Document:

uup-ex43_404.htm

Exhibit 4.3

Description of Common Units 

of Beneficial Interest

 

Description of the Shares

 

The Fund issues common units of beneficial interest, or Shares, which represent units of fractional undivided beneficial interest in and ownership of the Fund. The Managing Owner has the power and authority to issue Shares from time to time as it deems necessary or desirable. The number of Shares authorized shall be unlimited, and the Shares so authorized may be represented in part by fractional Shares, calculated to four decimal places. From time to time, the Managing Owner may divide or combine the Shares into a greater or lesser number without thereby changing the proportionate beneficial interests. All Shares when so issued on the terms determined by the Managing Owner shall be fully paid and non-assessable. 

 

The Shares are listed on the NYSE Arca. The Shares may be purchased from the Fund or redeemed on a continuous basis, but only by Authorized Participants and only in blocks of 200,000 Shares, or Creation Units. Individual Shares may not be purchased from the Fund or redeemed. Shareholders of the Fund (“Shareholders”) that are not Authorized Participants may not purchase from the Fund or redeem Shares or Creation Units.

 

Dividend Rights

 

The Managing Owner has discretionary authority over all distributions made by the Fund. To the extent that the Fund’s actual and projected Treasury Income, Money Market Income and T-Bill ETF Income exceeds the actual and projected fees and expenses of the Fund, the Managing Owner expects periodically to make distributions of the amount of such excess. The Managing Owner currently does not expect to make distributions with respect to the Fund’s capital gains. Depending on the Fund’s performance for the taxable year and a Shareholder’s tax situation for such year, a Shareholder’s income tax liability for the taxable year for the allocable share of the Fund’s net ordinary income or loss and capital gain or loss may exceed any distributions the Shareholder receives with respect to such year.

 

Redemption Provisions

 

The Fund redeems Shares from time to time, but only in one or more Creation Units. Creation Units may be redeemed only by Authorized Participants. Except when aggregated in Creation Units, the Shares are not redeemable securities. Authorized Participants pay a transaction fee of $500 in connection with each order to redeem a Creation Unit and are subject to an additional processing charge for failure to timely deliver such orders. From time to time, the Managing Owner, in its sole discretion, may reimburse Authorized Participants for all or a portion of the processing fees from the Managing Owner’s own assets. Authorized Participants may sell the Shares included in the Creation Units they purchase from the Fund to other investors.

 

Authorized Participants are the only persons that may place orders to redeem Creation Units. Authorized Participants must be (1) registered broker-dealers or other securities market participants, such as banks and other financial institutions, which are not required to register as broker-dealers to engage in securities transactions, and (2) participants in DTC. To become an Authorized Participant, a person must enter into an agreement with the Fund and the Managing Owner (a “Participant Agreement”). The Participant Agreement sets forth the procedures for the redemption of Creation Units and for the payment of cash required for such redemptions. The Managing Owner may delegate its duties and obligations under the Participant Agreement to Invesco Distributors, the Administrator or the Transfer Agent, without consent 

from any Shareholder or Authorized Participant. The Participant Agreement may be amended by the Managing Owner only with the consent of the Authorized Participant, while the procedures attached thereto may be amended with notice to the Authorized Participant. Shareholder consent is not required in either case. To compensate the Transfer Agent for services in processing the creation and redemption of Creation Units, an Authorized Participant is required to pay a transaction fee of $500 per order to create or redeem Creation Units. Authorized Participants who purchase Creation Units from the Fund receive no fees, commissions or other form of compensation or inducement of any kind from either the Managing Owner or the Fund, and no such person has any obligation or responsibility to the Managing Owner or the Fund to effect any sale or resale of Shares.

 

Authorized Participants may act for their own accounts or as agents for broker-dealers, custodians and other securities market participants that wish to create or redeem Creation Units.

 

Shareholders who are not Authorized Participants will only be able to redeem their Shares through an Authorized Participant.

 

Redemption Procedures

 

The procedures by which an Authorized Participant can redeem one or more Creation Units mirror the procedures for the creation of Creation Units. On any business day, an Authorized Participant may place an order with the Transfer Agent to redeem one or more Creation Units. Redemption orders must be placed by 10:00 a.m., Eastern time. The day on which the Managing Owner receives a valid redemption order is the redemption order date. The day on which a redemption order is settled is the redemption order settlement date. As provided below, the redemption order settlement date may occur up to two business days after the redemption order date. The redemption procedures allow Authorized Participants to redeem Creation Units. Individual Shareholders may not redeem directly from the Fund. Instead, individual Shareholders may only redeem Shares in an amount equal to one or more whole Creation Units and only through an Authorized Participant.

 

By placing a redemption order, an Authorized Participant agrees to deliver the Creation Units to be redeemed through DTC’s book-entry system to the Fund not later than the redemption order settlement date as of 2:45 p.m., Eastern time, on the business day immediately following the redemption order date. Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to two business days after the redemption order date. By placing a redemption order, and prior to receipt of the redemption proceeds, an Authorized Participant’s DTC account is charged the non-refundable transaction fee due for the redemption order.

 

Determination of Redemption Proceeds

 

The redemption proceeds from the Fund consist of the cash redemption amount. The cash redemption amount is equal to the NAV of the number of Creation Unit(s) requested in the Authorized Participant’s redemption order as of the closing time of the NYSE Arca or the last to close of the exchanges on which the Fund’s futures contracts are traded, whichever is later, on the redemption order date. The Managing Owner will distribute the cash redemption amount at 2:45 p.m., Eastern time, on the redemption order settlement date through DTC to the account of the Authorized Participant as recorded on DTC’s book entry system.

 

Delivery of Redemption Proceeds

 

The redemption proceeds due from the Fund are delivered to the Authorized Participant at 2:45 p.m., Eastern time, on the redemption order settlement date if, by such time, the Fund’s DTC account has been 

credited with the Creation Units to be redeemed. If the Fund’s DTC account has not been credited with all of the Creation Units to be redeemed by such time, the redemption distribution is delivered to the extent of whole Creation Units received. Any remainder of the redemption distribution is delivered on the next business day to the extent of remaining whole Creation Units received if the Transfer Agent receives the fee applicable to the extension of the redemption distribution date which the Managing Owner may, from time to time, determine and the remaining Creation Units to be redeemed are credited to the Fund’s DTC account by 2:45 p.m., Eastern time, on such next business day. Any further outstanding amount of the redemption order will be cancelled. The Managing Owner is also authorized to deliver the redemption distribution notwithstanding that the Creation Units to be redeemed are not credited to the Fund’s DTC account by 2:45 p.m., Eastern time, on the redemption order settlement date if the Authorized Participant has collateralized its obligation to deliver the Creation Units through DTC’s book entry system on such terms as the Managing Owner may determine from time to time.

 

Suspension, Postponement or Rejection of Redemption Orders

 

The Managing Owner may, in its discretion, suspend the right of redemption, or postpone the redemption order settlement date (1) for any period during which an emergency exists as a result of which the redemption distribution is not reasonably practicable, or (2) for such other period as the Managing Owner determines to be necessary for the protection of the Shareholders. The Managing Owner will not be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.

 

The Managing Owner or the Transfer Agent may reject a redemption order if the order is not in proper form as described in the Participant Agreement. The Managing Owner or the Transfer Agent will reject a redemption order if the acceptance or receipt of the order, in the opinion of its counsel, might be unlawful.

 

Voting Rights

 

Shareholders take no part in the management or control, and have no voice in the operations or the business of the Fund. Shareholders, may, however, remove and replace the Managing Owner as the managing owner of the Fund, and may amend the Trust Agreement, except in certain limited respects, by the affirmative vote of a majority of the outstanding Shares then owned by Shareholders (not including Shares held by the Managing Owner and its affiliates). The owners of a majority of the outstanding Shares then owned by Shareholders may also compel dissolution of the Fund. The owners of 10% of the outstanding Shares then owned by Shareholders have the right to bring a matter before a vote of the Shareholders. The Managing Owner has no power under the Trust Agreement to restrict any of the Shareholders’ voting rights. Any Shares purchased by the Managing Owner or its affiliates, as well as the Managing Owner’s general interests in the Fund, are non-voting.

 

Any action required or permitted to be taken by Shareholders by vote may be taken without a meeting by written consent setting forth the actions so taken. The written consents will be treated for all purposes as votes at a meeting. If the vote or consent of any Shareholder to any action of the Fund or any Shareholder, as contemplated by the Trust Agreement, is solicited by the Managing Owner, the solicitation will be effected by notice to each Shareholder given in the manner provided by the Trust Agreement.

 

The Trust Agreement permits the approval of actions through the negative consent of Shareholders. As provided in the Trust Agreement, the vote or consent of each Shareholder so solicited will be deemed conclusively to have been cast or granted as requested in the notice of solicitation, whether or not the notice of solicitation is actually received by that Shareholder, unless the Shareholder expresses written objection to the vote or consent by notice given in the manner provided in the Trust Agreement and actually received by the Fund within twenty (20) days after the notice of solicitation is effected. Because the Trust Agreement 

provides for negative consent (e.g., that Shareholders are deemed to have consented unless they timely object), a Shareholder’s consent will be deemed conclusively to have been granted with respect to any matter for which the Managing Owner may solicit Shareholder consent unless the Shareholder expresses written objection in the manner required by the Trust Agreement and the written objection is actually received by the Trust within twenty (20) days after the notice of solicitation is effected. This means that not responding to the vote or consent solicitation would have the same effect as responding with affirmative written consent. For example, in the context of a consent solicitation to change the managing owner or any other action, a Shareholder’s lack of a response will have the same effect as if the Shareholder had provided affirmative written consent for the proposed action.

 

The Managing Owner and all persons dealing with the Fund will be entitled to act in reliance on any vote or consent which is deemed cast or granted pursuant to the negative consent provision and will be fully indemnified by the Fund in so doing. Any action taken or omitted in reliance on this deemed vote or consent of one or more Shareholders will not be void or voidable by reason of timely communication made by or on behalf of all or any of these Shareholders in any manner other than as expressly provided in the Trust Agreement.

 

The Managing Owner has the unilateral right to amend the Trust Agreement, provided that any such amendment is for the benefit of and not adverse to the Shareholders or the Trustee and also in certain unusual circumstances, for example, if doing so is necessary to comply with certain regulatory requirements.

 

Please note that capitalized terms not defined herein should be given the same meaning provided in the Fund’s most recently filed 10-K.Exhibit

Exhibit 4.1

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

Bankwell Financial Group, Inc., a Connecticut corporation (the “Company”), has the following 
classes of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.

DESCRIPTION OF COMMON STOCK

The following description of the Company’s common stock is a summary and does not purport to be complete.  It is subject to and qualified in its entirety by reference to the Company’s Certificate of Incorporation, as amended, and the Company’s Amended and Restated Bylaws, each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this exhibit is a part.  We encourage you to read the Company’s Certificate of Incorporation, as amended, the Company’s Amended and Restated Bylaws, and the applicable provisions of the Connecticut Business Corporation Act for additional information.

Authorized Shares 
Under the Company’s certificate of incorporation, the Company has authority to issue 10,000,000 shares of common stock, no par value per share.  

Voting
Each holder of the Company’s common stock is entitled to one vote for each share on all matters submitted to the shareholders, except as otherwise required by law and subject to the rights and preferences of the holders of outstanding shares of the Company’s preferred stock, if any. Holders of the Company’s common stock are not entitled to cumulative voting in the election of directors.

Dividends and other distributions
Subject to certain regulatory restrictions and to the rights of holders of any preferred stock that the Company may issue, holders of common stock are entitled to receive dividends from legally available funds, when, as and if declared by the Company’s board of directors.  If the Company liquidates or dissolves, holders of common stock are entitled to share ratably in the Company’s assets once the Company’s debts and liabilities (including all deposits in Bankwell Bank and interest accrued thereon) and any liquidation preference owed to any holders of then-outstanding preferred stock are paid. 

Preemptive Rights
The terms of the Company’s common stock do not entitle the Company’s shareholders to preemptive rights with respect to any shares of capital stock which may be issued. 

Anti-Takeover Effect of Governing Documents
Certain provisions of the Company’s Certificate of Incorporation, as amended, and Amended and Restated Bylaws highlighted below may have anti-takeover effects and may delay, prevent or make more difficult unsolicited tender offers or takeover attempts that a shareholder may consider to be in his or her best interest, including those attempts that might result in a premium over the market price for the shares held by shareholders. These provisions may also have the effect of making it more difficult for third parties to cause the replacement of the Company’s management. Among other things, the Company’s Certificate of Incorporation, as amended, and Amended and Restated Bylaws:

		
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	restrict the exercise of voting rights by “interested shareholders,” as described below, for the amendment of certain provisions of the Company’s Certificate of Incorporation and Amended and Restated Bylaws;

		
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	prohibit shareholder action by written consent in lieu of a meeting;

		
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	prohibit business combinations with an “interested shareholder,” as described below, for five years following an acquisition of shares by such “interested shareholder,” unless approved by the Company’s board of directors;

		
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	enable the Company’s board of directors to issue “blank check” preferred stock up to the authorized amount, with such preferences, limitations and relative rights, including voting rights, as may be determined from time to time by the Company’s board of directors;

		
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	prohibit the acquisition of 10% or more of the Company’s outstanding voting stock unless approved by at least 2/3 of the Company’s directors then in office;

		
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	prohibit any person from making an offer to acquire 10% or more of the Company’s outstanding voting stock without prior notice to the Company’s board, and in case the board has disapproved such offer within 15 days following such notice;

		
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	allow the Company’s board of directors, when considering any tender or exchange offer for the Company’s stock, or proposal to merge, to take into account factors other than the interests of the Company’s shareholders, such as long-term and short-term interests of the corporation, and the interests of the Company’s employees, customers, creditors, suppliers, and the Company’s surrounding community;

		
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	provide for the limitation of liability and indemnification of the Company’s officers and directors;

		
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	require a 60% vote of the Company’s shareholders to repeal the sections of the Company’s certificate of incorporation addressing limitation of liability and indemnification of the Company’s officers and directors;

		
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	prohibit the removal of directors other than for cause, or by a vote of at least 2/3 of the Company’s directors then in office, or by an affirmative vote of at least 80% of the voting power of the Company’s outstanding voting stock;

		
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	enable the Company’s board of directors to increase, between annual meetings, the number of persons serving as directors and to fill the vacancies created as a result of the increase by a majority vote of the directors present at the meeting;

		
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	provide that only the Company’s Chairman, the Company’s President or a majority of the Company’s board of directors have the ability to call a special meeting of the Company’s shareholders;

		
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	do not provide for cumulative voting rights (therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose); and

		
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	establish an advance notice procedure with regard to business to be brought before an annual or special meeting of shareholders and with regard to the nomination of candidates for election as directors, other than by or at the direction of the Company’s board of directors.

The amendment of certain provisions of the Company’s Certificate of Incorporation, as amended, including, without limitation, provisions governing certain business combinations, special meetings of shareholders, director liability, removal of directors, nominations for directors, action by shareholders, approval for certain acquisitions and offers to acquire voting stock and consideration for merger consolidation or other offers must be approved by the affirmative vote of the holders of not less than sixty percent (60%) of the issued and outstanding shares of the Company’s capital stock entitled to vote thereon. In case the Company has an “interested shareholder,” the affirmative vote of not less than sixty percent (60%) of the issued and outstanding shares of the Company’s capital stock entitled to vote thereon other than shares held by the “interested shareholder” is required. An “interested shareholder” is defined in the Company’s Certificate of Incorporation, as amended, as any person who beneficially owns ten percent or more of the voting power of the Company’s outstanding voting stock, or who is an affiliate or associate of the Company’s (as defined under Connecticut corporate law) and has beneficially owned ten percent or more of the voting power of the Company’s outstanding voting stock at any time within the five years immediately preceding such vote, or any successor or transferee of such shares held by an “interested shareholder” at any time within such five-year period.

Our Amended and Restated Bylaws may be altered, amended, added to or repealed either by the affirmative vote of the holders of a majority of stock entitled to vote thereon or by the affirmative vote of a majority of the Company’s board of directors. However, the affirmative vote of sixty percent (60%) of the issued and outstanding shares entitled to vote thereon is required (i) by the terms of the Company’s Amended and Restated Bylaws, to amend certain bylaw provisions, including those dealing with shareholders’ meetings (including annual meetings), shareholder nomination of director candidates, removal of directors and filling of vacancies on the Company’s board of directors; and (ii) by the terms of the Company’s Certificate of Incorporation, as amended, for any shareholder action effecting an amendment or repeal of or an adoption of a provision inconsistent with the Company’s Amended and Restated Bylaws. In all such cases, if there is an “interested shareholder,” as described above, the sixty percent (60%) vote must include the affirmative vote of the issued and outstanding shares entitled to vote thereon held by shareholders other than the interested shareholder.

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