Exhibit
4.1
AMENDED
AND RESTATED DECLARATION
OF
TRUST
FIRST
UNITED STATUTORY TRUST III
Dated
as of December 30, 2009
ARTICLE
I
DEFINED
TERMS
ARTICLE
II
ESTABLISHMENT
OF THE TRUST
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Office
of the Delaware Trustee; Principal Place of
Business
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Initial
Contribution of Trust Property; Organizational
Expenses
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Issuance
of the Preferred Securities
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Issuance
of Common Securities; Subscription and Purchase of the
Debentures
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Authorization
to Enter Into Certain Transactions
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ARTICLE
III
PAYMENT
ACCOUNT
ARTICLE
IV
DISTRIBUTIONS;
REDEMPTION
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Subordination
of the Common Securities
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Payment
of Taxes, Duties, Etc. of the Trust
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Payments
Under the Indenture
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ARTICLE
V
THE
TRUST SECURITIES CERTIFICATES
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The
Trust Securities Certificates
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Execution,
Authentication and Delivery of the Trust Securities
Certificates
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Registration
of Transfer and Exchange of the Preferred Securities
Certificates
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Mutilated,
Destroyed, Lost or Stolen Trust Securities
Certificates20
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Persons
Deemed the Securityholders
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Access
to List of the Securityholders’ Names and
Addresses
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Maintenance
of Office or Agency
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Appointment
of the Paying Agent
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Ownership
of the Common Securities by the Depositor
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The
Trust Securities Certificates
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Rights
of the Securityholders
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ARTICLE
VI
ACTS
OF THE SECURITYHOLDERS; MEETINGS; VOTING
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Limitations
on Voting Rights
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Meetings
of the Preferred Securityholders
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Securityholder
Action by Written Consent
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Record
Date for Voting and Other Purposes
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Acts
of the Securityholders
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ARTICLE
VII
REPRESENTATIONS
AND WARRANTIES
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Representations
and Warranties of the Bank and the Property
Trustee
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Representations
and Warranties of the Delaware Bank and the Delaware
Trustee
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Representations
and Warranties of the Depositor
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ARTICLE
VIII
TRANSFER
OF INTERESTS
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Transfer
Procedures and Restrictions
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ARTICLE
IX
TRUSTEES
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Certain
Duties and Responsibilities
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Certain
Rights of the Property Trustee
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Compensation;
Indemnity; Fees
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Corporate
Property Trustee Required; Eligibility of Trustees
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Co-Trustees
and Separate Trustees
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Resignation
and Removal; Appointment of Successor
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Acceptance
of Appointment by Successor
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Merger,
Conversion, Consolidation or Succession to
Business
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Preferential
Collection of Claims Against the Depositor or the
Trust
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Property
Trustee May File Proofs of Claim
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Reports
to the Property Trustee and to Securityholders
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Evidence
of Compliance with Conditions Precedent
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ARTICLE
X
TERMINATION,
LIQUIDATION AND MERGER
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Dissolution
Upon Expiration Date
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Mergers,
Consolidations, Amalgamations or Replacements of the
Trust
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ARTICLE
XI
MISCELLANEOUS
PROVISIONS
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Limitation
of Rights of the Securityholders
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Payments
Due on Non-Business Day
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Reports,
Notices and Demands
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Agreement
Not to Petition
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Trust
Indenture Act; Conflict with Trust Indenture Act
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Acceptance
of Terms of the Declaration, the Guarantee and the
Indenture
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EXHIBITS
EXHIBIT
A Form
of Common Security Certificate
EXHIBIT
B Form
of Preferred Security Certificate
AMENDED
AND RESTATED DECLARATION OF TRUST
AMENDED
AND RESTATED DECLARATION OF TRUST (this “Declaration”),
dated and effective as of December 30, 2009, by (a) FIRST UNITED
CORPORATION, a Maryland corporation (including any successors and
assigns, the “Depositor”), (b) WILMINGTON TRUST
COMPANY, a banking corporation duly organized and existing under
the laws of Delaware, as property trustee (the “Property
Trustee” and, in its separate corporate capacity and not in
its capacity as Property Trustee, the “Bank”), (c)
WILMINGTON TRUST COMPANY, a 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”), (d) WILLIAM B. GRANT, an individual,
CARISSA L. RODEHEAVER, an individual, and TONYA K. STURM, an
individual, each of whose address is c/o First United Corporation,
19 South Second Street, Oakland, Maryland 21550 (each an
“Administrative Trustee” and collectively the
“Administrative Trustees”) (the Property Trustee, the
Delaware Trustee and the Administrative Trustees are collectively
referred to herein as the “Trustees”), and (e) the
several Holders (as hereinafter defined).
WHEREAS,
the Delaware Trustee and the Depositor established First United
Statutory Trust III (the “Trust”), a statutory trust
under the Delaware Statutory Trust Act (as defined herein),
pursuant to a Declaration of Trust, dated as of November 30, 2009
(the “Original Declaration”), and a Certificate of
Trust filed with the Secretary of State of the State of Delaware on
November 30, 2009, for the sole purpose of issuing and selling
certain securities representing undivided beneficial interests in
the assets of the Trust and investing the proceeds thereof in the
Debentures (as defined herein) of the Debenture Issuer (as defined
herein) in connection with the issuance of the Preferred Securities
(as defined herein);
WHEREAS,
as of the date hereof, no interests in the assets of the Trust have
been issued; and
WHEREAS,
all of the Trustees and the Sponsor, by this Declaration, amend and
restate each and every term and provision of the Original
Declaration.
NOW,
THEREFORE, it being the intention of the parties hereto to continue
the Trust as a statutory trust under the Delaware Statutory Trust
Act and that this Declaration constitutes the governing instrument
of such statutory trust, and that all assets contributed to the
Trust will be held in trust for the benefit of the holders, from
time to time, of the securities representing undivided beneficial
interests in the assets of the Trust issued hereunder (the
“Holders”), subject to the provisions of this
Declaration, and, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties, intending to
be legally bound hereby, amend and restate in its entirety the
Original Declaration and agree as follows:
ARTICLE
I
DEFINED
TERMS
SECTION 1.1.
Definitions . For all purposes of
this Declaration, except as otherwise expressly provided or unless
the context otherwise requires:
(a)
the
terms defined in this Article I have the meanings assigned to them
in this Article I 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 Declaration;
and
(d)
the
words “herein”, “hereof” and
“hereunder” and other words of similar import refer to
this Declaration as a whole and not to any particular Article,
Section or other subdivision.
“Act”
has the meaning specified in Section 6.8.
“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 Debentures for such period.
“Additional
Payments” has the meaning specified in Section 1.1 of the
Indenture.
“Administrative
Trustee” means each of William B. Grant, Carissa L.
Rodeheaver, and Tonya K. Sturm, solely in his or her capacity as
Administrative Trustee of the Trust formed and continued hereunder
and not in his or her individual capacity, or such Administrative
Trustee’s successor in interest in such capacity, or any
successor trustee appointed as herein provided.
“Affiliate”
has the same meaning as given to that term in Rule 405 of the
Securities Act or any successor rule thereunder.
“Authenticating
Agent” means an authenticating agent with respect to the
Preferred Securities appointed by the Property Trustee pursuant to
Section 5.3.
“Bank”
has the meaning specified in the Preamble to this
Declaration.
“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 United
States Bankruptcy Code of 1978, as amended, 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 ninety (90)
days; or the commencement of an involuntary case under the United
States Bankruptcy Code of 1978, as amended, in respect of such
Person, which shall continue undismissed for a period of ninety
(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 ninety (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 United States Bankruptcy Code of 1978, as
amended, 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 shall make a
general assignment for the benefit of creditors.
“Bankruptcy
Laws” has the meaning specified in Section 11.9.
“Business
Day” means any day other than a Saturday or Sunday or a day
on which federal or state banking institutions in the Borough of
Manhattan, the City of New York, are authorized or required by law,
executive order or regulation to close, or a day on which the
Corporate Trust Office of the Property Trustee or the Corporate
Trust Office of the Debenture Trustee is closed for
business.
“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.
“Closing
Date” means, as applicable, the First Closing Date or the
Second Closing Date.
“Commission”
means the Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act, or, if at any time
after the execution of this instrument 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
Securities Certificate” means a certificate evidencing
ownership of Common Securities, substantially in the form attached
as Exhibit B .
“Common
Security” means an undivided beneficial interest in the
assets of the Trust, having a Liquidation Amount of $1,000 and
having the rights provided therefor in this Declaration, including
the right to receive Distributions and a Liquidation Distribution
as provided herein.
“Common
Securityholder” means a holder of a Common
Security.
“Company”
means First United Corporation, a Maryland corporation and
registered financial holding company under the Bank Holding Company
Act of 1956, as amended.
“Corporate
Trust Office” means the office at which, at any particular
time, the corporate trust business of the Property Trustee or the
Debenture Trustee, as the case may be, shall be principally
administered, which office at the date hereof, in each such case,
is located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware, 19890-0001, Attention: Corporate Trust
Administration.
“Debenture
Redemption Date” means, with respect to any Debentures to be
redeemed under the Indenture, the date fixed for redemption under
the Indenture.
“Debenture
Trustee” means Wilmington Trust Company, a banking
corporation organized under the laws of the State of Delaware and
any successor thereto, as trustee under the Indenture.
“Debenture
Event of Default” means an “Event of Default” as
defined in Section 7.1 of the Indenture.
“Debentures”
means up to $30,930,000 aggregate principal amount of the
Depositor’s 9.875% Subordinated Debentures due 2045, issued
pursuant to the Indenture.
“Declaration”
means this Amended and Restated Declaration, 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 Declaration 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 Declaration and any
such modification, amendment or supplement,
respectively.
“Delaware
Bank” has the meaning specified in the Preamble to this
Declaration.
“Delaware
Statutory 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 Declaration solely in its capacity as Delaware Trustee of the
Trust formed and continued hereunder and not in its individual
capacity, or its successor in interest in such capacity, or any
successor trustee appointed as herein provided.
“Depositor”
has the meaning specified in the Preamble to this
Declaration.
“Distribution
Date” has the meaning specified in Section 4.1(a).
“Distributions”
means amounts payable in respect of the Trust Securities as
provided in Section 4.1.
“Early
Termination Event” has the meaning specified in Section
10.2.
“Event
of Default” means any one of the following events (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 an 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 thirty (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 Trustees in this Declaration (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 sixty
(60) days after there has been given, by registered or certified
mail, to the defaulting Trustee or Trustees by the Holders of at
least 25% in aggregate Liquidation Amount of the Outstanding
Preferred Securities a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder; or
(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 sixty (60) days thereof.
“Exchange
Act” means the Securities Exchange Act of 1934, as
amended.
“Expiration
Date” has the meaning specified in Section 10.1.
“Extended
Interest Period” has the meaning specified in Section 4.1 of
the Indenture.
“First
Closing Date” means the date of execution and delivery of
this Declaration.
“Guarantee”
means the Preferred Securities Guarantee Agreement executed and
delivered by the Depositor and Wilmington Trust Company, as
trustee, contemporaneously with the execution and delivery of this
Declaration, for the benefit of the Holders of the Preferred
Securities, as amended from time to time.
“Indenture”
means the Indenture, dated as of even date herewith between the
Depositor and the Debenture Trustee, as trustee, as amended or
supplemented from time to time, pertaining to the Debentures of the
Depositor.
“Investment
Company Act,” means the Investment Company Act of 1940, as
amended, as in effect at the date of execution of this
instrument.
“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 an aggregate Liquidation Amount
equal to the aggregate principal amount of Debentures to be
contemporaneously redeemed in accordance with the Indenture and the
proceeds of which shall be used to pay the Redemption Price of such
Trust Securities; and (b) with respect to a distribution of
Debentures to Holders of Trust Securities in connection with a
termination or liquidation of the Trust, Debentures having a
principal amount equal to the Liquidation Amount of the Trust
Securities of the Holder to whom such Debentures are distributed.
Each Debenture distributed pursuant to clause (b) above shall carry
with it accrued interest in an amount equal to the accrued and
unpaid interest then due on such Debenture.
“Liquidation
Amount” means the stated amount of $1,000 per Trust
Security.
“Liquidation
Date” means the date on which Debentures are to be
distributed to Holders of Trust Securities in connection with a
termination and liquidation of the Trust pursuant to Section
10.4(a).
“Liquidation
Distribution” has the meaning specified in Section
10.4(d).
“Officers’
Certificate” means a certificate signed by the Chief
Executive Officer, President, Chief Financial Officer or an
Executive Vice President and by the Treasurer or an Assistant
Treasurer or the Secretary or an Assistant Secretary of the
Depositor, or with respect to any Administrative Trustee, signed by
such Administrative Trustee and delivered to the appropriate
Trustee. One of the officers signing an Officers’
Certificate given pursuant to Section 9.15 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 Declaration 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 an opinion in writing of independent
outside legal counsel, who may be counsel for the Trust, the
Property Trustee, the Delaware Trustee or the Depositor, and who
shall be reasonably acceptable to the Property Trustee.
“Original
Declaration” has the meaning specified in the Recitals to
this Declaration.
“Outstanding”,
when used with respect to the Preferred Securities, means, as of
the date of determination, all of the Preferred Securities
theretofore executed and delivered under this Declaration,
except:
(a)
the
Preferred Securities theretofore canceled by the Property Trustee
or delivered to the Property Trustee for cancellation;
(b)
the
Preferred 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 Preferred
Securities; provided that, if such Preferred Securities are to be
redeemed, notice of such redemption has been duly given pursuant to
this Declaration; and
(c)
the
Preferred Securities which have been paid or in exchange for or in
lieu of which other Preferred Securities have been executed and
delivered pursuant to Sections 5.4, 5.5, 5.11 and 5.13;
provided , however , that in determining whether the
Holders of the requisite Liquidation Amount of the Outstanding
Preferred Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the Preferred
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 the
Preferred 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 Preferred Securities are owned by
the Depositor, one or more of the Trustees and/or any such
Affiliate. The Preferred 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 so to act with respect to such Preferred
Securities and the pledgee is not the Depositor or any other
Obligor upon the Preferred Securities or a Person directly or
indirectly controlling or controlled by or under direct or indirect
common control with the Depositor or any Affiliate of the
Depositor.
“Paying
Agent” means any paying agent or co-paying agent appointed
pursuant to Section 5.9 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 Debentures shall be held
and from which the Property Trustee shall make payments to the
Securityholders in accordance with Sections 4.1 and 4.2.
“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.
“Preferred
Security” means an undivided beneficial interest in the
assets of the Trust, having a Liquidation Amount of $1,000 and
having the rights provided therefor in this Declaration, including
the right to receive Distributions and a Liquidation Distribution
as provided herein.
“Preferred
Securityholder” means a holder of a Preferred
Security.
“Preferred
Securities Certificate” means a certificate evidencing
ownership of Preferred Securities, substantially in the form
attached as Exhibit C .
“Property
Trustee” means the commercial bank or trust company
identified as the “Property Trustee,” in the Preamble
to this Declaration 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
Declaration; provided that each Debenture Redemption Date and the
stated maturity of the Debentures shall be a Redemption Date for a
Like Amount of Trust Securities.
“Redemption
Price” means, with respect to any Trust Security, the
Liquidation Amount of such Trust Security, plus accumulated and
unpaid Distributions to the Redemption Date, paid by the Depositor
upon the concurrent redemption of a Like Amount of Debentures,
allocated on a pro rata basis (based on Liquidation Amounts) among
the Trust Securities.
“Relevant
Trustee” shall have the meaning specified in Section
9.10.
“Second
Closing” has the meaning set forth in Section
2.4(b).
“Second
Closing Date” means the date on which the Second Closing
occurs.
“Securities
Act” means the Securities Act of 1933, as amended from time
to time, or any successor legislation.
“Securities
Register” and “Securities Registrar” have the
respective meanings specified in Section 5.4.
“Securityholder”
or “Holder” means a Person in whose name a Trust
Security is or Trust Securities are registered in the Securities
Register; any such Person is a beneficial owner within the meaning
of the Delaware Statutory Trust Act.
“State
Acts” means state securities or “Blue Sky” laws
and regulations.
“Subscription
Agreement” means that form of Preferred Securities
Subscription Agreement executed by the Preferred Securityholders
and the Trust.
“Trust”
means the Delaware statutory trust continued hereby and identified
on the cover page to this Declaration.
“Trust
Indenture Act” means the Trust Indenture Act of 1939, as
amended, as in force at the date as of which this instrument was
executed; provided , however , that in the event the
Trust Indenture Act of 1939, as amended, 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 Debentures; (b) the rights of the
Property Trustee under the Guarantee; (c) 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 terms of this Declaration.
“Trust
Security” means any one of the Common Securities or the
Preferred Securities.
“Trust
Securities Certificate” means any one of the Common
Securities Certificates or the Preferred Securities
Certificates.
“Trustees”
means, collectively, the Property Trustee, the Delaware Trustee and
the Administrative Trustees.
ARTICLE
II
ESTABLISHMENT
OF THE TRUST
SECTION 2.1.
Name . The Trust continued hereby
shall be known as “FIRST UNITED STATUTORY TRUST III”,
as such 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 2.2.
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, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware
19890-0001, 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
First United Corporation, 19 South Second Street, Oakland, Maryland
21550, Attention: Chief Financial Officer.
SECTION 2.3.
Initial Contribution of Trust Property;
Organizational Expenses . The Trustees acknowledge
receipt in trust from the Depositor in connection with the Original
Declaration 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 2.4.
Issuance of the Preferred Securities
.
(a)
On
December 30, 2009, the Depositor, on behalf of the Trust and
pursuant to the Original Declaration, executed and delivered the
Subscription Agreements which action is hereby authorized, approved
and ratified in all respects. Contemporaneously with the
execution and delivery of this Declaration, an Administrative
Trustee, on behalf of the Trust, shall execute in accordance with
Section 5.2, and, after authenticated by the Property Trustee,
deliver in accordance with the Subscription Agreements, Preferred
Securities Certificates, registered in the name of the Persons
entitled thereto, in an aggregate amount of up to 6,875 Preferred
Securities, each having a Liquidation Amount of $1,000, for an
aggregate Liquidation Amount of up to $6,975,000, against receipt
of the aggregate purchase price of such Preferred Securities of
$1,000 per Preferred Security or up to $6,975,000 in the aggregate,
which amount such Administrative Trustee shall promptly deliver to
the Depositor as partial payment for the Debentures to be issued to
the Trust in accordance with Section 2.5(a).
(b)
If the
Depositor elects to have a second closing (the “Second
Closing”), then, upon the order of the Depositor, an
Administrative Trustee, on behalf of the Trust, shall execute in
accordance with Section 5.2 and, after authenticated by the
Property Trustee, deliver in accordance with the additional
Subscription Agreements, Preferred Securities, registered in the
name of the Persons entitled thereto, in a specified aggregate
amount not to exceed 23,025 against receipt of the aggregate
purchase price of such Preferred Securities of up to $23,025,000,
which amount such Administrative Trustee shall promptly deliver to
the Depositor as partial payment for the Debentures to be issued to
the Trust in accordance with Section 2.5(b).
SECTION 2.5.
Issuance of Common Securities; Subscription
and Purchase of the Debentures .
(a)
Contemporaneously with the execution and delivery of this
Declaration, an Administrative Trustee, on behalf of the Trust,
shall execute in accordance with Section 5.2 and deliver to the
Depositor, Common Securities Certificates, registered in the name
of the Depositor, in an aggregate amount of up to 217 Common
Securities, each having a Liquidation Amount of $1,000, for an
aggregate Liquidation Amount of
$217,000. Contemporaneously therewith, an Administrative
Trustee, on behalf of the Trust, shall subscribe to and purchase
Debentures from the Depositor, registered in the name of the
Property Trustee on behalf of the Trust and having an aggregate
principal amount of up to $7,192,000, and, in satisfaction of the
purchase price for such Debentures, the Administrative Trustees, on
behalf of the Trust, shall, in addition to the Common Securities
described herein, deliver to the Depositor the aggregate purchase
price of the Preferred Securities referred to in Section 2.4(a)
above of up to $6,975,000.
(b)
If the
Depositor elects to have a Second Closing, then an Administrative
Trustee, on behalf of the Trust, shall execute in accordance with
Section 5.2 and deliver to the Depositor, Common Securities
Certificates, registered in the name of the Depositor, in an
additional aggregate amount of up to 713 Common Securities, having
an aggregate Liquidation Amount of up to
$713,000. Contemporaneously therewith, an Administrative
Trustee, on behalf of the Trust, shall subscribe to and purchase
from the Depositor additional Debentures, registered in the name of
the Property Trustee on behalf of the Trust and having an aggregate
principal amount of up to $23,738,000, and, in satisfaction of the
purchase price of such Debentures, the Administrative Trustees, on
behalf of the Trust, shall, in addition to the Common Securities
described herein, deliver to the Depositor the aggregate purchase
price of the Preferred Securities referred to in Section 2.4(b)
above of up to $23,025,000.
SECTION 2.6.
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
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 shall 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 Statutory Trust Act.
SECTION 2.7.
Authorization to Enter Into Certain
Transactions .
(a)
The
Trustees shall conduct the affairs of the Trust in accordance with
the terms of this Declaration. Subject to the limitations set forth
in paragraph (b) of this Section 2.7 and Article VIII, and in
accordance with the following provisions (i) and (ii) of this
Section 2.7(a), 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 Declaration, 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 and the compliance with
the Subscription Agreements in connection therewith;
(B)
to
cause the Trust to enter into, and to execute, deliver and perform
on behalf of the Trust, such agreements or documents as may be
necessary or desirable in connection with the purposes and function
of the Trust;
(C)
assisting in obtaining registration exemptions for the Preferred
Securities under the Securities Act, and under state securities or
blue sky laws, and the qualification of this Declaration as a trust
indenture under the Trust Indenture Act;
(D)
the
sending of notices (other than notices of default) and other
information regarding the Trust Securities and the Debentures to
the Securityholders in accordance with this Declaration;
(E)
the
appointment of a Paying Agent and Securities Registrar in
accordance with this Declaration;
(F)
to the
extent provided in this Declaration, 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;
(G)
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 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 Preferred Securities or to
enable the Trust to effect the purposes for which the Trust was
created; and
(H)
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
Declaration 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 Debentures;
(C)
the
collection of interest, principal and any other payments made in
respect of the Debentures in the Payment Account;
(D)
the
distribution of amounts owed to the Securityholders in respect of
the Trust Securities in accordance with the terms of this
Declaration;
(E)
the
exercise of all of the rights, powers and privileges of a holder of
the Debentures;
(F)
the
sending of notices of default and other information regarding the
Trust Securities and the Debentures to the Securityholders in
accordance with this Declaration;
(G)
the
distribution of the Trust Property in accordance with the terms of
this Declaration;
(H)
to the
extent provided in this Declaration, 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
Declaration 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)
registering transfers of the Trust Securities in accordance with
this Declaration; and
(K)
except
as otherwise provided in this Section 2.7(a)(ii), the Property
Trustee shall have none of the duties, liabilities, powers or the
authority of the Administrative Trustees set forth in Section
2.7(a)(i).
(b)
So
long as this Declaration 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 Declaration; (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 Preferred Securities, the
Depositor shall have the right and responsibility to assist the
Trust with respect to, or effect on behalf of the Trust, the
following (and any actions taken by the Depositor in furtherance of
the following prior to the date of this Declaration are hereby
ratified and confirmed in all respects):
(i)
the
preparation and filing by the Trust with the Commission and
applicable state securities regulators the documents necessary to
secure applicable state and federal registration exemptions in
relation to the Preferred Securities and the Debentures (the
“Exemptions”), including any amendments
thereto;
(ii)
the
determination of the states in which to take appropriate action to
qualify for Exemptions 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
negotiation of the terms of, and the execution and delivery of, the
Subscription Agreements providing for the sale of the Preferred
Securities;
(iv)
the
taking of any other actions necessary or desirable to carry out any
of the foregoing activities; and,
(v)
taking
such steps as may be necessary to ensure compliance with applicable
federal and state securities laws, or exemptions therefrom, in
connection with the transfer of the Preferred
Securities.
(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 shall not be
deemed to be an “investment company” required to be
registered under the Investment Company Act, shall 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 Debentures shall be treated as indebtedness of the
Depositor for United States federal income tax purposes. In this
connection, subject to Section 11.2, the Depositor and the
Administrative Trustees are authorized to take any action and the
Administrative Trustees are authorized to direct the Property
Trustee in writing to take any action, not inconsistent with
applicable law or this Declaration, that each of the Depositor and
the Administrative Trustees determines in their discretion to be
necessary or desirable for such purposes. The Property Trustee
shall take any action so directed by one or more of the
Administrative Trustees.
SECTION 2.8.
Assets of Trust . The assets
of the Trust shall consist of the Trust Property.
SECTION 2.9.
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 Declaration.
ARTICLE
III
PAYMENT
ACCOUNT
SECTION 3.1.
Payment Account .
(a)
On or
prior to the First 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 Declaration. 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 Debentures. Amounts
held in the Payment Account shall not bear interest or be invested
by the Property Trustee pending distribution thereof.
ARTICLE
IV
DISTRIBUTIONS;
REDEMPTION
SECTION 4.1.
Distributions .
(a)
Distributions on the Trust Securities shall be cumulative, and
shall accumulate whether or not there are funds of the Trust
available for the payment of Distributions. Distributions shall
accumulate from the date of issuance of the Trust Securities, and,
except during any Extended Interest Period with respect to the
Debentures, shall be payable quarterly in arrears on March 15, June
15, September 15 and December 15 of each year, commencing on March
15, 2010. 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, such payment shall be made on
the immediately preceding Business Day (and without any reduction
in interest or any other payment in respect of any such
acceleration), in each case with the same force and effect as if
made on such date (each date on which distributions are payable in
accordance with this Section 4.1(a), a “Distribution
Date”).
(b)
The
Trust Securities represent undivided beneficial interests in the
Trust Property. Distributions on the Trust Securities shall be
payable at a rate of 9.875% 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 Extended
Interest Period with respect to the Debentures, Distributions on
the Preferred Securities shall be deferred for a period equal to
the Extended Interest 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 by 12:30 p.m. on each
Distribution Date 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 immediately
preceding the Distribution Date.
SECTION 4.2.
Redemption .
(a)
On
each Debenture Redemption Date and at maturity of the Debentures,
the Trust shall 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 thirty (30) nor more
than sixty (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:
(ii)
the
Redemption Price;
(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;
(v)
that,
on the Redemption Date, the Redemption Price shall become due and
payable upon each such Trust Security to be redeemed and that
Distributions thereon shall cease to accumulate on and after said
date, except as provided in Section 4.2(d); and
(vi)
the
place or places at which Trust Securities are to be surrendered for
the payment of the Redemption Price.
(c)
The
Trust Securities redeemed on each Redemption Date shall be redeemed
at the Redemption Price with the proceeds from the contemporaneous
redemption of the Debentures. Redemptions of the Trust Securities
shall be made and the Redemption Price shall be pa