COMMON SECURITIES GUARANTEE AGREEMENT METLIFE CAPITAL TRUST V DATED AS OF , 200
TABLE OF CONTENTS
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ARTICLE I |
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DEFINITIONS AND INTERPRETATIONS |
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ARTICLE II |
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GUARANTEE |
3 | |||
SECTION 2.1 Guarantee |
3 | |||
SECTION 2.2 Waiver of Notice and Demand |
3 | |||
SECTION 2.3 Obligations Not Affected |
4 | |||
SECTION 2.4 Rights of Holders |
4 | |||
SECTION 2.5 Guarantee of Payment |
5 | |||
SECTION 2.6 Subrogation |
5 | |||
SECTION 2.7 Independent Obligations |
5 | |||
ARTICLE III |
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SUBORDINATION |
5 | |||
ARTICLE IV |
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TERMINATION |
5 | |||
ARTICLE V |
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MISCELLANEOUS |
6 | |||
SECTION 5.1 Successors and Assigns |
6 | |||
SECTION 5.2 Amendments |
6 | |||
SECTION 5.3 Notices |
6 | |||
SECTION 5.4 Benefit |
6 | |||
SECTION 5.5 Governing Law |
7 | |||
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This GUARANTEE AGREEMENT (the “Common Securities Guarantee”), dated as of , 200 is
executed and delivered by MetLife, Inc., a Delaware corporation (the “Guarantor”) for the benefit
of the Holders (as defined herein) from time to time of the Common Securities (as defined herein)
of MetLife Capital Trust V, a Delaware statutory trust (the “Issuer”).
WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Declaration”), dated
as of , 200 among the trustees of the Issuer named therein, the Guarantor, as sponsor, and
the holders from time to time of undivided beneficial interests in the assets of the Issuer, the
Issuer is issuing on the date hereof preferred securities, liquidation amount $ per
preferred security, having an aggregate liquidation amount of $ designated the %
Preferred Securities (the “Preferred Securities”);
WHEREAS, pursuant to the Declaration, the Issuer is issuing on the date hereof common
securities, liquidation amount $ per common security, having an aggregate liquidation amount
of $ designated the % Common Securities (the “Common Securities”);
WHEREAS, as incentive for the Holders to purchase the Common Securities, the Guarantor desires
irrevocably and unconditionally to agree, to the extent set forth in this Common Securities
Guarantee, to pay to the Holders the Guarantee Payments (as defined herein) and to make certain
other payments on the terms and conditions set forth herein; and
WHEREAS, the Guarantor is also executing and delivering a guarantee agreement (the “Preferred
Securities Guarantee”) in substantially identical terms to this Common Securities Guarantee for the
benefit of the holders of the Preferred Securities, except that if an event of default under the
Indenture (as defined herein), has occurred and is continuing, the rights of Holders of the Common
Securities to receive Guarantee Payments under this Common Securities Guarantee are subordinated to
the rights of holders to receive Guarantee Payments under the Preferred Securities Guarantee.
NOW, THEREFORE, in consideration of the purchase by each Holder, which purchase the Guarantor
hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers this Common
Securities Guarantee for the benefit of the Holders.
ARTICLE I
DEFINITIONS AND INTERPRETATIONS
DEFINITIONS AND INTERPRETATIONS
In this Common Securities Guarantee, unless the context otherwise requires:
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(a) capitalized terms used in this Common Securities Guarantee but not defined in the
preamble above have the respective meanings assigned to them in this Article I;
(b) a term defined anywhere in this Common Securities Guarantee has the same meaning
throughout;
(c) all references to “the Common Securities Guarantee” or “this Common Securities
Guarantee” are to this Common Securities Guarantee as modified, supplemented or amended from
time to time;
(d) all references in this Common Securities Guarantee to Articles and Sections are to
Articles and Sections of this Common Securities Guarantee, unless otherwise specified;
(e) a term defined in the Trust Indenture Act has the same meaning when used in this
Common Securities Guarantee, unless otherwise defined in this Common Securities Guarantee or
unless the context otherwise requires; and
(f) a reference to the singular includes the plural and vice versa.
“Affiliate” has the same meaning as given in the Indenture.
“Debenture Issuer” means the Guarantor in its capacity as the issuer of the Debentures.
“Debentures” means the series of debentures of the Guarantor designated [ ]
held by the Property Trustee (as defined in the Declaration) of the Issuer.
“Distribution” has the same meaning as given in the Declaration.
“Event of Default” means a default by the Guarantor on any of its payment or other
obligations under this Common Securities Guarantee.
“Guarantee Payments” means the following payments or distributions, without duplication,
with respect to the Common Securities, to the extent not paid or made by the Issuer:
(i) any accrued and unpaid Distributions (as defined in the Declaration) that are
required to be paid on such Common Securities to the extent the Issuer shall have funds
available therefor, and
(ii) upon a voluntary or involuntary dissolution, winding-up or termination of the
Issuer (other than in connection with the distribution of Debentures to the Holders in
exchange for Common Securities as provided in the Declaration), the lesser of (a) the
aggregate of the liquidation amount of such Common Securities plus all accrued and unpaid
Distributions on such Common Securities to and including the date of payment, to the extent
the Issuer shall have funds available therefor, and (b) the amount of assets of
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the Issuer remaining available for distribution to Holders in liquidation of the Issuer
(amounts in clause (a) or (b), the “Liquidation Distribution”).
If an event of default under the Indenture has occurred and is continuing, the rights of
Holders of the Common Securities to receive payments under this Common Securities Guarantee
Agreement are subordinated to the rights of holders of Preferred Securities to receive Guarantee
Payments under the Preferred Securities Guarantee Agreement.
“Holder” shall mean any holder, as registered on the books and records of the Issuer, of any
Common Securities.
“Indenture” has the same meaning as given in the Declaration.
“Majority in liquidation amount of the Common Securities” means, except as provided by the
Trust Indenture Act, a vote by Holders of Common Securities, voting separately as a class, of more
than 50% of the aggregate liquidation amount (including the stated amount that would be paid on
liquidation or otherwise) of all Common Securities.
ARTICLE II
GUARANTEE
GUARANTEE
SECTION 2.1 Guarantee
The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the
Guarantee Payments (without duplication of amounts theretofore paid by the Issuer), as and when
due, regardless of any defense, right of set-off or counter-claim that the Issuer may have or
assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment
of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay
such amounts to the Holders.
If an event of default under the Indenture has occurred and is continuing, the rights of
Holders of the Common Securities to receive Guarantee Payments under this Common Securities
Guarantee are subordinated to the rights of holders to receive Guarantee Payments under the
Preferred Securities Guarantee.
SECTION 2.2 Waiver of Notice and Demand
The Guarantor hereby waives notice of acceptance of this Common Securities Guarantee and of
any liability to which it applies or may apply, presentment, demand for payment, any right to
require a proceeding first against the Issuer or any other Person before proceeding against the
Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.
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SECTION 2.3 Obligations Not Affected
The obligations, covenants, agreements and duties of the Guarantor under this Common
Securities Guarantee shall in no way be affected or impaired by reason of the happening from time
to time of any of the following:
(a) the release or waiver, by operation of law or otherwise, of the performance or
observance by the Issuer of any express or implied agreement, covenant, term or condition
relating to the Common Securities to be performed or observed by the Issuer;
(b) 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 Common Securities, or any action on the part of the Issuer
granting indulgence or extension of any kind;
(c) the voluntary or involuntary liquidation, dissolution, sale of any collateral,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the
Issuer or any of the assets of the Issuer;
(d) any invalidity of, or defect or deficiency in, the Common Securities;
(e) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or
(f) 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 2.3 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 the consent of, the
Guarantor with respect to the happening of any of the foregoing.
SECTION 2.4 Rights of Holders
(a) The Holders of a Majority in liquidation amount of Common Securities may by vote, on
behalf of the Holders of all of the Common 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 Common
Securities Guarantee, but no such waiver shall extend to any subsequent or other default or
Event of Default or impair any right consequent thereon.
(b) Any Holder may institute a legal proceeding directly against the Guarantor to enforce
its rights under this Common Securities Guarantee, without first instituting a legal proceeding
against the Issuer or any other Person. Notwithstanding the foregoing, if the Guarantor has
failed to make a Guarantee Payment, a Holder may directly institute a
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proceeding against the Guarantor for enforcement of the Common Securities Guarantee for such
payment. The Guarantor waives any right or remedy to require that any action on this Common
Securities Guarantee be brought first against the Issuer or any other person or entity before
proceeding directly against the Guarantor.
SECTION 2.5 Guarantee of Payment
This Common Securities Guarantee creates a guarantee of payment and not of collection.
SECTION 2.6 Subrogation
The Guarantor shall be subrogated to all rights, if any, of the Holders against the Issuer in
respect of any amounts paid to such Holders by the Guarantor under this Common 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 Common Securities Guarantee, if, at the time of any such payment, any amounts
are due and unpaid under this Common 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 2.7 Independent Obligations
The Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Issuer with respect to the Common Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Common
Securities Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (f), inclusive, of Section 2.3 hereof.
ARTICLE III
SUBORDINATION
SUBORDINATION
This Common Securities Guarantee will constitute an unsecured obligation of the Guarantor and
will rank (i) subordinate and junior in right of payment to all other liabilities of the Guarantor,
except those obligations or liabilities ranking equal or subordinate to the Common Securities
Guarantee by their terms, (ii) equally with any other securities, liabilities or obligations that
may have equal ranking by their terms; and (iii) senior to the Guarantor’s Common Stock, $0.01 par
value.
ARTICLE IV
TERMINATION
TERMINATION
This Common Securities Guarantee shall terminate upon (i) the distribution of the Debentures
to all Holders or (ii) full payment of the amounts payable in accordance with the Declaration upon
liquidation of the Issuer. Notwithstanding the foregoing, this Common
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Securities Guarantee will continue to be effective or will be reinstated, as the case may be, if at
any time any Holder must restore payment of any sums paid under the Common Securities or under this
Common Securities Guarantee.
ARTICLE V
MISCELLANEOUS
MISCELLANEOUS
SECTION 5.1 Successors and Assigns
All guarantees and agreements contained in this Common 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 Common Securities then outstanding.
SECTION 5.2 Amendments
Except with respect to any changes that do not adversely affect the rights of Holders (in
which case no consent of Holders will be required), this Common Securities Guarantee may only be
amended with the prior approval of the Holders of at least a Majority in liquidation amount of the
outstanding Common Securities. The provisions of Section 12.2 of the Declaration with respect to
meetings of Holders apply to the giving of such approval.
SECTION 5.3 Notices
All notices provided for in this Common Securities Guarantee shall be in writing, duly signed
by the party giving such notice, and shall be delivered by registered or certified mail, as
follows:
(a) 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):
MetLife, Inc.
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Attention: Corporate Treasurer
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Attention: Corporate Treasurer
(b) If given to any Holder, at the address set forth on the books and records of the
Issuer.
All such notices shall be deemed to have been given when received in person, 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 5.4 Benefit
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This Common Securities Guarantee is solely for the benefit of the Holders and is not
separately transferable from the Preferred Securities.
SECTION 5.5 Governing Law
THIS COMMON SECURITIES GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF LAWS.
THIS COMMON SECURITIES GUARANTEE is executed as of the day and year
first above written.
| METLIFE, INC., | ||||||
| as Guarantor | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
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