STOCKHOLDERS’ LIQUIDATING TRUST AGREEMENT
GLOBAL PREFERRED HOLDINGS, INC.
STOCKHOLDERS’ LIQUIDATING TRUST AGREEMENT
THIS STOCKHOLDERS’ LIQUIDATING TRUST AGREEMENT (this “Trust Agreement”), made as of the 17th day of May, 2006 among GLOBAL PREFERRED HOLDINGS, INC., a dissolved corporation in the process of liquidating and winding up its affairs under the laws of the State of Delaware (the “Company”), ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, as administrator (the “Administrator”), WILMINGTON TRUST COMPANY, as a trustee (the “Resident Trustee”) and ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ and ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ as additional trustees (collectively, the “Managing Trustees” and, with the Resident Trustee, the “Trustees”). The parties hereto hereby agree as follows:
WITNESSETH :
WHEREAS, the Board of Directors has adopted and the stockholders of the Company, at a meeting held May 10, 2005, have approved a Plan of Complete Liquidation and Dissolution of the Company, which provided, inter alia, for the filing of a Certificate of Dissolution (the “Certificate of Dissolution”) pursuant to the provisions of Section 275 of the General Corporation Law of the State of Delaware (the “DGCL”);
WHEREAS, the Company was dissolved on June 1, 2005, by filing of the Certificate of Dissolution with the Secretary of State of the State of Delaware;
WHEREAS, there are or may be creditors of the Company who have contingent, conditional, unmatured or unliquidated claims against the Company or whose liquidated claims are not feasible to settle at this time, and there may be persons who have claims against the Company that have not yet been made known to the Company or claims that have otherwise not yet arisen;
WHEREAS, the Company’s Plan of Complete Liquidation and Dissolution provides for this Trust Agreement and the trust described herein (the “Trust”), and authorizes the transfer of all of the Company’s assets to the Trust; and
WHEREAS, the Trust was formed by the Resident Trustee pursuant to the Certificate of Trust attached hereto as Exhibit A, filed by the Resident Trustee with the Delaware Secretary of State on May 15, 2006, and a Trust Agreement (the “Initial Trust Agreement”) of even date therewith executed by the Resident Trustee, which Initial Trust Agreement is hereby amended and restated in its entirety by this Trust Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein:
ARTICLE I
The Trust
1.1 Trust Name. The Trust shall be known as “GPH LIQUIDATING TRUST” in which name the Administrator may conduct the business of the Trust, make and execute contracts, and ▇▇▇ and be sued.
1.2 Delaware Statutory Trust Status. It is the intention of the parties hereto that the Trust constitute a statutory trust under Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. § 3801 et seq., and that this document amend and restate in its entirety the Initial Trust Agreement and constitute the governing instrument of the Trust. The Trustees, and each of them, ratify and approve the Certificate of Trust filed by the Resident Trustee with the Delaware Secretary of State on May 15, 2006, in the form attached hereto as Exhibit A.
1.3 Grantor Trust Status. The Trust is intended to be a liquidating trust within the meaning of United States Treasury Department Regulation §301.7701-4(d) that is treated as a grantor trust, of which the “Former Stockholders” (as defined below), are the owners, within the meaning of Section 671 et seq. of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly.
1.4 Transfer to Trust. The Company hereby transfers, conveys and assigns to the Trust and the Trust hereby accepts the Company’s entire right, title and interest in and to all assets (tangible or intangible, known or unknown, whether personal property, real property or mixed) which the Company owns, holds or otherwise possesses (the “Assets”) and all proceeds and income therefrom, including from investment and reinvestment in respect thereof (together with the Assets, the “Trust Property”). The Trust Property is transferred and assigned to the Trust, and the Trust shall hold and deal with the Trust Property, in trust for the purpose of satisfying liabilities of the Company and of the Trust for the ultimate benefit of the “Beneficiaries” (as hereinafter defined), on the terms and conditions herein set forth. It is the intention of the parties that the Trust shall acquire title to the Assets and Trust Property so that the liquidation of the Trust Property shall be completed within three (3) years from the date of the Company’s dissolution, and that all claims and obligations of the Company shall be paid or otherwise provided for as contemplated by the Company’s Plan of Complete Liquidation and Dissolution.
1.5 Payment of Liabilities. The Company hereby assigns to the Trust and the Trust hereby assumes all remaining liabilities and claims (including unascertained or contingent liabilities and expenses) of the Company. Should any liability be asserted against the Trust as a result of the assumption of any liability pursuant to this Section 1.5, the Administrator may use such part of the Trust Property as may be necessary in contesting any such liability or in payment thereof.
The Trust shall proceed, in a timely manner, to liquidate the Trust Property and satisfy the claims of creditors in accordance with the procedures set forth in Section 281(b) of the DGCL. Valid claims against or obligations of the Company shall be paid in full and any such provision for payment shall be made in full if there is sufficient Trust Property in the Trust. If there is insufficient Trust Property in the Trust, such claims and obligations shall be paid or provided for according to their priority and, among claims of equal priority, ratably to the extent of Trust Property legally available therefor. Assets remaining after the liquidation of the Trust Property and the satisfaction of all claims will be distributed to the Beneficiaries in accordance herewith and Section 281(b) of the DGCL.
ARTICLE II
Beneficiaries
2.1 Stockholders as Beneficiaries. The stockholders of the Company as of the effectiveness of the Certificate of Dissolution (collectively, the “Former Stockholders”) shall be the initial Beneficiaries of the Trust with the same beneficial interest (“Beneficial Interest”) in the Trust as the Former Stockholders held in the Company based on their respective rights, powers and preferences as stockholders of the Company determined in accordance with the Certificate of Incorporation of the Company, as amended, taking into account any liquidating distributions paid to the stockholders of the Company prior to the date hereof. Exhibit B hereto shall be a list of stockholders of the Company as of the effectiveness of the Certificate of Dissolution, which list shall contain the names of such stockholders and the number of shares and class and series of shares of capital stock of the Company owned both of record and beneficially by such stockholders on such date. Each distribution by the Trust to the Beneficiaries shall be made to the Former Stockholders, or their legal representatives or successors in interest authorized by Section 2.4 hereof (together with the Former Stockholders, the “Beneficiaries”), according to their Beneficial Interest in the Trust.
2.2 Record of Beneficiaries. The Trust shall maintain a record of the names of each Beneficiary and such Beneficiary’s Beneficial Interest in the Trust.
2.3 Surrender of Stock Certificates. The Managing Trustees, in their absolute discretion, may in connection with any distribution require each Beneficiary to (i) surrender their certificates evidencing capital stock of the Company (“Stock Certificates”) to the Administrator or her agent, or (ii) furnish the Trust with evidence satisfactory to the Administrator of the loss, theft or destruction of their Stock Certificates, together with such surety bond or other security or indemnity as may be required by and satisfactory to the Administrator. The Managing Trustees, in their absolute discretion, shall determine whether or not to issue certificates representing Beneficial Interests in the Trust (the “Trust Certificates”).
2.4 Transfer of Interests. The Beneficial Interest of a Beneficiary in the Trust may not be transferred in any manner whatsoever (including, without limitation, by sale, exchange, gift, pledge or creation of a security interest) except (a) by bequest or inheritance in the case of an individual stockholder or (b) by operation of law. All Trust Certificates, if any, issued hereunder will bear an appropriate legend restricting their transfer to these instances alone.
2.5 Missing Beneficiaries. A Missing Beneficiary shall be defined as (a) a stockholder on the date of the closing of the transfer books of the Company who has neither surrendered his Stock Certificates nor provided the Administrator with an indemnity bond in the event of loss, theft or destruction thereof, or (b) a stockholder who has not cashed one or more checks issued to him by the Trust in payment of liquidating distributions or has not properly endorsed any document required by a delivery service in connection with the delivery of property addressed to him as part of a liquidating distribution. If a notice or distribution is mailed by the Trust to a Beneficiary and either the notice is returned by the United States Postal Service to the Trust as undeliverable or any check included in such notice is not cashed within a reasonable period of time, such Beneficiary shall thereafter be a Missing Beneficiary. The Trust shall deal with Missing Beneficiaries in accordance with applicable escheat laws and shall give notice as required by such escheat laws.
ARTICLE III
Purpose, Limitations and Distributions
3.1 Purpose of Trust. This Trust is established for the sole purpose of holding the Trust Property on behalf of the Beneficiaries, enforcing the rights of the Beneficiaries thereto, collecting the income thereon, determining and satisfying any liabilities of the Company (including identification and satisfaction of claims in accordance with the DGCL), distributing the remaining Trust Property to the Beneficiaries, and taking such other action as is necessary to conserve and protect the Trust Property and to provide for the orderly investment, conservation, liquidation and eventual distribution of any and all of the Trust Property. Under no circumstances shall the Trust or the Administrator hereunder have any power to continue or engage in any trade or business or in any other activity except as is necessary to the foregoing, and this limitation shall apply irrespective of whether the conduct of any business activities is deemed by the Administrator to be convenient, desirable, necessary or proper for the conservation and protection of the Trust Property.
3.2 Operation of Trust; Distributions to Beneficiaries. The Administrator, on behalf of the Trust, shall receive and hold all the Assets and Trust Property and shall make payments from the Trust to claimants in accordance with Sections 1.4 and 1.5 of this Trust Agreement. From time to time, when in the judgment of the Managing Trustees there remain in the Trust funds in excess of the amounts necessary to pay or otherwise provide for all claims against or obligations of the Company and the Trust, such excess funds may be distributed to the Beneficiaries. No payments shall be made to the Beneficiaries in their capacity as Beneficiaries unless the Managing Trustees have determined that the funds in the Trust, together with reasonably anticipated additional funds, will be sufficient to pay or otherwise provide for all liabilities and claims of the Company. Once (i) all claims have been paid or otherwise provided for, and (ii) the Beneficiaries have surrendered their Trust Certificates, if any, or Stock Certificates, if applicable, the balance of the Trust Property shall then be distributed to the Beneficiaries in accordance with the last paragraph of Section 1.5 hereof at such time as the Managing Trustees determine. Such distributions to Beneficiaries shall be made in accordance with Section 2.1 hereof, provided, however, that no distribution shall be made to Beneficiaries without first reasonably satisfying or adequately providing for (i) a reserve for the reasonable expenses incurred or to be incurred by, or on behalf of, the Trustees or the Trust and (ii) a reasonable reserve for payments to be paid to Missing Beneficiaries, if any. In addition, the Managing Trustees may, subject to the proviso in the preceding sentence, distribute any of the Trust Property to the Beneficiaries in kind. The Administrator shall take such action as she deems appropriate to enforce the rights of the Trust to the Trust Property so that the Beneficiaries may receive the full benefit thereof. Notwithstanding anything contained herein to the contrary, under no circumstances may the Trust, or the Administrator or Trustees on behalf of the Trust, make a distribution without compliance with the provisions of the DGCL.
3.3 No Payment to the Company. In no event shall the Trust, or the Administrator or Trustees on behalf of the Trust, distribute to the dissolved Company any Trust Property.
ARTICLE IV
Authority
4.1 Authority. Among the other powers stated or implied in this Trust Agreement, in connection with the administration of this Trust, the Trust or the Administrator on behalf of the Trust may exercise the following powers, authority and discretion, all at the expense and out of the Trust Property:
(a) to hold legal title to any and all rights of the Beneficiaries in or arising from the sale of any Trust Property, and to receive and collect any and all payments due in connection with any such sales;
(b) to receive, hold, maintain, grant, sell, exchange, convey, release, assign or otherwise transfer legal title to any Trust Property;
(c) to give proxies to vote stocks and voting securities, and to enter into or oppose, alone or with others, voting trusts, mergers, consolidations, foreclosures, liquidations, reorganizations or other changes in the financial structure of any corporation or buy-sell, stock restrictions or stock redemption agreements;
(d) to hold Trust Property in the name of a nominee or in any other way without disclosing the trust relationship;
(e) to enter into contracts, including contracts to hire agents to act on behalf of the Trust and, with the consent of the Managing Trustees, contracts with the Administrator;
(f) to execute and deliver partial and complete releases of any third-party obligations transferred to the Trust;
(g) to protect and enforce the rights vested in the Trust Property by this Trust Agreement by any method deemed appropriate, including, without limitation, by judicial proceedings;
(h) to take any steps necessary to establish clear title to any Trust Property;
(i) to employ legal counsel, accountants, advisors, custodians and other agents in connection with the administration or termination of this Trust and to delegate to them any powers of the Administrator and the Administrator shall be answerable only for his own acts and not for the default, negligence or misconduct of any such person appointed by the Administrator with reasonable care;
(j) to file any and all tax returns required in connection with the Trust created hereby and to pay any taxes properly payable by the Trust;
(k) to select a fiscal year for the Trust;
(1) subject to the provisions of this Trust Agreement, to compromise, adjust, arbitrate, ▇▇▇ on or defend, abandon or otherwise deal with and settle claims in favor of or against this Trust as the Administrator shall deem appropriate;
(m) to determine the terms on which Trust Property should be sold or otherwise disposed of;
(n) subject to the provisions of this Trust Agreement, to do and perform any acts or things necessary or appropriate for the conservation and protection of the Trust Property, including acts or things necessary or appropriate to maintain the Trust Property pending sale or other disposition thereof to the Beneficiaries; and
(o) to retain and set aside such funds out of the Trust Property as the Managing Trustees shall deem necessary or expedient to (i) pay or make reasonable provision to pay all claims, expenses and obligations, including all contingent, conditional or unmatured contractual claims known to the Company, the Managing Trustees or the Trust, (ii) make such provision as will be reasonably likely to be sufficient to provide compensation for any claim against the Company or the Trust that is the subject of a pending action, suit or proceeding to which the Company or the Trust is a party, and (iii) make such provision as will be reasonably likely to be sufficient to provide compensation for claims that have not been made known to the Company, the Managing Trustees or the Trust or that have not arisen but that, based on facts known to the Company, the Managing Trustees or the Trust are likely to arise or become known to the Managing Trustees or the Trust within 10 years after the date of dissolution, provided, however, that such determinations shall be obtained from the Delaware Court of Chancery if and to the extent required under the DGCL.
4.2 Investment Authority and Limitations Thereon. The Administrator shall not engage in any income-producing activity, except as expressly set forth herein and except that the Administrator may keep the Trust Property invested in (i) interest-bearing obligations of the United States government, or guaranteed by the United States government or any agency thereof, having a maturity not in excess of two years, (ii) demand and time deposits (of not more than one year) in banks or savings institutions, (iii) mutual funds, investing solely in “money market” or comparable obligations, which obligations are convertible into cash within 30 days, or (iv) such stocks (other than ▇▇▇▇▇ stocks or any stocks that would be deemed wholly speculative by a sophisticated investor exercising reasonable care), bonds, notes, securities, or other property as the Administrator deems advisable, irrespective of the rules of investment applying to trustees under any present or future laws of the State of Delaware, or elsewhere, and without any duty to diversify investments; provided, however, that the Administrator shall not invest in any listed stocks or securities, or, except as set forth in (i), (ii) and (iii), above, any readily marketable assets, or any operating assets of a going business, or any general partnership interests or limited partnership interests (including any interests in a limited liability company that is treated as a partnership for United States federal income tax purposes), or any unlisted stock of a single issuer representing 80% or more (by vote or value) of the stock of such issuer.
ARTICLE V
Resident Trustee
5.1 Generally. The Resident Trustee shall be a trustee for the sole and limited purpose of fulfilling the requirements of Section 3807 of the Delaware Statutory Trust Act. The Resident Trustee shall have the power and authority to execute, deliver, acknowledge and file all documents required to maintain the existence of the Trust as required by the Delaware Statutory Trust Act and shall accept service of legal process upon the Trust in the State of Delaware. The Resident Trustee shall provide prompt notice to the Administrator of its performance of any such acts. The Administrator shall reasonably keep the Resident Trustee informed of any action taken by the Administrator or the Managing Trustees with respect to the Trust that may affect the Resident Trustee. The Resident Trustee shall not be entitled to exercise any powers, nor shall the Resident Trustee have any of the duties or liabilities, of the Administrator. The Resident Trustee shall not be liable for the acts or omissions of the Administrator, the Managing Trustees or the Trust. The Resident Trustee shall owe no fiduciary or other duties to the Trust or the Beneficiaries except as expressly provided for in this Article V. Unless required by the Delaware Court of Chancery, the Resident Trustee shall serve without bond.
The Resident Trustee accepts the trust hereby created and agrees to perform its duties hereunder with respect to the same but only upon the terms of this Trust Agreement. The Resident Trustee shall not be personally liable to any Person under any circumstances in connection with any of the transactions contemplated by this Trust Agreement, except that such limitation shall not relieve the Resident Trustee of any personal liability it may have to the Beneficiaries for the Resident Trustee’s own bad faith, willful misconduct or gross negligence. In particular, but not by way of limitation:
(i) The Resident Trustee shall not be personally liable for any error of judgment made in good faith by any of its officers or employees;
(ii) No provision of this Trust Agreement shall require the Resident Trustee to expend or risk its personal funds or otherwise incur any financial liability in the exercise of its rights or powers hereunder;
(iii) Under no circumstance shall the Resident Trustee be personally liable for any representation, warranty, covenant, obligation or indebtedness of the Trust or the Administrator; and
(iv) The Resident Trustee shall not be personally responsible for or in respect of the validity or sufficiency of this Trust Agreement or for the due execution hereof by any Person other than the Resident Trustee.
Except as otherwise expressly required herein, the Resident Trustee shall not have any duty or liability with respect to the administration of the Trust, the investment of the Trust’s property or the payment of dividends or other distributions of income or principal to the Trust’s Beneficiaries, and no implied obligations shall be inferred from this Trust Agreement on the part of the Resident Trustee. The Resident Trustee shall not be liable for the acts or omissions of the Managing Trustees, the Administrator or any other person who acts on behalf of the Trust, nor shall the Resident Trustee be liable for any act or omission by it in good faith in accordance with the directions of the Administrator.
The Resident Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties. The Resident Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any Person as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any fact or matter, the Resident Trustee may for all purposes hereof rely on a certificate, signed by any director, the president, any vice president, the treasurer, any assistant treasurer, the secretary or any assistant secretary of the relevant party, and such certificate shall constitute full protection to the Resident Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.
In the exercise or administration of the trust hereunder, the Resident Trustee (i) may act directly or through agents or attorneys, and the Resident Trustee shall not be liable for the default or misconduct of such agents or attorneys selected by it in good faith; and (ii) may, at the expense of the Trust, consult with counsel, accountants and other skilled persons, and the Resident Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled persons selected by it in good faith.
Except as expressly provided in this Article V, in accepting the trust hereby created, the Resident Trustee acts solely as trustee hereunder and not in its individual capacity, and all Persons having any claim against the Resident Trustee by reason of the transactions contemplated by this Trust Agreement shall look only to the Trust’s property for payment or satisfaction thereof.
5.2 Fees and Indemnity. The Resident Trustee shall be entitled to receive from the Trust as compensation for its services hereunder such fees as have been separately agreed upon with the Trust in a separate fee letter, which compensation shall not be limited by any provision of law in regard to compensation of a trustee of an express trust.
The Trust shall (i) reimburse the Resident Trustee for all reasonable expenses incurred by it in connection with the execution and performance of its rights and duties hereunder (including reasonable fees and expenses of counsel and other experts): (ii) indemnify, defend and hold harmless the Resident Trustee (in both its individual and trustee capacities) and the officers, directors, employees and agents of the Resident Trustee (collectively, including the Resident Trustee in its individual capacity, the “RT Covered Persons”) from and against any and all losses, damages, liabilities, claims, actions, suits, costs, expenses, disbursements (including the reasonable fees and expenses of counsel), taxes and penalties of any kind and nature whatsoever, to the extent that such expenses arise out of or are imposed upon or asserted at any time against one or more RT Covered Persons with respect to the performance of this Trust Agreement, the creation, operation, administration or termination of the Trust, or the transactions contemplated hereby (all such expenses as provided in clauses (i) and (ii) are herein referred to collectively as “RT Expenses”), provided, however, that the Trust shall not be required to indemnify an RT Covered Person for RT Expenses to the extent such RT Expenses result from the bad faith, willful misconduct or gross negligence of such RT Covered Person; and (iii) advance to each RT Covered Person RT Expenses (including reasonable legal fees) incurred by such RT Covered Person in defending any claim, demand, action, suit or proceeding, prior to the final disposition of such claim, demand, action, suit or proceeding, upon receipt by the Trust of a written request therefor and of an undertaking by or on behalf of the RT Covered Person to repay such amount if it shall ultimately be determined that the RT Covered Person is not entitled to be indemnified therefor under this Article V. With respect to reimbursement or indemnity provided hereunder, an RT Covered Person shall have a lien on the Trust Property prior to any rights in such property of the Beneficiaries or any other person.
5.3 Insurance. The Resident Trustee shall be permitted to obtain and maintain fidelity and liability insurance covering the Resident Trustee personally and insuring against acts of any agents, servants or others retained or employed by the Resident Trustee and to retain insurance agents and brokers in connection therewith, all at the expense of the Trust Property.
5.4 Miscellaneous. The Resident Trustee shall take such action or refrain from taking such action under this Trust Agreement as it may be directed in writing by the Administrator or the Managing Trustees from time to time; provided, however, that the Resident Trustee shall not be required to take or refrain from taking any such action if it shall have determined, or shall have been advised by counsel, that such performance is likely to involve the Resident Trustee in personal liability or is contrary to the terms of this Trust Agreement or of any document contemplated hereby to which the Trust is a party or is otherwise contrary to law.
To the extent that, at law or in equity, an RT Covered Person has duties (including fiduciary duties) and liabilities relating to the Trust, the Beneficiaries or any other Person, such RT Covered Person acting under this Trust Agreement shall not be liable to the Trust, the Beneficiaries or such other Persons for its good faith reliance on the provisions of this Trust Agreement. To the extent that provisions of this Trust Agreement restrict the duties and liabilities of an RT Covered Person otherwise existing at law or in equity, such provisions are agreed by the parties hereto to replace such other duties and liabilities of such RT Covered Person.
The Resident Trustee may resign and be discharged of the trust created by this Trust Agreement upon not less than 30 days’ prior written notice to the Managing Trustees and the Administrator. Upon receiving such notice of resignation, the Managing Trustees shall use their best efforts promptly to appoint a substitute or successor Resident Trustee in the manner and meeting the qualifications hereinafter provided by written instrument or instruments delivered to such resigning Resident Trustee and the substitute or successor Resident Trustee. In addition, the Managing Trustees may remove the Resident Trustee, with or without cause, and appoint a successor Resident Trustee meeting the qualifications hereinafter provided by written instrument or instruments delivered to the Resident Trustee being removed and to the substitute or successor Resident Trustee. Any resignation or removal of the Resident Trustee and appointment of a substitute or successor Resident Trustee shall become effective only upon acceptance of the appointment by the substitute or successor Resident Trustee. If no substitute or successor Resident Trustee shall have been appointed within 30 days after notice of such resignation or removal has been delivered, the Resident Trustee may apply to a court of competent jurisdiction for the appointment of a successor Resident Trustee. Such court may thereupon, after such notice, if any, as it may deem proper, prescribe and appoint a successor Resident Trustee meeting the qualifications provided for herein.
Any Person into which the Resident Trustee may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Resident Trustee shall be a party, or any Person that succeeds to all or substantially all of the corporate trust business of the Resident Trustee, shall be the successor Resident Trustee under this Trust Agreement without the execution, delivery or filing of any paper or instrument or further act to be done on the part of the parties hereto (except for the filing of an amendment to the Trust’s certificate of trust if required by law), notwithstanding anything to the contrary herein; provided, however, that such successor Resident Trustee shall have its principal place of business in the State of Delaware and otherwise meet the requirements of applicable law.
ARTICLE VI
The Managing Trustees and the Administrator
6.1 Generally. The Managing Trustees and the Administrator shall perform such duties, and only such duties, as are specifically set forth in this Trust Agreement or are reasonably implied for the administration of this Trust.
6.2 Liability of the Managing Trustees and the Administrator. No provision of this Trust Agreement shall be construed to relieve the Managing Trustees or the Administrator from liability for their own negligent actions, their own negligent failure to act or their own fraud or willful misconduct, except that:
(a) the Managing Trustees and the Administrator shall be liable only for the performance of such duties and obligations as are either specifically set forth in this Trust Agreement or directed in writing unanimously by all Beneficiaries;
(b) no Managing Trustee or Administrator shall be personally liable for any error of judgment made in good faith, unless such Managing Trustee or Administrator was grossly negligent;
(c) no Managing Trustee or Administrator shall be personally liable with respect to any action taken or omitted to be taken in good faith in accordance with the terms of this Trust Agreement, the direction of the Delaware Court of Chancery or the “Majority Vote” (as defined below) of the Beneficiaries;
(d) the Managing Trustees and the Administrator may conclusively rely, and shall not incur any personal liability to anyone in acting or refraining from acting upon, any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order or other paper or document reasonably believed by him or her to be genuine and to have been signed or presented by the proper party or parties;
(e) the Managing Trustees and the Administrator may act through agents and may consult with legal counsel (including tax counsel), accountants, investment bankers and other skilled persons selected by him or her with reasonable care, and neither a Managing Trustees nor the Administrator shall be personally liable for any action taken or omitted to be taken in good faith in accordance with the advice thereof;
(f) persons dealing with the Managing Trustees or the Administrator shall look only to the Trust Property to satisfy any liability incurred by the Managing Trustee or the Administrator to such person in carrying out the terms of this Trust, and none of the Managing Trustees or the Administrator shall have any personal obligation to satisfy any such liability;
(g) none of the Managing Trustees nor the Administrator shall be personally liable for any failure to seek out or assert any claim of the Company against any other person or entity unless the Managing Trustee or the Administrator has received written notice of such claim from the Company or in the event such failure results from the Managing Trustee’s or the Administrator’s gross negligence, willful misconduct or fraud; provided, however that nothing herein shall affect or restrict any Managing Trustee’s or the Administrator’s authority to investigate or assert any claim of the Company against any other person or entity; and
(h) no Managing Trustee nor the Administrator shall be personally liable to any person who at the time is a Beneficiary with respect to any action taken or omitted to be taken in good faith in accordance with the direction or consent of such person, and such direction or consent shall be conclusive and binding in respect of the Beneficial Interest then held by such person and upon all persons who may in the future become Beneficiaries with respect to such Beneficial Interest.
6.3 Safekeeping of Trust Property. All moneys and other assets received by the Trust shall, until distributed or paid over as herein provided, be held for the benefit of the Beneficiaries, but need not be segregated from other Trust Property, unless and to the extent required by law. None of the Managing Trustees nor the Administrator shall be under any liability for interest or producing income on any moneys received by him or her hereunder and held for distribution or payment to the Beneficiaries, except as such interest shall actually be received by the Managing Trustee or the Administrator.
6.4 Compensation. The Managing Trustees and the Administrator shall be entitled to reimburse themselves out of the Trust Property for all out-of-pocket expenses and to pay themselves reasonable compensation (as described in separate fee letters from the Trust to the Managing Trustees and to the Administrator), which compensation shall not be limited by any provision of law in regard to compensation of a trustee of an express trust. The Managing Trustees and the Administrator shall have liens therefore on the Trust Property prior to any rights in such property of the Beneficiaries or any other person.
6.5 No Bond. Unless required by the Delaware Court of Chancery, the Managing Trustees and the Administrator shall serve without bond.
6.6 Expense Reimbursement and Indemnification of Administrator. The Managing Trustees and the Administrator shall be entitled to the same coverage for expense reimbursement and indemnification as is provided under Section 5.2 for RT Covered Persons as such section shall be applied mutatis mutandis to each of the Managing Trustees and the Administrator.
6.7 Insurance. The Managing Trustees and the Administrator shall be permitted to obtain and maintain fidelity and liability insurance covering the Managing Trustees and the Administrator personally and insuring against acts of any agents, servants or others retained or employed by the Trust or the Administrator and to retain insurance agents and brokers in connection therewith, all at the expense of the Trust Property.
ARTICLE VII
Successor Managing Trustee and Successor Administrator
7.1 Resignation and Removal. Any of the Managing Trustees or the Administrator may resign by giving not less than 60 days’ prior written notice thereof to the remaining Managing Trustees. Such resignation shall become effective on the day specified in such notice or upon the appointment of a successor and the acceptance by such successor of such appointment, whichever is earlier. Any Managing Trustee or Administrator may be removed at any time, with or without cause, by a “Majority Vote” (as defined below) of the Beneficiaries. Additionally, the Administrator may be removed at any time, with or without cause, by a majority of the Managing Trustees.
7.2 Appointment of Successor. In the event of a resignation or removal of any Managing Trustee or the Administrator pursuant to Section 7.1, a successor Managing Trustee or Administrator, as the case may be, shall be selected by the remaining Managing Trustees, subject to the right of the Beneficiaries to remove such successor and appoint an alternative successor by Majority Vote.
7.3 Acceptance of Appointment by Successor Managing Trustee or Successor Administrator. Any successor Managing Trustee or successor Administrator appointed hereunder shall execute an instrument accepting such appointment hereunder and shall file such acceptance with the trust records. Thereupon, such successor Managing Trustee or successor Administrator shall, without any further act, become vested with all the estates, properties, rights, powers, trusts and duties of the predecessor in the Trust with like effect as if originally named herein; provided, however, that a retiring Managing Trustee or Administrator shall, nevertheless, when requested in writing by the successor Managing Trustee or Administrator, execute and deliver an instrument or instruments conveying and transferring to such successor Managing Trustee or Administrator all the estates, properties, rights, powers and trusts of such predecessor Managing Trustee or Administrator.
ARTICLE VIII
Reports to Beneficiaries
8.1 Reports to Beneficiaries. The Trust shall submit to the Beneficiaries such reports as the Managing Trustees deem advisable. In addition, as soon as practicable after the close of each calendar year, the Administrator, on behalf of the Trust, shall supply the Beneficiaries with information necessary for the Beneficiaries to satisfy its United States federal, state and local income tax obligations.
ARTICLE IX
Termination of Trust
9.1 Termination of Trust. This Trust and the Trust Agreement shall terminate June 1, 2008; provided however, the Trust and this Trust Agreement shall not terminate prior to the final distribution (in accordance with the terms of this Trust Agreement) from the Trust of all Trust Property in compliance with the DGCL.
ARTICLE X
Amendment
10.1 Method of Amendment. This Trust Agreement may be altered or amended, at any time, in whole or in part, provided that (i) any such alteration or amendment shall not become effective until consented to by the Trustees in writing and approved by a Majority Vote and (ii) no such alteration or amendment shall cause any of the Trust Property to be reconveyed to the Company or cause the Trustees to engage in any activity other than that appropriate for liquidating trustees or prejudice the rights of creditors of the Company.
ARTICLE XI
Meetings of Beneficiaries
11.1 Purpose of Meetings. Meetings of the Beneficiaries may be called at any time and from time to time pursuant to the provisions of this Article XI for the purpose of taking any action which Beneficiaries are required or permitted to take under the terms of this Trust Agreement or under applicable law.
11.2 Meetings Called by Managing Trustees. The Managing Trustees may at any time call a meeting of the Beneficiaries to be held at such time and at such place as the Managing Trustees shall determine. Notice of any meeting of the Beneficiaries shall be given by the Managing Trustees (or by the Beneficiaries in the event the Managing Trustees shall fail to give notice after a request by the Beneficiaries pursuant to Section 11.3). Such notice shall set forth the time and place of the meeting and in general terms the action to be proposed at the meeting and shall be mailed not more than 60 nor less than 10 days before the meeting is to be held to all of the Beneficiaries as of a record date set by the Managing Trustees, which record date shall be not more than 60 days before the date of the meeting.
11.3 Meetings Called on Request of Beneficiaries. Within 30 days after a request to the Trustees by a majority in voting power of the Beneficiaries, based on the voting rights of the Former Stockholders determined in accordance with the Certificate of Incorporation of the Company, as amended, as of the effectiveness of the Certificate of Dissolution, to call a meeting of all of the Beneficiaries, which request shall specify in reasonable detail the action to be proposed, the Trustees shall call a meeting of the Beneficiaries pursuant to Section 11.2. If the Trustees fail to call such meeting within such 30-day period, such meeting may be noticed by the action of a majority in voting power of the Beneficiaries, based on the voting rights of the Former Stockholders determined in accordance with the Certificate of Incorporation of the Company, as amended, as of the effectiveness of the Certificate of Dissolution, or by their designated representatives.
11.4 Persons Entitled to Vote at Meetings of Beneficiaries. Each Beneficiary as of the record date shall be entitled to vote at a meeting of the Beneficiaries, either in person or by his proxy duly authorized in writing. The signature of the Beneficiary on such written authorization need not be witnessed or notarized.
11.5 Quorum. At any meeting of Beneficiaries, the presence of a majority in voting power of the Beneficiaries, based on the voting rights of the Former Stockholders determined in accordance with the Certificate of Incorporation of the Company, as amended, as of the effectiveness of the Certificate of Dissolution, shall constitute a quorum.
11.6 Adjournment of Meetings. Any meeting of Beneficiaries properly adjourned may be reconvened at such adjourned time and place without further notice.
11.7 Conduct of Meetings. The Managing Trustees shall appoint a Chairperson and Secretary of the meeting, either or both of whom may be Managing Trustees. The vote upon any resolution submitted to any meeting of Beneficiaries shall be by written ballot. Should the Chairperson of the meeting deem it advisable, he shall appoint an Inspector of Votes, who shall count all votes cast at the meeting for or against any resolution and shall make and file with the Secretary of the meeting a verified written report. A Majority Vote shall be required to take any action which Beneficiaries are required or permitted to take under this Trust Agreement or under applicable law. For purposes of this Trust Agreement, a majority in voting power of those of the Beneficiaries voting in person or by proxy at a properly called meeting of the Beneficiaries, based on the voting rights of the Former Stockholders determined in accordance with the Certificate of Incorporation of the Company, as amended, as of the effectiveness of the Certificate of Dissolution shall constitute a “Majority Vote” of the Beneficiaries. Notwithstanding any other provisions of this Trust Agreement, the Managing Trustees may make such reasonable regulations as they may deem advisable for any meeting of holders of the Beneficial Interests in regard to proof of the appointment of proxies, and in regard to the appointment and duties of Inspectors of Votes, the submission and examination of proxies and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as he shall think fit. Notwithstanding anything to the contrary set forth herein, any action that the Beneficiaries are required or permitted to take at any meeting thereof under this Trust Agreement or applicable law may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by a majority in voting power of the Beneficiaries, based on the voting rights of the Former Stockholders determined in accordance with the Certificate of Incorporation of the Company, as amended, as of the effectiveness of the Certificate of Dissolution and delivered to the Managing Trustees in accordance with this Trust Agreement and applicable law. Each such written consent shall bear the date of signature of each Beneficiary who signs the consent, and no written consent shall be effective to take the action referred to therein unless, within 60 days of the earliest dated consent delivered in the manner required by this Section 11.7, written consents signed by a sufficient number of Beneficiaries to take such action are delivered to the Managing Trustees as provided hereunder. Any action taken by such written consent shall be the equivalent of a “Majority Vote” of the Beneficiaries for purposes of approving or authorizing any action under this Trust Agreement that requires a “Majority Vote” of the Beneficiaries.
11.8 Record of Meetings. A record of the proceedings of each meeting of Beneficiaries shall be prepared by the Secretary of the meeting. The record shall be signed and verified by the Secretary of the meeting and shall be delivered to the Managing Trustees to be preserved with the records of the Trust. Any record so signed and verified shall be conclusive evidence of the matters therein stated.
ARTICLE XII
Miscellaneous Provisions
12.1 Intention of Parties to Establish Trust. This Trust Agreement is not intended to create, and shall not be interpreted as creating, an association, partnership or joint venture of any kind. It is intended as a trust to be governed and construed in all respects as a trust.
12.2 Filing Documents. A copy of this Trust Agreement and all amendments thereof shall be filed in an office or residence of the Administrator and shall be available at all times for inspection by the Beneficiaries or its duly authorized representative. The Administrator shall file any amendment of this Trust Agreement in the same place where the original Trust Agreement is filed. The Administrator shall file any instrument that relates to any change in the office of Trustee in the same place where the original Trust Agreement is filed.
12.3 Governing Law. This Trust Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.
12.4 Separability. In the event any provision of this Trust Agreement or the application thereof to any person or circumstances shall be finally determined by a court of proper jurisdiction to be invalid or unenforceable to any extent, the remainder of this Trust Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Trust Agreement shall be valid and enforced to the fullest extent permitted by law.
12.5 Notices. Any notice or other communication hereunder shall be deemed to have been sufficiently given for all purposes, if deposited, postage prepaid, in a post office or letter box addressed to the person for whom such notice is intended at his address last known to the person giving such notice.
12.6 Exculpatory Provisions and Survival Thereof. Whether or not expressly therein so provided, any and all exculpatory provisions, immunities and indemnities, and any limitations and negations of liability contained in this Trust Agreement, in each case inuring to the benefit of the Administrator or any Trustee, shall survive (i) the termination or revocation of this Trust Agreement, and (ii) as to any person who has served as Administrator or Trustee, the resignation or removal of such person as Administrator or Trustee.
12.7 Counterparts. This Trust Agreement may be executed in any number of counterparts, and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. This Trust Agreement shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that the parties need not sign the same counterpart.
[SIGNATURES ON THE FOLLOWING PAGES]
IN WITNESS WHEREOF, the parties hereto have either executed and acknowledged this Trust Agreement or caused it to be executed and acknowledged on their behalf by their duly authorized officers all as of the date first above written.
COMPANY:
GLOBAL PREFERRED HOLDINGS, INC.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Chief Accounting Officer,
Vice President & Treasurer
ADMINISTRATOR:
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
RESIDENT TRUSTEE:
WILMINGTON TRUST COMPANY
By: /s/ ▇▇▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Name: ▇▇▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Assistant Vice President
MANAGING TRUSTEE:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
MANAGING TRUSTEE:
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Exhibit A
CERTIFICATE OF TRUST
OF
GPH LIQUIDATING TRUST
THIS Certificate of Trust of GPH LIQUIDATING TRUST (the “Trust”), is being duly executed and filed by the undersigned, as Resident Trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. Code, § 3801 et seq.) (the “Act”).
Name. The name of the statutory trust formed hereby is GPH LIQUIDATING TRUST.
Delaware Trustee. The name and business address of the trustee of the Trust in the State of Delaware is WILMINGTON TRUST COMPANY, ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, attention: Corporate Trust Administration.
Effective Date. This Certificate of Trust shall be effective upon filing.
IN WITNESS WHEREOF, the undersigned have duly executed this Certificate of Trust in accordance with Section 3811(a) of the Act.
WILMINGTON TRUST COMPANY,
as Resident Trustee
By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Name: ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President
Exhibit B
FORMER STOCKHOLDERS
A copy of the omitted schedule will be supplementally furnished to the Commission upon request.