Property Trustee shall not be responsible for monitoring the compliance by the

Administrative Trustees or the Depositor with their respective duties under

this Trust Agreement, nor shall the Property Trustee be liable for the

negligence, default or misconduct of the Administrative Trustees or the

Depositor.

 

SECTION 802. 

CERTAIN NOTICES.

 

(a)       Within 5 Business Days

after the occurrence of any Event of Default actually known to the Property

Trustee, the Property Trustee shall transmit, in the manner and to the extent

provided in Section 1008, notice of such Event of Default to the

Securityholders, the Administrative Trustees and the Depositor, unless such

Event of Default shall have been cured or waived.  For purposes of this Section the term “Event of Default” means

any event that is, or after notice or lapse of time or both would become, an

Event of Default.

 

(b)      The Administrative

Trustees shall transmit, to the Securityholders in the manner and to the extent

provided in Section 1008, notice of the Depositor’s election to begin or

further extend an Extension Period on the Junior Subordinated Debentures

(unless such election shall

 

38

 

have been revoked)

within the time specified for transmitting such notice to the holders of the

Junior Subordinated Debentures pursuant to the Indenture as originally

executed.

 

SECTION 803.  CERTAIN RIGHTS OF PROPERTY TRUSTEE.

 

Subject to the

provisions of Section 801:

 

(a)       the Property Trustee may

rely and shall be protected in acting or refraining from acting in good faith

upon any resolution, Opinion of Counsel, certificate, written representation of

a Holder or transferee, certificate of auditors or any other certificate,

statement, instrument, opinion, report, notice, request, consent, order,

appraisal, bond, debenture, note, other evidence of indebtedness or other paper

or document believed by it to be genuine and to have been signed or presented

by the proper party or parties;

 

(b)      if (i) in performing its

duties under this Trust Agreement the Property Trustee is required to decide

between alternative courses of action or (ii) in construing any of the

provisions of this Trust Agreement the Property Trustee finds the same

ambiguous or inconsistent with other provisions contained herein or (iii) the

Property Trustee is unsure of the application of any provision of this Trust

Agreement, then, except as to any matter as to which the Preferred

Securityholders are entitled to vote under the terms of this Trust Agreement,

the Property Trustee shall deliver a notice to the Depositor requesting written

instructions of the Depositor as to the course of action to be taken and the

Property Trustee shall take such action, or refrain from taking such action, as

the Property Trustee shall be instructed in writing to take, or to refrain from

taking, by the Depositor; provided, however, that if the Property Trustee does

not receive such instructions of the Depositor within ten Business Days after

it has delivered such notice, or such reasonably shorter period of time set

forth in such notice (which to the extent practicable shall not be less than

two Business Days), it may, but shall be under no duty to, take or refrain from

taking such action not inconsistent with this Trust Agreement as it shall deem

advisable and in the best interests of the Securityholders, in which event the

Property Trustee shall have no liability except for its own bad faith,

negligence or willful misconduct;

 

(c)       any direction or act of

the Depositor or the Administrative Trustees contemplated by this Trust

Agreement shall be sufficiently evidenced by an Officers’ Certificate;

 

(d)      whenever in the

administration of this Trust Agreement, the Property Trustee shall deem it

desirable that a matter be established before undertaking, suffering or

omitting any action hereunder, the Property Trustee (unless other evidence is

herein specifically prescribed) may, in the absence of bad faith on its part,

request and conclusively rely upon an Officer’s Certificate which, upon receipt

of such request, shall be promptly delivered by the Depositor or the

Administrative Trustees;

 

(e)       the Property Trustee

shall have no duty to see to any recording, filing or registration of any

instrument (including any financing or continuation statement or any filing

under tax or securities laws) or any rerecording, refiling or reregistration

thereof;

 

39

 

(f)       the Property Trustee may

consult with counsel of its choice and the advice of such counsel shall be full

and complete authorization and protection in respect of any action taken,

suffered or omitted by it hereunder in good faith and in reliance thereon and

in accordance with such advice (such counsel may be counsel to the Depositor or

any of its Affiliates, and may include any of its employees); the Property

Trustee shall have the right at any time to seek instructions concerning the

administration of this Trust Agreement from any court of competent

jurisdiction;

 

(g)      the Property Trustee

shall be under no obligation to exercise any of the rights or powers vested in

it by this Trust Agreement at the request or direction of any of the

Securityholders pursuant to this Trust Agreement, unless such Securityholders

shall have offered to the Property Trustee reasonable security or indemnity

against the costs, expenses and liabilities which might be incurred by it in

compliance with such request or direction;

 

(h)      the Property Trustee

shall not be bound to make any investigation into the facts or matters stated

in any resolution, certificate, statement, instrument, opinion, report, notice,

request, consent, order, approval, bond, debenture, note or other evidence of

indebtedness or other paper or document, unless requested in writing to do so

by one or more Securityholders, but the Property Trustee may make such further

inquiry or investigation into such facts or matters as it may see fit;

 

(i)        the Property Trustee

may execute any of the trusts or powers hereunder or perform any duties

hereunder either directly or by or through its agents or attorneys, provided

that the Property Trustee shall be responsible for its own negligence or

recklessness with respect to selection of any agent or attorney appointed by it

hereunder;

 

(j)        whenever in the administration

of this Trust Agreement the Property Trustee shall deem it desirable to receive

instructions with respect to enforcing any remedy or right or taking any other

action hereunder, the Property Trustee (i) may request instructions from the

Holders of the Trust Securities which instructions may only be given by the

Holders of the same proportion in Liquidation Amount of the Trust Securities as

would be entitled to direct the Property Trustee under the terms of the Trust

Securities in respect of such remedy, right or action, (ii) may refrain from

enforcing such remedy or right or taking such other action until such

instructions are received, and (iii) shall be protected in acting in accordance

with such instructions; and

 

(k)       except as otherwise

expressly provided by this Trust Agreement, the Property Trustee shall not be

under any obligation to take any action that is discretionary under the

provisions of this Trust Agreement.  No

provision of this Trust Agreement shall be deemed to impose any duty or obligation

on the Property Trustee to perform any act or acts or exercise any right,

power, duty or obligation conferred or imposed on it, in any jurisdiction in

which it shall be illegal, or in which the Property Trustee shall be

unqualified or incompetent in accordance with applicable law, to perform any

such act or acts, or to exercise any such right, power, duty or

obligation.  No permissive power or

authority available to the Property Trustee shall be construed to be a duty.

 

40

 

SECTION 804. 

NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

 

The recitals

contained herein and in the Trust Securities Certificates shall be taken as the

statements of the Trust, and the Trustees do not assume any responsibility for

their correctness.  The Trustees shall

not be accountable for the use or application by the Depositor of the proceeds

of the Junior Subordinated Debentures.

 

SECTION 805. 

MAY HOLD SECURITIES.

 

Any Trustee or any

other agent of any Trustee or the Trust, in its individual or any other

capacity, may become the owner or pledgee of Trust Securities and, subject to

Sections 808 and 813 and except as provided in the definition of the term

“Outstanding” in Article I, may otherwise deal with the Trust with the same

rights it would have if it were not a Trustee or such other agent.

 

SECTION 806. 

COMPENSATION; INDEMNITY; FEES.

 

The Depositor

agrees:

 

(a)       to pay to the Trustees

from time to time reasonable compensation for all services rendered by them

hereunder (which compensation shall not be limited by any provision of law in

regard to the compensation of a trustee of an express trust);

 

(b)      except as otherwise

expressly provided herein, to reimburse the Trustees upon request for all

reasonable expenses, disbursements and advances incurred or made by the

Trustees in accordance with any provision of this Trust Agreement (including

the reasonable compensation and the expenses and disbursements of its agents

and counsel), except any such expense, disbursement or advance as may be

attributable to such Trustee’s negligence, bad faith or willful misconduct (or,

in the case of the Administrative Trustees or the Delaware Trustee, any such

expense, disbursement or advance as may be attributable to its, his or her gross

negligence, bad faith or willful misconduct); and

 

(c)       to indemnify each of the

Trustees or any predecessor Trustee for, and to hold the Trustees harmless

against, any loss, damage, claim, liability, penalty or expense incurred

without negligence or bad faith on its part, arising out of or in connection

with the acceptance or administration of this Trust Agreement, including the

costs and expenses of defending itself against any claim or liability in

connection with the exercise or performance of any of its powers or duties

hereunder, except any such cost or expense as may be attributable to such

Trustee’s negligence, bad faith or willful misconduct (or, in the case of the

Administrative Trustees or the Delaware Trustee, any such cost or expense as

may be attributable to its, his or her gross negligence, bad faith or willful

misconduct).

 

No Trustee may

claim any Lien on any Trust Property as a result of any amount due pursuant to

this Section 806.

 

41

 

SECTION 807. 

CORPORATE PROPERTY TRUSTEE REQUIRED; ELIGIBILITY OF TRUSTEES.

 

(a)       There shall at all times

be a Property Trustee hereunder with respect to the Trust Securities.  The Property Trustee shall be a Person that

is eligible pursuant to the Trust Indenture Act to act as such and has a

combined capital and surplus of at least $50,000,000.  If any such Person publishes reports of condition at least

annually, pursuant to law or to the requirements of its supervising or

examining authority, then for the purposes of this Section, the combined

capital and surplus of such Person shall be deemed to be its combined capital

and surplus as set forth in its most recent report of condition so

published.  If at any time the Property

Trustee with respect to the Trust Securities shall cease to be eligible in

accordance with the provisions of this Section, it shall resign immediately in

the manner and with the effect hereinafter specified in this Article.

 

(b)      There shall at all times

be one or more Administrative Trustees hereunder with respect to the Trust

Securities.  Each Administrative Trustee

shall be either a natural person who is at least 21 years of age or a legal

entity that shall act through one or more persons authorized to bind that

entity.

 

(c)       There shall at all times

be a Delaware Trustee with respect to the Trust Securities.  The Delaware Trustee shall either be (i) a

natural person who is at least 21 years of age and a resident of the State of

Delaware or (ii) a legal entity with its principal place of business in the

State of Delaware and that otherwise meets the requirements of applicable

Delaware law that shall act through one or more persons authorized to bind such

entity.

 

SECTION 808.  CONFLICTING INTERESTS.

 

If the Property

Trustee has or shall acquire a conflicting interest within the meaning of the

Trust Indenture Act, the Property Trustee shall either eliminate such interest

or resign, to the extent and in the manner provided by, and subject to the

provisions of, the Trust Indenture Act and this Trust Agreement.

 

SECTION 809. 

CO-TRUSTEES AND SEPARATE TRUSTEE.

 

Unless an Event of

Default shall have occurred and be continuing, at any time or times, for the

purpose of meeting the legal requirements of the Trust Indenture Act or of any

jurisdiction in which any part of the Trust Property may at the time be

located, the Depositor and the Administrative Trustees shall have power to

appoint, and upon the written request of the Property Trustee, the Depositor

and the Administrative Trustees shall for such purpose join with the Property

Trustee in the execution, delivery and performance of all instruments and

agreements necessary or proper to appoint, one or more Persons approved by the

Property Trustee either to act as co-trustee, jointly with the Property Trustee,

of all or any part of such Trust Property, or to the extent required by law to

act as separate trustee of any such property, in either case with such powers

as may be provided in the instrument of appointment, and to vest in such Person

or Persons in the capacity aforesaid, any property, title, right or power

deemed

 

42

 

necessary or desirable,

subject to the other provisions of this Section. If the Depositor and the

Administrative Trustees do not join in such appointment within 15 days after

the receipt by them of a request so to do, or in case a Debenture Event of

Default has occurred and is continuing, the Property Trustee alone shall have

power to make such appointment.  Any

co-trustee or separate trustee appointed pursuant to this Section shall either

be (i) a natural person who is at least 21 years of age and a resident of the

United States or (ii) a legal entity with its principal place of business in

the United States that shall act through one or more persons authorized to bind

such entity.

 

Should any written

instrument from the Depositor be required by any co-trustee or separate trustee

so appointed for more fully confirming to such co-trustee or separate trustee

such property, title, right, or power, any and all such instruments shall, on

request, be executed, acknowledged, and delivered by the Depositor.

 

Every co-trustee

or separate trustee shall, to the extent permitted by law, but to such extent

only, be appointed subject to the following terms, namely:

 

(a)       The Trust Securities

shall be executed and delivered and all rights, powers, duties and obligations

hereunder in respect of the custody of securities, cash and other personal

property held by, or required to be deposited or pledged with, the Trustees

specified hereunder, shall be exercised, solely by such Trustees and not by

such co-trustee or separate trustee.

 

(b)      The rights, powers,

duties and obligations hereby conferred or imposed upon the Property Trustee in

respect of any property covered by such appointment shall be conferred or

imposed upon and exercised or performed by the Property Trustee or by the

Property Trustee and such co-trustee or separate trustee jointly, as shall be

provided in the instrument appointing such co-trustee or separate trustee,

except to the extent that under any law of any jurisdiction in which any

particular act is to be performed, the Property Trustee shall be incompetent or

unqualified to perform such act, in which event such rights, powers, duties and

obligations shall be exercised and performed by such co-trustee or separate

trustee.

 

(c)       The Property Trustee at

any time, by an instrument in writing executed by it, with the written

concurrence of the Depositor, may accept the resignation of or remove any

co-trustee or separate trustee appointed under this Section, and, in case a

Debenture Event of Default has occurred and is continuing, the Property Trustee

shall have power to accept the resignation of, or remove, any such co-trustee

or separate trustee without the concurrence of the Depositor. Upon the written

request of the Property Trustee, the Depositor shall join with the Property

Trustee in the execution, delivery and performance of all instruments and

agreements necessary or proper to effectuate such resignation or removal.  A successor to any co-trustee or separate

trustee so resigned or removed may be appointed in the manner provided in this

Section 809.

 

(d)      No co-trustee or separate

trustee hereunder shall be personally liable by reason of any act or omission

of the Property Trustee or any other trustee hereunder.

 

43

 

(e)       The Property Trustee

shall not be liable by reason of any act of a co-trustee or separate trustee.

 

(f)       Any Act of Holders delivered

to the Property Trustee shall be deemed to have been delivered to each such

co-trustee and separate trustee.

 

SECTION 810.  RESIGNATION AND REMOVAL; APPOINTMENT OF

SUCCESSOR.

 

No resignation or

removal of any Trustee (the “Relevant Trustee”) and no appointment of a

successor Trustee pursuant to this Article shall become effective until the

acceptance of appointment by the successor Trustee in accordance with the

applicable requirements of Section 811.

 

Subject to the

immediately preceding paragraph, the Relevant Trustee may resign at any time

with respect to the Trust Securities by giving written notice thereof to the

Property Trustee and the Depositor.  If

the instrument of acceptance by the successor Trustee required by Section 811

shall not have been delivered to the Relevant Trustee within 30 days after the

giving of such notice of resignation, the Relevant Trustee may petition, at the

expense of the Depositor, any court of competent jurisdiction for the

appointment of a successor Relevant Trustee with respect to the Trust

Securities.

 

Unless a Debenture

Event of Default shall have occurred and be continuing, any Trustee may be

removed at any time by Act of the Common Securityholder.  If a Debenture Event of Default shall have

occurred and be continuing, the Property Trustee or the Delaware Trustee, or

both of them, may be removed at such time by Act of the Holders of a majority

in Liquidation Amount of the Capital Securities, delivered to the Relevant

Trustee (in its individual capacity and on behalf of the Trust).  An Administrative Trustee may be removed by

the Common Securityholder at any time. 

In no event will the Holders of the Capital Securities have the right to

vote to appoint, remove or replace the Administrative Trustees.

 

If any Trustee shall

resign, be removed or become incapable of acting as Trustee, or if a vacancy

shall occur in the office of any Trustee for any cause, at a time when no

Debenture Event of Default shall have occurred and be continuing, the Common

Securityholder, by Act of the Common Securityholder delivered to the retiring

Trustee, shall promptly appoint a successor Trustee or Trustees with respect to

the Trust Securities and the Trust, and the successor Trustee shall comply with

the applicable requirements of Section 811. If the Property Trustee or the

Delaware Trustee shall resign, be removed or become incapable of continuing to

act as the Property Trustee or the Delaware Trustee, as the case may be, at a

time when a Debenture Event of Default shall have occurred and is continuing,

the Preferred Securityholders, by Act of the Securityholders of a majority in

Liquidation Amount of the Capital Securities then Outstanding delivered to the

retiring Relevant Trustee, shall promptly appoint a successor Relevant Trustee

or Trustees with respect to the Trust Securities and the Trust, and such

successor Trustee shall comply with the applicable requirements of Section

811.  If an Administrative Trustee shall

resign, be removed or become incapable of acting as Administrative Trustee, at

a time when a 

 

44

Debenture Event of

Default shall have occurred and be continuing, the Common Securityholder, by

Act of the Common Securityholder delivered to an Administrative Trustee, shall

promptly appoint a successor Administrative Trustee or Administrative Trustees

with respect to the Trust Securities and the Trust, and such successor

Administrative Trustee or Administrative Trustees shall comply with the

applicable requirements of Section 811. 

If no successor Relevant Trustee with respect to the Trust Securities

shall have been so appointed by the Common Securityholder or the Preferred

Securityholders and accepted appointment in the manner required by Section 811,

any Securityholder who has been a Securityholder of Trust Securities on behalf

of such Securityholder and all others similarly situated may petition a court

of competent jurisdiction for the appointment Trustee with respect to the Trust

Securities.

 

The Property

Trustee shall give notice of each resignation and each removal of a Trustee and

each appointment of a successor Trustee to all Securityholders in the manner

provided in Section 1008 and shall give notice to the Depositor. Each notice

shall include the name of the successor Relevant Trustee and the address of its

Corporate Trust office if it is the Property Trustee.

 

Notwithstanding

the foregoing or any other provision of this Trust Agreement, in the event any

Administrative Trustee or a Delaware Trustee who is a natural person dies or

becomes, in the opinion of the Depositor, incompetent or incapacitated, the

vacancy created by such death, incompetence or incapacity may be filled by (a)

the unanimous act of remaining Administrative Trustees if there are at least

two of them or (b) otherwise by the Depositor (with the successor in each case

being a Person who satisfies the eligibility requirement for Administrative

Trustees set forth in Section 807).

 

SECTION 811.  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

 

In case of the

appointment hereunder of a successor Relevant Trustee with respect to the Trust

Securities and the Trust, the retiring Relevant Trustee (if requested by the

Depositor) and each successor Relevant Trustee with respect to the Trust

Securities shall execute and deliver an instrument hereto wherein each

successor Relevant Trustee shall accept such appointment and which shall

contain such provisions as shall be necessary or desirable to transfer and

confirm to, and to vest in, each successor Relevant Trustee all the rights, powers,

trusts and duties of the retiring Relevant Trustee with respect to the Trust

Securities and the Trust and upon the execution and delivery of such instrument

the resignation or removal of the retiring Relevant Trustee shall become

effective to the extent provided therein and each such successor Relevant

Trustee, without any further act, deed or conveyance, shall become vested with

all the rights, powers, trusts and duties of the retiring Relevant Trustee with

respect to the Trust Securities and the Trust; but, on request of the Trust or

any successor Relevant Trustee such retiring Relevant Trustee shall duly

assign, transfer and deliver to such successor Relevant Trustee all Trust

Property, all proceeds thereof and money held by such retiring Relevant Trustee

hereunder with respect to the Trust Securities and the Trust.

 

Upon request of

any such successor Relevant Trustee, the Trust shall execute any and all

instruments for more fully and certainly vesting in and confirming to such

successor Relevant

 

45

 

Trustee all such rights,

powers and trusts referred to in the immediately preceding paragraph, as the

case may be.

 

No successor

Relevant Trustee shall accept its appointment unless at the time of such acceptance

such successor Relevant Trustee shall be qualified and eligible under this

Article.

 

SECTION 812.  MERGER, CONVERSION, CONSOLIDATION OR

SUCCESSION TO BUSINESS.

 

Any Person into

which the Property Trustee, the Delaware Trustee or any Administrative Trustee

that is not a natural person may be merged or converted or with which it may be

consolidated, or any Person resulting from any merger, conversion or

consolidation to which such Relevant Trustee shall be a party, or any

corporation succeeding to all or substantially all the corporate trust business

of such Relevant Trustee, shall be the successor of such Relevant Trustee

hereunder, provided such Person shall be otherwise qualified and eligible under

this Article, without the execution or filing of any paper or any further act

on the part of any of the parties hereto.

 

SECTION 813. 

PREFERENTIAL COLLECTION OF CLAIMS AGAINST DEPOSITOR OR TRUST.

 

If and when the

Property Trustee or the Delaware Trustee shall be or become a creditor of the

Depositor or the Trust (or any other obligor upon the Junior Subordinated

Debentures or the Trust Securities), the Property Trustee or the Delaware

Trustee, as the case may be, shall be subject to and shall take all actions

necessary in order to comply with the provisions of the Trust Indenture Act

regarding the collection of claims against the Depositor or Trust (or any such

other obligor).

 

46

 

SECTION 814. 

REPORTS BY PROPERTY TRUSTEE.

 

(a)       Not later than January

31 of each year commencing with January 31, 2003, the Property Trustee shall

transmit to all Securityholders in accordance with Section 1008, and to the

Depositor, a brief report dated as of the preceding December 31 with respect

to:

 

(i)       its

eligibility under Section 807 or, in lieu thereof, if to the best of its

knowledge it has continued to be eligible under said Section, a written

statement to such effect; and

 

(ii)      any

change in the property and funds in its possession as Property Trustee since

the date of its last report and any action taken by the Property Trustee in the

performance of its duties hereunder which it has not previously reported and

which in its opinion materially affects the Trust Securities.

 

(b)      In addition the Property

Trustee shall transmit to Securityholders such reports concerning the Property

Trustee and its actions under this Trust Agreement as may be required pursuant

to the Trust Indenture Act at the times and in the manner provided pursuant

thereto.

 

(c)       A copy of each such

report shall, at the time of such transmission to Holders, be filed by the

Property Trustee with each national securities exchange or other organization

upon which the Trust Securities may be listed, with the Commission and with the

Depositor.

 

SECTION 815. 

REPORTS TO THE PROPERTY TRUSTEE.

 

The Depositor and

the Administrative Trustees on behalf of the Trust shall provide to the

Property Trustee such documents, reports and information as required by Section

314 of the Trust Indenture Act (if any) and the compliance certificate required

by Section 314(a) of the Trust Indenture Act in the form, in the manner and at

the times required by Section 314 of the Trust Indenture Act.

 

SECTION 816.  EVIDENCE OF COMPLIANCE WITH CONDITIONS

PRECEDENT.

 

Each of the

Depositor and the Administrative Trustees on behalf of the Trust shall provide

to the Property Trustee such evidence of compliance with the conditions

precedent, if any, provided for in this Trust Agreement that relate to any of

the matters set forth in Section 314(c) of the Trust Indenture Act. Any

certificate or opinion required to be given by an officer pursuant to Section

314(c)(1) of the Trust Indenture Act shall be given in the form of an Officers’

Certificate.

 

SECTION 817.  NUMBER OF TRUSTEES.

 

(a)       The number of Trustees

shall be five, provided that the Holder of all of the Common Securities by

written instrument may increase or decrease the number of

 

47

 

Administrative

Trustees.  The Property Trustee and the

Delaware Trustee may be the same Person.

 

(b)      If a Trustee ceases to

hold office for any reason and the number of Administrative Trustees is not

reduced pursuant to Section 817(a), or if the number of Trustees is increased

pursuant to Section 817(a), a vacancy shall occur.  The vacancy shall be filled with a Trustee appointed in

accordance with Section 810.

 

(c)       The death, resignation,

retirement, removal, bankruptcy, incompetence or incapacity to perform the

duties of a Trustee shall not operate to dissolve, terminate or annul the

Trust.  Whenever a vacancy in the number

of Administrative Trustees shall occur, until such vacancy is filled by the

appointment of an Administrative Trustee in accordance with Section 810, the Administrative

Trustees in office, regardless of their number (and notwithstanding any other

provision of this Agreement), shall have all the powers granted to the

Administrative Trustees and shall discharge all the duties imposed upon the

Administrative Trustees by this Trust Agreement.

 

SECTION 818.  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 207(a); and

 

(b)      The Administrative

Trustees shall have power to delegate from time to time to such of their number

or to the Depositor the doing of such things and the execution of such

instruments either in the name of the Trust or the names of the Administrative

Trustees or otherwise as the Administrative Trustees may deem expedient, to the

extent such delegation is not prohibited by applicable law or contrary to the

provisions of the Trust, as set forth herein.

 

SECTION 819. 

VOTING.

 

Except as otherwise

provided in this Trust Agreement, the consent or approval of the Administrative

Trustees shall require consent or approval by not less than a majority of the

Administrative Trustees, unless there are only two, in which case both must

consent.

 

 

ARTICLE IX.

DISSOLUTION, TERMINATION, LIQUIDATION AND MERGER

 

SECTION 901.  DISSOLUTION UPON EXPIRATION DATE

 

Unless earlier

dissolved, the Trust shall automatically dissolve on April 15, 2037 (the

“Expiration Date”).

 

48

 

 

SECTION 902. 

EARLY TERMINATION.

 

The first to occur

of any of the following events is an “Early Termination Event,” the occurrence

of which shall cause the Trust to dissolve:

 

(a)       the occurrence of a

Bankruptcy Event in respect of, or the dissolution or liquidation of, the

Depositor;

 

(b)      delivery of written

direction to the Property Trustee by the Depositor at any time (which direction

is wholly optional and within the discretion of the Depositor) to dissolve the

Trust and, after satisfaction of liabilities to creditors of the Trust are

provided by applicable law, distribute the Junior Subordinated Debentures to

Securityholders in exchange for the Capital Securities in accordance with

Section 904;

 

(c)       the redemption of all of

the Capital Securities in connection with the redemption of all of the Junior

Subordinated Debentures; and

 

(d)      an order for dissolution

of the Trust shall have been entered by a court of competent jurisdiction.

 

SECTION 903. 

TERMINATION.

 

The respective

obligations and responsibilities of the Trustees and the Trust created and

continued hereby shall terminate upon the latest to occur of the following: (a)

the distribution by the Property Trustee to Securityholders upon the

liquidation of the Trust pursuant to Section 904, or upon the redemption of all

of the Trust Securities pursuant to Section 402, of all amounts required to be

distributed hereunder upon the final payment of the Trust Securities; (b) the

payment of any expenses owed by the Trust; (c) the discharge of all administrative

duties of the Administrative Trustees, including the performance of any tax

reporting obligations with respect to the Trust or the Securityholders, and (d)

the filing of a Certificate of cancellation by the Administrative Trustees

under the Delaware Business Trust Act.

 

SECTION 904. 

LIQUIDATION.

 

(a)       If an Early Termination

Event specified in clause (a), (b), or (d) of Section 902 occurs or upon the

Expiration Date, the Trust shall be liquidated by the Trustees as expeditiously

as the Trustees determine to be possible by distributing, after satisfaction of

liabilities to creditors of the Trust as provided by applicable law, to each

Securityholder a Like Amount of Junior Subordinated Debentures, subject to

Section 904(d).  Notice of liquidation shall

be given by the Property Trustee by first-class mail, postage prepaid, mailed

not later than 30 nor more than 60 days prior to the Liquidation Date to each

Holder of Trust Securities at such Holder’s address appearing in the Securities

Register.  All notices of liquidation

shall:

 

(i)       state

the Liquidation Date;

 

49

 

(ii)      state

that from and after the Liquidation Date, the Trust Securities will no longer

be deemed to be Outstanding and any Trust Securities Certificates not

surrendered for exchange will be deemed to represent a Like Amount of Junior

Subordinated Debentures; and

 

(iii)     provide

such information with respect to the mechanics by which Holders may exchange

Trust Securities certificates for Junior Subordinated Debentures, or if Section

904(d) applies receive a Liquidation Distribution, as the Administrative

Trustees or the Property Trustee shall deem appropriate.

 

(b)      Except where Section

902(c) or 904(d) applies, in order to effect the liquidation of the Trust and

distribution of the Junior Subordinated Debentures to Securityholders, the

Property Trustee shall establish a record date for such distribution (which

shall be not more than 45 days prior to the Liquidation Date) and, either

itself acting as exchange agent or through the appointment of a separate

exchange agent, shall establish such procedures as it shall deem appropriate to

effect the distribution of Junior Subordinated Debentures in exchange for the

Outstanding Trust Securities Certificates.

 

(c)       Except where Section

902(c) or 904(d) applies, after the Liquidation Date, (i) the Trust Securities

will no longer be deemed to be Outstanding, (ii) certificates (or, at the

election of the Depositor a Global Subordinated Debenture, subject to the

provisions of the Indenture) representing a Like Amount of Junior Subordinated

Debentures will be issued to holders of Trust Securities Certificates upon

surrender of such certificates to the Administrative Trustees or their agent

for exchange, (iii) the Depositor shall use its reasonable efforts to have the

Junior Subordinated Debentures listed on the Nasdaq National Market or on such

other securities exchange or other organization as the Capital Securities may

then be listed or traded,  (iv) any Trust

Securities Certificates not so surrendered for exchange will be deemed to

represent a Like Amount of Junior Subordinated Debentures, accruing interest at

the rate provided for in the Junior Subordinated Debentures from the last

Distribution Date on which a Distribution was made on such Trust Securities

Certificates until such certificates are so surrendered (and until such

certificates are so surrendered, no payments of interest or principal will be

made to holders of Trust Securities Certificates with respect to such Junior

Subordinated Debentures) and (v) all rights of Securityholders holding Trust

Securities will cease, except the right of such Securityholders to receive

Junior Subordinated Debentures upon surrender of Trust Securities Certificates.

 

(d)      In the event that,

notwithstanding the other provisions of this Section 904, whether because of an

order for dissolution entered by a court of competent jurisdiction or

otherwise, distribution of the Junior Subordinated Debentures in the manner

provided herein is determined by the Property Trustee not to be practical, the

Trust Property shall be liquidated, and the Trust shall be wound-up by the

Property Trustee in such manner as the Property Trustee determines.  In such event, Securityholders will be entitled

to receive out of the assets of the Trust available for distribution to

Securityholders, after satisfaction of liabilities to creditors of the Trust as

provided by applicable law, an amount equal to the Liquidation Amount per Trust

 

50

 

Security plus

accumulated and unpaid Distributions thereon to the date of payment (such

amount being the “Liquidation Distribution”). 

If, upon any such winding-up, the Liquidation Distribution can be paid

only in part because the Trust has insufficient assets available to pay in full

the aggregate Liquidation Distribution, then, subject to the next succeeding

sentence, the amounts payable by the Trust on the Trust Securities shall be

paid on a pro rata basis (based upon Liquidation Amounts). The Holder of the

Common Securities will be entitled to receive Liquidation Distributions upon

any such winding-up pro rata (determined as aforesaid) with Holders of Capital

Securities, except that, if a Debenture Event of Default has occurred and is

continuing, the Capital Securities shall have a priority over the Common

Securities.

 

SECTION 905. 

MERGERS, CONSOLIDATIONS, AMALGAMATIONS OR REPLACEMENTS OF THE TRUST.

 

The Trust may not

merge with or into, consolidate, amalgamate, or be replaced by, or convey,

transfer or lease its properties and assets substantially as an entirety to any

corporation or other Person, except pursuant Article IX.  At the request of the Depositor, with the

consent of the Administrative Trustees and without the consent of the holders

of the Capital Securities, the Property Trustee or the Delaware Trustee, the

Trust may merge with or into, consolidate, amalgamate, be replaced by or

convey, transfer or lease its properties and assets substantially as an entirety

to a trust organized as such under the laws of any state; provided, that (i)

such successor entity either (a) expressly assumes all of the obligations of

the Trust with respect to the Capital Securities or (b) substitutes for the

Capital Securities other securities having substantially the same terms as the

Capital Securities (the “Successor Securities”) so long as the Successor

Securities rank the same as the Capital Securities rank in priority with

respect to distributions and payments upon liquidation, redemption and

otherwise, (ii) the Depositor expressly appoints a trustee of such successor

entity possessing substantially the same powers and duties as the Property

Trustee as the holder of the Junior Subordinated Debentures, (iii) such merger,

consolidation, amalgamation, replacement, conveyance, transfer or lease does

not adversely affect the rights, preferences and privileges of the Holders of

the Capital Securities (including any Successor Securities) in any material

respect, (iv) such successor entity has a purpose substantially identical to

that of the Trust, (v) the Successor Securities will be listed or traded on any

national securities exchange or other organization on which the Capital

Securities may then be listed, (vi) prior to such merger, consolidation,

amalgamation, replacement, conveyance, transfer or lease, the Depositor has

received an Opinion of Counsel experienced in such matters to the effect that

(a) such merger, consolidation, amalgamation, replacement, conveyance, transfer

or lease does not adversely affect the rights, preferences and privileges of

the Holders of the Capital Securities (including any Successor Securities) in

any material respect, and (b) following such merger, consolidation,

amalgamation, replacement, conveyance, transfer or lease, neither the Trust nor

such successor entity will be required to register as an “investment company”

under the Investment Company Act and (vii) the Depositor owns all of the common

securities of such successor entity and guarantees the obligations of such

successor entity under the Successor Securities at least to the extent provided

by the Guarantee.  Notwithstanding the

foregoing, the Trust shall not, except with the consent of holders of 100% in

Liquidation Amount of the Capital Securities, consolidate, amalgamate, merge

with or into, or be replaced by or convey, transfer or lease its properties and

assets substantially as an entirety to any other Person

 

51

 

or permit any other

Person to consolidate, amalgamate, merge with or into, or replace it, if such

consolidation, amalgamation, merger or replacement would cause the Trust or the

successor entity to be classified as other than a grantor trust for United

States federal income tax purposes.

 

 

ARTICLE X.

MISCELLANEOUS PROVISIONS

 

SECTION 1001.  LIMITATION OF RIGHTS OF SECURITYHOLDERS.

 

The death,

bankruptcy, termination, dissolution or incapacity of any Person having an

interest, beneficial or otherwise, in Trust Securities shall not operate to

terminate this Trust Agreement, nor dissolve, terminate or annul the Trust, nor

entitle the legal representatives or heirs of such Person, to claim an

accounting, take any action or bring any proceeding in any court for a

partition or winding-up of the arrangements contemplated hereby, nor otherwise

affect the rights, obligations and liabilities of the parties hereto or any of

them.

 

SECTION 1002.  AMENDMENT.

 

(a)       This Trust Agreement may

be amended from time to time by the Administrative Trustees and the Depositor,

without the consent of any Securityholders, (i) as provided in Section 811 with

respect to acceptance of appointment by a successor Trustee, (ii) to cure any

ambiguity, correct or supplement any provision herein or therein which may be

inconsistent with any other provision herein or therein, or to make any other

provisions with respect to matters or questions arising under this Trust

Agreement, that shall not be inconsistent with the other provisions of this

Trust Agreement, or (iii) to modify, eliminate or add to any provisions of this

Trust Agreement to such extent as shall be necessary to ensure that the Trust

will be classified for United States federal income tax purposes as a grantor

trust at all times that any Trust Securities are Outstanding or to ensure that

the Trust will not be required to register as an “investment company” under the

Investment Company Act; provided, however, that in the case of clause (ii),

such action shall not adversely affect in any material respect the interests of

any Securityholder, and any such amendments of this Trust Agreement shall

become effective when notice thereof is given to the Securityholders.

 

(b)      Except as provided in

Section 601(c) or Section 1002(c) hereof, any provision of this Trust Agreement

may be amended by the Administrative Trustees and the Depositor (i) with the

consent of Trust Securityholders representing not less than a majority (based

upon Liquidation Amounts) of the Trust Securities then Outstanding 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

of an “investment company” under the Investment Company Act.

 

(c)       In addition to and

notwithstanding any other provision in this Trust Agreement, without the

consent of each affected Securityholder, this Trust Agreement may not be

amended

 

52

 

to (i) change the

amount or timing of any Distribution on the Trust Securities or otherwise

adversely affect the amount of any Distribution required to be made in respect

of the Trust Securities as of a specified date or (ii) restrict the right of a

Securityholder to institute suit for the enforcement of any such payment on or

after such date; notwithstanding any other provision herein, without the

unanimous consent of the Securityholders, this paragraph (c) of this Section

1002 may not be amended.

 

(d)      Notwithstanding any other

provisions of this Trust Agreement, no Trustee shall enter into or consent to

any amendment to this Trust Agreement which would cause the Trust to fail or

cease to qualify for the exemption from status of an “investment company” under

the Investment Company Act or to fail or cease to be classified as a grantor

trust for United States federal income tax purposes.

 

(e)       Notwithstanding anything

in this Trust Agreement to the contrary, without the consent of the Depositor,

this Trust Agreement may not be amended in a manner which imposes any

additional obligation on the Depositor.

 

(f)       In the event that any

amendment to this Trust Agreement is made, the Administrative Trustees shall

promptly provide to the Depositor a copy of such amendment.

 

(g)      No amendment of this

Trust Agreement that affects the Property Trustee’s or the Delaware Trustee’s

own rights, duties or immunities under this Trust Agreement shall be effective

without obtaining the prior written consent of the Property Trustee or the

Delaware Trustee, as the case maybe. 

The Property Trustee shall be entitled to receive an Opinion of Counsel

and an Officers’ Certificate stating that any amendment to this Trust Agreement

is in compliance with this Trust Agreement.

 

SECTION 1003. 

SEPARABILITY.

 

In case any

provision in this Trust Agreement or in the Trust Securities Certificates shall

be invalid, illegal or unenforceable, the validity, legality and enforceability

of the remaining provisions shall not in any way be affected or impaired

thereby.

 

SECTION 1004. 

GOVERNING LAW.

 

THIS TRUST

AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE SECURITYHOLDERS, THE

TRUST AND THE TRUSTEES WITH RESPECT TO THIS TRUST AGREEMENT AND THE TRUST

SECURITIES SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF

THE STATE OF DELAWARE (WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

SECTION 1005.  PAYMENTS DUE ON NON-BUSINESS DAY.

 

If the date fixed

for any payment on any Trust Security shall be a day that is not a Business

Day, then such payment need not be made on such date but may be made on the

next

 

53

 

succeeding day which is a

Business Day (except as otherwise provided in Sections 401(a) and 402(d)), with

the same force and effect as though made on the date fixed for such payment,

and no distribution shall accumulate thereon for the period after such date.

 

54

 

SECTION 1006. 

SUCCESSORS.

 

This Trust

Agreement shall be binding upon and shall inure to the benefit of any successor

to the Depositor, the Trust or the Relevant Trustee(s), including any successor

by operation of law.  Except in

connection with a consolidation, merger or sale involving the Depositor that is

permitted under Article Twelve of the Indenture and pursuant to which the

assignee agrees in writing to perform the Depositor’s obligations hereunder,

the Depositor shall not assign its obligations hereunder.

 

SECTION 1007. 

HEADINGS.

 

The Article and

Section headings are for convenience only and shall not affect the construction

of this Trust Agreement.

 

SECTION 1008. 

REPORTS, NOTICES AND DEMANDS.

 

Any report,

notice, demand or other communication which by any provision of this Trust

Agreement is required or permitted to be given or served to or upon any

Securityholder or the Depositor may be given or served in writing by deposit

thereof, first-class postage prepaid, in the United States mail, hand delivery

or facsimile transmission, in each case, addressed, (a) in the case of a

Preferred Securityholder, to such Preferred Securityholder as such

Securityholder’s name and address may appear on the Securities Register; and

(b) in the case of the Common Securityholder or the Depositor, to Community

First Bankshares, Inc., 520 Main Avenue, Fargo, North Dakota 58124-0001;

Attention: Chief Financial Officer; Facsimile No.: (701) 235-6019.  Any notice to Preferred Securityholders shall

also be given to such owners as have, within two years preceding the giving of

such notice, filed their names and addresses with the Property Trustee for that

purpose.  Such notice, demand or other

communication to or upon a Securityholder shall be deemed to have been

sufficiently given or made, for all purposes, upon hand delivery, mailing or

transmission.

 

Any notice, demand

or other communication which by any provision of this Trust Agreement is

required or permitted to be given or served to or upon the Trust, the Property

Trustee or the Administrative Trustees shall be given in writing addressed

(until another address is published by the Trust) as follows: (a) with respect

to the Property Trustee to Wilmington Trust Company, Rodney Square North, 1100

North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate

Trust Administration; (b) with respect to the Delaware Trustee, to Wilmington

Trust Company, Rodney Square North, 1100 North Market Street, Wilmington,

Delaware 19890–0001, Attention: Corporate Trust Administration; and (c)

with respect to the Administrative Trustees, to them at the address above for

notices to the Depositor, marked “Attention: Administrative Trustees of CFB

Capital III.”  Such notice, demand or

other communication to or upon the Trust or the Property Trustee shall be

deemed to have been sufficiently given or made only upon actual receipt of the

writing by the Trust or the Property Trustee.

 

55

 

SECTION 1009. 

AGREEMENT NOT TO PETITION.

 

Each of the

Trustees and the Depositor agree for the benefit of the Securityholders that,

until at least one year and one day after the Trust has been terminated in

accordance with Article IX, they shall not file, or join in the filing of, a

petition against the Trust under any bankruptcy, insolvency, reorganization or

other similar law (including, without limitation, the United States Bankruptcy

Code) (collectively, “Bankruptcy Laws”) or otherwise join in the commencement

of any proceeding against the Trust under any Bankruptcy Law. In the event the

Depositor takes action in violation of this Section 1009, the Property Trustee

agrees, for the benefit of Securityholders, that at the expense of the

Depositor (which expense shall be paid prior to the filing), it shall file an

answer with the bankruptcy court or otherwise properly contest the filing of

such petition by the Depositor against the Trust or the commencement of such

action and raise the defense that the Depositor has agreed in writing not to

take such action and should be stopped and precluded therefrom.  The provisions of this Section 1009 shall

survive the termination of this Trust Agreement.

 

SECTION 1010. 

TRUST INDENTURE ACT; CONFLICT WITH TRUST INDENTURE ACT.

 

(a)       This Trust Agreement is

subject to the provisions of the Trust Indenture Act that are required to be

part of this Trust Agreement and shall, to the extent applicable, be governed

by such provisions.

 

(b)      The Property Trustee

shall be the only Trustee which is a trustee for the purposes of the Trust

Indenture Act.

 

(c)       If any provision hereof

limits, qualifies or conflicts with another provision hereof which is required

to be included in this Trust Agreement by any of the provisions of the Trust

Indenture Act, such required provision shall control.  If any provision of this Trust Agreement modifies or excludes any

provision of the Trust Indenture Act which may be so modified or excluded, the

latter provision shall be deemed to apply to this Trust Agreement as so

modified or to be excluded, as the case may be.

 

(d)      The application of the

Trust Indenture Act to this Trust Agreement shall not affect the nature of the

Trust Securities as equity securities representing undivided beneficial

interests in the assets of the Trust.

 

SECTION 1011. 

ACCEPTANCE OF TERMS OF TRUST AGREEMENT, GUARANTEE AND INDENTURE.

 

THE RECEIPT AND

ACCEPTANCE OF A TRUST SECURITY OR ANY INTEREST THEREIN BY OR ON BEHALF OF A

SECURITYHOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY SIGNATURE OR FURTHER

MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE

 

56

 

SECURITYHOLDER AND ALL

OTHERS HAVING A BENEFICIAL INTEREST IN SUCH TRUST SECURITY OF ALL THE TERMS AND

PROVISIONS OF THIS TRUST AGREEMENT AND AGREEMENT TO THE SUBORDINATION PROVISIONS

AND OTHER TERMS OF THE GUARANTEE AND THE INDENTURE, AND SHALL CONSTITUTE THE

AGREEMENT OF THE TRUST, SUCH SECURITYHOLDER AND SUCH OTHERS THAT THE TERMS AND

PROVISIONS OF THIS TRUST AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS

BETWEEN THE TRUST AND SUCH SECURITYHOLDER AND SUCH OTHERS.

 

	

   

  	

  COMMUNITY FIRST BANKSHARES, INC.,

  
	

   

  	

  as Depositor

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Mark A. Anderson

  
	

   

  	

  Name:  Mark

  A. Anderson

  
	

   

  	

  Title:  President

  
	

   

  	

   

  
	

   

  	

  WILMINGTON TRUST COMPANY,

  
	

   

  	

  as Property Trustee

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ James P. Lawler

  
	

   

  	

  Name:  James

  P. Lawler

  
	

   

  	

  Title:  Vice President

  
	

   

  	

   

  
	

   

  	

  WILMINGTON TRUST COMPANY,

  
	

   

  	

  as Delaware Trustee

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ James P. Lawler

  
	

   

  	

  Name:  James

  P. Lawler

  
	

   

  	

  Title:  Vice President

  
	

   

  	

   

  
	

   

  	

  /s/ Mark A. Anderson

  
	

   

  	

  Mark A. Anderson, As

  Administrative Trustee

  
	

   

  	

   

  
	

   

  	

  /s/ Craig A. Weiss

  
	

   

  	

  Craig A. Weiss, As

  Administrative Trustee

  
	

   

  	

   

  
	

   

  	

  /s/ Thomas R. Anderson

  
	

   

  	

  Thomas R. Anderson, As

  Administrative Trustee

  

 

57CAPITAL SECURITIES GUARANTEE AGREEMENT

Exhibit

4.5

 

 

CAPITAL SECURITIES

GUARANTEE AGREEMENT

 

 

 

COMMUNITY FIRST

BANKSHARES, INC.

 

 

AND

 

 

WILMINGTON TRUST COMPANY

 

 

 

DATED: March 27, 2002

 

 

TABLE OF CONTENTS

 

	

  ARTICLE

  I – DEFINITIONS AND INTERPRETATION

  
	

   

  	

  SECTION 1.1   Definitions and Interpretation

  
	

  ARTICLE

  II –TRUST INDENTURE ACT

  
	

   

  	

  SECTION 2.1   Trust Indenture Act; Application

  
	

   

  	

  SECTION 2.2   Lists of Holders of Securities

  
	

   

  	

  SECTION 2.3   Reports by the Capital Guarantee Trustee

  
	

   

  	

  SECTION 2.4   Periodic Reports to Capital Guarantee Trustee

  
	

   

  	

  SECTION 2.5   Evidence of Compliance with Conditions Precedent

  
	

   

  	

  SECTION 2.6   Events of Default; Waiver

  
	

   

  	

  SECTION 2.7   Event of Default; Notice

  
	

   

  	

  SECTION 2.8   Conflicting Interests

  
	

  ARTICLE III –  POWERS, DUTIES AND RIGHTS OF CAPITAL GUARANTEE TRUSTEE

  
	

   

  	

  SECTION

  3.1   Powers and Duties of the Capital

  Guarantee Trustee

  
	

   

  	

  SECTION 3.2   Certain Rights of Capital Guarantee Trustee

  
	

   

  	

  SECTION 3.3   Not Responsible for Recitals or Issuance of Guarantee

  
	

  ARTICLE

  IV – CAPITAL GUARANTEE TRUSTEE

  
	

   

  	

  SECTION 4.1   Capital Guarantee Trustee; Eligibility

  
	

   

  	

  SECTION 4.2   Appointment, Removal and Resignation of Capital Guarantee

  Trustees

  
	

  ARTICLE

  V – GUARANTEE

  
	

   

  	

  SECTION 5.1   Guarantee

  
	

   

  	

  SECTION 5.2   Waiver of Notice and Demand

  
	

   

  	

  SECTION 5.3   Obligations Not Affected

  
	

   

  	

  SECTION 5.4   Rights of Holders

  

 

 

 

i

 

	

   

  	

  SECTION 5.5   Gurantee of Payment

  
	

   

  	

  SECTION 5.6   Subrogation

  
	

   

  	

  SECTION 5.7   Independent Obligatoins

  
	

  ARTICLE

  VI – LIMITATION OF TRANSACTIONS; SUBORDINATION

  
	

   

  	

  SECTION 6.1   Limitation of Transactions

  
	

   

  	

  SECTION 6.2   Ranking

  
	

  ARTICLE VII  –  TERMINATION

  
	

   

  	

  SECTION 7.1   Termination

  
	

  ARTICLE VIII  –  INDEMNIFICATION

  
	

   

  	

  SECTION 8.1   Exculpation

  
	

   

  	

  SECTION 8.2   Indemnification

  
	

  ARTICLE

  IX  – 

  MISCELLANEOUS

  
	

   

  	

  SECTION 9.1   Successors and Assigns

  
	

   

  	

  SECTION 9.2   Amendments

  
	

   

  	

  SECTION 9.3   Notices

  
	

   

  	

  SECTION 9.4   Benefit

  
	

   

  	

  SECTION 9.5   Governing Law

  

 

ii

 

CROSS REFERENCE TABLE

 

	

  Section of

  Trust

  Indenture Act of

  1939, as Amended

  	

   

  	

  Section of 

  Guarantee 

  Agreement

  	

   

  
	

  310(a)

  	

   

  	

  4.1(a)

  	

   

  
	

  310(b)

  	

   

  	

  4.1(c), 2.8

  	

   

  
	

  310(c)

  	

   

  	

  Inapplicable

  	

   

  
	

  311(a)

  	

   

  	

  2.2(b)

  	

   

  
	

  311(b)

  	

   

  	

  2.2(b)

  	

   

  
	

  311(c)

  	

   

  	

  Inapplicable

  	

   

  
	

  312(a)

  	

   

  	

  2.2(a)

  	

   

  
	

  312(b)

  	

   

  	

  2.2(b)

  	

   

  
	

  313

  	

   

  	

  2.3

  	

   

  
	

  314(a)

  	

   

  	

  2.4

  	

   

  
	

  314(b)

  	

   

  	

  Inapplicable

  	

   

  
	

  314(c)

  	

   

  	

  2.5

  	

   

  
	

  314(d)

  	

   

  	

  Inapplicable

  	

   

  
	

  314(e)

  	

   

  	

  1.1, 2.5, 3.2

  	

   

  
	

  314(f)

  	

   

  	

  2.1, 3.2

  	

   

  
	

  315(a)

  	

   

  	

  3.1(d)

  	

   

  
	

  315(b)

  	

   

  	

  2.7

  	

   

  
	

  315(c)

  	

   

  	

  3.1

  	

   

  
	

  315(d)

  	

   

  	

  3.1(d)

  	

   

  
	

  316(a)

  	

   

  	

  1.1, 3.6, 5.4

  	

   

  
	

  316(b)

  	

   

  	

  5.3

  	

   

  
	

  316(c)

  	

   

  	

  8.2

  	

   

  
	

  317(a)

  	

   

  	

  Inapplicable

  	

   

  
	

  317(b)

  	

   

  	

  Inapplicable

  	

   

  
	

  318(a)

  	

   

  	

  2.1(b)

  	

   

  
	

  318(b)

  	

   

  	

  2.1

  	

   

  
	

  318(c)

  	

   

  	

  2.1(a)

  	

   

  

 

 

iii

 

CAPITAL SECURITIES

GUARANTEE AGREEMENT

 

This GUARANTEE AGREEMENT (the “Capital Securities

Guarantee”), dated as of March 27, 2002, is executed and delivered by Community

First Bankshares, Inc., a Delaware corporation (the “Guarantor”), and

Wilmington Trust Company, as trustee (the “Capital Guarantee Trustee”), for the

benefit of the Holders (as defined herein) from time to time of the Capital

Securities (as defined herein) of CFB Capital III, a Delaware statutory

business trust (“CFB Capital”).

 

WHEREAS, pursuant to an Amended and Restated Trust

Agreement (the “Trust Agreement”) dated as of March 27, 2002 among the trustees

of CFB Capital named therein, the Guarantor, as sponsor, and the holders from

time to time of undivided beneficial interests in the assets of CFB Capital,

CFB Capital is issuing on the date hereof 2,400,000 preferred securities,

having an aggregate liquidation amount of $60,000,000, designated the 8-1/8%

Cumulative Capital Securities (the “Capital Securities”); and

 

WHEREAS, as incentive for the Holders to purchase the

Capital Securities, the Guarantor desires irrevocably and unconditionally to

agree, to the extent set forth in this Capital Securities Guarantee, to pay to

the Holders of the Capital Securities the Guarantee Payments (as defined

herein) and to make certain other payments on the terms and conditions set

forth herein.

 

NOW, THEREFORE, in consideration of the purchase by

each Holder of Capital Securities, which purchase the Guarantor hereby agrees

shall benefit the Guarantor, the Guarantor executes and delivers this Capital

Securities Guarantee for the benefit of the 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)           a

term defined anywhere in this Capital Securities Guarantee has the same meaning

throughout;

 

(c)           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;

 

(d)           all

references in this Capital Securities Guarantee to Articles and Sections are to

Articles and Sections of this Capital Securities Guarantee, unless otherwise

specified;

 

(e)           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

 

(f)            a

reference to the singular includes the plural and vice versa.

 

1

 

“Affiliate” has the same meaning as given to that term

in Rule 405 of the Securities Act of 1933, as amended, or any successor rule

thereunder.

 

“Business Day” means any day other than (a) a Saturday

or Sunday, (b) a day on which banking institutions in the State of Minnesota

are authorized or required by law or executive order to remain closed, or (c) a

day on which the Capital Guarantee Trustee’s Corporate Trust Office is closed

for business.

 

“Corporate Trust Office” means the office of the

Capital Guarantee Trustee at which the corporate trust business of the Capital

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, Attn:

Corporate Trust Administration.

 

“Covered Person” means any Holder or beneficial owner

of Capital Securities.

 

“Debt” means with respect to any person, whether

recourse is to all or a portion of the assets of such person and whether or not

contingent:  (i) every obligation of

such person for money borrowed; (ii) every obligation of such person 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 such person with respect to letters of

credit, bankers’ acceptances or similar facilities issued for the account of

such person; (iv) every obligation of such person 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); (v) every

capital lease obligation of such person; and (vi) every obligation of the type

referred to in clauses (i) through (v) of another person and all dividends of

another person the payment of which, in either case, such person has guaranteed

or is responsible or liable, directly or indirectly, as obligor or otherwise.

 

“Event of Default” means a default by the Guarantor on

any of its payment or other obligations under this Capital Securities

Guarantee.

 

“Guarantee Payments” means the following payments or

distributions, without duplication, with respect to the Capital Securities, to

the extent not paid or made by CFB Capital: 

(i) any accrued and unpaid Distributions (as defined in the Trust

Agreement) that are required to be paid on such Capital Securities to the

extent CFB Capital shall have funds available therefor, (ii) the redemption

price, including all accrued and unpaid Distributions to the date of redemption

(the “Redemption Price”) to the extent CFB Capital has funds available

therefor, with respect to any Capital Securities called for redemption by CFB

Capital, and (iii) upon a voluntary or involuntary dissolution, winding-up or

termination of CFB Capital (other than in connection with the distribution of

Junior Subordinated Debentures to the Holders in exchange for Capital

Securities as provided in the Trust Agreement), the lesser of (a) the aggregate

of the liquidation amount and all accrued and unpaid Distributions on the

Capital Securities to the date of payment, to the extent CFB Capital shall have

funds available therefor, and (b) the amount of assets of CFB Capital remaining

available for distribution to Holders in liquidation of CFB Capital (in either

case, the “Liquidation Distribution”).

 

“Holder” shall mean any holder, as registered on the

books and records of CFB Capital of any Capital Securities; provided, however,

that, in determining whether the holders of the requisite percentage of Capital

Securities have given any request, notice, consent or waiver hereunder,

“Holder” shall not include the Guarantor or any Affiliate of the Guarantor.

 

2

 

“Indemnified Person” means the Capital Guarantee

Trustee, any Affiliate of the Capital Guarantee Trustee, or any officers,

directors, shareholders, members, partners, employees, representatives,

nominees, custodians or agents of the Capital Guarantee Trustee.

 

“Indenture” means the Subordinated Indenture dated as

of March 27, 2002, among the Guarantor (the “Debenture Issuer”) and Wilmington

Trust Company, as trustee, and any indenture supplemental thereto pursuant to

which the Junior Subordinated Debentures are to be issued to the Property

Trustee of CFB Capital.

 

“Junior Subordinated Debentures” means the series of

junior subordinated deferrable interest debt securities of the Guarantor

designated the 8-1/8% Junior Subordinated Debentures due 2032 held by the

Property Trustee (as defined in the Trust Agreement) of CFB Capital.

 

“Majority in liquidation amount of the Capital

Securities” means, except as provided by the Trust Indenture Act, a vote by

Holder(s) of Capital Securities, voting separately as a class, of more than 50%

of the liquidation amount (including the stated amount that would be paid on

redemption, liquidation or otherwise, plus accrued and unpaid Distributions to

the date upon which the voting percentages are determined) of all Capital Securities.

 

“Officers’ Certificate” means, with respect to any

Person, a certificate signed by two Authorized Officers of such Person.  Any Officers’ 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 Officers’ Certificate has read the

covenant or condition and the definition relating thereto;

 

(b)           a

brief statement of the nature and scope of the examination or investigation

undertaken by each officer in rendering the Officers’ Certificate;

 

(c)           a

statement that each such officer has made such examination or investigation as,

in such officer’s opinion, is necessary to enable such officer to express an

informed opinion as to whether or not such covenant or condition has been

complied with; and

 

(d)           a

statement as to whether, in the opinion of each such officer, such condition or

covenant has been complied with.

 

“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.

 

“Capital Guarantee Trustee” means Wilmington Trust

Company, until a Successor Capital Guarantee Trustee has been appointed and has

accepted such appointment pursuant to the terms of this Capital Securities

Guarantee and thereafter means each such Successor Capital Guarantee Trustee.

 

“Responsible Officer” means, with respect to the

Capital Guarantee Trustee, any officer within the Corporate Trust Office of the

Capital Guarantee Trustee, including any vice-president, any assistant

vice-president, any assistant secretary, the treasurer, any assistant treasurer

or other officer of the Corporate Trust Office of the Capital Guarantee Trustee

customarily performing functions similar to

 

3

 

those performed by any of the above designated officers and also means,

with respect to a particular corporate trust matter, any other officer to whom

such matter is referred because of that officer’s knowledge of and familiarity

with the particular subject.

 

“Successor Capital Guarantee Trustee” means a

successor Capital Guarantee Trustee possessing the qualifications to act as

Capital Guarantee Trustee under Section 4.1.

 

“Senior and Subordinated Debt” means the principal of

(and premium, if any) and interest, if any (including interest accruing on or

after the filing of any petition in bankruptcy or for reorganization relating

to the Guarantor whether or not such claim for post–petition interest is

allowed in such proceeding), on Debt, whether incurred on or prior to the date

of the Indenture or thereafter incurred, unless, in the instrument creating or

evidencing the same or pursuant to which the same is outstanding, it is

provided that such obligations are not superior in right of payment to the

Capital Securities Guarantee or to other Debt which is pari passu with, or

subordinated to, the Capital Securities Guarantee; provided, however, that

Senior Debt shall not be deemed to include (i) any Debt of the Guarantor which

when incurred and without respect to any election under section 1111(b) of the

United States Bankruptcy Code of 1978, as amended, was without recourse to the

Guarantor, (ii) any Debt of the Guarantor to any of its subsidiaries, (iii) any

Debt to any employee of the Guarantor, (iv) any Debt which by its terms is

subordinated to trade accounts payable or accrued liabilities arising in the

ordinary course of business to the extent that payments made to the holders of

such Debt by the holders of the Junior Subordinated Debentures as a result of

the subordination provisions of the Indenture would be greater than they

otherwise would have been as a result of any obligation of such holders to pay

amounts over to the obligees on such trade accounts payable or accrued

liabilities arising in the ordinary course of business as a result of subordination

provisions to which such Debt is subject, (v) the Junior Subordinated

Debentures, and (vi) any other debt securities issued pursuant to the

Indenture.

 

“Trust Indenture Act” means the Trust Indenture Act of

1939, as amended.

 

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; and

 

(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 Guarantee Trustee with a list, in such form

as the Capital Guarantee Trustee may reasonably require, of the names and

addresses of the Holders of the Capital Securities (“List of Holders”) (i) on

or before January 1 and July 1 of each year, 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 Guarantee Trustee provided, that the Guarantor shall not be obligated

to provide such List of Holders at any time the List of Holders

 

4

 

does not differ from the most recent List of Holders given to the

Capital Guarantee Trustee by the Guarantor. 

The Capital Guarantee Trustee may destroy any List of Holders previously

given to it on receipt of a new List of Holders.

 

(b)           The

Capital Guarantee Trustee shall comply with its obligations under Sections

311(a), 311(b) and Section 312(b) of the Trust Indenture Act.

 

SECTION 2.3         Reports by the Capital Guarantee

Trustee

 

On or before July 15 of each year, the Capital

Guarantee Trustee shall provide to the Holders of the 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 Guarantee Trustee

shall also comply with the requirements of Section 313(d) of the Trust

Indenture Act.

 

SECTION 2.4         Periodic Reports to Capital Guarantee

Trustee

 

The Guarantor shall provide to the Capital Guarantee

Trustee such documents, reports and information as required by Section 314 of

the Trust Indenture Act, if any, and the compliance certificate required by

Section 314 of the Trust Indenture Act in the form, in the manner and at the

times required by Section 314 of the Trust Indenture Act.

 

SECTION 2.5         Evidence of Compliance with Conditions

Precedent

 

The Guarantor shall provide to the Capital 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 Officers’ Certificate.

 

SECTION 2.6         Events of

Default; Waiver

 

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 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         Event of

Default; Notice

 

(a)           The

Capital Guarantee Trustee shall, within 90 days after the occurrence of an

Event of Default, transmit by mail, first class postage prepaid, to the Holders

of the Capital Securities, notices of all Events of Default actually known to a

Responsible Officer of the Capital Guarantee Trustee, unless such defaults have

been cured before the giving of such notice, provided, that, the Capital

Guarantee Trustee shall be protected in withholding such notice if and so long

as a Responsible Officer of the Capital Guarantee Trustee in good faith

determines that the withholding of such notice is in the interests of the

Holders of the Capital Securities.

 

(b)           The

Capital Guarantee Trustee shall not be deemed to have knowledge of any Event of

Default unless the Capital Guarantee Trustee shall have received a properly

addressed written notice, or

 

5

 

of which a Responsible Officer of the Capital Guarantee Trustee charged

with the administration of the Trust Agreement shall have obtained actual

knowledge.

 

SECTION 2.8         Conflicting

Interests

 

The Trust Agreement 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 GUARANTEE TRUSTEE

 

SECTION

3.1         Powers and Duties of the Capital

Guarantee Trustee

 

(a)           This

Capital Securities Guarantee shall be held by the Capital Guarantee Trustee for

the benefit of the Holders of the Capital Securities, and the Capital Guarantee

Trustee shall not transfer this Capital Securities Guarantee to any Person

except a Holder of Capital Securities exercising his or her rights pursuant to

Section 5.4(b) or to a Successor Capital Guarantee Trustee on acceptance by

such Successor Capital Guarantee Trustee of its appointment to act as Successor

Capital Guarantee Trustee.  The right,

title and interest of the Capital Guarantee Trustee shall automatically vest in

any Successor Capital Guarantee Trustee, and such vesting and cessation of

title shall be effective whether or not conveyancing documents have been

executed and delivered pursuant to the appointment of such Successor Capital

Guarantee Trustee.

 

(b)           If

an Event of Default actually known to a Responsible Officer of the Capital

Guarantee Trustee has occurred and is continuing, the Capital Guarantee Trustee

shall enforce this Capital Securities Guarantee for the benefit of the Holders

of the Capital Securities.

 

(c)           The

Capital Guarantee Trustee, before the occurrence of any Event of Default and

after the curing of all Events of Default that may have occurred, shall

undertake to perform only such duties as are specifically set forth in this

Capital Securities Guarantee, and no implied covenants shall be read into this

Capital Securities Guarantee against the Capital 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 Guarantee Trustee, the Capital

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 Guarantee Trustee from liability for its own negligent action, its

own negligent failure to act, or its own willful misconduct, except that:

 

(i)            prior to the occurrence of any Event

of Default and after the curing or waiving of all such Events of Default that

may have occurred:

 

(A)          the duties and obligations of the

Capital Guarantee  Trustee shall be

determined solely by the express provisions of this  Capital Securities Guarantee, and the

 

6

 

Capital 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 Guarantee Trustee;

and

 

(B)           in the absence of bad faith on the

part of the Capital Guarantee Trustee, the Capital 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 Guarantee Trustee and conforming to the requirements of this Capital

Securities Guarantee; but in the case of any such certificates or opinions that

by any provision hereof are specifically required to be furnished to the

Capital Guarantee Trustee, the Capital Guarantee Trustee shall be under a duty

to examine the same to determine whether or not they conform to the

requirements of this Capital Securities Guarantee;

 

(ii)           the Capital Guarantee Trustee shall

not be liable for any error of judgment made in good faith by a Responsible

Officer of the Capital Guarantee Trustee, unless it shall be proved that the

Capital Guarantee Trustee was negligent in ascertaining the pertinent facts

upon which such judgment was made;

 

(iii)          the Capital Guarantee Trustee shall

not be liable with respect to any action taken or omitted to be taken by it in

good faith in accordance with the direction of the Holders of not less than a

Majority in liquidation amount of the Capital Securities relating to the time,

method and place of conducting any proceeding for any remedy available to the

Capital Guarantee Trustee, or exercising any trust or power conferred upon the

Capital Guarantee Trustee under this Capital Securities Guarantee; and

 

(iv)          no provision of this Capital

Securities Guarantee shall  require the

Capital 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 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 Guarantee Trustee, against

such risk or  liability is not

reasonably assured to it.

 

SECTION 3.2         Certain Rights of Capital Guarantee

Trustee

 

(a)           Subject

to the provisions of Section 3.1:

 

(i)            The Capital Guarantee Trustee may

conclusively rely upon, 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 shall be sufficiently

evidenced by an Officers’ Certificate.

 

7

 

(iii)          Whenever, in the administration of

this Capital Securities Guarantee, the Capital Guarantee Trustee shall deem it

desirable that a matter be proved or established before taking, suffering or

omitting any action hereunder, the Capital 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 Officers’ Certificate which,

upon receipt of such request, shall be promptly delivered by the Guarantor.

 

(iv)          The Capital Guarantee Trustee shall

have no duty to see to any recording, filing or registration of any instrument

(or any rerecording, refiling or registration thereof).

 

(v)           The Capital Guarantee Trustee may

consult with counsel, and the written 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.  Such counsel may be counsel to the Guarantor

or any of its Affiliates and may include any of its employees.  The Capital 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 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 Guarantee Trustee such

security and indemnity, reasonably satisfactory to the Capital Guarantee

Trustee, against the costs, expenses (including attorneys’ fees and expenses

and the expenses of the Capital 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 Guarantee Trustee; provided that, nothing contained in this Section

3.2(a)(vi) shall be taken to relieve the Capital 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 Guarantee Trustee shall not

be bound to make any investigation into the facts or matters stated in any

resolution, certificate, statement, instrument, opinion, report, notice,

request, direction, consent, order, bond, debenture, note, other evidence of

indebtedness or other paper or document, but the Capital 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 Guarantee Trustee may

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 Guarantee Trustee shall not be responsible for any misconduct or

negligence on the part of any agent or attorney appointed with due care by it

hereunder.

 

(ix)           Any action taken by the Capital

Guarantee Trustee or its agents hereunder shall bind the Holders of the Capital

Securities, and the signature of the Capital Guarantee Trustee or its agents

alone shall be sufficient and effective to perform any such action.  No third party shall be required to inquire

as to the authority of the Capital 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

Guarantee Trustee’s or its agent’s taking such action.

 

8

 

(x)            Whenever in the administration of

this Capital Securities Guarantee the Capital 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 Guarantee Trustee (i) may

request instructions from the Holders of a Majority in liquidation amount of

the 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.

 

(b)           No provision of this Capital

Securities Guarantee shall be deemed to impose any duty or obligation on the

Capital 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 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 Guarantee Trustee shall be construed to be a duty.

 

SECTION 3.3         Not Responsible for Recitals or

Issuance of Guarantee

 

The recitals contained in this Capital Securities

Guarantee shall be taken as the statements of the Guarantor, and the Capital

Guarantee Trustee does not assume any responsibility for their

correctness.  The Capital Guarantee

Trustee makes no representation as to the validity or sufficiency of this

Capital Securities Guarantee.

 

ARTICLE IV

CAPITAL GUARANTEE TRUSTEE

 

SECTION 4.1         Capital Guarantee Trustee; Eligibility

 

(a)           There

shall at all times be a Capital Guarantee Trustee which shall:

 

(i)            not

be an Affiliate of the Guarantor; 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 Securities and Exchange Commission to act as an institutional

trustee under the Trust Indenture Act, authorized under such laws to exercise

corporate trust powers, having a combined capital and surplus of at least

$50,000,000, 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 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 Guarantee Trustee shall cease to be eligible to so act

under Section 4.1(a), the Capital Guarantee Trustee shall immediately resign in

the manner and with the effect set out in Section 4.2(c).

 

(c)           If

the Capital Guarantee Trustee has or shall acquire any “conflicting interest”

within the meaning of Section 310(b) of the Trust Indenture Act, the

Capital Guarantee Trustee and Guarantor shall in all respects comply with the

provisions of Section 310(b) of the Trust Indenture Act.

 

9

 

SECTION 4.2         Appointment, Removal and Resignation of Capital

Guarantee Trustees

 

(a)           Subject

to Section 4.2(b), the Capital Guarantee Trustee may be appointed or removed

without cause at any time by the Guarantor.

 

(b)           The

Capital Guarantee Trustee shall not be removed in accordance with Section

4.2(a) until a Successor Capital Guarantee Trustee has been appointed and has

accepted such appointment by written instrument executed by such Successor

Capital Guarantee Trustee and delivered to the Guarantor.

 

(c)           The

Capital Guarantee Trustee appointed to office shall hold office until a

Successor Capital Guarantee Trustee shall have been appointed or until its

removal or resignation.  The Capital

Guarantee Trustee may resign from office (without need for prior or subsequent

accounting) by an instrument in writing executed by the Capital Guarantee

Trustee and delivered to the Guarantor, which resignation shall not take effect

until a Successor Capital Guarantee Trustee has been appointed and has accepted

such appointment by instrument in writing executed by such Successor Capital

Guarantee Trustee and delivered to the Guarantor and the resigning Capital

Guarantee Trustee.

 

(d)           If

no Successor Capital Guarantee Trustee shall have been appointed and accepted

appointment as provided in this Section 4.2 within 60 days after delivery to

the Guarantor of an instrument of resignation, the resigning Capital Guarantee

Trustee may petition any court of competent jurisdiction for appointment of a

Successor Capital Guarantee Trustee. 

Such court may thereupon, after prescribing such notice, if any, as it

may deem proper, appoint a Successor Capital Guarantee Trustee.

 

(e)           No

Capital Guarantee Trustee shall be liable for the acts or omissions to act of

any Successor Capital Guarantee Trustee.

 

(f)            Upon

termination of this Capital Securities Guarantee or removal or resignation of

the Capital Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall

pay to the Capital Guarantee Trustee all amounts 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 CFB Capital), as and when due, regardless of any

defense, right of set–off or counterclaim that CFB Capital 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 CFB Capital 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 CFB Capital 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.

 

10

 

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 CFB Capital of any express or implied agreement, covenant, term

or condition relating to the Capital Securities to be performed or observed by

CFB Capital;

 

(b)           the

extension of time for the payment by CFB Capital of all or any portion of the

Distributions, Redemption Price, Liquidation Distribution or any other sums

payable under the terms of the Capital Securities or the extension of time for

the performance of any other obligation under, arising out of, or in connection

with, the 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

Subordinated Debentures or any extension of the maturity date of the

Subordinated 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 Capital Securities, or any action on

the part of CFB Capital 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, CFB Capital or any of the assets of CFB Capital;

 

(e)           any

invalidity of, or defect or deficiency in, the Capital Securities;

 

(f)            the

settlement or compromise of any obligation guarantied 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 hereunder shall be absolute

and unconditional under any and all circumstances.

 

There shall be no obligation of the Holders to give

notice to, or obtain 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 Capital Securities have the

right to direct the time, method and place of conducting of any proceeding for

any remedy available to the Capital Guarantee Trustee in respect of this

Capital Securities Guarantee or exercising any trust or power conferred upon

the Capital Guarantee Trustee under this Capital Securities Guarantee.

 

(b)           Any

Holder of Capital Securities may institute a legal proceeding directly against

the Guarantor to enforce its rights under this Capital Securities Guarantee,

without first instituting a legal proceeding against CFB Capital, the Capital

Guarantee Trustee or any other Person.

 

11

 

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 Capital Securities against CFB Capital 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 CFB Capital with respect to the

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 (g), inclusive, of Section 5.3.

 

ARTICLE VI

LIMITATION OF TRANSACTIONS;

SUBORDINATION

 

SECTION 6.1         Limitation

of Transactions

 

So long as any Capital Securities remain outstanding,

if there shall have occurred an Event of Default or an event of default under

the Trust Agreement, then (a) the Guarantor shall not declare or pay any

dividend or distributions on, or redeem, purchase, acquire, or make a

liquidation payment with respect to, any of its capital stock, (b) the

Guarantor shall not make any payment of interest, principal or premium, if any,

on or repay, repurchase or redeem any debt securities issued by the Guarantor

(including other Junior Subordinated Debentures) which rank pari passu with or

junior in interest to the Junior Subordinated Debentures or (c) the Guarantor

shall not make any guarantee payments with respect to any guarantee by the

guarantor of the debt securities of any subsidiary of the Guarantor if such

guarantee ranks pari passu or junior in interest to the Junior Subordinated

Debentures (other than (a) dividends or distributions in common stock, (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 (d) purchases of common

stock related to the issuances of common stock or rights under any of the

Guarantor’s benefit plans for its directors, officers or employees).

 

12

 

 

SECTION 6.2         Ranking

 

This Capital Securities Guarantee will constitute an

unsecured obligation of the Guarantor and will rank subordinate and junior in

right of payment to all Senior and Subordinated Debt of the Guarantor.

 

ARTICLE VII

TERMINATION

 

SECTION 7.1         Termination

 

This Capital Securities Guarantee shall terminate upon

(i) full payment of the Redemption Price of all Capital Securities, (ii) upon

full payment of the amounts payable in accordance with the Trust Agreement upon

liquidation of CFB Capital or (iii) upon distribution of the Junior

Subordinated Debentures to the holders of the Capital Securities.

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 of Capital Securities must restore payment of any sums paid under the

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 of Capital Securities might properly be paid.

 

SECTION 8.2         Indemnification

 

The Guarantor agrees to indemnify each Indemnified

Person for, and to hold each Indemnified Person harmless against, any loss,

liability 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

 

13

 

against, or investigating, any claim or liability in connection with

the exercise or performance of any of its powers or duties hereunder.  The obligation to indemnify as set forth in

this Section 8.2 shall survive the termination of this Capital Securities

Guarantee.

 

ARTICLE IX

MISCELLANEOUS

 

SECTION 9.1         Successors and Assigns

 

All guaranties 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 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

Holders will be required), this Capital Securities Guarantee may only be

amended with the prior approval of the Holders of at least a Majority in

liquidation amount (including the stated amount that would be paid on

redemption, liquidation or otherwise, plus accrued and unpaid Distributions to

the date upon which the voting percentages are determined) of all the

outstanding Capital Securities. The provisions of Article VI of the Trust

Agreement with respect to meetings of Holders of the Securities apply to the

giving of such approval.

 

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 registered or certified mail, as

follows:

 

(a)           If

given to the Capital Guarantee Trustee, at the Capital Guarantee Trustee’s

mailing address set forth below (or such other address as the Capital Guarantee

Trustee may give notice of to the Holders of the Capital Securities):

 

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-0001

Attention: 

Corporate Trust Administration

 

(b)           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 Holders of the

Capital Securities):

 

Community First Bankshares, Inc.

520 Main Avenue

Fargo, ND 58124-0001

Attention: 

Craig A. Weiss, Chief Financial Officer

 

14

 

(c)           If

given to any Holder of Capital Securities, at the address set forth on the

books and records of CFB Capital.

 

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 Capital Securities Guarantee is solely for the

benefit of the Holders of the Capital Securities and, subject to Section

3.1(a), is not separately transferable from the Capital Securities.

 

SECTION 9.5         Governing Law

 

THIS CAPITAL SECURITIES GUARANTEE SHALL BE GOVERNED

BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF

MINNESOTA.

 

[Signature Page Follows]

 

15

 

THIS CAPITAL SECURITIES GUARANTEE is executed as of

the day and year first above written.

 

	

   

  	

  COMMUNITY FIRST BANKSHARES, INC.,

  
	

   

  	

  as Guarantor

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Mark A. Anderson

  
	

   

  	

   

  	

  Name:

  	

  Mark A. Anderson

  
	

   

  	

   

  	

  Title:

  	

  President and Chief Executive Officer

  
	

   

  	

   

  
	

   

  	

  WILMINGTON TRUST COMPANY,

  
	

   

  	

  As Capital Guarantee Trustee

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ James P. Lawler

  
	

   

  	

   

  	

  Name:

  	

  James P. Lawler

  
	

   

  	

   

  	

  Title:

  	

  Vice President

  
					

 

16

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